SHEIN IS BACK!!!
Data security: After a five-year hiatus, Chinese fast-fashion giant Shein has made a comeback in India through a strategic partnership with Reliance Retail. The relaunch marks Shein’s third attempt to penetrate the Indian market, this time with a focus on data security and local manufacturing.
The Shein India Fast Fashion app is now available on both Google Play Store and Apple’s App Store, signaling a new chapter for the brand in one of the world’s largest consumer markets.
Manufacturing and supply chain: The partnership entails Reliance Retail taking full operational control of the Shein India app, managing everything from operations to customer data. Shein, on the other hand, will act as a technology partner, providing the app and backend systems without direct involvement in managing sales.
A key aspect of this collaboration is the emphasis on local manufacturing. All products sold under Shein India will be designed and produced domestically, aligning with the Indian government’s push to boost the textile industry and create jobs. Shein also intends to utilize India as a supply hub for its global operations, assisting Reliance Retail in establishing a network and training local garment manufacturers.
From a market perspective, Shein’s return is expected to intensify competition in India’s budget fashion segment. While Shein enjoyed a first-mover advantage when it initially launched in India in 2017, the landscape has since evolved.
Reliance’s backing, however, could provide Shein with a competitive edge, particularly in attracting young customers who were fond of the brand’s trendy and affordable clothing before the ban.
- Initial Rollout: Shein is initially offering deliveries in major cities like New Delhi, Bengaluru, and Mumbai, with plans to expand across India,
- Pricing and Products: The company’s products, including dresses starting at ₹199 (approximately $4), will be designed and manufactured in India by local suppliers
- Competitive Landscape: Shein’s comeback is expected to intensify competition in India’s budget fashion segment, challenging established players like Flipkart, Amazon, and homegrown brands, Domestic startups like Newme, Myntra’s FWD, Urbanic’s Savana, and Littlebox have also gained a share of the GenZ fast fashion market.
Other online fashion sites are going to have to step up their game. Shein’s known for being cheap and cheerful, and those other brands are going to have to fight for your attention (and your wallet!).
The Indian government has given its nod to the deal after thorough security checks and has mandated regular cybersecurity audits to ensure compliance. Commerce Minister Piyush Goyal has emphasized that this partnership benefits India’s economy.
Shein’s return to India is a big deal. It’s a completely different approach than before, with a focus on local production, data security, and a powerful partnership with Reliance. It’s going to be interesting to see how it all plays out!
