Chinese fast fashion brand Shein has reportedly entered into a strict licensing agreement with Reliance Industries Ltd as part of its reentry into the Indian market. Under the deal, Reliance Retail will have full ownership of Shein’s domestic business, according to sources cited by Bloomberg.
In addition to the licensing agreement, Shein will provide production support and training to over 25,000 small and mid-sized local suppliers, enabling them to manufacture Shein-branded products for the global market. This move allows Shein to capitalize on the growing consumer demand in India, while also increasing the presence of made-in-India goods on its platform.
The partnership between Shein and Reliance Industries presents a significant opportunity for India’s export market. If Shein’s manufacturers can fulfill at least one-fourth of the brand’s global demand, it could potentially result in approximately $6.1 billion worth of exports from India.
Data security has been a major concern, and to address it, all data generated by Shein’s app and operations in India will be stored within the country. This measure ensures compliance with strict requirements from the Indian government and prevents unauthorized access to sensitive data.
Shein’s return to the Indian market comes three years after the brand was banned in the country due to geopolitical issues, along with 58 other Chinese apps. However, Shein made a brief reappearance on Amazon India during its Prime Day sale in 2021, which led to a petition being filed in the Delhi High Court citing concerns over data privacy.
The Indian government clarified that while Shein’s ban was necessary for the sovereignty and security of the state, a blanket order against the sale of its products on third-party platforms could not be passed under the IT Act. Consequently, the sale of Shein’s products on third-party platforms falls outside the scope of Section 69A.
Earlier this year, Shein raised $2 billion at a valuation of $66 billion. The brand competes with global fast fashion giants such as Zara and H&M.
