Shein’s much-hyped comeback in India through Reliance was supposed to be a power move—but it’s falling flat. Once a Gen Z darling, Shein is now struggling to find its footing in a crowded, cutthroat fashion e-commerce market. Launched in February 2025 after a five-year ban, the new app has seen daily downloads nosedive and user engagement wane. While Reliance aimed to combine Shein’s global tech edge with local market clout, execution gaps, inventory shortfalls, and sluggish trend response are proving costly. This blog dives into what went wrong—and why Shein India might already be running out of runway.
Here are three reason, why Reliance hasn’t been able to crack the e-commerce puzzle in India, despite a deep partnership with Shein:
1. Too Little, Too Late in a Crowded Market
Shein’s return via Reliance came five years after its original app was banned in India. But the new app, launched in February 2025, has failed to capture Gen Z’s attention—downloads plummeted from 50,000 a day to just 3,311 by April. While Shein was once a cult favorite, today’s Indian fashion e-commerce landscape is saturated with established players like Amazon, Flipkart, Myntra, and Urbanic.
2. Lack of Inventory, Speed & Agility
The global Shein platform boasts over 600,000 products at any given time. Shein India had just 12,000 by April 2025. Reliance’s attempt to localize sourcing and production has slowed things down. Smaller brands like Littlebox adapt quickly to trends, but Reliance’s scale demands more structure, slowing its speed-to-market—a fatal flaw in fast fashion.
3. AI Power Undermined by Execution Gaps
Shein’s global success hinges on AI-powered demand prediction and smart manufacturing. While Reliance has massive data sets—via Jio, JioMart, and its content platforms—there’s little evidence it’s using these insights effectively. Customer reviews cite higher prices and fewer choices, signaling a disconnect between Shein’s AI-led promise and the actual app experience.
Conclusion
Reliance hoped Shein’s brand recall and tech might revive its e-commerce ambitions, but reality bites. Without rapid product rollout, sharp trend alignment, and deep user insight execution, Shein India risks becoming yet another Reliance brand that misses the mark with younger shoppers. And with Reliance Retail’s growth slowing and IPO hopes dimming, this partnership needs more than name recognition to survive.
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