The popular Chinese fast-fashion brand Shein is gearing up to relaunch by a major Indian retailer , Reliance Retail Ventures. The Indian government greenlit this partnership a year ago, paving the way for the upcoming launch.
Key Points of the Relaunch:
Distribution Channels: The Product of Shein will be accessible through Reliance Retail’s app and physical stores on all parts of India.
Leadership: The Manish Chopra, formerly of Meta, appointed to head Shein’s Indian operations reported by Reliance Retail.
Data Security: The important feature is data privacy. The Shein’s operations will be manage by separate indian entity, with all data presented and save within India, inaccessible to Shein. The licensing fee based on profits will be received by Reliance.
Shein’s Rise and Fall in India’s Fashion Market
Before its ban in 2020 due to geopolitical tensions, Shein had gained significant popularity in India. The ban chooses 59 Chinese apps, including Shein. Amazon’s Prime Day sale faced legal challenges regarding data security, when shein attempt to re-enter the market in 2021.
Several brands have tried to fill the gap in the Gen Z fashion market, after shein ban. These brands include Urbanic, Myntra (through platform features), and D2C startups like FabAlley and FableStreet.
The established fast-fashion giants like Zara and H&M competes with shein globally. They also have aim for an Initial Public Offering (IPO) in London, with Hong Kong as a potential backup location.
Shein Eyes India’s Booming Market Through Reliance Partnership
Particularly appealing to Gen Z consumers, this partnership to add up to Reliance’s strategy to tap into the growing fast-fashion market in India. Shein benefits from this collaboration by entering the vast Indian market, along with the potential to strengthen their supply chain through sourcing from Indian suppliers.
It remains to be seen how consumers react to Shein’s return, especially considering data privacy concerns raised previously, while the Indian government has approved the partnership.
The Shein’s ability to compete effectively within the established Indian fashion market will be dependent on the success of the relaunch.
