The Chinese brand that has become a 'headache' for Zara, H&M in Europe and Amazon in the US is coming to Reliance's Ajio website

Chinese fast-fashion retailer Shein is relaunching in India. The company partnered with Reliance Retail to re-enter the market after a ban of over four years. India's Ministry of Electronics and Information Technology (MeitY) blocked the Shein app on June 29, 2020. The ban included approximately 200 other Chinese apps.

The initial re-entry involves a backend test launch on Reliance's fashion website, Ajio.com, focusing on casual westernwear and more. While the rollout may eventually extend to other Reliance platforms, no clear launch timeline has been announced as yet. This move positions Shein, now based in Singapore, to compete with established players like Tata's Zudio and Flipkart's Myntra in the affordable fast-fashion segment. Reliance Retail Ventures Ltd. formalized its partnership with Shein last year to facilitate this return.

In September 2024, Shein reportedly became the world’s most visited fashion and apparel website, according to data from Similarweb. With a global web traffic share of 2.68% for the third quarter of 2024, Shein outpaced other major brands like Nike, H&M, and Zara, which ranked second to fourth, respectively.
Shein’s user base too has seen a significant rise. Data from Earnest shows that Shein website's transaction-making users in August surged nearly 40% compared to January, marking it the fastest-growing international platform, followed closely by TikTok.

Amazon recently launched a low-cost online storefront featuring electronics, apparel and other products priced under $20, to compete with discount retailers that have increasingly encroached on the e-commerce giant’s turf -- and their names are China's Shein and Temu. Shein’s core customers in the US are young women enticed by the low-cost apparel sold on the site, and Amazon is now aiming to target them.
As per French consumer publication LSA, Shein’s 2023 annual sales in France surpassed H&M, Primark, and Kiabi, positioning it as the country’s second-largest fashion brand, second after Zara, owned by Spain’s Inditex Group. Though numbers are still to come, in the final quarter of 2024, Shein’s French sales are speculated to have exceeded Zara’s.

This re-entry strategy involves a technology agreement between Reliance Retail Ventures Ltd. and Roadget Business Pte Ltd. to develop a local e-commerce platform. This platform aims to establish a network of Indian manufacturers and suppliers to produce and sell products under the Shein brand. A recent report claimed that Isha Ambani is playing a pivotal role in bringing Shein back to the Indian market and Reliance Retail will maintain complete ownership of the platform.
Commerce Minister Piyush Goyal confirmed that Shein's Indian retail platform will be hosted on domestic infrastructure, ensuring data security and preventing Shein from accessing or controlling it. The Ministry of Textiles, in consultation with other relevant ministries, has also approved Reliance Retail's proposal.
Shein's rapid growth to 108 million monthly EU users has placed it under the EU's Digital Services Act (DSA) in April 2024, which applies to platforms with over 45 million monthly users. As a "very large online platform," Shein have to adhere to stricter content moderation and transparency requirements in Europe.