This Chinese Giant Set To Challenge Zara & Amazon, Making A Comeback In India After 4 Years

New Delhi: Chinese fast-fashion giant Shein is making a comeback in India after a four-and-a-half-year ban. The company, which was blocked along with 200 other Chinese apps by the Ministry of Electronics and Information Technology (MeitY) on June 29, 2020, is re-entering the market through a partnership with Reliance Retail.

Shein has begun a backend test launch on Reliance's e-commerce platform, Ajio.com, focusing on casual westernwear. While the rollout may expand to other Reliance platforms in the future, a specific timeline for the full-scale launch is yet to be announced. This partnership positions Shein to compete with brands like Tata’s Zudio and Flipkart’s Myntra in the affordable fashion segment.

Reliance Retail Ventures Ltd. formalized its partnership with Shein last year, and the two companies have signed a technology agreement to create a local e-commerce platform. This platform will rely on Indian manufacturers and suppliers to produce and sell Shein-branded products.

Global Success Fuels Shein’s India Plans

Shein has been a major player in the global fashion industry, emerging as the world’s most visited fashion and apparel website in September 2024, according to Similarweb. It held a 2.68% global web traffic share in the third quarter of 2024, surpassing brands like Nike, H&M, and Zara.

The platform’s user base has grown significantly, with a report by Earnest highlighting a 40% rise in transaction-making users on Shein’s website between January and August 2024. Shein is also challenging established players in key markets like the US and France.

In France, Shein became the country’s second-largest fashion brand in 2023, surpassing H&M, Primark, and Kiabi. Recent reports suggest Shein’s sales in France might have exceeded Zara’s in the final quarter of 2024. Meanwhile, in the US, Shein is attracting young consumers with low-cost apparel, prompting Amazon to launch its own low-price storefront to compete.

India Entry Ensures Local Compliance

Commerce Minister Piyush Goyal confirmed that Shein’s Indian retail platform will operate on domestic infrastructure, ensuring data security. He added that Shein would not have access to or control over this infrastructure. The Ministry of Textiles, in collaboration with other ministries, has approved Reliance Retail’s proposal.

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