Shein’s Second Act in India Thanks to Asia’s Richest Individual: A Controversial Comeback Under New Leadership

Nearly five years after being banned, the Chinese fast-fashion giant Shein has made its return to the Indian market, thanks to a strategic partnership with Mukesh Ambani, Asia’s richest man and chairman of Reliance Industries. The collaboration between Reliance and Shein has helped address previous concerns over data security, which had contributed to the app’s initial ban.

Since its quiet relaunch two weeks ago, Shein has already surpassed 100,000 downloads on Google Play and currently ranks ninth in the shopping category on Apple’s App Store.

Shein was originally banned in 2020 as part of a broader crackdown on Chinese apps, including TikTok, amid rising tensions between India and China. The ban followed a deadly border clash in the eastern Ladakh region of the Himalayas. At the time, India’s technology ministry accused 59 predominantly Chinese apps of threatening national security, stating that their operations were “prejudicial to the sovereignty and integrity of India, the defense of India, the security of the state, and public order.”

The Indian government has clarified that Shein’s re-entry comes with stringent conditions, including a requirement for Reliance Industries to maintain full control over its operations and data. According to a statement made to parliament, Reliance will oversee all e-commerce operations, logistics, and marketing, while Shein will function solely as a design and branding partner.

Additionally, all personal and non-personal data collected from Indian customers will remain within India, with Shein having no access to it. Another key condition of the agreement is that Shein’s products will be produced by Indian manufacturers rather than imported from China. The government views this shift as a major win for India’s textile industry and a boost for domestic job creation.

Currently, Shein’s deliveries are limited to Delhi, Mumbai, and Bengaluru, though the company has announced plans for nationwide expansion.

Many Indian consumers have welcomed Shein’s return. Reva Goswami, a university student, expressed her excitement, noting that she had missed shopping on the platform during its absence. She observed that Shein’s ability to keep up with fashion trends at affordable prices was unmatched. Goswami also remarked that although several companies had attempted to fill the gap left by Shein, none could compete with its dominance in fast fashion.

Meanwhile, business owners in the textile sector have responded positively to the shift toward local manufacturing, seeing it as an opportunity for growth and increased employment.

Shein’s comeback, shaped by new regulations and local production commitments, signals a shift in India’s approach to balancing economic opportunity with national security concerns. Whether the company can regain its foothold while operating under stricter controls remains to be seen.

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