Shein to get relaunch in India

Shein will shortly relaunch in India. Shein, the world's largest fashion e-commerce platform, was banned in India in 2020, along with other Chinese apps, due to India-China border tensions. However, the agreement between Shein and Reliance Retail has now been recognized by the Government of India, and we may soon see Shein return to India with its economical and stylish fashion wear for ladies and men.

Shein, in collaboration with Reliance Retail, may make a return to India, most likely on the Ajio platform, as well as open offline Shein stores in India.

Why Was Shein banned?

Shein, along with 100+ other Chinese apps, was banned in India in 2020 because the government discovered "Chinese links" related to these apps, posing a threat to national security. Shein, on the other hand, was free to sell its items through third-party sellers or merchants because the 69A Section does not apply to them. Until 2021, Shein sold some of its products on Amazon India. However, that appears to have been terminated in the previous two years.

Is Shein no longer outlawed in India?

Shein has now gained authorization from the Indian government to bring its business back to India, subject to certain conditions such as sourcing fabrics for its global manufacturing operations from India as part of the Reliance and Shein agreement. Currently, the Chinese fashion store's key product sources are the United States, India, Brazil, and Australia. However, US lawmakers are asking Shein to disclose its labor policies ahead of an IPO in the United States.

According to sources, Shein's IPO will take place later this year, with a target date of 2024. Chris Xu, a marketing specialist, launched the business in China in 2008, and the fashion e-commerce giant has evolved to become one of the world's largest fashion retailers, with a valuation of more than $100 billion. Shein raised $2 billion in its most recent fundraising round, which took place this month, in May 2023. Shein anticipates that its revenues would more than treble to approximately $60 billion by 2025.

With Reliance, Shein is making a comeback.

Shein was one of India's most popular shopping platforms prior to its ban. It was well-liked by women. According to the most recent reports, Shein would partner with Mukesh Ambani's Reliance to make its return to India.

Shein will sell its clothing in Reliance Trends' offline store and Ajio's online store after it returns. Both of these platforms are owned by Reliance, and Ajio is well-known in the country for selling goods at low costs.

This new collaboration will involve sourcing, production, and retailing, which means Shein will source fabrics from India for both global and local operations. Reliance has not yet confirmed any news about the development.

Conclusion

MeitY banned Shein in India, along with 58 other Chinese apps, for security reasons. However, the business was seen selling its items on Amazon in India during the Prime Days event in 2021.

However, it was later prohibited when a case was filed in the Delhi High Court claiming that the Chinese corporation would have access to the personal and sensitive data of millions of Indian individuals.

During the hearing, the Center informed the court that, while Shein was banned in India, the ruling did not specify whether it may sell its products through third-party dealers or not. Section 69A of the IT Act does not cover the same. This is the same act that was used to prohibit Shein and other Chinese apps.