Shein is back in India, but not without conditions

Shein has returned to India after being banned three years ago, but it must follow some strict rules as part of a licensing deal with Reliance Industries, Bloomberg reported.

The fast fashion retailer, now headquartered in Singapore, will cede its Indian business to Reliance’s retail arm. Meanwhile, Shein will help train more than 25,000 local suppliers who will produce exports for Shein to sell globally, sources told Bloomberg.

Additionally, any customer data generated by the Shein app in India will remain in India; the brand will have no access to it. Reliance will pay Shein a license fee, since the retailer gets no equity, according to the terms set by the Indian government.

Let us explain: For context, Shein has been trying to make its way back into India after its app was banned in 2020 alongside ~170 other Chinese apps, including TikTok, as a result of border disputes between China and India.

In the meantime, the online retailer has tried other ways to engage with Indian consumers, such as by selling its products on Amazon and Indian e-commerce company Myntra.

So while the newly inked deal sounds stringent, it offers Shein the opportunity it’s been waiting for to expand its manufacturing sources, tap into the growing Indian economy, and connect with consumers from the most populous country on the planet.