New updates have been reported about SHEIN (PC:SHNQX)
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SHEIN has navigated India’s stringent regulatory landscape to re-enter the market through a strategic partnership with Reliance Retail. According to recent government disclosures, SHEIN will function solely as a technology partner, relinquishing all control over its Indian operations to Reliance, which will manage the platform through its subsidiary, Reliance Retail Ventures Limited. This move allows SHEIN to bypass India’s ban on Chinese-linked apps, a restriction that has affected over 300 applications since mid-2020 due to national security concerns.
Under the terms of the agreement, all data related to Indian customers will remain within the country, hosted on local infrastructure, with SHEIN having no access to this information. The platform will also undergo security audits by government-approved cybersecurity auditors, a requirement not commonly imposed on retail partnerships. This arrangement not only facilitates SHEIN’s return but also aligns with India’s strategic interests by bolstering local textile manufacturing and employment. The Ministry of Textiles, along with the IT and Home Affairs ministries, played a pivotal role in vetting the deal, highlighting the extensive governmental oversight involved. This partnership is expected to enhance SHEIN’s market presence while supporting India’s economic objectives.