New updates have been reported about SHEIN (PC:SHNQX)
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SHEIN, the Chinese fast-fashion giant, has made a strategic return to the Indian market through a collaboration with Reliance Retail, nearly five years after its initial ban due to diplomatic tensions. This move is significant as it precedes SHEIN’s anticipated public listing later this year. The newly launched Shein India Fast Fashion app, developed by Reliance, operates under a unique partnership where Reliance retains full control over operations and data, with SHEIN serving purely as a technology partner. This arrangement ensures all customer data is stored within India, with SHEIN having no access, aligning with stringent regulatory requirements.
This partnership marks a shift in Reliance’s strategy, enhancing its e-commerce presence in a market dominated by players like Flipkart and Amazon. While Reliance is a leader in retail and telecommunications, it has faced challenges in online sales. The inclusion of SHEIN in its portfolio could bolster its competitive edge in fashion e-commerce. Initially, SHEIN will offer deliveries in major cities like New Delhi, Bengaluru, and Mumbai, with plans for nationwide expansion. The app features locally manufactured products, supporting India’s textile sector. This collaboration is a rare exception to India’s ban on Chinese apps, with SHEIN agreeing to rigorous oversight, including security audits by government-approved firms. Commerce Minister Piyush Goyal highlighted that the approval process involved thorough vetting to ensure data sovereignty and boost local manufacturing.