Reliance To Launch IPO-Bound Chinese Fast Fashion Brand Shein In India

Reliance Retail Ventures is set to launch the Chinese fast-fashion label Shein within the coming weeks, with plans to offer the latter’s products through its app and brick-and-mortar stores.

The retail giant is likely to tap former Meta director Manish Chopra to head Shein’s operations in India, ET reported.

The India operations will be managed by a company wholly owned by Reliance Retail, with Shein receiving a license fee as a share of the Indian firm’s profit. All relevant and sensitive data will be hosted and stored in India, with Shein having no access or rights to the data.

This comes almost a year after Shein secured an approval from the Indian government for its partnership with Reliance Industries.

To diversify its supply chain, Shein reportedly will be sourcing goods from India for its global operation in the middle east and other markets.

Due to geopolitical issues, the Indian government banned 59 Chinese apps in India in 2020, including fashion platform Shein which gained immense popularity among young Indians during its operation in the country.

After its ban in India, Shein relaunched in India on Amazon during its annual Prime Day sale in 2021. A petition was later filed before the Delhi High Court saying the Chinese brand would have “access to personal and sensitive data of several millions of Indian citizens”.

Centre told the Delhi High Court that Shein was banned in the interest of India’s sovereignty and security of the State but a blanket order against the sale of its products on third-party platforms could not be passed under the IT Act. It added that the sale of Shein’s products on a third-party platform is not covered under the Section 69A.

Following Shein’s ban in India, London-based Urbanic attempted to capture the Gen Z market but could not achieve the same level of disruption. Fashion marketplaces like Myntra have also introduced Gen Z-focused features on their platforms. Additionally, several D2C startups, including FabAlley, FableStreet, and Souled Store, are striving to appeal to both millennials and Gen Z.

Last year, Shein raised $2 Bn at a valuation of $66 Bn. It competes against the global fast fashion brands Zara, H&M. Moreover, Shein is planning to go public in London in the near future. However, the online retailer has plans to debut in Hong Kong if its attempt to list in London falls through.