fashion retailers like Walmart-owned Myntra. Under the new arrangement, announced by the Indian government last year, all Shein products will be manufactured locally in India. The app’s initial rollout covers major cities like New Delhi and Mumbai, with plans for nationwide expansion. Prices start at 350 rupees ($4) for dresses. Underlying impacts The partnership between Reliance Retail and Shein represents a significant shift in India’s fashion landscape, with several key implications for both businesses and consumers. Christian Westphal, co-founder at SilverSpoon Consultancy, told Inside Retail the most significant aspect of the licensing deal is the local storage of all customer data in India, with Reliance maintaining complete control over the platform’s infrastructure and operations. “If this is true, this means that Shein has no access to critical data (personal or non-personal), which is one of the primary reasons for banning Chinese apps in the first place,” he said. In 2020, India banned Shein’s app alongside other Chinese applications like TikTok due to security concerns during border tensions. This new development signals a major change in India’s stance toward previously banned Chinese companies, potentially creating opportunities for similar partnerships.  “The partnership sets a precedent for other Chinese companies previously banned in India to re-enter the market through licensing agreements with Indian firms. By adhering to government regulations and ensuring data security, such collaborations can facilitate the reintroduction of foreign brands into the Indian market,” said Westphal. “Reliance is one of India’s largest conglomerates and has strong ties to the government. The company’s involvement provides a local safeguard that reassures Indian authorities. With Reliance fully controlling the operations of the platform, the government is more confident that the platform’s operations will be aligned with India’s economic and security priorities, as opposed to allowing Shein to operate independently.” India’s fashion scene and challenges The re-entry of Shein into India’s fashion market through its partnership with Reliance Retail presents both opportunities and challenges for the industry with implications for market dynamics, consumer behaviour and sustainability concerns in India’s rapidly evolving fashion landscape. “Shein was extremely popular in India before the ban in 2020, especially among young consumers due to its affordable pricing and vast range of trendy fashion,” Westphal said. “The demand for Shein’s products didn’t evaporate after the ban, creating a gap in the market that other fast-fashion brands, including Indian ones, are now scrambling to fill.” According to Redseer Strategy Consultants, fast fashion emerged as the outlier and remained one of the few outperforming sectors in India’s retail market last year. The sector grew at a rate of between 30 and 40 per cent. The company estimates the fast fashion segment to reach $50 billion by FY31. According to Westphal, India’s fast fashion market features a diverse mix of international and local brands. Major players competing with Shein include Walmart’s Myntra, Reliance’s Ajio, and Amazon Fashion. The Reliance-Shein partnership, while promising for business, brings environmental concerns to the forefront. With India already facing significant challenges in pollution and waste management, the growing influence of environmentally conscious Gen Z consumers could help shape more sustainable practices in the industry. “Gen Z is uniquely positioned to drive change, balancing their love for fast fashion with a growing awareness of climate change,” he said. “They are increasingly conscious of the environmental impact of their shopping choices, even as they embrace fresh, trendy styles.” “In India, where pollution and waste management are pressing issues, Gen Z’s purchasing power could be a catalyst for positive change. The Shein-Reliance partnership offers exciting economic opportunities, but it also raises important questions about sustainability. To navigate this balance, it’s crucial to foster stronger regulatory frameworks, corporate responsibility, and consumer awareness,” he concluded. Further reading: Is India the next China for the luxury sector?