Reliance Retail has launched a new shopping app in India, reintroducing the once-popular fashion brand Shein after nearly five years. The Shein app had previously been banned due to security concerns associated with Chinese applications.
With no formal announcement, Reliance, which is owned by Mukesh Ambani, released the app on Saturday. A person with knowledge of the situation verified the launch. Regarding the development, Shein and Reliance Industries did not comment.
Strategic Shift in Fashion Retail
This move marks a shift in Reliance’s fashion strategy. Instead of adding Shein to its existing fashion platform, Ajio, the company has launched a separate app. Ajio already features brands like Superdry and Gap, competing with Flipkart’s Myntra.
Shein’s Background and India Return
Shein, originally founded in China in 2012, later moved its headquarters to Singapore. The brand is known for offering trendy fashion at low prices. After being banned in India, Shein entered a licensing deal with Reliance last year. Under this agreement, Indian manufacturers will supply products for the brand.
Shein App and Market Presence
When users open the new Shein India app, a message reads, “The fashion OG is back.” Currently, deliveries are available in select cities like New Delhi and Mumbai, with plans to expand nationwide soon. Dresses are available at prices as low as Rs 350 ($4).
Business Model and Local Production
Reliance will pay a licensing fee to Shein but will not have any equity in the partnership, a source confirmed. Additionally, all Shein-branded products in India will be designed and manufactured locally. Eventually, these products will also be available on Ajio, though the exact timeline is not yet confirmed.
Shein’s Global Expansion Plans
Shein, meanwhile, is getting ready for this year’s London public listing. It had previously contemplated going public in the United States but encountered resistance from legislators worried about China’s monopoly on companies looking to list internationally.
