After a three-year absence, Chinese fast fashion giant SHEIN is set to make a comeback in the Indian market, albeit with stringent licencing regulations. In a partnership with Reliance Industries Ltd., SHEIN will need to comply with specific conditions to ensure its reentry is aligned with Indian government requirements.

Under this agreement, Reliance Retail will take full ownership of SHEIN’s domestic business. Additionally, the company has committed to providing production support and training to over 25,000 small and mid-sized local suppliers, enabling them to manufacture SHEIN-branded products for the global market. This collaboration aims to boost Indian suppliers and enhance the availability of "made-in-India" goods on the platform.

Addressing rising concerns about data security, SHEIN has agreed to store all data generated by its app and operations in India within the country. This move aligns with the Indian government's stringent requirements, ensuring that sensitive user data remains protected and inaccessible to the online retailer.

SHEIN faced a ban in India in 2020, along with several other Chinese apps, due to geopolitical tensions. However, it temporarily reappeared on Amazon India during the Prime Day sale in 2021, which led to concerns about data privacy. The ban was enacted to safeguard India's sovereignty and security.

Despite this setback, SHEIN’s return promises a potential boost to the Indian economy, with an estimated $6.1 billion in export value if local manufacturers can meet a quarter of SHEIN’s global demand.


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