After a five-year ban, Shein, the Chinese fast-fashion giant, is making a dramatic return to India. But this time, it’s not alone. Reliance Retail, India’s retail powerhouse, is spearheading its re-entry, promising a new chapter for the brand in one of the world’s fastest-growing fashion markets. The Shein app is already live, offering trendy outfits at jaw-dropping prices starting as low as ₹199. But the question on everyone’s mind is: Can Shein shed its controversial past and succeed in India this time?
Why Was Shein Banned in India?
Shein’s initial rise in India was meteoric. The brand became a favorite among Gen Z and millennials for its ultra-cheap, trendy clothing. However, its success was short-lived. In 2020, the Indian government banned Shein, along with 58 other Chinese apps, citing national security concerns amid rising geopolitical tensions between India and China. The ban was a significant blow to Shein, which had carved out a loyal customer base in India.
But Shein’s troubles weren’t just political. The brand has long been criticized for its unethical practices. As one of the worst offenders in the fast-fashion industry, Shein has been accused of exploiting workers, contributing to environmental degradation, and promoting a culture of overconsumption. The brand’s business model relies on mass production in China, where labor costs are low, and regulations are often lax. This allows Shein to release hundreds of new designs daily, flooding the market with cheap, disposable clothing.
Shein’s Reliance on Influencers and Fast Fashion
Shein’s strategy of releasing new designs every day and collaborating with influencers to create hype has been both its strength and its Achilles’ heel. On one hand, it has helped the brand build a massive global following, particularly among young shoppers who crave constant novelty. On the other hand, it has drawn criticism for promoting unsustainable consumption patterns and contributing to the “throwaway culture” of fast fashion.
In India, Shein’s influencer-driven marketing campaigns were wildly successful, with countless YouTube and Instagram videos showcasing Shein hauls and styling tips. However, this also made the brand a target for criticism, as activists and conscious consumers began to question the true cost of its dirt-cheap products.
Reliance Retail to the Rescue: A New Shein for India?
Shein’s comeback is being orchestrated by Reliance Retail, a subsidiary of Mukesh Ambani’s Reliance Industries. This partnership marks a significant shift in Shein’s strategy. Unlike its previous avatar, Shein India will operate under a new model: all products will be designed and manufactured locally. This move is expected to give a boost to India’s textile industry, creating jobs and supporting local artisans.
Additionally, Reliance has assured customers that all data will be stored in India, addressing the data privacy concerns that led to the brand’s initial ban. This localization strategy is a smart move, as it aligns with the Indian government’s push for self-reliance and domestic manufacturing.
Can Shein Succeed in India This Time?
Shein’s re-entry into India comes at a time when the country’s fashion market is booming. With a young, fashion-conscious population and increasing internet penetration, India is a goldmine for fast-fashion brands. However, the competition is fierce. Homegrown players like Zudio, as well as e-commerce giants like Flipkart, Amazon, and Meesho, are already vying for a share of the budget fashion market.
Shein’s success will depend on its ability to balance affordability with sustainability and ethical practices. While the brand’s ultra-low prices are a major draw, Indian consumers are becoming increasingly aware of the environmental and social impact of fast fashion. Reliance’s involvement could help Shein improve its image, but the brand will need to go beyond lip service to win over skeptical shoppers.
The Bigger Question: Can Shein Replicate Its Chinese Model in India?
One of the key reasons Shein was able to offer such low prices was its reliance on mass production in China, where labor costs are minimal, and regulations are often ignored. In India, however, labor laws and manufacturing costs are different. While Reliance’s local production model could help reduce costs, it remains to be seen whether Shein can maintain its rock-bottom prices without compromising on ethical standards.
Moreover, Shein’s daily product drops and influencer-driven marketing strategy may need to be tweaked for the Indian market. While Indian consumers love a good deal, they are also becoming more conscious of the impact of their purchasing decisions. Brands that prioritize sustainability and transparency are gaining traction, and Shein will need to adapt to this shift in consumer behavior.
Conclusion: The Road Ahead
Shein’s return to India, backed by Reliance Retail, brings both excitement and concern. While its ultra-cheap, trendy clothing appeals to budget-conscious Gen Z and millennial shoppers, its reliance on synthetic fibers like polyester contributes to environmental degradation, releasing greenhouse gases and creating non-biodegradable waste. Toxic chemicals from dyeing and manufacturing pollute water bodies, harming ecosystems and human health. Additionally, Shein’s fast-fashion model promotes overconsumption through daily product drops and influencer marketing, exacerbating the issue of disposable fashion. Ethical concerns about Shein’s labor practices remain troubling, with past allegations of worker exploitation in Chinese factories raising fears about similar conditions in India, despite Reliance’s promise of local manufacturing. The relentless pressure to produce cheap clothing quickly often comes at the expense of fair wages and safe working conditions. Shein’s re-entry into India is a stark reminder of fast fashion’s dangers, threatening the environment, public health, and ethical labor standards. As consumers, we must recognize the hidden costs behind cheap clothing and push for sustainable, ethical alternatives. Supporting responsible brands is crucial to steering the industry toward better practices and safeguarding our planet for future generations. Shein’s comeback is a test of our collective conscience—one that requires immediate action to prevent irreversible consequences.