Reliance Retail has started a backend test launch of Chinese fast fashion label Shein, starting with its fashion and lifestyle platform Ajio, four-and-a-half years after the Indian government banned the label.
“Shein has begun testing and cataloguing its casual women’s westernwear on Ajio, which it may gradually roll out to other platforms,” said an executive directly aware of the plans. “But right now there are no defined timelines for the launch.”
Shein, a global fashion major, which is now based in Singapore, will compete directly with Tata Group’s value fashion chain Zudio and Flipkart-owned Myntra in India in the fast fashion, affordable space.
Reliance Retail Ventures Ltd had signed a partnership with Shein last year to sell its fast fashion range in India on its platforms.
The Indian government had banned the Shein app in June 2020 following escalation of India-China border conflict. Shein was among the over 50 Chinese apps banned then by the ministry of electronics and information technology (MeitY).
An email seeking comments from Reliance Retail remained unanswered.
Commerce and industry minister Piyush Goyal had last week said in a written reply in the Lok Sabha that at all times, an indigenous retail platform for Shein will be hosted on infrastructure in India with Shein having no access to, or rights over, such data. He added in the reply that the ministry of textiles after consultation with MeitY and the ministry of home affairs had “no objection” to Reliance Retail’s proposal.
According to an October report by Reuters citing data by The Information, Shein’s revenue growth slowed to 23% in the first half of this year, from 40% the previous year, ahead of a stock market listing in London.
A report by consulting firm Redseer Strategy Consultants said that the Indian fast fashion market is expected to cross $50 billion in sales by FY31. The report added that the Indian fast fashion would make up for 25-30% of overall fashion retail by FY31 in the Indian market.
The market is, however, flooded with hundreds of unorganised players competing for market share. Goyal added that Reliance Retail Ventures Ltd has signed a technology agreement with Roadget Business Pte Ltd to develop an indigenous ecommerce retail platform. He further said the platform intends to create a network of local manufacturers and suppliers to manufacture and sell products under the brand name Shein.
