Shein halted its Indian operations in June 2020 when the government banned its app due to escalating tensions over the India-China border dispute.
Mukesh Ambani and his daughter, Isha Ambani, have reintroduced Shein’s casual women’s western wear to India through Reliance Retail’s Ajio platform. This marks the brand’s return after a five-year ban imposed by the Indian government. Despite Shein’s past popularity, the brand has struggled to regain traction in the Indian market.
According to data from AppMagic, a US-based app performance tracker, daily downloads of the Shein India app plummeted from 50,000 in February, shortly after its relaunch, to just 3,311 by early April. While the Shein app has garnered global attention amid recent US-China trade tensions, experts remain skeptical about its long-term growth potential in India.
Reliance Industries, led by Mukesh Ambani, has been attempting to capture a larger share of India’s e-commerce market, which is currently dominated by Amazon and Walmart-backed Flipkart. Together, these giants control 60% of the sector. Over the past five years, Reliance has acquired stakes in various businesses, ranging from digital services and online pharmacies to quick-commerce platforms. However, it has yet to mount a significant challenge to the market leaders.
Industry analysts believe Reliance Retail, managed by Isha Ambani, is banking on Shein’s advanced AI-powered trendspotting and automated inventory systems to carve out a niche in India’s e-commerce market, which is projected to reach $345 billion by 2030. Reliance’s vast ecosystem, including over 476 million Jio subscribers, 300 million JioMart users, and a robust media portfolio, could provide valuable data to enhance Shein’s AI algorithms and create personalized inventory for Indian consumers.
Shein’s global platform is known for its extensive catalog of approximately 600,000 items, with AI-driven algorithms optimizing production and warehousing based on customer feedback. However, the Shein India app has faced criticism on Google Play and the Apple App Store for offering fewer choices and higher prices compared to its Chinese counterpart.
Notably, the Shein relaunch under Reliance Retail involves a restructured approach, with the platform no longer selling Chinese-made clothing and accessories directly to Indian customers. Instead, Reliance oversees sourcing, manufacturing, distribution, and customer data management, presenting a scaled-down version of the global Shein platform.