Mukesh Ambani, Isha Ambani make BIG move, start test launch of… On their platform…, to compete against Myntra, Ratan Tata’s Zudio
GH News December 24, 2024 11:06 AM
Mukesh Ambani and his daughter Isha Ambani led Reliance Retail have initiated a test launch of Shein’s casual women’s western wear on its Ajio platform marking the Chinese fast fashion label’s re-entry into India nearly four-and-a-half years after being banned. This partnership allows Shein to navigate India’s strict regulatory landscape while competing against domestic players like Zudio and Myntra in the expanding Indian fast fashion market reported Economic Times.
Shein’s Comeback In India
Shein’s return follows a carefully structured agreement with stringent conditions designed to address national security concerns. Commerce Minister Piyush Goyal confirmed that Reliance Retail Ventures Limited a subsidiary of Reliance Industries will retain full ownership and operational control over Shein’s platform while Shein will act solely as a technology partner.
Criterias Of Partnership Are
The platform must be hosted entirely on Indian servers. All customer data including personal and non-personal information will remain within India with no access or rights granted to Shein. Regular cybersecurity audits will be conducted by government-approved auditors to ensure compliance.
The agreement also mandates that Shein-branded products be manufactured locally creating opportunities for India’s textile sector and supporting domestic employment.
Shein’s Ban and Its Implications
In 2020 Shein was among over 300 Chinese-linked apps banned by India due to national security concerns. The crackdown at that time had targeted prominent apps like TikTok UC Browser and Xiaomi’s Community and Video Call services. The bans led to strained trade relations with China accusing India of violating WTO guidelines and infringing on Chinese companies legitimate interests.
Regulatory Scrutiny and Approval
The Shein-Reliance deal underwent rigorous vetting by multiple government bodies including the Ministries of Textiles Home Affairs and IT. The approval reflects the government’s strategic approach to balancing national security with economic collaboration.
Commerce Minister Goyal emphasized that Reliance Retail would oversee all operations ensuring compliance with the government’s push for self-reliance and local production under the Atmanirbhar Bharat initiative.
Shein’s re-entry may serve as a model for other Chinese-linked companies seeking to re-establish their presence in India. By prioritizing data sovereignty local production and stringent security protocols the arrangement underscores the potential for collaborative economic ventures despite geopolitical tensions.