Five years after ban, Shein is back in India. Or is it?

China's e-commerce giant faces new curbs amid a trust deficit between the two nations

- Nirmala Ganapathy

NEW DELHI - Despite declaring "The OG is back", Chinese ultra-fast-fashion giant Shein's Jan 31 comeback in India was a low-key one as it relaunched its website and app after a nearly five-year ban.

The question now is whether the garment powerhouse - popular in the US, Europe and the Middle East, and arguably an OG, or "original gangster", that changed the retail game with low-priced, ultra-fast-fashion e-commerce - can recover lost ground in India.

Shein was banned after three years of operation in June 2020, along with 58 other apps, as India imposed restrictions on Chinese businesses shortly after a border clash between the two countries in which soldiers were killed. Bilateral ties spiralled downwards and more apps were subsequently banned due to national security concerns.

But with the recent warming of diplomatic relations, several Chinese companies such as Shein, smartphone giant Vivo and major electronics and home appliance maker Hisense are quietly re-entering or boosting their presence in the Indian market.

Shein's re-entry into India is through a long-term licensing deal with Reliance Retail Ventures Limited (RRVL), a subsidiary of Reliance Industries owned by Asia's richest man, Mr Mukesh Ambani.

While it has no equity in the India business, Shein will get a licensing fee.

HOME-GROWN PLAYERS Unlike five years ago, when clothing was imported from China by Shein, clothes available on the app now will be manufactured in India based on the Chinese firm's designs.

As a result, fashion experts say there is little to distinguish Shein from competitors that have also jumped on the fast-fashion bandwagon in a country that, unlike the US or some European countries, has a strong textile and garment manufacturing base.