Shein back but with no data transfer

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China’s fashion company Shein has been accused of data theft in three African nations. The matter is being investigated. After the Galwan incident in the year 2020, India had banned the mobile app of Shein. At the time, Shein was selling lifestyle products in India, through its mobile app. Now, after almost three years, Shein has entered the Indian market once again. As such, the question arises as to how this company can be trusted.

In an attempt to dispel any further misgivings about the return of China’s fashion company Shein to India, the government has given an assurance that as per the agreement between Shein and Reliance Retail, the former would not be given access to the data of any Indian customer. The entire control of all transactions will remain with Reliance Retail.

Agreement with Mukesh Ambani

Shein will foray into India through an agreement with Reliance Retail, a Reliance Industries group company. Three years after it was banned due to border tensions between India and China, Shein is set to enter India, once again. Shein enjoys popularity among millennials for its women’s garments and other dresses. Fashionable clothing at affordable rates is available on its app.

What is the plan?

Shein will conduct its business in India in alliance with Reliance Retail. As per the agreement, the Chinese online fast fashion retailer Shein will transfer its technology. Reliance Retail will launch a separate app by the name of sheinindia.in for Indian customers. This app will be solely owned by Reliance.

How will the app be different? According to information provided by Reliance Retail, this app will run separately from Shein’s global app. Shein is not directly investing in Reliance Retail. There would be no foreign direct investment in the country as there is no equity investment from Shein in the Indian company. It will be completely owned by Reliance Retail. Any payments to Shein would come from the profits of Reliance Retail. No fixed payments have been assured to the fashion retailer. In other words, this company would work completely under Reliance Retail.

More options Reliance Retail is one of the fastest growing companies in the global fashion market and now, Shein will operate through Reliance Retail. As per the agreement between the two companies, Shein has been permitted the use of the warehousing and logistics infrastructure as well as sourcing capacity of Reliance Retail. Shein will also gain the benefit of the online and offline store portfolio of Reliance Retail.