After being banned in 2020, Chinese fast-fashion behemoth SHEIN will make a comeback to India through a partnership with Reliance Retail. While Reliance Retail will oversee operations and data and make sure all information stays in India under stringent security measures, SHEIN will serve as a technology provider. The goal of this partnership is to increase employment and local manufacturing.
Strict data-related conditions must be met before SHEIN can return to India. After being banned in 2020, the Chinese fast-fashion retailer must comply with strict data localisation requirements in order to re-enter the Indian market, according to Commerce Minister Piyush Goyal.
These terms include giving its Indian partner, Reliance Retail, control over its local operations and data, making sure that all data stays in India, and requiring both parties to follow stringent security protocols.
Goyal emphasised the relationship between SHEIN and Reliance Retail Ventures Ltd (RRVL), noting that the Singapore-based owner of SHEIN, Roadget Business Pte Ltd, has a technology agreement with RRL, its subsidiary.
While Reliance Retail retains complete ownership and management of the platform, including all data gathered from Indian customers, SHEIN will only function as a technology supplier. “The licence agreement included the guarantee that RRVL, through its wholly-owned subsidiary, will always retain ownership and control of the platform,” Goyal responded.
“According to the agreement, the platform will always be hosted on Indian infrastructure, and all platform data will remain in India, with SHEIN having no access to, or rights over, such data,” he continued. Consenting parties are required by the agreement to ensure that infrastructure and platform data are localised and to adhere to Indian regulations.
