Shein India’s Relaunch Shows Reliance’s Challenge in Online Retail

Despite being the richest man in India, Mukesh Ambani’s Reliance Retail is facing significant challenges in making a mark in the country’s fiercely competitive e-commerce market — even with the high-profile partnership with Chinese fast-fashion giant Shein. (ALSO READ: Bill Gates Joins Zerodha’s Nikhil Kamath to Reframe Success in Capitalist Ventures)

Shein’s Comeback in India

Reliance Retail relaunched the Shein India app in early 2025, five years after the original Shein app was banned amid border tensions between India and China. However, this new Shein India operates very differently from the global Shein platform. Instead of selling Chinese-made products directly to Indian consumers, Shein now acts mainly as a technology partner. Reliance manages sourcing, manufacturing, distribution, and consumer data, giving it full control over the operations.

Slow Start and Market Saturation

Despite the promising partnership, Shein India has struggled to gain traction. Early downloads were strong, with about 50,000 daily downloads shortly after the app’s February launch. But by April, daily downloads had plummeted to just over 3,000, according to app tracker AppMagic.

Experts believe the Indian market is now saturated with options, with heavy competition from Amazon and Walmart’s Flipkart, who have dominated the space for nearly a decade. As Yugal Joshi, a partner at global research firm Everest Group, explains, “User interest can quickly dwindle” in a crowded and competitive market.

Signs of Hope

Despite the slow start, some see potential for growth. Kushal Bhatnagar from Indian consultancy Redseer notes a late-April spike in app downloads following U.S. tariffs on China, indicating renewed consumer interest. He points out that Reliance has yet to start any paid marketing campaigns for Shein India, suggesting growth could pick up as promotional efforts ramp up.

Reliance’s E-Commerce Ambitions Face Hurdles

Reliance Retail’s partnership with Shein represents an attempt to break into the booming Indian online retail sector. However, with growth slowing and the much-anticipated Reliance IPO still far off, the company faces an uphill battle to challenge entrenched players like Amazon and Flipkart.

Moreover, while Shein employs advanced AI technology to monitor demand and supply, it’s unclear how effectively Reliance is utilizing these tools in India.

What’s Next?

For now, Reliance continues to push forward, leveraging its vast retail network and technology partnerships to find a winning formula in India’s complex and competitive e-commerce market. Whether Shein India can become a significant player remains to be seen, but the early struggles highlight just how challenging this market remains — even for one of the wealthiest and most influential companies in the country.

To Read More in Hindi: https://newz24india.com/