Shein threads carefully in Indian return

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Hello reader,

I’m a recent convert to online clothes shopping and I finally see the hype.

I used to be skeptical, as how could I know if I would like how something looked on me without trying it on? How would I even know if it would fit?

However, I’ve been won over by online platforms like Temu and Shein that have far greater selections than the stores in Hanoi (especially for someone taller and wider than the average Vietnamese consumer) and, let’s be honest, far more competitive pricing. So it’s worth taking the risk that the occasional purchase becomes in-the-house wear only.

Shein was banned from India in 2020 over data security concerns, and it has missed five years of rapid growth. The China-born firm is back, though, thanks to a partnership with a local retail giant.

Today’s featured story dives into Shein’s plans and prospects in the market.

Today we look at:

• Shein’s comeback in India
• On-the-run former Investree CEO being spotted in Doha
• Other newsy highlights such as eFishery investors facing a near-total wipeout and Salesforce teaming up with Google on AI.

Premium summary

Dressed to impress

Image credit: Timmy Loen

Fast-fashion giant Shein is back in India via a partnership with Reliance Retail, the country’s largest retailer.

However, five years after its original ban, the China-born firm faces an uphill battle to recapture market share in India.

• Stitching a comeback together: Shein is one of the Chinese firms prohibited from operating in India, so it had to agree to a licensing deal to return to the market. It will receive a licensing fee for its brand and technology, while a Reliance Retail subsidiary has full control of the Shein India platform, a source told Tech in Asia.
• Moving the wardrobe: The company isn’t just reentering India to sell clothes – it is likely looking to move part of its supply chain into the country. The firm outsources manufacturing to about 5,400 firms, most of which are in China – which is wrapped up in an escalating trade war with the US.
• Roll up your sleeves: Shein faces strong incumbents in India like Flipkart’s Myntra and Tata Group’s Zudio. Analysts say Shein’s prices often exceed those of Zudio, which has a well-established supply chain network in the country – something that will take time for Shein to build.

On the run at the races

Quick bytes