Shein must store data in India to resume sales through Reliance partnership: Parliament

Shein, the Chinese fast-fashion retailer once banned in India, can resume selling in the country through its partnership with Reliance Retail Ventures Ltd (RRVL) only if all platform data is stored in India, with no access or ownership rights for the company, according to a parliamentary disclosure.

RRVL is also advised to ensure compliance with all existing laws of India and security audit of complete infrastructure can be undertaken by any government empanelled cyber security auditor, Commerce and Industry Minister Piyush Goyal said in a reply in the Lok Sabha.

In 2020, over 50 apps, including Shein, were banned by the government, which had said that these platforms posed a "threat to sovereignty and integrity" of the country.

However, Shein products were available in the online market through platforms such as Amazon. The issues were also taken before the Delhi High Court.

Almost three years after getting banned in India, Shein had signed a partnership with Reliance Retail in 2023. The licence agreement covered the protection that ownership and control of the platform will always remain with RRVL through its wholly-owned subsidiary.

"The platform will be hosted on infrastructure in India and all platform data will remain in India with Shein having no access to, or rights over, such data," said Goyal.

Established in 2008, Shein is known for its affordable pricing and is popular among millennials for its trendy women's wear and other apparels.

Sales of "branded products" from Chinese online fast fashion brand Shein were not banned, though its app was blocked on June 29, 2020, Parliament was informed on Tuesday.

Shein was one of the apps to be banned by Ministry of Electronics and Information Technology (MeitY) in June 2020 after tensions with China escalated on the Himalayan borders.

"Sale of Shein-branded products in India was not banned," Goyal told the Lok Sabha.

The country's leading retailer Reliance Retail Ventures Ltd (RRVL), through its subsidiary RRL (Reliance Retail Ltd), entered into a technology agreement with Shein owner Roadget Business Pte Ltd to develop an indigenous ecommerce retail platform.

This platform is intended to create a network of local manufacturers and suppliers who will manufacture products under the brand Shein and sell them domestically and globally.

"It is expected that this will help in the growth of the Indian textiles manufacturing sector, including local handicraft and create significant employment," said Goyal.

The Ministry of Textiles, after consultation with MeitY, which in turn consulted the Ministry of Home Affairs, conveyed no objection to the proposal of RRVL, he added.

(With inputs from PTI)