{"id":6690,"date":"2025-05-23T22:00:00","date_gmt":"2025-05-23T16:30:00","guid":{"rendered":"https:\/\/www.thirdeyesight.in\/?p=6690"},"modified":"2025-06-03T22:12:34","modified_gmt":"2025-06-03T16:42:34","slug":"indias-richest-man-cant-crack-e-commerce-even-with-shein","status":"publish","type":"post","link":"https:\/\/myechoproject.com\/TES\/indias-richest-man-cant-crack-e-commerce-even-with-shein\/","title":{"rendered":"India\u2019s richest man can\u2019t crack e-commerce, even with Shein"},"content":{"rendered":"\n

By Kunal Purohit and Ananya Bhattacharya, Rest of World
Mumbai, India, 23 May 2025 <\/em><\/p>\n\n\n\n

Online retail continues to elude India\u2019s richest man.<\/p>\n\n\n\n

The Shein India app, launched by Mukesh Ambani\u2019s Reliance Retail in partnership with the Chinese fast-fashion giant, has struggled to gain traction in a market where Amazon and Walmart have been fighting neck-to-neck for nearly a decade. Downloads for Shein India nosedived from 50,000 a day shortly after its launch in early February to 3,311 in early April, according to AppMagic, a U.S.-based app performance tracker.<\/p>\n\n\n\n

In April, when U.S. tariffs hit China, the app saw renewed interest as it was in the news, but experts are unclear on whether this growth is sustainable.<\/p>\n\n\n\n

\u201cUnlike earlier times, now \u2026 [the] market is saturated with multiple options and offers, and user interest can quickly dwindle,\u201d Yugal Joshi, partner at global research firm Everest Group, told Rest of World.<\/p>\n\n\n\n

Kushal Bhatnagar of Indian consulting firm Redseer, however, sees the late-April spike as a healthy sign, given that Reliance has yet to run paid marketing campaigns for Shein.<\/p>\n\n\n\n

Reliance Retail declined to respond to Rest of World\u2019s queries about its partnership with Shein.<\/p>\n\n\n\n

Reliance launched Shein for India five years after the original Shein app was banned in the country over border tensions with China. But the Shein that has returned is entirely separate from Shein\u2019s global platform: Rather than selling made-in-China clothes and accessories directly to consumers, Shein now operates as a technology partner, while Reliance Retail handles the heavy lifting \u2014 from sourcing and manufacturing to distribution. All consumer data is managed by the Indian company.<\/p>\n\n\n\n

The partnership is part of Ambani\u2019s broader effort to overhaul his retail business, whose valuation fell to $50 billion in 2025 from $125 billion in 2022. Although the company has made a push into digital platforms like JioMart, Ajio, and most recently Shein India, the bulk of its retail revenue still comes from its 18,000 physical stores.<\/p>\n\n\n\n

Lagging behind Amazon and Walmart-backed Flipkart, which together control nearly 60% of India\u2019s e-commerce market, Reliance has spent years trying to break into the sector. Between 2020 and 2025, Ambani\u2019s group acquired majority stakes in companies spanning digital services, online pharmaceuticals, and quick commerce. But the investments have yet to position Reliance as a serious challenger to Amazon and Flipkart.<\/p>\n\n\n\n

Analysts say the Indian behemoth hopes to leverage Shein\u2019s artificial intelligence-powered trendspotting and automated inventory systems to pursue an ambitious goal: capturing a major share of India\u2019s e-commerce market, projected to hit $345 billion by 2030.<\/p>\n\n\n\n

According to Kaustav Sengupta, director of insights at VisionNxt, an Indian government-funded initiative that uses AI to forecast fashion trends, such a model is likely to make good use of Reliance\u2019s humongous customer data sets: more than 476 million subscribers for its Jio telecom brand, 300 million users for e-commerce platform JioMart, and 452 million subscribers for its news and entertainment portfolio, consisting of 63 channels, a streaming service, and digital news outlets.<\/p>\n\n\n\n

\u201cWith these data points, Reliance wants to now sell fashion products, so all it needs is a system where it can feed all these data points,\u201d Sengupta told Rest of World. He said the model would be able to predict best-selling products and suggest the right prices for them.<\/p>\n\n\n\n

The original Shein app uses AI-driven models for intelligent warehousing and to spot customer trends before manufacturing a new product. It scales the manufacturing up or tweaks the designs based on the feedback. At any given time, the Shein website has a catalogue of more than 600,000 items. Its Indian iteration does not match up, according to reviews on the Google Play store. Several customer reviews for Reliance\u2019s Shein app are critical of higher prices and reduced options. The app\u2019s rating hovered at 2 out of 5 until February; in May, it climbed to 4.4, but reviews were still a mixed bag.<\/p>\n\n\n\n

Reviews of the Indian app highlight the disparity with Shein\u2019s global version, criticizing higher prices and a reduced selection of categories and styles.<\/p>\n\n\n\n

As of April 25, Reliance Retail said only 12,000 products were live on Shein India, a stark contrast to the 600,000 items available on Shein\u2019s global platforms. While Shein is reportedly set to debut on the London Stock Exchange this year, Ambani\u2019s years-old promise to take Reliance Retail public remains unfulfilled.<\/p>\n\n\n\n

Reliance Retail, which accounts for around 30% of the conglomerate\u2019s overall business, is facing a slowdown in annual growth. Its sales rose just 7.9% in the fiscal year ending March 2025, down from 17.8% the previous year. Meanwhile, shares of rival Tata Group\u2019s retail and fashion arm, Trent, have soared by 133%.<\/p>\n\n\n\n

\u201cReliance would have looked at reviving that momentum and riding on it, while for Shein, adding India back on its portfolio of markets could be a plus point before its proposed public listing,\u201d Devangshu Dutta, founder of Third Eyesight, a brand management consultancy that has worked with various global e-commerce brands including Ikea, told Rest of World.<\/strong><\/p>\n\n\n\n

A Reliance Retail official privy to information about its fast fashion expansion plans told Rest of World the partnership with Shein also hinges on global manufacturing ambitions as the Chinese company is trying to \u201csource its products from other countries like India\u201d to meet the \u201cadditional demand that is coming from newer markets.\u201d Reliance Retail has tapped a network of small and midsize Indian manufacturers to locally source products, and its subsidiary Nextgen Fast Fashion Limited is leading the charge. \u201cWe need to first scale up our domestic manufacturing, before our partnership starts manufacturing for global markets. Let us see how that goes, first,\u201d the official said, requesting anonymity as he is not authorized to share this information publicly.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

India\u2019s Gen Z population is at 377 million and counting, and their spending power is set to surpass $2 trillion by 2035, according to a 2024 report by Boston Consulting Group. Every fast-fashion retailer wants to capture this market, but it \u201cis very new even for Reliance,\u201d Rimjim Deka, founder of Indian fast-fashion platform Littlebox, told Rest of World.<\/p>\n\n\n\n

Deka said smaller brands like hers \u201cjust see [a trend] and implement it,\u201d which could take a large conglomerate months to do, by which time the trend may have lost relevance.<\/p>\n\n\n\n

Reliance\u2019s previous attempts to attract young shoppers with clothing brands like Foundry and Yousta failed to find much success. Anandita Bhuyan, who works in trend forecasting and product creation for fast-fashion clients like H&M and Myntra, told Rest of World the company has struggled to effectively leverage consumer data and target India\u2019s youth.<\/p>\n\n\n\n

According to the Reliance Retail official, the company is confident that if \u201cthere are 10 existing brands, the 11th brand will also get picked up as long as there is value and there is fashion.\u201d<\/p>\n\n\n\n

\u201cShein already has a recall among the youth. It gives us yet another brand in our portfolio through which we can cater to the youth,\u201d the official said.<\/p>\n\n\n\n

Shein was built in China on the back of more than 5,400 micro manufacturers \u2014 a scattered and loosely organized network of small and midsize factories.<\/p>\n\n\n\n

In January this year, on a visit to China, Deka met with manufacturers working for Shein and Temu. On the outskirts of Guangzhou, Deka saw factories set up in areas that appeared residential, with \u201cwomen sitting inside houses\u201d making clothes.<\/p>\n\n\n\n

\u201cThe tech is built in a way that somebody sitting there is able to see that, okay, next 15 days or next one month, how much I should be making \u2026 that is the kind of integration they have done,\u201d Deka said.<\/p>\n\n\n\n

Deka told Rest of World this model is easier to replicate at a smaller scale. \u201cMe, coming from [the] supply chain industry, I understand that it is much easier for a brand like us because we are at a very smaller scale. We can still go to those people, we can still build it in a very unorganized way and then pull it off,\u201d she said. Her company\u2019s annual net revenue is 750 million Indian rupees ($8.6 million).<\/p>\n\n\n\n

\u201c[But] somebody like Reliance, they just cannot go haphazard here. \u2026 It has to be always organized,\u201d Deka said.<\/p>\n\n\n\n

Shein moved its headquarters to Singapore sometime between late 2021 and early 2022, a strategic departure to distance itself from its Chinese origins and facilitate hassle-free international expansion amid the U.S.-China trade war.<\/p>\n\n\n\n

India is part of Shein\u2019s wider strategy to diversify its supply chain \u2014 one that also includes a newly leased warehouse near Ho Chi Minh City in Vietnam, and efforts to establish alternative manufacturing hubs in Brazil and Turkey.<\/p>\n\n\n\n

But in India, Reliance needs Shein as much as Shein needs Reliance for its global pivot. According to Bloomberg, Reliance Retail is focusing on creating leaner operations to weather a wider consumption slump in the Indian economy.<\/p>\n\n\n\n

\u201cIt remains to be seen whether the Reliance-Shein combine can deliver on the brand\u2019s promise with a wide range of products, fast and on-trend,\u201d Dutta said. \u201cIn the years that Shein has been absent, the Indian market has evolved further, competition has intensified, and past goodwill is not enough to provide sales momentum.\u201d<\/p>\n\n\n\n

Kunal Purohit is a freelance journalist based in Mumbai, India.
Ananya Bhattacharya is a reporter for Rest of World covering South Asia’s tech scene. She is based in Mumbai, India.<\/em><\/p>\n\n\n\n

(Published in Rest of World<\/a>)<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

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The Shein India app, launched by Mukesh Ambani\u2019s Reliance Retail in partnership with the Chinese fast-fashion giant, has struggled to gain traction in a market where Amazon and Walmart have been fighting neck-to-neck 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