Shein Deal to Re-Enter India Comes With Strict Licensing Rules
- Arrangement limits equity, allows for technology transfer
- India banned dozens of Chinese firms in 2020 after clashes
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Chinese-founded online fast-fashion giant Shein won approvals to re-enter India only after agreeing to a stringent licensing deal with Mukesh Ambani’s Reliance Industries Ltd., according to people familiar with the matter.
The agreement, which comes three years after Shein was booted out of India, will require the retail arm of Reliance to fully own the domestic business, while Singapore-headquartered Shein will offer production support and training to over 25,000 small and mid-sized local suppliers so they can produce for Shein-branded products globally, the people said, asking not to be identified because the details are private.