Shein’s USD 22 Billion IPO marks a 75% valuation drop from its USD 98 Billion peak. In India, Gen Z is walking away as Reliance struggles to revive the fast-fashion giant.
Chinese fashion brand Shein’s Hong Kong listing at a USD 22-25 billion valuation is a stark correction from its USD 98 billion peak, but the story in India is even more revealing.
After a five-year ban, Shein returned in February 2025 through a licensing deal with Reliance Retail, only to find a transformed market where homegrown rivals and Gen Z consumers have moved on.
Reliance’s strategy for the relaunched Shein app is tightly controlled: Shein operates purely as a technology and branding partner, with Reliance Retail retaining 100 percent ownership.
Every Shein-branded product sold in India is designed and manufactured domestically, with plans to scale from 150 to 1,000 suppliers within a year.
The collections are available both on the standalone Shein India app and integrated into Reliance’s Ajio platform, targeting the same value-conscious Gen Z and millennial shoppers who once flocked to Shein.
However, user adoption tells a sobering tale.
While the app crossed 2 million downloads within six months, daily installs plummeted from 50,000 to just over 3,000 by April 2025.
Industry estimates peg current monthly active users at around 650,000—a fraction of the 36 million MAUs Shein commanded pre-ban.
Gen Z—long Shein’s core demographic—has grown increasingly skeptical. While affordability remains a draw, over 70% of this cohort now prefers brands that demonstrate environmental responsibility.
Editor’s Note
A 2024 study found that exposure to negative environmental information significantly reduced Gen Z’s purchase intentions toward Shein, driven by perceived betrayal and rising sustainability awareness.
In India, the shift is compounded by competition from Myntra, Nykaa Fashion, Urbanic, and quick-commerce platforms that deliver trend-led fashion at similar price points with faster logistics.
Reliance’s structured, centralized operations struggled to replicate Shein’s agile, China-based supply chain, leaving the brand unable to match the speed and variety Indian Gen Z expects.
For India’s retail watchers, Shein’s IPO underscores a broader lesson: fast fashion built on regulatory arbitrage and supply-chain concentration is fragile.
In a market where Gen Z values authenticity, transparency, and speed, the brand’s watered-down India offering has failed to recapture its former cult status.
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