Return of Shein, BGMI and more: Can they win back customers?

The return and rebranding has to be a well-laid-off plan, especially the marketing and advertising part of it, for them to regain consumer trust, say experts

by Shantanu David
Published - May 25, 2023
4 minutes To Read
Return of Shein, BGMI and more: Can they win back customers?

As brands continue to pivot their gaze towards what is now the world’s most populous country, several foreign companies which had been pushed out of the country due to security and regulatory concerns are looking to make a comeback, as they partner with Indian entities to be able to operate within the country.

The most noteworthy of these are Chinese fast fashion brand Shein, which has tied up with Reliance Retail, and South Korea-based Krafton’s BGMI, with  its retooled version of the popular game PUBG made specifically for the Indian markets. Both of these brands announced their re-entry into India this week, even as other brands are said to be staging their own comebacks as they continue their talks with Indian business houses.

What remains to be seen is how they can win back consumers, even as they placate authorities to avoid further penalties, a business that might prove tricky, given the nationalist element that has slipped into the foreign brands conversation.

Alin Choubey, Business Head- North, FoxyMoron (Zoo Media) says that Shein and BGMI (Battlegrounds Mobile India) were market disruptors when they came to India.  “Their return in partnership with Indian entities and rebranding has to be a well-laid-off plan, especially the marketing and advertising part of it, for them to regain consumer trust and maintain a positive relationship with vigilant authorities as well as the consumer.”

In a similar vein, Sidharth Singh, Co-founder, CupShup, observes, “There are two contrasting data sets to consider. One, there is considerable enmity and anger amongst the Indian audience for Chinese brands. Survey after survey has pointed to the same. So, there is certainly an anti-Chinese sentiment which can be traced to the border flare-up and recent Chinese misadventures. But the second data point remains that despite the PLI scheme introduced by the government, Chinese smartphone brands rule the roost in the India markets.”

He adds, “Despite all the hullabaloo about Apple being gravitated towards India, fact remains that we only produce only 7% of total iPhones and China is way ahead of it. Thus, it isn’t the product or technology or service in this case that consumers have a problem about. It is about the psychology.”

Choubey believes that in order to change this mindset, returning brands will need to take the following steps: Transparent Communication; Localization and Cultural Sensitivity; Social Responsibility Initiatives; Enhanced Data Privacy Measures; and Collaboration with Local Authorities. “It's important for these rebranded brands to show a genuine commitment to the Indian market, local values, and compliance with regulations. By adopting these strategies, they can rebuild trust, attract consumers, and maintain positive relationships with vigilant authorities,” he says.

Chirag Gander, Co - Founder of The Minimalist, says that to ensure a successful re-entry, Shein must adopt innovative strategies that resonate with Indian consumers while addressing ethical concerns from the previous ban.

“Transparency and open communication are paramount for the brand. Ethical sourcing and manufacturing must be prioritized. Shein should emphasize responsible and sustainable practices, ensuring fair wages, safe working conditions, and environmentally friendly production processes. By doing so, they can align themselves with the growing demand for ethical fashion and appeal to socially conscious consumers,” he notes.

“And, I personally believe that most of the time, brands themselves wade into controversy or in hindsight the mistakes seem obvious. The marketing strategy need not change at all for such brands. But they have to be preemptively cautious about any association with nationalistic sentiment, politics and religion which is a no go zone in a country like India,” says Singh, observing, “Just a couple of years back, Late Chief of Defence Staff Bipin Rawat’s attendance in MG Hector program created flutter. The brands should be wary of such instances and they should do fine.”

Joyeeta Ghosal, Director - Marketing, Gokwik, says, “PUBG or rebranded as BGMI, Shein, etc before being banned in India were highly popular brands among Indian users. At one point PUBG boasted of over 50 million monthly active users. Similarly Shein gained popularity among Gen Z users for its fast fashion model on the back of highly competitive pricing.”

Despite the ban, Shein products were still being sold on some marketplace platforms. “These brands should create awareness about their data and privacy norms through both marketing and PR. Shein should definitely think about associating its name with Reliance Retail to establish trust. Consumer popularity should take care of the rest,” concludes Ghosal.

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