Explained: As Shein returns to India following 2020 ban, a look behind the company's meteoric rise

Shein, the Chinese online fashion and sports retailer, which was banned by the Indian government in June last year along with other Chinese apps, is making a comeback in the country. The e-commerce platform will re-launch in India on Amazon during the two-day Prime Sale, which starts at midnight on 26 July and ends on 27 July.

But unlike before, the fast-fashion retailer will only be launched as a seller (on Amazon) and not as a separate e-commerce platform, according to Business Insider .

Gen Z and low prices

Over the years, Shein had been gaining considerable ground on more established rivals like Zara and H&M. Earlier this year, TechCrunch reported how the retailer’s became the most downloaded shopping app on iOS and Android in the United States, besting, somewhat ironically in India’s case, Amazon for the top spot. Although, despite the success among young customers, the company has managed to maintain a somewhat low-profile (compared to the brands mentioned above), and is relatively unknown in China.

Founded in 2008, Shein primarily targets the “Gen Z”; using influencers on social-media platforms like Instagram and TikTok, and discount codes, to attract shoppers in an increasingly crowded fashion market, reports Reuters . The retailer offers low-cost styles, uploading hundreds of new designs to its app every week.

Under the hood

Nikkie provides insights into the working model of the company that has led to its meteoric rise. The company has not only shortened the time from design of a new piece of clothing to mass production, it also studies Google Trends, competitors’ websites and user-behaviour for data analysis of fashion trends and to forecast demand and inventory needs. The prices of its products are much cheaper than its competitors, a feat attained utilising China’s excess textile and apparel production capacity.

Little else is known about the inner workings of the privately held and secretive company, notes CNN . Although it bills itself as a global company, with a reach that includes more than 220 countries or regions across the world.

Environmental impact

But the company has also come under fire for being unethical and unsustainable in its operation, especially its environmental impact. “Shein’s business model drives — and depends on — overconsumption… it’s hard to imagine Shein embracing corporate accountability without widespread consumer pressure,” notes Vox , while adding the company is “poised to be the fashion giant of the decade” regardless.

Additionally, concerns have been voiced consistently about Shein’s internal policies. The chorus has grown louder over the years as there is virtually no information on how Shein is governed as a company. However, cheap prices can sometimes be an indicator of a company’s labour practices. “The main concerns with ultra-fast-fashion companies like this — and Shein isn’t the only company producing thousands of styles a week — is the lack of information. There’s a history of long, exhausting working hours for some garment workers,” notes Sarah Ditty, Global Policy Director at Fashion Revolution, an organisation that was formed shortly after Bangladesh’s 2013 Rana Plaza disaster.