Shein doesn’t stand too far from being one of the largest fashion names. The Chinese company is back in India after being banned due to ascending tensions between the two countries. Shein has made its return to India through Amazon this time.
Fast fashion has become more popular over the recent years. Fast fashion is the term used to describe clothing designs that move quickly from the runway to stores to take advantage of trends. The collections are often based on styles presented at Fashion Week runway shows or worn by celebrities but at a lower and affordable price. Shein stands as one of the biggest players in this sector along with Zara and H&M. Fast fashion is all about speed. Shein tops the list for a reason. it has compressed the process from identifying the trends, to manufacturing and then shipping it to five days. It takes Zara three weeks to ship out and H&M two weeks.
Usage of social media has given these companies the ability to stay on top when it comes to fashion. Shein uses popular influencers such as Madelaine Petsch to sell its products. Whereas, H&M has been leaning into social commerce. It recently was part of a $45 million funding round in Indian social commerce start-up, Trell, which raised capital from Mirae Assets as well. Reports state that Zara spends just 0.3% of its total sales on advertising. It has created a loop between its customers and the designers within the company.
Clothing and textiles production releases 1.2 billion tonnes of greenhouse gases every year. One garbage truck of clothing and textiles is sent to landfill or burned every second, while just 1% of clothing is recycled into new clothing. Over 80% of its textiles make their way to huge garbage dumps every year. the speed at which these companies manufacture and distribute their products has been hurting the environment.
Shein was part of the first list of 59 Chinese apps that were banned by the government in June 2020 under Section 69A of the IT Act. Shein has re-entered the Indian market after being the second banned app. It has made a return during economic recovery of India. One metric economist has used it to measure an increase in spending on fashion.