The Impact Of Shein’S Ban On Small Businesses In India

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The Impact Of Shein’S Ban On Small Businesses In India
06 Aug 2021
8 min read

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At the beginning of this year, the Indian Government banned more than 50 Chinese applications in the country. The list included social, online shopping, and gaming applications. Many were upset seeing the application being banned in India. It not only upset the people but led to having an impact on the small businesses in India as well. One of these applications was Shein, the online shopping platform that provided people with trendy clothing and accessories.#ThinkWithNiche

In India, specifically, in 2020 some apps were banned by the Indian government. One of the apps banned was Shein. As is known, Shein is a very popular online shopping app that brings trendy pieces at affordable rates to the table. The banning of this app left people with very few options as the app was widely used. Although this was not an economic decision but more of a strategic, geopolitics-related decision, however, it bled into the small business industry. As a result of these bans, a lot of small businesses started selling similar products to the ones that Shein used to. And they became popular quite easily as people were actively looking for alternatives to things they could not buy in India anymore.

The banning of this app left people with very few options as the app was widely used. Although this was not an economic decision but more of a strategic, geopolitics-related decision. However, it affected the small business industry in many ways. As a result of the ban, a lot of small businesses started selling similar products as Shein used to. And they became popular quite easily as people were actively looking for alternatives for the things they were not able to get in India.

The ban inadvertently benefited small business owners and we saw a plethora of them doing exceedingly well and gaining large followings and engagement in less than a year. A twin benefit of this series of events was the discouragement of fast fashion to an extent. Since small businesses do not mass produce and are more often than not handmade or locally sourced, the likelihood of them exploiting workers under the pretense of working for a large company is slim. Social media nowadays is quite vocal about fast fashion, its socio-economic impact, and its detriments to climate change and action. As a result of such widespread awareness, people have now started to make conscious efforts to avoid buying from fast fashion brands and turned to small businesses. Not only did this encourage budding entrepreneurs, as mentioned before, but it also boosted the growth of existing small businesses that were not doing as well, as they should have.

While the past year has been hectic, it affected many emotionally, and physically all around the world. The increase in small businesses and upscale trends when it comes to their growth and income is one benefit of it all. It also puts stress on living a sustainable life wherein it is made clear to large corporations that their malpractices do not go unnoticed. Succumbing to fast fashion, falling prey to the low prices, and bulk buying has a dreadful effect on the environment and encourages fast fashion companies to continue and make larger profits. Yes, small businesses can be more expensive than brands like Shein, and it is rather difficult for people who are not as wealthy to afford it. Nevertheless, for people who spend huge sums of money on fast fashion brands. It is much more suitable for society as a whole to buy less but quality products. Although fast fashion has not completely been eradicated as of now. However, the surge of small businesses in the fashion industry over the year 2020 Is most certainly a step in the right direction. 

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