E-commerce

India’s Gen Z fashion paradox—all hype, little scale

Pranav Balakrishnan

February 25, 2025 | 10 Min Read

After Shein exited India in 2020, a wave of domestic startups emerged to take its space. Most have either struggled to scale, pivoted, or shut down altogether. Even e-commerce platforms’ Gen Z fashion plays have struggled to scale. Is it a bug or a feature?

Key Takeaways

Despite multiple attempts to fill Shein's void since 2020, India's Gen Z fashion market remains underdeveloped. Even category leaders today generate only modest revenues
Gen Z consumers are price-conscious and brand-agnostic, resulting in low order values and infrequent purchases that hinder scaling
Major platforms continue investing in the category despite this, driven by FOMO and hopes for eventual breakout success, a la quick commerce
2025 is viewed as a make-or-break year for the space, with a potential consumption boost expected from the government’s recent income tax relief for those earning under Rs 12.75 lakh

Gen Z fashion in India is having a moment. Or, at least, it should be.

Earlier this month, China’s Shein, once the undisputed leader in fast fashion, made a dramatic return to the country after being banned by the Indian government in 2020. This time around, it has Reliance Industries, India’s largest conglomerate, in its corner, having partnered with Reliance Retail for its second innings in the country.

In mere days, Shein’s disruptive potential was evident, quickly becoming the most downloaded app on Google’s India Play Store. However, while many are expecting Shein’s re-entry into India to shake up the market, the Gen Z fashion space it primarily caters to hasn’t lived up to expectations since the company last hawked its wares in the country.

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