Club Factory and SheIn had earlier come under the government’s radar for allegedly misusing India’s duty-free gift channel and later mis-declaring the value of goods that were being imported.
AliExpress, which ships individual packages, had managed to keep a low profile despite allegedly using similar tactics.
“I am happy that the government has banned Club Factory and SheIn, because they were consistently finding new ways to mis-declare goods,” said a senior Customs official.
“But AliExpress ships products in individual packages through Post, which has been harder to track.”
Club Factory said in a statement that it follows all laws of the region and maintains the “utmost standards of user data security and privacy.”
SheIn did not respond to ET’s detailed queries, while AliExpress and Romwe could not be reached for comment.
Statistics on the share of Chinese ecommerce players in India’s ecommerce market is hard to come by but data collated from multiple industry sources pegs shipment volumes at an estimated 10,000-15,000 a day for SheIn and 50,000-55,000 a day for Club Factory.
AliExpress is estimated to service a lot more orders than its peers.
The sources said shipment volumes for each of these players was far higher before India scrapped the duty-free gifts scheme in December, and after interventions by the Customs department earlier in 2019 led to the seizure of imported goods.