- Brazil to become a manufacturing and export hub for the rest of Latin America
- SHEIN to invest initially US$ 150 million to enhance the competitiveness of the Brazilian textile manufacturers
- Additionally, SHEIN will launch a local marketplace with Brazilian third-party sellers supporting local small and medium entrepreneurs
Brazil, 20 April, 2023 – SHEIN, a global e-retailer of fashion, beauty, and lifestyle products, has announced that it is increasing its investment in Brazil to become a manufacturing and export hub for Latin America. The company plans to onboard 2,000 local manufacturers and create approximately 100,000 jobs in the next three years to support this strategy and produce SHEIN-branded products.
To support local manufacturers and enhance competitiveness, SHEIN will invest initially US$ 150 million to provide tools and training for factories to upgrade its traditional production models to SHEIN’s industry-leading, on-demand production model. This will enable local producers to better manage orders, reduce waste at the source and lower excess inventory, resulting in greater agility to respond to market demand. In addition to benefiting the local communities, this onshoring of production will also contribute to the overall competitiveness of Brazil’s manufacturing industry with the potential for increased export opportunities.
“Key to our growth strategy is leveraging our global scale and operational excellence to support and contribute to local economies and eco-systems”, commented Marcelo Claure, Chairman of SHEIN in Latin America. “We have seen great success in Brazil since our launch in 2020 and with increasing consumer demand, we saw the opportunity to localize more of our supply chain to benefit consumers, small businesses and the wider economy”.
“We started working with SHEIN recently and since then we have achieved 120% volume growth. SHEIN has a clear work methodology and know-how to structure the industry for e-commerce. One of the biggest differentials of the company is the agility in analysing the sales performance of the product and the rapid request for replacement, which is done automatically”, said Kauê Chofi, owner of the Naif textile factory.
MARKETPLACE
In addition to the local manufacturing strategy, SHEIN has announced today its integrated marketplace to onboard local third-party sellers to meet the demands of SHEIN’s Brazil customers for a much wider variety of products and product categories, as well as quicker fulfillment times. This marketplace format was piloted in Brazil in 2022.
By onboarding local sellers, SHEIN is also empowering the local seller community to reach the company´s customer base via SHEIN’s website and app. This further strengthens SHEIN’s commitment to empowering entrepreneurs and local communities. with increased customer satisfaction, expanded product portfolio and improved order fulfilment logistics.
“Brazil is an important market for us, and we are committed to continuing to support economic growth and success across the country,” added Felipe Feistler, Brazil General Manager at SHEIN. “Our goal is to support Brazilian manufacturers and suppliers so they can increase their growth and reach within the region as well as act as a building block for future global opportunities.”
“Thanks to the support and reach of the SHEIN marketplace, we saw an increase in sales of about 220% in just three months. We reached consumers we wouldn’t have otherwise reached and as a result, doubled our daily order numbers. On promotion days, sales increased by an incredible 300%,” remarked João Paulo Galvão, owner of Moderna & Slim and a third-party seller from last year’s pilot.
The marketplace model allows sellers to also increase brand awareness amongst Brazilian consumers, supporting the brands to be recognized as fashion brands, unlike other marketplaces. Additionally, sellers can avail themselves of SHEIN´s vast brand marketing experience, social channels, logistics and distribution ecosystem.
SHEIN’s expectation is that by the end of 2026, about 85% of its sales will be local, from both manufacturers and vendors.
