Fast fashion giant Shein invests nearly $150 million for Brazil apparels

Category: GARMENTS

Country: Brazil

Investment to localize Brazil apparel production

April 22, 2023 9:25 pm
Edited 24.04.2023

Chinese online fast-fashion retailer Shein will invest 750 million reais ($148.9 million) in Brazil over the next several years as part of its plan to make the country its manufacturing and export hub for Latin America.

The company, which also unveiled a Brazilian marketplace for buyers and sellers, said it plans to collaborate with 2,000 local manufacturers, which should result in the creation of 100,000 new employment over the following three years.

As the geopolitical landscape has changed quickly and the US and other countries have imposed more trade restrictions on goods from China, Shein has been working to diversify its supply chain in order to maintain growth.

The Brazilian textile giant Springs Global, which owns the textile maker Coteminas, inked a memorandum of understanding with Shein later on Thursday to "jointly effort for 2,000 of its garment manufacturer clients to become Shein suppliers for the domestic market and Latin America."

Shein claimed that about 85% of sales made in Brazil should come from local manufacturers and sellers by the end of 2026.

According to Shein's Latin American chairman Marcelo Claure, 70% of the products sold in the market are currently imported from China.

Claure, a former senior executive at Japan's SoftBank Group Corp. who joined Shein earlier this year, declared that the business will maintain competitive pricing even after local production began.

The investment was made only a few days after Brazilian President Luiz Inacio Lula da Silva returned from China. His Chinese counterpart, Xi Jinping, pledged to strengthen bilateral ties.

Courtesy: https://en.pingwest.com/w/11651