Brazilian businessmen still need to adapt to new trends in Marketplace. That's why big brick-and-mortar stores open up digital platforms and try to maintain the dominance they display in malls. Unfortunately, the strategy needs improvement, as Shein's product sales already exceed revenue from traditional companies.
Shein earns BRL 7 billion in 2022
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According to a report made by Aster Capital, which is a long only, Shein managed to outperform the big fashion retailers in Brazil. That's because, in 2022 alone, the Chinese store managed to earn more than R$ 7 billion in products. As a result, it sold more than C&A, Renner and Riachuelo combined in the online segment.
Alongside Shein, another retail giant stands out. Mercado Livre had revenues of BRL 6.5 billion in 2022 alone. The sum of the two large digital retailers manages to exceed the total number of sales of the five main players in the sale of fashion products in Brazil, which includes the three already mentioned, Dafti and to Arezzo.
For economists, this happens because Shein manages to gather a greater variety of products in a single place at much more affordable prices. On the other hand, there are no indications that department stores here in Brazil see Shein as a threat, since the biggest investment goes to the physical store, where the biggest return comes from.
More about Shein
The store stands out as one of the forerunners in the fast fashion, which consists of the sale in large volume of identical pieces of clothing over the internet and at a lower price. It originated in China in 2008, on the initiative of entrepreneur and digital marketer Chris Xu, but soon conquered the world and arrived in Brazil in 2020.
The brand has already been through several controversies that are difficult to refute, such as the accusation of collaboration with labor exploitation. Several complaints point to work situations analogous to slavery, in which employees work up to 11 hours a day making clothes without access to labor rights.
