Panel SA: Shein’s expansion in Brazil worries Brazilian shopkeepers

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Disturbed by the expansion plans of the Chinese Shein chain in Brazil, clothing and footwear retailers are moving to present their concerns to the new government.

The brand intends to open five new temporary physical stores here, but the main complaint is against Shein’s online sales, which, according to Brazilian retailers, are not taxed on an equal footing with local competition.

The movement has gained strength since last year, with the participation of Brazilian electronics retailers, against international marketplaces such as Shopee and Ali Express.

“It is a problem that the state has to face. Entrepreneurs and retailers are pressing. They were in the past government and we must return now. It is a revenue drain for the state and, for us, unfair competition”, says Mauro Francis, president from Ablos (which brings together chains of small shopping mall stores).

The temporary stores are seen as a physical showcase to boost Shein’s digital sales in Brazil and test the market. Founded in China and headquartered in Singapore, Shein is one of the most accessed clothing websites in Brazil. With a catalog of low prices, it opened a temporary store in São Paulo, which attracted queues of thousands of people, causing turmoil in the mall.

Edmundo Lima, director of Abvtex (Associação Brasileira do Varejo Têxtil), also says that clothes do not usually follow the national standard with information on washing, origin and composition. “This can bring harm to the consumer, who can damage the item during washing, in addition to the problem of lack of transparency, which society is looking for today about the origin of products”, says Lima.

Sought by Panel SA, Shein claims that it operates in accordance with Brazilian tax legislation and that it is committed to healthy competition in the fashion industry. “Since we started our operations in the country in 2022, we have been focused on creating new jobs to expand our local teams and to better serve Brazilian consumers. note. About the labels, he also states that he follows legal standards for consumption.

Joana Cunha with Paulo Ricardo Martins and Diego Felix

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