The store arrives to terrorize Riachuelo

The company, which has been successful among Brazilians, promises to face such popular fashion giants as Riachuelo

In recent years, the Asian market in Brazil has grown significantly. Mainly through e-commerce, the resale of imported clothing at a low price is causing headaches for retailers such as Riachuelo here.

Now national production has become the main activity of one of the largest transport companies of its kind. China-owned Shein has signed agreements with approximately 2,000 local manufacturers to directly serve the Brazilian market until 2026.

As CNN Brasil reports, in May of this year, the Chinese company Chris Xu undertook to sell domestically produced products. This came amid criticism of the federal government’s introduction of taxes on imported products.

Also according to the publication, the investment will amount to R$ 750 million. In addition, the goal is to create 100,000 jobs in the country and have 85% of sales with locally produced parts. With this, Brazil joins China and Turkey as the brand’s largest markets.

One of Shein’s national directors, Fabiana Magalianche, emphasized that they will have 336 partner factories in the country. “We have a bold goal to make Brazil an export center. The country has a good textile park,” the specialist emphasized in the report.

What is happening to Riachuelo?

In 2022, the retailer ended the year with a sharp drop in profits. As reported by the Start Se portal, the fashion designer closed the factory, transferred some stores and carried out mass layoffs.