NATAL, BRAZIL: In 2023, as Shein was taking Brazil by storm with trendy styles, low prices, and endorsements from megastars like Anitta, the company made an audacious pledge to turn the country into a manufacturing hub for all of Latin America.
Shein got off to a fast start, announcing partnerships with 336 Brazilian factories by the end of 2023. Since then progress has stalled as Shein demanded that local suppliers lower prices and deliver orders faster than they could manage, according to a dozen former manufacturers in its supply chain, industry officials and union leaders.
"Working in Brazil is different from working in China. Brazil has very different regulatory frameworks and standards," said Fernando Pimentel, managing director of the Brazilian Association of Textile and Apparel Industry, which represents more than 25,000 companies across Brazil. "I regret it didn’t work out."
