Bradesco: partnership with Shein is the government’s public relationship – 01/18/2024 – Panel SA
[ad_1]
Bradesco BBI report casts discredit on Shein’s operation in Brazil. Signed by four bank analysts, it concludes that the Chinese internet fashion giant is “dependent on fiscal loopholes” and “inherent limitations, such as low service levels (delivery times and returns)”.
The document, obtained by Panel SA, was circulated this Thursday (18) among retailers and investors.
“Shein’s move to local (manufacturing) appears to be more of a PR campaign for government officials than a significant earnings opportunity,” they write.
The initiative referred to by the investment bank’s experts is the result of the partnership in Brazil with Coteminas.
The Brazilian textile group, which belongs to businessman Josué Gomes, president of Fiesp (Federation of Industries of São Paulo), will produce part of the pieces for Shein — a way found to reduce resistance to the network in the country.
As part of the agreement, Coteminas, which is in financial difficulties, received a loan of R$100 million.
The bank’s experts assess that Shein “will face significant barriers to replicating the Chinese apparel supply base beyond China” built on cheap labor and production and export subsidies.
In addition, they also attack the sending of packages to individual importers “represents a potential risk to their extremely low pricing strategies”.
For them, this is relevant at a time when countries begin to review their import tax exemption policies. They cite the case of Indonesia. After the government canceled the exemption, the company left the country.
In Brazil, there are questions about the tax charged only on imported goods above US$50.
The discussion arose from marketplaces, such as Shein, which had been used by retailers who disguised wholesale purchases (in large volumes and values) by dividing them.
When consulted, Shein declined to comment.
With Diego Felix
LINK PRESENT: Did you like this text? Subscribers can access five free accesses from any link per day. Just click the blue F below.
[ad_2]
Source link