Shein predicts 100,000 jobs in Brazil with nationalization of products

Investment

After a meeting with the Lula government, Shein said it has the objective of transforming Brazil into a textile production and export hub for Latin America

Shein intends to make 85% of its sales within Brazil by 2027, said the Minister of Finance, Fernando Haddad, today (20), after meeting with representatives of Chinese e-commerce. With information from the site Isto é

According to Haddad, the company will manufacture its products in Brazil. “In four years, they intend to nationalize 85% of their sales, in the following sense: the products will be made in Brazil”, said the minister.

Shein must also adhere to the IRS compliance plan. “They will adhere to the plan, as long as the rule applies to everyone. This is our only counterpart”, reported Haddad.

If the rule applies to everyone, Shein will absorb the costs of compliance without passing it on to the consumer, he said. The minister’s agenda shows that Haddad met with the executive vice president, Donald Tang, and the CEO of Shein in Brazil, Yuning Liu.

What does Shein say?

In a statement, Shein said that it has the objective of transforming Brazil into a center for textile production and exports to Latin America.

“The company plans to partner with 2,000 local manufacturers and create approximately 100,000 jobs over the next three years to produce Shein branded garments,”

says the text.

According to the company, the initial investment should be R$ 750 million to “provide technology and training to manufacturers”.

“We have seen great success in Brazil since our launch in 2020,” said Marcelo Claure, chairman of Shein for Latin America. “With increasing consumer demand, we saw the opportunity to localize our supply chain more to benefit consumers, small businesses and the broader economy.”

In addition to the investment, Shein announced the creation of a marketplace of local sellers to meet demands in Brazil. The model began to be tested in the country in 2022. The company’s expectation is that, by the end of 2026, around 85% of its sales will be local, both from manufacturers and sellers.

Understand

The discussion about foreign e-commerce compliance, which involves Shein, with the Federal Revenue began when retailers and businessmen appealed to the Ministry of Finance in early March, to denounce what they classify as “digital contraband”.

The group denounces alleged fraud in the shipment of goods that enter the country fractionally and with false data, such as the amount below the website and on behalf of individuals, for example. This would be a way to take advantage of the exemption on orders of up to US$ 50 and thus circumvent Brazilian tax rules.

Today, the Tax Authorities charge a fee of 60% on the value of an order from abroad that exceeds US$ 50 sent by individuals. With Haddad’s announcement, the Revenue does not change any of the export and import rules.

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