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The Chinese Shein, Very Famous in Brazil for Its Online Sales App, Plans to Open 5 Temporary Stores in the Country, One of Which Will Be Installed in Belo Horizonte.
The Chinese retailer Shein is planning to open 5 pop-up stores in Brazil next year. One of the units will be set up in Belo Horizonte, and the other cities where the stores will be installed, as well as the opening dates and how long the stores will remain open, have not been confirmed by the e-commerce company. In November, the company opened a temporary store in Shopping Vila Olímpia, São Paulo, which was the first in Brazil to conduct physical sales outside of the brand’s app.
Opening of Shein’s Store Causes Confusion
The opening of the store in São Paulo was chaotic, with 7,000 customers waiting to see the unit and becoming aggressive due to the disorganization of the long lines that formed. Due to the confusion, the company decided to distribute tickets and set a limit of up to 20 minutes inside the store per customer.
The store was open for only five days. According to Shein’s General Director in Brazil, Felipe Feistler, there were reports of people arriving at 3 a.m., and some even camped out, with tents in line. It is clear that those who waited so long may feel frustrated at 9 a.m. when they had to give space to a priority line, as mandated by law.
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Another similar initiative in Brazil took place in March this year, with the opening of a pop-up store at Village Mall in Rio de Janeiro. In about 10 days, the location received 5,000 visitors, the same number of consumers who managed to enter during the five days of the store in São Paulo. However, the store did not have physical sales.
Get to Know the Chinese Shein Better
With growing popularity in the country, the Shein app was the most downloaded in the fashion sector last year, with 23.8 million downloads in Brazil, three times more than its closest competitor, Lojas Renner.
Shein claims it is investing in the country as a strategic market in Latin America. Globally, Shein reaches consumers in over 150 countries. The company does not have a factory and generates jobs for 10,000 people, both direct and indirect.
The company’s differential, according to Feistler, is the on-demand production technology. They test 100 to 200 pieces in the app. Once demand is confirmed, production is scaled up. Everything is very quick in real-time. The retailer estimates that this business model avoids a 20% loss in the production chain.
This way, it is possible to offer lower prices than the market average, according to the general director. Instead of producing 10,000 products only to find out later whether there will be demand or not, they produce 100 to 200 and confirm the demand.
Online Shopping in Brazil Grows
The segment that saw significant growth during the pandemic was online shopping, which is becoming increasingly strong among connected Brazilians. In the first half of this year, e-commerce reached sales of R$ 118.6 billion in Brazil, up 6% compared to the same period in 2021, when sales totaled R$ 111.8 billion.
According to the NielsenIQ report Webshoppers 46, there are currently 49.8 million online shoppers in the country, an 18% increase compared to the same period last year, when there were 42 million virtual consumers.
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