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O Brás, situated in São Paulo, stands out as the largest clothing market in Brazil, characterized by an impressive concentration of commercial establishments. In this context, large international retail giants, such as Shein e Mercado Livre, are engaged in a fierce competition to attract local suppliers. j2k1x
This competition highlights the growing relevance of the neighborhood as a strategic market for online commerce. Next, the showmetech explores in detail how Shein e Mercado Livre they are competing to win over Brás's shopkeepers!
The importance of Brás 6v2e3s
The neighborhood of Brás, located in the city of São Paulo, is a true shopping center with a vast diversity of establishments. According to a survey by Brás Shopkeepers Association (ALOBrás), the region covers 55 commercial streets, around 15 thousand establishments and achieves significant annual revenue of R$12 billion. Furthermore, Brás s approximately 200 thousand direct jobs, 400 thousand indirect jobs and receives an average daily circulation of 400 thousand people.
These numbers highlight the importance of Brás as the largest fashion wholesale hub in Latin America, playing a fundamental role in the popular fashion scene in Brazil. Over the years, the neighborhood has been an entry point for small clothing manufacturers, promoting the diversity of affordable products and boosting the sector.
Brás has become a reference in trends, business development and economy, offering opportunities for informal entrepreneurs, large establishments and much more, with reach across the country. The region meets the needs of those who want to start a business to those looking for new pieces of clothing.
In addition to clothing, Brás offers a variety of products including electronics, accommodation and restaurants that attract a large number of shoppers. Karyna Terrel, businesswoman and one of the creators of Canal Brás, shares valuable tips for those who are starting their own business or looking for new suppliers.
Buying wisely, having a good business plan and always backing it up so you don't have a headache later, being prepared for the worst case scenario, is the secret to success
Karyna Terrel, businesswoman and creator of the Brás channel.
Furthermore, the neighborhood is currently highlighted on the Brazilian television scene with Beatriz Reis, the participant of the BBB 24 who gained prominence in the edition as “Beatriz do Brás”. At the age of 23, she began her journey working at Feira da Madrugada, where she announced promotions between 3am and 6am using a microphone and speaker to display the store's products. Christina.
Dispute for Brás started with the pandemic 3q395r
During busy periods, such as the end of year festivities, the region receives around 300 buyers daily. Before COVID-19, merchants sold their products in person in Brás. However, with the start of the pandemic, the local government ordered stores to close, forcing many sellers to migrate online.
Faced with this need to adapt to the digital environment, most sellers started to use the WhatsApp and Instagram to sell to known customers. Few traders have explored selling through websites. It was in this context that the Shein and Mercado Livre realized the still unexplored potential of Brás.
In May of 2023, the Shein announced plans to sell garments manufactured in Brazil, in response to criticism received from national competitors due to the import of products without paying the Import Tax, and after the government's plan to tax international shipments of products below US$50 had been announced.
With this initiative, the Shein intended to generate 100 thousand direct and indirect jobs in the country, with 85% of sales coming from locally manufactured products, thus establishing Brazil as one of its three main global production centers, alongside China and Turkey. The retailer's 336 partner factories are located in 12 Brazilian states: Santa Catarina, Rio Grande do Sul, Paraná, Rio de Janeiro, Minas Gerais, São Paulo, Mato Grosso do Sul, Pernambuco, Ceará, Rio Grande do Norte and Bahia.
In June 2023, the Mercado Livre announced its strategy to attract retailers from Brás and other Brazilian fashion hubs, installing offices and logistics points in the São Paulo region with the aim of attracting small and medium-sized entrepreneurs interested in selling their products through the platform.
Currently, the Shein and Mercado Livre They are competing to win over Brás store owners, using different strategies to attract suppliers. Reports from store owners indicate the emergence of visitors from international retailers offering irresistible offers. For these retail market giants, Brás represents a testing ground for supplier recruitment, and companies continue to improve their integration packages to attract merchants.
According to a Laura Pimenta, representative of Brás Sellers Association, up to 65% of local sellers have not yet started selling online, which makes Brazil's largest clothing market a huge and unexplored hub for online marketplaces.
Benefits to merchants are temporary 6gd4h
A Shein regularly organizes events for Brás store owners. Recently, the retailer's commercial manager in Brazil gave a talk in the region about how to become a successful supplier on the platform. By offering attractive trading conditions, such as an initial 60-day commission-free period, the company quickly attracted suppliers. By November 2023, the retailer had already acquired 10.000 Brazilian sellers for the platform.
Currently, the Shein offers a 0% commission on sales for the first 30 days, followed by a 16% commission, plus free delivery on orders over R$14. Additionally, guidance, sales optimization training and a “boost” are provided. of exposure” during the product’s first 21 days on the platform.
O Mercado Livre arrived in Brás after Shein and, to compete with its rival, it began offering suppliers access to a face-to-face consultant for three months, free delivery for orders over R$16, high-quality photos of products and facilities at delivery points. The company has even set up a facility within the apparel district, where retailers can interact with e-commerce consultants and drop off their clothes to be professionally photographed in a studio with a model, stylist and makeup artist.
Due to these competitive offers, some merchants reported giving up deciding between retailers and opting to partner with both to keep their businesses running. Thus, the pressure to digitalize in Brás continues to grow, but, on the other hand, the conditions offered to suppliers have been getting worse.
However, after the initial offering of Shein, clothing store costs have increased substantially, as reported Alves, owner of a store in Brás, next to Rest of World. She emphasizes that the Chinese retailer has introduced an auction where merchants negotiate with the platform to set the price of a garment.
There are offers I can accept, but some are below my production cost
Alves, owner of a clothing store in Brás
The merchant also reports that she continues to sell her products on Shein and for now, it does not plan to other marketplaces due to lack of time.
Sources: Rest of World, CNN, Veja, ABC
See also:
reviewed by Glaucon Vital in 9 / 4 / 24.
