Chinese fashion retail giant Shein is investing $150 million in Brazil's expansion

Shein, a fast-fashion company with roots in China, has announced its intention to invest almost $150 million in Brazil, with the aim of establishing the country as its manufacturing and export hub for Latin America – part of its global expansion plan.

The investment will be used to upgrade traditional production methods, provide tools and training for local factories, and enable local producers to better manage orders, reduce waste at the source and lower excess inventory.

Shein hopes that the investment will benefit approximately 2,000 local manufacturers and create around 100,000 jobs within the next three years. Additionally, the company plans to onboard third-party Brazilian sellers to its online marketplace, after a successful pilot programme last year.

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The company also aims to have 85% of its sales sourced from local manufacturers and vendors by the end of 2026 as it currently imports 70% of the products sold in the Brazilian market from China, Shein's Latin American Chairman Marcelo Claure, revealed in a statement

The company plans to diversify its supply chain and reduce its reliance on Chinese products in light of a continued set of U.S. trade restrictions on imports from China.

Earlier this month, the e-commerce platform became the latest target of the U.S. government, after an official report raised concerns over their data risks, sourcing violations and intellectual property infringements.