Shein to build a factory in Mexico? The $457 billion Mexican market is booming
Shein building Mexican factory due to booming $457 billion market
“Mexican e-commerce market reached $45.7 billion?”
Produced by | Direct hit on cross-border e-commerce Author | Chen Lie Article Category: Direct hit on the Mexican cross-border e-commerce market This is the 418th original article of Direct hit on cross-border e-commerce. This article is 1240 words long and takes about 1.2 minutes to read. Direct hit on cross-border original production, no reprint allowed without permission!
An insider revealed that the Chinese fast-fashion giant Shein is studying to build a factory in Mexico!
If this plan is realized, Direct hit on cross-border believes that Shein will have a new manufacturing center outside of China, which will have a positive impact on Shein’s supply speed in the North American and Latin American markets. However, it is reported that the final location of the Shein Mexico factory has not been determined. However, the soon-to-be-built Shein Mexico factory will not accommodate items from third-party suppliers. In response, Shein refused to comment on the plan in an email, but stated that it will be committed to localization when expanding into new markets such as Mexico. At present, Mexico’s booming e-commerce market has made it the second-largest e-commerce market in Latin America and one of the key markets that e-commerce platforms such as Shein are focusing on.
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▲ Image source: internet, infringement deleted During the 2021 pandemic, Mexico’s online shopping transaction volume exceeded $21 billion, a year-on-year increase of 27%, which also made Mexico on the list of “the top five countries with the fastest growth in global e-commerce” for three consecutive years. In the just past 2022, Mexico’s e-commerce also achieved rapid growth. According to Statista, the scale of Mexico’s e-commerce market will reach $45.7 billion in 2022; In contrast, according to research by Mexican American Market Intelligence Company, the annual growth rate of Mexico’s e-commerce market from 2021 to 2025 is expected to reach 24%. Currently, Mexico has more than 88 million internet users, nearly 70% of the country’s total population, of which more than 55 million are e-commerce users. ▲ Image source: internet, infringement deleted Direct hit on cross-border also learned that about 70% of users in 2022 have paid online or purchased goods or services at least once a month, and 78% of users shop on cross-border e-commerce platforms. Moreover, the two largest markets in the world-the large and mature North American market and the fast-growing and younger consumer groups in the Latin American market-are just above and below Mexico, respectively, so if Shein really invests in building factories in Mexico, it will be of great significance for Shein’s development in these two major markets. “Shein’s localization strategy enables us to shorten delivery time to customers, expand product categories and support the local economy.” Regarding Direct hit on cross-border’s speculation, Shein’s Latin American Chairman Marcelo Claure also stated in a statement that the localization strategy in markets such as Mexico will greatly enhance Shein’s delivery efficiency. This also indicates that Shein has introduced its mature market model in the United States into other overseas markets. In fact, as early as April of this year, Shein announced plans to invest BRL 750 million (approximately US$148.9 million) in Brazil over the next few years to establish a manufacturer network in the Latin American market. ▲ Image source: internet, infringement deleted In any case, Shein’s consideration of investing in building factories in Mexico will enable it to complete fast-fashion clothing production in places closer to its sales points. It is also an active attempt to “explore nearshore options.”
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