MEXICO CITY, June 22 (Reuters) – Fast fashion giant Shin is looking for more warehouse space in Mexico as it expands its e-commerce operations, part of the company’s plans to gain a bigger foothold in Latin America, three people said. Familiarity with the project.
The China-based Singapore retailer is also expanding its manufacturing network in Brazil, and Reuters reported plans to open a factory in Mexico last month.
Shane’s growth in Mexico comes as the company faces opposition in the United States, where some lawmakers are considering a bill to exempt tariffs used by e-commerce companies that ship low-cost goods from China directly to consumers.
Reuters could not confirm whether Schein’s warehouse plans for Mexico would play a role in U.S. operations.
It is eyeing at least 35,000 square meters (about 377,000 square feet) of warehouse space in a key industrial corridor north of Mexico City, two sources told Reuters, hoping to take a bigger slice of Mexico’s growing e-commerce market. .
One of the people said the company is considering partnering with a logistics provider that is close to the size of Amazon and Mercado Libre warehouses in the same area.
Schein operates two smaller distribution centers outside Mexico City, a third source said. The company is partnering with several local vendors and the new warehouse is intended to ship in Mexico.
Asked about his plans, Shin said he aims to grow in Latin America and sees Mexico as a key market.
“We will continue to expand our proximity options and SHEIN marketplace model in Mexico,” the company said in a statement, adding that the company is looking for faster delivery times and a wider product variety.
Marcelo Claure, chairman of Shein Latin America, recently told Forbes that Shein is looking to make Mexico a production hub for other countries, including the United States.
Dave Marcotte, a senior vice president at Kantar, a retail analyst in Mexico, said the company is poised to attract middle-class consumers because of low prices and a lack of exciting competitors.
“It’s easier for them to stand out,” he said.
The report by Daina Beth Solomon; Editing by Aurora Ellis
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