Ultra-fast fashion is gaining traction in Latin America, with young consumers like Chilean student Isidora Olave opting for affordable online purchases from platforms like Shein. E-commerce sales reached $122 billion last year, projected to hit $200 billion by 2026. However, this surge poses challenges for local customs and has prompted Chile and Brazil to remove tax exemptions on low-cost imports. Experts warn of the environmental impact and impulsive buying behavior driven by social media trends, while Shein plans to establish manufacturing hubs in Brazil.
The Rise of Ultra Fast Fashion in Latin America
Isidora Olave, a 20-year-old student from Chile, has just unwrapped her latest bargain package from China, which includes a T-shirt, a skirt, and some fun stickers. Like many of her peers, she is drawn to the allure of ultra-fast fashion, a trend characterized by incredibly low prices and ever-changing collections. “I turned to Shein because I needed a specific outfit and it was significantly cheaper than buying it here in Chile,” she shares as she excitedly reveals her new items.
Olave’s haul cost her just $15, which she believes is about half of what she would spend in a local store. Her experience reflects a larger trend, as e-commerce in Latin America saw a staggering $122 billion in sales last year, with projections suggesting this figure could soar to $200 billion by 2026, according to Statista.
Challenges and Changes in Local Commerce
As platforms like Shein, Temu, and AliExpress surge in popularity, Chilean customs are facing unprecedented challenges, processing over 80,000 packages daily. In 2023 alone, customs handled 20 million packages, with expectations to reach 30 million by next year. This represents an incredible increase of approximately 1,000% over the past five years, as noted by Maria José Rodriguez, the head of Santiago’s metropolitan customs tax department.
In response to the growing influence of these Chinese platforms, which are rapidly outpacing American retailers, Chile and Brazil have recently dismantled tax exemptions on low-cost purchases from these websites. “This is a necessary step for fairness in Chile,” commented President Gabriel Boric. Meanwhile, Mexico is planning to enhance regulations surrounding this type of online shopping.
Experts, however, are skeptical about the efficacy of these measures. Sofia Calvo, a Chilean journalist specializing in ethical fashion, emphasizes that the allure of ultra-low prices and the shift in consumer attitudes toward clothing as disposable items are driving this trend. Furthermore, the environmental implications of fast fashion are alarming, as the industry accounts for more than 8% of global greenhouse gas emissions and contributes significantly to water pollution.
In a world increasingly focused on image and social media, the addictive nature of online shopping, particularly among younger generations, raises additional concerns. “Many opt to spend their evenings scrolling through screens instead of watching TV, often leading to impulse purchases,” states Veronica Massonier, a Uruguayan market expert. She notes that consumers are often driven by the thrill of newness rather than necessity, highlighting the fleeting satisfaction derived from these purchases.
Amidst these changes, Shein is solidifying its foothold in Latin America, with plans announced by regional president Marcelo Claure to establish “2,000 factories” in Brazil. This move aims to position Brazil as a key hub for manufacturing and distributing products throughout the region.