Brazil's appealing e-commerce and EV markets are wooing Chinese manufacturers
Due to its economic stability, booming industry and an increasingly connected consumer market, Latin America's largest country is quietly attracting some of China's most prominent tech names.
A few months ago, ultra fast fashion e-commerce retailer Shein, based in Guangzhou, announced it will open a manufacturing plant in Brazil in the next two years. Brazil is indeed a strategic location to help Shein save with shipping costs to the U.S., its largest consumer.
This past week, Brazil also announced the country will be home to the first electric-car plant of Chinese automaker BYD outside Asia. Amid a global surge in sales and overall appetite for electric vehicles, BYD is seeking to extend its geographical reach, and Brazil was an obvious first stop. EV sales are expected to grow 4% by 2025.
That such firms are going into the country is also inspiring local startups , given the size of the market —over 214 million people, more than 80% of which have a smartphone— and the interest of VC firms. Startups like Vammo are building EV rental programs for delivery workers in Sao Paulo and plenty of local startups like Enjoei, which trades on B3, serve users who want to resell clothes online.Sources: Bloomberg