What: Shein's entry into the Mexican market has disrupted traditional retailers by attracting a large customer base with affordable fashion.

Why it is important: Shein's success in Mexico highlights the growing influence of international online retailers in local markets and the challenges faced by traditional retailers in adapting to dynamic, digital-first competition. It also underscores the changing consumer behaviour towards online shopping and the strategies local retailers are adopting to remain competitive.

Shein has significantly impacted the Mexican retail sector by offering low-priced fashion items, attracting millions of street sellers and customers through discount campaigns and partnerships. This has challenged established retailers like El Puerto de Liverpool and Coppel, pushing them to adopt new strategies, such as easier credit options and omnichannel approaches, to compete. However, they struggle to match Shein's dynamism and appeal, particularly among budget-conscious consumers and younger demographics. Cuidado Con El Perro, a rapidly growing local fashion chain, emerges as a potential contender against Shein, with its popular and affordable merchandise. Despite Shein's success, concerns over online shopping security and a preference for physical stores among many Mexicans present ongoing challenges for e-commerce growth in the country.

Mexican retailers struggle to grow online as Shein hits market