What: Entrepreneurs across Mexico are capitalizing on Shein’s cult following and cheap prices by creating networks of shops dedicated to bulk buying, warehousing and selling Shein products.

Why it is important: The lack of permanent physical Shein locations along with Mexico’s lack of trust in digital businesses and low connectivity rates in large parts of the country has made it possible for boutiques to sell the fast-fashion products despite lacking authorization.

While internet penetration has a rate of 75%, Mexico’s digital shoppers only account for 9% of the country’s formal retail purchases. Many of these boutiques instruct customers on how to order through them while selling products at the same price that appears online. The method for making a profit lies in the boutiques leveraging the gamified discount system. They receive a wholesale price by buying in bulk and receive points that can be exchanged for discounts from every purchase.

Mexico is a priority country for Shein as they have made repeat appearances of their travelling pop-up shops over the past couple of years.

Unauthorized Shein boutiques appear across Mexico