For SHEIN, Location and Distribution Logistics Are Crucial in Choosing an Industrial Property

According to Julio Manzano, the Head of Logistics at SHEIN in Brazil, the retailer's decision was informed by a comprehensive distribution strategy.
The Chinese retailer SHEIN has the largest absorption in Brazilian industrial properties this year, so far

GLP Guarulhos II is one of the strategically positioned industrial properties

By: SiiLA News

09/19/2023

São Paulo State is at the forefront when it comes to industrial properties in Brazil. Currently, it boasts a staggering 12,793,273 square meters of such properties, representing a substantial 54% of the national total. These figures are sourced from SiiLA's Market Analytics platform. The proximity to the country's largest metropolis makes the Greater São Paulo region an enticing prospect for both companies and investors. Notable cities like Cajamar, Barueri, Guarulhos, and Jundiaí are prime examples of areas with a significant concentration of industrial ventures.

Among the companies establishing themselves in these thriving regions is the Chinese retailer, SHEIN. In the first quarter of 2023, SHEIN went even further by expanding its operations, securing an additional 55,000 square meters in the GLP Guarulhos II logistics condominium. As of today, this fast-fashion multinational occupies a substantial 160,280 square meters within this property.

According to Julio Manzano, the Head of Logistics at SHEIN in Brazil, the retailer's decision was informed by a comprehensive distribution strategy. They strategically aimed for proximity to the highways within the Rio-São Paulo axis, which is one of the brand's largest consumer markets in the country.

Manzano emphasized, "The GLP Guarulhos II condominium is strategically positioned, merely 18 km from the capital of São Paulo, and in close proximity to the Presidente Dutra and Ayrton Senna highways. These are the primary access routes to the Rio-São Paulo axis, the largest consumer hubs in Brazil. Furthermore, SHEIN operates two additional logistics centers, located in the municipalities of Embu das Artes and Perus. When combined with the GLP complex, Guarulhos I and II, these facilities ensure a comprehensive operation encompassing approximately 220,000 square meters of storage, sorting, and product distribution," as per Manzano's statement.

Apart from location, a pivotal criterion for selecting an industrial property was infrastructure. To qualify for a SHEIN operation, these condominiums must adhere to rigorous construction standards and sustainability best practices, spanning from project inception through construction to daily operations for clients.

Market Outlook

According to SHEIN's Head of Logistics, the country has significant business growth potential

Manzano identifies potential not only in São Paulo but across the entire country. He emphasizes that Brazil's vast dimensions and the opportunities to bolster its logistics infrastructure remain pivotal factors propelling growth. As of April this year, SHEIN committed an impressive investment of R$750 million, signaling its intention to further solidify its presence in the nation.

In a significant development, SHEIN recently joined the Federal Government's "Remessa Conforme" program, receiving authorization to conduct operations under its umbrella as of the last Thursday (14). This government initiative provides exemptions from import taxes for purchases valued up to US$50.

Adriano Depentor, President of the Union of Cargo Transportation Companies of São Paulo and Region (SETCESP), underscores the allure of cities neighboring São Paulo for companies seeking to establish themselves in the region.

Depentor explains, "The prominence of these centers can be attributed to several factors, notably the accessibility, primarily via the Rodoanel highway. Additionally, the cost per square meter for construction here is notably more competitive than in São Paulo itself, and these locales are effectively within the capital's sphere. This is especially advantageous for entities utilizing elongated vehicles like bitrem trailers and firms dealing with substantial product volumes."

Depentor highlights that the upswing in regional occupancy can be traced back to the post-pandemic market recovery, motivating numerous enterprises to secure new spaces or expand their existing operations—whether for establishing new distribution hubs, sorting facilities, or industrial machinery.

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