Editorial. E-commerce highlights market imbalances
The rise of cross-border e-commerce through Chinese platforms such as Shein, Temu and AliExpress has reshaped consumer markets across Latin America.
While offering low prices and immediate access to products, it has created significant challenges throughout the regional footwear and leather goods value chain.
Its impact on domestic footwear production has led to price competition that local manufacturers can hardly match. Asian platforms ship parcels directly from factories to consumers (factory-to-consumer), eliminating intermediaries, traditional import duties and local retail margins.
Footwear manufactured locally—subject to local taxes, labor costs and taxed raw materials—cannot compete with products entering the market at prices below their production costs.
This trend is displacing small and medium-sized enterprises and having serious consequences for industrial employment. Major footwear manufacturing hubs in Mexico, Brazil, Argentina and other countries are experiencing a decline in orders for mid-range and urban footwear, affecting productivity and jobs.
The drop in sales is impacting the entire supply chain, including tanneries, sole manufacturers, material suppliers, pattern makers and stitching workshops, among others. In many cases, competition also becomes unfair in terms of standards and regulations. Locally manufactured footwear must comply with strict requirements regarding labeling, construction quality, materials, chemical components and consumer information. Meanwhile, a large share of individual cross-border shipments bypasses these technical customs inspections before reaching consumers.
In response, manufacturers across the region are calling on their governments to strengthen customs controls in order to restore a better balance between tax collection, consumer demand and the necessary protection of domestic industries.
The Editor
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