Retail Shifts in Latin American Fashion

June 2023

Fashion sales in Latin America have surpassed pre-pandemic levels by 2022, driven mainly by price increases due to high inflation. E-commerce grew strongly to become the second largest channel, but consumers in the region are still more inclined to buy fashion in-store. Retail shifts enhanced the importance of strong omnichannel strategies to keep consumers engaged, challenging fashion brands and retailers to understand their renewed role, one that goes beyond the transactional aspect.

USD 1,325
Request More Information


This report comes in PPT.

Key findings

Fashion sales in Latin America returned to pre-pandemic levels

The Latin American fashion industry was hit hard by the pandemic, with sales declining sharply by 33% in 2020. Following two years of strong performance, sales surpassed pre-pandemic levels. However, most of this growth is driven by price increases due to inflationary pressures across the region, as volume sales remain below or flat compared to those in 2019.

Latin American consumers prefer to buy their fashion items in-store

E-commerce gained relevance since the pandemic, but Latin America is still the region with the lowest percentage of consumers who purchased fashion through this channel in 2022. Latin Americans are more inclined to buy fashion in-store, “seeing or trying before buying” and “immediate purchase” are the key motivators for this preference. Differences exist among generations, as Millennials are more inclined to buy online than the average.

E-commerce is the big winner of the pandemic shift, but stores recovered ground afterwards

The pandemic benefited sales through e-commerce, turning this channel into the second largest for the fashion industry in the region. Return to normality brought consumers back to the stores, but not all channels saw sales reach pre-pandemic levels. Among top channels, specialists recovered the fastest, but department stores remain below 2019 levels. Both face another challenging year in 2023, due to worsened economic conditions in the region.

Omnichannel is just the starting point

Retail channels are no longer only a functional system of the supply chain, instead they turned into a holistic and integrated network that must be focused on creating value for consumers. Omnichannel is just the beginning; fashion players should make their decisions with consumers’ needs in mind, using technology in their favour, and understanding that nowadays their role goes beyond the pure transactional aspect of selling goods.

Executive summary
Fashion sales in Latin America returned to pre-pandemic levels
Apparel and footwear returned to pre-pandemic levels, but other categories lag behind
Although consumers returned to stores, e-commerce remains above pre-pandemic levels
Competition is tough in a very fragmented market
Latin Americans prefer stores to purchase their apparel and personal accessories goods
Trying before buying and immediacy attract consumers to the stores
Millennials, not Gen Zers are more inclined to buy fashion online
Price, free shipping and variety of brands attract consumers to online shopping
Comfort and durability are what consumers in the region look for in their fashion products
Brand name or recognition is not as important for the vast majority of fashion consumers
Winners and losers of fashion retail in Latin America
E-commerce gained ground across categories in the region
E-commerce surged thanks to the pandemic, but not without challenges
Apparel and footwear e-commerce boom attracted new entrants across channels
Alma Bacana : a new shop window for premium brands in Argentina
Although specialists remains the largest channel, it continues to lose share in the region
Specialists face strong competition in a very fragmented market
Varied performance of specialists in the growing sportswear category
Cuidado con el Perro launches MalaYerba a brand appealing to the “young and disrupted”
“Travelling Shop” - Renner’s mobile pop-up store across Brazilian coast
Fashion sales through department stores concentrated in two countries: Mexico and Chile
The shift to e-commerce is evident in department stores
Fashion continues to lose share in department stores’ physical sales
New Falabella store, a glimpse into the future of retail
Grocery retailers’ positioning as a fashion destination benefited during the pandemic
Omnichannel is just the beginning to fulfil consumers’ renewed expectations
Shein goes physical through pop-up stores in Mexico and launches “ SheinMxTour ”
A consumer-centric approach is more relevant than ever
Dafiti’s Experience Centres, getting closer to the consumer
The renewed role of the store: A consumer touchpoint (1/2)
The renewed role of the store: A consumer touchpoint (2/2)
Estudio Nube in Argentina: Opposite path from the “online world” to the “offline world”
Revolutionising the fashion retail experience through technology
Mercado Libre continues to transform the shopping experience through technology
Fashion retail beyond the transaction, the sustainability debt
El Palacio de Hierro collaborates with Della Terra to launch a sustainable capsule collection
Fashion expected to grow, but performance will differ across countries and categories
How much more can e-commerce grow in the region?
Return of travel opens avenues of growth both for retail and duty-free shopping
The path forward: A consumer-centric approach to omnichannel
About Euromonitor’s Voice of the Industry survey series
About Euromonitor’s Voice of the Consumer survey series: Lifestyles Survey
About Euromonitor’s Voice of the Consumer survey series: Sustainability Survey

Personal Accessories

Personal Accessories refers to a diversified group of personal products including Bags & Luggage, Jewellery, Watches and Writing instruments.

See All of Our Definitions


If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extraction Free!