For Mariana Garfias Torres, a 30-year-old nutritionist in Mexico, supplementing her income began with selling housewares from Betterware, a well-known Mexican catalog company, in 2022. Her process was straightforward: she shared Betterware’s digital catalog with her network, took orders, and earned profits and commissions. However, recently, her offerings have expanded to include a new category that’s capturing significant attention: clothing and accessories from Shein Mexico.
Shein, the fast-fashion behemoth founded in China in 2008 and currently headquartered in Singapore, has experienced explosive growth, largely fueled by its savvy use of social media for exposure. Garfias Torres’s customers now frequently send her screenshots of items they discover on the Shein app, which she then orders for them.
“Now that Shein and Temu have increased their social media advertising, I’ve noticed they are offering more innovative and cheaper products than Betterware,” Garfias Torres shared with Rest of World. “My customers have also taken notice.”
The rising popularity of Chinese e-commerce platforms like Shein and Temu in Mexico is having a ripple effect. An estimated six out of ten catalog sellers in Mexico are now incorporating products from these online platforms into their inventory, according to Bitácora Social, a research center focused on business and society. This shift, while providing new avenues for these 3.1 million catalog sellers — predominantly low-to-middle-income women over 45 who thrive on personal, face-to-face customer interactions — is inadvertently accelerating the decline of traditional catalog sales companies within Mexico.
Industry experts are keenly aware of this evolving landscape. Fernando Jiménez Velázquez, former director of communications and content at Tupperware and former treasurer of the Mexican Association of Direct Sales (AMVD), explained to Rest of World that direct sales companies are actively seeking ways to “offset or contain” the integration of Shein and Temu products by their sales force.
The digital age has further facilitated this transition. Many catalog sellers, who traditionally distributed catalogs via WhatsApp and Facebook, are now seamlessly integrating images of items from Temu and Shein Mexico into their online promotions. A Facebook group, for example, with nearly 150 members, openly advertises products from Betterware, Tupperware, Shein, and Temu. Potential buyers browse these platforms or digital catalogs, screenshot desired items, and send them to the seller via WhatsApp along with an initial payment. The remaining balance is settled upon delivery, typically around 20 days later, often hand-delivered by the catalog seller.
This hybrid approach caters to a significant segment of the Mexican population that remains hesitant about direct online shopping, according to a study by the Mexican Association of Online Sales (AMVO). Concerns about online scams are prevalent, leading many Mexicans to prefer purchasing through trusted intermediaries, such as catalog sellers, with whom they have cultivated reliable, personal relationships through consistent in-person interactions.
Lizbeth Sánchez, an office secretary in the State of Mexico, began her journey of buying and reselling Shein Mexico items to colleagues in 2022. “After that, I built a [Facebook] page to reach more people,” Sánchez told Rest of World, highlighting the organic growth of her business. As demand increased, she expanded her catalog offerings to include Betterware and Concord, a company specializing in bedding and home décor.
María del Pilar Montero, a senior researcher at Bitácora Social, emphasizes that women like Sánchez are “selling the practicality of buying for a population that cannot or does not want to shop online.” They bridge the gap for consumers who value personal interaction and trust in purchasing, particularly in the burgeoning online marketplace of Shein Mexico.
The data underscores Shein Mexico‘s powerful market penetration. For the past year, both Shein and Temu have consistently ranked among the top three most downloaded shopping apps in Mexico, according to Data.ai, an app analytics firm. This dominance in app downloads reflects the significant shift in consumer behavior and the increasing embrace of these platforms.
The catalog sales or direct sales model, pioneered by companies like Mary Kay, Tupperware, and Betterware in the US and UK, has deep roots in Mexico. Popular Mexican brands in this sector include Andrea, Price Shoes, and Natura, the Brazilian beauty and fragrance giant that also owns Avon. However, even established players are facing challenges. Avon, for example, declared bankruptcy last August amid numerous lawsuits alleging the use of carcinogenic ingredients in its products, signaling broader pressures within the industry.
Flexibility is a major draw for individuals entering catalog sales, many of whom are housewives or have full-time jobs. Yet, the work is not without its demands. Sellers often cite the considerable time spent picking up merchandise from warehouses, delivering orders to clients, and managing cash payments as significant drawbacks.
Guadalupe Bucio, a 56-year-old housewife and catalog seller from Puebla, detailed to Rest of World her typical routine: three days a week dedicated to collecting payments and retrieving orders from warehouses. Personal deliveries, while crucial for relationship building, can be time-consuming, often involving visits lasting at least 15 minutes per customer due to client availability or social interaction.
Embracing online platforms like Shein Mexico and Temu offers a solution to these logistical challenges. Selling online products allows catalog sellers to utilize delivery services, eliminating the need for time-intensive personal visits and streamlining the sales process.
Erick Padilla, founder and CEO of Aida, a WhatsApp sales assistant for online sellers, explained to Rest of World, “With Shein Mexico, these women are placing orders on demand, whenever they want, with their preferred payment method, and benefiting from faster delivery options.” His company provides services to approximately 160 catalog sellers in Mexico City and surrounding states who have incorporated Shein products into their businesses. Aida offers personalized payment links via WhatsApp, enabling customers to pay in full or in installments using credit or debit cards, bank transfers, or cash deposits, thus simplifying payment collection and further reducing the need for in-person interactions.
Padilla noted, “We observed that our regular sellers began purchasing from Shein and Temu, who offer significantly cheaper products, and reselling them.” This observation underscores the core appeal of Shein Mexico and Temu: affordability and accessibility, which are powerful drivers in the Mexican market.
While the integration of Shein Mexico and Temu has enhanced efficiency for some catalog saleswomen, it has simultaneously created significant headwinds for the traditional catalog sales industry. Four industry executives confirmed the disruptive impact of these online platforms.
Daniel Bojmal, who led Catálogo Incógnita, a catalog company specializing in shoes, clothing, and housewares, for two decades, witnessed this disruption firsthand. Despite years of double-digit sales growth, Incógnita began to struggle in 2022 with the entry of Temu into the Mexican market and the surging popularity of Shein Mexico. He found it increasingly difficult to recruit saleswomen for his company’s products.
“We noticed that our usual sellers started buying from Shein and Temu, which sell infinitely cheaper products, and reselling them,” Bojmal told Rest of World. Small, informal storefronts selling Shein Mexico and Temu products began emerging in the communities where his customers lived. Saleswomen abandoned Incógnita’s print and PDF catalogs, shifting their focus entirely to purchases through the Shein Mexico and Temu apps.
By the end of 2023, Catálogo Incógnita’s sales had plummeted by 30%. “We had to make the decision to close before it bled us out financially,” Bojmal lamented, highlighting the severe financial strain caused by the shift in consumer and seller behavior driven by platforms like Shein Mexico.
Aditivo, another catalog company, drastically reduced its catalog business by over 90% in 2023, primarily due to its inability to compete with the pricing offered by Shein Mexico and Temu, according to Edmond Charabati, the company’s chief operating officer. While Aditivo’s brick-and-mortar stores remain operational, the catalog segment has been significantly scaled back.
In contrast to the struggles of catalog company owners, sellers maintain that they are simply adapting to evolving consumer preferences. “I still sell a lot of Betterware items to my older customers, but younger customers want Shein Mexico and Temu,” Garfias Torres stated. She succinctly summarized the competitive advantage of Shein Mexico: “Betterware has around 50 items, but Shein has an inventory that seems endless.” This vast and ever-changing inventory, coupled with competitive pricing and effective online marketing, positions Shein Mexico as a dominant force reshaping the retail landscape in Mexico.
