Brazil’s Lucrative Logistics Market Poses Major Challenges for Chinese Firms, Regional Head says
00:00/00:00
Listen to this article
1x
Subscribe now
Listen to the full version
Listen to the full version
J&T Global Express Ltd. couriers. Photo: J&T Global Express Ltd.
While the Brazilian market offers significant potential, it also poses challenges such as underdeveloped infrastructure and a complex regulatory and labor environment, the Brazil CEO of J&T Global Express Ltd. said.
“After really understanding Brazil, you find that although there are many opportunities, it’s not a market where a novice can just come in and dominate,” said Gui Linqun, who heads the logistics giant’s operations in Latin America’s largest economy.
The allure of the Brazilian market is driven by rapidly rising e-commerce penetration, which is expected to reach a market scale of $78 billion in 2025, the highest in Latin America, according to eMarketer. This growth has attracted a wave of Chinese platforms. Fast-fashion platform Shein entered Brazil in 2019, followed by PDD Holdings Inc.’s Temu in June 2024. TikTok and Kwai joined the fray in late 2024 and early 2025, while Alibaba’s AliExpress has been present for years.
You've accessed an article available only to subscribers
VIEW OPTIONS
Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.
Subscribe to both Caixin Global and The Wall Street Journal — for the price of one.
- RELATED
Share this article
Open WeChat and scan the QR code
- DIGEST HUB
Digest Hub
Back
Explore the story in 30 seconds
- Brazil's e-commerce market is projected to reach $78 billion in 2025, leading Latin America and attracting major Chinese platforms.
- J&T, launched in Brazil in 2022, is now the country's largest third-party courier, with 21.7% parcel volume growth in new markets in H1 2025.
- Major challenges include underdeveloped infrastructure, complex regulations, high labor costs, and security risks; J&T employs 99% local staff to navigate these issues.
AI generated, for reference only
Who’s Who
- J&T Global Express Ltd.
- J&T Global Express Ltd. (极兔速递) is a logistics company that launched operations in Brazil in May 2022. It has become a key logistics partner for e-commerce platforms like Temu and Shein, and also works with Mercado Libre and Shopee. J&T is expanding into C2C parcel services and is currently Brazil's largest third-party courier.
- Shein
- Shein, the fast-fashion platform, entered the Brazilian market in 2019. It is one of several Chinese e-commerce companies attracted by Brazil's rapidly growing e-commerce penetration. Shein partners with J&T Global Express Ltd. for its logistics needs in the region.
- PDD Holdings Inc.
- PDD Holdings Inc.'s Temu entered the Brazilian market in June 2024. Its entry is part of a wave of Chinese platforms attracted by Brazil's rapidly growing e-commerce penetration, which is projected to reach $78 billion in 2025. Temu utilizes J&T Global Express Ltd. as a key logistics partner in Brazil. Despite significant market potential, Brazil presents challenges due to its complex regulatory and labor environment.
- Temu
- Temu, an e-commerce platform by PDD Holdings Inc., entered the Brazilian market in June 2024. It is one of the Chinese platforms attracted to Brazil's rapidly growing e-commerce penetration. Temu partners with J&T Global Express Ltd. for logistics services in Brazil.
- TikTok
- TikTok (**抖音**) entered the Brazilian market in late 2024. It joined a wave of Chinese platforms attracted by Brazil's rapidly growing e-commerce penetration, which is projected to reach a market scale of $78 billion in 2025. J&T Global Express Ltd. is a key logistics partner for TikTok and other Chinese and regional e-commerce platforms in Brazil.
- Kwai
- Kwai, identified by its Chinese name 快手, entered the Brazilian market in late 2024. It is one of several Chinese platforms, including TikTok, Temu, and Shein, that have been drawn to Brazil's rapidly growing e-commerce sector. Kwai utilizes J&T Global Express Ltd. as a key logistics partner for its operations in Brazil.
- Alibaba
- Alibaba's e-commerce platform, AliExpress, has had a presence in the Brazilian market for several years. The company is one of several Chinese platforms, including Shein, Temu, TikTok, and Kwai, that have been attracted to Brazil's rapidly growing e-commerce penetration. J&T Global Express Ltd. serves as a key logistics partner for Alibaba's AliExpress in Brazil.
- AliExpress
- AliExpress, an Alibaba platform, has had a presence in Brazil for several years. It is one of the Chinese e-commerce platforms that has been attracted to the rapidly growing e-commerce market in Brazil, partnering with logistics providers like J&T Global Express Ltd.
- Mercado Libre
- Mercado Libre (美客多) is a regional e-commerce leader in Brazil. J&T Global Express Ltd. partners with Mercado Libre, providing logistics services. Despite J&T's growth, Mercado Libre's in-house logistics network remains a larger player in Brazil's e-commerce landscape.
- Shopee
- Shopee is a major e-commerce platform operating in Brazil and is considered a "Southeast Asian giant." It has its own in-house logistics networks, which are larger than J&T's operations in the region. J&T Global Express Ltd. partners with Shopee, among other platforms, for logistics services in Brazil.
AI generated, for reference only
What Happened When
- 2019：
- Shein entered the Brazilian market.
- May 2022：
- J&T launched operations in Brazil.
- June 2024：
- Temu (PDD Holdings Inc.) entered the Brazilian market.
- Late 2024：
- TikTok joined the Brazilian e-commerce market.
- Late 2024：
- J&T introduced air freight routes in the Amazon region.
- Early 2025：
- Kwai joined the Brazilian e-commerce market.
- First half of 2025：
- Combined parcel volume in J&T's new markets grew 21.7% year-on-year to 166 million, and total revenue rose 24.3% to $362 million.
- As of 2025：
- J&T's Sao Paulo operations spent about 100,000 yuan ($14,000) per month for toilet cleaning due to labor regulations.
AI generated, for reference only
- MOST POPULAR
Sign in with Google
Sign in with Facebook
Sign in with 财新