Nuvemshop: Brazil's Fashion E-commerce to Grow 35% by 2025

According to a report released by Nuvemshop on February 28, Brazil's fashion e-commerce revenue is projected to reach BRL 2.9 billion by 2025, representing a 35% year-on-year increase. Sales volume is expected to exceed 10 million units, growing by 28%, maintaining its position as the largest vertical category in Brazil's e-commerce market. The industry is primarily operated by small teams, with women entrepreneurs accounting for 66%. In terms of age and education, over half of the operators are between 18 and 34 years old, 65% hold university degrees, and the sector showcases greater racial diversity, with 38% of operators self-identifying as mixed-race or Black. In marketing, Instagram is the dominant platform, with 97% of fashion stores relying on organic operations, 70% running ads, and 60% using Instagram Shopping as their main customer acquisition channel. TikTok ranks as the third-largest sales channel with a 26% usage rate, trailing only WhatsApp and Instagram Shopping. The industry is actively adopting new technologies to enhance user experience: 32.3% of stores have started using product videos, while 49.6% plan to implement them within the next year. Virtual fitting tools are currently used by 8.5% of stores, but 51.6% plan to deploy this technology by 2026. Alejandro Vazquez, Co-founder and President of Nuvemshop, stated that the fashion industry has become a testing ground for consumer behavior, technology, and relationships, placing higher demands on D2C entrepreneurs beyond just product offerings.