The growing dominance of global e-commerce platforms such as Shein, Temu, and Amazon is reshaping Paraguay's apparel market. What was once a battle between local brands has become, according to industry representatives, a head-to-head competition with worldwide companies that offer products just a click away — and often at prices that domestic production finds hard to match.
The phenomenon has intensified with the U.S. dollar's decline, which fueled international purchases. According to the Paraguayan Chamber of International Courier Companies (Capeci), apparel and footwear are among the most ordered categories, particularly on Asian e-commerce platforms.
"We are no longer competing only with local brands, but practically with the global market. That has raised the level of competition for everyone," said Luis Bogado, director of Kyrios, a Paraguayan sportswear brand. He noted that consumer behavior has changed significantly, with greater demands for quality, delivery speed, exchange options, after-sales service, and brand trust. "That is where domestic companies still hold a major advantage," he argued.
Bogado acknowledged that Paraguay's textile industry is experiencing one of its best periods in terms of growth and professionalization, with the capacity to export, generate jobs, and attract investment. For him, the challenge is no longer just producing more, but producing better — with greater added value, innovation, design, and quality.
As for competition with imported products, he responded that they "not always" compete on equal terms. Paraguayan companies meet tax, labor, and social security obligations, in addition to investing in infrastructure and generating formal employment, while international goods arrive under different tax and cost structures. "We do not believe the solution is to close the market. Competition is positive because it forces us to improve. But we do believe that everyone should compete under similar rules so that there is truly fair competition," he stressed.
In the case of Paraguay's sportswear industry, Bogado pointed out that the main challenge stems from the combination of three factors: the pressure for low prices and variety from international platforms, the continued strength of traditional imports, and informality, which creates unfair competition for those who comply with all legal obligations. He emphasized that a sportswear item manufactured in Paraguay has the advantage of added value, with better quality control, faster replacement, warranty, customer service, and deeper knowledge of the local consumer.
"In our case, at Kyrios, we are strongly betting on top-tier international suppliers, new materials, and manufacturing processes that allow us to compete on quality and not just on price," he said.
While companies focused on the domestic market face international competition, the maquila sector is experiencing a reality of expanding exports. The president of the Paraguayan Chamber of Maquila Companies (Cemap), Jorge Bunchicoff, stated that the performance of the textile and apparel industry under this regime is clearly positive. The maquila sector exceeded $1.3 billion in exports in 2025, with apparel and textiles accounting for approximately 16% of total exports under this regime.
"The textile and apparel sector has established itself as one of the main drivers of Paraguay's industrialization. In recent years, sustained growth in exports, investment, and formal employment has been observed," said Bunchicoff, highlighting that maquiladoras generate more than 35,000 formal jobs and that the textile sector is one of the country's largest industrial employers.
Despite export growth, the presence of low-cost imported clothing in the domestic market is also increasing. Bunchicoff agreed that trade openness offers more options for consumers and can be beneficial for the economy, provided there is a level playing field. "Competition is always welcome. Our concern is not about competing against imported products, but about ensuring that all players compete under the same rules," he indicated.
In this regard, he argued that combating smuggling, under-invoicing, and any unfair competition practice that harms both domestic industry and formal employment is essential. "Paraguayan industry complies with all labor, tax, environmental, and social security obligations. When imported products enter while respecting exactly the same standards, competition is absolutely valid," he stated.
Both Bunchicoff and Bogado agreed that the path to strengthening the sector's competitiveness involves investing in technology, automation, human talent training, innovation, and the development of Paraguayan brands with their own identity.