The secret behind Paraguay’s Oriental City lies in being the largest gray market for cross-border trade in Latin America
Ciudad del Este, a city located in the eastern part of Paraguay, is its Spanish name, which is translated as Dongfang City or Dongfang Town, with its official name being Ciudad del Este. According to Google Maps, Dongfang City is located at the tri-border area where Paraguay, Brazil, and Argentina meet. This location reminds me of the "Golden Triangle" in Southeast Asia, a no-man's land that has been a hotbed of gray and black markets since ancient times. Here, prosperity and chaos coexist, counterfeits are everywhere, there is a large number of transshipments, and there is a lack of regulation. The reason why I know about this place is that a client of mine has recently been deeply involved in Paraguay and has done very well, exporting all TOMS shoes,
Compared to top-tier brands like Nike, Adidas, and Gucci, Toms may not be as well-known and is considered a third-tier brand. It was founded in Argentina by an American designer, Blake Mycoskie, and claims that for every pair of shoes you buy, they will donate a pair to children in Africa. In recent years, the American shoe brand Toms Shoes has become increasingly popular due to its simple and easy-to-match styles as well as its super comfortable wearing experience. It is especially popular in some South American countries, such as Chile, Peru, and Paraguay, where it is very trendy and favored by fashionable ladies. In the winter in Europe and America, it is summer in South America, and the markets in the two hemispheres have seasonal characteristics that are completely opposite. For example, snow boots are currently popular in Europe and America, while in Peru, lightweight Toms lace-up sandals are a bestseller, with sales remaining high.
A pair of lace-up canvas shoes, which have an official price of $50-$60, can be processed through the powerful supply chain in Jinjiang and sold in Dongfang City at a price of less than $10 per pair. This is very suitable for the characteristics of the imitation brand goods market in many South American countries, where economic development is uneven, the middle and low-income groups are large, price sensitivity is high, and consumers are more inclined to purchase low-priced imitations. This has brought sales opportunities and profit margins to some cross-border e-commerce sellers from the Pu and Guang regions. According to my client, the Ciudad del Este market is definitely one of the largest open-air markets in Latin America. It is considered a typical case of the gray economy, involving the sale of imitations, smuggled goods, and tax evasion. The market is world-renowned for selling counterfeit goods, especially imitation electronic products (such as mobile phones, watches, etc.) and luxury brands (such as Louis Vuitton, Chanel, etc.), which coexist with a large number of legitimate products on the market for customers to choose from, offering everything one could ask for
Every day, a large number of tourists from Brazil and Argentina cross the border to purchase goods, many of which are priced lower here than in their own countries. These goods mainly come from China, Southeast Asia, and other low-cost producing countries. In Dongfang City, the main types of imitations are as follows: 1) Electronic products
Products in Huaqiang North, such as counterfeit mobile phones, tablet computers, and accessories (such as chargers, headphones, etc.) of brands like Apple, Samsung, Xiaomi, and others, are extremely common.
2) Clothing and footwear
Counterfeit products of sports brands such as Nike, Adidas, and Puma are selling briskly in Putian. Besides sports brands, there are also imitations of clothing and bags from luxury brands in Guangzhou, such as Gucci, Prada, and LV.
3) Luxury goods and accessories
High-quality replicas of watches (such as Rolex and Omega), leather bags, and sunglasses from Guangzhou Station are popular items in the market. Some of these products are crafted with such meticulous detail that they closely resemble the quality of authentic goods, earning them the title of "super A-grade replicas".
4) Perfume and cosmetics
Counterfeit high-end perfume brands such as Chanel and Dior are priced low.
Every day, a large number of tourists from Brazil and Argentina cross the border to purchase goods, many of which are priced lower here than in their own countries. These goods mainly come from China, Southeast Asia, and other low-cost producing countries. In Dongfang City, the main types of imitations are as follows: 1) Electronic products
Products in Huaqiang North, such as counterfeit mobile phones, tablet computers, and accessories (such as chargers, headphones, etc.) of brands like Apple, Samsung, Xiaomi, and others, are extremely common.
2) Clothing and footwear
Counterfeit products of sports brands such as Nike, Adidas, and Puma are selling briskly in Putian. Besides sports brands, there are also imitations of clothing and bags from luxury brands in Guangzhou, such as Gucci, Prada, and LV.
3) Luxury goods and accessories
High-quality replicas of watches (such as Rolex and Omega), leather bags, and sunglasses from Guangzhou Station are popular items in the market. Some of these products are crafted with such meticulous detail that they closely resemble the quality of authentic goods, earning them the title of "super A-grade replicas".
4) Perfume and cosmetics
Counterfeit high-end perfume brands such as Chanel and Dior are priced low.
