South of the Border doesn’t just mean Mexico. Many brands are looking further south into Brazil for nearshoring cotton sourcing and denim manufacturing, and Brazil-based Vicunha Texil, one of the largest textile manufacturers in the world, offers advantages for both. Here, German Alejandro Silva, executive director of Vicunha, chats with Hertzman Global Intelligence about Brazil’s macro opportunities plus Vicunha’s individual positioning.
HGI: According to the Brazilian Textile and Fashion Industry, Vicunha now produces roughly 40% of Brazil’s indigo denim fabric and ranks among the world’s largest denim mills. As brands diversify beyond traditional sourcing hubs, how do you see Brazil’s role evolving in the global denim supply chain?
German Alejandro Silva: Brazil benefits from local cotton production and Brazil’s role in the global denim supply chain is expanding beyond its large domestic market as brands seek more diversified, resilient sourcing partners. The country is increasingly recognized for its integrated denim ecosystem, home-grown cotton production, product-development expertise and growing leadership in sustainability.
As brands prioritize flexibility, transparency and faster development cycles, Brazil offers a compelling combination of vertical integration, manufacturing expertise, creativity and advances in traceability and lower-impact production. Rather than competing with traditional sourcing hubs, Brazil is well positioned to complement them as a strategic sourcing alternative.
The country is now ready to introduce customized collections to brands and channels around the world, combining global expertise with a local approach that respects each brand’s identity and market reality.
At Vicunha, we see growing demand for collaborative development, fabric innovation and responsible supply chains. With ongoing investments in areas such as regenerative cotton, water reuse and sustainable production, we believe Brazil will continue strengthening its position as a global hub for value-added, responsible denim innovation.
HGI: With geopolitical shifts and tariffs reshaping sourcing strategies, are you seeing greater demand among U.S. brands for Brazil and Latin America as stable, diversified partners for premium denim production?
GAS: Yes, we are seeing growing interest from U.S. brands in Brazil and Latin America as sourcing strategies evolve in response to geopolitical volatility, tariffs and supply-chain risk management. But rather than replacing Asia, brands are building more diversified sourcing portfolios with greater flexibility and resilience. This is not a sudden shift, but rather an acceleration of an ongoing diversification trend.
In this context, Brazil is gaining relevance in higher value-added denim programs, small- to mid-volume production and collaborative development projects where agility and technical expertise are key. We are also seeing deeper engagement around traceability, sustainability and integrated fabric and product development. At Vicunha, we have strengthened our focus on the U.S. market through closer partnerships, technical collaboration and agile development solutions.
But while Brazil is increasingly positioned as a complementary sourcing partner for the U.S. market, improving trade agreements, logistics and rules of origin would further enhance competitiveness and efficiency, supporting greater access to the market.
HGI: From raw materials and energy mix to creativity and vertical integration, what strengths make Brazilian manufacturing, and Vicunha, uniquely competitive today, especially among current challenges?
GAS: Brazil’s highly integrated denim ecosystem—from cotton production and spinning to weaving, finishing and garment washing—enables greater agility, collaboration and development flexibility across the entire value chain.
At Vicunha, this integration supports both technical innovation and creativity, and one of our key strengths is our ability to combine industrial scale with deep denim expertise. Beyond fabric development, we work closely with brands on laundry techniques, finishes and product applications through initiatives such as V. Laundry , our cutting-edge textile innovation center situated at our Maracanaú factory in Northeast Brazil, creating a more collaborative approach to product development.
Even amid global challenges, we believe the combination of vertical integration, technical capability, creativity, renewable resources and close collaboration with brands continues to make Vicunha and Brazilian denim manufacturing highly competitive internationally.
HGI: Looking to 2026, what fabric innovations, finishes or consumer shifts do you believe will shape the next era of premium denim?
GAS: Premium denim will be defined by a stronger balance between authenticity, sophistication and sustainability. After years of clean, performance-driven products, demand is shifting toward fabrics with richer indigo shades, refined irregularities, textured constructions and greater visual depth.
Consumers still expect comfort, but in ways that feel true to traditional denim. Innovations such as invisible stretch are helping deliver wearability without compromising authenticity. We are also seeing growing interest in refined finishes, including coated effects, subtle shine and dimensional surfaces that add versatility and a more elevated aesthetic.
HGI: How have sustainability expectations changed over the past five years, and are there differences in how different global customers approach them?
GAS: Sustainability is becoming an essential component of premium quality. Today, brands expect greater transparency, traceability and measurable impact across the supply chain, while maintaining product quality, authenticity and scalability.
There are some regional differences. In Europe, sustainability is often driven by regulations, certifications and traceable data. In the U.S., the focus tends to be more connected to innovation, storytelling and consumer engagement. However, both markets are moving toward greater accountability and transparency.
HGI: Vicunha has invested heavily in regenerative cotton, recycled fibers and water-saving technologies. What are the initiatives and what has the response been?
GAS: Regenerative cotton resonates because it supports farming practices focused on soil health, biodiversity and long-term sustainability. As a result, regenerative denim is increasingly viewed not just as a sustainable option, but as a premium product with authenticity, quality and a compelling story behind it.
Vicunha has expanded initiatives such as Regen by Vicunha, our regenerative cotton program developed with Scheffer [a regenerative cotton grower in Brazil], and increased the use of recycled fibers, traceability tools and lower-impact production processes. The reception has been very positive, as the conversation around regenerative cotton now extends beyond sustainability claims alone. Since launching Regen by Vicunha in 2023 in partnership with Scheffer, we have seen growing interest from global brands seeking products that combine authenticity, traceability and responsible sourcing.
Brands continue to prioritize performance, premium aesthetics and true denim character, and regenerative cotton has proven it can deliver these qualities while adding a stronger sustainability story. A key differentiator is traceability: through close collaboration with partners like Scheffer, we can provide greater transparency into the cotton’s origin and production journey.
HGI: What about energy and water-saving initiatives?
GAS: Brazil has a largely renewable energy matrix. In addition, nearly 70% of Vicunha Brazil’s energy comes from a dedicated wind-power partnership, while our Ecuador facility generates renewable energy through its own hydroelectric plant.
We have advanced initiatives in regenerative cotton, traceability and water reuse to reduce freshwater consumption. A key example is VSA in Ceará, part of the Vicunha ecosystem, which treats domestic wastewater for industrial reuse. This allows part of our production to operate with treated and reused water, reducing reliance on freshwater resources while supporting industrial-scale denim manufacturing.
Today, sustainability is no longer separate from product development—it is an integral part of how premium denim is designed, produced and evaluated.
