What Cia. Hering does

Cia. Hering is a Brazilian multi-brand fashion platform founded in 1880 in Blumenau, Santa Catarina, and currently operating as a publicly traded company (B3:HGTX3) under the Grupo Soma conglomerate. The company manages three core brands — Hering (basic casual apparel), Hering Kids (children's clothing), and DZARM (young-adult fashion) — distributed through an integrated omnichannel network comprising 87 corporate stores, 674 franchise stores, 10,000+ multibrand retailers across 3,000+ municipalities, and brand-owned e-commerce sites. Approximately 5,300 employees support six vertically integrated manufacturing facilities and seven advanced distribution hubs, enabling a 2.4-day delivery time reduction and 3-week capsule-collection time-to-market.

The business model is a hybrid retail + wholesale + franchise construct: direct-to-consumer through corporate stores and e-commerce (14.3% of domestic sales in Q4 2020, growing 230.6% YoY), franchise royalty/transaction fees across multiple formats (Hering, Hering Kids, Pop Hering, Basic Shop, Hering Store Light), and wholesale through multibrand resellers. Revenue mechanics are supplemented by B2B services such as Portal Conecta, WhatsApp Smart Sales deployed across 518 stores, and a CRM platform that generates 11% of sales. Customer-facing technology spans buy-online-pickup-in-store, ship-from-store, mobile app (38,000 downloads in 30 days), and a social-selling program with commission-based affiliate distribution.

The platform targets mass-market Brazilian consumers seeking accessible basics and franchisees seeking an established brand with operational support. Strategic priorities include digital transformation, ESG positioning (ABVTEX-certified supply chain, ozone water treatment reducing waste 70%, 4.2M sqm preserved forest, 5th place in Brazil's 2020 Fashion Transparency Index at 57%), and brand-platform repositioning via the April 2021 rebrand by FutureBrand São Paulo. Q4 2020 gross revenue was R$503.4 million and FY2020 EBITDA margin was 17.6%, with FY2020 gross revenue of approximately R$2.0 billion following several years of revenue contraction from a 2017 peak.

Name

Cia. Hering

Legal name

AZZAS 2154 S.A.

Website

https://ciahering.com.br

Company type

Public

Founded year

1880

Operating status

Operating

Headcount range

5,001–10,000 employees

Short description

Cia. Hering operates Brazil's largest clothing franchise network and multi-brand fashion platform, running the Hering, Hering Kids, and DZARM brands through 778 stores, 10,000+ multibrand retailers, and e-commerce to serve mass-market consumers across Latin America.

Ownership category

akta.pro rank

Product category

Apparel Retail

NAICS

Clothing and Clothing Accessories Retailers (458110)

SIC

Retail-Family Clothing Stores (5651)

akta.pro primary industry

Mid-Tier Department Stores (Apparel-Led) (CRAGACAB)

akta.pro secondary industry

Women’s Apparel Retail (CRAAABAB)

Keywords

• Basic apparel manufacturing
• Clothing franchise network
• Multibrand fashion retail
• Omnichannel apparel
• Casual clothing brand

Headquarters

HQ city

Florianópolis

HQ country

Brazil

HQ region

Latin America

Offices9 records

Markets served

GTM type

B2C

Offering type

Hardware or Manufacturing

Cost components

Supply Chain, Operations, Technology or R&D, Personnel, Marketing or Sales, Infrastructure

Revenue model

1. Retail Sales - Corporate Stores: Direct retail sales through 87 corporate-owned stores in Brazil and internationally
2. Franchise Network: 674 franchise stores operating under Hering, Hering Kids, DZARM, and other brand formats (Pop Hering, Basic Shop, Hering Store Light)
3. Multibrand Retail: Sales through 10,000+ multibrand fashion retailers across 3,000+ municipalities in Brazil
4. E-commerce: Online sales through brand websites, growing 230.6% YoY in Q4 2020, representing 14.3% of domestic sales. Also includes social selling via WhatsApp and affiliate commissions.

Go-to-market motion3 records

Distribution channels5 records

Marketing channels6 records

Core offering

Cia. Hering designs, manufactures, and sells basic and casual apparel under the Hering, Hering Kids, and DZARM brands through corporate stores, franchises, multibrand resellers, and e-commerce. The vertically integrated operation spans six manufacturing facilities in Brazil and an omnichannel retail network of 778 stores serving customers across 3,000+ municipalities.

Product overview

Cia. Hering is a multi-brand fashion retail organization operating as Brazil's largest clothing franchise network. The company manages three core brands: Hering (Brazil's Basics offering casual lifestyle clothing), Hering Kids (children's clothing celebrating childhood discoveries), and DZARM (versatile fashion for personal expression). The portfolio includes multiple franchise formats (Hering Kids Store, Hering Basic Shop, Pop Hering, Hering Store, and Light Franchise) alongside corporate stores, multibrand retail, and e-commerce channels. Digital initiatives include the Portal Conecta customer service platform, Hering App, Hering Experience innovative store concept, and an integrated omnichannel service. The Hermann Hering Foundation supports social initiatives. The company employs approximately 5,300 people and serves over 3,000 cities across Brazil and Latin America.

Differentiator

Problem solved

Functional benefit

Brands

• Hering: Brazil's Basics - comfort combined with quality, tradition, and style. Original because of its history, unique product that has always been by the consumer's side. Simple and straightforward clothing.
• Hering Kids
• DZARM

Products and services

• Hering Brand Apparel Casual lifestyle clothing brand offering t-shirts, underwear, and everyday apparel for men, women, and adults across all life stages. Sold through corporate stores, franchises, multibrand retailers, and e-commerce.
• Hering Kids Brand Apparel Children's clothing brand celebrating childhood discoveries with comfortable, free-style clothing that enables freedom and exploration for kids. Distributed through dedicated franchise stores, multibrand retail, and a dedicated e-commerce site.
• DZARM Brand Apparel Versatile, cool, and timeless fashion brand offering high-quality design and price balance with increasingly sustainable collections. Operates three own stores in São Paulo, e-commerce, 22 licensed stores, and presence in over 1,700 multibrand stores.
• Hering Kids Store Franchise Franchise business opportunity dedicated to the Hering Kids children's clothing brand, offering entrepreneurs an established brand with operational support, training, and national advertising campaigns.
• Hering Basic Shop Franchise Franchise format focused on core Hering basic apparel products, targeting entrepreneurs seeking a focused assortment of the brand's signature basics.
• Pop Hering Franchise Pop-up style franchise format offering temporary or smaller-footprint Hering retail presence for flexible market entry by franchisees.
• Hering Store Franchise Full-format Hering store franchise offering the complete brand experience and full assortment across the Hering product line.
• Hering Light Franchise Lower-investment franchise model with smaller footprint designed to expand Hering's presence in smaller markets with reduced capital requirements for franchisees.
• Hering Mobile App Mobile application supporting Hering's digital transformation, providing customers with direct access to the brand's e-commerce and loyalty engagement, achieving 38,000 downloads in the first 30 days post-launch.

Quantifiable outcome

• E-commerce grew 230.6% YoY in Q4 2020, reaching 14.3% of domestic sales
• +6 more outcomes

Named customers2 records

Segments3 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

AI capability4 records

Feature6 records

Partnerships

Ten partnerships are on record, tiered core and minor.

• FutureBrand São PaulocoreImplementation/ SI/ Consulting Partner · 1 April 2021Creative agency responsible for 2021 corporate rebranding, redesigning logo and creating modern visual universe to position company as fashion platform connecting brands to people.
• Super LimãominorImplementation/ SI/ Consulting Partner · 1 January 2021Architecture firm designing São Paulo office with flexible work concept, collaborative spaces, and integrated retail store.
• Athie WohnrathminorImplementation/ SI/ Consulting Partner · 1 January 2021Construction company executing São Paulo office renovation project.
• Fundação Hermann HeringcoreStrategic or Co-development Partner · 1 September 2020Social foundation established in 1935 supporting sustainable fashion entrepreneurship. Partners on Vestir o Brasil initiative empowering youth through fashion innovation, with R$255 thousand raised in 2020 and R$122 thousand in prizes for winning team.
• Instituto ReciclarminorStrategic or Co-development Partner · 1 January 2020Partnership for Vestir o Brasil initiative focusing on sustainable fashion education. Participants created prints for white t-shirts with 100% of profits reverting to the institute.
• Junior Achievement BrasilminorStrategic or Co-development Partner · 1 January 2020Partnership for Innovation Camp methodology in Vestir o Brasil, with 72 students participating, 12 innovation ideas presented, and 18 volunteer mentors over 10 sessions totaling 20 hours.
• EnjoeiminorStrategic or Co-development Partner · 1 January 2020Hering Kids partnership for second-hand marketplace enabling circular economy. Transaction in Enjoei Hering Kids shop earns 10% discount on brand website, stimulating conscious consumption.
• IBCC OncologiacoreStrategic or Co-development Partner · 1 January 199625-year breast cancer awareness partnership (Outubro Rosa). R$6.50 donated per Alvo Azul t-shirt sold. Over R$18 million raised over 25 years, contributing to hospital construction and treatment of many women.
• ABVTEXcoreOthers100% of national finished product suppliers certified by ABVTEX, ensuring ethical and sustainable supply chain practices. All partners oriented toward IBRACEM certification.
• EureciclominorStrategic or Co-development PartnerPartnership for solid waste compensation and management, including packaging, supporting circular economy initiatives.

Scale indicators15 records

Recent moves7 records

Expansion highlights7 records

Regional players

• Centauro: Brazilian athletic-focused omnichannel retailer with strong digital growth and broad physical presence. Comparable through Brazilian omnichannel playbook, e-commerce acceleration and franchise/store expansion mechanics, though in a different apparel vertical.

Direct peers

• Marisa: Brazilian apparel retailer historically focused on women's basics and lingerie with a national store network. Comparable through its emphasis on accessible basics, franchise/wholesale reach and family-focused customer, though smaller scale than Hering.
• Riachuelo: Major Brazilian mid-tier apparel retailer with integrated manufacturing and broad store footprint. Competes head-to-head with Hering on affordable basics and family apparel, including kids and women segments, through physical stores plus growing e-commerce.
• C&A Brasil: Brazilian arm of global fashion retailer offering affordable apparel and basics across physical stores and e-commerce. Directly comparable on customer segment, price tier and omnichannel playbook, and competes with Hering Kids and core Hering ranges.
• Lojas Renner: Brazil's largest apparel-focused department store chain with a strong omnichannel model, e-commerce growth and physical store expansion. Closest direct peer to Hering given similar mass-market positioning, scale and focus on Brazilian apparel basics plus fashion.

Broad incumbents

• Zara (Inditex): Global fast-fashion leader demonstrating how integrated design-to-store supply chain and capsule drops drive industry-leading sell-through. Relevant incumbent peer for Hering's capsule collection, fast time-to-market and omnichannel initiatives.
• Uniqlo: Global basics-led apparel retailer owned by Fast Retailing. Direct strategic comparator on basics DNA, vertical integration and capsule-drop discipline; relevant as a benchmark for unit economics, supply chain and brand-building in basics.
• H&M: Global mass-market apparel retailer with strong sustainability positioning and broad multi-channel reach. Comparable to Hering on basics, sustainability messaging and large-scale physical plus digital retail model.

Others

• Reserva: Sister brand under Grupo Soma with a casual menswear and lifestyle positioning. Sister-portfolio peer relevant for understanding how Hering can leverage shared back-office, sourcing and omnichannel infrastructure across the group.

Emerging players

• Shein: China-based ultra-low-cost digital fast-fashion retailer rapidly gaining share in Brazilian basics. Represents the key emerging competitive threat to Hering's core mass-market value proposition and is reshaping online pricing across the apparel category.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat6 records

Key risks6 records

Key highlights7 records

Customer concentration

• LinkedInlinkedin.com/company/cia-hering
• Instagraminstagram.com/hering_oficial

Compliance5 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles4 records

Subsidiaries1 record

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Cia. Hering