Brazilian confections are preparing for battle with the imported

Sao Paulo-brazilian clothing industry is already gearing up for another round of disputes with the imported. After being assisted by high-dollar in 2016, the manufacturers are concerned about the decline in foreign currency in recent weeks.
"The dollar today is a worrying factor, because it can facilitate imports and hamper exports. The current level is not suitable for the competitiveness of the country, "said the President of the Brazilian Association of Textile and Clothing Industry (Abit), Fernando Pimentel. This week the dollar ranged between 3.10 and r $ R$ 3.
In February last year, the currency reached r $4.
The children''s and women''s clothing manufacturer Fakini assumes commitments with greater than three months, to minimize the exposure to foreign exchange risks.
"As the dollar fluctuates a lot, we were hostages to make long-term plans, including export", explained the company''s commercial Director, Francis Fachini.
Last year, the turnover of Fakini grew 8%, compared to a target of 20%, and the volume has advanced about 5% of. Exports, although they do not pay for a significant part of the sales, were discharged from 40% in 2016, benefited by the favourable exchange rate.
"Companies have made adjustments in production, cash flow and export products and mainly to serve the local market, which impoverished, but with a three-year slowdown in economic activity, we still have a difficult market at the beginning of this year," commented the head of Abit.
Fakini''s strategy to expand sales in the past year, in addition to the export, which is a long-term project of managers, included the launch of a women and children''s clothing line.
"This demand for lower-priced products came from our customers, who wanted more competitive items. Already the female line we will do to help increase sales, "said Fachini.
This year, the manufacturer will keep the same strategy adopted last year and expects to expand to 25%, reaching 8 million of parts produced in the year.
"A big investment for this year is a stamping machine, which comes into operation in March. With that, let''s get to outsource this step, reducing costs and the time for delivery of products, "quoted the Director of Fakini.
The TVZ, clothing production and stores, as well as franchises, also is betting on lower costs to maintain the competitiveness of the national product.
"We try to work with imported, but the consumer feel the difference and always fall back. Now the challenge has been to deliver final products with price equal or less than the competitors, but with production costs that continue to rise, "said one of the partners of the TVZ, Rafael Zolko.
For Pimentel, Abit, the main challenge for this year is to find stimuli that make the Brazilian back to spend on clothes. "But if everyone invest only in basic, let''s end with a price war that is not good for the market," he noted.
According to the leader, this year imports will grow in Brazil, with estimated 10% high. "But it will be about a weak base, because in 2016 the imported fell almost 50%", quoted Pimentel.
Underwear
The manufacturer of socks Loa know that products from outside will press a slice of the market that the company won in 2016. To prevent the progress of competitors, the bet is the differentiation of the portfolio in both the brand and the agility of the retail delivery lines for magazines-department stores, sporting goods and shoes-and private label.
"We''re going to start closing orders in the second half from April, but we are confident in maintaining our market share achieved in 2016. And we hope to operate with an average of 95% of the installed capacity this year, "said the Director of the Loa Anísio Rausch Son.
The company''s response time to requests, said the Executive, is in 40 days, while Chinese competitors take 100 days to deliver orders. "We raise a little stock to ensure this time."
Rausch Son hopes to produce 780,000 pairs of half this year, with 60% of the production for the magazines, 25% to the collection itself and 15% for private label. "Today not only large production because lack working capital to finance the expansion, with the still very high interest," added the Executive.