Wednesday, January 17, 2018

Footwear production rises 3% and should at least repeat result in 2018

The footwear awaits at least repeat the growth rate of production observed in 2017, 3% for this year, said the President of Brazilian footwear industries Association (Abicalçados), Hector Klein.
"Already occurred a slight inflection of the curve [production], with a growth in 2017. This encourages us to that in 2018 we can have a more significant expansion, "said Klein, on Tuesday (16), in an interview with journalists at Couromoda.
The Executive pointed out that, given the high number of holidays and events such as elections and the World Cup, which may affect the demand for footwear and, consequently, production, need to "adopt a certain caution" in relation to the recovery of the sector.
For him, it is still possible that occur along high imports by 2018 1 possible increase in demand for consumer goods. "Today, the exchange rate is more favorable to imports. The cost structure we have, outside of the factories, the ideal Exchange would be R $3.45, "he added.
The consolidated results will be released between March and April, but Klein designs that the turnover of 2017 be "at or slightly below" registered a year before.
Industry data show that the physical production in 2016, totaled 954 million of pairs, which meant an increase of 1.3% about 2015. That amount places the Brazil as the fourth-largest global producer of shoes after China, India and Viet Nam.
Export
On the export side, shipments last year totaled 127,130,000 pairs, resulting in a revenue of $ $1.09 billion, 9.3% higher performance reported in 2016 – the best from 2013, when it totaled $ $1.095 billion. In terms of volumes, however, there was high of 1.2%. According to a growth pace Abicalçados higher than the values exported can be explained by the variation of the average price of the footwear, which rose nearly $ $2 in the period.
Klein pointed out that, although Brazil has high of 100 to 150 the total number of countries buyers in recent years, sales have fallen, as have you reached US $ $2 billion. "We have an obligation to try to resume the volumes achieved in the past. Our products have receptivity in the international market, there is demand, but we're being incompetent in reaching these markets, "he said, in reference to the structural problems which hinder the exports of the sector, such as logistics, taxes, costs Labor and over-regulation.
Of the total local production, approximately 10% to 12% are destined for the foreign market, compared to 25% of what is already in the past. "We want to meet well the domestic demand, but also seek to expand our presence abroad, in markets where we operate," he said. According to the leader, the level of idle industry should have closed between 18 and 22% 2017%, representing a "slight decline" a year before.
Retail
According to the President of the Brazilian Association of footwear Retailers and artifacts (Ablac), Marcone Tavares, the footwear trade revenues rose 4.9 percent last year, even with a fall of 8.7% in sales volume. This was the result, he said, the increase of 12.7% from the mean value of the pairs of shoes sold at retail.
"There was a drop in the stream of customers, but we see a feature in 2017: the consumer entered more stores decided, aware of what needed to buy, generating less impulse buying," he said.
About 2018, the projection of Ablac is a 3% higher revenue, but if the "reforms" in Congress go, this level may be higher.
On the Invoice, which works with social and casual female line with leap, it is expected an expansion of up to 10% in 2018. According to the company's commercial Manager, Sk Lara, last year the production had grown 8%. "We had a very good year, in November and December, on trade of shoes. This signals a good result in 2018, "he says.
DCI - 17/01/2018
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