Shoe will have problems this year

The footwear sector has presented a number of difficulties to ensure positive margins on its balance sheet. While companies, like Grendene, claim they are confident with the growth of the internal market, the Brazilian Association of footwear Industries (trade group Abicalçados) goes against and remains cautious over the poor performance of the industry to 2013.
Hector Klein Executive Director of explains that the import of shoes--especially China--and the lack of a specific law on anti-dumping (when the sale occurs at a price below the practices in the internal market) has affected the growth of sales of Brazilian products. "Domestic consumption grew 10% annually. In 2012 this number fell to 5%, and I believe it should be around 4% this year ", says the Executive.
According to Klein, with the highest cost of goods (since they involve taxation, labor law about the value of labor, logistics costs, in addition to the exchange rate), Brazil has been losing space inside and outside the country. "Exports were never more than 25% of production. Are currently around 10% ", says the Executive.
In the view of the Association, the products produced in the country are facing an "uneven condition of competitiveness". "Businesses are closed because it is difficult to compete with imported products," he points out.
The most recent case was that of Vulcabrás, which late last year announced the closure of 12 plants in Bahia. The company said the closure of activities occurred as a result of increased competition.
According to the Director of the trade group Abicalçados, lack of attractiveness in product prices may cause the trade balance is negative. "It has been a drop in exports. Fell $ 1.8 billion in 2008 to $ 1.1 billion last year, "compares Klein that States that Brazil has been very cautious with the implementation of laws that favor the footwear sector.
Little favourable scenario perspective can press the financial results of companies like Alpargatas. The company, owner of the trademark Havaianas, must make a net profit of r $ 294,7 million in 2012, 4.15% drop compared to the previous year. The result takes into account market estimates that fourth-quarter net income was $ 81 million.
Already the Arezzo should show a different path. Based on the expectation that net profit has reached R $ 30,6 million in the quarter, the company must close 2012 with result of R $ 95,8 million, a high of 4.57 percent before 2011.