Footwear industry bet on export

São Paulo-after reaching $ 505,9 million surplus in trade balance, the footwear sector projects growth in exports and stability in domestic sales in 2015. Hector Klein, President of the Brazilian Association of footwear Industries (Abicalçados), assesses that the devaluation of the real against the dollar and the euro will contribute positively to the international shipments of Brazilian shoes should improve the competitiveness of national product.
"We still don't have a projection for 2015. But the exchange rate improves, linked to productivity gains, firms can bring more opportunities for Brazilian manufacturers on the international market, "he says, mentioning that the entity works with a projection of the average rate of exchange between $ 2.90 and $ 3.
According to data from the Brazilian footwear industry Abicalçados ended 2014 with 2.6% fall in exports, commercializing 129.5 million pairs, with revenues of $ 1067 billion. Currently, exports correspond to 12% of revenues in the industry. Already imports retreated 1.9 percent on the year in 2013, as a result of the slowdown in retail sales of Brazilian footwear. Last year, Brazil imported 36.8 million pairs, generating revenue of $ 561,28 million to countries such as Viet Nam (US $ 323,47 million, up 8.2% in 2013); Indonesia ($ 111,83 million, down 2.3%) and China (US $ 53 million, falling 11.7 percent).
The main Brazilian footwear buyers abroad were United States, Argentina and France, respectively. In the year, the Americans have made the acquisition of 11.85 million pairs, amounting to US $ 193,67 in revenue, 2.2% above registered in 2013. The Argentines already bought 31.3% less Brazilian shoes because of the crisis and of trade barriers imposed by the neighbouring country. In total, Argentina imported 7.6 million pairs, resulting in a turnover of $ 81,68 million. France already acquired 8.9 million pairs, generating $ 70.1 million of foreign currency for Brazil, with high light of 0.5% in sales.
According to Klein, the Brazilian footwear industry produces 900 million pairs per year. "A total which does not correspond or 10% of global exports of China which sells annually about 10 billion pairs," says, mentioning that the sector recorded a fall of 1% in domestic sales last year and has faced great difficulties to maintain competitiveness because production costs. Klein attributes the drop in performance in last year's World Cup competition, which received only the consumption of white goods and services TVs.
According to the President of Abicalçados, the election was another event which also undermined the sector's business in 2014 because caused exchange rate trend, in addition to the increase in the price of leather high driven by exports. "Last year was a year of much learning and lessons that companies have learned serve to leverage growth for years to come".
According to Klein, the export has become a vital need of the Brazilian industry has already reached drain 25% of its production. And that's with the goal of leveraging business in the sector in the international market and Apex-Brazil Abicalçados announced the renewal of the Covenant of Brazilian Footwear program for another two years. The partnership should receive $ 41.1 million in investments aimed at marketing activities abroad, with r $ 28.5 million disbursed by Apex and the $ 12.9 million remaining by the Association. The program has been in existence for 14 years and has contributed to increase in 50% external sales of Brazilian footwear. In the coming years, the main countries targets of the marketing actions of Brazilian Footwear will be the United States, Mexico, Colombia, Germany, Uae, China and Russia. "The biggest challenge is to win recognition for national brands. This is a paradigm shift difficult to break. But gradually we're overcoming this obstacle, "says Klein.