Footwear see improvement in infant and female lines; male branch follows weak

São Paulo-amid the improvement of production process in footwear, entrepreneurs can see that this principle of resumption is concentrated in female and child products, leaving out the line of men''s shoes.
Macroeconomic indicators, as of fall of inflation, decreased interest rates and consumer confidence recovery, are improving the mood of entrepreneurs of the footwear. Given this, the industrial production has already obtained an expansion of 5.1% in January to June this year compared to the same period last year, according to the latest data released by the Brazilian Institute of geography and statistics (IBGE).
While large companies like Grendene and Alpargatas, geared to manufacturing of sandals, women''s shoes and for children, recorded positive results in the first half of the year, the same perception is not found in the polo footwear of Franca (SP), whose production is concentrated in men''s shoes. "We have a level far below capacity", signals the Union President of the shoe industry of France (Sindifranca), José Carlos do Couto. He explains that the production closed last year at 30.3 million of pairs, but that perhaps in 2017 not even reach this level the 29.5 million, designed initially. As comparison, the region of the interior of the State of São Paulo produced 39.5 million in the year 2013-ante 37.8 million (in 2012) and 37.2 (in 2011).
"We have the capacity to produce up to 40 million, but it''s going to take to get this level. An improvement maybe in 2018, "he says.
The inequality indices of production recovery noted in the employment sector numbers. Sindifranca lifting, based on recent data, points out that, while the employee contingent in Brazil grew 0.7%, to date people 299,400 from January to June, only in France there was a retraction of 3.8%, to 21800 workers. "We have no way to compare our production, in France, of leather shoes, made more handmade, with the other States, in sandals, with lower added value."
For the Chief Executive of Brazilian footwear industries Association (Abicalçados), Hector Klein, the footwear segment presents a fairly quick reaction, which contributed to the increase in production in the first half. "The sale of shoe moving with speed in the short term, any demand condition (positive or negative), reinforce.
According to him, the low average ticket, you end up not compromising both the budget, assistance in sale by retail and, consequently, the recovery of stocks.
Klein adds that domestic production had an additional stimulus in the first half by the positive impact of the use of funds from dormant accounts of the severance Fund (FGTS), which Service, in part, were used for the purchase of semi-durable goods, such as shoes.
For the second half, Klein predicts a higher industrial activity from September, focused on Christmas sales campaigns.
Currently, the level of capacity utilization in the industry is approximately 75%, lower than the observed in the years 2011 and 2012, which revolved around 95%. "This (current) level reflects a recovery this year, which is however based on a low basis of comparison with last year," says.
The President of Alpargatas, Márcio Utsch, commented during the dissemination of the results of the second quarter, the company sees prospects of improvement in sales in the second half. The improvement of the macroeconomic scenario was appointed by the Executive as the factor that should pull the growth in demand.
Despite the downturn in the first half, to 30% in terms of volume in the market of sandals in Brazil, he indicated that sales to consumers grew 7.5% in May and 2.9% in June. The accumulated data was influenced by adjustments in inventory levels of wholesalers and distributors.
On Trade, the internal market has advanced 14.1% in the first half, compared to the same period last year. The Financial Administrative Director and investor relations company, Francis Schmitt, considered that there was a downturn in results from April to June, compared with the strong performance from January to March, which led, however, to a "very satisfactory growth in the first half," compared to the previous year.
According to him, the company is already preparing, including, to resume "in three or four years," the pace of growth in 2012 and 2013.
The Euromonitor projects that production in Brazil reaches 691.8 million pairs this year, just above the volume last year (690,413,000). For the institution, in 2020, the production should add 746,785,000, surpassing the result of 2011.