Footwear industry accumulates in the year of 13.9% fall in exports

Brazilian exports of footwear recorded revenue of 13.9% fall in accumulated from January to April this year, in comparison with the same period in 2014, and a retreat of 15.4% in the volume of products shipped. According to data from the Ministry of development, industry and foreign trade in the first four months of the year domestic manufacturers of shoes marketed 39.2 million pairs, registering an income of $ 310,1 million, against a volume of 46.3 million and revenues of $ 359,9 million in the first quarter of 2014. In the first three months of 2015, the footwear industry has reduced 24 thousand jobs over the same period in 2014.
According to Hector Klein, Chief Executive of Abicalçados, the negative results of the industry exports reflect the loss of competitiveness of the industry at a time when the dollar more valuable could give breath greater exports. "The lowest rate of refund of tax adjustments and Reintegrates had negative impact on the industrial sector, as shown by the initial results until April," he says, arguing that the optimistic forecast for exports this year are threatened because of the Government's economic measures. "We have one of the largest production costs in the world and, now, in the midst of recession, it is proposed that adjustment, rather than relieve the industry, onera to pay the account of disobedience with public money," protests.
Sales of footwear, clothing and textiles retreated 3% in the period from January to March this year, according to data of IBGE. The recoil is of 1.7% in the last 12 months up to March. The import of shoes also fell in the first quarter, 7.7%. The accumulated up to April this year, the Brazilian market absorbed 14.27 million pairs for $ 194,4 million. According to the main exporters Abicalçados for Brazil are, in order, Viet Nam, Indonesia, China and Cambodia.
Despite the drop in exports in April the national industry resumed sales to the American market, shipping products with higher added value. "The United States, the main buyer of Brazilian footwear, imported 586.2 thousand pairs for $ 14,37 million, an increase of 3.2% over April 2014. The average price of the product sold has grown almost 80%, from $ to $ 13,63 24,51 per pair "celebrates Klein. In the first four months, Americans bought 3.75 million, generating revenue of $ 55,9 million, 3.3% less than in the same period in 2014.
Until April, the other two largest importers of Brazilian shoes, France and Argentina, recorded revenues of 13.7% drop and 15.3%, respectively. Bolivia already, fourth largest market recorded high of 10.5%. "Even with a brief recovery in the month of March, caused especially by the resolution of the World Trade Organization (WTO) so that Argentina withdraw illegal barriers to imports, the neighbouring country made it clear that he is with the feet flat on internal recession," says Klein.
Seeking to expand the range of market, Russia has become the big bet of the Brazilian factories. The Russian market consumes about 228 million pairs per year, of which 187 million are of foreign origin — 90% imported from China and only 0.9% of Brazil. "We are conducting trade missions in Russia from 2013, the year that we recorded good turnover. But, last year, suffered a setback because of the political and economic tension established by the conflict with Croatia. The market retreated in the face of uncertainty, "said Cristian Schindwein, Coordinator of the unit for Abicalçados development.
According to Schindwein, the Russian market is attractive because the average value of exported pairs revolves around the $ 24,60, while the overall average is $ 8 per pair. "Brazil is still too focused on the spring-summer collections, but many manufacturers are willing to adapt to advance in Russia, where winter is rigorous," he says.