Even with upturn, footwear see moderate advance

The shoe industry expect moderate growth for 2018. The industry believes in maintaining the pace of recovery presented last year, but see the cautious consumer and the negative impact of exchange rates on exports. "The market demand is still depressed. We had a timid reaction due to the year-end holidays, but then fall, "says the Chief Executive of Brazilian footwear industries Association (Abicalçados), Hector Klein. According to data from the Brazilian Institute of geography and statistics (IBGE), the annual production of footwear grew 2.7% in 2017. In the period, 278,840 jobs were created, down 2.2% from 2016. "We have a much better prospect than last year and infinitely superior to 2016," says Edgard Mingoni, Director of Agile, Dow's partner company in the sector of footwear. "We're still in the midst of a crisis, but seems more political than economic. There was little hope to invest and hire, but in 2017 that started to improve. " In an interview with the DCI, the President of Brazilian Azalea, Pedro Bartelle, confirmed that the market in General is more cautious, since the economy has not yet reached the desired rhythm. "For us, however, there is optimism. We are hitting our goals, especially with the Pa, "celebrates. On your annual balance sheet disclosure, Grendene reported advance of net profit of 4.2% in 2017. "It was a result slightly below expectations, but considered good for our long-term goals and the turmoil faced by the Country," said the Chief Financial Officer and investor relations officer of Grendene, Francis Schmidt, in Conference to journalists. "To grow revenue, market conditions should be much better than expected in 2018. We designed some recovery in Brazil, but not to the levels of 2013 already this year. We expect increased consumption and interest quite low, which will bring growth in operating income, "she adds. With regard to exports, the footwear industry closed 2017 with 9.3% growth in revenue and 1.2% in the volume of pairs. According to Abicalçados, main destinations of Brazilian products are United States, Argentina, France and Bolivia. For the Chief Executive of the entity, the shipments have suffered due to the impact of the exchange rate. "The dollar is devalued in relation to the real and does not allow the formation of competitive prices", he ponders. Schmidt points out that export growth occurs on a very weak, to 2016. "During the period, there were several countries undergoing economic recessions, especially in Latin America". He also claims that exports were affected by the end of the Incentive program at Port and Industrial Activities (Proapi). In March last year by the Government of Ceará, benefited exports of leather and footwear. Political uncertainties the uncertainty facing an election year makes for cautious expectations. "In General, instability is a major problem for any company planning. For enterprises that fail to invest ", points Bartelle. According to Klein, the sector has the expectation that Brazil has a positive progression and accelerating structural reforms and Government settings. "This would allow transfer to the resource economy for growth", analyzes the leader. For the Chief Executive of Abicalçados, investments in infrastructure are needed and a tax adjustment. "The tax burden is very high in the country. Who suffers most is the manufacturing industry, due to the broad aspect of the production chain. Primary production, such as agribusiness, doesn't get the same impact, "says Klein.