An appalling first half-year period for Brazil’s footwear: exports down 31.2%

An appalling first half year for Brazil’s footwear: exports down 31.2%

The first half-year period turned out to be appalling. It also evidences that CRV effects have been heavily affecting footwear (and more) production all over the world actually. In fact, from January to June 2020, Brazil’s footwear exports decreased by one third.

An appalling first half-year period

Abicalçados (the association of Brazilian footwear manufacturers), despite such heavy collapse, is confident about a few comforting signs underway. Nevertheless, they will not be able to offset the overall situation: according to estimates, throughout the whole year, exports will supposedly decrease by 22 to 30%. In fact, according to an internal survey, Brazilian shoe factories are working, for the time being, at limited speed, as their manufacturing capacity currently reaches 30.9%. For the records, Covid-19 has deeply undermined employment as well. In fact, in December 2019, Brazil’s footwear industry was hiring 269,000 workers. At present employees amount to 232,000 units.

Value and volumes

In the first six months of 2020, Brazil’s footwear exported abroad 43.1 million pairs of shoes: -24.6%, therefore, compared to the same period of 2019. As regards revenues, they amounted to 330.5 million dollars, that is, -31.2%. Exports towards Italy dropped by 11.2%, in terms of value, yet they increased by 26.4% in terms of volumes. Average price went down by 29.8%. Conversely, pairs of shoes exported from Italy to Brazil decreased by 37.5%, and earnings consequently dropped by 46.2%. Average price went down by 13.8%.

The comment         

Haroldo Ferreira, executive president of Abicalçados, has emphasized that figures already evidence the softening of the worldwide crisis, caused by CRV outbreak, as sales are progressively picking up in some of the most important reference markets. “Although the overall scenario is getting better, our performance is still much below our usual standards”, remarked Ferreira, while emphasizing, at the same time, that exports will expectedly drop by 22% to 30% throughout 2020.

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