Brazil’s footwear industry thanks the trade war between China and the USA, but 2019 is still a year filled with problems. Meanwhile, the country’s market confirms its liking for made-in-Italy shoes.
According to data published by Brazil’s footwear association (Abicalçados), the country’s companies exported 83.3 million pairs from January to September 2019, for a value of 781.1 million USD, equal to a 5.6% increment in volume and +2.6% increase in value. During the period taken in consideration, the USA increased their purchases by 38.4% in volume and 38.1% in value. An expected trend, according to Abicalçados’ CEO Haroldo Ferreira, due to the trade war between the United States and China.
All the glitter isn’t gold
Brazil is the world’s fifth largest producer with 944 million pairs of shoes manufactured every year, but the segment is undergoing a challenging period. “The main reason is the economic period for both the national and international economy – explains Mr. Ferreira, who recently replaced Heitor Klein -, beside from having an international competitivity issue”. Among the challenges that he states he will be facing as the president of Abicalçados, is that of reducing import duties in order to be competitive on the national market. Ferreira believes that Brazilian footwear “fit the current trends of the 4th industrial revolution”.
With regards to imports, Italy also played its part during the first 9 months of 2019: brazil’s purchases grew by 24.9% in value (21.8 million USD) and by 22.9% in quantity (186,000 pairs). Italy is in fourth place in Brazil’s ranking behind Vietnam, Indonesia and China.