American Crisis x Brazilian Footwear Export

Even though the United States are drastically reducing the quantity of purchase of Brazilian footwear, the credit crisis that the country goes through should, undoubtedly, “sprinkle” in Brazilian exports. Footwear exporters are on the alert, since they were penalized during 2007 because of the valorization of Real regarding to dollar, and such situation inhibit the generation of competitive prices. Because of its conservative character, the expectations are that the American market presents retraction in consumption and the footwear is one of the items of which sales can immediately decrease in the beginning of the announced recession. Such situation, undoubtedly, will affect more and more our effort to be continuing in this market.

Currently, the United States absorb the bigger slice of the Brazilian embarks. It was 49 millions pairs in 2007, which is equivalent to 28% of the total exported. Such statistics, however, is not comparable to the 90’s operations, when Americans used to purchase 90% of the total embarked. In a market which the price is determining factor in purchase, because of the subcontracting practice – the wholesale business sells their own mark footwear, made in other countries – Chinese concurrence became the main difficulty.

Embarks with destination in the USA have gradually decreasing since 2004, as we can verify according to data of the last ten years. The quantity commercialized in 1998, if 82.3 millions pairs, has been almost the same in 1999 (85.9 millions pairs), having a little increase from 2000 (99 millions pairs), 2001 (98 millions), 2002 (102 millions), 2003 (103.9 millions). However, in 2004 this number decreased to 97.7 millions pairs, being reducing in 2005 (75.4 millions) and following the same course inn 2006 (65.3 millions). Statistics show clearly the reason of national manufacturer’s apprehension: a higher retraction in consumption would make more and more difficult the attempt of keeping North American market as the main purchaser of Brazilian footwear.

Even in the position of third bigger producer and fourth bigger exporter of footwear, and with all the power of national industry, responsible for approximately 300 thousands jobs, Brazilian manufacturer has still some uncertainness regarding to its international business. The main strategy today is the export with its own mark and design and the customer fidelity – that is already well accepted in Central Europe.

To open new markets is also a focus of the exporters, who are searching more and more to commercialize products with added value. The conquest of new clients has been made viable by Brazilian Footwear, a support program to footwear exports, developed by Abicalçados in partnership with Apex-Brasil. It is a work that aims specially the commercial promotion, such as participation in workshops, and which is consolidating the positive image of Brazilian footwear in the foreign market.

 

By Heitor Klein

Executive Director of Abicalçados

 

Revista Courobusiness, Ed. 56 – Jan/Fev 2008