São Paulo – The footwear market is growing in the United Arab Emirates and Brazilian brands are very well-known by local consumers. The information comes from a survey done by the Glasgow Consulting Group, international consulting firm hired by the Brazilian Footwear Industry Association (Abicalçados) and by the Brazilian Trade and Investment Promotion Agency (Apex-Brasil). The survey was presented last week to companies of the sector and will serve as basis for those interested in exporting to the UAE.
The footwear market in the Arab country grows, on average, 11.3% since 2012 and, last year, domestic sales reached USD 643.3 million, according to the Glasgow survey. Net imports (exports already taken into account) amounted to 67% of the local supply in 2012 and 70% last year. In all, the UAE imported USD 1.4 billion in footwear in 2015 and re-exported USD 1 billion. The local market is also supplied by a small volume of domestic output, which amounted to USD 191 million last year.
The consulting company’s survey shows that some Brazilians brands are well-known by the local market, such as West Coast, Dumond and Havaianas, and that the majority of consumers that had tried Brazilian products are pleased. In a 0 to 5 grading system, the average score given to Brazilian footwear by those surveyed was 3.9, slightly better than other Brazilian products, such as fashion and watches.
According to the survey, Brazil is synonymous with quality in the UAE. The brand Havaianas, for instance, is seen as confortable, durable and of quality. The survey shows that the majority of consumers surveyed has at least a pair of a Brazilian brand or manufactured in the country. Westerners and nationals are the largest base of consumers of Brazilian footwear in the Arab country. Summer and tourism high season are the periods in which these products made in Brazil sell the most.
But those surveyed think that the Brazilian footweat is expensive in comparison to the competitors. However, they admit that the local market doesn’t offer a wide variety of prices, according to Glasgow. The survey also shows that the majority of consumers of Brazilian footwear in the UAE belong to the middle and upper classes. The consulting company offered suggestions to business owners and one of them is to add value to the products using, for instance, pearls and glow to attract women.
Glasgow shows that the retailer with the greatest penetration in the footwear sector in the UAE is the Landmark Group, followed by Apparel Group, Al Shaya Group and Chalhoub Group. According to the consulting firm, the strong business conglomerates have a history and influence in the local market and several groups own the exclusive distribution of the brands. However, Brazilian footwear are found in a number of different stores and don’t operate this way.
The UAE is the seventh place most indicated for international expansion of retailers, according to the survey Global Retail Development 2015, by A. T. Kearney. The country has lost three positions over 2014, but still remains in a top position in the ranking. A strong and growing population, sustained economic growth and political stability inspire confidence in consumers and investors and provide for a favorable environment for retail.
*Translated by Sérgio Kakitani
