São Paulo – The Brazilian footwear industry posted a decline in exports in the first two months of the year, the Brazilian Footwear Industries Association (Abicalçados) reported on Tuesday (12). In the first two months of the year exports reached 18.38 million pairs for USD 169.66 million, down 31.3% in volume and 22.8% in revenue compared to a year earlier.
This was the worst result for the two-month period throughout the entire time series started in 1997, Abicalçados said. The association says that the figures have raised a red flag for the Brazilian footwear industry. Competition with China drove the decline, as did the economic situation in Argentina.
“There have been instabilities and serious inflationary processes in major markets across the world. Of course these have an impact. But I believe the biggest impact has been the return of a more aggressive China to the market, taking up space from international competitors, particularly in Latin America,” said Abicalçados executive president Haroldo Ferreira. Latin America absorbs over 50% of Brazilian footwear exports.
Revenue-wise, the top destination of Brazilian shoes in the first two months of the year was the United States (pictured, a store in New York), which was shipped 1.9 million pairs for USD 38.9 million. Argentina was the second leading destination of Brazilian footwear – 1.18 million pairs were shipped there for USD 24.75 million. Third came Spain, to where 2.93 million pairs were exported for USD 8.88 million. Shipments to the three destinations declined.
Translated by Guilherme Miranda
