Geovana Pagel
São Paulo – Possibly breaking all international visitor records, the 31st edition of the International Shoes, Sportsgoods and Leathergoods Fair, Couromoda 2004, begins today (13). The opening ceremony should start at 10:30 am, at the Anhembi exhibition pavilion, in the city of São Paulo, the most industrialized city in Brazil. Up to January 16, it is expected that buyers from over 60 countries should visit the fair, generating great export opportunities.
The event opens the large trade fair calendar in the country, and will bring together 915 companies and around 1,500 brands of shoes and fashion accessories, covering an area of 45,000 square meters in stands. The exhibitors at the fair represent 15 Brazilian states and answer to 85% of domestic shoe production.
In 2003 business due to Couromoda, closed at the fair or in the first half of the year, totaled US$ 960 million. For 2004 it is estimated that business should total between US$ 1.2 and 1.4 billion.
Couromoda is responsible for approximately 25% of annual shoe sector revenues, currently at around US$ 7.1 billion. Of this total around US$ 5.3 billion is turned to the domestic market, and US$ 1.8 billion to the export market.
Couromoda president Francisco Santos said that the event will once again be a great indicator of the sales behavior in the sector and that this edition presents a 14% growth in comparison to the previous edition. "Three thousand people were involved in the mounting of the fair, and over the three days of the fair, it is estimated that around 12,000 people should work at the stands assisting the 55,000 visitors."
With regard to the international market, Santos showed some positive factors for the Brazilian shoe business, such as the return to growth in the United States and in Latin America, the strength of the euro, and the high cost of production in Europe.
Regarding China (the largest shoe producer in the world) he stressed some factors that have made Brazilian businesses more competitive: abundant raw material, modern design, sales of small quantities, and well-defined logistics.
The organizers estimate that there should be over 300 visitors from Europe, double the total that went last year. It has also already been confirmed that a group of 20 Spanish buyers will be visiting the fair due to an agreement between Couromoda, moddo.com (an international portal dedicated to the shoe sector, belonging to Telefonica group) and Spanish bank BBVA, which is offering buyers a pre approved line of credit. Other good news is the presence of a group of shop owners from Greece, representing over 100 stores.
Arabs
Large Arab retail chains, such as RNA Resources Group – Landmark Group and Abdul Grafoor Amim & Co, which have 194 shops spread around the Middle East, should also be participating in the fair, interested in the purchase of Brazilian shoes, especially leather sandals. In the 2003 edition, Saudi Arabia alone sent six buyers to Brazil.
The main Brazilian shoe buyers, the United States, should be sending 200 buyers, including 75 retailers connected to the National Shoe Retailers Association (NSRA), coming to Couromoda sponsored by the Buyer Project, a Brazilian Export Promotion Agency (Apex), and Brazilian Association of Shoe Manufacturers (Abicalçados) project.
From Mexico (the fourth largest buyer of Brazilian shoes), another 200 buyers are expected, a direct result of the intensive work Couromoda has been doing in that country, with four Brazilian shoe showrooms.
Visitors from the Mercosur, the Common Market of the South, a customs union between Brazil, Argentina, Uruguay, and Paraguay, should be expressive, with over 700 buyers, especially from Argentina (which has started buying from Brazil again, after a serious recent economic crisis), Chile and Bolivia. The presence of other buyers from the north of South America and Central America is also important.
So as to provide service to all these international visitors, Couromoda has created, with Apex support, the Couromoda Exporter Program and the International Lounge, which provide business orientation.
The president of Abicalçados, Elcio Jacometi, said that the sector may grow even more and double export in four years. "We have already been through great crises, and even so, our export rose 7% in 2003, ending the year at US$ 1.549 billion."
According to him, the Brazilian shoe sector has all it needs to grow more and more on the international and domestic market. The secret is to promote an increase in shoe consumption, with marketing strategies and added value products such as leather fashion accessories.
Export totaling US$ 1.5 billion in 2003
According to a study by the Abicalçados, which used data provided by the Development, Industry, and Foreign Trade Ministry Foreign Trade Secretariat (Secex), the shoe sector exported US$ 1.549 billion in 2003, which represents a 7% increase in comparison to 2002, when revenues had totaled US$ 1.447 billion.
December showed a very positive result. In the last month of the year, the shoe sector had revenues of US$ 146 million, against US$ 116 million in December 2002. In comparison to November, there was a 16% growth (US$ 126 million).
As this is only initial data, Abicalçados has not yet totaled the volume of pairs of shoes shipped in 2003. But according to the November figures, there was a 14% increase in volume.
From January to November last year 170 million pairs of shoes were exported, at an average price of US$ 8.25 per pair, whereas in the same period in 2002, the total was 149 million pairs. The average price in 2002 was US$ 8.94.
Service:
Event: 31st International Shoes, Sportsgoods and Leathergoods Fair
Date: January 13 to 16, 2004
Time: from 10:00 am to 7:00 pm
Location: Anhembi Exhibition Pavilion, São Paulo
Information: (+55 11) 3897-6100
