São Paulo – The Brazilian Footwear Industry Association (Abicalçados) is expecting an increase in exports in 2015. Last year, the sector faced a reduction in sales, which resulted, according to the Association’s president, Heitor Klein, in the closure of 24,000 job positions.
“We have the outlook for growth in Brazilian exports and a perspective of stability in the domestic market in the same levels of 2014”, he highlighted in an interview this Tuesday at the 42th International Shoe, Leather Goods and Accessories Fair (Couromoda, in the Portuguese acronym), in São Paulo.
According to Klein, the real (Brazilian currency) devaluation against the dollar is one of the factors that increase the sector’s competitiveness. In his assessment, the American currency could reach R$ 3.00, which is the value he considers the foreign exchange balance point. “We think this is a year that will allow us to achieve great expansion in the global market. Exports are the target for all of the companies”, he emphasized.
In December 2014, footwear exports increased 10% over the same month in 2013. Revenues from foreign sales reached US$ 119.25 million. However, throughout the year, the sector’s export revenues dropped 2.6% in comparison to 2013. 129.5 million pairs of shoes were shipped abroad for the amount of US$ 1.067 billion, US$ 30 million less than in 2013. Despite the 5.4% increase in sales volume, the drop in the product’s average price drove down revenues.
To help boost exports, Abicalçados signed a partnership with the Brazilian Trade and Investment Promotion Agency (Apex-Brasil). The government agency will invest R$ 28.5 million (US$ 10.7 million) throughout 2015 and 2016, while the association will invest R$ 12.9 million (US$ 4.9 million) for the marketing of domestic brands abroad. United States, Mexico, Colombia, Germany, United Arab Emirates, China and Russia are the main targets for the Brazilian companies.
If the domestic market sales and exports keep increasing, Klein believes the industry will be able to maintain the employment levels. “With the stability in the domestic market and the exports increase, we will at least keep the number of employees we have today, and even have the possibility for an increase”, he highlights. The sector generates around 255,000 direct jobs.
*Translated by Sérgio Kakitani
