São Paulo – June saw record-breaking revenue for the home items and décor industry, with sales tending to pick up further in July, Brazilian home and décor items, presents, party items and flowers industry association (ABCasa) Eduardo Turqueto told ANBA in an interview.
“It was a surreal hike in sales. Covid really changed people’s lives. Since they can’t travel or go out to bars and restaurants anymore, they’re spending on home items for comfort. The household has become the great ally of families. The pandemic has reconnected people with their homes,” said Turqueto.
According to him, sales went down across the board in March and April. May was a month of rebound, and June was one of growth, especially for home items such as cushions, quilts, lighting fixtures, bean bag chairs, curtains, decoration items, kitchen utensils and appliances, cooking pots, glass, and plastic. Domestic sales figures are yet to be released.
Turqueto said the pandemic impacted sales of party and Christmas items the most, with gatherings out of the question. When it comes to flowers, the association represents only the artificial flower industry. February saw the association host its ABCasa Fair, the biggest fair for the industry in Latin America, which saw weak turnout this year. its other ABCasa Christmas, Parties and Parks fair, which was slated for May, has been cancelled and should only take place again next year. This show is where retailers stock up for the end of the year.
Sales have also gone up due to the reopening of some outlets, Turqueto said. “You had people shopping unabashedly both online and at brick-and-mortar stores, with plenty of discount sales after two slow months,” he said. Regarding stores, however, he noted that ABCasa would never put its collaborators, employees, contracting parties or clients at risk. “Each city and each state has their own rules for reopening. We’re observing government protocols to reopen in a completely safe way,” he said.
Foreign sales
Exports climbed to USD 58.5 million in January and USD 78.6 million in March. Sales dropped to USD 51.96 million in April and picked up to USD 58.49 million in May. Year-to-date through May, home item exports fetched USD 325.8 million, down 16.9% year-on-year. Numbers for June aren’t available yet.
The leading export destinations were the United States, United Kingdom, Argentina, Paraguay, Peru, Uruguay, Chile, Bolivia, Mexico and the Netherlands, as per ABCasa numbers.
According to Turqueto, when the pandemic first broke out in China, importers turned to other markets, like Brazil and India, hence the hike in foreign sales.
“In China, the pandemic started in November and December. They had to cancel some of their sales, and importers in Europe and the United States thought ahead. They looked to Brazil and India. I believe that post-pandemic, those who used to buy only from China will start buying more and more from Brazil,” said Turqueto.
The demand for exports was very strong in February, said Turqueto. “As soon as the pandemic hit in Brazil the scenario shifted, with a lot of cancellations and exports brought to a halt. March and April were rough months, but some household item sectors managed to adapt by making sanitizer bottles and facemasks. They were quick to find a niche because they were ready for it, and so they grew,” he said.
Turqueto argues that Brazil is a major exporter in this industry, and exports will keep going up. “We’re going to see lots of growth, no question about it. Foreign companies have their sights on Brazil. We’re going to double or triple our exports.”
However, China will remain crucial, since many Brazilian manufacturers rely on inputs from the Asian nation, according to Turqueto. These items are sourced mostly from China, Paraguay and India.
ABCasa international relations manager Gislaine Carrijo said Arab countries show great promise in home and décor exports. “We are seeing great potential and we are keeping track of the opportunities. At this time we have a demand from buyers in Dubai, Abu Dhabi (in the UAE) and Syria, among other places,” said Carrijo.
Translated by Gabriel Pomerancblum