São Paulo – As the US dollar soars compared to Brazil’s real, the Brazilian footwear industry is betting on a foreign sales rebound. The reason is that the more the local currency loses value, the cheaper the national product becomes internationally.
“There will be a significant impact,” said the CEO of the Brazilian Footwear Industry Association (Abicalçados), Heitor Klein, regarding the influence of the exchange rate on exports.
The impact, however, is yet to be felt. According to Klein, preliminary 2015 numbers show export revenues shrinking some 10% last year. This is so because the data concern sales made before the real plunged.
The executive noted that deals in this industry “mature over the medium term,” therefore the effects of the shifting exchange rate should become more visible over the next few months. With the dollar selling for around BRL 4.00, according to Klein, Brazilian shoes could regain lost competitiveness on the international front.
He believes revenues could be back to “historical” USD 2 billion-a-year levels within three to four years, provided that exchange rates and costs remain the same, and that foreign demand for Brazilian shoes is in place. Exports are currently fetching about half that amount.
A good barometer for the market is the Couromoda leather and footwear industry show, taking place in São Paulo from next Sunday (10) to Tuesday (13). According to the event’s organizers, importers from more than 60 countries are expected. Autumn/winter collections will be presented.
Abicalçados itself will promote a Buyer Project during the event in a partnership with the Brazilian Trade and Investment Promotion Agency (Apex-Brasil), which consists in taking foreign business owners to fairs to have business meeting with local companies.
The main markets for Brazilian footwear, according to Klein, are the United States, South American countries – especially Argentina –, Europe and the Middle East. He pointed out that there are several promotion actions scheduled for this year, such as the participation of Brazilian companies in fairs in the US, Italy, Germany and Colombia. Concerning the Middle East, the executive said that visits of representatives of the companies to clients in the region are frequent.
This year’s Couromoda will have more than 2,000 exhibiting brands, which, according to the fair’s organization, account for more than 90% of the Brazilian footwear production.
Besides the exhibition, the fair will have matchmaking, awards for the 50 business owners considered to be the most influential in the sector, fashion shows, conference for professionals of the sector, and the São Paulo Prêt-à-Porter, an event by small fashion companies that will be held simultaneously with the fair.
43rd Couromoda and 6th São Paulo Prêt-à-Porter
From January 10th to 13th, 2016
Sunday to Tuesday, from 10 AM to 8 PM
Wednesday, from 10 AM to 5 PM
Expo Center Norte – São Paulo
Information: www.couromoda.com and www.saopaulopretaporter.com
*Translated by Gabriel Pomerancblum and Sérgio Kakitani
