Brazilian footwear exports on the high

According to the Brazilian Shoe Manufacturers Association, the country’s footwear exports recovered pace. From January to May, 49 million pairs were sold abroad, generating 441 million US dollars

This positive performance resulted in a 1.1% increase in volume, compared to similar period last year, and a significant increase in value terms (+20.1% in US dollars).

According to Heitor Klein, Executive President of Abicalçados, the Brazilian Shoe Manufacturers Association, the devaluation of the dollar has contributed to the increase of the prices for Brazilian products (up by 13.9%, from 8.57 US dollars to 10.86 US dollars a pair). The appreciation of the Brazilian Real continues and astrong domestic currency results in higher prices for the Brazilian products, as the companies will face higher production costs (expressed in the Brazilian currency). Mr. Klein expects that the rest of the year will be impacted by a slowdown of the Brazilian exports as a result of the currency fluctuations and the domestic situation with Brazil being impacted by the uncertainty in politics.

In the first five months of the year, the main destination for Brazilian footwear was the United States, to where 4.7 million pairs were sent, generating 79.3 million US dollars, a decrease of 10.8% in volume and -1.3% in US dollars from similar period last year.

Second destination was Argentina, with 3.6 million pairs with a total value of 56.2 million US dollars, increasing both in volume (28%) and value (62.8%) in comparison with the same period of 2016. Paraguay follows with 5.8 million pairs and total value of 39 million US dollars, lower numbers in volume terms (-9%), but an outstanding increase in value terms, with revenue more than doubling value (+120%) compared to similar period in 2016.

Brazillian Furniture Industry

The domestic furniture industry has an important role in the indicators of the manufacturing industry in Brazil, either in the production of value, or by its strong social impact and the ability to generate jobs. In the last ten years, the productivity of this segment has improved, allowing a strong growth regarding exports. Furniture hubs – usually made up of small and medium-sized manufacturers – are undergoing positive changes, especially after the significant growth of the internal market, which incorporated many furniture and design consumers, who were excluded by then. Brazil is characterized by a combination of several production processes, involving the most different raw materials, whose result brings a variety of sophisticated and innovative end products.

Both in Europe and in the United States it can be noted an export-oriented production. The low coefficient of openness to foreign trade reveals great opportunities for the furniture industry, which has been trying to change these figures through international partnerships and programs such as the Brazilian Furniture. 2014 figures and projections for 2015 confirm not only the importance of the industry, but also its potential for resuming economic growth and overcoming challenges with a focus on innovation and sales to other countries.

Abimóvel – IEMI/2013

Footwear Trends

In an interconnected age, consumers are more educated and aware of today’s issues. The Internet and social media make it easy for news and information to proliferate and reach everyone. As a consequence, some consumers expect brands to “give back” and reinvest their money into society.
In this regard, footwear brands can define a strategy and think about how they can help the world. They can start using more eco-friendly materials, create and support social events, help non-profit associations and promote transparency over their manufacturing processes.

Brand Veja purchases its organic cotton from farmers who live in poor regions of Brazil, ensuring they receive a fair value for their product, and TOMS brand gives back to society a pair of shoes each time a consumer buys a pair for himself. An initiative that makes the consumer feel good to be an active member of society. These are just two examples of companies valuing the impact their products and their businesses have in the surrounding communities.

Establishing Partnerships

Sponsoring products with known athletes or artists is something companies like Nike and Puma have been doing for a long time. But partnerships with artists, famous personalities, and charity organizations represent interesting opportunities for brand growth.
Recently, adidas associated itself with Kanye West to create a line of products, that were co-produced between the athletic brand and the rapper. The idea is to use the artist creativity to create high-end footwear, accessories, and apparel. Knowing Kanye West uses adidas is very different from knowing Kanye West had a hand in the design of an adidas product. It’s a great way to reach out to all the rap lovers, specially his fans, and increase adidas brand value among them, and that was adidas’ understanding.

Footwear companies can and should also try to establish partnerships. Especially those who focus on offering high-value products with high differentiation. Even smaller brands can take advantage of a partnership with local charities, events or bloggers. The associaton with a big causes can create a positive impact on consumers.

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