Brazilian footwear companies predict exports increase in 2015Staff writer ▼ | January 17, 2015
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.
Abicalçados The Brazilian Footwear Industry Association
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.
In December 2014, footwear exports increased 10% over the same month in 2013. Revenues from foreign sales reached $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 $1.067 billion, $30 million less than in 2013. Despite the 5.4% increase in sales volume, the drop in the product’s average price drove down revenues.
To help boost exports, Abicalçados signed a partnership with the Brazilian Trade and Investment Promotion Agency (Apex-Brasil). The government agency will invest R$ 28.5 million ($10.7 million) throughout 2015 and 2016, while the association will invest R$ 12.9 million ($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. ■