United States boost footwear exports10/06/2019
The United States keep boosting Brazilian footwear exports. In May, according to data handled by the Brazilian Footwear Industries Association (Abicalçados), U.S. companies imported 782 thousand pairs of shoes, for which USD 14.7 million were paid. The results are higher both in volume (63.7%) and in revenue (80%) in relation to the same period last year. Consequently, in the five months of the year, the United States already totaled 5.6 million pairs imported from Brazil, for which USD 84.76 million were spent, a 31.2% increase in pairs and a 43.4% increase in revenue in comparison with the corresponding period last year.
Abicalçados' executive president, Heitor Klein, highlights that the trade war between the United States and China has been making Americans – the largest consumer market for shoes in the world – replace their suppliers, seeking imports from other countries. "The United States imports over 2.3 billion pairs per year, more than 70% of them from China. Thus the impact is quite significant," Klein explains. For him, the Brazilian market is fully capable of absorbing much of the U.S. demand. In the last five months, the executive adds, sales of Chinese footwear to the United States decreased by more than 70%.
In the first five months of the year, overall footwear exports reached 52 million pairs, for which USD 415.24 million were paid, an 11% increase in volume and a 3.7% increase in revenue in comparison with the same period last year. Considering last month alone, 7.6 million pairs were shipped for USD 70 million, a 19% increase in pairs and a 24.7% increase in revenue in comparison with the same period in 2018. According to Klein, in addition to the increase in exports to the United States, there is also an improvement due to the appreciation of the dollar, which helps set more competitive prices abroad.
If, on the one hand, exports are increasing to the main consumer market for Brazilian shoes abroad, the United States, the decrease is high for the country that ranks second. In the five months of the year, Argentinians imported 3 million pairs for USD 38.66 million, a 28.3% decrease in pairs and a 40.4% decrease in revenue. "Because of its domestic crisis, but especially due to the deterioration of its foreign-exchange reserves, Argentina has been decreasing its imports from Brazil since the second half of last year," says Klein.
In the five-month period, the third destination of Brazilian shoes abroad was Bolivia, to where 3.69 million pairs were shipped for USD 21.95 million, a 0.1% decrease in pairs and an 8.1% increase in revenue.
In the first five months of the year, the largest footwear exporter in Brazil was still the state of Rio Grande do Sul, from where 12.17 million pairs were shipped for USD 181.23 million, an 11.8% increase in pairs and a 2.7% increase in revenue. The second largest exporter was the state of Ceará. In the five months of the year, footwear manufacturers from that state exported 19.53 million pairs for USD 115.8 million, 5.6% and 15.4% increases. São Paulo ranked third, shipping 3.3 million pairs for USD 44.18 million, a 10.1% increase in volume and a 4.4% decrease in revenue.
In the first five months of the year, 13.88 million pairs were imported for USD 154.1 million, a 5.4% increase in volume and a 0.4% increase in revenue in comparison with the same period last year. Considering the month of May alone, 2.26 million pairs were imported for USD 30 million, 20.5% and 29.8% increases, respectively, in relation to the same month in 2018.
The main origins of imports were: Vietnam (4.93 million pairs for USD 77.81 million, 1.1% and 6.5% decreases, respectively); Indonesia (2 million pairs for USD 30.74 million, 24.4% and 11.5% increases, respectively); and China (5.54 million pairs for USD 19.49 million, a 6.1% increase in pairs and stability in revenue).
In footwear parts – uppers, insoles, heels, soles etc. – imports in the five months were equivalent to USD 13.3 million, 47.5% less than in the same period last year. The main origins were China, Vietnam, and Paraguay.
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