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USA is the main destination of footwear exports

Shipments of Brazilian shoes increased for the second consecutive month. According to data prepared by the Brazilian Footwear Industries Association (Abicalçados), 9.47 million pairs were shipped in August, 7.4% more than in the same month of 2018. In values, however, there was a 6% decrease in the same comparison, totaling USD 78 million. The explanation lies in the average price of the shipped product, which decreased by more than 12%. With the August result, the total over the eight months of the year reached 76.66 million pairs, which generated USD 644 million, an 8.2% increase in volume and a 2.5% increase in revenues in comparison with the same period last year.

Abicalçados' executive president, Haroldo Ferreira, mentions that the disparate result between volume and revenues may be explained by the appreciation of the dollar, which makes the prices of Brazilian shoes more competitive abroad, and also by the beginning of shipments of summer collections. "As industry costs are in reais, when the dollar appreciates we have the possibility of setting lower prices," Ferreira explains. He highlights the 15% increase in shipments of flip-flops in the eighth month of the year, which has a great impact on the overall result, considering that 50% of the volume exported by Brazil is from this segment. Data prepared by Abicalçados indicate that in August the average price of the product sent abroad was USD 8.24, while in the same month of 2018 it was USD 9.10.

Trade war
Totaling the imports of 748.58 thousand Brazilian footwear pairs for USD 15.63 million, the United States was the main international buyer in August, with an 18% increase in pairs and a 5.8% increase in revenues compared to 2018. Over the eight months, Americans total 8 million imported pairs, for which USD 135.87 million were paid, 32% and 35.4% increases, respectively, in relation to last year. Ferreira reiterates that the development is expected and will likely continue to occur until the end of the year, especially due to the trade war between the United States and China, which has been making the Asian product more expensive with extra import tariffs. "Traditionally, 70% of US footwear imports are from China. With the new tariffs, US importers have been seeking alternative suppliers, making room for our product," the leader explains.

Argentina
The second destination abroad, despite the domestic crisis, is still Argentina. In August, Argentines imported 1.12 million pairs, for which USD 11 million were paid, a 38% decrease in volume and a 29% decrease in revenues in relation to the corresponding month last year. As a result, in the eight-month period, Argentines imported 5.76 million pairs and USD 65.73 million, a 30.6% decrease in volume and a 36.5% decrease in revenues in relation to the same period of 2018.

France was the third destination of Brazilian shoes abroad. In August, the French imported 1.18 million pairs, for which USD 6.36 million were paid, an almost 300% increase in volume and a 52.4% increase in revenues in relation to the same month of 2018. With the result, France imported 4.93 million pairs and USD 39.5 million in total, a 23.4% increase in volume and a 1.2% decrease in dollars in relation to last year.

States
The state of Rio Grande do Sul is still the main exporter of shoes in Brazil, accounting for 46% of the total generated with the shipments in 2019. Over the eight months of the year, the companies in that state shipped 19.76 million pairs for USD 296.8 million, a 10.8% increase in volume and a 2% increase in revenues in relation to the same period of 2018.

The second origin of the exported shoes was the state of Ceará, from which 26 million pairs were shipped in the eight months, generating USD 160.4 million, increases both in volume (1.1%) and in revenues (7.2%) in relation to the same period last year.

São Paulo appears in the third position. Between January and August, the state shipped 4.9 million pairs for USD 67.67 million, a 7.6% increase in volume and a 3.2% decrease in revenues in comparison with the corresponding period in 2018.

Imports
In the eighth month, 1.97 million pairs came into Brazil, for which USD 32 million were paid, decreases both in volume (-11.2%) and in values (-1.9%) in relation to the same month last year. As a result, from January to August, imports totaled 19.6 million pairs and USD 246.7 million, a 0.7% decrease in volume and a 0.2% decrease in revenues compared to the same period of 2018.

The main origins are still Asian countries: Vietnam (7.87 million pairs and USD 122 million, 7.5% and 12% decreases, respectively, in relation to 2018); Indonesia (3 million and USD 48.3 million, 16.6% and 12.5% increases, respectively); and China (6.48 million and USD 32.28 million, a 1.1% decrease in volume and a 19% increase in values).

In footwear parts – uppers, soles, insoles etc. – the imports during the eight months totaled USD 20.6 million, 44% less than in the same period last year. The main origins were China, Vietnam, and Paraguay.