Footwear exports decrease for the second month09/05/2019
Reflecting the crisis in Argentina and the end of shipments of the High Summer season, footwear exports decreased for the second month in a row. After decreasing by 9.4% in March, the drop in revenues was even greater in April, 17.7% in relation to the same month last year. Data prepared by the Brazilian Footwear Industries Association (Abicalçados) indicate that in the fourth month 9.12 million pairs were shipped for US$ 76.66 million. The decrease in volume considering the same relation was 7.6%. With the result, during the four months, exports totaled 44.16 million pairs shipped, generating US$ 343.8 million, a 9.4% increase in volume and a 0.1% decrease in revenues in comparison with the same period in 2018.
Abicalçados' executive president, Heitor Klein, evaluates that the behavior can mostly be explained by the effect of the crisis in Argentina. "The crisis in the neighboring country, our second main destination abroad, has been affecting Brazilian footwear exports since the second half of last year. In April alone, the setback was almost 50%, which had a reflection of a decrease of over 10% in the general numbers," he says. In the four-month period, Argentina imported 2.5 million Brazilian pairs for US$ 32 million, 33.1% and 45.1% decreases, respectively, in relation to the same period last year.
In addition to the Argentinian effect, Klein points out that the end of the shipments of the High Summer season also negatively affected the performance. "Rubber or injected shoes, beach sandals, are a strong part of our exports. If we disregard the results of this segment, total exports would have increased by 3.7% in April," he explains.
The effects of the trade war between the United States and China continue to positively reflect in the shipments. By gradually shifting the supply matrix from Asia to other countries, due to the fear of extra fees, Americans have been increasing their imports of Brazilian shoes since last year. During the four months, 4.8 million pairs were shipped to the United States, generating US$ 69.8 million, an increase in both pairs (26.8%) and values (37.1%) in relation to the same period last year.
The state of Rio Grande do Sul is still the main origin of Brazilian footwear exports. In the four-month period, the state shipped 10.25 million pairs for US$ 152.24 million, a 7.3% increase in volume and a 1.1% decrease in revenues compared to the same period in 2018.
The second largest exporter during the period was the state of Ceará. In the four months, Ceará shipped 16.88 million pairs, generating US$ 96.9 million, increases both in volume (5.9%) and in revenues (9.8%) in comparison with the same period last year.
Despite facing a 4.4% decrease in the revenues generated with the shipments during the four months, São Paulo was the fourth largest exporter during the period. In the four-month period, the state totaled 2.6 million pairs shipped for US$ 35.18 million. In pairs, the increase in relation to 2018 was 15.2%.
The month of April registered the first increase of the year in footwear imports. Last month, 2.56 million pairs came into Brazil for US$ 30.45 million, a 0.6% increase in volume and a 3.7% increase in revenues in comparison with the corresponding period last year. With the result, imports totaled 11.62 million pairs and US$ 123.95 million, a 2.9% increase in pairs and a 4.9% decrease in revenues in relation to the same period of 2018.
The largest footwear exporter to Brazil during the period was Vietnam. In the four-month period, imports of Vietnamese shoes totaled 3.96 million pairs and US$ 63.28 million, decreases both in volume (-5.8%) and in revenues (-10.7%) in relation to the corresponding period last year. The second origin of Brazilian imports was Indonesia, with 1.63 million and US$ 24.35 million, 20.9% and 8.5% increases, respectively, compared with 2018. The third origin was China, with 4.56 million and US$ 16 million, an 8.2% increase in volume and a 6.1% decrease in revenues in relation to the same period last year.
In footwear parts – uppers, soles, heels, insoles etc. – the imports in the four-month period reached US$ 10.93 million, a 48.9% decrease compared to the same period last year. The main origins were China, Paraguay, and Vietnam.