World Footwear

Trade

Brazil grows exports to the US

Sep 11, 2019 Brazil
Brazil grows exports to the US
According to Abicalçados 9.47 million pairs of Brazilian shoes were sold abroad in August, 7.4% more than in the same month of 2018. The US is the main destination for Brazilian exports
Shipments of Brazilian shoes increased for the second consecutive month. According to data by the Brazilian Footwear Industries Association (Abicalçados), 9.47 million pairs were sold abroad in August, 7.4% more than in similar month in 2018. In value, however, there was a 6% decrease (totalling USD 78 million) driven by the declining average price of exports (which decreased by more than 12%).

Over the first eight months of the year exports totaled 76.66 million pairs and generated 644 million US dollars, an 8.2% increase in volume and a 2.5% increase in revenue compared with similar period last year.

Abicalçados' Executive President, Haroldo Ferreira, commented: "As industry costs are in reais, when the dollar appreciates we have the possibility of setting lower prices". He highlighted 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 indicates that in August the average price of the exported products was 8.24 US dollars, while in similar month of 2018 the price was roughly 9.10 US dollars.

Trade war

With imports of 748.58 thousand pairs valued at 15.63 million US dollars, the United States was the main international buyer in August, with an 18% increase in pairs and a 5.8% increase in revenue compared to 2018. Over the first eight months of the year, Americans imported 8 million pairs, for which 135.87 million US dollars were paid, increases of 32% and 35.4%, respectively, when compared to the previous year. Ferreira believes this 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", he concluded.

Argentina & France

The second destination for Brazilian footwear, despite the domestic crisis, was Argentina. In August, the neighbouring country imported 1.12 million pairs, for which 11 million US dollars 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, Argentina imported 5.76 million pairs and 65.73 million US dollars, a 30.6% decrease in volume and a 36.5% decrease in revenue compared to similar period in 2018. France was the third destination. In August, French buyers imported 1.18 million pairs, for which 6.36 million US dollars were paid, an almost 300% increase in volume and a 52.4% increase in revenues in relation to the same month of 2018. In the first eight months, France imported 4.93 million pairs and 39.5 million US dollars in total, a 23.4% increase in volume and a 1.2% decrease in dollars in relation to last year.

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