Brazil: Footwear Exports in January Fall Short of Last Year’s Figures

Data by the Abicalçados footwear industry association reveal that, in January 2023, Brazilian exports reached 10.3 million pairs abroad, generating $90.75 million in return, down -29.7% in volume and -23% in revenue compared to last year.

Haroldo Ferreira, the executive president of Abicalçados, highlights that although the sales drop exceeded expectations, the industry still expects to recover the lost market share by the second half of the year. “The global market is still quite unstable, but it is already showing signs of recovery. However, the effect on exports is not immediate. We hope to end 2024 with an increase of up to 0.9% in volume shipped abroad,” said the executive.

According to Abicalçados, lost shipments to the Colombian and Argentine markets (40% and 24%, respectively) drove down the sector’s performance. “Colombia is our third main destination in terms of volume, leaving a substantial mark on our overall figures,” commented Ferreira. Abicalçados’ Market Intelligence projects a 13% decrease in footwear exports for the first quarter, with recovery starting in the second half of the year.

Destinations

The United States, the top destination for Brazilian footwear exports in terms of revenue generated, imported from Brazil 1.1 million pairs in the first month of 2024, generating $21.48 million, down in volume (-13.4%) and revenue (-8.2%) compared to January last year.

Argentina, the second destination for Brazilian exports in terms of revenue, imported 556.5 thousand pairs, paying $11 million for them, drops in both volume (-24.3%) and revenue (-13.6%) compared to the same period last year.

Completing the podium of the main destinations in the first month of 2024 is Spain, which imported 2.14 million pairs, generating $6.17 million for Brazilian factories. In pairs, Spain is the only country among the main destinations that yielded a positive balance compared to 2023 (+4%). However, revenue decreased by 10.7% compared to January 2023.

Rio Grande do Sul

The primary origin of Brazilian footwear exports continues to be Rio Grande do Sul state. In January, 2.98 million pairs left factories in Brazil’s southernmost state, generating $45.56 million, an increase of 5.5% in volume and a decrease of 2.4% in revenue compared to January 2023.

The second origin of sector exports in the first month of the year was Ceará, which shipped 3.72 million pairs for $21 million, decreases in both volume (-37%) and revenue (-39.4%) compared to the same month last year.

Imports

Like exports, footwear imports decelerated in early 2024. In the first month of the year, Brazil imported 2.8 million pairs for $37.12 million, resulting in descending figures in both volume (-13.5%) and revenue (-24.3%) compared to the corresponding month of 2023.

The main origins of footwear imports into Brazil continue to be the Asian countries China, Vietnam, and Indonesia, which together accounted for 70% of imports. In January, with an average price of $3.90 per pair, China shipped 1.1 million pairs to Brazil, for which $4.3 million were paid, down 32.2% and 18.8%, respectively, compared to the same month in 2023.

Vietnam was the second origin in January, from which Brazil imported 799.58 thousand pairs for $17.16 million, decreases of 34.3% and 30.8%, respectively, compared to 2023. Rounding out the import ranking stands Indonesia, with 347.76 thousand pairs for $5.7 million.

See below the footwear imports and exports through Brazilian ports between Jan 2022 and Dec 2023. The data is from DataLiner.

Footwear Imports & Exports | Jan 2022 – Dec 2023 | TEU

Source: DataLiner (click here to request a demo)

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