Footwear exports grow 13.8% in November

In November, footwear exports confirmed the prospects for a gradual recovery trend in international trade. Data from ABICALÇADOS (the Brazilian association of footwear industries) show that in the eleventh month of the year, 9.55 million pairs were shipped, 13.8% more than in the same month last year. In revenue generated, month 11 totaled US$ 53.4 million, a drop of 23.8% compared to the same month of 2019. According to the entity, the 52% increase in exports of flip-flops with a lower average value was fundamental for the result – and for the discrepancy between the indices. In the accumulated results for the 11 months of the year, 84.48 million pairs were shipped for US$ 598.73 million, decreases both in volume (-19.4%) and in dollars (-32.8%) in relation to the same period 2019.

The executive president of ABICALÇADOS, Haroldo Ferreira, highlights two factors for the recovery of footwear exports in November: the high dollar against the real, which allowed more competitive prices without loss of profitability for the industry; and the performance of the flip-flops segment. “In addition, there is already a recovery trend in the international market, which must be confirmed by the long-awaited vaccination against Covid-19 and the opening up of physical businesses”, says the leader. Even with the recovery, for the year 2020, Ferreira projects a drop of 27%.

Destinations

Between January and November, the main destination for Brazilian shoes abroad was the United States, where 8.5 million pairs were shipped, which generated US $ 126.7 million, a drop of 22% in volume and 30.9% in revenue in relation to the same period last year. The second destination was Argentina, where 7 million pairs were sent for US $ 66.32 million, decreases both in volume (-25%) and in revenue (-32.3%) in relation to the same period in 2019 In addition to the natural drop in total Argentine imports, Brazil still faces the problem of delays in permits to enter the neighboring country. The third destination of the period was France, where 6.46 million pairs were shipped, which generated US $ 52 million, decreases both in volume (-8.4%) and in revenue (-0.7%) compared to the same last year.

Main Exporting States

In the 11 months of the year, the main footwear exporter in Brazil was Rio Grande do Sul, from where 19.9 million pairs were shipped for US $ 266.9 million, down 29.2% and 35%, respectively, compared to the corresponding period of 2019. The second Brazilian exporter in the sector was Ceará, which shipped 29.27 million pairs, generating US $ 151 million, decreases both in volume (-15.6%) and in revenue (-28.3%) in relation to the same interval as last year. The third-largest exporter in the period was São Paulo, with 5.8 million pairs shipped for US $ 60 million, down 19.3% and 37.7%, respectively, compared to 2019.

Vietnam’s imports increase 10.3%

Even with the high appreciation of the dollar, the growth of 10.3% in revenue and 0.3% in volume of footwear imports from Vietnam, the main source of footwear imported by Brazil, were highlighted in November (US$ 10.96 million and 586,000 pairs). In month 11, a total of 1.1 million pairs entered Brazil, for which US $ 19.6 million were paid, representing decreases of 23.8% in volume and 4.8% in revenue in relation to the same month last year. “Even with total imports falling, there are concerns about footwear imports from Vietnam, which arrive in Brazil with values ​​below those practiced by the market and which, therefore, can harm national production”, explains Ferreira, pointing out that ABICALÇADOS is attentive to the fact and requested, in addition to the renewal of antidumping against Chinese footwear – which expires in March next year -, the expansion of the countries targeted by the action to Vietnam and Indonesia.

In the YTD figures for the 11 months of 2020, imports totaled 19.64 million pairs and US $ 281 million, decreases of 24.8% in volume and 18.6% in revenue in relation to the same period last year. The main sources were Vietnam (9 million pairs and $ 163 million, down 18.5% and 5% pre-2019), Indonesia (2.75 million pairs and $ 45 million, down 39% and 38%, respectively), and China (5.82 million pairs and US $ 33.32 million, decreases of 24% and 25%, respectively).

In footwear parts – uppers, soles, heels, insoles, etc. – imports for the 11 months totaled US $ 17.83 million, 37% less than in 2019. The main origins were Vietnam, China, and Paraguay.

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