YTD footwear exports at similar levels to 2019

After a year of declining exports due to the impacts of the Covid-19 pandemic, the Brazilian footwear sector has shown a significant recovery in footwear shipments in the first half of 2021. Data prepared by Abicalçados (the Brazilian shoe manufacturers association) reports that in the first half of the year, footwear exports totaled US$ 389 million, generated by the sale of 57 million pairs. Revenue increased by 17.77%, and volume increased by 32.3% compared to the same period last year, when the world was going through the peak of the new coronavirus pandemic. Compared to the pre-pandemic period, the first half of 2019, there was a 19% drop in revenue and 0.3% in volume. According to Abicalçados, the lower value generated by exports is due to price adjustments for the international market. With a stronger dollar, it is possible to grant more competitive values.

Considering only the month of June this year, 7.78 million pairs were shipped, generating US$ 65.47 million, up 116% in volume and 84% in revenue compared to the depressed base of last June. Compared with June 2019, the increase is 19.7% in pairs sold, with a 2.6% drop in revenue generated.

The CEO of Abicalçados, Haroldo Ferreira, points out that although there is an indication of a sensible recovery in shipments, the sector will possibly end 2021 at levels below those recorded in the pre-pandemic in 2019. “We are growing on a record low base, which took us to the levels of almost four decades ago,” assesses the executive, noting that last year exports dropped by more than 18%.

Destinations
In the first half of the year, the main destination for Brazilian footwear abroad was the United States, to which 6.36 million pairs were shipped, generating US$ 88 million, increases of 44.4% in volume and 30.8% in revenue compared to the first half of 2020.

The second destination for the semester was Argentina, where 5 million pairs were shipped, generating US$ 48 million, increases of 59.3% and 48.4%, respectively, compared to the same period last year.

The third destination of the semester was France, to which 3.36 million pairs were shipped, generating US$ 28 million, increases of 13.7% and 11.7%, respectively, compared to the same period in 2020.

Exporting states
The main exporter of footwear in the first half was Rio Grande do Sul. 14 million pairs were shipped from Rio Grande do Sul, for which US$ 166.8 million were paid, increases of 33.8% in volume and 14.3% in revenue compared to the first half of last year.

The second-largest exporter in the semester was Ceará, from which 18 million pairs departed worth US$ 95.47 million, increases of 26.1% and 16.5%, respectively, compared to the same period in 2020.

The third-largest exporter in the period was São Paulo. From São Paulo factories, 4.25 million pairs departed, which generated US$ 43.16 million, increases of 30.7% and 25%, respectively, in comparison with the first half of 2020.

Chinese imports increased by 125% in June

Footwear imports also registered an increase in June. The third consecutive monthly increase compared to 2020, June, registered the entry of 1.3 million pairs, for which US$ 26.7 million were paid, up 23.2% and 19.7% compared to June 2020. In the first half of the year, footwear imports totaled 12 million pairs, for which US$ 159.7 million were paid, a 4.6% drop in volume and a 1% increase in revenue compared to the first six months of last year.

The three main origins of shoes imported by Brazil are still Vietnam, Indonesia, and China. According to the report, Vietnam exported 547,600 pairs to Brazil in June for US$ 12.64 million, a 10% drop in volume and an increase of 9.1% in revenue compared to the corresponding month of 2020. Indonesia shipped 216,000 pairs for US$4.34 million, down 6.7% in volume and up 3.8% in revenue compared to June last year. China, in turn, registered the biggest increases. In June, 286,000 Chinese pairs were imported for US$ 1.68 million, an increase of 125% in pairs and 9% in revenue compared to the same period in 2020.

In the six-month period, imports from Asian countries registered the following figures: Vietnam, 4.43 million pairs and US$ 89 million, drops of 16.4% and 1.5%, respectively; Indonesia, 1.5 million pairs and US$ 27.2 million, down 8.6% and 0.1%, respectively; and China, 5 million pairs and US$ 18.55 million, up 5.2% in volume and down 5.5% in revenue compared to 2020.

In parts of shoes – uppers, insoles, soles, heels, etc. – imports in the semester totaled US$ 12.5 million, an increase of 18% compared to the first semester of 2020. The main origins were Paraguay, Vietnam, and China.

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