Grendene goes upmarket
26/05/2009
Brazilian footwear producer Grendene has claimed that a policy of attempting to overcome the effects of the economic downturn by making more upmarket shoes has produced positive results in the first quarter of 2009.
The company was able to reaise the average price of its shoes by 24.3% in Brazil and by 58.5% in the international market. In spite of a 10% drop in sales during the quarter compared to the same period the previous year, and a decline in Brazilian sales of 4.2%, the company’s net profit increased by 15%.
The company said it believed these results showed that there was lower demand for basic products, and that even the lower end of the market has been affected by the economic downturn, but said that, in its own case, sales of more expensive shoes had compensated for this.
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