Rio Grande do Sul’s shoe share is down
20/12/2012
Executive director, Heitor Klein, said in a recent interview with local business media that Brazil’s north-east was taking a large share of footwear production, but pointed out that in many cases, the businesses that had increased footwear production in the north-east were, in many cases, originally from Rio Grande do Sul.
He also pointed out that Rio Grande do Sul was at a disadvantage compared to rival states such as Ceará because its factories are thousands of kilometres further away from important markets such as Europe and the US, making logistics costs more expensive.
In 2005, companies in Rio Grande do Sul contributed 69.3% of Brazil’s total footwear exports. By the end of 2012, this figure had fallen to 34.8%.
In the first 11 months of this year, Rio Grande do Sul brought in $346.1 million in export earnings from footwear, a decline of 33.7% compared to the same months in 2011. The rest of Brazil also experienced a decrease in footwear export earnings, but at the lower level of 15.4%, with shoe shipments reaching a value of $994.7 million.
However, a continued focus on making shoes with leather uppers means the average price per pair shoes made in Rio Grande do Sul can command in export markets is still the highest in Brazil at $25.09. This compares with an average of $20.53 per pair in São Paulo $15.65 per pair in Bahia.
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