Swapping volume for value
The Brazilian footwear industry’s move towards producing higher-end footwear in order to maintain its position in the global market and cope with the rising value of the real appears to be paying off, to some extent at least, if the latest export figures are anything to go by.
According to the final 2007 statistics released by the country’s Ministry of Development, Industry and Commerce, although exports fell 1.9% from 180.4 million pairs to 177 million pairs in terms of volume, the revenue generated from exported footwear increased 2.6% from 2006 to reach to $1.9 billion.
Commenting on the results, Milton Cardoso, president of the Brazilian Association of Footwear Manufacturers (Abicalçados), said the numbers were on a par with 2006 and were the result of manufacturers’ efforts to stay afloat through reducing profit margins , however, he added that in spite of these measures employment in sector had still fallen over 9% in 2007.
2007 saw the average price per pair of exported shoes rise by 4.5% from $10.33 in 2006 to $10.88. The USA remained the main export market despite a 25% drop in volume to 49 million pairs and a 16% fall in revenue to $717.4 million, while gains were recorded in the UK, Argentina and Italy.
