Until recently, Brazil was always known as a producer of large volumes of cheap footwear, however, according to Rodrigo Souza, footwear project manager of the Brazilian Export and Investment Promotion Agency (APEX), the focus of production is set to move towards higher quality products and design.
Mr. Souza explained that factors such as the low exchange rate against the US dollar and increased competition from China have created this need for a change in focus.
As a result of this new strategy, exports actually fell 9% in terms of volume between January and September 2005, however, revenue actually rose 7% in US dollar terms compared with the same period of 2004. This is said to be a direct result of a 17% increase in the average price of footwear from $8.44 to $9.86.
Vivian Laube, marketing director of the Brazilian Association of Footwear Manufacturers (Abicalçados), said that the main target country for Brazilian shoe exports at the moment is Italy, one of the most famous countries in terms of the quality and design of its shoes. "Unlike China, Brazil will not be a global supplier of cheap footwear anymore," she added. It appears to be working as Brazil reported a100% increase in exports to Italy between 2003 and 2004.
Statistics show that Brazil is also diversifying its export markets. Mr. Souza pointed out that in the past Brazilian shoe exporters have largely depended on American imports but, as the US have gradually replaced Brazilian shoes with Chinese goods many Brazilian factories have been forced to close down. And this is why Brazil is now seeking to penetrate new markets. Brazilian shoes are currently exported to over 100 countries.
In order to consolidate the image of the country as a producer of quality shoes, APEX and Abicalçados are now investing in marketing projects such as participation in international fairs with the number of Brazilian exhibitors growing year-on-year. The Brazilian stand at Micam in March 2006, in Milan, Italy, will be twice as big as the one seen at the event in October 2005.
