In the first quarter (Q1) this year, 38.44 million pairs of footwear were shipped abroad by Brazil, generating $328.44 million. Records are 5.7 per cent lower in volume and 2.4 per cent higher in values compared to the same period last year, according to data compiled by the Brazilian Footwear Industries Association (Abicalçados).

The country’s footwear exports totalled 11.67 million pairs in March and were worth $108.66 million—decreases both in volume (minus 11.4 per cent) and in values (minus 2.6 per cent) compared to March 2022.

Footwear exports to the United States, the main foreign destination for such items, dropped.

The main destination for Brazilian footwear exports in Q1 2023 was the United States. During the quarter, North Americans imported 2.9 million yellow-green pairs, which generated $56.87 million—decreases in both volume (minus 51.5 per cent) and revenue (minus 35.9 per cent) compared to the same period last year.

The second destination of Q1 was Argentina, which received 3.23 million pairs for $55.32 million—up both in volume (1.4 per cent) and revenue (52.8 per cent) compared to the same period in 2022.

March already reflects the scenario of international economic slowdown, associated with high inflation rates, which compromises the growth of sectors producing non-essential consumer goods, noted Abicalçados chief executive officer Haroldo Ferreira.

“At the same time, we noticed a tightening of international competition, as China resumes its positioning after the restrictions of the COVID Zero policy, in addition to the drop in the cost of international freight, today almost 80 per cent below the same month of the previous year”, he said in a press note.

Due to difficulties arising out of increase in freight costs last year, countries geographically close to Brazil sought supply there to the detriment of Asia, he said.

“As a result of the international slowdown and the growth in the level of inventories in the market, total footwear imports from the United States have already suffered a reduction of 21.5 per cent (in volume), which has a direct impact on Brazilian shipments,” Ferreira noted.

With significant growth and surpassing France in third position, Spain showed up in the ranking of the main destinations for Brazilian footwear. In the first quarter, 5.75 million pairs were shipped there, generating $17.8 million—up by 265.6 per cent and 272.2 per cent respectively compared to the same period last year.

The main Brazilian exporter of footwear continues to be the Rio Grande do Sul state. The second highest exporter of the quarter was Ceará.

Footwear imports in Brazil, unlike exports, continue to trend upwards. In Q1 this year, 9.9 million pairs entered Brazil for $111.96 million—high both in volume (11.4 per cent) and revenue (27.4 per cent) compared to Q1 2022.

The main origins remain Asian countries. The first of these is China, which exported to Brazil, in the three months, 5.64 million pairs, for which $16.22 million were paid—an increase of 12.3 per cent in volume and a drop of 2 per cent in revenue in relation to Q1 2022.

In the second position was Vietnam. In Q1 this year, 2.4 million Vietnamese pairs entered Brazil for $55.58 million—up both in volume (21.8 per cent) and revenue (43.6 per cent) compared to Q1 2022.

Fibre2Fashion News Desk (DS)

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