BRASÍLIA: Brazilian exports to the Arab country totaled US$ 15.7 million from January to August. The president of the sector’s association says that sales are “an outlier”, since the sector’s abroad sales is declining.
Brazilian footwear exports to the United Arab Emirates increased 21.7% in revenues from January to August of this year, in contrast to the 12.3% decline in total international sales of the product in the period. Footwear industries registered revenues of US$ 15.73 million with exports to the UAE and shipped 1.3 million pairs. In volume, the increase was smaller, with 17.7%, in the same comparison, according to data from the Brazilian Footwear Industry Association (Abicalçados).
“Exports to the United Arab Emirates, since the beginning of the year, have been an outlier. The negative results in exports don’t show up in that market for two reasons: it’s a market that presents a great demand for Brazilian footwear, especially for products with greater added value – the average price of the product exported to the UAE stands around US$ 17, while the general average is US$ 8”, said Abicalçados’ CEO Heitor Klein via email to ANBA.
He also points out the impact of the Brazilian Footwear program, which promotes Brazilian footwear abroad, on the UAE market. “The second point that needs to be emphasized is the market insertion operation that is been carried out within Brazilian Footwear, Abicalçados’ branch for the global market and that has its focus directed to this country as one of the target markets for the biennium 2015/2016. These are works done for closer relations with local large retail chains and that has proven effective not only with insertion but also in the consolidation of brands in the country”, he said.
A ranking released by Abicalçados shows that the UAE stands at the 12th position of largest buyers of footwear from Brazil. At the top of the list is the United States, followed by Argentina, France, Bolivia, Paraguay, Colombia, Chile, Angola, Australia, Peru and United Kingdom. After the UAE, at the 13th place, comes Saudi Arabia. They are the Arab countries listed in the top 20 ranking. Following the Saudis come Ecuador, Philippines and Russia.
Saudi Arabia, however, reduced slightly its purchases from January to August of this year. The Middle East country spent almost the same amount than the UAE in footwear, US$ 15.71 million, but this value means a decline of 0.8% over the same period of 2014. In volume, the decline was greater, of 2.7%. The Saudis bought 1.5 million pairs of footwear, less than the UAE. This means that the Saudis import less expensive footwear than the UAE.
“Saudi Arabia has been maintaining stability in imports of Brazilian footwear, which is positive within the context of widespread decline of exports. It’s an important market and that, certainly, reaps benefits of the work done in the UAE, a country that operates as a crucial gateway for the Arab market”, said Klein.
Overall, Brazilian footwear exports declined 12.3% year-to-August and totaled US$ 613 million. The decline in volume shipped was of 9% with 74.5 million pairs. In August alone, the decline in international sales by the sector was greater with 23.5% over the same month of 2014, with revenues of US$ 68.9 million. Volume dropped 10.2% to 8.9 million pairs.