The Brazilian Footwear Industry

   In the last four decades, Brazil has played a relevant role in the Footwear History. The largest country in Latin America is one of the most outstanding manufacturers of leather articles, holding the third position in the ranking of the largest world producers, and having as well important participation in the share of women’s shoes, which combine quality and accessible prices. The shipments abroad have been growing yearly, to over a hundred countries.

   Although the concentration of large size companies is located in the state of Rio Grande do Sul, the Brazilian footwear production is gradually being distributed to other centers, located in the Southeast and Northeast regions of the country, being highlighted the interior of the state of São Paulo (cities of Jaú, Franca and Birigui), as well as the emerging states such as Ceará and Bahia. There is also growth in the footwear production in the state of Santa Catarina (region of São João Batista), the neighboring state of Rio Grande do Sul, and in Minas Gerais (region of Nova Serrana).

   Nowadays, the Brazilian Footwear park presents over seven thousand industries, which produce approximately 755 million pairs/year, 212 million being destined to exports. The sector is among those generating more jobs in the country. In 2004, around 300 thousand workers operated directly in the industry.

   The large variety of raw material, machinery, and component suppliers, allied to the products technology and innovation, makes the Brazilian footwear sector one of the most important in the world. There are over 300 component industries installed in Brazil, more than 400 companies specializing in tanning and leather finishing, processing yearly over 300 million hides, and around a hundred machinery and equipment factories.

   It is with this highly capacitated structure that the footwear manufacturers perform the production of Brazilian footwear, presently exported to over 130 countries, with modern concepts of production administration and manufacture management, such as just in time, and other international quality processes. It is a highly specialized industry in every kind of shoes: women’s, men’s, and children’s, besides special shoes, such as orthopedic and work safety shoes.

   Exports destination – The Brazilian footwear export sector structure is one of the most modern in the world. In 2004, 212 million pairs were exported. The marketing strategy involves the presence of Brazilian entrepreneurs in the most important international fairs, such as GDS, in Germany, MICAN, in Italy, Moss Shoes, in Russia, and the Las Vegas Show, in the United States. Latin America has been the target of different initiatives, such as the promotion of show rooms in the major consuming countries, as Argentina, Venezuela, Chile and Colombia.

   Due to the speed in obtaining information about the fashion world trends, added to the ease to obtain raw materials to develop the adequate modeling for the buying market, and afterwards the manufacture in series, Brazilian footwear producers have ample conditions to answer to the demand of importers of the most different profiles. Examples are the shoes manufactured for important brands, and North American and European stores, which are already used to see made in Brazil printed on their footwear.

   The United States is the principal buyer of Brazilian shoes, with 70% of the exported total. To increase the sales percentage in other countries, particularly of Latin America and the Middle East, the sector has been developing a project so that more companies shall be part of the commercial balance, principally those of small and medium size.

   The production diversification is another competitive factor, as the adaptation to the most different collections is very fast. This enables Brazil to produce all kinds of footwear to meet the needs of both the domestic and the foreign markets.