The Brazilian footwear and component sectors are increasingly looking to the fast growing market of Russia for new sales opportunities.  Interest arises from the fact that the Russian economy has expanded by over 5% in the last three years. 

In 2002, for example, Russia bought $3.09 million worth of Brazilian shoes (405,926 pairs). In the first quarter of the current year, however, business with Russia had already reached 76.4% of that total, worth $2.36 million or 367,363 pairs, moving the country from 31st to 15th place in the ranking of Brazilian shoe buyers.

Russians only produce enough shoes to satisfy just 20% (some 300 million pairs) of domestic demand. The other 80% is imported from countries such as China, the Ukraine, Turkey, Germany and Italy.  Marlon Martins, export representative for both Calçados Pegada, of Dois Irmãos/RS and Calçados Picadilly, of Igrejinha/RS, says the sector must find out from Russian buyers what sort of styles they are looking for. "Can we sell them what we already produce or will it be necessary to develop special articles for them? This is one of the main issues currently facing the sector," he commented.

Brazilian leather and shoe component suppliers are also working towards greater penetration of this market. In 2002, they shipped $670,000 worth of mainly leather chemicals while in the first quarter of this year exports amounted to $150,000, mainly in the form of metallic components and accessories.  But these figures are expected to increase rapidly as the market for the component sector is seen as being vast. General trade with Russia is expected to extend beyond the various types of meat and sugar that currently account for the bulk of all exports.

“We have targeted 306 large Russian shoe producers, mainly leather shoe manufacturers," commented Ilse Guimarães, superintendent of Assintecal - Brazilian Association of Leather and Footwear Component Manufacturers. “We exchanged information with a Russian buyer and adapted some products to the needs of Russian producers and presented them to local companies at our Moscow meeting."

Another advantage that Brazilian shoe and component exporters have is the devaluation of the Rouble against the Euro which makes it difficult for Russian exporters to do business with Europe.  The last Brazilian trade mission to Russia took place in May 2003 when 54 representatives of manufaturing companies, trade associations and government organisations visited the country. Expectations are

sufficiently high that Assintecal is also planning to take part in Russian fairs.

This news item is brought to you by the World Leather editorial team. For magazine subscription details email: subs@worldtrades.co.uk

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