Brazilian Sportswear: Huge Growth Potential In The Industry Market

Although Brazil Textile and tailoring It is facing business difficulties, but the enthusiasm of Brazilian consumers for sportswear has revitalized the country's clothing manufacturers.

According to the estimation of the Brazilian Industrial Marketing and Research Association (IEMI), this year's Brazilian sportswear production is expected to increase by 4% over last year, reaching 820 million pieces, and the consumption is expected to increase by 5%, reaching 850 million pieces. With the approaching of the 2014 World Cup and the 2016 Olympic Games, the purchase of sportswear by Brazilians will become more and more popular.

In recent years, the Brazilian textile and garment industry has generally increased its operating costs due to the continuous overvaluation of the exchange rate between the Brazilian dollar and the US dollar and the heavy tax burden. In addition, the increase of imported products has forced the industry to increase the number of layoffs due to severe survival challenges. Americana, Sao Paulo, is a famous textile city in Brazil. There are 1600 local companies, most of which are small and medium-sized enterprises, employing about 40000 employees. Last year, the number of layoffs in this city reached 2100, accounting for 17.5% of the 12000 layoffs in Brazil's textile and garment industry.

Compared with the macro situation of industrial downturn, Brazil's domestic Sportswear The industry developed steadily. Driven by such factors as consumption driven by broadcast of large-scale competitions and people's increasing emphasis on health and sports, the Brazilian sportswear market has shown a steady growth. According to the survey data released by IEMI, there are about 3200 sportswear manufacturers and distributors in the country, mainly in 10 states such as Sao Paulo, Santa Catarina, Nandahe, Parana and Rio. Among them, small and medium-sized enterprises account for about 91% of the total and employ about 155000 people. In 2011, the output of sportswear in the country was about 788 million pieces, an increase of 0.4% over 2010; The domestic consumption of sportswear reached 810 million pieces, of which the proportion of imported goods is estimated to be about 3.12%. In terms of amount, the output value of Brazilian sportswear last year was about 5.4 billion dollars.

Seeing the growth potential of the sportswear market, many Brazilian ready to wear enterprises have also begun to increase their investment in sportswear. Lupo launched sportswear for the first time in 2010. The company originally expected annual sales of 300000 pieces, but the actual sales reached 500000 pieces. Last year, the sales exceeded 1 million pieces. The company estimates that the sales of sportswear this year will increase by 60% compared with last year. In addition, Alpargatas launched Mizuno, Topper and Rainha brands in the Brazilian sportswear market. In 2010, the sales volume of sportswear totaled 2 million pieces. Last year, the sales volume increased by more than double digits compared with 2010. The company estimates that the annual sales volume of Brazilian sportswear before the 2014 World Cup and the 2016 Olympic Games is expected to be comparable to the average Clothing sales The volume increased by 9%.

At present, there is a gap in the production of functional sportswear in Brazil. As Brazil's production capacity of functional textiles still needs to be strengthened and improved, most of these clothes are imported from mainland China and Taiwan of China, then processed and sold on the market. Therefore, the price of functional sportswear is more expensive than traditional knitted sportswear. IEMI data shows that the import volume of Brazilian sportswear in 2011 was 124 million dollars, The import volume of knitted competition clothing, skiing and swimwear products was 12.39 million US dollars. From January to May this year, the import volume was US $9.09 million, with mainland China, Indonesia and Vietnam as the main suppliers. According to the data, last year Brazil exported a total of 17.81 million dollars of knitted and non knitted race suits, ski suits and swimwear, 17.31 million dollars in 2010 and 17 million dollars in 2009.