World Cup And Olympic Games Bring Up Brazil Sportswear Craze

Instituto de Estudos e Marketing Industrial-IEMI, Brazil, released the survey data showing the movement of the country.

There are about 3200 manufacturers and distributors, mainly in 10 states, such as St Paul, Santa Lena, South Dahe, Parana and Rio, where SMEs account for about 91% of the total, employing about 155 thousand employees. (2011) the production of sports wear in 2010 is about 788 million, up 0.4% from 2010. Last year, the consumption of sportswear reached 812 million, and the proportion of imported goods was estimated to be 3.12%.

The output of this year (2012) is estimated to be 4% higher than that of last year, and consumption will grow by 5%.

In terms of amount, the output of sportswear in Brazil last year was about $5 billion 400 million.

Brazil textile and garment industry has increased the cost of operation because of the continuous overvaluation of the exchange rate of the Palestinian dollar to the US dollar and the heavy taxes and so on. With the increase in imports, the industry has increased the number of layoffs because of the severe challenges of survival. For example, Amerigo (Americana) is a famous textile city in Brazil. There are 1600 companies in the region, most of which are small and medium-sized enterprises, employing about 40 thousand employees. Last year, the number of layoffs in the city reached 2100, accounting for 17.5% of the 12 thousand layoffs in the textile and clothing industry of Brazil last year, and a large number of layoffs were related to the 15% reduction in the industry's output last year. The number of employees in Brazil's textile and garment industry is up to 15%.

According to the data released by the Ministry of Commerce and industry of Brazil, the foreign trade of the textile and garment industry in 2005 was still a surplus of 292 million US dollars. After that, the trade deficit increased year by year, reaching 4 billion 749 million US dollars last year. If the situation has not improved, the deficit in foreign trade will increase to 6 billion US dollars this year.

For Brazil

As well as the difficulties in the garment industry, the government has taken measures to strengthen the inspection of imported products, raise the import tax rate to 35%, and reduce the industrial product tax rate to 0%. However, let us wait and see whether these measures can ease the operational difficulties of Brazil's textile and garment industry.

Although the textile and garment industry in Brazil is facing difficulties in operation, Brazil's high sportswear factor has made many garments factories in the country list sports apparel as a business intensive project. For example, Lupo launched its first sportswear in 2010, with an estimated annual sales volume of 300 thousand pieces, resulting in 500 thousand sales and more than 1 million sales last year. The sales of sportswear this year are estimated to be 60% higher than that of last year.

In addition, Brazil sports apparel market launched three brands of Mizuno, Topper and Rainha Alpargatas, which sold a total of 2 million sports apparel in 2010. Last year, sales grew by more than two figures over 2010. The company estimates that the Brazil sports apparel market has potential for development in the context of the idea of large scale competition and the importance of health and beauty for the public. It is estimated that the annual sales volume of sports apparel in Brazil will be increased by 9% over the average clothing sales before the 2014 World Cup and 2016 Olympic Games.

At present, functional sports apparel can be found in retail stores such as Track & Field and Centauro in Brazil, but the proportion of such sportswear on the market is not very high, because functional sports apparel sells far more expensive than traditional sports knitted garments made by Brazil. According to the operator, the functional textile technology in Brazil has yet to be strengthened and upgraded. Most of these garments are sold on the market after they have been processed or imported from China and Taiwan.

IEMI released data last year.

The value of imported sportswear is US $124 million. Among the knitted sportswear, skiing and swimsuit, the Ministry of Commerce and industry of Brazil announced that the value of this product was $9 million 90 thousand from 1 to May this year, 12 million 390 thousand US dollars last year, and 8 million 950 thousand US dollars in 2010. Mainland China, Indonesia and Vietnam are the main sources of supply.

In terms of non knitting competition, ski and swimsuit, the Ministry of Commerce and industry of Brazil announced that the import value of the product amounted to $10 million 660 thousand in 2010, up from $17 million 730 thousand last year, compared with $10 million 410 thousand from 1 to May this year.

Mainland China, Vietnam and India are the main sources of supply.

IEMI released data showing that the total amount of export knitted and non knitting competition, ski wear and swimsuit in Brazil last year amounted to $17 million 810 thousand, compared to $17 million 310 thousand in 2010 and $17 million in 2009.

Brazil will host the world cup and Olympic Games in 2014 and 2016. The arrival of the two sports events is bound to cause Brazil people to buy sportswear.