The e-commerce and Footwear Industry in Argentina and Brazil

The footwear industry in some countries of South America is moving in a boom of productivity and marketing, just in the Brazilian footwear industry there are 8,200 companies that produced 819 million pairs of shoes during the last year, and sales of 11 billion dollars in the same year, of which exports were made by a volume of 1,300 million dollars, positioning Brazil as the third largest producer of footwear in the world. 62.8 million. Being the main destination of these exports the U.S. with a purchase volume of 63 million pairs.

Ricky Sarkany ShoesIn the same way the footwear industry in Argentina has been growing every year its footwear production, achieving 190% in 10 years and plans to increase sales by 10% abroad for next year. Today footwear production in Argentina has reached record levels of 135 million pairs to supply the domestic market very efficiently and find niche markets for high quality exclusive footwear in markets like neighboring countries and Australia, Europe and the U.S. according to the Footwear Chamber of Argentina. 

Another relevant fact that we can mention is that currently only 16% footwear consumed in this country is imported according to the Ministry of Industry of Argentina. Ministry officials mentioned that protectionist measures for domestic footwear within the country, will strengthen the production and marketing of the domestic market and maintain growth in the volume of exports in the future.

This industry is one of the highest growth achieved in the industry of Argentina and enjoys the support at the government level, the Ministry of Industry with the business chambers designed policies to benefit the growth and creation of new ventures shoe manufacturing in this country, giving special attention to sports shoes, leisure, and high-end clothing. The raw material used in most high-end products is leather in a nearly 100% and other products derived components in the middle range as reconstituted leather. The Strategic Industrial Plan 2020 of Argentina, expects to reach a total production of 200 million pairs and exporting 50 million pairs, likewise generally creating 12,000 new jobs. During this year the consumption in this country reached 135 million pairs, of which 84% are produced domestically and 16% imported. 

Economic measures to discourage entry of footwear of other nations, made possible for the footwear companies in Argentina to supply the domestic market by 84% and unprecedent record number in recent years and as a result it has allowed the industry to attract new investment Global companies such as Nike, Converse, DC Shoes to supply the domestic market and exporting to countries in the region.

Likewise these measures gave local entrepreneurs the possibility for the emergence of new companies (small and medium) in the footwear industry. Argentinian footwear exports are particularly concentrated in the region bordering countries such as Uruguay, Paraguay, Bolivia, Chile and Brazil. Argentina's footwear industry is comprised of 1,000 factories especially SMEs (small and medium enterprises) that have 70,000 people working between direct and indirect jobs.

E-commerce in the Footwear Industry

Due to the production and marketing potential that exists in Argentina and Brazil thus also the wide range of brands, has led to several shoe shopping sites online, such as Netshoes, Dafiti, and Fotter which operate in countries like Colombia, Mexico, Argentina , Chile and Brazil.

 

NetshoesNetshoes is an online footwear store that was founded in Brazil and today has operations in Argentina, Brazil and Mexico. This company also manages the official store of Brazilian soccer teams like Corinthians of São Paulo, Palmeiras, Santos, Cruzeiro and Atlético-PR Vasco. and responsible for the administration of the online stores of the brands PUMA, Havaianas, Globe Esporte, Esportes Saraiva, Timberland, Topper. Netshoes sells global brands in Brazil 16 brands, 27 brands of Argentina, Mexico 24 brands of clothing and footwear. Example Nike Adidas New Balance Reebok Puma.

 

DafitiDafiti is an online retailer originated in Brazil that operates in 5 countries of America. Sell footwear, clothing, bags and accessories, selling 27 brands in Argentina, 28 in Brazil, 60 brands in Chile, 30 in Colombia and 52 in Mexico.

 

 

FotterFotter originated with Argentine entrepreneurs, has a distribution coverage in Argentina. It sells 82 brands, 90% of Argentine origin, 10% of foreign origin. It aims to spread the Argentine footwear design selecting suppliers of high quality and innovation.

 

 

Different to other cases of e-commerce successes like ASOS.COM, where sites are unified and the stock is common to all and only the difference is language and currency. On these mentioned stores the operation, delivery and payment are independent and administrated by each country where they sell, because the companies do not have international shipping yet.

 

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