Crisis Spells Success Overseas for Brazil Fashion Industry

Brazilian fashion A program for the generation of export incentives known as Texbrasil, developed by the Brazilian Textile and Apparel Industry Association (Abit) in partnership with the Brazilian Export and Investment Promotion Agency (Apex), has just celebrated its ninth anniversary and is choosing potential markets which, in the second half of 2009, should be defined as priority in the search for new clients.

Among them are the Arab countries in the Middle East as well as some countries in Asia and Africa. According to the director at Texbrasil, Rafael Cervoni Netto, a committee formed of 30 people in the entire national textile chain is defining which will be the target countries.

"We believe that up to August 19, we may have our strategic planning consolidated," said Netto, in a press meeting yesterday, in São Paulo.

"Some countries in the Middle East will surely be in the list, as they have already been defined as potential markets for the Brazilian fashion market," said Maurí­cio Borges, the business director at Apex.

"With the prospecting of these new markets, we will be able to bring to Brazilian companies diversified demands, expanding possibilities and generating a greater business volume," added Netto.

According to figures presented by the Abit, between 2000 and 2008, Brazilian companies that are exporters in the textile sector registered a reduction of 22% in shipments.

"The companies that are part of the project, in turn, grew 42%. This result shows the enormous success of the project," said the president at Abit, Aguinaldo Diniz Filho.

"This is a good moment for the Brazilian fashion industry. Times of crisis may, indeed, be an opportunity for the world to turn its eyes to production in Brazil," added Diniz Filho.

Another factor that confirmed the great potential to be explored by Brazil in the Arab market was the promotion of a global study by consultancy company A.T. Kearney South America, which analyses the Development Index of Global Retail in emerging markets.

The study, presented yesterday at the Abit offices, during a talk by A.T. Kearney executive Alexandre Munhoz, shows that in terms of market attractiveness, the United Arab Emirates and Saudi Arabia are in the fourth and fifth places, respectively.

Brazil also seems well placed, in the eight place in market attractiveness. Apart from that, the ranking of growth of the retail market for the second year running has also been identified. "In this case, the items considered were the size of the market and the perspectives for per-capita expenses with garments," said Munhoz.

"Brazil presents great potential for attraction of foreign investment in the retail sector, which should result in a more dynamic local garment and fashion industry," said Munhoz.

Saudi Arabia is in the ninth place among the emerging markets in the ranking of growth of the retail market, showing further opportunities for Brazilian companies in the country.

The Texbrasil objective is to prepare companies in the textile and garment sector that may be interested in exporting. Since its release, in 2000, over 1,400 companies have participated in the program, which includes from talks for generation of awareness in foreign trade, clinics for product modification, creative workshops, consultancy in foreign trade, fairs and national events for promotion of the image of the Brazilian fashion industry.

In 2009, the aim of the program is to expand actions for training of companies before the start of exports. For this, apart from the clinic for product modification, the program started offering, in May this year, consultancy in foreign trade management, promoted by a consultant at each company.

Anba

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