The Brazilian textile industry has huge market potential. Brazil’s 95 million middle-class people’s pursuit of fashion and lifestyle has created a high-level and diversified demand for textiles and clothing in the local market. It is a typical consumption-driven market. With the approach of the 2014 World Cup and the hosting of large-scale international events such as the 2016 Olympic Games, a large number of tourists will be brought to the local area, which will also bring rare opportunities to export companies that want to explore the Brazilian market.
There are business opportunities when events gather together
Brazil will host the World Cup in June this year, and the 31st Summer Olympics in 2016 will also be held in Rio de Janeiro, Brazil. These two events will further stimulate demand in the Brazilian market. It is understood that more than 600,000 foreign tourists will enter Brazil during the World Cup. Recently, a survey called “World Cup and Consumption Habits” conducted interviews with 1,000 people in 70 cities in Brazil. Among the respondents who said they want to change their consumption habits, 51% said they would buy clothes or World Cup-related products. It can be seen that the hosting of the World Cup has added another fire to the Brazilian clothing consumption market.
Although it is difficult for the national football team to appear in the World Cup, there is still a lot of “Made in China” in the World Cup. 90% of the vuvuzelas used in the 2010 World Cup in South Africa were produced in China.
Yiwu Wensi Knitting Co., Ltd. is a knitting company specializing in the production of scarves and hats for football fans. It has been producing knitted World Cup-related products since 2005. According to the company’s general manager Wu Pengxu, orders related to the Brazil World Cup generally start operations 6 to 7 months in advance. As early as the first half of 2013, the company has begun preparations for design and plate making. The end of the year is the busiest time for the company. This year, the company won orders for more than 400,000 fan scarves for the World Cup in Brazil. There are thousands of scarf styles, and there are styles for teams in various countries, but the Brazilian team accounts for about 20%. The corresponding matching hats and gloves involve more than a dozen styles. This type of product is generally based on knitted jacquard, and there are more than a dozen styles with only the Brazilian logo. The ex-factory price of fans’ scarves is generally around US$2 to US$3. In Brazil, the general retail price is around 4 to 5 US dollars. The ex-factory price of hats is generally around 5 yuan.
Just last month, Wu Pengxu’s last batch of World Cup product orders had all been shipped and were on their way to Brazil. Wu Pengxu said: “Judging from the total purchase volume of this year’s orders, we have reduced the order volume compared with the last World Cup in South Africa. During the 2010 World Cup in South Africa, the order volume for scarves was around 700,000 pieces. With the increase in domestic raw material prices, , the increase in labor costs, and Brazil’s tropical climate factors are all factors that affect the decline in order volume. But we are still confident in Brazil’s sports consumer market. Because next, we will usher in the hosting of the 2016 Olympic Games. We Most of the cooperative purchasers are old customers. After the company receives the order, the production cycle is usually about 50 to 60 days, and then the goods are shipped by air from Shanghai or by sea from Ningbo.”
The consumer market has potential
The hosting of various sports events has brought more opportunities to Brazil’s entire apparel consumer market. Because Brazil has a large population, it has a correspondingly large consumer market. In recent years, Brazil’s textile consumption has tended to diversify. Different levels of consumption levels and diverse consumption habits have created a huge demand for clothing and footwear products in Brazil. Because Brazil is located in a tropical area, textiles made from natural fibers such as cotton, linen, and silk have always been favored. Home textiles made of pure cotton, pure linen, or cotton and linen blends have been a household necessity for Brazilian residents for many years. In Brazil, pure cotton shirts are the largest consumer of all textiles. Brazilian adults consume an average of 4.2 pure cotton shirts, 5.3 pure cotton underwear, and 3.8 pure cotton T-shirts every year. In addition, there is also a rigid demand for sportswear such as sportswear among Brazilian teenagers. Therefore, for textile and clothing export companies, the Brazilian market undoubtedly has good market prospects.
Mr. Zhao, a garment export trader from Zhejiang, has been making export orders for the South American market since 2005. According to him, his business in South America is generally dominated by old customers. Regarding the style and quality requirements of clothing, Mr. Zhao said: “The order quality and price requirements in the Brazilian market are relatively low, and they focus on colorful styles. Customers generally With the designer’s samples, he went to Zhejiang to look for suppliers of OEM processing and production. His regular customers usually place orders for about 50 to 80 styles each time, and the order quantity is generally 2,000 pieces per style. Ready-made clothing exported to Brazil, retail The price is at least 30% higher than the domestic ex-factory price.”
Many textile companies in Shishi City, Fujian Province, also believe that T-shirts, shirts, casual men’s clothing, sweatshirts and other products are very suitable for Brazil’s market demand after market inspections. Importantly, through exporting products to Brazil, we can reach markets throughout South America such as Argentina and Uruguay.
There is room for industry complementarity
The Brazilian state of Sao Paulo is Brazil’s financial and trade center, equivalent to Shanghai’s status as China’s financial center. Many domestic companies also often go to Sao Paulo to participate in various exhibitions and seek new customer sources. In order to promote China-Pakistan bilateral textile and apparel trade, China…The Textile Branch of the Council for the Promotion of International Trade and the China Chamber of Commerce for Import and Export of Textiles held the “First GOTEX International Textile and Apparel Procurement Exhibition in Sao Paulo, Brazil” in October 2013, providing a trade and communication platform for companies to gain a close understanding of the Brazilian market. Chen Hang, assistant manager of Zhejiang Textile Import and Export Group Co., Ltd., believes that judging from on-site exhibition participation, Brazil is an emerging market, and my country’s fabrics, home textiles, clothing and other products have certain markets in Brazil. In recent years, China’s textile and apparel industry has a huge size, complete industrial chain, strong product development capabilities and increasingly international marketing concepts, and has the advantage of connecting with Brazil and other Central and South American countries and markets in the supply chain. With complementary conditions, companies are very enthusiastic about exploring the Brazilian market and are looking for business opportunities in Brazil through various channels and approaches. As the costs of various domestic production factors increase, more and more companies are turning to Brazil as a transit point to expand overseas markets. By exporting the fabrics to Brazil, the garments will be OEM processed and produced locally, and then sold to the European and American markets. “Unfortunately, this is our first time to participate in the exhibition and we are not familiar with the Brazilian market environment and do not understand the use of Portuguese as the communication language in Brazil. The English used by foreign trade personnel to communicate with foreign businessmen does not work locally. If we had made more preparations in advance, , maybe there will be more gains.” Chen Hang said.
