New configuration of the international footwear market and the impact on the Gaucho footwear industry

Abstract

The displacement of footwear industry plants, observed in the last 30 years, driven by the need to adapt to the competitive requirements of this industry, mainly abundant and cheap labor and natural resources existence, are building a new global distribution of footwear production, in which China takes the role of global provider of shoes. In the current distribution, traditional manufacturers are losing traditional markets and seeking to improve the participation in niche markets, where the key attributes are quality, design and brand. The obstacles are even greater for the Gauchos manufacturers: the association between the Chinese competition and the national currency appreciation leads to shrinkage of markets and drop in foreign sales. To compensate this effect, the local manufacturers are directing their shoes production to segments of greater added value and thus higher prices, alongside the adoption of diversifying markets and investment in own-brand marketing strategies. Key words: Gaucho footwear industry; Brazilian exports of shoes; international shoe market.