updated Mar/2009  

RANKING

The largest companies in the Textile and also conquered the market leaders in sales, according to the annual Best and Biggest Examination 2008 are Coteminas, São Paulo Alpargatas, Grendene, Vicuña, Brazil Santos, Azalea-NE, Guararapes Vulcabrás-NE , Hering and Azalea.

MARKET ENVIRONMENT

 

Until the first half of 2008, the industry felt the appreciation of the real against the dollar, the difficulties to export and compete with imports from low cost China, mainly responsible for a deficit of $ 644 million in the sector's trade balance in 2007.

Today, despite the favorable exchange rate, the sector Brazilian textile and apparel closed the first months of 2009 with a deficit of $ 168.7 million in its trade balance, excluding cotton fiber. The result is due to the amount of U.S. $ 245 million in imports from $ 76.3 million in exports. If you include the cotton fibers, the deficit fell to $ 108.8 million. The results impressed even the business, reaching over 50% fall in some sectors. Considered one of the "flagships" of Brazilian exports, the sector of bed and bath, suffered a decrease of 52%, the clothing, down 45.8%.

The explanation for the crisis in the sector is the sharp drop in exports that comes from the sharp downturn of the markets in crisis and the protectionist measures of governments in relation to imports of foreign products to protect their domestic markets in times of global crisis. The decline in exports is also associated with decrease in imports from the U.S. and Argentina, traditional markets Brazilian textile sector. Were $ 25.8 million in products that the Brazilian textile industry stopped exporting, only in January this year, about 56.4% less than in the month of December/08. Protectionist measures in Argentina decreased by 53.2% of exports, which account for $ 20.3 million less in revenue from this country, compared to January 2008.

Imports also fell in the first months of 2009 compared to the same period of 2008 - a reduction of 22.6% in value terms and 35.14% in volume when including cotton fibers. Excluding this input, imports have falling 22.14% in value terms and 34.37% in volume. Despite the overall decline, some imported products grew, including cotton (+ 57.78%), filament fabrics (+ 14.31%) and apparel (+ 53.48%). The increase in imports of clothing in 53.4%, even though the crisis is the result of contracts closed six months ago. Therefore, purchases made ​​before the crisis, with products shipped in November and clear through customs in Brazil in January. ABIT - Brazilian Textile and confection believes that growth should be decreased in the coming months.

 

STRATEGY OF THE BEST COMPANY SECTOR

 

The Lupo, maker of half the country was considered the best company in the textile sector by Best and Biggest Annual Examination 2008.

The company is familiar with headquarters in Araraquara, appeared in 1921 and in 1993 its management was passed to one of the heirs, the businesswoman Liliana Aufiero, who promoted the modernization of the company, restructured a structure of 300 to 1,400 employees, has invested in technologies modern which allowed the company to continually renew their products.

One strategy was the champion Lupo license to manufacture higher-value items, brands like Zoomp, Forum, Calvin Klein and Cavalera; sporting goods for Nike, Reebok and Speedo, and items licensed with characters from Disney and Warner Bros.

In 2007, Lupo earned $ 191 million, earned $ 14 million and its result was less dependent on the sale of stockings and pantyhose (now represent 60% of sales, has accounted for 95%).

Other strategies that deserve consideration are the diversification of product line - now more than 12,000 items and the opening points of sale to strengthen its brand identity. Today there are 141 points of sale in major malls in the country, and more 30,000 kiosks and shop for internet sales. The next step is to open stores to body wear, highlighting parts of the line Lipo Lupo, who promise to give new shape to the female form.

 

Source: Review Best and Biggest 2008, Abit, www.abit.org.br in Mar/2009.