So why Brazil for Apparel?

Today we received a presentation from Fernando Pimentel (ASIT Director), Carlos Eduardo (Abijaodi FIENG), Mauriio Borges (Apex and trade promotion), Rafael Carvone and Cristiano Korbes (Industria de Calcados) regarding the background history of why Brazil today is the 3^rd highest producer in the world for textiles importing over 9.5 billion items of apparel each year.

Before FashionCapital came to Brazil I had undertaken some research and knew that Brazil was one of the worlds leading footwear producers supplying large multi national conglomerates around the world but it’s not until you come to Brazil that you can truly appreciate the scale of their production here and also the advancement of their industry. Brazil is highly ranked in the international stakes – it is the 7^th largest country in the world in the production of apparel with the second largest dying producer for apparel, it is the third largest knitting producer in the world and has over 90 fashion schools – it has a clear policy of protecting its future and maintaining its ranking on the world arena

To safeguard this position the Government have invested heavily into the industry and various major trade bodies have been set up as shown in the structure below.

ORGAISATIONAL CHART STRUCUTRE

FIEMG

At the top of the organisational structure is FIEMG  This organisation is clearly the core BSO and is responsible for Economic affairs, environmental issues, Tribunals and legal, consultancy, capitalizing and financing, labour relations for the industry association relationships and international affairs. It’s a not for profit concern and represents 113 Trade Associations, has 11 regional centres, 64 SESI units, 120 SENAI units and operates wtih80,000 affiliated companies within the industry.

CIEMG

CIEMG is responsible for the integration of the industrial sectors to other production segments of the economy in the State of Minas Gerais. There is more information regarding the State below.

SESI

This organisation is responsible for the health and safety at work remit including the culture of the industry, social action, pricing issues for the country and also incorporates the sports and leisure industry too.

SENAI

Any issues regarding future training for the industry is the responsibility of SENAI – this includes apprenticeships, technical, industry updates and professional qualifications pertaining to the specific apparel industry.

IEL

Research and development with leading university with the industry is facilitated by IEL. They aim to provide the organisation of the productive sectors and the approach to knowledge centres on behalf of innovation for the entire industry.

CIN is another Business Support Organisation which is responsible for Business promotion such as trade missions and international trade shows, Business Development e.g. Expoforte Project, Business Intelligence, Qualifications and training, and international cooperation.

For any further direct information regarding the Business Support structures of Brazil you can email sde@fiemg.com.

Brazilian statistics for clothing and textiles.

Brazil is without doubt a unique country – it has 8.5 millions square kilometres –an enormous area occupying almost half (47%) of all the area of South America. It holds 20% of all the biodiversity and has the largest sweet water reserves in the world.  It holds the worlds 5^th largest population with 193 million people living across the country and is ethically diverse. It has the third largest mobile phone market in Latin America and the third largest in the world in the consumption of cosmetics. The country adopted the republican system of voting since 1899 and is one of the leading democracies in South America today – it’s economically and politically stable.

The Apparel sector is one of the key industries for Brazil employing a total of 1.65 million people in approximately 30,000 companies. If you include the indirect layout the number employed jumps to 4 million and generates a turnover of US$ 47 billion. Brazil is one of the worlds leading manufacturers of denim and knitted fabrics and its self sufficient in the reduction of cotton and has a world wide leading reputation for its advancement in chemical fibres and filaments. Large investment has taken place in the areas of ecological and socially responsible production of these goods and there is strong legislation in place to ensure that manufacturers are producing ethically.

Statistics

Annual Turnover of the Brazilian textile industry US$ 47 billion (growth of 4% in 2009 from 2008)

Total Value of Exports in the year 2009 US$1.85 billion

1.65 million employees of which 75% are female.

Clothing, textiles and footwear is the second most important industry in Brazil with regards to employment.

The second most important industry in terms of job creation. 30,000 companies form part of the textile industry

The sixth most important textile producer in the world.

The second most important producer of denim in the world

Brazilian textile industry accounts for 17.5% of the countries manufacturing industry and represents 3.5% of the total Brazilian production.

Minas Gerais – Background overview.

This is a huge state within Brazil where the majority of the apparel production takes place. It area is 586528 square kilometres and is bigger than France, Sweden Spain and even Japan. The population is over 20 million. One of the reasons for its importance is the strategic location it has – it is in the centre of the most developed region in Brazil and has the most extensive logistics system in terms of roads infrastructure and railways. It also has the Tancredo Neves International Airport located in the Belo Horizonte district.

Belo Horizonte is the state capital and is located at the junction of the major federal highways with easy access to the country’s biggest urban centres, seaports and a huge domestic market too for clothing and footwear.

Minas Gerais is responsible for nearly 1/3 of the electrical energy produced in Brazil and invests half of its public budget in health and education. It is also the largest producer of iron ore and the production of coffee, milk and dairy products.  It has excellent rich soil and vast water reserves supporting a diverse agricultural industry.

Within Brazil Minas Gerais has the third position of the gross domestic product and contributes to 12% of Brazilian textiles generating US $5.5bn sales. It has indirect investment of over US$1bn each year further strengthening the position of Minas Gerais within Brazilian economy. 18% of all the industry jobs are situated in the state which equates to 137,000 jobs.

	Number of Companies	Number of Employees
Textile	14,211	110,736
Footwear	2,590	25, 919

Source Registry of Employers Statistics 2007

Brazil is a thriving economy for the clothing, textile and footwear industry not only within South America but rightly takes its place within the world rankings. The strong commitment to ecology advancement within its fibre and garment/footwear development is at the very centre of its eths and is dominated by a strong network of powerful business support organisations that are there to safeguard its future. It has a wealth of expertise at all levels of sector development from education and learning to new enhancement of fibre filaments.

In the production of textiles it is already supplying major US markets, Chinese and European markets too but as it has so much internal demand from its growing population Brazil can continue to grow internally too – its Balance of trade figures are always in surplus position in 2009 there was a budget surplus of US$ 12.6bn reflecting high internal demand for nationally produced items.

Brazil has surpassed all expectations – it’s an amazing diverse country that can clearly cater for future – no wonder it will be hosting the world cup in 2014 and the Olympic Games in 2016 – I should book your flights now it’s bound to be spectacular.