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Article: LOOKING FOR LOW COST PROVIDER.
- Article from:
- Footwear News
- Article date:
- February 8, 1999
- Author:
CopyrightCOPYRIGHT 1999 Conde Nast Publications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Brazilian footwear exporters have more than just the devaluation and a hopefully strong euro working in their favor. To maintain their competitive edge, more footwear manufacturers have been moving part of their production to Brazil's northeastern Ceara state and, to a lesser extent, northeastern Bahia state.
Both states offer lower labor costs, exemptions from paying state taxes, and ports closer to the U.S. market. It takes seven days to ship shoes from Ceara to the United States, as opposed to 17 to 20 days from southern Rio Grande do Sul state, the home of women's footwear production.
Because of such advantages, 5 percent to 6 percent of the ...