Footwear in Latin America

Economic and political volatility undermine value growth

Despite much economic and political volatility in Argentina and particularly Venezuela coupled with a struggling Brazilian economy, footwear in Latin America registered a positive CAGR of 2% over 2011-2016 thanks to stable and healthy value growth in Mexico. Also Chile and Colombia contributed positively to footwear value growth in Latin America.

Mexico overtakes Brazil as the region’s largest footwear market

Brazilian footwear sales collapsed in line with commodity prices, upon which the economy has been highly reliant, posting double-digit declines in both 2015 and 2016. Consequently, Mexico has overtaken Brazil as the region’s largest footwear market on the back of strong stable footwear sales.

Sneakers in high demand across Latin America

Sports footwear accounted for 52% of absolute footwear value growth and has also outgrown footwear with a 2% CAGR over 2011-2016. Sneakers have become fashionable and a mainstay in Latin Americans’ daily lives thanks to the health and wellness and athleisure trends.

Internet retailing remains largely undeveloped

Internet retailing has grown quickly over the past five years, however from a low base and in 2016 still only accounts for 5% of value sales. Brazil remains the only country with well-developed online sales, while slow internet speeds and poor credit card penetration hamper development elsewhere in the region.

A moderately positive outlook hinges on economic performance

The outlook for footwear in Latin America is positive with high growth expected in Argentina, Mexico and Colombia. However, the forecast remains uncertain and will hinge on economic and political stability. Sports footwear is also expected to continue to outperform footwear in most countries.