Sportswear in Brazil

PROSPECTS

Brazil’s slow economic recovery leads to a weak performance

Sports footwear is a category with great potential in Brazil, since many Brazilians are concerned about their physical appearance, and dedicate time to regular exercise. However, with only gradual recovery from one of the worst economic recessions in recent years, in 2018 some expenses were still being postponed and lost out to basic needs such as children’s schooling and the household’s general wellbeing.

Major brands announce more investment in local production, reducing prices

Due to the complexity of the tax system, rising energy costs, a very problematic logistics structure and a fluctuating currency exchange rate, Brazil has high prices for international brands. For these reasons, important major players in sports footwear are planning to increase their local production and protect themselves from some of these risky variables.

Athleisure continues to influence sales

Athleisure (items suitable for exercise and everyday wear) and activewear continue to influence sales of sportswear globally, and have also been influencing sales in Brazil for some years. However, the athleisure items commonly used at work tend to last longer and purchases are more easily postponed.

COMPETITIVE LANDSCAPE

Nike remains the leading brand in sportswear in Brazil

Nike enjoyed a very favourable year, sponsoring the French football team (FIFA World Cup winner), the Croatian team (the other finalist) and the third-placed Belgian team. The brand also sponsored the official ball and had several advertising boards within the stadiums.

adidas do Brasil remains the leading company

Nevertheless, adidas do Brasil remained the leading company in sportswear in value terms in 2018. This is because it has more than one brand in the country, with adidas, adidas Kids and Reebok.

Under Armour’s successful strategy leads to strong growth

Following the same strategy as Nike, Under Armour rapidly gained share and rose in the ranking in a short period of time by sponsoring traditional soccer teams (São Paulo, Sport Clube do Recife) within the first years of its entry, whilst simultaneously opening its own stores. Another sport that enjoys good visibility in Brazil is beach volleyball, and the team Juliana & Larissa is also sponsored by the brand.

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