Brazilian brands such as VR Menswear, Ellus, TNG and Richards are following a path already trodden by international brands like Armani, Lacoste, Polo Ralph Lauren: outsourcing from Peru.
Mercosur: import tax waiver
Brazilians are benefiting from a Mercosur free trade agreement which waives import taxes from Peruvian textile goods. Same merchandise from China is taxed 35%.
According to Jornal Valor, in 2009, Brazil imported U.S. $ 34 million in textile and garments from Peru. In 2010, the value rose to U.S. $ 65 million, 89% more. In volume, the increase was 28%, which may mean that what is coming into Brazil are items of higher added value.
A lesson of strategy to be learned
Antonio Castillo, economic and commercial counselor of Peru, declared that the country spent four years investing in quality and competitiveness. ”We have an extra-long staple cotton, which ensures strength and elasticity to the products,” says Castillo. The intention is not to compete with China, but offer more sophisticated articles.
Peru has invested in bringing Brazilian commercial delegations. ”This year, we made a business roundtable with 140 Brazilian companies,” says Castillo. In April 2012, Lima will host the 15th edition of the International Fashion Industry – Fashion Peru, which includes exporting companies in the sector of clothing, footwear and jewelry.”The event comes to gather about 300 Peruvian companies,” says Castillo to Jornal Valor this week.