High quality (cheap) cotton? Brazilian fashion prefer Peru to China

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.

Richard's 2012 collection: cool carioca style

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.

Peruvien pima cotton compares to Egyptian cotton

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.

Published by Hildete Vodopives

Hildete de Moraes Vodopives is founder of Brazil Global and of the Harvard Strategists Group. She has a PhD in Economic History and advises companies and investment agencies in international business development.She served as Corporate Relations Director and later, on the board of the Brazilian Investment Analysts Association (APIMEC).

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