Piracy has become a significant threat to the Brazilian footwear industry, leading the  Association of Footwear Industries (Abicalçados) to launch a new campaign against it. The initiative aims to combat the growing presence of counterfeit goods, which have been detrimental to businesses, workers and consumers. According to the National Industry Confederation, illegal markets cost Brazil over 74.05 billion euros in 2022 alone, primarily from lost tax revenue and damages to multiple economic sectors, including footwear.

According to the Global Organized Crime Index, Brazil ranks poorly on the global stage regarding counterfeit product circulation, ranking 171 out of 193 countries. This issue has become particularly acute in the footwear industry, with most fake goods being produced domestically rather than imported. Abicalçados' campaign will work on several fronts, including raising awareness within the sector and coordinating with authorities to combat these practices.

About the Campaign

One of the pillars of the campaign is data collection. Abicalçados plans to gather information on counterfeit footwear being sold in the market, and all reported cases will be reported to law enforcement for further investigation and action. This effort aims to create a stronger partnership between private sector entities and government agencies to crack down on illegal production and distribution. The association will also work with other stakeholders, including manufacturers and retailers, to strengthen the fight against piracy.

The campaign also highlights the harmful effects piracy has on society as a whole. Counterfeit products are often of poor quality and pose a risk to consumer health and safety. Additionally, illegal footwear production takes place outside labour laws, employing informal workers in unsafe conditions. Haroldo Ferreira, Abicalçados Executive President, emphasized that counterfeit goods create unfair competition for legitimate businesses and drain the economy, contributing to job losses and undermining Brazil's labour rights and environmental standards.

Characteristics of Footwear Piracy in Brazil

According to Abicalçados, footwear piracy in Brazil primarily targets sports brands, with most counterfeit products being distributed by small retailers or individuals engaging in door-to-door sales. While online channels are growing globally, the distribution of fake footwear in Brazil remains predominantly physical. In the past, the country received counterfeit goods mainly through smuggling. Nowadays, Brazil produces these illegal items domestically and even exports them to neighbouring countries.