Exhibit 1: Brazilian share of export by sector in 2007: At 2 billion USD exports the Brazilian leather footwear itself is small in relative terms to rest of country exports More importantly it remains a giant vital kingpin to the Brazilian economy because it is served & feeds many other related supporting sector industries in a complex & integrated relationship (1) Integrated backward & forward business linkages contribute to 100 times its own overall GDP value (2) The volume of people employed in related industries supporting the leather footwear sector is phenomenal & an empowering trait to closing the poverty gap particularly in a developing country where the role of small businesses can play a big role Source – Institute for strategy & competitiveness

Exhibit 2: Footwear Cluster Export Value by Nation, 2007 Brazil is the world’s 6 th largest footwear exporter at 2.5% contribution ($2 billion value) of overall global footwear exports

‘Sinos valley’ leather footwear cluster Exhibit 4: Location of the ‘Sinos valley’ leather footwear cluster within Brazil

Backward supply 480 leather footwear manufacturers in the Sinos cluster (ex. few)  Novo Hamburgo  Campo Bom  Parobé  Igrejinha  Sapiranga Demand & forward linkages Livestock Slaughterhouse Tannery Processed leather Cattle ranching Chemical & glue Rubber Machinery Industry suppliers Software & supporting Admin services Shoe designers Component Industry suppliers Other apparel & leather related shops  Export/ forwarding agents Technical consultants Financial consultants Transporters Specialized tools  Export companies Source: Interpreted from multiple sources & adapted by RKC project team Government institutions National industrial training school (SENAI) Shoe trade fair organization (FENAC) National industrial training school (SENAI) Private technology centre (CTCCA) Small business centers (SEBRAE) Business professional associations (ACI) Universities/colleges Institutional linkages Labor  Retailers  Distributors  Wholesalers  Vendors  Schools  Charities Domestic market Foreign export markets  Big direct retail companies (Walmart / Carefour) Industry newspapers Technical services Advocates & marketing support Exhibit 3: Integrated Cluster map Sinos valley leather footwear Branding services Trade magazines