Portugal wins over Asian countries in the race for sports shoes
The rise in transport costs, a trend towards shorter supply chains, among other logistical difficulties, have been made with the Portuguese market, which is increasingly being sought after by large international footwear customers, especially in the Felgueiras area. , by the specialized industry installed there.
The president of APICCAPS, quoted by ECO, explains that this “clear relocation from China and other Asian countries” is happening “not only because of the circumstances of the pandemic”, which have made many companies opt for the nearest supply (nearshoring) to shorten the supply chain to markets, but also due to the increase in European prices and the current complications in the area of logistics and transport.
“The costs they will incur, and they are enormous, make up for producing in Europe. It’s a segment that’s starting to come back. (…) There is a demand from Portugal for the speed of delivery, given the current circumstances. Because nowadays delivery times have to be shorter and fashion is more and more ephemeral. And Portugal manages both small series and large productions”, adds Luís Onofre.
One of the cases that exceeds the sales records in relation to the period of the pandemic thanks to this transfer of production from the countries of the East to Portugal is the Darita brand, which works mostly under a private label regime, exporting 90% of the articles to countries such as Netherlands, Germany, the United Kingdom and France.
Filipe Morais, the administrative manager of the cost brand, occurs between 10% and 90%. , as a result of the increase in costs in more distant markets, adding that “what is there is the price, because the quality level liked it better here”.
João Pinto, commercial manager of the Joseli company, confirmed that “there are many big brands, key players, that in the last year sought out Portugal, moving their productions from China, Vietnam and India”, stressing that “or also made an effort. Some reserved, some not. It is a reason why the part of the companies has the capacity granted to a larger lot here than 100%, in the area of Felgueiras”.
However, the manager says that in some cases, delivery times have tripled, even with around 80% of materials in Portugal since suppliers are unable to deliver their products on time, “we may even have more orders, but only produce two times or three later problems or three problems increase and increase in problems that can be considered over time, produce two or three later problems, such as two or three months later problems. these customers return to the countries where they previously produced”.
In addition, the surge in demand became subcontracting in the most foreign country and, “to overcome this problem and reduce external dependence”, Joseli’s strategy involved the purchase of sewing companies in Felgueiras and Guimarães, thus increasing the effective from 180 to 240 people.
In contrast, Paulo Martins, the CEO of the Celita brand, which has no plans to expand its production, “has always been possible to be prudent in investments. This increase in demand in Portugal may eventually be temporary, to solve some problems at the moment and, things stabilizing, return to normal”.
The quarterly economic bulletin edited by APICCAPS, in partnership with the Centro de Estudos da Universidade Católica do Porto, after a first quarter in which 21 million pairs of shoes were exported worth 493 million euros (+25.2% in terms of peers), reveals that workers’ concerns are now “centered on the supply of production resources, in particular on the price and availability of production factors, and on the failure to respond to the demand for production factors”.
Regarding the sports footwear industry, according to the Athletic Footwear Market report, prepared by Allied Market Research, it is estimated that this final decade could be worth 165 million dollars (153.6 million euros), an increase of 50% compared to 109 billion dollars (101.5 billion euros) that it represented in 2020, due to the popularization of sports practice and the democratization of its use in more formal environments.