Portuguese footwear prepares entrance in the USA

Participation in fairs and business missions and a "surgical" image campaign are the instruments foreseen in the coming years for the promotional strategy of Portuguese footwear which, in addition to the traditional European "target markets", will make a "big investment" in the USA.

"As far as our target markets are concerned, on the one hand, it is important to reinforce our investment  in the traditional markets of the sector and, if possible, to increase the share of Portuguese footwear in the face of a very aggressive competition", says the Portuguese Association of Footwear Industry, Components, Skin Products and Derivatives (APICCAPS).

Highlighting the cases of France, Germany, the Netherlands, Spain and the United Kingdom, the association points out that, altogether,  these markets are the destination of almost three-quarters of all Portuguese exports, so "the performance of our shoes there will be decisive for the future of the Portuguese footwear cluster ".

In addition to these destinations, the promotional strategy defined by APICCAPS also includes reinforcing the "investment on less traditional markets, where there are opportunities for significant growth", such as the "continued work" that has already been done in Colombia and "which will  have to be developed, although with a progressive 'normalization', in 2016 and 2017".

Another "less traditional" promotional destination to be favored will be Japan, which has already "received special attention", but the "big investment" assumed by the association for "the coming years" is the US.

Although the promotional program of Portuguese footwear prioritizes its activities in these markets, "it is not limited to them": "The cluster exports to almost every country in the world and the action program seeks to create the conditions for exports to continue to grow and gain geographical diversity."

On the other hand, he says, "the importance attached to a market is not necessarily proportional to the initiatives carried there" and the fact is that "the international promotion of the footwear industry has undergone a process of concentration in large 'platform' fairs that attract flocks of buyers from around the world. "

"The importance of Micam and Expo Riva Schuh to the Portuguese footwear cluster is much higher than what would result from national exports to Italy, where they take place. And despite the great importance of the German market for Portuguese footwear, The presence in GDS is also due to the impact it has on other countries in Central and Eastern Europe ", they point out.

According to APICCAPS data, sales of Portuguese footwear abroad grew by 44% in the last five years, having increased "for all 20 major markets", "with the exception of the United Kingdom".

And while exports continue to have some concentration in the major European markets, the highest growth rates have been achieved in nontraditional markets in the sector, which offer diversification opportunities: China (3108%), United Arab Emirates (608%), , USA (461%), Australia (363%) and Poland (295%). "

In the same period, the association added, "the average export price increased 24%, in line with the objective of affirming the sophistication and quality of our offer."

This year, APICCAPS's promotional strategy foresees the participation of a "record number" of 200 Portuguese companies in promotional actions in 16 countries, whose goal is to consolidate sales to Colombia, Chile and Peru and prepare for entering the US.

The 2017 footwear promotional plan integrates the "long-term internationalization strategy" that the association believes to have influenced the "continuous growth" of sectoral exports in recent years, with 2016 being "the seventh consecutive year of growth in Portuguese footwear sales abroad ".

And - APICCAPS points out - "If 2016 was the year that saw the start of our investment in the Japanese market, 2017 will be simultaneously a year of strategic consolidation (in markets like Colombia, Chile and Peru, after three years) and preparation for our entry in new markets (US in 2018) ".

Portugal annually exports 98% of its footwear production, i.e. 70 million pairs and 1.900 billion euros, to 152 countries on five continents.

According to data from the World Footwear Yearbook 2015, Portugal is ranked 18th in the list of the world's largest producers in terms of quantity, and 13th in terms of the value of exports.