By lowering expenses or establishing brand-new market sections, Portugal might end up being a crucial gamer in the high-end shoes sector according to EY Parthenon.
Portugal’s shoes, elements and leather items sector presently utilizes around 40,000 individuals and exports 90% of its items to 173 nations.
Miguel Cardoso Pinto, partner at EY Parthenon, stated that increased competitors and increasing expenses are both threatening the shoes sector.
The consultancy stated Portugal has “numerous relative benefits” over Italy, which controls the high-end shoes market however is presently “threatened by high production expenses, a market controlled by intermediaries and an absence of proficient labour”.
While both Portugal and Italy were discovered to use high quality shoes production, Portugal used lower production expenses.
GlobalData’s shoes market information reveals the worldwide market for shoes is forecasted to amount to $403.9bn by 2026, up from $371.1bn in 2024.
EY Parthenon forecasted that high-end shoes, which presently represents 8% of the sector, will grow by 4.1% a year as much as 2028.
In a research study entitled ‘The shoes market’s path to high-end’, EY Parthenon argues that lowering expenses and establishing brand-new market sections are Portugal’s essential to placing itself as a “pertinent gamer in the high-end shoes sector”.
EY Parthenon likewise recommended that Portugal might increase its efficiency utilizing brand-new “commercial procedures” and optimise labour expenses, while likewise lowering basic material expenses through ingenious items.
Rigorous ESG requirements and top-notch items were likewise kept in mind as essential to burglarizing the high-end shoes sector.
The consultancy included: “Checking out sections with higher value-added capacity, getting in brand-new locations, and optimising brand-new phases of the supply chain are 3 possible courses to a more competitive future.”
The president of the Portuguese Shoes, Elements, Leather Product Manufacturers’ Association – APICCAPS – Luis Onofre stated: “We wish to be a crucial worldwide referral. Every year, 24 billion sets of shoes are produced, about 90% of them in Asia, which suggests that 9 out of 10 individuals use Asian shoes. We don’t believe this is sustainable, on the contrary, we believe there is space in the market for gamers like Portugal.”
In March 2024, The European Garments and Fabric Confederation released Aequalis-4-TCLF, an EU co-funded job focused on cultivating upskilling and reskilling within the fabric, clothes, leather and shoes sectors.
“In information: Portuguese shoes market uses ‘alternative to Italy’” was initially developed and released by Simply Design, a GlobalData owned brand name.
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