The following research report contains market research, analysis, statistics and business intelligence relating to research on Apparel Industry In Portugal.

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ABSTRACT
The U.S. has a large share of the Portuguese market for
sportswear and casual apparel. Thanks to the traditionally
acclaimed quality of American sportswear for quality and
durability, this share is expected to increase in the near
future. U.S exports to Portugal are expected to increase by about
10-15 percent annually. However, U.S. marketing techniques must
become more aggressive and flexible to increase market share.
Franchisers of apparel, mainly casual and sportswear should look
to Portugal and the potential it offers. U.S. designers may
consider having their clothing manufactured in Portugal and
exported from Portugal to other EU countries.

The textile industry, which is concentrated in northern Portugal,
employs about 25 percent of the labor force and is responsible
for about 22 percent of total Portuguese exports. Apparel is the
most important sector of this industry and has grown
significantly in the last decade. There are many new clothing
chains operating in this market. Portuguese imports are divided
into three segments: fashion products (imported mainly from Italy
and France): medium-priced good-quality apparel (in which U.S.
products generally compete); and less expensive articles (from
the Far East). Imports of apparel cover about 17 percent of
market demand. EU countries are the most important suppliers,
accounting for about 90 percent of Portugal's imports. The main
European exporting countries are France (24 percent), Italy (22
percent), Spain (21 percent), and Germany (12 percent).

Portugal is a major producer of textiles and apparel. At
present, emphasis is on licensed production that is not only
consumed locally but also exported to many countries. Many
foreign brands are thus not only entering Portugal, but are also
finding new markets through Portugal's existing export
connections.

Total market size for sports/leisure/casual apparel in Portugal,
in 1997, was USD 5.8 billion. Domestic production of
sports/leisure/casual apparel during 1997 is estimated at USD 6.8
billion. There are about 4,000 Portuguese firms producing sports
and casual apparel in Portugal, employing 215,000 workers.
Portugal's imports of sports and casual apparel in 1997 were USD
1 billion.
A. MARKET HIGHLIGHTS & BEST PROSPECTS

Market Profile

Portugal is a major producer of textiles and apparel and the
country's economy relies heavily on this sector.

Although most of the demand is met by local production, imports
and foreign-licensed production of apparel has been steadily
increasing. At present, emphasis is on licensed production that
is not only consumed locally but also exported to many countries.
Many foreign brands are thus not only entering Portugal, but are
also finding new markets through Portugal's existing export
connections.

Total market size for sports/leisure/casual apparel in Portugal,
in 1997, was USD 5.8 billion. Domestic production of
sports/leisure/casual apparel during 1997 is estimated at USD 6.8
billion. There are about 4,000 Portuguese firms producing sports
and casual apparel in Portugal, employing 215,000 workers. About
30-percent of the production is exported mainly to Germany,
France, U. Kingdom, Italy and Spain. Portugal imports of sports
and casual apparel in 1997 were USD 1 billion.

Statistical data

Official Portuguese trade statistics are not updated. Therefore,
it is very difficult to accurately define market data. Import
and export statistics for 1997 were provided by ANIVEC - National
Association of Apparel Manufacturers. All other statistics are
unofficial estimates.

SPORTS AND CASUAL APPAREL MARKET SIZE ( in US dollar millions)
Projected
Avg. Annual
LAST CURRENT NEXT Growth rate
YEAR YEAR YEAR for following
1997 1998 1999 2 years

Import Market 1,004 1,105 1,215 15-20%
Local Production 6,812 7,485 8,234 10-15%
Exports 2,008 2,210 2,320 02-05%
Total Market 5,808 6,380 7,129 20-25%
Imports from U.S 5 6 7 10-15%
Exchange rate 170 172

Estimated Future Inflation Rate: 3%

Last Year's Import Market Share and major Competitors: France (24
percent); Italy (22 percent); Spain (21 percent), and Germany (12
percent).

Source: ANIVEC - National Association of Apparel Manufacturers.
Best Sales Prospects

Most promising Subsectors within the Sector, along with estimated
1998 total market size of each Subsector in USD million:
- Casual wear (men, women and children) 1,410
- Sportswear 1,320
- Lingerie 1,250
B. COMPETITIVE ANALYSIS

Domestic Production

As noted above, Portugal is a major producer of apparel. Its
total apparel production was USD 6.8 billion in 1997 and has
increased by an annual average of 15 percent since 1996. In 1997
the Portuguese textile and apparel sector constituted 30 percent
of the country's total consumer goods production.

Imports are encouraged as a means of introducing better quality
standards and more effective marketing methods, while local
production helps foreign brands to enter other markets from
Portugal. Because Portugal is a member of the EU, local
production by U.S. brands is an attractive prospect.

Foreign brands enter the market mostly in the form of local
production under license. Almost all of the internationally
known jeans brands are produced and sold either under license or
within franchise agreements. A small portion is imported
directly and sold expensively in specialty stores.

Some foreign brands which have entered Portugal in the form of
joint ventures or franchises are: Alain Manoukian, Banana
Republic, Benetton, Calvin Klein, Donna Karen, Gant, GAP,
Lacoste, Le Coq Sportif, Lee, Levi's, O' Neill, Paul & Shark,
Polo Ralph Lauren, and Wrangler.

3rd-Country Imports
Portuguese imports are divided into three segments: fashion
products (imported mainly from Italy and France): medium-priced
good-quality apparel (in which U.S. products generally compete);
and less expensive articles (from the Far East). Imports of
apparel cover about 17 percent of market demand. EU countries
are the most important suppliers, accounting for about 90 percent
of Portugal imports. The main European exporting countries are
France (24 percent), Italy (22 percent), Spain (21 percent), and
Germany (12 percent). Imports of sportswear from the U.S. are
expected to increase at an annual rate of about 15-20 percent
during next two years.

In general, more expensive designer brands are imported directly
for sale to the upper middle class end-users in specialized
"boutiques".

U.S. Market Position

Apart from being very popular, U.S. clothing has a good
reputation among Portuguese buyers and end-users. U.S.
manufactured apparel is considered to be durable and of high
quality. Franchisers of apparel, mainly casual and sportswear
should look to Portugal and the potential it offers. U.S.
designers may consider having their clothing manufactured in
Portugal and exported from Portugal to other EU countries.

The U.S. has a large share of the Portuguese market for
sportswear and casual apparel. Thanks to the traditionally
acclaimed quality of American sportswear, this share is expected
to increase in the near future. U.S exports to Portugal are
expected to increase by about 10-15 percent annually. However,
because European exporters generally have a better knowledge of
the Portuguese market and are geographically closer, U.S.
marketing techniques must become more aggressive and flexible to
increase market share.

C. END-USER ANALYSIS

End-users of imported casual and sports apparel are generally
label-conscious urban young people. The popularity of baseball,
football, and basketball in Portugal has resulted in a high
demand for T-shirts and hats with American sports team logos.

Quality sportswear is important to Portuguese consumers for
functional activities as well as relaxing on the weekend; indeed,
they are willing to pay a high price to assure their comfort and
ensure their status.

D. MARKET ACCESS

mport Climate

There are no restrictions on the importation of casual and
sportswear into Portugal. The customs duty for apparel imported
from the U.S. is 14 percent ad valorem. U.S. suppliers can
eliminate this disadvantage by franchising their production to
local companies, or by joint ventures with local manufacturers.
In general, Portuguese importers prefer to import from the
manufacturer directly instead of through export companies.

Customs duties were eliminated for trade between EU
members-countries in 1993. Portugal applies the current EU
Common External Tariff (CXT) on imports from third countries,
including the U.S. A valued-added Tax (VAT) of 17 percent is
applied in Portugal on sports and casual ware, whether produced
domestically or imported. The import climate for American
products is excellent.

The labels must provide the country of origin and cleaning
instructions.

Distribution/Business Practices

U.S companies can sell casual and sportswear apparel in Portugal
through an agent, using a distributor or by establishing a
subsidiary.

High quality, imported or locally produced foreign casual and
sportswear apparel are usually (and more effectively) sold in
small, specialty, chain stores.

One point to be noted by U.S. suppliers is that intellectual
property rights are not yet fully protected in Portugal although
progress is rapidly being made in the area of pertinent
legislation. As a result well-known brands can sometimes be
imitated. Both Levi's and Lacoste, for example, have suffered
from this weakness. As stated above, joint ventures are feasible
and recommended in view of Portugal's existing industrial and
trading infrastructure in this area. Franchising is also
recommended and applied increasingly as a means for penetrating
the Portuguese as well as neighboring markets.

Financing

The usual practice of American firms selling to a new customer is
to require cash against documents on the first sale or two.
Distributors accept the use of confirmed and irrevocable letters
of credit. Payment practices in Portugal are cash and 60, 90 and
120 day terms. However, large companies typically pay two to
three months after delivery.

Key Contacts

Trade Associations

ANIVEC - (National Association of Clothing Manufacturers)
Av. Boavista, 3523 - 7th Fl
4150 PORTO, PORTUGAL
Phone: (351-2) 610-0050
Fax: (351-2) 610-0049

APT - (Portuguese Textiles and Clothing Association)
Rua Goncalo Cristovao, 96 - 1st Fl
4000 PORTO, PORTUGAL
Phone: (351-2) 31 79 61
Fax: (351-2) 31 03 43

Some Portuguese importers of U.S. apparel

AMBINOVA
Largo Mouzinho de Abuquerque, 13
3500 VISEU, PORTUGAL
Fax: (351-32) 42 14 45

Antonio Fortes Modas, Lda.
Largo Eng. Antonio de Almeida, 70 - 7. Sala 406
4100 PORTO, PORTUGAL
Phone: (351-2) 830-1100
Fax: (351-2) 830-1104

Antonio Maia da Costa Teixeira Barbosa
Rua da Saudade, 59 - Sala 118
4000 PORTO, PORTUGAL
Phone: (351-2) 600-9694
Fax: (351-2) 600-9695

AQUAJET
Igreja - Barcelos
4750 BARCELOS, PORTUGAL
Phone: (351-53) 824331
Fax: (351-53) 824332

Casa Maia, S.A.
Rua de Cedofeita, 120 - 1.
4050 PORTO, PORTUGAL
Phone: (351-2) 202-2899

DESPORNAUTICA - Importacao e Exportacao, Lda.
Av. Santos Dumond, 51
1050 LISBOA, PORTUGAL
Fax: (351-1) 795-6127

DELVESTE - Comercio e Confeccoes, Lda
Fradelos
4760 VILA NOVA DE FAMALICAO, PORTUGAL
Phone: (351-52) 48126
Fax: (351-52) 48534

DIVERDIS - Comercio Internacional, Lda.
Rua Cidade de Poitiers, 32 - Monte Formosa
3000 COIMBRA, PORTUGAL
Fax: (351-39) 49 44 87

Dupla Textil - Importacao e Exportacao, Lda.
Rua D. Carlos Mascarenhas, 32 - RA
1070 LISBOA, PORTUGAL
Fax: (351-1) 387-3067

F.S. RIBEIRO, S.A.
Rua Herois de Chaimite, 43-1
Apartado 1061
2676 ODIVELAS, PORTUGAL
Phone: (351-1) 938-6214
Fax: (351-1) 938-8126

Helder A. Morais Ferreira
Rua Antonio Aroso, 486
4100 PORTO, PORTUGAL
Phone: (351-2) 618-4696

INSTALPORT - Representacoes e Comercio, Lda.
Rua Aires de Ornelas, 74
4000 PORTO, PORTUGAL
Phone: (351-2) 510-6085
Fax: (351-2) 510-3715

Isabel Gomes Castro
Phone( 351-2) 510-4305 / 575-934
Fax: (3561-2) 510-4305

JOTABE -Texteis Lar, S.A.
Rua Veloso Salgado 535
4454 LECA DA PALMEIDA, PORTUGAL
Phone: (351-2) 996-3970
Fax: (351-2) 996-6031

MODISIL - Modas e Confeccoes, Lda.
Pateiras
4785 TROFA, PORTUGAL
Fax: (351-52) 41 40 08

Resende & Baptista, Lda.
Rua Barao de Forrester, 707
4000 PORTO, PORTUGAL

Phone: (351-2) 200-3618
Fax: (351-2) 31 32 48

VESTIMA - Comercio de Vestuario, Lda.
Fraccao A - Barroco, 174
4465 LECA DO BALIO, PORTUGAL
Phone: (351-2) 953-5967
Fax: (351-2) 953-5969
Trade Promotion Opportunities

The trade events offering the best opportunities for U.S. firms
to promote their products are:
- SELECTIV 'MODA - September at EXPONOR, Porto
- MOD' TISSIMO - October at EXPONOR, Porto
- MODATEXTIL - October at EXPONOR, Porto
- MOD' TISSIMO - March at EXPONOR, Porto
- MOD' TISSIMO - October at EXPONOR, Porto

For additional information on these trade shows, contact:
EXPONOR - Feira Internacional do Porto
4450 LECA DA PALMEIRA, PORTUGAL
Phone: (351-2) 998-1400
Fax: (351-2) 995-7499

and:

- FILMODA - September at FIL, Lisbon
- FILMODA - February at FIL, Lisbon
- FILMODA - September at FIL, Lisbon

For additional information on these trade shows, contact:
FIL - Lisbon International Fair
Praca das Industrias
1300 LISBOA, PORTUGAL
Phone: (351-1) 360 1500
Fax: (351-1) 363 9048

DISCLAIMER
Information in this report relies on sources including Government Publications, Opinions of industry experts and other public sources. Infomat can accept no responsibility for the accuracy or completeness of such information or for loss or damage caused by any use thereof. All prices subject to change without notice.

$3500 USD
For the 2008 Edition

Published: 2006 August
Market: Mens Womens Childrens
Region: Portugal
Industry: Apparel
Pages: 45
Delivery: 7-12 Business Days
SKU: infre0000244