Portuguese exports to China doubled to a total of 12 million euros in 2015. Added to this is the fact that the average price of Portuguese footwear commercialized in the Asian giant, around 42 euros, is the highest of all export prices, amongst the 152 destination markets. The persistent work initiated in the recent past now begins to show results.
China does not only stand out in the horizon of the Portuguese companies but it is also a strategic market according to a logic of diversification. To Sérgio Cunha, from Nobrand, “the Chinese market is becoming very interesting for the Portuguese companies”. Fortunato Frederico states that “Fly London is starting to have interesting commercial results in China”. To Joaquim Moreira, from Felmini, “it is going to be a strategic market in the future", and for Luís Onofre, China “is a market with an extraordinary potential”.
China overthrows Japan
China recently overtook Japan as the biggest luxury products' market. According to the Chinese Academy of Social Sciences, China’s market share will correspond to nearly 30% of all commercialized luxury products on a global scale. Nowadays, China has approximately 200 billionaires, just under a million millionaires and 65 million people with high purchasing power, who regularly invest in luxury items.
Sings to retain
Although it is one of the most flourishing economies worldwide, there are already a few alert signs concerning the Chinese economy, which are important to retain. Last year, the Chinese economy registered the lowest growth rate in the last 25 years (the Gross Domestic Product increased by 6,9% in 2015, the lowest result since 1990). The current scenario increases the concerns about the Asian giant, which is seen as the main driving force for economic growth, namely due to the possibility of profound changes in the industrial sector.
Indeed, according to the Chinese Prime Minister Li Keqiang, China “will continue to reduce the overcapacity in the industry but will avoid the massive work loss”. Beijing is entering into a transition of the country’s economic model, aiming to give a higher prominence to the services sector and resulting on the closure of heavy industrial units, which are considered unproductive. In the beginning of the month, Li has announced, among other things, the creation of a 100 billion yuan’s fund (around 14 million euros) for subsidies and compensations to workers who may lose their jobs within the process of the industrial reorganization. This fund could be increased, if necessary, even though there are expectations that the services and technology sectors will help to absorb the discharged labour.