On May 27, designers, brand executives and sourcing directors from companies including Reformation, Coach, Kate Spade New York, Revolve, Loeffler Randall, Margaux, Rag & Bone and Proenza Schouler gathered at the Chelsea Hotel in Manhattan for a discussion on the shifts reshaping global footwear manufacturing.
Moderated by Yasmine Dahlberg of Business of Fashion, the panel featured Paulo Gonçalves, Executive Director of APICCAPS; Ana Correa, Accessories and Footwear Strategist at WGSN; and Patricio Campillo, Creative Director of Campillo and a member of the BoF 500.
According to the World Footwear Yearbook 2025, 88 percent of the world's footwear is still manufactured in Asia. However, a combination of geopolitical tensions, tariff volatility and growing consumer demand for longer-lasting, higher-quality products is prompting brands to reassess their dependence on the region.
In recent years, APICCAPS has driven more than €600 million in investment in automation, robotics and sustainability, helping reposition Portugal from a mid-range manufacturing base to one of the world's leading hubs for premium and luxury footwear production. Today, more than 90 percent of Portuguese footwear production is exported to around 170 countries. The United States is now the sixth-largest export market for Portuguese footwear, having doubled in size over the past decade to reach approximately €100 million in 2024.
For Paulo Gonçalves, however, Portugal's competitiveness goes far beyond industrial efficiency.
"Relationships are built on trust and transparency. When production issues arise, the solution begins with being able to pick up the phone and speak directly. That is the foundation of a successful relationship between designer and manufacturer."
The discussion focused on how these changes are affecting brands at different stages of growth. Below are some of the key takeaways.
Why are brands manufacturing in Portugal?
The pandemic exposed the risks of relying too heavily on a single sourcing region — a vulnerability that continues to challenge the industry. Geopolitical tensions and trade instability remain among fashion executives' biggest concerns, with the footwear sector particularly exposed because of its heavy concentration of production in Asia.
Nearly two decades ago, Portugal chose a different path. Rather than competing on price, it invested in quality, innovation and specialization.
"If we had tried to compete on price, it simply wouldn't have worked," said Paulo Gonçalves. "Brands manufacture in Portugal today because there is strategic alignment. We study each brand and work to find the right industrial partner."
Patricio Campillo experienced this firsthand during his visits to Portugal.
"When I visited Portugal, I realized I could dream up an idea and see it brought to life. I was impressed by the level of specialization among manufacturers, the accumulated expertise and the craftsmanship needed to pass that knowledge from one generation to the next. All of this is deeply aligned with our brand's DNA."
Portugal's manufacturing capabilities have also diversified significantly. While traditionally known for leather footwear, Portuguese factories have successfully expanded into premium sneakers, innovative sustainable materials and the use of natural resources such as cork, which has become a defining feature of Campillo's collections.
Longevity, transparency and trust: the new codes of luxury
According to WGSN's Ana Correa, consumers are redefining what they value.
"Consumers are increasingly looking for longevity, durability and even brands that offer repair services. It's no longer just about the product; it's about building a relationship with the consumer."
For Patricio Campillo, durability is a design philosophy.
"Durability is one of the most important things. I like to think that the clothes and shoes I wear carry part of my story and the experiences I've lived through with them."
Paulo Gonçalves summarized the value proposition of the Portuguese footwear industry:
"Today, Portugal offers the best of both worlds: the agility and craftsmanship of a specialized industry, combined with the industrial capacity and efficiency demanded by global brands."
Country of origin has also become a key differentiator. As Ana Correa noted, labels such as Made in Portugal, Made in Spain and Made in Italy are increasingly associated by consumers with quality, durability and authenticity.
Designer–manufacturer relationships as a driver of innovation
Behind every well-crafted pair of shoes is a close partnership between designer and manufacturer.
"Empathy is fundamental in business relationships. We're talking about people who are passionate about what they do. Communicating with my factory in Portugal is almost like talking to family," said Campillo.
Ana Correa argues that manufacturers should be involved earlier in the creative process, not merely as producers but as strategic partners.
"It's not just about making a product. It's about working together to build a brand."
According to Correa, this collaborative approach is especially valuable for emerging designers, enabling them to explore new materials, innovative constructions and bolder creative directions.
To support this ecosystem, APICCAPS has developed an extensive programme connecting young designers with the Portuguese footwear industry, partnering with institutions such as the London College of Fashion, the Fashion Institute of Technology and the Institut Français de la Mode.
An industrial hub built on sustainability, efficiency and craftsmanship
Over the past three years, through the FAIST (Factories of the Future – Agile, Intelligent, Sustainable and Technological) project, the Portuguese footwear industry has invested more than €60 million in automation, robotics and advanced manufacturing technologies.
The result has been higher productivity, greater consistency and improved responsiveness to the needs of international brands.
At the same time, through the Green Shoes Agenda, APICCAPS has supported companies in improving their performance in areas such as water consumption, energy efficiency, packaging and traceability.
"This initiative has enabled companies to optimize their processes and establish a more sustainable production model, making Portuguese manufacturers better prepared to meet the demands of international markets," said Paulo Gonçalves.
Yet, according to the APICCAPS Executive Director, the industry's greatest competitive advantage remains its people.
Recalling a visit to a factory in Felgueiras early in his career, Gonçalves described watching a worker gently run her hand over every pair of shoes before placing them in the box.
"It took me many years to understand that gesture. The passion, the care, the love for what you do. Portugal has so much to offer — and it's about far more than just shoes."
Moderated by Yasmine Dahlberg of Business of Fashion, the panel featured Paulo Gonçalves, Executive Director of APICCAPS; Ana Correa, Accessories and Footwear Strategist at WGSN; and Patricio Campillo, Creative Director of Campillo and a member of the BoF 500.
According to the World Footwear Yearbook 2025, 88 percent of the world's footwear is still manufactured in Asia. However, a combination of geopolitical tensions, tariff volatility and growing consumer demand for longer-lasting, higher-quality products is prompting brands to reassess their dependence on the region.
In recent years, APICCAPS has driven more than €600 million in investment in automation, robotics and sustainability, helping reposition Portugal from a mid-range manufacturing base to one of the world's leading hubs for premium and luxury footwear production. Today, more than 90 percent of Portuguese footwear production is exported to around 170 countries. The United States is now the sixth-largest export market for Portuguese footwear, having doubled in size over the past decade to reach approximately €100 million in 2024.
For Paulo Gonçalves, however, Portugal's competitiveness goes far beyond industrial efficiency.
"Relationships are built on trust and transparency. When production issues arise, the solution begins with being able to pick up the phone and speak directly. That is the foundation of a successful relationship between designer and manufacturer."
The discussion focused on how these changes are affecting brands at different stages of growth. Below are some of the key takeaways.
Why are brands manufacturing in Portugal?
The pandemic exposed the risks of relying too heavily on a single sourcing region — a vulnerability that continues to challenge the industry. Geopolitical tensions and trade instability remain among fashion executives' biggest concerns, with the footwear sector particularly exposed because of its heavy concentration of production in Asia.
Nearly two decades ago, Portugal chose a different path. Rather than competing on price, it invested in quality, innovation and specialization.
"If we had tried to compete on price, it simply wouldn't have worked," said Paulo Gonçalves. "Brands manufacture in Portugal today because there is strategic alignment. We study each brand and work to find the right industrial partner."
Patricio Campillo experienced this firsthand during his visits to Portugal.
"When I visited Portugal, I realized I could dream up an idea and see it brought to life. I was impressed by the level of specialization among manufacturers, the accumulated expertise and the craftsmanship needed to pass that knowledge from one generation to the next. All of this is deeply aligned with our brand's DNA."
Portugal's manufacturing capabilities have also diversified significantly. While traditionally known for leather footwear, Portuguese factories have successfully expanded into premium sneakers, innovative sustainable materials and the use of natural resources such as cork, which has become a defining feature of Campillo's collections.
Longevity, transparency and trust: the new codes of luxury
According to WGSN's Ana Correa, consumers are redefining what they value.
"Consumers are increasingly looking for longevity, durability and even brands that offer repair services. It's no longer just about the product; it's about building a relationship with the consumer."
For Patricio Campillo, durability is a design philosophy.
"Durability is one of the most important things. I like to think that the clothes and shoes I wear carry part of my story and the experiences I've lived through with them."
Paulo Gonçalves summarized the value proposition of the Portuguese footwear industry:
"Today, Portugal offers the best of both worlds: the agility and craftsmanship of a specialized industry, combined with the industrial capacity and efficiency demanded by global brands."
Country of origin has also become a key differentiator. As Ana Correa noted, labels such as Made in Portugal, Made in Spain and Made in Italy are increasingly associated by consumers with quality, durability and authenticity.
Designer–manufacturer relationships as a driver of innovation
Behind every well-crafted pair of shoes is a close partnership between designer and manufacturer.
"Empathy is fundamental in business relationships. We're talking about people who are passionate about what they do. Communicating with my factory in Portugal is almost like talking to family," said Campillo.
Ana Correa argues that manufacturers should be involved earlier in the creative process, not merely as producers but as strategic partners.
"It's not just about making a product. It's about working together to build a brand."
According to Correa, this collaborative approach is especially valuable for emerging designers, enabling them to explore new materials, innovative constructions and bolder creative directions.
To support this ecosystem, APICCAPS has developed an extensive programme connecting young designers with the Portuguese footwear industry, partnering with institutions such as the London College of Fashion, the Fashion Institute of Technology and the Institut Français de la Mode.
An industrial hub built on sustainability, efficiency and craftsmanship
Over the past three years, through the FAIST (Factories of the Future – Agile, Intelligent, Sustainable and Technological) project, the Portuguese footwear industry has invested more than €60 million in automation, robotics and advanced manufacturing technologies.
The result has been higher productivity, greater consistency and improved responsiveness to the needs of international brands.
At the same time, through the Green Shoes Agenda, APICCAPS has supported companies in improving their performance in areas such as water consumption, energy efficiency, packaging and traceability.
"This initiative has enabled companies to optimize their processes and establish a more sustainable production model, making Portuguese manufacturers better prepared to meet the demands of international markets," said Paulo Gonçalves.
Yet, according to the APICCAPS Executive Director, the industry's greatest competitive advantage remains its people.
Recalling a visit to a factory in Felgueiras early in his career, Gonçalves described watching a worker gently run her hand over every pair of shoes before placing them in the box.
"It took me many years to understand that gesture. The passion, the care, the love for what you do. Portugal has so much to offer — and it's about far more than just shoes."