Seoul promotional initiative began last week

The last week saw the start of the promotional event organised by APICCAPS and AICEP, with the support of Compete2030. A total of 12 Portuguese companies took part in the Portuguese Shoes Showcase, presenting the best of what the national industry has to offer.

Entering new markets with high growth potential has been a strategic priority for the Portuguese footwear industry. Extra-EU exports now account for 19% of the sector’s total, more than double the figure recorded a decade earlier. The average price of Portuguese footwear exported to South Korea was 66 euros in 2023, more than double the sector average.

According to the Catholic University, "growing markets offer the best prospects for commercial success”. The institution admits that "potential markets for Portuguese footwear are comprised of consumers with an income equal to or greater than the average GDP per capita of the OCDE countries in 2020, which is around 38,500 US dollars”.

From the information available, there are 500,000 potential customers for Portuguese footwear in 145 cities around the world. Around 2/3 of the sector’s investment is expected to be focused on Europe or the US, but opportunities have also been identified in South Korea and Japan.

According to the President of APICCAPS, "It is important to recognise that the international footwear market is undergoing profound changes, from shifts in consumer habits to the emergence of new business models”. Nevertheless, the sector’s major imperative is to "significantly strengthen our presence in foreign markets, where we export more than 90% of our production”.

Portugal exported 84 thousand pairs of shoes worth 5.6 million euros to South Korea last year. The World Footwear 2023 Yearbook also shows that the Asian country imported 251 million pairs of shoes in 2022, mainly from China (71% market share), Vietnam (17%) and Indonesia (7%).

With a population of 52 million people and a GDP per capita of 32 250 US dollars (compared with 24 522 in Portugal), South Korea "warrants a closer look from Portuguese businessmen”, according to the APICCAPS Research Office.

The Korea phenomenon
South Korea has made its mark in the world of fashion, beauty and pop culture, especially among the younger generations.

The Korean phenomenon is nothing new. At the beginning of the century, it was called Hallyu or Korean fever in China. South Korean dramas, films and even music now have fans all over the world.

According to Osvaldo Alencar Billig and Amanda Paiva da Silva, authors of the study «The expansion of Hallyu: the use of cultural diplomacy and its impact on the South Korean economy», this phenomenon "began in the 1900s and expanded in the 2000s” in order to "improve South Korea’s image abroad and, consequently, its economy, both directly and indirectly”.

The Seoul government has favoured "cultural diplomacy to create a nation brand and drastically change the country’s image abroad”, and has therefore invested heavily in the cultural sector. It should be remembered that South Korea spent much of the 20th century under authoritarian military regimes and only began its democratisation process in 1988. The Asian country is a good example of smart power, combining political power with economic potential. Korean giants such as Hyundai, Kia, LG and especially Samsung are examples of this.

Streetwear, ever-present in the Gen Z fashion universe, has a captive audience in Korean fashion. "The South Korean market favours local brands, but European brands see a wealth of opportunities in the country”, says Business of Fashion. Seoul Fashion Week is growing with each edition and is already considered one of the major fashion weeks outside the main circuit.