Portuguese producers are playing an increasingly important role in sustainable innovation in the fashion industry, moving beyond simply implementing brands’ strategies to establishing themselves as partners in the development of new materials, processes and services, according to the study Sustainability in Fashion: Innovation and Competitiveness in Portugal, by the Francisco Manuel dos Santos Foundation (FFMS), authored by Céline Abecassis-Moedas, Laure Leglise and Mariana Pereira Silva, which was published today.
The study analyses seven cases of sustainability-oriented innovation involving national and international brands and Portuguese producers, namely Acatel, Casa da Malha, Inovafil, Isto., RDD, Riopele, Silsa and Somelos. The solutions studied include regenerative cotton, recycled polyester, lyocell and polylactic acid (PLA), as well as dyeing processes using microorganisms and finishing processes with lower water consumption.
The authors conclude that collaboration between producers and brands is crucial to developing more sustainable materials and processes and strengthening the international competitiveness of Portuguese industry. In addition, «contrary to the perception that brands lead innovation in fashion, the study shows that it is often producers who drive the development of new sustainable solutions».
Knowledge sharing emerges as one of a common across the experiences analysed, particularly in the most technologically complex innovations. Samples and prototypes, feedback cycles and ongoing communication between the different players made it possible to test and refine materials and processes. «Suppliers should also consider knowledge sharing as a central pillar of collaboration with brands, as well as with other suppliers», the authors argue.
Trust and previous professional relationships are also important, alongside complementary resources. Specialised equipment, technical expertise and supplier networks are among the assets valued when choosing partners, while some manufacturers are also adding traceability, recycling or material development services, moving towards a more strategic relationship with brands.
Advantages and challenges
The geographical concentration of the Portuguese textile and clothing industry is an advantage. Porto, Braga, Guimarães and Famalicão accounted for 87% of the sector’s turnover and 85% of employment in 2019. «You have everything within a 50-kilometre radius. You have the sea to transport (…) all over the world. So, you have everything», summarises one of the buyers interviewed.
This proximity facilitates collaboration, communication and problem-solving and, according to the study, can protect against disruptions in more fragmented global supply chains.
Between 2010 and 2021, the study notes, the number of textile and clothing companies involved in R&D increased by 153%, from 64 to 162, with investment reaching €42.8 million. In 2020, Portuguese suppliers invested more than €9 million in sustainability-oriented innovations, namely in recycling, reducing energy consumption and emissions, and replacing conventional materials.
Constraints nevertheless remain. The cost of R&D and certifications weighs particularly heavily on SMEs – which represent 99.7% of companies in the sector –, compounded by the difficulties of adapting to evolving European regulations and the need to improve the international promotion of Portuguese capabilities.
A representative of an international brand – the study’s authors interviewed 45 people, including individuals linked to suppliers and partners producing in Portugal – states: «I have noticed that many factories do not promote themselves. If you look at the websites, they are terrible. It is very difficult to understand what they do; it is very difficult to navigate them. Many are really old websites. So, given that Portuguese factories are so advanced, I would consider taking that to the next level and promoting themselves as well».
Despite acknowledging the limitations inherent in analysing seven case studies, the authors highlight in their conclusions that «the industry is widely praised for its high-quality standards and the presence of a diverse range of factories, which together cover the main stages of the production process, from yarn through to garment production. In addition, brands frequently mentioned the advanced equipment used by Portuguese suppliers, which is essential for developing sustainability-oriented innovations, combined with the sector’s strong commitment to transparency». However, «some challenges remain, such as the significant cost of research and development initiatives, limited resources for SMEs and difficulties in adapting
to evolving EU regulations», leading the authors to suggest «strengthening financial support for innovation, promoting collaboration with industry organisations and universities, as well as improving suppliers’ visibility through digital promotion» to «help strengthen the sector’s long-term competitiveness and resilience».
