Portugal: a mature EC partner - Portugal: Gateway to Europe - European Community

Business America, May 20, 1991 by Miguel Pardo de Zela

The US&FCS office in Portugal has identified the following areas as having high potential as consumer product exports to the Portuguese market: sporting and athletic goods, games and toys, photographic equipment and supplies, cosmetics, jewelry, apparel, and accessories, residential and lighting fixtures, house furnishings, lawn and garden equipment, musical instruments, household audio and video equipment, and stationary.

US&FCS is closely following toys, sports, and franchising services (which has implications for several other consumer sub-sectors).

Toys--The Portuguese market for toys and novelties has been growing more rapidly than expected. Demand for more sophisticated toys, such as robots, electronic toys, and coin-operated machine video games, has grown dramatically. Christmas ornaments and decoration articles are also becoming very popular. Almost no toys or novelties are manufactured locally. Totaly market demand for 1990 was around $60 million.

Sports--Demand for high-quality sporting goods is increasing as a result of a more stable economy and higher purchasing power. Due to heavy media advertising, U.S.-manufactured sporting goods are preferred over those of European competitors. Most promising sporting products are tennis and golf, basketball, baseball, and soccer equipment. Total market demand in 1990 was $90 million.

Franchising Services--There are around 150 franchising chains operating in Portugal. Since 1986, franchising services in this country have emerged slowly, and strong growth is expected in the years ahead. Recent reports show that franchising is a growing industry in Portugal, with an average annual growth projected at 15-20 percent through 1992. While the market is limited in terms of the size of its population, it is still attractive from a franchising point of view, due to the current healthy state of the Portuguese economy. Portugal should be viewed, in the context of the European Single Market in 1992, as an entry point into this market by U.S. franchisors.