It’s a trying time for US-based fashion brands that produce overseas. As tariffs weigh on operational expenses and consumer confidence, brands’ long-term plans are facing disruption as regulation changes rapidly.
On 4 June, Vogue Business and APICCAPS brought together industry insiders to glean insights into how brand founders are navigating the current moment — and why Portugal is a compelling option for labels seeking to stand out.
Jonathan Cohen, eponymous brand founder and creative director, and Chris Echevarria, founder and creative director of Blackstock Weber, alongside APICCAPS director Paulo Gonçalves, joined Vogue Business reporter Madeleine Schulz for a conversation about operating on the global stage, at what feels like a more pressing time than ever.
“We believe in the free, fair and balanced international trade, and for the first time in our history, we are watching a negotiation live on national television,” Gonçalves said. “These are strange times.”
For Cohen, the pandemic was the turning point that drove him to look beyond a single production locus. “Most of our production was done in New York, and we quickly learnt that you can’t have all your eggs in one basket because the world has become extremely unpredictable,” he told Wednesday’s attendees.
Echevarria, who produces in Portugal, has also changed up his production since founding his brand in 2017. He got the idea to leave England for the southern European country’s sunnier shores from a barber shop appointment. (This appointment got him his current CEO, too.) The man next to him overheard a frustrated conversation, and asked if Echevarria needed a new place to make shoes. “That guy is now my CEO,” he said. “I got to experience the joys of Portugal through him first. Portugal is much easier to work with, very willing to go the extra mile to get you the things that you need. And they’re just very appreciative of your business. And the prices are fair.”
Gonçalves can attest, and is optimistic about Portugal’s rise. “We believe that the space in the market for a small player like Portugal, specialising in good products with excellent design and fair prices,” he said. “For that reason, we believe that our moment has arrived.” APICCAPS has so far invested €600 million in the industry — a sign of confidence, Gonçalves said.
Finding where to produce can be hard, especially amid fast-changing regulation. For Cohen, it’s all about opportunities for verticality. “We work a lot with our embroideries in India now, but it’s not just embroideries. It’s very much a vertical situation; where they have the fabrics there, they do the embroidery, they do the cut and sew — so you get the finished product there,” Cohen explained. Were he to make the product in New York, he added, it would be a different stop for each. Verticality means better prices, better quality control and better waste management.
Technology and innovation is also key to both price and quality, the panelists agreed. APICCAPS spearheads project FAIST, which brings together a group of 60 partners from universities, technological centres, footwear companies and IT firms to develop solutions for footwear production companies, from automation to robotics. “We can optimise the process,” Gonçalves said, noting the time and energy savings. “It’s one of the reasons international brands are arriving in Portugal.” Echevarria jumped in: “Faster is always better.”
As for planning ahead, both Cohen and Echevarria emphasised the importance of flexibility. Echevarria is focused on when to bring goods in. After seeing the 50 per cent European tariff threat, he maximised his order quantities. “If I want to bring in more merchandise before a certain period, I can bring it in before it gets tariffed even heavier than it would have if I’d waited until after,” he said. “I’m just reading the Trump barometer at this point.”
For Gonçalves, there are two main responses: brands are either posting orders, or telling producers to “run”. Seventy per cent of Portugal’s production is for international brands, so the industry is well equipped, Gonçalves flagged. “We have the skills, we have the technology, we have the know-how, and the majority of the time, brands with young designers, they have a fresh vision of the market. It’s a win-win strategy.”
