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Portuguese 2021 Market Roundup

2021 was a rollercoaster in Portugal for the boardsports industry with ups and downs due to the Covid-19 pandemic. The country started the year in difficulties with a lockdown from mid-January until the end of March. Portugal led the ranking of the worst countries in the world in number of deaths and infections per million Inhabitants. The National Health Service was out of control with hospitals facing a tough reality that has never happened before. By Nuno Principe

The economy closed its doors again and retailers’ ability to adapt to the new tsunami was key to their survival putting again into practice the strategy they had used about a year ago: sales campaigns, sales through websites and social media, free shipping and door-to-door delivery. Although online sales registered a positive growth, they were lower than if stores were open. The government support came with Lay off for workers, financial support and tax payment delay for companies.

The economy reopening happened slowly and was divided into four stages. The beginning of April was important for the boardsports industry with surf/skate shops reopening their doors to start recovering from the loss. With Spring/Summer collection stocks ready and since boarders were able to practice again this was key for the movement of people inside shops and the increase in sales which allowed retailers to see sighs of relief.

Despite restrictions with a limited number of customers instore and stock issues, demand for hardgoods was high making brands and retailers try everything to find a way to have stock and boost sales.

Portugal’s ups and downs managing the pandemic had a new positive sign concerning the vaccination process reaching 70% in August and 86% in the beginning of November. This success saw the country leading the world ranking and allowed for a faster reopening of the economy. This sense of “security” allowed Portuguese to live freely at the end of summer with a big increase in tourism as well. There was a lack of stock in hardgoods and some products were already more expensive due to raw material issues and transportation costs.

Waimea Surf & Culture is a core shop located in Matosinhos founded in 1992 specializing in surfing, skateboarding and bodyboarding hardgoods. Since the store don’t have a website, they had to adapt to the most difficult period of the lockdown driving sales through Facebook and Instagram. At the same time, they benefited from government support such as layoffs and postponement of tax payments. “We had to adapt again to a new reality”, says the store owner, Joaquim Oliveira. “It was difficult times until April but there’s positive things to take from it. There are customers who have returned to core shops instead of buying on the internet or shopping malls. We give priority to our customers and we know they are guaranteed sales for us. Despite the stock problems that affect the industry, our customers know they can find here the gear they are looking for and we do everything to make them happy. They aren’t just numbers for us. We sell and share with them a social experience and an emotion linked to boardsports. This close relationship makes all the difference and can’t be found anywhere else”, he assures.

After reopening doors in April, they registered a boom in demand for hardgoods as well as a new trend. “We have strong connections with our suppliers for many years and this was key to having stock available. Since the Spring/Summer craziness there has been a big demand for beginner surfboards, wetsuits and skateboards. There’s a new trend which is female skateboarding with many girls wanting to learn. They buy product, clothes and want to take skateboarding lessons. They are much bigger consumers than men,” he explained.

The lack of raw materials leading to a shortage of stock, the exponential increase of transport costs and fuel is inflating prices. As an example: “A surfboard from an international brand that cost 399 euros can now cost 539 euros, if the customer wants a delivery in the way they did back in 2019. Otherwise, he will have to wait several months to receive the board at the cheaper price.”

There’s a lot of uncertainty in the air with the rising numbers of infected in several European countries and also Portugal. Is there a fifth wave coming? To make things worse Portugal is facing a political crisis and will have elections on January 30th. Let’s hope we don’t have a new lockdown and that 2022 will be better for everyone.