From manufacturing to design: Lisbon's transformation into a fashion capital

Lisbon has emerged as Europe’s golden destination—a favourite among digital nomads and investors seeking new horizons. For years, the city has drawn waves of tourists and immigrants, spurred on by the fallout from Brexit and the pandemic. With a cosmopolitan atmosphere, manageable scale, affordable prices, mild climate, strategic location, and vibrant culinary scene, Lisbon attracts those enticed by its quality of life and untapped potential. This has created a thriving cultural, artistic, and fashion ecosystem where local craftsmanship melds with international trends. Meanwhile, expansion is tempered by government tax incentives to retain local talent and address gentrification issues, such as rising rents and the proliferation of short-term rentals. The pressing question remains: can Portugal strike a balance without succumbing to its own success?

Lisbon’s growth, though not frictionless, coincides with the evolution of an industry historically associated with textile and footwear manufacturing, supporting the nearshore production needs of an extensive range of European brands—from luxury labels and fast-fashion conglomerates to independent designers. In footwear alone, a cluster of 1,500 companies in the northern region around Porto produces 80 million pairs annually, with 90% exported to 100 countries, generating revenues of €2 billion. But for years, the Portuguese industry has strived to reposition itself, focusing on design and creative innovation led by its own brands and designers. Portugal is no longer content simply to follow fashion trends; it wants to create them.

“We’ve become an incredibly appealing country due to the lifestyle we offer, the quality of our products, and the profitability of our investments,” Paulo Gonçalves, marketing director of Portuguese Footwear Association Apiccaps, told FashionNetwork.com. He highlighted the economic uplift experienced across various sectors in recent years, sparking the interest of celebrities, investors, and luxury brands alike. “Lisbon, in particular, is increasingly positioned to capture the attention of a high-end clientele,” he added.

As evidence of this shift, French maison Dior opened its first boutique in Lisbon late last year. Situated on the tree-lined Avenida da Liberdade, which connects Marquês de Pombal Square with Rossio Square, this prime thoroughfare hosts accessible premium brands like Massimo Dutti, Cos, and Maje, as well as luxury leaders such as Louis Vuitton, Loewe, Burberry, Michael Kors, and the multi-brand Fashion Clinic, part of the local Amorim Luxury group owned by Paula Amorim, a former board member of Tom Ford International.

In addition, Spanish retail giant Inditex launched a sprawling 5,000-square-metre Zara store in September, featuring a dedicated home decoration floor and a café serving the iconic pastéis de nata.

Portuguese aesthetics are also making waves on social media. For months, “get ready with me” videos have proliferated, showcasing the style of Portuguese fashionistas: a daring mix of fabrics, colours, volumes, patterns, and bold accessories that brings a fresh, playful twist to the popular Scandinavian aesthetic. Viral reels and TikTok clips also reveal influencers’ favourite local brands and the stores where they source their vibrant wardrobes.

“In just a few years, Lisbon has become a hub for fashion and trends. More and more foreigners are coming to launch creative ventures or create content here,” remarked a local journalist and fashion week regular, expressing cautious optimism about a “stage-set city” that may be detached from the everyday reality of most Portuguese.

Lisbon’s fashion week, held under the ModaLisboa platform, held its 63rd edition from October 10 to 13, riding the wave of current trends to boost Portugal’s creative and fashion scene with a commitment to sustainable, responsible growth. “This edition has reached a significant size and generated great interest abroad. We’re back to the level of our best pre-pandemic seasons,” said Lígia Gonçalves, international press director for the event. This latest iteration of ModaLisboa offered a packed schedule of 22 shows and presentations, a pop-up store showcasing local brands, and various exhibitions and industry debates.

The event attracted a strong showing of celebrities, influencers, specialised media, and professionals from various creative fields, including fashion, photography, and the visual arts. “ModaLisboa serves as a valuable space for making interesting connections and networking,” noted two British entrepreneurs who relocated to Lisbon a year ago and recently launched a coworking space. Meanwhile, a Spanish modelling agent who has lived in the capital for over a decade praised the “strong market” for modelling in Portugal and the “buzz” generated by ModaLisboa, in which several professionals from his agency took part.

In a strategy to drive both business and tourism, ModaLisboa broke from the single-venue format of previous editions to stage events across multiple city locations. The newly opened Locke Hotel in Santa Joana, a converted 17th-century convent near Marquês de Pombal, served as a gathering spot for specialised media; while the freshly reopened Museu do Design welcomed guests after eight years of closure, hosting the Sangue Novo presentations, a showcase of emerging talent. Nearby, Pátio da Galé—just steps from Praça do Comércio—served as a grand stage for shows by established designers like Luís Carvalho and Dino Alves.

Among the highlights of the schedule, Constança Entrudo stood out. A Central Saint Martins graduate who trained with names like Balmain, Peter Pilotto, and Marques’Almeida, Entrudo is celebrated for her experimental designs and mastery of knitwear, often featuring innovations like frayed fabrics. She presented her latest collection, which included a collaboration with American boot brand Timberland, at the Lisa performance venue.

Designer João Magalhães, meanwhile, opted for an interactive performance at his studio, where attendees could engage with both the garments and the models, purchasing items on the spot as part of a “see now, buy now” concept. “Fashion should be more than just making things,” he stated, expressing his dissatisfaction with the industry’s current state and the need for new approaches. “As an artist, I feel a responsibility to convey deeper meaning through my work. I’m only presenting four new items. I refuse to produce large quantities until I sell what I’ve already made. Clothing isn’t an egg or a vegetable. It doesn’t spoil from one season to the next,” he declared.

Joana Duarte, a Kingston University alumna, continued her work in preserving Portuguese cultural heritage through her brand Béhen, a project devoted to protecting ancestral techniques, artisanal craftsmanship, and fabric upcycling. Meanwhile, minimalist streetwear label Hibu channelled the nostalgic essence of 1990s Mexican subculture “Modern Cholas” through unisex cuts and styles.

The appeal of this year’s event lay largely in the centralisation of Portuguese shows in the capital, focusing the attention of press and buyers on a single showcase. For years, ModaLisboa had shared the spotlight with Portugal Fashion, held in Porto and launched in 1995 by the National Association of Young Entrepreneurs (ANJE). However, due to financial challenges over the past two years, Portugal Fashion announced last summer that it would not hold an event in 2024. Representatives from Portugal Fashion told FashionNetwork.com they are “working on the future of the project,” though details remain undisclosed.

In this spirit, iconic footwear and accessories designer Luís Onofre jettisoned his customary Porto shows, bringing his eponymous brand to the Lisbon runways for the first time, making it one of this edition’s most notable attractions. As the president of Apiccaps, the association dedicated to the internationalisation and professionalisation of Portugal’s footwear industry, he also organised a collective showcase of “Portuguese Shoes” at the headquarters of advertising firm Havas. The presentation featured multiple brands, including Ambitious, Carlos Santos, Leather Goods by Becinto, Miguel Vieira, Sanjo, Penha, Valuni, and Tatuaggi.

“Porto is Europe’s most important fashion hub,” Gonçalves noted of the region, where the textile and footwear sectors employ around 300,000 people within a 50-kilometre radius. “We are working closely with both Portuguese and international designers. This year, Portuguese footwear has featured at the fashion weeks in London, Paris, and New York,” he explained, proudly pointing out that 50% of ModaLisboa’s designers chose Portuguese footwear for their shows. To further drive internationalisation, this edition of ModaLisboa included a delegation of American guests.

Regarding synergies with Lisbon Fashion Week, Gonçalves highlighted the importance of presenting a unified showcase of Portuguese fashion—clothing, footwear, and leather goods—to assert that “Portugal is here.” He concluded by saying that “we’re present where Portuguese footwear is needed. If we invest in sustainability or innovation, it makes sense to apply it to the creative sector. We’ve always been partners of ModaLisboa and Portugal Fashion, and if the latter returns, we’ll be there.”