The Internationalization of the Portuguese Textile Sector into the Chinese Market: Contributions to Destination Image

Several factors, such as globalization and market saturation, drive many companies to pursue internationalization. Entering foreign markets has become crucial, not only because of the opportunities available but also due to its potential contribution to enhancing the destination image. Given the growing interest in emerging markets, particularly China, and the limited research available on this subject, this study aims to investigate the internationalization of Portuguese textile companies into the Chinese market. The Portuguese textile sector, renowned for its high-quality standards and increasing international demand, represents a compelling case for analysis. Thus, the following research question was formulated: "What are the factors determining the success of Portuguese textile companies in the Chinese market?" To address this research question, a literature review was conducted focusing on internationalization processes, specific characteristics of the Chinese market, and the positioning of the Portuguese textile industry within this context. A qualitative approach was employed, consisting of exploratory semi-structured interviews divided into two complementary studies. The first involved Portuguese textile companies already operating in China, while the second included firms planning future market entry. Findings from the first study indicate that Portuguese companies currently operating in China primarily target the luxury segment, possess significant international experience prior to market entry, and rely predominantly on local agents. Results from the second study reveal that companies planning to enter the Chinese market also prefer entry via local agents, emphasizing innovation and distinctive quality as their competitive advantage, specifically targeting a niche luxury market.