Fortunato Frederico

With a genuine smile and friendly features, this is how the generous Fortunato Frederico introduces himself, as he enters the room and settles into his armchair. Around him, memories abound, in the form of countless photographs that time does not dare to steal from him. Children. Famous figures. Ordinary people. In between sensual pictures, and others not so sensual, that allow the creation of an inspiring, even harmonious, atmosphere. The story of his life is here, symmetrically fitted into the walls of his office. And before you know it, the conversation starts to flow. In the first minute it is the disarming simplicity with which he speaks that captures our attention. Perhaps this comes from his humble roots, from his tortured past, or from the conquests he has accumulated. Or a bit of all of the above. He threw himself into the world of work at the age of 14, without knowing what fate had in store for him. He lost his father when he was just 15 days old. From a modest family, nothing has ever been handed to him. Today Fortunato Frederico speaks to V&G as the founder of the Kyaia group, but also as a father and citizen. Between his personal life, the footwear industry, tourism and social projects, find out more about the «common man» who refuses to retire and defies age.

At the age of 14 you entered the world of work, giving up your studies and leaving the seminary. At 24 you were called up to fight in the Portuguese Colonial War. You were stationed near Kyaia, Angola. Is that where the name of the Kyaia group comes from?
At the time, I was posted with the platoon to Kyaia and that’s where the name came from, yes. On those nights when we had nothing at all to do, we imagined what we would do in the future. I would think: «I want to make a shoe factory». That was the only thing I could see in my life.  

Back in Portugal, you went back to work. You joined the April 25th Revolution and entered political life as a candidate for the PCP. Did you quickly realise that this was not your vocation?
25th of April. Those were glorious times and many sleepless nights. I was a candidate for the PCP party in the first elections, yes. My first party was the Socialist Party but, at the time, I went to the PS headquarters and found them closed. I thought: «They not interested in the Revolution». Soon afterwards, I went down the street and noticed that the headquarters of the PCP was open. And that was that. So, I volunteered to work on the campaign and that’s how I got involved in political life. After that campaign, I needed to earn money and, well, that was the end of my political career. I was there for a year. I began to understand how that world worked and I said to myself: «This is not for me after all.» I had already been a boy scout and I realised that this was even worse.  

Without being able to speak English, you have visited half the world, you sell to many countries and you are one of the largest Portuguese footwear manufacturers. He created Kyaia in 1984 and the Fly London brand came about ten years later. Do you consider yourself a visionary?
No. I consider myself an ordinary man, but one who always wants to move up in life. To raise the bar, you have to have strength and willpower, otherwise it's impossible.  

How many companies does the group have?
It is made up of about twelve companies, in various areas. We manufacture shoes in Guimarães, where the head office is located, and in Paredes de Coura. Then there are the shops. At one point there were 80 of them, today around 15. Half a dozen years ago I took the decision to start closing down shops, as it is a very loss-making business. And so, the number of shops will come to a halt here.  

And how many people do you employ at the moment?
Around 400 workers. I don’t have an exact number because it’s all very volatile. Today they’re here, tomorrow they’re gone.  

We’re talking about an annual turnover in sales of...
We’ve had some changes. 2014 and 2015 were Kyaia’s high points, with annual sales of 64 to 65 million Euros. However, sales started to slow down, and that’s what led me, between 2021 and 2022, to release a partner who had worked with me since he was 15. He was in charge of the commercial part of the group and, as this was what took the company into decline, I spoke to him. I told him: «This is not what I hired you for, I gave you a stake, but it wasn’t so that we could become a small group. This is heading towards becoming the smallest footwear group in Portugal. I’ll find people to replace you and you go on with your life. » And, well, that’s what happened.

«We are [...] trying to conquer the domestic market»

What is your export volume? And what is your largest market?
At the moment, we still have between 85% and 95% export volume. We are also trying to conquer the domestic market, where at one point we had a turnover of three million Euros. With the overall decrease in the group’s turnover, we are around the one million mark.
The largest market is, and always has been, the English market, which rivals the American and Canadian markets. One year it’s better in one; another year it’s better in another, and so on. These are markets that dominate Kyaia’s progression. At the moment, we sell to 45-50 countries, but in the past, we have had as many as 60 countries. Our production capacity is also limited, we have to be realistic, because the lack of manpower significantly affects production. For example, if we didn’t have a group of 21 Venezuelans working in Paredes de Coura, we would have a factory with production problems.  

How has inflation affected the business?
It has rendered the dialogue between the group and its customers difficult. They think our product is expensive. We think it’s cheap. The truth is that either we earn enough to pay our workers, or it’s not worth having the factory open. Then, more understanding or less understanding customers come along. We don’t want to exploit anyone. I'm not in favour of increasing production, rather of improving it. We have to grow, not by increasing production, but by adding value. We don’t pollute the world that much, nor do we tire our workers out that much, and we end up adding more value to the product. That is why we are already present in areas such as artificial intelligence, the metaverse... 

Is internationalisation achieved through being present at trade fairs and in the digital world?
The best way is through trade fairs. We are present at all of them, including Milan. The philosophy is also no longer the same. At the moment, we are focusing on smaller fairs, because they are more economical. On the other hand, digital is very nice, but it is fundamental that there is a personal connection. In 2018/2019, the group launched the Overcube online sales platform, for the Portuguese footwear industry. The idea was to create a small Amazon in Portugal, which represented the national footwear industry in the world. I started the project with around 30 IT people, today there are four left. Why? There was the pandemic, the war and the economic crisis. Nobody wanted to support the project either, neither the industry, which considered it too modern, nor the government itself, which looked at it as if it were looking at a cow in the middle of a corn field. The circumstances of the Portuguese business world also left me alone. I invested and when I reached three million, I stopped. 

How do you promote critical thinking, innovation and sustainability in your organisation?
Well, we are not the critics, our customers are. They are the ones doing the buying. We always try to respect their wishes and needs. With regard to sustainability, we are present in some industry projects for sustainability. In the field of innovation, we have made serious investments in the metaverse. Why? The customers who, in 1994, used to queue up to buy our product, are now more than 30/40 years old. So, they have had enough. So, we need to find new customers. Commerce is facing a huge change. Here, in Portugal, we had shoe shop clients who made a lot of money, but their children wanted to pursue other areas, and so those customers almost no longer exist. I can’t sell shoes if there are hardly any shoe shops, so the idea was to put ourselves into the metaverse, to attract kids who are now 10/12 years old. By convincing them to play our games, we fix them to the brand, so that in 20 years’ time they will be attached to Fly London. It’s an investment. Maybe in a few years they will start buying our product. 

How does the national footwear industry present itself to the world?
Like all industries, it has to fight for its survival. And hard. Technically, the national footwear industry is well developed, it just doesn’t have the added value of the brand. For example, if we go to Felgueiras, we can see many industries paralysed, because they only work essentially for the major brands, which by the way are in crisis. We, Kyaia, as we have a great deal of autonomy (around 70%), are working at full capacity. In fact, we’re going on holiday now. So, today, the industry is well prepared, the problem is that the added value of the brand does not exist. The national industry has no brands.  

Do you usually wear Fly London shoes?
You have to like your girlfriend to go out with her (he laughs)! Yes, I wear Fly London shoes.

«I can’t sell shoes if there are hardly any shoe shops»

Footwear is a part of your life, but you also make room for tourism and social projects. You have invested in Quinta Eira do Sol, in Guimarães, and in local accommodation. Why enter the world of tourism and why in Guimarães?
I took the decision not to grow any further in industrial terms and to expand into housing. I have had Quinta Eira do Sol for more than 20 years. When Kyaia was at its peak, I was invited to travel to Japan to meet with a good client. They took me to the group’s headquarters and housed me in a farm that the factory had. It was a space that provided emotional ties, even in a business context. I liked what I saw and, when I got back to Portugal, I decided to invest in a similar farm. I began to realise that the farm could be used for profitable activities, including weddings. I even lived there for ten years, but convincing my wife to move in was difficult (laughs). So, I chose to set up the project. And it is in Guimarães, yes, because... have you ever seen a girlfriend living 30 km away from her partner? My city is my city. Everything I can do, I do it in my hometown. 

What still remains to be explored in the field of tourism in Portugal?
I am not a tourism specialist; I am a resistant one. But I can say that instead of turning the Algarve into a flea market, we should have made it into something that can be seen abroad, with value. The Feira da Ladra flea market in Lisbon is enough. 

You are the creator of the Oliveira Frederico Foundation, which is very special to you. Would you like to tell us about the concept?
While we're alive, we have to have these principles. I thought that my son, who is no longer with us, should be talked about, even after my death. So, I decided to create the foundation. I have a daughter who wants for nothing, but who is not healthy enough to continue my role, and so the foundation will look after the assets I have created after my wife and I are gone. The mission of the Oliveira Frederico foundation begins with my testimony. When I was 10 years old, I completed 4th grade, in Donim, and was given a prize for best pupil. There was a very nice lunch, I remember it well. Martins Sarmento promotes this prize and, in fact, the best pupil of the municipality comes to the city at the end of the year. I came, just like those good students. In the meantime, the years have passed by. When I set up the factory, I met the teacher Santos Simões, who told me about the prize I had won in the past. He ended up giving me a book with my name on it. It was then that I thought of creating the foundation. My son had already passed away and I decided to create the project in the name of Frederico, creating a prize for the best students. So, every year, the best pupil from each of three parishes comes to receive the prize. This year, they have already been awarded a thousand euros. These are pupils who will always remain in our care.

«We have made serious investments in the metaverse»

Are you now a fulfilled person, or do you still have dreams?
I still want to do more. My ambition is to make Fly London the number one brand in Portugal. It is, in fact, growing. 

As such an active man, what do you plan to do in your retirement?
I don’t want to retire; I’ll keep working until I die (he laughs)!  

Is «Don't Walk, Fly» your life motto?
It is. That is my dream.