eu market survey 2005

Transcription

EU MARKET SURVEY 2005
Outerwear
including leather
garments
EU MARKET SURVEY 2005
OUTERWEAR
including LEATHER GARMENTS
Compiled for CBI by:
Drs. Jan P. Servaas
June 2005
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PHOTO COURTESY: Rimini BV, The Netherlands
1
CONTENTS
REPORT SUMMARY....................................................................................................... 5
INTRODUCTION ........................................................................................................... 9
1
PRODUCT CHARACTERISTICS.............................................................................. 12
1.1
Product groups .............................................................................................. 12
1.2
Customs/statistical product classification ........................................................... 15
2
INTRODUCTION TO THE EU MARKET ................................................................... 17
3
CONSUMPTION.................................................................................................... 20
3.1
Market size EU-25 .......................................................................................... 20
3.1.1 Germany .................................................................................................. 21
3.1.2 United Kingdom ......................................................................................... 23
3.1.3 Italy......................................................................................................... 25
3.1.4 France...................................................................................................... 27
3.1.5 Spain ....................................................................................................... 29
3.1.6 The Netherlands ........................................................................................ 30
3.1.8 Belgium .................................................................................................... 32
3.1.9 EU-10 countries ......................................................................................... 33
3.2
Market segmentation ...................................................................................... 34
3.3
Consumption patterns and trends ..................................................................... 40
4
PRODUCTION ...................................................................................................... 42
4.1
EU clothing production .................................................................................... 42
4.2
Delocalisation of clothing production ................................................................. 44
5
IMPORTS............................................................................................................. 45
5.1
Total imports ................................................................................................. 45
5.1.1 EU-25 imports ........................................................................................... 45
5.1.2 Germany .................................................................................................. 48
5.1.3 United Kingdom ......................................................................................... 50
5.1.4 France ..................................................................................................... 52
5.1.5 Italy......................................................................................................... 54
5.1.6 The Netherlands ........................................................................................ 56
5.1.7 Spain ....................................................................................................... 58
5.1.8 Belgium .................................................................................................... 60
5.2
Imports by product groups .............................................................................. 62
5.2.1 Imports of knitted outerwear ....................................................................... 62
5.2.2 Imports of woven outerwear ........................................................................ 65
5.2.3 Imports of leather garments ........................................................................ 68
5.3
The role of developing countries ....................................................................... 69
6
EXPORTS............................................................................................................. 71
6.1
EU-25 exports ............................................................................................... 71
6.1.1 Italy......................................................................................................... 73
6.1.2 Germany .................................................................................................. 73
6.1.3 France...................................................................................................... 73
6.1.4 United Kingdom ......................................................................................... 73
6.1.5 The Netherlands ........................................................................................ 73
6.1.6 Spain ....................................................................................................... 74
6.1.7 Belgium .................................................................................................... 74
6.2
Re-exports .................................................................................................... 74
2
7
TRADE STRUCTURE ............................................................................................. 75
7.1
EU trade channels .......................................................................................... 75
7.1.1 Sales intermediaries ................................................................................... 75
7.1.2 Retailers of outerwear ................................................................................ 76
7.2
Trade structure in major EU countries ............................................................... 78
7.2.1 Germany .................................................................................................. 78
7.2.2 United Kingdom ......................................................................................... 80
7.2.3 Italy......................................................................................................... 83
7.2.4 France ..................................................................................................... 84
7.2.5 Spain ....................................................................................................... 86
7.2.6 The Netherlands ........................................................................................ 88
7.2.7 Belgium ................................................................................................... 90
7.3
Distribution channels for developing country exporters ........................................ 92
8
PRICES................................................................................................................ 94
8.1
Price developments ........................................................................................ 94
8.2
Sources of price information ............................................................................ 95
9
EU MARKET ACCESS REQUIREMENTS .................................................................. 96
9.1
Quality and standards for outerwear ................................................................. 96
9.2
Non-tariff trade barriers.................................................................................. 96
9.2.1 Product legislation ..................................................................................... 96
9.2.2 Market requirements .................................................................................. 97
9.2.3 Occupational health and safety .................................................................... 98
9.2.4 Environmentally sound production ................................................................ 98
9.2.5 Packaging, size-marking and labelling ........................................................... 98
9.3
Tariffs and quota...........................................................................................103
9.3.1 Tariffs .....................................................................................................103
9.3.2 Quota restrictions .....................................................................................104
9.3.3 Other barriers...........................................................................................104
10 EXTERNAL ANALYSIS: MARKET AUDIT .............................................................. 110
10.1 Introduction .................................................................................................110
10.2 Market developments and opportunities for outerwear........................................110
10.3 Competitive analysis .....................................................................................113
10.4 Sales channel assessment ..............................................................................113
10.4 Logistics ......................................................................................................116
10.5 Price structure ..............................................................................................117
10.6 Product profiles.............................................................................................119
11 INTERNAL ANALYSIS: COMPANY AUDIT ........................................................... 125
11.1 Manufacturing ..............................................................................................125
11.2 Logistics ......................................................................................................127
11.3 Design.........................................................................................................128
11.4 Marketing and sales.......................................................................................128
11.5 Financing .....................................................................................................129
11.6 In-house capabilities......................................................................................130
12 DECISION MAKING ........................................................................................... 132
12.1 SWOT and analysis .......................................................................................132
12.2 Strategic options and objectives......................................................................133
13 EXPORT MARKETING......................................................................................... 135
13.1
Matching products and the product range ........................................................135
13.2
Building up a relationship with a suitable trading partner ...................................135
13.3
Drawing up an offer......................................................................................136
13.4
Handling the contract ...................................................................................137
3
13.5
Sales organisation and promotion ...................................................................138
Appendix 1 DETAILED CLASSIFICATION OF OUTERWEAR BY HS CODE .................. 140
Appendix 2 DETAILED IMPORT/EXPORT STATISTICS, 2001-2003 ......................... 147
Appendix 3 USEFUL ADDRESSES ............................................................................ 151
3.1
Standards organisations.................................................................................151
3.2
Sources of price information ...........................................................................151
3.3
Trade associations.........................................................................................152
3.4
Trade fair organisers .....................................................................................153
3.5
Trade press ..................................................................................................155
3.6
Other useful addresses ..................................................................................156
Appendix 4 LIST OF DEVELOPING COUNTRIES....................................................... 159
Appendix 5 USEFUL INTERNET SITES..................................................................... 160
Update EU Market survey ‘Outerwear including leather garments’ (June 2004)
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REPORT SUMMARY
This EU Market Survey ‘Outerwear including Leather Garments’ is intended to serve as a basis
for further market research: after you have read the survey it is important to further research
your target markets, sales channels and potential customers.
For more detailed information on market research, reference is made to CBI’s Export Planner
(2000) and CBI’s Your Guide to Market Research (2003). A fairly complete overview on
legislative and non-legislative requirements based on environmental, consumer health and
safety and social concerns is given in CBI’s AccessGuide at http://www.cbi.nl/accessguide .
Seasonal fashion information can be obtained from CBI’s Fashion Forecasts. These sources of
information are also available on the CBI website.
The major seven national markets within the EU for outerwear are highlighted: United Kingdom,
Germany, Italy, France, Spain, The Netherlands and Belgium. These countries are the leading
consumers of outerwear and, in another sequence, the leading (total) importers. Besides the
seven selected countries, attention is paid to the main developments in the ten accession
countries, especially to Hungary, Poland and the Czech Republic.
Product groups
The following product categories are highlighted:
• formal clothing, including coats and raincoats, suits and ensembles, indoor jackets,
(other than cotton) trousers, dresses, skirts and blouses;
• casual wear, like outdoor jackets, shirts, jumpers, cardigans, pullovers made of cotton,
wool, fleece etc. and cotton trousers other than denim;
• basic leisurewear, like T-shirts and polo shirts, tops and bodies, shorts/bermudas, jeans,
jackets and sweaters;
• active sportswear, like track suits, jogging suits, ski-suits, shorts, sports branded Tshirts etc.
• leather garments, mainly leather jackets and coats and, to a much lesser degree, other
items like trousers, skirts, shirts, dresses and bodywarmers.
Market size
Consumption of clothing in the EU-25 followed a growth of 5 percent during the period 2001-2004,
of which almost 2 percent in 2003-3004 to € 274 billion in 2004, of which 82 percent was
outerwear. Clothing consumption in the ten new EU countries (since 1 May 2004) showed a much
stronger increase (+26% during the period 2001-2004) than the EU-15 countries (+5%), but total
consumption remained rather low, as did the per capita consumption.
Germany is still the most important country in clothing consumption in the EU, despite the
continuing decrease. The difference between Germany and the UK and Italy has become smaller.
Five countries (Germany, UK, Italy, France and Spain) account for 76 percent of EU-25 clothing
consumption.
Women’s outerwear is the leading sector of the clothing market in all markets surveyed. In
2004, the share of the total value of women’s outerwear sales varied in the major EU countries.
Women are considered to be more sensitive to fashion and buy more impulsively than men. In
many EU countries the demand for traditional wear is declining in favour of casual and
leisurewear, which implies higher increasing sales in terms of volume rather than in terms of
value.
Production
With exports weaker and import volumes up, the EU-25 turnover in clothing production declined by
almost 6 percent in 2004, on top of a 6 percent decline in 2003. Preliminary figures for 2005
indicate that production is decreasing again.
The stagnation of demand - both domestic demand and external demand - and the increase of
production costs explain why the total turnover in the clothing sector declined.
The number of employees in the EU apparel sector fell by 6 percent in 2004 to 1.1 million, of which
around a third is active in the knitting sector. The number of enterprises decreased, too.
Italy is the dominant clothing producer in the EU-15 with 36 percent of total EU turnover in
2004, followed by France (12%), Germany (11%), Spain (8%) and UK (7%), which indicates
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that 74 percent of the EU-15 garment industry is concentrated in these five countries. The EU
clothing industry is dominated by a large number of small and medium-sized enterprises; the
average company had 16 employees in 2004, the same number as in the previous year.
Price competition among suppliers has intensified, resulting in a very slow growth in production
prices.
Imports
The 25 EU member states imported outerwear including leather garments valued € 71.7 billion
in 2003, of which 37 percent came from other EU countries.
EU-15 outerwear imports have slowed markedly in recent years: they rose in value in 2001
(4%) and 2002 (1%) then fell in 2003 (2%) to € 67.4 billion. In volume terms, imports carried
on rising: 14 percent in 2003, reaching almost 4 million tons.
The average import price fell by 14 percent in 2003, caused by factors like an intensified price
competition among suppliers and a 19 percent cheaper US dollar in 2003 (in terms of euros)
than in 2002.
Germany remained the leading importer despite a fall in imports of 9 percent in the period 20012003, with an import share of 24 percent in terms of value, followed by the UK (18%), France
(15%) and Italy (10%). Developments in imports of outerwear vary strongly per EU country. This
depends on several factors like size and structure of domestic production of outerwear, the
possibilities and volume of re-exports and developments in demand. EU countries which accounted
for very strongly decreasing imports (> 9%) were Germany and The Netherlands, while countries
with booming imports (between 10-20%) were Spain and Italy.
China remained the leading outerwear supplier to the EU before Turkey and Italy. Total imports
from China increased considerably in the period 2000-2003. In 2000, 9 percent of EU imports (in
terms of value) came from China; this percentage increased to 12 in 2003. Turkey passed Italy in
2001 and became the second supplier to the EU with a share of 9 percent in 2003. Italy (7%)
ranked 3rd before Germany (7% too). Romania (5%) passed Belgium and became the fifth supplier.
Belgium (5) on the 6th place was followed by Bangladesh, The Netherlands, France, Morocco,
Tunisia, India and Portugal.
Just over 37 percent of the total value of EU-15 outerwear imports came from other EU-15
countries in 2003, against 41 percent in 1999. Total EU-15 imports from developing countries
increased in terms of volume (+16%) and value (+3%) in the period 2001-2003. The different
areas showed varied patterns:
• Growing imports (+ 4% in value terms) came from Asian developing countries, like
China and Bangladesh and to a lesser degree from India and Pakistan, despite falling
imports from countries like Indonesia, Thailand, Sri Lanka, Vietnam and Cambodia. This
area accounted for 59 percent of total imports from developing countries;
• Imports from Mediterranean countries, like Turkey, Morocco and Tunisia increased by
almost 5 percent in 2002 and decreased a very limited 0.2 percent in 2003. It has to be
noticed that Turkish exports to the EU grew considerably (24% during 2001-2003),
while exports by Morocco and Tunisia decreased respectively 7 and 9 percent during the
same period. Mediterranean countries accounted for 38 percent of total imports from
developing countries;
• Imports from ACP (Africa, Caribbean and Pacific) countries fell by 19 percent in 2002 and
by 11 percent in 2003. These imports were limited to 3 percent of total imports from
developing countries. Major suppliers were located in Mauritius and Madagascar.
Exports
The 25 EU member states exported outerwear including leather garments valued almost € 50.0
billion in 2003, of which 32 percent went to countries outside the EU.
The EU-15 member states exported € 42.6 billion in 2003, representing a decline in value of 4
percent in 2003 after a small growth in 2002. The leading EU exporter of outerwear was Italy
(27% of total EU exported value), followed by Germany (17%) and France (11%).
EU exporters suffered, just like in 2002, from the appreciation of the euro against the US dollar.
6
Almost 69 percent of total EU exports concerned exports to other EU countries in 2003. The
main destinations outside the EU were Switzerland (5% of total EU exports and 16% of non-EU
exports), the USA (14% of non-EU exports), Japan (10%), Russia (6%), Romania (4%),
Norway (4%) and Hong Kong (3.5%). Exports to Romania covered mainly parts of garments as
part of outward processing trade/OPT.
Woven outerwear accounted for 60 percent of EU exports (in terms of value) and knitted
outerwear for 40 percent in 2003. Leading export product groups in the outerwear sector were:
woven trousers and shorts (share of 18%), knitted jerseys, pullovers etc. (15%), T-shirts (11%),
woven suits and ensembles (6%) and woven shirts and blouses (7%).
Trade structure
Manufacturers of outerwear brands sell directly (via sales representatives, sales offices or
showrooms) to the retail trade or indirectly via agents or wholesalers. The search for lower
production costs led to the trend where suppliers have their outerwear made abroad. The role of
wholesalers/importers slightly declined, while the role of clothing multiples and, to a lesser degree,
buying groups or franchise formula increased.
Distribution channels differ greatly across the EU member states. The UK has a high concentration
of distribution, which is reflected in the relatively low market share of independent retailers. The
southern member states, Portugal, Italy and Spain, however, have high market shares for
independent retailers. These retailers buy mainly from manufacturers and wholesalers/importers,
contrary to Germany and The Netherlands for instance, where many independent retailers are
members of buying co-operations.
Specialists (independents and multiples) accounted for 57 percent of clothing sales, but nonspecialised distributors play a growing role. Other important developments are the increasing
integration in the value chain, increasing concentration and growing internationalisation. This also
means increasing competition between branded labels, private labels and even non-branded
products.
Most of the major retail organisations set up their own buying organisations in low-labour-cost
countries. This means that retailers are able to bypass domestic wholesalers and/or manufacturers
by means of direct imports.
Some selected opportunities for exporters in developing countries
¾ Germany is still the greatest market for outerwear in the EU, but consumer expenditure
has decreased. The highest growth rates in the EU-15 are in the UK and Spain In the
new EU-10 countries, Hungary, Czech Republic, Slovenia and Poland offer greater scope
for market growth. Clothing expenditure in Germany and The Netherlands is expected to
recover in 2006, while the UK and Spanish market will remain strong;
¾ Demand for outerwear in the EU will continue to increase slightly in the coming years.
The number of garments purchased per head of population will continue to rise but
prices will not follow this growth rate;
¾ Expectations for consumer expenditure on outerwear for the period 2005-2007 are
moderately optimistic, for several reasons like demographic developments, growing
interests of consumers in fashion and expected growth of consumer expenditure;
¾ Imports from developing countries of casual and leisure product groups like T-shirts,
sweaters, sportswear, jeans and other cotton trousers increased considerably in volume
but against much lower prices;
¾ The agreement between the EU and China (10-06-05) to limit Chinese exports to the EU
of among others sweaters, jumpers etc., T-shirts , men’s trousers blouses and dresses
will give possibilities for other developing countries, because the Chinese quota are
already utilised or will be utilised soon;
¾ Developments in the retail sector, like a wide availability of clothing at competitive prices
and a growing concentration at retail level, lead to an increased demand for fashionable
products against low prices. At the same time, developments in EU production lead to a
further sourcing of basic products in low-cost countries and, probably, of products with a
higher design content. The largest middle range market segment may offer good
opportunities;
7
¾
The decline of domestic manufacturing has led to a more internationally oriented trade in
textiles. The keen competition on the EU market will steadily increase and this leads to
further possibilities for exporters in low-cost countries.
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INTRODUCTION
This CBI EU market survey ‘Outerwear including Leather Garments’ consists of two parts: EU
Market Information and EU Market Access Requirements (Part A), and Export Marketing
Guidelines (Part B).
Market Survey
Part A
EU Market Information and Market Access Requirements
EU Market Information (Chapters 1-8)
Product characteristics
Introduction to the EU market
Consumption and production
Imports and exports
Trade structure
Prices
EU Market Access Requirements (Chapter 9)
Quality standards
Non-tariff trade barriers
Product legislation
Market requirements
Occupational health and safety
Environmentally sound production
Packaging, marking and labelling
Tariffs and quotas
Part B
Export Marketing Guidelines: Analysis and Strategy
External Analysis (market audit)
Internal Analysis (company audit)
(Chapter 10)
(Chapter 11)
Opportunities & Threats
Strengths & Weaknesses
Decision Making (Chapter 12)
SWOT and situation analysis:
Target markets and segments
Positioning and improving competitiveness
Suitable trade channels and business partners
Critical conditions and success factors (other than those mentioned)
Strategic options & objectives
Export Marketing (Chapter 13)
Matching products and product range
Building up a trade relationship
Drawing up an offer
Handling the contract
Sales promotion
Chapters 1 to 8 of Part A profile the EU market for outerwear including leather garments in the
EU. The emphasis of the survey lies on those products, which are of importance to developing
country suppliers. The major national markets within the EU for those products are highlighted.
Furthermore statistical market information on consumption, production and trade, and
information on trade structure and opportunities for exporters is provided.
Chapter 9 subsequently describes the requirements, which have to be fulfilled in order to gain
market access for the product sector concerned. It is furthermore of vital importance that
exporters comply with the requirements of the EU market in terms of product quality,
packaging, labelling and social, health & safety and environmental standards.
After having read Part A, it is important for an exporter to analyse target markets, sales channels
and potential customers in order to formulate export marketing and product strategies. Part B
therefore aims to assist (potential) exporters in developing countries in their export decisionmaking process.
9
After having assessed the external (Chapter 10) and internal environment (Chapter 11), the
(potential) exporter should be able to determine whether there are interesting export markets for
his company.
In fact, by matching external opportunities and internal capabilities, the exporter should be able to
identify suitable target countries, market segments and target product(s) within these countries,
and possible trade channels to export the selected products (Chapter 12).
Chapter 13 subsequently describes marketing tools, which can be of assistance in successfully
achieving the identified export objectives.
The survey is interesting for starting exporters as well as well as exporters already engaged in
exporting (to the EU market). Part B is especially interesting for more experienced exporters
starting to export to the EU and exporters looking for new EU markets, sales channels or
customers. Starting exporters are advised to read this publication together with the CBI’s Export
Planner, a guide that shows systematically how to set up export activities, also the interactive tool
on the CBI website ‘Export marketing plan’.
10
PART A
EU MARKET INFORMATION
AND
EU MARKET ACCESS REQUIREMENTS
11
1
PRODUCT CHARACTERISTICS
1.1
Product groups
This survey "Outerwear" includes knitted and woven outerwear, sportswear (excluding swimwear),
clothing accessories (gloves, scarves and ties) and leather garments for men, women and children.
Besides the product classifications based on gender and age and by product types, we explain
differences between product groups according to clothing behaviour.
1.1.1 Classification by gender and age
Outerwear for women and girls includes knitted and woven blouses/shirts, dresses, skirts, suits
and ensembles, trousers, shorts, indoor jackets, outdoor jackets like anoraks etc., coats and
raincoats.
Outerwear for men and boys includes knitted and woven trousers/jeans, shorts, suits, indoor
jackets, outdoor jackets like anoraks etc., coats and raincoats. Knitwear for men/boys and
women/girls includes T-shirts, polo shirts, jerseys, sweaters, pullovers, cardigans etc.
Outerwear for babies (0 - 2 years and a body height not exceeding 86 cm) includes jackets, coats,
one and two piece suits, trousers, dresses, pullovers, blouses, T-shirts, caps, sets, gloves and
socks. Underwear for babies, as well as products like blankets, sheets, tights etc. are not covered
in this report.
1.1.2 Classification by type of product
Knitted and woven outerwear
Short descriptions of the main (textile) product groups under review are given below.
• Coats and raincoats. Coats can be described as hip-length to full-length outerwear with
sleeves designed to be worn over other clothing for protection against cold/wet. Besides
various lengths, there are variations in general use: fitted, straight or full (swing back)
silhouette, buttoned (single- or double-breasted) or wrapped, with varying hem lengths and
design details. Types of coats are overcoat or topcoat, car coats, capes, cloaks etc. Under
the raincoat category come, among others: all-weather coat (waterproofed or waterrepellent coat sometimes made with zip-in linings, usually of acrylic pile, to adapt to various
temperatures); mackintosh (rubberised or plastic waterproof raincoat with a cape); trench
coat and rain cape. It should be noted that coat types like Burberry and London Fog are
based on registered trademarks.
• Outdoor jackets (anoraks etc.); in statistics, in the trade and among consumers,
outdoor jackets are referred to under various different names, like anoraks, wind-cheaters,
wind-jackets, ski-jackets, blouson jackets, bomber jackets etc. Casual jackets generally
come in two lengths: full jackets length or the shorter (waist-length) blousons or bomber
jackets. Outdoor jackets come in a wide range of materials: textile fabrics as well as
leather/suede. Textile fabrics cover common fabrics like cotton, polyester, wool and several
mixtures and high-performance fabrics and/or finishes such as Sympatex, Gore-Tex,
Aquatex, Polartec, Isotex, Teflon etc.
• Suits and ensembles include combinations of jacket and trousers and, possibly,
vests/waistcoats for men designed to be worn together, either in matching fabrics and/or
colours (suits eventually with vest/waistcoat) or contrasting fabrics (ensembles). For
women, the combination can be extended to jackets and/or trousers, dresses and/or
jackets, jackets and/or skirts and dresses and coats.
• Indoor jackets are short coats worn by men and women. These can be single-breasted,
double-breasted, zippered or wrapped; dressy, casual or functional depending upon design
and fabrics used. Another name used for an indoor jacket is blazer.
• Dresses are made of lighter weight fabrics, synonymous for robe, frock or gown. Current
fashions include among others: A-line, blouson, coatdress, jumper (one-piece dress without
sleeves and with lower neckline), wrap, cardigan dress, shirtdress, step-in dress and the
princess (classic-styled dress with vertical panels that fit the body and flare in the skirt).
• Skirts, current skirt styles include among others: A-line (with flare, wider at hem than at
hip), straight line (fitting the waist and hip), culotte (a skirt-pant variation), wrap and
circle.
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•
•
•
•
•
Jeans are defined as being a type of construction rather than a particular type of fabric
and, therefore, jeans made from fabrics such as corduroy and other cotton fabrics are
covered in the survey, as well as denim. Most denim is still 100% cotton, although a small
volume of polyester/cotton denim is produced and traded worldwide. Denim accounts for an
estimated 97% of the jeans market, however.
Trousers other than jeans; in particular the popularity of casual trousers (chinos) and
leisure trousers (workers) is high, while corduroy represents a small part of the market.
Fabrics of wool and polyester/wool are used for formal trousers for men.
Shirts, traditionally the shirt market covers two main categories: conventional or dress
shirts and casual or leisure shirts, the latter also referred to as sports shirts. Generally
spoken, dress shirts are worn with a tie under a suit or indoor (tailored) jacket or blazer in
office locations and on more formal social occasions. This type of shirts is mostly longsleeved of woven cotton or cotton/polyester with a collar for a tie and buttons down the
front. Leisure shirts, as their name implies, are likely to be worn in less formal situations in
the home, and for leisure activities. More and more leisure shirts are also worn to work and
are finding acceptance in dress shirt situations.
Jerseys, polo and sweatshirts etc.; this category of knitwear can be divided into heavy
(more than 600 grams per article) and lightweight products. The former covers jerseys,
pullovers, cardigans and waistcoats (for winter use mainly wool or wool mixes), the latter
covers fine knit roll, polo or turtle neck jumpers and pullovers, which can also be worn in
combination with suits and indoor jackets.
T-shirts can be used for many purposes. Functions vary from outerwear especially in
summer months (plain, striped, printed), underwear (mainly plain white) especially in
winter months, part of a sport-outfit (plain with logo) to nightwear (oversized). About 90%
of T-shirts is made of cotton.
Leather garments
Leather garments include:
• Jackets and coats
• Other leather garments, like trousers, skirts, shirts, waistcoats, dresses and body
warmers.
Besides by type of product, the market for leather garments can be divided into combinations of
the following criteria:
Leather used:
variety of origin (sheep/lamb, goat/kid. pig/piglet, cow/calf etc.)
Finishing techniques: variety of finish (suede, split, shammy or chamois, nappa, nubuck etc.)
Quality/price ratio:
low, medium (sometimes classified into lower and higher medium)
and high
Fashion:
based on materials, style and colour, a difference can be made
between classic fashion, casual fashion and highly individualistic fashion
End users:
women's and men's wear and to a lesser degree children’s wear
Functional aspects:
some categories of consumers prefer functional aspects above
fashion aspects in leisure and/or profession, like for motorcycle
driving (protective aspects) and for sexual activities (gay- and SMscene).
All aspects of market information about leather garments are difficult to obtain.
Active sportswear
Sportswear (without the addition active) can be divided into leisurewear, street wear, other-thansmart casual wear and active sportswear. In many cases active sportswear is used for other
purposes, like sport jackets (including body warmers, anoraks, wind jackets and ski jackets);
many of today's outdoor clothing (waterproof) sport jackets are multifunctional and designed to be
worn all year round. Greater use is being made of materials with brand names like Goretex,
Sympatex and Tactel. Micro-fibres allow more comfortable, lightweight, breathable and fashionable
products to be made, which at the same time do not compromise on performance. Many sport
jackets are now being worn as street fashion or are used for leisure activities like walking, fishing,
sailing or tracking.
13
Items like shorts/bermudas, sports shirts, polo shirts, sweaters, spencers, pullovers and vests,
whether or not incorporating specific sports requirements, are used as leisurewear and, with the
mentioned requirements, as active sportswear. Another typical active sportswear item is fitness or
aerobics suits.
Active sportswear, developed and mainly bought for specific sports activities, is heavily branded
and can have an impact on leisure and casual wear fashion, just like basketball wear and tennis
wear. Sports like football, soccer, rugby and baseball shirts/jerseys and trousers have also become
popular as fashion garments.
Specific active sportswear items are:
• Track suits and jogging suits
The variety in materials and styling of tracksuits is wide. Track and jogging suits were one of
the fastest growing sectors of the sports clothing market in the early 1990s, due to the use of
track suits as street wear. Nowadays, the popularity of tracksuits as street wear is decreasing
considerably, while the usage of jogging suits for home wear (cotton as well as polyester) has
increased. The influence of international brands in materials used and fashion is enormous.
• Sports dresses, sports skirts and sports trousers, for instance footless maillots/leggings,
cyclist pants.
• Special sports suits, for instance surf suits, sail suits, ski overalls, gymnastics and
fitness/aerobics suits.
Skiwear consists of padded, waterproof jackets and stretchable pants or salopettes. For
many years, skiwear has benefited from the trend to wear ski anoraks as leisurewear. Most
manufacturers have sought to widen the customer base by producing multi-purpose
clothing. Today there are three major types of skiwear sold on the market: non-branded,
retailers' brands (C&A, H&M etc.), and branded (specialist) skiwear. In the branded market,
the leaders are Atomic, Tenson, Ellesse and Lutha. The specialist market is dominated by
Killy (France), Berghaus (United Kingdom) and Head (Germany). Ski routines like
snowboarding have a great impact on young fashion.
Fitness clothing has been one of the major growth markets of the last decades. Fitness
can be distinguished in aerobics for women and workout for men. The aerobics boom has
created its own fashion culture. The market for fitness clothing (leotards, dance
tights/leggings etc.) has slowed down, however, new aerobic routines have regenerated
interest in the market. Besides well-known sportswear manufacturers, several
manufacturers known for swimwear have entered this market.
Clothing accessories
Clothing accessories include the following main products:
• Gloves, mittens and mitts, knitted or woven from wool, cotton or synthetic fibres (mainly
acryl).
• Scarves, mufflers, mantillas, veils and the like, knitted or woven from silk, wool, synthetic
fibres, artificial fibres or blends. In the higher-price segments, silk and wool are often used;
acryl is mainly used in the low-priced segments.
• Ties, bow ties and cravats, knitted or woven from silk, man-made fibres (polyester) or
blends.
It has to be noted that in the governmental statistics, no difference is made between adults and
children, neither by end-use, like conventional, nor casual or leisure clothing.
The difference between genders has been made as far as possible in the analyses of trade
statistics, while in the analyses of consumer expenditure a difference has been made in gender
and clothing behaviour.
1.1.3 Classification on clothing behaviour
Herewith the following product categories are considered:
• Formal clothing, besides formal gowns (like evening dress, dinner dress, wedding gowns,
communion dresses, cocktail dresses etc.), this category includes coats and raincoats, suits
and ensembles, indoor jackets, (other than cotton) trousers, dresses, skirts and blouses;
14
•
•
•
Casual wear, like outdoor jackets, shirts, jumpers, cardigans, pullovers made of cotton,
wool, fleece etc. and cotton trousers other than denim;
Basic leisurewear, like T-shirts and polo shirts, tops and bodies, shorts/bermudas, jeans,
jackets and sweaters;
Active sportswear, like tracksuits, jogging suits, ski-suits, shorts, sports branded T-shirts
etc.
The broad definition of outerwear means that, in addition to this report, the CBI market surveys
'Bodywear’ (covering underwear, nightwear, swimwear and hosiery) and Personal Protective
Equipment (including workwear) facilitate a complete view of all types of clothing made of textiles.
1.2 Customs/statistical product classification
Products can be specified by the 6-digit Harmonised Commodity Description and Coding System
(HS). These numbers are used for both Customs and statistical purposes in EU member
countries. The number clearly identifies a specific product, so it is possible to see which
manufacturing techniques are concerned and which materials are used. Referring to the code
number can therefore facilitate communication and eliminate misunderstanding about the type
of outerwear. The Combined Nomenclature (CN) is the 8-digit trade classification system used
by the EU for tariff purposes. This system is directly linked to the HS code.
Knitted clothing can be found in chapter 61 and woven clothing in chapter 62 of the
Harmonised System. These chapters and 4-digit product groups are given below.
Appendix I provides a detailed breakdown of the CN codes relevant to different types of outerwear
within these major group headings. More information on the Combined Nomenclature is available
on http://www.hmce.gov.uk
Knitted or crocheted
61.01
Men's or boys' overcoats and outdoor jackets
61.02
Women's or girls' overcoats and outdoor jackets
61.03
Men's or boys' suits, ensembles, jackets, blazers, trousers, shorts etc.
61.04
Women's or girls' suits, ensembles, jackets, dresses, skirts, trousers, shorts etc.
61.05
Men's or boys' shirts
61.06
Women's or girls' blouses and shirts
61.09
T-shirts, singlets and other vests
61.10
Jerseys, pullovers, cardigans etc.
61.11
Babies' garments
61.12
Track suits and ski suits
61.13
Garments rubberised, impregnated etc.
61.14
Special garments for professional sporting or other purposes
61.16
Gloves, mittens and mitts
61.17
Other made-up clothing accessories
Woven
62.01
Men's or boys' overcoats and outdoor jackets
62.02
Women's or girls' overcoats and outdoor jackets
62.03
Men's or boys' suits, ensembles, jackets, blazers, trousers, shorts etc.
62.04
Women's or girls' suits, ensembles, jackets, dresses, skirts, trousers, shorts etc.
62.05
Men's or boys' shirts
62.06
Women's or girls' blouses and shirts
62.09
Babies' garments
62.10
Garments made up of felt or non-wovens, whether or not impregnated etc.
62.11
Track suits and ski suits
62.14
Scarves, shawls etc.
62.15
Ties, bow ties and cravats
62.16
62.17
15
Please note that the product groups falling under the HS codes presented in section 1.2 are not
completely in line with the product groups mentioned in section 1.1. Moreover, different
statistical sources use different product groups or specifications. This places limitations on indepth interpretation of trade figures and of the possible relationships between import and
export figures on the one hand and production and consumption figures on the other hand.
In general the HS number clearly identifies a specific product and it is possible to see whether
the garments concerned are for men or women and how they are made. Unfortunately, only
one number is available for leather garments. Therefore no distinction can be made between
the actual types of products and whether they are for men or women.
The HS number for articles of apparel of leather or composition leather is: 42.03.1000.
16
2
INTRODUCTION TO THE EU MARKET
The European Union (EU) is the current name for the former European Community. Since 1
January 1995 the EU has consisted of 15 member states. Ten new countries joined the EU in
May 2004. They are the Czech Republic, Estonia, Slovak Republic, Cyprus, Latvia, Lithuania,
Malta, Slovenia, Poland and Hungary. Negotiations are in progress with a number of other
candidate member states.
Table 2.1
Population and GDP of EU countries, 2004
Countries
Population
million
EU-15
Germany
France
United Kingdom
Italy
Spain
The Netherlands
Greece
Portugal
Belgium
Sweden
Austria
Denmark
Ireland
Finland
Luxembourg
New (10) EU countries
Poland
Czech Republic
Hungary
Slovakia
Lithuania
Latvia
Slovenia
Estonia
Cyprus
Malta
Total EU-25
*) forecasted based on 3 quarters
Source: Eurostat, 2005
Age
15-64
%
66.7
67.3
65.1
65.8
66.5
68.6
67.6
67.8
67.5
65.6
65.1
68.2
66.3
67.9
66.8
67.2
GDP*)
€ billion
382.7
82.5
59.9
59.7
57.9
42.3
16.3
11.0
10.5
10.4
9.0
8.1
5.4
4.0
5.2
0.5
Age
0-14
%
16.3
14.7
18.6
18.3
14.2
14.5
18.5
14.6
15.7
17.3
17.8
16.3
18.9
20.9
17.6
18.8
9,742
2,178
1,625
1,716
1,355
793
465
165
135
282
280
233
196
146
148
25
GDP per
capita 2003
EU-25 = 100
109
108
113
119
107
95
120
79
75
116
115
121
123
131
111
208
74.1
38.2
10.2
10.1
5.4
3.4
2.3
2.0
1.4
0.7
0.4
16.7
17.2
15.2
15.9
17.6
17.7
15.4
14.6
16.6
20.0
18.2
69.2
69.8
70.9
68.6
71.0
67.3
68.5
70.4
67.6
68.1
68.8
477
196
87
81
33
18
11
26
9
12
4
60
46
69
61
51
46
42
77
48
83
73
456.8
16.4
67.1
10,219
100
Within Western Europe – covering 15 EU member countries, Iceland, Liechtenstein, Norway and
Switzerland – more than 20 million enterprises are active. Small and medium-sized enterprises
(SMEs) account for the lion’s share. In 2000, the average turnover per enterprise of SMEs and
large enterprises amounted to € 600,000 and € 255 million respectively.
EU Harmonisation
The most important aspect of the process of unification (of the former EC countries), which
affects trade, is the harmonisation of rules in the EU countries. As the unification allows free
movement of capital, goods, services and people, the internal borders have been removed.
Goods produced or imported into one member state can be moved around between the other
member states without restrictions. A precondition for this free movement is uniformity in the
rules and regulations concerning locally produced or imported products. Although the European
Union is already a fact, not all the regulations have yet been harmonised. Work is in progress in
the fields of environmental pollution, health, safety, quality and education. For more information
17
about harmonisation of the regulations visit AccessGuide, CBI’s database on European non-tariff
trade barriers at http://www.cbi.nl/accessguide
Monetary unit: Euro
On 1 January 1999, the euro (€) became the legal currency within eleven EU member states:
Austria, Belgium, Finland, France, Germany, Italy, Ireland, Luxembourg, The Netherlands, Spain,
and Portugal. Greece became the 12th member state to adopt the Euro on January 1, 2001. In
2002 circulation of euro coins and banknotes replaced national currency in these countries.
Denmark, United Kingdom and Sweden have decided not to participate in the euro.
The most recent Eurostat trade statistics quoted in this survey are from the year 2003. In this
market survey, the € is the basic currency unit used to indicate value.
Trade figures quoted in this survey must be interpreted and used with extreme caution. The
collection of data regarding trade flows has become more difficult since the establishment of the
single market on 1 January 1993. Until that date, trade was registered by means of compulsory
Customs procedures at border crossings, but, since the removal of the intra-EU borders, this is
no longer the case. Statistical bodies like Eurostat can no longer now depend on the automatic
generation of trade figures. In the case of intra-EU trade, statistical reporting is only compulsory
for exporting and importing firms whose trade exceeds a certain annual value. The threshold
varies considerably from country to country, but it is typically about € 100,000. As a
consequence, although figures for trade between the EU and the rest of the world are accurately
represented, trade within the EU is generally underestimated.
Not only are the figures a little less accurate, but also trade statistics do not tell about the
country of origin of a product when imported from an EU country, they only tell from which EU
country the product comes. Many products, which originate in countries outside the EU, are
exported to an EU country via another EU country. This fact will most likely result in too-low
figures for imports from developing countries.
Furthermore, the information used in this market survey is obtained from a variety of different
sources. Therefore, extreme care must be taken in the qualitative use and interpretation of
quantitative data, both in the summary and throughout the text, also in comparisons of different
EU countries with regard to market approach, distribution structure, etc.
For more information on the EU market, please refer to the CBI manual ‘Exporting to the
European Union’.
Table 2.2
Country
Exchange rates of EU currencies in US$, 2001-2005
Currency
European Union
Euro (EUR)
Denmark
Crown (DKK)
Sweden
Crown (SEK)
United Kingdom
Pound (GBP)
Poland
Zloty (PLN)
Czech Republic
Crown (CZK)
Hungary
Forint (HUF)
Slovakia
Crown (SKK)
Lithuania
Litas (LTL)
Latvia
Lats (LVL)
Slovenia
Tolar (SIT)
Estonia
Crown (EEK)
Cyprus
Pound (CYP)
Malta
Lira (MTL)
Sources: Eurostat and CBS Statline
2001
2002
2003
2004
July
2005
0.8956
0.1202
0.0968
1.4402
0.2439
0.0263
0.0035
0.0207
0.2500
1.5992
0.0041
0.0572
1.5552
2.2224
0.9456
0.1273
0.1032
1.5037
0.2451
0.0307
0.0039
0.0222
0.2733
1.6275
0.0042
0.0604
1.6437
2.3125
1.1312
0.1522
0.1240
1.6347
0.2571
0.0355
0.0045
0.0273
0.3276
1.7656
0.0048
0.0723
1.9367
2.6548
1.2439
0.1672
0.1363
1.8329
0.2748
0.0390
0.0049
0.0311
0.3602
1.8700
0.0052
0.0795
2.1378
2.9063
1.2094
0.1620
0.1280
1.7429
0.2937
0.0332
0.0049
0.0311
0.3502
1.7415
0.0051
0.0773
2.1169
2.8236
18
Selected countries
The major seven national markets within the EU for outerwear are highlighted and are placed in
ranking of imports from selected developing countries combined with growing opportunities for
exporters in the same countries: the UK, Germany, Italy, France, Spain, The Netherlands and
Belgium. These countries are the leading consumers of outerwear and, in another sequence, the
leading (total) importers.
Besides the seven selected countries, attention is paid to main developments in the ten accession
countries, especially to Hungary, the Czech Republic and Poland.
19
3
CONSUMPTION
3.1 Market size EU-25
Consumption of clothing in the EU-25 followed a growth of 5.2 percent during the period 20012004, of which 1.9 percent in 2003-3004. Market size amounted to € 274 billion in 2004, of which
82 percent or € 225 billion was outerwear. Clothing consumption in the ten new EU countries
(since 1 May 2004) showed a much stronger increase in clothing consumption: 25.6 percent during
the period 2001-2004 compared to the EU-15 countries (+ 4.5%), but total consumption remained
rather low as did the per capita consumption.
Germany is still the most important country in clothing consumption in the EU, despite the
continuing decrease, as can be derived from table 3.1. The difference between Germany and the
UK and Italy has become smaller. Five countries (Germany, UK, Italy, France and Spain) account
for 76 percent of EU-25 clothing consumption.
Table 3.1 Consumer clothing expenditure in the EU-25 countries, 2000-2004
(in € million)
2001
2002
2003
2004
Per head
consumption
in 2004 (in €)
709
880
749
529
527
615
764
850
682
531
500
690
522
805
754
682
Outerwear
consumption
in 2004
48,301
43,641
34,802
26,639
18,630
8,791
6,665
5,550
5,045
4,719
4,301
3,090
2,222
2,656
303
215,345
Germany
United Kingdom
Italy
France
Spain
The Netherlands
Belgium
Austria
Sweden
Greece
Portugal
Denmark
Finland
Ireland
Luxembourg
EU-15 countries
62,650
46,887
41,014
30,526
20,211
9,655
7,726
6,719
5,356
5,278
4,992
3,440
2,570
2,998
357
250,379
61,220
48,521
41,697
30917
20,500
9,985
7,882
6,721
5,783
5,470
5,080
3,536
2,663
2,965
362
253,302
59,570
50,587
42,428
31,262
21,637
10,088
7,785
6,750
5,999
5,658
5,123
3,610
2,699
3,123
369
256,688
58,497
53,158
43,514
31,700
22,280
9,982
7,913
6,883
6,139
5,901
5,241
3,725
2,713
3,240
371
261,257
Poland
Czech Republic
Hungary
Slovakia
Slovenia
Estonia
Latvia
Lithuania
Cyprus
Malta
EU-10 countries
4,019
1,498
1,104
585
565
137
312
378
239
75
8,912
4,411
1,640
1,259
598
613
150
329
401
242
79
9,722
4,836
1,756
1,421
628
721
166
362
418
248
82
10,638
5,054
1,842
1,471
662
794
181
401
445
260
83
11,193
132
181
146
123
397
140
174
131
371
208
151
4,074
1,490
1,148
585
627
146
322
358
196
65
9,011
EU-25 countries
259,291 263,024 267,326 272,450
Sources: Euromonitor, Retail Intelligence and several national statistics
600
224,356
Consumers in the UK and in Austria are the biggest spenders on clothing in the EU. Looking at
the other major EU countries, Belgian consumption per capita was the highest followed by Italy
and Germany. The Netherlands, French and Spanish consumption was less than the EU average
consumption of clothing.
Per capita consumption in the new EU member states is in the range of € 123 (Slovakia) to € 397
(Slovenia). In terms of future potential, it is clear that the new EU member states, in particular
Czech Republic, Hungary, Slovenia and Poland, offer greater scope for market growth as incomes
20
and spending patterns approach European norms, although this may still be some years away.
Also of interest are Portugal, Greece, Finland, Spain and France, which have surprisingly low
levels of clothing spending per capita. Despite rapid modernisation, Portugal and Greece are
economically poorer than the other countries mentioned. Finland is a highly rural market.
Women’s outerwear is the leading sector of the clothing market in all markets surveyed. In
2004, the share of the total value of women’s outerwear sales ranged from 51.3 percent in
France to 57.0 percent in Germany. Women are considered to be more sensitive to fashion and
buy more impulsively than men. In many EU countries the demand for traditional wear is
declining in favour of casual and leisurewear, which implies higher increasing sales in terms of
volume rather than in terms of value.
Table 3.2
Value sales of outerwear*) by sector in major countries, 2004 (in %)
Women’s
Men’s
outerwear outerwear
Germany
57.0
29.7
United Kingdom
54.0
31.0
Italy
52.0
33.7
France
51.3
30.2
Spain
52.1
33.1
The Netherlands
52.5
33.5
Belgium
55.2
30.9
EU-15
53.8
31.2
*) including sportswear and accessories
Source: several national statistics
Children’s
outerwear
13.3
15.0
14.3
18.5
14.8
14.0
13.9
15.0
Total
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
3.1.1
Germany
The GDP of Germany, which is the largest economy in the EU, grew more slowly than the EU
average. The weak economic situation can be illustrated by the number of unemployed persons,
which increased by 7.8 percent to 3.7 million persons in 2003, while final consumption
expenditure by households increased very slightly: in 2002 (+0.8%), in 2003 (+1.0%) and in
2004 (+ 1.3%). This development resulted in lower expenditure on clothing.
Table 3.3
Development in consumer expenditure in Germany, 2001-2006
(in € billion at constant 2002 prices)
Total consumption
Of which:
Clothing
In % of total consumption
Of which:
Outerwear
In % of total clothing consumption
(f) = forecasts
2001
2002
2003
2004
1,200
2005
(f)
1,218
2006
(f)
1,241
1,163
1,173
1,185
62.7
5.4
61.2
5.2
59.6
5.0
58.5
4.9
58.0
4.8
58.8
5.0
52.3
83.5
50.6
82.6
49.0
82.2
48.3
82.6
48.0
82.7
48.7
82.8
Source: Eurostat 2005
Consumer expenditure on outerwear decreased 1.4 percent in 2004 after a fall of 3.1 percent in
2003 and 3.3 percent in 2002. The German clothing market does not show rising indicators of
any importance. Preliminary figures for 2005 indicated a slight decrease, too. In 2006, and in
the longer term, the continuing interest in more fashionable outerwear should help to stem the
decline
The negative developments in clothing expenditure in Germany are the result of many factors,
like:
• economic limitations, such as rising unemployment and low consumer confidence;
• intensive price competition on the home market, resulting in increasing market shares
for non-specialist retailers including (discount) supermarkets;
21
•
•
growing imports from low-cost countries, direct imports as well as production abroad
under the regime of German manufacturers
lower administrative costs and the abolition of tariffs will led to a fall in prices of Asian
imports of an expected 15-20 percent.
Expectations for expenditure on outerwear for the years 2006 and later are optimistic, for the
following reasons:
• ageing population and older people tend to spend more on comfortable clothing, while
outdoor activities (and therefore outdoor clothing and accessories) are popular among an
important group of active seniors;
• an expected recovery of the economic situation resulting in increased consumer expenditure
on clothing;
• active sportswear either or not translated into street wear will become more popular among
young people, encouraged by sports evenements, like the world championship soccer;
• demand in general is also expected to be boosted by the latest fashion trends.
Germany remained the largest clothing market in the EU, because of its large population (82.5
million); consumption of clothing per capita fell from € 760 in 2001 to € 709 in 2004, which
indicates a fall of 6.7 percent. For many years, German citizens belonged to the bigger spenders
per capita on clothing in the EU; however, they still devote a share of spending on clothing, which
is above the EU average. Seven years ago, Germans spent an average of almost 7 percent of their
disposable income on clothing. According to Eurostat figures in table 3.3, this has now fallen to
almost 5 percent. However, German consumers spend above the average EU level per capita on
clothing and outerwear.
Women and children’s outerwear expenditure showed the same pattern: decreases in the period
2001-2004, women’s outerwear fell 5.8 and children’s outerwear 9.2 percent, while men’s wear
levelled off in 2004 (+ 0.8%), after a decrease of almost 11 percent in the period 2001-2003.
Table 3.4
Consumer expenditure on outerwear in Germany, 2001-2004
2002
€
million
28,667
15,114
6,805
3,596
2,205
1,004
2003
Women’s outerwear
Men’s outerwear
Children’s outerwear
- Girls’ outerwear
- Boys’ outerwear
- Babies’ outerwear
2001
€
million
29,221
15,971
7,098
3,707
2,348
1,043
€
million
28,045
14,235
6,717
3,553
2,155
1,009
€
million
27,518
14,342
6,441
3,398
2,054
989
Total outerwear
52,290
50,586
48,997
48,301
2004
per capita
in €
760
418
546
683
395
592
587
Source: Bundesverband des Deutschen Textileinzelhandels (BTE) and Euromonitor
Consumer demand for leather garments fell dramatically in 2002: derived from Eurostat
statistics, consumer expenditure in 2001 amounted to € 523 million and in 2002 € 470 million. In
the following years, the fall was limited to 3 percent. Preliminary figures announced a fall to €
445 million in 2004, of which an estimated 85 percent covered leather and suede jackets. Prices
of leather garments are under pressure and were 7 percent lower in 2003 than in 2001.
Clothing prices declined in 2004 by 0.8 percent, the same fall as in 2003. In terms of volume the
German clothing market declined by 0.6 percent in 2004. Lower prices are caused by week-long
discount campaigns with price reductions of up to 50 percent, which have also contributed to
lower revenues. According to the German Knitwear association, the sector was characterised by a
lack of buoyancy, the trade by lack of customers and consumers by a lack of disposable income.
2004 was, just like in the previous year, marked by falling frequency of customer visits and an
end users’ consumption behaviour pattern in Germany characterised by general uncertainty and
reluctance to buy.
22
The still-falling birth rate and not least the falling real net income of families with children, even
amongst the grandparents who have previously functioned as buyers of clothing as gift, are
causing further reductions in the children’s wear sector.
The following development in terms of volume applied to 2004 compared with 2003:
Women’s wear
Type of article
Coats (or furs)
Suits
Jackets
Dresses
Skirts
Trousers
Jeans
Blouses
Knitwear
Knitted outerwear
Women’s wear total
Change
in %
- 4
- 1
- 4
- 2
+3
+5
+1
+2
+2
- 2
- 1
Men’s wear
Type of article
Coats
Suits
Jackets
Leather
Trousers
Jeans
Shirts
Knitwear
Knitted outerwear
Ties
Men’s wear total
Change
in %
- 3
+1
+2
- 3
+2
+3
+1
+1
- 4
- 3
+2
These figures illustrate that amongst general reluctance to buy, men’s wear at plus 2 percent was
holding up better than women’s wear with its fall of 1 percent. The still firm trend towards casual
clothing found expression in men’s wear in the form of jeans, other cotton trousers and outdoor
jackets. Young suits were also in demand in the fashion sector. Women took out their purses for
cotton trousers, skirts, light knitted fashion and fashionable blouses.
The German market for clothing remained weak and based on preliminary figures, a recovery is
not expected in 2005. The market share of clothing specialists, especially independents, is
forecast to fall by 9 percent during the period 2002-2007, while major discount chains, value
retailers and hyper- and supermarkets are expected to fare better during this period. The
German clothing market reach an estimated value of € 60 billion in 2007. Women’s outerwear
will remain the largest market sector, accounting for € 28.2 billion in 2007.
Despite the developments described above, Germany is an attractive market for producers of
outerwear. In 2004 the German clothing market was still 10 percent larger than the UK clothing
market. It should be noted that the German clothing market was much larger than the UK
market in previous years.
3.1.2 United Kingdom
In recent years, the UK economy has been among the strongest in Europe. Consumer
confidence has been high as a result of low interest rates, low level of unemployment and
strong increases in house prices. Growth in household expenditure was the driving force behind
the UK’s GDP growth. Household expenditure grew by 8.6 percent in the period 2001-2004 and
a further growth is expected for the coming years.
The UK remained the second biggest clothing market in the EU behind Germany. UK consumers,
just as Austrian citizens, belonged to the bigger spenders per capita on clothing in the EU.
Table 3.5
Development in consumer expenditure in United Kingdom, 2001-2006
Total consumption
Of which:
Clothing
Of which:
Outerwear
(f) = forecasts
2001
2002
2003
2004
1,094
2005
(f)
1,147
2006
(f)
1,166
1,007
1,042
1,053
46.9
4.7
48.5
4.7
50.6
4.8
53.2
4.9
54.4
4.8
56.3
4.8
38.6
82.2
39.7
81.8
41.5
82.0
43.6
82.1
44.6
82.0
46.2
82.0
23
The total consumption of outerwear in 2004 in the UK amounted to € 43.6 billion, while for
2005 a growth of 2.3 percent is expected. Spending on outerwear has continued increasing but
at a reduced rate compared to previous years.
This growth can partly be explained by further decreasing prices (-2% in 2003 and –1% in
2004), which were the result of:
• developments in the retail sector, like a wide availability of clothing at competitive prices
and significant changes in retailing (value chains and discounters);
• increased penetration of imports from low-cost countries replacing lower national
production.
The UK market for women’s outerwear grew by 13 percent in the period 2001-2004, to reach a
value of € 23.6 billion. The men’s outerwear market grew by 14 percent to € 13.5 billion in the
same period. Growth in volume (8%) was more than in value (6%) in the period 2001-2003,
which indicates 2 percent lower average prices. This can be ascribed to the success of value
retailers and discounting in the men’s wear sector. The casual wear segment grew further, at the
expense of formal wear.
Despite decreasing numbers of children, the market for children’s clothing is buoyant and has
shown strong growth since 1998. The market for children's outerwear grew by 12.6 percent
during the period 2001-2004 to € 6.6 billion. Infants’ wear is the best performer within the
market as a whole: a growth of 14.1 percent in the period 2001-2004. This segment is helped by
indulgent gift buying, especially for newborn babies, as clothes are a popular gift.
Consumers are having smaller families, but spending more per child on children’s clothes.
Meanwhile children are having a greater influence on the styles they want and the amount of
clothes in their wardrobes. These factors are key in stimulating more demand.
Table 3.6
Consumer expenditure on outerwear in the UK, 2001-2004
2002
€
million
21,414
12,293
5,964
3,180
1,888
896
2003
Women’s outerwear
Men’s outerwear
- Boys’ outerwear
2001
€
million
20,853
11,883
5,824
3,114
1,848
862
€
million
22,461
12,891
6,252
3,342
1,962
948
€
million
23,561
13,522
6,558
3,497
2,076
985
Total outerwear
38,560
39,671
41,531
43,641
2004
per capita
in €
930
554
612
780
441
643
722
Source: Euromonitor and Office for National Statistics (ONS)
There are very limited figures available about consumption of leather garments. Apparent
consumption based on Eurostat statistics, mentioned a rather stable market size of € 329 million
in the period 2000-2002. However, in 2003 consumer expenditure decreased to just under € 300
million.
Women’s outerwear is, also in the UK, the largest sector and accounts for 54 percent of the
market for outerwear in the UK. According to ONS, the largest segment remained formal or
classic wear in 2004, of which in value terms the major product groups were coats and outdoor
jackets, suits and indoor jackets, skirts and dresses. The increasing trend away from formal wear
favoured sales of casual wear and sportswear. Market shares for women and girls of casual
trousers (except jeans) rose, as did T-shirts. Other knitted casual items like tops, jumpers, sweat
shirts and cardigans increased too but to a smaller degree than in the previous years.
The children’s clothing market is growing in core garments. The market is strongly shaped by
fashion, with some styles being miniaturised versions of adult ranges. Meanwhile youth styles
and fashions are opening up a new children’s niche, with its own flavour and inspirations.
The trends show that the purchasing of girls' dresses has declined, while there has been a higher
rate of purchasing of jeans. Coats and jackets have also been increasing in popularity.
24
Comfortable casual dressing is the most influential factor for younger boys, with tracksuits and
sweatshirts more popular among younger than older children, while coats and jackets are more
popular among older girls.
The following development in terms of value applied to 2004 compared with 2003:
Type of article
Women’s coats
Trousers
T-shirts
Blouses
Shirts
Jerseys, pullovers etc. for women
Jerseys, pullovers etc. for men
Skirts
Anoraks
Indoor jackets
Dresses
Jeans
Other trousers
Source: Eurostat and BATC
Change
in %
+11
+3
+ 8
- 3
- 5
+3
+1
+4
+1
+2
- 1
+1
+3
Recent years have seen a trend towards purchasing casual wear for the office and leisurewear for
home, and away from buying formal wear. However, in the review period, formal wear still
represented a higher part of the market in the UK than in other major EU countries. The growing
number of women in the workforce, in particular at managerial levels, has helped support sales of
formal wear. According to experts, there are now some indications that a balance is being
reached between sales of women’s formal, smart casual and casual wear.
Forecasts for women’s wear show a higher growth in volume than in value, which follows the
current trend of falling unit values in the women’s sector, particularly in the case of casual wear.
However, the women’s wear market is less price-sensitive than that for men’s wear.
The market for children's clothing is forecast to grow because of the influence of fashion and
continuing consumer confidence, as personal disposable income continues to rise. Although
numbers of children will decrease, this will be more than offset by a higher amount spent per
child. The UK outerwear market is estimated to reach a value of € 48 billion in 2007.
3.1.3 Italy
At constant prices, Italian spending has increased from € 738 billion to € 796 billion in 2004.
2004 saw the lowest growth (1%) of the reviewed period, mainly due to the general slowdown in
economic growth globally.
Italy is the third largest clothing market in the EU, after Germany and the UK, with € 43.5
billion in 2004, thus accounting for almost 16 percent of total EU-25 consumption. Consumption
of clothing increased 6.1 percent in value in the period 2001-2004, of which 80 percent
outerwear. Italian clothing expenditure grew but at a slower pace than growth of necessities
such as health, housing/energy and food. Expected growth of expenditure on outerwear for
2005 and 2006 is respectively 2.9 and 2.5 percent at constant prices and reflects that the
Italian consumer can be considered as stylish and has good taste, compared with other EU
consumers. However, more and more Italian combine branded products with lower priced
products, which can be illustrated as follows: the Italian fashion market consists of three parts:
• High fashion, which consists mainly of Italian clothes, comprises 10 percent of the market
The role of designer clothing is decreasing, but still important. This percentage is much
higher than in countries like Germany, The Netherlands and the UK. However, recession has
forced many consumers to consider the value-for-money option. Private labels have been
the principal beneficiaries of this trend;
• Medium fashion comprises 30 percent of the market and in this category more than half of
clothes are Italian;
• Low end, which makes up the remaining 60 percent, gets supplemented from abroad.
25
Table 3.7
Development in consumer expenditure in Italy, 2001-2006
Total consumption
Of which:
Clothing
Of which:
Outerwear
(f) = forecasts
2001
2002
2003
2004
796.4
2005
(f)
812.6
2006
(f)
830.4
737.6
761.4
789.4
41.0
5.6
41.7
5.5
42.4
5.4
43.5
5.5
44.7
5.5
45.7
5.5
32.2
78.5
33.2
79.7
34.0
80.1
34.8
80.0
35.8
80.2
36.7
80.3
The Italian market for women’s outerwear slumped from 2003 onwards to reach a value of €
18.1 billion in 2004. Consumption of women’s outerwear grew in volume, which indicates a fall in
average prices of 1.5 percent.
The men’s outerwear market grew to € 11.7 billion in the same period. Growth in volume was
equal to growth in value in the period 2001-2004, which indicates a stabilisation of average
prices. Italy ranked second in men’s outerwear consumption after UK (of the seven major EU
countries under review), accounting for a third of total outerwear expenditure. Italian men favour
expensive, well-made garments while male consumers for instance in the UK and Germany prefer
sport-inspired casual wear.
The consumption per capita in Italy is far above the EU average. Price is generally not an issue
for Italians when it comes to fashion apparel. The regional variations reflect differences in income
per head and climate differences. Lighter and cheaper clothing can be worn in the warmer climate
of Southern Italy. Expenditure on clothing in the south of the country and in the Islands region is
much less than in the north.
Table 3.8
Consumer expenditure on outerwear in Italy, 2001-2004
Women’s outerwear
Men’s outerwear
- Boys’ outerwear
Total outerwear
All clothing
2001
€ million
16,789
10,878
4,529
2,011
1,482
1,036
2002
€ million
17,254
11,253
4,717
2,151
1,540
1,126
2003
€ million
17,735
11,416
4,832
2,206
1,558
1,068
2004
€ million
18,087
11,725
4,990
2,275
1,624
1,091
Per capita
in €
702
483
617
677
455
945
32,196
33,224
33,983
34,802
599
41,014
41,697
42,428
43,514
749
Source: Sistema Moda Italia and Euromonitor
According to Eurostat, Italian consumption of leather garments increased in the period 20002002 to just over € 400 million but decreased in 2003 and 2004 and amounted to € 385 million in
2004. The Italian consumer has the highest expenditure on leather garments per capita in the
EU.
At the time of compiling this survey, statistics of Italian consumption by product or product
groups were not available. For that reason figures for 2003 are given below and an indication for
2004 based on preliminary data.
26
Women’s outerwear
Type of article
Coats, raincoats
Outdoor jackets
Suits and ensembles
Indoor jackets
Dresses
Skirts
Jeans
Other trousers
T- shirts and tops
Shirts and blouses
Jumper, pullovers
Sweaters
Sportswear
Other
Total
Source: Trade estimates
2003
€ million
1,118
1,085
1,777
1,032
1,066
1,336
932
2,480
1,567
1,728
1,631
840
666
477
17,735
2004
€ million
1,089
1,096
1,804
1,087
1,070
1,454
966
2,512
1,643
1,702
1,593
868
694
509
18,087
Men’s outerwear
Type of article
Coats, raincoats
Outdoor jackets
Suits and ensembles
Indoor jackets
Jeans
Other trousers, shorts
Shirts
Jerseys, sweaters etc.
T-shirts
Sportswear
Other
2003
€ million
587
996
943
602
1,379
1,911
1,284
1,712
905
730
367
2004
€ million
568
1,014
998
682
1,405
1,979
1,206
1,684
1,043
771
375
11,416
11,725
Total
Women’s purchases of dresses fell in terms of volume, while purchases of skirts rose in the
period 2003-2004. Other product groups with increasing volumes were: T-shirts and tops to the
detriment of shirts and blouses, jerseys, spencer, cardigans etc. especially heavyweight jumpers
and pullovers decreased in favour of lightweight items. Trousers for women, including jeans,
increased slightly.
Trousers and jeans constitute by far the largest product category in the men’s woven outerwear
market. The consumption of men’s jeans increased slightly to 35.5 million units in 2004 with an
average price of almost € 40. Other cotton trousers grew to 64.8 million units with an average
price of 30.55. The growth in sales of cotton trousers indicates the popularity of casual wear. The
traditional suit showed a small revival in consumption, indoor jackets and blazers also increased.
Shirts include a decreasing share of formal/classic and an increasing share of casual. T-shirts and
polo shirts, another protagonist of the leisure and casual look, grew in volume, while jerseys,
pullovers and sweaters, also a protagonist of the same look, decreased in volume.
3.1.4 France
The weaker economic climate and the high rate of unemployment resulted in very priceconscious consumers looking for good value for money. Consumers appear to be less guided by
impulse and tend to be more rational in their purchasing. However, fashion plays an important
role in purchasing decisions in particular for women. These dual aspects led to a tendency to
favour cheaper, more comfortable, practical and casual garments. The French economy
generally grew well towards the end of the last decade, but it has suffered since 2001 as the
global economy has slowed.
Compared to consumers in other major EU countries, French consumers spent the least on
clothing: only 3.6 percent of their budget went to clothing in 2004. Moreover, people tend to
spend more on housing, outside activities, sport and leisure goods.
Table 3.9
Development in consumer expenditure in France, 2001-2006
Total consumption
Of which:
Clothing
Of which:
Outerwear
(f) = forecasts
2001
2002
2003
866.9
2004
(f)
874.3
2005
(f)
876.8
2006
(f)
889.2
812.7
840.6
30.5
3.8
30.9
3.7
31.3
3.6
31.7
3.6
32.4
3.7
32.9
3.7
25.0
82.0
25.5
82.3
26.2
83.9
26.6
84.0
27.1
83.7
27.5
83.6
Total spending on clothing amounted to € 31.7 billion in 2004, of which 84 percent concerned
outerwear. Average spending per person is lower than the other major EU markets (UK, Italy and
27
Germany), but higher than South European countries, like Spain, Portugal and Greece. Consumer
clothing expenditure has grown for the last three years, up 1.3 percent in 2002, 1.1 percent in
2003 and 1.4 percent in 2004. However, the forecasts indicate a growth of 2.0 percent for 2005
and for 2006, which will be higher than in the previous year.
By sector, there was an increase in sales of men’s outerwear (+2.2%) and children’s wear
(+2.2%), while women’s outerwear increased slightly by 1.0 percent.
The share of women’s outerwear in total outerwear expenditure decreased slightly in the period
under review to 51.3 percent against 52.4 percent in 2001.
France has a high consumption of babies’ wear in the EU with € 1.0 billion in 2004 or 3.8 percent
of total outerwear consumption. In the children sector, of which 10/14 years was the largest
sector in value terms, reaching a third of total consumption in this sector, the per capita spending
on children’s clothing, including sportswear and clothing accessories, amounted to an average of
€ 629 per child aged 0-2 years, € 501 per girl and € 324 per boy aged 3-14 years.
The men’s clothing market in France was rather poor for many years, although the available
range of clothing became more attractive in recent years and young men became more fashionconscious, resulting in 8.1 percent higher consumption during the period 2001-2004 against 4.2
percent increase in consumption of women’s wear during the same period.
Babies’ and children’s wear are becoming as susceptible to fashion trends as adult clothing.
Collections include sportswear items and trendy garments with an adult look.
Table 3.10 Consumer expenditure on outerwear in France, 2001-2004
Women’s outerwear
Men’s outerwear
- Boys’ outerwear
Total outerwear
2001
€ million
13,121
7,433
4,463
2,102
1,449
912
2002
€ million
13,228
7,650
4,574
2,154
1,485
935
2003
€ million
13,543
7,867
4,818
2,282
1,557
979
2004
€ million
13,678
8,037
4,924
2,336
1,586
1,002
25,017
25,452
26,228
26,639
Per capita
in €
532
337
441
501
324
629
443
Source: Conjuncture et d’Observation Economique (CTCOE) and Euromonitor
Consumer expenditure on leather garments in France, as can be derived from apparent
consumption, amounted to € 370 million in 2001 but decreased sharply to € 325 million in 2002
and to € 300 mln in 2003. In terms of volume, consumption decreased from 3.0 million units in
2001 to 2.5 million in 2003. Expenditure in 2004 is estimated at € 280 million.
Purchases in volume of women’s formal clothing decreased in the period 2001-2004, caused by
decreased purchases of dresses, woven blouses, tailored trousers and indoor jackets, while
purchases of coats stabilized to the detriment of purchases of women’s basic leisurewear
(products like T-shirts, sweatshirts, bodies and jeans) and of casual wear (outdoor jackets,
leisure trousers, jerseys, pullovers and cardigans). Purchases of active sportswear stabilised.
Market shares (in terms of value) for women accounted for 17 percent for trousers and jeans.
Jeans for women reached 23 million pairs in 2004 (average price € 34.00) and other trousers 59
million pairs (average price € 27.00). Other market shares (in terms of value) were: 4 percent
for shirts and blouses, coats and outdoor jackets (9%), dresses and skirts (9%) and knitwear
(20%).
Jeans for men reached almost 29 million pairs (average price € 39.00) and other trousers 26
million pairs (average price € 35.50).
Market shares (in terms of value) for men accounted for 25 percent for trousers and jeans and 14
percent for T-shirts and sweatshirts. Other market shares were: suits, indoor jackets and blazers
(12%) coats and outdoor jackets (8%) and other knitwear (11%). Active sportswear expenditure
was more than 4 percent lower in 2004 than in 2001.
28
Consumption (in terms of value) of the major product groups in children’s wear was: outdoor
jackets (15%), jeans (10%) and other trousers (10%), T-shirts and sweatshirts (22%). Active
sportswear expenditure had an important market share of almost 19 percent in 2004.
The French clothing market is forecast to grow annually by 2 percent from 2004 to 2007 to reach
a value of € 33.6 billion, of which € 28 billion outerwear.
3.1.5
Spain
Growth in clothing spending in Spain has been high during the last decade. In 2004, the total
Spanish clothing market was worth € 22.3 billion, or 8.5 percent of the EU-15 market. Spanish
outerwear consumption has grown steadily (almost 14 percent during 2001-2004) but remains
rather low for 42 million Spaniards, resulting in an average consumption of € 442 per capita
which is clearly below the EU-15 average of € 565. However, the rapid strides made in the
country’s economic development and its current out-performance of much of Western Europe
mean that the gap is quickly closing. The demand for young fashion, sportswear, children’s
wear and in particular babies’ wear performed well.
Table 3.11 Development in consumer expenditure in Spain, 2001-2006
Total consumption
Of which:
Clothing
Of which:
Outerwear
(f) = forecasts
2001
2002
2003
2004
463.6
2005
(f)
481.2
2006
(f)
503.0
407.5
430.0
455.2
19.7
4.8
20.7
4.8
21.6
4.8
22.3
4.9
23.6
4.9
24.6
4.9
16.5
83.5
17.3
83.4
18.1
83.5
18.6
83.6
19.7
83.5
20.6
83.4
The Spanish market for women’s outerwear grew by 13.6 percent in the period 2001-2004, to
reach a value of € 9.7 billion. Children’s outerwear market showed the biggest growth (almost
17%) growing to € 2.8 billion in the same period.
Globally spoken, the Spanish clothing market can be characterised by two types of consumers:
an older traditional consumer mainly active in agriculture in western Spain with a rather low
expenditure on clothing of less than € 300 per capita, as opposed to a modern fashionable
consumer living in big cities like Madrid, Barcelona, Valencia etc. or regions like Catalonia and
Basque land, with an average of more than € 700 expenditure per capita.
Table 3.12 Consumer expenditure on outerwear in Spain, 2001-2004
Women’s outerwear
Men’s outerwear
- Boys’ outerwear
Total outerwear
2001
€ million
8,553
5,573
2,356
1028
749
579
2002
€ million
8,990
5,768
2,494
1,094
790
610
2003
€ million
9,446
5,977
2,647
1,170
835
642
2004
€ million
9,714
6,163
2,753
1,205
872
676
16,482
17,252
18,070
18,630
Per capita
in €
546
368
474
499
340
814
462
Source: CMT Espana and Euromonitor
Consumer expenditure on leather garments in Spain, as can be derived from Eurostat statistics,
amounted to € 164 million in 2001 but decreased sharply to € 159 mln in 2002 and to € 156 mln
in 2003. In terms of volume consumption decreased from 1.31 million units in 2001 to 1.29
million in 2003. Expenditure in 2004 is estimated at € 155 million.
29
The value-for-money concept is still an important factor in purchasing decisions for Spanish
consumers. They are equally concerned with the quality of the products, projecting a
sophisticated outward appearance and are brand-conscious. Spanish men aged over 40 are
classic dressers and reserve the greatest part of their annual clothing budget for a smart suit,
while younger consumers prefer sportswear and (smart) casual wear. They demand the latest
designs from national and international ‘name’ designers and are spending more on clothing.
Spanish women have higher preferences for national brands and are interested, in order of
importance, in: comfort, quality and design. Besides the traditional school uniform for the
younger children, children’s formal wear still plays an important role especially on Sundays and
Christian holy days, although children’s casual wear is growing in popularity.
At the time of compiling this survey, statistics of Spanish consumption by product or product
groups were not available. For that reason figures for 2003 are given below, plus an indication for
2004 based on preliminary data.
Women’s wear
Type of article
Coats, raincoats
Outdoor jackets
Suits and ensembles
Indoor jackets
Dresses
Skirts
Jeans
Other trousers
T- shirts
Blouses
2003
mln units
7.0
5.9
7.2
8.2
13.8
22.5
9.7
45.9
64.0
31.4
47.1
Change
in 2004
0
+
+
++
-++
+
++
++
--
Men’s wear
Type of article
Coats, raincoats
Outdoor jackets
Suits and ensembles
Indoor jackets
Jeans
Other trousers
Shirts
T-shirts
2003
mln units
3.9
10.4
4.5
4.6
15.9
54.9
76.2
33.5
108.9
Change
in %
+
0
++
++
+++
-+++
For 2005 and 2006, consumer expenditure on outerwear in Spain is expected to increase by 3.5
percent, which will be lower than in the previous years.
3.1.6 The Netherlands
For 2004 as a whole, consumer expenditure in The Netherlands increased by 1.2 percent,
slightly lower than in 2003 and much lower than in the previous years. Expenditure growth is
predicted to recover slowly over 2005 and 2006, as slow job creation and rising unemployment
are offset against rising levels of disposable income and wage levels.
The share of expenditure on clothing decreased since 2001 and will decrease further in 2005,
caused by much higher expenditure on housing and energy costs and health care. A slight
recovery is expected for 2006.
Table 3.13 Development in consumer expenditure in The Netherlands, 2001-2006
Total consumption
Of which:
Clothing
Of which:
Outerwear
(f) = forecasts
2001
2002
2003
2004
220.7
2005
(f)
225.3
2006
(f)
230.4
206.7
215.1
218.0
9.7
4.7
10.0
4.6
10.1
4.6
10.0
4.5
9.9
4.4
10.3
4.5
8.7
89.6
8.8
88.3
8.9
88.5
8.8
88.1
8.7
88.0
9.1
88.2
The clothing market in The Netherlands amounted to € 10.0 billion in consumer prices in 2004, of
which 88 percent concerned outerwear. Outerwear consumption decreased by 1.4 percent in
value but increased by 2.2 percent in volume in 2004 compared with 2003, which indicates that
prices are still under pressure.
Expenditure on:
30
•
•
•
women’s outerwear stabilised in value and increased 5 percent in volume;
men’s outerwear stabilised in value too and increased 3 percent in volume;
babies and children’s outerwear decreased 7 percent in value and 2 percent in volume.
Average prices of women’s outerwear fell considerably (5%) in 2004, men’s outerwear 3%,
while prices of babies’ and children’s wear increased by 2 percent.
Table 3.14 Consumer expenditure on outerwear in The Netherlands, 2001-2004
Women’s outerwear
Men’s outerwear
- Boys’ outerwear
Total outerwear
2001
€ million
4,672
2,746
1,234
640
363
231
2002
€ million
4,641
2,785
1,395
703
411
281
2003
€ million
4,757
2,893
1,277
653
369
255
2004
€ million
4,760
2,856
1,190
606
341
243
Per capita
in €
697
433
400
487
261
572
8,652
8,821
8,927
8,806
537
Sources: Gfk and CBS
The market for leather garments in The Netherlands is rather limited. Consumer expenditure fell
from € 75 million in 2002 to € 70 million in 2003, according to Eurostat. Consumption in 2004
can be estimated at € 67 million, which indicates that per capita consumption is lower than in
other major EU countries.
In the women’s sector, expenditure on coats and outdoor jackets decreased by 18 percent in
2003 and another 3 percent in 2004. Other products with strong fall in purchases (- 7%) were
knitwear like sweaters, cardigans, pullovers and spencers. Expenditure on leisurewear like jeans
decreased slightly (-2%) while especially outdoor T-shirts and polo shirts (+10%) grew, after a
strong growth of 12 percent in 2003. Another growing product group in 2004 was indoor
jackets, while expenditure on trousers (other than jeans) stabilised, just like dresses, skirts and
blouses.
The increased focus on casual wear in The Netherlands led to further increased consumer
purchases of men’s trousers like jeans, more than 20 percent during the period 2001-2003.
Growth in 2004 stagnated, a 5 percent increase in the first half-year was followed by a fall of
the same size in the second half year. Average consumer prices remained rather stable between
€ 37 and 38. Other cotton casual trousers stabilised after some years of strong growth. Knitted
items like T-shirts, polo shirts increased 12 percent to the detriment of shirts (-4%) and
sweatshirts. Consumer expenditure on more formal products like coats and suits decreased,
while casual products like cotton jerseys and cotton and linen indoor jackets (without lining)
increased.
Prices of all product groups, especially T-shirts and polo shirts, were under pressure; higher
volumes were bought against lower prices. Prices of most product groups slightly decreased,
except prices of jeans.
The following developments in the children’s wear segment can be mentioned:
• Sales of jeans for children increased in volume (+3%) against lower prices (-9%), so
expenditure fell by 6 percent in 2004 (according to Gfk);
• Expenditure on T-shirts stabilised in a diminishing market. Printed (graffiti-look) items
performed especially well, just like trousers and mini-skirts; while expenditure on
dresses and coats fell sharply;
• Colours were bright and clear, like lime, orange, fuchsia and turquoise.
Forecasts for women’s and men’s outerwear show a higher growth in volume than in value.
Growth in the smart casual wear segment grew further, at the expense of formal wear, while
growth in leisurewear and sportswear will increase to a lower degree than in the period 2001-
31
2003. Expenditure on outerwear in The Netherlands is forecast to grow by 4 percent during the
period 2006-2007, after another fall in 2005, resulting in € 9.2 billion in 2007, of which
women’s outerwear almost € 5.0 billion.
3.1.8 Belgium
The share of clothing in total consumer spending in Belgium has been high and the Belgians
remained among the highest spenders per capita on clothing. Despite the high spending per
consumer, the clothing market is limited by the number of 10.4 million inhabitants. Belgium is
the seventh largest clothing market in the EU and the smallest market discussed in this survey,
with € 794 million or 3.1 percent of total EU-15 consumption. The Belgian clothing market
improved in 2004 after a slightly decrease in 2003. The expected growth for 2005 and 2006,
however, is limited.
Spending priorities of Belgian residents focus on housing and energy, food and non-alcoholic
beverages, transport and, recreation and culture. As in many other European countries, the
population is ageing.
Table 3.15 Development in consumer expenditure in Belgium, 2001-2006
Total consumption
Of which:
Clothing
Of which:
Outerwear
(f) = forecasts
2001
2002
2003
2004
143.0
2005
(f)
144.6
2006
(f)
146.7
132.6
134.6
140.2
7.7
5.8
7.9
5.9
7.8
5.6
7.9
5.5
8.1
5.6
8.2
5.6
6.5
83.2
6.6
83.3
6.5
83.2
6.6
83.5
6.7
83.5
6.8
83.4
The outerwear market in Belgium amounted to € 6.7 billion in 2004 in consumer prices
(including VAT), which is 83.6 percent of total clothing consumption. Expenditure on outerwear
increased by 2.3 percent in value in 2004 after a fall of 1.2 percent in 2003. On the basis of
lower average consumer prices, volume of consumption increased by 4 percent. Prices of woven
outerwear were more under pressure than knitted outerwear.
Table 3.16 Consumer expenditure on outerwear in Belgium, 2001-2004
Women’s outerwear
Men’s outerwear
- Boys’ outerwear
Total outerwear
2001
€ million
3,638
1,930
889
430
275
184
2002
€ million
3,677
2,001
915
438
286
191
2003
€ million
3,593
2,003
919
442
284
193
2004
€ million
3,678
2,061
926
451
281
194
Per capita
in €
829
493
550
615
395
810
6,457
6,593
6,515
6,665
648
Sources: Gfk and Euromonitor
According to Eurostat, consumption of leather garments in Belgium increased in the period 20002002 to € 60 million but decreased slightly in 2003 and 2004 and amounted to € 55 million in
2004. Belgian citizens have a high expenditure on leather garments per capita in the EU.
Some characteristics of the Belgian outerwear market are:
• In addition to being price and quality-conscious, Belgian consumers are also brandconscious. A recent trend, however, is the diminishing brand-loyalty: branded clothing is
more and more combined with private labels of H&M or Zara;
32
•
•
•
•
•
For specific products, like blue jeans and sports clothes, brand loyalty remained high
especially among young people;
The hype of casual and leisure wear came over the top; smart casual becomes more
popular, resulting in higher expenditure on fashionable suits; however, jeans are still
very popular;
Like in other major EU countries, people became bigger in length and width, which is
valid for men and women and in the younger age groups, too;
Men have an increasing affinity with fashion in clothing and in cosmetics;
Just like in Italy, there is a relatively big market for luxury clothes;
The Belgian market for outerwear is expected to show steady growth between 2004 and 2007,
with sales forecast to rise 2 percent annually to reach an estimated value of € 7.1 billion in
2007. Women’s outerwear will remain the largest market sector, accounting for € 3.9 billion in
2007.
3.1.9 EU-10 countries
In 2004, consumer clothing expenditure in the 10 new EU countries was valued at € 11.1
billion, which is equivalent to 4.3 percent of the EU-15 consumption of € 261.3 billion in that
year.
Consumption per capita in the EU-10 in 2004 averaged € 151, much less than the € 682
average in the EU-15 markets. It should be noted that this figure varies country by country,
ranging from an average of € 123 in Slovakia to € 397 in Slovenia (see table 3.1), with even
bigger differences between cities and the countryside.
Almost all countries have a large clothing manufacturing industry, which is primarily dedicated
to exports to other EU countries and most of the new EU countries still have a small domestic
market. Within the new EU countries, Poland accounted for 45 percent of total consumption,
despite a very low per capita consumption of € 132.
It is expected that those markets in Central and Eastern Europe, where the biggest differential
between supply and demand existed following reform of the political system, will see positive
growth. Saturation point has not yet been reached in these markets.
43 percent of the total population of the accession countries resides in Poland. Three countries:
Poland, the Czech Republic and Hungary accounted for almost 75 percent of EU-10 consumption
in 2004. These countries will be discussed briefly.
Poland
With an increasing population and an economy which was also affected by the economic
recession, the Polish GDP nevertheless still grew by 3.8 percent in 2003 to € 185 billion at
market prices. A further growth is forecasted to € 245 billion in 2006.
The Polish market for clothing was worth € 5.1 billion in 2004, of which 80% outerwear.
However, thanks to the economic climate and consumer confidence in the EU, demand is rising.
Table 3.18 Development in consumer expenditure in Poland, 2002-2006
Total consumption
Of which:
Clothing
Of which:
Outerwear
In % of total clothing expenditure
(f) = forecasts
2002
2003
2004
127.8
2005
(f)
134.1
2006
(f)
142.9
123.6
125.1
4.4
3.6%
4.8
3.8%
5.1
4.0%
5.3
4.0%
5.6
4.0%
3.5
80.1%
3.9
80.3%
4.1
80.4%
4.3
80.5%
4.5
80.5%
The weak spending power of Polish consumers can be illustrated by the fact that 85-90 percent
usually consider price as a very important factor when deciding to purchase clothing. Only 10-
33
15 percent of Poles are guided by genuine needs when shopping and can afford premium-priced
products. However, the significance of brand-name products or modern eye-catching designs is
increasing and consumers want not just functionality but begin to demand quality and style.
Younger people with higher incomes are more receptive to the latest trends and innovations in
fashion.
Increasing imports from Asian countries are usually much cheaper than domestic products and
for that reason very competitive in Poland, where low prices still considerably influence buying
decisions.
Czech Republic
Due to a relatively high population and its geographical position, the Czech Republic has been
favourable to foreign investors. It was the first East European country to abolish central
planning and has implemented rapid privatisation of factories and companies. The rapid growth
of foreign chains e.g. Tesco, Metro, Carrefour, Ahold, stimulated retail sales, with most
hypermarkets also selling non-food items such as clothing. Since 2000, the GDP grew by around
3 percent (at constant prices) to reach € 80 billion in 2003 and, according to Eurostat forecasts,
to € 102 billion in 2006. With a population of 10.2 million, Czech clothing consumption was
worth € 1,842 million in 2004, and represented 16.5 percent of the total by the accession
countries. The Czech per capita consumption of clothing was € 181, being amongst the highest
of the accession countries (see table 3.1). The more affluent Czech people in the urban areas
have become increasingly interested in fashion.
Consumer expenditure is forecast to increase by just over 2 percent each year in constant value
terms between 2005 and 2009.
Hungary
After a tough period of recession and high inflation during the 1990s, Hungarian GDP started to
grow after 1999 by around 4 percent (at constant prices), up to € 73 billion 2003 and will grow
further to € 94 billion in 2006 (according to Eurostat forecasts). Along with Czech Republic,
Hungary also created an open climate for foreign investment and attracted shopping mall
developers and large foreign chains. In 2004, clothing consumption by 10.1 million citizens
amounted to € 1,471 million, a share of 13 percent of the EU-10 total (see table 3.1). Growth in
the period 2001-2004 accounted for 33 percent, an annual average of 11 percent. This strong
development can primarily be attributed to the increase in disposable income, which enabled
many Hungarians to increase their spending on clothing items. Growth rates are likely to slow
down in the coming years to an annual growth of 6-7 percent.
3.2
Market segmentation
The general criteria for market segmentation of outerwear are:
• by age – babies’ and children’s wear and adults (15+), the latter often being divided into
age groups in several ways, for instance 16-24, 25-34, 35-54, 55-64 and 65+
• by gender - women/girls and men/boys
• by type of product and type of activity resulting in specific clothing behaviour, like
formal, casual, leisure and active sports dress
• by attitude towards fashion and life style; and,
• by product/quality ratio.
Other criteria are based on special events (weddings, parties, communion etc. in these cases
dress can be considered as formal wear) or other circumstances, like maternity wear.
Segmentation by demographical factors
The size and age structure of the population is one of the basic determinants of how much will
be spent on clothing. Chapter 2 shows the composition by age groups of the population in the
EU. Although this may appear to be a rough method for categorising the market, it is
interesting because:
• generally speaking, different age categories have different clothing behaviour, and
34
• developments within the various age categories can be followed, by comparing results with
projections.
The EU population has a declining birth rate and an ageing population. In the selected EU
countries, the category below 20 years has decreased. The categories 40 and older have
increased substantially. In 2000 about 40% of the total population was older than 45. As the
"baby boom" generation becomes older, we see the population as a whole becoming "greyer",
apparent in the number of senior citizens above 55 years of age. Population growth is expected
to slow down in the selected EU countries.
Another important demographic development is the increase of one- and two-person
households. The persons in such households do not have many household or family obligations,
so they have a lot of leisure time. Besides that they have rather high incomes. Both factors are
stimulating clothing consumption.
In general, there is much dynamism in consumer preferences at the moment. Cultural changes
are succeeding each other rapidly. For example, one could think of changes in the volume and
use of free time and of quickly changing shopping behaviour. All this makes predictions of
consumer behaviour rather tricky. A new trend is also that people buy different clothes for
different activities and occasions.
The buyer of children’s wear, certainly for the younger age groups, is an adult, mostly the
mother. Her fashion consciousness and general buying behaviour have a long-lasting
dominating influence on the purchase of clothes for the child. The social position of the child's
family also plays a role in these decisions. The trend towards there being more working women,
smaller family sizes and older parenthood mean that, in many households, there is a higher
level of per capita spending on children than in any previous period.
As they grow up, boys and girls increasingly raise their voices as to how they want to be
dressed. This development takes place in phases, with varying influences from the outside.
Fashion awareness for clothing is increasing among the younger children. Almost all designers
and top fashion retailers launch their own children’s couture. The main buying force comes from
9-14 year-olds, who are more financially independent (i.e. they have a clothing allowance) and
fashion conscious, and are heavily influenced by pop celebrities and their favourite sport icons.
In terms of consumer targeting, the market for men (15+) can be divided into two broad
groups: younger buyers, who tend to be more concerned with image and fashion, and older
buyers, who are concerned more with quality, value, practicality and durability. However, the
dividing line between these two groups in terms of age is not easy to draw. Fashion is important
to many consumers in their 30 to 40s and quality has become an increasingly important
criterion for younger consumers.
The women’s clothing market is generally fast moving and volatile, particularly so amongst the
crucial younger age groups for whom fashion is the key driver. However, unlike men’s
expenditure, expenditure by women on clothing increases to the age around 60. This is
probably the result of women’s sustained purchasing of higher-priced and better quality clothing
in middle life, which boosts value rather than volume growth in the market. The women’s wear
market is not only much larger than the men’s wear market, but is also more dynamic and
enjoys growth in most of the EU countries. Fundamentally, women spend far more on clothes
than men do and they spend more consistently throughout their lives.
Segmentation by type of product and type of activity
The outerwear market can be divided into several segments based on type of product combined
with type of activity, resulting in a specific clothing behaviour. As mentioned in chapter 1, the
following categories can be distinguished: formal clothing, casual wear,
basic leisurewear, active sportswear.
The active sports segment in the EU will continue to expand its influence on the leisure and
casual segments. Formal wear will lose out to these sectors but ‘smart casual’ will be further
influenced by the workplace. This can be illustrated by the success of cotton trousers including
the renewed popularity of jeans. Increased demand for knitted products like T-shirts, sweaters,
jumpers, pullovers, vests etc. illustrates the popularity of casual wear, too.
35
The children’s clothing market is in some ways as much influenced by fashion, as is the market
for adult clothing. For boys and girls, there had been a switch over the past several years
towards purchasing sport and sport leisure type wear as casual clothing, with almost all
children’s wear classed as casual.
In addition to the description of developments in clothing behaviour in the major EU countries in
chapter 3.1, a general overview is given below (figure 3.1). The opinion of some experts is that
the move in clothing behaviour from formal to casual and from formal and casual to leisure and
active sportswear will not, or only slightly, be continued in the coming years.
The situation in the major EU-15 countries is mentioned below.
Table 3.19
Segmentation of the clothing market in major EU countries by clothing behaviour,
2004
Formal
men women
40
43
41
45
43
47
37
40
43
47
34
37
39
44
40
44
Germany
UK
Italy
France
Spain
Netherlands
Belgium
EU-15
Casual
men women
33
32
31
31
30
29
31
29
30
30
35
37
32
30
33
31
Basic
men women
22
21
22
20
20
19
27
26
21
19
25
21
23
21
21
20
Active sports
men women
5
4
6
4
7
5
5
5
6
4
6
5
6
5
6
5
Total
men women
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
Source: derived from several statistics
Figure 3.1 Segmentation by clothing behaviour in the EU-15, 2004
%
45
40
35
30
25
20
15
10
5
women
0
formal
basic leisure
men
casual
active sports
Segmentation by attitude towards fashion and life style
36
Elements of fashion are: colour, design, exclusivity and style. The present consumer in Western
Europe wants to be seen as an individual with an own life style. Especially in the fashion
segment (higher price ranges), clothing products have an individualising function. Therefore the
demand of the consumer has become more specific.
Character, ideas and attitude to life will be emphasised by the way a person dresses. Clothing
serves as the means of expression of personality. Combination fashion is eminently suited to
expressing a personal style. Consumers set priorities in their pattern of expenditure according
to their life style. The increasingly individualistic nature of society will bring about a rise in
demand for goods with an expressive value. People do not mind spending their money on such
goods, while for products with a lower priority, a low price is the main criterion.
In the world of fashion, there are some important concepts. One of them is fashion mentality. It
means the degree of rapid acceptance of new fashion trends by consumers. This concept can
divide clothing products into: avant-garde, innovative, current, well known and out-dated.
Another important concept regarding fashion consciousness is 'conception of culture'. It is the
attitude of a consumer on patterns of culture. A consumer can choose for conforming to the
dominating culture or he/she can choose just the opposite (opposition to traditional culture).
This concept helps to distinguish the following kind of clothing products: extreme, different,
funny, neat, chique.
In general the judgement about what is beautiful or ugly is currently not so much determined
by macro-economic factors like age, income, profession and/or region, but much more by
factors like fashion consciousness and culture.
The variety in life styles and sub-cultures has led to an increase in the fragmentation of the
clothing market. It has also become rather difficult to predict the buying behaviour of the
clothing consumer.
The consequence of the above is that the consumer expects retailers to have a clear image. In
order to meet these consumer demands, many clothing stores are going in for upgrading and,
on the other side, value retailers and clothing discounters start or maintain their operating on
low-price level. This will be discussed in more detail in chapter 7 ‘Trade structure’.
With fashion a less important concept these days, but life style a more important one, many
suppliers are likely to broaden their non-clothing product ranges, in particular adding by
accessories, shoes, sunglasses and similar products, either directly or via licensing.
In 2003, Mintel published (European Consumer Trends) ten consumer typologies based on
shopping habits of consumers, demographic characteristics and life-style statements each
related to clothing and shopping. These typologies represent the following statements:
• The discerning
-‘Its worth paying extra for quality goods’
• Label seekers
-‘A designer label improves a person’s image’
• Stylish
-‘I have a very good sense of style’
• Fashion conscious
-‘I like to keep up with the latest fashions’
• Well dressed
-‘It is important to me to look well dressed’
• Bargain hunters
-‘I am a bargain hunter’
-‘I really enjoy shopping for clothes’
• Shopaholics
• Practical
-‘I buy clothes for comfort, not for style’
• Sporty
-‘I do some form of sport or exercise at least once a week’
• Individualists
-‘I like to stand out in a crowd’
The data in table 3.11 show a comparison of the categorisation of the consumer in some selected
countries.
Some of the conclusions of this (much more extended) research are:
Discerning consumers were most likely to come from the UK while Germany had a particularly low
level of discerning customers, possibly reflecting the fact that consumers in Germany are more
likely to expect quality products without having to pay extra, as well as their ability to obtain
quality merchandise from discount retailers.
Label seeking was most prominent in Spain, and of least interest to consumers in the UK. Maybe
this was because consumers in UK are more likely to take mass-market designer brands for
granted, these having been around longer than in Spain. Those in France were the most likely to
37
be categorised as stylish and the well dressed, with the stylish least likely to come from Germany,
and the well dressed from Spain.
France and UK were the most likely locations for practical consumers, although there was little
difference across the countries on this point. Sporty consumers were most likely to live in the UK,
with much lower proportions in Spain and Germany, which is somewhat surprising given the
sporting achievements of these two nations.
Table 3.11 Clothing consumer typologies, by country, 2002
Germany
Discerning
42.4
Label seeking
18.7
Stylish
39.1
Fashion conscious
28.5
Well dressed
54.1
Bargain hunters
24.0
Shopaholics
34.7
Practical
46.8
Sporty
37.1
Individualists
25.1
Source: TGI Europe-2002/Mintel
UK
70.4
10.7
42.8
22.7
55.2
25.2
35.7
49.3
45.6
14.3
France
58.9
13.9
57.0
38.5
61.9
49.5
29.8
50.7
43.3
23.8
Spain
62.7
21.1
51.6
28.8
47.3
15.7
31.0
47.4
34.3
17.5
Segmentation by price/quality ratio
Quality is an essential requirement for the higher segments of the clothing market. There are
several aspects about it: quality must be reliable, may not change in time, is closely connected
with service and products have their own brand and design. Quality requirements are also that
the clothing fits well and must be comfortable.
The trend towards looking for higher quality and more expensive products has increased in recent
years, but an even more important trend is the price-conscious consumer looking for fashionable
trends as well as good quality materials. Value for money is still the most important
purchase criterion for most consumers.
The major purchase criteria as based on several segmentation criteria, like segmentation by
attitude towards fashion and by price/quality ratio as well as the consequences for the store
choices, are given in the diagrammes below.
The middle price segment, with a market share of 40 percent, continues to dominate. This and
more information about the retail and other distribution channels will be discussed in more detail
in chapter 7 ‘Trade structure’. More information about price levels and price structures will be
discussed in the chapters 8 and 10.6.
38
High price luxury
segment
Market share 5 percent
Upper middle price
segment
Middle price segment
Low to middle price
segment
Low or very low price
segment
PRODUCT CRITERIA
BRAND
NAMES
FASHION CRITERIA
Limited collections, made with
special care; sometimes handmade,
high quality materials
Designer/ brand name stands for
exclusivity and fashionable clothes
Dolce & Gabbana,
Prada,
Georgio Armani,
Donna Karan
High fashionable collections.
Exclusively designed
materials and artworks
Trend-setting in fashion
Collections are produced after presale; extra attention to fitting and
accessories
Brand-name goods; good quality
materials; broad range in design
Max Mara, Chine,
Hugo Boss,
Blumarine,
Marni, Strenesse,
Marc Cain
Collections are produced after presale; good to medium quality
materials
Trend-following or classical
assortment; brand-name goods
Produced in larger quantities to
lower the price; basic styles, less
changes to patterns, basic fitting
Medium quality materials/lower
fashionable
French Connection,
In-wear, Benetton,
S. Oliver, Esprit,
Mexx
Large variety of styles
and of materials
Styling and fitting are vitally
important
Product in line with the latest
fashion trends
Good fitting is important
Recognisable by brand-name
visible on outside
Produced in large quantities to
lower the price; less attention to
fitting and patterns
Basic quality/high fashionable
Basic or low quality
Special sales/ offers
Inexpensive products
Produced in large quantities
Private labels, like
C&A, Promod, WE,
Marks & Spencer,
Hema, Etam
Collections with a view to
current fashions
Private labels, like
Hennes & Mauritz,
Zara, Mango, Topshop
No brands
High fashionable, close to
trends
Standard products without
particular fashion
requirements
STORE CHOICES
PROMOTIONS
PRICE CRITERIA
High price luxury
segment
Designer stores
Special departments in
department stores
Exclusive retail stores
Promotion by
catwalk shows and
fashion magazines
Price less, or not, important
Upper middle price
segment
Independent speciality
shops
Manufacturer’s direct stores
Department stores
Advertising in
fashion magazines
Acceptance of price for fashionable
collections and consumer brands
Middle price
segment
Independent speciality
shops
Department stores
Home shopping companies
Advertising in
lifestyle and fashion
magazines
Price thresholds must be observed
Low to middle price
segment
Clothing multiples
Variety stores
Advertising in
lifestyle magazines,
RTV, newspapers,
billboards and
door-to-door leaflets
Price important
Clothing multiples
Variety stores
Value retailers
Discounters
Super- and hyper-markets
Street markets
Advertising in
lifestyle magazines,
billboards
Advertising in
newspapers and doorto-door leaflets
Price important
Low or very low price
segment
Special (low) prices
39
3.3 Consumption patterns and trends
Demand for clothing is determined by factors like demographics and life styles, as discussed
above. Other factors are: income and spending power, priorities in consumer choices,
developments in fashion, brand awareness and preferences, climate and environment.
Income and spending power
Economic growth has slowed down across much of Western Europe since the turn of the
millennium, with the softness in the economy driven for a large part by cyclical factors, such as
reduced exports amid global weakness. However, in countries such as Germany and Italy, the
economy also suffers from structural barriers to growth, such as rigid labour market and a strict
regulatory environment.
Reduced consumer confidence and an increase in unemployment were, among others, the main
factors leading to a smaller growth in total consumer spending. The income elasticity of clothing
is about equal to one. So when consumer incomes rise by 1%, the demand for clothing will rise
by 1% too. However, this elasticity is higher for rising incomes than for declining incomes.
Priorities in consumer choices
There are significant differences in consumption habits in the varying EU countries, due to
differences in culture, traditions and tastes. A growing trend for ageing consumers to spend
cash on homes, personal care, savings or leisure time, means apparel retailing in the EU is
going through major structural change.
Clothing accounted for 4.9 percent of household expenditure in the EU in 2004, while this
percentage was still more than 6 percent in 1990. In 2004, spending on clothing compared to
total consumer expenditure, was higher than the EU average in Italy and Belgium while it was
lower than the EU average in France and The Netherlands. Italian consumers devote the highest
share of expenditure on clothing, at 5.5 percent in 2004. The UK showed a remarkable growth
in the period 2001-2004 in spending on clothing, while Spain showed a more modest growth.
The share of clothing on household expenditure increased in the review period in these two
countries, unlike other major EU countries.
Brands
In a world of change and insecurity, brands provide an ideological home. All humans face a
fundamental conflict between wanting to be different and needing to belong. Belonging to a group or
a community of some kind provides us with an identity that says something about how we perceive
ourselves and how others should perceive us. Brands are important because:
• In the purchase decision, they give consumers confidence about the product that goes
beyond pure quality assurance. Consumers know they will not be disappointed and that they
can be sure of a product’s durability and workmanship.
• Only some brand attributes are related to the product. Consumers feel it is important that a
brand should not only guarantee quality but should also project the image that relates to
their life style.
• In Europe and the USA, the majority of consumers clearly look to well known brands for
better quality and claim that they will pay more for a brand that they like and which fits their
image and life style, which also will be underlined by advertising.
• Consumers do not distinguish between supplier and retailer brands. Either can reach the
consumer with a branded proposition. Suppliers are opening their own stores (such as Nike,
Levi’s, Mexx, Boss etc.); retailers are offering their own products (such as Zara, Gap, C&A,
H&M etc.).
• A polarisation of brand leadership also appears likely in Europe. Retailers in Germany, UK,
France and other EU countries are clearly aiming to replace manufacturer brands with their
own identities in the middle market, leaving the upper market to designer brands.
Fashion developments
Some general trends mentioned in former CBI surveys are still valid:
• Styles are becoming increasingly streamlined with softer silhouettes, and as a result, fabrics
are becoming important – and, with that, there is the need to make the performance
characteristics and aesthetics of a fabric appealing to the customer.
40
•
•
•
•
Consumers want a simplified, more flexible wardrobe and are spending less. People are
therefore demanding less structured, more casual clothes, with softer silhouettes and softer
fabrics. At the top end, they are looking for luxury fibres and fabrics to be incorporated into
the casual look.
There is a definite trend to smart casual.
Young people are also looking to life-style brands and find this in active sportswear, which is
being translated into street wear (Nike, Fila, Adidas etc.).
The children’s wear market is increasingly driven by fashion, with children becoming ‘older
younger’ and with older girls tending to buy young adult designer wear.
For current and detailed fashion information for colours and styles, we refer to CBI Fashion
Forecasts.
Climate
Generally spoken, weather has an impact on the timing of expenditure, which tends to be highly
seasonal. Unexpected weather changes influence consumers in their purchasing decisions.
Consumers in warm, dry climates tend to purchase less durable, cheaper clothing, which influences
the share of clothing expenditure.
Owing to its cold winters, a comparatively high proportion in value is spent on heavy garments such
as winter coats and jackets in Scandinavian countries (like Sweden and Finland), Germany and
Austria.
41
4
PRODUCTION
4.1
EU clothing production
The EU-25 turnover in clothing production declined by 5.7 percent in 2004, on top of a 5.8 percent
decline in 2003. Preliminary figures for 2005 indicate that the downturn in production is increasing
again.
The stagnation of demand - both domestic demand and external demand - and the increase of
production costs explain why the total turnover in the clothing sector declined. The biggest falls
were in Finland (-29.2%), Denmark (-16.9%), Slovakia (-15.6%), France (-12.4%), Belgium (10,9%), the UK (-10.6%), and Lithuania (-10.1%). While Spain (+4.1%), Latvia (+6.1%), Ireland
(+8.1%) and especially Slovenia (+17.0%) managed to cope with the situation. As for the rest, the
other major EU countries recorded setbacks: Germany (-4.8%) and Italy (-1.4%).
The number of employees in the apparel sector fell by 6.2 percent in 2004 to 1.1 million, of
which around a third is active in the knitting sector. The number of enterprises decreased, too.
The EU clothing industry is dominated by a large number of small and medium-sized
enterprises; the average company had 16 employees in 2004, the same number as in the
previous year.
With exports weaker and import volumes up, turnover of EU-15 clothing production fell almost
10 percent in the period 2001-2004 (no figures available for EU-25).
Price competition among suppliers has intensified, resulting in a very slow growth in production
prices according to Eurostat’s EU production price index in Euro (2000=100):
EU-15
EU-25
2004
103.7
103.4
2003
103.3
103.0
2000
100.0
100.0
1998
98.4
n.a.
This is causing concern among EU producers, who are finding it increasingly difficult to match
low import prices. Furthermore, EU exporters suffered in 2004 from the appreciation of the euro
against the US dollar
Table 4.1 EU-15 and EU-25 clothing production structure, 2001-2004
Total employment ('000)
Number of companies
Investment (€ billion)
Turnover (€ billion)
952.2
48,287
1.1
68.5
902.6
45,631
1.0
66.8
840.5
43,030
0.93
63.1
788.6
40,664
0.93
61.7
1105.5
64,827
1.07
74.9
EU-15
% change
2003-2004
- 6.2%
- 5.5%
0.0%
- 2.2%
Turnover/employee
Investment/turnover
Employee/company
Source: Euratex
71,930
1.61%
19.7
74,000
1.50%
19.8
75,075
1.47%
19.5
78,240
1.51%
19.4
67,750
1.43%
16.3
+ 4.2%
+ 2.7%
- 0.5%
2001
EU-15
2002
2003
2004
EU-25
2004
Italy is the dominant clothing producer in the EU with 36 percent of total EU turnover in 2004,
followed by France (12%), Germany (11%), Spain (8%) and UK (7%), which indicates that 74
percent of the EU garment industry is concentrated in these five countries.
Clothing manufacturers in the EU can be divided into:
• Manufacturers that have access to the end consumer using own retail structures (vertically
integrated companies),
• Manufacturers that are developing own design/brands and
• Manufacturers that are working only as subcontractors (mostly on a cut, make and trim/CMT
basis).
42
Most EU manufacturers have developed an outsourcing policy and may include:
• small, rush-orders in their own factory using modern technologies;
• specialist products and products with a reasonable profit margin are subcontracted at short
distance;
• series of bulk products are sub-contracted in low-wage countries.
Some small apparel sectors will remain in Western Europe to guarantee speed and flexibility. In
some sub-sectors, which should be capable of automatisation or production of a relative high value
added, there is room for production capacity. So the West European clothing sector will further
specialise in market segments with a high value added.
The leading companies in the clothing industry are given in table 4.2. It has to be noted that the
turnover can be influenced by an increasingly marked involvement in distribution: growing
participation or concentrated distribution structure.
Table 4.2
Share of the main companies in turnover of EU clothing industry, 2002-2003
Rank Company
Country
1 Adidas-Salomon AG
Germany
2 Benetton-Group
Italy
3 LVMH-Group
France
4 Gruppo Marzatotto
Italy
5 Esprit Europe
Germany
6 Giorgio Armani
Italy
7 Max Mara Fashion
Italy
8 Hugo Boss
Germany
9 Nike Europe
Netherlands
10 Levi Strauss Europe
Belgium
11 Multiline Textil
Germany
12 VF Europe
Belgium
13 Diesel SpA
Italy
14 S. Oliver Group
Germany
15 Bestseller Wholesale
Denmark
16 IT Holding
Italy
17 Mexx Holding
Netherlands
18 Escada-Gruppe
Germany
19 Sixty
Italy
20 Ermengildo Zegna
Italy
Source: Textil Wirtschaft Nr.51-2004
Product-groups
Sportswear
Family wear
Fashion/ leather goods
Men’s and women’s wear
Family wear and accessories
Women’s wear and underwear
Men’s wear
Sportswear
Jeans wear
Shirts and bodywear
Family wear and sportswear
Jeans- and street wear
Women’s wear
Women’s wear and accessories
Jeans- and street wear
Men’s- and sportswear
2003
€
million
2,222
1,859
1,680
1,470
1,360
1,250
1,130
1,009
1,002
931
871
770
750
700
670
668
634
621
620
601
2002
€
million
2,288
1,991
1,610
1,487
1,113
1,300
1,111
1,029
1,034
1,034
803
693
683
655
635
655
539
773
570
661
% change
2003/2002
- 2.9%
- 7.1%
4.3%
- 1.1%
22.2%
- 3.8%
1.7%
- 1.9%
- 3.2%
-10.0%
8.5%
11.1%
9.8%
6.9%
5.5%
2.0%
17.6%
- 19.7%
8.8%
- 9.1%
Many of the leading concerns are active in the luxury fashion sector, like Louis Vuitton/Moet/
Hennessy (LVMH), Marzattotto, Armani and Max Mara.
The most important producer of children’s wear was Groupe Zannier (turnover 2003: € 550 million),
at distance followed by Children Worldwide Fashion or CWF (€ 170 million), both from France.
Leading jeans wear (most of them including street wear) companies were, besides Levi’s Europe,
Diesel and Sixty (both from Italy), the Swiss Big Star and the German Mustang.
Important active sportswear companies, besides Adidas and Nike, are Quicksilver Europe (France),
Pentland Group (UK), Puma (Germany), Basicnet and Fila Sport (both from Italy) and Lafuma
(France).
Latest available EU-25 production figures for leather garments are valid for 2002; totally 49,722
tons or units were produced valued € 910 million. Italy was the dominant leather-clothing
producer in the EU with 71 percent of total production value, followed by Spain with 14 percent.
96 percent of the EU leather garment industry is concentrated in seven countries, besides Italy
and Spain, France, Germany, United Kingdom, Portugal and Poland.
EU manufacturers have been moving away from the production of bottom-of-the-range
garments towards middle to top of the range products, while subcontracting the manufacture of
more basic items abroad.
43
4.2
Delocalisation of clothing production
The restructuring policy of many manufacturing companies in the EU during the last two
decades led to relocation of the clothing production, mainly based on labour cost comparisons.
However, cost may play an important role in defining the ideal location, but it is only one of the
elements to take into account. For example: a well-organised, highly productive factory in
country A can offer better prices than a poorly organised, low efficient factory in country B,
despite lower labour costs in country B.
The foreign policy of clothing companies takes many forms; most of the largest companies
entered joint ventures in low-cost countries or have established their own factories abroad.
Besides these forms of ownership structure, subcontracting forms an important part of activities
of the EU clothing industry. It is possible to identify two basic concepts of subcontracting: Cut,
Make and Trim (CMT) and Free on Board (FOB). Another possibility for manufacturing
companies is sourcing abroad, mainly for additional products to their own product range.
In the case of CMT, the whole manual production has been relocated, though the material
(fabric+trims) purchase is held on to for efficiency and quality reasons. The quality control has
been relocated too and is typically managed by travelling controllers.
In the case of FOB, the supplying manufacturers abroad receive complete specifications for the
design, quality of the fabric, accessories and other materials etc. Subsequently, the suppliers
manage the purchase of the materials themselves, so the whole supply process, including
purchasing of fabric and trims and production as well as quality control, is the supplier’s
responsibility. FOB with a direct relationship between buyer and supplier is called full package.
It is most usual to importers/wholesalers and importing retail organisations but only to a
minority of the manufacturing companies. In the latter case, this often concerns additional
products (accessories) or basic products like shirts, jeans, T-shirts etc. to complete the
manufacturer’s product range. Another form of full package is to use a sourcing office or a local
agency (in the supplier’s country).
The form of CMT is frequently employed in an estimated 80 percent of clothing companies in
Western Europe and in Scandinavia, while FOB accounts for about 20 percent. The foreign policy
gives EU manufacturers the possibility to maintain control over the management and quality of
the outsourcing operations and to respond quickly to changing market demands.
44
5
IMPORTS
5.1
Total imports
Before we take a look at the import figures for outerwear into the EU, it should be noted that all
data presented in this chapter are official trade figures provided by Eurostat. We therefore refer to
the remarks in chapter 2, explaining that official statistics are not always all embracing and they
should be interpreted with care.
5.1.1 EU-25 imports
The 25 EU member states imported outerwear including leather garments valued € 71.7 billion in
2003, of which 37 percent came from other EU countries.
Official trade figures of Eurostat did not include figures of the 10 new EU countries from before
2003. For that reason EU exports of EU-15 and EU-10 are discussed separately below.
EU-15 imports in total
EU outerwear imports have slowed markedly in recent years. After rising in value by 3.5 percent
in 2001 and 0.8 percent in 2002, they fell by 2.0 in 2003 to € 67.4 billion. In volume terms,
imports carried on rising: 14 percent in 2003, reaching 3.93 million tons.
The average import price fell by 14 percent in 2003, caused by factors like an intensified price
competition among suppliers and a 19 percent cheaper US dollar in 2003 (in terms of euros)
than in 2002.
Germany remained the leading importer despite a fall in imports of 9.2 percent in the period
2001-2003, with an import share of 24 percent in terms of value, followed by the UK (18%),
France (15%), Italy (10%), Spain and Belgium (each 7 %). The Netherlands (6%) ranked sixth,
followed by Austria (4%) and Denmark (3%).
Figure 5.1 Imports of outerwear by EU-15 countries in value, 2001-2003
in € billion
20
18
16
14
12
2001
2002
10
2003
8
6
4
2
Ir
el
st
ria
D
en
m
ar
k
Sw
ed
en
Au
nd
s
an
d
Po
rt
ug
al
G
re
ec
e
Fi
nl
an
Lu
d
xe
m
bo
ur
g
N
et
h
er
la
iu
m
n
ai
Be
lg
Sp
It
al
y
ce
Fr
an
G
er
U
ni
m
te
an
d
y
Ki
ng
do
m
0
Source: derived from Eurostat 2004
Developments in imports of outerwear vary strongly per EU country. This depends on several
factors like size and structure of domestic production of outerwear, the possibilities and volume
45
of re-exports, developments in demand as described in Chapter 3.1. EU countries can be
divided, by developments in value of imports during this period, into:
• Very strongly decreasing imports (more than 9 percent) in Germany, The Netherlands
and Luxembourg;
• Strongly decreasing imports (6 percent) in Ireland;
• Very slowly decreasing imports (between 0 and 3 percent) in France and Denmark;
• Stabilising imports in Belgium, Austria, Sweden, Portugal, Greece and Finland;
• Strongly growing imports (4 percent) in United Kingdom;
• Booming imports (between 10 and 20 percent) in Spain and Italy.
China remained the leading outerwear supplier to the EU, before Turkey and Italy. Total imports
from China increased considerably in the period 2000-2003. In 2000, 9.0 percent of EU imports (in
terms of value) came from China; this percentage increased to 10.3 in 2002 and to 11.5 in 2003.
Turkey passed Italy in 2001 and became the second supplier to the EU with a share of 9.1 percent
in 2003. Italy (6.9%) ranked 3rd before Germany (6.9% too). Romania (4.8%) passed Belgium and
became the fifth supplier. Belgium (4.6%) on the 6th place was followed by Bangladesh, The
Netherlands, France, Morocco, Tunisia, India and Portugal.
Just over 37 percent of the total value of EU outerwear imports came from other EU-15 countries in
2003, mainly from Italy (19% of intra-EU imports). Other major suppliers to the EU market were
Germany, Belgium, and The Netherlands, followed by France, Portugal and the UK. The total import
share of EU countries decreased, this percentage being 41 percent in 1999 and 37 in 2003. Imports
from the following major EU suppliers decreased in the period 2002-2003: Italy (- 7.5%), Belgium
(- 7.6%), The Netherlands (- 5.6%), France (- 7.0%), Portugal (- 6.7%) and the United Kingdom
(- 7.6%).
Total EU-15 imports from developing countries increased in terms of volume (+19.3%) and
value (+ 3.1%) in the period 2001-2003. The different areas showed varied patterns:
• Growing imports (+ 4.0% in value terms) came from Asian developing countries, like
China and Bangladesh and to a lesser degree from India and Pakistan, despite falling
imports from countries like Indonesia, Thailand, Sri Lanka, Vietnam and Cambodia.
These imports rose 1.5 percent in 2002 and 2.5 percent in 2003 and accounted for a
slightly increasing 59 percent of total imports from developing countries;
•
•
Imports from Mediterranean countries, like Turkey, Morocco and Tunisia increased by
almost 5 percent in 2002 and decreased a very limited 0.2 percent in 2003. It has to be
noticed that Turkish exports to the EU grew considerably (24% during 2001-2003),
while exports by Morocco and Tunisia decreased respectively 7 and 9 percent during the
same period! Mediterranean countries accounted for 38 percent of total imports from
developing countries;
Imports from ACP (Africa, Caribbean and Pacific) countries fell by 19 percent in 2002 and
by 11 percent in 2003. These imports were limited to 2.6 percent of imports from
developing countries. Major suppliers were located in Mauritius and Madagascar.
As will be described in chapter 9.3.2, all quota in the clothing sector were eliminated as from 0101-2005. However, recent developments in EU imports from China led to a new deal, in which a
limitation has been placed on the growth of Chinese textile exports to the EU until 2008. This
agreement between the EU and China (10-06-05) covers several outerwear product groups, like
T-shirts, sweaters, pullovers etc., trousers, blouses, t-shirts and dresses. The fact that quota for
two product groups (sweaters, pullovers etc, and trousers) are already utilised in August 2005
and quota for several other product groups will be utilised soon, creates opportunities for other
developing countries. An overview of the quota and the reached quantitative levels can be found
at http://sigl.cec.eu.int
Imports from countries outside the EU (other than developing countries) decreased strongest,
mainly imports from Hong Kong, Poland, Hungary, Taiwan, and the USA, despite increased
imports from Romania, the Czech Republic and Switzerland. A more detailed overview of EU
46
import sources for outerwear is given in appendix 2.2, while the role of developing countries will
be discussed in chapter 5.3.
Table 5.1
Imports of outerwear (excluding leather garments) into the EU-15 by
area of origin, 2001-2003
Total
of which from:
Developing countries
- Asia
- Mediterranean
- ACP countries
- Central & South America
- CEECs
- Other developing countries
EU-15 countries
Other countries
- CEECs
- Asia
- Europe
- America
- Mediterranean
- Other developed countries
2001
€ millions
68,232
2002
€ millions
68,745
2003
€ millions
67,373
30,022
17,497
11,152
1,093
182
96
2
25,790
12,420
8,480
3,065
382
358
120
15
30,654
17,763
11,709
885
204
90
3
26,189
11,902
8,390
2,709
405
297
84
17
30,956
18,202
11,688
791
189
84
2
25,071
11,346
8,094
2,424
474
267
68
19
% change
2002-2003
- 2.0%
+ 1.0%
+ 2.5%
- 0.2%
- 10.6%
- 7.4%
- 6.7%
- 14.8%
- 4.3%
- 4.7%
- 3.5%
- 10.5%
+ 17.0%
- 10.1%
- 19.0%
+ 9.7%
The outerwear import figures in table 5.1 do not include figures for leather garments.
Total EU imports of leather garments accounted for € 1.6 billion in 2003 and fell in 2002 (- 9.3%)
as well as in 2003 (- 14.7%). Developing countries play a dominating role in EU imports of leather
garments. In terms of value, 51 percent of total imports came from Asian developing countries
(mainly China, India and Pakistan), 15 percent came from the Mediterranean (mainly Turkey), 26
percent came from other EU countries (mainly Germany and Italy) and more than half of the
remaining 8 percent came from CEECs (mainly Romania).
Table 5.2
Germany
France
Italy
UK
Spain
Netherlands
Belgium
Austria
Denmark
Sweden
Other (5)
EU-15 imports of leather garments in total and by trade partners in value,
2001-2003 (in € million)
2001
2002
593
288
211
280
205
129
111
72
56
57
122
520
249
230
285
164
107
98
71
47
46
109
2003 Leading trade partners in 2003
(between brackets share in total of their area of origin, in %)
434
209
205
191
166
96
88
67
41
32
111
China (37); India (17); Turkey (17); Pakistan (7); Italy (5); Netherlands (2).
Turkey (15); Belgium (13); China (13); Italy (11); India (9); Pakistan (8).
India (31); China (20); Romania (11); Hungary (5); Poland (4); France (4).
China (24); Turkey (18); Pakistan (15); India (15); Italy (12); Germany (4).
India (32); China (19); Pakistan (14); Turkey (9); Morocco (7); France (5).
China (38); Turkey (19); Germany (12); India (10); Pakistan (9); Denmark (3).
China (18); Turkey (15); France (11); Netherlands (10); Pakistan (10); India (8).
Germany (62); Italy (12); India (4); China (4); Romania (3); Turkey (3).
China (47); India (16); Sweden (9); Turkey (8); Germany (7); Pakistan (3).
China (46); India (13); Pakistan (10); Denmark (6); Germany (5); Italy (5).
Italy (17); Spain (15); Pakistan (12); Germany (11); UK (10); India (10).
EU-15
2,124 1,926 1,640 China (25); India (17); Turkey (12); Pakistan (9); Germany (7); Italy (7)
New EU member countries (10)
Imports of outerwear (excluding leather garments) by the ten new EU members amounted to €
1.8 billion in 2003. Compared to the EU (15), imports by the ten new member states are limited
to less than 3 percent.
Three leading suppliers (China, Italy and Turkey) to the new members accounted for half of the
total imports.
47
Table 5.3 Outerwear (excluding leather garments) imports by 10 new EU member countries
in terms of value (€ million), 2003
Poland
Hungary
Czech Rep.
Slovenia
Cyprus
Slovakia
Estonia
Malta
Lithuania
Latvia
Total EU-10
€
million
589.6
571.0
460.0
302.6
180.2
218.1
98.1
92.0
89.5
79.8
Leading suppliers
(between brackets share in %)
China (40); Turkey (15); Italy (8); India (4); Vietnam (2)
Italy (21); Hong Kong (16); China (13); Turkey (10); Romania (5)
China (28); Turkey (10); Italy (9); Poland (7); Slovakia (5)
Italy (25); Turkey (17); China (15); Croatia (4); Romania (4)
Greece (32); China (16); Italy (15); Spain (5); UK (5)
China (34); Turkey (11); Czech Rep. (11); Italy (8); Poland (6)
China (29); Finland (9); Italy (7); Turkey (7); Hong Kong (5)
Italy (24); China (19); Spain (15); UK (8); Turkey (6)
China (30); Italy (11); Turkey (10); Poland (9); Estonia (5)
China (17); Italy (16); Estonia (11); Turkey (9); Poland (7)
2680.8 China (26); Italy (13); Turkey (11); Hong Kong (4); Greece (4);
India (3); Poland (3); Romania (3); Bangladesh (2)
Imports of knitwear (mainly jerseys etc. and T-shirts) accounted for 48 percent of total Polish
imports, while in Hungary, Slovakia and Lithuania the majority of imports concerned knitted
outerwear. Imports by all new member states increased, of which Hungary, Slovakia and
Cyprus showed the biggest growth.
Imports of leather garments by the new EU member states amounted to almost € 50 million in
2003, of which 76 percent was imported by 4 countries: Czech Republic (30%), Poland (16%),
Slovakia (15%) and Hungary (15%). Leading supplier of the ten new members remained China,
39% of total imports came from this country. Other suppliers were Pakistan (14%), Italy (10%),
Turkey (10%) and India (9%).
5.1.2 Germany
Germany is the largest EU importer of outerwear with a value of € 16.4 billion in 2003, of which 75
percent was sourced outside the EU. A growing share of total outerwear imports came from
developing countries: 46 percent in 2001 and 51 percent in 2003.
Turkey remained the leading exporter of outerwear to Germany in 2003, valued at 16 percent of
total German imports, followed by China and Italy. Imports from China grew 22 percent during
2001-2003 and accounted for more than 10 percent of the value of German imports. Imports from
Italy fell by 31 percent during this period to an import share of 7 percent and were passed by
China in 2002. Other main suppliers were Romania (6%), Bangladesh (5%), The Netherlands
(5%), Poland (4%), Hong Kong (3%) and the Czech Republic (3%).
Developments in German imports can be classified into:
Countries with strongly falling (between 10 and 30%) supplies like: Italy, Poland, The
Netherlands, Hong Kong, Tunisia, France, Indonesia, Greece, Portugal, Denmark, Ukraine,
Hungary and Vietnam.
Countries with strongly fallen (between 5 and 10%) supplies, like Romania and Belgium.
Strongly growing (between 5 and 10%) exports came from countries like Turkey, India and
Pakistan.
Very strongly growing (more than 10%) exports came from countries like China,
Bangladesh, Czech Republic, Bulgaria and Cambodia. Imports from China, Bangladesh and
Czehc Republic grew during the whole period under review, while imports from Romania,
Belgium, Bulgaria, Slovakia and Ukraine varied during the whole period under review but
resulted in higher values in 2002 than in 2000.
Other fast-growing suppliers (exports to Germany valued more than € 20 million and growth of
more than 10 percent) of outerwear during the period 2001-2003 were: Spain, Egypt and
Canada. New suppliers were among others: Western Samoa, Tokelau, Mozambique, Liberia, Sao
Tomé & Principe and Chad.
48
Table 5.4
Imports of outerwear (excluding leather garments) into Germany
by area of origin, 2001-2003 (in € million)
Total
of which from:
- Asian countries
- Mediterranean
- ACP countries
- CEECs
EU countries
Other countries
- CEECs
- Asian countries
- Other European countries
- American countries
2001
€ million
17,556
2002
€ million
16,844
2003
€ million
15,931
8,026
4,113
3,738
103
33
38
1
5,079
4,451
3,474
815
103
48
11
7,899
4,119
3,635
73
36
34
2
4,887
4,058
3,197
716
99
40
6
8,107
4,416
3,553
80
28
29
1
3,942
3,882
3,071
655
109
42
5
% change
2002-2003
- 5.4%
+ 2.6%
+ 7.2%
- 2.3%
+ 9.6%
- 22.1%
- 14.5%
- 9.5%
- 19.3%
- 4.3%
- 3.9%
- 8.5%
+ 10.0%
+ 5.1%
-12.6%
Total German imports of outerwear including leather garments decreased by 4.3 percent in terms
of value in 2002, followed by a decrease of 5.8 percent in 2003. A fall of 9.8 percent was registered
over the whole period 2001-2003, which is a far worse scenario than developments in total EU-15,
which registered a fall of 1.3 percent over the same period.
Average import prices fell in 2002 by 6.5 percent and even 13.2 percent in 2003, which was mainly
caused by the weak domestic consumer market and the intensive competition, both at trade level
and at suppliers’ level.
Imports of knitted outerwear showed a fall of 4 percent in the period 2001-2003, while imports of
woven outerwear fell considerably by 16 percent. The decrease in imports of leather garments was
even more (-27%) in the same period.
Table 5.5
Imports of outerwear into Germany in volume and value, 2001-2003
2001
‘000
€
tons
million
2002
‘000
€
tons
million
2003
‘000
€
tons
million
Knitted outerwear:
Trousers, shorts etc.
Blouses, shirts
T-shirts
Jerseys, pullovers etc.
Sportswear
Other knitted outerwear
Total knitted outerwear
26.4
20.5
111.0
132.7
8.5
9.8
28.0
336.9
427.2
455.3
1,977.9
3,094.5
184.2
139.2
682.2
6,960.5
25.6
21.0
111.2
135.1
7.8
11.6
29.3
341.6
400.7
480.6
1,960.8
2,933.5
165.6
149.4
665.4
6,756.0
31.3
21.1
128.5
148.4
9.6
14.2
33.6
386.7
414.4
432.7
2,046.0
2,784.7
166.3
369.7
442.4
6,656.2
Woven outerwear:
Blouses and shirts
Sportswear
Other woven outerwear
Total woven outerwear
179.7
70.1
12.6
9.5
142.2
414.1
3,994.0
1,813.0
314.9
262.5
4,211.2
10,595.6
176.3
65.8
13.3
8.9
149.2
413.5
3,860.0
1,691.1
306.8
222.4
4,007.4
10,087.7
184.2
67.7
14.7
10.0
156.7
433.3
3,662.9
1,538.2
283.7
207.2
3,583.0
9,275.0
12.6
593.2
12.5
520.3
13.3
433.6
763.6
18,149.3
767.6
17,364.0
833.3
16,364.8
Leather garments
Total German imports
49
Analysis of import figures indicated an increasing demand for cotton products to the detriment of
products made of man-made fibres. An important exception was formed by imports of outerwear
jackets (anoraks etc.) for women. German imports of knitted, and particularly of woven, jackets
for women increased, cotton as well as man-made.
During the period 2002-3003, the volume of imports of the following products changed
significantly more than average:
Products with growing imports
(total imports in million units)
Products with falling imports
2002
2003
2002
2003
1.4
0.5
1.2
0.3
3.5
2.9
13.0
5.4
5.3
14.4
61.3
24.7
2.2
1.9
10.9
4.7
4.7
12.1
57.6
19.1
KNITTED
KNITTED
Man-made coats for men
Man-made coats for women
Cotton anoraks for women
Man-made anoraks for women
Synthetic ensembles for men
Cotton trousers for men
Cotton trousers for women
Cotton jerseys etc. for women
Synthetic gloves
0.1
1.3
1.7
3.2
0.1
3.0
44.0
114.2
31.5
0.3
1.8
3.3
6.1
0.7
4.4
53.5
132.4
43.0
WOVEN
Cotton ensembles for men
Cotton skirts
Cotton trousers for women *)
Cotton shirts for men
28.9
0.9
20.6
75.0
93.1
37.9
1.2
24.4
88.6
102.6
Man-made anoraks for men
WOVEN
Woollen coats for women
Synth. indoor jackets for women
Synthetic dresses
Artificial dresses
Artificial trousers for women
Man-made blouses for women
Synthetic scarves
*) cotton trousers concerned trousers other than denim or corduroy
Source: Derived from Eurostat 2004
The UK is the second largest EU importer in terms of value and accounted for 18 percent of the EU
total imports of outerwear in 2002. British importers sourced around 74 percent of outerwear in
non-EU countries in 2002, while this percentage was 75 in 2000. 56 percent of the total imports
came from developing countries, which was only 1.5 percent more than in 2000.
The UK was, behind The Netherlands and Germany, the third of the EU countries with the fastest
decreasing imports of outerwear in the period 2002-2003, in terms of value (- 5.2%).
Some developments in area of origin for UK imports were:
Imports from Mediterranean countries decreased less than the average fall, mainly caused
by increased imports from Turkey;
Imports from other EU-15 countries decreased also less than the average fall, mainly
caused by increased imports from France, Spain and Denmark.
China (13% of total UK imports) and Turkey (12%) remained the main suppliers of outerwear to
the UK. Other suppliers include Hong Kong (6%), Bangladesh (6%), Italy (6%), Romania (5%),
France (4%), Germany, India, Morocco, Portugal and Belgium (each country between 3 and 4%).
Other countries generating exports to the UK with a value of more than € 150 million were
Belgium, Sri Lanka, Indonesia, The Netherlands, Pakistan and Mauritius.
Fast-growing suppliers (exports valued more than € 20 million and growth of more than 10
percent) of outerwear during the period 2001-2003 were: China, Turkey, Bangladesh, Italy,
Romania, France, Portugal, Pakistan, Greece, Spain, Lithuania, Tunisia, Bulgaria, the Czech
Republic and Denmark.
Very fast-growing other suppliers were (among others): New Zealand, Honduras and Sierra Leone.
West Samoa was a new UK supplier.
50
Table 5.6 Imports of outerwear (excluding leather garments) into United Kingdom
Total
of which from:
- Asian countries
- Mediterranean
- ACP countries
EU countries
Other countries
- CEECs
- Asian countries
- Mediterranean countries
2001
2002
2003
11,457
12,535
11,873
% change
2002-2003
- 5.3%
6,488
4,492
1,650
299
40
7
2,774
2,195
844
1,060
153
55
76
7
6,972
4,589
2,059
265
54
5
3,336
2,227
1,020
981
116
55
48
7
6,626
4,317
2,029
236
39
5
3,215
2,032
958
872
105
51
35
11
- 5.0%
- 5.9%
- 1.5%
- 10.9%
- 27.0%
- 3.5%
- 3.6%
- 8.8%
- 6.1%
- 11.1%
- 9.4%
- 7.2%
- 27.2%
+ 55.1%
Total UK imports of outerwear including leather garments increased by 9.2 percent in terms of
value in 2002, followed by a decrease of 5.9 percent in 2003. An increase of 2.8 percent was
registered over the whole period 2001-2003, which formed a sharp contrast to the EU fall of 1.3
percent over the same period.
Average import prices rose in 2002 by 11.3 percent and fell 7.0 percent in 2003.
Imports of knitted outerwear showed a growth of 6 percent in the period 2001-2003, while imports
of woven outerwear grew by a limited 2 percent. Imports of leather garments decreased
considerably (- 31%) in the same period.
Table 5.7
Imports of outerwear into the UK in volume and value, 2001-2003
2001
‘000
€
tons
million
2002
‘000
€
tons
million
2003
‘000
€
tons
million
Knitted outerwear:
Blouses, shirts
T-shirts
Sportswear
24.5
43.3
110.2
103.1
4.6
10.4
35.9
332.0
368.4
504.0
1,178.4
1,908.3
92.3
119.8
717.7
4,888.9
28.7
32.7
98.5
99.9
5.6
11.4
40.4
317.2
427.4
577.8
1,527.2
1,935.3
101.4
128.4
831.8
5,529.3
29.4
33.2
101.2
106.7
8.0
11.9
44.3
334.7
409.1
500.6
1,587.8
1,695.0
115.6
128.7
741.3
5,178.1
Woven outerwear:
Blouses and shirts
Sportswear
119.4
68.9
14.5
10.3
142.8
355.9
2,306.6
1,223.5
153.0
198.4
2,686.9
6,568.4
125.5
68.4
7.1
13.6
143.4
358.0
2,456.0
1,403.3
201.5
214.5
2,731.3
7,006.6
124.0
70.0
8.2
13.3
134.9
350.4
2,442.7
1,262.2
166.1
190.9
2,633.2
6,695.1
7.3
278.0
7.1
285.4
5.6
191.4
695.2
11,737.3
682.3
12,821.3
690.7
12,064.6
Leather garments
Total UK imports
products made of man-made fibres. An exception was formed by imports of cotton dresses. UK
51
imports of knitted cotton trousers for women, woven trousers for women as well as for men, Tshirts and jerseys for women showed the biggest increase.
During the period 2002-3003, the volume of UK imports of the following outerwear products
changed significantly more than the average growth:
2002
KNITTED
Cotton indoor jackets for men
0.9
Cotton shorts for men
11.5
Cotton suits for women
0.9
Synthetic dresses
3.1
Cotton skirts
2.3
23.2
Cotton T-shirts
326.4
55.6
WOVEN
Anoraks for men *)
13.0
Cotton coats for women
2.5
Anoraks for women *)
15.9
Cotton trousers for men **)
32.6
Cotton suits/ensembles for women
11.1
Cotton skirts
21.9
Synthetic skirts
23.9
Cotton trousers for women **)
39.0
Cotton shorts for women
10.3
*) all materials, especially man-made fibres
2003
2002
2003
2.3
3.9
2.1
1.7
2.9
1.9
1.3
2.3
0.9
1.7
KNITTED
1.3
12.7
1.2
4.0
3.2
41.9
385.3
67.8
Synth. indoor jackets for men
Cotton dresses
Synthetic skirts
Woollen jerseys etc. for women
WOVEN
15.6 Man-made lined track suits tops
4.3 Man-made track suits bottoms
21.4 Cotton scarves
39.9
14.0
26.9
31.1
49.9
13.7
4.2
4.1
10.8
3.3
3.3
8.8
1.0
0.8
4.3
0.8
0.6
3.1
**) other than denim and corduroy trousers
5.1.4 France
France accounted for 15 percent of EU imports of outerwear in 2003. Around 63 percent of
French imports was sourced outside the EU. 46% of total French imports or 73 percent of
imports from outside the EU came from developing countries. These figures increased and were
higher than in 2001, respectively 44 and 71 percent.
Developments in area of origin for French imports of outerwear:
Imports from developing countries (in absolute terms) decreased to the favour of EU-15
countries, like Italy, Germany and Spain and non-EU country Switzerland;
Negative developments were valid for imports from the USA, ACP countries (mainly
Madagascar and to a lesser degree Jamaica and Mauritius) and Mediterranean countries
(mainly Morocco and Tunisia).
In 2003, most French imports of outerwear came from the other EU members: Belgium (14%),
Italy (10%) and Germany (8%), followed by the leading non-EU supplier Morocco (8%). Other
suppliers to France were China (7%), Tunisia (7%), The Netherlands (5%), Turkey (4%), Spain
(4%), India (3%), Portugal (3%) and Bangladesh (3%). Other countries with imports valued
more than € 200,000 were Romania, United Kingdom and Mauritius.
Fast-growing suppliers (exports valued more than € 20 million and a growth of more than 10
percent) of outerwear during the period 2001-2003 were: Turkey, Spain, Romania, Switzerland,
Greece, UA Emirates, the Philippines and Taiwan.
Very fast-growing other suppliers were (among others): Latvia, Brazil, Russia, Mexico and
Zimbabwe. Some of the few new suppliers were: Guam and Bahamas.
52
Table 5.8
Imports of outerwear (excluding leather garments) into France
by area of origin, 2001-2003
Total
of which from:
- Asian countries
- Mediterranean
- ACP countries
EU countries
Other countries
- CEECs
- Asian countries
2001
€ million
10,318
2002
€ million
10,263
4,696
2,120
2,184
379
13
4,672
950
650
215
48
29
8
4,583
2,104
2,141
322
16
4,710
970
665
187
79
30
9
2003 % change
€ million 2002-2003
10,216
- 0.5%
4,348
2,057
1,989
285
17
4,882
986
656
174
126
23
7
- 5.1%
- 2.2%
- 7.1%
- 11.5%
+ 4.1%
+ 3.7%
+ 1.6%
- 1.4%
- 3.7%
+ 59.5%
- 23.3%
- 20.1%
French imports of outerwear including leather garments fell 0.9 percent in value terms in 2002
and fell by 0.8 percent in 2003. A fall of 1.7 percent was registered over the whole period 20012003, which was almost equal to the average EU fall of 1.3 percent over the same period.
Average import prices fell in 2002 by 6.4 percent and 2.4 percent in 2003, which was mainly
caused by the intensive competition at the domestic retail level and at global suppliers level.
Imports of knitted outerwear showed a very limited fall of 0.4 percent in the period 2001-2003,
while imports of woven outerwear fell by 1.4 percent. Just like in other major EU countries, imports
of leather garments decreased considerably (- 27%) in the same period.
Table 5.9
Imports of outerwear into France in volume and value, 2001-2003
2001
‘000
€
tons
millions
2002
‘000
€
tons
millions
2003
‘000
€
tons
millions
Knitted outerwear:
Blouses, shirts
T-shirts
Sportswear
15.5
13.1
61.8
80.1
7.5
6.9
27.1
212.0
271.5
291.5
1,053.2
1,818.8
164.6
112.7
625.0
4,337.3
14.9
11.8
64.3
84.4
6.2
10.7
28.3
220.6
252.1
269.4
1,129.1
1,769.9
134.5
132.4
587.6
4,275.0
16.1
11.0
66.1
87.5
8.1
10.0
29.2
228.0
279.3
254.6
1,178.1
1,774.8
154.0
135.5
542.3
4,318.6
Woven outerwear:
Blouses and shirts
Sportswear
103.7
33.1
9.3
6.6
88.5
241.2
2,146.5
859.0
249.5
237.0
2,488.8
5,980.8
105.5
32.8
10.0
7.7
104.1
260.1
2,165.4
866.3
254.9
224.1
2,476.9
5,987.6
104.6
31.2
9.6
8.3
108.0
261.7
2,161.0
858.1
233.9
224.5
2,420.1
5,897.6
6.6
288.3
6.1
248.9
5.2
209.1
459.8
10,606.4
486.8
10,511.5
494.9
10,425.3
Leather garments
Total French imports
products made of man-made fibres. An important exception was formed by imports of outerwear
53
jackets (anoraks etc.) for men and women. French imports of knitted jerseys for women, cotton
blouses for women, woven as well as knitted increased considerably.
During the period 2002-3003, the volume of French imports of the following outerwear products
changed significantly more than on average:
2002
KNITTED
0.6
0.3
1.2
0.4
1.6
Synthetic trousers for men
1.6
Synth. ensembles for women
1.6
17.2
Cotton blouses for women
11.2
50.8
WOVEN
Denim trousers for women
9.8
3.6
10.3
0.6
0.9
16.7
46.9
22.9
2003
KNITTED
Cotton dresses
Synthetic dresses
Synthetic skirts
0.9
1.2
1.9
0.8
2.5
2.1
3.6
20.3
14.7
62.3 WOVEN
Cotton dresses
Artificial dresses
12.7 Cotton trousers for men *)
4.4 Artificial trousers for women
14.2 Man-made shirts for men
0.9 Man-made blouses for women
1.2 Cotton lined track suits bottoms
18.5 Silken scarves
49.2 Synthetic scarves
26.8 Artificial scarves
2002
2003
1.7
6.6
2.8
2.1
10.0
22.3
10.7
1.4
5.9
2.3
1.6
8.7
20.1
8.0
12.1
4.1
43.0
7.4
18.0
21.6
0.2
4.2
16.3
8.0
10.8
3.0
40.7
5.6
15.3
19.9
0.1
3.1
15.2
6.2
*) cotton trousers concerned other trousers than denim or corduroy
5.1.5 Italy
In 2003, Italy imported outerwear for € 6.6 billion of which 79 percent was sourced outside the EU
and 48 percent came from developing countries. These percentages were respectively 75 and 46 in
2001. Italy was the second fastest growing importer of outerwear of the EU countries, after Spain.
Imports rose in terms of value by 10 percent during the period 2001-2003.
Developments in Italian imports of outerwear by area of origin were:
Imports from developing countries grew very strongly mainly to the detriment of imports
from other EU countries and (non-developing) CEECs;
Outerwear exports by Asian developing countries into Italy grew strongly (especially from
China, India, Pakistan and Thailand) and despite decreasing exports from Bangladesh and
Vietnam;
The small growth in imports from Mediterranean countries is the result of very slightly
growing or stabilising imports from Tunisia and Croatia besides strongly growing imports
from Albania and Turkey and falling imports from Morocco;
The same situation is valid for imports from (non-developing) CEECs: slowly growing
imports from the leading supplier Romania, besides strongly growing imports from Bulgaria
and falling imports from Hungary and Slovakia.
In 2001, Romania became the leading supplier of outerwear to Italy and passed China, but in
2003 the gap between these countries became much smaller than in the previous years. The
import share of Romania amounted to 19 and of China to 18 percent. Other suppliers to Italy
included Tunisia (9%), France (5%), Belgium (4%), Turkey (4%), Bangladesh, Germany,
Croatia and Bulgaria (each country 3%). Other countries with exports to Italy, valued more
than € 100 million, were: India, Hungary, The Netherlands, Spain, and Portugal.
percent) of outerwear during the period 2001-2003 were: Romania, China, Turkey, Bulgaria,
India, The Netherlands, Slovakia, Hong Kong, Albania, Pakistan, Thailand and Ukraine.
54
Very fast-growing other suppliers were (among others): Sri Lanka, the Philippines, Macedonia,
UA Emirates, Latvia, Nepal, Estonia and Argentina. Some new suppliers were: Uganda and
Tokelau.
Table 5.10
Imports of outerwear (excluding leather garments) into Italy
Total
of which from:
- Asian countries
- Mediterranean
- ACP countries
- CEECs
EU countries
Other countries
- CEECs
- Asian countries
2001
€ million
6,010
2002
€ million
6,387
2003
€ million
6,619
% change
2002-2003
+ 3.6
2,757
1,452
1,154
91
46
14
1,474
1,779
1,585
80
78
30
6
2,927
1,547
1,238
81
47
14
1,473
1,987
1,793
78
73
38
5
3,199
1,819
1,251
69
43
17
1,416
2,004
1,801
93
74
33
4
+ 9.3
+ 17.5
+ 1.1
- 14.8
- 8.5
+ 20.6
- 3.9
+ 0.9
+ 0.4
+ 19.0
+ 1.3
+ 13.4
- 18.3
Total Italian imports of outerwear including leather garments increased by 6.4 percent in terms of
value in 2002, followed by another increase of 3.1 percent in 2003. A growth of 9.7 percent was
registered over the whole period 2001-2003, which formed a sharp contrast to the fall of 1.3
percent in the EU-15 over the same period. Average import prices fell by 3.1 percent in the
period under review.
Imports of knitted outerwear showed a growth of almost 10 percent in the period 2001-2003, the
same growth as imports of woven outerwear. Imports of leather garments decreased to a much
lesser degree than in other major EU countries (- 3%) in the same period.
Table 5.11
Imports of outerwear into Italy in volume and value, 2001-2003
2001
‘000
€
tons
million
2002
‘000
€
tons
million
2003
‘000
€
tons
million
Knitted outerwear:
Blouses, shirts
T-shirts
Sportswear
5.3
9.0
29.2
45.1
7.6
3.3
57.8
157.3
101.5
188.7
505.3
1,060.9
136.8
48.1
354.2
2,395.5
5.7
8.8
31.6
48.3
10.9
4.3
40.0
149.6
98.4
190.4
567.1
1,103.4
137.5
59.7
311.3
2,467.8
6.7
9.3
37.7
51.4
16.6
5.7
43.3
170.7
114.0
183.5
646.2
1,138.1
168.8
69.6
314.8
2,635.0
Woven outerwear:
Blouses and shirts
Sportswear
77.2
35.9
12.0
4.8
77.6
207.5
1,272.0
520.8
148.3
131.6
1,540.8
3,613.5
84.4
40.7
15.9
6.2
83.1
230.3
1,309.0
619.9
173.3
151.3
1,665.5
3,919.0
85.4
45.4
19.0
7.9
84.2
241.9
1,330.3
620.6
207.0
155.6
1,670.1
3,983.6
3.6
211.5
4.3
230.3
4.2
204.5
368.4
6,220.5
384.2
6,617.1
416.8
6,823.1
Leather garments
Total Italian imports
55
Analysis of import figures indicated an increasing demand for knitted cotton products (especially
T-shirts), woven outerwear jackets for men and women and woven cotton trousers for women.
During the period 2002-3003, the volume of Italian imports of the following outerwear products
changed significantly more than average:
2002
KNITTED
Cotton indoor jackets for men
Cotton indoor jackets for women
Cotton dresses
Cotton skirts
Cotton T-shirts
Synthetic track suits
WOVEN
Other coats for women **)
Other anoraks for women **)
Synthetic shorts for men
Other trousers etc. for women *)
2003
2002
2003
3.1
1.7
2.4
0.7
KNITTED
6.4
0.5
3.8
0.4
1.8
0.8
4.8
2.4
6.7
145.9
32.6
7.4
9.6
1.3
5.1
0.8
2.3
1.7
6.3
3.1
7.8
170.9
38.7
9.1
15.5
2.5
13.6
1.1
3.0
43.1
22.3
5.4
34.7
2.1
3.8
75.5
Woollen ensembles for women
Cotton ensembles for women
Other indoor jackets for women
10.9
0.4
23.2
5.3
0.2
21.0
6.2
3.0
19.7
48.9
2.6
2.3
16.5
39.1
WOVEN
Denim trousers for men
Other cotton trousers for men *)
*) Other cotton trousers for women means trousers other than denim or corduroy.
**) ‘Other’ means materials other than wool, cotton and man-made
The Netherlands ranked seventh as EU importer of outerwear with an import value of € 4.2
billion in 2003, of which 68 percent came from non-EU sources and 52 percent from developing
countries. In 2001, 50 percent of the Netherlands imports came from developing countries.
Main developments in area of origin of outerwear imports by The Netherlands were:
Fall in imports from developing countries was less than imports from other countries;
Imports from Mediterranean countries increased while imports from Asia and Central and
South America fell.
Germany (16%), China (14%) and Turkey (12%) were the leading suppliers of outerwear to
The Netherlands, while other suppliers included Bangladesh (6%), Hong Kong (4%) and
Belgium (4%).
Other countries with exports to The Netherlands, valued at more than € 50 million, were: India,
Italy, Poland, Indonesia, Denmark, Portugal, Tunisia and Romania.
percent) of outerwear during the period 2001-2003 were: China, Turkey, Denmark, Romania and
Lithuania.
Very fast-growing other suppliers were (among others): Ukraine, Switzerland, Slovenia,
Canada, Austria, Dominican Rep. and Jordan. There were no significant new suppliers to The
Netherlands.
56
Table 5.12
Imports of outerwear (excluding leather garments) into The Netherlands
Total
of which from:
- Asian countries
- Mediterranean
- ACP countries
EU countries
Other countries
- CEECs
- Asian countries
2001
€ million
4,714
2002
€ million
4,497
2,380
1,640
649
66
20
5
1,486
848
411
384
40
13
2,248
1,524
671
33
17
3
1,475
774
436
299
26
12
2003 % change
€ million 2002-2003
4,177
- 7.1%
2,162
1,420
696
31
12
3
1,329
686
413
231
18
24
- 3.8%
- 6.8%
+ 3.7%
- 6.1%
- 24.3%
- 1.8%
- 9.9%
- 11.4%
- 5.3%
- 22.6%
- 30.1%
+ 92.6%
Between 2001 and 2003, Netherlands imports of outerwear including leather garments
decreased by 11.4 percent in terms of value. During this period, imports in terms of volume
decreased by 0.4 percent, which indicates that import prices were under pressure and
decreased by 11 percent.
Imports of knitted outerwear showed a fall of almost 14 percent in the period 2001-2003, while
imports of woven outerwear fell by almost 10 percent. Imports of leather garments decreased
considerably (- 26%) in the same period.
Table 5.14
Imports of outerwear into The Netherlands in volume and value, 2001-2003
2001
‘000
€
tons million
2002
‘000
€
tons million
2003
‘000
€
tons million
Knitted outerwear:
Blouses, shirts
T-shirts
Sportswear
4.4
6.7
42.9
45.4
3.2
9.8
8.2
120.6
91.9
159.9
556.6
820.1
68.6
37.3
189.6
1924.0
7.8
7.3
46.1
40.7
3.5
12.8
17.2
135.4
83.3
158.5
521.7
775.2
56.2
41.5
182.4
1818.8
9.9
10.1
50.3
35.7
8.8
8.5
36.6
159.9
81.5
140.2
520.7
630.1
66.4
41.1
177.0
1657.0
Woven outerwear:
Blouses and shirts
Sportswear
120.7
43.0
5.1
3.5
98.9
271.2
1105.7
456.5
104.2
62.8
1060.4
2789.6
109.5
45.6
4.0
4.4
95.9
259.4
1047.0
466.7
89.3
60.4
1014.5
2677.9
93.9
39.3
5.1
4.6
86.9
229.8
995.6
432.8
74.5
55.2
961.7
2519.8
3.3
129.2
3.8
107.1
3.8
95.6
395.1
4842.8
398.7
4603.8
393.5
4272.4
Leather garments
Total Netherlands imports
During the period 2002-3003, the volume of Netherlands imports of the following outerwear
products changed significantly more than average, of which the growth in imports of cotton Tshirts and the fall in imports of jerseys were the most outstanding:
57
2002
KNITTED
Synthetic ensembles for women
Cotton T-shirts
Cotton gloves
WOVEN
Cotton anoraks for men
Cotton ensembles for women
Cotton skirts
2003
0.6
0.6
0.8
1.7
0.9
5.6
10.5
139.2
20.7
1.1
0.8
1.6
2.9
1.6
7.3
11.9
154.0
26.8
2.4
3.7
7.5
1.1
1.9
6.0
3.5
5.0
10.1
2.2
2.2
7.6
KNITTED
Synthetic dresses
Synthetic skirts
Man-made blouses for women
Woollen jerseys etc. for men
Cotton jerseys etc. for men
Man-made jerseys etc. for women
WOVEN
Synth. indoor jackets for men
Denim trousers for men
Cotton dresses
Synthetic trousers for women
2002
2003
1.0
1.0
1.3
3.9
6.4
2.5
2.7
18.3
28.1
32.6
0.8
0.7
1.0
2.8
4.9
1.7
2.1
15.1
24.3
27.9
1.8
0.8
13.7
1.0
2.6
14.4
4.4
1.4
0.6
11.9
0.7
1.8
13.1
3.6
5.1.7 Spain
Spain became the fifth EU importer of outerwear in 2003 and passed The Netherlands and Belgium
with an import value of € 4.6 billion in 2003, of which 53 percent came from non-EU sources and
46 percent from developing countries. In 2001, almost 39 percent of Spanish imports came from
developing countries.
Main developments in area of origin of Spanish outerwear imports were:
Strongly increased imports from developing countries in Asia (China, Bangladesh, India),
the Mediterranean Rim (Morocco, Turkey, Tunisia) and Central and South America (Brazil),
while imports from ACP countries (Mauritius and Madagascar) decreased considerably;
A diminishing import share for other EU-15 countries: 55 percent in 2001 and 47 percent in
2003, particularly imports from Italy and the UK decreased;
Growing imports from non-developing CEECs (Bulgaria, Romania) and lower imports from
non-developing Asian countries (Hong Kong, UA Emirates).
In 2003, most Spanish imports of outerwear came from China (13%), Italy (12%), Morocco (12%)
and Portugal (11%). Other suppliers to Spain were: France (8%), Belgium (5%), Turkey (5%),
Germany (5%) and Bangladesh (4%). Other countries with exports to Spain, valued more than €
100 million, were: The Netherlands, India and United Kingdom.
percent) of outerwear during the period 2001-2003 were: China, Morocco, Portugal, Belgium,
Turkey, Bangladesh, India, Thailand, Vietnam, Switzerland, South Korea, Bulgaria, Pakistan and
Tunisia.
Very fast-growing other suppliers were (among others): Romania, Cambodia, Taiwan, the
Philippines, Brazil, Argentina, Hungary, Slovakia, Macedonia and Czech Republic.
New suppliers were (among others): Venezuela, Botswana, Turkmenistan, and
Bosnia/Herzegovina.
58
Table 5.15
Imports of outerwear (excluding leather garments) into Spain
Total
of which from:
- Asian countries
- Mediterranean
- ACP countries
EU countries
Other countries
- CEECs
- Asian countries
2001
€ million
3,788
2002
€ million
4,185
1,468
925
457
53
33
0
2,068
252
64
142
37
9
1,733
1,086
571
43
33
0
2,171
281
77
148
40
16
2003 % change
€ million 2002-2003
4,499
+ 7.5%
2,067
1,227
764
33
42
1
2,134
298
98
133
51
16
+ 19.3%
+ 12.9%
+ 33.6%
- 23.1%
+ 27.0%
~
- 1.7%
+ 6.0%
+ 26.8%
- 10.2%
+ 27.0%
+ 2.1%
Spanish imports of total outerwear including leather garments grew 9 percent in value terms in
2002 and by 7 percent in 2003; in volume terms imports increased by 35 percent during the
review period, which indicates 16 percent lower import prices in 2003 than in 2001. Imports of
knitted outerwear showed a growth of 15 percent in the period 2001-2003, while imports of woven
outerwear grew by 22 percent. Imports of leather garments decreased considerably (- 19%) in the
same period.
Table 5.16
Imports of outerwear into Spain in volume and value, 2001-2003
Knitted outerwear:
Blouses, shirts
T-shirts
Sportswear
Woven outerwear:
Blouses and shirts
Sportswear
Leather garments
Total Spanish imports
2001
‘000
€
tons
million
2002
‘000
€
tons
million
2003
‘000
€
tons
million
3.5
4.3
15.0
14.9
5.0
3.3
10.2
56.2
108.1
141.0
458.6
604.9
140.6
35.1
206.4
1,694.7
4.3
4.7
21.7
21.7
5.3
4.3
15.3
77.3
112.2
149.6
543.6
637.5
131.4
41.2
206.6
1,822.1
6.0
5.4
24.5
24.8
8.5
6.7
19.5
95.4
132.3
148.9
592.8
648.2
147.4
46.1
236.5
1,952.2
34.2
16.8
3.4
7.0
39.0
100.4
661.0
360.7
80.9
129.5
861.0
2,093.1
35.7
17.3
3.7
7.5
39.9
104.1
763.5
445.2
106.7
127.9
919.8
2,363.1
41.5
18.2
4.2
7.4
46.8
118.1
850.7
452.4
105.6
120.9
1,016.9
2,546.5
4.1
205.1
4.1
164.3
3.9
166.5
160.7
3,992.9
185.5
4,349.5
217.4
4,665.2
Analysis of import figures indicated an increasing demand for knitted cotton shirts and blouses,
T-shirts, jerseys for women and woven cotton trousers for women.
During the period 2002-3003, the volume of Spanish imports of the following outerwear products
changed significantly:
59
2002
KNITTED
T-shirts
Man-made jerseys etc. for women
Cotton gloves
WOVEN
Cotton skirts
Denim trousers for women
Other cotton trousers for women*)
0.4
0.4
1.1
3.1
2.5
2.7
7.8
13.2
6.6
136.9
11.6
19.9
21.8
9.4
4.9
4.2
6.3
7.1
11.6
2003
KNITTED
0.8 Cotton. indoor jackets for men
0.9 Woollen jerseys etc. for men
1.9
4.0
4.2
4.1
10.5
16.2
9.3
173.3
15.1
23.1
30.1 WOVEN
12.2 Synthetic ensembles for men
Woollen indoor jackets for men
6.9 Synth. indoor jackets for men
7.0 Artificial skirts
10.3 Cotton shorts for women
9.7 Synthetic shorts for women
18.8 Synthetic scarves
2002
2003
0.9
4.0
0.2
3.6
1.6
0.4
0.6
2.2
2.3
3.6
18.7
0.5
0.2
0.4
1.6
1.6
3.1
16.2
*) Other cotton trousers for women concerned trousers other than denim or corduroy.
5.1.8 Belgium
Outerwear imports by Belgium amounted to € 4,605 million in 2003, of which less than 2 percent
included imports of leather garments. About 47 percent of Belgian imports was sourced in EU
countries and 44 percent in developing countries, these percentages did not change during 20012003.
The most noticeable development inside the area of origin during the period 2001-2003 was:
Imports from Asian developing countries increased (+10%), mainly caused by much higher
imports from China (+ 61%!) while imports from the Mediterranean decreased (-12%),
mainly caused by much lower imports from Tunisia (-24%).
In 2003, most imports of outerwear came from The Netherlands (13%), followed by China (12%).
The Netherlands remained the leading supplier for many years; however, the gap with China
became much smaller in recent years. Other important suppliers were the EU members: France
(11%) and Germany (9%) followed by the non-EU suppliers Tunisia (6%) and Turkey (6%). Other
suppliers to Belgium were Italy (5%), Bangladesh (5%), Romania (3%) and Spain (3%). Other
countries supplying an imported value of more than € 100,000 were Poland, Morocco and India.
percent) of outerwear during the period 2001-2003 were: China, Germany, Romania, Spain, Hong
Kong, Bulgaria, and Denmark.
Very fast-growing other suppliers were (among others): Switzerland, Mexico, Egypt, Sweden,
South Africa, Syria, Moldova, Albania, Serbia Montenegro, Slovenia and Belarus
The number of new suppliers was very limited, as was the imported value from these countries.
60
Table 5.17
Imports of outerwear (excluding leather garments) into Belgium
Total
of which from:
- Asian countries
- Mediterranean
- ACP countries
EU countries
Other countries
- CEECs
- Asian countries
2001
€ million
4,554
2002
€ million
4,541
2003
€ million
4,517
% change
2002-2003
- 0.5%
1,981
1,087
808
59
25
2
2,126
447
345
76
15
11
1,974
1,093
813
39
26
3
2,117
450
357
66
15
12
1,969
1,194
710
36
26
3
2,114
434
343
65
13
13
- 0.3%
+ 9.2%
- 12.6%
- 7.6%
- 0.7%
+ 1.3%
- 0.1%
- 3.6%
- 3.9%
- 1.5%
- 13.1%
+ 8.5%
Imports of total outerwear including leather garments fell 0.6 percent in value terms in 2002 and
by 0.7 percent in 2003; in volume terms, imports increased by 16 percent during the review
period, which indicates 15 percent lower import prices in 2003 than in 2001. Imports of knitted
outerwear showed a small growth in the period 2001-2003, while imports of woven outerwear, just
like imports of leather garments, decreased in the same period.
Table 5.18
Imports of outerwear into Belgium in volume and value, 2001-2003
Knitted outerwear:
Blouses, shirts
T-shirts
Sportswear
Woven outerwear:
Blouses and shirts
Sportswear
Leather garments
Total Belgian imports
2001
‘000
€
tons
million
2002
‘000
€
tons
million
2003
‘000
€
tons
million
4.2
4.0
26.6
16.0
4.2
3.5
8.6
67.1
123.0
112.7
522.5
670.2
89.2
47.8
217.0
1782.4
4.0
3.7
24.0
20.1
4.6
3.2
8.5
68.1
113.1
99.8
512.8
697.7
79.3
44.6
209.5
1756.8
5.3
3.7
28.2
23.9
5.1
4.4
11.0
81.6
116.2
95.9
533.4
696.7
78.2
64.5
213.2
1798.1
59.8
12.4
6.0
3.2
37.7
119.2
1209.7
351.2
122.2
65.6
1023.0
2771.7
58.2
11.9
5.3
4.2
47.1
126.7
1162.3
340.0
126.5
67.1
1088.3
2784.2
56.4
13.1
5.9
3.8
56.8
136.0
1067.6
363.8
123.1
65.1
1099.7
2719.3
2.8
110.9
2.7
97.6
2.5
87.9
189.1
4665.0
197.5
4638.6
220.1
4605.3
During the period 2002-3003, the volume of Belgian imports of the following outerwear products
changed significantly more than average, of which especially can be mentioned the growth in
imports of T-shirts, jerseys for men, woven trousers for women and shirts for men, all products
made of cotton; there was a fall in imports of denim trousers for women.
61
2002
KNITTED
Cotton T-shirts
Cotton track suits
Synthetic gloves
WOVEN
Cotton coats for men
Cotton skirts
Man-made track suits
1.0
2.3
1.1
1.6
5.5
152.7
11.7
1.0
7.7
1.0
6.6
7.4
0.5
7.6
15.8
16.7
1.0
2003
KNITTED
1.6 Cotton dresses
2.9 Synthetic dresses
1.9 Synthetic skirts
4.1
7.7
176.4
15.6
2.0
12.3
WOVEN
2.8 Synthetic trousers for women
9.6 Denim trousers for women
9.8 Synth. indoor jackets for women
1.1 Cotton dresses
8.6 Artificial skirts
18.4
21.0
2.6
2002
2003
1.4
1.1
1.0
1.1
0.7
0.7
4.7
30.7
2.3
3.3
1.4
4.1
27.8
1.9
2.9
1.0
*) cotton trousers for women concerned trousers other than denim or corduroy.
5.2
Imports by product groups
EU-15 imports of outerwear decreased by 1.3 percent in value terms in the period 2001-2003,
despite a slight growth in 2002. Imports from developing countries rose (3.1%) while intra-EU
trade fell (-2.8%)in the period 2001-2003.
The table in appendix 2.1 gives a detailed overview of EU imports of knitted and woven
outerwear. For more information about these figures, refer to the text below in this chapter.
5.2.1 Imports of knitted outerwear
EU-15 imports of knitted outerwear increased in volume (10.3%) in the period 2001-2003 and
stabilised in value, which indicated that average import prices of knitted outerwear fell by 10
percent. Imports of two product groups: jerseys, pullovers, polo shirts etc. and T-shirts formed
68% of total EU imports of knitted outerwear. 40 percent of EU imports came from other EU
countries. Developing countries accounted for 46 percent of total EU imports.
Jerseys, pullovers, sweaters, polo shirts etc. were imported for much lower prices in 2003
than in the previous years. Average import prices were € 8.37 in 2001, € 7.85 in 2002 and €
7.16 in 2003. Total imports of this product group rose as from 2001 in volume by 9 percent to
1,508 million units in 2003. Imports of jerseys etc. made of all materials increased except those
made of wool and hair.
Imports of lightweight articles like fine knit roll, polo or turtleneck jumpers and pullovers made
of cotton decreased 4.7 percent to 27.9 million and those made of man-made fibres decreased
25.9 percent to 12 million units.
Average import prices of woollen units were € 13.85 in 2002 and fell to € 13.40 in 2003.
Imports of cotton and man-made articles grew (in volume) by respectively 8.8 and 2.1 percent,
while prices of cotton products fell from € 7.57 in 2002 to € 6.96 in 2003 and jerseys etc. of
man-made fibres fell from € 6.73 to € 6.14 in the same years.
62
Table 5.19
Analysis of imported knitted jerseys, pullovers, sweaters etc.
by materials used, 2001-2003
Volume (million units)
2001
2002
2003
Total
of which in %
- wool and hair
- cotton
- man-made fibres
- flax
- other
Value (€ million)
2001
2002
2003
1,388
1,448
1,508
11,612
11,373
10,799
11.3
37.8
47.8
0.9
2.2
9.7
38.6
48.8
0.9
2.0
8.5
40.3
47.8
1.2
2.2
19.0
33.5
43.2
0.8
3.5
17.1
37.0
42.1
0.8
3.0
15.8
39.3
41.0
1.1
2.8
EU imports from outside the European Union accounted for 60 percent of total imports in 2003
(57% in 2000). Intra-EU imports came, besides from the leading supplier Italy (11% of total
value of EU imports), from Germany, The Netherlands, Belgium, France and Portugal. Imports
from the EU countries mentioned decreased strongly except imports from Germany (+7%). In
total, however, intra-EU trade decreased in favour of imports from developing countries, like
Bangladesh, Cambodia and India. Imports from Turkey, second EU supplier after Italy, slightly
decreased, just like imports from China, Indonesia, Thailand and Tunisia. Other countries, which
had increasing exports to the EU, were CEECs like Romania and the Czech Republic.
EU imports of knitted T-shirts rose 14.7 percent in volume and 13.5 percent in value in the
period 2001-2003. Average import prices during this period fluctuated from € 3.22 in 2001 to €
3.36 in 2002 and to € 3.18 in 2003.
The import share of T-shirts of man-made fibres increased from 14 percent in 2001 to 17
percent in 2002 to the detriment of cotton T-shirts. In 2003, however, cotton T-shirts became
more popular and accounted for 85 percent of total imports. Developments in imports of Tshirts are illustrated in the following table.
Table 5.20 Analysis of imported T-shirts by materials used, 2001-2003
2001
2002
2003
Total
of which in %
- cotton
- wool
- man-made fibres
- other
Value (€ million)
2001
2002
2003
2,280
2,343
2,615
7,329
7,867
8,319
85.2
0.2
13.5
1.1
81.3
0.2
17.4
1.1
84.9
0.2
13.9
1.0
74.9
0.5
22.6
2.0
73.6
0.5
24.1
1.8
76.5
0.5
21.4
1.6
76 percent of the 2.2 billion imported cotton T-shirts came from outside the European Union in
2003, of which two thirds came from developing countries.
Inside the EU, Portugal, Germany, Belgium, Greece, France, The Netherlands and Italy, were
the leading exporting countries of cotton T-shirts. Imports from all these countries, except
Belgium, increased during the period under review. Imports from developing countries (in
terms of value) like Turkey (with 17% of total imports and an average price of € 3.41), the
leading exporter to the EU. Bangladesh ranked 2nd (23% of total imports and an average price
of € 1.23). Other important suppliers were: India, Mauritius, Morocco, China, Tunisia, Pakistan,
Indonesia, Sri Lanka and Thailand.
Other major EU exporters of cotton T-shirts from outside the EU were Hong Kong, Romania,
Hungary, Poland and Bulgaria.
Imports of knitted shirts and blouses fell by 8.3 percent during 2001-2003 (in terms of
volume). Imports of knitted blouses and shirts for women decreased by 5.0 percent in the
period reviewed, while imports of men's shirts decreased by 11.9 percent.
63
Cotton remained the most popular fabric type for men’s shirts and for women’s shirts and
blouses. Cotton shirts had a stable share of 72 percent in total imports of men’s shirts, while
the import share of cotton blouses and shirts increased from 57 in 2002 to 66 percent in 2003
to the detriment of blouses of man-made fibres. Imports of women’s shirts and blouses of
materials other than cotton and man-made fibres increased, i.e. mainly shirts made of wool,
silk and flax.
Table 5.21 Analysis of imported knitted shirts and blouses by materials
used, 2001-2003
2001
2002
2003
Total
of which in %
- cotton
- man-made fibres
- other
Value (€ million)
2001
2002
2003
479.1
423.3
439.2
2,272
2,318
2,141
65.9
32.1
2.0
65.6
32.1
1.3
68.6
28.8
2.6
64.1
32.0
3.9
65.0
33.9
1.1
67.0
28.8
4.2
The leading supplier of knitted shirts and blouses to the EU remained Turkey; 12 percent of
total imported value came from this country. It was followed by developing countries like
Bangladesh (6%), China (5%), India (4%) and Mauritius (2%). A diminishing part came from
other EU-15 countries (42% in 2003), of which Germany, Greece, France and Italy, each
country had a share of 5 percent in EU imports.
EU imports of knitted trousers for men and women increased almost 26 percent in volume, as
can be derived from the table below, and increased 4.46 percent in value: a fall in import prices
of 17 percent in 2003.
Imports of men’s trousers, bib & brace overalls and shorts accounted (in volume) for 22 percent
and women’s for 78 percent in 2003, this ratio was 24/76 in previous years.
The role of cotton remained important, but the import shares of trousers classified by materials
used stabilised in 2003.
The five leading exporters to the EU were: Turkey (18%), China (16%), Belgium (6%),
Germany (4%) and Spain (3%). Imports from China, Turkey and Germany increased, just like
imports from India, Pakistan, Bangladesh and Romania.
Table 5.22 Analysis of EU imports of knitted trousers, shorts and bib & braces, 2001-2003
Trousers
Bib & braces and shorts
Total
Of which:
- wool
-cotton
-man-made
-other
Volume (in million units)
2001
2002
2003 of which for:
men women
234.9
232.6
288.4
55.3
233.1
139.5
132.5
171.5
47.1
124.4
374.4
365.1
459.9
102.4
357.5
3.3
225.5
126.9
18.7
3.5
228.1
117.1
16.4
4.5
287.0
149.9
18.5
2.2
61.0
34.0
13.2
2.3
226.0
115.9
5.3
Imports of babies’ knitted garments increased in value by 5.6 percent in 2001, followed by a
fall of 4.5 percent in 2002 and of 4.2 percent in 2003. Imports from China increased in volume
and in value and accounted for an import share of respectively 61 (!) and 35 percent in 2003.
Other EU suppliers (import shares between 4 and 6 percent) were Turkey, India, France,
Portugal, Belgium and The Netherlands.
Imports of babies’ cotton wear accounted for 83 percent of 2001 imports and 87 percent of
2003 imports; the import share of babies’ woollen wear and of synthetic materials decreased.
64
Imports of knitted ski- and tracksuits decreased in volume (-16.5%) and value (-11.4%) in
2002, while in 2003 imports in volume (13.3%) and in value (6.%) increased but against 4.5
percent lower prices than in the previous years. Imports (in volume) came for a fast increasing
share from China (29% in 2002 and 54% in 2003)), Turkey (6%), Belgium (5%), Germany,
The Netherlands (each country 3%), Pakistan and Indonesia. Imports from China, Turkey,
Pakistan and India showed a significant growth. Imports from Indonesia, Morocco, Belarus,
Bangladesh and Vietnam showed the biggest fall.
Import shares of materials used changed slightly. Imported track suits of man-made fibres
grew from 53 percent in 2002 to 55 percent in 2003, while suits made of cotton fell from 35 to
31 percent in 2003, in favour of those made of other materials.
Imports of all kinds of clothing accessories (gloves, ties, scarves etc.) increased in volume
and to a lesser degree in value in the period 2001-2003.
Except in the case of ties, the role of intra-EU trade became less important in favour of
developing countries. Leading suppliers of gloves were China (36%), Pakistan (27%), South
Korea (6%) and India (4%). Scarves etc. came mainly from China (66%), Italy (24%), The
Netherlands, Germany, Belgium and France, while ties came mainly from Italy (61%) at a
distance followed by France, Germany and The Netherlands.
5.2.2 Imports of woven outerwear
EU-15 imports of woven outerwear increased in volume (15.3%) and decreased in value (-2.1%)
during 2001-2003: a decrease of average import prices of 15 percent. Imports of two product
groups: "trousers, shorts etc." and "shirts and blouses" are the most important in the woven
sector, namely 53 percent of total imports of woven outerwear. Developing countries accounted for
46 percent of total EU imports of woven outerwear.
Imports of woven anoraks, ski jackets etc. increased from 300 million units in 2002 to 327
million in 2003. Average import prices fell from € 11.63 in 2002 to € 11.31 in 2003. Around 75
percent of imported woven anoraks was made of man-made fibres and 21 percent made of
cotton.
Imports from outside the EU grew considerably, mainly caused by increased imports from
China. Export volume in this product group by leading supplier China boomed (+97% to 204
million jackets), but against 25 percent lower prices. Intra-EU trade increased, while Vietnam,
Romania, Indonesia, Turkey and Bangladesh were confronted with lower exports to the EU-15.
Imports of woven suits for men increased from 26.3 million units in 2002 to 28.9 million in
2003, mainly caused by synthetic and cotton suits and despite slightly decreased imports of
woollen suits. Average import prices fell, after many years of growth, from € 47.26 in 2002 to €
40.82 in 2003, mainly caused by decreased import prices of cotton suits (-17%) and synthetic
suits (-16%). Imports of suits for women increased almost to the same degree: from 19.0
million in 2002 to 20.7 million in 2003. Imports of cotton suits increased at the cost of those
made of wool and synthetic.
Woven suits for both sexes came for 45 percent (in volume and value) from other EU countries.
Imports from leading supplier Italy amounted to € 195 million or 13 percent in 2003. Other
import shares were: Germany 12 percent, Romania 8 percent, China 7 percent and Turkey 5
percent. Imports from China and France increased, while imports from all other mentioned
countries decreased in terms of value.
Imports of woven dresses stabilised in volume in 2002, followed by a small growth of 2.8
percent in 2003 to 113 million units. Around 41 percent of the imported dresses was made of
man-made fibres (28% synthetics and 13% artificial fibres), while cotton dresses had a
decreasing import share of 36 percent in 2003. The most important development in materials
used was a strong fall in all kinds of materials, except linen (classified under other textile
materials), used in the period 2001-2003. The import share of silken dresses showed the biggest
fall, followed by artificial dresses. Average import prices decreased from € 11.28 in 2001 to €
9.99 in 2003.
65
Table 5.23 Analysis of imported woven dresses by materials used, 2001-2003
2001
2002
2003
Total
of which in %
- wool or hair
- cotton
- synthetic fibres
- artificial fibres
- silk
- other textiles
Average price in €
2001
2002
2003
110.5
110.4
113.5
11.28
11.20
9.99
0.8
38.1
34.7
25.2
2.7
9.0
0.5
42.8
32.6
20.0
2.2
12.3
0.5
40.4
31.3
15.7
4.9
20.7
33.90
8.09
12.71
9.97
31.52
15.06
35.35
8.19
13.30
11.00
38.35
10.49
31.26
7.58
11.70
10.94
19.38
8.67
China and India remained the leading EU suppliers of dresses, with respectively € 173 million or
15 percent of total EU imports and € 99 million or 9% percent in 2003. India was followed by the
EU countries Spain, Germany, Italy and France. Imports from EU countries decreased in value (6.4%) during 2002-2003. Other leading suppliers were Romania, Morocco and Turkey. The value
of exports by China and India decreased by respectively 8.3 and 6.2 percent. Suppliers with
decreasing exports to the EU were, besides most of the EU countries, Romania, Morocco, Turkey,
Hong Kong, Tunisia, and Sri Lanka.
Imports of woven skirts grew strongly in terms of volume (+ 16%) in 2002, followed by a
growth of 7 percent in 2003 to 252 million units. Average import prices decreased too: from €
8.62 in 2001 down to € 7.91 in 2003.
Skirts made of cotton accounted for 50 percent of total import volume in 2003, while the import
share for skirts of man-made fibres was 30 percent and for skirts made of artificial fibres 10
percent. Imports of skirts made of cotton increased, while imports of woollen skirts and skirts of
man-made fibres decreased.
Table 5.24 Analysis of imported woven skirts by materials used, 2001-2003
Total
of which in %
- wool or hair
- cotton
- synthetic fibres
- artificial fibres
- other textiles
2001
2002
2003
202.7
235.8
252.1
8.6
62.2
89.0
30.6
12.3
6.2
108.2
77.8
28.7
14.9
4.7
126.9
75.8
25.1
19.6
Average price in €
2001
2002
2003
8.62
8.39
7.91
18.52
7.98
7.87
7.28
13.66
18.22
8.10
7.90
6.92
11.73
18.65
7.28
7.42
7.10
18.65
Leading supplier China accounted for 23 percent in volume and 18 percent in value of total EU
imports in 2003. Other suppliers were Germany with € 162 million in 2003, Romania (€ 157
mln), Turkey (€ 153 mln) and Morocco (€ 139 mln). Imports from all these countries increased
in the period 2000-2002, except Turkey. Intra-EU trade decreased slightly (-3%) in 2003.
40 percent of EU imports of indoor jackets (blazers etc.) was made of synthetic fibres, while
cotton accounted for 33 percent in 2003. Total imports of indoor jackets decreased 2 percent to
128 million jackets in 2003. Imports of man-made fibre jackets for both sexes decreased in favour
of mainly cotton. Imports from other EU countries decreased 8 percent in 2003. Leading suppliers
were: Germany (11% of total value of imports), Romania (11%), China (6%), Italy (6%), Turkey
(6%) and Poland (5%). Imports from China stabilised in value, while imports from all other
countries mentioned decreased. Suppliers with strongly increasing exports to the EU were limited,
of which Bulgaria, Macedonia, Egypt and Moldova.
66
EU imports of woven trousers for men and women decreased in volume to 1,379 million units
in 2002 with an average import price of € 9.85. In 2003 the imported volume increased by 23
percent and decreased in value by 1 percent: the average import price decreased to € 9.04. The
important products within the product group woven trousers for both sexes are cotton trousers
other than denim, jeans and synthetic fibre trousers.
EU imports of cotton trousers (other than denim), including casual trousers like chinos, workers,
cargos etc. decreased considerably from 811 million units in 2001 to 649 million in 2002 but grew
to 719 million in 2003. Imports of jeans stabilised in 2003 at around 345 million units, of which 61
percent for men. Average import prices for men’s jeans amounted to € 10.82 in 2003 (€ 11.94 in
2002) and for women’s jeans € 9.89 (€ 10.64 in 2002)
Imports of the total product group (trousers, shorts, bib & braces) concerned 41 percent men’s
and 59 percent women’s in 2003; this relation was 48/52 in 2000.
The role of cotton trousers remained quite important: 61 percent of total imports was cotton made.
Table 5.25 Analysis of EU imports of woven trousers, shorts, bib & braces, 2001-2003
Volume (in million units)
2001
2002
2003
Trousers
Shorts
Bib & braces
Total
of which:
- wool
- cotton denim
- other cotton
- synthetics
- artificial
- other
1472.8
192.5
19.0
1684.3
1379.3
170.5
17.4
1567.2
1489.3
225.5
19.5
1734.3
36.3
316.5
810.5
419.1
62.5
39.4
31.9
345.4
649.1
398.4
49.9
92.5
28.4
344.8
718.8
453.9
43.6
144.8
of which for:
men
women
633.4
855.9
59.6
165.9
10.0
9.5
703.0
1031.3
16.9
211.7
331.1
109.4
8.1
25.8
11.5
133.1
387.7
344.5
35.5
119.0
The import share (in value) for jeans from other EU countries decreased slightly to 47 percent,
in favour of imports from developing countries. Almost all supplying countries, including the
leading suppliers in developing countries, gained from the renewed popularity of jeans. The
leading exporting countries in 2003 were: Italy (13% of total EU imports in value), Belgium
(13%), Turkey (11%), Tunisia (7%), Germany (6%), Bangladesh (5%), The Netherlands,
Morocco, and Pakistan (each 4%). Imports from the five leading suppliers decreased compared
with 2002. Fast-growing imports came from Bangladesh, Romania, Denmark, USA, Egypt and
Myanmar.
EU imports of cotton trousers (other than denim) boomed in 2001 and levelled off to 649
million in 2002. In 2003, imports grew again to 719 million units, of which a limited part came
from other EU countries, namely 21 percent in volume and 31 percent in value. Leading
suppliers were Turkey (63.2 million units at € 9.83) and Tunisia (41.4 million units at € 10.55),
followed by Romania, Germany, Italy, Bangladesh, Morocco and Hong Kong. Imports from the
countries mentioned increased, during the period 2002-2003, except Tunisia, Morocco and
Hong Kong.
EU imports of synthetic trousers came from Romania (13% of total imports, average price €
7.19) and Turkey (9% at € 9.83). Other EU countries supplied 21 percent in volume (mainly
Germany, Belgium and The Netherlands). Other EU suppliers were: Morocco, Tunisia and
Bangladesh.
Imports of woven shirts and blouses increased 33 percent in the period 2001-2003, of which 30
percent in 2002. The growth in 2000 was mainly caused by increased imports of shirts and blouses
made of cotton to the detriment of man-made fibres.
67
Table 5.26 Analysis of imported woven shirts and blouses by materials
used, 2001-2003
2001
2002
2003
Value (€ million)
2001
2002
2003
Men’s shirts
of which
- wool
- cotton
- man-made fibres
- flax or ramie
- other
487.3
635.4
649.0
3,495
3,463
3,386
1.1
337.9
136.3
6.5
5.5
1.0
460.7
133.8
33.6
6.3
1.7
485.6
127.0
15.5
19.2
12
2,726
640
59
58
12
2,715
597
70
69
16
2,705
503
82
80
Women’s blouses
of which
- silk
- wool
- cotton
- man-made fibres
- flax or ramie
- other
366.8
460.3
508.8
2,925
3,234
2,980
7.9
2.1
131.2
198.3
19.4
7.9
7.0
2.5
174.7
210.7
55.3
10.1
9.4
2.3
181.2
200.2
58.7
57.0
141
29
997
1,503
186
69
129
33
1,308
1,499
189
76
134
28
1,235
1,284
195
104
Almost 75 percent of men’s shirts imported in 2003 was made of cotton and 20 percent of manmade fibres, while in 2001 these percentages were respectively 69 and 28 percent
Imports of women's blouses were for 39 percent made of man-made fibres in 2003, 36 percent of
cotton and 12 percent of linen. Imports of cotton shirts increased to the detriment of blouses and
shirts of man-made fibres.
Developing countries played a more important role in imports of woven shirts for men than for
shirts and blouses for women: respectively 49 and 39 percent (in terms of value) came from
these countries into the EU in 2003.
Developments in imports of woven sportswear can be summarised as follows:
• Woven ski suits increased in volume and value in 2003 and rose above the level of 2001
after a fall in 2002;
• Woollen track suits decreased in 33 percent in volume and in value, to € 14.8 million in
2003;
• Cotton track suits increased 4 percent in volume but against 8 percent lower prices,
valued at 290 million in 2003;
• Track suits of man-made fibres decreased slightly (0.6 percent) against 8 percent lower
prices and valued at € 858 million in 2003.
• Leading supplier remained China (21%), followed by 5 EU countries (Belgium, The
Netherlands, Germany, Italy and France). Other suppliers from outside the EU were
Indonesia, Romania, Turkey, India and Morocco.
Track suits mentioned above also include separate tops and bottoms.
Imports of woven clothing accessories varied strongly per product item:
• 229 million woven scarves were imported in 2003 with an average price of € 2.32, of
which 66 million came from India (€ 1.82), 68 million from China (1.15) and 22 million
from Italy (€ 5.22).
• Woven ties decreased in terms of volume to 68 million in 2003 with an average import
prices € 3.90. Leading suppliers were China (32.6 million units at € 1.43) and Italy (12.6
million ties at € 7.71).
5.2.3 Imports of leather garments
Imported value of leather garments into the EU fell in 2002 (- 9.3%) as well as in 2003 (- 14.7%),
as described in chapter 5.1.1. Developing countries play a dominating role in EU imports of leather
garments. In terms of value, 51 percent of total imports came from Asian developing countries
68
(mainly China, India and Pakistan), 15 percent came from the Mediterranean (mainly Turkey), 26
percent came from other EU countries (mainly Germany and Italy) and more than half of the
remaining 8 percent came from CEECs (mainly Romania).
An analysis of imported leather garments, such as by actual types of product, materials used and
whether the garments are for men or women, is not possible, because only one statistical number
is available for leather garments.
5.3 The role of developing countries
As described above, growth in imports from developing countries can mainly be ascribed to
low-price suppliers from Asia and to a lesser degree from the Mediterranean Rim. Leading Asian
suppliers to the EU are (in sequence of import values): China, Bangladesh, India, Indonesia,
Pakistan, Thailand, Sri Lanka, Vietnam, Macao, Cambodia, Myanmar, the Philippines and
Malaysia. These countries operate mainly in price sensitive segments. China continued its sharp
rise in shipments to the EU, in products like woven outdoor jackets for both sexes, woven
sportswear, T-shirts, babies’ garments and leather garments.
Imports from the Mediterranean Basin came from countries like: Turkey, Morocco, Tunisia,
Croatia, Macedonia, Egypt, Slovenia, Albania, Syria, Serbia Montenegro and Bosnia &
Herzegovina.
Imports from ACP countries fell by 19 percent in 2002 and by 11 percent in 2003. Two thirds of
ACP exports came from leading country Mauritius, despite falling exports by this country to the
EU (–10% in 2003). France and the UK were the leading destinations. Madagascar ranked
second with 14 percent of ACP exports to the EU in 2003 (mainly to France and Germany),
followed by Jamaica (9%), of which Spain, Germany and The Netherlands were the most
important destinations. Other countries with (substantial) exports to the EU are Zimbabwe
(mainly to Germany), Botswana (mainly to United Kingdom), Dominican Republic (to The
Netherlands and Italy), Tanzania (to United Kingdom) and Cape Verde (to Portugal).
Table 5.27 EU-15 imports of outerwear from developing countries by area of origin in € million, 2001-2003
2001
Total
2002
30,066 30,667
Of which from:
Asia
17,508 17,749
Mediterranean Basin 11,191 11,735
ACP
1,090
888
CEECs
96
91
Central & Sth America
179
202
Other
2
2
Source: derived from Eurostat 2004 2002
2003 Leading suppliers in 2003:
(between brackets, share in total of their area of origin, in %)
30,956 China (25), Turkey (20), Bangladesh (10), Morocco (7), Tunisia (7),
India (6), Indonesia (4), Pakistan (2), Thailand (2)
18,202
11,688
791
84
189
2
China (42), Bangladesh (16), India (11), Indonesia (6), Pakistan (4)
Turkey (52), Morocco (18), Tunisia (18), Croatia (3), Egypt (2)
Mauritius (66), Madagascar (14), Jamaica (9), Zimbabwe (1)
Moldova (84), Tajikistan (8), Uzbekistan (3), Turkmenistan (1)
Peru (28), Brazil (19), Mexico (18), Honduras (10), Argentina (6)
Northern Marinas Islands (57), Tokelau (36)
The major (leading) role of China and Turkey in exports of outerwear to the selected EU
countries (except France) is illustrated in table 5.18. Morocco and Tunisia remained the leading
supplying countries for France, while the distance between Tunisia and China became smaller.
Import shares from China decreased in Italy and The Netherlands and increased in Germany;
imports shares from Turkey increased in Germany, United Kingdom, The Netherlands and
Spain; shares from Morocco decreased slightly in Spain and United Kingdom. Bangladesh
ranked third in four countries, while in two of these countries (Germany and United Kingdom)
its import share increased.
69
Table 5.28
Imports of outerwear from leading developing countries by major EU countries, 2003
(in % of value of total imports)
1
2
Germany
Turkey
(16%) China
UK
China
(13%) Turkey
France
Morocco
(8%) Tunisia
Italy
China
(18%) Tunisia
Netherlands China
(14%) Turkey
Spain
China
(13%) Morocco
Belgium
China
(12%) Tunisia
(10%)
(12%)
(7%)
(9%)
(13%)
(11%)
(6%)
3
Bangladesh
Bangladesh
China
Bangladesh
Bangladesh
Turkey
Turkey
(5%)
(6%)
(7%)
(3%)
(6%)
(5%)
(6%)
4
India
India
Turkey
Turkey
India
Bangladesh
Bangladesh
(3%)
(4%)
(4%)
(3%)
(4%)
(4%)
(5%)
5
Tunisia
Morocco
India
Croatia
Indonesia
India
Morocco
(2%)
(4%)
(3%)
(3%)
(2%)
(3%)
(3%)
70
6
EXPORTS
Before we take a look at the export figures for outerwear from the EU, it should be noted that all
data presented in this chapter are official trade figures provided by Eurostat. We therefore refer to
the remarks in chapter 2, explaining that official statistics are not always all-embracing and should
be interpreted with care.
6.1 EU-25 exports
The 25 EU member states exported outerwear including leather garments valued almost € 50.0
billion in 2003, of which 32 percent went to countries outside the European Union.
Official trade figures of Eurostat did not include figures of the 10 new EU countries from before
2003. For that reason EU exports of EU-15 and EU-10 are discussed separately below.
EU-15 exports
The EU member states exported € 42.6 billion in 2003, representing a decline in value of 3.9
percent in 2003 after a small growth of 1.3 percent in 2002. The leading EU exporter of
outerwear was Italy (27% of total EU exported value), followed by Germany (17%) and France
(11%).
As described in the previous chapters, EU producers find it increasingly difficult to match low
import prices. Furthermore, EU exporters suffered, just like in 2002, from the appreciation of
the euro against the US dollar. An overview of exports of outerwear by the EU-15 (in volume
and value) is given in appendix 2.
Figure 6.1 Exports of outerwear by EU-15 countries in value, 2001-2003
14
12
10
2001
8
2002
2003
6
4
2
re
ec
e
Au
st
ri
Sw a
ed
en
Ir
el
an
d
Fi
n
Lu
la
nd
xe
m
bo
ur
g
n
ar
k
G
m
ai
D
en
G
Sp
It
al
y
er
m
an
y
Fr
an
ce
Be
U
ni
l
g
te
iu
d
m
Ki
ng
do
N
et
m
he
r la
nd
s
Po
rt
ug
al
0
Export activities by the EU-15 countries vary strongly. Almost 69 percent of total EU exports
concerned exports to other EU countries in 2003. The main destinations outside the EU were
Switzerland (5% of total EU exports and 16% of non-EU exports), the USA (14% of non-EU
71
exports), Japan (10%), Russia (6%), Romania (4%), Norway (4%) and Hong Kong (3.5%).
Exports to Romania covered mainly parts of garments as part of outward processing trade.
Developments in exports to the leading destinations were: exports to France, Spain and Italy
showed the biggest growth, while exports to Germany, United Kingdom, The Netherlands, the
USA, Austria and Japan decreased.
Woven outerwear accounted for 60 percent of EU exports (in terms of value) and knitted
outerwear for 40 percent in 2003. Leading export product groups in the outerwear sector were:
woven trousers and shorts (18% of total EU outerwear exports in 2003), knitted jerseys,
pullovers etc. (15%), T-shirts (11%), woven suits and ensembles (6%) and woven shirts and
blouses (7%).
EU-15 exports of leather garments decreased by 7 percent in 2002 and by 16 percent in 2003 to
€ 907 million, of which two thirds went to countries outside the EU.
The most important destination outside the EU became Switzerland with 9 percent of total
exports in 2003, thereby passing the USA (8%). Other destinations were Japan, Russia, Hong
Kong, Norway, Czech Republic, Andorra, Canada, Mexico, South Korea and Poland.
An overview of exports by the selected major EU countries including the leading destinations is
given in the table below.
Table 6.1
EU-15 exports of leather garments in total and by trade partners in value, 2001-2003
Italy
Germany
France
Spain
Netherlands
Belgium
UK
2002
€ mln
414
214
117
96
60
60
41
EU (15)
1,081
2003
€ mln
333
194
116
58
50
47
37
%
change
- 19.6%
- 9.3%
- 0.1%
- 39.6%
- 16.6%
- 21.6%
- 9.7%
Leading trade partners in 2003
(between brackets share in total of their area of origin)
USA (15); Switzerland (13); Germany (11); France (10); UK (7); Japan (7)
Austria (18); Switzerland (13); Netherlands (11); France (9); UK (6)
Italy (14); Spain (13); Germany (13); Belgium (12); UK (12); USA (6)
Portugal (20); Japan (12); France (11); Italy (7); Mexico (6); UK (5)
France (19); Germany (19); Belgium (11); UK (11); Italy (8); Portugal (6)
France (67); Netherlands (8); Spain (5%); UK (4); Germany (4); Italy (3)
Ireland (28); Spain (11%); USA (11); France (11); Germany (9); Greece (6)
907 - 16.1% France (12); Germany (9); Switzerland (9); USA (8); UK (7);
Austria (5);
EU-10
Exports by the ten new EU members increased to € 6.4 billion in 2003. Compared to the EU15, exports by the ten new member states are 13 percent of the EU-25 total. Two new
members (Poland and Hungary) accounted for more than half of the total exports.
Table 6.2 Clothing exports by new EU member countries in terms of
value, 2001-2003
Poland
Hungary
Slovakia
Lithuania
Czech Republic
Slovenia
Estonia
Latvia
Malta
Cyprus
Total
2001
€ mln
1,907
1,163
567
519
584
279
210
184
149
31
5,593
2002
€ mln
1,833
1,205
629
567
601
314
238
188
174
26
5,775
2003
€ mln
2,008
1,365
708
655
645
332
270
242
182
25
6,432
% change
2003/2002
9.5%
13.3%
12.6%
15.5%
7.3%
5.7%
13.4%
28.7%
4.6%
- 4.1%
13.8%
Source: Comext 2004
Exports of leather garments by the ten new EU member countries fell 21 percent to € 50 million in
2003, of which 94 percent by four countries: Poland (36%), Hungary (33%), Slovenia (14%) and
72
Czech Republic (12%). Exports by Poland (+ 7%) and Czech Republic (+ 24%) grew while exports
by Hungary (-21%) and Slovenia (-6%) fell in the period 2002/2003. Main destinations were Italy
and Germany.
6.1.1 Italy
Italian outerwear exports decreased 7.3 percent in 2003, compared with the previous year, to €
11.7 billion. Italian exports covered 74 percent woven and 26 percent knitted outerwear.
12.5 percent of the value went to Germany in 2003 (it was 18% in 2000), followed by France
(11%), USA (10%), Switzerland (7%), UK (7%) and Japan (6%). Other destinations outside
the EU were Russia, Romania, Hong Kong, Croatia and South Korea (percentages between 2
and 3 percent of total exports). The fall in Italian exports was mainly due to decreased exports
to the leading destinations: exports to Germany fell by 20 percent, to the UK (-14%), to the
USA (-13%) and to Japan (-8%), despite increased exports to Switzerland (+21%) and Russia
(+11%).
6.1.2 Germany
German exports of outerwear fell 1.6 percent from € 7,276 million in 2002 to € 7,156 million in
2003. 68 percent of German exports concerned woven and 32 percent knitted outerwear.
Leading destination remained (in terms of value) neighbouring country Austria (16.5% in total,
divided over all product groups but mainly woven outerwear), The Netherlands (14%), France
(9%), Switzerland (9%), UK (4%), and Belgium (4%). Other destinations outside the EU
besides Switzerland were the Czech Republic, Russia, USA, Poland and Japan, each of these
countries having received an export share of 1-3 percent in 2002. Exports to Poland and Czech
Republic covered mainly outward processing trade. Despite a slight fall in total German exports,
exports to France, Czech Rep. and Spain increased considerably.
6.1.3 France
Half of French outerwear exports went to five EU partner countries: Belgium, UK, Spain, Italy
and Germany. Spain passed Germany and became the third export destination of France in
2003. French exports amounted to € 4,785 million in 2003, which is 2 percent lower than in
2002. 38 percent of French exports went to destinations outside the EU, which is much higher
than the EU average of 31 percent.
Japan (6% of total exports), the USA (5%) and Switzerland (5%) ranked 6th, 7th and 8th in
French export destinations after these five EU countries.
Growth in French exports came from increased exports to Spain and Italy and to a lesser
degree from higher exports to the UK, Greece and Austria. Exports to Belgium and Germany
showed the biggest fall, followed by lower exports to Japan, USA and Switzerland.
Outerwear exports by the UK fell from € 3,310 million in 2002 to € 3,186 in 2003 after a
stabilisation in the period 2001-2002. Major destinations for all product groups were Ireland
(21% of total UK exports), Germany (15%) and France (10%), followed by USA, Spain,
Morocco, and Italy (each of these countries between 4 and 5%). Other destinations outside the
EU were Japan, Hong Kong, Romania, UA Emirates, Saudi Arabia, South Korea, Switzerland and
Turkey. Exports to Morocco and Romania almost completely concerned parts of clothing as a
result of outward processing trade with these countries.
Exports to Italy showed the biggest growth of the leading UK destinations, followed by Spain,
France and the UA Emirates, while exports to Germany, The Netherlands, Japan, Belgium and
Romania decreased sharply.
Outerwear exports by The Netherlands fell 7.7 percent from € 2,921 in 2002 to € 2,696 million
in 2003, of which 60 percent concerned woven clothing. The leading destination for all product
groups remained Germany, with 31 percent of Netherlands exports going to its neighbouring
country. Other destinations were Belgium (16%), France (15%), UK (9%) and Spain (5%),
followed by Italy and Austria. Switzerland, receiving 2.2 percent of Netherlands exports, ranked
8th and was the leading non-EU destination, at distance followed by Turkey and Norway.
73
The weak German clothing market was the main reason that exports to this country fell
considerably (almost 10%). Other leading destinations showing decreased exports were:
Belgium, UK, Spain, Austria and Switzerland. Exports to France and Italy increased.
6.1.6 Spain
After a strong growth of 11 percent in 2001, Spanish exports of outerwear (in terms of value)
grew by a limited 1.1 percent in 2002 and fell 1.9 percent in 2003 to € 2,320 million. Around 65
percent of Spanish exports concerned woven outerwear. Leading destinations were
neighbouring countries Portugal (22%) and France (16%), followed by Italy (7%), the UK (6%),
Germany (6%) and Mexico (5%). Other destinations outside the EU, besides Mexico, were
Saudi Arabia, Switzerland, Japan and Morocco.
Increased Spanish exports went to the following destinations: UK, Germany, The Netherlands
and Greece, while exports to Italy and Switzerland and to a lesser degree Portugal and France
decreased.
6.1.7 Belgium
Belgian exports of outerwear fell 3.2 percent from € 3.948 million in 2002 to € 3,820 million in
2003. Leading destination remained neighbouring country France, 42% of total exports (in
terms of value!!) divided over all product groups but mainly woven outerwear, followed by
Germany (13%), UK (11%), The Netherlands (8%), Italy (7%) and Spain (7%). The 13 leading
destinations were all EU-15 countries. Other destinations outside the EU were Tunisia, Japan,
Switzerland, Romania and Poland, each of these countries having received an export share of
less than 1 percent in 2003. Exports to Tunisia, Romania and Poland covered mainly
subcontracting activities. Despite a fall in total Belgian exports, exports to France and Spain
increased, while exports to Germany, United Kingdom and The Netherlands decreased.
6.2 Re-exports
Exports by major EU countries as described above include the so-called re-exports: imported
products, which are exported to other (mainly other EU) countries. The volume of re-exports
can be calculated when national production statistics are available and destination of production
can be divided into domestic sales and exports by industry. For instance: available production
figures in The Netherlands are rather limited and include production abroad by manufacturers.
For that reason, re-exports by The Netherlands cannot be determined, however, it can be
assumed that about 40 percent of Netherlands outerwear imports is re-exported or that almost
80 percent of exports of outerwear consists of re-exports. Besides The Netherlands, re-exports
by Germany are important, while re-exports in the other major EU countries are more limited
but strongly growing.
74
7
TRADE STRUCTURE
7.1 EU trade channels
Figure 7.1 shows the basic functions of the various kinds of exporting manufacturers and
traders, agents, importing manufacturers, wholesalers and retailers. Depending on its position
in the market, the functions of a particular distribution organisation will be linked with up- or
downstream organisations with the same kind of specialisation. It is also possible for a given
organisation to take over (some of) the functions of the latter, in order to improve
competitiveness (vertical integration). For instance, manufacturers, agents and retailers may
also function as importers, while wholesalers may also be manufacturers (vertical integration).
Each of these groups has a different approach to business and the market, with its own specific
interpretation of the marketing mix.
Converting means that the main activities necessary for the realisation of the product have
been carried out on order by other organisations, according to the requirements of the principal.
The role of converter is not indicated specifically in this scheme because converting is an
activity, which has been undertaken by an importing manufacturer, wholesaler or retail
organisation.
Theoretically, importing is a function that can be done by manufacturers, wholesalers or
retailers as given in figure 7.1. However, in some countries and/or branches a distinction is
made between importing wholesalers and importers. In that case, the importer purchases at
own risk, handles Customs clearance and sells mainly to retail organisations, like multiples,
department stores and buying organisations and other wholesalers, while wholesalers purchase
at own risk from local or EU manufacturers and from importers.
Figure 7.1 Trade and distribution channels for outerwear in the EU
Exporting manufacturers
Importing wholesalers
Importing manufacturers
Importing
Department
and variety
stores
Clothing
multiples
Agents
retailers
Home
shopping
companies
Selling and/or
buying
organisations
Other
retailers
Non-importing retailers
7.1.1 Sales intermediaries
Different sales intermediaries have their place between industry and retail, for instance:
• Agents; the sales agent is an independent intermediary between the (foreign) manufacturer and the retailer or retail organisation, receiving a commission from the former. The
agent (or sales representative) covers a limited geographical area. The level of the
commission depends on a number of factors, including the turnover rate of the product
concerned, but it averages an estimated 8-12 percent of turnover. Most agents represent
more than one manufacturer, although competition is avoided. More and more agents are
starting to sell from stock, to meet their clients' short-term demands. Stock forming is often
75
•
•
•
on a consignment basis. If the agent builds up his own stock, he is in fact functioning as an
importer/wholesaler. The role of agent as described above is often indicated as selling
agent. Another type of agency is the so-called buying agent. The buying agent is located in
the supplying country and settles business on the instructions of his principals, mainly retail
organisations and works on commission basis, too.
Importing wholesalers; most outerwear and/or sportswear wholesalers cater both to the
specialist shops as well as to the department stores and multiple chains. Contrary to the
agent, the wholesaler purchases from manufacturers and holds his stocks at own risk. The
mark-up of wholesaler is approximately 20-30 percent. The development described above an increasing number of agents acting as importer/wholesaler- is also true in reverse: many
importers/wholesalers today act as agents. The fact that many independent retailers as well
as purchasing combinations and multiple stores are becoming more cautious about preordering, preferring to sell from stock, is reinforcing the position of the wholesaler. On the
other side, large retail companies are increasingly purchasing abroad, thereby passing the
intermediaries. In the case of importers, as mentioned above, the mark-up is approximately
40-50%.
Importing retailers; the bigger retail organisations (multiples with more than 20 outlets,
department and variety stores, buying organisations, home shopping companies) import by
themselves as will be described in chapter 7.1.2.
Importing manufacturers; the many forms of production strategy of EU manufacturers
are discussed in chapter 4 of this survey. Retailers are increasingly taking part in stages
before them in the sector (vertical integration) and have their own designers to give their
own collections a more unique look. Clothing manufacturers penetrate the retail business
by operating through own shops or through franchising. This gives them control over their
output and margins. Producers can also try to compete through a greater emphasis on their
own product development. They can then offer exclusivity to the retailers, which gives them
a competitive advantage.
Contacts with sales intermediaries can be made in several ways, like consulting trade
representatives’ associations, chambers of commerce, fashion centres, trade publications, trade
directories etc. We refer to the appendices of this survey for addresses and other information.
7.1.2 Retailers of outerwear
Retailers in general
Retailers constitute the final stage before products reach the consumer. In this survey, a
distinction is made between department stores, clothing multiple stores, textile supermarkets
or discount stores, home shopping companies and independent (clothing specialty) retailers.
Other categories are grocery supermarkets, street markets etc..
Distribution channels differ greatly across the EU member states. The UK has a high
concentration of distribution, which is reflected in the relatively low market share of
independent retailers. The southern member states, Portugal, Italy and Spain, however, have
high market shares for independent retailers. These retailers buy mainly from manufacturers
and wholesalers/importers, contrary to Germany and The Netherlands for instance, where many
independent retailers are members of buying co-operations. The table below gives an overview
of the relative importance of different retail stores in the sales of outerwear in EU member
states.
The various retailing stores differ in the sales formula they apply, i.e. their assortment and the
targeted consumer group, as well as in the way they differentiate themselves from competitors.
As an aid to understanding the market, one can discriminate between "service retailing", where
the retailer offers the consumer substantial added value (quality, service, fashion ability, choice
etc.), and "low-margin retailing", where the price-conscious consumer is offered low prices, at
the expense of quality, service and so forth. Stores of the first kind are often referred to as
being at the "upper end" of the market, the latter at the "lower end" of the market;
intermediate-type stores may be termed "mid-market".
Table 7.1 gives an overview of how the consumer has been reached in several major EU
member states.
76
Table 7.1 Types of retail channels by market share (in % of value) in major EU countries, 2004
Germany
UK
Italy
France
Spain
Clothing multiples 1)
29
34
Independent retailers
25
14
Department/variety stores
12
28
Home shopping
15
9
Hyper- and supermarkets
7
5
Sports shops
3
6
Other incl. street markets
9
4
Total
100
100
1) including textile discounters and value retailers
Sources: Retail Intelligence and national statistics
19
49
8
2
12
4
6
100
37
21
7
9
15
6
5
100
24
37
14
1
13
5
6
100
Netherlands
38
29
10
5
2
5
11
100
Belgium
EU-15
33
40
7
3
5
6
6
100
31
26
14
8
10
4
7
100
Besides the growing role of non-specialised distributors, as mentioned above, the most
important developments are the increasing integration in the value chain, increasing
concentration (developments in the major countries will be given below) and growing
internationalisation or cross-border activities, of which the main (besides many others)
examples are Hennes & Mauritz (Sweden), Vögele (Switzerland) and Inditex (Spain). H&M has
1,121 stores spread across 21 countries, turnover increased 11 percent to € 6,902 million in
2004; Vögele expanded modestly to 788 outlets in five European countries, turnover decreased
by 6 percent € 882 million in 2004; vertically integrated Inditex operates world-wide with 2,254
outlets in 56 countries and a global turnover of € 5,760 million in 2004, which was 25 percent
more than in 2003. Zara is Inditex’s most important chain with 760 stores world-wide, but
mainly in Europe. Some other globally operating companies are C&A, exploiting 820 outlets in
13 European countries, turnover about € 5,000 million and Etam 2,855 outlets in 40 countries,
although turnover decreased by 2.4 percent to € 1,047 million in 2004.
Recent tough market conditions have favoured those retailers who can respond to consumer
demand more quickly and at lower cost. A handful of specialty retailers, such as H&M and Zara,
continues to defy the global economic downturn. These companies are particularly adept at
understanding what consumers buy - and want to buy - in real time and responding quickly to
sales trends and customer feedback. The explosive growth of these chains is, besides
international expansion, also driven by diversification. As a growth strategy, they are
capitalising on the heightened interest in their brands by extending them into new product
areas, new customer segments, and new formats.
These strategies, mentioned above, have consequences for manufacturers, through the
concentration in buying activities. The powerful groups of chains reduce their number of
supplying manufacturers in general; have a stronger position in negotiations about price,
delivery conditions etc. and in some cases organisations take over the functions of suppliers in
order to improve competitiveness (vertical integration). The increasing integration in the value
chain decreases the number of suppliers on the market and forces them into a close and longterm cooperation with the distribution channels. Mergers and take-overs in clothing production
in many EU countries should therefore be seen against the background of grasping more market
power, as well as a strong position compared to the retail organisations.
Buying policy of intermediaries
Margins are under continuous pressure in the major EU countries. Consumer expectations with
regard to lower prices, in particular, as well as tough competition have resulted in the retailer’s
needs for lower inventories, less out of stock and lower markdowns. Consequences for the
buying policy are:
• fewer pre-seasonal orders;
• more collections per season;
• investment in seasonal planning and control;
• co-operation with suppliers (quick response/electronic data interchange), and
• fewer suppliers.
Successful formulas are based upon permanent replenishment and fast-moving goods. H&M
and Zara are examples of the competitive advantages and benefits of greater speed to market.
77
The secret of their success is the ability to provide the latest fashion trends to their customers.
Zara, seen to be more at the cutting edge of fashion than H&M, has maintained a lead in its
ability to respond rapidly to fashion trends. It puts fashion ranges together in 7-30 days and
can replenish bestsellers in the stores in five days, while H&M can respond in 30-60 days. This
compares to as much as 40-50 weeks from design to delivery for a typical clothing retailer.
All opportunities enabling reduced costs are eagerly pursued. Buyers of clothing importing
companies are looking for lower purchase prices abroad, while minimising costs in the buyer’s
home country. The necessity to reduce costs has provided the main driving force behind the
development of foreign garment sourcing for the markets of importing countries. As a result,
production has migrated to a growing number of developing countries, as buyers have sought
and are still seeking for ever lower-cost locations. In practice, it is not a question of looking for
the lowest wages but looking for manufacturers with the lowest overall manufacturing costs.
Minimising purchasing costs implies that many buyers try to limit the number of supplying
countries and the number of individual manufacturers they deal with.
Sourcing policies are made on two levels, country level and company level. On country level
aspects like quota, duty rates, ethical aspects, wage structure, distance, local infrastructure,
economic and political stability play a role. Other aspects like fast reaction, speed to market,
logistics management, quality, production facilities, design capacity, availability of raw materials,
are not country-specific. They may vary considerably within individual countries and will be
discussed in chapter 11.
7.2 Trade structure in major EU countries
7.2.1 Germany
The general developments in retail (cross-border activities or internationalisation and
concentrations) are also valid in Germany. Many foreign owned clothing retailers are active on
the German market, of which the most important are: Hennes & Mauritz (Sweden), Vögele
(Switzerland), the Mulliez Group from France with the chains Orsay and Pimkie, Benetton
(Italy), Esprit (USA), Zara and Mango (from Spain), M&S Mode, WE and Zeeman (from The
Netherlands) etc. Examples of concentration in Germany are groups like: Karstadt/Quelle,
which is Europe’s leading department store and home shopping group, Otto Group and Metro
Group.
Table 7.2 Market shares for retail distribution of clothing in Germany, 2000-2004
(in % of value)
2000
2002
2004
Specialists
56
55
54
- Independent retailers
28
27
25
- Clothing multiples *)
28
28
29
Non-specialists
44
45
46
- Department and variety stores
13
13
12
- Home shopping companies
14
14
15
- Hyper- and supermarkets
5
6
7
- Sports stores
3
3
3
Other
9
9
9
Total
100
100
100
*) including discounters
Source: BBI and BTE
The German retail-clothing and textiles market is becoming more concentrated:
• 20 companies accounted for 50 percent of the market;
• the top four (Karstadt/Quelle, Otto, Metro and C&A) accounted for 27 percent of the
market. Karstadt/Quelle realised a turnover of € 6.3 billion in 2003 (- 2.0%); Otto € 3.7
billion (- 4.9%), Metro € 3.3 billion (cannot be compared with 2002) and C&A € 2.7 billion
(- 2.5%).
According to BTE, the total number of German outlets with clothing in their assortment is 42,000.
The number of independent clothing stores is estimated at 20,000, of which 7,000 are specialised
78
in women’s wear, 2,000 in men’s wear, 7,500 have a broader range and the remaining part is
specialised in another product group. Around 40 percent of the independent retailers is
members of a buying corporation. In no other European country, with the exception of The
Netherlands, do the buying organisations play such a significant role for specialised independent
retailers as they do in Germany. The most important buying corporations are KMT with 350
members; Ardek is specialized in babies’ and children's products including clothing and has 500
members with 600 outlets, Katag-abz operates through 950 outlets. Other buying groups are
Unitex with 500 members and Sütegro (women’s wear) with 130 members. Most of the sport
shops are organisations of independent retailers, many of them being organised in (international)
co-operations like Intersport (1,200 members with 1,600 outlets) and Zentrasport’s Sport 2000
(1,100 outlets).
The number of clothing chains in children’s wear and men’s wear is very limited in Germany, as
can be derived from the list of major clothing chains.
Table 7.3
Major specialised clothing, sports chains and discounters in Germany, 2004/2005
Retail chain
Parent company
Sector
C&A
Hennes & Mauritz
Peek & Cloppenburg
Vögele
Peek & Cloppenburg
Wöhrl
K+L Ruppert
Zara
Orsay
Sinn Leffers
Bonita Mode
Ulla Popken
Xanaka
Pimky
M&S Mode
Pohland
Nicolas Scholz
Kids Stores
New Yorker
Mister + Lady Jeans
Jeans Fritz
Runners Point
Ernsting’s Family
Takko
KiK
Adler
NKD
Zeeman
C&A (Netherlands)
Hennes & Mauritz (Sweden)
Peek & Cloppenburg West
Vögele (Switzerland)
Peek & Cloppenburg Nord
Wöhrl
K+L Ruppert
Inditex (Spain)
Mulliez Group (France)
Karstadt/Quelle
Bonita Group
Popken Group
Vendex/KBB (Netherlands)
Pohland
Bonita Group
C&A (Netherlands)
New Yorker
Western Store Beran
Jeans Fritz
Karstadt/Quelle
Ernsting
Takko
Tengelmann-Gruppe
Metro Group
NKD
Zeeman Group (Netherlands)
General clothing
General clothing
General clothing
General clothing
General clothing
General clothing
General clothing
General clothing
Women’s wear
Women’s wear
Women’s wear
Women’s wear
Women’s wear
Women’s wear
Women’s wear
Men’s wear
Men’s wear
Children’s wear
Leisure wear
Leisure wear
Leisure wear
Sportswear
Discounter 2)
Discounter
Discounter
Discounter
Discounter
Discounter
Number
of outlets
227
282
78
352
26
41
50
33
239
51
397
257
77
152
77
12
40
77
254
193
200
121
1049
781
1055
766
241
Turnover 1)
2003 in
€ million
2,690 a)
1,800
1,360
373
342
308
185
161
540 c)
537
260 b)
166
c)
c)
n.a.
62
b)
a)
440
119
106
24
412
740
652
609
366
86
1) turnover in textiles and clothing 2) mentioned discounters are textile and/or clothing discounters
a), b) and c) only consolidated figures are given
Source: Textil Wirtschaft
Leading department stores are Karstadt and Kaufhof. Karstadt (166 stores, including
Wertheim, KaDeWe and Alsterhaus and 32 Karstadt Sport Shops) is part of Karstadt/Quelle;
Galeria-Kaufhof (115 stores) is part of Metro. Another department store is Breuninger with 12
stores. The leading variety store is Woolworth (326 outlets), of which textiles accounted for
about 40 percent of total turnover.
Discounters are NKD, Takko, Ernsting’s Family, KiK, Adler and Zeeman. Discounters sell
family clothing, sportswear, underwear, nightwear, hosiery but also household textiles and
beds; they buy in large quantities and avoid middlemen, in order to get low-priced goods in the
shops quickly. All discounters mentioned increased strongly in turnover and in number of
outlets in recent years.
79
Home shopping companies occupy a significant position in the German retail market.
Leading companies are Quelle, Neckermann (both from Karstadt/Quelle), Otto and Klingel. The
Otto Group is the world's biggest home shopping organisation, due to its many foreign
activities: 123 companies in 19 countries, of which, besides Otto, Les trois Suisses and Baur are
those most well-known. Otto includes for instance Schwab-Gruppe (Schwab-Versand and
Joseph Witt) and Heine-Gruppe (Heine, Sport Scheck, Alba Moda, Frankonia Jagd and Eddie
Bauer). Besides Neckermann and Quelle, home shopping companies like Atelier Goldner
Schnitt, Peter Hahn, Madeleine and many others belong to the Karstadt Quelle Group. Other
(independent) home shopping companies are Bader and Walbusch. Most of the companies
mentioned have outlets; on the other side, several clothing multiples started home shopping
activities and have their own catalogue, website, teleselling activities etc.
Many textiles including outerwear can be found increasingly in super- and hypermarkets, like:
Aldi (3,550), Edeka (almost 4,000), Lidl (2,350) and Rewe (2,100). Most of these retail
organizations regularly or incidentally offer clothing and other textile products. Tengelmann sells
clothing and textiles via KiK (1,256 outlets in Germany and 181 in Austria), one of the four
formulas of this internationally operating chain, in total 7,300 outlets in 16 countries.
‘Other’ includes Makro, wholesaler with retail activities and part of Metro Group; Tchibo operates
with coffee shops, including retail activities in clothing and textiles and home shopping activities;
street markets and factory outlets.
Thousands of wholesalers operate in Germany. A selection of German wholesalers can be made
by searching through the several free available trade directories (see appendix 3.6). A selection
can also be made by searching through http://www.dino-online.de ; typing the search keyword:
‘grosshandel Kinderbekleidung’ (wholesale children’s clothing); resulting in 312 sites. Other
possibilities are Damenoberbekleidung, Herrenoberbekleidung or specific product names.
Websites of companies mentioned above:
http://www.katag.net ; http://www.ardek.de ; http://www.suetegro.de ;
http://www.peekundcloppenburg.de ; http://www.woehrl.de ; http://www.kl-ruppert.de ;
http://www.bonita.de ; http://www.ullapopken.com ; http://www.karstadtquelle.com ;
http://www.neckermann.de ; http://www.otto.de ; http://www.galeria-kaufhof.de ;
http://www.breuninger.de ; http://www.woolworth.de ; http://www.nkd.de ;
http://www.ernstings-family.de ; http://www.adler.de ; http://www.tengelmann.de;
The structure of clothing retailing in the UK is one of the most concentrated in the world. The
largest player in the market is the Arcadia Group, which operates with 2,321 clothing multiple
stores and includes, besides home service activities, the women’s wear chains Dorothy
Perkins, Evans, Topshop, Miss Selfridge and Wallis, the men’s wear chains: Burton Menswear
and Topman. Since 2002, this group has been owned by Philip Green, who bought Bhs (158
stores) in 2000 and added Etam (231 stores) to the Group in 2005.
Second clothing supplier in the UK is variety store Marks & Spencer (M&S), which accounted
for 11 percent of clothing sales in 2004.
During the period 2000-2004, the discount and value clothing retailers grew rapidly at the
expense of mid-market retailers such as the variety stores (M&S, Bhs and Littlewoods), and
clothing multiples (the Arcadia Group and Next).
80
Table 7. 4
Market shares for retail distribution of clothing in UK, 2000-2004
Specialists
- Clothing multiples *)
Non-specialists
- Variety stores
- Department stores
- Sports shops
- Street markets and other
Total
2000
47
16
31
53
19
9
6
4
10
5
100
2002
47
15
32
53
17
10
7
5
10
4
100
2004
48
14
34
52
18
10
6
5
9
4
100
*) including discounters and value retailers
Source: ONS
In the UK, about 15,000 businesses operate with 32,000 outlets, of which an estimated
10,000 can be classified as independent specialists. However, independent specialist stores
have a share of only 14%, which is rather low compared with the much higher percentages in
France and Germany. Except in the sports branch, there are no important buying groups
active in the UK clothing sector. However, in the sports sector a part of the independent sport
shops has joined a buying group. The most important are: Intersport 51 members with 149
stores and Sport 2000 with 183 stores.
The following overview gives the leading chains, operating in the mid and lower market segments
in the UK.
Table 7.5
Major specialised clothing and sports chains in the United Kingdom, 2004-2005
Retail chain
Parent company
Sector
Dorothy Perkins
Evans
Wallis
New Look
Alex & Co.
Monsoon
Etam
Miss Selfridge
Topshop
Topman
Burton
Next
Hennes & Mauritz
Mothercare
JJB Sports
Millets
Blacks
JD Sports
Allsports
Arcadia Group
Arcadia Group
Arcadia Group
New Look
Alexon Group
Monsoon
Arcadia Group
Arcadia Group
Arcadia Group
Arcadia Group
Arcadia Group
Next PLC
Mothercare
JJB Sports
Blacks Leisure Group
Blacks Leisure Group
JD Sports
Allsports
Women’s wear
Women’s wear
Women’s wear
Women’s wear
Women’s wear
General clothing
Women’s wear
Young fashion for women
Young fashion for women
Young fashion for men
Men’s wear
General clothing
General clothing
Children’s & maternity wear
Sportswear
Outdoor/sportswear
Outdoor/sportswear
Sportswear
Sportswear
Number
of outlets
550
308
260 a)
522
214
300
213
180
270
160
380
352
95
231
430
246
83
350
270
a) including 126 concession outlets
Just like in other European countries, the mid-market global fashion brands of the foreign
companies H&M, Zara and Mango are strengthening their hold on the UK market.
In the UK clothing retail sector a distinction is made between discount retailers, which sell
branded clothing at below recommended prices and value retailers, which sell own label
clothes at low prices. The market share of these retailers, in particular value retailers,
increased strongly in the period under review and included outerwear.
81
Table 7.6
Major value and discount retail chains in the UK, 2004-2005
Retail chain
Type of retailer
Assortment
Matalan
Peacock
Bonmarché
Primark
Ethel Austin
Mackays
QS
TK Maxx (USA)
The Officers Club
value retailer
value retailer
value retailer
value retailer
value retailer
value retailer
value retailer
discount chain
discount chain
Family clothing and homewares
Clothing, footwear and household goods
Women’s wear
Clothing, footwear and household textiles
General clothing and household goods
Women’s and children’s wear
General clothing
Fashion and giftware
Men’s wear
Number
of outlets
170
434
351
115
271
251
186
150
180
The most important variety chain is Marks & Spencer (M&S) with 390 stores nationwide and
selling clothing besides food and homeware. In addition, M&S has 150 stores worldwide,
including 130 franchise businesses operating in 27 countries. M&S is UK’s leading household
and furnishing retailer, and an important retailer of foods, clothing and footwear. Other variety
chains selling outerwear are Bhs (158 stores), active in adults’ wear and even more important
in children’s wear, Littlewoods (119, of which 97 include Index outlets), Index operates also
with 65 stand-alone outlets and Woolworth (806 main chain stores and 18 big W. stores), which
ranks second after Marks & Spencer in children’s wear.
Department store Debenham (90 stores) is the UK’s third largest clothing retailer and the
leading department store in selling clothing. Other department stores, selling outerwear are:
House of Fraser (47), Allders (37) and the John Lewis Partnerhip (25).
Home shopping: Over 40 companies are active in the home shopping sector (operations via
direct-mail, catalogues, television and Internet) like: Argos, just like Wehkamp in The Netherlands
part of Great Universal Stores; Grattan and Freemans (both part of the German mail-order giant
Otto Versand); Empire Stores owns by the French PRP. Many retail organisations operate also via
home shopping, like Next, Littlewoods, Monsoon, M&S, Debenhams and John Lewis.
Super- and hypermarkets: The two major retailers in the supermarket sector are ASDA (part
of American Wal-Mart) and Tesco. They increasingly follow the trend of offering non-food
products as do, for instance, the leading French hypermarkets. ASDA’s assortment includes its
successful George clothing range, which is also sold by Wal-Mart. Tesco sells outerwear and
bodywear in their outlets. The market share in clothing sales of the leading grocery retailers is
limited, caused among other factors by competition from the value and discount retail chains.
As mentioned above, the importance of central buying organisations in the UK is low. In the UK,
importers/wholesalers have often taken over the buying functions for smaller retailers, as the
latter mentioned do not have the know-how and the means to import on their own clothing
products. For most suppliers to the UK market, indirect selling is the first way to go for,
although UK wholesalers are infrequently mentioned and are rarely visible, so that searching for
them on Internet proves to be very difficult. Some of them ask for payment, like
http://www.britishcompanies.co.uk other are free but limited, like http://www.startups.co.uk
Websites of UK companies mentioned above:
http://www.arcadiagroup.uk.co ; http://www.newlook.co.uk ; http://www.alexon.co.uk ;
http://www.next.co.uk ; http://www.mothercare.com ; http://www.jjb.co.uk ;
http://www.allsports.co.uk ; http://www.jdsports.co.uk ; http://www.blacksleisure.co.uk ;
http://www.bhs.co.uk ; http://www.johnlewis.com ; http://www2.marksandspencer.com ;
http://www.littlewoods.co.uk ; http://www.woolworthsgroupplc.com http://www.matalan.co.uk
; http://www.tkmaxx.com ; http://www.primark.co.uk ; http://www.peacocks.co.uk ;
http://www.mackaystores.co.uk ; http://www.asda.co.uk ; http://www.tesco.com ;
http://www.qsgoup.co.uk ; http://www.theofficersclub.co.uk
82
7.2.3 Italy
The Italian clothing retail market is highly fragmented, traditional specialist retail outlets remain
the principal channel for the distribution of outerwear. Major developments in the Italian
clothing retail trade in the period under review were growth in sales by super- and
hypermarkets and by clothing chains, to the detriment of independent retailers. Because of the
recent entrance of foreign chains, it is expected that this development will be continued in the
coming years.
The largest companies are major retailers as well as producers (Benetton, Stefanel and Luisa
Spagnoli). Big retail chains, like the Coin Group and the Rinascente Group buy directly from
producers and also import.
Wholesalers play an important role in distribution, accounting for 50-60% of the purchases of
retailers. Wholesalers are generally used by manufacturers of cheaper, mass market and
standardised products. Manufacturers of classic and exclusive, higher-priced clothing sell mainly
directly to retailers or through own outlets - either fully owned or franchised.
Table 7.7
Market shares of retail distribution of clothing in Italy, 2000-2004
(in % of value)
2000
2002
2004
Specialists
69
69
68
52
51
49
- Clothing multiples
17
18
19
Non-specialists
31
31
32
- Department/variety stores
8
8
8
10
11
12
- Sports shops
4
4
4
2
2
2
7
6
6
Total
100
100
100
Specialists account for two thirds of clothing sales and specialised independent retailers still
dominate the Italian clothing retail sector. The decreasing but still important market share of
independent retailers was realised by around 130,000 companies.
General clothing multiples, with own production facilities, are Benetton (5,200 stores in 120
countries, of which 2,100 in Italy and also operating with brands like Sisley, Playlife and
Killerloop) and Stefanel (1,200 stores world wide, of which 382 in Italy). One of the largest
distributors not owned by a clothing producer is Gruppo Coin (which owns 291 Oviesse stores of
which 210 in Italy) in the mid and lower price segments. The children’s wear chain Bimbus (60)
was sold to Preca Brummel, owner of the children’s wear chain Brums (205).
The leading babies’ and maternity wear chain is Prénatal (192), owned by the Artsana Group, just
like Tutto Chicco, selling toys, baby accessories and children’s wear in 227 outlets.
Sports chains are Giacomelli Sport (73) and, from France, Déclathon (31). These chains
compete directly with members (almost 400 outlets) of the buying group Intersport. Sport 2000
is also active in Italy, working with Sport Alliance, representing 130 outlets. The sports retail
market in Italy is improving and further expansion is expected from Decathlon and Footlocker.
The number of foreign companies operating on the Italian market is limited to some formula of
Auchan Mulliez, of which Pimkie (32) is the most important, some formula of Inditex, like Zara
(23 stores) and Bershka (7) and Hennes & Mauritz (7), but will grow rapidly.
The major department stores in Italy are Coin (80), owned by the Coin Gruppo and La
Rinascenta (18), owned by Auchan/Gruppo Rinascenta. The Coin Gruppo owns the leading
variety store Oviesse (246). Auchan/Gruppo Rinascenta covers variety store Upim (157 own
stores and 230 affiliated stores).
The Italian home shopping sector remains relatively underdeveloped, primarily due to
problems with distribution and the generally poor postal delivery service. The leading mail-order
company, with sales in clothing besides general goods, is Postalmarket.
83
Super- and hypermarkets: Hypermarkets grew in number, as did the clothing sales by these
channels. The most important chain is Rinascente, with 38 hypermarkets and 211
supermarkets; another chain is Citta Mercato. Increased sales in clothing are expected via
super- and hypermarkets in the coming years, of which much can be ascribed to foreign
supermarket chains like Carrefour, Metro and Lidl.
The Italian importers operate nation-wide and mainly ask for the “exclusive distribution rights”
for the whole of Italy. Importers/wholesalers in the classical sense are faced with fierce
competition within the distribution system and the strong position of the clothing brands with
their own efficient outlets. The importers often can only position themselves by “a low price
strategy”, e.g. by sourcing in developing countries. Wholesalers are generally used by
manufacturers of cheaper, mass market and standardised products. Manufacturers of exclusive,
higher-priced textiles sell mainly directly to retailers.
Foreign manufacturers will often set up their own sales organisations or work through an
exclusive importer for the market. This company may in turn sell through a network of regional
wholesalers or agents. Foreign manufactures can also set up an agency for Italy, which can be
found through the USARCI (http://www.usarci.it).
Big retail chains like the Coin Group and the Rinascente Group buy directly from local producers
but also import by themselves.
http://www.rinascente.it ; http://www.gruppocoin.it ; http://www.postalmarket.it ;
http://www.giacomellisport.com ; http://www.sport2000.it
7.2.4 France
The major development in French clothing retail in the period under review was the growth in sales
of clothing multiples at the expense of mainly independent retailers. Department stores and home
shopping companies improved their strong positions, too. Clothing products are distributed in
France by approx. 37,500 outlets of which two thirds are owned by independent retailers, which
have less than 5 active outlets. With the exception of the sports goods branch (8,000 outlets), the
number of important buying organisations is limited. Buying groups represent less than 5 percent
of the specialised independents. Most are sport-specialised stores, like Intersport (465 outlets in
France), Groupe Go (311 outlets under the formula, Courir, Go Sport and Moviesport) and Sport
2000 (411 outlets), ski equipments specialists like Groupe SED (formula Twinner-Technicien du
Sport 236 outlets), but also outerwear specialists like Vêtimarché, Leclerc Vêtements and Letard
Desagne-Kiplay. Buying and selling groups in the sports sector compete directly with the chain
Decathlon (220 outlets). The intensive competition led to a merger of Groupe SED and Sport 2000
in 2004. There are many franchise organisations, in particular in the women’s and children’s wear
market, like Kookai (440 outlets in 40 countries, of which 140 in France), Caroll (280 outlets),
Benetton, Phildar and Alain Manoukian.
Table 7.8
Market shares of retail distribution of clothing in France, 2000-2004
(in value, in %)
2000
2002
2004
Specialists
58
59
58
24
23
21
34
36
37
Non-specialists
42
41
42
- Department and variety stores
6
6
7
16
16
15
8
8
9
- Sports shops
5
5
6
- Other channels
7
6
5
Total
100
100
100
Sources: Journal de Textile and IFM-CTCOE
84
The market share of independent specialised retailers decreased in the period under review in
favour of clothing multiples. There are almost 400 chains active, operating with more than
13,000 outlets. The big number of specialists chains indicates that the French market is less
concentrated than, for instance, the UK market.
Important French groups are Vivarte (including the franchise chains Kookai and Caroll besides
several footwear multiples and chains mentioned in table 7.9), Auchan/Mulliez, Etam, Groupe
Beaumanoir and Promod. These groups are also active in many European countries.
Only three out of the top ten clothing specialists in France are companies from abroad - C&A
(from The Netherlands), H&M (from Sweden) and Zara (from Spain). Other foreign companies
are Cortefiel and Mango (both from Spain), M&S Mode (from The Netherlands), Mim (partly
from the UK) and Gap (from the USA).
Table 7.9
Major specialised clothing and sports chains in France, 2004-2005
Retail chain
Parent company
C&A
Hennes & Mauritz
Kiabi
La Halle aux Vêtements
Vêtimarché
Eurodif
Zara
Armand Thierry
Promod
Camaïeu Femme
Etam
1.2.3
Pimkie
Mim
M&S
Xanaka
Cache Cache
Patrice Bréal
Brice
Jules
Z
Catimini
Okaïde
Jacadi
La Halle aux Vêtements
Prenatal
Natalys
Décathlon
C&A (Netherlands)
Auchan Mulliez
Vivarte
ITM Intermarché
Eurodif UOCR
Inditex (Spain)
Ecce
Promod
Cime-Camaïeu
Etam Developpement
Etam Developpement
Auchan Mulliez
New Look (UK) 50%
Vendex/KBB (Netherlands)
Auchan Mulliez
Groupe Beaumanoir
Groupe Beaumanoir
Brice
Auchan Mulliez
Groupe Zannier
Groupe Zannier
Okaïde
Jacadi
Vivarte
Prenatal
Natalys
Auchan
Sector
General clothing
General clothing
General clothing
General clothing
General clothing
General clothing
Women’s wear
Women’s wear
Women’s wear
Women’s wear
Women’s wear
Young women’s wear
Women’s wear
Women’s wear
Young women’s wear
Women’s wear
Men’s wear
Men’s wear
Children’s wear
Children’s wear
Children’s wear
Children’s wear
Children’s wear
Baby/maternity wear
Baby/maternity wear
Sportswear
Number
of outlets
74
68
81
300
163
91
83
200
370*)
373
647
190*)
258
210
138
74
300
120
211
198
270*)
95
250
400
50
96
200
220
*) including outlets abroad
Not mentioned in this list are the full or partly franchise companies as mentioned above.
Groupe Zannier dominates the children’s market but will meet more competition as a result of
the merger of Okaïde and Jacadi in February 2005.
Major department store chains in France are Galerie Lafayette (66 stores) and Printemps (17)
owned by PPR (Pinault-Printemps-Redoute). The major variety store is Monoprix (287 stores).
Home shopping: La Redoute is the leading mail-order and home-shopping brand in France,
followed by Les Trois Suisses; both operate internationally. La Redoute owned by Pinault Printemps
Redoute (PPR) is market leader in clothing sales by home shopping companies, but also covers
stores. Les Trois Suisses is owned by the German Otto Versand. Other participants in this market
are: Camif and Quelle.
Major hyper- and supermarket chains include:
• Carrefour, in total 6,067 outlets of which 1,448 in France with the fascias Carrefour,
Champion, etc.;
• ITM, 2,679 outlets in France with the hyper- and supermarket formula Intermarché;
85
•
•
Leclerc 370 hypermarkets and 130 supermarkets;
Casino, in total 7,258 outlets, of which 6,689 in France with formula Géant, Casino, Petit
Casino, Franprix and Monoprix;
• Auchan, in total 939 outlets of which 386 in France with the fascias Auchan and Atac;
• Systeme U, 854 outlets.
The German chains Metro (80, cash and carry), Lidl (1,050) and Aldi (590) also operate on the
French market just like the Belgian Louis Delhaize group with Cora (215).
Import trading companies play an important role in the distribution of clothing in France.
Importers often work with regional wholesalers and agents to achieve national coverage.
Distribution in France is strongly centralised in so-called “centrals d’achats” and for that reason
manufacturers from abroad often work with sales agents.
The website http://www.mandelnet.com gives an overview of French and other suppliers of
several sectors including clothing, fabrics, subcontracting etc. in the French and English
language and on http://textile.firmafrance.com 340 records matched <clothing>.
http://www.etamdeveloppement.com ; http://www.jules.fr ; http://www.brice.fr ;
http://www.groupe-vivarte.com ; http://www.kiabi.com ; http://www.armandthiery.fr ;
http://www.promod.com ; http://www.eurodif.com ; http://www.camaieu.fr ;
http://www.groupezannier.fr ; http://www.prenatal.com ; http://www.natalys.fr
http://www.groupe-casino.fr ; http://www.carrefour.com ; http://www.monoprix.fr ;
http://www.3suisses.fr ; http://www.camif.fr ; http://www.auchan.com ; http://www.decathlon.fr
; http://www.groupegosport.com
7.2.5 Spain
Historically, the Spanish clothing market was dominated by small family-owned businesses,
which controlled two thirds of all clothing sales. However, the situation is changing due to the
development of large shopping centres, modern hypermarkets and the success and rapid
expansions of specialist multiple chains. Vertically integrated groups controlling both production
and distribution have played a key part in this development. There are four main vertically
integrated distribution groups in Spain: Inditex, Cortefiel, Punto Group and Induyco. They
compete with multiple chains including franchise formula from abroad (like C&A, Hennes &
Mauritz, Prenatal, Pimkie, Promod and many other). Inditex operates with formula, like: Zara,
Pull & Bear, Massimi Dutti, Bershka, Brettos and Stradivarius; Cortefiel operates under its own
name and with, among others, the formula Springfield, Don Algodon; the Punto Group with
Mango and Induyco with Tintoretto, Sintesis and Amitié.
Table 7.10 Market shares of retail distribution of clothing in Spain, 2000-2004
(in % of value)
2000
2002
2004
Specialists
61
61
61
41
39
37
20
22
24
Non-specialists
39
39
39
14
14
14
12
12
13
- Sports shops
5
5
5
1
1
1
7
7
6
Total
100
100
100
Sources: Retail Monitor and Acotex
Specialised retailers dominate the Spanish clothing retail sector and account for a stable 61
percent of clothing sales, of which independent retailers account for a sharply decreasing
share of 37 percent in 2004. This decreasing but still important market share of independent
retailers was realised by around 43,000 companies. Important buying organisations are mainly
86
active in sports goods and include Intersport and Sport 2000. They compete, among others,
with the French sport chain Decathlon.
Each year, small independent multi-brand stores steadily lose market share to other more
dynamic retail channels, like specialised clothing chains, and this trend will continue because of
their limited capabilities to respond quickly to changing trends.
Table 7.11
Major specialised clothing chains in Spain, 2004/2005
Retailer
Parent company
Sector
Zara
C&A
Hennes & Mauritz
Pull & Bear
Massimi Dutti
Adolfo Dominguez
Bershka
Stradivarius
Mango
Cortefiel
Promod
Amitié
Sintesis
Tintoretto
Pimkie
Springfield
Kiddy’s Class
Prenatal
Intersport
Sport 2000
Decathlon
Inditex
C&A (Netherlands)
Inditex
Inditex
Adolfo Dominguez
Inditex
Inditex
Mango Holding
Cortefiel
Promod (France)
Induyco
Induyco
Induyco
Cortefiel
Inditex
Prenatal (Italy)
Intersport (Switzerland)
Sport 2000
Auchan (France)
General clothing
General clothing
General clothing
Women’s wear
Women’s wear
Women’s wear
Women’s wear
Women’s wear
Women’s wear
Women’s wear
Women’s wear
Women’s wear
Men’s wear
Children’s wear
Baby/maternity wear
Sportswear
Sportswear
Sportswear
Number
of outlets
241
35
44
257
202
302*)
194
188
226
118
51
84
85
51
53
249
114
102
321
200
44
*) including outlets abroad
Not mentioned in this list are (full or partly franchise) companies like Benetton, Alain
Manoukian, Escorpion and Pronovias (bridal wear).
The sector department stores in Spain is dominated by El Corte Ingles (80 stores in Spain and
Portugal), especially after its takeover of Galeria Preciados. In 2003, the variety stores of Marks
& Spencer (UK) were sold to El Corte Ingles.
Home shopping activities are relatively weak in Spain. The major German and French players
are present in Spain but their progress has been slow. Spanish leading mail-order companies
with sales in clothing besides general goods are Venca (part of Otto Versand), Distribucion
Quelle and La Redoute Catalogue.
Hyper- and supermarkets grew in number, as did textiles sales by these channels.
Major national hypermarket chains are: Hipercor (part of El Corte Ingles Group) and Eroski;
Major international hypermarket chains: Hiperdino (part of Ahold), Alcampo (part of Auchan)
and Carrefour (121 stores, including former Continente and Pryca).
Major national supermarket chains are: Supercor (part of El Corte Ingles Group), Consum (part
of Eroski group), Comptin, Superbravo, Supermercados ALVI, Supercomprin and Unico (IFA
group)
Major international supermarket chains: Supersol (part of Ahold), Sabeco (part of Auchan),
Champion (part of Carrefour), Aldi, Lidl and Spar.
The important role of independent specialist stores and specific business practices, like terms of
payment, makes the intermediation of an agent or wholesaler necessary for effective clothing
distribution in the Spanish market. Wholesalers play an important role in imports and distribution, accounting for approx. 40-50 percent of the purchases of independent retailers. Manufacturers of branded garments sell directly to retailers or indirectly through agents.
87
Information about Spanish wholesalers cannot be found on a specific website. Possibilities
include searching for general websites as mentioned in appendix 3.6 or through
http://www.apparelsearch.com
Websites of Spanish companies mentioned above:
http://www.inditex.com ; http://www.mango.com ; http://www.elcorteingles.es ;
http://www.induyco.es ; http://www.adolfo-dominguez.com ; http://www.grupocortefiel.com
The holding Vendex/KBB is the largest non-food retailer in this country, including the department
stores Vroom & Dreesman and Bijenkorf and variety store Hema. These three chains have a
market share in garment sales of almost 10 percent. The number of fashion-specialised multiples
of Vendex/KBB is limited to M&S Mode (women’s wear), Claudia Sträter (women’s wear) and
Hunkemöller (body wear).
Many Netherlands retail organisations have set up chains abroad: M&S operates with 286 stores
in France, Germany, Belgium and Spain, We Men/Women and Cool Cat are other examples of
international-oriented chains, just like variety chain Hema and textile discounters Zeeman and
Wibra.
There is an increasing number of outlets, mainly from clothing multiples including strongly
expanding chains from abroad like Hennes & Mauritz from Sweden, Vögele Mode from
Switzerland, Zara from Spain.
Among the independent specialised retailers, there is an increasing concentration of smaller
independent speciality shops in (small) chains or selling formula, initiated by buying organisations
or franchise formula.
Increased competition on retail level in combination with reduced consumer expenditure,
caused by a weak economic climate, has led to a fall in clothing expenditure. This benefitted
market shares for non-specialised retailers, like textile supermarkets and supermarkets as well
as specialised clothing multiples in the last three years.
Table 7.12
Market shares for outerwear by type of retailers in The Netherlands, 2000-2004
(in % of value)
2000
2002
2004
Specialists
64
63
62
32
31
29
Clothing multiples
32
32
33
Non-specialists
36
37
38
Department and variety stores
11
11
10
Textile supermarkets
4
4
5
Sports speciality stores
4
5
5
Home shopping companies
4
5
5
Super- and hypermarkets
1
2
2
Street markets
3
2
2
Other
9
8
9
Total
100
100
100
Sources: Retail Monitor and CBS
In The Netherlands, there are around 10,750 outlets in the outerwear sector exploited by 6,400
companies, of which 60 percent can be classified as independent retailers. 40-50 percent of
Netherlands independent retailers are organised in central buying organisations and, to a much
lesser degree, franchise organisations. The main operations of independent retailers lie in the
middle and upper sections of the market.
The leading buying organisations are Intres and Euretco. Intres has the following formula:
selling formula First Lady (50 women’s wear outlets) and First Man (19 men’s wear outlets),
buying formula Alpha (69 men’s wear outlets), Ladies Department (26 women’s wear outlets),
Optimus (24 outlets) and Forum (66 outlets). The sport division of Intres covers Intersport (111
outlets), Coach (46 outlets) and Gos Sport (independents operating under own name via 120
stores). Totally, 780 independent retailers are member of Intres.
88
Euretco Fashion was the owner of several clothing multiples, besides the buying activities for
members/retailers, like Adams, Witteveen, Bemore and Jeans Centre. However, in 2005, Euretco
changed its strategy, sold these formula and now concentrates itself on the buying actuivities for
its members in the fashion branch. The Sport division of Euretco includes Sportpoint (55 outlets)
and Sport 2000 (82 outlets).
Another organisation is Deco, operating with 130 outlets of 80 members in the men’s wear,
jeans and sports wear sectors.
Clothing multiples
C&A sells clothing for the whole family and operates mainly in the middle of the market, but is
also active in both the upper and the lower price brackets. Market shares of C&A Nederland
have decreased sharply since the entrance and expansion of foreign concerns like Hennes &
Mauritz and Vögele. The retail market for women’s outerwear has many players, while the
number of chains in the babies’ and children’s wear sector is very limited. The following
overview gives the important chains, operating in the mid and lower market segments in The
Netherlands.
Table 7.13
Major specialised clothing and sports chains in The Netherlands, 2005
Retail chain
Parent company
Sector
C&A
Hennes & Mauritz
Vögele
Duthler
We Men/Women
Shoeby Fasion
Adam
Didi Fashion
M&S Mode
Miss Etam
Promiss
Pulls
SPS (Superstar)
Witteveen
Wonder Woman
Cool Cat
Vet
Jeans Centre
Jilly & Mitch
Prenatal
Perry Sport
Aktie Sport
Bever Zwerfsport
C&A
Charles Vögele (Switzerland)
Brova
WE Europe
Shoeby
Mc Gregor Fashion Group
Coltex
Vendex/KBB
Etam Groep
Etam Groep
Van der Wijk
Coltex
Witteveen
Cool Cat Fashion
Cool Cat Fashion
Coltex
Jeans Centre
Shoeby
CVC
CVC
Bron Beheer
Bever Zwerfsport
General clothing
General clothing
General clothing
General clothing
Men’s wear
Women’s wear
Women’s wear
Women’s wear
Women’s wear
Women’s wear
Women’s wear
Women’s wear
Women’s wear
Young fashion
Leisure wear
Leisure wear
Children’s wear
Babies’ and maternity wear
Sportswear
Sportswear
Outdoor sportswear
Number
of outlets
107
69
118
26
160
86
50
101
131
126
58
31
66
75
31
77
70
87
86
83
41
101
27
There are two department stores of importance, Vroom & Dreesman and De Bijenkorf. Both are
part of Vendex/KBB and both sell outerwear. De Bijenkorf has 13 stores and stocks high quality,
stylish and appropriately priced products. De Bijenkorf cooperates with foreign department stores,
like Breuninger (Germany), Globus (Switzerland), Magazin du Nord (Denmark) and Stockmann
(Finland). V&D operates in the middle of the market with 67 outlets of different sizes.
The variety store Hema (Vendex/KBB) has 305 sales outlets, of which 34 in Belgium and 3 in
Germany. The Hema is market leader, among others in baby clothing. All articles are sold under a
private label (Hema).
Due to the extended network of retail shops in The Netherlands, home shopping has a much
lower market share than most other EU countries. Mail-order houses operate via catalogues and
Internet and in some cases teleshopping, mainly in the middle ranges as regards price, quality and
fashion. The most important companies are Wehkamp, Otto Nederland (part of Otto Versand from
Germany), Neckermann Postorders, Quelle, Peter Hahn (all part of the German Karstadt/Quelle)
and La Redoute (from France).
89
Important discount chains in textiles (often indicated as textile supermarkets) are Zeeman
Textielsupers (in total 915 outlets, of which 468 in The Netherlands, 246 in Germany, 170 in
Belgium and 26 in France), Wibra (225 outlets: 162 in The Netherlands and 63 in Belgium), Hans
Textiel & Mode (180 outlets) and Bentex (42 outlets). Most products under review in this survey
are part of the assortment of the above-mentioned textile discounters. Discounters, which
originally only sold footwear like Scapino (200), Bristol (125), have expanded their assortment to
include outerwear, sportswear and bodywear. This example has been followed by other footwear
discounters, like Schoenenreus (197).
The main activities of grocery supermarkets are in the provisions sector, however, super- and
hypermarkets have (mainly low-priced) clothing incidentally in their assortment. Supermarket
chains are Albert Heijn, Aldi, Vomar, Lidl and Edah, of which the market shares of the German
originated Aldi (strongly expanded to 391 outlets in The Netherlands) and Lidl (194 outlets) are
highest.
Part of the category ‘Other’ is taken by the Makro (part of the German Metro Group), a
wholesaler with retail activities, but which also includes street markets and factory outlets.
Companies in this category (with the exception of the Makro) are not themselves involved in
importing.
About 3,000 wholesalers, of which 900 are of no mean importance, are active in imports in The
Netherlands in the clothing sector. A part of them is member of the FTGB (textiles wholesalers
association); information about them can be found on http://www.nvg.nl while another part can
be found on the website of the NVKT (agents and importers of clothing and textiles) on
http://www.nvkt.nl
Websites of Netherlands companies mentioned above:
http://www.euretco.nl ; http://www.intres.nl ; http://www.vendexkbb.nl ;
http://www.c-and-a.com ; http://www.duthler.com ; http://www.wefashion.com ;
http://www.witteveen-mode.com ; http://www.coolcat.nl ; http://www.adam.nl ;
http://etamgroup.com ; http://www.coltex.nl ; http://www.pulls.nl ; http://www.zeeman.com
http://www.hanstextiel.nl ; http://www.wibra.nl ; http://www.bentex.nl ;
http://www.scapino.nl ; http://www.bristolonline.nl ; http://www.schoenenreus.nl ;
http://www.perrysport.nl ; http://www.aktiesport.nl ; http://www.prenatal.nl ;
7.2.7 Belgium
Belgium is the smallest retail market for outerwear (after The Netherlands) of the seven major
EU countries as discussed in this survey in terms of consumer expenditure. In terms of sales per
inhabitant, on the other hand, the Belgian figure is among the highest in the EU.
The influence of foreign countries is important in the distribution on retail level, for example:
clothing multiples like C&A, H&M, Zara, Etam M&S Mode, We (a detailed overview is given
below), discounters like Zeeman and Wibra, variety store Hema and supermarkets like Aldi and
Lidl.
Table 7.14
Market shares of retail distribution of clothing in Belgium, 2000-2004
(in % of value)
2000
2002
2004
Specialists
72
71
69
27
28
28
45
43
40
Non-specialists
- Sports shops
- Textile discounters
- Other
Total
28
5
3
4
6
3
7
100
29
6
3
4
6
3
7
100
31
6
3
5
7
4
6
100
90
In 2004, about 9,400 clothing shops were active in Belgium, of which 63 percent in Flanders.
Specialised retailers dominate the Belgian clothing retail sector and account for almost 70
percent of clothing sales, of which independent retailers account for almost 40 percent. The
market share of specialised retailers was realised by around 9,400 retail outlets.
Table 7.15
Major specialised clothing multiples in Belgium, 2005
Retail chain
Parent company
Sector
C&A
H&M
JBC
Zara
Damart
Mexx
Promo Fashion
DOD
Pecotex
Vögele
E-5 Mode
WE Men
WE Women
M&S Mode
Etam
Cassis
Mango
Lola & Liza
Springfields
Promod
C&A (Netherlands)
JBC NV (Belgium)
Inditex (Spain)
Damart T.S.D. (France)
Liz Clayborne (USA)
Fabrimode NV
DOD NV
Pecotex Mode NV
Charles Vögele (Switzerland)
SCF
WE Group (Netherlands
WE Group (Netherlands
Vendex KBB (Netherlands)
Etam Group (France)
MG Finance
Punto Group (Spain)
Blue Stores NV
Cortefiel (Spain)
Promod (France)
General clothing
General clothing
General clothing
General clothing
General clothing
General clothing
General clothing
General clothing
General clothing
General clothing
General clothing
Men’s wear
Women’s wear
Women’s wear
Women’s wear
Women’s wear
Women’s wear
Women’s wear
Women’s wear
Women’s wear
Number
of outlets
83
47
90
19
41
47
44
15
20
25
63
27
20
63
54
45
14
25
21
11
The growth of the market share of the specialized chains is important and to the detriment of
independent retailers. Another specialized channel of distribution for clothing is the independent
retailers (with less than five stores) and a decreasing market share in outerwear.
Influences from abroad will be expanded further by activities by, among others, Witteveen,
Perry Sport, Aktie Sport from The Netherlands and the Spanish Cortefiel, all of which have
opened one or more pilot shops in Belgium.
In September 2004, 35 Marca stores were changed into C&A stores and totalled 74 outlets.
Superconfex (Belgian market leader in the 90’s) operated in 2004 with a remaining 44 stores, of
which 20 were sold to C&A in 2005, negotiations about the other 24 are going on with JBC, E-5
Mode and Vogele.
Except in the sports branch, there are no important buying groups active in the Belgian
clothing sector. In the sports sector, a part of the independent sport shops has joined a
buying group, of which the most important are: Intersport with 30 stores and United Brands
(Sport 2000) with 14 stores, Decathlon (5) and Go Sport (8). Other sport chains are: Primo
(36) and A.S. Adventure (11).
The leading department store is Inno (15 stores, and part of the German Kaufhof). An important
variety store is Hema from The Netherlands with 34 stores.
Dominant hyper- and supermarkets in Belgium are:
• Carrefour Belgium: sells textiles (since 2004 under the brand name TEX) in its 56 Carrefour
Hypermarkets, 77 GB Supermarkets and 361 franchise GB supermarkets.
• Delhaize Group operating with 728 stores under a variety of banners all over Europe.
Under the name Delhaize, 43 stores are active in Belgium.
• Colruyt operates with 170 outlets including clothing under the same name.
• Group Louis Delhaize is besides its international activities (Hungary, among others), active
in Belgium through Match supermarkets and Cora hypermarkets.
Textile discounters like Zeeman (170) and Wibra (63) operate in a lower (price/quality) segment.
Internationally operating home shopping organisations are La Redoute, Les 3 Suisses, Damart,
Neckermann, Quelle and Wehkamp.
91
Factory outlets, market stalls and wholesaler Makro (6 stores) are classified under ‘Other
outlets’ in table 7.14.
For women’s apparel there are 260 active wholesalers and manufacturers, 59 men’s apparel
wholesalers and 54 for children and youth apparel. In addition several brand-agencies are
expanding their activities to different branches, especially in the case of distributors of jeans and
sportswear. A list of wholesalers in clothing can be found on http://www.modenet.be search for
‘groothandel kleding’ , which results in 1,639 hits.
Websites of Belgian companies mentioned above:
http://www.jbc.be ; http://www.damart.com ; http://www.inno.be ; http://www.cassis.be
http://www.promofashion.be ; http://www.dod.be ; http://www.pecotex.be ;
http://bluestores.be ; http://www.e5-mode.be ; http://www.primo.be ;
http://www.delhaizegroup.com ;http://www.colruyt.be ; http://www.delhaize.be ;
7.3 Distribution channels for developing country exporters
The EU apparel market is complex and sophisticated. Major apparel brands from EU countries
(Italy, Germany, France, UK) compete in the high-price segments (including premiere collections
and more affordable brands) with famous American names. Cheap, mass-produced items from lowcost regions such as China, South Asia, North Africa and East European countries compete in the
low-price segments. The movement away from cheap products (with low relation to fashion and
comfort) to mid-price segments, including products of higher quality and more individual clothes,
offer interesting possibilities to exporters. In this segment, European as well as foreign retailers
(clothing chains, buying and selling organisations, mail-order companies, department stores)
operate with their own private labels, sometimes combined with branded products (for an
increasing part sourced outside the EU) as well as with non-branded or fancy branded items. A
polarisation of brand leadership also appears likely in Europe. Retailers in Germany, UK, France
and other EU countries are clearly aiming to replace manufacturer brands with their own identities
in the middle market, leaving the upper market to designer brands.
The opportunities for developing country exporters to chose their distribution channels depends on
external (demand and requirements of importers/buyers) and internal factors. The latter will be
discussed in part B of this survey. The foreign strategies of EU manufacturers are discussed in
chapter 4.
Wholesalers
By buying on his own account, the importer/wholesaler takes title to the goods and is
responsible for their further sale and distribution in his country and/or in other EU markets. He
is familiar with local markets and can supply considerable information and guidance to the
exporter, in addition to the primary business of buying and selling, such as administration of
import/export procedures and holding of stock. The development of a successful working
relationship between exporting manufacturer in developing countries and importing/wholesaler
or importer can lead to a high level of co-operation with regard to appropriate designs for the
market, new trends, use of materials and quality requirements.
Retail organisations
Buyers at clothing multiples, home shopping companies and variety stores, which have mainly
or exclusively private labels in their assortment, divide their budgets between the purchase of
finished products via direct imports (sourcing ready-made products) from low-wage countries
and sourcing from own design.
Home shopping companies are keener than other retail distributors about re-order facility. They
will want to start with small orders to test the market and make a firm, but not final, bulk
commitment a few months later. If an item sells, they expect subsequent supply of maybe
three times that number at short notice, simply because the catalogue cannot on any account
disappoint the customer by saying ‘sold out’.
92
Many major retail organisations use buying agents or set up their own buying organisations in
low labour-cost countries. This means that retailers are able to bypass domestic wholesalers
and/or manufacturers and can reduce costs.
A difference has to be made in the segments distinguished: super- and hypermarket chains,
textile and other discounters operate mainly at the lower end of the market, so the lowest
purchasing prices are the main buying criteria. Generally spoken, variety stores and clothing
multiples are interested in more criteria than price, like service by the producer, technological
capacity, quick response etc.
Unorganised independent retailers, with decreasing but still important market shares in most of
the EU countries, buy directly from local or near-by manufacturers or agents representing these
manufacturers, as well as from wholesalers/importers. These retailers do not import by
themselves and are therefore not interesting for developing country exporters. Many
independent retailers are organised via franchise, selling formula or buying groups. These
organisations, including their buying policy, can be considered as multiple stores or chains. The
original function of the buying groups was reduction in costs by centralising of buying and
logistics. More and more selling formula for the members have been developed and the
successful ones have been exploited as franchising activities. In particular in Germany and The
Netherlands, buying groups play a significant role for specialised independent retailers, while
franchising is more important in France, Italy and Spain.
Agents
Agents are intermediaries between manufacturer and retailer, receiving a commission from the
former. Capital requirements are limited because this cooperation is based upon commission;
however, agents mainly work with brand names and are therefore less interesting for most
exporters in developing countries.
93
8
PRICES
8.1
Price developments
The market is intensively competitive and prices vary widely according to the product and type
of outlet. A rough indication of differences in price levels by types of outlets has been given in
chapter 3. An example of differences per product is for instance: the price of a Levi 501 jeans
varies from € 60-100, of which black is € 60, most types (stonewash, light broken in and one
wash) are € 80 and skimmer is € 100 (source: Wehkamp).
Below, an overview is given of (average) retail prices in The Netherlands. Retail prices include
Value Added Tax/VAT (19%) and are given for summer 2005.
Table 8.1 Average retail prices for major clothing items in The Netherlands, summer 2005
Price in
€
37
Jeans
Other cotton
trousers
33
Pullovers, sweaters
etc.
29
T-shirts
7
Men’s woven shirt
(long sleeves)
24
Remarks
Prices vary from € 10-18 in textile discounters; from € 15-30 for
private labels; from € 25-50 for cheap brands; from € 50-100 for
leading brands and € 90 and more for designer brands
Average prices vary from € 12 in textile discounters, to € 26 for private
labels, to € 35 for cheap brands and € 60 for leading brands and
higher for designer brands
Prices vary from € 10 in textile discounters, € 20 for private labels, to €
40 for cheap brands and € 60 for leading brands and even higher for
designer brands
Uni-colour of reasonable quality cotton. Average prices for all T-shirts
vary from € 4 in discounters to € 8 for private labels and € 16 in
speciality stores. Prices for leading brands (incl. logo) start from € 18.
Prices vary from € 9 in textile discounters, to € 19 for private labels, to
€ 32 for cheap brands and € 50 for leading brands and even higher for
designer brands
Price is an important selling factor, especially in the lower segments of the clothing market,
whereas in the higher segments (higher added value) factors like quality and fashion are more
important than price. In the lower segments of the clothing market, retailers have little room to
manipulate prices because competition is very fierce and margins are low.
Table 8.2
Average (medium) retail prices for major leather clothing items in The Netherlands,
2005
Women’s leather garments
Nappa leather
- jacket (bikers style, length 56 cm)
- jacket (blazer model, length 62 cm)
- Pigsplit suede
-- jacket (length 56 cm)
-- lammy coat (length 86 cm)
-- blazer (length 55 cm)
-- blazer (length 62 cm)
Men’s leather garments
- Nappa leather
-- ¾ coat (length 83 cm)
-- Jacket (bomber style, length 69 cm)
- Pigsplit suede
-- jacket (lammy look, length 70 cm)
-- jacket (blazer model, length 75 cm
Prices varying from:
Colours
€ 130 (size 38-48)
€ 90 (size 36-40) – 95 (size 48-54)
Black
Brown, cognac and black
€ 90 (size 36-40) – 95 (size 42-46)
Beige, brown
€ 100 (size 36-40) – 110 (size 42-46) Natural
€ 100 (size 42-48) – 105 (size 50-56) 4 colours, f. inst. orange,
aqua, olive green, brown
€ 69 (size 36-40) – 74 (size 42-46)
5 colours, f. inst. petrol,
green, rose
€ 130 (size 44-46) – 150 (size 56-58) Brown and black
€ 130 (size 44-46) – 150 (size 56-58) Black, antique look
€ 60 (size 40-42) – 70 (size 56-58)
Natural
€ 110 (size 40-42) –`115(size 56-58) Brown, cognac and black
94
Eurostat published price level indices (PLI), calculated as the ratio between purchasing power
parities and exchange rates for each EU-25 country, in relation to the EU average. For example
the PLI for clothing goods is 12 percent above the EU average in Italy and 10 percent below the
EU average in the United Kingdom. Clothing goods are, therefore, in Italy about 24 percent
more expensive than in the UK (112/90=1.244).
Table 8.3
Comparative price level indices for clothing in 2003, EU-25=100
Clothing
Germany
United Kingdom
Italy
France
Spain
The Netherlands
Belgium
Poland
Czech Republic
Hungary
106
90
112
94
100
85
107
76
104
85
Women’s
wear
105
91
112
95
100
84
105
74
105
89
Men’s
wear
107
91
111
89
94
86
107
82
112
83
Children’s
wear
109
86
119
99
117
88
116
73
101
86
Source: Eurostat Statistics in focus 13/2005
8.2 Sources of price information
A good way to obtain information about prices and price levels in the EU is by visiting one of the
major trade fairs or trade centres. Prices charged by competitors can be found by browsing their
Internet sites or looking for general sites like http://www.globalsources.com or
http://www.alibaba.com
Window-shopping in the prospective market place, at several retail shops is another good way of
obtaining information about prices at retail or consumer level, but also about fashion, colours and
qualities.
Alternatively, an impression of average prices in EU countries can be formed by browsing through
the catalogues of home shopping companies on Internet (for addresses see chapter 7 and
appendix 3.2). Comparisons can also be found in the prices given in catalogues from large
department stores or from company web sites.
95
9
EU MARKET ACCESS REQUIREMENTS
9.1
Quality and standards for outerwear
There is no EU quality standard for outerwear, sportswear and clothing accessories. Most of the
importers (manufacturers, wholesalers, retail organisations etc.) work with certain minimum
requirements. In this respect they have formulated and stipulated minimum quality
requirements, relating to both materials and make. The technical committee of the European
Clothing Association (ECLA) published an example of recommendations concerning characteristics
and faults in woven and knitted fabrics to be used for clothing, in which a distinction is made
between:
• recommendations limited to the characteristics of fabrics, which are detectable, by an
experienced person with or without the aid of instruments in general use. A fault is
considered if the irregularity is evident in the fabrics as delivered or is detrimental to the
final garment;
• recommendations limited to the characteristics of fabrics, which can only be detected with
the aid of suitable equipment. Each characteristic described comprises: definition, method
of testing and minimum quality standards and as far it occurs: possible allowable
tolerances compared with the values of the sample and eventual commercial implications.
Methods of testing fabrics and/or garments are mainly based on ISO standards and otherwise
on European norms (EN) or national standards (DIN, NEN or BS, respectively for Germany, The
Netherlands and UK), like:
• care labelling (ISO 3758);
• dimensional stability aspects, like steaming (DIN 53894), fusing (DIN 54311),
washing/tumbling (ISO 3759, 5077 and 6330), dry cleaning (ISO 3175);
• mechanical and physical properties like tensile strength strip (ISO 5081), tensile
strength grab (ISO 5082), tear strength (ISO 9290), seam slippage (BS 3320), abrasion
resistance (EN 22313), crease tendency/recovery (ISO 9867), pilling tendency (BS
5811), fibre penetration (SIS 650047), spray test (EN 24920) etc.;
• colour fastness to several aspects like washing, light, water etc. (ISO 105).
Despite EU harmonisation, which enables free trade between EU member states, individual
markets have different requirements regarding garment types, sizes, colours etc.
9.2
Non-tariff trade barriers
The following paragraphs, concerning EU market access requirements include product legislation
and non-legislative market requirements. Requirements are based on environmental, consumer
health and safety and social issues. This information, is focused on the EU and has been derived
from AccessGuide, CBI’s on-line database on non-tariff trade barriers at
http://www.cbi.nl/accessguide .
9.2.1 Product legislation
EU product legislation on environmental and consumer health and safety issues in the textiles
trade is compulsory, therefore of utmost importance. In AccessGuide you will find an analysis of
all necessary EU requirements, applicable in all EU member states, including:
azo dyes for colouring textiles; certain azo dyes splitting off carcinogenic amines therefore
dangerous for health and environment;
nickel used in accessories, like buttons and zips, may caused allergies;
cadmium used for colours in printed textiles, may be dangerous to health and environment.
In addition, legislative requirements in Germany (azo dyes, formaldehyde, PCP, chromium,
disperse dyes, dioxins and furans) and The Netherlands (azo dyes, formaldehyde in textiles with
skin contact, PCP) are outlined when they are additional to EU legislation. These two countries
are chosen, because they are relatively pro-active in their legislation. Please note this does not
imply that there is no additional relevant legislation in other EU countries.
96
Most of the EU legislation mentioned is directly applicable to foreign firms supplying products to
a European country, for instance through their own foreign sales outlet. However, products are
often put on the market indirectly, through importers. In most cases this makes the importer
responsible for the product. Importers might therefore encourage or even force foreign
suppliers to meet certain standards, for example through legally binding guarantees.
9.2.2 Market requirements
These requirements can be classified into labels, codes and management systems.
Besides legal requirements, producers are being confronted with additional requirements. EU
buyers want more information from producers, for example about the social conditions at their
production sites or environmentally sound production. Although the requirements in this field do
not make part of official legislation and have no legal basis, it is recommended to take them
into account in order to be competitive. If a manufacturer wants to indicate to external parties
that he is manufacturing in an environmentally sound way, he can comply with standards which
have been developed for this purpose. A voluntary standard, with which manufacturers can
comply, is called the ISO 14000 series. The most important standard in this series is ISO
14001, which sets the requirement for an environment management system.
Social market requirements
Besides legal requirements, imposed by their own governments, exporters might be confronted
with social requirements that are requested by EU buyers. More and more companies have laid
down minimum standards in so-called codes of conducts, or use labels and management
systems (especially the SA8000 management system is often used in the textile sector) to
guarantee fair labour conditions. These social requirements are gaining importance on European
markets and are becoming a precondition for international trade. The so-called social codes are
often corporate codes. In particular, the use of child labour in the production process is a
serious cause for concern in many EU countries. Widespread publicity has raised consumer
awareness of the issue and has had a negative impact on sales. Exporters who can guarantee
and prove that their products are made without child labour will not only have a competitive
advantage over other products, but will also have a better chance of establishing a long-term
business relationship. In addition, the EU has added a 'social clause' to the Generalised System
of Preferences (GSP), which allows for special import tariff reductions for products that are
produced in a humane way. In particular can be mentioned the fundamental ILO Conventions,
including freedom of association, abolition of forced labour, equality and the elimination of child
labour. You can find examples of sector specific buyers’ requirements in AccessGuide.
Environmental market requirements
There are many instruments such as labels, hallmarks, management systems and codes of
conduct representing different purposes, like environmental aspects used in the production
process, consumer information about environmental aspects and usage of environmental
management systems.
In the clothing and textile sector, there is a distinction between national eco-labels, the EU ecolabelling scheme and environmental labels of independent organizations. Some labels have a
small market impact, for instance eco-labels for organic textiles or national labelling schemes.
An important independent label with a growing market impact is the Öko-Tex 100 label (of the
Öko-Tex Association) based on environmental as well as health and safety aspects. The ÖkoTex 100 label is the best-known and most widely used label. The EU eco-label “Flower” was
established as a voluntary and consistent certification scheme across the whole EU and now coexists with the national eco-labels. There are more than twenty different product groups
including apparel. Examples of national eco-labels are among others: Milieukeur (The
Netherlands), Der Blaue Engel (Germany) and Aenor (Spain).
Environmental requirements in codes of conduct often exceed those contained in existing EU
labels.
Quality related market requirements
Quality management standards refer to company management. This is in contrast to most of
the other standards, labels and markings described, all of which relate to product or production
97
processes. Quality management standards are not compulsory for market entry into the EU,
however they can definitely contribute to the company’s image in the market.
The most important quality management system is ISO 9000, inspired by the concept of Total
Quality Management, TGM is a philosophy based on customer satisfaction and continuous
performance improvement. ISO established a policy committee, DEVCO, specifically to address
the needs of developing countries. See http://www.iso.org
9.2.3 Occupational health and safety
Standards and methods are developed because of the growing concern in Europe about the
local social conditions in which products are manufactured. Occupational health and safety, or
labour conditions, are an important issue when looking at the social standards that are more
and more required on EU markets.
The prime health and safety concern in the processing of textiles is the exposure to toxic
chemicals and physical hazards, such as accidents with machinery. Not only can the exposure to
toxic chemicals cause immediate and long-term health and safety problems at the production
site, negative publicity on health aspects or issues of labour conditions during production has
proved to have a high impact on sales. More information can be found in AccessGuide.
9.2.4 Environmentally sound production
The environmental impact of textile production is considerable. This impact starts with the use
of pesticides during the cultivation of plants from which natural fibres are obtained, the erosion
caused by sheep farming or the emissions during the production of synthetic fibres. From that
moment on, a number of processes is applied, using thousands of different chemicals.
Particularly issues related to water are highly relevant to the textile industry. Several measures
can be taken to reduce the environmental impact.
Much more information can be found in AccessGuide.
9.2.5 Packaging, size-marking and labelling
Packaging
Care must be given to the packaging of products if one intends to export to the EU countries. It is
obvious that the packaging must be travel-steady. As required, products should also be protected
against the elements, changes of temperature, rough handling and theft. Besides these basics of
travel- and handle-durability, some importers may have specific demands concerning packaging,
like information concerning the order printed on the boxes (order number, box number, name of
department or contact person etc.).
For environmental reasons, packaging made from materials like PVC etc. is less popular with
consumers and in some cases is or will be forbidden by government. Exporters in developing
countries should be prepared to discuss this issue with potential clients and should anticipate
building the cost of special packaging into their price, if required.
The European Directive on Packaging and Packaging Waste (94/62/EC) establishes overall
legislation for the treatment of packaging waste, consisting of quantitative objectives to be
achieved by each of the EU member states. The member states have the responsibility to
translate the Directive into national legislation.
It is becoming increasingly difficult and expensive to dispose of waste in Europe. In principle,
the importer is held responsible for disposal of the packaging waste for all goods from outside
the EU. It is therefore crucial, when planning exports to the EU, to take the packaging of your
products (both sales packaging and transport packaging) into consideration. To fulfil the
requirements of the target market, clear communication with the importer about packaging is
necessary.
In all cases, suppliers are advised to contact importers on the methods of packing preferred in
the country of import.
New legislation about wood packaging has recently been introduced. For more information we
refer to AccessGuide, while more detailed information about packaging techniques and the use
of packaging materials can be found on the website of ITC (http://www.intracen.org).
98
Size marking
The following body measurements are used: body length, chest, waist and hip size. These four
basic measurements determine the fitting of the garments. The following sizes are used in
Germany and The Netherlands:
Note that for all sizes the body length of women is 168 cm and for men 176 cm.
Size table for women's outerwear (body sizes) in cm:
character
sizes
XS
S
figure sizes
34
36
38
40
42
44
46
48
50
chest width
waist size
hip girth
80
61
86
84
64
90
88
68
94
92
72
98
96
76
102
100
81
106
104
86
110
110
91
114
116
97
118
M
L
XL
XXL
Size table for men's outerwear (body sizes), except trousers/jeans-see next tables in cm:
character
sizes
XS
figure sizes
42
44
46
48
50
52
54
56
58
60
chest width
84
88
92
96
100
104
108
112
116
120
S
M
L
XL
XXL
Size table for men's trousers (garment sizes) in cm:
figure sizes
40
41
42
43
44
45
46
47
48
49
waistband width
side length
68
100
68
108
72
102
72
110
76
104
76
111
80
104
80
112
84
106
84
112
figure sizes
50
51
52
53
54
55
56
58
60
62
waistband width
side length
88
106
88
113
92
108
92
114
97
108
97
114
102
111
108
111
114
111
120
111
In other EU countries, except the UK, the same figure sizes are used, but sizes are not equal.
For instance: Women’s figure size 36 in Germany and The Netherlands is indicated in France as
40 and in Italy 42.
As mentioned above, the UK uses a different system: Women’s figure size 36 in Germany and
The Netherlands is indicated in the UK as 8, 38 as 10 etc.
Jeans sizes
Jeans are sold internationally in inch-sizes. They are read as follows: the first number refers to the
girth of the waist and the second to the inside leg seam (inseam). Both are expressed in inches.
Conversion table for women’s sizes:
Inches
Sizes in:
Germany and The Netherlands
26
27
28
29
30
31
32
33
34
35
36
34
-
36
38
-
40
42
-
44
-
46
German men’s sizes are subdivided into three groups:
1. Standard sizes:
44
46
48
50
52
54
56
58
60
62
2. Large sizes (shorter than standard sizes and wider at the hip):
24
25
26
3. Slim sizes (longer than standard sizes and narrower)
84
86
88
90
94
98
102
106
In the table below, jeans sizes are compared with usual size marking for outerwear in Germany
and The Netherlands. WW (horizontal) means: waistband width in inches and SL (vertically)
means: side length (inseam) in inches.
99
Conversion table for men’s sizes:
WW
SL:
32
34
36
27
28
29
30
31
32
33
34
35
36
38
40
42
-
-
-
-
-
-
-
24
-
25
26
-
-
84
-
86
-
88
-
44
-
90
46
94
48
-
50
98
-
52
102
54
106
56
-
58
-
Size marking for babies’ and children’s wear
The following groups are those mainly distinguished:
years
0- 2
2- 6
6 - 12
12 - 14
14 - 16
groups
babies
Infants
toddlers
middle group/school
preteens
teenagers
For the purposes of the sizing of clothes, children are best grouped into infants (younger than
seven years), boys and girls. Infants also constitute a group of their own, because their
garments are usually not 'fit-critical'.
Infants’ wear (body sizes)
The Swedish 'Centilong' system based on height values is used in The Netherlands, just as in
some other European countries. The size range varies from 50-104 cm with an intersize of 6
cm. There is one standard for all these sizes and they can be ranked as follows:
Height (in cm)
50
56
62
68
74
80
86
92
98
104
Chest
Waist
Hips
Arm length
Inside leg length
40
40
41
18
16
42
42
43
20
19
44
44
45
22
22
46
46
47
24
25
48
48
49
26
28
50
49
51
28
31
52
50
53
30
34
54
51
55
32.3
37
55
52
57
34.6
40.6
56
53
59
36.9
44.2
Depending on the garment concerned, the following dimensions are used for boys’ and girls’
wear:
Boys' wear (body sizes) in cm.
Height
110
116
122
128
134
140
146
152
158
164
170
176
182
188
194
Chest
Waist
Hips
Arm length
Inside leg length
Neck girth
58.0
54.0
59.0
39.1
47.5
28.0
59.0 60.0
55.0 56.0
61.0 63.0
41.4 43.7
51.0 54.5
28.5 29.5
62.0
57.0
65.0
46.0
58.0
30.5
64.0
59.0
68.0
48.3
61.5
31.5
67.0
61.0
71.0
50.6
65.0
32.5
70.0
63.0
74.0
52.5
68.0
33.5
73.0
65.0
77.0
55.3
71.0
34.5
77.0
68.0
81.0
57.5
74.0
35.5
81.0
71.0
85.0
60.0
77.0
36.5
85.0
74.0
89.0
62.5
80.0
37.5
88.0
77.0
92.0
65.0
83.0
38.0
91.0
80.0
95.0
67.0
86.0
38.5
94.0
97.0
83.0
86.0
98.0 101.0
69.0
71.0
89.0
92.0
39.0
39.5
Girls' wear (body sizes) in cm.
Height
110
116
122
128
134
140
146
152
158
164
170
176
182
188
Chest
Waist
Hips
Arm length
Inside leg length
Neck girth
58.0
54.0
61.0
39.1
47.5
28.0
59.0 60.0
55.0 56.0
63.0 65.0
41.4 43.7
51.0 55.0
28.5 29.0
62.0
57.0
67.0
46.0
59.0
29.5
64.0
59.0
70.0
48.3
63.0
30.0
67.0
61.0
73.0
50.6
67.0
30.7
71.0
63.0
77.0
52.8
70.0
31.5
75.0
65.0
81.0
55.0
72.5
32.2
79.0
67.0
85.0
57.3
75.0
33.3
83.0
69.0
89.0
59.5
77.5
33.7
86.0
71.0
93.0
61.5
80.0
34.5
89.0
73.0
96.0
63.5
82.5
35.5
92.0
75.0
99.0
65.5
85.0
36.5
95.0
77.0
102.0
67.5
87.5
37.5
Shirts and blouses
Sizes for men’s shirts are based on neck girth in cm or inches and vary respectively from 37-48
and from 15-19 and can be extended with other measurements, of which arm length is the
most important. The sizes XS-XXL are also used for leisure or sport shirts, whether or not in
combination with the usual shirt size. For women and children’s wear, the standard outerwear
sizes are used.
100
Gloves
Gloves are the only clothing item for which there has been a reasonably consistent sizing
system, applicable internationally, the so-called French sizing system.
Normal sizes for women’s gloves are in inches:
6
6
6¼
6½
6½
6¾
7
7
7¼
7½
7½
7¾
7¾
8
8
for leather
for cotton and nylon
The introduction of stretch nylon yarns has resulted in one-sized gloves that fit any hand from
size 6 to size 8. Popular sizes for men have been 7½ - 11½ and for women 6-8½, both with ½ inch steps between sizes.
Labelling
There are two kinds of requirements in the EU: mandatory and voluntary.
1) mandatory requirements like size (discussed above), fibre content and carelabelling/washing instructions. With regard to fibre content: the indication 100% or pure can be
used within a margin of 2 percent of the weight of the final product. Other fibres with a weight
of less than 10 percent of the weight of the final products can be mentioned. In that case all
(eventual) other fibres have to be mentioned.
An international care-labelling programme, patterned after similar programmes, is in use in
many countries including countries outside the EU. The programme makes use of five basic
symbols that are colour-coded; the symbols relate to the properties of colourfastness,
dimensional stability, effect of retained chlorine (bleach), maximum safe ironing temperatures
and certain other properties (see: next page).
2) voluntary requirements like origin marking, brand or product name and other consumer
information. There is an increasing awareness of the need to keep the consumer informed about
his prospective and current purchases. Origin marking means that the name of the country of
origin should be mentioned. It is not allowed to mention the name of a country other than the
country of origin.
The place of the label in garments varies (mostly neck or side-seam) and can be part of the
importer’s requirements.
101
Note:
A cross on any of the symbols means that the treatment shall not be used; a bar under the
symbols indicates milder treatment is needed (broken bar indicates a very mild treatment).
The maximum (washing) temperature can be mentioned in the washing symbol.
Care labelling recommendations:
Washing
All garments worn close to the skin should preferably be washable at 60º C., normal mechanical agitation.
All other garments should be washable at 40º C., normal mechanical agitation.
The bar under the washtub should only be used in the case of delicate fabrics. The bar indicates that the mechanical
agitation should be reduced.
The broken bar should only be used in the case of machine washable wool and machine washable silk. The broken bar
indicates that the mechanical agitation should be much reduced.
The hand-wash symbol should only be used for articles, which cannot be washed in the washing machine.
Bleaching
Normally the symbol is crossed out.
Ironing
Three dots for cotton and linen ; Two dots for acetate, metallised fibres, polyamide, polyester, tri-acetate, viscose,
wool, angora and silk ; One dot for acrylic, mod acrylic, elastane
The symbol should be crossed out for chlorofibres and polypropylene
Dry cleaning
Only use the symbol P. The bar under the symbol only to be used for delicate fabrics, especially those made from
angora.
Tumble drying
Two dots for all cotton and linen articles ; one dot for all other compositions
Care should be taken that articles are finished properly to prevent excessive shrinkage. This should be tested.
Note: the “weakest” fibre determines the selection of the symbols in blended materials.
102
9.3
Tariffs and quota
The impediments to international trade include:
• Traditional tariffs
• Quota restrictions
• Anti-dumping measures
• Anti-fraud investigations and actions
9.3.1 Tariffs
All EU countries apply common Customs tariffs to imports from outside the Union. If there is no
special trade agreement in force, the general import tariff applies. Some kind of preferential
trade agreement in the field of tariffs, or reductions of EU duty levels, may apply to many
developing countries, according to the commitments in the Uruguay Round, until 2005. Most of
the developing countries have been granted special trade preferences; these countries usually
benefit from zero duties through preferential treatment under the Renewed Generalised System
of Preferences (RGSP) or the Cotonou Agreement for the African, Caribbean and Pacific (ACP)
countries.
RGSP
This agreement allows products originating in the countries concerned to be imported at
preferential tariffs or, for the least developed countries, duty-free. A “Certificate of Origin Form
A” has to be filled in by the exporter and issued by the competent authorities. Tariff contingents
and tariff ceilings do not exist anymore.
Cotonou Agreement
Products originating in the ACP countries can be imported without duties, when a “Movement
Certificate EUR.1” is filled in by the exporter and issued by Customs in the country of export.
Traditional tariffs
All EU countries apply common Customs tariffs to imports from outside the Union. If there is no
special trade agreement in force, the general import tariff applies. Some kind of preferential trade
agreement in the field of tariffs, or reductions of EU duty levels, may apply to many developing
countries, according to the commitments in the Uruguay Round, until 2005. Most of the
developing countries have been granted special trade preferences; these countries usually benefit
from zero duties through preferential treatment under the Renewed Generalised System of
Preferences (RGSP) or the Cotonou Agreement for the African, Caribbean and Pacific (ACP)
countries.
RGSP
This agreement allows products originating in the countries concerned to be imported at
preferential tariffs or, for the least developed countries, duty-free. A “Certificate of Origin
Form A” has to be filled in by the exporter and issued by the competent authorities. Tariff
contingents and tariff ceilings do not exist anymore.
Cotonou Agreement
Products originating in the ACP countries can be imported without duties, when a
“Movement Certificate EUR.1” is filled in by the exporter and issued by Customs in the
country of export.
The EU common external import tariffs for outerwear (as a percentage of CIF value, without
duties and VAT) are given in table 9.1.
103
Table 9.1 Import tariffs for outerwear, as a percentage of CIF value, without duties and VAT
HS code
61.01-61.09
61.10.10
61.10.11-61.10.90
61.11
61.11
61.12
61.16
61.17
62.01-62.06
62.09
62.11
62.14
62.15
62.16
Description
Knitted outerwear:
Coats, jackets, trousers, suits, dresses, skirts, shirts,
blouses and T-shirts.
Pullovers, cardigans etc. of wool
Pullovers, cardigans etc. of materials other than wool
Gloves for babies
Other knitted wear for babies
Training- and ski-suits
Gloves
excl. gloves coated, impregnated etc. with rubber
Scarves and ties
Woven outerwear:
Coats, jackets, trousers, suits, dresses, skirts, shirts,
blouses etc.
Babies’ wear
Sportswear (training- and ski-suits)
Scarves
Ties
Gloves
Tariff in %
General
RGSP 1)
12.0
10.5
12.0
8.9
12.0
12.0
8.9
8.0
12.0
9.6
8.4
9.6
7.1
9.6
9.6
7.1
6.4
9.6
12.0
10.5
12.0
8.0
6.3
7.6
9.6
8.4
9.6
6.4
5.0
6.0
42.03.10
Leather garments
4.0
0.0 2)
1) Preferences are not valid for China, Sri Lanka, Moldova, Tunisia and Myanmar.
Specific tariffs (lower than RGSP tariffs) are valid for South Africa in several product categories.
2) Preferences are not valid for China, India and Myanmar.
Source: Netherlands Customs (Belastingdienst Douane), June 2005
Information on the up-to-date status of the management of actual tariffs is available at the EU
Expanding Exports helpdesk http://export-help.cec.eu.int/
9.3.2 Quota restrictions
For many years, quota restrictions were the most important form of non-tariff barriers regarding
clothing, until 1995 through the Multi Fibre Arrangement (MFA) and from 1995 onwards by the
WTO Agreement on Textiles and Clothing (ATC).
As per 01-01-2005, all quota in the clothing sector were eliminated. The effect of the elimination
was booming imports from China against much lower prices in the first months of 2005 and
objections from the side of South and East European clothing producing countries.
In June 2005, the EU and China agreed a deal that will manage the growth of Chinese textile
exports to the EU until 2008. This agreement will cover 10 of the 35 categories of Chinese
imports liberalised on 1 January 2005: pullovers, men’s trousers, blouses, t-shirts, dresses,
bras, flax yarn, cotton fabrics, bed linen, table and kitchen linen. It covers the categories of
serious concern, including most of the categories identified by the European Textile Association
Euratex and the two categories for which the EU had already launched formal WTO
consultations with the Chinese: t-shirts and flax yarn.
The agreement limits the rate of imports while allowing fair and reasonable growth for Chinese
exports. By finding a wide and balanced agreement, the EU and China ensure a period of
adjustment for textile industries in the EU and developing countries, provide greater
predictability for importers and retailers, and preserve the prize of market liberalisation for
China.
The agreement limits growth in imports in the 10 categories to between 8 and 12.5% per year
for 2005, 2006 and 2007. Quantative levels apply from 11 June 2005, however, at the time of
the agreement quota for jerseys, jumpers etc. were already fullfilled. More information can be
found on http://sigl.cec.eu.int or http://export-help.cec.eu.int/ .
9.3.3 Other barriers
Examples of barriers other than tariffs and quota are anti-dumping and anti-fraud measures.
104
Many clothing items are already quota-free, but WTO rules allow importer countries to impose
anti-dumping duties if there is evidence that markets are being disrupted by selling below costs.
Anti-dumping measures
Anti-dumping implies that, under WTO regulations, exporters are expected to sell their products
at fair market value, at a price above cost and without imposing higher domestic prices for the
same product that would in effect subsidize their lower export prices. In the event of predatory
pricing by a particular company or country, the importing country is allowed to impose a duty
surcharge on the imported product, to bring the final price up to fair market value.
Anti-fraud investigations and actions
Besides anti-dumping measures, the EU is stepping up anti-fraud investigations and actions against
fraud designed to:
• circumvent trade policy measures, such as anti-dumping measures;
• benefit illegally from preferential treatment such as that under RGSP;
• cheat consumers (claiming EU origin for products produced elsewhere);
• combat counterfeiting and piracy (copying exclusive designs and models without
permission of the owner).
To obtain up-to-date information on trade regulations, refer to the list of useful addresses in
appendix 3.6 of this survey.
105
PART B
EXPORT MARKETING GUIDELINES:
ANALYSIS AND STRATEGY
106
INTRODUCTION
After having read Part A, it is important for an exporter to analyse target markets, sales channels
and potential customers in order to formulate marketing and product strategies. Part B
subsequently aims to assist (potential) exporters in developing countries in their export-decisionmaking process.
Part B distinguishes the four following strategic steps in the exports marketing process:
Step 1. External analysis (Market Audit, Chapter 10) and Internal analysis (Company
Audit, Chapter 11).
Step 2. SWOT analysis (Chapter 12).
Step 3. Decision making & formulation of objectives (Chapter 12).
Step 4. The marketing actions - input for Market Entry Strategy & Export marketing Plan
(Chapter 13).
In step 1 - External analysis - relevant topics in the EU outerwear marketplace will be covered
such as: market developments and opportunities, which outerwear items to export, to which EU
markets, which competitors, through which channels, at what prices etc... Exporters can look
into each topic by gathering information on some of the key questions that arise. When
sufficient information has been obtained by market research, they can identify and select target
markets. Some relevant information has already been provided in Part A and some sources for
further research can be also found in Appendices 3 and 5 of this Market Survey.
An Internal analysis should clarify if an exporter could use his resources without jeopardizing his
domestic sales efforts and estimate if and how his company could enter these target markets.
In step 2, the SWOT analysis, opportunities and threats (from external analysis) and the
exporters’ strengths and weaknesses (from internal analysis) are summarized. The result of the
SWOT analysis should tell the exporter if he is able to export his products. Particularly if there
are more market opportunities (than threats) and if his company is strong enough to start this
venture, he could decide positively.
In step 3, the export decision is made and his objectives for EU outerwear target markets are
set, while step 4 covers the marketing actions that he should take in order to successfully
penetrate these target markets. Most topics in Part B concern the External and Internal
Analyses in step 1. All four steps form the basis for exporters to draw up their Market Entry
Strategy (MES) and plan their activities in an Export Marketing Plan (EMP).
There are several reasons like growth, continuity and competitiveness which support the
decision to export. In any case, the decision should always be taken after export market
research has been carried out and when/if customers have been identified, who sufficiently
value some elements of a company’s product to consider buying it.
The total value of outerwear consists of material (fabrics, trim etc.) including accessories +
design + production (sewing, knitting, finishing etc.) + logistics + marketing. Profits can be
obtained wherever value is added to the chain. So the position in that chain has to be observed.
Finding out where the highest added value is, can be determined by answering questions like,
does the company have:
• easy and economic access to materials?
• a design department?
• efficient production facilities and low labour costs?
• logistical advantages to reach markets?
• a brand identity?
Outerwear producers can be classified in several ways, for instance as manufacturers of
standardised mass-product varieties and of fashion-sensitive, high-quality products.
Another classification used for producers, besides producing own branded products is: low,
medium and high-service factories. These factories operate as contractor or sub-contractor.
Characteristics of these types of clothing producers can be described as follows:
107
CMT producers
FOB producers
Producers of private labels
Producer of own design, mainly using brand trademarks
A short description of these various producer types is given below. Another classification used
for producers, besides producing own branded products is: full service, normal service and 0service factories. Full service can be compared more or less with the private label supplier; the
normal service factory with the FOB producer, while the 0-service factory is most likely working
on a CM or CMT basis.
CMT producers
Characteristics of the CMT factory are:
• often unable to produce more than a limited number of orders at one time (averages five
or fewer styles per month);
• the capacity is filled by a limited number of customers;
• customer supplies fabric and trim;
• efficiency is high when producing a basic product;
• cannot deal with changes in order (colour or size assortment) or design modifications.
Little investment is made in capital equipment and the factory operates using semi-skilled or
unskilled workers. Situated at a long distance from the EU, the factory enjoys a direct-cost
advantage due only to low labour cost.
FOB producers
These factories are able to operate with short lead times and operate best when specialising in
simple products such as casual pants, shirts and blouses. These factories are capable of
producing a decent sample after the first or second attempt. Depending on the relative abilities
of buyer and factory and the style’s degree of difficulty, the buyer provides either a sample with
pattern or a detailed sketch with a spec sheet (giving size measurements) and tech sheet
(giving seam types, allowances etc.). As a rule, better-organised importers will provide patterns
to less sophisticated factories, unless the orders involve staple goods.
Private label producers
The private label producer needs thorough technological expertise, production experience and
the ability to access special trim or machinery, also grading of fabrics. The greatest scheduling
advantage offered by this type of factory is flexibility: in lead times, in production (modular
teams), in minimum orders (for important customers). The customer can make changes not
only in size assortments, but even from one style to another, up to the moment the fabric has
physically been spread on the cutting table.
The number of orders produced is limited only by the size of the operation. A large factory is
capable of producing 50-400 styles per month.
Producers of own design (brand trademarks)
Brand trademarks are an important sales argument in higher segments or selected parts of the
clothing market. Branding promises a special design, quality and exclusivity and it appeals to
the consumer’s personal style. Branding can also help differentiate products, establish
consumer loyalty and secure a price premium for products. Producers who want to work with
their own brand have to fulfil several requirements. They need a technological knowledge of
designing, pattern-making, grading of fabrics, distribution, and should be able to produce
constantly high quality clothing. It may be appropriate for producers to employ designers;
sometimes they may work with free-lance designers. They need to be up-to-date on fashion
developments. A high level of marketing expertise is necessary and acquiring this expertise is
essential for building and maintaining brands successfully.
108
The following chapters will distinguish between the several types of exporting manufacturers in
developing countries as classified above. Eventually, based on the internal analysis (chapter 11)
exporters can recognize which type they represent. Unless otherwise mentioned, the information in
the following chapters is valid for all kinds of manufacturers in sustaining their export activities. Of
course, gathering information and knowledge is required for companies intending to develop
themselves, for instance from CMT to FOB producer or from FOB to private label producer, etc.
109
10
EXTERNAL ANALYSIS: MARKET AUDIT
10.1
Introduction
Europe is a continent and not one market, but a patchwork of markets with different
characteristics. For that reason a selection has to be made. The general way is to choose for
two countries: a primary and a secondary target country. Regarding outerwear, a comparison
has to made based on the following factors:
• Economic stability: developments in gross domestic product, trade, labour force and
unemployment, wages, income, exchange rates etc.
• Cultural and political climate, including language
• Geographical factors and climate
• Demographic developments (total, by age groups, by gender, number of households
etc.)
• Size and developments of the market for outerwear, if possible divided into segments or
product groups
• Development in total imports per country, per product or product group, and area of
origin
• Production developments
• Import penetration of total market size
• Expenditure and characteristics of demand
• Local distribution and trade
• Customer needs and desires
• Type and extent of the competition, competitive offerings
• Market access, limitations on trade
• Fashion developments and trends
The market information described in part A of this market survey is very useful as a starting
point for your export market research. Where applicable, the sources for this market
information are also mentioned in the specific chapters.
For more general information, the website of the EU statistics bureau Eurostat can be used:
http://www.europa.eu.int/comm/eurostat Other sites for general information are among many
others: http://www.cia.gov/cia/publications/factbook and http://www.worldchambers.com For
a list of the European national trade statistics bureaus, please refer to the Eurostat site.
For more information about the outerwear market in the EU, refer to websites mentioned in the
following paragraphs and appendices.
10.2 Market developments and opportunities for outerwear
The size of the market is generally measured on consumer level (retail prices including VAT)
and on production level. An overview of clothing consumption in the EU countries, as well as
more detailed figures for the six major countries, is given in chapter 3 of this survey. These
figures have been derived from national statistics as far as available and from databanks
supplied by research institutes like Gfk, active in several EU countries (http://www.gfk.com),
Mintel (http://www.mintel.co.uk), Verdict (http://www.verdict.co.uk) and Key Note
(http://www.keynote.co.uk) and publishers like Textiles Intelligence, Retail Intelligence, Textil
Wirtschaft and Journal de Textile (see appendix 3.5). These statistics and publications are
rather expensive; availability and costs can be found on the referred sites. It should be noted
that official trade statistics can vary considerably in products or product groups, in volume
denominators (weight and/or units), or absence of figures (secrecy) for competitive reasons.
Another means to obtain insight into a market is measuring on production level. The local
market situation (apparent consumption) in a country is equal to production (at invoice value)
plus imports minus exports and eventually plus or minus changes in stocks. The availability of
production figures concerning products or product groups is very limited and varies
considerably per country.
Another vital piece of information, besides knowing the size of the market, is the projected
market development for the coming years. In general, it can be said that expanding markets
offer more possibilities and decreasing markets offer a limited profit potential. Much of the
110
initial information about market size and developments can further be gathered by using
websites of:
• Trade fair organisers, in particular the site of the German CPD: http://www.cpd.de, for
other sites see appendix 3.4.
• Trade press; to gather information about fashion shows, fabrics, designs etc. and to
obtain inspiration, in particular by designers, refer to http://www.modeparis.com The
website of Textil Wirtschaft http://www.TW-network.de is recommended for
international business and marketing information on the clothing industry and trade.
More references in appendix 3.5.
• Standards organisations (appendix 3.1) and trade organisations (appendix 3.3).
• Some providers of general information also have specific descriptions of outerwear
markets in some EU countries, like http://www.tradepartners.gov.uk and
http://www.tradeport.com
• Finally, limited but essential information gathered from world-wide publications is
delivered free by http://www.just-style.com and http://bharattextile.com, while paid
membership gives even more information.
Aspects to be considered for exporters of outerwear to an EU country are:
1. Selecting a target country is primarily based on factors as mentioned above, of which
special attention has to be given to differences in total population, area, language,
business practices etc.
2. Size of the clothing market and developments in the sectors per country or region. In
general, it can be said that women’s outerwear is the largest sector. Also, the women’s
outerwear market has been subject to the severest price competition as the mass middle
market becomes overcrowded. The growth will be modest for the coming five years.
3. Sizing systems vary per country or clusters of countries. Sizes in Germany, The
Netherlands, UK and the Scandinavian countries are more or less homogeneous, just like
in the Latin European countries (Spain, Italy, France, Portugal). Internationally operating
countries mention different sizes valid for different countries on a label and eventually on
packaging.
4. In all major EU countries, the market can be divided into high, middle and low market
segments with their own specific distribution channels. However, environmental, health
and safety aspects, just like other requirements for market access, are valid for all
segments.
5. New developments in fabrics resulting in the introduction of new finishes, fabric types
and fabric weights in many sectors of the market, like high-fashion, outdoor clothing and
sportswear.
Some of these items are not relevant (3 and 4) or are partly relevant (2 and 5) for CMT
producers.
After desk research, like studying all CBI and other information on the subject, field research
can be planned in the form of an orientation visit to Europe. This visit will have to include a
leading trade fair, fashion trade centres, shopping centres, and a number of appropriate
prospective buyers (with whom specific appointments should be made in advance).
Opportunities
¾ Germany is still the greatest market for outerwear in the EU, but consumer expenditure
has decreased. The highest growth rates in the EU-15 are in the UK and Spain. In the
new EU-10 countries, Hungary, Czech Republic, Slovenia and Poland offer greater scope
for market growth. Clothing expenditure in Germany and The Netherlands are expected
to recover in 2006, while the UK and Spanish market will remain strong;
• Expectations for consumer expenditure on outerwear for the period 2005-2007 are
moderately optimistic, for several reasons like demographic developments, growing
interests of consumers in fashion and expected growth of consumer expenditure;
¾ The focus on casual and leisurewear will be continued for the coming years, but to a
much smaller degree;
111
¾
¾
¾
¾
¾
¾
¾
¾
¾
¾
Besides the general trend to more casual wear, there is a tendency to more natural
fibres, mainly cotton and blends with cotton at the expense of man-made fibres, in
particular in Germany, The Netherlands and Italy;
Imports from developing countries of casual/leisure product groups like T-shirts,
sweaters, sportswear, jeans and other cotton trousers increased considerably in volume
but against much lower prices;
Demand for outerwear in the EU will continue to increase slightly in the coming years. The
number of garments purchased per head of population will continue to rise but prices will
not follow this growth rate;
Importers in the major EU countries have built up a comparative advantage by
specialising themselves in design and other functions, like preparation of samples,
logistics, marketing etc., while simple production operations take place increasingly in
other countries. As times goes by, even the first mentioned functions are leaving these
EU countries too;
To satisfy the requirements of importing European companies, the exporters in developing
countries will be faced with increased demands for higher quality and environmentally
friendly products. More information concerning environmental aspects can be found in
CBI’s AccessGuide. With the right strategy and a carefully thought out development plan,
there is no reason why these challenges cannot be met;
Women’s outerwear is the largest sector in the EU. Also, the women’s outerwear market
has been subject to the severest price competition as the mass middle market becomes
overcrowded. Therefore, growth will be modest for the coming five years. Men’s
outerwear has suffered from increased price competition. However the extent of this
competition has been lessened by a greater shift towards fashion and branded goods
across the sector. The value of men’s outerwear sales is expected to grow faster than
that of women’s outerwear. Future growth in children’s wear and infant’s wear is for an
important part undermined by long-term demographic trends, which lead to a small
growth in volume but a greater increase in value;
Developments in the retail sector, like a wide availability of clothing at competitive prices
and a growing concentration at retail level, lead to an increased demand for fashionable
products against low prices. At the same time, developments in EU production lead to a
further sourcing of basic products in low-cost countries and, probably, of products with a
higher design content. The largest middle range market segment may offer good
opportunities;
The decline of domestic manufacturing has led to a more internationally oriented trade in
textiles. The keen competition on the EU market will steadily increase and this leads to
further possibilities for exporters in low-cost countries;
Advantages of the new EU states in terms of lower wages and shorter routes will largely
have disappeared within a decade due to the alignment of the wage structure and the
fact that the clothing industry will no longer be competitive there. This already happened
in the regions of the ‘old’ EU states. An entire sector will disappear in Eastern Europe
and only niche suppliers or quality producers will be able to survive;
The agreement between the EU and China (10-06-05) to limit Chinese exports to the EU
of among others sweaters, jumpers etc., T-shirts , men’s trousers blouses and dresses
will give possibilities for other developing countries because Chinese quota are already
utilised or will be utilised soon.
Threats
¾ The fast changing demand in the clothing market is a significant factor. Because of the
higher dynamics of the clothing markets in terms of quicker changing consumer
preferences and more seasons per year, there is a general tendency in the clothing branch
to demand shorter delivery times and smaller volumes of series and orders.
¾ The effect on the elimination of quotas has led to a fall in prices. Products likely to see the
biggest price reductions are those manufactured in Asian countries, which are currently
subject to higher tariffs than those levied on products from the EU neighbours in the
CEECs and the Mediterranean Rim.
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10.3 Competitive analysis
Opportunities for all types of exporters in developing countries still remain, in particular as long
as increased attention is given to quality and reliability in deliveries. Effective competititive
capability by developing countries requires knowledge of the legal, technical, quality and fashion
requirements. In addition, they must make resources available, not only to monitor and
understand developments in the target countries, but also to use test laboratories to ensure that
quality requirements are strictly met.
In general, it can be said those companies, which are continually adapting new technologies and
have the advantage of low production costs, have definite advantages. Another advantage
applies to exporters in economically and politically stable developing countries.
The following aspects have to be considered, to learn more about your competitive environment.
1: Prepare a list of your key competitors
Prepare a list of all the competition and then highlight who your main competitors are.
To learn more about competition, you can do secondary research study of your industry
and ask customers and suppliers for their opinions.
2: Analyse the main competitors
Ask customers about your competitors. If possible, visit competitors' companies to learn
how products are priced and distributed. You can prepare a list of your main competitors
strengths and weaknesses.
3: Assess whether new competition is likely to enter your market
Despite the enormous competition, the clothing industry is open to new entrants
encouraged by the low threshold caused by relatively low investments and quick-tolearn skills. Constantly check with customers, suppliers and your competition to see if
they have heard of any new businesses, which represent competition.
4: Discover where and how the competition is selling their products
You need to find out which trade channels are used by your competitors, and why.
5: Observe activities in the outerwear branch
Trade fairs, trade centres, fashion shows, congresses, seminars etc. can be helpful to get
in contact with new customers and learn about market developments. They can however
also be used to find out more about competition. If you sell outerwear, take the time to
attend specific trade fairs to see what your competition is like.
All five points above can be considered, varying from brief (for CMT producers) to extended (for
own brand producers). However, information about competition on country level (as discussed
in chapters 4, 5 and 9) as well as on company level (own research) is important for all types of
companies.
Opportunity
¾ The best value is not necessarily created in countries where labour costs are lowest.
Instead, it tends to be generated in factories where the management is best able to
manage costs and productivity and where technology is used cost-effectively. In other
words, the skill and circumstances which contribute to achieving the best value are
factory-specific rather than country-specific.
10.4
Sales channel assessment
Having assessed the prospective markets and market segments, it is now also important to
understand the trade structure and supply chains supplying these market segments. After the
assessment of his capabilities, the exporter is able to determine the most suitable sales channel.
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Questions that an exporter should answer:
· Which potential sales channel exits for your products in the target market?
· What is the common practice in your line of business regarding exporting?
· What are the most important requirements of the identified sales channels
(quality, packaging, etc.)?
· Which sales channel appears to be most suitable for your company?
· Are you financially and organisationally strong enough to export on your own or not?
Foreign market entry strategies can be divided into production and marketing entry strategies.
The various forms of production entry strategies are described in chapter 4.2 of this survey.
Marketing-based entry strategies can be divided into contacts with foreign distributors, whether
or not via agents and looking for co-operation with trade partners or organisations in your home
country. Trade channels in the target country are discussed in chapter 7 of this survey, while
the type of exporting manufacturers is described in the introduction of this part B.
Intermediaries on the outerwear market and their foreign policy:
• Importing manufacturers are looking for relocation of the most labour intensive piecework
(CMT) or relocation of total production including material purchasing (FOB) or sourcing
additional products.
• Agents are intermediaries between manufacturer and retailer, receiving a commission
from the former. Capital requirements are limited because this cooperation is based
upon commission; however, agents mainly work with brand names and are therefore
less interesting for most exporters in developing countries.
• Wholesalers import garments, made according to their specifications, either or not
provided with private labels, or they buy ready-made garments. Cooperation with an
established wholesaler can ensure better contact with the distribution channels on the
export market. The wholesaler has a thorough knowledge of the market, follows the
market closely and has, via his salesmen, close contact with the distribution channels.
The capital requirements are limited because the wholesaler holds his own stock at his
own risks. Disadvantages are the missing of direct contacts with the retailers (contacts
go through the wholesaler) and possible lower margins for the exporter.
• Big retail organisations are the dominant force in the clothing business. Just like
wholesalers, retail organisations import garments, made according to their specifications
either or not provided with private labels or buy ready-made garments. They control
their own stocks daily, amongst others by using barcode systems; this means a
tendency to integration of production, buying, distribution and selling. They want to
diminish the time used in the clothing column, from production to selling. The retailers in
fact reduce the number of distribution networks available to the producers. The
remaining networks have become specialised logistic service suppliers.
The choice by an importing retailer for a specific supplier depends on:
purchase price;
technological capacity;
distribution costs;
reliability regarding just-in-time deliveries;
service by the producer;
quick response.
The matrix below shows a selection of the most common choices of trading partners for each
kind of (potential) exporting company:
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Possible
trading partner:
Manufacturer
Import
trading
company
Retail
organisation
Agent
CMT producer
X
-
-
-
FOB producer
X
X
X
-
Private label producer
-
X
X
-
Own design producer
-
-
X
X
Exporting company:
Intermediaries on the outerwear market and their foreign policy:
• Importing manufacturers are trying to relocate total production, including material
purchasing and/or sourcing additional products.
• Import trading companies import outerwear, made according to their specifications,
either or not provided with private labels, or buy ready-made products. Cooperation with
an established importer can ensure better contact with the distribution channels on the
export market. The import trading company has a thorough knowledge of the market,
follows the market closely and has, via his salesmen, close contact with the distribution
channels. The capital requirements for the exporter are limited because the importer
holds his own stock at his own risk. Disadvantages are the missing of direct contacts
with the retailers (contacts go through the wholesaler) and possible lower margins for
the exporter.
• The import trading company route is possibly the safest and most effective first
approach to exporting. Basically the importer, who is familiar with the user market, can
supply a considerable amount of information and guidance to the overseas
manufacturer, like knowledge of the legal, technical, quality and fashion aspects. He can
provide designs and patterns, arrange the administration of import/export procedures,
stockholding in the buyer country, finance and be responsible for returns from the final
customer. Obviously, in return for these services, he will require a considerable mark-up
to be able to operate. Importers who buy for their own account can be a very effective
means to gain distribution.
• Big retail organisations are, besides import trading companies, the dominant force in the
outerwear business. Just like import trading companies, retail organisations import
outerwear, made according to their specifications either or not provided with private
labels or they buy ready-made products. They control their own stocks daily, amongst
others by using barcode systems; this means a tendency to integration of production,
buying, distribution and selling. They want to diminish the time used in the clothing
column, from production to selling. The retailers in fact reduce the number of distribution
networks available to the producers. The remaining networks have become specialised
logistic service suppliers. The choice of an importing retailer for a specific supplier
depends on: purchase price; technological capacity; distribution costs; reliability
regarding just-in-time deliveries; service by the producer; quick response.
• Agents are intermediaries between manufacturer and retailer, receiving a commission
from the former. Capital requirements are limited because this cooperation is based
upon commission; however, agents mainly work with brand names and are therefore
less interesting for most exporters in developing countries.
Exporters in the outerwear sector are confronted with many aspects like sizing, packaging,
environmental aspects, resulting in a lot of technical requirements, added to which are aspects of
design, fashion, market developments etc. For that reason, co-operation in a variety of forms
between importer and exporter can be necessary. The most important determining factors for
exporters operating on this basis are the combination of price, product quality and reliability of
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deliveries and delivery times. More further-reaching forms of potential co-operation are joint
ventures and co-maker ship agreements.
Small, inexperienced exporters, who merely manufacture as their core business may prefer to
deal with a domestic partner for their exporting or to join other exporters. In any case, the
advantages (e.g. lower risks, export experience) and disadvantages (e.g. dependency, lower
profits) have to be considered carefully.
Opportunities
¾ The role of importing wholesalers and importers remains relatively important but will
slightly decline, while the role of clothing multiples and, to a lesser degree, buying
groups or franchise formula will increase in the coming years. Parallel to the trend for
suppliers to make their clothing abroad is a trend for retailers or wholesalers to bypass
the local industry totally, by means of direct imports.
¾ The buying policies of super- and hypermarkets vary from direct imports by the
international operating chains to buying from wholesalers/importers.
¾ For starting and/or SME exporters, selling to wholesalers and importers has the most
advantages. Disadvantages are the missing of direct contacts with retail organisations
and lower margins.
¾ Importers in the major EU countries have built up a comparative advantage by
specialising themselves in design and other functions, like preparation of samples,
logistics, marketing etc., while simple production operations take place increasingly in
other countries. As times goes on, even the first mentioned functions, are leaving these
EU countries too.
10.4
Logistics
The logistic concepts aim at having the right goods at the right time, in the right volumes at the
right place and all that with a minimum of costs. Particularly for fashion-sensitive articles, that is of
the upmost importance, just like regularity in deliveries and what is more: delays are not tolerated.
Important questions that need to be answered in this context are:
How often do the different sales channels require delivery?
What size of supply does the different sales channels demand?
Which formalities do the different sales channels require from the
exporter?
Retailers are confronted with variation in consumer behaviour, with changing trends in fashion
and capital bound in stocks. Therefore retailers demand short delivery times from the producers.
In general, the retailers in the branch try to shift the risks of market fluctuations to the
producers, by ordering small series. Because of the tendency to order smaller series, the order
frequency is increasing and retailers tend to use more than one supplier. The retailers also tend
to have a greater influence on production and transport and mostly have their own designers.
The number of rush orders is also increasing.
Delivery terms also play an important role in the logistic system of an exporter. When FOB (Free
on Board) terms are agreed, the exporter’s responsibility is to deliver the goods at the agreed
time at the port of loading in his/her country and to have the required export documents
available before shipping. The exporter is not involved in securing shipping space, because he
negotiates shipping terms with freight forwarders. On the other hand, when CIF (Cost, Insurance,
Freight) terms are agreed, the exporter also has to take care of securing shipping space at the
agreed time of delivery of the goods in the port of loading. For details on delivery terms please
check section 13.4 of this survey.
Any developing country manufacturer entering the export market must not only estimate costs
accurately before entering into a contract, but also ensure that the shipping facilities at his
disposal can guarantee delivery within contractual time requirements. This tends to pose few
problems for countries with access to ports, which have well-established shipping channels to the
EU. However, it is a problem for many exporters in Africa, for example, who, in addition to
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needing to move goods overland to a port, must deal with shipping services that are often
unreliable and infrequent. A reliable shipping agent is essential for these exporters.
Opportunities
¾ As mentioned above, exporters of outerwear are confronted with many aspects like
quality, sizing, packaging, environmental aspects, resulting in a lot of technical
requirements, added to which are aspects of design, fashionability, market
developments etc. For that reason, co-operation in a variety of forms between importer
and exporter can be necessary, of which the more further-reaching forms of potential
co-operation are joint ventures and co-maker ship agreements.
Threats
¾ The demand for shorter delivery times and smaller volumes of series and orders as
mentioned in chapter 10.1. mean saving of time in the logistics process, less problems
with rush orders, better determination/fixing of order volumes, more possibilities for postordering, less danger of over-ordering, over-supply and big stocks.
¾ Because of the spreading of buying of clothes over the whole year and because of
increasing product differentiation, there is a growing shift in power positions to the retail
chains. These developments include opportunities for the group of ‘privileged/short
distance’ supplying countries (as described in chapter 9.2) and tough competition for
other countries.
10.5
Price structure
As a rule, importers who import from developing countries are looking for low-priced
merchandise. The margins at the various different levels of distribution are influenced by six
factors and are different for each product/market combination. These factors are:
• degree of risk (new fashion/design or ‘me-too’ product, new or known source etc.);
• volume of business;
• functions or marketing services rendered;
• general economic conditions (booming or depressed business);
• existence/availability of competitive products; and,
• exclusiveness of the product.
High-risk, low-volume, service-intensive products require different margins to low-risk, highvolume standard products. It is impossible to draw up a schedule of actual margins for each and
every product/market combination. Even within the same type of combination, different
importers employ different margins, due to variation in economic conditions.
The typical rate of commission paid to an agent is between 10 and 15 percent of sales.
The effect of low, medium and high margins on consumer end price, based on one CFR (cost
and freight) price for three different products, will be shown in table 10.1. A multiplier of
between 2.3 and 2.8 on the manufacturer’s or importer’s price should be used to calculate an
appropriate final consumer price. Caused by factors like increasing competition at all levels in
the distribution column, further concentration and integration, the factor has decreased in the
last decade. Elimination of the wholesaler, for instance, can lead to a lower multiplier used by
clothing multiples, department and variety stores and home shopping companies.
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Table 10.1 Calculation schedule: margins
Low
100
*
Medium
100
*
High
100
*
Retailer's margin (45/55/65%)
- net selling price
Value Added Tax: 19% of net selling price **)
- gross selling or consumer price
7
107
21
128
64
192
36
228
7
107
27
134
80
214
41
255
7
107
32
139
97
236
45
281
RATIO CIF/CONSUMER PRICE:
2.3
2.6
2.8
CIF Rotterdam/Amsterdam
Import duties
Charges on CIF basis:
- handling charges, transport/ insurance, banking services
Wholesaler's margin (20/25/30%)
*)
**)
import tariffs vary from 0 until 12.0 percent of CFR value (see table 9.1)
In practice, retailers calculate a 80-110% mark-up, incl. VAT. A large part of the assortment has been reduced
in price. In this calculation, the VAT tariff valid for The Netherlands is used, but note that this tariff varies per
EU country.
This means that exporters' CFR prices should be in the range of 30-39 percent of the final
consumer price including import duties. In absolute terms, it is more attractive for an exporter
to operate in the medium and high market.
Although levels of wholesaler and retailer costs often shock suppliers, these intermediaries do
not generate excessive profits. While purchase costs have fallen since manufacturing in low cost
countries started to gather pace, other costs have risen and increasing competitive pressures
have kept profitability down. Bargain sales are growing in importance in all segments of the
clothing market and in all major EU countries. Bargain sales generally threaten margins but are
considered as inevitable because of the growing dynamics of the clothing market. Rapidly
changing fashion makes clothing assortments "out-fashioned". Bargain sales are then the only
means to get back a part of the purchase price, even if they are sold below the usual retail
price.
Although price is not the only marketing tool to export outerwear to EU markets, it is certainly a
very important one. Concentration of buying power, increasing supply and global sourcing of
clothing put pressure on process and margins throughout the value chain. Some markets in the
EU have decreased, while most others are growing at a slower pace. This development has
placed pressure on price levels. Due to the diversity in products, it is not possible to focus on
prices for individual products.
Increasing costs and, at best, stable selling prices, causes margins to decrease. Exporters should
therefore have:
• A clear insight into their cost prices for exports to EU markets in order to set a minimum
selling price. At least all variable costs and part of the fixed costs should be covered by
the selling price. When the market price is lower than the minimum selling price, a loss
situation can easily occur. Although this could be acceptable for individual orders in order
to prevent larger losses (stock losses), in the longer term this situation will undermine the
financial stability of the company.
• Try to obtain efficiencies in operations in order to decrease cost prices, for example
reduction of stocks, more efficient production runs, negotiate lower purchase prices for
raw materials and packing materials, etc.
Prices are determined by market conditions; individual exporters cannot influence the price
levels. Margins for the exporter depend on his price setting on one side and his cost price on
the other side. Part of his costs depends on the payment and delivery conditions, which the
exporter agrees with his trading partner in the EU. Sources to check for price information are
given in chapter 8.
Exporters who want to supply EU markets will invariably be faced with long payment terms.
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Usually, trade partners will wait with payment until they have inspected the goods upon arrival
in their warehouse against the (approved) samples they received earlier. Depending on the
shipping period, the exporter can easily face a period of 6-12 weeks after production of the
goods before he receives payment of the invoice. The interest he loses should be calculated into
his cost price. This is especially important for countries with high interest rates.
10.6
Product profiles
The profiles of a limited selection of products highly relevant for exporters in developing
countries are elaborated in this section. The products concerned are blue jeans, T-shirts, and
leather flight jackets also known as bombers.
The product profiles summarise the main issues of interest to a (potential) exporter of the
respective product. Besides the product requirements, the market structure and the main
supplying countries are also briefly described. Moreover, the product profiles offer ideas on how
to improve the quality of the product. These profiles are examples of how to set up a profile for
a specific product and can be expanded by the exporter himself.
PRODUCT PROFILE: BLUE JEANS
Naming
Ankle length pants traditionally made in faded blue or indigo denim. Originally worn by
farmers and workmen, pants were styled with topstitching, two patch pockets, two swing
pockets, a V-shaped yoke in back, and rivets reinforcing points of strain. In the 1960s
adapted as a general fashion with flared legs in same cut but made of many fabrics
including denim, bleached denim, printed fabrics, corduroy and even velvet. The
introduction of the watch-pocket (on the right side in front) added to carry money led to
the classical five pocket jeans.
Market
requirements
As for other outerwear articles, there are no general (EU) standards for blue jeans. Most
of the importers work with certain minimum requirements relating to materials and
manufacturing. The minimum standard and the test method are described for fabrics and
yarns. For example: a tolerance of +/- 5% in weight (according to ISO 6348), or a max.
shrinkage of 3% and max. elongation of 3% for 100% cotton (ISO 3759,5077 and
3175).
For example, a description of manufacturing requirements can include among others:
minimum seam allowances for pressed open seams (1.0 cm), for closed seams (0.7 cm)
and for waistbands (1.0 cm), leg seat and yoke seams must be sewn with a lapped seam
which is sewn with two needles producing double chain stitch, or a safety stitch which
may be stitched flat with a double chain stitch. Criteria for sewing of fastenings, pockets,
waistbands, usage of yarns (monofilament is not allowed) are part of the requirements.
Styling
requirements
In recent decades several varieties in finishing techniques have been used, to avoid (prewashed) or to obtain (wash-out, fade-out) colour changes. Destructive techniques like
stonewashed, sand-washed, moon-washed, snow-washed etc. Bleach, like caliumpermanganat or more expensive enzymes can be used, whether or not combined with
other techniques. Leg styles conform to fashion. Varieties in widths are: bell-bottoms,
flared, boot cut and straight cut. The latter (basic jeans) is the most popular at the
moment and in the near future. Recently nearly all leading jeans brands introduced
authentic models from the 1950s and even 1940s. The back to basics means a revival of
the basic five pockets, also of extreme destructing finishing techniques (used, dirty and
second-hand washed).
Wearing
properties
Fitting is very important for jeans. For that reason tolerances for shrinking are limited
(max. 3%).
Sizes
Jeans sizes are indicated in inches (25.4 mm) and are usually given in two figures,
namely the waistband girth in inches and the outer-side length in inches. Jeans sizes are
compared with usual sizes for outerwear in the chapter ‘size marking’ of this survey.
These sizes are seldom used because the fitting of jeans is very important. For example:
the difference between 29 and 30 inch is 2.5 cm and in the usual outerwear women’s
sizes 38 and 40 the difference is 4 cm.
Labelling
Labelling indicating care instructions has to be affixed according to the international
symbols. Maximum washing temperature in ºC., do not use chlorine-based bleach,
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ironing at desired soleplate temperature, dry cleaning circle and tumble drying have to
be mentioned on a label, besides size and fibre content.
Materials
The choice of the material plays a dominant role. The most common material used is
100% cotton. However, shrinkage and, to a lesser degree, colour fastness is a problem.
All cotton shrinks, so while making patterns, this should be carefully considered.
Denim with a weight of:
•
8-9.5 oz, lightweight denim is used for children’s summer wear.
•
10-11.5 oz (350-420 gr/sq m), light or fine-weave denim is used for women’s
summer wear.
•
12-14.5 oz (500 gr/ sq. m), used for men’s wear and women’s heavy (winter)
wear; most common is the 13.¾ oz.
•
14.5 oz is a heavy (winter) quality for men’s wear and also used for special
models.
Maintenance and
durability
Wash and care instructions are required. Most claims arise from the incorrect appliance
of the wash care instructions.
It is advisable to indicate on your care label only 60 ºC for washing and wash inside out
(to avoid bleeding), both instructions in order to avoid claim discussions.
Note: Shrinkage is mainly caused by wrong drying (also household wise) i.e. for a too
long period too hot; washing very seldom causes shrinkage.
Applications
Blue jeans are still an unchanged part of the leisure and casual wardrobe of the majority
of the EU population. Even the classical function as workwear, however, is still important,
although partly replaced by coveralls.
Main suppliers in
order of
importance
Leading countries supplying EU imports (size-ranked in terms of volume) were in 2003:
Italy, Belgium, Turkey, Tunisia, Germany, Bangladesh, The Netherlands, Morocco and
Pakistan. Imports from the five leading suppliers decreased compared with 2002.
Imports include the so-called re-exports, which explains the positions of Italy, Belgium,
Germany and The Netherlands. Fast growing imports came, among other countries, from
Bangladesh, Romania and Egypt.
Market structure
The renewed popularity of blue jeans led to increased consumption in the period 20012004. For the coming years, a stable or slight increase is expected in all major EU
countries, even in countries with decreasing clothing consumption.
Brand names
(not exhaustive)
Leading brand names are among many others Levi’s, Wrangler, Lee, Diesel, Pepe,
Mustang. In the higher segments also designer names like Joop!, Calvin Klein, Armani
etc. are used.
All important retail channels have private label jeans in their assortment, like Hennes &
Mauritz, WE, C&A, Marks & Spencers etc.
Packing
Jeans are normally purchased container-wise and are packed in boxes, depending on the
buyer’s wishes, of 25-30 jeans in a box and 10-12 jeans in a recyclable or biodegradable
plastic bag. Total weight per box may not exceed 25 kg. The packing bag should be
marked with the green dot label for Germany.
Note: German buyers have the right according to domestic law to claim back a certain %
of the FOB value if jeans are not supplied in this way.
Prices
Prices depend on the quality of the fabrics and eventual finishing or brand. An acceptable
CFR price for a basic 5 pocket-1x washed-brandless jeans is € 8-9.
Environmental
influences
These influences are strongly increasing due to the awareness of buyers, end consumers,
company regulations and domestic legislation. According to the criteria of EC Directives
67/548 and 76/769 and their updates, several dyestuffs are classified as carcinogenic,
sensitive or allergy causing and are forbidden. Press buttons, zip fasteners etc., which
come into contact with the human skin for a longer period must not release more than
0.5 µg nickel per cm² per week. CBI’s AccessGuide can provide detailed information.
How to improve
quality
The requirements for jeans are minimum requirements. Advice for stitching: to avoid
puckering, avoid blunt needles, apply the correct thread tension on the operating
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machines, avoid leakage of machinery. Stay in close contact with the fabric supplier to
avoid use of wrong fabrics. Laying of fabrics: make sure the patterns are laid in one
direction to avoid colour differences and all elements come from the same lot to avoid
colour differences after washing. Cutting: to avoid delay and quality decrease in
production, make sure patterns are perfect.
PRODUCT PROFILE: T-SHIRTS
Naming
The traditional cotton T-shirt derived its name from the form of the shirt including the
(short) set-in sleeves and high round neck forming a T-shape. The fabrics used were
(weft) jerseys or single knits.
Market
requirements
Just like for other outerwear articles, there are no general (EU) standards for T-shirts.
Most of the importers work with certain minimum requirements relating to materials and
manufacturing. The minimum standard and the test method are described for fabrics and
threads. For example: maximum shrinkage of 6% and max. elongation of 2% (ISO
3759, 5077 and 6330), just like colour fastness to light, washing etc. as well as
eventually to rubbing printed materials.
For example, a description of manufacturing requirements can include among others: a
minimum stitch density 5 stitches per cm. A special factor can be the minimum neck
opening (stretched): up to and including size 92: 54 cm; from size 92 up to and
including 140: 56 cm; larger sizes: 60 cm. Neck openings can be reduced by using Lycra
ribbing.
Styling
requirements
The basic T-shirt in uni-colour is, with or without pocket, still one of the popular items,
thanks to its multi-functionality.
Varieties in necks are, besides the high round neck, among others V-neck, (low round)
boot neck, turtleneck, polo neck or slit neckline with buttons. Short or long sleeves or
without sleeves (singlets). Besides a variety in uni-colours, also printed (including
slogan, cartoon portraits, names etc.) or embroidered shirts are required, just like
horizontal stripes in various widths (bi-coloured or multi-coloured).
For many purposes, oversized T-shirts are preferred by European importers and
consumers with the exception of the fashionable fitted T-shirt for young people and
underwear.
Wearing
properties
Sizes
In general the sizes XS, S, M, X , XL and XXL are used for men and for women, whether
or not combined with the corresponding standard outerwear sizes. For children’s T-shirts,
standard outerwear sizes are used.
Labelling
Labelling indicating care instructions has to be affixed according to the international
symbols. Maximum washing temperature in ºC, do not use chlorine-based bleach, ironing
at desired sole-plate temperature, dry cleaning circle and tumble drying have to be
mentioned on a label, besides size and fibre content.
Maintenance and
durability
Wash and care instructions are required as well as the label indicating the country of
origin. Most claims arise from the incorrect appliance of the wash and care instructions.
It is advisable to indicate in your care label only 60º C for washing of white and 40º C for
washing of colours, in order to avoid claim discussions.
Applications
T-shirts can be used for many purposes. Functions vary from outerwear especially in
summer months, underwear especially in winter months, part of a sport-outfit to
nightwear. Promotional aspects are also important from high (image wear) to low (usage
for one event) quality.
Main suppliers in
order of
importance
The 12 leading countries supplying EU imports (in terms of volume) were in 2003:
Bangladesh, Turkey, Germany, India, Morocco, Belgium, Portugal, Mauritius, Greece, The
Netherlands, China and France.
Imports from India, Morocco and China fell compared with 2002, while imports from
Bangladesh, Turkey and Germany increased considerably and imports from the other
countries mentioned increased slightly. Germany, Belgium and The Netherlands play an
121
important role because of their transit-trade function.
Fast-growing imports came also from 9 others, including: Pakistan, Syria, Sri Lanka,
Indonesia, Macao, Honduras, Cambodia and Brazil.
Market structure
Consumption as well as imports has increased. T-shirts are supplied all year round.
Competition is strong, almost all manufacturers of underwear, outerwear and sportswear
have T-shirts in their assortment and retail organisations have private labels as well as
manufacturer’s brands in their assortment. The biggest consumption markets are
Germany, UK, France, Italy, Spain and The Netherlands.
Brand names
(not exhaustive)
Manufacturer’s brands from the sector jeans: Levi’s, Diesel;
bodyfashion: Schiesser, Hanes;
outerwear: Mexx, Benneton, Esprit;
sportswear: Nike, Adidas;
designers : Calvin Klein, DKNY;
private labels: Hennes & Mauritz, C&A, Marks & Spencer, Zara.
Packing
T-shirts are normally purchased container-wise and are packed in boxes depending on
the buyer’s wishes of 150 shirts in a box and 30 shirts in a recyclable or biodegradable
plastic bag. Total weight per box may not exceed 25 kg. The packing bag should be
marked with the green dot label for Germany. Note: German buyers have the right
according to domestic law to claim back a certain % of the FOB value if T-shirts are not
supplied in this way.
Prices
An acceptable CFR price for a white T-shirt, small sized, cotton 120/140 gr-m², single
knit, tube/combed and rib Lycra neckline is approx. € 2-3
Environmental
influences
company regulations and domestic legislation. According to the criteria of EC Directives
67/548 and 76/769 and their updates, several dyestuffs are classified as carcinogenic,
sensitive or allergy causing and are forbidden. Press buttons, zip fasteners etc., which
come into contact with the human skin for a longer period must not release more than
0.5 µg nickel per cm² per week. CBI’s AccessGuide can provide detailed information.
How to improve
quality
The requirements for T-shirts are minimum requirements. Advice for stitching: to avoid
puckering, avoid blunt needles, apply the correct thread tension on the operating
machines, avoid leakage of machinery. Stay in close contact with the fabric supplier to
avoid use of wrong fabrics. Laying of fabrics: make sure the patterns are laid in one
direction to avoid colour differences. Cutting: to avoid delay and quality decrease in
production, make sure patterns are perfect. The origin of many problems (shrinking etc.)
are caused by too great tension on knitting machines and on sewing machines, but can
be avoided by relaxed layering.
PRODUCT PROFILE: BOMBER AND OTHER FLIGHT JACKETS
Naming
The bomber jacket is a waist-length jacket, sometimes made of leather, worn by
commercial airline pilots. Other names are aviator jacket, battle jacket or flight jacket.
This jacket style was first worn as part of uniform by US Army pilots in World War II and
was popular in the 1940s and 1950s. The quality of leather during this period was low
and the number of colours was very limited, mainly black and brown.
The bomber was adapted for sportswear in the 1960s, mainly in suede and nylon. The
look of a (leather) bomber jacket is still quite distinctive today, and it continues to create
a unique image for the wearer.
Market
requirements
As for other outerwear articles, there are no general standards for leather garments.
Most of the importers work with certain minimum requirements relating to materials and
manufacturing. The minimum standard and the test method are described for materials
and manufacturing. For example: colour fastness (change: EN ISO 105-A02, staining EN
ISO 105-A03, light EN ISO 105-B02, dry cleaning leather IUF/434, water spotting leather
IUF/420, rubbing leather IUF/450).
For example, a description of manufacturing requirements can include among others:
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tear resistance of leather (IUP 8), minimum seam allowances for pressed open seams,
criteria for sewing of fastenings, hems, pockets, collars, waistbands, linings, usage of
yarns (monofilament is not allowed) can be part of the requirements.
Styling
requirements
Since the early 1980s, the bomber jacket has been made in a variety of styles. The
classic version was the B-3 bomber jackets, followed by A-2 and RAF Irvin jackets and
many other types.
The classic B-3 sheepskin is tanned from thick nappa leather, all-natural sheep fur,
leather welted seams, brass zipper, buckled collar, waist-adjustment straps and either or
not two front hand warmer pockets. The RAF Irvin jacket has, other than B-3, no
contrast colour patches and standard front pockets for the hands, while the classic A-2
features front cargo pockets, snap-down collar, stitched-down epaulets, brass zippers,
one-piece back and sleeves and inside pocket.
The A-2 has been modified for women (shorter sleeves and body length) and children.
The major colour is brown.
Already in the sixties there was an updated and stylised version of the bomber jacket
made from pig suede, with rib-knit cuffs, waist, collar lining, inside chest pocket and
nylon lined raglan sleeves.
The variety of colours covers brown, navy, green, black etc.
Wearing
properties
Leather flight jackets are mainly worn in winter months, while the suede jacket can be
worn in three seasons.
Sizes
In general, standard outerwear sizes are used for men, women and children. Sometimes
the sizes XS, S, M, X , XL and XXL are used for men and for women. A comparison
between these sizes is given in the chapter ‘Size marking’ of this Survey.
Labelling
Basic information like brand name and size are sewn in the garment. Other consumer
information like materials used, leather garment care etc. can be affixed. Leather
garment care gives information like storage, drying, cleaning, advice to prevent damage.
Materials
The original B-3 and RAF jackets are made from sheepskin and the A-2 from naked
goatskin leather, but also from lambskin (sometimes antiqued to give it a look of aging),
lightweight cow and horsehide but also from the lighter kangaroo hide. Pig suede is used
for (sports) jackets.
Maintenance and
durability
Instructions about cleaning or possibly washing are required, just like pre-treatment and
other advice about the use of the garment. Most claims arise from the incorrect
appliance of the cleaning instructions.
It is advisable to indicate ”leather cleaners and conditioners only” on your care label, in
order to avoid claim discussions.
Applications
Bombers or other flight jackets made of various kinds of leather are used in the cold
winter months.
The protective function applies much less to suede jackets. These can be worn during
several seasons.
Main suppliers in
order of
importance
Leading countries supplying EU imports (in terms of value) were in 2003: China, India,
Turkey, Pakistan, Germany, Italy, France, The Netherlands, Spain, Belgium, Switzerland
and Romania. Imports from all countries mentioned decreased, except Switzerland and
The Netherlands. Germany, Belgium and The Netherlands play an important role because
of their transit-trade function.
Market structure
Consumption as well as imports decreased. Competition is strong, many manufacturers
of outerwear and sportswear have jackets in their assortment and retail organisations
have private labels as well as manufacturer’s brands in their assortment.
The biggest consumption markets are Germany, Italy, UK, France and Spain, of which
Germany showed the biggest fall in the period 2002-2004.
Brand names
(not exhaustive)
Manufacturer’s brands from the sector leather garments: Arma, Forster, Heltons, Jekel,
JoJo, Mauritius, Redskins, Trapper etc.;
from the sector outerwear: Timberland, Diesel, Marlboro Classic;
private labels: C&A, Marks & Spencer, We etc.
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Packing
Leather jackets are first individually placed in ventilated bags and then packed in a
cardboard box containing several items. The box is wrapped in a plastic foil and put into
a waterproof textile bag. Labels on imported packing are mainly in English.
Prices
Consumer prices including VAT in the medium segment are: leather (bomber) jackets €
130-150; suede jackets € 110-130.
Environmental
influences
company regulations and domestic legislation. Make sure, when your products are
supplied to your importer, that they are accompanied by an “AZO safe” declaration. This
means that the dyes used for the leather have been tested by an accredited test institute
and that no hazardous substances according to the Commodity Acts in Germany, The
Netherlands and France, were found in the dyes.
According to the criteria of EC Directives 67/548 and their updates, several dyestuffs are
classified as carcinogenic, sensitive or allergy causing and are forbidden. Press buttons,
zip fasteners etc., which come into contact with the human skin for a longer period must
not release more than 0.5 µg nickel per cm² per week.
How to improve
quality
Never stretch a skin to produce a bigger yield. If this is done, the parts will shrink back
to their original shapes. As a result, the pattern parts will also shrink back to their
original shapes. Consequently, the pattern parts will not easily fit together. The result
will be an ill-fitting, poorly shaped garment.
Seams and hems must be glued with a good quality of leather glue which does not
penetrate through the leather.
Minimum one spare button and/or snap fastener of each size has to be attached.
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11
INTERNAL ANALYSIS: COMPANY AUDIT
It is one thing to discover attractive opportunities in the EU; it is another to possess the
necessary competencies to succeed in converting these opportunities into business.
A (potential) customer analysis, a competitor analysis and a (company) self-analysis have to be
made. The internal or self-analysis is an internally focused examination of a manufacturer’s
strengths and weaknesses.
These strengths and weaknesses indicate how well the company can seize opportunities and
avoid harm from threats in the environment. The competitive strength of the company has to
be measured in relation to the other suppliers on the market, just like customers’ attitude to
the company and to the other suppliers, as can be illustrated below. Competitors and customers
(buyers) have to be considered in the internal analysis because a manufacturer’s strengths and
weaknesses are defined as its capabilities relative to them.
Company
Competitors
Customers
The most critical aspect of the internal analysis for an outerwear manufacturer is to determine
his unique capabilities. If it has a thorough understanding of its unique capabilities, the
company can invest in opportunities that exploit its strength and avoid those that emphasize its
weaknesses. These analyses are focused on the strategic direction that competitors and
customers are likely to pursue and on their ability to successfully implement their strategy. By
understanding competitors in depth, a manufacturer can develop a strategy to compete
effectively against them now and improve his ability to anticipate competitors’ future actions.
Understanding of customer requirements derived from customer strategy is of great
significance, not only with respect to the present order but also and more particularly to any
future orders placed.
Each (potential) exporting company needs to review its manufacturing, logistical, marketing,
financial and organisational competencies. This assessment gives an overview of its strengths
and weaknesses, from which a distinctive and, more important, a competitive advantage can be
derived.
11.1
Manufacturing
Elements to be assessed include product characteristics, production facilities, production process,
production capacity, production flexibility, quality and service. These aspects have to be compared
with major competitors.
Production facilities
Important differences in equipment exist for manufacturing woven garments and for knitwear
(flat or circular knitted), while special equipment can sometimes be needed for specific products
or treatments (printing, dyeing, finishing, stonewashing etc.).
Sometimes, the customer will send a buyer or a representative to the supplier to visit the mill
where the products in question are or may be manufactured, in order to undertake a supplier’s
audit and/or a quality control audit. A supplier’s audit gives a description of the type of
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products, number, type and age of the knitting, cutting and sewing machines. A quality control
audit implies a description of the control procedures including employees, laboratory, system,
packing and storage.
Most buyers require certain minimum standards, which also guarantee an acceptable quality
level. Buyers in the woven sector and in the flat knitting sector are more interested in the
technical infrastructure of their suppliers than buyers in the circular knitted sector. In the latter
case, buyers are more concerned about the continuity and fastness of the dyeing process and
the competence of the technicians. It has to be noted that the latest high-tech equipment is not
necessarily a guarantee for flexibility, quality or for reducing production time.
Production process
This process starts at the availability of clothing fabrics and of linings, haberdashery, trimmings
etc., except when manufacturing is limited to CMT activities, and ends with special treatments
after manufacturing.
Buying of fabrics made abroad by producers, who are exporting on other than a CMT basis, can
confront buyers with long distances, minimum order sizes, the risk of delay in delivery times
etc., while lead times are shrinking world-wide in the clothing market. The traditional twoseason cycle has broken down, and design, fabric and colour changes are being made more
frequently. The majority of orders placed is urgent. This provides an opportunity for
manufacturers who can meet market demands for short lead times, short runs, quick response
and flexible manufacturing. Quick response capabilities also provide opportunities further
upstream. Clothing manufacturers able to offer quick response will themselves need a flexible
and responsive service from their fabric, yarn and other component suppliers and dyers and
finishers.
Production capacity
Selling a product internationally (as well as domestically) requires the capacity to produce or
manufacture the product. The company has to possess the space and equipment needed to
manufacture for the specific countries to which it is selling (they have their own product
standards and regulations) and will eventually require a minimum order from the customer(s).
If the company is already selling domestically, it is necessary to investigate if the production
capacity to handle and store additional orders is available. Expanding into the international
marketplace will result in a higher number of units to manufacture. The exporter has to ask
himself if this increase in production will affect quality of output.
Quality
The buyers prescribe the functional and intrinsic quality of the products. ISO 9000 norms or other
quality standards of the specific countries need to be adopted by the manufacturer for long-term
growth in the market. There are many dyes, metals and other substances in fabrics, buttons etc.,
which are banned (or allowed only to a certain amount) in the EU and are directly linked to the
parameters of performance and functional quality. Quality is an essential prerequisite being taken
for granted. Without ensuring quality, there is no likelihood of entry or acceptance on the
market(s).
Technology
An efficient information technology system is one of the important features for suppliers when
the variety of products and the need for communication increase. The link between the design
department and the production unit has become extremely important (Computer Aided Design
systems). To achieve fast response to changing fashion, companies need access to a good CAD
system to keep them up-to-date on trends in the wider world. CAD enables designs and
patterns to be circulated from suppliers in the EU or elsewhere. CAD/CAM is also valuable in
reducing lead times.
A production plant, which is not properly equipped and does not have well-trained and skilled
middle management, will be unacceptable in the future.
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Service
To an importer, service aspects mean communication, reliability, product development support,
business ethics, ease of dealing, quick settlement of claims and speed. Very often, a much valued
service aspect is uninterrupted and factually correct information flows.
Some examples of critical questions on production:
- Is there enough spare capacity for extra orders?
- Is there any flexibility in production?
- Can I make the new items with the current machinery?
- Is extra skilled workforce required?
- What will be the cost of setting up additional production capacity?
- Will export order hinder order for the domestic market?
- Can I get enough yarns, fabrics or leather to meet the extra capacity?
- Are there fluctuations in the annual workload for staff and capacity of suppliers?
- Can I guarantee a consistent supply and get all raw materials in time?
- Is the factory clean and tidy enough for the workers and are factory and machinery
representative enough for foreign inspectors/buyers?
- Do I have enough storage facilities for extra production for foreign markets?
11.2
Logistics
The logistic concepts aim at having the right goods at the right time, in the right volumes at the
right place and all that with a minimum of costs. Particularly for fashion articles, that is of the
upmost importance, just like regularity in deliveries and there certainly may not be any delays.
The clothing chain goes from yarn to weaving to textile finishing to clothing production and to
distribution and selling. This whole cycle (theoretically) lasts 66 weeks (waiting for orders,
waiting for production schemes and waiting times between stages of manufacturing included).
The consequences of such a long cycle are:
• too many products and capital bound in stocks;
• the possibility of price decreases in the meantime; and
• the missing of sales because the right products are not available.
The cycle in fact consists of only 11 weeks of production; the rest of the time is reserved for
storing/waiting/transport. By shortening this cycle, for instance by a faster exchange of
information, it should be possible to follow trends more quickly.
Retailers in clothing are often confronted with variation in clothing behaviour and with rapidly
changing trends in fashion. Therefore retailers demand shorter delivery times from the clothing
producers, so that especially for high-fashion products this is essential. In general, the retailers in
the clothing branch try to shift the risks of market fluctuations to the producers by ordering small
series. Because of the tendency to order smaller series, the order frequency is increasing and
retailers tend to use more than one supplier. The retailers also tend to have a greater influence
on production and transport and mostly have their own designers. The number of rush orders is
also increasing.
That requires more flexibility and a well-organised logistic organisation from the side of the
producers. Automatisation is one of the answers for production firms to fulfil the requirements of
the logistic process. It more often takes place in activities with a relatively high know-how
content (like designing, cutting, etc.). There is not so much automatisation in the more simple
activities. Most of these activities concern sewing and the moving of materials/products.
Introduction of new technologies in the clothing industry is a slow process and does not take
place in a great number of companies. Besides, new technologies and working methods should be
accomplished by new marketing concepts.
Usage of barcode systems by retail organisations gives quick sales information and is
accompanied by electronic order systems, Just-In-Time (JIT) methods and direct product
profitability (DPP). DPP means direct calculation of all retailing costs, amongst which alternative
costs (costs which are caused by untimely delivery of articles, costs because of marking down
and sales bargains, etc.).
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Some examples of critical questions on logistics:
- How often are you able to deliver to your target markets?
- What lot sizes do you generally produce or are you able to produce?
- What combinations of items can be made to different customers?
- How to shorten the physical distance (if any) between factory and harbour/port?
- Do you have access to ports with well-established shipping channels to the EU?
- What are the typical costs of transportation, insurance, document handling?
11.3
Design
Good design and product innovation can help differentiate products, establish consumer loyalty
and trust and, in many cases, allow products to command a price premium. Design is the biggest
element of value addition. Design cannot originate in a vacuum. Poor or inadequate designs in
export policy, can make or mar the process of successful marketing. Lack of sufficient
understanding of physiognomy, body sizes, life styles, activities and climatic conditions result in
incomplete design appreciation. Designers need considerable exposure to the target market
before the design process can succeed. The customer-design interface is a matter of deep
understanding of the country and the people. Another area is using the aspect of design
capabilities and creativity to explore product development as an extra unique selling point (USP),
which results in long-term relationships and differential advantage.
There is a lot of brand and design imitation, especially for mass products like T-shirts, jeans etc.
However, one of the results of the GATT Uruguay Round Agreement was the Trade Related
Aspects of Intellectual Property Rights. The objectives of this agreement, called TRIPS, are to
implement standards of protection for patents, trademarks, copyrights and trade secrets,
including enforcement measures and dispute settlement provisions.
11.4 Marketing and sales
Perhaps the most exacting aspect of exporting, even for the established exporting company, is
that of ensuring optimal exposure to, and communication with, decision-making personnel in a
client company, often thousands of miles away.
The best method of achieving this objective is, unquestionably, to have an able company
representative in the country or geographical area concerned. Such an individual must be
proficient in the language of the target market. Ideally, he or she will have a profound technical
knowledge of, and practical experience with, the various qualities of household and furnishing
textiles items. He/she must also be conversant with the technical implications of provisions in
trade contracts, and should also be able to negotiate confirmed contracts swiftly on behalf of
the exporter and should have access to rapid communication facilities.
Exporters able to make firm contracts rapidly have an unquestioned advantage on the market.
Alternatively, a number of manufacturers could share the services of a similarly qualified
individual or a manufacturing company could hire a local agent on the market place. Although
these alternatives would be cheaper, their impact on the market would be weaker.
Established exporters also find it productive to arrange visits to the market by a team, usually
comprising a senior technical and a commercial executive. Whether the objective is to
strengthen existing contacts with customers, or to seek new ones, careful research should be
undertaken before the schedules for such visits are set; these schedules should be confirmed in
advance with the contacts concerned.
Some developing countries use the commercial section of their embassies in the main importing
countries to circulate lists of offers. While such activities are productive in many ways, they can
be converted into sales only if an inquiry can be swiftly responded to. Furthermore, although
containing some data on prices and quality aspects, these lists do not provide sufficient
information, nor do they give a strong enough basis for an importer to confirm a contract unless
successful business dealings with a listed company have already been established.
Clothing trade fairs are held in many EU countries (see appendix 3.4). Their role is limited in
the case of booking direct orders, but fairs provide an excellent way to orient on material and
fashion developments and to make personal contacts with potential buyers. Individual
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participation in international trade fairs may be a useful sales promotion tool, but besides being
a heavy financial involvement it is a complex operation which needs in-depth planning.
Product/company press releases, direct mail, Internet are all used effectively in trade promotion
by exporters. For the new market entrant, however, specialist advice is often necessary to
ensure that the information to be circulated is complete, that the media chosen are the most
cost effective means of reaching the target audience, and that the timing of the promotional
effort is correct. Above all, it is essential that promotion-induced inquiries be immediately dealt
with locally by a representative. Refer to appendix 3.5 of this survey for a list of leading trade
magazines in the clothing sector.
As an additional aid to marketing, documents sent by direct mail can be accompanied by
samples. Mailing of this kind to prospective customers, well before a proposed visit from a
senior selling team, can be highly effective. While not a complete guarantee of quality, the
sample, if it is of good quality, will inspire confidence in prospective buyers. It can also be
useful in weeding out merchants who are simply not in the market for those products or those
qualities. In fact no personal sales visit should be attempted without an adequate sample on
offer.
All the above points of advice can be considered, varying from brief (for low-service producers)
to extended (for own brand producers). Implementation depends on internal aspects like size
and structure of the organisation. However, information about potential sales channels on
country level (as discussed in chapter 9) as well as on company level (own research) is
important for all types of companies.
Some examples of critical questions on marketing and sales:
- Who will be (full-time) responsible for managing the export sales and marketing function?
- How well is he/she qualified to do the job?
- What sort of additional training is needed (strategic/sales skills/language/technical/trends)?
- Which persons do you know in the target markets?
- What sort of procedures will be needed to carry on your usual business when visiting
the target markets?
- How do you feel about having to travel a great deal and spend considerable periods
away from home?
- Are you open to other cultures with business practices which are quite different to yours?
- What sort of additional management information systems will be needed in order to
monitor the new overseas target markets?
- What sort of promotional material is available for overseas markets?
11.5
Financing
The following aspects can be considered when the financial capabilities of an exporting company
can be analysed: capital investment, the stage of the production process and complementary
activities, and the financial settlement of the contract.
Some parts of the clothing industry are capital-intensive and regular investment in new
equipment is required to ensure competitiveness. This is particularly the case in those parts of
the industry, which are highly automated and produce long runs of relatively undifferentiated
products. Investment levels are high in the knitwear sector, particularly in the case of complete
garment knitting technology.
Minimal investments are required for exporters in the case of CMT. In this case, financing is
limited to the production process because the importer supplies the material to be processed.
The next stage in the manufacturing company’s production process is subcontracting. Herewith,
investment is extended because the importer instructs the subcontractor to source (and
finance) the material itself.
The next stage can be reached when design and marketing at either end of the production
process can be delegated to the subcontractor. Maximal investments are required in the case of
exploiting and exporting a collection under an international brand name.
Penalties for late deliveries may be included in the contracts for all types of exporting
manufacturers.
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Some examples of critical questions on financing:
- What do you need to invest in order to get a clear idea of your export opportunities?
- How much would be the cost for additional resources (machinery/staff etc.)?
- How can you fund these extra costs?
- Can you invest regularly in new equipment?
which is required to ensure competitiveness?
- Is capital necessary for financing the operation?
- Any funds available?
- How much would the export sales and marketing costs be and how will this be funded?
11.6
In-house capabilities
Commitment to export
It is important to consider whether the company has staff who are able to sell and develop an
international business. Having in-house staff with international experience can facilitate your
entry to the international marketplace. If you do not have such a person, you can either hire
one or train existing staff to assume the responsibilities. The company should be able to
generate the physical and administrative infrastructure to deal with increased activities
generated by exporting - not only in dealing with orders but also with processing Customs and
shipping documentation. If this type of infrastructure is limited, then it is a weakness in
developing sustained export activities.
Export experiences
It is important to learn from past experiences. If the company has tried but failed to penetrate
an export market previously, this should be analysed to determine where things went wrong.
Language skills
Besides knowing about export rules and regulations, it would help your company considerably if
your employees were also knowledgeable of your target market's language and culture. Though
English is accepted as the language of business, having the ability to communicate in a
customer's native language will give you an advantage over your competitors. Although most
trade partners of European companies will not be English native speakers themselves, the vast
majority speaks English fluently. In almost all cases, foreign language skills, particularly
English, are essential when entering the European market.
On the few occasions when correspondence and documents in English will not suffice, exporters
can usually find sources of translation capabilities for the more prevalent European languages.
Language capability can be advantageous, since it facilitates cultural and social relationships.
Training
Human resources development of top and medium-management level may be necessary to
optimise the export marketing policy of a company. The following aspects can be considered if
additional training is desirable:
• product development, product improvement, efficiency and/or effective measures in
production and communication with buyers regarding all technical aspects, including
quality control aspects;
• know-how (including costs aspects) about the required Customs formalities, shipping
facilities and packaging to guarantee delivery within contractual time requirements;
• financial capabilities including contract parts like delivery and payment procedures;
• export market orientation and export marketing know-how;
• communication tools, including control of the language as desired by the buyer, by
middle and top management.
Recapitulation of the internal analysis
The lowest mode in the added value chain is CMT. The client, often an EU manufacturer, provides
fabrics and trim to the manufacturer and for a certain fee the producer make garments according
to the requirements. For that reason, the added value is rather limited. Producing an own
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collection with an own brand name is the highest mode in the added value chain. Other
possibilities are to be only a sub-contractor to a clothing chain or department store e.g. to
produce private labels or produce partly for such a store and also produce - on a contract basisfor a fashion house. Other combinations are also possible.
Depending on the value that a company and product adds to the chain, the choice can be made
for one of the market entry modes. Differences between each mode related to added value are
given in the matrix below.
Manufacturing
Materials
Logistics
Design
Marketing and sales
Financing
Capabilities
CMT
producer
High
Low
Low
Low
Low
Low
Low
FOB producer
High
Medium
Medium
Low
Low
Medium
Medium
Private label
producer
High
High
Medium
Medium
Low
Medium
Medium
Own brand
producer
High
High
High
High
High
High
High
This helps to determine which type of strategic alliance may be required. Look for partners who
complement your company’s core competence. For instance: if ample production capacity is
available, then look for a partner with a good product to manufacture. If the added value in
design is low, because there is no design capacity, look for a creative partner. If added value in
logistics is low, look for a partner with a good distribution infrastructure. The process of decision
making, based on external and internal analyses, will be discussed in the next chapter.
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12
DECISION MAKING
12.1
SWOT and analysis
After the External (Market Audit) and Internal analyses (Company Audit) have been made,
the exporter can define his position in the EU outerwear market and assess which areas in
his company need improvement in order to deal with competitors in his target markets. A
technique to bring order into chaos, is to summarise the findings from Chapters 11 and 12
into a SWOT matrix, taking the following two points of view into consideration:
• Opportunities and threats in the marketplace
Your external analysis has given you an idea which EU countries to approach. It is now time
to start summarising all opportunities and threats you have found on matters such as: market
development, your target group, market niches, trends in fashion and in design, production
trends, outerwear trade flows, price developments, expected profitability, possible risks, nontariff barriers (e.g. environmental issues) or any other relevant topic. These summary
conclusions should provide you with enough insight into the opportunities and threats in the
EU market.
• Your own strengths and weaknesses
The internal analysis you have done should provide you with insight into your own
strengths and weaknesses. Topics to be assessed include: your specialty, your product
range, design capabilities, product standards, production capacity, flexibility, logistics,
sales force, financial strengths (e.g. required investment), as well as the capabilities,
experience and commitment of your company to approach overseas markets.
An example of a SWOT matrix is given below. This only serves as an example, as
circumstances vary by sort and size of company, the target countries, product range etc. As an
exporter, you will need to do your own SWOT analysis, tailored to your own specific situation.
Opportunities
Growing demand in Spain and Slovenia
Developments in EU production
Non-tariff trade barriers will play a
stronger role
Threats
Falling prices caused by high competition
from Asian countries
Increasing concentration of buying power
Strengths
Regular and sufficient supply of standard
quality fabrics
Modern production facilities
Zero import duty
Export experience to Germany
Short distance to EU markets
Weaknesses
Lack of R&D knowledge
Less innovative design capabilities
Own brand not available
Lack of marketing knowledge
Relatively high labour costs
Try to optimise your strengths and see how you could overcome weaknesses in the future,
as well as how to deal with threats in the market place. The result of your SWOT analysis,
the possibility to overcome your weaknesses and the degree of risk when entering target
markets, are crucial for your decision on whether or not to start exporting to the EU.
A start, which involves limited risks and is chosen by the majority of starting exporters in
developing countries, is to try to acquire fixed orders for products specified by the client. The
latter is at home in his market and knows all the “ins and outs” of his permanently changing
market place.
Exporters in the outerwear sector are confronted with many aspects like sizing, packaging,
environmental aspects, resulting in a lot of technical requirements, added to which are aspects
of design, fashionability, comfort and market developments etc. For that reason, co-operation in
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a variety of forms between importer and exporter can be necessary. The most important
determining factors for exporters operating on this basis are the combination of price, product
quality and reliability of deliveries and delivery times.
Some experts are of the opinion that instead of concentrating on increasing volumes,
developing countries should shift production profiles to higher-value products. Another point of
view, however, suggests to specialise based on experience and to try to obtain a higher degree
of efficiency in production. It is evident that both production strategies have to be combined
with the recommendations mentioned earlier.
12.2
Strategic options and objectives
Your SWOT analysis should give you enough confidence to know if you are able to export to
the EU outerwear target markets armed with more opportunities than threats and if your
company is strong enough to start this venture. In order to export to the EU market:
• You know if and how your specialty could appeal to your target group and how to
adapt or restyle your product range for export markets.
• You may decide to concentrate on a few growing target markets, especially if your
company is new to exporting. You can divide markets into:
- Primary markets, where you can expect a relative fast pay-back against your
investment at a relatively low risk. These markets tend to be those with easier access.
You should approach these in the first instance. Mistakes made here are less costly than
in secondary or tertiary (i.e. third choice) markets.
- Secondary markets expose your company to a greater risk. However, if you have
enough resources and approach them cautiously, they are still capable of generating
profit. You could target these markets after you gained more experience in the EU.
- Tertiary markets may be interesting to approach actively in the future. For the time
being, however, you prefer an indirect approach e.g. to produce for EU manufacturers.
• You know the best sales channels when entering the chosen markets.
• You know the risks and critical conditions and what strategy and tactics are required
to successfully tackle them and take them up the challenge.
Once you are confident about your outerwear range for export markets, establishing or
expanding your export business should not harm your current business. In other words, does
an export venture fit into your company's objectives? In order to answer this question, you
will have to ask yourself:
•
•
•
What, apart from financial profits, does your company wants to gain from exporting?
Is the export objective clear, measurable and consistent with other company objectives?
Will the export business give you a satisfactory return on investment? Maybe your
investment would be better used for expanding business in your domestic market.
Companies can waste a lot of time and money trying to enter markets which do not have
enough potential or are not suitable for their product. So try first to become familiar with
the EU market, set your priorities to a few markets, market segments, focus on a few specific
products and prepare yourself well in order to be successful in export marketing.
Once you have made a positive decision, you will be ready to formulate your objectives in a
Market Entry Strategy (MES) for your target markets and plan your activities in an Export
Marketing Plan (EMP).
133
Step 1
- External analysis
(Market audit)
Step 2
Step 3
SWOT analysis
Decision making &
formulating objectives
Step 4
Marketing Actions
MES
EMP
Step 1
- Internal analysis
(Comapny audit)
Evaluation/feedback
Once you have made a positive decision, you will be ready to formulate your objectives in a
Market Entry Strategy (MES) for your target markets and plan your activities in an Export
Marketing Plan (EMP). Together with the marketing actions or marketing tools, covered in
Chapter 13, you should now be able to draw up the MES and EMP. General export marketing
information can be found in CBI's Export Planner and the interactive tool on the CBI website
‘Export marketing plan’. General information and methodologies, for doing your own market
research, can be found in CBI’s manual 'Your Guide to Market Research'.
134
13
EXPORT MARKETING
This chapter will discuss which marketing tools (product, price and promotion) can be used to
build up successful business relationships, according to the following scheme.
Matching products and the product range (specifying range, width and depth, specifying
the product characteristics, packaging design and seasonal influences)
Building up a relationship with a suitable trading partner
Drawing up a general or a specific offer
Handling the contract, divided into contract terms and contract fulfilment
Sales promotion advertising and communication, sales organisation and participation in
trade fairs.
13.1
Matching products and the product range
A product range of a private label or own brand producer consists of several product groups
(range width), each with several different product items (range depth). One product can consist
of several executions.
Example:
A knitwear product group consists of T-shirts (range width). The products for sale have long
sleeves or short sleeves, round necks or V-necks or boat necks or polo necks with or without
hood etc. (range depth). The executions consist of different materials in weight and quality
of the items, several sizes, one or more colours, prints etc.
A manufacturer/supplier can only select a suitable business partner if he/she is fully aware of
exactly what range he/she can offer and the opposite is also valid: an importing business partner
has to know exactly which products or services are offered in order to select a business partner.
The product range of a CMT producer includes the services which can be derived from the
available production facilities, production process, production capacity, production flexibility and
the possibilities to buy fabrics, trims etc. according to the requirements of the business partner.
Specifying the product characteristics
Private label producers have to make a review of all the products they make, stating the
minimum requirements to which they are related, production capacity and packaging method.
The reviews must enable potential customers to make a brief appraisal of the complete product
range and production capacity; it must include minimum order quantity and the possibility for
additional orders.
The reviews must always be kept up-to-date. The products and the range should be flexible so
that adjustment and adaptation can be executed according to buyers’ wishes.
CMT and FOB producers should make a description of the type of products, number, the type and
age of the knitting, cutting and sewing machines, the number and skills level of employees etc.
Packaging design
The protective functions of packaging for shipment which require the packaging to ensure
minimal environmental damage have been described briefly in chapter 9.1.3 (including the
references to CBI’s AccessGuide and to ITC) and are valid for all types of producers.
Another aspect of packaging per item or items in the case of multi-packs includes an attractive
and sales promotion design but is only valid for own brand producers.
13.2
Building up a relationship with a suitable trading partner
Among the many potential customers, you must identify those who match your own company
profile and product range and are therefore most suitable for building up a relationship. At the
end of the identification phase, the supplier should have selected the names and addresses of
suitable (potential) trading partners.
135
Sources of information to contact are in the producer’s country:
the country of destination’s Chamber of Commerce for Foreign Trade, and/or
the Economic Affairs departments of the country of destination’s official representative
(Embassy or Consulate).
Sources of information to contact in the country of destination are:
Business Support Organisations (former Import Promotion Organisations)
Trade Associations (see appendix 3.3)
own country’s public and private trade promotion bodies
own country’s diplomatic and consulate representatives
Chambers of Commerce
trade fair organisers, through printed catalogues or websites (see appendix 3.4)
trade directories, like http://www.kompass.com or http://www.europages.com (see appendix
3.6);
consulting trade press (see appendix 3.5).
It has to be noted that many sources of information only answer written inquiries, while a detailed
inquiry improves the chances of precise identification.
Evaluate the received names and addresses, using the following criteria:
Is the importer active in the country you have selected?
Does the importer focus his activities on the corresponding, i.e. your, product groups?
In which market segment is the importer active?
Names of other suppliers to the importers?
Enough sound information about the reliability of this partner?
Check your potential buyers’ financial status credibility if possible, for instance credit rating
reports by Dunn and Bradstreet ( http://www.dnb.com), otherwise always demand a LC
(letter of credit).
Using these criteria, draw up a priority list of the contact addresses you have received.
13.3
Drawing up an offer
There are two kinds of offers: general and specific offers. The purpose of drawing up a general
offer is to make the first contact with potential trading partners with whom you, the supplier, are
not yet personally acquainted. A general offer consists of sending a short profile of your company
and a summary of your product range. In some cases it might be helpful to send a reference list
of existing customers (in countries other than the possible customer’s one!). Write a personal
letter, briefly introducing your company and what you have to offer.
A specific order is legally binding for a certain period of time. You must therefore be capable of
fulfilling the terms of contract. A specific offer only should be made up when the business partner
is known personally or after the initial contact has been made. A specific offer should consist of
two parts: a written offer and/or product samples. The written offer includes:
• Name of the person responsible in your company
• Exact description of the goods offered (referring to requirements)
• Price of the goods in the agreed currency offered in accordance with Incoterms
• Possible delivery date and terms of delivery and the validity date of the offer.
A written offer can be accompanied by product samples, otherwise the offer is formed by sending
product samples or yarns (in the case of knitwear) and fabric samples. While not a complete
guarantee of quality, the sample, if it is of good quality, will inspire confidence in prospective
buyers. It can also be useful in weeding out buyers who are simply not in the market for those
products or those qualities.
• Product samples must correspond exactly to the goods available for delivery. If they do
not, this may cause a lasting negative effect on business relations;
• State the treatment methods used, if possible provide a copy of your internationally
acknowledged inspection organisation.
136
Recommendable action for both kinds of offers:
• Send in advance a copy of the AWB # (Air Way Bill number) to the contact person.
• Make a telephone check (the human voice, if master of the language, is the best means
of communication) to ask whether the offer (and the samples, if applicable) has/have
arrived.
• Send samples free of charge, but it is common practice to ask for a reasonable payment
for size ranges and/or salesmen’s samples.
• An invitation to visit the company.
• A proposal could be made to visit the country of destination. In that case (if necessary)
an interpreter can be hired and your own consulate or other intermediaries can be asked
for assistance.
Communication by e-mail is an excellent tool, especially when a reaction will be executed within
24 hours. This is a very positive sustaining element towards buyers, making a reliable
impression and instilling confidence.
The most exacting aspect of exporting clothing, even for the established exporting company, is
that of ensuring optimal exposure to, and communication with, decision-making personnel in a
client company. The best method of achieving this objective is to have an able company
representative in the country concerned. Such an individual must be proficient in the language
of the target market. Ideally, he or she will have thorough technical knowledge of the
implications of provisions in trade contracts and should have access to rapid communication
facilities. A personal sales visit should be attempted, accompanied by an adequate sample of
the garments on offer.
13.4 Handling the contract
The contract is the starting point of trade, also for international business transactions. Around
the contract revolves a series of connecting but distinct relationships, including transport
arrangements, cargo insurance, Customs formalities and payment procedures. When handling
the contract, you should consider the terms and the fulfilment:
Contract terms:
Conclude the delivery terms according to the international guidelines (e.g. Incoterms).
Particularly when delivering for the first time, it is usual to deliver the goods on CFR or CIF basis
as agreed and payment by L/C. In the case of CFR, the insurance component is handled by the
importer in the EU, primarily to facilitate payment in the event of a claim.
Suppliers should be aware that failure to meet the specified delivery will usually result in
cancellation of the order negotiations based on claims for too-late delivery. The same procedure
can be expected in the case that products are not up to the stipulated standards of quality.
Penalties for late deliveries may be included in the contracts for all types of exporting
manufacturers, just like (in some cases) exclusivity claims.
Letters of credit, which offer basic protection to a developing country exporter, and bills of
lading, which serve as documents of title, a contract of carriage and a receipt of goods, are all
universally used in the clothing trade. In other cases, it has to be noticed that terms of payment
vary per country and are around 90 days or longer in Italy and Spain, which is much more
lengthy than in other major EU countries.
In many cases, the importation of clothing products is carried out on a CFR (cost and freight)
basis. Under these terms, the seller or exporter clears the goods for export, pays the freight
charges and delivers the goods on board ship. The risk passes to the buyer when the goods cross
the ship's rails in the port of departure. The seller undertakes to provide the buyer with a
negotiable bill of lading that can be endorsed to transfer ownership of the goods or pledge them
to a financing bank. The insurance component is handled by the importer in the EU, primarily to
facilitate payment in the event of a claim. Other conditions in use for ready-made garments are
CIF (cost, insurance and freight) and FOB (free on board). The delivery terms are laid down in
the so-called Incoterms 2000, established by the International Chamber of Commerce.
137
Contract fulfilment
Besides the general details in a contract like contract parties etc. and specific aspects like prices
agreed, there are six specific area of significance in the clothing contract itself:
1. Rules governing international trade in clothing: all contracts have to specify the country of
origin, quota category (if applicable), and commodity and product codes. These details will
facilitate administrative procedures at import destinations, in regard to controls
established under the WTO on quantities admissible into the EU and for each product
category.
2. Shipment date: it is imperative to the importer that availability dates are met, to ensure
that the goods can be sold or delivered in the time for which they have been planned.
3. (Minimum) quality requirements include materials used and methods of making. This
approach is necessary because of the direct correlation between material quality and the
quality of end products.
4. Size: the size specifications are usually included in the contract.
5. Packaging: since it is vital for packing details to be closely adhered to.
6. Payment methods and delivery terms: as discussed above. If you cannot comply with any
part of the agreement (e.g. delivery delays or quality problems), inform the customer
clearly and in good time.
Fulfilling the contract should have a high priority, particularly when delivering for the first time,
so procure the delivery documents on time. Comply strictly with all parts of the supply
agreement; co-operate on a partnership basis and seek a common solution, even if conflicts
arise. For a general and more extended description of methods of delivery and payment, we
refer to Incoterms 2000 (published by the International Chamber of Commerce) and CBI’s
Export Planner.
13.5
Sales organisation and promotion
The term “sales organisation” refers to the organisational system that carries out the sales of the
company’s products. A sales organisation consists of desk sales force (office staff) and a field
force (front liners). The scheme below gives a rather extended overview, which is however not
representative for low service producers and not even for SMEs, which offer more services to
their customers.
Activities of the desk sales force
include:

selling;

handling correspondence;

handling offers and orders;

issuing forwarding instructions;

issuing and checking invoices;

checking schedules;

keeping customers records;

expediting product samples;

keeping sales statistics;

evaluating markets;

updating on standards, and

intermediary for implementing
Field force includes:

selling;
visiting customers;
presenting new products;
discussing and implementing
campaigns;
discussing listings;
holding periodical reviews with
customers;
implementing selling prices, and
checking competitors’ advantages.
Sales promotion measures develop and expand customer relations, which obligate the selling
company to take good care of existing customers (continuity). This includes for example
expressions of thanks to business partners, regular updates on the product range; supplying
brochures of the product range may be useful for promoting sales just like keeping business
partners up-to-date on recent product developments. The consequences for production capacity
can be that, in some cases, the production capacity has to be increased for existing customers,
138
or the product range should be guided by demand and changes to the product range may
become necessary.
Advertising and communication
An overview of and general information about communication tools are described in CBI’s ‘Your
Image Builder’. In this chapter some specific items, valid for the outerwear market, will be
discussed.
Advertising in trade magazines
The number of important trade magazines with possibilities for advertising is rather limited.
Only one or two magazines can be mentioned for each major EU country, like Textil Wirttschaft
and Textil Mitteilungen in Germany, Textilia in The Netherlands, Journal de Textile in France etc.
Developing an original campaign is expensive and the effect of unrepeated advertisements is
limited. A list of trade magazines is given in appendix 3.5 of this survey.
Participation in trade fairs
Participation in national and international trade fairs may be a useful sales promotion tool in the
outerwear sector. A list of trade fairs is given in appendix 3.4 of this survey, of which the
German CPD fair is the leading one and has visitors (and exhibitors) from many other countries.
Besides a heavy financial involvement (travelling, accommodation, sampling etc.), trade fair
participation requires advance knowledge and a detailed survey because of its complex nature.
A detailed description of the several stages from selection to preparation, to participation in EU
trade fairs, including the follow-up can be found in CBI’s ‘Your Show Master’.
139
Appendix 1
DETAILED CLASSIFICATION OF OUTERWEAR
BY HS CODE
Chapter 61 applies only to made-up knitted or crocheted articles.
Chapter 62 applies only to made-up articles of any textile fabric other than wadding, excluding
knitted or crocheted articles.
HS Code
61.01.
10.10
10.90
20.10
20.90
30.10
30.90
90.10
90.90
61.02.
10.10
10.90
20.10
20.90
30.10
30.90
90.10
90.90
61.03.
11.00
12.00
19.00
21.00
22.00
23.00
29.00
31.00
32.00
33.00
39.00
41.10
41.90
Description
Men's or boys' overcoats, car-coats, capes, cloaks, anoraks (including ski-jackets),
windcheaters, wind-jackets and similar articles, knitted or crocheted, other than
those of heading no.61.03:
- Of wool or fine animal hair:
-- Overcoats, car coats, capes, cloaks and similar articles
-- Anoraks, (including ski-jackets), windcheaters, wind-jackets and similar articles
- Of cotton:
- Of man-made fibres:
- Of other textile materials:
Women's or girls' overcoats, car-coats, capes, cloaks, anoraks (including skijackets), windcheaters, wind-jackets and similar articles, knitted or crocheted,
other than those of heading no. 61.04:
- Of cotton:
- Of other textile materials
Men's or boys' suits, ensembles, jackets, blazers, trousers, bib and brace
overalls, breeches and shorts (other than swimwear), knitted or crocheted
- Suits:
-- Of wool or fine animal hair
-- Of synthetic fibres
-- Of other textile materials
- Ensembles:
-- Of cotton
- Jackets and blazers:
-- Of cotton
- Trousers, bib and brace overalls, breeches and shorts:
-- Of wool or fine animal hair:
--- Trousers and breeches
--- Bib and brace overalls and shorts
-- Of cotton:
140
42.10
42.90
43.10
43.90
49.10
49.91
49.99
61.04.
11.00
12.00
13.00
19.00
21.00
22.00
23.00
29.00
31.00
32.00
33.00
39.00
41.00
42.00
43.00
44.00
49.00
51.00
52.00
53.00
59.00
61.10
61.90
62.10
62.90
63.10
63.90
69.10
69.91
69.99
61.05.
10.00
20.10
20.90
90.10
90.90
61.06.
10.00
20.00
90.10
-- Of synthetic fibres:
--- Trousers and breeches of other textile materials
--- Bib and brace overalls and shorts of artificial fibres
--- Bib and brace overalls and shorts of other textile materials
Women's or girls' suits, ensembles, jackets, dresses, skirts, trousers, bib and
brace overalls, breeches and shorts (other than swimwear), knitted or crocheted
- Suits:
-- Of cotton
- Ensembles:
-- Of cotton
-- Of cotton
- Dresses:
-- Of cotton
-- Of artificial fibres
- Skirts and divided skirts:
-- Of cotton
-- Of cotton:
--- Trousers and breeches of other textile materials
---- Bib and brace overalls and shorts of artificial fibres
---- Bib and brace overalls and shorts of other textile materials
Men's or boys' shirts, knitted or crocheted:
- Of cotton
- Of synthetic fibres
- Of artificial fibres
- Of wool or fine animal hair
Women's or girls' blouses, shirts and shirt-blouses, knitted or crocheted:
- Of cotton
- Of man-made fibres
141
90.30
90.50
90.90
61.09.
10.00
90.10
90.30
90.90
61.10 .
11.10
11.30
11.90
12.10
12.90
19.10
19.90
20.10
20.91
20.99
30.10
30.91
30.99
90.10
90.90
61.11.
10.10
10.90
20.10
20.90
30.10
30.90
90.00
61.12.
11.00
12.00
19.00
20.00
- Of silk or silk waste
- Of flax or of ramie
T-shirts, singlets and other vests, knitted or crocheted:
- Of cotton
- Other
Jerseys, pullovers, cardigans, waistcoats and similar articles, knitted or crocheted:
- Of wool:
-- Jerseys and pullovers, containing at least 50% by weight of wool and weighing 600 gr.
or more per article
--- Men's or boys' jerseys, pullovers, waistcoats etc. (excluding at least 50% by weight of
wool)
--- Women's or girls' jerseys, pullovers, waistcoats etc. (excluding at least 50% by weight
of wool)
- Of cashmere hair:
--- Men's or boys' jerseys, pullovers, waistcoats etc.
--- Women's or girls' jerseys, pullovers, waistcoats etc.
- Of other animal hair
--- Men's or boys' jerseys, pullovers, waistcoats etc.
--- Women's or girls' jerseys, pullovers, waistcoats etc.
-- Lightweight fine knit roll, polo or turtleneck jumpers and pullovers of cotton:
-- Other jerseys etc. for:
--- Men or boys
--- Women or girls
-- Lightweight fine knit roll, polo or turtleneck jumpers and pullovers
-- Other:
--- Men or boys
--- Women or girls
- Of other textile materials:
-- Of flax or ramie
-- Other
Babies' garments and clothing accessories, knitted or crocheted:
-- Gloves, mittens and mitts
-- Other babies’ garments
- Of cotton
Track suits, ski suits and swimwear, knitted or crocheted:
- Track suits:
-- Of cotton
- Ski suits
61.13.
Garments rubberised, impregnated etc.:
00.10 - Garments rubberised
00.90 - Garments impregnated, coated or covered with plastics or other materials
61.14.
Special garments for professional sporting or other purposes:
10.00 - Of wool or fine animal hair
20.00 - Of cotton
142
30.00
90.00
- Of other materials
61.16.
Gloves, mittens and mitts, knitted or crocheted:
91.00 - Of wool or fine animal hair
92.00 - Of cotton
93.00 - Of synthetic fibres
99.00 - Of other textile materials
61.17.
Other made-up clothing accessories, knitted or crocheted:
10 00 - Shawls, scarves, mufflers, mantillas, veils and the like
20 00 - Ties, bow ties and cravats
- Other accessories:
80.10 -- Knitted or crocheted, elasticised or rubberised
80.90 -- Other
90 00 - Parts
62.01.
11.00
12.10
12.90
13.10
13.90
19.00
91.00
92.00
93.00
99.00
62.02.
11 .00
12.10
12.90
13.10
13.90
19.00
91.00
92.00
93.00
99.00
62.03.
11.00
12.00
19.10
19.30
19.90
21.00
22.80
23.80
Men's or boys' overcoats, car-coats, capes, cloaks, anoraks (including ski-jackets),
windcheaters, wind-jackets and similar articles, other than those of heading no.
62.03:
- Overcoats, raincoats, car coats, capes and cloaks and similar articles:
-- Of cotton:
--- Of a weight, per garment, not exceeding 1 kg
--- Of a weight, per garment, exceeding 1 kg
-- Of man-made fibres:
- Anoraks (including ski-jackets, windcheaters, wind-jackets and similar articles):
-- Of cotton
-- Of man-made fibres
Women's or girls' overcoats, car-coats, capes, cloaks, anoraks (including ski-jackets),
windcheaters, wind-jackets and similar articles, other than those of heading no. 62.04:
- Overcoats, raincoats and similar articles:
-- Of cotton:
-- Of man-made fibres:
- Anoraks (including ski-jackets, wind-cheaters, wind-jackets and similar articles):
-- Of cotton
-- Of man-made fibres
Men's or boys' suits, ensembles, jackets, blazers, trousers, bib and brace overalls,
breeches and shorts (other than swimwear)
- Suits:
-- Of cotton
- Ensembles:
-- Of cotton
143
29.18
29.90
31.00
32.90
33.90
39.19
39.90
41.10
41.30
41.90
42.31
42.33
42.35
42.59
42.90
43.19
43.39
43.90
49.19
49.39
49.50
49.90
62.04.
11.00
12.00
13.00
19.10
19.90
21.00
22.80
23.80
29.18
29.90
31.00
32.90
33.90
39.19
39.90
41.00
42.00
43.00
44.00
49.10
49.90
51.00
52.00
53.00
59.10
59.90
-- Of artificial fibres:
-- Of cotton
--- Bib and brace overalls
--- Shorts
-- Of cotton
--- Of denim
--- Of cut corduroy
--- Other cotton
--- Shorts
--- Shorts
--- Shorts
-- Trousers, bib and brace overalls, breeches and shorts of other textile materials
Women's or girls' suits, ensembles, jackets, dresses, skirts, divided skirts, trousers,
bib and brace overalls, breeches and shorts (other than swimwear):
- Suits:
-- Of cotton
- Ensembles:
-- Of cotton
-- Of artificial fibres:
-- Of cotton
- Dresses:
-- Of cotton
-- Of silk or silk waste
- Skirts and divided skirts:
-- Of cotton
144
61.10
61.80
61.90
62.31
62.33
62.39
62.59
62.90
63.18
63.39
63.90
69.18
69.39
69.50
69.90
--- Trousers
--- Shorts
-- Of cotton:
--- Trousers and breeches:
---- Of denim
---- Of cut corduroy
---- Other cotton
--- Shorts
--- Bib and brace overalls:
--- Shorts
--- Of artificial fibres:
---- Trousers and breeches
---- Bib and brace overalls:
---- Shorts
-- Trousers, bib and brace overalls, breeches and shorts of other textile materials
62.05.
10.00
20.00
30.00
90.10
90.90
Men's or boys' shirts:
- Of cotton
- Of flax or ramie
62.06.
10.00
20.00
30.00
40.00
90.10
90.90
Women's or girls' blouses, shirts and shirt-blouses:
- Of cotton
- Of flax or ramie
62.09.
10.00
20.00
30.00
90.00
Babies' garments and clothing accessories:
- Of cotton
62.10.
Garments made up of felt or nonwovens, whether or not impregnated, coated,
covered or laminated:
- Of felt:
- Of nonwovens
- Overcoats for men or boys rubberised or impregnated etc.
- Overcoats for women or girls rubberised or impregnated etc.
- Other garments for men or boys
- Other garments for women or girls
10.10
10.99
20.00
30.00
40.00
50.00
62.11.
20.00
31.00
32.31
32.41
32.42
32.90
33.31
33.41
33.42
33.90
39.00
Track suits and ski suits:
- Ski suits
- Men's or boys track suits:
- Track suits of wool
-- Lined track suits of cotton with an outer shell of a single identical fabric
-- Lined track suit tops of cotton
-- Lined track suit bottoms of cotton
-- Other cotton garments
-- Lined track suits of man-made fibres with an outer shell of a single identical fabric
-- Lined track suit tops of man-made fibres
-- Lined track suit bottoms of man-made fibres
-- Other garments of man-made fibres
-- Track suits of other textile materials
- Women's or girls track suits:
145
41.00
42.31
42.41
42.42
42.90
43.31
43.41
43.42
43.90
49.00
-----------
Track suits of wool
Lined track suits of cotton with an outer shell of a single identical fabric
Lined track suit tops of cotton
Lined track suit bottoms of cotton
Other cotton garments
Lined track suits of man-made fibres with an outer shell of a single identical fabric
Lined track suit tops of man-made fibres
Lined track suit bottoms of man-made fibres
Other garments of man-made fibres
Track suits of other textile materials
62.14.
10.00
20.00
30.00
40.00
90.10
90.90
Shawls, scarves, mufflers, mantillas, veils and the like:
- Of artificial fibres
-- Of cotton
62.15.
10.00
20.00
90.00
Ties, bow ties and cravats
62.16.00.00
62.17.
10.00
90.00
Other made-up clothing accessories and parts of garments
Parts of garments
146
Appendix 2
DETAILED IMPORT/EXPORT STATISTICS,
2001-2003
This section gives Eurostat statistics covering the imports into and exports by the EU-15.
2.1
Imports of outerwear (excluding leather garments) into the EU-15 in volume
and value, 2001-2003
2001
million
€
units
million
2002
million
€
units
million
2003
million
€
units
million
Knitted outerwear:
- for men and boys
-- Coats
-- Outdoor jackets
-- Suits and ensembles
-- Indoor jackets
-- Trousers, shorts etc.
-- Shirts
5
11
42
6
91
233
58
139
164
90
454
1,308
5
14
26
9
89
215
60
164
127
113
421
1,225
5
15
34
9
102
205
59
172
134
111
438
1,075
- for women and girls
-- Coats
-- Outdoor jackets
-- Indoor jackets
-- Dresses
-- Skirts
-- Blouses, shirts
8
20
144
21
54
36
284
246
114
215
313
253
370
260
1,374
1,010
10
26
93
23
50
31
276
208
160
273
274
284
331
244
1,325
1,094
12
35
98
25
49
38
358
234
161
323
287
269
294
226
1,385
1,066
2,280
1,388
61.7
8.5
76
0.5
19.9
386
11.1
7,329
11,612
1,425
180
448
15
574
231
214
2,342
1,449
74.3
7.0
63
0.4
20.0
407
13.9
7,867
11,373
1,388
141
397
9
568
236
252
2,615
1,508
86.2
5.3
72
0.2
30
433
21.5
8,319
10,799
1,310
92
423
8
647
239
294
5,432
28,150
5,451
28,326
5,989
28,131
1,559
3,125
748
11,947
12,399
3,804
1,540
3,236
725
11,643
12,715
4,058
1,455
3,706
828
11,271
13,030
3,830
35
91
47
43
720
487
844
1,809
1,393
1,231
7,462
3,495
39
173
44
36
694
635
753
1,835
1,394
1,080
7,137
3,463
40
142
49
35
703
649
676
1,852
1,335
1,001
6,813
3,386
- for both sexes
-- T-shirts
-- Jerseys, pullovers etc.
-- Babies’ garments *)
-- Impregnated clothing *)
-- Track suits
-- Ski suits *)
-- Other sportswear *)
-- Gloves
-- Scarves, ties etc. *)
of which from:
Other EU-15 countries
Other countries
Woven outerwear:
- for men and boys
-- Coats
-- Outdoor jackets
-- Indoor jackets
-- Shirts
147
Million
units
€
million
million
units
€
million
million
units
€
million
-- Coats
-- Outdoor jackets
-- Indoor jackets
-- Dresses
-- Skirts
-- Blouses and shirts
53
78
51
94
111
203
970
367
1,327
1,334
852
1,904
1,247
1,748
7,275
2,925
59
127
54
94
110
236
873
460
1,317
1,653
811
1,915
1,237
1,978
7,574
3,234
64
185
60
93
114
252
1031
509
1,205
1,849
729
1,734
1,133
1,994
7,691
2,980
- for both sexes
-- Babies’ garments *)
-- Other garments *)
-- Ski suits
-- Track suits *)
-- Scarves
-- Ties
-- Other accessories *)
27.9
134.4
7
56.0
222
69
24.8
649
1,923
119
1,263
617
302
363
42.1
89.5
6
59.5
231
68
28.8
678
1,610
93
1,395
567
293
402
44.0
98.5
8
59.9
229
68
32.5
657
1,570
101
1,308
531
265
432
of which from:
Other countries
3,940
40,082
4,160
40,419
4,544
39,242
923
2,210
807
13,843
17,623
8,616
1,000
2,267
893
14,546
17,839
7,944
1,003
2,563
948
13,800
17,926
7,516
Total EU imports
of which from:
Other countries
*) volume in tons, not included
9,372
68,232
9,661
68,745
10,705
67,373
2,482
5,335
1,555
in totals
25,790
30,022
12,420
2,540
5,503
1,618
26,189
30,654
11,902
2,459
6,169
2,077
25,071
30,956
11,346
148
2.2
EU-15 imports of outerwear by major source, 2001-2003 in volume and value
Total EU-15 imports
Intra-EU
of which from:
Italy
Germany
Belgium
Netherlands
France
Portugal
UK
Spain
Denmark
Greece
Other EU countries
of which from:
China
Turkey
Bangladesh
Morocco
Tunisia
India
Indonesia
Pakistan
Thailand
Mauritius
Sri Lanka
Vietnam
Macao
Cambodia
Croatia
Myanmar
Philippines
Malaysia
Macedonia
Egypt
Other
Other countries
of which from:
Romania
Hong Kong
Poland
Bulgaria
Czech Republic
Hungary
South Korea
Lithuania
Switzerland
Slovakia
Taiwan
Ukraine
USA
Other
2001
‘000
€
tonnes
million
3,370
68,232
2002
‘000
€
tonnes
million
3,484
68,745
2003
‘000
€
tonnes
million
3,796
67,373
855
25,790
918
26,189
913
25,071
119
200
122
90
67
73
52
31
26
31
44
5,151
4,300
3,181
2,800
2,420
2,040
1,782
1,207
846
764
1,299
116
215
148
88
67
98
42
38
28
39
39
5,032
4,475
3333
2,798
2,577
2,053
1,778
1,440
893
731
1,079
163
199
135
86
54
101
46
47
27
23
32
4,656
4,653
3,081
2,642
2,397
1,916
1,642
1,529
857
661
1,037
1,958
30,022
2,018
30,654
2,335
30,956
516
260
252
130
111
139
110
58
45
38
29
36
24
28
15
23
20
20
14
12
78
6,372
4,908
2,710
2,270
2,261
1,794
1,501
533
665
638
574
677
530
384
449
379
255
304
244
202
2,372
587
286
273
119
102
127
99
72
53
30
32
34
20
25
13
23
20
30
9
14
50
7,091
5,752
2,635
2,209
2,219
1,932
1,226
622
668
583
543
594
454
414
407
316
265
308
198
207
2,011
771
314
374
125
93
136
89
78
55
29
35
32
24
30
11
25
19
21
9
17
48
7,725
6,098
2,981
2,121
2,054
1,966
1,098
664
635
521
494
421
416
407
367
292
246
217
212
206
1,815
557
12,420
548
11,902
548
11,346
141
92
71
57
14
31
31
25
4
16
20
24
9
22
2,936
2,304
1,683
873
403
789
620
517
344
407
403
345
294
502
153
117
61
38
14
26
29
23
3
17
17
24
7
19
3,232
2,037
1,470
777
481
688
512
512
366
419
365
344
241
458
160
112
57
42
14
21
32
24
4
16
20
22
7
17
3,260
1,807
1,267
845
574
568
480
473
443
369
353
308
212
387
149
2.3
Exports of outerwear by the EU-15 in volume and value, 2001-2003
2001
million
€
units
million
Knitted outerwear:
- for men and boys
-- Coats
-- Outdoor jackets
-- Indoor jackets
-- Shirts
-- Coats
-- Outdoor jackets
-- Indoor jackets
-- Dresses
-- Skirts
-- Blouses, shirts
- for both sexes
-- T-shirts
-- Jerseys, pullovers etc.
-- Babies’ garments
-- Impregnated clothing
-- Ski and track suits
-- Other sportswear
-- Gloves
-- Scarves, ties etc.
2002
million
€
units
million
2003
million
€
Units
million
1
4
9
3
25
65
35
80
154
61
205
631
2
4
9
3
24
57
41
86
112
66
193
610
1
5
11
3
28
56
38
97
117
58
206
578
3
6
20
13
20
16
146
195
72
97
262
214
226
186
647
906
3
7
19
13
18
13
84
209
81
114
245
208
218
158
633
972
4
9
20
16
16
13
94
245
81
140
202
214
192
146
651
1,068
873
723
49
2,172
4,001
7,443
668
86
221
837
81
350
17,463
909
574
54
2,002
4,450
7,168
638
78
193
851
84
395
17,594
936
479
62
1,998
4,573
6,550
611
60
192
883
91
392
17,140
13
29
23
17
242
119
527
865
1,552
717
3,904
1,536
14
33
24
15
294
126
502
913
1,505
662
3,844
1,589
14
37
28
13
230
122
420
924
1,531
600
3,721
1,571
Woven outerwear:
- for men and boys
-- Coats
-- Outdoor jackets
-- Indoor jackets
-- Shirts
-- Coats
-- Outdoor jackets
-- Indoor jackets
-- Dresses
-- Skirts
-- Blouses and shirts
- for both sexes
-- Babies’ garments
-- Sportswear
-- Other garments
-- Scarves
-- Ties
-- Other accessories
29
18
39
32
35
75
256
107
865
802
1,509
1,194
834
1,076
3,810
1,410
19
36
35
33
34
72
259
124
825
791
1,403
1,257
794
1,160
3,998
1,635
83
43
34
32
30
77
257
119
774
817
1,185
1,208
734
1,136
3,943
1,471
14
147
58
1,254
355
1,683
1,250
684
557
1,142
26,272
13
125
50
1,304
361
1,773
1,405
589
498
1,210
26,714
12
100
44
1,275
348
1,686
1,287
532
458
1,107
25,453
Total EU exports
of which outside the EU
3,426
1,064
43,735
13,900
3,306
1,028
44,308
13,965
3,273
1,018
42,593
13,346
150
Appendix 3
USEFUL ADDRESSES
3.1 Standards organisations
EU:
ECLA (European Clothing Association)
Internet: http://www.euratex.org
Mailto:[email protected]
Note: for ECLA recommendations we refer to:
or
http://westworld.dmu.ac.uk
http://www.belgianfashion.be
ISO (International Standard Organisation)
Internet: http://www.iso.org
Information concerning textile care labelling in EU countries can be obtained from:
GINETEX (Groupement international d’etiquetage pour l’entretien des textiles)
Internet: http://www.ginetex.org
CEN (European Committee for Normalization)
Internet: http://www.cenorm.be
Germany
DIN (Deutsches Institut für Normung)
Internet: http://www2.din.de
France
AFNOR (Association Française de Normalisation)
Internet: http://www.afnor.fr
United Kingdom
BSI (British Standards Institution)
Internet: http://www.bsi-global.com
Spain
AENOR (Associacion Española de Normalizacion y Certificación)
Internet: http://www.aenor.es
Italy
UNI (Ente Nazionale Italiano di Unificazione)
Internet: http://www.uni.com
The Netherlands
NEN (Nederlands Normalisatie Instituut)
Internet: http://www2.nen.nl
Belgium
BIN (Belgisch Instituut voor Normalisatie)
Mailto:info.ibn.be
Internet: http://www.ibn.be
3.2 Sources of price information
An overview of consumer prices can be obtained by:
• window-shopping in the prospective market place; visiting several retail shops is another
good way of gaining information about prices at retail or consumer level, but also about
fashion, colours and qualities.
• browsing through the catalogues of home shopping companies on Internet.
151
•
For instance sites in The Netherlands, like
Neckermann Nederland: http://www.neckerman.nl
Wehkamp: http://www.wehkamp.nl
or similar sites in Germany like
Neckermann: http://www.neckermann.de
Quelle: http://www.quelle.de
Otto: http://www.otto.de
or in France, like
La Redoute: http://www.redoute.fr
or in the English language in the UK, like:
GUS/Argos: http://www.gusplc.co.uk with links to many daughter companies like
http://www.argos.co.uk, http://www.choiceshopping.com and others,
Littlewoods Home Shopping: http://www.littlewoods.co.uk
Grattan: http://www.lookagain.co.uk
Freemans and Empire Stores: http://www.empirestores.co.uk
Hennes & Mauritz: http://www.hm.com and click on H&M Rowells shop.
Comparisons can also be found in the prices given in catalogues from large department
stores, clothing multiples or from company web sites.
Prices of competitors’ products can be found by browsing their Internet sites or looking for general
sites like
http://www.globalsources.com or http://www.alibaba.com
3.3 Trade associations
Associations in the clothing industry
EU:
Euratex (The European Apparel & Textile Organisation)
Internet: http://www.euratex.org
Austria:
FBO (Fachverband der Bekleidungsindustrie Osterreichs)
Internet: http://www.fashion-industry.at
Belgium:
Creamoda Belgian Fashion
Internet: http://www.creamoda.be
Denmark:
Federation of Danish Textile and Clothing
Internet: http://www.textile.dk
Finland:
Finatex
Internet: http://www.finatex.fi
France:
UFIH (Union Francaise des Industries de l’Habillement)
Internet: http://www.lamodefrancaise.com
Germany :
Bundesverband Bekleidungsindustrie e.V.
Internet: http://www.bekleidungsindustrie.de
152
Greece:
Hellenic Clothing Industry Association - HCIA
Internet: http://www.greekfashion.gr
Ireland:
Irish Clothing & Textile Alliance - ICATA
Internet: http://www.ibec.ie/icata
Italy:
Sistema Moda Italia (SMI)
Internet: http://www.sistemamodaitalia.it
The Netherlands:
Modint
Internet: http://www.modint.nl
Portugal:
Anivec
Internet: http://www.anivec.com
Spain:
Consejo Intertextil Espanol
Internet: http://www.aitpa.es
Sweden:
TEKO industrierna
Internet: http://www.teko.se
Associations of wholesalers, agents etc. in apparel trade
The Netherlands:
NVKT (Nederlandse Vereniging van Kleding- en Textiel- Agenten/Importeurs)
Internet: http://www.nvkt.nl
3.4
Trade
France
Segments:
Frequency:
Internet:
Segments:
Frequency:
Internet:
Segments:
Frequency:
Internet:
fair organisers
Prêt-à-Porter (Paris)
The entire range of women's apparel including accessories
Twice a year (January and September)
In spring, presentation of the winter collection and in autumn of the summer collection
http://www.pretparis.com
mailto:[email protected]
Kid’s Fashion/Mode Enfantine (Paris and Brussels)
International Children's Fashion Trade Show
The entire range of children’s and babies’ apparel
Twice a year (January in Paris and September in Brussels)
http://www.bff.be
Who’s next (Paris)
International Men's and Women’s Wear Fair
The entire range of apparel for men and women, including accessories
Twice a year (January and September)
http://www.whosnext.com
153
Germany
Segments:
Frequency:
Internet:
CPD Woman/Man (Dűsseldorf)
Fashion wear for men, women and children, including young fashion
Twice a year (February and August)
http://www.cpd.de
Segments:
Frequency:
Internet:
ISPO (Cologne)
Active sportswear, fashion sport and sporting goods
Twice a year, February (ISPO Winter) and August (ISPO Summer)
http://www.ispo.com
Segments:
Frequency:
Internet:
KIND + JUGEND (Cologne)
Babies’ and children’s wear, maternity wear, babies’ accessories and clothing for teens
Twice a year (February and July)
http://www.kindundjugend.de
Segments:
Frequency:
Internet:
Bread and Butter (Berlin and in Barcelona, Spain)
Denim, sport and streetwear, sportswear
Twice a year, January and July
http://www.breadandbutter.com
Italy
Segments:
Frequency:
Internet:
Segments:
Frequency:
Internet:
Spain
Segments:
Frequency:
Internet:
Segments:
Frequency:
Internet:
Segments:
Frequency:
Internet:
Pitti Immagine Uomo (Firenze)
Men’s apparel, including accessories
Twice a year (January and June)
http://www.pittimmagine.com
Pitti Bimbo (Firenze)
Clothing and accessories for babies, children and teens, maternity wear
Twice a year (January and June)
http://www.pittimmagine.com
Barcelona Fashion Week
Several trade fairs for men’s wear, women’s ready-to-wear and designer collections
Twice a year (February and September)
http://www.moda-barcelona.com
Fimi Valencia
Children’s fashion and accessories
Annual (January)
http://www.feriavalencia.com
SIMM
Women’s fashion (Imagenmoda), Ready-to-wear (Intermoda), Jeans and Streetwear,
Sportswear (Cien X Cien)
http://www.semanamoda.ifema.es
154
UK
Segments:
Frequency:
Internet:
Segments:
Frequency:
Internet:
3.5
Pure Womenswear
All kinds of women’s wear and fashion accessories
http://www.purewomenswear.co.uk
Premier Kids (Birmingham)
Clothes for babies, toddlers and teenagers, footwear and accessories, lifestyle
products and maternity wear.
Twice a year (July and January)
http://www.premierkids.co.uk
Trade press
International fashion magazines for outerwear
Donna Collezioni
Frequency: 4 times a year
Language:
Italian with English summary
Content:
Women’s wear fashion
Phone:
+39 (0) 59 891700
Fax:
+39 (0) 59 891701
From the same publisher: Uoma Collezioni, Sport & Street Collezioni, Acessori Collezioni
(international trends and season’s bestsellers in all sorts of accessories for men and women,
including 600 photographs), 0-3 Baby Collezioni, and Bambini Collezioni.
Sportswear International
Publisher:
Deutscher Fachverlag GmbH, Mainzer Landstrasse 251, D-60326 Frankfurt am
Main,Germany
Frequency: 6 times a year
Language:
English
Content:
International fashion trends in jeanswear, leisurewear, accessories etc.
Internet:
http://www.sportswearnet.com
International magazines giving information about developments in yarns and fabrics,
design and fashion forecasting on textiles
International Textiles
Frequency:
10 issues a year
Language:
English
Content:
Information about colours, fabrics, styling, haute couture etc.
Internet:
http://www.itbd.co.uk
Textile View Magazine
Frequency:
Quarterly
Language:
English
Content:
Developments in fashion and technology for yarns, fabrics etc.
Internet:
http://www.view-publications.com
155
International magazines giving information about production and trade in textiles
Textile Outlook International
Frequency:
6 issues a year
Language:
English
Content:
Business and market analyses for the textile and clothing industry
Internet:
http://www.textilesintelligence.com
Knitting International
Frequency:
11 issues a year
Language:
English
Content:
Information about production technologies and fashion (trends, fairs etc)
information concerning knitwear
Internet:
http://www.world-textile.net
Textil Mitteilungen (TM)
Frequency:
Weekly
Language:
German
Content:
Production, trade and fashion information on textiles and clothing
Internet:
http://www.tm-fashion-portal.de
Textil Wirtschaft (TW)
Frequency:
Weekly
Language:
German
Content:
Internet:
http://www.twnetwork.de
Textile Network
Frequency:
Monthly
Language:
English
Content:
Internet:
http://www.meisenbach.de
Journal du Textile
Frequency:
Weekly
Language:
French
Content:
Internet:
http://www.journaldutextile.com
3.6 Other useful addresses
INTERNATIONAL
United Nations Industrial Development Organisation (UNIDO)
Internet:
http://www.unido.org
World Customs Organisation
Internet:
http://www.wcoomd.org
156
International Labour Organisation (ILO)
Internet:
http://www.ilo.org
International Chamber of Commerce
Internet:
http://www.iccwbo.org
EUROPEAN UNION
EU
Internet:
http://www.europa.eu.int
Association of the European Chambers of Commerce and Industry
Internet:
http://www.eurochambres.be
Eurostat, Statistical Bureau of the European Union
Internet:
http://epp.eurostat.cec.eu.int
Mintel
Internet:
http://www.mintel.com
Trade directories available without charge for various European countries in different languages
Kompass
Internet:
http://www.kompass.nl
ABC of trade and industry
Internet:
http://www.abc-d.nl
Europages
Internet:
http://www.europages.com
GTZ (German Agency for Technical Cooperation)
Internet:
http://www.gtz.de
Important addresses for environmental issues
Information concerning environmental aspects is provided by business support organisations
like CBI, GTZ, Norimpod and Sida (for addresses see CBI’s website)
AccessGuide, CBI’s database on European non-tariff trade barriers
Internet:
http://www.cbi.nl/accessguide
Commission of the European Communities, DG XI-A-2, contact point EU ECO-label
Internet:
http://www.europa.eu.int/comm/dg11
Öko-Tex, contact point for the Öko-Tex hallmark
Internet:
http://www.oeko-tex.com
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TÜV, contact point for the SG (Schadstoffgeprüft Zeichen) hallmark, including worldwide
addresses of affiliates
Internet:
http://www.de.tuv.com
THE NETHERLANDS
Netherlands Customs Directorate, information on import duties
Internet:
http://www.douane.nl
Central Services for Import & Export, information on import licences, certificates, procedures:
Internet:
http://www.belastingdienst.nl
More information about the market and other general information
Netherlands Foreign Trade Agency, part of the Ministry of Economic Affairs
Internet:
http://www.evd.nl
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Appendix 4
LIST OF DEVELOPING COUNTRIES
Please note that the OECD list of developing countries, as applied in this market survey, may
include countries that are usually not considered as developing countries.
Afghanistan
Albania
Algeria
Angola
Anguilla
Antigua and Barbuda
Argentina
Armenia
Azerbaijan
Bahrain
Bangladesh
Barbados
Belize
Benin
Bhutan
Bolivia
Bosnia & Herzegovina
Botswana
Brazil
Burkina Faso
Burundi
Cambodia
Cameroon
Cape Verde
Central African rep.
Chad
Chile
China
Colombia
Comoros
Congo Dem. Rep.
Congo Rep.
Cook Islands
Costa Rica
Côte d'Ivoire
Croatia
Cuba
Djibouti
Dominica
Dominican republic
Ecuador
East Timor
Egypt
El Salvador
Equatorial Guinea
Eritrea
Ethiopia
Fiji
Gabon
Gambia
Georgia
Ghana
Grenada
Guatemala
Guinea
Guinea-Bissau
Guyana
Haiti
Honduras
India
Indonesia
Iran
Iraq
Jamaica
Jordan
Kazakhstan
Kenya
Kiribati
Korea, rep of
Kyrghyz Rep.
Laos
Lebanon
Lesotho
Liberia
Macedonia
Madagascar
Malawi
Malaysia
Maldives
Mali
Marshall Islands
Mauritania
Mauritius
Mayotte
Mexico
Micronesia, Fed. States
Moldova
Mongolia
Montserrat
Morocco
Mozambique
Myanmar
Namibia
Nauru
Nepal
Nicaragua
Niger
Nigeria
Niue
Oman
Pakistan
Palau Islands
Palestinian Admin. Areas
Panama
Papua New Guinea
Paraguay
Peru
Philippines
Rwanda
Samoa
São Tomé & Principe
Saudi Arabia
Senegal
Serbia and Montenegro
Seychelles
Sierra Leone
Solomon Islands
Somalia
South Africa
Sri Lanka
St. Helena
St. Kitts-Nevis
St. Lucia
St. Vincent and Grenadines
Sudan
Surinam
Swaziland
Syria
Tajikistan
Tanzania
Thailand
Togo
Tokelau
Tonga
Trinidad & Tobago
Tunisia
Turkey
Turkmenistan
Turks & Caicos Islands
Tuvalu
Uganda
Uruguay
Uzbekistan
Vanuatu
Venezuela
Vietnam
Wallis & Futuna
Yemen
Zambia
Zimbabwe
January 2004
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Appendix 5
USEFUL INTERNET SITES
The following portals focused on the clothing trade may be useful (portals are usually one-stop
gateways covering 'all aspects' in a field of study or a line of business): http://www.juststyle.com
Just-Style.com apparel & textile industry portal contains news articles and searchable archive,
events calendar and resources (annotated industry links). The feature <Knowledge Store >
includes reports from leading (UK) sources such as Mintel, Key Note etc.
Access: free
Search: extensive search engine to search the site full-text.
Language: English
Note: free subscription to < just-style news >, an e-mail newsletter
Language: English.
Sites concerning international trade are:
http://www.wcoomd.org
The World Customs Organisation website contains full text documents on international trade
policy topics related to Customs (e.g. GATT, Harmonized System, Rules of Origin etc.), as well
as < Links to Member Administrations >, i.e. national Customs organisations and < Links to
International organisations >, i.e. global and regional intergovernmental organisations.
Access: free.
Search: search facilities available
Language: English and French (bilingual).
http://export-help.cec.eu.int
The Expanding Exports Helpdesk is an online resource, provided by the European Commission,
to facilitate access for developing countries to markets within the EU. The Expanding Exports
Helpdesk provides relevant information required by developing country exporters interested in
supplying the EU market. This site includes: Import tariffs, Customs documents, Rules of origin
and Trade statistics.
Access: free
Language: English
Sites of clothing organisations are: http://www.aedt.org
The AEDT (European Association of National Organisations of Textiles retailers) site gives
information on this organisation and its activities.
Main features: Information & Statistics: key figures on AEDT members or associated European
countries. This information is presented in the same 'AEDT format' for each country. It also has
a directory of the national organisations of textiles/clothing retailers. Calendar of Fashion Fairs.
Ariadne's Web: European database of fashion brand names
Access: free
Search: man-driven navigation
Language: English
http://www.iafnet.org
The IAF site (International Apparel Federation) gives information on this organisation and its
activities. Main features: Papers and Presentations of the annual IAF World Apparel Convention
are available in full text. News is an on-line quarterly newsletter. Member Associations:
addresses and websites.
Access: free
Search: man-driven navigation only (the site is relatively small)
Language: English
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