Jerseys and cardigans in the United Kingdom

Jerseys and cardigans
in the United Kingdom
The market for jerseys and cardigans in the United Kingdom (UK) is very broad,
but there are a number of niche opportunities that you can explore. The ethical
clothing sector in particular continues to grow and new alternatives for luxury
wools are growth areas. Wool, previously associated with use by older
consumers, is being re-branded to make it more fashionable and diverse.
Market characteristics
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Consumer’s expenditure increased. The UK market for jerseys and cardigans was valued at
€ 6.3 billion in 2010, a 0.9% annual decrease since 2006, representing 20% of EU market
value (€ 31.8 billion). This was below the EU as a whole, which registered a 1.5% increase.
UK performance for this product group was similar to the other leading EU markets
(Germany and France), but higher than Italy. See also the module on promising EU
export markets with all trade statistics.
o Sales of jerseys and cardigans fell since 2009, which was mainly due to the
economic recession and the growing popularity of hand knitting. There are knitting
classes and workshops for children and adults. Handmade jerseys and cardigans are
increasingly preferred to the mass-produced items.
o Online sales of handicrafts, including wool are increasing. There are various
websites online craft marketplaces such as http://www.etsy.com/category/knitting
o The average per capita expenditure on jerseys and cardigans of € 102 was well above
the EU average of € 64. In general, British people are well dressed, well aware about
brands and spend much on clothing (5.1% of all consumer spending in 2010).
o Women buy more decorative cardigans than men. In terms of the number
purchased by women each year, 25% purchase 6+ items (29% average for all items),
9% purchase 4-5 items (27% average for all clothing items), 6% purchase 2-3 items
(31% average for all items) and just 1% buy none or 1 item (12% average for all
items). However, fleece tops are more popular, 42% purchase 6+ items, 29%
purchase 4-5 items, 16% purchase 2-3 items and 5% buy none or 1 item.
According to Mintel, the UK clothing market is expected to grow by 1.5% in 2011.
However, we expect the market to contract, as the recession continues, fast fashion
seems to have passed its peak, VAT has increased to 20% and retail prices are expected
to rise in 2011.
Source: CBI Market Information Database – www.cbi.eu • Contact [email protected]
• Publication date 30.07.2011
Jerseys and cardigans in the United Kingdom
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Production continues to decrease. the UK has become a smaller sized EU producer of jerseys
and cardigans valued in 2010 at € 141 million, nearly 3% EU production (€ 4.9 billion).
UK production contracted by -15.6% annually (value) since 2006, compared with -5.7%
for the EU production of jerseys and cardigans (€ 4.9 billion in 2010). Nearly threequarters of UK production were jerseys and cardigans for women or girls.
Around 23% of the production value was women’s or girls’ man-made items (decreased), 11%
were items made of cotton (decreased). Nearly 37% were items made of fine animal hair
(decreased) with larger decreases registered in men’s items. Woollen jerseys and pullovers
decreased substantially and represented 12% of UK production in 2010. The UK woollen
industry is gradually contracting but it has a reputation for quality and a good
proportion of production is made for export. UK production of lightweight fine knitted
polos, jumpers and pullovers have dropped to zero in the period under review.
High DC share of imports. Imports of jerseys and cardigans were valued at € 1.9 billion
in 2010, a -1.0% annual average decrease since 2006. However, DC imports (€ 1.5
billion) increased by 8.5% over the period. Around 62% were women’s jerseys, which
decreased by an annual -1.3%, while men’s jerseys rose by 1.5%. DC imports accounted for
76% of all imports by value but almost 87% by volume (298 million pieces). As there are
many (large) fashion companies and retailers who source internationally, the UK was a
large EU importer of jerseys and cardigans (17.7% of EU imports), still being well below
Germany.
Leading DC suppliers (by volume) were China (41% of total, +31% average annual growth by
value; +46% by volume), Bangladesh (10%, -5% by value; -6% by volume), Turkey (8%,
+1% by value, -2.6% by volume), Cambodia (4%, +13% by value; +9% by volume), India
(2%, +9% by value; +9% by volume) and Sri Lanka (2%, -10%). China has become the
leading supplier, instead of Bangladesh since 2008.
The top five importers (see figure 1) represented over 65% of total UK imports by value.
Other important suppliers were Pakistan (1.2%, +1%), Madagascar (1.2%, -3.3%) and
Mauritius (1.2%, -5%). Other large decreases were registered in the supplies from
Indonesia, Thailand and Vietnam, where the UK imported more from Egypt, Morocco,
Mongolia and Jordan.
Figure 1 Top 5 DC suppliers of jerseys and cardigans
90
60
Quantity
30
0
China
Bangladesh Turkey
2006
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Cambodia
2008
India
2010
Items of cotton grew, while items of wool and man-made fibres were down. UK (volume)
imports of jerseys and cardigans made of cotton (47%) represented almost half of UK imports
and increased by an annual 6.2% since 2006. Jerseys and cardigans of man-made fibres (43%)
fell by -4.8% over the period. Imports of woollen jerseys and cardigans represented 6% (see
figure 2) and were down by 8.9%.
Source: CBI Market Information Database – www.cbi.eu • Contact [email protected]
• Publication date 30.07.2011
Jerseys and cardigans in the United Kingdom
Figure 2 UK imports of jerseys and cardigans by material in 2010
6%
43%
47%
wool
cotton
man-made
flax
Others
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Within the others group, UK imports of jerseys and cardigans made of cashmere wool
increased by 1.9% since 2006 from € 77.7 to 78.3 million, which were mainly within the
women’s group which represented the largest part (68%). UK imports jerseys and
cardigans made of fine animal hair decreased by -14.1% from € 33.2 to 18.1 million which was
mainly within the women’s group (70%) while increases were registered in the men’s
group.
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Average DC import prices increased from € 5.46 to € 5.76 per piece in 2010, while
average intra-EU prices decreased from € 13.45 to € 12.14, making intra-EU import prices
more than 2 times higher than average DC import prices. In 2010, the UK average prices
for jerseys and cardigans returned to their 2006 level, at € 7.06 still being higher than
the EU level of € 6.4 in that year. Consumer prices of jerseys and cardigans vary
considerably. For example, women’s cardigans cost between € 15-65 in the leading midmarket retailer Next, while men’s jumpers and pullovers can cost between € 28-70 at
Marks & Spencer.
Meanwhile, according to market research specialist Mintel, men spent € 61.20 on
jerseys and other knitwear in 2010, compared with € 63.20 in 2007. This was a relatively
good performance as spending on suits, jackets and sports clothing decreased by much
more. Around 30% of British women spent nothing on jumpers/ cardigans/sweatshirts
in the last year; 44% spent under € 60; 16% spent between € 60- 120 and 10% spent
€ 120 or more.
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Key opportunities
The ethical clothing sector has been established for some
time in the UK, although it still represents a growing market.
British people regard environmental and social responsibility
more important. Jerseys or cardigans that combine these
features with high fashion and style, will be well received
(Eco-chic or Ethical-chic fashion). Original designs and
innovations using sheep wool, natural fibres, organic
cotton, (exotic) wool or recycled material remain growth
areas. See also the module ‘Trends and segments for knitted
and woven clothing’.
Source: CBI Market Information Database – www.cbi.eu • Contact [email protected]
• Publication date 30.07.2011
Jerseys and cardigans in the United Kingdom
Other opportunities can be found in:
• Alternatives for luxury wools. Knitted jerseys, pull0vers, sweaters and cardigans for the
middle to higher segments, using luxury wool. Due to the recession, lower cost alternatives
for cashmere can be introduced such as alpaca, baby alpaca, merino wool, pima cotton
or angora especially for women. A high amount of pure wool remains an asset for DC
exporters, to differentiate from Chinese competing products. Although blends (wool and
synthetics) are sometimes required to guarantee a soft feel for a maximum comfort. The
wool itself could be also sold to specialist shops for home knitters.
• Casual and formal. There is a demand for jerseys, sweatshirts, light pullovers, waistcoats
and cardigans that can be used both casually and at the office. This is part of the current
financial reality of getting the best use of out of all items of clothing. Price and design
remain important criteria when buying clothing in addition to comfort, fit and durability.
• 'Coatigans', which are a cross between a coat and a cardigan. They are designed for people
who frequently switch between indoors and outdoors, saving the time involved in putting
on or taking off a coat.
• Trans-seasonal items, which are less weather dependent, such as cotton knitwear
layers, knitted sweatshirts or sleeveless cardigans.
• Men’s knitwear trends include super chunky knits, cocoon knits, and high gauge
stretchy cable knit cardigans with deep pockets. Crochet lace knitted cardigans are also
popular.
• Women’s Cut up jerseys are popular. Here the garments are torn and pulled to create
holes and have an anarchic T-shirt effect.
• Fashionable knitwear and accessories (scarves) for the older aged. The UK
population is expected to grow by an average annual rate of around 0.6% between 2010
and 2018. However, the population is ageing, as life expectancy increases. Knitting is a
particularly popular hobby for older people and Some wool shop owners (www.purlbrighton.co.uk) expand their range of products and services by providing knitting
classes. Even if self-knitting has been more popular, there are opportunities for jerseys
or cardigans made of natural material and featuring elements of craftsmanship such as
special knitting techniques or decorations with embroidery.
How to approach the market
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The main trade channels for market entry are either via importing manufacturers,
wholesalers or via specialised retailers. It depends on what type of clothing exporter
you are (CMT, FOB, private label or own brand manufacturer). Some exporters make use
of fashion sales agents. This channel would be appropriate if you were manufacturing
on behalf of a known designer.
UK wholesalers of jerseys and cardigans can be found via the trade directory –
http://www.thewholesaler.co.uk/trade/distributor/Clothing_and_fashion_UK_wholes
ale_directory/.
There are a number of specialist players in the ethical sector. These would include:
o Natural Collection – http://www.naturalcollection.com – which has also recently
merged with http://www.ethicalsuperstore.com. This organisation also operates
the wholesaler http://www.pointov.com. People Tree –
http://www.peopletree.co.uk – and Seasalt – http://www.seasaltcornwall.co.uk –
both import and supply knitted jerseys and cardigans.
o The Ethical Fashion Network – http://www.ethicalfashionforum.ning.com – has
good links to organisations within this sector. Tesco is launching a full range of
men’s and ladies Fairtrade cotton knitwear in a move to target younger more
fashion conscious consumers and online retailer Asos – http://www.asos.co.uk - is
launching a fashionable new jersey wear collection. The Guardian newspaper has
introduced an ethical fashion directory –
http://www.guardian.co.uk/lifeandstyle/page/ethicalfashiondirectory.
Outside the ethical sector, Jaeger – http://www.jaeger.co.uk – has 140 outlets in the UK
and Europe and is famous for its knitwear made from fibres such as cashmere, wool,
camel hair and angora. Other clothing retailers that may be worth approaching directly
Source: CBI Market Information Database – www.cbi.eu • Contact [email protected]
• Publication date 30.07.2011
Jerseys and cardigans in the United Kingdom
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are Marks & Spencer – http://www.marksandspencer.com – and Benetton –
http://www.benetton.co.uk.
The Knitting and Crochet Guild is an association for knitting enthusiasts. It provides
information on shows and events, and runs courses and offers a pattern search facility
http://www.knitting-and-crochet-guild.org.uk
You need to decide whether to approach this market directly or indirectly. See the module
on distribution strategy for more information. Information on buyer requirements can be
found in the module on buyer requirements.
If you make a direct approach, it is recommended that there is some personal
communication before a trading relationship commences. Developing country exporters
may approach customers in the UK through direct (e-) mail, personal visits (as follow-up),
inviting potential customers to visit you in your country, building a network and visiting
international trade fairs.
Other interesting contacts
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Interesting trade fairs include Pure – http://www.purelondon.com – which also includes
an ethical fashion section, Margin – http://margin.tv – which tends to focus on
independent retailers and Moda – http://www.moda-uk.co.uk. The Ethical Fashion
Award is gaining popularity – http://www.refashionawards.org
The main trade association is the UK Fashion & Textile Association – http://www.ukft.org.
The Association of Suppliers to the British Clothing Industry – http://www.asbci.co.uk.
The British Wool Marketing Board – http://www.britishwool.org.uk.
The UK Hand Knitting Association – http://www.woolandyarn.co.uk
This survey was compiled by Searce
in cooperation with Dhyana van der Pols
Disclaimer CBI market information tool: http://www.cbi.eu/disclaimer
Source: CBI Market Information Database – www.cbi.eu • Contact [email protected]
• Publication date 30.07.2011