WEAR OUTER

Transcription

WEAR OUTER

OUTER
WEAR
Overview and Marketing Guide
on Switzerland and the
Major Markets in the European Union
IMPRINT
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SIPPO
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Swiss Import Promotion Programme
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Authors
accuracy of the information presented,
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Eve Bächtold, SIPPO
amending this publication for any reason,
whether new or contrary information
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Revision
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Corinne Bammerlin de Castro
Traductora Pública Juramentada
Jr. Bolivar 161, of. 3A
Miraflores - Lima - Peru
Layout
Beate Rüttiger, Grafik Design
In der Klinge 6
D-72127 Kusterdingen, Germany
Edition
2nd Edition, Zurich, March 2006
2
C O N T E N T S
INTRODUCTION
BACKGROUND AND METHODOLOGY OF THE MARKET SURVEY
5
PRODUCT GROUPS ANALYSED
6
MARKET SURVEY OF THE 10-EU NEW MEMBER
COUNTRIES
7
CLOTHING CONSUMPTION
8
POLAND
10
CZECH REPUBLIC
11
HUNGARY
12
MARKETING AND DISTRIBUTION
12
1
FRANCE
1.1
GENERAL ECONOMIC SITUATION
14
1.2
THE MARKET FOR OUTERWEAR
15
1.3
IMPORTS
22
1.4
TRADE STRUCTURE
29
1.5
FRENCH FASHION TRADE FAIRS
36
1.6
LIST OF MAJOR BUYERS IN FRANCE
38
2
GERMANY
2.1
50
2.2
51
2.3
IMPORTS
59
2.4
TRADE STRUCTURE
65
2.5
GERMAN FASHION TRADE FAIRS
73
2.6
LIST OF MAJOR BUYERS IN GERMANY
76
3
I T A LY
3.1
88
3.2
89
3.3
IMPORTS
99
3.4
TRADE STRUCTURE
106
3.5
ITALIAN FASHION TRADE FAIRS
114
3.6
LIST OF MAJOR BUYERS IN ITALY
116
3
C O N T E N T S
4
SPAIN
4.1
125
4.2
126
4.3
IMPORTS
134
4.4
TRADE STRUCTURE
141
4.5
SPANISH FASHION TRADE FAIRS
151
4.6
LIST OF MAJOR BUYERS IN SPAIN
153
5
SWITZERLAND
5.1
160
5.2
162
5.3
IMPORTS
170
5.4
TRADE STRUCTURE
173
5.5
SWISS FASHION TRADE FAIRS
186
5.6
LIST OF MAJOR BUYERS IN SWITZERLAND
188
6
UNITED KINGDOM
6.1
203
6.2
203
6.3
IMPORTS
212
6.4
TRADE STRUCTURE
218
6.5
UK FASHION TRADE FAIRS
227
6.6
LIST OF MAJOR BUYERS IN GREAT BRITAIN
229
4
I N T R O D U C T I O N
BACKGROUND AND METHODOLOGY OF THE MARKET
SURVEY
This survey is designed for clothing manufacturers from foreign
countries wishing to access the
European market. The main
objective of this compendium
about Switzerland and the five
major EU clothing markets is to
provide first hand market information about the respective target
markets for the exporter from
abroad. Secondly, a comprehensive list of addresses helps to gain
more detailed information about
the target market and to establish
first contacts.
The handbook includes facts and
key data about consumption,
imports, trade structure, role of
trade fairs and price developments in the target markets. The
study is completed by a detailed
list of useful addresses at
European level about trade promotion organisations, trade press,
clothing fairs, industry federations,
centres for ecological issues etc.
as well as a detailed list of potential distribution partners for each of
the six countries analysed.
Furthermore, statistical market
information on consumption,
imports, information about trade
structure as well as prices and
margins are provided.
The countries selected for the survey are Switzerland, Germany,
France, Italy, Great Britain and
Spain. The information collected for
this study is the latest available and
should be used by the exporter as
a basis for further individual market
research to fully design the individual market entry strategy and to
establish first contacts.
The main sources of information
for this study were evaluation of
press material, research on internet, market reports, Eurostat,
information from other trade promotion organisations, Chambers
of Commerce, importers and/or
textile association’s a.o.m. The
sources are mentioned in the
respective chapters. All contact
addresses
listed
in
the
Appendices have been checked
and updated, additional information about the clothing retailers and
other potential partners with products, number of outlets etc. is
given for a more specific use of
the contacts.
Additionally, app. 20 personal
interviews with importers, experts
etc. per country analysed have
been considered for this survey.
These comments have been considered mainly in the chapter consumption trends, role of trade fairs
and outlook on future garment
imports.
5
PRODUCT GROUPS
ANALYSED
This market survey covers knitted
and woven outerwear and sportswear for men, women and children. It must be considered that in
the official statistics no difference
is made between adults and children, or in end use, such as conventional, casual or leisure clothing. In the analysis of the clothing
imports, the differentiation between sexes has been made as far
as possible.
Underwear, nightwear, hosiery,
swimwear, work wear as well as
clothing accessories and home
textiles have not been covered.
Within the EU statistical system
products are specified by the
Harmonized Commodity Description and Coding System (HS).
These numbers clearly identify a
specific product. The product
categories covered by this study
are:
- HS 61.01 until 61.14
(knitted or crocheted)
- HS 62.01 until 62.11
(woven)
A more detailed description of the
product groups analysed can be
taken from the import statistics in
all countries analysed.
Switzerland has a national coding
system for the registration of
imports and exports, which nevertheless is based on the HS code
system of the European Union.
Thus, the HS codes referred to in
this study are also applicable for
the Swiss market.
6
Market Survey of the 10-EU
New Member Countries
The European Union (EU), which
had consisted of 15 member
states since 1st of January 1995,
was enlarged by ten new joining
countries in May 2004. They are
the Czech Republic, Estonia,
Slovakia, Cyprus, Latvia, Lithuania,
Malta, Slovenia, Poland and
Hungary. Negotiations are in progress with a number of other candidate member states such as
Romania, Bulgaria and Turkey.
Table: Population and GDP of EU-10 countries (data for 2004)
Countries
Population
million
Age 0-14
%
Age 15-64
%
GDP €
billion
GDP per
capita
2003 EU25 = 100
New (10) EU countries
74.1
16.7
69.2
477
60
Poland
38.2
17.2
69.8
196
46
Czech Republic
10.2
15.2
70.9
87
69
Hungary
10.1
15.9
68.6
81
61
Slovakia
5.4
17.6
71.0
33
51
Lithuania
3.4
17.7
67.3
18
46
Latvia
2.3
15.4
68.5
11
42
Slovenia
1.4
14.6
70.4
26
77
Estonia
1.4
16.6
67.6
9
48
Cyprus
0.7
20.0
68.1
12
83
Malta
0.4
18.2
68.8
4
73
Source: Eurostat, 2005
7
Clothing Consumption
In 2004, consumer clothing
expenditure in the EU-10 countries was valued at € 11.1 billion,
which is equivalent to only 4.3
percent of the EU-15 consumption of € 261.3 billion in that year.
These figures show that the absolute size of the clothing markets of
the 10 new EU members is small
compared to the ‘old’ EU-15
countries. However, due to the
impressive growth rates in consumption, some key data and initial recommendations for apparel
manufacturers from developing
and emerging markets shall be
given below.
Looking at the per capita consumption, the picture is similar: In
the EU-10 in 2004 it averaged
€ 151, much less than the € 682
average in the EU-15 markets. It
should be noted that this figure
varies from country to country,
ranging from an average of € 123
in Slovakia to € 397 in Slovenia.
There will also be 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.
More details can be taken from
the table below.
When comparing the consumption in the EU-10 and EU-25 country blocks, the results are as follows: Consumption of clothing in
the EU-25 grew by 5 percent
during the period 2001-2004
almost 2 percent of which was in
2003-2004 and 82 percent of
which was outerwear. Clothing
consumption in the ten new EU
countries (since 1 May 2004)
showed a much stronger increase
(26% during the period 20012004) than the EU-15 countries
(5%), but total consumption
remained rather low.
8
Table: Consumer clothing expenditure in the EU-25 countries,
2000-2004 (in € million)
Country
EU-15
countries
2001
2002
2003
2004
Per capita
Outerwear
consumption
consumption
in 2004 (in €)
in 2004
250,379
253,302
256,688
261,257
682
215,345
Poland
4,019
4,411
4,836
5,054
132
4,074
Czech Republic
1,498
1,640
1,756
1,842
181
1,490
Hungary
1,104
1,259
1,421
1,471
146
1,148
Slovakia
585
598
628
662
123
585
Slovenia
565
613
721
794
397
627
Estonia
137
150
166
181
140
146
Latvia
312
329
362
401
174
322
Lithuania
378
401
418
445
131
358
Cyprus
239
242
248
260
371
196
75
79
82
83
208
65
EU-10
countries
8,912
9,722
10,638
11,193
151
9,011
EU-25
countries
259,291
263,024
267,326
272,450
600
224,356
Malta
Sources: Euromonitor, Retail Intelligence, Several national statistics, CBI, 2005
In terms of future potential, it is
clear that the new EU member
states, in particular the Czech
Republic, Hungary, Slovenia and
Poland, offer greater scope for
market growth as incomes and
spending patterns approach
European norms, although this
may still take many years.
A general look at the ten new EU
countries shows that Poland
represents 45% 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 difference 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 briefly
highlighted below.
9
Poland
According to the Austrian based
Regio Plan Consulting in Vienna,
the annual per capita consumption for clothing in 2004 in Poland
was as follows: Polish women
invested € 105 per year whereas
the men only spent € 75. In comparison, the Austrian consumer
spends € 655 (women) and € 450
(men). These figures illustrate that
the sales potential in markets like
Poland is increasing, but still from
a very low level.
According to CBI research, 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 10-15 percent of Poles are guided by genuine needs when shopping 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
Figure 2-1: Age structure of the French population by sex, 2000
Consumption Figures
2002
2003
2004
2005 (f)
2006 (f)
Total consumption
123.6
125.1
127.8
134.1
142.9
4.4
4.8
5.1
5.3
5.6
3.6%
3.8%
4.0%
4.0%
4.0%
3.5
3.9
4.1
4.3
4.5
80.1%
80.3%
80.4%
80.5%
80.5%
Of which: Clothing
In % of total consumption
Of which: Outerwear
In % of total clothing
expenditure
Source: Eurostat and CBI, 2005
*in € billion at constant 2002 prices - (f) = forecasts
With an increasing population and
an economy which was also
affected by the economic recession, the Polish GDP nevertheless
grew by 3.8 percent in 2003 to
€ 185 billion at market prices.
Further growth is forecast to
€ 245 billion in 2006. The Polish
apparel market was worth € 5.1
billion in 2004, of which 80% was
for outerwear. However, thanks
to the economic climate and
consumer confidence in the EU,
demand is rising.
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.
10
Czech Republic
According to a GFK Market Study
of 2005 until 2015, the per capita
income of the Czech population
will increase from 70% of the EU25 average to 84%. In the capital
Prague, even today 50% of the
population have an income above
the EU-25 average. The shares
for clothing spending can be split
up as follows (consumers > 15
years of age):
46%
small spenders
33%
medium spenders
21%
big spenders
(>200 € annually)
15%
very big spenders
(>500 € annually)
For the group of big spenders,
brands, quality and a large choice
play a major role when selecting
the type of shop for the clothing
purchase.
The buying frequency, namely 3
times per year, for the most
favourable product groups is as
follows:
48%
Casual wear
41%
Underwear
28%
Childrenswear
26%
Shoes
18%
Active Sportswear
13%
Jeans
Compared to the EU-15 countries,
the purchasing frequency for
jeans in the Czech Republic is very
low. One explanation might be
that the consumption patterns for
clothing are more traditional and
e.g. the wearing of jeans in the
office is not as common as in the
Western part of the EU.
Looking at the preferred distribution channels, 30% of the Czech
consumers buy their clothing in
their ‘regular shop’, normally the
boutique or specialised shop in
town. The major clothing shops
are Kenvelo, Orsay and Benetton.
Compared to Poland, per capita
expenditure for clothing is slightly
higher in Czech Republic: € 163
for women and € 95 for men (all
figures
for
2004.
Source:
Regioplan Consulting Vienna).
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. the British Tesco, the German
Metro/Kaufhof Group, the French
Carrefour, the Dutch Ahold, stimulated retail sales, with most hypermarkets also selling non-food
items such as clothing.
11
Since 2000, the GDP has grown
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.
According to other sources, the
Czech per capita consumption of
clothing was € 181, among the
highest of the accession countries. Consumer expenditure is
forecast to increase by just over 2
percent each year in constant
value terms between 2005 and
2009.
Hungary
The third country profiled in this
survey has undergone some economic turbulence especially in the
1990s. Hungary has traditionally
always been oriented more
towards the ‘West’ and has had a
comparatively high standard of
living. After a tough period of
recession and high inflation rates,
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
the Czech Republic, Hungary also
created an open climate for
foreign investment and attracted
shopping mall developers and
large foreign chains.
The table ‘Population and GDP of
10-EU countries’ above indicates
that clothing consumption by 10.1
million citizens in 2004 amounted
to € 1,471 million, a share of 13 percent of the EU-10 total. 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%.
The more affluent Hungarian
people in the urban areas have
become, as in other ‘city areas’ in
the Central and Eastern European
countries, increasingly interested
in fashion. The larger West
European chains also play a major
role in the clothing retail scene.
Marketing and Distribution
Although playing a comparatively
small role in clothing imports at
present, the ten new EU members are confronted with a strong
increase of clothing imports mainly from Asia which has lead to
often negative trade balances.
The local industry suffers from
these Asian imports and can not
always compensate the decrease
in national sales by increasing
exports, mainly to the EU-15.
12
Simultaneously, the Czech clothing industry for example is
fighting against increasing production costs. Salaries in apparel
production have been increasing
by approximately 2-3% annually
since 2003 (9 000 CZK (286 €) in
01/03 to 10 000 CZK (318 €) in
02/05). In the same period, the
number of employees in the
Czech apparel sector has been
reduced from 32,000 to 24,000.
As a consequence of these economic developments, for apparel
manufacturers from developing
countries, there are generally
comparatively good sales chances in the ten new EU member
countries also in the coming 5-8
years. However, the distribution
structures are not so well developed and targetable as in the EU15 countries. Importers are there,
but difficult to identify, and quantities sold are much smaller.
A substantial part of the new EU
clothing markets is covered by the
large chains and stores from EU15 countries. Companies like
TESCO, Metro/Kaufhof, Carrefour
Karstadt, Benetton, H&M, C&A
etc. started their expansion activities immediately after the disruption of the former USSR and the
opening of the markets in the
early 1990s. Obviously, overseas
suppliers delivering to the large
European chains and supermarkets are already selling to the EU10 countries, although in an indirect way.
A good sales opportunity for clothing manufacturers from abroad
is participation in the leading trade
fair for Central and Eastern
European countries, the STYL
International Fashion Fair of
Fashion and Textiles, which takes
place twice annually (February
and August – www.bvv.cz/styl) in
Brno – Exhibition Centre. The
number of exhibitors in August
2005 was 682 firms from 23
countries. 16,030 visitors attended the fair. The STYL is connected with KABO, the international
fair for footwear and leatherwear
(www.bvv.cz/styl).
In the August 2005 show there
were exhibitors from Turkey,
China, India, Indonesia and
Pakistan. When talking about marketing instruments to enter the
Central and Eastern European
apparel markets, the STYL
Fashion Fair definitely is a good
choice, probably by visiting the fair
first to get an impression of the
presentation and the (competing)
exhibitors.
13
Outerwear
FRANCE
1
FRANCE
1.1 GENERAL ECONOMIC
SITUATION
According to INSEE, the French
National Institute of Statistics and
Economic Studies, the French
Gross National Product (GNP)
increased in 2004 by 2.3%, in
2003 by 0.8% and in 2002 by
1.2%. This was slightly above the
average growth rate of other eco-
At the beginning of 2006, the
French population is in quite a
despondent mood: first was the
vote against the new EU constitution; it is more or less dissatisfied
with the government; riots take
place in Paris suburbs; there are
large deficits in the state budget
and the social systems; there is a
continued high unemployment
rate and the economy is suffering
Figure 1-1: Development of the French unemployment rate over the past 5 years
10.2
10
9.8
9.6
% 9.4
9.2
9
8.8
8.6
8.4
2000
2001
2002
2003
2004
2005
Source: INSEE
nomies in Europe. With 2.2% in
2004, the overall inflation was in
line with the rates of other
European countries.
from decreasing competitiveness.
All these factors have led to a high
degree of uncertainty among the
consumers, resulting in a low consumption rate.
A major problem for the French
economy is the unemployment
rate, which was 9.9% in 2004.
Although this rate has slightly
declined in 2005, it is still higher
than the average rate of 9.0% in
the European Union and much
higher than in Switzerland.
14
1.2 THE MARKET FOR
OUTERWEAR
27.8% in 2001 to 53.2%, total
exports being twice as high as
three years previously (+116%).
1.2.1 Market size
In 2004, the market size of outerwear in France amounted to 18.2
billion €, which is 78% of the total
clothing market. The French clothing market is forecast to grow
steadily between 2004 and 2007
to reach a value of 33.6 billion €,
of which up to 28 billion €
will be outerwear. France, which
accounts for 13% of the population of the 25-member EU, is the
fourth largest clothing market
behind Germany, Italy and the
United Kingdom.
Apparel imports, at 12.76 billion €,
are slightly higher than local production at 11.63 billion €. The statistics show a 25% increase in
import flow compared to 2001.
Local production increased by
13.3%, of which goods amounting to 6.19 billion € are exported.
The share of exported French
production
increased
from
Table 1-1: Size of the French
outerwear market, 2003
in bn. €
Import Market
12.76
Local Production
11.63
Exports
Total Market
6.19
18.20
Source: Ministry of Economy, Finance
and Industry , 2005
Local production is focused on
womenswear. Consequently, the
share of imported outerwear for
women is low at about 51%. At
the same time, three times more
womenswear than menswear is
exported.
1.2.2 Market characteristics
French clothing, French design
and French labels have a long
tradition and a good reputation.
Clothing labels originating from
France are internationally considered to be fashionable and of
good quality. The internationalised French expression ‘haute
couture’ signals the worldwide
importance of French fashion
and French clothing brands.
Fashion is often associated with
French fashion design.
Compared to other EU countries,
France is said to be dominated
by price-conscious consumers.
The reasons for this can be found
in an unemployment rate of
around 10% and a relatively low
economic growth rate. On the
other hand, the French are said
to be very fashion-conscious too.
However, spontaneous purchases are comparatively rare
because of price sensitivity.
There is a high share of independent retailers in France that are
run as smaller boutiques all over
the country.
15
However, the other extreme is
also seen in the retail market: the
so called ‘centrales d’achat’, huge
supermarkets
(Carrefour,
E.
Leclerc, Intermarché etc.) and
clothing chains like Promod,
Pimkie, Kookai etc., have strengthened their in the French clothing
market. In this scenario it is obvious that the French clothing retail
system is very fragmented. 91% of
the total turnover (10 billion €) is
carried out by companies with 20
to 250 employees. Altogether, the
industry employs 60,000 people.
France has the largest network of
outlets and franchise systems
operated by clothing manufacturers within Europe. Both systems,
franchising and own outlets,
merge with each other and
cooperate very closely.
1.2.3 Demographic Characteristics
As Figure 1-2 shows, in the longterm the birth rate declines and
thus the young population in
France shrinks. The French population (60.7 million inhabitants in
total) is, as in other European
countries, getting older on average. The age groups from 29 to 59
have the highest shares in the
population structure.
Though the share of the young
population is shrinking, the consumption of womenswear in the
same age group is relatively high.
It can be said that the younger
female consumers in particular
are buying high quantities of clothing - dominated by the wish for
fashionable
casual
clothing.
Overall, nearly half of all womenswear items are bought by women
between 13 and 34. Note that this
age group represents only 27.7%
of French women!
Figure 1-2: Age structure of the French population by sex, 2005
France: 2005
100+
95-99
90-94
85-89
80-84
75-79
70-74
65-69
60-64
55-59
50-54
45-49
40-44
35-39
30-34
25-29
20-24
15-19
10-14
5-9
0-4
male
2,5
2,0
1,5
1,0
0,5
1,0
0,5
0,0 0,0
Population (in millions)
female
1,5
2,0
Source:
U.S. Census
Bureau,
International
Data Base
2,5
16
With an average outerwear budget of 349 € per capita, the French spent
1.2% more than in 2003. Outerwear expenditure can be broken down
into major segments, as shown in figure 1-3.
Figure 1-3: Breakdown of outerwear expenditure by segment in 2004
Children aged 2-7
6%
Children aged 8-14
8%
Women
50%
Menswear
36%
Source: Interselection, 2005
1.2.4 Retail Sales by product category
Table 1-2 gives a brief overview of
the market share for the most
relevant clothing segments, divided into men and women.
Formerly, French consumers tended to buy more formal clothing
than
consumers
in
other
European countries. This share
has declined, to the advantage of
basic leisurewear sales, which are
now higher than in most other EU
countries.
Table 1-2: Market share
of outerwear by sex,
2004
Source:
CBI Market Survey, 2005
in % of total value
Men
Women
Formal Clothing
37
40
Casual wear
31
29
Basic leisure wear
27
26
Active Sports wear
5
5
100
100
TOTAL
17
Table 1-3: Sales of womenswear by product categories, 2003 – 2004
in 1000s of articles
2003
2004
+/-from previous year
1313
1412
8%
Suits, outfits
12755
11104
-13%
Dresses
15062
15044
0%
Skirts
27717
28072
1%
Jackets & blazers
2430
2356
-3%
Trousers (formal)
41539
42647
3%
Trousers (leisure)
19683
22500
14%
Trousers (sports)
1675
2051
22%
24389
27208
12%
4519
3821
-15%
Blouses
24804
24410
-2%
Sweat-shirts & polos
12248
13341
9%
T-Shirt
76977
85890
12%
Pullovers, waistcoats, cardigans
55959
56933
2%
Camisoles & slipovers
23383
23572
1%
Swimsuits
9956
9721
-2%
Anoraks, parkas, jackets
9349
11016
18%
Coats etc.
6211
7345
18%
Pants
3615
2831
-22%
Tracksuits
2219
2076
-6%
Other pieces of outerwear
8979
8180
-9%
Other small pieces of outerwear
7077
6687
-6%
TOTAL
391860
408218
4%
Total pieces of outerwear
177562
183536
3%
Total small pieces of outerwear
214298
224682
5%
Waterproof coats
Source: Fédération Française des Industries du Vêtement Féminin, 2005
Jeans
Shorts & bermudas
Table 1-3 indicates the sales development of the women’s clothing
segment in thousands of articles.
Overall, a modest increase in sales
can be observed between 2003
and 2004. Small articles of outerwear particularly contributed to
this effect. However, not all pro-
duct categories developed evenly. Parts of this evolution can be
explained by external factors such
as the weather. For instance, in
the extremely hot year of 2003,
the French bought less anoraks
but more shorts than in 2004.
18
1.2.5 Consumer behaviour
1.2.5.1 Consumer preferences
Table 1-4 gives a good survey on
sales made by different clothing
retail channels in 2002. Compared
to previous years, sales in independent clothing shops are
decreasing. They once used to be
the most important location for
the French to buy their clothing.
Now they are (at 18.6%) behind
the multiples that have a share of
24.8%. The trend towards more
concentration is also reflected by
the relatively high share of superand hypermarkets (15.2%). Mail
order houses took some 8.6% of
sales value in 2002. However,
they are expected to enjoy much
higher rates in the future due to
the rise of the Internet.
In 2003 in France, outerwear
retailers had on average 3.2 outlets for menswear and 3.8 outlets
for womenswear. The principal
names of the preferred shops for
men, women and children are
C&A, Kiabi and Eurodif, where the
consumer finds more ‘general
clothing’ with no specific purpose.
The main retail companies for
French women are Pimkie,
Promod and Chamaïeu Femme.
The French men prefer to buy
their clothing at Celio, Chamaïeu
Homme, Devred, Manarès and
Burton. The favourite shops for
childrenswear are Zannier, Jacadi
and Catamani, all of which are
specialised shops offering only
childrenswear.
As with the young generations in
other European countries, French
children like U.S. fashion styles
and are influenced by American
culture. Therefore, American
brands and/or brands perceived
to be American are particularly
successful in the childrenswear
segment. The youngsters are also
interested in sportswear, which is
used also as everyday clothing.
Sports like rugby, football and basketball are quite popular.
Table 1-4: Market share of clothing retail
channels, 2003
in%of total sales
Independents
18.5
Clothing multiples
24.8
Department & variety stores
6.8
Mail order
8.6
Super & hypermarkets
15.2
Sport shops
Specialist large surface stores
7.6
10.9
Others
Total
7.6
100.0
Source: UFIH, French Apparel Association, 2005
The trends for ‘American’ styles
strongly influenced by the ‘HipHop Scene’ and the preferred
sportswear are expressed in the
sales of items like t-shirts, sweatshirts, polo-shirts in combination
with baseball caps. Young consumers’ demand for sportswear helped the largest sports retailer
Decathlon to increase its sales of
children’s clothing in the last few
years.
19
As regards fabrics, there is a trend
towards natural, easy to wear and
modern fibres (jersey, cotton flannel, stretch, technical fabrics,
polar fleeces). The children’s
parents prefer clothing which is
easy to wash and which requires
no ironing. However, 70% of the
clothing of 4 to 14 year olds is
selected by the children themselves and not by the parents.
Children from six years up develop brand awareness, which is
mainly formed by their peer group
and TV advertising.
1.2.5.2 Consumer expenditures
Recalled that France has a population
of 60.7 million inhabitants, the per
capita expenditures for clothing are
slightly below the average in the EU.
As Table 1-4 shows, the share of consumption of the average French households for clothing (in all consumption) remained rather stable at a level
around 3.6%.
According to a study by OSEO, clothing consumption has stayed stable
in constant Euros since 1986. OSEO is
a syndicate of the French Innovation
agency, Anvar (agence française de
l’innovation), the development bank
for small and medium enterprises,
BDPME (Banque du développement
des PME), and the agency for small
and medium enterprises, ADPME
(Agence des PME).
Table 1-5: Development of consumer expenditure in France, 2001-2004
(in billion €)
2001
2002
2003
2004
812.7
840.6
866.9
874.3
30.5
30.9
31.3
31.7
3.8
3.7
3.6
3.6
Outerwear consumption
25.0
25.5
26.2
26.6
In % of total clothing consumption
82.0
82.3
83.9
84.0
Total consumption
Clothing consumption
In % of total consumption
Source: CBI Market Survey, 2005
20
Table 1-6: Consumer expenditures on outerwear clothing by sex
(in billion €), 2001 - 2004
2001
2002
2003
2004
Men & boys
8.9
9.1
9.4
9.6
Women, girls & infants
16.1
16.3
16.8
17.0
25.0
25.4
26.2
26.6
Total
Source: CTCOE, 200)
According to Table 1-6, which considers the expenditures on outerwear
by sex in France, consumption of women’s and girls’ clothing was 17 billion € in 2004 and accounted for 63.9% of total clothing consumption.
1.2.6 Price development of clothing
According to CTCOE, clothing prices generally develop more weakly than the average inflation rate.
With the exception of 2001-2002,
when prices went up 0.7% caused by the introduction of the
Euro, a general downward tendency can be observed. Prices
went down by 2.2% from 2002 to
2003, and by 3.5% in the period
2003-2004. For the period 20042005, the deflation is estimated at
5%. The weakness of the US
Dollar and the elimination of trade
barriers with China with the consequent increased imports of low
priced clothing explain this price
decline.
The category of women’s, girls’,
and infants’ wear is especially
affected by the downturn of prices. In contrast, menswear is less
affected by falling prices. The
price development of womenswear can be interpreted from
Table 1-7: While consumption in
value went down by 0.4%, consumption in volume increased by
4.2%. This diverging development
of import value and import volume
does not necessarily mean that
more lower quality clothing is sold
in the market. However, it indicates a clear price deflation for
outerwear in the market (with falling prices).
Table 1-7: Price development of womenswear, 2003-2004
In million €
In million articles (large + small)
2003
2004
+/- from previous year
10.634
10.592
-0.4%
391.860
408.218
+4.2%
Source: CTCOE (2005) and Fédération Française des Industries
du Vêtement Féminin, 2005
21
Looking at the imports of outerwear in tons, as indicated in Table 1-8, the
same picture emerges: The growth rate of imports in Euros is much
smaller than increase in tons imported. Obviously, the conclusion is the
same: falling prices.
Table 1-8: Price development of imported outerwear, 2002 - 2004
Imports in 1,000 €
Imports in tons
2002
2003
2004
+/- from
previous year
10 905 408
11 114 361
11 266 609
1.4%
467 294
484 453
520 358
7.4%
1.3 IMPORTS
1.3.1 Total imports
According to Eurostat, total
imports of apparel into France
amounted to 11.3 billion € in 2004.
Since 1999, there has been a continuous increase in clothing
imports. The share of imports of
outerwear in total French clothing
consumption is over 30%.
Increasing imports are more than
balancing the shrinking domestic
outerwear production.
A comparison of the following
Table 1-9 and Table 1-10 shows
that the proportion of men’s and
womenswear imports into France
are different for knitted and woven
outerwear. While the imports of
woven outerwear for men (2,290
million €) and women (3,041 million €) are at a similar level, the
imports of knitted womenswear
(641 million €) clearly supersede
the imports of knitted menswear
(233 million €). The imports of
woven outerwear are, depending
on the product category, five to
nine times higher than the imports
of knitted outerwear.
According to Table 1-10, the
imports of knitted outerwear into
France increased steadily from
2002 to 2004. Active sportswear
such as tracksuits, ski suits and
swimwear is particularly worth
mentioning. Knitted outerwear for
both sexes is by far the largest
sector with 3,403 million € in
2004.
22
Table 1-9: Imports of knitted outerwear by sex and product categories, 2002 - 2004
2002
2003
2004
Tons
1,000 €
Tons
1,000 €
Tons
1,000 €
644
19,655
866
22,614
974
23,826
Suits, jackets, ensembles,
trousers, shorts etc. (61.03)
3,117
60,640
4,101
81,328
3,967
75,865
Shirts (61.05)
7,981
169,805
7,147
149,689
7,364
133,767
Total
11,743
250,099
12,115
253,631
12,305
233,458
Total extra EU
7,586
128,340
6,849
109,634
7,043
104,699
2,055
52,545
2,571
62,346
2,878
62,249
Suits, outfits, jackets, dresses, skirts, trousers (61.04)
19,528
356,473
20,308
363,056
21,004
362,060
Blouses and shirt
blouses (61.06)
10,848
230,738
11,461
204,762
11,746
216,714
Total
32,431
639,756
34,340
630,164
35,628
641,023
Total extra EU
19,189
339,677
19,657
298,815
21,475
314,680
T-shirts, singlets etc. (61.09)
64,345
1,129,123
67,370
1,214,957
79,019
1,351,513
Jerseys, pullovers, cardigans, waistcoats etc. (61.10)
84,352
1,769,857
88,967
1,821,702
88,990
1,749,658
16,631
324,309
17,044
292,379
17,776
281,988
1,193
26,067
1,000
20,063
1,177
19,665
Total
166,520
3,249,355
174,381
3,349,101
186,962
3,402,824
Total extra EU
106,384
1,743,234
112,526
1,688,119
126,522
1,820,887
Track suits, ski suits and
swimwear (61.12)
5,904
165,710
6,704
176,369
9,726
213,394
Other sportswear (61.14)
2,815
82,563
4,096
107,249
3,812
118,256
Total
8,718
248,272
10,799
283,618
13,538
331,650
Total extra EU
4,188
106,289
4,953
116,435
6,696
139,922
For men or boys
Coats, raincoats, anoraks
etc. (61.01)
For women or girls
Coats, raincoats,
anoraks etc. (61.02)
For both sexes
Babies garments (61.11)
Impregnated clothing (61.13)
Active Sportswear
23
In comparison to previous years,
the share of the non-EU countries
in the knitted outerwear imports is
generally decreasing, while the
overall trend in France is an
increase in imports. However,
according to ‘Journal du Textile’,
the French textile industry is
beginning to feel the consequences of the elimination of trade barriers. The French producers are
especially afraid of Chinese
imports that are gaining significant
market share at a fast pace.
Table 1-10 indicates that there are
more imports of woven menswear units but less in € compared to
the ladies’ segment. The import of
the women’s woven segment
increased from 2017 million € in
1999 to 3041 million € in 2004, an
increase of more than 50% within
6 years! Woven suits for men
(1475 million €) and women (2240
million €) have the highest share of
imports.
The shares of non-EU countries in
the woven outerwear segment
shows different developments:
For example, in terms of quantity
(tons), the share of non-EU countries in the women and girls’
outerwear category reached
59.5% in 2001. Sales possibilities
for foreign manufacturers into
France have definitely increased
during this period. On the other
hand, non-EU countries hold only
55.1% of the money value share in
the same category. This indicates
that foreign manufacturers need
to compete on the price level in
order to make their (volume)
share of the market.
24
Table 1-10: Imports of woven outerwear by sex and product categories, 2002 - 2004
2002
2003
2004
Tons
1,000 €
Tons
1,000 €
Tons
1,000 €
Coats, anoraks, windcheaters etc, (62,01)
16,127
335,722
20,835
343,494
21,516
336,965
Suits, jackets, outfits, trousers, shorts etc. (62,03)
66,619
1,403,147
65,059
1,389,664
71,271
1,475,257
Shirts (62,05)
20,713
490,493
20,178
497,851
20,358
477,881
103,460
2,229,363
106,072
2,231,009
113,145
2,290,104
70,684
1,288,595
67,077
1,194,429
69,524
1,213,860
Coats, capes, anoraks,
windjackets etc. (62,02)
18,270
412,221
21,612
429,644
25,664
451,093
Suits, outfits, jackets,
dresses, skirts, trousers
(62,04)
87,395
2,135,342
86,276
2,169,361
93,413
2,239,584
12,142
375,787
11,382
380,466
10,561
350,569
117,807
2,923,351
119,271
2,979,471
129,638
3,041,246
71,826
1,643,966
72,836
1,645,035
77,177
1,675,767
Babies garments (62,09)
10,928
166,757
7,623
157,134
8,321
155,898
Other incl. Impregnated
(62,10)
15,687
270,364
19,852
282,333
20,822
272,649
26,615
437,121
27,475
439,467
29,142
428,547
17,051
255,044
13,537
221,331
14,523
221,630
For men or boys
Total
Total extra EU
For women or girls
Blouses and shirt
blouses (62,06)
Total
Total extra EU
For both sexes
Total
Total extra EU
25
1.3.2 Outward Processing Trade (OPT)
The analysis of the largest suppliers of OPT outerwear into
France in Table 1-11 shows a stabilising trend: for the first time in
years, OPT imports to France
have slightly increased in the
period 2003 to 2004. Previously,
OPT imports strongly and continuously declined from 53.7 million €
in 1999 to 24.1 million € in 2003.
Overall, the OPT business plays a
minor role in France, accounting
for only 0.22% of the total imports.
The Ukraine is by far the most
important OPT partner country for
France, although the value of
imported goods was more than
twice as much just three years
ago. Romania is second, as it was
in the period 1999 to 2002, but
Bulgaria could catch up with China
that used to rank in position No. 3.
The growth rates show that OPT
business can fluctuate dramatically, e.g. Morocco had an increase
of +11100% in 2002 and a decrease of -64% in 2003.
While in 1999 and 2000, total extra
EU OPT exports to France were
worth more than 50 million €, they
were only about half this value in
the last three years, although the
new member countries of the
European Union (May 2004) are
not yet taken into account by
these figures.
Table 1-11: Largest supplying countries of OPT outerwear, 2002 - 2004
Positon
Country
2002
in 1,000 €
+/- from
2002
2003
in 1,000 €
+/- from
2003
2004
in 1,000 €
1
Ukraine
8609
-43%
4928
114%
10564
2
Romania
8180
-26%
6076
-18%
4981
3
Bulgaria
2554
73%
4418
-22%
3445
4
Belarus
1771
21%
2141
23%
2642
5
China
1767
-21%
1388
-20%
1114
6
Tunisia
943
-29%
671
62%
1087
7
Morocco
4
11100%
448
-64%
161
8
Madagascar
596
17%
698
-98%
12
9
Bosnia–
Herzegovina
54
-81%
10
-30%
7
Extra EU 15
26212
-8%
24103
1%
24354
26
1.3.3 Largest suppliers of outerwear
Table 1-12 gives a very good overview of the twenty major countries
supplying clothing to France from
2002 to 2004. The share of clothing imports from extra EU countries in France was 51.9% in 1999
and had increased to 55.9% in
2001, but slightly decreased again
in 2004 to 53.6%. The imports
from outside the EU in 2004
amounted to 6037 million €, whereas 5229 Million € were imported
from the European Union. While
the total imports to France
amounted to 7952 million € in
1999, they exceeded 11266 million
€ in 2004, an increase of 41.6%.
The development of imports from
countries outside the EU showed
a mixed trend: From 2002 to
2003, they fell by 3.7%, but then
increased again by 3.4%, nearly
recovering to the 2002 level in
2004. The growth rates of imports
from EU countries also had a
mixed development, following a
mirror trend to the imports from
‘extra EU’ countries. From 2002
to 2003, they increased by 8.9%
and then declined by 0.9%.
Overall, the growth rates of total
imports showed a very steady
development, increasing by 1.9%
and by 1.4%, respectively.
The main import countries for
France from outside Europe are:
China (916 million €), Tunisia (896
million €) and Morocco (802 million €). Morocco and Tunisia are
French speaking countries; this is
a very important advantage for
them when exporting to France.
Typically, the French consider
themselves to be rather weak in
foreign language skills. Moreover,
they are not very keen on speaking another language than
French. This fact should be considered by foreign manufacturers
wishing to sell in the French market. This fact also explains the
leadership position of the relatively small EU country Belgium,
which is characterised as a multilingual country, including the
French language. Much business
with Belgium is done on a subcontracting basis.
27
Table 1-12: Largest supplying countries of outerwear, 2002 - 2004
Positon
Country
2002 in
1,000 €
+/- from
2002
2003 in
1,000 €
+/- from
2003
2004 in
1,000 €
1
Belgium
1474228
3%
1520280
1%
1539385
2
Italy
995153
15%
1145757
-6%
1081298
3
China
788907
0%
789887
16%
916019
4
Tunisia
986615
-5%
935339
-4%
895823
5
Fr Germany
734880
9%
804391
6%
850596
6
Morocco
924920
-9%
838781
-4%
801565
7
Netherland
425277
15%
489986
-4%
471240
8
Turkey
442269
3%
454660
1%
460481
9
Spain
375641
15%
430631
-1%
425850
10
Bangladesh
339109
-2%
333753
23%
409037
11
India
364471
-1%
361561
0%
361469
12
Portugal
395071
-4%
380991
-12%
333898
13
UK
224596
27%
284430
9%
308772
14
Romania
278282
2%
284907
8%
308363
15
Mauritius
255167
-11%
227458
-17%
188896
16
Switzerland
74906
61%
120419
38%
165759
17
Bulgaria
143639
2%
146300
6%
155219
18
Thailand
94616
-1%
93543
42%
133288
19
Hong Kong
118967
-18%
97491
20%
116845
20
Poland
133867
-5%
127337
-16%
107192
EU
4843738
9%
5275949
-1%
5229320
Extra EU
6061670
-4%
5838412
3%
6037289
28
1.4 TRADE STRUCTURE
1.4.1 Developments in the retail trade
It would be too simple to assume
that price is the only area of competition in the French market.
Quality, style and trend also play
an important role. Marks &
Spencer withdrew from the
French market while international
chains gained market share. H&M
(Hennes & Mauritz) in particular
had extraordinary growth rates
(33% more growth in the first nine
months of 2005) due to their reliance on Chinese garments, as
reported by ‘Journal du Textile’.
The clothing retail sector in France
went through major changes over
the last years. From the beginning
of the 1980’s, consumers were
used to independent shops that
offered various brands. Apparel
sold by independent retailers in
France accounted for 39.1% of
total sales in 1995. Within the last
6-7 years, the multiples also (as in
other European countries) invaded France, and consumers are
more likely to buy in specialty
chain stores with large outlets.
According to OSEO, the large
chains (e.g. hypermarkets, specialised chains) gained 17 points of
market share in the last 12 years at
the expense of independent retailers who lost 15 points during the
same period. In sum, the trend
towards more concentration continues.
This development enhanced
lower prices for outerwear
through the greater competition
and number of goods imported
by these chains. These companies, of which most are French
chains, have a very up-to-date
concept with a high standard in
logistics, IT and advertising. There
seems to be a real competition on
who is the next to open up a highend logistics centre. The professional management system in the
clothing sector has swept away
small retailers. This development
has been a concentrated process
that has given the retailers more
purchasing power against the
manufacturers in comparison with
the formerly fragmented small
retailers.
The multiples are now in the position to react more quickly to consumer demands by following a
strategy of greater ‘just in time’
supply to the shops and the consumers. The chains act like manufacturers in this respect. However,
the link to the manufacturers has
become closer. The importance
of middlemen has been reduced
and retailers buy directly from the
clothing companies (abroad). The
increased purchasing power of
the retailers stimulated some clothing manufacturers to build up an
independent distribution system
by operating self-owned outlets
or using a ‘franchise system’.
Online sales are also growing fast
in France, by 3% in 2004 and by
29
45% already in the first half of
2005. Factory Outlet Centres
have also gained importance, at
present (2005) there are 16 of
them spread around the country.
More are planned with an additional total space of 180,000 sq. m.
1.4.2 Leading retailers
As mentioned previously, the
French market shows a high
degree of concentration at clot-
hing retail level. The large outlets
(called ‘surfaces’ in French) are
spread all around France. Table 113 gives a good overview of some
of the most important French clothing multiples. The retail chain
Jacadi with 400 outlets is number
one in France. It must be mentioned, however, that Groupe
Zannier takes a worldwide leading
position in childrenswear. Typical
for the French market is the
strong market presence of childrenswear shops.
Source: CBI Marketing Handbook, 2005
Table 1-13: Important clothing retail chains by number of outlets, 2005
Retailer
Parent company
Sector
Number of
outlets
Jacadi
Jacadi
Children's wear
400
Camaïeu Femme
Cime-Camaïeu
Womenswear
373
Promod
Promod
Womenswear
370
La Halle
Vivarte
General Clothing
300
Groupe Zannier
Groupe Zannier
Children's wear
270
Pimkie
Auchan Mulliez
Womenswear
258
Okaïde
Okaïde
Children’s wear
250
Décathlon
Auchan
Sportswear
220
Natalys
Natalys
Baby/maternity wear
200
Prenatal
Prenatal
Baby/maternity wear
96
Catamini
Groupe Zannier
Children's wear
95
Devred
UOCR Eurodif
Menswear
92
Eurodif
UOCR Eurodif
General Clothing
91
Kiabi
Auchan Mulliez
General Clothing
81
C&A
C&A (NL)
General Clothing
74
In terms of market share, the group Vivarte is the leader with 10% of total
sales in 2004. Vivarte (formerly Groupe André) is a one of Europe's leading distributors of footwear and apparel. It operates about 2,500 stores
under 12 different banners.
30
1.4.3 Distribution Channels
1.4.3.1.1 Independent
specialised retailers
1.4.3.1 Retailers
According to Interselection, the
French distribution system still has
a large share of ‘independents’
with 22.2% in 2004. Recall that
the French Apparel Association
UFIH reported a share of only
18.5% in 2003. As can be seen in
Figure 1-4, organized retail plays a
Figure 1-4: Amounts spent on
outerwear by retail channel in 2004
The share of independent retailers
decreased from 28% in 1995 to
18.5% in 2003. Independent retailers are defined as retailers with
less than five ‘active’ outlets.
There are around 25,000 independent outlets in France. Their
buying is sometimes linked to
franchise organisations. Although
the share of independent specialised retailers is generally decreasing, it is still much higher than in
City centre chains 27.6%
Volume retail discounts
and sports chains 19.0%
Source: Interselection, 2005
Independent stores 22.2%
Food mass retail 9.6%
Mail order 7.8%
Department stores and
multiples 6.1%
Other channels 7.7%
major role in the French outerwear market: It is responsible for 70%
of the amounts spent.
Compared to previous years, the
importance of mail-order declined
from 10.2% in 2001 to 7.8% in
2004. In the same period, the
market share of city centre chains,
department stores and multiples
stayed fairly stable.
other countries. Figures indicate
that the strong decline came to a
stop in 2004, when there was an
upward trend. On the other hand,
the independents lost market
share again in the first months of
2005, as reported by ‘Journal du
Textile’.
Market share: 22.2% in 2004
Trend: Decreasing
31
1.4.3.1.2 City centre
chains - Clothing multiples
The long-term trend clearly indicates a higher importance of clothing multiples and more concentration of the market (Journal de
Textile). Generally, the French
market is still less concentrated in
the retail sector than in other
European countries. However,
this is expected to change.
The outlets for childrenswear are
numerous. There are three times
more outlets of clothing multiples
for women than for men. The biggest player in the retail business is
the Groupe Vivarte (formerly
Groupe André). Groupe Vivarte
owns the clothing chains Caroll,
Kookaï, Creeks, Liberto and La
Halle aux Vêtements. Shoe shop
chains called André, San Marina,
Orcade-Minelli, La Halle aux
Chaussures and Chaussland et
Besson also belong to Groupe
Vivarte. In November 2001,
Groupe André was renamed
Groupe Vivarte. It accounts for
10% of overall sales.
1.4.3.1.3 Department stores
The main department store in
France is Les Galeries Lafayette,
which also operates under the
name Nouvelles Galeries. Another
department store of importance
in France is PPR (PinaultPrintemps-Redoute). Marks &
Spencer no longer operates in the
French market. Variety stores
include Prisunec, Monoprix and
Inno, which belong to Galeries
Lafayette. The importance of
department stores has stabilised
over the last few years after
decreases in the last decade.
The Galeries Lafayette Group,
with a total number of 60 outlets,
has successfully started a special
concept for the French provinces
offering special ranges, e.g. ‘L.
Homme’ for menswear. However,
the department stores are struggling; as an example, the famous
‘La Samaritaine’ closed down in
2005.
Trend: Stable
Trend: Increasing
32
1.4.3.1.4 Mail-order houses
The mail-order business in France
is obviously decreasing. From 12%
in 1995, it dropped to 10% in 2000
and to around 8% in 2004. Among
the
mail-order
houses,
La
Redoute and 3 Suisses must be
mentioned. La Redoute is owned
by PPR, and 3 Suisses belongs
to the Groupe 3 Suisses
International, which also carries
the mail-order business Blanche
Porte. Mail-order houses are said
to have aggressive sales policies
and heavy promotion. In the longer run, however, the mail-order
business is expected to grow,
since more and more French consumers have Internet access at
home. It is only a matter of time
until the French return to buying
certain products from the mailorder houses.
Trend: slightly increasing
1.4.3.1.5 Textile discounters and
sports chains
There are some relevant textile
discounters all over France that
are mainly based outside the larger cities such as Paris, Lyon,
Marseille, but also around towns
with more than 250,000 inhabitants where a demand exists for
‘cheap’ clothing, mainly for lower
income households.
Larger French textile discounters
import directly from abroad (mainly ready-made items from Asia) or
buy from French importers specialised in the product groups in
demand. Specific figures on the
market share of sports chains are
not available, but are included
in the discounter category.
However, according to ‘Journal du
Textile’, sports chains are increasing in popularity.
Traditional textile discounters are
La Halle (Vivarte), Kiabi (Mulliez)
and Tati which have got strong
competition from new price
aggressive retailers like Vet’Land,
Vet’Affaires, GEMO (Eram Grou)
and Choyo (Mulliez).
Market share: 19.0% (textile discounters, sports chains included)
in 2004
Trend: Increasing
33
1.4.3.1.6 Grocery super- and hypermarkets
1.4.3.2 Sales Intermediaries
1.4.3.2.1 Clothing Manufacturers
The grocery super- and hypermarkets offer comparatively more
menswear. The supermarkets
and hypermarkets that have a higher share in the menswear segment have done better for major
items, but are reported to have
problems with small items, although socks and underwear constitute their main clothing business. A trend can be noted away
from cheap products to fashionable clothing offering better quality.
The French hypermarkets like
Carrefour have lost market share
to the upcoming textile discounters mentioned before. In 2002,
French consumers still bought
60% of their clothing in hypermarkets; this situation has changed in
favour of the discounters.
Trend: Decreasing
1.4.3.1.7 Other channels
The share of other distribution
channels is increasing. Other
channels are those that do not fall
into the definition of the abovementioned channels. Examples of
such distribution channels would
be markets, fairs, internet and
factory outlets.
Trend: Increasing
French manufacturers have slid
against the retailers and their position has weakened in recent
years. This is also confirmed by
the fact that there are fewer
‘manufacturer’s brands’, because
they are partially being replaced
by the ‘retailer’s brands’. The industry is characterised by high price
pressure: on the one hand, consumers have become more priceconscious; on the other, imports
of cheap garments from abroad
lower the prices. Manufacturers
have no chance but to follow the
retailers. French manufacturers
often produce their core product
range on their own, but they also
buy a considerable share of their
product assortment from manufacturers abroad. Apparently, they
do so in order to add certain products to complete their collection.
The clothing manufacturer has to
rely on the distributors’ promotion
and advertising for their respective collection. This can cause problems, for instance when brand
names are promoted inadequately. This can only be avoided by the
installation of a costly own retail
system by the manufacturer.
Because of the strong position of
the retailers, some French clothing brands are ready to accept
these greater financial investments.
34
Establishing their own retail chain
allows them to adapt more quickly to evolving market trends and
have more influence on the distribution. The sales personnel can
be trained according to the marketing strategy as well as the product’s image. In any case, it is
recommendable not to neglect
other local apparel manufacturers
when building up an own retail
system.
Clothing exports into the French
market via a sales agent are very
common. Especially in the case
of France, it is recommendable for
manufacturers from outside the
EU to work with agents as the
buying of clothing is very much
concentrated on the so called
‘centrales d’achats’. The buying
managers often import through
sales agents based in France who
represent reliable manufacturers
from abroad.
1.4.3.2.2 Central buying associations
1.4.3.2.4 Importers/wholesalers
There are not many important
buying organisations for independent retailers in France, as they
are mainly provided by the French
clothing manufacturers and the
wholesalers and importers. For
the most part, meaningful buying
associations can be found in the
sportswear segment, for instance
Intersport, Go Sport and Sport
2000.
1.4.3.2.3 Sales Agents
A sales agent based in France
normally takes a commission of
10-15% if the manufacturer is from
overseas (slightly higher commission because of higher risks). The
sales commission within France or
Europe is normally below 10%.
Some of the French retailers
(mainly super- and hypermarkets,
textile discounters and to some
extent clothing chains) prefer not
to run own control and sourcing
units in overseas markets. These
retailers buy their products via
importers/wholesalers and often
get attractive conditions. Since
the end of the eighties, the importers have gained importance as
the previously very strong national
French clothing industry became
less competitive due to increasing
production costs. As a result,
many
importers/wholesalers
enjoy increasing orders and revenues.
35
1.5 FRENCH FASHION TRADE FAIRS
Frequency
per year
Table 1-14: Overview of fashion trade fairs by number of visitors
city
Category
Specialities
Prêt-à-Porter
Paris
womenswear
Young fashion, small items
2
1020
41416
Who's next
Paris
general clothing
Fancy articles, small items
2
510
31344
Nouveau SEHM
Paris
menswear
Sports wear, jeans
2
18
23744
Lingerie
Paris
general clothing
Socks, swim wear, men’s items
1
494
23501
Lyon, Mode City
Lyon
small pieces
Fibres, stitchery, swim wear
1
877
19778
Interselection
Paris
general clothing
Leisure wear,
men/women/children
2
387
6010
Exhibitors
Name
Visitors
Source: AUMA, 2005
The Prêt-à-Porter Trade Fair is an
international ladies’ ready-to-wear
exhibition with a ‘boutique’ section. The collections are normally
presented on the classical preorder system, meaning half a year
ahead of the actual sales in the
shops. The winter collection is
shown in March, the summer collection in September of the previous year. The fair has a certain
importance at the European level,
but it has the character of an
image fair. Nevertheless, it is the
French trade fair that attracts the
most visitors.
The most important tradeshow in
France for menswear is the Salon
International de l’Habillement
Masculin (Le Nouveau SEHM),
which is held twice a year, in
January and September. This is an
exhibition for the whole range of
men’s and boy’s apparel, including accessories. It must be mentioned that this is a relaunch of a
previously important menswear
fair. The position of the SEHM at
European level used to be weak.
However, one out of three visitors
and two out of three exhibitors
come from abroad.
36
The trade fair Who’s Next, is also
worth mentioning. In contrast
to Le Nouveau SEHM and
Prêt-à-Porter, Who’s Next is less
specialised according to gender.
Exhibitions include menswear,
womenswear and childrenswear.
It is also held twice a year and has
attracted more than 30,000 visitors in recent years.
A rather new phenomenon is the
Lyon, Mode City. It is the only fair
that does not take place in Paris.
Although France is a highly centralised country and the French
tend to do most of their business
in the capital, Lyon, Mode City
could find a niche for underwear
and nightwear (small range of
outerwear) that can exist alongside Paris. The yearly trade fair consisted of up to 1,000 exhibitors in
recent years, the majority of them
from abroad.
In the highly competitive European fashion world, French trade
fairs are major opportunities for
business and marketing on an
international scale, although the
SEHM in particular and the Prêt-àPorter have slipped against the
Italian and German clothing trade
fairs in recent years.
37
1.6 LIST OF MAJOR BUYERS OF LADIES’, MEN’S AND
CHILDRENSWEAR IN FRANCE
Clothing Chain Stores
Agnes B
17, rue de Dieu
F - 75010 Paris
Tel.: +33 – 1 – 40034500
Fax: +33 – 1 – 40034550
www.agnesb.fr
Product range: ladies’, men’s, childrenswear
Price segment: high price level
Number of outlets: 129 shops (32 in
France)
Aubert France
4, rue de la Ferme - BP 30
F - 68705 Cernay
Tel.: +33 – 389 – 383200
Fax: +33 – 389 – 754167
aubert.contact@aubert.fr
www.aubert.fr
Product range: babies’ wear
Price segment: mid-price level
Number of outlets: 200 shops (in
Europe) + mail order
Caroll International
38, rue du Hameau
F - 75740 Paris Cedex 15
Tel.: +33 – 810304030
Fax: +33 – 1 – 56233407
contact@caroll.com
www.caroll.com
Product range: womenswear
Number of outlets: 280 shops, of
which more than 70 abroad and 75
franchising partners + mail order
Chattawak
29, boulevard des Italiens
F - 75002 Paris
Tel.: +33 – 1 – 44948060
Fax: +33 – 1 – 42669392
www.chattawak.fr
Product range: ladies’, menswear
Number of outlets: 25 shops + 20
franchising partners
Fabristyle – Brice
142, avenue du Panorama
F - 72100 Le Mans
Tel.: +33 – 2 – 43614444
Fax: +33 – 2 – 43614422
www.brice.fr
Product range: menswear
Number of outlets: 211
38
Infinitif
26, rue du Caire
F - 75002 Paris
Tel.: +33 – 1 – 40399703
Fax: +33 – 1 – 42655527
www.infinitif.com
Price segment: mid- to high price
level
Kookai
45, Av Victor Hugo
Bat., 201
F - 93534 Aubervilliers
Tel.: +33 – 1 – 43525252
Fax: +33 – 3 – 43525266
www.kookai.fr
Number of outlets: 30 outlets + 120
franchise partners + 320 franchise
partners abroad
Note: belongs to the former André
Group, Paris
La Halle aux Vêtements
26, rue de Flandres
F - 75019 Paris
Tel.: +33 – 1 – 53350425
Fax: +33 – 1 – 53350480
Price segment: low to mid-price level
Note: belongs to the former André
Group, Paris
Maison des 100.000
Chemises
112, rue Richelieu
F - 75002 Paris
Tel.: +33 – 1 – 42966612
Fax: +33 – 1 – 42605014
Product range: menswear, especially
shirts
Oliver Grant Diffusion
74, rue Elisée, Reclus 69
F - 69150 Décibes Cedex
Tel.: +33 – 472 – 812560
Fax: +33 – 472 – 812561
Product range: womenswear, menswear, sportswear
level
Number of outlets: 22 shops, 3 franchising partners
39
PROMOD – Centrale d’Achat
Chemin du Verseau
F - 59847 Marcq en Baroeul
Tel.: +33 – 3 – 20457551
Fax: +33 – 3 – 20457454
www.promod.fr
Price segment: low price level
Number of outlets: 370 shops in
France and other countries
Tartine et Chocolat
105, rue Fbg. St. Honoré
F - 75115 Paris
Tel.: +33 – 1 – 45624404
Fax: +33 – 1 – 4562339
Product range: childrenswear
Number of outlets: 3 shops, 15 franchising partners
TATI SA
82, avenue de Maine
F - 75018 Paris
Tel.: +33 – 1 – 56800680
Fax: +33 – 1 – 142523244
contact@tati.fr
www.tati.fr
Product range: all kinds of clothing
Zannier Groupe
6 bis, rue Gabriel Laumain
F - 75010 Paris
Tel.: +33 – 1 – 44834545
Fax: +33 – 1 – 44834530
www.groupezannier.fr
Number of outlets: 270 outlets
Note: own brands like Trios Pommes,
Hawai – 60% of the clothing is sourced from outside
Jeans- and Sportswear
Big Star
Z.I. Route de l’Industrie
F - 68360 Soultz
Tel.: +33 – 389 – 746575
Fax: +33 – 389 – 746581
office@bigstar.com
www.bigstarjeans.com
Product range: Jeans and sportswear
Number of outlets: 40 + 35 franchise
partners
40
Chausport
9, rue des Ingres
F - 59100 Roubaix
Tel.: +33 – 3 – 20896633
Fax: +33 – 3 – 20896622
Product range: Casual wear and
active sportswear, sports articles
Coprint Sportswear
141, rue Louis Armand
F - 73200 Albertville
Tel.: +33 – 47 – 9390909
Fax: +33 – 47 – 9390001
Product range: Sportswear
franchise partners
Decathlon-Sport
4, Boulevard de Mons
F - 59650 Villeneuve d’Asqu
Tel.: +33 – 3 – 20335000
Fax: +33 – 3 – 20335001
www.decathlon.com
Product range: Casual wear and
active sportswear
Number of outlets: 220, belongs to
Auchan
Decouverte Vêtements
16, rue des Petits Camps – ZI
Sud
F - 35400 Saint Malo
Tel.: +33 – 299 – 822635
Fax: +33 – 299 – 824942
Product range: Womenswear and
sportswear
partners (Brands: Cache Cache,
Caroll, Old River)
Donald Diffusion
21, Boulevard de la Liberté
F - 13001 Marseille
Tel.: +33 – 491 – 504389
Fax: +33 – 491 – 620789
Product range: sportswear
Price segment: lower to mid-price
level
Franchise partner
Note: own brand ‘Landers’
41
ITM Intermarché Entreprises
24, rue August-Chabriires
F - 75737 Paris
Tel.: +33 – 1 – 45337417
Fax: +33 – 1 – 45331208
incl. sportswear
Price segment: lower price level
Number of outlets: 163 shops
‘Vetimarché’
Lasserre
20, chemin de Laporte
F - 31300 Toulouse
Tel.: +33 – 561 – 491313
Fax: +33 – 561 – 499848
Product range: sportswear
partners
Naf Naf – Chevignon
6-10, Boulevard Foch
F - 93807 Epinay sur Seine
Tel.: +33 – 1 – 4813 8888
Fax: +33 – 1 – 4813 8850
production@nafnaf.fr
www.nafnaf-sa.com
level
Number of outlets: 197 in France
Paparazzi
Route Saint Bernard – B.P.151
F - 06220 Vallauris
Tel.: +33 – 493 – 646140
Fax: +33 – 493 – 644770
Product range: ladies’ and menswear
partners
Department Stores
Au Bon Marche (ABM)
5, rue de Babylone
Tel.: +33 - 1 – 44398000
Fax: +33 - 1 – 44398050
www.lebonmarche.fr
Number of outlets: approx. 150
Note: textile share app. 49% - 1,500
employees - mail-order business
42
Galeries Lafayette
40, Boulevard Haussmann
Tel.: +33 – 14 – 8782519
Fax: +33 – 14 – 2828023
www.galerieslafayette.fr
www.groupegalerieslafayette.fr
Number of outlets: 130 shops in
France and more in other countries
Nouvelles Galeries Réunis
66, rue des Archives
F - 75150 Paris Cedex
Tel.: +33 – 1 – 42748212
Fax: +33 – 1 – 42746652
Note: belongs to Galeries Lafayette
Group – textile share in assortment
25% - app. 25,000 employees
Printemps
102, rue des Provence
F - 75009 Paris
Tel.: +33 – 1 – 42855000
Fax: +33 – 1 – 42823600
17 shops + related shops
www.printemps.com
Mail Order Companies
Cyrillus (Redcats)
Avenue Amsterdam
F - 59910 Bondues
Tel.: +33 – 3 – 209 9330
Fax: +33 – 3 – 209 9332
Products: ladies’, men’s,
children’s wear, Mailorder + 25
shops also in B, CH and
www.cyrillus.fr
La Blanche Porte
22, rue de la Blanche
F - 59200 Tourcoing
Tel.: +33 – 3 – 20282028
Fax: +33 – 3 – 20282029
www.lablancheporte.fr
(product range: generally all kinds of clothing,
price segment: low to middle)
Good Life
33, rue de l’Assomption
F - 75016 Paris
Tel.: +33 – 1 – 45245650
Fax: +33 – 1 – 45245599
Products: ladies’, men’s wear
Mailorder + retail
www.goodlife.fr
La Redoute a Roubaix S.A.
(Redcats)
57, rue Blanchemaille
F - 59100 Roubaix
Tel.: +33 – 3 – 20696000
Fax: +33 – 3 – 20240337
www.redcats.com
43
Maison de Valerie
ZI, rue Jacquart
F - 41350 Vineuil
Tel.: +33 – 2 – 54425254
Fax: +33 – 2 – 54815053
Trois Suisses International
4, place de la République
F - 59962 Croix
Tel.: +33 – 3 – 20203062
Fax: +33 – 3 – 20720406
www.3suisses.fr
www.3suissesinternational.com
Neckermann Sarl
5, rue du Château d’Angleterre
F - 67300 Schiltigheim
Tel. +33 – 3 – 88191010
Fax: +33 – 3 – 88191030
Note: all kinds of clothing – 260
employees – textile share 75%
www.neckermann.fr
Super- and Hypermarkets
Auchan
Rue de la Recherche 200
F - 59650 Villeneuve-d’Asqu
Tel.: +33 - 320 – 431212
Fax: +33 – 320 – 436400
Product range: all products
Number of outlets: 14 countries, 294
hypermarkets, 588 supermarkets
Carrefour SA
ZAC Saint-Guénault
BP 75
F - 91002 Evry Cedex
Tel.: +33 – 360 – 913737
Fax: +33 – 360 – 794498
www.carrefour.com
Number of outlets: 215 hypermarkets
Casino-Groupe
24, rue de la Montat
F - 42004 Saint-Etienne
Tel.: +33 – 477 – 454256
Fax: +33 – 477 – 454365
More than 6000 outlets (not all selling clothing)
44
Intermarché
1, rue du Chemin Blanc
F - 91160 Longjumeau
Tel.: +33 – 164 – 545500
Fax: +33 – 164 – 545190
Number of outlets: approx. 75
E. Leclerc
52, rue Camille Desmoulins
F - 92451 Issy Les Moulineaux
Tel.: +33 – 146 – 625200
Fax: +33 – 146 – 629600
www.e-leclerc.com
Promodes
Z.I. route de Paris
F - 14127 Mondeville Cedex
Tel.: +33 – 231 – 706000
Fax: +33 – 231 – 706000
Manufacturers/Importers and Wholesalers/Importers
Adolphe Lafont SA
320, rue Georges Foulc
F - 69665 Villefranche sur Saone
Tel.: +33 – 474 – 626868
Fax: +33 – 474 – 622399
Products: ladies’, men’s wear, professional wear, manufacturer and
wholesaler
Chipie International
11, avenue du Général Leclerc
F - 11003 Carcassonne Cedex
Tel.: +33 – 468 105454
Fax: +33 – 468 105455
Products: ladies’, men’s, children’s wear,
Manufacturer of sportswear, leisure wear,
35 own shops – brand ‘Chipie’- high price
level
www.chipie.tm.fr
45
Catimini SA
94, rue Choletaise
F - 49 – 450 St.Macaire-enMauges
Tel.: +33 – 241 – 714141
Fax: +33 – 241 – 714132
Product : children’s wear and maternity wear
Outlets: 95 shops in France
Chouette Sportswear
216, rue St. Denis
F - 75002 Paris
Tel.: +33 – 1 – 42363950
Fax: +33 – 1- 42364554
Products: ladies’ wear, sportswear.
Manufacturer
Class Affaire
67, rue de Sedaine
F - 75011 Paris
Tel.: +33 – 1 – 48064606
Fax: +33 – 1 – 48064692
Products: ladies’, menswear
Manufacturer +37 shops
Coup de Cœur
6, rue de Bachaumont
F - 75002 Paris
Tel.: +33 – 1 – 44828500
Fax: +33 – 1 – 44828501
Product: womenswear
Manufacturer + 10 shops
Eden Park
9, av. Hoche
F - 75008 Paris
Tel.: +33 – 1 – 53890010
Fax: +33 – 1 – 49530697
Product: menswear
Manufacturer+ 7 shops, 15 franchising partners
www.eden-park.tm.fr
46
Buying Associations
Fusalp (Creations) SA
114, avenue de France
F - 74000 Annecy
Tel.: +33 – 450 – 238888
Fax: +33 – 450 – 238899
Manufacturer jeans- and sportswear
www.catimini.com
Disco SA
18 – 20, avenue Gustave Ferrie
Zone Industrielle, BP 926
F - 49309 Cholet
Tel.: +33 – 241 – 714 452
Fax: +33 – 241 – 714399
Buying for app. 4,000 retailers approximately
1.5 billion € turn-over p.a.
Sagam SA
4, allée Verte
F - 75011 Paris
Tel.: +33 – 1 –143577748
Fax: +33 – 1 – 143574658
Product: childrenswear and maternity dresses – 226 members
Promodes
9, rue Close Famille/B.P. 19
F - 78240 Chambourcy
Tel.: +33 – 139 – 793944
Fax: +33 – 139 – 794662
Buying association for Discounters,
buying via C.I.M.
Sport Europe Distribution
S.E.D.
10, rue d’Arcelle
F - 38600 Fontaine
Tel.: +33 – 4 – 76859276
Fax: +33 – 4 – 76531067
Product: sportswear
47
1.6 Other useful addresses
Syndicates, federations and similar organisations
UFIH
French Apparel Association (Union Française des
Industries de l'Habillement, or UFIH)
8, rue Montesquieu, 75001 Paris
Tel.: +33 – 1 – 44556660 - Fax: +33 – 1 – 44556666
secretariatufih@wanadoo.fr
www.lamodefrancaise.org
Euratex
The European Apparel and Textile Organisation
24, rue Montoyer, B – 1000 Brussels
Tel.: + 32 – 2 – 2854892 – Fax: +32 – 2 – 2306054
www.euratex.org
Mod'Spé
Institut Supérieur Spécialisé de la Mode
32, rue de Paradis, 75010 Paris
Tel.: + 33 – 1 – 48242380 - Fax: + 33 – 1 – 48242343
modspe@modspe.com
www.modspe.com
IFM
Institut Français de la Mode
33, rue Jean Goujon, 75008 Paris
Tel.: + 33 – 1 – 56592222 - Fax: 33 – 1 – 56592200
ifm@ifm-paris.org
www.ifm-paris.org
IFTH
Institut Français Textile-Habillement (French Textile
and Apparel Institute)
Avenue Guy Collonque, 69134 Ecully cedex
Tel.: + 33 – 4 – 72 86 16 00 - Fax: 33 – 4 – 78433966
information@ifth.org
www.ifth.org
48
APCE
Agence pour la Création d'entreprise
(Business start-up agency)
14, rue Delambre, 75682 Paris Cedex 14
Tel.: +33 – 1 – 42185858
Fax: +33 – 1 – 42185800
info@apce.com
www.apce.com
UCAD
Union Centrale des Arts Décoratifs, Musée de la Mode
et du Textile, Union Française des Arts et des Costumes
107, rue de Rivoli, 75001 Paris
Tel.: +33 – 1 – 44555750
www.ucad.fr
Fédération Française de la Couture, du Prêt-àPorter des Couturiers et des Créateurs de Mode
100-102, Faubourg Saint Honoré, 75008 Paris
Tel.: +33 – 1 – 42666444 - Fax: +33 – 1 – 42669463
info@modeaparis.com
www.modeaparis.com
49
Outerwear
GERMANY
2
GERMANY
SITUATION
Germany’s affluent and technologically powerful economy - the
fifth largest in the world - has
become one of the slowest growing economies in the euro zone
and Switzerland. A quick turnaround is not foreseeable in the
immediate future. Growth in 200103 was under 1%, rising to 1.7% in
2004. The modernization and
integration of the eastern German
economy continues to be a costly
long-term process, with annual
transfers from west to east
amounting to roughly $70 billion.
The GDP of Germany, which is the
largest economy in the EU, grew
more slowly than the EU average
and of course Switzerland. The
weak economic situation can be
illustrated by the number of
unemployed persons, which
increased by 7.8% in 2004.
A second aspect was the increase in the cost of living for private
households compared with previous years. This comparatively
high rate was mainly due to the
increase of energy costs, food,
ecological taxes and administrative fees which practically absorbed the planned tax reductions.
Germany’s aging population,
combined with high unemployment, has pushed social security
outlays to a level exceeding contributions from workers. Structural
rigidities in the labour market including strict regulations on laying off workers and the setting of
wages on a national basis - have
made unemployment a chronic
problem. Corporate restructuring
and growing capital markets are
setting the foundations that could
allow Germany to meet the longterm challenges of European economic integration and globalization, particularly if labour market
rigidities are further addressed. In
the short run, however, the fall in
government revenues and the
rise in expenditures have raised
the deficit above the EU 3% debt
limit.
50
2.2 THE MARKET FOR
OUTERWEAR
2.2.1 Market size
Although the general economic
situation at the beginning of 2005
was disappointing, Germany still
represents by far the largest single market within the EU, with an
estimated total sales volume in
clothing of 55.6 billion € in 2004
(Statistics BTE Cologne 2005,
amounts at retail prices including
VAT).
In 2004, annual clothing sales
(including outerwear) shrank in
comparison with other consumer
expenditures (they decreased by
2.3% in comparison to 2003). The
year was dominated by a significant decrease of all sales which
amounted to approximately 2 billion €. There is no real change visible at the moment as there will be
no growth in 2005. The negative
retail trends must also be seen in
the light that private household
expenditures have increased by
3.5% in the years 2001-2004.
Nevertheless, clothing consumption fell constantly during recent
years so that only 5.40 € out of
100 € disposable are being spent
on clothing.
The present situation of the outerwear market in Germany can be
characterised by the following
brief statements:
Clothing items from the outerwear
segment can be characterised by
a permanent price decrease. The
main reason for this is the production of garments from low-wage
countries. Product imitation has
become easier through global
production, easy communication
by Internet / e-mail and liberalised
trade.
Renowned market research institutes have stated that the ‘middle
market segment’, (which is characterised by quality consciousness and ‘brand orientation’) has
become much smaller in recent
years. The outerwear and clothing
market are moving in two directions: (a) value/price and (b)
trend/fashion, whilst the middle
segment is decreasing.
51
The younger generation under
25 is comparatively small, e.g.
the age group between 20 and
24 represents only approx. 4.5
million Germans (5.5% of the
whole population). The smallest
potential ‘target group’, apart
from those over 70, is the segment under 10 years of age. The
consequences of this for clothing
manufacturers from foreign
countries are evident.
2.2.3 Demographic characteristics
Figure 2-1 shows that the major
population segment by age
group is between 40 and 44
years of age (approximately 7.5
million – male and female), followed by those in the 35-39 brakket (approximately 7 million
people).
In
other
words,
Germans in their early forties
represent the largest target
group (in numbers only).
Figure 2-1: Age structure of the German population by sex, 2005
Germany: 2005
male
100+
95-99
90-94
85-89
80-84
75-79
70-74
65-69
60-64
55-59
50-54
45-49
40-44
35-39
30-34
25-29
20-24
15-19
10-14
5-9
0-4
female
4,0 3,5 3,0 2,5 2,0 1,5 1,0 0,5 0,0 0,0 0,5 1,0 1,5 2,0 2,5 3,0 3,5 4,0
Source: U.S. Census Bureau, International Data Base, 2005
52
2.2.4 Retail sales by product category
Table 2-1 shows that, in terms
of turnover development, the
womenswear market increased
by 5% between 2002 and 2005,
while the menswear market highly
increased by 10%; the negative
turnover in 2002 had been transformed into a positive value of 2%
in the first half of 2005. The childrenswear market increased by
9%.
Table 2-1: Outerwear turnover
development in % by sex and product categories, 2002 - 2005
There are several ways of segmenting the clothing market.
Table 2-1 provides an overview of
the turnover development in the
major product segments, in percentages, covering the main
items of ladies’, men’s and children’s outerwear analysed by this
survey.
All three major segments (ladies,
men, children) see a turnover
'boom' during the years 2003 to
2004, where all turnover values
increased highly and nearly turned
into positive figures.
2002
2003
2004
1st half 2005
-6
-5
-2
-1
coats
-10
-8
-5
15
suits
-12
1
4
-1
2
-8
0
3
dresses
-18
-7
-5
-9
skirts
-16
4
-8
-10
trousers
-4
3
2
-3
jeanswear
-4
-2
3
8
blouses
-9
-11
-10
-8
Menswear
-8
-4
0
2
coats
-14
-5
1
10
suits
-8
2
8
5
blazers
-12
-9
-3
-2
jackets
-6
-6
-3
4
trousers
-9
-3
2
-1
jeanswear
-2
-3
3
2
Childrenswear
-9
-10
-1
0
Textiles total
-8
-5
-2
-10
Ladieswear
jackets/blazers
Source: BTE Cologne, 2005
53
The latest observations on consumer behaviour based on market
research for this marketing handbook show that consumers of
2004/2005:
There have been tremendous
shifts in consumer preferences
with regard to the most popular
shops in recent years. Market
leaders confirm that this development corresponds directly to
more unpredictable consumer
buying patterns towards much
cheaper goods, closer to the
actual demand (not in advance)
and in shops with more ‘event
character’.
- react very noticeably to
economic changes and
moods
- tend to buy less since all
wardrobes are full and
basic needs can be fulfilled
less expensively
- are highly sensitive to price
the former belief that
‘cheap things’ are bad and
expensive is good, no lon
ger applies
- were concerned about the
introduction of the Euro (€)
in the beginning of 2002
and assumed hidden
price increases
- show a clear trend towards
shopping at textile discounters
A survey of the clothing market
segment shows that many
Germans buy from clothing multiples (20%). Department stores
are in third position at 12% and
are still quite strong, although they
have dropped by 1%. New concepts reinforced the position of
department stores. Smaller specialised clothing retailers are less
important and it is expected that
this distribution channel will lose
further market share in coming
years.
The most preferred shops among
all female consumers between
the ages of 14 and 64 years are
C&A (56%) in the number one
position, followed by H&M (47%)
and Galeria Kaufhof and Karstadt
(both 38%). They also mentioned
Esprit, Adler, Benetton, Wöhrl,
Jean Pascale and S. Oliver. All
other retailers are below 5% of all
responses (Source: Kommunikationsanalyse 2004, Brigitte
Magazine, Gruner + Jahr, Hamburg, 2004).
54
Table 2-2: Clothing retail channels by market share, 2000 - 2004
in % of total value
2000
2002
2004
Specialists
56
55
54
independent retailers
28
27
25
Clothing multiples
28
28
29
Non-specialists
44
45
46
Department/variety stores
13
13
12
Super- and hypermarkets
5
6
7
Sports shops
3
3
3
14
14
15
Other
9
9
9
Total
100
100
100
Home shopping companies
Table 2-2 shows that many retail
channels have lost market share
in the last four years (such as
Independent Retailers (-3%) and
Clothing Multiples (-8%). In contrast, Home Shopping is very
popular in Germany, even in contrast to other Western European
countries and Switzerland (share:
15%).
Looking at consumer patterns,
market research by Intermedia in
2005 on behalf of Burda Verlag,
Hamburg
shows
interesting
results, summarised in Table 2-3.
The key fact is that women have a
much greater interest in the latest
fashion trends (82%) than men
(18%). Even when it comes to
special offers, ladies (58.5%) are
more interested than men
(41.5%). Approximately 60%
would like to buy at fixed prices.
Only one third likes to bargain on
prices. Brand awareness is low
among consumers; only one
German in six is concerned about
the brand.
55
Table 2-3: Consumer patterns with regard to interest in fashion, purchase
timing, brand awareness and bargains by sex, 2005
Ladies
Men
82.0%
87.9%
18.0%
12.1%
68.2%
31.8%
59.0%
41.0%
58.4%
58.5%
41.6%
41.5%
Interest in Fashion
I am interested in the latest fashion trends
I often talk about fashion
Purchase Timing
I often buy fashion at the beginning of the season,
when the new range comes into the shops
I often buy fashion at the end of the season,
when prices have already been reduced in many places
Brand Awareness and Bargains
I am very concerned about buying the right brand
I often buy special offers
Source: Typologie der Wünsche, Intermedia-Burda Verlag, 2005/2006
2.2.5.2 Consumer expenditure
The overall disposable income of
all private German households
increased by 2.3% to € 1,441 billion in 2005 compared with 2004.
The private household consumption increased by 1.2% to € 1,266
billion in 2005 and was in line with
the developments of recent
years.
ments in German household
expenditure. A general tendency
is for consumers to spend less on
clothing, especially since the
beginning of 2002 and the introduction of the Euro. Also a large
part of their income is spent on
services, travel, education, fitness /
health and rent for housing.
Figure 2-2: Monthly household spending
The latest detailed analysis of
expenditure structures of German
households by the German
Federal Statistical Office in 2005
shows that out of € 100 (= 100%),
€ 5.40 was spent on clothing (=
5.4%). Single males have a relatively higher disposable income but
save most on textiles and clothing. Couples with kids spend the
most on textiles. The self-employed and employees tend to spend
the most on clothing.
on clothing and shoes, 2005
Figure 2-2 gives an overview of
the share of the clothing seg-
Source: Federal Statistical Office
0
50
100
150
200
Clothing/shoes total
Ladieswear/shoes
Menswear/shoes
Kidswear/shoes
Germany, 2005
56
different product groups. A clear
fact is that the per capita consumption has decreased in value
in recent years, as the turnover in
the clothing market has reduced,
whilst the population has increased.
A different analysis of consumer
expenditure by the CBI in 2004
showed that the per capita consumption for clothing amounted
to € 587.00 per year. Table 2-4
shows the annual consumption in
Table 2-4: Expenditures on outerwear per capita by product categories, 2004
Total (average)
587 € / per head
of which:
Women's outerwear
Men's outerwear
Children's outerwear
760 € / head
418 € / head
546 € / head
The share of clothing expenditure
in all household expenses has fallen permanently: by approximately 0.8% points from 1997 to 2003.
According to Table 2-5, published
by the BTE (German Association
of Textile Retailers), German consumers only spend an average of
5.05% of their purchases on
fashion.
Table 2-5: Household spending on clothing (in % of total spending),
1997 - 2003
1997
1998
1999
2000
2001
2002
2003
5.84%
5.69%
5.63%
5.55%
5.39%
5.24%
5.05%
Source: German Federal Association of Textile Retailers (BTE), Cologne, 2005
57
Table 2-6 shows average retail
prices of consumer expenditures
per clothing article.
2003 in €
2004 in €
Suit
305
312
Coat
254
216
Sports jacket
191
98
Trousers (classic)
84
89
Trousers (leisure)
71
73
Jeans
76
76
Sweatshirt
76
71
Jacket
148
145
Leather jacket
284
323
Shirt
46
44
Polo shirt
28
28
Tie
32
30
Table 2-6: Average retail
prices by product categories,
2003/2004
2.2.6 Price developments of clothing
Between 2003 and the first half of
2005, the prices for all product
segments in the clothing sector
have decreased only slightly
(except a remarkably high loss in
the first half of 2005), whilst the
total cost of living has increased to
a larger extent. For more details,
see Table 2-7.
Table 2-7: Clothing price index relative to national consumer price index,
2003 - 2005
(Index: 2000 = 100)
2003
2004
1st half
2005
Price index clothing
100.7
100.0
97.9
Price index total cost of living
104.5
106.2
108.1
Source: BTE Cologne, 2005 / base: all private households in Germany
58
2.3 IMPORTS
2.3.1 Total imports
Table 2-8 gives an overview of
import volume in terms of value
and volume of the respective product groups into Germany. The
tendency is that imports have
slightly increased overall, both in
terms of value and volume.
Looking at the total import increases per product segment from
2003 to 2004, active sportswear
has increased by 8.5%, men’s and
boys’ outerwear by 10.4%. Only
girls’ or ladies’ outerwear (representing the largest outerwear product segment) has decreased by
1.9% (all figures in value terms).
The importance of imports from
non-EU countries depends on the
sector regarding 2003 to 2004.
Whilst in 2003 the share of the
non-EU countries in total imports
of men’s or boys’ outerwear was
59.9%, the share decreased to
57.4% (value) in 2004. The same
analysis of the product segment
ladies’ and girls’ outerwear from
2003 to 2004 shows that the
share of non-EU countries in all
imports has increased, from
68.3% to 68.5% (value terms).
By far the largest product category are jerseys, pullovers, cardigans
and waistcoats (HS code 61.10),
followed by T-shirts and singlets
(HS code 61.09). As a result, price
competition is fiercest in these
product segments, especially for
T-shirts. In general, imports from
non–EU countries have increased
in most product segments, thus
indicating more sales opportunities for manufacturers abroad.
(including, to a large extent, developing countries).
59
2002
2003
2004
Tons
1 000 €
Tons
1 000 €
Tons
1 000 €
Coats, raincoats,
1 297
35 121
1 412
36 130
1 403
32 671
Suits, jackets, outfits,
trousers, shorts etc.
(61.03)
4 112
86 763
5 067
82 689
7 362
96 440
9 928
198 832
10 015
178 286
7 783
198 762
15 337
320 717
16 494
297 104
20 238
327 874
11 152
182 344
12 745
178 017
14 693
188 529
4 227
98 497
7 243
130 088
7 454
121 718
33 380
607 051
40 439
633 234
40 497
605 092
11 018
281 790
11 714
271 419
12 623
288 580
Total
48 625
987 338
59 396
1 034 740
60 573
1 015 389
Total extra EU
37 876
640 097
47 727
706 289
48 027
695 522
111 146
1 960 769
132 170
2 127 672
146 863
2 308 693
135 128
2 933 571
151 718
2 866 040
146 076
2 718 103
9 540
190 681
11 357
196 367
13 935
193 907
Impregnated clothing(61.13)
2 361
47 858
978
19 172
810
15 277
Total
258 174
5 132 878
296 222
5 209 250
307 675
5 235 979
Total extra EU
201 734
3 300 627
238 761
3 548 496
251 423
3 692 544
swimwear (61.12)
7 736
221 841
9 948
238 659
12 617
247 627
3 196
109 395
3 266
99 921
4 358
119 792
10 932
331 237
13 241
338 580
16 974
367 419
8 112
206 288
10 284
219 616
13 002
236 840
For men or boys
Shirts (61.05)
Total
Total extra EU
For women or girls
Coats, raincoats, anoraks etc. (61.02)
Blouses and shirt blouses (6106)
For both sexes
T-shirts,singlets etc.(61.09)
Jerseys, pullovers,
cardigans, waistcoats
etc. (61.10)
Active Sportswear
Total
Total extra EU
Source: Office of National Statistics (ONS): Consumer Trends, 2005 – deflators.
60
Table 2-9 shows that the share of
non-EU countries in total imports
for woven outerwear items is
even higher than for knitted items.
78.8% of men’s and boys’ outerwear in 2004, for example, originated from non-EU countries. For
women’s or girls’ outerwear the
share of non-EU countries was
also at a very high level of 70.5%
(year 2004 - value terms). As for
knitted outerwear, there was a
general upswing in imports of
woven outerwear between 2003
and 2004.
2002
2003
2004
Tons
1 000 €
Tons
1 000 €
Tons
1 000 €
Coats, anoraks, windcheaters
etc. (62.01)
25 038
577 659
28 390
523 800
31 545
486 597
SuitSuits, jackets, outfits, trousers, shorts etc. (62.03)
119 318
2 650 541
126 953
2 592 882
141 808
2 669 557
Shirts (62.05)
36 916
777 378
40 592
755 845
39 776
725 981
Total
181 272
4 005 578
195 934
2 990 221
213 128
3 882 136
Total extra EU
151 938
3 041 561
165 056
3 872 528
181 305
3 059 571
Coats, capes, anoraks, wind
jackets etc. (62.02)
38 207
860 435
44 605
834 477
53 056
853 193
SuSuits, outfits, jackets, dresses, skirts, trousers (6204)
137 961
3 571 079
140 328
3 321 803
155 043
3 410 037
Blouses and shirt blouses
(6206)
28 905
913 740
27 619
806 313
25 292
691 315
Total
205 072
4 005 578
195 934
3 872 528
307 675
5 235 979
Total extra EU
172 674
3 041 651
165 056
2 990 221
251 423
3 692 544
4 314
78 969
5 255
79 841
6 203
82 875
15 396
350 263
16 683
298 629
17 227
266 162
19 711
429 233
21 938
378 469
23 430
349 036
14 030
315 286
15 026
266 538
15 409
246 329
For men or boys
For women or girls
For both sexes
Other incl. Impregnated (62.10)
Total
Total extra EU
61
A brief analysis of the OPT imports
of outerwear into Germany shows
that most of the countries lost market share in 2004, except India with
+1,333%, Latvia with +65% and
China with +6%. This positive development can be mainly explained
by the fact that these countries cur-
rently have a high growth potential
for textile exports.
The ‘losers’ are Lithuania (-96%),
Bosnia-Herzegovina
(-95%),
Slovakia (-94%), Ukraine (-89%)
and Albania (-87%). Romania has
retained the first position, although it
also lost 65% import volume. For
more details, see Table 2-10.
Table 2-10: Largest supplying countries of OPT outerwear, 2002 – 2004
Positon
Country
2002
in 1000 €
Change
from 2002
2003
in 1000 €
Change
from 2003
2004 in
1000 €
1
Romania
51.749
-51%
25.264
-65%
8.851
2
Tunisia
43.539
-36%
28.019
-70%
8.545
3
Poland
73.502
-63%
27.429
-79%
5.629
4
Latvia
946
89%
1.791
65%
2.953
5
Bulgaria
16.778
-45%
9.197
-69%
2.860
6
Hungary
12.130
-44%
6.806
-73%
1.831
7
Czech Rep.
8.463
-63%
3.133
-73%
847
8
Slovakia
12.140
-48%
6.355
-94%
397
9
Albania
2.229
39%
3.097
-87%
394
10
Slovenia
3.801
-29%
2.686
-86%
363
11
For.JRep.Mac
7.019
-88%
854
-74%
225
12
Croatia
2.608
-50%
1.293
-84%
205
13
Israel
0
14
India
921
-99%
5
1333%
71
15
Bosnia-Herz.
2.437
-59%
993
-95%
46
16
Egypt
50
109%
105
-73%
29
17
China
358
-94%
21
6%
23
18
Ukraine
16.407
-99%
175
-89%
19
19
Lithuania
1.022
-56%
449
-96%
19
20
Maldives
0
Extra-EU15
12.511.379
0
71
0
-64%
4.548.198
14
-4%
4.352.872
62
Table 2-11 shows the imports of
finished products from major supplying countries into Germany
between 2002 and 2004. By far
the leading import country is
Turkey, followed by China and
Italy. The three leading supplying
countries represent 32.5% of all
clothing imports in 2004. Not less
than 74.4% of all imports originate
from non-EU countries.
The ‘winners’ in terms of sales
increases are Austria (+24%), India
(+23%), China (+16%), Ukraine
(+11%), Belgium (+10%), UK (+10%)
and Bulgaria (+6%). Turkey, as the
number one supplying country,
slightly lost import volume by -4%.
The ‘losers’ are all from Europe
(except Tunisia): Poland, Tunisia,
Greece, The Netherlands and
Italy with an average decrease of
more than 10% in 2004 compared
to 2003.
63
Positon
Country
2002
in 1000 €
Change
from 2002
2003
in 1000 €
Change
from 2003
2004
in 1000 €
1
Turkey
2.489.849
1%
2.515.195
-4%
2.422.190
2
China
1.595.364
9%
1.736.886
16%
2.006.300
3
Italy
1.441.476
-14%
1.234.142
-11%
1.099.218
4
Bangladesh
657.650
30%
852.906
23%
1.052.723
5
Romania
948.283
-6%
893.658
3%
918.882
6
Netherlands
1.027.475
-10%
929.433
-11%
829.627
7
Poland
791.333
-13%
688.828
-18%
561.492
8
Belgium
456.993
0%
456.716
10%
500.114
9
Hong Kong
541.723
-11%
484.653
0%
483.590
10
Czech Rep.
388.059
27%
491.583
-3%
475.157
11
India
402.774
2%
410.431
-7%
381.937
12
France
480.585
-18%
392.764
-5%
371.233
13
Indonesia
353.744
1%
357.655
2%
366.418
14
Bulgaria
292.505
15%
335.689
6%
357.180
15
Utd. Kingdom
387.669
-18%
317.386
10%
347.976
16
Denmark
284.890
4%
294.890
4%
305.728
17
Tunisia
379.198
-14%
325.185
-11%
288.384
18
Greece
314.124
-8%
287.434
-11%
256.609
19
Austria
166.302
16%
192.358
24%
238.105
20
Ukraine
220.425
-8%
203.448
11%
226.280
Intra-EU15
5.037.721
-10%
4.548.198
-4%
4.352.872
Extra-EU15
12.511.379
0%
12.485.409
1%
12.649.499
Total
17.549.100
-3%
17.033.607
0%
17.002.372
64
2.4 TRADE STRUCTURE
The major developments in
German clothing retail structure
are as follows:
The clothing retailers were more
or less forced to continue their
‘trading down policy’, or in other
words have not managed to
increase prices. Known brands
are sold at reduced prices and
‘cheap’ trade brands have been
created. The higher segment
shows price increases but this is
of absolutely minor importance.
Expansion of price aggressive
retail outlets – in the clothing sector mainly represented by ‘vertical
chains’ such H&M, MANGO,
ZARA, Vero Moda, Tally Weijl etc.
Other retailers mainly suffer from
decreasing turnover, less profit,
lower frequency in the shops and
increased costs.
Changes in the size structure of
outlets – the tendency for larger
units has decreased. Even larger
clothing retailers have lost their
market share or had to leave the
market (such as BOECKER, C&A).
The tendency for more outlets
continues – the so called ‘vertical
retailers’, who manage the whole
scale from collection development, production (outsourcing)
and sales via their own shops,
dominate the best shopping
areas beyond Germany’s largest
cities.
New outlets whose main business
is not clothing, such as Tchibo
(coffee sales with over 1000 own
shops) and Aldi (supermarkets)
have gained importance and
become the ‘winners’ over the
last 2-3 years. Large cash-andcarry markets have extended
their sales area including the textile range, and also have gained
importance.
Retailers tend to work with fewer
but more efficient clothing suppliers with faster deliveries and
EDP support. Four out of five
companies would like to work with
fewer suppliers. 69% of all retailers
want to buy on a more short-term
basis.
The internationalisation of the
German market with increasing
market share by chains such as
H&M Sweden, GAP USA, Auchan
France (ORSAY, PIMKE), Inditex
(ZARA) and MANGO Spain etc.
continued in 2004/2005, and it
can be expected that the vertical
chains with their fast delivery
rhythms will continue their expansion strategy in the future.
In the future, textiles and clothing
shopping will be more combined
with lifestyle and entertainment in
the German cities, e.g. in the form
of ‘Urban Entertainment Centres’
such as Stilwerk or SEVENS in
Düsseldorf or the COLONADEN in
Hamburg.
65
Table 2-12 gives an excellent
overview of the structure and the
development of the largest
German textile retailers. This analysis was carried out by the
renowned trade magazine Textilwirtschaft/Frankfurt on an annual
basis.
Table 2-12: Major specialised clothing, sports chains and discounters in Germany,
2004/2005
Retail chain
Parent company
Sector
Outlets
Turnover
2003 inm.
C&A
C&A (Netherlands)
General clothing
227
2,690 a)
Hennes & Mauritz
Hennes & Mauritz (Sweden)
General clothing
282
1,800
Peek & Cloppenburg
Peek & Cloppenburg West
General clothing
78
1,360
Vögele
Vögele (Switzerland)
General clothing
352
373
Peek & Cloppenburg
Peek & Cloppenburg Nord
General clothing
26
342
Wöhrl
Wöhrl
General clothing
41
308
K+L Ruppert
K+L Ruppert
General clothing
50
185
Zara
Inditex (Spain)
General clothing
33
161
Orsay
Mulliez Group (France)
Womenswear
239
540 c)
Sinn Leffers
Karstadt/Quelle
Womenswear
51
537
Bonita Mode
Bonita Group
Womenswear
397
260 b)
Ulla Popken
Popken Group
Womenswear
257
166
Xanaka
Womenswear
77
c)
Pimky
Womenswear
152
c)
M&S Mode
Vendex/KBB (Netherlands)
Womenswear
77
n.a.
Pohland
Pohland
Menswear
12
62
Nicolas Scholz
Bonita Group
Menswear
40
b)
Kids Stores
C&A (Netherlands)
Childrenswear
77
a)
New Yorker
New Yorker
Leisure wear
254
440
Mister + Lady Jeans
Western Store Beran
Leisure wear
193
119
Jeans Fritz
Jeans Fritz
Leisure wear
200
106
66
Retail chain
Parent company
Sector
Outlets
Turnover
2003 inm.
Runners Point
Karstadt/Quelle
Sportswear
121
24
Ernsting’s Family
Ernsting
Discounter 2)
1049
412
Takko
Takko
Discounter
781
740
KiK
Tengelmann-Gruppe
Discounter
1055
652
Adler
Metro Group
Discounter
NKD
NKD
Discounter
766
366
Zeeman
Zeeman Group
(Netherlands)
Discounter
241
86
609
Source: Textilwirtschaft, 2004 / CBI Market Survey, 2004
1) turnover in textiles and clothing 2) mentioned discounters are textile and/or clothing discounters
a), b) and c) only consolidated figures are given
67
customers. For the members of
the losers list, it can be assumed
that they are not really looking for
new suppliers as they are trying to
manage the decrease in sales
and perhaps even cut down the
list of suppliers.
Table 2-13 and Table 2-14 give a
good overview of the ‘winners’
and ‘losers’ among clothing retailers in Germany. It may be a good
idea for clothing exporters from
abroad to include the best-performing retailers in their list of target
Table 2-13: The winners in clothing retail, 2003/2004
Name of Retailer
2003
(in bn. €)
2004
(in bn. €)
Increase in
turnover
Esprit, Ratingen
320
400
+ 25.0 %
Tengelmann, Muelheim/R.
652
782
+ 19.9 %
Zeeman, Alphen/NL
86
102
+ 18.6 %
Goergens-Group, Koeln
85
100
+ 17.6 %
Hugo Boss, Metzingen
77
90
+ 16.9 %
2003
(in bn. €)
2004
(in bn. €)
Increase in
turnover
1,400
1,100
- 21.0 %
93
80
- 14.0 %
Vögele, Sigmaringen
373
346
- 7.2 %
Woolworth, Frankfurt
428
397
- 7.2 %
118
110
- 6.8 %
Source: Textilwirtschaft, Frankfurt/Main, 2004
Table 2-14: The losers in clothing retail, 2003/2004
Name of Retailer
Aldi, Essen
Ludwig Beck, Munich.
Sahinler Gruppe, Würselen
Source: Textilwirtschaft, Frankfurt/Main, 2004
68
2.4.3 Distribution channels
This structure of the textile/clothing retail market can also be split
into two major groups: ‘specialised retailers’ and ‘larger forms of
textile retail’. For more details, see
Table 2-6.
Table 2-15: Clothing retail channels by market share, 2000 - 2004
in % of total value
2000
2002
2004
Specialists
56
55
54
Independent retailers
28
27
25
Clothing multiples
28
28
29
Non-specialists
44
45
46
13
13
12
Super- and hypermarkets
5
6
7
Sports shops
3
3
3
14
14
15
9
9
9
100
100
100
Other
Total
2.4.3.1 Retailers
2.4.3.1.1 Independent specialised
retailers
Independent retailers do not usually buy directly from developing
countries. With approximately
45,000 textile and clothing shops
all over Germany, they still play an
important role in the market. A
high percentage of the retailers
are members of a buying association that takes over certain functions from the members such as
purchasing, marketing, logistics
etc.
Market share: 25% in 2004
Trend: Decreasing (2000 = 28%)
69
2.4.3.1.2 Clothing multiples
The most important clothing multiples are C&A (227)*, H&M (282)*,
P&C West and Anson’s Menswear (78)* and P&C North (26)*,
Sinn Leffers (51)*, K+L Ruppert
(50)*, C. Vögele (352)* and Wöhrl
(41)*. New Yorker with 254 outlets
is the largest jeans and sportswear chain, followed by Western
Store Beran (approx. 200)* and
Werdin with 40 shops.
The German mail-order business
is, after the US, the largest market
in the world. The biggest mailorder house in the world is the
Hamburg based Otto Versand
with many investments/subsidiary
companies abroad. They also
own the German mail order companies Schwab, Baur, Witt, Heine,
Alba Moda and Sport Scheck.
The major womenswear multiples
are BiBa (113)* and Appelrath_Cüpper (14)*, both part of the
Douglas Group, Orsay from
France (239)*, Bonita (397)* and
Ulla Popken for large sizes (257)*.
Menswear multiples are Nicolas
Scholz (40)* and Pohland (12)*.
* number of outlets
Trend: Strongly Decreasing (2000
=28%)
The major department stores are
Karstadt with 122 outlets (as a
part of the Karstadt/Quelle group)
and Galleria Kaufhof with 127 stores, belonging to the Metro group.
Kaufhof has been very successful
with their trading up concept to
‘Galleria Kaufhof’. Another examples is Woolworth with 330 outlets.
Quelle and Neckermann, the
number two and three in the market, are part of the Karstadt
Group. Quelle, as the second largest mail order house, also holds
major shares in other mail order
houses, such as Schöpflin, Peter
Hahn and Madeleine, covering different market segments. Other
larger mail order houses are
Bader and Klingel. Smaller, more
niche market orientated mail
order companies retailing clothing
are Atelier Goldener Schnitt,
Elégance, Bon Prix and Drei
Pagen Versand. Buying clothes
via mail order is quite popular in
Germany, as people trust online
payment and the very well organised internet infrastructure.
Trend: Slightly Increasing (2000 =
14%)
Trend: Slightly decreasing (2000
= 13%)
70
2.4.3.1.5 Textile discounters
2.4.3.1.7 Others
Leading discounters are NKD
(approx. 850 outlets), Tengelmann (750 clothing outlets), Lidl &
Schwartz (over 1,900 Lidl stores),
Ernsting’s family (over 1,000 outlets) and Takko (721 outlets). Their
buying policy is very much price
oriented. The buying managers
often buy from European based
importers/wholesalers who have
access to the cheapest sourcing
countries worldwide.
Apart from ‘street markets’ and
‘ex-factory sales’ directly from the
fashion manufacturer, the clothing
distribution via ‘non textile related
retailers’ has gained importance.
The most prominent example is
the Tchibo Group. This Hamburg
based company was originally a
‘coffee roaster’ selling coffee in
more than 3,000 outlets all over
Germany. Since the beginning of
the nineties, every week a new
Tchibo also sells other items,
among which clothing plays a very
important role. The company
mainly buys from importers/wholesalers according to their own
specifications. Many Germans
have bought garments from
Tchibo, and the market forecast
for this form of ‘textile distribution’
is excellent.
Trend: Strongly increasing (2000
= 3%)
Some examples are: Metro, Aldi,
Edeka/AVA, Tengelmann, Rewe
and Plus markets. The clothing
they sell is mainly restricted to
clothing accessories such as
socks, caps, scarves and so on,
but increasingly includes T-shirts,
shirts, jeans etc. Aldi and Lidl in
particular offer more and more
fashion products alongside their
food- and non-food assortment.
Trend: Slightly increasing (2000 =
5%)
Trend: Constant (2000 = 9%)
2.4.3.2 Sales intermediaries
2.4.3.2.1 Clothing manufacturers
Manufacturing companies play a
pivotal role in the clothing distribution system in Germany. Most of
the German clothing brands work
in a dual way: On the one hand
they buy directly from developing
countries in the Far and Middle
East on a full import basis (finished
products). On the other hand,
Germany is by far the largest
European buyer of clothing on
outsourcing basis (OPT business).
71
Due to its proximity to Eastern
European countries, Germany
was the ‘pioneer’ country in outsourcing production in the
neighbouring countries to the
East. The clothing industry has
been shrinking since the beginning of the nineties, to the point
where now only the ‘fittest’ have
survived. There are over 500
reputable clothing companies in
Germany. They can be contacted
through the German Clothing
Manufacturers Association (BBI) in
Cologne.
Some buying associations had to
close down or had serious problems (such as Sütex, Kaufring).
The leading associations are
Katag/abz in Bielefeld, KMT in
Cologne and Unitex in Neu-Ulm.
Some,
such
as
Ardek
in
Hofheim/Wallau specialise in childrenswear, or Intersport in Munich
specialising in active sports- and
hardware. The German buying
associations also have members
from the Netherlands, Belgium,
Austria and Switzerland.
2.4.3.2.3 Sales agents
Larger companies such as TOM
TAILOR, CARLO COLUCCI, S. OLIVER, STREET ONE and so on
(also) sell through their own outlets. These brands are normally
positioned in the mid- to upper
market segment. The tendency
towards self-retailing by clothing
brands/manufacturers has increased and taken on different forms
such as concessions, shop-within-the-shop, sales corners in
department stores and own
mono-brand shops.
55% of all independent clothing
retailers in Germany are members
of a buying association. These
figures underline the significant
role of buying associations for the
majority of specialised independent retailers. The buying policy is
similar to that of multiple stores
(buying directly or through buying
agents abroad). They operate in
the mid- to upper market segment.
Sales agents for clothing in
Germany play a major role in the
market,
especially
for
the
renowned clothing brands. The
more reputable agents are members of the Central Association of
German Sales Agents (CDH) in
Cologne. They often have their
own showrooms in fashion centres of major German cities such
as Neuss/Düsseldorf, Frankfurt,
Hamburg, Munich and so on. Only
strong manufacturers from nonEuropean countries with a market
oriented range and an excellent
service might find the right partner
in the CDH News published
monthly.
72
It is estimated that there are over
1,000 importers/wholesalers for
clothing in Germany. They range
from very small units run by the
owner, up to larger companies
with more than 100 employees
worldwide such as Miles, Jebsen
& Jessen, Nickel etc. They often
operate through their buying
offices in the Far East, which take
over the order and control function on the ‘sourcing spot’. The
importers/wholesalers have an
important role, they have excellent know-how about worldwide
sourcing and supply directly to all
kinds of retailers in Germany and
the neighbouring countries. The
most reputable importers are
members of the Association of
non-food importers (VFI) in Hamburg.
2.5 GERMAN FASHION TRADE
FAIRS
For womenswear, the main event
not only for Europe but also
worldwide is the CPD Fashion Fair
in Düsseldorf, which is organised
twice per year (February and July)
by
the
IGEDO
company.
Approximately 44,000 visitors and
around 1,500 international exhibitors attend per event. The fair
organisers have grouped the fair
in different ‘theme worlds’ (CPD
Show, Gallery Show, CPD White
Show, New Discovery Fashion).
For manufacturers from emerging
or developing countries the so
called ‘Global Fashion’ (a fair within
the fair) of the CPD in Düsseldorf is
generally a good choice, since
many buyers from Germany,
Belgium, Luxemburg, Netherlands
as well as to a certain extent from
Austria and Switzerland tend to
visit this fair when they look for
new suppliers.
Leading fashion fairs have suffered from the market developments. Nevertheless, for ‘mainstream’ fashion manufacturers
from developing countries, the
German clothing fairs are still a
very good choice (from a commercial point of view).
For the active sportswear market
(including footwear and sports
equipment), which is partially
covered by the products specified
for this study, the ISPO Fair
in Munich plays a leading role
for
Germany
and
Europe.
Approximately 1,600 exhibitors
from more than 40 countries
show their products in February
and July each year. The ISPO
management has split up the fair
into 14 ‘special fairs’ such as
Teamsport ISPO, Fitness ISPO,
Wellness ISPO, etc.
There have been tremendous
changes and challenges for the
German textile and clothing fairs
since 2000 and this trend can be
expected to continue in the next
few years. The shift in the ‘classical’ menswear segment from
Cologne to Düsseldorf was the
initial factor.
73
Some two years back many reputed jeans and sportswear brands
moved to the ‘Bread and Butter’ in
Berlin. The fair organisers are permanently working on developing
the fair structure and services: the
idea being that the visitor should
have the most efficient and convenient way to become informed
about fashion trends and to buy
the clothing they require.
In most clothing segments, from a
commercial point of view, the
German fairs still have the leading
position within Europe although
some other fairs (particularly in
Italy) have taken over the ‘fashion
leadership’. Among German retailers, the fairs mentioned above
are regarded as ‘information platform No. 1’ to a very large extent.
Table 2-16: German fashion trade fairs, 2006
Trade fair
Date
Location
Munich Fashion Fair Men
22.–24.1.2006
Munich
SPIRIT OF FASHION Home of Underground Fashion
27.–29.1.2006
Berlin
CO Cologne Order
27.–29.1.2006
Cologne
BREAD & BUTTER BERLIN tradeshow for selected brands
27.–29.1.2006
Berlin
PREMIUM SHOWROOM
Designer-Kollektionen und Accessoires
28.–31.1.2006
Berlin
ispovision Internationale Fachmesse für
Sportstyle - Fashion inspired by Sports
29.1.–1.2.2006
Munich
CPD DÜSSELDORF includine Global Fashion
5.–7.2.2006
Duesseldorf
MMC KIDS Collections Kinder Mode Messe
11.–13.2.2006
Schkeuditz
hop (Hamburger Orderpremiere)
Die Modefachmesse für den Norden
12.–14.2.2006
Hamburg
Munich Fashion Fair WoMen
18.–21.2.2006
Munich
BREAD & BUTTER BERLIN tradeshow for selected brands
July 2006
Berlin
Modatex Modatex Fashion Fair
9.–11.7.2006
Essen
ispovision Internationale Fachmesse für Sportstyle Fashion inspired by Sports
16.–18.7.2006
Munich
SPIRIT OF FASHION Home of Underground Fashion
21.–23.7.2006
Berlin
CPD DÜSSELDORF
23.–25.7.2006
Duesseldorf
74
Trade fair
Date
Location
global fashion Private Label, Production & Sourcing
23.–25.7.2006
Duesseldorf
MMC Fashion Leipzig Mitteldeutsche Mode Messe
5.–7.8.2006
Schkeuditz
hop (Hamburger Orderpremiere) Die Modefachmesse für
den Norden
6.–8.8.2006
Hamburg
Munich Fashion Fair WoMen
12.–15.8.2006
Munich
Kind + Jugend Internationale Kinder- und Jugend-Messe
Köln
15.–17.9.2006
Cologne
Import Shop Berlin
15.–19.11.2006
Berlin
Source: m+a Expo Database, 2005 / 2006
Further details to fairs (e.g. number of exhibitors, product range and visitors) can be
reviewed on the website www.auma.de.
75
CHILDREN’S WEAR IN GERMANY
Bonita Gefühl für Mode
GmbH & Co. KG
Kesseldorfer Rott 39
D - 46499 Hamminkeln
Tel.: +49 – 2852 – 9500
Fax: +49 – 2852 – 950100
info@bonita.de
www.bonita.de
Product range: Womenswear
Price segment: Lower to mid level
E.Breuninger GmbH & Co.
Marktstr. 1 – 3
D - 70173 Stuttgart
Tel.: +49 – 711 – 211-0
Fax: +49 – 711 – 2 36-15 54
kundenservice@breuninger.de
www.breuninger.de
Product range: Ladies’, men’s and
childrenswear
Price segment: Upper level
C&A Mode KG
Bleichstr. 20
D - 40211 Düsseldorf
Tel.: +49 – 211 – 166 – 0
Fax: +49 – 211 – 1662563
service@CundA.de
www.cunda.de
childrenswear
Number of outlets: 247 + 96 Kids’
Stores
Douglas Holding AG
Kabeler Str. 4
D - 58099 Hagen
Tel.: +49 – 2331 – 690 – 0
Fax: +49 – 2331 – 690 – 271
info@douglas-holding.com
www.douglas.de
www.douglas-holding.de
Product range: Ladies’ (AppelrathCüpper) and men’s (Pohland) wear
Price segment: Mid to upper level
Number of outlets: 1102 (Germany),
497 (abroad)
Reiner Appelrath Cüpper
Nachf. GmbH
Zeppelinstr. 2
D - 50667 Köln
Tel.: +49 – 221 – 205990
Fax: +49 – 221 – 2573838
info@appelrath-cuepper.de
www. appelrath-cuepper.de
Note: belongs to Douglas Holding AG
76
Pohland-Herrenkleidung
GmbH & Co. KG
Brückenstraße 17
D - 50677 Köln
Tel.: +49 – 221 – 270497 – 0
Fax: +49 – 221 – 270497 – 39
info@pohland.de
www.pohland.de
Product range: Menswear
Note: belongs to Douglas Holding AG
Esprit Europe GmbH
D - 40842 Ratingen
Tel.: +49 – 2102 – 123 – 0
Fax: +49 – 2102 – 123 – 45 – 100
www.esprit.com
www.esprit-online-shop.com
childrenswear
Number of outlets: 580 directly
managed retail stores and over
6,000 wholesale outlets
Hettlage + Fischer GmbH
Industriestraße 1
D - 48644 Coesfeld-Lette
Tel.: +49 – 2546 9345 – 0
Fax: +49 – 2546 9345 – 79
info@hettlage-fischer.com
www.hettlage-fischer.de
Product range: Ladies, men’s and
childrenswear
H&M Hennes & Mauritz
GmbH
Spitalerstrasse 12
D - 20095 Hamburg
Tel: +49 – 40 – 350 95 50
www.hm.com
childrenswear
Price segment: Lower level
Orsay GmbH
Tannenstr. 20
D - 77731 Willstätt-Eckartsweier
Tel.: +49 – 7854 – 963 – 0
Fax +49 – 7852 – 910 – 909
www.orsay.com
Number of outlets: 420 shops in 8
countries (231 in Germany)
77
Peek & Cloppenburg KG
Berliner Allee 2
Tel.: +49 – 211 – 3662 – 0
Fax: +49 – 211 – 3662 – 605
dialog@peekundcloppenburg.de
www.peekundcloppenburg.de
Product range: Ladies men’s and
childrenswear
SinnLeffers AG
Batheyer Str. 115 – 117
D - 58099 Hagen
Tel.: +49 – 2331 – 620 – 0
Fax: +49 – 2331 – 620 – 100
info@sinnleffers.de
www.sinnleffers.de
Product range: Ladies men’s and
childrenswear
s.Oliver Bernd Freier GmbH
& Co. KG
Ostring
D - 97228 Rottendorf
Tel.: +49 – 93 02 / 3 09 – 0
Fax: +49 – 93 02 / 3 09 – 9426
info@s.Oliver.de
www.soliver.de
childrenswear
Takko Holding GmbH
Alfred Krupp Str. 21
D - 48291 Telgte
Tel.: +49 – 2504 – 923 – 0
Fax: +49 – 2504 – 923 – 277
info@takko.de
www.takko.de
childrenswear
Tchibo GmbH
Überseering 18
D - 22297 Hamburg
Tel.: +49 – 40 – 6387 – 2876
Fax: +49 – 40 – 6387 – 2530
www.tchibo.de
childrenswear
Number of outlets: over 1000
78
Charles Vögele Deutschland
GmbH
Zeppelinstrasse 2-8
72488 Sigmaringen
Tel.: +49 – 7571 723 111
Fax +49 – 7571 723 171
www.voegele-mode.de
childrenswear
Wehmeyer GmbH & Co. KG
Rotter Bruch 17
D - 52068 Aachen
Tel.: +49 – 2 41 / 51 97 – 0
www.wehmeyer.com
Product range: Ladies’ and menswear
Rudolf Wöhrl AG
Lina-Amman-Str. 10
D - 90471 Nürnberg
Tel.: +49 – 911 – 8121 – 0
Fax: +49 – 911 – 8121 – 100
info@woehrl.de
www.woehrl.de
childrenswear
(brands mainly)
Department Stores (selection):
Zara
Moenckebergstrasse, 10
D - 20095 Hamburg
Tel.: +49 – 40 30 96 22 22
Fax: +49 – 40 30 96 22 40
www.zara.de
Product range: Ladies’ and
menswear
Deutsche Woolworth GmbH
& Co.OHG
Lyoner Str. 52
D - 60528 Frankfurt
Tel.: +49 – 69 – 6601 – 1
Fax +49 – 69 – 6601 – 2399
info@woolworth.de
www.woolworth.de
childrenswear
79
Karstadt/Quelle AG
Theodor-Althoff-Str. 2
D - 45133 Essen
Tel.: +49 – 201 – 727 – 1
Fax: +49 – 201 – 727 – 5216
www.karstadtquelle.de
Product range: Ladies’, men’s,
childrenswear and sportswear
Metro AG
Schlüterstraße 1
Tel.: +49 211 6886 – 0
kontakt@metro.de
www.metro-ag.de
www.metrogroup.de
Number of outlets: Real/Extra 560,
Kaufhof 127
Kaufhof Warenhaus AG
Leonhard-Tietz-Str. 1
D - 50676 Köln
Tel.: +49 – 2 21 / 2 23 – 0
Fax: +49 – 2 21 / 2 23 – 28 00
service@galeria-kaufhof.de
www.galeria-kaufhof.de
childrenswear
Note: belongs to Metro AG
Strauss Innovation GmbH &
Raiffeisenstr. 15-18
D - 40764 Langenfeld
Tel.: +49 – 2173 – 99 – 0001
Fax +49 – 2173 99 23 90
www.strauss1902.de
menswear
Wal-Mart Germany GmbH &
Co. KG
Friedrich-Engels-Allee 28
D-42103 Wuppertal
Tel: +49 – 202 – 2829 – 0
Fax: +49 – 202 – 2829 – 1724
kontakt@wal-mart.com
www.walmart.de
(for clothing)
80
Clothing Manufacturers (importing) and Wholesalers/Importers:
HEINRICH NICKEL GMBH &
CO.KG
Wilhelm-Bergner-Str. 10
D - 21509 Glinde
Tel.: +49 – 40 – 7270241
Fax: +49 – 40 – 7270224
www.nickel-sportswear.com
Importer of men’s, ladies and
children’s sportswear
APRIORI Textilvertriebs
GmbH
Harkortstr. 24
D - 48163 Münster
Tel.: +49 – (211) 438 09 05
Fax: +49 – (211) 435 04 83
Wholesaler of ladies wear
ARA Moden GmbH & Co.KG
Arastr. 2
D - 85579 Neubiberg
Tel.: +49 – 89 – 600180
Fax: +49 – 89 – 60018128
www.ara-moden.de
Manufacturer of classic womenswear
(CMT business mainly)
Bambino Dress Young
Fashion GmbH
Hauptstr. 43
D - 09496 Marienberg
Tel.: +49 – 3735 – 91430
Manufacturer/importer of
childrenswear
Bay City Textilhandels &
Co.KG
An’N Slagboom 7
D - 22848 Norderstedt
Tel.: +49 – 40 – 53413300
Fax: +49 – 40 – 53413301
Importer for jeans, casual and
active sportswear
81
F.W. Brinkmann GmbH
Waltgeristr. 1-5
D - 32049 Herford
Tel.: +49 – 5221 – 884 – 0
Fax: +49 – 5221 – 884 – 281
www.bugatti.de
Manufacturer of classic men’s and
sportswear (mainly CMT business –
brand orientated)
Bültel Bekleidungswerke
GmbH
Rheiner Str. 28
D - 48499 Salzbergen
Tel.: +49 – 5976 – 270
Fax: +49 – 5976 – 27410
www.bueltel.de
Manufacturer of men’s sportswear
elho Sportswear GmbH
Richard-Reitzner-Allee 8
Haus D
D - 85540 Haar
Tel.: +49 – 89 – 42091 – 0
Fax: +49 – 89 – 42091 – 213
www.elho.de
Manufacturer of active and casual
sportswear (full import and CMT)
Frontline Leather Fashion
GmbH
Werkstraße 11
D - 21218 Seevetal
Tel.: +49 – 4105 – 6105 – 0
Fax: +49 – 4105 – 6105 – 64
www.frontline.de
Importer of garments of all kinds
GARDEUR AG
Alsstraße 155
D - 41063 Mönchengladbach
Tel.: +49 – 2161 – 816 – 0
Fax: +49 – 2161 – 183833
www.gardeur.de
Manufacturer of classic ladies’ and
menswear specialised in trousers
(CMT business – brand oriented)
82
HUCKE AG
Ravensberger Str. 41
D - 32312 Lübbecke
Tel.: +49 – 5741 – 364 – 0
Fax: +49 – 5741 – 364 – 414
www.hucke.de
Multi Brand manufacturer of ladies’,
men’s and childrenswear (full import
and CMT)
ALBA MODA GMBH
Daimlerstr. 13
D - 32108 Bad Salzuflen
Tel.: +49 – 5222 – 920 – 0
Fax: +49 – 5222 – 920 – 899
www.albaModa.de
menswear
Note: Fashion orientated (not young
fashion)
Baur Versand
(GmbH & Co KG)
Bahnhofstraße 10,
96224 Burgkunstadt
Tel.: +49 – 180 – 530 50 50
www.baur.de
Product range: All kinds of goods,
ladies’, men’s, childrenswear
Price segment: Mid market level
Note: one of the larger mail-order
companies
BRUNO BADER
GmbH + Co KG
Maximilianstraße 48
D - 75172 Pforzheim
Tel.: +49 – 180 – 5 222 111
Fax: +49 – 180 – 5 222 777
www.bader.de
companies
CYRILLUS DEUTSCHLAND
Sonneaue 69
D - 47804 Krefeld
Tel.: +49 – 180 5 095 095
Fax: +49 – 180 5 000 955
www.cyrillus.de
Product range: Ladies’, men’s, childrenswear
Price segment: Mid level
Note: Niche market mail-order house
83
HEINRICH HEINE GMBH
Windeckstr. 15
D - 76135 Karlsruhe
Tel.: +49 – 721 – 9910
Fax: +49 – 721 – 9911886
www.heine.de
Products: Home textiles, furniture,
accessories, ladies’, menswear
Note: more classic styles
Versandhaus Robert Klingel
Sachsenstr. 23
D - 75177 Pforzheim
Tel.: +49 – 180/53 200
Fax:+49 – 180/5 30 56 70
www.klingel.de
ladies’, men’s and childrenswear
Neckermann Versand AG
Hanauer Landstraße 360
D - 60386 Frankfurt am Main
Tel.: +49 – 180 55414
www.neckermann.de
companies
Otto (GmbH & Co KG)
Wandsbeker Straße 3-7
D - 22172 Hamburg
Tel.: +49 – 40 – 6461 – 0
Fax: +49 – 40 – 6461 – 8571
www.otto.de
childrenswear and other goods
Note: Largest mail order house in the
world selling worldwide
SportScheck GmbH
Sendlinger Str. 6
D - 80331 München
Tel.: +49 – 180 55050*
Fax: +49 – 180 55051*
www.sportscheck.com
ladies’, men’s and childrenswear,
sportswear
84
Jeans-, Sportswear and Young Fashion
Western Store Beran
Sprottauer Str. 4 – 8
D - 90475 Nürnberg
Tel.: +49 – 911 – 98476 – 0
Fax: +49 – 911 – 98473604
www.wsberan.de
DIESEL DEUTSCHLAND
GMBH
Rather Str. 49B
Tel.: +49 211 418 56 0
Fax: + 49 211 412 298
www.diesel.com
Product range: Jeans, young fashion
Jeans Palast Görgens GmbH
Schildergasse
D - 50667Köln, Altstadt-Nord
Tel.: +49 – 221 – 2578649
Fax: +49 – 221 – 2582510
Product range: Jeans, young fashion
Jeans Fritz
Handelsgesellschaft
für Mode mbH
Tengerner Straße 143
D - 32609 Hüllhorst
Tel.: +49 (0) 5744 512 – 0
Fax: +49 (0) 5744 512 – 111
www.jeans-fritz.de
Product range: Jeans, leisurewear
New Yorker S.H.K Jeans
GmbH
Hansestraße 48
D - 38112 Braunschweig
Tel.: +49 – 531 – 2135 – 0
Fax: +49 – 531 – 2135 – 187
www.newyorker.de
Product range: Jeans, leisurewear
85
VF GERMANY TEXTILHANDELS GMBH H.I.S. Division
Daimler Str. 15
D - 85748 Garching/ München
Tel.: +49 – 89 – 329070
Fax: +49 – 89 – 32907108
www.his-jeans.de
MUSTANG, Bekleidungswerke GmbH & Co.KG
Austraße 10
D - 74653 Künzelsau
Tel.: +49 – 7940 – 125 – 0
Fax: +49 – 7940 – 125 – 102
www.mustang.de
Product range: Jeans
Price segment : Mid to upper level
Note: Manufacturer + clothing chain
Price segment : Mid to upper level
Note: Manufacturer + clothing chain
Buying Associations
ARDEK EG
Robert Bosch Str. 9
D - 65719 Hofheim-Wallau
Tel.: +49 – 6122 – 72 – 0
Fax: +49 – 6122 – 72338
www.ardek.de
Product range: Products for children,
childrenswear
Member companies: 408
INTERSPORT
DEUTSCHLAND EG
Wannenäckerstr. 50
D - 74078 Heilbronn
Tel.: +49 – 7131 – 288 – 0
Fax: +49 – 7131 – 21257
www.intersport.de
Product range: (Active) sportswear
Member companies: 1,450
Note: Market leader for active
sportswear
KATAG AG
Stralsunder Str. 5
D - 33605 Bielefeld
Tel.: +49 – 521 – 292 – 800
Fax: +49 – 521 – 292 – 810
www.katag.de
Product range: Men’s, ladies’ and
childrenswear
86
KURTENBACH GMBH & CO.
KG G TEXTILGROßHANDEL
Offheimer Weg 45
D - 65549 Limburg
Tel.: +49 – 6431 – 503 – 0
Fax: +49 – 6431 – 503 – 201
Product range: All kinds of garments
Westdeutsche
Handelsgesellschaft
Potthoffstr. 15 – 17
D - 58095 Hagen
Tel.: +49 – 2331 – 3960
Fax: +49 – 2331 – 396100
Product range: Men’s, ladies’ and
childrenswear
Member companies: approx. 380
87
Outerwear
I T A LY
3
I T A LY
SITUATION
Italy’s Gross National Income
(GNI) has been slightly growing in
recent years due to high exports
and consumption. For 2005 there
is expected to be stagnation while
the forecast for 2006 is for growth
of about 1.0%. In 2003, the economic growth rate amounted to
2.75% while in 2005 the rate is
around 1.6%. Italy also ranks in line
with average inflation rates in the
other
EU
countries
and
Switzerland. The overall inflation
rate in Italy was 1.8% in June 2005.
However, Italy is one of the countries ranked highest for unemployment rates in Western Europe at
7.9% in 2005.
Italy’s current population is 58.5
million; the country has developed
to an economic level similar to that
of countries such as Germany,
France or United Kingdom. Before
1945, Italy was quite rural and
today the country is still characterised by an agricultural South with
an unemployment rate of 20%
and a few big state-owned companies. On the other hand, the
‘rich’ North has a favourable economic climate and many successful private companies. The presence of the state is a general
problem for the whole country
and hinders full economic development. Italy has to deal with illicit
work on a large scale. The Italian
government is trying to directly
reduce the number of unemployed workers and employees by
employing them in national companies.
88
3.2 THE MARKET FOR
OUTERWEAR
3.2.1 Market size
Italy is the third biggest clothing
market in Europe, behind
Germany and the UK, and therefore plays a major role in the
European fashion business. The
market size for men’s and boys’
outerwear stands at 1.34 Bn. €
and the women’s and girls market stands at 2.03 Bn. €.
The Italian clothing market has traditionally been mainly supplied by
a strong national apparel industry,
comprised primarily of familyowned production companies.
These small to medium size companies are flexible and often highly
specialised in specific products.
They are able to react quickly to
market needs. The strong community within these companies
allows the Italian companies to
produce higher quality goods and
to be more effective. About 90%
of the small firms are geographically concentrated and often build
so-called ‘conzorzii’, e.g. for
export group marketing activities.
However, the Italian fashion business is facing a highly visible crisis.
The Labour Unions have called on
fashion employees to protest, as
the government plans to introduce a labelling obligation for
Chinese products. The threat to
close outlets or shift productions
abroad is widespread, as it was in
the early 80‘ s. The problems in
Italian fashion business are also
due to its own structure.
Therefore many companies have
begun or are planning to embark
on restructuring processes.
Nonetheless, the Italian clothing
industry is one of the most competitive within Western Europe
and imports of outerwear
encounter difficulties in finding
suitable market access. The Italian
clothing industry itself is highly
export oriented and plays an
important role in the economic
situation of the whole country.
540,000 workers directly depend
on the Italian clothing industry. Italy
is a leading country for clothing
(and textiles) worldwide. Clothing
exports are double the imports.
Italian consumers are very much
brand oriented, but also are looking for items which offer value for
money. In recent years, the consumers have also become more
price oriented and are known for
their high demands regarding
quality. Because of the high specialisation of the Italian producers
and their offer of very sophisticated collections, manufacturers
from abroad should avoid copying
Italian outerwear.
Cheaper and lighter clothing is
more often sold in the south of
Italy, where the climate is warmer
and there is less income per
capita. There is more expenditure
on clothing in the richer North than
in the South, although more
people live in the South of Italy.
89
Italy is known as a family loving
country where children and
mothers play an important role in
society. Less known is the fact
that the formerly high birth rates in
Italy have dramatically dropped
since 1975 - more than in other
European countries. The situation
is similar to that of Germany, but
even more marked.
The consequences of this
decrease in the Italian population
is not only that less childrenswear
is sold, but major changes are
required on the production side.
Since clothing production in Italy
has a tradition of small familyowned companies, there are
negative effects due to smaller
family sizes. The owners are no
longer able to run the company
with fewer family members.
Figure 3-1: Age structure of the Italian population by sex, 2005
Italy: 2005
male
100+
95-99
90-94
85-89
80-84
75-79
70-74
65-69
60-64
55-59
50-54
45-49
40-44
35-39
30-34
25-29
20-24
15-19
10-14
5-9
0-4
female
3,5 3,0 2,5 2,0 1,5 1,0 0,5 0,0 0,0 0,5 1,0 1,5 2,0 2,5 3,0 3,5
Source: U.S. Bureau of the Census, International Data Base
The most numerous group in the
population is the 35 - 39 age
group, with a total of 5 million inhabitants. Compared to this age
group, there is nearly half of that
number in the lowest age group,
that is, the newborn – 4 year old
segment (2.5 million persons).
However, the reduction of the
Italian population seems to have
stabilised at a low level. Figure 3-1
shows further details.
Another consequence is that
parents often cannot find a successor for their clothing business.
Since these small family companies are flexible and highly service
oriented and also dominate the
independent shops, the whole
clothing distribution in Italy is affected.
90
The shares of the different apparel
segments (styles) of formal and
casual clothing, leisurewear and
active sportswear in Italy are similarly structured to the more traditional oriented British clothing
market. Table 3-1 shows the
dominant role in sales of formal
clothing: 43% of menswear sold in
Italy is formal wear as is 47% of
womenswear. Compared to other
European countries, the share of
formal wear is very high.
Casualwear has a market share of
30% for menswear and 29% for
womenswear and is a preferred
product category of the Italian
consumer, as in all other Western
European countries. Within this
product group, shirts and trousers
have for the highest shares in
sales. Jeans and trousers represent one third of the Italian market
for woven outerwear. However,
casualwear as the Italians understand it has a very sophisticated
touch with high quality fabrics and
basic but elegant designs in comparison to the Northern European
markets.
Basic leisure wear is less important in Italy and only represents
20% (menswear) and 19%
(womenswear) of the total clothing market. Looking at the separate product categories it can be
observed that casualwear trousers, for example, are sold more
often in Italy than (basic) jeans.
The minor role of this segment,
that is mainly produced by manufacturers from abroad, can be
explained by the Italian taste for
more elegant styles.
Table 3-1: Shares of outerwear by sex, 2004
In % of total value
in million €
Formal Clothing
Men
Women
43
47
Coats/raincoats
568
1.089
Suits/jackets
998
In % of total value
in million €
Women
30
29
Outdoor jackets
1.014
1.096
1.804
Shirts
1.206
1.702
1.979
2.512
Jumpers/cardigans
-
1.593
Dresses/skirts
-
2.324
Pullovers
1.684
-
Shirts/blouses
1.206
1.702
Trousers
1.979
2.512
20
19
7
5
T-shirts
1.043
1.643
Sportswear
694
771
Jeans
1.405
966
Other
509
375
Trousers
Basic leisurewear
Source: CBI Rotterdam, 2005
Casualwear
Men
Active sportswear
91
Table 3-2 shows the development
of the preferred types of retail channels for clothing from 2000 to 2004.
The table indicates that Italian consumers mainly prefer to buy clothing
in independent shops. This retail
sector still accounts for half of the
total Italian clothing retail market.
The main reasons why Italian consumers prefer independent retailers
is that these shops are somehow
‘closer to the consumer’. Furthermore, these boutique-like shops
offer personal contact and more
through independent shops expresses the desire for service and
quality. A graphic illustration of the
2005 situation is given in Chapter
3.4.3.1 ‘Retailers’.
Generally speaking, the Italian consumer is extremely quality and
fashion conscious, but very hesitant
and looks only for products which
he or she is really convinced of.
The fact, that Italians are more and
more price oriented as consumers
can be derived from the increasing
role of hyper- and supermarkets in
the Italian retail market, where
men’s and childrenswear in particu-
Table 3-2: Clothing retail channels by market shares, 2000 - 2004
2000
2002
2004
Specialists
69
69
68
52
51
49
Clothing multiples
17
18
19
Non-specialists
31
31
32
8
8
8
Hyper- and supermarkets
10
11
12
Sports shops
4
4
4
2
2
2
Street markets and other
7
6
6
100
100
100
Total
service. The formerly very strong
market position of independent
retailers has been weakened, but is
still clearly dominating the buying
decisions of the consumers. The
high share of clothing consumption
Source: Trade Estimates, 2005
In % of total value
lar is bought. At the same time, consumers have a high brand awareness. This is particularly evident in
the segment of children’s clothing.
Many children love to have clothing
with pictures of current trends for
kids on it.
92
Italy, in terms of consumption
volume of clothing, belongs to the
top four countries within Europe
together with France, the UK and
Germany. The consumption of
clothing will, according to most
recent estimates, account for
45.7 Billion € in 2006. Over the last
few years, spending on clothing in
Italy has gradually increased. The
average growth rate of clothing
consumption between 2003 and
2006 is 2.5% annually. More
details can be taken from Figure
3-2.
According to the press and market surveys, the attitude of Italians
towards fashion items has deteriorated. It is foreseen that 42% of
the population will reduce their
expenditure on clothes in the near
future. This is the highest figure
within the last 15 years. The strongest decrease is expected for the
next years in the outerwear sector, where 46.2% will cut their
expenses.
Figure 3-2: Consumption of womens-
According to Nielsen (2005) the
share of clothing expenses in total
expenses has decreased from
2000 to 2005, with a peak in 2001
(1.6%) and 2003 (1.5%). In 2005
the decrease in the shares of clothing expenditure was ‘only’ 0.3%,
whereas total consumption grew
by 2.2%. This whole development
was and is a kind of shock for the
Italian clothing market which ran
through an euphoric clothing consumption phase from 1995 to
2000.
It is notable that Italian women do
not buy that much more clothing
than men. In other European
countries like UK or Switzerland,
women’s expenditure for clothing
is nearly double that of men. In
Italy, women only spend around
30-35% more on clothing compared to men. This means that in
Italy the market segment for
menswear is more important than
in the other countries analysed in
this survey. Other sources indicate
a difference of 40% between consumption of men’s and womenswear, but this would still be less
than in Switzerland or in UK.
wear and menswear, 2003 - 2006
46
45
44
43
42
41
40
Source: Eurostat, 2005, (f)=forecasts
93
As table 3-3 indicates, the total
expenditures in the North and in
the South of Italy are different. The
disposable income in the North is
much higher than in the South.
The Italian Statistical Office (ISTAT)
indicates an average household
expenditure of 2 689 € for the
North and only 1 915 € for the
South of Italy (all figures for year
2004). While incomes in the North
have steadily increased, income in
the South had a temporary drop in
1999. For the whole country, income per household only rises
slowly. Taking inflation into
account, income growth rates are
even negative.
Although expenditure in the South
in total is lower - due to less disposable income - the share of
expenditure for clothing (and footwear), at 7.8% (1998: 8.2%, 1999:
7.8%), is higher than the Italian
average. Generally speaking, the
more attractive areas for clothing
sales are in the North and central
part of Italy, where the import and
distribution structures are much
better developed. Nevertheless,
the South, due to lower income,
has a higher demand for ‘basic
clothing items’ (e.g. cotton products like cotton casual shirts and
trousers, T-shirts, knitwear).
It is not possible to make a
distinction between clothing and
footwear consumption on the
basis of ISTAT figures. The figures
indicate that the consumption of
clothing/footwear in Italy accounts
for 6.6% of total household consumption (Basis: middle income
household).
94
Table 3-3: Comparison of household expenditure and the structure of household
spending by region, 2003 - 2004
Northern Italy
Monthly expenditure
per household in €
Food and drinks
Southern Italy
Italy (total)
2003
2004
2003
2004
2003
2004
2003
2004
2536
2689
2436
2392
1892
1915
2307
2381
Spending categories
Clothing/footwear
Central Italy
Percentage distribution
6.2
6.1
6.5
6.4
7.9
7.8
6.7
6.6
17.4
16.7
19.0
18.8
24.0
23.8
19.5
19.0
Tobacco
0.8
0.7
0.8
0.8
1.1
1.1
0.8
0.8
Housing
25.8
26.7
27.8
27.6
21.1
21.3
21.9
25.5
Fuel and electric
power
4.9
4.8
4.6
4.7
4.4
4.5
4.7
4.7
Furniture, services
house
5.9
6.2
6.1
5.6
7.1
7.1
6.3
6.3
Sanitary/health
4.2
4.1
3.2
3.3
3.5
3.5
3.8
3.8
14.5
14.6
13.6
13.8
13.3
13.7
14.0
14.2
2.0
2.0
2.1
2.3
2.3
2.3
2.1
2.1
Education
1.1
1.2
1.0
1.0
1.4
1.4
1.2
1.2
Entertainment/
Culture
5.1
5.1
4.7
4.9
4.3
4.3
4.8
4.8
12.3
11.9
10.7
10.6
9.5
9.2
11.2
10.9
Transport
Communications
Other
Source: ISTAT, 2005
95
As Table 3-4 shows, the share of
expenditure for clothing rises with
an increasing number of household members: From 5.1% for a
single household rising to 6.9% for
three people living in one household. In households with 5 or more
people, the share of expenditure
in clothing clearly rises to 8.0% (all
figures 2005).
Table 3-4: Comparison of household expenditure and household spending
on clothing and footwear by household size, 2005
Number of people per household
Monthly expenditure per household
in €
Monthly household spending on clothing and footwear in %
1
2
3
4
5+
1 503
2 254
2 871
3 012
3 071
5.1
5.9
6.9
7.6
8.0
Source: ISTAT, 2005
The share of expenditure for clothing as a proportion of total
expenditure sorted by different
family status is illustrated in table
3-5. The highest expenditure with
2 932 € and a ‘high’ share of clothing expenditure with 8.0% is
represented by a family household with parents and three or
more children. In contrast, households with single parents have a
lower income and a lower share of
expenditure for clothing (only
6.5%).
Households with the head of household having the professional
status of entrepreneur, freelancer,
manager or employee have a higher share of expenditure on clothing. On the one hand, this can
explained by more expensive formal wear for work. On the other
hand, it can be assumed that the
share of expenditure (for clothing)
is higher with an increasing income.
96
Table 3-5: Comparison of household expenditure and spending by types of
household and professional status, 2004
Monthly household
spending on clothing
in %
Monthly expenditure
per household in €
(average)
Household type
Single person under 35
7.6
1 912
Single person, 35-64
6.2
1 789
Single person 65 and
over
3.6
1 165
Couple without children,
under 35
7.9
2 462
35-64
6.7
2 588
65 and over
4.1
1 903
Couple with 1 child
7.3
2 788
Couple with 2 children
7.8
2 928
Couple with 3 or more
children
8.0
2 932
Single parents
6.5
2 255
Entrepreneurs and freelancers
8.6
3624
Labourers
7.5
2 837
Managing and employees
7.7
2 954
Pensioned
7.1
1 993
Unemployed
4.9
1 688
Professional status
Source: ISTAT, 2005
97
3.2.6 Price developments of clothing
Figure 3-3 indicates the price inflation of clothing (and footwear)
compared to the general inflation
index in Italy from 1994 to 2004. In
contrast to other European countries, the Italian clothing sector
from 1994 onward does not show
decreasing clothing prices.
In 1995, when the general inflation
rate was high, clothing prices also
grew more. During the time period
illustrated in Figure 3-3 from 1994
to 2001 the lowest national inflation rate was in 1999 at 1.6% and
clothing prices increased by 2.0%
only. In 2004 one can see that
both indices dropped simultaneously to 2.3%.
The development of the clothing
prices and the national inflation
rate showed a similar tendency.
For example, in 2001 the overall
inflation was 2.7% and prices for
clothing increased by 3.0%.
Therefore, the clothing prices
generally follow the price development of other consumer goods
and services.
Figure 3-3: Inflation rate of clothing and footwear relative to national
6
5
Clothing and footwear
price index
4
3
Consumer price index
2
1
0
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
change in % from previous year
inflation rate, 1994 – 2004
Source: ISTAT, 2004, Italy in Figures
98
3.3 IMPORTS
3.3.1 Total imports
Total Italian imports of outerwear
in 2004 amounted to 6 929 Billion
€. This currently high figure is a
result of the strongly increasing
imports in the last five years.
These high growth rates can be
explained to a large extent by the
previously ‘moderate level’ of
imports compared to other
European countries. Developing
and emerging countries nowadays play an important role in the
higher imports of outerwear to
Italy.
In addition, imports of the different
outerwear segments covered by
this study showed a strong upswing from 2002 to 2004. Looking
at the import development of knitted outerwear in Table 3-6, the
increase of outerwear for both
sexes in this period is especially
remarkable. The imports in volume increased by nearly 50%.
At the same time, the imports of
men’s and boys outerwear
increased less dramatically. These
figures indicate that the menswear manufacturers from abroad
wishing to sell (more) in Italy come
up against a very strong national
menswear industry, especially in
the formal wear sector with coats,
raincoats, suits, jackets, trousers
etc.
The deliveries from non-EU countries play a dominant role in all
sectors of knitted outerwear. For
example, looking at the imports of
woven outerwear in € for women
and girls, 81% of the garments originate from non-EU countries
(year 2004).
99
2002
2003
2004
tons
1 000 €
tons
1 000 €
tons
1 000 €
671
16 765
928
20 377
1 130
23 071
(61.03)
8 457
78 853
9 863
85 653
12 277
125 700
Shirts (61.05)
6 583
132 941
6 686
117 653
7 783
141 163
Total
15 711
228 559
17 477
223 683
21 190
289 934
Total extra EU
14 166
164 156
15 738
162 815
19 177
222 965
769
22 190
914
24 367
1 106
28 286
28 453
153 495
28 309
164 790
21 498
188 606
2 234
57 498
2 624
67 466
3 547
88 973
Total
31 456
233 183
31 847
256 623
26 151
305 865
Total extra EU
29 923
163 212
29 865
181 368
23 529
210 607
31 648
567 113
38 046
655 068
48 233
850 699
Jerseys, pullovers,
etc. (61.10)
48 275
1 103 357
51 669
1 147 388
60 276
1 212 111
7 005
129 803
10 042
134 494
13 307
152 734
401
8 559
431
8 522
662
8 450
Total
87 365
1 808 832
100 188
1 945 472
122 478
2 223 994
Total extra EU
73 783
1 348 877
84 041
1 472 640
103 953
1 676 849
10 952
155 632
17 745
162 800
20 694
188 703
1 266
41 088
2 335
75 394
2 897
110 539
Total
12 218
196 720
20 080
238 194
23 591
299 242
Total extra EU
10 974
136 028
18 461
153 457
20 973
171 053
For men or boys
Coats, raincoats,
For women or girls
Blouses and shirt
blouses (61.06)
For both sexes
Impregnated clothing(61.13)
Active Sportswear
swimwear (61.12)
100
Table 3-7 shows the import figures of woven outerwear into Italy
from 2002 to 2004. An interesting
fact is that woven menswear in
particular is imported at a higher
level than womenswear. The difference compared to the imports of
womenswear is very obvious
when looking at the value terms.
The difference is even higher
when analysing the import volumes in tons: imports of woven
menswear are significantly higher
than those of woven womenswear imports.
In 2004, imports of woven menswear into Italy amounted to 2
Billion € and 114 327 tons. Imports
of woven womenswear in 2004
represent only 1.6 Billion € and
88 923 tons. It must be mentioned that the high imports of
woven menswear is no new
development; the same situation
obtained in previous years.
Nearly all outerwear product segments increased their imports
from 2002 to 2004. Nevertheless,
looking at table 3-7, the specific
woven product categories showed different developments. For
example the imports of woven
coats increased in 2003 but dropped again in 2004 to 444.7 Million €. In 2003, imports of woven
coats for women increased but
decreased even more in 2004 to
387.9 Million €. However, all other
product categories of woven suits
and woven shirts/blouses dropped even more. Blouses in particular had a remarkable drop in
imports.
Table 3-7: Imports of woven outerwear by sex and product categories,
2002 - 2004
2002
2003
2004
tons
1 000 €
tons
1 000 €
tons
1 000 €
Coats, anoraks,
windcheaters
etc. (62.01)
24 822
436 849
27 365
442 606
27 199
444 685
Suits, jackets,
outfits, trousers,
shorts etc.
(62.03)
64 593
1 173 772
62 374
1 100 267
68 515
1 185 594
Shirts (62.05)
22 585
422 449
24 456
426 635
18 613
369 779
Total
112 000
2 033 115
114 195
1 969 508
114 327
2 000 058
Total extra EU
102 547
1 689 522
106 774
1 661 440
106 976
1 689 549
For men or boys
101
2002
2003
2004
tons
1 000 €
tons
1 000 €
tons
1 000 €
Coats, capes,
anoraks, wind
jackets etc. (62.02)
19 302
323 379
34 704
366 973
23 163
387 911
dresses, skirts, trousers (62.04)
54 282
908 636
68 260
980 199
56 430
1 064 691
Blouses and shirt
blouses (62.06)
18 168
197 483
30 984
197 289
9 330
162 400
Total
91 752
1 429 498
133 948
1 544 461
88 923
1 615 002
Total extra EU
86 416
1 118 742
128 661
1 255 229
82 721
1 314 790
Babies garments
(62.09)
5 075
77 111
7 866
81 584
6 220
82 511
Other incl.
Impregnated (62.10)
7 916
114 811
8 319
120 093
7 901
112 632
Total
12 991
191 922
16 185
201 677
14 121
195 143
Total extra EU
10 875
132 964
13 861
133 474
11 669
118 131
For women or girls
For both sexes
According to Table 3-8, the main
two import countries for OPT business with Italy are Romania, with
imports of 51.7 Million € in 2004,
and Albania, with imports of 32.3
Million €. At present, the countries
with the highest growth rates in
the outward processing trade are
Croatia (+388% in 2004), China
(+213%), Bosnia Herzegovina
(+116%) and Egypt (+73%).
For Italy, the proportion of OPT
imports compared to ‘normal’
imports of outerwear (f.o.b. business) is low. The implication for
clothing manufacturers mainly
based in Eastern European countries is that there is a great deal of
potential for more OPT business in
the Italian market due to the national industry’s struggle with increasing costs for labour, energy, raw
materials etc.
The total OPT business into Italy
from non-EU countries has been
shrinking year after year: 5% in
2003 and 1% in 2004. These figures indicate that the lower imports
of OPT stand in strong contrast to
the high increases of ‘normal’
imports of outerwear.
102
Table 3-8: Largest supplying countries of OPT outerwear, 2002 - 2004
Positon
Country
2002
in 1 000 €
Change
from 2002
2003
in 1 000 €
Change
from 2003
2004
in 1 000 €
1
Romania
66.967
-12%
59.165
-13%
51.682
2
Albania
24.172
3%
24.922
29%
32.255
3
Croatia
13.063
-66%
4.505
388%
21.962
4
Tunisia
20.129
4%
20.885
-16%
17.560
5
Moldova
9.416
42%
13.337
21%
16.084
6
Ukraine
14.315
21%
17.269
-25%
12.923
7
Belarus
10.243
14%
11.702
6%
12.386
8
Serbia/
Monten.
13.631
-26%
10.154
-36%
6.541
9
Hungary
17.654
-13%
15.347
-60%
6.100
10
Bulgaria
7.806
-18%
6.390
-19%
5.173
11
Bosnia-Herz.
195
680%
1.517
116%
3.283
12
Slovakia
2.888
218%
9.177
-65%
3.247
13
China
279
185%
796
213%
2.489
14
Egypt
722
98%
1.432
73%
2.476
15
Morocco
1.659
11%
1.842
28%
2.354
16
Czech Rep.
1.024
32%
1.347
-58%
563
17
Russia
1.979
-68%
624
-55%
281
18
Poland
2.446
-81%
464
-71%
134
19
Macao
540
-81%
100
-80%
20
20
Slovenia
2.879
-84%
454
-96%
18
212.357
-5%
201.617
-1%
200.085
Extra-EU15
103
Looking back at the import figures
illustrated in table 3-7 and table 38 (in volume and value) the different shares of imports from nonEU countries regarding the specific product category are becoming clearer.
To show the import role of extra
EU countries, this chapter highlights the imports of knitted coats,
suits and blouses for women
(taken from Table 3-9). For instance, there were 26 151 tons of knitted coats, suits and blouses for
women imported to Italy in 2004.
From outside the EU, 23 529 tons
of these product categories were
imported to Italy in the same year.
This is a share of 90% (2001:
95.6%) imports from outside the
EU for this product category.
However, looking at the imports in
the same product category in €,
the share of imports from non-EU
countries is clearly lower: 68.9%
(2001: 71.1%). In 2004, the imports
of knitted coats, suits and blouses
for women from countries outside
the EU were 210 607 €, while the
total imports of the aforementioned products were 305 865 €.
Firstly, it can be stated that the
share of imports from outside the
EU is quite high - whether calculated in volume or in price.
Secondly, the difference may be
explained by the higher priced
items from the EU and the cheaper products imported from outside the EU.
This example also shows that the
share of imports from outside the
EU have been at a considerably
high level during the last three
years. In 2002, the share of knitted womenswear in value terms
imported from non-EU countries
was 69.9% and in 2004 remained
nearly constant at a level of
68.9%.
Looking at the major clothing supplying countries to Italy, Table 3-9
gives a very good survey on the
‘top 20’ suppliers. Among the
emerging and developing countries is China, with enormous
growth rates every year and
imports of 1 364 235 Million € in
2004. This figure represents 18%
of the total imports of outerwear
into Italy. A similar picture can be
drawn for India (206.4 Million €)
and Hong Kong (92.7 Million €)
which have considerable growth
rates, too. Although Romania was
the largest supplier in 2001, today
it is has been overtaken by the largest
clothing
manufacturing
country worldwide - China, which
was previously in the second position.
The three biggest suppliers are
China, Romania and Tunisia.
These three countries account for
42% of the market. This shows
again that import countries are not
scattered, but there is a concentration of a few big players. It can
be assumed that Romania and
Tunisia, as traditional strong OPT
countries, work for large Italian
manufacturers that have outsourced at least parts of their production to nearby ‘low cost countries’.
104
Other strong non-EU countries
which have reinforced their position in 2004 in terms of value and
enjoy the favour of the Italian
importers of outerwear are
Bangladesh
(+25%),
Turkey
(+32%), Hungary (+57%), India
(+25%), Morocco (+8%) and
Croatia (+11%).
Positon
Country
2002
in 1 000 €
Change
from 2002
2003
in 1 000 €
Change
from 2003
2004
in 1 000 €
1
China
953.772
28%
1.216.106
12%
1.364.235
2
Romania
1.283.762
1%
1.293.476
-11%
1.149.930
3
Tunisia
664.166
-2%
651.910
3%
672.044
4
France
393.571
5%
412.127
9%
449.355
5
Turkey
212.822
13%
241.431
32%
319.585
6
Belgium
271.098
-8%
248.770
7%
265.774
7
Hungary
174.642
-10%
158.046
57%
248.067
8
Bangladesh
210.322
-8%
192.446
25%
240.147
9
Germany
195.119
1%
196.583
9%
215.074
10
Croatia
191.403
-1%
188.769
11%
208.959
11
India
142.038
16%
164.589
25%
206.365
12
Bulgaria
166.355
8%
179.127
-4%
172.486
13
Spain
179.443
-16%
150.582
10%
165.147
14
Portugal
128.581
2%
131.521
7%
140.418
15
Utd.
Kingdom
115.271
-15%
98.135
38%
135.481
16
Netherlands
118.244
30%
154.095
-12%
135.408
17
Morocco
92.174
-1%
91.111
8%
98.259
18
Indonesia
91.531
1%
92.096
6%
97.612
19
Hong Kong
62.320
23%
76.633
21%
92.657
20
Slovakia
103.965
0%
104.076
-24%
79.226
Intra-EU15
1.516.198
0%
1.510.608
10%
1.655.937
Extra-EU15
5.212.676
6%
5.525.563
7%
5.906.691
Total
6.728.874
5%
7.036.172
7%
7.562.628
105
3.4 TRADE STRUCTURE
The independent retailers, which
are mainly run as family businesses, still have a strong market
position. As stated previously, the
role of the independent shops in
Italy has diminished and many
shops have had to close down
because the owners could not
find a successor for their business. Low birth rates cause the
problem, given that there is no
child to take over the business.
Furthermore, a tremendous competition has arisen in the clothing
market from clothing multiples
and supermarkets that have discovered that selling clothing is a
profitable business.
As in other South European countries, in Italy the domestic production and distribution of clothing is
closely linked. Many Italian clothing brands like Benetton,
Marzotto Group etc. have built up
their own retail system, often
based on franchise partnerships
all over the country. In Europe,
however as in Italy itself, Italian
clothing brands and collections
have lost market share. The multiple shops of Italian clothing companies have tried to answer by
‘going public’, joint ventures and
mergers, with partial success.
With the money earned from
giving out stocks, some Italian
multiples have financed their
expansion plans to buy other
companies and brands, enlarge
their production facilities or extend
their distribution network.
As shown in chapter 3.3, imports
grow constantly and low priced
products in particular are imported and sold in Italian super- and
hypermarkets. In addition, formerly middle priced and high priced
items are influenced by increasing
imports.
The Italian clothing association
‘Sistema Moda Italia’ states that
the multiples in Italy cope better
with the new challenges of cheap
mass imports than many small
companies. The developments in
clothing retail are very much in
favour of multiples like Sasch,
Benetton, Gas etc. that are able to
optimise stock keeping and act
efficiently in the market. As an
example, in Milan you will find four
Benetton shops in a single shopping street, one of which is a store
with several floors. Such flagship
stores of course also help to build
up the brand names of the clothing companies. The small companies however have less financial possibilities to follow the technical trends in research and development and to establish their
own distribution system.
106
Since the variety stores also
import and take advantage of
cheaper clothing from outside the
country, this segment could have
profited in terms of gaining market
share. However, the market
importance is not as much as was
forecast years before. Variety
shops have to fight against discounters or super- and hypermarkets not to lose their customers
searching for mid-priced and
middle quality items. Unlike previous years, these super- and
hypermarkets nowadays offer
good quality and very reasonable
prices.
Instead of only selling clothing,
advanced managed Italian retailers (mainly multiples and department stores) also often offer cosmetics, bags, shoes, accessories
and sometimes even stylish household articles. There is a trend
that retailers in Italy put emphasis
on a ‘lifestyle ambience’ in the
outlets and appropriate surroundings like cafeteria or special places for children. The aim is to
keep the customers in the shops
as long as possible to motivate
them to finally buy something.
E-commerce and Internet sales in
Italy have fewer opportunities than
in other European countries. Only
very low growth rates of clothing
sales through this distribution
channel can be predicted, because the logistically similar structured
mail-order business is very small
as well. The Italian Post is not efficient and too slow and it is a real
burden to run a proper mail-
order or e-commerce business.
Furthermore, Italian consumers
like to touch the fabric and trying
on the clothing. Italian consumers,
having ordered via internet or
mail-order, are generally not prepared to wait for the items bought
for more than one week.
A phenomenon in Italy are the socalled street markets with a share
of approximately 10%. NorthAfricans and increasingly Chinese
dealers offer cheap (branded) and
very fashionable clothing with
minor faults at a reasonable quality. Obviously, some of the products are just fakes. 8 out of 10
Italian consumers admit to buying
from these mainly illegal market
dealers. Most of the goods come
directly from China, Morocco or
elsewhere.
It can be expected that there are
a lot of changes in the Italian retail
sector still to come. This can be
assumed based on observations
of earlier developments in other
European countries, e.g. the
growth rates in the retail sector in
Italy (around 3.5% annually) are
still higher than in countries like
Germany or France.
Due to strong competition on the
Italian fashion market, large retailers such as H&M, Zara and
French Connection have just
recently entered the market.
107
The UK based Market Research
Institute ‘Retail Intelligence’ believes that smaller chains like Vögele
(Switzerland), WE International
(Netherlands), Brantano (Belgium)
or El Corte Inglés (Spain) might
consider entering the Italian retail
market. On the other side, Italian
retailers like Sasch have entered
the markets abroad, as have
Benetton (worldwide turnover of
1.7 Billion €) and Coin (worldwide
turnover of 1.07 Billion €), of which
the latter acquired the German
department store Kaufhalle and
changed it into Oviesse. They
have subsequently pulled out of
the German market again, with
great losses.
3.4.2 Leading Retailers
MAX MARA is an Italian fashion
giant with a continuously growing
turnover, about 1.3 Billion €, with
more than 1,200 shops in over 100
countries. Max Mara operates 17
companies in the markets and
owns more than 40 sub-labels.
The brand produces and distributes womenswear, mainly coats
and suits.
STEFANEL has around 120 shops
in Italy and about 400 shops for
womenswear all over the world. In
the megastores of Stefanel,
brands other than Stefanel are
also offered. The whole company
has a turnover based on retail and
production activities of 260 Million
€ a year. Stefanel owns four production sites in Italy and one in
Germany.
The largest clothing retailer is the
well known BENETTON GROUP
which has 5,000 shops in 120
countries all over the world. The
turnover at retail level was 1.7
Billion € in 2004. Benetton is both
manufacturer and retailer and carries the brands United Colors of
Benetton, Sisley and many other
brands for sportswear and sports
equipment. The group’s strategy
is to increase floor-space and to
transform its shops into megastores. The large shops are managed
directly by Benetton (no franchising) and are located in historical
town centres and main shopping
centres. The new Benetton
‘Megastores’ sell casual wear and
underwear and accessories for
women, men and children.
108
The COIN GROUP is one of the
leading European retailers for clothing, accessories, and household
goods and has a turnover of 1.07
Billion € a year. The retail chains
Oviesse and Coin belong to COIN
Holding and are subsidiary companies for different market segments. For some years Coin
owned the German retailer
Kaufhalle which was a bad strategic step for Coin to enter foreign
markets. They had to close quite a
number of stores and finally left
the German market. Throughout
Italy there are 326 shops. The
Coin clothing range is produced
by Manifatture di Fara SPA and
Sirema Srl. In 1998, it acquired the
non-food sector of Standa, which
is one of Italy’s largest supermarket chains that also sells clothing,
but to a lesser extent.
LA RINASCENTE is the leading
department store in Italy with a
good reputation offering a wide
product range including a wide
variety in clothing. In 2004, the turnover of La Rinascente was 925
Million €, including its subsidiary
company UPIM in 404 outlets. La
Rinascente aims to be the most
elegant department store. Like
other retailers that pursue a quality strategy, the stores are attractively decorated for national and
international
customers.
La
Rinascente department stores
are located in characteristic places in the city centres of the major
Italian cities. A 7-year restructuring
programme until 2012 for the
whole Group aims to double the
turnover of La Rinascente to
approximately 605 Million € by
increased merchandising, more
service for the customers,
decreasing the share of own
labels from 40% to 10% and an
increase of ‘concessions’ within
the outlets from zero to 30%. It is
envisaged to increase the number
of shops to 20.
A 5-year investment plan has also
been agreed for the UPIM outlets,
until 2010, with the main aim of
modernising all outlets and increasing turnover from 510 Million € to
600 Million €. At present, UPIM
has 350 shops, of which 150 are
operated under own management.
In the latest press reports dated
from 2005 there are a lot of
rumours going round concerning
a merger between Gruppo Coin
and La Rinascente.
109
3.4.3 Distribution Channels
3.4.3.1 Retailers
Figure 3-4 gives a survey of the
structure of the Italian clothing
retail market. The graph indicates
that
independent
retailers
account for 49% of clothing retail
and therefore represent nearly
half of the market. As opposed to
other European countries, where
multiples have the largest share, in
Italy only 19% of the clothing is
sold through these clothing
chains. Grocery super- and hypermarkets represent 12% and
department stores account for
8% of the clothing retail distribution in Italy.
Figure 3-4: Clothing retail channels by market shares, 2004
Street markets and other 10%
Grocery super- and
hypermarkets 10%
Mail-orderhouses 2%
Sport shops 4%
Independent specialised
retailers 48%
Department/
variety stores 8%
Clothing multiples
19%
Source: CBI, 2005 and trade estimates
110
retailers
The Italian clothing market is
dominated by independent retailers. These are mainly family run
clothing shops, and had a market
share of 59% in 1995. Since then,
the importance of independent
retailers has dropped to a market
share of 49% in 2004. Italian small
retailers offer high-priced items
with an emphasis on quality,
brands, well designed outlets and
service. These ‘boutique like’
shops convince with ‘personal
contact’ and good ‘availability’ by
a dense allocation of the shops all
over the country.
Trend: Strongly Decreasing
(1995 = 59%)
In contrast to other EU countries,
clothing multiples in Italy mainly
belong to clothing manufacturers.
The most prominent is Benetton.
Other clothing brands with own
shops are Stefanel (womenswear),
Max Mara (womenswear), Prenatal
(childrenswear) or Chicco (childrenswear). Since these clothing
chains aim to sell their own collections, importers will have difficulties in
selling to them. This situation is totally different to other countries like UK,
Germany or The Netherlands. The
Italian clothing multiples only buy a
few items to complete their product
range. However, if they import clothing, then they buy directly and concentrate on basic items.
Clothing chains other than those
tied to Italian manufacturers have
serious problems in Italy. There is
no Marks & Spencer or C&A in
Italy yet. There are French multiples like Déclathon, Kookai,
Promod or Kiabi in Italy, but they
have limited profitability. These are
companies that do not generally
sell the clothing they produce, but
buy from all over the world.
Newcomers in Italy are the
Swedish H&M and the Spanish
Zara which opened shops in
2005.
Trend: Slightly Increasing
(1995 = 17%)
3.4.3.1.3 Department/variety stores
There are two big department
stores in Italy: La Rinascente and
Gruppo Coin. The department
stores in Italy have an amazingly
large range of products to offer.
For example, Coin offers ladies
clothing from outerwear, underwear, night and swimwear to
jeans and sportswear. Beauty, fitness and shoes also have a major
share in the range of products
offered in the Coin stores.
Although most of the quality clothing items are sourced in Italy
(often brands) men’s and childrenswear especially is often
imported directly from manufacturers abroad.
Trend: Slightly Increasing
(1995 = 7%)
111
Due to unsatisfying postal services
in Italy, the mail-order business is
little developed and has no real
tradition as in other European
countries. The leading mail-order
company
is
‘Postalmarket’.
Although the German mail-order
company Otto gained market
importance, the mail-order market
share has slightly decreased to 2%
and does not show any significant
signs of change.
Trend: Slightly Decreasing
(1995 = 3%)
While multiples and department
stores often buy directly from
manufacturers, the super- and
hypermarkets sometimes also
make use of agents and importers/wholesalers based in Italy.
These super- and hypermarkets
concentrate on cheap products
and are direct buyers/importers of
clothing for which they have installed purchasing departments and
specialised buyers for clothing
who also travel abroad to inspect
the production partner on the
spot.
Super- and hypermarkets in Italy
only offer a limited range of clothing products; often the consumer finds knitwear like T-shirts and
pullovers, casual trousers including jeans, underwear items, anoraks and all kinds of shirts. The
major supermarkets, mainly loca-
ted in the North of Italy, are
CoopGS,
Ipercoop,
Gruppo
Standa,
Conad,
Euromodis,
Despar Italia and Esselunga. The
share of clothing sold through
super and hypermarkets is continuous and strongly increasing,
reaching a level of 12% in 2004.
Trend: Strongly increasing
(1995 = 6%)
3.4.3.1.6 Sport shops
Sport shops in Italy only offer a
limited range of clothing products
which all have a sporting attitude
and fit to numerous sporting disciplines.
Trend: No previous data
3.4.3.1.7 Others
Open (street) markets and consumer fairs are often supplied by
specialised wholesalers that
import directly from emerging and
developing countries. Markets
and fairs traditionally play an
important role in Italy. However,
the wholesalers involved in this fair
and open market business also
buy good quality fashion products
that are sold at these fairs as well.
Since the traders exhibiting on
those open markets have to react
quickly to market trends, they also
buy selected clothing items from
domestic manufacturers.
Trend: Increasing (1995 = 7%)
112
3.4.3.2.3 Importers and wholesalers
Italian importers operate nationwide and mainly ask for the ‘exclusive distribution rights’ for the whole
of Italy. Importers/wholesalers in
the classical sense tend to be few
in Italy, because of the high competition within the distribution
system and the strong position of
the clothing brands with their own
efficient outlets. The importers
can often only position themselves by a ‘low price strategy’, e.g.
by sourcing basic fashion items in
emerging and developing countries. The role of Italian importers is
getting less important, because
dealing in and importing of clothing (being a fashion item with its
up and downs in sales) is increasingly seen as a risk. National
manufacturers try to avoid collaboration with Italian importers
because they have the image of
being too expensive.
Clothing manufacturers in Italy
often run their own shops to be
independent
from
retailers.
Manufacturers only buy a small
share of their collection from
foreign manufacturers, mainly in
order to complete the existing
product range. Large scale clothing manufacturers in Italy are e.g.
Benetton, Sixty, Replay, Diesel,
Gas, Stefanel, Max Mara, Prenatal,
Marzotto or Chicco. The small
clothing companies are concentrated in so-called ‘conzorzii’ in
Biella/Piémont region (woollen
products, coats, jackets, suits),
Como-Lecco/Lombardie
(silk,
woollen products, coats, jackets,
suits), Emilia Romagna (all kind of
textiles), Tuscany (woollen products, coats, jackets, suits).
As the retailers are scattered all
over Italy and difficult to reach
from overseas markets, collaboration with an agent is common in
Italy and generally recommended
for better market penetration.
Most of the agents are concentrated in the North of Italy and
operate with sub-agents in central
and southern Italy. The commission for an agent covering the
whole of Italy is about 8%-15%.
Independent
regional
sales
agents take between 3% and 7%.
Similar advantages and disadvantages may occur when dealing
with Italian wholesalers. Wholesalers in Italy normally act only within their region to be more flexible
for local markets and fairs. The
Italian wholesalers mainly buy
from local producers. Italian wholesalers also tend be very spontaneous in their choice with a strong
tendency not to bind themselves
in long-term business partnerships.
113
3.5 ITALIAN FASHION TRADE
FAIRS
The Italian market for fashion fairs
is quite clearly structured according to their main product segments. The main cities for fashion
fairs with European recognition
are Milan and Florence. Italian
Fashion Fairs like the ‘International
Menswear Fair ‘Pitti Uomo’ still has
an international excellent reputation and in fact buyers from all over
the world tend to visit these international fashion events. For
instance, the January 2006 show
will host 651 exhibitors, of which
261 come from abroad. The organiser expects approximately
28,000 visitors.
The exhibitors at Moda Prima in
Milan are manufacturers of readyto-wear clothing from Italy and
from countries like France, Spain,
UK and Germany, Eastern Europe
and Asia. The trade show aims to
address major Italian retailers like
departments stores, chains and
mail-order companies, but also
wholesalers, importers and tra-
ding companies. The fair also
gives space to manufacturers of
non-exclusive clothing. Only one
out of four sections is reserved for
Italian manufacturers. Moda Prima
seems to be the most suitable clothing fair for manufacturers from
developing and emerging markets
wishing to increase their sales to
Italy.
The most important fashion fair for
womenswear is the Milano Moda
Donna in February and September
each year. The main fashion fair for
menswear is the Pitti Uomo which
is quite small but of absolutely international importance with many
buyers from overseas. The childrenswear fair Pitti Bimbo is held
twice per year (January and July)
and is the European trendsetter for
childrenswear with an international
concept, both on the buyers’ as
well as the exhibitors’ side.
The description of the specialised
clothing fairs below only includes
events with an international
approach.
114
Table 3-10: Italian fashion trade fairs
Trade fair
Dates in
2005/2006
Product range
Milano Fashion Week
29.9. -2.10.2005
Avantgarde
modaprima / esma
27.–29.11.2005
both
EXIT - exportitalia
2.–3.12.2005
both
PITTI IMMAGINE UOMO
11.–14.1.2006
menswear
SuperSport
11.–14.1.2006
sportswear
Milano Moda Uomo
5.–20.1.2006
menswear
PITTI IMMAGINE BIMBO
20.–22.1.2006
children’s wear
venezie moda & sport fashion Show
29.–30.1.2006
both
Jeans & Casual Collection
February 2006
both
Milano Moda Donna
18.–26.2.2006
womenswear
Ready to Show
March 2006
Ready-to-wear
for major retailers
MilanoVendeModa
3.–6.3.2006
womenswear
SPORT MODE COLLECTION
6.–17.3.2006
sportswear
EXIT - exportitalia
26.–27.5.2006
womenswear
modaprima / esma
28.–30.5.2006
both
PITTI IMMAGINE UOMO
21.–24.6.2006
menswear
Milano Moda Uomo
25.–30.6.2006
menswear
PITTI IMMAGINE BIMBO
30.6.–2.7.2006
children’s wear
Milano Moda Donna
23.9.–1.10.2006
womenswear
Source: m+a Expo Database, 2005/2006
115
3.6 LIST OF MAJOR BUYERS OF LADIES, MEN’S AND
CHILDRENSWEAR IN ITALY
Arimo SpA
Via Manzoni 31
I - 20020 Robecchetto con
induco (MI)
Tel.: +39 (0) – 331 074711
Fax: +39 (0) – 331 074778
info@arimo.it
www.arimo.it
Product range: underwear,
swim- and beachwear
Price segment: mid level
ARTENI Confezioni SpA
Via Nazionale, 135
I - 33010 Tavagnasco (UD)
Tel.: +39 (0) – 432 661288
Fax: +39 (0) – 432 660624
www.arteni.it
Product range: ladies’, men’s,
childrenswear, sportswear
Bernardi SpA
Via dell’ industria 1
I - 33050 Ronchis (Ud)
Tel.: +39 (0) – 431 568111
Fax: +39 (0) – 431 567066
info@bernardi.it
www.bernardi.it
Price segment: lower level
Jeune Srl
123/125, V. del Casale Santarelli
I - 00040 Roma (RM)
Tel.: +39 (0) – 6 7984 5219
Fax: +39 (0) – 6 7984 5931
jeune@jeune.it
www.jeune.it
Product range: womenswear, young
fashion
Price segment: mid to higher level
La Cicogna srl
Piazzale Biancamano 1
I - 20154 Milano
Tel.: +39 (0) – 233 605725
Fax: +39 (0) – 233 605725
116
Modifin SpA
Via Manzoni, 38
I - 20121 Milano
Tel.: +39 (0) – 2 7609 3558
Fax: +39 (0) – 2 7609 3550
Product range: Men’s and womenswear
Price segment: high level
Note: Manufacturer and retailer
MANGO (head office in Spain)
Mercaders 9-11
P.I. Riera de Caldes
Apartado de Correos 280
ES-08184 Palau-solità i Plegamans
(Barcelona) Spain
Tel.: +34 93 860 24 24
Fax: +34 93 860 22 07
www.mango.es
Nico Garda SpA
Via S. Zeno, 67
I - 36022 Cassola (VI)
Tel.: +39 (0) – 424 570630
Fax: +39 (0) – 424 570703
www.nico.it
www.grupponico.com
Price segment: low
Number of outlets: 11 Italy, 12 EU,
3 US
Note: app. 100 employees
Zara
Galería Passarella nº1
I - 20122 Milano
Tel.: +39 (0) – 390 276 455 51
Fax: +39 (0) – 390 276 455 500
www.zara.com
Product range: Ladies, men’s,
childrenswear
Number of outlets: 2 (in Italy)
M.J.F. Mohave Jeans
Factory
Zona ind. Corropoli
I - 64013 Corropoli (TE)
Tel.: +39 (0) – 8 6183 90425
Fax: +39 (0) – 8 6183 9197
info@mohave.it
www.mohave.it
Product range: Denim
117
Fornari Spa
Zona Ind.le ’A’
I - 62012 Civitanova Marche (MC)
Tel.: +39 (0) – 7 3389 5511
Fax: +39 (0) – 7 3389 5518
fornari@fornari.com
www.fornari.com
Product range: young fashion
Number of outlets: 31 own, 39 dep.
stores, 3500 multi-brands
Note: Brand ‘Fornarina’
JDS (James Dillon Sport
Wear) SpA
20/22, Via Vittine di Bologna
I - 10024 Moucalivi (TO)
Tel.: +39 (0) – 11 6402115
Fax: +39 (0) – 2 892 210214
www.jdsinternational.com
Product range: Sports-, casual-,
denimwear for ladies and men
Mazzorato Moda
Via della Croce, 18 - Castelnumio
I - 31023 Resana
Tel.: +39 (0) – 423 484191
Fax: +39 (0) – 423 484184
www.mazzorato.com
Sport’85 srl
V. Piave, km 68.600
I - 04100 Latina (LT)
Tel.: +39 (0) – 773 486456
Fax: +39 (0) – 773 660624
www.sport85.it
Product range: ladies’, men’s wear
Product range: jeans and casualwear
Teddy SpA
Via Coriano, 58 – Grosrimini BL.97
I - 47900 Rimini (RN)
Tel.: +39 (0) – 541 301411
Fax: +39 (0) – 541 383430
info@teddy.it
www.teddy.it
Price segment: mid to upper level
Number of outlets: 370 worldwide
118
Diesel Italia
Via dell’ Industria 7
I - 36063 Marostica (Vi)
Tel.: + 39 (0) – 424 4855
Fax: + 39 (0) – 424 471 131
www.diesel.com
Fashion Box
Industries SpA
Via Marcoai, 1
I - 31010 Asolo (TV)
Tel.: +39 (0) – 423 9251
Fax: +39 (0) – 423 925299
www.replay.it
Sixty SpA
Via Erasmo Piaggio, 35
I - 66013 Chieti (CH)
Tel.: +39 (0) – 871 5891
Fax: +39 (0) – 871 562496
misssixty@misssixty.com
www.misssixty.com
Product range: casualwear for ladies
Price segment: lower to mid level
COIN Spa
Via Terraglio, 17
I - 30174 Venezia (VE)
Tel.: +39 (0) – 41 2398000
Fax: +39 (0) – 41 982722
www.coin.it
www.gruppocoin.it
Product range: men’s, ladies’ and
childrenswear
Note: largest department store in
Italy
Department Stores
l Vecchio Continente Srl
Corso Alfieri 293
I - 14100 Asti (AT)
Tel.: +39 (0) – 141 31336
Fax: +39 (0) – 141 35 889
childrenswear
119
Rinascente UPIM Spa
15, C. Ventidue Marzo
I - 20129 Milano (MI)
Tel.: +39 (0) – 2 5990 2457
Fax: +39 (0) – 2 5990 23 29
www.upim.it
childrenswear
Price segment: lower to mid level
Number of outlets: 147 stores + 230
franchise partners
Note: belongs to La Rinascente
G.D.A. SpA
Via Lenticchia, 24
I - 22100 Como (CO)
Tel.: +39 (0) – 31 5001111
Fax: +39 (0) – 31 5001191
shirty@gda.it
www.gda.it
Grocery Super- and Hypermarkets
C.I.S. COOP Italia
Non-Alimentari r.l.
24, p. Mercant
I - 50019 Sesto Fiorentino
Tel.: +39 (0) – 55 444840
Fax: +39 (0) – 55 4481243
www.e-coop.it
CONAD Consorzio Nationale
Dettaglianti scarl
Via Michelino, 59
I - 40127 Bologna
Tel.: +39 (0) – 51 508111
Fax: +39 (0) – 51 508414
www.conad.it
EUROMADIS
Via Christoforo Colombo, 51
I - 20090 Trezzano sul Naviglion
Tel.: +39 (0) – 2 48402900
Fax: +39 (0) – 2 48402038
Gruppo DESPAR ITALIA
Via Caldera, 21
I - 20137 Milano
Tel.: +39 (0) – 2 409091
Fax: +39 (0) – 2 40918177
Metro SpA
Via XXV Aprile, 23
I - 20097 San Donato Milanese
Tel.: +39 (0) – 2 517 11
Fax: +39 (0) – 2 517 16262
Lombardini Holding SpA
Via Provinciale, 80
I - 24044 Dalmine BG
Tel.: +39 (0) – 35 432 0111
Fax: +39 (0) – 35 4320580
120
Manufacturers/Importers and
Wholesalers/Importers
G. Armani Spa
Via Borgonuovo 11
I - 20121 Milano
Tel.: +39 (0) – 2 723181
Fax: +39 (0) – 2 8054102
www.giorgioarmani.com
Product range: children’s, babies’
Belvest spa
V. Corsica, 55
I - 35016 Piazzola sul Brenta (PD)
Tel.: +39 (0) – 49 969 9111
Fax: +39 (0) – 49 559 8759
www.belvest.com
Product: ladies’, menswear
Manufacturer + wholesaler
Benetton Group SpA
Villa Minelli 1
I - 31050 Ponzano Veneto
Tel.: +39 (0) – 422 519111
Fax: +39 (0) – 422 969501
www.benetton.com
Note: 7.000 stores in 120 countries
Cadena Italia srl
V. Leopardi, 31
I - 22075 Lurate Caccivio (CO)
Tel.: +39 (0) – 31 391030
Fax: +39 (0) – 31 391040
Casucci spa
Vl. Abruzzi
I - 64016 Sant’Egidio alle Vibrata
Tel.: +39 (0) – 8 618 481
Fax: +39 (0) – 8 618 41860
www.casucci.it
Product: jeans and sportswear
121
Distribution selling center
SAS
Viale Brianza 6
Viale Brianza 6
I - 20127 Milano
Tel.: +39 (0) – 2 2893651
Product: Ladies’ and menswear
Class Fashion – Intens
Fashion Group srl
V. Tiburtina, 643
I - 00159 Roma (RM)
Tel.: +39 (0) – 6 438 5972
Fax: +39 (0) – 6 438 6671
www.class-fashion.com
Product: Womenswear
FORALL Confezioni spa
V. F. Filzi, 34
I - 36050 Quinto Vicentino (VI)
Tel.: +39 (0) – 444 356096
Fax: +39 (0) – 444 357064
www.sartoriale.it
www.palzileri.it
Product: menswear
Immagine Di Quattrocchi
SAS Abbigliamente
V. Umberto I, 209
I - 98051 Barcellona Pozzo di
Gotto (ME)
Tel.: +39 (0) – 90 979 5867
Fax: +39 (0) – 90 979 5867
Product: children’s, womenswear
Manufacturer + wholesaler + retailer
KOKO srl
V. Lombardia, 8
I - 25025 Manerbio (BS)
Tel.: +39 (0) – 30 993 8422
Fax: +39 (0) – 30 993 8452
www.koko.it
Product: womenswear
Manufacturer + wholesaler + retail
shops
122
Max Mara
Fashion Group Srl
Via Fratelli Cervi, 66
I - 42100 Reggio Emilia
Tel.: +39 (0) 522 7991
Fax: +39 (0) 522 382630
Products: womenswear – upper segment
Sama Diffusione srl
St. Padana Superiore, 18
I - 20063 Cernusco Sul Naviglio
(MI)
Tel.: +39 (0) – 2 9210 3508
Fax: +39 (0) – 2 9210 2559
Products: ladies’, menswear, casualwear, sportswear
Miniconf
Via Provinciale 1/a
I - 52010 Ortignano
Tel.: +39 (0) – 575 5331
Fax: +39 (0) – 575 533300
www.miniconf.it
Marzotto SpA
Largo S.Margherita, 1
36078 Valdagno VI
Tel.: +39 (0) – 445 429411
Fax: +39 (0) – 445 402000
Pado Tonali SpA
Via Cesare Battisti 3
I - 21045 Gazzada Schianno (VA)
Tel.: +39 (0) – 332 464233
Fax: +39 (0) – 332 464158
www.paolotonali.it
123
Buying Associations
Cooperativa Legler srl
V. Carducci, 5
I - 24030 Presezzo (BG)
Tel.: +39 (0) – 35 4158 111
Fax: +39 (0) – 35 4158 126
Buying of all kinds of clothing
Buying centres, supermarkets, retail
shops
Euroconfezioni Soc.coop.r.l.
39, v. Bellini
I - 89055 Reggio Calabria (RC)
Tel.: +39 (0) – 965 371878
Fax: +39 (0) – 965 371878
euroconf@libero.it
Buying cooperation, manufacturer,
retailer
All kinds of outerwear, sportswear,
workwear
124
Outerwear
S PA I N
4
SPAIN
SITUATION
Spain has a mixed capitalist economy with a per capita GDP of
about 80% of the four leading
Western European economies.
The former conservative government under Jose Maria Aznar pursued a policy of liberalization, privatization, and deregulation of the
economy, introducing several tax
reforms to achieve this goal.
Unemployment has been steadily
falling, but still remains high at
10.4%.
Given the background of a faltering European economy, the
country’s growth of 2.5% in 2003
and 2.6% in 2004 was considered
satisfactory. The new socialist president, José Luis Rodríguez
Zapatero, elected in March 2004,
has initiated economic and social
reforms that are generally popular
among the people except for religious and other conservative elements. Spain will have to focus on
adjusting to the monetary and
other economic policies of an
integrated Europe, especially after
the enlargement of the EU in 2004
which will leave Spain with less EU
subsidies. Reducing unemployment and absorbing widespread
social changes will pose other
challenges to Spain over the next
few years.
In 2004, Spain’s GDP increased to
€ 795.4 billion, but GDP real
growth rate has fallen to 2.6%.
The inflation rate was 3.2% and
the labour force stands at 19.33
million people. The main industries
in Spain consist of textiles and
apparel (including footwear), food
and beverages, metals and metal
manufactures, chemicals, shipbuilding, automobiles, machine
tools and tourism.
Between 2000 and 2004 there
was a shift of the labour force.
68% of the labour force is employed in the services industry, a rise
of 4%, while only 3% work in agriculture. The labour force in industry remains stable at 28.5%.
The socialist government will face
considerable challenges during
the period under study. Demands
for greater devolution, and possibly secession, by some regions
(especially the Basque and
Catalonia regions; 80% of Spain’s
textiles are produced in Catalonia)
are causing instability and are likely to undermine the cohesion of
the socialist party. The budget is
expected to be in deficit during
the period. With the Euro area
economy faltering, Spanish economic growth is expected to slow
to 2.6% by 2006. The rate of
unemployment will fall, but only
slightly, reaching just under 10% in
2006. The economy will suffer, as
is the case for other countries,
under high oil prices, which already rose considerably in 2004 and
even more so in 2005 during the
Hurricane Season which destroyed US oil platforms along the Gulf
Coast.
125
4.2 THE MARKET FOR
OUTERWEAR
4.2.1 Market size
Unlike in other Western and
Northern European countries,
the textile and clothing industry is
the most important industrial
sector in the Spanish economy.
Spain is a major world producer
of textiles and apparel and the
country’s economy relies heavily
on this sector. The Asian crisis
and the low growth of other
world markets caused a strong
entrance of foreign textile products into European markets
including Spain, creating fierce
competition, especially after the
World Trade Organisation’s longstanding system of textile quotas
for China expired at the beginning of 2005.
The EU’s approach to resolving
the issue in June was to sign an
agreement with China imposing
new quotas on ten categories of
textile goods, limiting growth in
those categories to between 8%
and 12.5% a year. The agreement, which runs till 2007, is supposed to give domestic manufacturers time to adjust to a world
of unfettered competition.
In 2004, Spain’s economy continued to grow as did the textile
economy, even if a certain stagnation of industrial production
was visible. Since the introduction of the Euro in 2002, Spaniards
have followed the European
trend of spending less – which is
especially the case in Spain as
many citizens keep having trouble converting Euros into pesetas (1€ = 166 ptas.).
Table 4-1: Spanish textile
production in comparison to other
EU countries, 2004
Country
EU turnover
Italy
36 %
France
12 %
Germany
11 %
Spain
8%
UK
7%
126
Table 4-1 underlines the strong position of Spanish clothing production
at EU level: Spain ranks in fourth
place among all EU member countries after Italy, France and Germany
but has a stronger textile production
base than e.g. UK (which has a
comparatively much stronger economy in general). All the other countries, such as Austria, Ireland,
Portugal and the Scandinavian
countries, each contribute less than
5% to EU textile production.
Switzerland, which has a strong
national textile production base
mainly in the upper market segment
is not considered in this evaluation.
turers from
countries.
foreign
overseas
The present situation of the clothing
market in Spain is obviously very
much related to the status of the
Spanish clothing industry. The situation in the apparel market can be
characterized as follows:
The total Spanish knitwear and
made-up clothing industry is highly
fragmented with 4,525 clothing
manufacturers and 820 knitwear
companies.
Table 4-2: Size of the Spanish textile and clothing market (2002 – 2004)
2002
in million €)
2003
in million €)
2004
in million €)
+/- from
previous year
Imports
8.620
9.336
9.980
+ 6.9%
Local Production
13.912
13.258
12.790
-3.5%
6.143
6.445
6.610
+ 2.5%
28.675
29.039
29.380
+ 1.02%
Exports
Total Market
Source: Consejo Intertextil Espanol, 2005
The Consejo Intertextil Espanol
reports that the total production in
2004 for men’s, women’s and children’s outerwear amounted to
approx. 12.8 billion €. Nevertheless,
it showed a 3.5% decrease to
2003. Compared to Italy, for example, Spanish production is fairly low.
At the same time imports have
increased in the last two years
15,8%. It can be expected that this
trend will continue at least for the
next 3 years offering better sales
possibilities for apparel manufac-
The production is to a great extent
outsourced to small and mediumsized workshops. Many large companies are looking for lower labour
costs in other countries such as
Portugal, Morocco and Tunisia. 2/3
of total Spanish clothing exports go
to other European markets. The
main clothing suppliers’ are China
and Portugal, and the main customers are Portugal and France.
127
Innovation, just-in-time supplement, continual renewal of stock
with the most recent fashion
trends and satisfying customer
demands are immediate success
formulas of the largest Spanish
companies.
Clothing sales through Internet
are less successful than in
other European countries like
Switzerland, Germany, Netherlands or UK. Only 1% of the
Spanish population uses the
Internet for shopping purposes.
The general aversion to computers, problems with logistics, lack
of amusement during the purchase are reasons for the low rate of
e-commerce-based clothing purchases.
As in all countries analysed for this
survey, children and teenagers
have a low share in the total population. Only approx. 7.8 million
Spanish citizens are younger than
20 years old. The prospects for
the childrenswear sector are not
positive: in the year 2005, only 1.8
million children were between 5
and 9 years old and represented
the smallest age group of all
(except those over 75 years old).
The export manager from abroad
wishing to enter or to sell more in
the Spanish clothing market
should follow and/or anticipate
these developments and be prepared to further develop his collection according to the demands
of the targeted age groups.
According to Figure 4-1, out of
40.3 million Spaniards, the major
population segment is between
25 and 39 years of age (approx.
10 million – male and female). This
age group is followed by those
between the age of 40 and 44
years (approx. 3.1 million people).
Spain’s major target group is more
than 5 years younger compared
to other Northern European countries. Therefore, the young fashion
and sportswear segment, being
the preferred dress style by these
age groups, offers good sales
opportunities for clothing manufacturers from abroad covering
this segment.
128
Figure 4-1: Age structure of the Spanish population by sex, 2005
Spain: 2005
100+
95-99
90-94
85-89
80-84
75-79
70-74
65-69
60-64
55-59
50-54
45-49
40-44
35-39
30-34
25-29
20-24
15-19
10-14
5-9
0-4
male
2,0
1,5
1,0
0,5
female
0,0 0,0
0,5
1,0
1,5
2,0
Source: US Bureau of Census, International Database
The Spanish clothing market can
be divided into four major product
groups: womenswear, menswear,
childrenswear and active sportswear. At present, there are no
exact sales figures for the respective market segments available.
According to industrial sources,
women’s and girls’ wear represent 2/3 of the total value of the
fashion market in Spain.
The womenswear segment holds
the dominant market position, followed by menswear, leisurewear
and childrenswear. Menswear has
been the fastest growing market
segment. Also, the leisure clothing
and sportswear segment show a
positive development. The childrenswear segment has lost market share, mainly because of low
birth rates in Spain and decreasing
prices, resulting in lower sales
figures.
129
Figure 4-2 indicates the shares of
the respective segments in the
total Spanish outerwear market.
Nevertheless, it can be stated that
menswear has slightly lost market
compared to 2002 (-2%) and
womenswear has gained massive
shares in 2004 (+14%). Childrenswear represents only 15% in
the total Spanish clothing market
with an increasing tendency.
Figure 4-2: Value sales of outerwear by sector in shares, 2004
Childrenswear
15%
Womenswear
52%
Menswear
33%
Source: Spanish National Statistics Office and CBI, 2004
Women and label-conscious
urban young people tend to be
the major target group in the
Spanish
apparel
sector.
Consumers in Spain attach a
great deal of importance to
fashion and are beginning to care
more and more about what they
wear, giving special awareness to
brand names. Interviews and
trend research in Spain have proved that professional women
have a general preference for
wearing natural materials, dark
colours, comfortable styles and
classic designs. In contrast, in the
North of Spain, light colours are
trendier. Six out of ten Spanish
women regard quality as the main
aspect in their buying decision
while 30% feel that design is the
most
important
criterion.
Surprisingly, price is the most
important decision factor for only
10% of women, in contrast to attitudes in Northern EU countries
and Switzerland.
130
Table 4-7 indicates the most common shopping places for Spanish
apparel consumers among all kinds
of distribution channels for clothing.
There are some remarkable differences between the Spanish and
the ‘average’ European consumer.
The ‘No. 1 shop’ type are independent retailers with a preference of
37%, which is also the most preferred retail type all over Europe. They
are followed by clothing multiples
(24%) and department stores
(14%). Purchases through home
shopping channels (1%), factory
outlet channels, large suburban
stores, although growing, are still
relatively rare in Spain.
Spanish clothing consumers
can be briefly characterized
by the following statements:
- The Spanish consumers do
not have a tendency to
prefer the same shop;
instead, they look for diversity in their shopping locations.
- Although this habit has
decreased, approximately
20% of Spaniards still go
shopping with their families
/relatives (in comparison:
European average is only
9% in this respect).
- Spaniards buy clothing 7-8
times a year (on average),
which is below the European
average of 9-10 times a
year. The exception are
young consumers from 16
to 34; their average is more
than 10 purchases per year.
- Spaniards pay increasing
attention to brand names –
especially young consumers
and service quality.
- The country of origin of the
product purchased is for
Spanish consumers mostly
irrelevant.
- Spanish consumers are
less ecologically conscious
e.g. compared to the
Swiss, Germans or the
Scandinavians, and requests
for ‘ecological standards’ in
terms of clothing presently
can only be observed in
large cities like Madrid and
Barcelona.
The differences in consumer preferences compared to Western
European
countries
like
Switzerland and Germany is the
cut of ladies outerwear. Due to the
average smaller size of Spanish
ladies, the pattern is slimmer in
Spain (e.g. a Swiss/German size
38 is size 40 to 42 in Spain). Also
trousers with ‘extra length’ (like 36
and 38 are rarely in demand).
131
Consumer spending on clothing in
Spain is below average levels in
other
European
countries.
Average spending on clothing in
2004 amounts to € 527 per
capita, which is clearly below
Italy’s rate of € 749 or € 880 in the
UK in the same year. It also
decreased in comparison to
Spanish total consumption.
According to the results of a market survey carried out by the
Spanish designer firm ‘Miguel Gil’,
based on a poll among 1000
women living in Spain’s major
cities, women are mostly responsible for the steady increase in
family clothing expenditure. Most
women are indifferent to clothing
origin. However, if they have the
chance to choose the origin of the
clothing item, more than a third of
women prefer Spanish brands
and fashion.
It is obvious that expenditure on
clothing depends to some extent
on the geographical zones (where
the consumers live). Firstly, the
reason for these differences is the
social life, the income and the prestige, which play an important role
in the North of the country.
Secondly, the climate influences
expenditure on clothing, e.g. in
the colder North, the relatively
more expensive outerwear items
like coats, jackets etc. increase
the per capita consumption in
value terms. The ‘economic centres’ are the regions with the highest readiness to spend money
for clothing like Cantabria,
Navarra, Rioja and Ceuta/Melilla.
Statistics regarding general income show that the average expenditure by household in Spain was
€ 22688 in 2004 (=100%). Out of
this amount the average expenditure for clothing and footwear was
€ 1451, which represents a share
of 6.4%.
According to industry sources,
women’s and girls’ wear amount
to approximately two thirds of
Spanish consumer expenditure
on outerwear. More details about
the structure of Spanish outerwear consumption can be taken
from Figure 4-3.
132
Figure 4-3: Consumer expenditure on outerwear in Spain, 2002 – 2004
(consumer prices)
20.000,0
18.000,0
16.000,0
14.000,0
6.812,0
6.503,0
10.084,0
10.616,0
10.919,0
2002
2003
2004
6.558,0
12.000,0
10.000,0
8.000,0
6.000,0
4.000,0
2.000,0
0,0
Women's and girl's wear
Men's and boy's wear
Source: CMT Espana and Euromonitor, 2004
As the Spanish clothing market is
still dominated by the strong
national clothing production, price
developments also depend on
the national industry to a large
extent. Due to the weakness of
the € until the beginning of 2000,
and the increased costs for energy and raw materials in the same
period, most of the Spanish
manufacturers and consequently
the retailers have been forced to
increase their prices for outerwear
products.
However, the national consumer
price index compared to the clothing price index (1.8%), was significantly high at 3.2% in 2004.
General inflation rates in Spain of
over 3% (EU average 2.5%) have
also been stated for 2005.
The strong increase of clothing
imports, mainly from developing
countries into Spain has led to
more competition and has limited
the inflation for clothing items. As
the production costs for clothing
in Spain have been lower (e.g. for
labour, logistics, marketing) compared to Western European
countries, the price level for apparel has been approximately 10%
lower. With the introduction of the
€, the prices have adapted more
to the Western European level.
According to the Textile and
Outerwear Information Centre
(CITYC) in Barcelona, the mark-up
for a Spanish retailer ‘theoretically’
is at 100%; in practical terms, due
to sales and reductions, figures
run at only 70%. This tendency to
stronger price reductions, lower
margins and a European wide
price adaptation can be stated for
all countries of the euro zone
covered by this market survey.
133
4.3 IMPORTS
4.3.1 Total imports
The imports of clothing to Spain
increased by 8% in 2004. Knitwear
and woven clothing were the leading product groups among the
imported apparel. Imports of fabrics
have increased too.
Figure 4-4: Clothing
and textiles imports, 2000 - 2004
11
10
10
in billion €
9
9,3
8
8,4
8,6
7,5
7
6
5
4
2000
2001
2002
2003
2004
Source: German Chamber of Commerce in Spain
Figure 4-4 shows the general very
strong increase of textile and clothing imports into Spain, especially
from 2002 to 2004, with increases of over 8% annually. These
figures show the tremendous
pressure on the Spanish clothing
markets (and manufacturers).
Figure 4-5:
Shares of clothing imports by
product categories, 2004
100%
90%
80%
33,2
70%
60%
50%
Women's wear
27,5
Both sexes
40%
sportswear
30%
20%
Men's wear
34,6
10%
0%
4,7
Source: German Chamber of Commerce in Spain, 2005
134
Figure 4-5 gives a first general
survey on the structure of the
imported clothing in value terms
covering the five major product
groups women’s, men’s, children’s and sportswear as well as
other clothing. Clothes for both
sexes are dominant with 34.6%
but followed immediately by
womenswear with a 33.2% import
share and menswear with a
27.5% import share. The 4.7%
import share of sportswear only
represents the imports of knitted
outerwear. Data for woven outerwear was not available.
Knitted outerwear for women or
girls has the highest growth rates
with +47.7% from 2002 to 2004
(value) followed by active sportswear for both sexes with an
increase of +37.8% in the same
period. It is obvious that these
product segments with the highest import growth rates offer the
best sales opportunities for manufacturers from abroad. The total
import of knitted products into
Spain increased in terms of value
from 2002 to 2004 by 76.4%,
which is extremely high compared
to other European countries analysed for this survey.
Table 4-3 and Table 4-4 give a
more detailed survey on the
imports from 2002 to 2004 divided into imports of knitted outerwear and imports of woven outerwear covering those outerwear
items analyzed for this marketing
handbook.
Looking at the 2004 total figures
in Table 4-3, the import share of
men’s clothing at 9.1% (= 217 million €) of total imports is slightly
lower than that for women (12.5%
= 299 Million €). The largest share
by far in total imports of outerwear to Spain is represented by
outerwear products for both
sexes (T-shirts, cardigans, pullovers etc.) with 1 631 million €
(68.2%). Knitted sportswear items
add up to 244 million €, a 10.2%
market share.
135
Table 4-3: Imports of knitted outerwear by sex and product categories (2002 – 2004)
2002
2003
2004
tons
1 000 €
tons
1 000 €
tons
1 000 €
Coats, raincoats, anoraks
etc. (61.01)
*
9 788
667
18 128
1116
25 835
Suits, jackets, outfits, trousers, shorts etc. (61.03)
*
57 827
6 641
68 705
11 984
77 047
Shirts (61.05)
*
90 316
3 701
97 009
4 568
114 284
Total
*
157 931
11 009
183 843
17 668
217 167
Total extra EU
*
70 617
10 094
86 552
17 581
107 547
Coats, raincoats,
*
17 476
1 164
36 671
1 051
29 483
dresses, skirts, trousers
(61.04)
*
125 878
11 029
154 763
27 678
176 808
Blouses and shirt
blouses (61.06)
*
59 306
1 728
64 120
2 239
93 050
Total
*
202 660
13 921
255 554
30 968
299 341
Total extra EU
*
76 439
13 772
108 429
30 716
139 545
T-shirts, singlets etc. (61.09)
*
543 588
24 542
630 853
31 506
762 961
Jerseys, pullovers, cardigans, waistcoats etc. (61.10)
*
637 540
24 853
674 704
31 334
736 983
4 450
101 215
6 245
113 740
8 849
124 526
315
6 609
355
6 154
304
6 624
Total
4 765
1 288 953
55 955
1 425 450
71 633
1 631 093
Total extra EU
2 982
586 746
53 366
671 578
66 431
821 376
30
101 903
5 510
110 720
11 612
142 406
2 246
74 974
4 024
94 436
4 538
101 364
Total
2 275
176 877
9 534
205 157
16 150
243 770
1 196
86 255
7 612
99 187
14 460
120 514
For men or boys
For women or girls
For both sexes
Active Sportswear
swimwear (61.12)
Total extra EU
*
* no data available
136
woven outerwear into Spain.
Generally speaking, imports to
Spain in almost all product categories have increased year by
year since 2002. Looking at the
total imports of woven outerwear
for women or girls, imports from
2002 to 2004 in value terms
increased more strongly than for
men. The imports of woven men’s
or boys’ outerwear increased by
14.5% from € 1032.2 million in
2002 to € 1182.4 million in 2004,
whereas
the
womenswear
imports for the same product
groups increased by 38.5% from
1005.4 million € in 2002 to 1392.6
million € in 2004.
The woven women’s and girl’s
outerwear imports increased continuously from 2002 to 2004 and
amounted to € 1182.4.3 million in
2004. This segment shows the
highest import increase of all segments analysed with 38.5% in the
three years since 2002.
Thus, best prospects for imported
apparel include business wear
(basic colours, good quality, medium-high price) for women as well
as high quality sportswear with a
casual style and excellent quality
materials (mainly natural fibres)
with sophisticated styles and patterns. Casual wear, mainly denim,
cotton-made products and knitted apparel, have also been in
strong demand and sales prospects for these items have been
rated as positive. Spanish youth is
strongly influenced by fashion
trends from casual wear in general (‘GAP style’) and it can be
stated that imports in general
have very good prospects in this
sector.
Table 4-4 Imports of woven outerwear by sex and product categories,
2002 – 2004
2002
2003
2004
tons
1 000 €
tons
1 000 €
tons
1 000 €
Coats, anoraks, windcheaters etc. (62.01)
10 629
189 623
11 581
201 443
15 254
197 659
(62.03)
28 155
594 985
31 472
645 564
40 054
709 662
Shirts (62.05)
10 959
247 638
12 366
270 916
13 142
275 071
Total
49 743
1032246
55 418
1 117 294
68 451
1 182 392
Total extra EU
33 027
530 366
38 441
580 628
49 176
647 353
For men or boys
137
2002
2003
2004
tons
1 000 €
tons
1 000 €
tons
1 000 €
8 166
171 356
10 446
209 263
13 983
233 417
25 322
636 408
33 759
802 096
47 805
980 156
6 295
197 588
6 565
202 055
7 226
179 007
Total
39 793
1 005 351
50 770
1 213 415
69 014
1 392 581
Total extra EU
28 747
555 095
37 277
696 703
50 968
827 324
3 109
53 050
3 163
61 880
3 155
61 932
Other incl.Impregnated(62.10)
9 123
62 625
5 076
77 620
3 572
70 145
12 232
115 676
8 240
139 500
6 727
132 077
3 094
45 121
3 873
55 128
3 902
48 065
For women or girls
Coats, capes, anoraks, windjackets etc. (62.02)
Suits, outfits, jackets, dresses, skirts,
trousers (62.04)
Blouses and shirt
blouses (62.06)
For both sexes
Total
Total extra EU
The textile and clothing industry in
Spain is a labour intensive industry
with relatively high labour costs.
Outsourcing is a common practice among Spanish clothing firms,
however mainly within Spain. INDITEX (Brand ZARA), for example,
designs, produces (50% is outsourced to subcontractors) and
distributes its own brands (vertical
concept). The company policy of
satisfying customer demand
almost immediately requires that
INDITEX production is almost entirely located in Europe, primarily in
Spain to provide the flexibility to
respond quickly and effectively to
market trends. MANGO, Spain’s
second largest textile company
after INDITEX, designs strictly
womenswear for young urban
women. However, Mango manufactures only to 25% of its production in Spain. The remainder of
Mango clothing is produced in
China (approximately 50%) and
Morocco (approximately 25%)
but almost 100% on finished product basis. According to EUROSTAT, the OPT import figures are
really incomplete and have not
been recorded in the relevant
time period.
138
4.3.2.1 Largest supplying countries of
OPT outerwear, 2002 - 2004
The actual ‘Outward Processing
Trade’ (OPT) business - usually
operated by apparel manufacturers - in Spain plays only a negligible role and represents only 1.3%
of total imports from extra EU
countries.
From the statistical point of view,
only incomplete figures are available (probably a problem of declaration of imported goods). The
No. 1 OPT supplier is Morocco
with 2 115 000 € imports in 2004
(in 2003 only 9 000 € !) followed
by China, Bulgaria and Hong
Kong. Basically, there are two reasons for the extremely small OPT
business: a. the strong clothing
production base in Spain with rather competitive prices and b. no
tradition in OPT business.
The ten major supplying countries
of clothing from non-European
countries are – according to their
importance – China, Morocco,
Bangladesh,
Turkey,
India,
Indonesia, Pakistan, Vietnam,
Thailand and Hong Kong. The two
main extra-EU suppliers of fashion
clothing, China and Morocco,
represent 56.9% of the entire
extra-EU import volume, which
constitutes an increase of 11%
compared to 2001, whereas the
two main EU suppliers Portugal
and Germany represent only
28.3% of the whole EU import
volume. In general, approximately
37.5% of the import volume is
supplied by EU member states
and the rest comes from developing countries.
The main ‘winners’ among the
supplying countries in terms of
import increase from 2002 to
2004 are Myanmar (+63.1%),
Indonesia (+61.6%), Bulgaria
(+60.4%),
Turkey
(+56.4%),
Pakistan
(+47.7%),
Vietnam
(+45.0%) and United Arab
Emirates (+39.5%).
Clothing suppliers from Hong
Kong
(35.7%),
Netherlands
(24.6%), South-Korea (10.9%) and
Thailand (10.1%) are the ‘losers’
among the top 20 (twenty) countries exporting into Spain in 2004
compared to 2003 (value terms).
Table 4-5.
139
Table 4-5: Largest supplying countries of outerwear, 2002 – 2004
Positon
Country
2002
in 1000 €
Change
from 2002
2003
in 1000 €
Change
from 2003
2004
in 1000 €
1
China
548.036
16,5%
638.494
20,1%
766.786
2
Morocco
424.426
27,5%
541.056
1,4%
548.558
3
Bangladesh
136.148
40,3%
191.035
37,9%
263.469
4
Turkey
132.844
57,8%
209.666
56,4%
327.857
5
Portugal
487.148
18,2%
575.570
-5,1%
546.318
6
India
116.964
13,3%
132.534
5,3%
139.572
7
Germany
204.484
15,9%
236.907
24,4%
294.606
8
France
390.217
6,7%
416.373
16,9%
486.588
9
Italy
543.371
6,2%
577.058
15,6%
666.934
10
Bulgaria
30.651
35,5%
41.546
60,4%
66.643
11
Indonesia
46.878
-3,4%
45.283
61,6%
73.175
12
Pakistan
21.782
28,6%
28.005
47,7%
41.354
13
Belgium
232.829
8,3%
252.077
-6,5%
235.738
14
Vietnam
66.868
-36,3%
42.581
45,0%
61.756
15
Thailand
60.626
-6,2%
56.876
-10,1%
51.111
16
Hong Kong
110.855
-13,6%
95.834
-35,7%
61.658
17
Netherlands
124.943
13,3%
141.517
-24,6%
106.721
18
South Korea
34.632
36,3%
47.209
-10,9%
42.043
19
Myanmar
21.627
-0,1%
21.608
63,1%
35.246
20
U.A.Emirates
21.975
-19,3%
17.741
39,5%
24.753
Intra-EU15
2.287.276
5,7%
2.416.603
6,3%
2.569.823
Extra-EU15
2.098.801
17,4%
2.464.984
17,9%
2.906.860
Total
4.386.077
11,3%
4.881.587
12,2%
5.476.683
140
4.4 TRADE STRUCTURE
The fierce competition on the
Spanish market, partly due to
more imports from abroad, has
led to structural reforms at the
retail level. The expansion of
department stores resulted in a
decrease in the number of independent specialized shops. Other
distribution channels, such as
mail-order houses and clothing
markets, suffered and lost market
share. In 2004, retail trade showed rising turnover, although with
falling sales volume. Apparently,
many retail shop owners and multiples have changed their marketing concept towards high-quality
units. Each year, small independent multi-brand stores are steadily losing market shares to other
more dynamic retail channels; this
trend has even accelerated in the
last few years.
In Spain there are five large
groups that control one third of
the total retail market for men’s,
women’s and childrenswear: El
Corte Inglés, Inditex, Carrefour,
Cortefiel and Mango control 35%
of the total sector turnover. The
ten largest companies account for
42% of all retail sales. In 1992
there were 55 190 clothing retailers in Spain. Over the past decade this number has grown by
nearly 30% to 70 612 outlets. Less
than half are independent multibrand shops.
Specialized franchise chains have
nearly doubled their market share
in the past decade at the expense
of independent retailers. These
often ‘single brand oriented’ retail
channels, along with hypermarkets, gained the greatest market
share at the expense of the multibrand independent shops that are
unable to respond as quickly to
changing market trends. As
stated above, close collaborations
are often used in view of Spain’s
existing industrial and trading
infrastructure along with franchising, considered an excellent
means for penetrating the
Spanish market.
Today, hypermarkets account for
nearly 13% of total clothing retail
sales by value, a dramatic change
from 15 years ago when most
such outlets sold only socks and
underwear. All the large hypermarket chains, Carrefour and
Alcampo in particular, carry a wide
range of clothing, especially childrenswear.
The further strategy of the clothing industry, partially running their
own retail outlets, includes the
increase of productivity in order to
lower labour costs, and a higher
dislocation of the production to
countries with low production
costs. These cost-saving strategies have been completed by a
very sophisticated supply-chain
management to provide the franchise shops with new fashion
items on a weekly or monthly
basis.
141
The Inditex Group has achieved a
worldwide leading standard with
almost perfect logistics and very
short
lead-times
for
new
ranges/designs of less than 6
weeks. It can be expected that
the Spanish clothing retailers will
offer greater segmentation in the
product lines offered and specialize more in market niches, mainly
within the low and upper price
ranges.
As mentioned before, the Spanish
clothing retail structure can be
characterized by a strong concentration on only a few companies. Further, a significant part of
the turnover is made by distribution chains such as C&A, or international franchise companies like
Benetton, Pimkie or Promod.
Department store sales (in Spain
El Corte Inglés) represent approximately 14% of the total clothing
market in value. The El Corte
Inglés group includes the franchise chains Sintesis, Cedosce,
Tintoretto and Amitié.
The most successful Spanish clothing retailer, INDITEX in La Coruna
(see Figure 4-6), became one of
the world’s most important and
successful clothing retailers with a
total turn-over of 4.65 billion €
(2005) representing an increase
of 20%. The speed of expansion is
extremely fast, 323 new shops
have been opened in the first
three quarters of 2005 alone. Its
owners had opened the first Zara
store with the idea of producing
fashion clothing at an affordable
price. Over the past five years,
Zara has increased the number of
stores from 180 (mainly in Spain)
to 816 in 46 different countries.
INDITEX in total runs 2 567 shops
in 59 countries. Revenues have
grown by an average of 27% a
year since 1998. As can be seen
from Figure 4-6, the Inditex group
today consists of eight major
chains: Zara (men’s, women’s and
childrenswear), Zara Home (home
textiles), Pull & Bear (menswear),
Massimo Dutti (men’s and
womenswear), Kiddy's Class
(childrenswear), Bershka, Oysho
and Stradivarius (both women’s
and girls’ wear).
INDITEX provides the flexibility and
quick response to market trends,
while other Spanish clothing firms
are based on designer or seasonal collections. Designers are in
constant touch with store managers to find out which items are
most in demand. The plant, in
turn, ships the goods to the stores
twice a week, thus eliminating the
need for warehouses and keeping inventories low.
142
Figure 4-6: INDITEX – Principal clothing chains by market share, 2004
% of total sales
Zara
9%
1% 1%
4% 2%
68 %
Bershka
Oysho
8%
7%
Pull & Bear
Stradivarius
Zara Home
Massimo Dutti
Kiddy's Class
Source: Inditex Annual Report, 2004
European firms such as Gucci are
successful in the womenswear
market. Dutch/German C&A targets a bigger share in the market.
Other successful European chains
in Spain are the Italian Benetton,
Max Mara chains and the French
Pimkie. The Swedish Hennes &
Mauritz chain has operated in the
Spanish market since 2000 and
plans an aggressive expansion,
opening numerous outlets in major
Spanish cities. The American GAP
competes successfully with Zara
and Mango, offering young
fashion at low prices.
The Barcelona-based Armand
BASI, originally a knitwear company, is also an important supplier of
men’s and womenswear, as well
as the Galician-based CARAMELO
chain. As regards jeans and casualwear, the Valencia-based SAEZ
MERINO, with its Spanish bull
trademark ‘Lois’ brand, competes
with ‘Levi Strauss España’ in men’s
and women’s leisure clothing. Two
leading Spanish specialists in
women’s jeans and trousers are
ANINOTO and JOCAVI, which are
popular among women of all ages.
Table 4-6 gives a survey on the
major clothing companies, most of
them having an own production as
well as own retail outlets among
which MANGO, ZARA and CORTEFIEL have the most advanced
marketing concept and are successfully operating all over Europe
and partially worldwide. In the table
below it becomes obvious to what
extent Inditex dominates the
Spanish clothing market as it
penetrates the market with a high
share of shopping outlet stores.
Another big player is the ‘El Grupo
CORTEFIL SA’ in Madrid with 1 170
shops which plans to extend the
number of shops to 2 000 by 2010
in Spain as well as abroad.
143
Table 4-6: Major specialised clothing chains in Spain, 2004/2005
Retailer
Parent Company
Sector
No. of
outlets
Zara ***
Inditex
General Clothing
241
C&A
C&A
General Clothing
35
H&M
Hennes&Mauritz
General Clothing
44
Pull & Bear***
Inditex
Men's and
women's wear
257
Massimo Dutti***
Inditex
Men's and
women's wear
202
Adolfo Dominguez***
Adolfo Dominguez
Men's and
women's wear
302
Bershka***
Inditex
Women's wear
194
Stradivarius***
Inditex
Women's wear
188
Mango ***
Mango Holding
Women's wear
226
Cortefiel ***
Cortefiel
Women's wear
118
Promod
Promod
Women's wear
51
Amitié***
Induyco
Women's wear
84
Sintesis***
Induyco
Women's wear
85
Tintoretto***
Induyco
Women's wear
51
Pimkie
Mulliez Group
Women's wear
53
Springfield***
Cortefiel
Men's wear
Kiddy's Class***
Inditex
Children's wear
114
Prenatal
Prenatal
Baby/maternity
wear
102
Intersport
Intersport
Sportswear
321
Sport 2000
Sport 2000
Sportswear
200
Decathlon
Auchan
Sportswear
44
249
Source: various industrial soucessources, companies' websites
*** Companies with own production in Spain or close collaboration
with production partners
144
The distribution of outerwear in
the Spanish clothing market is
based on extensive franchising
systems that are highly developed
compared to other European
markets. Most of the franchise
chains in Spain sell women’s and
children’s clothing. Some of the
most important franchises are
ADOLFO DOMINGUEZ (men’s
designer clothing - 302 outlets
worldwide), DON ALGODON (high
segment ladies’ wear – 98 outlets
- franchisee Cortefiel), MASSIMO
DUTTI (ladies’ and men’s outerwear – 202 outlets - franchisee
Inditex Group) or TINTORETTO
(high segment ladies’ outerwear –
51 outlets – franchisee Induyco
Group).
The ‘El Corte Inglés’ franchise
chains Amitié, Cedosce, Sintesis
and Tintoretto represent also a
high number of outlets. Specialist
chains, such as Escorpión
(women’s knitwear), Pronovias
(bridalwear) and the Italian
Prénatal (children’s and maternity
wear) also prove to be among the
better-known franchise chains in
Spain’s large cities.
4.4.3.1 Retailers
The last survey on the structure of
the Spanish clothing distribution
channels dated from 2005 indicates that 178 000 persons were
employed in 70 948 shops. The
size of the shops in Spain is comparatively small with 2.5 employees per unit (source: Distribución
Actualidad based on data from
DBK).
Table 4-7: Clothing retail channels by market share (data research of 2005)
in % of total value
2000
2002
2004
Specialists
61
61
61
41
39
37
Clothing multiples
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
100
100
100
Total
Source: Retail Monitor and Acotex, 2004
145
Figure 4-7: Clothing retail channels by market shares, 2004
Home shopping
companies, 1%
Street markets and
other, 6%
Sports shops, 5%
Independent
retailers, 37%
Hyper- and
Supermarkets,
13%
Department/varietystores, 14%
Clothing multiples,
24%
Source: Retail Monitor and ACOTEX
Table 4-7, based on an analysis of
the Retail Monitor and Acotex,
indicates the share of the clothing
distribution channels in 2004. The
market is still dominated by the
independent specialized retailers
(37%) but the share of clothing
multiples (24%) and department
stores (14%) has grown in recent
years and can be rated, together
with the hyper- and supermarkets
(13%), as the greatest potential
target customer group for manufacturers from developing countries.
146
4.4.3.1.1 Independent specialized
retailers
Key characteristics: These specialized clothing shops are still the
main retail outlets for garments in
Spain (Jeans-shops, Boutiques,
sportswear-shops), although the
market share of these shops has
been slightly decreasing. They still
play an important role mostly in
the North of Spain, although even
here the importance for this distribution channel is shrinking. Each
year small independent multibrand stores steadily lose market
share to other more dynamic retail
channels (like large department
store El Corte Ingles, C&A and
other better organised forms of
retail). This trend has accelerated
in the past few years, mainly
because of their limited capabilities to respond quickly enough to
changing market trends and the
limited choice of products in the
shops.
Market-share: 37% in 2004
Trend: Slightly decreasing
(2002 = 41%)
Key characteristics: Clothing multiples mainly or exclusively have
only one brand label in their
assortment for fashionable products with short rotation times
(like Mango). As a result of
aggressive expansion plans,
these specialist chains account
for a fairly percentage of total retail
clothing sales in Spain. Many of
these chains operate on either a
franchise basis or a mix of both
company-run stores and franchises. These often single brand
retail channels, along with hypermarkets,
have
gained
the
greatest market share at the
expense of the multi-brand independent shops. Like France and
the UK, Spain possesses favourable regulations for franchise companies.
Trend: slightly increasing
(2002 = 20%)
4.4.3.1.3 Department / variety stores
Key characteristics: Department
stores combine a wide range of
branded goods and private labels.
The prevalent Spanish department store is El Corte Inglés, the
store presents more than 30
brands of men’s, women’s and
childrenswear. Many of these
brands originate from the Induyco
Group (which is the owner of El
Corte Inglés). However, a large
portion of the assortment are
well-known Spanish or foreign
brands. According to our market
observations, entry to the Spanish
market through El Corte Inglés for
companies with substantial sales
volume has been indispensable
up to now. Despite strict terms of
admission (restrictive terms of
payment, certain levels of turnover etc.) set up by the leading
department store, many brand
manufacturers try to sell their garments to El Corte Inglés.
147
Due to strict brand orientation, the
department store offers easier
access for well known brands and
companies with a good image.
Companies from developing
countries have the best access
chances to El Corte Inglés by offering their assortment to the ‘private label buying managers’ who
source their products mainly from
overseas suppliers.
There is very little information available about mail-order houses in
Spain. The major unit is VENTA
CATALOGO in Barcelona which
has reasonable sales all over
Spain. Similar to other southern
European countries like Italy,
‘home shopping’ is not very popular, due to the partially unsatisfactory service by the national postal
service. Some smaller catalogue
houses, mainly operating in niche
markets, are of minor importance
and are restricted, making them
an unsuitable target group for
clothing manufacturers from
abroad. As a general rule, the
Spanish consumers receive a new
catalogue 1-2 times per year often additional ‘seasonal fashion
catalogues’ are send out. This distribution channel is losing market
share.
4.4.3.1.5 Textile discounters
The distribution of clothing in
the lower price segment in Spain
is mainly handled by the grocery
super- and hypermarkets. Specific textile discounters operate
more on a regional level and are
very difficult to identify at all. The
textile discounters mainly buy
from wholesalers and importers
based in Spain. Therefore clothing
manufacturers
from
abroad
should contact these importers to
also penetrate the ‘clothing discount’ business. Against this
backdrop, it is obvious that specific figures about the market shares and the development of textile discounters are not available. It
should also be mentioned that
discounters like H&M, Zara and
Mango have accelerated their
international expansion in the last
few years. Thus a reallocation in
the market share is likely.
148
Key characteristics: The main activities of grocery super- and
hypermarkets lie originally in the
selling of groceries. Both distribution channels are gaining importance in Spain. The price level of clothing sold by super- and hypermarkets ranges in the lower to
middle level. The important suppliers are large supermarkets like
ALCAMPO, ALIMENT, MERCADONA, GIGANTE and CARREFOUR.
The childrenswear sector plays a
particularly important role for this
distribution channel.
Trend: increasing (2002 = 12%)
4.4.3.1.7 Sport shops
Sport shops in Spain only offer a
limited range of clothing products
which all have a sporting attitude
and fit to numerous sporting disciplines.
Trend: no previous data
4.4.3.1.8 Street markets and other
According to desk-research and
interviews conducted in Spain,
open street markets and to a lesser extent consumer fairs and factory outlets are the major distribution channels for clothing summa-
rised under ‘Other forms of retail’.
The market share of this retail
channels is slightly decreasing.
Trend: slightly decreasing
(2002 = 7%)
As stated above, the clothing production sector plays a dominant
role in the Spanish industry. There
is a growing trend among manufacturers to create their own chain
of distribution. Franchise has
become a very common system
for brand name distribution of
fashion products. The latest available analysis of the Spanish
Franchise Association from 2001
states that there are over 78
Spanish brand name franchises in
the fashion sector with almost
3 000 boutiques. In the meantime
this figure will have gone up by
approximately 10-12% (more
details under www.franquiciadores.com).
A new way of distributing garments for clothing manufacturers
originates from the USA: Sales
through Factory Outlet Centers
(FOCs). Garments are sold directly from the factory to the consumer. This distribution way concerns ‘leftovers’: goods from
overproduction, phased-out products and returns. ZARA has an
independent shop in Madrid.
There are many FOCs in Spain,
located outside of big cities.
149
There is FOC ‘La Roca Company
Stores’ near Barcelona, which
offers brand apparel at reduced
price in 40 shops (Cacharel,
Dockers, Levi’s, Timberland). Two
other FOCs are situated near
Madrid (‘Las Rozas Village’ in Las
Rozas and another one in Getafe).
According
to
Factory-Outlet
Center.biz there are 6 registered
large FOC’s in Spain in 2006.
4.4.3.2.2 Central Buying Associations
As the share of independent
smaller retailers in Spain (at 37%)
is high, there is a relatively broad
basis for potential member companies for buying associations.
Nevertheless, there are only two
buying associations of importance
in Spain: UNA VIVO in Madrid with
160 members and IFA ESPANOLA
in Madrid with 62 members, founded in 1967. The members of the
latter are more supermarkets and
cash-and-carry markets than
retailers.
The low importance of buying
associations in Spain can be mainly explained by the fact that the
owner of a single boutique or a
small number of shops buys over
80% of his product range from
local manufacturers and/or from
sales agents representing foreign
brands. Therefore, the buying
associations are of less importance for foreign manufacturers wishing to export to Spain.
Sales agents play a major role in
the Spanish clothing market. This
refers mainly to Spanish and
European clothing brands which
are distributed via a network of
sales agents all over the country.
Only those clothing manufacturers from abroad wishing to enter
the Spanish market with an own
product range are advised to
appoint a sales agent to sell their
collection to the major retailers.
These sales agents should be
located near or in the major ‘clothing areas’ of Spain like Madrid,
Seville, Barcelona and La Coruña
to build up and maintain contact
to the ‘key players’ in Spain.
Given the strong increase of clothing imports into Spain since the
end of the nineties, the necessity
for
the
assignment
of
importers/wholesalers has increased.
Some
Spanish
wholesalers/importers have come
to supply the chains and the
brands with ‘price attractive and
fashionable’ collections that they
often develop with manufacturers
from
overseas
countries.
However, interviews in Spain have
shown that the large clothing
companies like Mango, Inditex or
Indyuco often have their own
import departments and sourcing
and control systems worldwide.
Therefore, the clothing supplier
from abroad should approach
retailers and manufacturers in
Spain directly.
150
4.5 SPANISH FASHION
TRADE FAIRS
The important Spanish fashion
fairs take place in two big cities:
Barcelona and Madrid. The significant fashion fair in Barcelona is
BCN Fashion Week. The main
focus of this fair is casual & high
quality wear and prêt-à-porter for
men and women, accessories
exhibition, swimwear and lingerie
fashion.
The significant fashion fair in
Madrid is SIMM – International
Fashion Week. It is organized
twice a year, in February and
August/September in Parque
Ferial Juan Carlos I by IFEMA
(Feria de Madrid). The fair focuses
on men’s and womenswear, but
also fur clothing and leather garments. The fair includes the following events: INMODA/ANIMODA,
IMAGENMODA, INTERMODA, LA
GALERIA, PASARELA DE CIBELES, CIEN POR CIEN, ESPACIO
CIBELES, ESPACIO HOMBRE and
BOUTIQUE EUROPA. From 2006
onwards
all
shows
in
February/September each year
will be combined under the name:
International Madrid Fashion
Week. 930 exhibitors will participate in February 2006 with an
exhibition area of 35 800 sq. m.
The ongoing growth SIMM has
enjoyed has made this event the
second most important fashion
trade fair in Europe in terms of net
exhibition area, based on a solid
and constant drive to ensure quality. Furthermore, the fair will feature strong participation on the part
of international companies and
buyers from other countries, for
which SIMM represents an important business centre.
For childrenswear the ‘FIMI’ in
Valencia is the most important
event. The fair takes place twice
per year and shows baby to teenager wear as well as accessories
and maternity wear. FIMI - the
62nd edition of the International
Children's and Young People's
Fashion Fair in Valencia will take
place on 13-15 January 2006. At
this show all the collections for
Autumn / Winter 2006-07 will be
presented. FIMI anticipates the
visit of 7,000 professionals, who
have shown great loyalty since
the fair began. More than 250
companies, national as well as
international, originating mainly
from Italy, France and Portugal will
present the latest fashion trends.
151
Table 4-8: Overview of Spanish Fashion Trade Fairs
Trade Fair
Products
Location
Dates
FIMI
Children and youth wear
Valencia
January and June
BCN Fashion Week (SIMM)
Women’s and menswear
Barcelona
January and
September
International Fashion Week
(SIMM)
Women’s and menswear
Madrid
February and
September
CIEN X CIEN JOVEN
jeans, sportswear,
streetwear
Madrid
February and
August
ESPACIO HOMBRE
menswear
Madrid
February and
August
IMAGENMODA
Womenswear
Madrid
February and
August
INTERMODA
direct-order-fair for
women’s wear
Madrid
February and
August
INTIMA Moda Baño
lingerie and swimwear,
dessous
Madrid
August and
September
Bread & Butter Barcelona
Tradeshow for
selected brands
Barcelona
January and July
Source: m+a Expo DataBase, Messedatenbank, 2005/2006
152
CHILDREN’S WEAR IN SPAIN
C & A Modas S.L.
Esther Pineño
Avda. de la Indústria, 17
E - 28108 Alcobendas (Madrid)
Tel.: +34-91-663 0000
Fax: +34-91-663 3532
press@C-and-A.com
www.c-and-a.com www.c-y-a.es
childrenswear
Celso Garcia SA
Calle Serrano 52
E - 28001 Madrid
Tel.: +34-91-431 6760
Fax: +34-91-431 67 70
www.cortefiel.es
childrenswear
Note: Belongs 1/3 to Cortefiel
Comerc. Espanola LA
ARANA SA
Polígono Industrial El Pla Edificio Arana
E - 08800 Barcelona
Tel.: +34-93-668 9061
Fax: +34-93-668 5962
menswear
Cortefiel SA
Avenida Mon Forte De Lemos
s/n
E - 28029 Madrid
Tel.: +34-91-730 2912
Fax: +34-91-730 2437
www.cortefiel.es
menswear + young fashion
Number of outlets: > 300
Damart SA
Calle Gomis 32
E - 08023 Barcelona
Tel.: +34-93-212 2412
Fax: +34-93-211 5815
www.damart.fr
menswear, underwear
+ mail order
153
Euronido Textil SA
Ctra. Anadlucia, km 6.400
E - 28041 Madrid
Tel.: +34-91-217 3345
Fax: +34-91-365 0848
www.euronido.es
menswear
(value for money)
Inditex SA (‘Zara’)
Poligono Ind. Sabon 79B
E - 15142 Arteixo, La Coruna
Tel.: +34-981-185400
Fax: +34-981-185454
www.inditex.com
childrenswear
Number of outlets: > 500 - partially
own production
Mango – Punto FA S.L.
Calle Mercaders 9 11
E - 08184 Palau de Plegamans –
Barcelona
Tel.: +34-93-860 2222
Fax: +34-93-8602 201
www.mango.es
Product range: Womenswear, young
fashion
Number of outlets: Over 60 + 175
franchising partners
Prénatal SA
Botanica 29-31
Hospitalet de Llobregat
E - 08908 Barcelona
Tel.: +34-93-2606000
Fax: +34-93-2606018
www.prenatal.es
Product range: Childrenswear,
Maternity wear
Reguero SA
Roble 3
E - 28020 Madrid
Tel.: +34-91-4252 880
Fax: +34-91- 571 57 35
154
Superconfex SA
Sierra de Guadarrama 84
Polígono Industrial San Fernando
de Henares
E - 28850 Madrid
Tel.: +34-91-656 4012
Fax: +34-91-677 2935
www.superconfex.nl
menswear
Note: Daughter company of Dutch
‘Superconfex’
Viella SA
Psje. Blanchart 26
E - 08901 Barcelona
Tel.: +34-93-337 1686
Fax: +34-93-93- 337 1690
menswear
Dacosa SA
Claudio Coello 57
E - 28001 Madrid
Tel.: +34-91-431 6041
Fax: +34-91-577 4904
Price segment: Mid to higher level
Note: belongs to Cortefiel group
Saez Merino S.A.
Lanterners, no 1 Pol. Vara de
Quart
E - 46014 Valencia
Tel.: +34-96-382 65 70
Fax: +34-96-382 65 79
www.saezmerino.es
Note: One of the leading jeans and
casual wear manufacturers in Spain
with brands CAROCHE, LOIS and
CIMARRON
Department Stores
Alcampo SA
Edificio de Oficina Madrid 2
Santiago del Compostela sur s/n
E - 28029 Madrid
Tel.: +34-91-730 6666
Fax: +34-91-730 7299
www.alcampo.es
childrenswear
Number of outlets: 43 + 13 ‘service
points’
155
Almacenes ARCOS SA
Avenida de Portugal 2
E - 21001 Huelva
Fax: +34-955-25637
childrenswear
Number of outlets: 8 dept. stores
+ 3 discounters
El Corte Ingles SA
Hermosilla 112
E - 28009 Madrid
Tel.: +34-91-309 7221
Fax: +34-91-327 1327
www.elcorteingles.es
Product range: Men’s ladies and
childrenswear
Price segment: Lower to upper level
(depending on distribution channel)
Number of outlets: 37 dept. stores +
supermarkets + franchising partners
Galerias Primero SA
Paseo Echegaray y caballero 76
E - 50003 Zaragoza
Tel.: +34-976-769900
Fax: +34-976-769901
www.galeriasprimero.es
childrenswear
Jose Luis Gay GA
Calle Alfonso I n 17
E - 50003 Zaragoza
Tel.: +34-976-397150
Fax: +34-976-396647
menswear
Simago SA
Josefa Valcarcel, 40 duplicado
E - 28027 Madrid
Tel.: +34-91-301 80 00
Fax: +34-91-301 80 23
childrenswear
Number of outlets: approximately 15
Note: belongs to the Spanish
Continente Group
156
Venta Catalogo SA
Calle de los Olivares 1 Vilanova i la Geltrú
E - 08800 Barcelona
Tel.: +34-93-814 0909
Fax: +34-93-893 0818
www.venca.es
Product range: Casual wear for men
and women
Manufacturers/Importers and
Wholesalers/Importers
Caramelo SA
Avda. Gambrinus 103
E - 15008 La Coruna
Tel.: +34-981-146 002
Fax: +34-981-270103
www.caramelo.com
menswear
Price segment: Mid to higher level
Note: Manufacturer + retailer
Centro Textil Massana
C. Josep Calvet, 80 - Apto. 1052
E - 08302 Mataró
Tel.: +34-937-415 545
Fax: +34-937-415 553
www.massana.es
Product range: Knitwear and
outerwear
Difusion Dignos
SL / Dikton’s
Tànger 66
E - 08018 Barcelona
Tel.: +34-93-4864545
Fax: +34-93-4864546
Product range: Knitwear
Efussion International SA
Avda. Rio Palancia s/n
E - 12412 Geldo (Castellon)
Tel.: +34-964-712081
Fax: +34-964-712011
Note: Manufacturer
157
Import Arasate S.A.
Pol. Kataid, pab 19
E - 205000 Arrasate
(Guipuzcoca)
Tel.: +34-943-712-034
Fax: +34-943-771-301
www.astore.es
Product range: Sport and rainwear
Induyco Grupo de Moda
Tomas Breton, 62
E - 28045 Madrid
Tel.: +34-91-4680 300
Fax: +34-91-46 78 723
www.induyco.es
Product range: Ladies, men’s and
childrenswear
Price segment: Mid to high level
Note: 50% production absorbed by
Corte Inglés
Sirita SL
Calle Poligono 6
E - 46960 Aldaya (Valencia)
Tel.: +34-96-151 2377
Fax: +34-96-151 2361
www.andres-garcia.com
Product range: Casual wear for men
Note: Manufacturer
Takezo + Co. SA
Trafalgr 70
E - Barcelona (Ciutat Vella)
Tel.: +34-93-268 4322
Fax: +34-93-268 2293
menswear
Unicen SL
San Pedro de Leixa 303
E - 15405 Ferrol, La Coruna
Tel.: +34-981-315611
Fax: +34-981-326252
www.unicen.com
Note: Manufacturer and wholesaler
158
Buying Associations
FA Espanola SA
Sepúlveda, 4
Poligono Industrial Alcobendas
E - 28100 Alcobendas (Madrid)
Tel.: +34-91-651 0460
Fax: +34-91-661 5880
www.grupoifa.com
Note: 62 related wholesalers
Una – Vivo AS
Condado de Trevino 19
E - 28033 Madrid
Tel.: +34-91-766 1222
Note: 160 related companies
159
Outerwear
SWITZERLAND
5
SWITZERLAND
SITUATION
The Swiss import policy for clothing from EU and to a large extent
also from non-EU countries is very
liberal. Thus, the economy is internationally highly integrated, applying an open trade regime for industrial products. Tariffs on manufactured products are generally
low, and in principle there are no
quantitative restrictions, anti-dumping, countervailing or safeguard
actions. However, in a number of
sectors, the market entry has long
suffered from ‘private’ or ‘informal’
barriers that can be attributed to a
legacy of weak anti-cartellegislation, specific and protective technical regulations, certain investment
restrictions, etc.
Against the backdrop that
Switzerland has no mineral
resources, the country is forced to
import, process and resell them
as products. The ‘service sector’
is the most significant part of the
economy, employing more the
50% of the population. This sector
specifically includes banking, insurance and tourism. Industry and
trade are the second sectors in
significance (about 40% of the
population are employed there)
and include the machine and
metal industry, the watch industry
as well as the textile and clothing
industry.
Economic relations with the EU
have further intensified and
foreign trade with this ‘country
block’ has a share of 70% of all
Swiss trade activities. This is mainly also due to the seven bilateral
agreements between Switzerland
and the European Union that
came into force on June 1st, 2002
and the central location of
Switzerland
within
Europe.
Exports of merchandise are concentrated on a few sectors, particularly machinery, instruments,
watches, chemicals and medical
products and to a lesser extent
textiles and clothing. Exports of
commercial services are also
important with about one quarter
originating in the financial sector.
As mentioned, the European
countries play an important role in
Swiss trade relations. Germany is
the most important trading partner for Switzerland: In 2004,
32.9% (23 Bn. €) of all imports
came from Germany and 20.3%
of all exports (18.8 Bn. €) were
delivered into Germany. Both are
also important investment partners to each other. The complete
capital stock of German investments in Switzerland amounts to
18 Bn. €. Almost 1 800 German
enterprises are operating in
Switzerland. Switzerland, on the
other hand, has investments totalling up to 17 billion € in Germany, operating with approx.
1 900 enterprises and 220 000
employees. Switzerland is the
sixth largest foreign investor in
Germany.
160
GDP and Industrial Production
have grown from 2003 to 2004
by 1.7% and 4.7% respectively.
Table 5-1 shows all of the important Key Indicators of the Swiss
Economy over the last years.
Table 5-1: Key indicators of the Swiss Economy, 2002 - 2005
in %
2002
2003
2004
2005 (est.)
0,30
-0,40
1,70
1,27
-0,50
0,40
4,70
3,28
Unemployment rate (average)
2,50
3,70
3,90
3,37
Consumer price inflation (average)
0,60
0,60
0,80
0,93
CHF: € (av)
1.47
1.52
1.54
1.53
CHF: US$ (av)
1.56
1.40
1.24
1.50
Real GDP growth
Industrial production growth
Exchange rates
Source: SFSO, 2005
In 2005, the fluctuation of the
CHF (CHF=Swiss Franc) against
the € (Euro) was small, from an
absolute high of 1.57 (€ to CHF)
to an absolute low of 1.53 at the
end of 2005 (only 2.5% variation). The lowest rate for the CHF
against the € between 2002 and
2005 was 1.45 in 2002 and the
highest, 1.58 in 2004 (fluctuation
9%). The Euro fluctuation against
the USD (US-Dollar) was much
higher, from 1.20 in 2002 to a low
of 0.73 at the beginning of 2005
(nearly 64%) within the same
period. The CHF develops more
closely in line with the Euro than
with the USD. In the past few
years, the ratio of the CHF to the
Euro has slowly but continuously
grown stronger. One CHF is at
present 1.544 € (13.12.2005).
161
5.2 THE MARKET FOR
OUTERWEAR
5.2.1 Market size
Switzerland has a small but very
competitive apparel market. In
2003, the total size of the Swiss
clothing market was about CHF
6.8 Billion. Switzerland has very
high labour and production costs,
and therefore the industry has the
tendency to concentrate on highend and/or niche products.
Switzerland’s apparel industry is
experiencing a resizing process,
based on the following key factors:
- Worldwide overcapacities
- Growing competition from lowwage economies
- Strict displacement competition
- Lack of market dynamics in textile
production
- Market split between expensive
labels and cheap mass clothing
- Consumer price sensitivity
- Demographic developments
- Discrimination of passive valuadded trade (eliminated by the
principle of the Pan European Accumulation since January 1997), com
prising EU member States, EFTA1
and MOES2
The MOES agreement benefits
exporters and manufacturers of
clothing by providing them with
more competitive advantages on
the European markets and has
brought an end to the discrimination against Swiss textile products
that have been produced in
Eastern and Central European
countries.
Clothing imports amounted to
5 423 Million CHF in 2004 (see
Table 5-2), a 0.9% growth over
the previous year. At the same
time, clothing exports accounted
for 1 623 Million CHF.
Due to the fact that Switzerland is
a relatively small country, the
Swiss clothing industry depends
strongly on exports. Local production accounts for 948 Million
CHF. Thus, imports are five times
stronger than local production.
The total market amounts to
6 245 Million CHF and fell by 9.3%
in 2004.
1
Switzerland, Norway, Iceland, Principality of Liechtenstein
2
Poland, Czech Republic, Slovakia, Hungary, Bulgaria,
Romania, Slovenia, Estonia, Latvia, Lithuania
Table 5-2: Size of the Swiss Clothing
Market, 2002 - 2004
Source: SFSO, 2004
in Mio. CHF
2002
2003
2004
% Change
against previous
year
5386
5372
5423
0,95
National Production
1481
1453
978
-48,57
Exports
1236
1559
1623
4,10
Total Market
6867
6825
6245
-9,29
Import Market
162
The present situation in the clothing market in Switzerland can be
characterised by the following
brief statements:
The recent economic improvements in 2004/2005 have encouraged consumer spending. This
has resulted in improved prospects for the clothing sector.
Sports activities such as basketball, snowboarding, skateboarding, etc. have spurred demand
for young and trendy fashion
wear. Casual and leisurewear
have also become more popular
in recent years. Highly fashionconscious young people are willing and able to pay higher prices
for well-known labels. The trend
towards use of natural fabrics and
fibres has slowed down; manmade fibres that offer easier care
and washing of clothing have gained importance. Thus, ecologically friendly clothes made of natural
fibres which were being introduced at the end of the nineties still
have a demand but at a lower
consumption level.
The German ecological standard
‘Öko-Tex 100’ was introduced
more than ten years ago and also
plays an important role in
Switzerland. The aim is to ban certain colouring methods, chloride
products and heavy metals to
prevent the danger of cancer or
allergies
(see
www.oekotex.com).
The Swiss clothing retail market
has undergone a severe concentration process with a trend
towards factory outlets, (brand)
chain stores and ‘brand sales
points’ within larger department
stores
(‘shop-in-shop’).
The
increased use of e-commerce in
the fashion world has imposed a
challenge to the ‘normal’ retailers.
Trends are towards multi-channelling (parallel selling via internet
and shops), pre- and after sales
support and mass customized
offers. Foreign companies have
gained more and more influence,
for instance C&A Switzerland,
H&M and others (see ‘Leading
Retailers’
and
‘Distribution
Channels’).
The Swiss society can be briefly
characterized as an aging society.
There are now many more elderly
people than 50 years ago. The
number of citizens over 64 has
more than doubled since 1950,
while that of those over 80 has
even quadrupled. The major age
group are those at an age between 40-64 (34.33%). In contrast, the number of ‘under twenties’ has increased much less and
has actually declined since the
early seventies. This aging process is the result of a longer life
expectancy and fewer births.
According to birth scenarios
drawn by the Swiss Federal
Statistical Office, this trend will
continue over the next few decades.
163
The population pyramid shown in
Figure 5-1 points out in greater
detail the recent (year 2005) proportion of the Swiss male and
Table 5-3: Age structure of the Swiss female population divided into age
population by sex and age groups, groups (based on a total Swiss
population of 7.4 million).
2002 - 2004
Table 5-3 shows the population
development in Switzerland over
the years 2002 to 2004.
2002
%
2003
%
2004
%
7313853
100
7364148
100
7415102
100
male
3575029
48,88
3601539
48,91
3628696
48,94
female
3738824
51,12
3762609
51,09
3786406
51,06
1641794
22,29
639045
22,1
2055959
27,73
Switzerland
Sex
Source: SFSO, 2005
Age groups
0-19
1642782
20-39
2086762
28,53
2072594
40-64
2441827
33,39
2493019
33,85
2545756
34,33
837186
11,37
846194
11,41
319555
4,34
328148
4,43
65-79
829715
80 and over
312764
22,46
11,34
4,28
28,14
Figure 5-1: Age structure of the Swiss Population by sex, 2005
Switzerland: 2005
85+
80-84
75-79
70-74
65-69
60-64
55-59
50-54
45-49
40-44
35-39
30-34
25-29
20-24
15-19
10-14
5-9
0-4
male
350 300 250 200 150 100 50
0
0
female
50 100 150 200 250 300 350
Population (in thousands)
Source: U.S. Census Bureau, International Data Base, 2005
164
5.2.4 Retail sales by categories
The sales volume increased by
2.6% for Swiss clothing and shoe
retail in 2004 compared to 2003.
This has been the first sales
increase since 1990. Data about
the specific sales for outerwear
are not available, however, Figure
5-2 gives a good indication on the
sales tendencies for clothing and
shoes from 1990 to 2004 .
Figure 5-2: Index of Clothing and Shoes (last 12 months), 2003 - 2004
105
100
95
90
1990
2003
2000
2004
Source: SFSO, 2004
Table 5-4 (a) shows the market
development for clothing in 2004.
Clothing sales in quantity terms
declined slightly by 0.2% whereas
the value decreased heavily by
10.6%. This diverging development indicates a price decrease
per apparel item in Switzerland
(basically due to the increasing
imports from low-cost countries).
Table 5-4 (a): Market development in clothing in 2004 in comparison to 2000
2000
2004
Change to year
2000 in %
222.203
221.758
-0.2
Value in CHF Mill.
6.275
5.674
-10.6
Average Price in CHF
28.25
25.58
-10.4
in Pieces 1.000
Source: IHA-GfK, 2004
165
The sales volume of Outerwear
has grown from 930 Million CHF in
2003 to 950 Million CHF in 2004,
an increase of 2.2%. The sales
volume of Underwear declined by
2.7% in the same period. The total
turnover remained stable with a
slight growth of 0.5%. Table 5-4
(b) indicates the sales developments of the major product segments Outerwear and Underwear.
Table 5-4 (b): Clothing turnover development by categories 2003 - 2004
in Million CHF
2003
2004
Change from
previous year in %
Outer Wear
930
950
2,2
Under Wear
375
365
-2,7
Garment Accessories
215
212
-1,4
1,520
1,527
0,5
Knitted Garments
73,2
71,2
-2,7
Woven Garments
101,0
113,0
11,9
Garments & Shoes
97,0
99,5
2,6
Total
Index Values (Basis 1995 = 100)
Source: Textile Revue, 2004
The sales of Knitted Garments
declined by -2.7%, while Woven
Garments increased by 11.9% in the
same period.
According to desk research carried
out in Switzerland, the following
product groups have the best sales
prospects in Switzerland:
- Young and trendy Sportswear/Casual wear
- Jeans wear (either branded or
on a value for money basis)Strict displacement competition
- Well-known street wear brands
in the mid price range
- Fashionable products at an
‘acceptable’ price level mainly
offered by chains
- High-end designer brands
- Environmentally friendly apparel
- ‘Soccer related’ active sports
wear as Switzerland qualified
for the FIFA Worl Championship
2006
The demand for leisure and casual wear has increased continuously over the last few years, especially for the sportswear and ‘smart
casual’ segment. Additionally,
high-end designer lines can also
be quite successful in Switzerland
with its high standard of living. An
ongoing trend is a demand for
natural fabrics. Also ‘functional
clothing’ e.g. with ‘breath-active
fabric’ is selling well.
166
Swiss consumers can be defined
as ‘hybrid consumers’, as in other
countries. Market analysis has
shown that generally speaking the
consumers are very well informed
about the latest trends in fashion
and can be considered to be both
sophisticated and brand conscious. This is the case especially for
people with higher income and a
higher standard of living. It is no
surprise that well-known clothing
brands are popular among Swiss
consumers, as they are considered status symbols. On the other
hand, there are many ‘cheap’
chain stores with a ‘value-formoney-concept’ on the market
which reflects the ‘economic
sense’ of the Swiss consumer.
Swiss women today can generally
be described as fashion oriented
without following all fashion trends
immediately. They are usually sure
of their taste and prefer basic and
‘practical’ garments which can be
easily mixed and matched. Swiss
women occasionally engage in
impulse buying, but generally prefer to invest in high quality basics.
Working women prefer simple
and elegant garments of high
quality and comfort. The formal
office outfit for working women
usually consists of an outfit or suit
with matching blouse or shirt.
Matching accessories like shawls,
belts, handbags etc. have gained
much more importance in the last
2-3 years and help to ‘freshen-up’
an existing outfit.
Modern Swiss men have changed
their attitude to fashion considerably over the past few years.
According to retail trade sources,
the male customers have ‘grown
up’ and know what they are looking for: fashionable and comfortable clothing of good quality. The
level of sophistication in men’s
attitude is increasing. Well-known
brand names are very popular,
especially among label-conscious
young consumers.
Younger people, in particular, are
willing and able to pay high prices
for well-known labels. Casual clothing without a known label in the
mid price bracket is also in
demand. In general, buyers aged
25-50 are the most relevant consumer group for apparel, representing the target group which
spends a high proportion of disposable income on apparel and
shoes. Quality, functionality, price
and design, in that order, are the
most important factors for this target group in taking a buying decision.
Children (beginning at kindergarten age) believe they know what
fashion is and what fashion suits
them. They have clear wishes and
preferences concerning brands;
they love Hip-hop and Rap styles
with wide trousers (baggy trousers), jeans and sport shoes.
Sports brands like Puma, Adidas
etc. have been very much in
demand in 2005. This target market changes its preferences relatively quickly.
167
5.2.5.2 Consumer expenditures
The Swiss population has one of
the highest per capita incomes in
the world. Households with a single
person account for 19.4% of the
Swiss population and have an income of around 6700 CHF/month
according to the last survey of the
Swiss Federal Statistical Office
(SFSO) in 2003. Couples without
children have the highest incomes with an estimated 10,976
CHF/month.
Table 5-5 summarizes the structure
of Swiss household income by size
of household.
Table 5-5: Household income by household types, 2003
All
households
Single
person
Percentage
of households
100
19.4
People per
household
2.3
8781
Monthly
income
per household
Sole
parent
family
Couples
Couples
with 1
child
Couples
with 2
children
Couples
with 3 or
more
children
3.7
18.8
10.5
13.5
5.4
1
2.54
2
3
4
5.29
6718
8338
10976
10912
11440
11808
Source: SFSO, 2003 (most recent year for which figures are available)
1
Note: The remaining 28.7% are not allocated to consumer segments.
According to a market survey of
the SFSO, monthly earnings for
the average Swiss household (2.3
persons) are 7981 CHF. A relatively small share of this money, only
2.9% (in 2000 it was 4.35%),
which means approximately 223
CHF monthly (in 2000 334.25
CHF), is usually spent on clothing
items and footwear.
168
For the last few years, the Swiss
clothing market has permitted no
significant price increases. Based
on stable procurement costs but
increased costs for personnel,
rent, energy etc., the margins in all
sectors have the tendency to
become smaller. In this respect,
the profit situation has become
much worse for companies that
are concentrated on the national
market only. Therefore, many
manufacturers are forced to concentrate on high-quality products,
niche marketing, new fashion and
exclusive lines or on export markets.
The Swiss price index increased
continuously but very slowly from
1999 to 2004 at an average rate
of 0.9%. In fact, there has been
practically no inflation in recent
years. Prices for apparel have
decreased since 1999. There has
been a dramatic price deflation of
clothing since 2001. The reason
can be seen in the heavy price
cuts of Swiss retailers due to the
fierce competition. On average, in
2001 the prices for clothing in
Switzerland decreased by 5.4%.
Figure 5-3.
Figure 5-3: National consumer price index relative to clothing price index,
1995 – 2004
105,0
95,0
85,0
1995
1996
1997
1998
1999
Consumer Proce Index
2000
2001
2002
2003
2004
Clothing Price Index
Source: SFSO, 2004
169
5.3 IMPORTS
5.3.1 Total imports
Switzerland has an extremely liberal import regime for textiles (no
import limitations, and some of the
lowest import duties in the world).
In addition, developing countries
profit from a 50% import tax
reduction.
In the year 2003, total imports of
clothing and textiles amounted to
7.47 billion CHF. In comparison,
outerwear imports were 4.59 billion CHF, with 1.1% growth in 2004
and with a falling tendency in 2005
(approx. -0.9%).
Since 2001, clothing imports have
averaged 5.37 Billion CHF. More
Figure 5-4: Clothing imports, 2001 – 2005
6
5.47
5.39
5.37
5.27
5.37
5
4.58
4.61
4.59
2001
2002
2003
4.64
4.61
2004
2005 (est.)
4
Source: SFCO, last updated, 2004
5-4, which shows the clothing
import developments into Switzerland from 2001 to 2005. The
upper curve shows ‘clothing total’
and the lower curve, the HS
Codes 61 and 62 (basically outerwear).
170
The imports of clothing (underand outerwear) increased from
1999 to 2000 in terms of volume
and value. The outerwear imports
were 4307.3 Million CHF turnover
an increase of 0.6% from 2003 to
2004.
The statistical data about clothing
imports to Switzerland gathered
by the Swiss Textile Association
allow a general look at the import
flows of outer- and underwear in
2003 and 2004 in comparison
with 2000. The figures are summarized in Table 5-6.
Table 5-6: Imports of outerwear and underwear, 2003 – 2004
(in comparison with 2000)
In CHF Million
2000
2003
2004
Change from
previous year in %
Outer Wear
4.373.7
4.279.8
4.307.3
0.6
Under Wear
671.8
749.1
753.1
0.5
5.045.5
5.028.9
5060.4
0.63
Total
Source: Swiss Textile Federation, 2004
The outsourcing of local production process to low wage countries
is continuing. Thus, the outward
processing trade (OPT) of clothing
manufacturers in Switzerland has
increased too in the last few years
and contributed to the growth of
the Swiss clothing industry.
There are no detailed statistics
available for the last few years, as
the import data are no longer specified for OPT and non-OPT clothing imports. A more detailed
analysis is therefore not possible.
171
Table 5-7: Largest supplying countries, 2000 – 2004
Table 5-7 summarises the major
countries supplying outerwear to
Switzerland. The neighbouring
countries Germany and Italy
remain the most important clothing suppliers for Switzerland.
More than 81% of the clothing
imported originates from Europe.
Professional and advanced marketing by the foreign brands,
quick and easy communication
and overnight truck deliveries are
important reasons for this dominant position. In recent years, the
role of Austria has improved from
9th to 5th position. Portugal has fal-
ced or finished in low labour cost
countries, whether in Eastern
Europe, North Africa or elsewhere. The East Asian countries China
and India (places three and seven)
have a slightly declining market
role compared to other supplying
countries. Next to Austria,
Bangladesh has shown the highest increase at 18.2%.
The EU remains the by far most
important trading partner in clothing for Switzerland (export share
77.2%, import share 59.7%). EFTA
countries no longer have any
importance as suppliers. The supply from developing countries
Positon
Country
2000
in mio. CHF
2003
in mio. CHF
2004
in mio. CHF
+/- in %
1
Germany
1662,9
1569,1
1555,7
-0,9
2
Italy
968,2
1357,9
1383,4
1,9
3
China
627,9
497,5
519,4
4,4
4
France
486
470,1
452,1
-3,8
5
Austria
147,7
121,6
148,2
21,8
6
Turkey
113,1
135
137,9
2,2
7
India
152,4
123,6
127,1
2,8
8
Portugal
153
159,4
117
-26,6
9
Netherlands
98,6
118,3
113,1
-4,4
10
Spain
76,1
98,5
112,2
13,9
11
Bangladesh
-
58,8
69,5
18,2
12
Great Britain
97,6
69,2
68
-1,7
4583,5
4779
4803,6
0,5
5396,3
5372,3
5422,7
-0,9
All 12 countries
All countries worldwide
len back from 5th to 8th position.
Most of the well known European
brands are at least partially produ-
increases and has gained competitiveness
regarding
design,
fashion and qualitative aspects.
172
Source: Eurostat 2005
5.3.3 Largest suppliers
5.4 TRADE STRUCTURE
The liberalization of regulations
governing clearance sales in the
retail trade since 1997 has enabled Swiss retailers to initiate sales
all year round, and not just during
fixed periods. While smaller retailers in particular fear that the
department stores and other big
clothing stores will continue to put
additional pressure on prices and
margins by starting the summer
and winter sales earlier each year,
other trade sources mentioned
the positive effect the liberalization
has on shops forced to liquidate
their goods in order to renovate or
move the store.
The sales volume in the clothing
market has shrunk by about 10%
in the three years up to 2004 (in
value terms). Growth was impeded by successful trade competitors and continuing price reductions. After the cessation of the
import/export quotas on January
1st, 2005 which had specially protected the European markets
from cheap imports from China
for years, the prices fell even
more. The market entry of the
Italian Oviesse shops (under the
direction of C&A Switzerland) has
brought additional competition, as
has the transformation of COOP
city markets and takeovers in the
mail order business.
Clothing trends, especially the
cessation of fashion dictations or
dress codes, favour a further fall in
the sales volume in the market as
a whole. However, there are also
factors which will influence the
future development of the clothing market positively such as
demographic development and
increasing disposable incomes.
Those groups who are most investing in clothes at present will also
have the strongest population
growth within the coming years,
basically the age group from 35 to
65 years of age. The age group
between 45 and 54 have been
strong consumers already in the
past, and this specific age group
will influence the market positively.
In general, the situation of the
Swiss clothing retail market
remains difficult, mainly due to
more and more competition from
foreign chains (Mango, Zara,
H&M, C&A Switzerland) but also
Swiss retailers growing stronger
like Tally Weilj or Vögele. The specialised smaller and independent
retailers are under pressure and
often can only exist by ‘mixing different labels’ to be attractive for a
specific target group. There is a
continuing trend to verticalization
at Swiss retail level, meaning to
manage and control the whole
sourcing and distribution process
from design of the collection and
production down to the distribution of the product range in selfowned retail outlets. This sales
concept means a strict supply
chain management and is increasingly used also by departmentstores and chains like Globus building up their own ‘retail brands’.
173
The sales volume of the Swiss
textile and clothing industry in
2004 reached about 3.7 Bn. CHF
with a share of 2.2 bn. CHF for the
clothing industry alone. This was a
1.9% increase over the previous
year. Local clothing production
increased by 0.5%. Exports
increased to 1.6 bn. CHF (+4.1%).
The sales volume at retail level
more or less stagnated between
2001 and 2005. More details
about sales volumes can be taken
from Figure 5-5, which provides a
comparison with other sectors of
the Swiss economy.
Figure 5-5: Clothing and textiles
turnover relative to turnover in all
sectors, 2002 - 2005
140
130
120
110
100
90
80
70
60
I/2002
III/2002
I/2003
III/2003
Clothing and Textile Turnover
I/2004
III/2004
I/2005
III/2005
Turnover all Sectors
Source: SFSO, 2004
The following clothing retailers are
the important stores and shops
on the Swiss market (section
6.4.3. Distribution Channels gives
further detail). The overall composition of market leaders has
changed dramatically within the
past few years. Price competition
is fierce and deemed dangerous
by experts as customers are getting used to special offers. The
biggest market player is H&M,
followed by Vögele, C&A Switzerland, the PKZ Group and department stores such as COOP,
Globus, Migros and Manor.
The Swedish HENNES & MAURITZ is currently the market leader. Established in Switzerland in
the year 1978, H&M now operates
49 stores throughout the country.
It has a turnover of 619 Million € (3
644 Million CHF).
174
H&M does not produce itself but
has a network of 700 suppliers.
60% of production is placed in
Asia. A key factor in success
seems to be the strategy of cost
leadership backed by the globally
operating Swedish headquarters.
Two stores were opened in 2004
(one for childrenswear). The
management perceives growth
potential in Switzerland as limited
because H&M has been present
in the market since the late seventies.
CHARLES VÖGELE MODE AG is a
Swiss-based fashion chain operating in Switzerland, Germany,
Austria,
Belgium
and
The
Netherlands. In 2005, Vögele had
7201 employees and 787 sales
branches. Group turnover has fallen from 974.1 Million € in 2002 to
866.2 Million € in 2004 while earnings doubled from 10.3 to 24.4 in
2003 and remained stable in
2004. Vögele’s primary market
strategy traditionally has been low
price and still is, though effort has
been made to ensure high quality
as well. Break-even was reached
in the German market in 2005
year although overall turnover has
decreased. To respond to higher
pressure in the market, retail outlets are managed as profit centres. Consequently, the number of
full-time employee has been
reduced slightly for the last 2-3
years. In order to increase productivity, a special supply chain
management division has been
set up. Plans are to cut costs by
6.5 million € this year. The first six
months of 2005 already ended
with a profit surplus of 4.4%
(664.5 Mill. CHF).
CHARLES VÖGELE GROUP does
not have production centres of its
own. All clothes are obtained from
external suppliers. Most purchase
orders (about 95%) are placed
directly with manufacturers all
over the world and produced with
Vögele own-labels. By the vertical
organization, the costs are optimized and high quality standards
can be maintained. Vögele runs a
clear compliance strategy, expecting sustainability and responsibility of its suppliers, e.g. by following
certain minimum social standards,
environmental rules and product
safety standards.
An important event in the anniversary year 2005 was the revision of
the Corporate Identity of the
enterprise. The new logo represents a fusion of dynamism and
tradition. The main aim is to offer
attractive prices and high quality
for ready-to-wear elegance and
style affordable for their customers. In the next few years,
Vögele will expand into new markets such as Slovenia, Poland,
Hungary and Czech and will
strengthen its position in Germany
(330 stores at present). In
Switzerland, Vögele operates 157
stores, has 2175 employees and a
selling space of 129 762 sq. m.
175
Net sales were 485.3 bn. CHF.
According to the German textile
publication ‘Textilwirtschaft’, this
figure represents a market share
of 6.1% which is higher than the
share of H&M in the Swiss market.
The range consists of womenswear (56%), menswear (32%) and
childrenswear (12%).
ABM (Au Bon Marché) has pulled
out of the market. In 2002, the 56
stores were transformed into
‘Oviesse’ under the regime of the
Globus group and a franchise
agreement with the Italian Gruppo
Coin. The Gruppo Coin wants to
enter several European markets
with their Oviesse concept.
OVIESSE belongs to the big Italian
clothing and textile chains with
about 200 branch offices for
ladies, men’s and childrenswear.
The range is positioned in the low
price segment and brings out
novelties on a permanent basis.
Store design and product presentation is highly attractive.
The GLOBUS GROUP flagship
store in Zurich employs about 420
employees and achieves a sales
volume of about 150 Mio. CHF
yearly on a net selling space of
7,500 sq. m. With a square metre
sales volume of over 20,000 CHF
per month it is one of the most
productive department stores of
the world.
The Globus group completed the
clearing up of unprofitable lines of
business in 2004 and sold its
foreign countries business to a
large extent. The group has invested 100 Mio. CHF every year
since 2003 on restructuring measures. These measures reduced
the groups sales volume (-24.8%
up to 2003). The sales reduction
amounted to about 400 Mio. CHF
and the business result decreased to 1182.8 Mio. CHF in 2004
(-24.8% compared to 2003). As a
result, a profit increase is expected for the current financial year
2005 which is not affected by
restructuring costs any more.
The comparable retail business
sales volume in Switzerland was
achieved with an almost unchanged selling space. The Globus
department stores made a profit
of 671.5 Mio. CHF in 2004 (-0.2%
compared to 2003). HERREN
GLOBUS surpassed the previous
year by 4.8% with 62 Mio. CHF.
Oviesse achieved an increase of
6.5% in 2004. The global sales
increase of the Globus group at
retail level in 2004 was 0.6% compared to 2003.
The GLOBUS GROUP belongs to
the MIGROS AG. 2004 was a
milestone regarding profits for
Migros: After a loss of 59 million €
in 2003, the 2004 profit skyrocketed to 13 million €. This may be
related to disinvesting from
foreign markets (turnover reduced by 24.8%). The Migros Group,
which is still operated as a cooperative, is the Swiss market leader
in retailing but not in the clothing
market.
176
Migros puts high efforts in sustainability, fair trade and social
responsibility of the company
towards its own workers, its suppliers and society in general
(‘Clean Clothes Campaign’). The
year 2004 brought one of the
best results in company history.
Earnings increased by 47% to
351.2 Million €, the turnover rate in
2005 is expected to go up by 2%.
Migros has its own sourcing network for clothing all over the
world, but also buys from
European based importers and
wholesalers.
The textile chain OVIESSE missed
the required two-digit growth.
Despite great efforts, the Italian
textile concept Oviesse has not
reached a breakthrough in the
Swiss clothing market. This is why
the Globus Group led the brand
Oviesse as a franchise from
Gruppo Coin. Gruppo Coin (Italy)
took most decisions in terms of
assortment, price and quality for
the Swiss market. In the end, the
activities led to completely insufficient results. Consequently, the
partners ended their cooperation
in December 2004. The 30
Oviesse outlets were closed and
the shops/locations were taken
over by C&A Switzerland.
C&A SWITZERLAND also took on
a large part of Oviesse staff by
March 2005. The parties agreed
not to disclose the takeover price
of the network. C&A is planning to
re-open 24 of the stores as C&A
stores. This will boost market pre-
sence from 43 to about 70 stores
in Switzerland. Management
expects turnover to exceed 400
Million CHF this year and 500
Million CHF after successful integration of the former Oviesse
shops. The market strategy aims
at being a clothing house for the
whole family with good prices and
quality. It sells all kind of mid-priced
clothing and aims to extend market share. However, C&A does
not buy separately through their
branch in Switzerland, but from
Düsseldorf/Germany and the C&A
purchasing centre EBSCO in
Brussels.
The PKZ GROUP with 700
employees in total owns several
clothing chains. PKZ with 33 stores concentrates on menswear
with quality clothing of different
labels. Burger (1 Shop) is a menswear shop. FELDPAUSCH (10 stores) focuses on womenswear,
BLUEDOG (11 outlets) is a young
fashion casual wear chain. PKZ
Group puts a lot of effort into customer relations with 600 000 customers in the database, reaching
into 20% of all Swiss households.
In 2004, PKZ sold goods to more
than one million customers. This
business is looking back on a
decade of continuous growth in
turnover with a slight decrease in
the period 2002-2004.
The PKZ GROUP suffered from
the frosty consumption climate in
2002-2003. The group in 2004
reached an increase in turnover
after a sales decrease of 9% in
2003.
177
All subgroups moved in he same
direction. However, the new upswing of the group is mainly due
to increased advertising and
efforts on the quality of the products. The new FeldbauschConcept combines basically two
fashion directions: classically and
stylishly oriented female customers and modern and elegant
fashion for ladies. Burger reduced
their number of brands from 40 to
20 and focussed further on the
younger segment. The Group turnover in 2004 reached 139 million
€. Cash flow exceeds 10% of turnover. The group will use these
financial means for further growth
in the years to come. Since 2005
Feldbausch is present also in East
Switzerland (St. Gallen with 500
sq. m).
The COOP GROUP runs quite
varied store formats ranging from
food to non-food and services.
Coop offers a unique mix from
branded articles to own brands
and special brands (like Coop
‘Naturaplan’). Numerous products
of the Coop are from production
plants of their own or from suppliers with whom they work very
closely. The sales volume in the
retail business reached 13.98 Bn.
CHF in 2004 (2.9% in 2003). In a
restructuring process, the number
of stores of the whole group has
been reduced and the 1 433 most
profitable ones have been kept
(5.3% compared to 2003) with
over 47 000 employees. The market share of the Coop Group is
15.7% (0.7% compared to 2003).
The non-food division holds a
market share of 10% (0.8% compared to 2003) with a sales volume of 42 762 million CHF. The textile division represents 4% of the
non-food division and is calculated together with multimedia.
With its 72 branch offices in 2004,
MANOR is the largest department
store chain in Switzerland. It
belongs in large part to the two
Lausanne based families, Maus
and Nordmann. Other divisions of
the Manor Group are 'Fly' (furniture and home accessories),
'Athleticum' (sports) and 'Jumbo'
(Hobby articles). The Manor
Group is the third largest Swiss
retailer. In 2004, turnover reached
2.79 billion CHF. Further company
data have not been published.
The business employs 12 000
people altogether. About 2000
persons are working in the textile
division, which represents about
one third of the whole Manor business.
178
retail businesses. Figure 5-6 gives
a first survey on the Swiss clothing
retail market (market shares in
2004). More details about the
development of the market share
of the retail outlets can be taken
from Table 5-8.
5.4.3.1 Retailers
The distribution channels are
grouped according to their basic
structure into different kinds of
Figure 5-6: Clothing retail channels by market share, 2004
Channels by market share: Independent retailers and Chain stores
summarised in Textile specialist stores with 55.2% of total marke
Food Distributors
10%
Other Distributors
11%
Chain stores
31%
Mail order
11%
Department stores
13%
Independent
retailers / Boutiques
24%
Source: IHA Institut für Marktanalysen, 2004
The data indicate that the textile
specialist stores play a dominant
role among the clothing distributors in Switzerland (as in 2002). In
this group of ‘textile specialists’,
the most popular shops are clothing multiples with a wide range of
clothing (with a market share of
30.9% in 2004). These specialists
show constant growth over the
last few years. They include chain
stores with 30.9% (trend: slight
growth in market share) and the
independent retailers / boutiques
and other specialised clothing
retailers (including fur and leatherwear outlets) with a market share
of 24.3% (trend: slight fall in market shares).
179
The following Swiss retailers can
be assigned to the specific distribution channels:
- Clothing chains with own labels:
Charles Vögele, WE-mode,
Benetton, Hennes + Mauritz,
C & A, Kookai, Esprit, Tally Weijl,
Yendi, Chicorée, Pimkie, Orsay,
Blackout, Levi‘s Store, Mango,
Zara
- Clothing retailers with a ‘brand
concept’: PKZ/BlueDog/Burger,
Schild, Beldona, Fein-Kaller,
Feldpausch, Grieder, Herren
Globus, Spengler (without mail
order), Jeans-Stores
- Independent retailers: Wool
market/wool stores, textile oneline stores, boutiques, jeans
boutiques, tailors’ workshops,
stocking stores, leather and fur
business
- Department stores: Globus,
Manor, Coop, Jelmoli (without
mail order), Migros and other
department stores
- Mail order companies: Cornelia,
Heine-Versand, Goldner Schnitt,
Charles Veillon, Ackermann,
Spengler, Jelmoli, Vögele,
Quelle, Total Beyeler/Damart
Versand, Vedia, Bader and
other mail order houses
- Food distributors: Migros, Coop
and other food distributors
- Cash & Carry: Denner, Waro,
Jumbo/Carrefour, Primo/Visavis,
Volg
Other Distributors (sport shops,
sport specialist stores, various distributors) hold a market share of
11.3%.
Low-price shops are not very
popular in Switzerland as the consumers look for more than just low
prices. Therefore, they have lost
market share in recent years and
the prospects are not very positive either. For mid-price apparel,
department stores and mail order
companies are still appropriate
and well accepted distribution
channels.
Table 5-8: Clothing retail channels by market shares, 2000 - 2004
in % of Totales
2001
2002
2003
2004
Textile specialised stores
55,1
56,3
54,7
55,2
- Chain Stores (branches)
28,8
30,2
30,3
30,9
- Independent Retailers
26,3
26,1
24,4
24,3
Department stores
15,4
14,5
13,9
13,1
Mail Order
10,9
10,7
11,1
10,6
Food Distributor
10,1
9,6
9,9
9,8
Various Distributors
8,5
8,9
10,4
11,3
6,24
6,29
5,80
5,75
Total Market in bn. CHF
Source: IHA-GfK, 2004
180
5.4.3.1.1 Textile specialised retailers
(including clothing chains)
These specialized clothing shops
are still the main type of retail outlet
for garments in Switzerland, namely chain stores, boutiques and other
specialised clothing retailers. The
market share of these shops has
remained stable over the past
years at around 55%. Chain Stores
have won more popularity and
represent the most successful retail
channel with a market share of
30.9% in 2004 (28.0% in 2000).
This corresponds to an increase of
7.3% since 2000. The independent
retailers, boutiques and other specialised clothing retailers (including
leather and fur stores) are losing
their popularity, with a market share
of 24.3% in 2004 representing a
loss of about 8.2% compared to
2000.
The major distribution channel
among the textile specialist retailers
in Switzerland are the clothing stores with several outlets. Apart from
the national clothing multiples
Vögele, Schild, PKZ and Spengler,
there are many foreign retailers
present in the Swiss clothing market.
Market share: 55.2%
Trend: stabilization at 55% (1996 =
56.3%)
Several foreign chains that are
every active in Switzerland must be
mentioned, such as the Swedish
HENNES & MAURITZ GROUP, the
Spanish retailer ZARA, the German
ESPRIT (67 shops), the Italian
fashion company MAX MARA
(aiming at international female
shoppers) and the Danish VERO
MODA (with 23 shops) as well as
the Spanish MANGO (12 stores).
MANGO is a Spanish franchise
company owning 12 shops in
Switzerland, 800 all over the world
including online-retailing (Mango
MNG Group). Global turnover
increased by 5.3% in 2004 and 87
stores were opened in 2004. A
new shop in Winterthur opened in
March 2005 (first shop in
Switzerland in 1999). A new and
improved logistics system ensures
direct delivering from the factories
in Spain to the local retailers all over
the world. Mango is currently devising a corporate sustainability programme.
ZARA is one of eight fashion brands
retailers belonging to the Inditex
group which lays stress on high
vertical integration as a strategic
factor in competition. Zara first opened in 1975 in Spain and is now present in over 50 countries with 723
stores. All of them have been designed to create a special atmosphere that will allow the client to
feel the pleasure of buying fashion.
200 designers create new fashion
that hits the market twice a week.
Company turnover was 3.82 bn. €
(2004) and 3.22 bn. € (2003). Zara
has a share within the Inditex Group
of 67.4%. Sales in franchise stores
stand at 10% in 2004, the same as
in 2003. In Switzerland, Zara has
had 7 stores since 2002. IT continues expanding around the world.
181
Another new clothing retailer is
VERO MODA with 23 shops. Vero
Moda Switzerland belongs to
‘Bestseller Wholesale’. Bestseller is
a family-owned clothing company
founded in Denmark in 1975. Today,
approximately 13,000 people work
at Bestseller in more than 30 countries designing, developing, selling
and marketing Bestseller’s brands.
Bestseller offers a permanent supply of young fashion in 900 stores
worldwide at comparatively low prices. Today Bestseller comprises 11
brands including Vero Moda. The
Group turnover in 2004 was 928
million €.
The Swiss chain TALLY WEIJL is
another international ‘textile success story’. The company is currently installing a new logistics
system because of fast growth; it
currently has 210 stores. More than
100 stores operate under own
management, the rest on a franchise basis. The market target is
‘the woman who likes to be sexy’.
Despite doubling sales volume within the last 5 years, TW wants to
remain a niche supplier.
New market players have entered
the Swiss clothing market in
2004/2005, for instance BELDONA. Beldona belongs to WE
International BV (Netherlands) with
233 stores worldwide. TOMMY
HILFIGER opened a first Hilfiger
Denim Store in Zurich. INTERSPORTS opened a first outlet in
Switzerland in October 2005.
5.4.3.1.2 Department-stores
Department stores play the second
most important role among the distribution channels, with a market
share of 13.1% in 2004. Their market share has declined since 1999
(16.3%), and sales values in 2004
were equal to those of 1996.
Market share: 13.1%
Trend: obviously declining
One of the major department stores in Switzerland is GLOBUS AG, a
department store with branches in
all major Swiss cities, which sells
fashion for men, women and children in the mid and upper price
range, as well as fashion accessories, general consumer products
and food.
Another major Swiss player is the
MANOR AG, a department store
with branches in the whole of
Switzerland, operating clothing
departments for men, women and
children in the lower to mid price
category, including fashion accessories and general consumer products.
The LOEB HOLDING (a traditional
family company in Bern) is a department store with nine outlets. Loeb
owns several clothing and nonclothing companies and has a total
turnover of 213 million CHF (2004).
The nine Loeb department stores
only represent one part of the Loeb
Holding. Loeb Holding also owns
Wartmann, a separate clothing
multiple.
182
Loeb has placed itself in the market as a department store with a
strategy to be a regional niche
player not competing directly with
big houses like Coop or Manor.
JELMOLI AG is a department
store with significant apparel sales
for men, women and children featuring international brands concentrated on the mid to upper
price range. With its ‘two-line business strategy’ - retail business
and retail real estate business Jelmoli has managed to change
the original department store into
a successful, growing and profitable specialties retail business unit.
Due to use of synergies at retail
level, high profitability has been
achieved. Group profit in 2004
was 88.7 million CHF (12.7% compared to 2003). The 2004 profit in
retail sales was 57.8 million CHF
(+96% compared to 2003) with
2,548 employees and 183 stores
(+1.1% compared to 2003). The
positive trend has continued in the
first half of 2005 (6 months),
where an increase of 3.5% has
been achieved.
The overall good results of the
Jelmoli Group can mainly be traced back to the success in the
retail business, namely specialised
stores and outlets (restaurants
and others), sales activities of the
‘Fust’ group (multimedia, kitchen/household, electrical goods)
as well as some effective customer relationship activities like
‘Bonus Cards’.
The mail-order business is the
third most important retail channel
for clothing in Switzerland. The
market share of mail-order houses in Switzerland showed an
increase of about 2.8% in 2004
compared to 2000. The average
share since 1996 lies quite constantly at around 10.8%.
Market share: 10.6%
Trend: stable
The market leader in mail-order,
CHARLES VEILLON SA, uses the
most modern logistics technology
and a close cooperation with the
Swiss mail. MONA VERSAND
GMBH & CO. is another mailorder company, targeted at the
over 60 age group, 90%
womenswear, 10% menswear.
The French mail-order house LA
REDOUTE offers clothing with a
‘French touch’ and is specialised
in clothing. ACKERMANN is a
company proud of its individual
service and has one of the most
modern distribution centres in
Europe.
In
Switzerland,
Ackermann communicates with
its customers in the four official
languages.
There are some department stores which run separate mail-order
companies. For example, JELMOLI AG, a department store, also
offers sales through a mail order
catalogue. CHARLES VOEGELE
AG stopped its mail-order activities in 1995.
183
SPENGLER AG, a clothing chain
with own apparel stores also runs
an own mail order house; it offers
clothing for men, women and children in a mid price range.
The fourth most important retail
channel for clothing after mailorder houses are super- and
hypermarkets. The market share
in 2004 was 9.8%. In 1996, superand hypermarkets were still positioned above the mail-order houses with 11.3% (mail-order houses
10.9%), this corresponds to a loss
of 15% by 2004. The trend is
decreasing further.
Market share: 9.8%
Trend: decreasing
MIGROS AND COOP with their
stores are the biggest retailers in
Switzerland, with activities in
super- and hypermarkets. The
company DENNER AG owns the
hypermarket WARO, which sells
clothing to a small extent. Jumbo
is said to be the cheapest supermarket in the Swiss market, with
shops that are located outside the
towns. Denner is the leading Swiss
food discounter with over 320
branches in all of Switzerland and
employs approx. 2 000 employees. Additionally, Denner has more
than 280 Denner ‘saTel.lite
dealers’, which cooperate very
closely. The Denner range covers
a good choice of articles for daily
use. 75% of the range offered are
branded articles, the rest are own
brands. Weekly new, select speci-
al offers from the non-food area
round off the assortment.
Denner has a consistent discount
policy: Lowest prices combined
with highest quality with a limited
number of articles. 2004 was the
most successful year in history for
Denner. Sales volume increased
by 11.8% to CHF 1,843 billion in
comparison to the previous year.
This peak turnover is even 11% higher than the previous record year
1991.
This overall sales increase is directly connected to increased market
share. The renewal of all outlets
had been completed by the end of
2004. In 2005 there was further
growth in sales volume as 20 additional stores were opened.
5.4.3.1.5 Various Distributors
This category primarily includes
sport shops, sport specialist stores, street markets and ex factory
sales (directly from the fashion
manufacturer through ‘factory
outlet centres’). Other forms of
distribution are ‘consumer fairs’
and sales through the ‘Internet’.
For the manufacturer from abroad, this target group is very difficult
to approach as they normally do
not import on their own. They buy
mainly from importers/wholesalers
according to their own specifications. The role of this ‘other form of
distribution’ has increased over
the past few years.
184
In 2000, it had a market share of
8.5%, the market share in 2004
increased to 11.3%. Although
more detailed figures are not available, it can be strongly assumed
that the increase in this distribution
channel is mainly due to higher
internet sales.
Market share: 11.3%
Trend: Increasing (2000 to 2004 =
32.9%).
The clothing manufacturers in
Switzerland face a difficult market
situation. The total turnover of the
Swiss clothing industry amounted
to 1.5 bn. CHF in 2004 (1.7 bn.
CHF in 2000). The added value of
Swiss companies decreased in
the last few years and more and
more manufacturers use OPT
business.
Swiss clothing manufacturers
know the needs of the Swiss customer, but their domestic production costs are too high to compete with imports in the lower or mid
price range. Thus, most clothing
manufacturers look for production
possibilities abroad. Since 2000,
OPT and outsourcing has increased. Despite all these negative
economic effects, Swiss clothing
production increased by 0.5%
while simultaneously employment
fell by 13.6%. Exportas grew by
4.1% due to the increased high
quality demand for outer- and
underwear from Switzerland.
One major Swiss central buying
association is the ‘ez Fashion
Center’. It has dozens of members, mainly independent retailers.
The buying association operates
on the basis of long-term partnerships, often with very close links to
local clothing producers. The ‘ez
Fashion Center’ now co-operates
with the German buying association ‘Sütegro’ (Stuttgart) and with
the ‘Austrian Fashion Association’.
ez Fashion Center is trying to gain
more members and to find suitable contracts with efficient clothing
suppliers.
The members of the buying-association ‘Inter-Sport’ originate from
the active sportswear and sports
articles sector, the organisation is
closely linked to the German
based Inter-Sport in Heidelberg.
Some of the Swiss clothing retailers are even members in the larger German buying associations
such as Katag in Bielefeld.
Sales agents for the Swiss market
are normally located in the country where the clothing is imported
from, e.g. in the major Asian cities
like Hong Kong, Singapore,
Shanghai, New Delhi or Istanbul.
Desk research and interviews with
Swiss clothing manufacturers
revealed that only very few Swiss
buyers rely on sales agents to
take over a ‘buying function’ for
them.
185
The overwhelming part of the buying process is handled by the
importing retailer directly. Clothing
manufacturers from abroad must
contact these ‘sourcing offices’ in
their respective country or contact
the buyer at the retailer’s or manufacturer’s headquarter directly in
Switzerland.
Analysis has revealed that the large
majority of Swiss importers are distributors for foreign European
brands selling into Switzerland.
Often, such importers have their
own shop or boutique with high-priced clothing and fear low quality
imports. Only a few show some
interest in imports from outside
Europe. The situation remains
unchanged, that most of the small
retailers/importers are not in the
position to order sufficient quantities, thus orders e.g. from Asia or
South America will not be worthwhile for them. Even middle-sized retailers are sometimes reluctant to do
so, but regret at the same time not
having the possibility to source from
developing and emerging countries.
Thus, with the general increase of
clothing imports into Switzerland,
the importance of Swiss wholesalers and importers has increased
and the ‘need’ for imported goods
also for smaller retailers due to the
price pressure in the market has
generally increased since the last
study in 2002. The situation is unchanged, that a considerable share
of clothing imports into Switzerland
is handled by German importers, as
they buy in overseas markets any-
way to a very large extent and can
offer the service to neighbouring
Swiss retailers as well.
5.5 SWISS FASHION TRADE
FAIRS
Reliable trade sources have repeatedly mentioned that the participation in European Fashion Trade Fairs
by manufacturers from emerging or
developing countries, frequently
visited by Swiss buyers, are the best
and most efficient way to establish
initial contacts with Swiss wholesalers and distributors.
The most important Swiss trade
event for men’s, women’s and children’s wear at the ‘TMC Fashion
Centre’ in Zürich (TMC), takes place
twice per year and has a clear national character. Participation in these
so called ‘selling days’ (to the retailers) are restricted to agents running
a showroom in the TMC. The
‘Textile & Mode Center’ was set up
as a wholesale centre for textiles
and clothing in August 1978.
Participation of foreign manufacturers in these ‘national market
events’ at TMC is not allowed and
also does not make sense (inappropriate target group).
Swiss buyers, whether they are in
charge of department stores, specialized retailers, importers, mailorder houses or chains tend to visit
trade fairs mostly for information
purposes, but also to find new contacts. Clothing fairs in Germany are
quite popular among Swiss retailers. The following trade fairs in
neighbouring countries are frequently visited by Swiss buyers:
186
Trade Fair
Products
Location
Dates
Barcelona Fashion Week
Menswear, womenswear
and designer collections
Barcelona/Spain
February and
September
Bread and Butter
Denim, sport and street
wear, sportswear
Berlin (Germany)
and Barcelona
January and
July
CPD – Woman Man
including Global Fashion
(for clothing suppliers from
emerging and developing
countries with non-branded
products)
All kind of women’s and
menswear including readyto-wear, knitwear, underwear
and swimwear, hats & caps
and accessories, bridal &
evening wear, young fashion,
casual wear
Düsseldorf/Germany
February and
August
Fashion Look!
Leipzig Messe
Menswear, womenswear,
children’s wear, fur, leather,
sports wear
Leipzig/Germany
(will move to
Düsseldorf from
August 2006
onwards)
February and
August
Fimi Valencia
Children’s fashion and
accessories
Valencia/Spain
January
ISPO
Active sportswear, fashion
sport, sporting goods
Munich/Germany
January and
July
Kind und Jugend
Babies’ and childrenswear,
maternity wear, babies’
accessories and clothing for
teens
Cologne/Germany
February and
July
MODAMILANO International Apparel Show
Exhibition of new styles, new
trends, boutique fashions
Milan/Italy
February and
October
PITTI BIMBO
High class childrenswear –
mainly European brands
Florence/Italy
January and
June
PITII Imagine UOMO
Menswear – designer and
avant-garde and European
brands
Florence/Italy
January and
June
PRÊT A PORTER
Ladies ready-to-wear garments, exhibits of winter collection at the spring show
summer collection
Paris/France
February and
September
SIMM
Women's fashion, Ready-towear, Jeans, streetwear,
sportswear
Madrid/Spain
February and
August
187
CHILDREN’S WEAR IN SWITZERLAND
Clothing multiples
Bernie's AG
Postfach 3925
CH - 8021 Zürich
Tel.: +41 43 244 75 75
Fax: +41 43 244 75 76
www.bernies.ch
Product range: high fashion & casual
Blue Dog
(company: PKZ Feldbausch)
Bahnhofstrasse 46
CH - 8010 Zürich
Tel.: +41 44 736 33 33
Fax: +41 44 736 33 00
www.bluedog.ch
Product range: Jeans, sports- and
casual wear
Price segment: mid and high price
level
Note: brand and fashion oriented –
exclusive retailer
Bon Genie
Brunschwig & Cie SA
34, rue du Marché
CH - 1204 Genève
Tel.: +41 22 818 11 11
Fax: +41 22 818 11 99
www.bongenie-grieder.ch
Price segment: mid to high price
level
Number of outlets: Bonnard u. Cie 3
shops, Bon Genie 7, Grieder 7, 10
boutiques under Bon Genie
Charles Vögele AG
Gwattstrasse 15
CH - 8808 Pfäffikon
Tel.: +41 55 416 71 11
Fax: +41 55 410 37 43
www.voegele.ch
Product range: all kind of clothing
Fein-Kaller & Co. AG
Bachmattstr. 53
CH - 8048 Zürich
Tel.: +41 44 434 83 83
Fax: +41 44 434 83 43
www.fein-kaller.ch
wear
Product range: menswear and
womenswear
188
Herren Globus Zentrale
Industriestraße 171
CH - 8957 Spreitenbach
Tel.: +41 58 455 30 30
Fax: +41 58 455 31 88
www.herrenglobus.ch
Product range: Department store for
men
Price segment: mid-priced items
Jeans & Co. AG
Haldenstr. 1
CH - 6340 Baar
Tel.: +41 41 768 60 50
Fax: +41 41 768 60 59
www.jeans-co.ch
Product range: casual wear
Price segment: mid price level
Modehaus MODEVA AG
Muttenzerstr. 109
CH - 4133 Pratteln
Tel.: +41 61 821 91 91
Fax: +41 61 821 92 20
www.modeva.ch
Pasito-Fricker AG
Pfadackerstr. 7
CH - 8957 Spreitenbach
Tel.: +41 56 418 17 77
www.pasito.ch
Product range: womenswear, menswear, shoes
level
PKZ Burger-Kehl & Co.
Bahnhofstrasse 46
CH - 8010 Zürich
Tel.: +41 44 736 33 33
Fax: +41 44 736 33 00
www.pkz.ch
incl. jeans wear
level
189
Schild AG
Zentralverwaltung
CH - 6002 Luzern
Tel.: +41 41 429 55 55
Fax: +41 41 429 57 57
www.schild.ch
Product range: clothing for men and
women
Ed. Sturzenegger AG
Werkstrasse 5
CH - 9000 St. Gallen
Tel.: +41 71 243 90 30
Fax: +41 71 243 90 41
www.sturzenegger.ch
Product range: womenswear, textiles, underwear
Tally Weijl
Areal Bleiche
CH - 4800 Zofingen
Tel.: +41 62 745 10 00
Fax: +41 62 745 10 30
Number of outlets: 210 (total worldwide)
Wartmann AG
Marktgasse 45 / Postfach
CH - 3001 Bern
Tel.: +41 31 320 18 18
Fax: +41 31 312 16 55
www.mode-wartmann.ch
Number of outlets: 26 (stores, shops,
boutiques also as a part in other
businesses)
Department stores
Globus AG Headquarter
Eichstrasse 27
CH - 8045 Zürich
Tel.: +41 44 455 21 11
Fax: +41 44 463 35 02
www.globus.ch
Price segment: low and mid price
level
Number of stores: 12
190
Jelmoli AG
Seidengasse 1
CH - 8001 Zürich
Tel.: +41 44 220 44 11
Fax: +41 44 220 40 00
www.jelmoli.ch
and textile
level
Number of outlets: 1 large outlet in
Zürich - also includes mail order
catalogue
LOEB AG
Bälliz 39
CH - 3600 Thun
Tel.: +41 33 227 51 51
Fax: +41 33 227 51 52
www.loeb.ch
Product range: all kind of products
Manor AG
Rebgasse 34
CH - 4058 Basel
Tel.: +41 61 686 11 11
Fax: +41 61 681 11 92
www.manor.ch
and textile
Number of outlets: 80 stores
Schaufelberger AG
Bälliz 26
CH - 3600 Thun
Tel.: +41 33 225 37 37
Fax: +41 33 225 37 38
www.schaufelberger-thun.ch
Product range: men’s and womenswear, textiles
Mail Order
Ackermann Versandhaus AG
Postfach
CH - 6160 Entlebuch
Tel.: +41 41 482 81 11
Fax: +41 41 482 84 05
www.ackermann.ch
Product range: professional wear,
ladies', men's, childrenswear
Note: no outlets, only mail order
191
BON´A PARTE MODE AG
Fürstenlandstrasse 35
Tel.: +41 848 44 08 81
Fax: +41 848 44 08 85
www.bonaparte.ch
Product range: Men’s and womenswear, boys’ and girls’
Happy Size-Company
Versandhandels AG
Postfach
Tel.: +41 848 55 66 83
Fax: +41 848 55 66 84
www.happy-size.ch
Product Range: men’s and womenswear
Companies: Happy Size and Men+
Heinrich Heine
Handelsgesellschaft AG
Riedwiesenstr. 12
CH - 8305 Dietlikon
Tel.: +41 44 805 15 15
Fax: +41 44 834 04 40
www.neu.heine.ch
Price segment: mid and high
Jelmoli Versand AG
Postfach
CH - 8088 Zürich
Tel.: +41 848 840 300
Fax: +41 848 840 305
www.jelmoli.ch
and textile
La Redoute CH SA
Rue de la Gare 13
CH - 1820 Montreux 1 VD
Tel.: +41 21 966 50 00
Fax: +41 21 966 50 01
www.laredoute.ch
192
menswear24.ch
Momasi SA
Avenue de la Gare 42
CH - 2800 Delémont
Tel.: +41 79 828 75 77
www.menswear24.ch
Mona Versand GmbH & Co.
Wehrstr. 12
CH - 9202 Gossau
Tel.: +41 71 314 83 00
Fax: +41 71 314 83 09
www.mona.ch
Rotex Versand
Industrie Wet 4042
CH - 4614 Hägendorf
Tel.: +41 62 216 43 43
Fax: +41 62 216 43 45
www.rotex.ch
Product range: professional wear,
leisure wear
Spengler Versand AG
Fürstenlandstrasse 35
Tel.: +41 71 274 61 61
Fax: +41 71 274 61 62
www.spengler.ch
and textile
Veillon SA
Route de Buyère 2
CH - 1017 Lausanne
Tel.: +41 21 706 92 17
Fax: +41 21 706 98 14
www.veillon.ch
193
Vögele AG
Gwattstrasse 15
CH - 8808 Pfäffikon
Tel.: +41 55 416 71 11
Fax: +41 55 410 37 43
www.voegele.ch
Walbusch
Bahnhofstrasse 46
CH - 9443 Widnau SG
Tel.: +41 71 727 99 88
Fax: +41 71 722 90 11
www.walbusch.ch
Product range: Men’s and womenswear
Price segment: high level
Wullehus-Mode
Versandhaus AG
Emmentalstr. 4
CH - 3510 Konolfingen
Tel.: +41 31 791 01 47
Fax: +41 31 791 10 19
www.wullehus.ch
for age group 40+ as target group
Number of outlets: 4 shops + mail
order
Grocery Super- and Hypermarkets
COOP Schweiz
Thiersteiner Allee 12
CH - 4002 Basel
Tel.: +41-61 336 66 66
Fax: +41-61 336 60 40
www.coop.ch
Product range: all kind of products
Price segment: low and mid price
level
Number of outlets: 11 department
stores, more than 1700 shops
Denner AG Zentrale
Grubenstrasse 10
CH - 8045 Zürich
Tel.: +41 44 455 11 11
Fax: +41 44 456 29 29 (buying
department)
www.denner.ch
Proprietor of Waro and Franz Carl
Weber (FCW)
Number of outlets: 613 stores
194
Jumbo Markt AG
Industriestrasse 33
CH - 8305 Dietlikon
Tel.: +41 44 805 54 54
Fax: +41 44 805 54 50
www.jumbo.ch
Price segment: very low price level
Migros-GenossenschaftBund
Limmatstrasse 152
CH - 8005 Zürich
Tel.: +41 44 277 21 11
Fax: +41 44 277 25 25
www.migros.ch
Price segment: low price range with
own brands
Number of fashion outlets: 134
10 Migros Co-operative societies
Swiss Clothing Manufacturers
Algo S.A.
Badenerstrasse 274
CH - 8004 Zürich
Tel.: +41 44 240 41 66
Fax: +41 44 240 41 67
www.algosa.ch
(high priced womenswear)
Ajotex SA
Route de Coeuve 37-41
CH - 2900 Porrentruy
Tel.: +41 32 465 89 89
Fax: +41 32 465 89 85
www.jic.ch/ajotex
(men / women / child wear)
AKRIS LINEA B S.A.
Via Francesco Borromini 12
CH - 6850 Mendrisio
Tel.: +41 91 641 39 00
Fax: +41 91 641 39 01
www.akris.ch
(very high priced womenswear)
alba Albin Breitenmoser AG
Zielstrasse 38
CH - 9050 Appenzell
Tel.: +41 71 788 91 11
Fax: +41 71 787 46 58
www.alba-gruppe.ch
(Professional clothes)
195
Alumo Textil AG
Zielstrasse 38
CH - 9050 Appenzell
Tel.: +41 71 788 91 55
Fax: +41 71 788 91 54
www.alumo.ch
(produces shirts)
Amacher Rosmarie
Dufourstrasse 167
CH - 8008 Zürich
Tel.: +41 44 380 50 60
Fax: +41 44 422 88 70
www.couture-amacher.ch
Angéloz Michel SA
Route de l’Industrie 3
CH - 1680 Romont
Tel.: +41 26 651 92 80
Fax: +41 26 651 92 89
www.michelangeloz.ch
(mid-priced menswear and
womenswear)
Beca Ferretti SA
Via della Posta-Zona 2 CP 257
CH - 6934 Bioggio
Tel.: +41 91 605 57 76
Fax: +49 91 604 67 87
(menswear, professional clothes)
Blumer F. & Cie. AG
Industrie Mühle 19
CH - 8762 Schwanden GL
Tel.: +41 55 644 11 17
Fax: +41 55 644 39 49
www.blumer-f.ch
(men’s, women’s, childrenswear)
Boller, Winkler AG
(no street name)
CH - 8488 Turbenthal
Tel.: +41 52 396 22 22
Fax: +41 52 396 22 00
www.bonjour.ch
(clothing and other textiles)
Brülisauer SA
Via motta 45
CH - 6850 Mendrisio
Tel.: +49 91 640 64 40
Fax: +49 91 640 64 44
www.bruli.com
(menswear)
196
Braunschweig P. & R. AG
Badener Strasse 120
CH - 8026 Zürich
Tel.: +41 44 241 97 30
Fax: +41 44 242 94 28
www.pierrette.com
(mid- and high-priced coats and
jackets for women)
Calida AG Bodywear
Industrie Münigen,
CH - 6210 Sursee
Tel.: +41 41 925 45 25
Fax: +41 41 925 42 84
www.calida.com
(men’s, women’s and children’s
under- and nightwear)
Camiro sagl
Strada Cantonale
CH - 6863 Besazio
Tel.: +49 91 646 61 18
Fax: +49 91 646 69 95
(menswear)
Cavalco Confezioni SA
Via Industria 7
CH - 6826 Riva San Vitale
Tel.: +41 91 648 22 63
Fax: +41 91 648 23 64
www.cavalco.ch
(menswear)
Conceprio SA
Corzoneso Piano
CH - 6715 Dongio
Tel.: +41 91 871 12 43
Fax: +41 91 871 25 31
(men’s and womenswear)
Consitex SA
Via Ligornetto 13
CH - 6855 Stabio
Tel.: + 41 91 640 76 00
Fax:+ 41 91 640 76 19
www.zegna.com
(high priced menswear)
Dresdensia SA
Via Fola 13
CH - 6963 Pregassona
Tel.: +41 91 971 60 63
Fax: +41 91 971 11 52
(men’s and childrenswear)
Dürsteler J. & Co. AG
Zürcherstrasse 47
CH - 8620 Wetzikon
Tel.: +41 44 933 60 70
Fax: +41 44 933 60 71
www.faerben.ch
(men’s, women’s and childrenswear)
197
Fabric Frontline Zurich AG
Ankerstrasse 118
CH - 8026 Zürich
Tel.: +41 44 241 64 55
Fax: +41 44 242 20 02
www.fabricfrontline.ch
(men’s and womenswear)
Feldinger Gabriel AG
Lettenweg 40
CH - 4123 Allschwil
Tel.: +41 61 481 05 05
Fax: +41 61 481 05 39
(mid-priced items womenswear)
Filtex AG
Teufenerstrasse 1
Tel.: +41 71 221 13 13
Fax: +41 71 221 13 14
www.filtex.ch
(women’s and childrenswear)
Ganzoni & Cie AG
Gröblistrasse 8
Tel.: +41 71 279 33 66
Fax: +41 71 274 29 89
www.sigvaris.com
Gessner AG
Florhofstrasse 13
CH - 8820 Wädenswil
Tel.: +41 44 789 86 00
Fax: +41 44 789 86 01
www.gessner.ch
(womenswear)
Hagmann Hosenmode AG
Industriestrasse 9
CH - 4657 Dulliken
Tel.: +41 62 285 55 55
Fax: +41 62 285 55 69
www.hagman.ch
(menswear, especially trousers)
HANRO AG
Benzburweg 18
CH - 4410 Liestal 18
Tel.: +41 61 926 88 22
Fax: +41 61 926 88 27
www.hanro.ch
(men’s and women’s under- and
nightwear)
Herz Heinrich AG Julietta
Via Campagna 21
CH - 6987 Caslano
Tel.: +41 91 606 73 43
Fax: +41 91 606 21 60
www.heinrichherz.ch
(womenswear)
198
Hofmann + Co AG
Krawattenfabrik
Im Eisernen Zeit 51
CH - 8057 Zürich
Tel.: +41 44 362 37 54
Fax: +41 44 362 37 19
www.hofmannties.ch
(men’s accessories and ties)
Hugo Boss Industries
Via Passeggiata 7
CH - 6883 Novazzano
Tel.: +41 91 696 17 17
Fax: +41 91 696 17 78
www.hugoboss.com
(menswear)
ISA Sallmann AG
Weinfelderstrasse 15
CH - 8580 Amriswil
Tel.: +41 71 414 24 44
Fax: +41 71 414 24 55
www.isabodywear.ch
Kauf AG
Rosenbüelstrasse 50
CH - 9642 Ebnat-Kappel
Tel.: +41 71 992 60 60
Fax: +41 71 992 60 65
www.kauf.ch
(shirts for department stores
and mail-order comp.)
Lehsa Strickwarenfabrik
Eichenweg 16
CH - 4900 Langenthal
Tel.: +41 62 922 50 44
Fax: +41 62 923 08 38
www.lehsa.ch
(men’s and women’s knitwear)
leywa GmbH
Fabrikstrasse
CH - 8756 Mitlödi
Tel.: +41 55 644 46 46
Fax: +41 55 644 46 47
www.leywa.ch
Madie's Fashion S.A.
Via Gaggiolo 5
CH - 6855 Stabio
Tel.: +41 91 647 11 53
Fax: +41 91 647 32 53
(womenswear)
Mammut AG
Industriestrasse Birren
CH - 5703 Seon
Tel.: +41 62 769 81 81
Fax: +41 62 769 81 00
www.mammut.ch
(sportswear, outdoor jackets)
199
Metzler & Co. AG
Hauptstrasse 33
CH - 9436 Balgach
Tel.: +41 71 722 21 43
Fax: +41 71 722 72 29
www.marcthombard.ch
(shirts and blouses, T-shirts &
sweatshirts for indep.)
Mitloedi Textildruck AG
Fabrikstrasse
CH - 8756 Mitlödi
Tel.: +41 55 647 88 33
Fax: +41 55 647 88 13
(womenswear)
Noga Mode S.A.
Via Orti 1
CH - 6928 Manno
Tel.: +41 91 605 48 88
Fax: +41 91 605 48 88
www.nogamode.com
(men’s and women’s wear)
Rosmarie Amacher & Co.
Dufourstrasse 167
CH - 8008 Zürich
Tel.: +41 43 456 30 00
Fax: +41 43 456 30 09
www.couture-amacher.ch
(womenswear)
Strellson AG
Sonnenwiesenstrasse 21
CH - 8280 Kreuzlingen
Tel.: +41 71 686 33 33
Fax: +41 71 688 64 94
www.strellson.com
(high priced men’s and
womenswear)
SwissTex Logistics AG
Funkenstrasse 10
CH - 4800 Zofingen
Tel.: +41 62 745 33 33
Fax: +41 62 745 33 00
www.swisstex.net
(menswear and womenswear)
TOPA Konfektions AG
Birkenstrasse 109
CH - 9443 Widnau
Tel.: +41 71 720 03 05
Fax: +41 71 720 03 07
www.topa-ag.com
(men’s, women’s and childrenswear, OPT)
Traxler AG
Unterdorf 7
CH - 8363 Bichelsee
Tel.: +41 71 971 19 43
Fax: +41 71 971 31 29
www.traxler.ch
(knitwear, shirts/blouses, ecological clothing men/women)
200
Vollmoeller Textil AG /
Jockey International
Bahnstrasse 21
CH - 8610 Uster
Tel.: +41 44 905 22 22
Fax: +41 44 940 53 33
www.jockey.ch
(men’s and women’s wear)
Zewi und Bébé-Jou AG
Knonauerstr. 58
CH - 6330 Cham
Tel.: +41 41 784 10 00
Fax: +41 41 784 10 01
www.zewiundbebe-jou.ch
(mid- / high-priced coats and jakkets for children)
Zimmerli Textil AG
Feldstrasse 25
CH - 4663 Aarburg
Tel.: +41 62 791 41 41
Fax: +41 62 791 38 72
www.zimmerli.biz
(high priced underwear)
Buying Associations
ez Fashion Center
TMC 3
Talackerstrasse 13
CH - 8065 Zürich
Tel.: +41 44 874 90 10
Fax: +41 44 874 90 19
www.ezfashion.ch
Intermeet Fashion
Felsenrainweg 17
CH - 8052 Zürich
Tel.: +41 44 302 11 62
Fax: +41 44 302 41 53
(womenswear)
INTERSPORT International
Holding AG
Obere Zollgasse 7
CH - 3072 Ostermundigen
Tel.: +41 31 930 71 11
Fax: +41 31 930 71 21
www.intersport.ch
(jeans and active sportswear in
mid price level)
201
Importers/Wholesalers
Baum AG
Aeschenvorstadt 48
CH - 4010 Basel
Tel.: +41 61 271 01 55
Fax: +41 61 272 51 54
(boutique/shop)
Conrad
Spalenring 123
CH - 4045 Basel
Tel.: +41 61 272 57 33
Fax: +41 61 272 57 11
(Importer/Distributor of mainly
menswear, only buy brands in
small quantities)
WE Switzerland AG
Im Langacker 16
CH - 5405 Baden-Dättwil
Tel.: +41 56 483 03 83
Fax: +41 56 483 03 70
www.we-fashion.com
(Importer/Distributor of men's
apparel, Dutch owned company)
Pandinavia Import Export
Spitalackerstrasse 63
CH - 3000 Bern 25
Tel.: +41 31 331 40 32
Fax: +41 31 333 06 93
(Importer/Distributor of men's
apparel)
202
Outerwear
UNITED KINGDOM
6
UNITED KINGDOM
SITUATION
The growth rates of the Gross
Domestic Product (GDP) in the UK
were higher in the 90s than in the
rest of the EU and Switzerland.
Great Britain can be described as
a ‘booming’ country, economic
development is comparable to
that of the US. This must also be
seen against the backdrop of the
UK’s painful restructuring process
in previous decades, that yielded
obviously successful results in the
end. Since 1995, the GDP growth
rate has been at constant prices
on average 2.8%. In 2004 it was
even at 3.2%. This is more than in
most other European countries.
Total expenditure of private households in the UK continuously
increased in the last few years at
constant prices by 2.8% with
1,094 billion £ in 2004. The reason
for this positive development is
that the unemployment rate
among the population has been
quite low: 4.8% in 2004. This performance is excellent compared
to the double digit unemployment
rates in other European countries
except Switzerland with 3.9%.
The UK is one of the three largest
countries in the European Union,
but has not yet entered the EU
Monetary Union. Especially since
the introduction of the € in beginning of 2002, the imports of clot-
hing (and other goods) to the UK
have been positively influenced by
the strong position of the British £
against the €.
Generally speaking, Great Britain
is still profiting today from the
structural reforms implemented
by Mrs. Thatcher with privatisation, deregulation and liberalisation
of the employment market.
6.2 THE MARKET FOR
OUTERWEAR
6.2.1 Market size
The UK remained the second biggest clothing market in the EU
behind Germany. UK consumers,
along with Austrian citizens,
belong to the biggest spenders
per capita on clothing in the EU.
While the import and export market increased over the years, the
local production fell rapidly by
approx. 1 bn. £. As a result of
these figures it is obvious that the
British fashion market is highly
dependent on other countries'
textiles.
According to the German Magazine Textilwirtschaft, the British
clothing market has a volume of
approximately 33 Billion Pounds
sterling. The market volume for
clothing in 2004 increased by a
quite dynamic 3.5%.
203
Table 6-1: Size of the British fashion market, 2001 - 2004
in m. £*
2001
2002
2003
2004
Import Market
9 400
10 075
10 610
10 859
Local Production
4 932
4 793
4 391
3 925
Exports
2 877
2 481
2 692
2 719
Source: BATC, Overseas Trade Statistics
Based on desk research it can be
stated that in general the patterns
of British consumers have
changed since 2004/2005. British
apparel retailers look back at a
period of 10 years of almost phenomenal growth rates. From
2000 to 2004, British retail expanded by 4.2% annually, whereas in
2005 the sales increase was only
1.9%; expenditures are decreasing.
A large proportion of British consumers has become more price
sensitive under the slogan: ‘Look
good – pay less’. This attitude
towards clothing consumption
explains to a large extent the
overwhelming success of the so
called British ‘Value Retailers’, of
which the ‘Top Seven’ sold clothing with a value of 5.2 Billion
Pounds sterling (2004). In the
same year the year the value
retailer market increased by 14%.
However, some consumers are
also willing to buy higher priced
and exclusive clothing. Good economic development in the UK in
the past few years has lead to an
increase of the consumer seg-
ment with more purchasing
power, e.g. the number of millionaires in the UK increased by
more than 80% between 2001
(230,000) and 2004 (425,000).
The tendency towards luxury is
also emphasized by strong brand
awareness.
Between 2002 and 2003, UK real
household disposable income per
head rose by 1.8 per cent compared with growth in GDP per head
of 2.0 per cent. Most consumers
with high income are normally in
the age group between 50 and
60 and manufacturers offering
highest quality garments meet a
strong and ever growing market
segment in the UK.
Good quality is also of increasing
relevance to the younger consumers. This is underlined by the fact
that clothing brands are of the
same importance to the young as
to elderly consumers, although
the younger consumers often can
not afford the branded items.
Whenever their financial situation
allows (often due to the wealth of
their parents) the young like to
buy brands (e.g. for jeans) and are
eager to show their fashion awareness.
204
6.2.3 Demographic characteristics
The UK has a population of 59.8
million inhabitants with slight
increases in population projected
for the next 10 years. It grew by
281,200 people in the year to mid2004, and the average growth
per year has been 0.4 per cent
since mid 2001. The age structure
indicates the most suitable consumer groups to address for the
respective product segment.
Market developments in terms of
shifts in the age groups can be
predicted. These demographic
forecasts may give hints on how
to address the age group concerning design and marketing. Also,
the kinds of clothing requested
may change in the future regarding general demand, quality, suitability, comfort standards, basic
designs and colours.
The age groups between 35 and
44 have the highest shares in the
British population today with 7.7%
(35 - 39) and 8.0% (40 - 44) of
total population. But the older age
groups of 45 to 49 also play a
significant role. In future, the younger consumer segment will
decrease more and more. The
tendency of falling birth rates in
the UK is a constant factor with
direct effects on the age and therefore consumption structure of
the population.
Manufacturers
from
abroad
should not neglect the increasing
‘age group’ of over 39 up to 59
years of age. More details about
the shares and developments of
the age groups concerned can be
taken from Figure 6-1.
Figure 6-1: Age structure of the British population by sex, 2005
United Kingdom: 2005
100+
95-99
90-94
85-89
80-84
75-79
70-74
65-69
60-64
55-59
50-54
45-49
40-44
35-39
30-34
25-29
20-24
15-19
10-14
5-9
0-4
male
2,5
2,0
1,5
1,0
0,5
1,0
0,5
0,0 0,0
female
1,5
2,0
2,5
205
Table 6-2 indicates the shares of
the specific age groups in the total
British population in 2005.
Table 6-2: Age structure of the British population in shares, 2005
5.5%
5-9
5.9%
10-
15-
20-
25-
30-
35-
40-
45-
50-
55-
60-
65-
70-
75-
14
19
24
29
34
39
44
49
54
59
64
69
74
79
6.4%
6.5%
5.5%
6.2%
6.8%
7.7%
8.0%
6.9%
6.1%
6.5%
5.1%
4.4%
3.8%
3.2%
6.2.4 Retail Sales by product category
The British market for outerwear
shows that womenswear is at a
double level (and partially above)
compared to menswear.
As indicated in Figure 6-2 the retail
sales of clothing in the UK amounted to a total of approximately 43
500 million € (yellow line in the
graph) in 2004. The total clothing
retail sales have risen on average
yearly by 4.9% from € 38.5 billion
in 2001 to € 43.5 billion in 2004.
Figure 6-2: Clothing turnover by sex, 2001-2004
50
45
40
35
in million £
0-4
30
Men & boys
25
20
15
Women,
girls & infants
10
Total
5
0
2001
2002
2003
2004
Source: CBI, 2004
The market for women’s and girl’s
wear represents 68% of the total
market and is therefore the largest sector for outerwear.
206
80+
4.4%
Table 6-3: Shares of outerwear by sex and percentage change, 2004
in % of
total value
Formal
Clothing
Men
Women
41
45
Change
from
03-04
in % of
total value
Casual wear
Men
Women
31
31
Change
from
03-04
+1%
Coats
+11%
Outdoor jackets
Suits/jackets
+2%
Shirts
-5%
Trousers
+3%
Jumpers/cardigans
+3%
Dresses/skirts
+3%
Pullovers
+1
Shirts/blouses
-3%
Trousers
+3
Basic
leisure wear
T-shirts
22
20
Active sports
wear
+8%
6
4
Track/jogging suits
-
Tops/bodies
-
Tops and shorts
-
Shorts
-
Other
-
Sweaters/fleeces
-
Jeans trousers
+1%
Source: CBI Market Survey Outerwear, 2004
Although formal wear is more and
more substituted by casual wear,
as in other European countries,
the UK is still the country with the
highest market share of formal
wear. As Table 6-3 shows, the
share of formal clothing is at a
comparatively high level of 45%
for women and 41% for men. In
this context, it should also be
mentioned that in the segment of
children‘s clothing, formal wear is
also strong because of the use of
school uniforms in Great Britain.
This has great after effects on the
adult population. Casual wear and
basic leisurewear in particular
have - compared to other
European countries - lesser but
increasing importance among
British consumers. According to
research conducted, designer
(i.e. branded) casual clothing has
become more and more popular.
The most preferred clothing items
are outdoor jackets (+1%) for men
and women as well as trousers
(+3%) for men and cardigans/jumpers for women (+3%).
207
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 (< 5% - lowest rate for
the last 25 years) 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
As you can see from Table 6-4,
multiple clothing chains and variety stores took 52% of UK clothing
sales
by
value
in
2004.
Department stores and mail order
operators represented approx.
10% of the sales in 2004. The mail
Table 6-4: Clothing retail channels by
market share, 2000 - 2004
in % of total value
2000
2002
2004
Specialists
47
47
48
16
15
14
Clothing multiples
31
32
34
Non-specialists
53
53
52
Variety stores
19
17
18
4
5
5
Department stores
9
10
10
10
10
9
5
4
4
Sports shops
6
7
6
100
100
100
Source: Office of National
Statistics (ONS), 2005
Total
order sector has held share as
some multiple operators have
entered the catalogue market.
Sports shops took 6%. Independents commonly sell upmarket
branded clothing at higher price or
more expensive own brands. In
2001, these outlets represented
14% of total sales by value.
2001-2004 and further growth is
expected for the coming years.
These positive economic data for
the British explain to a large extent
the fact that UK consumers’ most
favourate leisure time activity is
‘shopping’, just like the slogan:
‘Shop until you drop!’
208
The UK remainded the second
biggest clothing market in the EU
behind Germany. UK consumers,
along with Austrian citizens,
belong to the biggest spenders
per capita on clothing in the EU.
In comparison to other European
countries, the share of clothing
expenditure compared to the
total consumption climbed continuously since the mid 90’s. The
per capita consumption for clothing in the UK today ranks in the
middle of the EU and Switzerland.
Demographic figures support the
thesis that outerwear expenditure
will grow also in the near future. In
2004, expenditure on clothing
increased at constant current prices by 4.7% compared to a rise in
total expenditure by 5.9%. More
details about the developments
from 2001 to 2004 can be taken
from Figure 6-3.
Figure 6-3: Comparison of household expenditure on clothing and
total household expenditure,
2001 – 2004
Table 6-5 illustrates household
expenditure by age of head of
household. The figures indicate
that for men, expenditure on clothing rises with age, but seems to
be quite constant especially for
men between 30 and 64, and only
falls again at a higher age.
Expenditure for women‘s outerwear is not only higher in all age
categories than for men, but also
shows a different life cycle pattern. In the 20 years between the
age of 30 and 49, average weekly
expenditure is £10.20. In the 15
years between 50 and 64,
women’s expenditure shows
nearly the same level at £9.20
weekly. Assuming that the age of
the head of household stands for
the age of the female consumer, it
means that 50 to 64 year old
women is the age category with
the highest expenditure on clothing. The reason for this could be
sales of luxury items for wealthy
clientele in shops like Burberry‘s,
Barbour and Pringle.
6
5
4
3
2
1
0
Source: Office of National Statistics (ONS): Consumer Trends 2005 seasonally adjusted - at constant current prices (Basis: average 2.4 persons household)
209
Table 6-5: Weekly household expenditure by age of head of household, 2004
in £
Under 30
30-49
50-64
65-74
75+
Total
Percentage
Men's outerwear
5.20
5.90
5.00
2.00
0.70
4.40
29.5%
Women's outerwear
7.40
10.20
9.20
4.80
2.70
8.00
53.7%
Boys' outerwear
0.60
1.70
0.30
0.20
0.00
0.80
5.4%
Girls' outerwear
0.40
2.40
0.40
0.30
0.20
1.10
7.4%
Babies' outerwear
1.30
0.90
0.50
0.10
0.10
0.60
4.0%
Source: ONS Family Spending 2004 - based on weighted data and including children’s expenditure
Expenditure for boys' and girls'
clothing is highest in households
where the head of household is
between 30-49 years old. The
numbers show that babies outerwear is bought mostly by younger
families or single parents under 30
years. The spending of households on clothing for the young
and very young consumers (boys,
girls and babies) represents only
16.8% of the total budget for clothing.
The ‘International Data Base
Study’ of the U.S. Bureau of the
Census predicts positive demographic effects on total consumer
expenditure (incl. clothing) for
another twenty years considering
that the group with the main
expenditure for women is between 50 and 64 years old. These
demographic effects have to be
considered by the clothing manufacturers wishing to penetrate the
British market e.g. in terms of styling and designing for the ‘older
consumers’, who are already
spending relatively more for clothing and will increase spending in
the future.
The UK has been a price oriented
market in the past, but continues
to be more and more of a market
with consumers valuing quality.
Sales ‘difficulties’ in the middle
market segment are probably
more of a management problem
(e.g. at Marks & Spencer which
has had serious marketing and
sales problems in the last 2-3
years) than a general consumer
trend.
The main factor in buying decisions of British consumers is disposable income, which has continuously increased in recent years.
Retailers with the appropriate marketing concept have shared in this
positive development. As a consequence of the booming economy
compared to other markets,
people are willing to spend more
on higher priced items. On average, around 6% of total household
expenditure is on clothing (ONS,
Family Spending Survey) independent from total expenditure in the
respective income classes. It can
be concluded that the percentage
of expenditure on clothing from
total income is stable throughout
all income classes.
210
Clothing prices have been declining since the mid 90’s. The fierce
competition on the UK clothing
market has brought down prices
year after year. In most outerwear
sectors consumers buy more
items, but the growth of the clothing market in value is lower due
to price deflation.
The national statistics of ONS give
a clear picture of the situation.
Especially in 2001/2002, prices for
clothing went down in the UK
while the overall prices of consumer goods rose on average. In
2001, the general price inflation on
consumer goods was + 2.2%.
However, the prices for garments
fell 4.5%. In 2003 the clothing
price index only dropped by 1.9%,
which is one of the lowest deflations since the mid 90s. More
6-4.
Figure 6-4: Inflation rate of clothing relative to national inflation rate,
2001 – 2004
3
2
1
0
-1
-2
2001
2002
2003
2004
Clothing price index
Consumer price index
-3
-4
-5
-6
Source: Office of National Statistics (ONS): Consumer Trends, 2005 – deflators.
211
6.3 IMPORTS
6.3.1 Total imports
While UK production has decreased, imports of clothing increased
in recent years. The UK is the
second largest EU importer in
terms of value and accounted for
18 percent of EU total imports of
outerwear in 2002. The strength
of the British Pound can be seen
as the main motivation by the
importers as to why the imports
have been so attractive. As a logical consequence, the ‘Overseas
Trade Statistics’ show that imports
for ladies and men’s clothing continuously increased over the last
few years. Although the import
level of womenswear is higher
than for menswear, imports of
men’s clothing seem to have
grown stronger.
Looking at the total figures in Table
6-6 and Table 6-7, the import
share of women‘s clothing in total
imports is higher than that for men
mainly due to a generally higher
consumption of women‘s clothing. The national clothing production companies have been
reducing their output year after
year and the imports are not only
replacing the domestic, but there
are also - with a tendency of lower
prices - more clothing items sold
in the UK than ever before. UK
imports amounted to approximately 18% of total clothing imports
to the European Union in 2004.
Table 6-6 illustrates the import
developments of knitted outerwear from 2002 to 2004 for those
outerwear items analysed for this
marketing handbook. Although
the consumption of womenswear
is higher than that of menswear,
the import figures show that the
import of knitted outerwear
(coats, suits, shirts/blouses) for
men in 2004 at 556.4 million € is
nearly as high as for women at
825.4 million €. It should be noted
that the imports of knitted outerwear for women and girls have
decreased from 2003 to 2004 by
0.2%. The highest import increase
for a specific product segment is
‘Other Sportswear’ with a growth
of 22.5% in 2004 compared to
2003 (HS Code 61.14).
The total import of knitted products increased in terms of value
from 2002 to 2004 by approx.
8%. The percentage of knitted
outerwear imported from countries outside the EU is around
65%.
212
2002
2003
2004
Tons
1 000 €
Tons
1 000 €
Tons
1 000 €
3 794
71 306
3 348
59 976
3 920
67 907
Suits, jackets, ensembles, trousers, shorts
etc. (61.03)
114 289
191 384
11 898
174 496
14 096
200 933
21 830
347 081
21 841
297 322
22 162
287 514
Total
139 912
609 772
37 086
531 795
40 178
556 353
Total extra EU
33 705
485 036
33 390
411 015
35 524
420 899
6 696
135 587
7 833
125 206
8 798
130 478
Suits, ensembles, jakkets, dresses, skirts,
trousers (61.04)
25 921
521 521 22
31 799
496 753
230 738
11 461
204 762
11 746
216 714
For men or boys
Shirts (61.05)
For women or girls
Blouses and shirt blouses (61.06)
10 848
30 914
478 159
Total
43 465
887 547
51 093
826 72
51 458
825 351
Total extra EU
37 019
668 153
38 805
589 233
42 039
588 185
1 527 233
102 173
1 593 099
134 166
1 869 015
For both sexes
Jerseys, pullovers,
etc. (61.10)
99 919
1 935 260
106 771
1 699 121
128 828
1 693 816
17 619
323 565
18 785
285 348
21 402
310 667
755
16 170
728
12 493
1 019
16 6097
Total
206 811
3 802 219
228 456
3 590 062
258 414
3 890 107
Total extra EU
170 729
2 786 974
185 676
2 570 856
209 219
2 854 136
swimwear (61.12)
4 832
138 273
6 656
149 109
8 282
167 641
3 331
74 712
4 400
77 674
5 511
100 222
Total
8 163
212 985
1 056
226 784
13 793
267 863
Total extra EU
6 594
160 629
9 044
168 547
10 916
199 587
88 518
Active Sportswear
213
woven outerwear into the UK.
From 2002 to 2004, total imports
of woven outerwear for women in
value terms increased at a greater
rate than for men. Imports of
woven menswear decreased
from € 2,542 million in 2002 to €
2,435 million in 2003 and increased in 2004 to € 2,515 million.
The import volume of woven
menswear rose from 126 million
tons in 2002 to 142 million tons in
2004. Import prices for woven
menswear decreased significantly. Menswear, and in particular
woven wear, played an important
role in recent seasons, resulting in
some price increases.
Woven womenswear imports
increased from 2003 to 2004 and
amounted to € 3,847 million in
2004. Whereas ladies suits, outfits, jackets, dresses, skirts and
trousers (HS Code 62.04) and
coats, capes, anoraks and windbreakers (HS Code 62.02) were
imported more in 2004, blouses
(HS Code 62.06) suffered a
decrease of 1% (value terms).
The clothing exporter selling into
the UK can easily select ‘his specific product group’ from the import
Table 6-6 and Table 6-7 in which
he is working (HS Code indicated
in column 1) and analyse the specific import developments in
terms of value and volume from
2002 to 2004.
The increase of imports in 2004
compared to 2003 is not valid for
all outerwear product categories
for men in value terms. Shirts
decreased by 31.9 million € to
586.8 million €, similar to coats,
anoraks and windcheaters which
decreased by 14.2 million € to
307.9 million €.
214
2002
2003
2004
Tons
1 000 €
Tons
1 000 €
Tons
1 000 €
15 521
313 941
18 400
322 192
Suits, jackets,
ensembles, trousers,
shorts etc. (62.03)
76 595
1 539 386
81 422
1 493 727
88 966
1 620 470
Shirts (62.05)
33 977
688 278
36 481
618 688
34 567
586 777
Total
126 092
2 541 605
136 303
2 434 608
142 518
2 515 157
Total extra EU
103 970
1 775 892
116 521
1 705 069
123 348
1 771 791
18 697
396 169
25 387
415 207
28 695
441 767
Suits, ensembles,
jackets, dresses,
skirts, trousers
(62.04)
115 942
2 657 584
139 981
2 612 143
171 871
2 763 047
Blouses and shirt
blouses (62.06)
34 431
714 982
34 384
647 920
40 320
641 779
Total
169 069
3 768 736
199 752
3 675 270
240 886
3 846 594
Total extra EU
150 710
2 934 406
175 865
2 879 929
223 689
2 055 027
Babies garments
(62.09)
6 898
141 716
7 728
122 817
8 432
139 667
Other incl. impregnated (62.10)
11 757
235 471
13 418
225 124
11 390
203 642
Total
18 655
377 187
21 146
347 914
19 822
343 309
Total extra EU
13 863
276 080
14 526
243 545
15 538
253 636
For men or boys
Coats, anoraks,
windcheaters etc.
(62.01)
18 986
307 910
For women or girls
Coats, capes, anoraks, windjackets etc.
(62.02)
For both sexes
215
Unfortunately, there is no information available via Eurostat and
other sources about the OPT
business in the UK, as this kind of
subcontracting business is relatively unknown.
UK domestic clothing production
has declined, whereas imports
have increased. This development has opened and will open
good sales opportunities to
manufacturers; especially those
from developing and emerging
countries. Table 7-8 gives a good
survey on the performance of the
20 leading clothing suppliers to
the UK. The share of clothing
imports from non-EU countries is
74.4%. EUROSTAT states that in
2004, € 13.1 billion of outerwear
was imported to the UK: € 9.7 billion outerwear from outside the
EU and € 3.4 billion outerwear
from EU countries. While the
imports from outside the EU
decreased by 2% in 2003 and
increased in the year 2001 by 2%,
the imports from EU countries
declined significantly by 6% in
2003 but increased by 7% in
2004. That shows that the
imports from EU countries rose
more than imports from outside
the EU.
The main import countries are
China (1,916 million €), Turkey
(1,452 million €), Bangladesh (820
million €), Italy (721 million €) and
Hong Kong (688 million €). Four of
these increased their exports to
the UK; only Hong Kong reduced
it by 5%.
Among the ‘winning countries’ Sri
Lanka has an excellent performance with +21%, the highest
increase among the 20 leading
clothing suppliers to the UK. The
second best performing country
is Bangladesh with an increase of
+19% followed by Pakistan with
+14% and Spain also with +14%.
The ‘losing’ countries are Belgium
(7%), Portugal (6%), Indonesia
(6%) and Hong Kong (5%), (value
terms 2004 compared to 2003).
Looking at the country shares in
total import, China maintains the
major part with 14.6% of total
imports. Turkey also plays a significant role with 1,452 million € and
a share of 11.1%. The main Asian
countries are China (14.6%),
Bangladesh (6.3%), Hong Kong
(5.2%), India (3.5%) and Sri Lanka
(3.2%). These countries alone
represent more than a third of
total clothing imports.
216
Table 6-8: Largest supplying countries of outerwear, 2002– 2004
Positon
Country
2002
in 1000 €
Change
from 2002
2003
in 1000 €
Change
from 2003
2004
in 1000 €
1
China
1 754 459
-2%
1 725 542
11%
1 916 039
2
Turkey
1 343 308
3%
1 386 655
5%
1 451 909
3
Bangladesh
596 325
15%
687 470
19%
820 158
4
Italy
688 633
-6%
650 349
11%
720 908
5
Hong Kong
795 719
-9%
721 225
-5%
687 543
6
Romania
570 914
1%
576 744
8%
622 931
7
France
465 488
16%
539 428
11%
598 604
8
Morocco
536 564
-12%
472 241
6%
500 909
9
Germany
502 447
-5%
476 132
5%
498 883
10
India
454 026
-8%
418 485
9%
456 048
11
Sri Lanka
385 924
-9%
351 784
21%
424 004
12
Portugal
407 417
0%
408 380
-6%
384 527
13
Belgium
473 067
-16%
398 354
-7%
369 010
14
Indonesia
415 020
-17%
343 417
-6%
321 959
15
Netherlands
287 089
-18%
236 338
12%
264 945
16
Pakistan
181 233
7%
193 911
14%
220 746
17
Mauritius
190 989
-9%
174 653
4%
181 174
18
Thailand
199 043
-11%
176 214
2%
179 497
19
Cambodia
157 207
-7%
145 417
12%
163 070
20
Spain
80 563
58%
127 434
14%
145 827
Intra-EU15
3 354 364
-2%
3 292 171
2%
3 359 657
Extra-EU15
9 713 310
-6%
9 137 179
7%
9 744 613
Total
13 067 674
-5%
2 429 351
5%
13 104 270
217
6.4 TRADE STRUCTURE
The British ‘retail scene’ with its
ideas and concepts is acknowledged worldwide, so that even
representatives from American
department stores travel to
London to learn from the British
retailers. Names like Debenhams,
John Lewis, Selfridges, Harrods,
Harvey Nichols or Liberty have,
though they have developed
strongly, kept their personality.
Although the retail business was
expected to be affected by the
slowing down conjuncture in
2005 and the effects of the terror
attacks in London in July 2005, at
the end the results were not so
bad with sales in November 2005
up 4.6% compared to the previous year (Source: Retail Sales
Monitor of the British Retail
Council in collaboration with
KPMG, December 2005).
Looking at the basic structures in
the British retail trade, the major
statement is that the retailers
have gone through a tremendous
process of concentration in
recent years. Ten companies control more than 40% of the retail
trade. British retail structure is
dominated by clothing multiples
with a market share of around
25%. The biggest players in this
segment include the ‘Arcadia
Group’ and ‘Next’. Department
and variety stores also play a
dominant role with a market share
of 25%, of which Marks &
Spencer (M&S) is the most important variety chain in the UK. As in
other
EU
countries
and
Switzerland, with the exploding
importance of the clothing chains,
the role of the independent retailers (boutiques etc.) has gone
back to a market share of about
14%. The mail-order houses
represent approximately 10% of
the clothing retail market (all data
from 2004).
The improved management of
the ‘supply chain’ of retailers has
changed the whole retail structure
in the UK and Europe. This is even
truer for Great Britain, where the
degree of concentration at retail
level is even higher than in other
European countries. With a close
look at price retailers in the UK it
can be clearly observed that they
are optimising their supply chain.
Buyers in the purchasing departments are not only buyers but
also product and brand managers. Also, low stock keeping and
concentration of the purchasing
power on few big suppliers are
characteristics of the UK retail
market.
Along with this development, the
competition among the clothing
suppliers from non-EU countries
has also increased and demands
with regard to service, reliability
and keeping of high quality standards have to be fulfilled by companies that wish to remain on the
supplier’s lists.
218
A further strong development in
the British retail trade - apart from
price orientation - is the emphasis
on more service and attractive
shop interiors. Consumers are not
only prepared to invest in the product, but also accept higher prices for the distracting experience
of shopping. Buying of clothing
becomes a special and joyful
‘event’ achieved through a variety
of entertaining and extensive
store environments.
According to MARKS & SPENCER, the market has polarised
into three segments:
Formerly known as discount retailers, companies like MATALAN
have initiated new fashion
designs, sub-brands and manage
- in comparison to Marks &
Spencer’s – clearly positioned
product lines. In general, buying
clothing for little money has been
‘de-stigmatised’ through the higher qualities and branding strategies of the retailers.
According to a study by Forester
Research, 35% of British Internet
users
buy
clothing
online.
Traditional retailers like John
Lewis, Tesco; Argos and Next
profit particularly from this development. Experts assume that in
10 years, 15% of the retail turnover
will be via internet.
BHS (British Home Stores) variety
store started in the mid price segment and has moved more to an
image as a discounter with relatively large reductions in price. The
strategy of BHS targets clothing
for adults and a special range for
kids. All these discount retailers
follow the trend of the consumers
looking for more at less money;
this means more choice, more
‘adventure’, more service and
more efficiency.
1. Premium Fashion Brands,
2. Fast ‘One way’ Fashion and
3. ‘Commoditisation’ of basic products (under the assumption that
they will be regarded as simple
commodity items which are sold
only via low price).
‘Verdict Forecasts Clothing &
Footwear to 2006’ (Verdict
Research, London 2001), forecasts that competition for the
middle market segment will
increase even more. According to
this analysis, expenditure for clothing in the UK to 2006 will increase by only 8.8%. The best sales
chances are predicted for the
supermarkets, as the British consumer by 2006 will spend 3 billion
£ in this kind of retail outlet. These
discounters will be among the
winners as well; they will increase
their market share by an increase
in turnover by 27% until 2006. The
upper market segment will have
grown by 16% from 2001 to 2006.
219
Table 6-9 gives a good survey of
leading clothing shops/chains in
the UK. Besides the clothing
chains of the powerful ARCADIA
Group, (sales volume €1.02 Billion
in 2004) there are other clothing
multiples like NEXT with 333 outlets and a sales volume of €1.09
Billion. Another important clothing
multiple is BHS with about 160
outlets. C&A, one of the largest
clothing retailers in Europe, tried
to survive in Great Britain after
experiencing serious marketing
and sales problems, but finally failed with large losses, gave up its
stores and withdrew totally in
2001. In the meantime, C&A in
Germany, for instance, has
modernised its sales strategy and
has improved its previously poor
image tremendously.
Looking at the sales figures of
other important clothing stores,
shops like the MATALAN chain
(137 outlets – discount strategy),
MacKay’s (271), ETAM (212), New
Look (573 – discount strategy),
ALEXON (659), MONSOON (189)
trail a long way behind NEXT.
Woolworth is the second largest
store chain for childrenswear after
M&S. ADAMS is the leading clothing chain dealing only in childrenswear.
Table 6-9: Leading clothing retailers by turnover, 2004
Position
Brand
1
Marks & Spencer
1,742
10.2
315
2
Next
1,085
6.3
333
3
Arcadia
1,022
5.9
2
4
Debenhams
683
4.0
97
5
Asda
612
3.6
215
6
Matalan
493
2.9
137
7
Tesco
451
2.6
588
8
Bhs
401
2.3
163
9
New Look
351
2.1
573
10
John Lewis
306
1.8
25
7,144
41.8
17,088
100.0
Total of Top 10
UK Market
Turnover
in Euro
Market
Share in %
Number
of Outlets
Source: EU Market research report, 2004
220
The department store MARKS &
SPENCER has the highest sales of
clothing at €1.74 billion. The
second largest department store
that also has an important clothing
department is DEBENHAMS,
(clothing sales € 683 million) ranking among the five largest clothing retailers in the UK. They have
97 stores in the UK and have been
very successful by running an
‘own retail brand strategy’ with
more than 50 own brands! The
Home
Shopping
Catalogue
‘Debenhams Direct’ has been
launched successfully. Other
department stores are HOUSE OF
FRASER (0.84 Billion €) and JOHN
LEWIS (0.36 Billion €). MOTHERCARE is the largest department
store for babies and children.
Among the mail-order houses,
GUS and N BROWN are leading.
The well known ASDA (George)
and the expansive TESCO are the
two largest supermarkets ranking
in position 5 (five) and 7 (seven)
among all clothing retailers in UK.
her percentages in France and
Germany.
The shrinking process of the smaller independent retailers has
come to a standstill and the market has stabilized at a low level.
More than 90% of independent
retailers do not buy/import from
overseas clothing suppliers but
source abroad through their buying associations.
Trend: decreasing
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, as well as home service activities, the women’s chains Dorothy
Perkins, Evans, Top Shop, Miss
Selfridge and Wallis, the menswear
chains Burton Menswear and Top
Man with a market share of
approx. 6% and clothing sales of
around 1.02 billion €.
6.4.3.1 Retailers
retailers
The market share of independent
clothing retailers has been dropping slowly over the past three
years (2002-2004). In Great
Britain, 14% is sold through independent shops, which is rather
low compared with the much hig-
Despite the fierce competition in
the retail industry, the ARCADIA
Group was able to increase its
sales volume by 6.8% in the business year 2004/2005. The CEO
of the Arcadia Group, Mr. Philip
Green, achieved EBIT of 18.4%.
The Arcadia Group buys separately for each of its companies and
each product group and there are
buyers responsible for each product segment.
221
The TOPSHOP chain, also belonging to Arcadia, has almost reached a cult-status among fashionable British consumers. They
offer the latest young fashion and
have enlarged their services including ‘style consulting’, a VIP
Service sending a selection of clothing items home and a special
department for pregnant women
with extra large changing rooms.
Those luxury shops that have traditional brands such as BURBERRY‘S, BARBOUR and PRINGLE
play an important role for consumers over 45 who have the
appropriate income to buy quality
collections. Burberry has been
successful in re-launching its traditional labels and combines higher
quality
with
higher
prices.
Burberry‘s
consumer-oriented
and elaborate marketing led to a
sales increase. Similar developments can be detected for the
retailers
Daks,
Aquascutum,
Mulberry, Holland and Holland and
Jaeger who combined classic
brands with current market trends.
The more sophisticated taste of
consumers and strong brand
awareness is reflected by the
trend for the more upmarket retailers such as the department store
SELFRIDGES and the clothing
chain HOUSE OF FRASER. Luxury
shops like CARDINGTON, LIBERTY
and HARVEY NICHOLS with the
Hong Kong-based owner Dickson
Concepts are considering expansions and refurbishments of their
shops because of good profits.
Cardington purchased the cou-
ture houses Hardy Amies and
Norman Hartnell, Liberty re-launched its Regent Street store not
only for Londoners but also for
shopping tourists. Harvey Nichols
will open more shops around the
UK in addition the ones in London
and Leeds.
As 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. 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.
Market share: 25 % in 2004
Trend: increasing
222
Among the clothing retailers, the
department store MARKS &
SPENCER (M&S) in particular suffered from fiercer competition and
profits that turned into losses at
the end of the nineties. However,
with sales of around 1.7 billion €,
M&S is still the largest British clothing retailer with a share of 10.2%
in the total clothing market.
With its middle priced items and its
315 stores, M&S, at least in the
past, was sometimes viewed as
old-fashioned or at least not very
consumer oriented and with unfocused areas in its outlets. On the
one hand it did not offer very
cheap clothing to convince
through price, and on the other
hand, it did not offer highest quality and had disregarded the
increased brand consciousness
of the British consumer. At the
same time, buying relations to
domestic suppliers proved to be
too unsuccessful. The manufacturer William Baird, for instance, supplied 7% of M&S clothing. Despite
long-term
partnerships
with
William Baird, M&S decided to
cancel and now buys from outside the country and therefore follows the purchasing strategy of its
competitors. In other European
countries
like
France
and
Germany, M&S had to exit its retail
engagement. M&S also terminated US activities by the end of
2001.
Activities are now concentrated
only on Great Britain and it seems
that the new efforts will prove to
be successful. A journalist specialised in the UK retail market suggests that the key for the better
performance of M&S was better
fashion, better prices and a faster
flow of goods. A M&S employee
stated that the ‘perfect’ campaign, which mediates the message of giving the ‘ideal standard’
design M&S, achieved more sales
– not only in the womenswear
segment but also in the menswear segment. Moreover, there is a
programme for general refurbishment of the stores and the outlets
are updated and rearranged
across the country. To compete
with the small chain stores and the
discounters, M&S plans to react
with an aggressive price strategy
and low entry price ranges.
The DEBENHAMS department
stores are operating more successfully, with sales of 2 Bn. £ in
2005. They had the excellent
‘Marketing Idea’ to offer a range
called ‘Designers at Debenhams’
offering exclusively developed
collections at affordable prices.
Among all department stores,
JOHN LEWIS has gained most
market share with a total of 1.8% in
2004. There are also HOUSE OF
FRASER, ALLDERS and SELFRIDGES in the market, but MARKS &
SPENCER still keeps the no. 1
position.
Market share: 25 % in 2004
Trend: stable
223
6.4.3.1.5 Textile discounters and
The major currently active clothing
mail-order business companies
are the British owned companies
GREAT UNIVERSAL STORES
(GUS) and LITTLEWOODS Home
Shopping in co-operation with
Arcadia and Empire Stores
(French PRP Group). In this segment, customers can order within
given bank credits from the mailorder companies. However, mailorder houses lost 10% market
share from 2002 to 2004.
6.4.3.1.6 Supermarkets
The mail-order house N BROWN
sells its products through a direct
mailing marketing strategy. The
German OTTO GROUP owns the
mail order companies GRATTAN
and FREEMANS. An employee of
Freemans has given the information that the whole process of buying from foreign suppliers in mailorder business depends on the
publishing of the catalogues. In
addition, manufacturers from
abroad have to recognize that the
lead times are quite long. The products have to be photographed
and there is more preparation
necessary than high street stores
have to face. The penalties for
suppliers not performing in the
requested way are quite high.
Trend: decreasing
In 2005, the London based retail
analysts ‘Verdict Research’ published that in 2004 the ‘Top Seven
Textile
Discounters
and
Supermarkets’ are: George at
Asda, Matalan, New Look,
Primark, Tesco, TK Maxx and the
Peacock Group with a market
share of 16% in the British apparel
market.
The number one in terms of
growth rates is TESCO, which
achieved an increase of 28% in
2004 with its clothing brands
Cherokee, Florence and Fred, followed by TK Maxx with a 17%
increase in sales. Tesco’s brands
Cherokee and Florence & Fred
remain the most expanding clothing brands in the UK. Following
its competitor Asda, Tesco started
a pilot project with two non-food
stores in October 2005. Tesco
achieved an annual turnover of
700 Mn. £ (2004) in apparel only,
the total sales of the Tesco Group
were 37 Bn. £.
Looking at the sales figures, ASDA
is the largest ‘Value Retailer’ with a
turnover of 2 Bn. £. In the supermarket segment the supermarket
ASDA (Wal-Mart) with half of
supermarket clothing sales, runs
its clothing under the label
GEORGE.
224
It can be predicted that the battle
in the mainstream market of
middle priced clothing will continue. The pull out of C&A from the
British market has implied an
ongoing fight among the retailers
to gain the consumers who previously bought from C&A. It is
reported that mainly the discounters and the so-called ‘value for
money chains’ like PEACOCKS
and MATALAN have profited from
the pulling out of C&A, but BHS
which covers the middle priced
clothing, and Next have also done
so.
Market share: 20% (estimated)
Trend: strongly increasing
In addition to retailers and wholesalers that import clothing to the
UK, in some cases UK manufacturers partly outsource their production activities to manufacturers
abroad. UK clothing manufacturers (mainly brands) have started
outsourcing with the strong
increase of production costs in the
UK, mainly in Eastern Europe and
Northern Africa. Many products
(e.g. most of the knitted outerwear) are bought from Asia and
Turkey on a ‘finished product’
basis (f.o.b. business).
British clothing ‘manufacturers’ are
more management and marketing
units than producers. They mainly
concentrate on the design and on
questions of current fashion as
well as on marketing and sales.
The brands sell their products to
selected distribution channels that
correspond with their marketing
strategy. In any case, practically all
British clothing brands source products abroad in one way or another and offer various sales opportunities for clothing manufacturers
from abroad.
6.4.3.2.2 Central Buying Associations
Co-ordinated buying through central buying associations is a way for
smaller UK retailers to gain more
purchasing power. Since the clothing market in the UK is highly concentrated, with only a few big players who mainly buy directly from
clothing manufacturers and there
is little market share for small independent shops, the importance of
central buying associations in the
UK is still low.
In Great Britain, importers/wholesalers have often taken over the
‘buying function’ for smaller retailers, as the latter do not have the
know-how and the means to
import goods on their own.
There are different methods of
indirect distribution from abroad to
the various clothing retailers in
Great Britain. One option is that
local ‘agents’ identify the clothing
suppliers abroad, but the UK retailer is still the one who negotiates
with their in-house buying team
and organises all the logistics including shipping etc.
225
Most often British retailers use
several forms of indirect contacts.
Roughly speaking, half of these
agents or wholesalers are located
in the UK and half are located outside the UK. Agents are used by
retailers to identify appropriate
suppliers, to outsource the complete handling and control including communication with the supplier, the safeguarding of quality
standards
(especially
for
womenswear), the complete logistics including the import procedures, the production abroad
according to ecological and social
standards (code of conduct) etc.
A further option for the clothing
manufacturer from abroad is selling through regional agents in
Great Britain. The condition is
whether the manufacturer has a
clear marketing strategy with a
market oriented collection for the
British market. The basis is an
detailed ‘Business Plan’. The
manufacturer from abroad should
consider that the area of ‘Greater
London’ is highly competitive and
it might be more advantageous to
start the market entry in areas like
Manchester, the North West or
even Ireland.
For most suppliers to the UK market, indirect selling is the first way
to go. UK wholesalers are infrequently mentioned, rarely visible,
and searching for them on the
Internet proves to be very difficult.
Market research has shown that
clothing wholesalers do not play
an important role in the UK. Some
British retailers do buy with the
help of intermediary companies,
and these wholesalers might even
be outside the UK.
The principles and possibilities of
indirect selling to the UK might be
illustrated as follows: If the manufacturer’s clothing is sold for
instance at the shops of Marks &
Spencer in the UK, the import may
be done through a company
somewhere in Europe and not
necessarily in the UK. This can be
confusing for clothing manufacturers from abroad when trying to
get in contact with a buyer who
only
buys
‘within
Europe’.
Nevertheless, selling clothing to
the UK also means working, in
general, with manufacturers in
Europe that export to the British
market.
Selling to wholesalers can be
more profitable, because desperately trying to sell directly to the
retailers may not work and might
result in no orders at all, as many
British retailers ‘source’ through
those wholesale and import units.
The main function of wholesalers
cannot be described merely as
‘buying and selling and gaining a
high margin’. The wholesalers also
know most of the details about
the retailer’s needs. Other tasks
and functions of the wholesaler
within the sourcing process include the know-how about the standards of the designs and as well
as knowledge of the technical
aspects of the products to be
produced.
226
The British wholesaler normally also
advises the manufacturer to put the
appropriate label on the product, as
the concept of own ‘Retail Brands’
has become of crucial importance
to the retailers in the UK offering
them more independence from the
clothing manufacturers and running
an own brand concept with better
margins. The British wholesaler normally is fully involved in these processes to guarantee the ‘right product at the right time in the right
place’.
6.5 UK FASHION TRADE FAIRS
The UK has achieved a better
image for clothing design in the last
few years and is competing with
France and Italy. With London as a
major fashion centre in Europe, the
United Kingdom has gained more
importance as a ‘Fashion Country’.
In addition, a great deal of support
from the British government has
been an encouraging factor.
‘London Design’ is said to have a
very modern or even avant-garde
style and influences the European
fashion scene to a certain extent.
As a consequence of the appreciation of British clothing and design,
trade fairs have increased in recent
years. According to market
experts, London offers the major
clothing fairs in UK. There have
been many clothing fairs in Great
Britain in the last 5 years, and the
British clothing fair market is extremely fragmented. Still today, it is
highly recommended to check
exact dates and venues of the
smaller British fairs beforehand, as
the ‘fair scene’ keeps on changing
its names and locations.
The main trade fair for clothing in
Great Britain is the London Fashion
Week. Three more fairs take place
parallel to the London Fashion
Week: Pure, Moda UK and Margin
London. All these fairs take place
twice a year (February and August).
At Pure, contemporary and classic
collections are shown, Moda UK is
a trade fair for men’s and women’s
clothing and accessories. Other
trade shows in Harrogate (PRIMA –
Lingerie and Swimwear) are targeting the northern part of the country
more, including Scotland, and therefore have more regional importance. An exception is the Premier
Childrenswear in Birmingham,
which has found its niche in the childrenswear segment.
Premier Kids and Pure are organised by EMAP. The London Fashion
Week is organised by the British
Fashion Council.
There are also some smaller specialised fairs like the ‘London Design
Week’, ‘London Corporate Wear
Week’,
‘Retail
Solutions’
in
Birmingham or Harrogate Bridal
Exhibition which might be of interest for manufacturers from abroad
specialised in the respective product groups presented during the
fair. In any case, brief research
about the importance and the concept of the fair to be attended is
essential. The table underneath
gives a brief survey on the major
British clothing fairs with names,
venues and dates.
227
6.5.1 Overview of UK Fashion Trade Fairs
Trade Fair
Products
Location
Dates
London
Fashion Week
Designer wear
London
February and
August
Pure
Directional and contemporary
womenswear
London
February and
August
Premier Kids
0-16 years old childrenswear
jeans, sportswear
Birmingham
Birmingham
January and
July
Moda UK
Ladies’ and men’s wear,
accessories, footwear
Birmingham
Birmingham
February and
August
PRIMA
Harrogate
Women’s wear,
lingerie and swimwear
Harrogate
February and
August
Margin
London
Men’s and women’s clothing &
accessories
London
February and
August
Upfront
Men’s and women’s clothing,
sportswear, leisure wear
London
February
Clotheshow
Live
Men’s and women’s clothing,
avant-garde, cosmetics
Birmingham
Birmingham
December
Source: m+a Expo DataBase, Messedatenbank, 2005/2006
228
CHILDREN’S WEAR IN GREAT BRITAIN
Arcadia Group Ltd.
Colegrave House
70 Berners Street
GB - London W1T 3NL
Tel.: +44 – 207 – 636 8040
Fax: +44 – 207 – 927 7651
www.arcadiagroup.co.uk
Product range: Ladies, men’s, childrenswear
Price segment: Mid-level
Number of outlets: 2000 (2200 until
the end of 2005) + mail-order business
TOP MAN
Colegrave House
70 Berners Street
GB - London W1T 3NL
Tel.: +44 – 207 – 636 8040
Fax: +44 – 207 – 927 2434
www.topman.co.uk
Price segment: Lower to mid-level
Number of outlets: 167 + mail order
service
Note: belongs to ARCADIA Group
TOP SHOP
Colegrave House
70 Berners Street
GB - London W1T 3NL
Tel.: +44 – 207 – 636 8040
Fax: +44 – 207 – 927 2434
www.topshop.co.uk
Product range: Womenswear (young
fashion)
service
Wallis Fashion Group Ltd.
Colegrave House
70 Berners Street
GB - London W1T 3NL
Tel.: +44 – 207 – 636 8040
www.wallis-fashion.com
service
WEW Group PLC
(formerly Amber Day Holding
PLC)
296 Springfield Road
GB - Glasgow G40 3HZ
Tel.: +44 – 141 – 5567111
Fax: +44 – 141 – 5567262
229
Bhs International
Euston House
132 Hampstead Road
GB - London NW1 2PS
Tel.: +44 – 207 – 2623288
international@bhs.co.uk
www.bhs.co.uk
Bon Marché Ltd.
Jubilee Way
Grange Moor
GB - Wakefield WF4 4SJ
Tel.: +44 – 192 – 4700100
Fax: +44 – 192 – 4 700249
www.bonmarche.co.uk
Number of outlets: 350 (370 at the
end 2005)
Note: belongs to Peacock Group
Ciro Citterio Menswear PLC
70 Church Road, Aston
GB - Birmingham B6 5TY
www.cirocitterio.com
Note: gone into compulsory liquidation
Ethel Austin Ltd.
School Lane, Knowsley
Industrial Park
GB - Knowsley, Prescot,
Merseyside L34 9GJ
Tel.: +44 – 151 – 5467621
Fax: +44 – 151 – 5491380
Number of outlets: 270 (duplication
projected)
Greenwoods Ltd.
Greenwood House
Albion Road, Greengates
GB - Bradford BD10 9TQ
Tel.: +44 – 127 – 4659650
Fax: +44 – 127 – 4659692
info@gwmw.com
www.gwmw.com
230
H&M Hennes Ltd.
2nd Floor, Holden House
57 Rathbone Place
GB - London W1T 1HE
Tel.: +44 – 020 – 7323 2211
www.hm.com
Number of outlets: 96 (expanding)
Leon Allan (Menswear) Ltd.
Ciro Citterio House
40 Vicarage Road, Edgbaston
GB - Birmingham B15 3EZ
Note: dissolved
Matalan Retail Ltd.
Gillibrands Road
Skelmersdale
GB - WN8 9TB, West Lancashire
Tel.: +44 – 169 – 5552400
www.matalan.co.uk
MANGO (head office in Spain)
Mercaders 9-11
P.I. Riera de Caldes
Apartado de Correos 280
E - 08184 Palau-solità i
Plegamans (Barcelona)
Tel.: +34 – 93 860 24 24
Fax:+34 – 93 860 22 07
www.mango.es
Number of outlets: 20 in UK
QS Familywear PLC
Harbour House
121 Gardener Road, Portslade
GB - Brighton BN1 IQS
Tel.: +44 – 1273 – 874444
Fax: +44 – 1273 – 874433
qsplc@co.uk
www.qsgroup.co.uk
Price segment: Lower level (value for
money)
231
River Island Clothing Co.
Ltd.
Chelsea House, West Gate
GB - London W5 1DR
Tel.: +44 – 208 – 9914500
Fax: +44 – 208 – 9914500
www.riverisland.com
Zara
120, Regent Street
GB - London, W1B 5 FE
Tel.: + 44 – 207 – 851 43 00
Fax: +44 – 207 – 851 43 01
www.zara.com
(Remark: Buying via Spain)
Department Stores
Debenhams Ltd.
1 Welbeck Street
GB - London W1A 1DF
Tel.: +44 – 207 – 408 4444
Fax: +44 – 207 – 408 3366
www.debenhams.com
childrenswear
House of Fraser PLC
1 Howick Place
GB - London SW1P 1BH
Tel.: +44 – 207 – 963 2000
Fax: +44 – 207 – 821 5348
www.houseoffraser.co.uk
Price segment: Upper level (brand
orientation)
Number of outlets: 51 (under 16
names)
John Lewis Partnership Ltd.
John Lewis Department Stores
171 Victoria Street
GB - London SW1E 5NN
Tel.: +44 – 207 – 828 1000
Fax: +44 – 207 – 592 6333
www.johnlewis.co.uk
www.johnlewispartnership.co.uk
Product range: Sports and
Leisurewear
supermarkets
232
Liberty PLC
Regent Street
GB - London W1B 5AH
Tel.: +44 – 207 – 734 1234
Fax: +44 – 020 – 7573 9898
www.liberty.co.uk
Note: Department Store + mail-order
Littlewoods Shop Direct
Home Shopping Ltd.
Sir John Moores Building
100 Hall Street
GB - Liverpool L70 1AB
Tel.: +44 – 151 – 235 2222
www.littlewoods.co.uk
childrenswear
Number of outlets: 120 + 166 catalogue shops
Marks + Spencer Group PLC
Waterside House
35 North Wharf Road
GB - London W21 NW
Tel.: +44 – 207 – 935 4422
Fax: +44 – 207 – 487 2679
www.marksandspencer.com
childrenswear
Number of outlets: 375 stores + over
130 franchising partners
Next Retail Ltd.
Desford Road
GB - Enderby Leicester LE19 4AT
Tel.: +44 – 845 – 456 7777
Fax: +44 – 116 – 284 8998
www.next.co.uk
childrenswear
franchising partners + home shopping
Woolworths PLC
242/246 Marylebone Road
GB - London NW1 6JL
Tel.: +44 – 207 – 262 1222
Fax: +44 – 207 – 706 5416
www.woolworths.co.uk
Product range: Childrenswear
233
Manufacturers/Importer and Wholesalers/Importers:
J. Brownleader Ltd.
49c Oxford Road
GB - London W5 3SR
Tel: +44 – 207 – 354 2468
Fax: +44 – 207 – 354 2593
Campari UK Ltd.
International House
Priestly Way – Staples Corner
GB - London – NWW2 7AZ
Note: Company in liquidation
Liam David Ltd.
Coburg House 35 Sefton Street
GB - Liverpool L8 5SL,
Merseyside
Tel.: +44 – 151 – 706 – 0060
Fax: +44 – 151 – 706 – 0661
www.ldl.uk.com
County Coats
61-75 Alie Street
GB - London E1 8EL
Tel.: +44 – 207 – 709 9682
Fax: +44 – 207 – 702 2870
Westbridge International
Group Ltd.
Westbridge House
Holland Street, Hyson Green
GB - Nottingham NG7 5DS
Tel.: +44 – 115 – 978 2254
Fax: +44 – 115 942 0547
Horace Battin + Co. Ltd.
12, Sheep Street
GB - Wellingborough,
Northamptonshire NN8 1SL
Tel.: +44 – 933 – 22 3245
Fax: +44 – 933 – 44 2096
Propeller UK Ltd.
A.M.C. House
1a Lower Park
GB - London W3 6XA
Tel.: +44 – 208 – 896 8700
Redcats (Brands) Ltd.
(formerly Empire Stores Ltd.)
18, Canal Road
GB - Bradford B99 4XB – W.
Yorkshire
Tel.: +44 – 1274 – 72 9544
Fax: +44 – 1274 – 76 3816
www.empirestores.co.uk
childrenswear
Price level: Lower level
234
Freemans PLC
Anchor House
Ingleby Road
GB - Bradford, West Yorkshire,
BD98 2XG
Tel.: +44 – 870 – 606 6099
www.freemans.com
childrenswear
Price level: Lower to mid-level
(value for money)
Great Universal Stores PLC
(GUS)
One Stanhope Gate
GB - London W1K 1AF
Tel.: +44 – 207 – 495 0070
Fax: +44 – 207 – 495 1567
info@gusplc.com
www.gusplc.com
childrenswear
Price level: from Lower to upper
level
Note: 12 different mail-order lines
Grattan PLC
Anchor House, Ingleby Road
GB - Bradford, West Yorkshire,
BD99 2XG
Tel.: +44 – 870 – 599 0900
www.grattan.co.uk
childrenswear
Price level: Lower to mid-level
JD Williams + Co. Ltd.
Griffin House
40 Lever Street
GB - Manchester M60 6ES
Tel.: +44 – 870 – 160 61 00
www.jdwilliams.co.uk
childrenswear
Price level: Mid to lower level
Note: No. 1 in UK with 20 catalogue
brands
Note: part of N. Brown Group PLC
Jeans and Young Fashion Chain
Alexon Group PLC
40 – 48 Guildford Street
GB - Luton – Bds. LU1 2PB
Tel.: +44 – 1582 – 72 3131
Fax: +44 – 1582 – 399 823
www.alexon.co.uk
Product range: Men’s and ladies
outer- and sportswear
concessions
Note: Manufacturer and retailer
235
Blacks Direct Ltd.
Unit 1, Parkers House – Regent
Street
GB - Cambridge CB 2 1DP
Tel.: +44 – 122 – 3 314335
www.blacks.co.uk
Product range: Sportswear (outdoor)
Note: belongs to Blacks Leisure
Group plc.
Cromwells Madhouse plc.
Fulton Road, Unit 3, Palace of
Industry
GB - Wembley HA9 OTL –
Middlesex
Tel.: +44 – 181 – 903 5888
Fax: +44 – 181 – 903 0303
www.madhouse.co.uk
Product range: Ladies’ and men’s
jeans wear
Gilesports plc
Fortran Road, St. Mellons
GB - Cardiff CF3 OLT
Tel.: +44 – 1222 – 77 44 00
Fax: +44 – 1222 – 77 44 01
www.gilesports.com
Price segment: Upper level (mainly
brands)
Paco Life in Colours
Kirkshaws Road
GB - Coatbridge ML5 4RP
Tel.: +44 – 1236 – 44 9066
JJB Sports PLC (formerly
Sports Division)
Martland Park, Challenge Way
GB - Wigan WN5 0LD,
Lancashire
Tel.: +44 – 194 – 2 2101 20
Fax: +44 – 194 – 2 210 124
236
French Connection Group
PLC
Head Office
3 Hancock Road
Bromley-by-Bow
GB - London, E3 3DA
Tel.: +44 – 20 7036 7000
Fax: +44 – 20 7036 7001
Product range: Stylish sports and
casual wear
Note: Largest British retailer for
sportswear
Note: Textile distribution centre
Buying Associations:
Greater Nottingham –
Partnership Ltd.
3rd Floor, Castle Heights
72 Maid Marian Way
GB - Nottingham NG1 6BJ
Tel.: +44 – 115 – 950 2608
Fax: +44 – 115 – 946 2173
gernal@gnpartnership.org.uk
www.gnpartnership.co.uk
Note: Purchasing dep. for menswear
in Manchester; for womenswear purchasing dep. in Mensfield
Co-operative Wholesale
(CWS) Ltd.
New Century House – P.O.B. 53
GB - Manchester M60 4ES
Tel.: +44 – 161 – 834 1212
Fax: +44 – 161 – 834 4507
www.Co-op.co.uk
Note: Purchasing dep. for menswear
in Manchester; for womenswear purchasing dep. in Mensfield
Intersport G.B. Ltd.
Tything Road
Arden Forest Industrial Estate
GB - Alcester B49 6EP –
Warwickshire
Tel.: +44 – 1789 – 76 32 72
Fax: +44 – 1789 – 76 41 33
www.intersport.co.uk
Products: (Active) sports- and casual
wear
237
Outerwear
APPENDIX
I
A P P E N D I X
ASSOCIATIONS OF TRADE AGENTS, WHOLESALERS ORGANISATIONS
AND RETAIL ORGANISATIONS IN THE COUNTRIES ANALYSED
E u r o p e :
AEDT
European Association of National
Organisations of Textile Retailers
9-13/4th, Avenue des Nerviens
B - 1040 Bruxelles
Tel.: +32 – 2 – 230 5296
Fax: +32 – 2 – 230 2569
www.aedt.org
info@aedt.org
F r a n c e :
FEDERATION NATIONALE DES
ENTREPRISES A COMMERCES
MULTIPLES
Federation of multiples and
department stores
46, Bd Magenta
F - 75010 Paris
Tel.: +33 – 1 – 4202 1769
Fax: +33 – 1 – 4206 5209
(no website)
FEDERATION NATIONALE DES
GRANDS MAGASINS ET DES
MAGASINS POPULAIRES
National federation of department
stores
11, rue Saint-Florentin
F - 75008 Paris
Tel.: +33 – 1 – 42 60 02
Fax: +33 – 1 – 42 60 15 09
(no website)
G e r m a n y :
AUSSENHANDELSVEREINIGUNG DES
DEUTSCHEN EINZELHANDELS eV
(AVE)
Foreign Trade Association of German
Retailers
Mauritiussteinweg 1
D - 50676 Köln
Tel.: +49 – 221 – 921834 – 0
Fax: +49 – 221 – 921834 – 6
www.ave-koeln.de
info@ave-koeln.de
2
BUNDESVERBAND DES DEUTSCHEN
GROSS- UND
AUSSENHANDELS e.V. (BGA)
Federal Association of German
Wholesalers and Exporters
Am Weidendamm 1 A
D - 10117 Berlin
Tel.: +49 – 305 – 900 995 – 0
Fax: +49 – 305 – 900 995 – 19
www.bga.de
info@bga.de
BUNDESVERBAND
DES DEUTSCHEN TEXTILEINZELHANDELS e. V. (BTE)
Association of German Textile Retailers
An Lyskirchen 14
D - 50676 Köln
Tel.: +49 – 221 – 921 509 – 0
Fax: +49 – 221 – 921 509 – 10
www.bte.de
info@bte.de
BUNDESVERBAND DES DEUTSCHEN
VERSANDHANDELS eV
Association of German Mail Order
Companies
Johann-Klotz-Str. 12
D - 60528 Frankfurt/M.
Tel.: +49 – 69 – 678 656 – 0
Fax: +49 – 69 – 678 656 – 29
www.versandhandel.org
info@versandhandel.org
CENTRALVEREINIGUNG
DEUTSCHER WIRTSCHAFTSVERBÄNDE FÜR HANDELSVERMITTLUNG UND VERTRIEB (CDH)
National Association of Trade Agents
Am Weidenbaum 1 A
D - 10117 Berlin
Tel.: +49 – 30 – 726 25600
Fax: +49 – 30 – 726 25699
www.cdh.de
centralvereinigung@cdh.de
VERBAND DER FERTIGWARENIMPORTEURE (VFI)
Association of Non-Food Importers
Gotenstraße 21
D - 20097 Hamburg
Tel.: +49 – 40 – 236016 – 16
Fax: +49 – 40 – 236016 – 10
www.vfi-deutschland.de
info@vfi-deutschland.de
3
I t a l y :
CAMERA NAZIONALE DELLA MODA
ITALIANA
National Fashion Organisation
V. Morone Gerolamo 6
I - 20121 Milano (MI)
Tel.: +39 (0) – 2 777 1081
Fax: +39 (0) – 2 777 10851
www.cameramoda.it
e-mail on the website
FEDERAZIONE NAZIONALE ASSOCIAZIONI AGENTI E RAPPRESENTANTI DI
COMMERCIO
National Organisation of Trade Agents
and Representatives
Corso Venezia, 51
I - 20121 Milano
Tel.: +39 (0) – 2 – 764 5191
Fax: +39 (0) – 2 – 7600 8493
www.fnaarc.it
info@fnaarc.it
FEDERAZIONE NAZIONALE
DETTAGLIANTI TESSILI E
ABBIGLIAMENTO
National Organisation of Textile and
Clothing Retailers
Via Palestro, 24
I - 20121 Milano
Tel.: +39 (0) – 2 – 7601 5212
Fax: +39 (0) – 2 – 7600 3779
(no website)
FEDERAZIONE MODA ITALIA
Italian Fashion Organisation
Corso Venezia, 26
I - 20121 Milano
Tel.: +39 (0) – 2 – 76015212
Fax: +39 (0) – 2 – 76003779
www.federazionemodaitalia.it
info@federazionemodaitalia.it
SISTEMA MODA ITALIA (SMI)
Association of Italian Textile and
Clothing Industry
Viale Sarca, 223
I - 20126 Milano
Tel.: +39 (0) – 2 641191
Fax: +39 (0) – 2 66103667/70
www.sistemamodaitalia.it
info@sistemamodaitalia.it
4
S p a i n :
ASOCIACION DE COMERCIO
TEXTIL - ACOTEX
Association of Textile Trade
Companies in the Region of Madrid
C. Alberto Aguilera 66 1-DCHA
E - 28015 Madrid
Tel.: +34-91-549 2397
Fax: +34-91-549 9256
www.acotex.org
info@acotex.org
ASOCIACION ESPANOLA DE IMPORTADORES Y DISTRIBUIDORES DE
MODA (ANIMODA)
Association of Fashion Importers and
Wholesalers
Lagasca 27-2 A
E - 28001 Madrid
Tel.: +34-91-4352 805
Fax: +34-91-5761-735
www.animoda.org
CONSEJO INTERTEXTIL ESPANOL
(CIE)
Spanish International Textile
Association
Gran Via 670
E - 08010 Barcelona
Tel.: +34-93-318 9200
Fax: +34-93-302 6235
www.aitpa.es
aitpa@aitpa.es
GREMI DE COMERC TEXTIL
I SASTRERIA
Trade Association for Textile and
Clothing
Diputaci 290 pral.
E - 08009 Barcelona
Tel.: +34-933-017980
Fax: +34-933-018720
agtc@bcn.servicom.es
SECRETARIA GENERAL
DE COMERCIO EXTERIOR
General Secretary of Foreign Trade
Paeso de la Castellana 162
E - 28071 Madrid
www.mcx.es
Buzon.Oficial@secgcomex.sscc.
mcx.es
5
S w i t z e r l a n d :
SWISS FASHION STORES
Association of Fashion retailers
c/o KPMG Fides - Hofgut
CH - 3073 Gümlingen
Tel.: +41-31-384 77 04
Fax: +41-31-384 76 36
www.swiss-fashion-stores.ch
office@swiss-fashion-stores.ch
SWISS RETAIL FEDERATION
Federation of retailers
Marktgasse 50
CH - 3000 Bern 7
Tel.: +41-31-312 40 40
Fax: +41-31-312 40 41
www.swiss-retail.ch
info@swiss-retail.ch
VSF – VERBAND SCHWEIZERISCHER
FILIALUNTERNEHMEN
Federation of Swiss Chain Stores c/o Advokaturbüro Utzinger
Frohburgstr. 98
CH - 8006 Zürich
Tel.: +41-44-363 14 00
Fax: +41-44-363 15 25
www.vsf-schweiz.ch
vsf@ku-law.ch
VSIG – VEREINIGUNG DES
SCHWEIZER IMPORT- UND
GROSSHANDELS
Association of Swiss Importers and
Wholesalers
Güterstr. 78
CH - 4010 Basel
Tel.: +41-61-228 90 30
Fax: +41-61-228 90 39
www.vsig.ch
info@vsig.ch
VSV – VERBAND DES
SCHWEIZERISCHEN
VERSANDHANDELS
Federation of Swiss Mail Order
Companies
Brandenbergstr. 30
CH - 8304 Wallisellen
Tel.: +41-44-830 16 02
Fax: +41-44-830 16 08
www.vsv-versandhandel.ch
info@vsv-versandhandel.ch
6
U n i t e d
K i n g d o m :
BRITISH AGENTS REGISTER
24 Mount Parade
Harrogate
GB - North Yorkshire HG1 1BP
Tel.: +44-1423-560608/9
Fax: +44-1423-561204
www.agentsregister.com
info@agentsregister.com
BRITISH FASHION COUNCIL
5 Portland Place
GB - London, W1B 1PW
Tel.: +44-20-7636 7788
Fax: +44-20-7636 7515
www.londonfashionweek.co.uk
bfc@dial.pipex.com
BRITISH MENSWEAR GUILD
5 Portland Place
GB - London, W1B 1PW
Tel.: +44-20-7580 8783
Fax: +44-20-7436 8833
www.british-menswear-guild.co.uk
director@british-mens-wearguild.co.uk
BRITISH SHOPS AND STORE
ASSOCIATION Ltd. (BSSA)
Middleton House
2 Main Road –
Middleton Cheney
GB - Banbury – Oxon OX17 2TN
Tel.: +44-1295-712277
Fax: +44-1295-711665
www.british-shops.co.uk
info@bssa.co.uk
7
II
A P P E N D I X
INDUSTRY FEDERATIONS IN SWITZERLAND AND EU-COUNTRIES
F r a n c e :
UNION FRANCAISE DES
INDUSTRIES DE L’HABILLEMENT
(UFIH)
French Association of ladies, men’s
and children’s wear manufacturers
8, rue de Montesquieu
F - 75001 Paris
www.lamodefrancaise.org
secretariatufih@lamodefrancaise.org
UNION DES INDUSTRIES TEXTILES
(UIT)
37/39, rue de Neuilly
F - 92110 Clichy
Tel.: +33 – 1 – 4756 3100
Fax: +33 – 1 – 4730 2528
www.textile.fr
admin@textile.fr
G e r m a n y :
BUNDESVERBAND DER
BEKLEIDUNGSINDUSTRIE eV (BBI)
Federal Clothing Industry Federation
Mevissenstr. 15
D - 50668 Köln
Tel.: +49 – 221 – 7744 – 110
Fax: +49 – 221 – 7744 – 118
www.bbi-online.de
bbi@bbi-online.de
GESAMTVERBAND DER
TEXTILINDUSTRIE GESAMTEXTIL EV
National Association of Textile
Industry
Frankfurter Str. 10-14
D - 65760 Eschborn
Tel.: +49 – 6196 – 966-0
Fax: +49 – 6196 – 42170
www.textile-online.de
info@textil-mode.de
8
I t a l y :
FEDERTESSILE
Textile Industry Federation
Viale Sarca 223
I - 20126 Milano
Tel.: +39 (0) – 2-6610 3440
Fax: 39 (0) – 2-6610 3455
S p a i n :
AITPA
National Association of Textile
Industry
Gran Via
de les Corts Catalanes, 670
E - 08010 Barcelona
Tel.: +34-93-318 92 00
Fax: +34-93-302 62 35
www.aitpa.es
aitpa@aitpa.es
ASOCIACIÓN ESPAÑOLA DE
CONSTRUCTORES DE MAQUINARIA
TEXTIL Y DE CONFECCION
Association of Spanish Knitwear and
Ready-to-Wear Manufacturers
Riera Sant Miquel 3
E - 08006 Barcelona
Tel.: +34-934-150 422
Fax: +34-934-160 980
www.amec.es/amtex
amtex@amec.es
CENTRAL DE INFORMACION Y DISENO INDUSTRIAL TEXTIL (CIDIT)
Information Centre for the Spanish
Textile Industry
Paris 184, 4° - 1
E - 08306 Barcelona
Tel.: +34-93-4155 051
Fax: +34-93-2373 822
www.aprendemas.com
SCHWEIZERISCHER
MODEGEWERBE-VERBAND
Swiss Association of the Fashion
Industry
Gutenbruennenweg 23
CH - 3125 Toffen
Tel.: +41-31-819 52 17
Fax: +41-31-819 52 87
www.sgv-usam.ch
info@sgv.usam.ch
9
SWISSFASHION – GESAMTVERBAND
DER SCHWEIZERISCHEN
BEKLEIDUNGSINDUSTRIE
Swiss Clothing Manufacturers
Association
U n i t e d
Beethovenstrasse 20
CH - 8022 Zürich
Tel.: +41-44-289 79 79
Fax: +41-44-289 79 80
www.swisstextiles.ch
zuerich@swisstextiles.ch
K i n g d o m :
BRITISH TEXTILE CONFEDERATION
5, Portland Place
GB - London W1N 3AA
Tel: +44-171-636 7788
Fax: +44-171-636 7515
www.batc.co.uk
batc@dial.pipex.co.uk
THE BRITISH CHAMBERS OF
COMMERCE
65 Petty France
St James Park
GB - London SW1H 9E4
Tel.: +44-20-7654 5800
Fax : +44-20-7654 5819
www.britishchambers.org.uk
info@britishchambers.org.uk
CONFEDERATION OF BRITISH WOOL
TEXTILES
Merrydale House - Roydsdale
Way
GB - Bradford BD4 6SB
Tel.: +44-1274 652207
Fax: +44-1274 682293
www.cbwt.co.uk
info@cbwt.co.uk
10
III
A P P E N D I X
MAJOR EUROPEAN TRADE FAIRS
F r a n c e :
FATEX - Paris
organised by:
PROFATEX SA
37/39, rue de Neuilly – BP 121
F - 92582 Clichy Cedex
Tel.: +33 – 1 – 4730 5494
Fax: +33 – 1 – 4730 9450
www.fatex.fr
info@fatex.fr
INTERSELECTION – Paris
organized by:
Intersélection – Groupe Eurovet
Rue de Neuilly
F - 92113 Clichy Cedex
Tel +33 – 1 – 4756 3232
Fax: +33 – 1 – 4756 3299
www.interselection.net
interselection@la-federation.com
PREMIERE VISION – Paris
(Textile Fabrics Fair)
organised by:
Première Vision
Le Britannia – Batiment A20
Bld. Eugène Deruelle
F - 69432 Lyon Cedex 3
Tel.: +33 – 4 – 7260 6500
Fax: +33 – 4 – 7260 6509
www.premierevision.fr
info@premierevision.fr
KID’S FASHION – MODE ENFANTINE
Kids Fahion Fairs in Paris and Brussels
organized by Kid's Fashion Mode
Enfantine SA/NV
999 chée d'Alsemberg
B - 1180 Brussels
Tel.: +32 – 2 – 376 5747
Fax: +32 – 2 – 332 0880
www.kidsfashionfairs.com
visitorskids@bff.be
SALON DU PRET A PORTER PARIS
French association of Prêt à Porter
5, rue Caumartin
F - 75009 Paris
Tel.: +33 – 1 – 4494 7000
Fax: +33 – 1 – 4494 7002/7004
www.pretparis.com
info@pretparis.com
11
WHO’S NEXT URBAN SHOW SA.
23, rue du Mail
F - 75002 Paris
Tel.: +33 – 140 13 74 74
Fax: +33 – 140 13 74 84
www.whosnext.com
info@whosnext.com
G e r m a n y :
CPD WOMAN/MAN incl. GLOBAL
FASHION
organised by:
IGEDO Internationale Modemesse
Kronen GmbH & Co.KG
Stockumer Kirchstr. 61
Tel.: +49 – 211 – 4396 – 01
Fax: +49 – 211 – 4396 – 345
www.igedo.com
info@igedo.com
ISPO – Munich
(Active Sportswear)
organised by:
Messe München GmbH
Messegelände
D - 81823 München
Tel.: +49 – 89 – 949 – 11388
Fax: +49 – 89 – 949 – 11389
www.ispo.com
ispo@messe-muenchen.de
KIND + JUGEND – Cologne
organised by:
KölnMesse GmbH
Messeplatz 1
D - 50679 Köln
Tel.: +49 – 221 – 821 – 0
Fax: +49 – 221 – 821 – 2574
www.koelnmesse.de
info@koelnmesse.de
BREAD AND BUTTER
Trade fair for selected brands in Berlin
and Barcelona
BREAD & butter GmbH Headquarter:
Münzstrasse 13
D - 10178 Berlin
Service Hotline (Accreditation +
Tickets): +49 – 30 – 2000 – 370
Tel.: +49 – 30 – 400 – 44 – 0
(Headquarter)
Fax: +49 – 30 – 400 – 44 – 101
www.breadandbutter.com
info@breadandbutter.com
12
I t a l y :
IDEACOMO – Cernobbio
organised by:
Ente Fieristico IDEACOMO
Via Regina, 40
I - 22012 Cernobbio
Tel.: +39 (0) – 31 – 513312
Fax: +39 (0) – 31 – 340022
www.ideacomo.com
ideacomo@ideacomo.com
MODAPRIMA – Milano
organized by:
EFIMA – Ente Fiere Italiane aglieria e
Abbigliamento
Viala Sarca 223
I - 20126 Milano
Tel.: +39 (0) – 2 – 661 631
Fax: +39 (0) – 2 – 6610 1638
www.modaprima.it
info@modaprima.it
PITTI BIMBO – Florence
organised by:
Pitti Immagine srl
Via Faenza 111
I - 50123 Florence
Tel.: +39 (0) – 55 – 36931
Fax: +39 (0) – 55 – 3693200
www.pittimmagine.com
bimbo@bittimmagine.com
PITTI UOMO – Florence
organised by:
Pitti Immagine srl
Via Faenza 111
I - 50123 Florence
Tel.: +39 (0) – 55 – 36931
Fax: +39 (0) – 55 – 3693200
www.pittimmagine.com
uomo@bittimmagine.com
S p a i n :
FIMI – Valencia
organised by:
Feria Valencia
Avenida de las Ferias
E - 46035 Valencia
Tel.: +34-963-861100
Fax: +34-963-635111
www.feriavalencia.com
feriavalencia@feriavalencia.com
MODA BARCELONA
organised by:
Fira de Barcelona
Av. Reina Maria Cristina
E - 08004 Barcelona
Tel.: +34-93-2332000
www.modabarcelona.com
moda@modabarclona.com
13
SIMM (Int. Fashion Week) – Madrid
organised by:
Parque Ferial Juan Carlos I
U n i t e d
Apdo. De Correros 67.067
E - 28080 Madrid
Tel.: +34-91-7225000
Fax: +34-91-7225799
www.simm.ifema.es
simm@ifema.es
K i n g d o m :
MODA UK – Birmingham
organised by:
ITE Moda Ltd.
Tel.: +44-1484-846069
Fax: +44-1484-846232
www.moda-uk.co.uk
info@moda-uk.co.uk
PRIMA Harrogate – London
(Lingerie, Swimwear and Bridal Wear)
organised by:
Harrogate International Centre
Kings Road, Harrogate, North
GB - Yorkshire, HG1 5LA
Tel.: +44-1423-500500
Fax: +44-1423-537210
www.harrogateinternationalcentre.co.uk, sales@harrogateinternationalcentre.co.uk
UK PURE WOMENSWEAR LONDON
(all kinds of women’s wear and
fashion accessories)
organised by:
Emap Retail
33-39 Bowling Green Lane
GB - London, EC1R 0DA
Tel.: +44-20-7812-3700
Fax: +44-20-7812-3710
www.purewomenswear.co.uk
info@emap.com
PREMIER KIDS BIRMINGHAM
organised by:
Emap Retail
33-39 Bowling Green Lane
GB - London, EC1R 0DA
Tel.: +44-20-7812-3700
Fax: +44-20-7812-3710
www.purewomenswear.co.uk
info@emap.com
Remark: Comprehensive information about all
European and international fairs can be
collected from the internet site: www.auma.de
14
IV
A P P E N D I X
EUROPEAN TRADE MAGAZINES
F r a n c e :
Name of Magazine
Publication
schedule
Circulation
Contents
JOURNAL DU TEXTILE
Edition Hennessen SA
61, rue de Malte
Tel.: +33 – 1 – 4357 2189
Fax: +33 – 1 – 4700 0835
www.journaldutextile.com
contact@journaldutextile.com
Weekly
18,000
Textile and
clothing retail
Name of Magazine
Publication
schedule
Circulation
Contents
FASHION TECHNICS
Lüpertzenderstr. 159
D - 41061 Mönchengladbach
Tel.: +49 – 2161 – 244244
Fax: +49 – 2161 – 244241
www.fashion-technics.de
brief@fashion-technics.de
2 times/month
7,500
Fashion and
Textile Industry
KLAR-TEXT
Das Klar’sche Textilarchiv
GmbH
Thann 28
D - 83098 Brannenburg
Tel.: +49 – 8034 – 8686
Fax: +49 – 8034 – 8001
www.klartext.de
info@klartext.de
Weekly on
Mondays
2,500
Special edition
once per year –
6,700
Textile and
specialized retail
and industry –
Retail and
Clothing
Addresses
G e r m a n y :
15
Name of Magazine
Publication
schedule
Circulation
Contents
SAZ Sportartikel Zeitung
SAZ Verlag GmbH
Postfach 260246
D - 80059 München
Tel.: +49 – 89 – 2121 1090
Fax: +49 – 89 – 2121 1077
www.saz.de
saz@saz.de
2 times/month
10,000
Trade, sports
articles
SPORTSWEAR
INTERNATIONAL
Deutscher Fachverlag GmbH
Mainzer Landstr. 251
D – 60326 Frankfurt/Main
Tel.: +49 – 69 – 7595 - 2662
Fax: +49 – 69 – 7595 - 2660
www.dfv.de – info@dfv.de
6 times/year
21,500
Trade, jeans and
sportswear
TM Fashion Trend
Magazine
Branche & Business
Fachverlag GmbH & Co.KG
Königsallee 70
Tel.: +49 – 211 – 8 3030
Fax: +49 – 211 – 324862
www.tm-fashion-portal.de
info@textilmitteilungen.de
Weekly
29,000
Textile and
clothing trade
TW Textilwirtschaft
Deutscher Textilverlag GmbH
Mainzer Landstr. 251
D - 60326 Frankfurt
Tel.: +49 – 69 – 7595 01
Fax: +49 – 69 – 7595 1399
www.Twnetwork.de
info@TWnetwork.de
Weekly
42,000
Textile and
clothing trade
and industry
16
I t a l y :
Name of Magazine
Publication
schedule
Circulation
Contents
FASHION
Edizioni Ecomarket Spa
Corso Venezia 26
I - 20121 Milano
Tel.: +39 (0) – 2 – 7600 7371
Fax: +39 (0) – 2 – 78 3012
www.fashionmagazine.it
redazione@fashionmagazine.it
Weekly
18,000
Textile sector,
sports fashion
MODA BIMBI
Ed. Moderne Internazionali
Via Burlamacchi 11
I - 20135 Milano
Tel.: +39 (0) – 2 – 5518 9297
Fax: +39 (0) – 2 – 546 5954
modabimbi@email.it
2 times/year
100,000
Babies and
childrens wear,
focus on trade
MODASPORT VACANZE
Acalifa Srl
Palazzina S. Rocco
Via S. Rocco 17
I - 20135 Milano
Tel.: +39 (0) – 2 – 5831 5800
Fax: +39 (0) – 2 – 5831 6313
www.infodataitaly.com
esabbat@tin.it
Every 3
months
46,000
Sport and
Cacation Sports
International
DONNA COLLEZIONI –
UOMO COLLEZIONI – BAMBINI COLLEZIONI
Zanfi.editori@mo.nettuno.it
4-6 times/year
App. 50,000
Sports fashion,
retail, industry,
consumer
17
S p a i n :
Name of Magazine
Publication
schedule
Circulation
Short
description
DIRECTORIO SECTORIAL
N.S.I.
C/Escultor Peresejo, 70 1a
E - 28023 Aravaca (Madrid)
Tel.: +34-91-740 1708
Fax: +34-91-307 1972
dsmoda@readysoft.es
4 times/year
10,000
Clothing industry,
distribution, retail
TEXTIL EXPRES
Aramo Editorial
Muntaner 50, Atico 3a
E - 08011 Barcelona
Tel.: +34-93-453 7938
Fax: +34-93-323 7926
aramo@docupress.es
4 times/year
5,500
Industry, retail
NINSMODA
Ediciones Esfer
Consell de Cent, 383-5 1a
E - 08009 Barcelona
Tel.: +34-93-488 1820
Fax.+34-93-215 0039
www.modainfantil.net
ninsmoda@modainfantil.net
4 times/year
5,000
Childrens’ and
young fashion,
Retail,
wholesale
PINKER MODA
Ediciones Tecnicas Doria SA
Paseo de Gracia, 44-2
E - 08007 Barcelona
Tel.: +34-93-467 1212
Fax: +34-93-488 3012
www.miramedios.com
info@data-red.com
Monthly
6,250
Textile industry
18
Name of Magazine
Publication
schedule
Circulation
Contents
MITTEX - SVT Zürich
Schweizerische Vereinigung
von Textilfachleuten SVT
c/o Gertsch Consulting
Postfach 1107
CH-4800 Zofingen
Tel.: +41 – 62 – 751 26 39
Fax: +41 – 62 – 751 26 37
www.mittex.ch
svt@mittex.ch
6 times/year
3,000
Professional
magazine for
the textile and
knitting industry
SCHWEIZER SPORT UND
MODE
MS Dienstleistungen AG
Örgelackerstrasse 4
CH-8707 Uetikon am See
Tel.: +41 – 44 – 920 79 40
Fax: +41 – 44 – 920 79 41
www.sportbiz.ch
info@sportbiz.ch
Once a month
3,000
Sports and
leisure wear
industry
TEXTIL-REVUE
Fürstenlandstr. 122
Tel.: +41 – 71 – 272 77 77
Fax: +41 – 71 – 272 74 49
www.textil-revue.ch
redaction@textil-revue.ch
Once a week
8,500
Textile and
clothing industry
19
U n i t e d
K i n g d o m :
Name of Magazine
Publication
schedule
Circulation
Contents
CWB Childrens Wear Buyer
Magazine
National Children’s Wear
Association
5 Portland Place
GB-London W 1B 1 PW
Tel.: +44 – 20 – 7631 5445
Fax: +44 – 20 – 7631 – 3443
www.ncwa.co.uk
enquiries@ncwa.co.uk
4 times/year
4,500
Childrens’ wear,
retail
DRAPERS
DR The fashion Business
EMAP Business Publishing
Angel House
338-346 Goswell Rd.
GB - London EC1V 7QP
Tel.: +44 – 20 – 7520 1500
Fax: +44 – 20 – 7520 1501
www.drapersonline.com
Weekly
19,568
No. 1 of textile
publications
in GB
FW
EMAP Fashion
Angel House
338-346 Goswell Rd.
Tel.: +44 – 20 – 7520 1500
Fax: +44 – 20 – 7520 1501
www.emap.co.uk
information@emap.com
Weekly
8,800
Retail, industry
MENSWEAR
EMAP Fashion
Angel House
338-346 Goswell Rd.
Tel.: +44 – 20 – 7520 1500
Fax: +44 – 20 – 7520 1501
www.emap.co.uk
clairer@fashion.emap.co.uk
2 times/month
8,429
Retail
20
V
A P P E N D I X
TRADE PROMOTION ORGANISATIONS IN EUROPE
CBI – CENTRUM TOT BEVORDERING
VAN DE IMPORT UIT
ONTWIKKELINGSLANDEN
Centre for the Promotion of Imports
from Developing Countries
WTC-Beurs Building, Beursplein 37
P.O.Box 30009
NL - 3001 DA Rotterdam
Tel.: +31 – 10 – 2013 434
Fax: +31 – 10 – 4114 081
www.cbi.nl, cbi@cbi.nl
DIPO
Danish Import Promotion Office
Boersen
DK - 1217 Copenhagen K
Tel.: +45 – 33 – 950 500
Fax: +45 – 33 – 120 525
www.dipo.dk
dipo@commerce.dk
GTZ - Gesellschaft für technische
Zusammenarbeit
German Organisation for Technical
Cooperation
Dag-Hammerskjöld-Weg 1-5
D - 65726 Eschborn
Tel: +49 – 6196 – 796 000
Fax: +49 – 6196 – 797 414
www.gtz.de
info@gtz.de
INTERNATIONAL TRADE CENRE
UNCTAD/WTO (ITC)
Palais des Nations
CH - 1211 Geneva 10
Tel : +41 – 22 – 730 0111
Fax : +41 – 22 – 733 4439
www.intracen.org
itcreg@intracen.org
NORAD
Norwegian Agency for Development
Cooperation
Ruselokkveien 26
Postbox 8034
N - 0030 Oslo
Tel.: +47 – 22 – 24 20 30
Fax: +47 – 22 – 24 20 31
www.norad.no
firmapost@norad.no
SIDA
Swedish International Development
Cooperation Agency
Sweavagen 20
Postbox 3144
S - 10525 Stockholm
Tel.: +46 – 8 – 698 5000
Fax: +46 – 8 – 208864
www.sida.se
info@sida.se
21
VI
A P P E N D I X
IMPORTANT ADDRESSES FOR ENVIRON-MENTAL AND SOCIAL ISSUES
CBI – CENTRUM TOT BEVORDERING
VAN DE IMPORT UIT ONTWIKKELINGSLANDEN
Centre for the Promotion of Imports from
Developing Countries
WTC-Beurs Building
Beursplein 37
P.O.Box 30009
NL – 3001 DA Rotterdam
Tel.: +31 – 10 – 2013 434
Fax: +31 – 10 – 4114 081
www.cbi.nl, cbi@cbi.nl
www.cbi-accessguide
(internet guide to Europeanwide ecological questions)
COMMISSION OF THE EUROPEAN
COMMUNITIES
DG XI A 2
Rue de la Loi 200
B - 1049 Brussels
Tel.: +32 – 2 – 2990344
Fax: +32 – 2 – 2990313
www.europa.eu.int
FORSCHUNGSINSTITUT HOHENSTEIN
(measurement tables and
ecological issues)
Schloß Hohenstein
D - 74357 Bönningheim
Tel.: +49 – 7143 – 2710
Fax: +49 – 7143 – 2715
www.hohenstein.de
info@hohenstein.de
INSTITUT FRESENIUS GRUPPE
(product testing)
Im Maisel 14
D - 65232 Taunusstein-Neuhof
Tel.: +49 – 6128 – 744155
Fax: +49 – 6128 – 744201
www.fresenius.com
info@fresenius.com
22
Contact points for the ÖkoTex 100 hallmark :
DEUTSCHE ZERTIFIZIERUNGSSTELLE
ÖKO-TEX
Frankfurter Str. 10-14
D - 65760 Eschborn
Tel.: +49 – 6196 – 966230
Fax: +49 – 6196 – 966226
www.oeko-tex.com
info@oeko-tex.com
TESTEX
Swiss Institute for Textile Testing –
International Secretary of the
Oeko-Tex Association
Gotthardstr. 61
CH - 8027 Zürich
Tel.: +41 – 1 – 206 42 35
Fax: +41 – 1 – 206 42 51
www.oeko-tex.com
info@oeko-tex.com
TÜV RHEINLAND
BERLIN BRANDENBURG
(all kinds of safety and quality testing)
Am Grauen Stein
D - 51105 Köln
Tel.: +49 – 221 – 806 2151
Fax: +49 – 221 – 806 3406
www.tuv.com
webmaster@tuv.com
23
VII
A P P E N D I X
SOURCES OF INFORMATION
E u r o p e :
AEDT
(European Association of National
Organisations of Retailers)
9-13/4th Avenue des Nerviens
B - 1040 Bruxelles
Tel.: +32 – 2 – 230 5296
Fax: +32 – 2 – 230 2569
www.aedt.org
info@aedt.org
EUROSTAT
(Statistical office of the European
Union)
Bâtiment Joseph Bech
5, rue Alphonse Weicker
L - 2721 Luxembourg
europa.eu.int/comm/eurostat
EURATEX
(European Apparel and Textile
Organisation)
24, rue Montoyer
B - 1000 Bruxelles
Tel.: +32 – 2 – 285 4892
Fax: +32 – 2 – 230 6054
www.euratex.org
info@euratex.org
F r a n c e :
CENTRE TEXTILE DE CONJONCTURE
ET D’OBSERVATION ECONOMIQUE
(CTCOE)
Centre for the Observation of
Economic Development
37-39, rue de Neuilly BP 249
F - 92113 Clichy
Tel.: +33 – 1 – 4756 3030
Fax: +33 – 1 – 4756 3016
ifm@ifm-paris.org
24
G e r m a n y :
Bfai – BUNDESAGENTUR FÜR
AUSSENWIRTSCHAFT
(foreign trade information Germany
and EU)
Agrippastr. 87-93
D - 50445 Cologne
Tel.: +49 – 221 – 205 7000
Fax: +49 – 221 – 205 7212
www.bfai.de
webkontakt@bfai.de
BUNDESAMT FÜR WIRTSCHAFT
(BAW)
(German Economic Office)
Frankfurter Str. 29 – 31
D - 65760 Eschborn
Tel.: +49 – 6196 – 908-0
Fax: +49 – 6196 – 908-800
www.bafa.de
STATISTISCHES BUNDESAMT
(German Statistical Office)
Gustav Streesemann Ring 11
D - 65189 Wiesbaden
Tel.: +49 – 611 – 752405
Fax: +49 – 611 – 753330
www.destatis.de
info@destatis.de
I t a l y :
INSTITUTO NAZIONALE DI STATISTICA
(ISTAT)
(National Statistical Office)
Via Cesare Balbo, 16
I - 00100 Roma
Tel.: +39 (0) – 6-46 73 1
www.istat.it
info@istat.it
MARKET STUDY CLOTHING SECTOR
DATABANK
Sede Centrale
Via dei Piatti, 11
I - 20123 Milano
Tel.: +39 (0) – 2-80 95 56
Fax: +39 (0) – 2-80 56 495
www.databank.it
info@databank.it
25
S p a i n :
CENTRO DE INFORMACIÓN TEXTIL
Y DE LA CONFECCION (CITYC)
C./Rosellon, 216-5 E
E - 08008 Barcelona
Tel.: +34-93-4876 949
Fax: +34-93-4872 362
www.cityc.es
ECONÓMICO Y SOCIAL DE ESPAÑA
(Economic and Social Council of
Spain)
(Dirección de Relaciones
Institucionales y Publicaciones)
C/Huertas 73
E - 28014 Madrid
Tel.: +34-91-429 0018
Fax: +34-91-429 4257
www.ces.es
INSTITUTO NACIONAL DE
ESTADÍSTICA
(National Statistical Office)
Paseo de la Castellana 183
E - 28071 Madrid
Tel.: +34-91-583 9100
Fax: +34-91-5839158
www.ine.es
SECRETARIA GENERAL DE
COMMERCIO EXTERIOR
(Secretary for External Commercial
Affairs)
P de la Castellana 14-16
E - 28046 Madrid
Tel.: +34-91-349 6100
Fax: +34-91-431 6128
www.icex.es
SARTEX
(Swiss Association for Textile Marking)
Beethovenstr. 20
CH - 8022 Zürich
Tel.: +41 – 44 – 289 79 49
Fax: +41 – 44 – 289 79 38
www.sartex.ch
26
SWISS ASSOCIATION FOR
STANDARDIZATION (SNV)
Bürglistr. 29
CH - 8400 Winterthur
Tel.: +41-52-224 54 54
Fax: +41-52-224 54 74
www.snv.ch
info@snv.ch
TESTEX – Schweizer Textilprüfinstitut
(Swiss Institute for Textile Testing)
Gotthardstr. 61
CH - 8027 Zürich
Tel.: +41 – 44- 206 42 42
Fax: +41 – 44 – 206 42 30
www.testex.ch
contact@testex.ch
TMC - TEXTIL UND MODE CENTER
ZÜRICH
Fashion Center
Talackerstr. 17
CH - 8152 Glattbrugg
Tel.: +41-43-211 59 20
Fax: +41-43-211 59 29
www.tmc.ch
contact@tmc.ch
U n i t e d
K i n g d o m :
EIU ECONOMIST INTELLIGENCE UNIT
15, Regent Street
GB - London SW1Y 4LR
Tel.: +44 – 20 – 7830 1007
Fax: +44 – 20 – 7830 1023
www.eiu.com
london@eiu.com
TAYLOR NELSON SOFRES plc.
Market Research
Westgate
GB - London W5 1UA
Tel.: +44-20-8967 0007
Fax: +44-20-8967 4060
www.tnsofres.com
research@tnsofres.com
TEXTILE OUTLOOK INTERNATIONAL
c/o Textiles Intelligence Ltd.
10 Beech lane
GB - Wilmsloe SK9 5ER
Tel.: +44 – 1625 – 536136
Fax: +44 – 1625 – 536137
www.textilesintelligence.com
subscriptions@textilesintelligence.com
27
DOING
BUSINESS
in Switzerland and the EU
– Requirements
for Access
Doing Business in Switzerland and the EU – Requirements for Access
1
MARKET ACCESS
1.1
QUALITY AND STANDARDS IN SWITZERLAND AND THE EU
3
1.2
PACKAGING, SIZE MARKING AND LABELLING
5
1.3
TRADE RELATED ENVIRONMENTAL
18
AND SOCIAL ISSUES
1.4
PRESENT TRADE REGULATIONS
23
1.5
IMPLICATIONS AFTER THE ELIMINATION OF THE
28
TEXTILES QUOTA
2
1
MARKET ACCESS
1.1 QUALITY AND STANDARDS
IN SWITZERLAND AND THE EU
The application of the European
Norms (EN) in the 25 EU and the 3
EFTA countries (including Switzerland) is the basis of a liberal intraEuropean trade and is valid in all
28 countries (more details:
www.cenorm.be).
However, there are no general EU
or Swiss standards for garments.
The rule is that importers in EU
countries as well as in Switzerland
generally fulfil the minimum quality
requirements regarding material
and making. The technical committee of the European Clothing
Association (ECLA) has published
an example of recommendations
for manufacturers of knitted and
woven clothing. Within these
recommendations ECLA, where
Switzerland as well as the EU 15
countries hold a membership
(please compare www.iafnet.
org/html/iafwebsites.htm) makes
a difference between:
- Recommendations concerning
the characteristics of product
which could be detected by an
experienced person withwithout aid of instruments ingeneral use. A fault is located if
the irregularity is evident in the
fabrics as it was delivered or in
the final product
- Recommendations concerning
the characteristics of fabrics,
which could be only recovered
with the help of appropriate
equipment. Description of each
characteristic includes definiti
on, testing method, minimum
quality standards and (if neces
sary) possible allowable toleran
ces compared with measure
ments of the sample.
Testing methods for clothing are
usually based on the ISO standards for Switzerland (www.iso.
ch) or they can also suit the requirements of European norms (EN)
or national standards of the EU
member states (such as DIN, SIS,
BS). ISO is made up of its members. A member body of ISO is the
national body ‘most representative of standardization in its country’. Only one such body for each
country is accepted for membership of ISO. Member bodies are
entitled to participate and exercise full voting rights on any technical committee and policy committee of ISO. The member body of
ISO in Switzerland is Swiss
Association for Standardization
(SNV) (more details can be taken
from www.snv.ch). ISO norms are
also applied in Switzerland.
3
The major standards for quality
and grading standards in the EU
and Switzerland are the following:
- for care labelling - ISO 3758
- for dimensional stability - DIN
53894 (steaming), DIN 54311
(fusing), ISO 3759/5077/6330
(washing/tumbling), ISO 3175
(dry cleaning)
changed over to international
standards over the last twenty
years. In order to counteract possible discrimination against the
Swiss clothing industry because
of the country’s non-membership
in the EU, Switzerland has accepted various EU-norms and references within the framework of
national legislation.
- for physical properties - ISO
5081 (tensile strength strip), ISO
5082 (tensile strength grab),
ISO 9290 (tear strength), BS
3320 (seam slippage), EN
22313 (abrasion resistance),
ISO 9876 (crease tendency/
recovery), BS 5811 (pilling tendency), SIS 650047 (fibre pene
tration), EN 24920 (spray test)
etc.
- for colourfastness to washing,
light, water and other external
influences - ISO 105
Although the EU attempts to activate free trade based on the harmonization of product requirements, each EU member state
and Switzerland has its own national market for apparel with its
respective requirements concerning quality, type of clothing,
colour, fabric, size etc.
Swiss norms are progressively
disappearing due to the appearance of international norms.
Following requirements inherent
to globalisation, Swiss industry has
4
1.2 PACKAGING, SIZE MARKING AND LABELLING
Packaging
Care must be given to the packaging of products if one intends to
export to EU countries and
Switzerland. Packaging must be
travel-steady, it must protect the
product against environmental
influences, theft, rough handling
etc.
As well as these basic demands,
some importers may have specific demands concerning packaging, such as printing information
about the order on the boxes
(order number, quantity, product
number, product description etc.).
Some materials like PVC are less
popular or even forbidden in some
countries because of environmental issues, and exporters
should discuss this matter with
potential clients and include the
cost of the special price in their
wholesale price, if required.
The EU has issued a Directive on
packaging and packaging waste
(94/62/EC) that is applicable, to a
large extent, to Switzerland as
well. Among other measures, the
Directive sets maximum levels of
concentrations of heavy metals in
packaging and describes requirements specific to manufacturing
and composition of packaging.
The Directive needs to be transposed to the national legislation of
the member states.
Since the last market survey
dated 2002, it has become
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 highly recommended.
Most of the previous systems,
such as the German packaging
waste programme the ‘Green
Dot’ - where trade and industry in
Germany and other EU countries
were obliged to take back packaging materials - have lost importance over the last 2-3 years,
mainly because of misuse of the
green dot which appeared almost
on every imported packaging without an obligation to take back
the packaging.
New legislation about wood pakkaging has recently been introduced. More detailed information
about packaging techniques and
the use of packaging materials
can be found on the website of
ITC (http://www.intracen.org).
5
Size marking
The following body measurements are used: body length,
chest size and hip size. These
three basic measurements determine the fitting of the garments.
The following sizes are similar in
Germany, the Netherlands and
Austria.
Size table for women's outerwear (body sizes) in cm:
Character sizes
XS
S
M
M
L
L
XL
XL
XXL
Figure sizes
34
36
38
40
42
44
46
48
50
Chest width
80
84
88
92
96
100
104
110
116
Waist size
61
64
68
72
76
81
86
91
97
Hip girth
86
90
94
98
102
106
110
114
118
Size table for men's outerwear (body sizes) except trousers/jeans
(see next table) in cm:
Character sizes
XS
S
S
M
M
L
L
XL
XL
XXL
Figure sizes
42
44
46
48
50
52
54
56
58
60
Chest width
84
88
92
96
100
104
108
112
116
120
Size table for men's trousers in cm:
Figure sizes
40
41
42
43
44
45
46
47
48
49
Waistband width
68
68
72
72
76
76
80
80
84
84
Side length
100
108
102
110
104
111
104
112
106
112
Figure sizes
50
51
52
53
54
55
56
57
58
59
Waistband width
88
88
92
92
97
97
102
108
114
120
106
113
108
114
108
114
111
111
111
111
Side length
6
Germany has a specific system
for the men’s sizes, which are
subdivided into three groups:
All attempts to harmonise the size
system at European level have so
far failed. The system is that in
some 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 equivalent to 40 in France and
42 in Italy. As mentioned above,
the UK uses a different system:
Women’s figure size 36 in
Germany and The Netherlands is
equivalent to 8 in the UK, 38 to 10
etc.
Apart from this discrepancy, the
different brands and retailers in
Europe use the same figures for
the sizes, but a lady’s size 38
might differ to quite some extent
from brand to brand.
a. Standard sizes: 44 46 48 50 52
54 56 58 60 62
b. Large sizes (shorter than standard sizes and wider at the hip):
24 25 26
c. Slim sizes (longer than standard
sizes and narrower): 84 86 88 90
94 98 102 106
Size Marking for Babies’ and
Children’s Wear
Jeans sizes
Years
Groups
0-2
2-6
6 - 12
12 - 14
14 - 16
Babies
Toddlers
Middle group/school
Preteens
teenagers
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.
Example: Conversion table for women’s sizes in inch and conventional sizes
Inches
26
27
28
29
30
31
32
33
34
35
36
Sizes in Germany
and Switzerland
34
-
36
38
-
40
42
-
44
-
46
7
and girls. The Swedish ‘Centilong’
system based on height values is
used in some European countries.
There is one standard for all these
sizes.
Infants’ Wear (body sizes)
For the purposes of sizing all children are best grouped into infants
(younger than seven years), boys
Body Sizes Infants in cm:
Height
50
56
62
68
74
80
86
92
98
104
Chest
40
42
44
46
48
50
52
54
55
56
Waist
40
42
44
46
48
49
50
51
52
53
Hips
41
43
45
47
49
51
53
55
57
59
Arm length
18
20
22
24
26
28
30
32.3
34.6
36.9
Inside leg length
16
19
22
25
28
31
34
37
40.6
44.2
Boys' wear (body sizes) in cm:
Height
110
116
122
128
134
140
146
152
158
164
170
176
182
188
194
Chest
58.0 59.0 60.0 62.0 64.0
67.0
70.0
73.0
77.0
81.0
85.0
88.0
91.0
94.0
97.0
Waist
54.0
55.0
56.0
57.0
59.0
61.0
63.0
65.0
68.0
71.0
74.0
77.0
80.0
83.0
86.0
Hips
59.0
61.0
63.0
65.0
68.0
71.0
74.0
77.0
81.0
85.0
89.0
92.0
95.0
98.0 101.0
Arm length
39.1
41.4
43.7
46.0
48.3
50.6
52.5
55.3
57.5
60.0
62.5
65.0
67.0
69.0
71.0
Inside leg
47.5
51.0
54.5
58.0
61.5
65.0
68.0
71.0
74.0
77.0
80.0
83.0
86.0
89.0
92.0
28.0
28.5
29.5
30.5
31.5
32.5
33.5
34.5
35.5
36.5
37.5
38.0
38.5
39.0
39.5
length
Neck
circumference
Girls' wear (body sizes) in cm:
Height
110
116
122
128
134
140
146
152
158
164
170
176
182
188
Chest
58.0
59.0
60.0
62.0
64.0
67.0
71.0
75.0
79.0
83.0
86.0
89.0
92.0
95.0
Waist
54.0
55.0
56.0
57.0
59.0
61.0
63.0
65.0
67.0
69.0
71.0
73.0
75.0
77.0
Hips
61.0
63.0
65.0
67.0
70.0
73.0
77.0
81.0
85.0
89.0
93.0
96.0
99.0
102.0
Arm length
39.1
41.4
43.7
46.0
48.3
50.6
52.8
55.0
57.3
59.5
61.5
63.5
65.5
67.5
Inside leg
47.5
51.0
55.0
59.0
63.0
67.0
70.0
72.5
75.0
77.5
80.0
82.5
85.0
87.5
28.0
28.5
29.0
29.5
30.0
30.7
31.5
32.2
33.3
33.7
34.5
35.5
36.5
37.5
length
Neck
circumference
8
Shirts and Blouses
In EU and Switzerland, sizes for
men’s shirts are based on neck
circumference in cm or inches
and vary respectively from 37-48
cm and from 15-19 in, 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, also in combination with the
usual shirt size. For women’s and
children’s wear, the standard
outerwear sizes are used.
Labelling
The International Association for
Textile Care Labelling (GINETEX
France - Groupement International d’Etiquetage pour l’Entretien
des Textiles, www.ginetex.org),
which represents the textile producing and retailing industries in 16
European countries (most of the
EU
countries
as
well
as
Switzerland and Tunisia as non-EU
countries included), has devised
an internationally applicable care
labelling system for textiles based
on symbols of pictograms. Only
those care labels issued by the
GINETEX may be used by the
retailers/manufacturers in the
GINETEX member countries.
The care identification symbols
are protected under trademark
law. The marks are owned by the
aforementioned GINETEX Group.
The care identification is also
covered by international standards (ISO 3758 / EN 23 758).
In Switzerland, the row of symbols
may not be reproduced, issued or
used without a special agreement
with SARTEX (Swiss Association for Textile Marking –
www.sartex.ch). The contracting
companies undertake to make
correct use of these symbols at all
times within the meaning of the
relevant guidelines.
These guidelines apply to all textiles and textile products sold in
Switzerland and require a declaration as to the kind and content of
the raw materials used. Pursuant
to the agreement with the user,
legal action will be taken in the
event of any breach of this undertaking. The textile labelling regulations set by the individual member
states of the European Union (EU
Standards) comply with the Swiss
guidelines and requirements. The
right to use these trademarks has
been given to the national member bodies of GINETEX. SARTEX is
independent in regard to its structure and operating methods, but
should adhere in all respects to
the use of internationally agreed
symbols (above) as well as to
technical regulations and decisions taken at the GINETEX level.
Commercial companies (wholesalers, importers etc.) are required to include the undertaking to
ensure correct care identification
and appropriate labelling in compliance with the Swiss guidelines
in their orders for deliveries.
9
There are two kinds of requirements in the EU and Switzerland:
Mandatory requirements contain
requirements like size, fibre content and care-labelling/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
other fibres must be mentioned.
An international care-labelling program is in use in many countries,
also outside the EU. The program
uses five basic symbols, which
relate to the properties of colourfastness, dimensional stability,
effect of retained chlorine (bleach), maximum safe ironing temperatures and certain other properties.
Voluntary requirements, such as
origin marking, brand or product
name and other consumer information.
The care label
- should be durably fixed to the
textile article,
- should be legible during the
whole lifetime of the article. In
particular it should withstand
the washing and dry cleaning
process it recommends,
- should be clearly positioned
where it is easily noted and
without interference from a
seam,
- should not show through the
article and spoil its appearance.
Other forms of information may
be combined on the same label
but clearly separated from each
other. Garments consisting of
easily separable parts should be
labelled on each of the parts.
There should only be one single
care label on an article even if the
different components have to
carry further information (for
example fibre content).
The object of labelling is to inform
the consumer and the commercial textile care industries when
buying, using or cleaning the articles. Therefore labels should be
easily detectable. The label should
be affixed permanently and positioned always at the same places
depending on the type of the article. Because of differences in
materials, production, demands of
fashion etc. these requests can
only partially be fulfilled and by way
of exception an alternative place
of positioning is given. To achieve
a maximum of conformity, recommended positions are laid down.
10
The International Textile Care Labelling Symbols (according to ISO 3758)
SYMBOLS
95C
MAXIMUM WASHING CARE PROCESS
TEMPERATURE
95° C
95° C
95C
50C
60° C
60° C
60C
40° C
40C
40° C
40C
30° C
30C
40° C
-
50° C
50C
40° C
40C
mechanical action normal
rinsing normal
spinning normal
mechanical action reduced (1)
rinsing at gradually decreasing temperature
spinning reduced
rinsing normal
spinning normal
spinning reduced
rinsing normal
spinning normal
spinning reduced
mechanical action much
reduced (1)
rinsing normal
spinning reduced
hand wash only
do not wash
spinning reduced
mechanical action much
reduced
rinsing normal
spinning normal
(1) corresponding to a load inferior to a normal load and a maximum liquor ratio
* symbols only used in some countries
11
SYMBOLS
CI
CARE PROCESS
Chlorine-based bleaching allowed only in a cold
and dilute solution
Do not use chlorine-based bleach
IRONING
Dots placed within the symbols
(1, 2 or 3 dots) indicate the maximum temperature in degrees
Celsius for ironing textile articles.
SYMBOLS
CARE PROCESS
Iron at a maximum soleplate temperature of 200° C
(steam iron may be risky)
Do not iron
12
DRY CLEANING
Letters (A, P and F) in the circle
refer to the solvents which may be
used by drycleaners.
Underlining the circle indicates
that a specific process should be
SYMBOLS
used (mild process with strict limitations on the addition of water
and/or mechanical action and/or
temperature during cleaning
and/or drying). In this case, selfservice cleaning is not allowed.
CARE PROCESS
A
Dry-cleaning in all solvents normally used for drycleaning with normal cleaning procedures
P
Dry-cleaning in all solvents normally used for drycleaning except trichloroethylene with normal cleaning
procedures. Self-service cleaning is possible
P
The bar placed under the circle indicates strict limitations on the addition of water and/or mechanical action
and/or temperature during cleaning and/or drying.
Self-service cleaning is not allowed
F
Only petroleum solvents may be used with normal
cleaning procedures
F
The bar placed under the circle indicates strict limitations on the addition of water and/or mechanical action
and/or temperature during cleaning and/or drying.
Self-service cleaning is not allowed
Do not dry-clean - no stain removal with solvents
TUMBLE DRYING
The tumble drying symbol (a circle in a square) must be completed by one or
two dots for two different temperature levels.
SYMBOLS
CARE PROCESS
No restrictions concerning the temperature of tumble drying after a washing process
Tumble drying possible at lower temperature setting
(60° C maximum) after a washing process
Do not tumble dry
13
In April 2005 the Textile Care
labelling System according to ISO
3758, valid worldwide, was
updated. The new care symbols
are listed below and concern
washing, bleaching and professional care. The other symbols
remain valid as before.
Washing
For additional washing processes
the following symbols have been
introduced:
30°C for normal treatment
30C
30°C for very soft treatment
30C
Bleaching
The empty triangle means that all bleaching processes are
allowed
The triangle with the two lines means that only oxygen based
bleach and no chlorine based bleach is allowed
The crossed black triangle means that bleaching is not possible (normal washing powder allowed)
Professional Textile Care (Cleaning on chemical and water basis)
New symbol: wet cleaning possible
W
The crossed empty circle means ‘No chemical treatment
possible’
The crossed full circle means ‘No water treatment possible’
Source: www.textileaffairs.com, 2006
14
Below is some useful general
information how to use the care
labels and what to write on them:
Care Labelling – General Recommendations for Exporters
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, modacrylic, 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.
Source: CBI, 2005
15
Ecolabels
In the late nineties and at the
beginning of the millennium, various competing ecolabels were
popular all over Europe. In the
beginning, they were mainly used
for under- and babywear. Many
labels have now disappeared and
the approach to the whole ‘ecological’ issue about textiles and clothing is broader and considers the
whole supply-chain from the production process up to the delivery
into the shop. Social and environmental aspects play an important
role (cf. chapter on ‘Trade Related
Environmental and Social Issues’).
Currently, the German/Swiss Ökotex Standard 100 is widely accepted in the EU countries and
Switzerland as well.
Öko-Tex 100
A recent statistical evaluation of
the certificates issued throughout
the world highlighted the importance of the Oeko-Tex Standard
100 as the world’s leading test
label of its type at this time. Today,
this label is the most widely used,
and among European consumers
best-known, ecolabel in relation to
textiles and clothing. It was developed in 1993 by the ‘International
Association for Research and
Testing in the field of Textile
Ecology’ and changed in 1997.
Companies in the EU, Switzerland
and throughout the world have
applied for more than 6000 certificates (2004 data). The headquar-
ter of Oeko-Tex International is
located in Zürich/Switzerland
(www.oeko-tex.com).
Obtaining the Öko-Tex label involves testing for harmful substances
according to the criteria which are
laid down for each product class.
Harmful substances may have
some effect on people and
human health. Importers from
outside the EU have become
aware of the significance of this
label. The number of the importers who ask for Öko-Tex is growing continuously.
The standard specifies four article
classes:
- Articles for babies
- Articles in direct contact with
skin
- Articles without direct skin
contact
- Decoration material
The standard consists of the following fundamental guidelines:
- Requirements apply to the end
product only
- Exclusion of certain dyes which
can cause cancer or allergic
reactions
- No flame retardant or biocide
treatment allowed
- Limitation of harmful substances in the end product (pesticides, formaldehyde, heavy
metals)
- Differentiated limitations according to textile types and target
groups
16
The Oeko-Tex 100 Standard comprehensively
addresses
the
Human Ecology component of
textile products. It evaluates and
screens for any harmful substances present within processed textiles intended to come into contact with consumers.
The advantage for clothing exporters of applying for Öko-Tex
Standard 100 is that this system is
built up in a modular way and
enables reliable and comprehensive assessment within a realistic
time frame. This is advantageous
when considering the nature of
the clothing and textile industry
with its fashion-conscious, dynamic pace.
Oeko-Tex Standard 100 plus
The Oeko-Tex scheme is available
to manufacturers world-wide.
Although it is far more cost effective to test at each stage of the
production process, it is still possible to certify the finished product
itself at any time. Another advantage of the system is, that if a product is checked and certified at a
particular stage of the production
process chain, it can then be used
in the next stage without having to
be re-tested.
The ‘Oeko-Tex Standard 100 plus’
label was awarded for the first
time in 1999. This related to a finished product which fulfilled the
requirements of the Oeko-Tex
Standard 100 and was also produced only on sites carrying the
Oeko-Tex Standard 1000 licence.
Generally speaking, it can be
recommended
that
clothing
exporters from developing and
emerging countries should concentrate on this ÖkoTex 100 label.
The Öko-Tex label can be used to
distinguish a textile product from
competitors.
The designation is restricted to
one year, after which the product
will need to undergo new testing.
The Öko-Tex Standard 100 as well
as the Ökotex 100 plus label have
achieved a worldwide acceptance with an increased number of
registered companies also in Asia
and South America.
The first edition of the Öko-Tex
Standard 1000 was issued in
1995. It outlined the requirements
for environmentally friendly production. Manufacturing sites fulfilling a strict set of criteria, addressing areas such as banned chemicals and harmful manufacturing
processes were licensed to carry
the label ‘Umweltfreundliche
Betriebsstätte’ (lit. Environmentally Friendly Manufacturing Site)
which they could use as proof of
an environmental management
system. First organizations were
subsequently audited in a pilot
project.
17
1.3 TRADE RELATED ENVIRONMENTAL AND SOCIAL
ISSUES
Apart from legal requirements,
nowadays producers are being
confronted more and more with
additional requirements. EU and
Swiss buyers want more information from producers, for example
about the social conditions at their
production sites or environmentally sound production. The
German Karstadt/Quelle Group,
for instance (one of the largest
European clothing retailers) stated
in June 2005, that before signing
any contract their buyers are
obliged to check the fulfilment of
the social standards at the production site. Karstdt in this respect
works with the BSCI programme
(more details under www.bscieu.org). Although the requirements in this field are not a 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. The
major standards and current market requirements are described in
this chapter.
Environmental Requirements
Environmental aspects play an
important role for outerwear
manufacturers
interested
in
exporting to the European market
given that environmental aspects
are a major issue in the EU and
Switzerland. Besides governmental actions (legislative, regulations),
a strong consumer movement is
not to be underestimated, especially in the Northern and Western
parts of the EU (Scandinavia,
Germany, Netherlands, United
Kingdom) and in Switzerland.
These aspects are not just a trend
- these are lasting issues, which,
together with other determinants
such as price and quality, have a
strongest impact on the positioning of a supplier in the European
market.
The capacity of a company to use
the environmental approach
towards its products such as ecolabels (for products, see also
Ecolabels), environmental management standards (for the
whole organisation) and production processes are ‘green’ marketing tools, which have been created by governments and private
parties.
Being a part of the business chain,
companies in developing countries may also become responsible for negative side effects of
their business and their impact on
society, the environment and their
employees.
18
Environmental Management System
An ‘Environmental Management
System’ (EMS) is important for
environmental protection and pollution prevention in the production
phases. It is a management tool
which enables an overview of the
environmental impact of the company and the possible way it could
be diminished. At the moment
there are two general voluntary
standards with which manufacturers can comply: ISO 14001 and
EMAS, both of them based on the
popular ISO 9000 series of quality
management standards.
The EU’s Ecological Management
and Audit Scheme (EMAS) has
been operating since 1995. It
applies to companies with production facilities within the EU and
therefore is not relevant for exporters from developing countries.
However, ISO 14001 is favoured
by exporters to the EU and
Switzerland as well.
The ISO 14001 Environmental
management system was published in November 1996. It has a
similar impact to the ISO 9000
Quality Management Systems
series. The objective of ISO 14001
standard is to provide companies
with the necessary elements of an
environmental
management
system, which can be integrated
into business policies to achieve
environmental and economic
goals, such as compliance with
legislation and demands set by
the company as well as continu-
ous improvement of the environmental performance of the company. ISO 14001 specifies only
general requirements for an environmental management system,
but it contains no environmental
performance criteria.
Product related requirements
The main characteristics of the
production process are the vast
quantities of water required and
the variety of chemicals used in
the processing stages, which
cause much waste. Typical environmental problems associated
with the production of textiles are
water pollution because of discharge of untreated effluent. Liquid
wastes arising from washing contain a substantial organic and suspended pollution load, such as
fibres and grease. Effluents are
generally hot, alkaline, strong
smelling and coloured by chemicals used in dyeing processes.
Some of the chemicals discharged are toxic and can lower the
dissolved oxygen of receiving
waters, threaten aquatic life and
damage general water quality
downstream.
There are many ways to reduce
the amount of water used and
emitted. Concerning dyes and
pigments, there are many alternatives available which are less polluting. Other technologies make it
possible to use less dye and reduce or eliminate spillage of dyes.
19
Quality related requirements
A quality related requirement are
the so called Quality management
standards which refer to the
management of a company. This
is in contrast to most of the other
standards, labels and markings
described, all of which relate to
product or production 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. TQM 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
Azo dyes and other harmful
substances
Azo dyes are among the leading
colouring agents in the textile
industry, especially in developing
countries. Approximately 70% of
all dyes used in the textile industry
are azo dyes. There are about
2 000 different azo dyes, of which
approximately 200-300 may fall
under a ban. Dyes in the category
of direct, azoic/naphtol, disperse,
acid or basic dyes may split off
carcinogenic amines.
Many azo dyes above the concentration of 30 ppm are prohibited in the EU and also in
Switzerland. The ban on azo dyes
is applicable to all products that
are in contact with skin for long
periods of time. The manufacturer
must also take into consideration
the fact that the products, once
they have entered the EU, can be
‘re-exported’ or transferred easily
to
Switzerland
and
other
European countries. Therefore, it
is highly recommendable to follow
the Azo regulations.
The best way to avoid problems
with banned azo dyes is to use
only dyes which are absolutely
safe. Use dyestuff supplied by
reputable manufacturers, who
give the Colour Index numbers,
the generic names and material
data sheets. Ask for azo-safe certificates. Choose reputable certified laboratories.
Other substances used in the textile and clothing industry that are
banned (or allowed to a limited
extent) in some EU countries and
Switzerland are: pentachlorophenol (PCP), cadmium, formaldehyde and nickel. Polychlorobipheniles (PCB) and terphenyles
(PCT) have a total prohibition, as
do asbestos and certain flame
retardants.
20
Flame retardants
Flame retardants are used in textiles to reduce their flammability. Tri(2,3,-dibromopropyl)-phosphate
(TRIS) and tris-(aziridinyl)-phosphineoxide (TEPA) are both carcinogenic and mutagenic, which
means that these substances
may alter genetic material.
Polybromobiphenyles (PBB) are
highly persistent, carcinogenic
and reprotoxic. Moreover they
also have effects on the immune
system and the nerve system.
In the light of the European directive on ‘the restriction on the marketing and use of certain dangerous substances and preparations’ (76/769/EEC), the EU has
prohibited the use of these flame
retardants: TEPA, TRIS and PBB
are prohibited in textile articles
intended for skin contact. They
are also prohibited in Switzerland.
Social Requirements
Encouraged by consumer organizations, the consciousness of
ethical trading aspects has achieved growing emphasis in many
EU countries and in Switzerland.
This has led to the development
of codes of conduct by many
importers. There is a growing concern among buyers of clothing
about the use of child labour in the
factories of new suppliers.
Exporters who can guarantee that
their products are made without
child labour have a competitive
advantage over other products
and a better chance of establishing a long-term business relationship. Exporting companies in
developing countries mostly are
requested to apply principles of
corporate conduct compatible
with the Code of Conduct of their
partner company in the EU.
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 addition, the EU has added a
‘social clause’ to the Generalized
System of Preferences (GSP),
which allows for special import
tariff reductions for products that
are produced in a humane way.
The garment industry and the
trade associations in some EU
countries are developing a model
code of ethical conduct for the
production of all items. A similar
system for Switzerland is not planned as yet.
Occasionally, consumers or citizens form pressure groups
(sometimes even demonstrating
on the streets) to force government to put an end to business
practices they find unethical or
anti-social. Such ‘consumerist
movements’ succeeded in setting
government rules; the SA 8000
(Social Accountability) is an example of such. The fact that consumers don’t accept certain practices demands that suppliers adopt
new processes or materials.
21
Code of Conduct
A Code of Conduct was agreed in
September 1997 by European
textiles union (ETUF-TCL) and
EURATEX (employers’ organization). The agreement applies not
only to the European enterprises
(mainly EU and Switzerland), but
also to their subcontractors or
subsidiaries in developing countries. One objective of their development is to demonstrate a company’s social responsibility.
The core thought of the agreement is following: companies are
responsible for their social role.
Business ethics and integrity are
major determinants of the quality
of a company. Companies are
also responsible for establishing
their own General Business
Principles or Codes of Conduct.
These reflect the company’s position towards business ethics,
labour conditions, environment.
They should point out the contribution of the company to these
issues. The company also has to
introduce mechanisms which
measure the true effectiveness of
the Code of Conduct.
Social Accountability (SA 8000)
SA 8000 is an international standard for social accountability and
was founded in 1997. Its purpose
is to ensure ethical sourcing of
goods and services. It is a voluntary standard, which sets basic
standards for child labour, forced
labour, health and safety, freedom
of association and the right to collective bargaining, discrimination,
disciplinary practices, wage levels,
working hours and compensation.
The requirements in the standard
are based on recommendations
of the International Labour
Organization (ILO) and on agreements and conventions of the
United Nations (Human Rights,
Rights of the Child).
SA 8000 supports the demands
of consumers for worldwide social standards and is internationally
recognized. SA 8000 accreditation is valid for three years with surveillance and observation audits
every six months. Those that
meet the requirements have the
right to display the SA 8000 certification mark.
Socially acceptable production
has
gained
importance
in
Switzerland. Up to now, 20 auditors have been trained for the SA
8000 by the Swiss company
Amana SA, Aarau. Link Fair Trade
Guarantee represents the label of
Amana SA and operates as a seal
of approval for socially fair labour
conditions and social engagement in low wages countries. The
organization is aimed at the promotion and implementation of SA
8000. The advertising efforts of
the organization aim to make
Swiss companies buy ‘Fair
Fashion’.
22
Clean Clothes Campaign
The European wide ‘Clean
Clothes Campaign’ based in
Amsterdam, which is based on
the SA 8000 regulations, is also
politically
very
strong
in
Switzerland. This organization
publishes regular newsletters
regarding ‘social behaviour’ when
dealing with the supplier countries
of leading Swiss clothing retailers
and manufacturers (please compare www.cleanclothes.ch and
www.evb.ch).
More information can also be
requested from the Council on
Economic Priorities Accreditation
Agency (www.cepaa.org), with
headquarters in New York/USA.
Sources of Information
For detailed information about
environmental aspects relevant to
trade at EU level, please refer to
the websites of SIPPO and CBI
(www.sippo.ch and www.cbi.nl,
especially the CBI Access Guide.
For Switzerland, whose ecological
and environmental regulations are
similar to those of the EU, more
specific information can be found
in the CBI/SIPPO Eco-Trade
Manual. Other sources of information are the WTO web site
(http://www.wto.org),
the
European
Commission
(http://europa.eu.int) and OETH
(http://www.oeth.com).
1.4. PRESENT TRADE REGULATIONS AND OUTLOOK FOR
2005
European Union
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,
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
under the 4th Lomé Convention
for the African, Carribean and
Pacific (ACP) countries.
RGSP (Renewed Generalised
System of Preferences)
This agreement allows products
originating in the countries concerned to be imported at preferential tariffs or, for the least developed countries even 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 ceilings
do not exist any more.
23
As from 1 January 2006, the
general arrangement and the
‘EBA’
arrangement
under
Regulation No. 980/2005 will
enter into force and will continue
to apply together with the ‘GSP
Plus’ arrangement. The two special incentive arrangements for
the protection of labour rights and
of
the
environment
under
Regulation No 2501/2001 are
repealed from 1.1.2006.
Lomé Convention (for ACP countries)
The partnership agreement between the 25 European Union (EU)
member states and the African,
Caribbean and Pacific (ACP)
states marks five generations of
agreements between ACP-EC
sovereign states. It is the world’s
largest financial and political framework for North-South cooperation. Its main characteristics are:
the partnership principle, the contractual nature of the relationship,
and the combination of aid, trade
and political aspects, together
with its long-term perspective (5
years for Lomé I, II, and III, and ten
for Lomé IV). Products originating
in the ACP countries can be
imported without duties and quotas, when a ‘Movement Certificate
EUR.1’ is filled in by the exporter
and issued by the competent authorities, such as the local
Chamber of Commerce. Tariff
contingents and tariff ceilings no
longer exist.
Preferential duty regimes under
Free Trade Agreements (FTAs)
The EU also has many free trade
agreements with partners in the
region (the central European
countries, the Mediterranean
countries) and beyond (Mexico,
Chile). FTAs now increasingly
involve provisions affecting nontariff measures and regulatory
issues such as provisions on trade
facilitation and rule-making in
areas such as investment, intellectual property, government procurement, technical standards
and SPS issues.
The
following
Free
Trade
Agreements are available online:
- FTA under the EuroMediterranean Partnership
- FTA with Mexico
- FTA with Chile
- FTA with South Africa
Non-tariff barriers
Examples of non-tariff barriers are
anti-dumping measures, sanitary
sanctions, quota restrictions, environmental clauses and intellectual
property rights. The most important form of non-tariff barriers
regarding clothing is quota restrictions. Since 1995, the Multi Fibre
Arrangement (MFA) has been
taken
over
by
the
WTO
Agreement on Textiles and
Clothing (ATC).
24
The ATC calls for import restrictions on textile and clothing that
have already been lifted in four
distinct phases spreading over a
period of 10 years: 16% of imports
by volume in 1995, 17% in 1998,
18% in 2002 and the rest in 2005.
Many clothing items are already
quota-free, but WTO rules allow
importer countries to impose antidumping duties if there is evidence that markets are being disrupted by selling below costs.
- 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).
Financial instruments in the EU
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:
The awarding of tariff preferences
or the levying of ‘environmental
taxes’ on products is one of the
major instruments of the EU (besides legislation) to promote environmentally sound products.
Such preferential systems are the
common subsidy and support
schemes, Green GSP, which
works on the assumption that
extra preferences can be awarded on top of the preferences for
producers who show their commitment to the environment and
who search for cleaner production techniques to reduce the environmental damage from their production processes and final products. The EU principle ‘the polluter pays’ becomes obvious as
responsibilities for pollution prevention and clean-up are increasingly placed in the hand of the
polluter. European importers
faced with this will want to share
such extra costs with their developing country partners.
25
Switzerland
General Foreign Trade Conditions
- World Trade Organization (WTO)
and Free Trade Agreements
On July 1st, 1995 Switzerland joined the WTO (formerly GATT) and
since then has applied the ‘most
favoured clause’ regarding trade
to all WTO member countries. This
also applies to dealings with regions
and
countries
where
Switzerland has signed bilateral or
multilateral agreements on trade.
Furthermore, by joining the WTO,
Switzerland had to change most
of the non-tariff trade barriers to
customs duties.
Moreover, Switzerland is a member of the European Free Trade
Association (EFTA). The dismantling of tariffs by the EFTA, in parallel to the European Economic
Community (EEC), has eliminated
to a large degree the customs
duties between the European
Union (EU), the EFTA countries
and Switzerland, at least as
regards industrial products (including clothing).
Within the EFTA framework,
Switzerland has also made free
trade agreements with Bulgaria,
Croatia, the Czech Republic,
Estonia, Hungary, Israel, Jordan,
Latvia, Lithuania, Macedonia,
Mexico, Morocco, PLO, Poland,
Romania,
Slovak
Republic,
Slovenia and Turkey. Further, ‘panEuropean cumulation’ has been in
effect since July 1st 1997.
Switzerland has entered bilateral
trade agreements with numerous
other countries to prevent double
taxation and to protect and promote mutual investment.
THE SWISS GENERALISED
SYSTEM OF PREFERENCES
General Principles
The preferential treatment given
to exports of developing countries
is designed to help increase and
diversify their export. The Swiss
Generalised System of Preferences (GSP) was introduced on
March 1st, 1972 in compliance
with Switzerland’s intention to
implement Resolution 21 (II) adopted by the United Nations
Conference on Trade And
Development (UNCTAD) in 1968.
Beneficiaries of preferences
In principle, all developing countries and economies in transition
are eligible for preferences under
the Swiss scheme, with the
exception of countries or territories that have reached a high level
of development. The exclusion is
based on objective criteria. GSPbenefits will not be granted to
countries which are members of
OECD or have a free trade agreement with Switzerland. Also excluded are countries which the
Development Assistance Committee (DAC) of the OECD has
classified as a most advanced
developing country or territory
under Part II of its list of development aid recipients.
26
Scope of preferences
CUSTOM TARIFF
Switzerland grants preferential
reductions amounting to 50% of
the normal rate on textiles and
clothing. The least developed
countries benefit from exemption
for clothing and textiles. Complete
up-to-date information on custom
tariffs may be obtained from the
Federal Customs Administration
OZD.
Customs duties based on weight
Rules of Origin
The Swiss Scheme includes rules
of origin which the goods must
comply with in order to qualify for
GSP-treatment. To satisfy the
rules of origin, the goods have to
be either wholly produced in the
beneficiary country or they must
have undergone working or processing in a beneficiary country to
specific processing criteria laid
down in the regulations.
Swiss customs duties are based
on the ‘Harmonized System of
Classification’ which is applied
worldwide. Unlike most countries
that have a taxation system based
on value (customs duties ad valorem), the Swiss system is still
based on weight. It is the gross
weight that counts, i.e. the weight
of the goods together with that of
any packaging. Only in exceptional cases do the value of the
goods or other criteria such as the
number of items, serve as the
basis for taxation.
Switzerland imposes very modest
customs duties, amounting on
average to less than 2% of the
value of the industrial goods
(including clothing) concerned.
Customs clearance
The prerequisites for the origin of
import textiles and clothing
applied in the Swiss Generalised
System of Preferences have been
harmonised with EU and Norway.
The rules related to the origin of
manufactured goods were adapted to conform with the PanEuropean cumulation system of
October 1st, 1998. Therefore, textiles and clothing containing raw
materials from EU countries and
Norway may also be granted preference.
The basic documentation required includes the customs declaration, which must be accompanied
by the invoice with mention of the
weight and an attestation from the
exporter as to the origin of the
goods. A certificate of origin is
necessary if preferential customs
treatment is wished or if the merchandise is to be re-exported.
27
- The documents which must
accompany goods travelling by
rail are an international freight
waybill and two international
customs declarations.
- Goods travelling by post require an international dispatch
note and a customs declaration.
- The accompanying documents
should mention whether or not
the consignment is to be cleared through customs at the
border or at a particular customs office in the interior.
Value added tax (VAT)
At 7.6%, Switzerland has the
lowest VAT-rate in Europe. VAT
that has been pre-paid may be
recovered in certain cases.
1.5 IMPLICATIONS AFTER
THE ELIMINATION OF THE
TEXTILES QUOTA
The main challenges facing the
European Union and Swiss textiles
and clothing sector today are globalisation, modernisation and a
murderous competition. Market
access and fair trade have a higher priority for the textiles and
clothing sector than 5 years back.
Opening new markets, negotiations of bilateral agreements are
aimed at ensuring that industry
has time to adjust to full liberalisation.
EU and Swiss apparel imports
showed a constant increase in
recent years. In their outsourcing
strategies, EU and Swiss manufacturers prefer Eastern European
countries even over some Asian
countries with even lower wage
rates (such as Vietnam or China)
due to their geographical proximity and their higher quality standards. Thus, EU and Swiss companies remain able to respond
quickly to changing market
demands.
On the other side, non-EU clothing suppliers increasingly face
the fact that the reduction of the
number of suppliers on the retailers side continues. The German
based Institute for Management
and Consulting in Mannheim
stated in June 2005 that recently
a 13.5% overall reduction of suppliers has been reached. The
reduction of the number of suppliers is a part of the marketdriven optimisation of the supplychain, where the chains reduce
most (25% in 2004/2005).
The commercial relationships of
the
European
Union
and
Switzerland in textiles and clothing
are mainly governed by the WTO
Agreement on Textiles and
Clothing (ATC), which provides for
the progressive application of the
entire range of GATT rules to the
sector, including the gradual abolition of all remaining quotas by the
1st of January 2005 (not applicable for Switzerland as there are no
quota restrictions).
28
The EU has negotiated bilateral
textile agreements with a considerable number of third countries,
which are not as yet members to
the WTO. Those countries are
subject to quantitative restrictions
and/or a surveillance regime.
At the beginning of 2006, the
situation of the EU clothing markets, one year after the elimination
of all quotas in the clothing sector
after many years, is summarised
by the European Commission officially in the following way (Status
November 2005):
- The disruptive impact of liberalisation of Chinese textile exports to
the EU in the first nine months of 2005 has been limited to a fairly
narrow range of product categories.
- In these categories there have been absolute rises in textile
imports and steep falls in unit prices. Among the categories affected are the ten categories covered by the June 10 EU/China
Textiles Agreement.
- China’s share of exports to the EU in these textile categories liberalised on 1 January 2005 has increased dramatically at the
expense of traditional EU suppliers, mainly in Asia but also in North
Africa and the ACP. There has, however, been only a modest rise
in textile imports to the EU, either in the 35 products liberalised on
1 January 2005, or in total textile imports.
- A deceleration in the rate of growth of imports from China in the
products covered by the 10 June Agreement has already been
noticeable in September 2005.
29
Macro trends following liberalisation
1 January 2005
was to alleviate pressure on these
more vulnerable producers.
In general, in the first half of 2005,
China increased its exports to the
EU by 45% in value and by 40% in
volume. For products liberalised in
2005 there has been an increase
in China’s market share by 145% in
volume and 95% in value. This
suggests significant falls in unit prices - see below. In these products
China, the US and India are the
only significant providers to have
increased their exports in 2005.
India’s increase in exports by value
is 15%; the US’s, 10%.
Market disruption in a small number
of sectors
This has been at the expense of
other suppliers to the EU. All other
suppliers have suffered export displacement in products liberalised
in 2005. Pakistan, Indonesia,
Thailand, South Korea, the
Philippines, Taiwan, Hong Kong
and Macao have all seen exports
fall (by between 10% in the case of
Pakistan and 60% for Korea) in
value and volume. It is noteworthy
that the most significant displacement by China has been exports
previously originating from Hong
Kong, Macao and Taiwan.
Textiles exports from ACP countries for the first nine months of
2005 fell by 20%. Mauritius has
seen exports to the EU fall by
about 20% in value and volume.
Morocco has seen a fall in exports
of around 11% in value and volume.
Bangladesh has largely sustained
its market share in volume but with
a fall in value, suggesting pricecutting and rationalisation. One
purpose of the June Agreement
Serious market disruption has
been limited to a small number of
product sectors which have
experienced both double digit
absolute growth in exports, a rise
in Chinese exports, and steep falls
in unit prices sufficient to force
restructuring.
All ten categories covered in the
June 10 Agreement have experienced very large overall rises in
Chinese imports - as high as over
500% in some cases. Eight of the
ten sectors covered in the June 10
Textiles Agreement have seen
double digit absolute growth in
imports, alongside huge growth in
exports from China. There has
been an absolute rise in imports of
T-shirts (24%), pullovers (17%),
men’s trousers (23.6%), blouses
(13%), bed linen (17%), dresses
(8%), bras (12.5%), table and kitchen linen (14.7%) and flax yarn
(59%). All the ten safeguarded
sectors have shown absolute
growth. However, there has been
a deceleration of the growth of
imports from China in the ten
safeguarded products, which
have all experienced lower rates
of growth in September as compared with the previous period.
Such deceleration will become
more apparent in the coming few
months due to the fact that in
seven of the products covered by
the MoU, the ceilings for imports
have been reached.
30
There have been drops in unit
value in Chinese exports in all
except five of the 35 products
liberalised in 2005. These include
drops in unit price of between 18%
and 60% for all Chinese exports
covered by the June 10 textiles
agreement, with the exception of
only one product, flax yarn, where
the unit price drop was 5.5%.
Although EU producers have suffered from market disruption in
the categories affected as a result
of the fall in unit prices and greater
Chinese competition in export
markets, there has been only a
slight increase of textile imports
into the EU in the first nine months
of 2005 (3.7% in value and 4.9% in
volume), and also a modest
increase in total imports in the
products liberalised in 2005 (4.8%
in value and 10.4% in volume).
Obviously, the first effect of the elimination was booming imports
from China against much lower
prices in the first months of 2005
and objections from 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.
Quantitative levels apply from 11
June 2005, however, at the time
of the agreement, quotas for jerseys, jumpers etc. were already
filled. More information can be
found on http://sigl.cec.eu.int or
http://export-help.cec.eu.int/.
31
However, the risk of EU importers
not receiving all goods from China
ordered in 2006 and 2007 is comparatively high, especially in the
sensitive categories mentioned
above. Thus the EU buyers will
make sure that the Chinese supplier really has sufficient export
licenses for the ordered goods
and finally will be able to deliver the
agreed quantities. An import stop
for clothing from China to the EU
in 2006 is also possible for single
categories, especially as many
2005 contracts have been transferred into 2006. E.g. already
today (October 2005), the 2006
quota has been exceeded in the
categories of knitwear, trousers
and dresses.
Cologne,1st of February 2006
JP CONSULTING Associates
Bruecker Mauspfad 623
D-51109 Köln / Cologne - Germany
Tel.: +49 – 221 – 84 49 54
Fax: +49 – 221 – 84 49 86
This situation with China is an
opportunity for other supplying
countries, mainly from Asia and
also the Mediterranean area.
Some European buyers tend to
look for other Asian countries
which are attractive alternatives to
China, such as Vietnam, Pakistan,
Indonesia, Sri Lanka and so on.
However, the experts agree on
one point, that the position of
China as a supplying country for
clothing will remain dominant and
the fight for supply shares to the
EU among developing and emerging countries has started.
According to a study of the
German Technical University in
Darmstadt,
Laos,
Vietnam,
Cambodia and Bangladesh will be
the ‘loosing countries’.
32

WEAR OUTER

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