New Outerwear brochure - Switzerland Global Enterprise
Transcription
New Outerwear brochure - Switzerland Global Enterprise
Overview and Marketing Guide on Switzerland and the Major Markets in the European Union OUTERWEAR OFFICIAL PROGRAMME About us The Swiss Import Promotion Programme is part of Switzerland Global Enterprise and was commissioned by the Swiss government and aims to support companies in our partner countries to enter new markets. We provide support and advice and offer various other services to help exporters launch their products and services in new markets. More than 2,000 companies have taken part in the programme over the last five years. We collaborate with local organisations and invest time and effort in long-term partnerships to ensure our knowledge is transferred consistently and successfully YOUR BENEFITS – OUR SERVICES We inform We provide you with detailed information about specific industries, as well as the conditions in potential target markets. We open doors We collaborate with companies interested in exporting their products and help you meet the necessary requirements to enter new markets (e.g. attaining certification). By joining the programme, you will benefit from our expert knowledge and experience along the entire value chain. We support During our SIPPO training sessions, you will receive coaching on topics such as export marketing and quality assurance. You will be familiarised with the standards expected by European and Swiss customers. We connect The programme participants can take advantage of our extensive network. We will put you in contact with potential buyers at trade missions, study tours and international trade fairs to help you develop your potential to the fullest. CONTACT For further information, please visit our website www.switzerland-ge.com/sippo Switzerland Global Enterprise Stampfenbachstrasse 85 CH-8006 Zürich T +41 44 365 51 51 OUTERWEAR 2013 2 Automatic table of content 1. Introduction 10 1.1 Background and methodology of the market survey 10 1.2 Product groups analysed 1.3 Market survey of the 12-eu new member countries 12 1.4 Clothing consumption 12 1.5 Marketing and distribution 14 2. France 15 2.1 General economic situation 15 2.2 The market for outerwear 15 2.2.1 Market size 15 2.2.2 Market Characteristics 15 2.2.3 Demographic characteristics 16 2.2.4 Retail sales by product category 17 2.2.5 Consumer behaviour 18 2.2.5.1 Consumer preferences 18 2.2.5.2 Consumer Expenditures 19 2.2.6 Price development of clothing 20 2.3 Imports 20 2.3.1 Total imports 20 2.3.2 Outward processing trade (OPT) 23 2.3.3 Largest suppliers of outerwear 24 2.4 Trade structure 26 2.4.1 Developments in the retail trade 26 2.4.2 Leading retailers 27 2.4.3 Distribution channels 28 2.4.3.1 Retailers 28 10 2.4.3.1.1 Independent retailers 28 2.4.3.1.2 Clothing multiples 28 2.4.3.1.3 Department and variety stores 29 2.4.3.1.4 Hyper- and supermarkets 29 2.4.3.1.5 Home shopping companies 29 2.4.3.1.6 Sports shops and other chains 29 2.4.3.1.7 Other channels 29 OUTERWEAR 2013 3 2.4.3.2 Sales intermediaries 29 2.4.3.2.1 Clothing manufacturers 29 2.4.3.2.2 Central buying associations 30 2.4.3.2.3 Sales Agents 30 2.4.3.2.4 Importers/wholesalers 30 2.5 French fashion trade fairs 31 2.6 List of major buyers in France 33 3. Germany 40 3.1 General economic situation 40 3.2 The market for outerwear 40 3.2.1 Market size 40 3.2.2 Market characteristics 40 3.2.3 Demographic characteristics 41 3.2.4 Retail sales by product category 42 3.2.5 Consumer behaviour 43 3.2.5.1 Consumer preferences 43 3.2.5.2 Consumer expenditure 44 3.2.6 Price developments of clothing 46 3.3 Imports 46 3.3.1 Total imports 46 3.3.2 Outward processing trade 49 3.3.3 Largest suppliers of outerwear 50 3.4 Trade structure 52 3.4.1 Developments in the retail trade 52 3.4.2 Leading retailers 56 3.4.3 Distribution channels 56 3.4.3.1 Retailers 57 3.4.3.1.1 General clothing retail 57 3.4.3.1.2 Department stores (Purchasing and stores) 57 3.4.3.1.3 Sport shops 58 3.4.3.1.4 Home shopping companies (Mail order) 58 3.4.3.1.5 Food trade 58 3.4.3.1.6 Others (FOC) 58 3.4.3.2 Sales intermediaries 58 3.4.3.2.1 Clothing manufacturers 58 3.4.3.2.2 Central buying associations 58 OUTERWEAR 2013 4 3.4.3.2.3 Sales agents 58 3.4.3.2.4 Importers / wholesalers 59 3.5 German fashion trade fairs 59 3.6 List of major buyers in Germany 61 4. Italy 71 4.1 General economic situation 71 4.2 The market for outerwear 71 4.2.1 Market size 71 4.2.2 Market characteristics 71 4.2.3 Demographic characteristics 72 4.2.4 Retail sales by product category 73 4.2.5 Consumer behaviour 73 4.2.5.1 Consumer preferences 73 4.2.5.2 Consumer expenditure 74 4.2.6 Price developments of clothing 76 4.3 Imports 76 4.3.1 Total imports 76 4.3.2 Outward Processing Trade (OPT) 80 4.3.3 Largest suppliers of outerwear 81 4.4 Trade structure 83 4.4.1 Developments in retail trade 83 4.4.2 Leading retailers 84 4.4.3 Distribution channels 84 4.4.3.1 Retailers 84 4.4.3.1.1 Independent retailers 85 4.4.3.1.2 Clothing multiples 85 4.4.3.1.3 Department/variety stores 85 4.4.3.1.4 Mail-order houses 86 4.4.3.1.5 Hyper- and supermarkets 86 4.4.3.1.6 Sport stores 86 4.4.3.1.7 Others 86 4.4.3.2 86 Sales intermediaries 4.4.3.2.1 Clothing manufacturers 86 4.4.3.2.2 Sales agents 87 4.4.3.2.3 Importers and wholesalers 87 4.5 87 Italian fashion trade fairs OUTERWEAR 2013 5 4.6 List of major buyers in Italy 90 5. Denmark 97 5.1 General economic situation 97 5.2 The market for outerwear 97 5.2.1 Market size 97 5.2.2 Market characteristics 98 5.2.3 Demographic characteristics 98 5.2.4 Retail sales of clothing 99 5.2.5 Consumer behaviour 100 5.2.5.1 Consumer preferences 100 5.3 Imports 101 5.3.1 Total imports 101 5.3.2 Outward Processing Trade (OPT) 104 5.3.3 Largest suppliers of outerwear 105 5.4 Trade structure 107 5.4.1 Developments in the retail trade 107 5.4.2 Leading retailers 107 5.4.3 Distribution channels 108 5.5 Denmark fashion trade fairs 108 5.6 List of major buyers in Denmark 109 6. Switzerland 6.1 General economic situation 112 6.2 The market for outerwear 113 6.2.1 Market size 113 6.2.2 Market characteristics 113 6.2.3 Demographic characteristics 113 6.2.4 Retail sales by categories 114 6.2.5 Consumer behaviour 115 6.2.5.1 Consumer preferences 115 6.2.6 Price development of clothing 116 6.3 Imports 117 6.3.1 Total imports 117 6.3.2 Outward Processing Trade (OPT) 117 6.3.3 Largest suppliers 118 6.4 Trade structure 118 6.4.1 Developments in the retail trade 118 OUTERWEAR 2013 6 112 6.4.2 Leading retailers 119 6.4.3 Distribution channels 120 6.4.3.1 Retailers 120 6.4.3.1.1 Specialists 121 6.4.3.1.2 Department/variety stores 122 6.4.3.1.3 Home shopping companies 122 6.4.3.1.4 Hyper- and supermarkets 122 6.4.3.1.5 Others 123 6.4.3.2 123 Sales intermediaries 6.4.3.2.1 Clothing manufacturers 123 6.4.3.2.2 Central buying associations 123 6.4.3.2.3 Sales agents 123 6.4.3.2.4 Importers / wholesalers 123 6.5 Swiss fashion trade fairs 124 6.6 List of major buyers in Switzerland 125 7. United Kingdom 7.1 General economic situation 135 7.2 The market for outerwear 135 7.2.1 Market size 135 7.2.2 Market characteristics 136 7.2.3 Demographic characteristics 136 7.2.4 Retail sales by product category 137 7.2.5 Consumer behaviour 138 7.2.5.1 Consumer preferences 138 7.2.5.2 Consumer expenditure 138 7.2.6 Price development of clothing 139 7.3 Imports 140 7.3.1 Total imports 140 7.3.2 Outward Processing Trade (OPT) 143 7.3.3 Largest suppliers of outerwear 144 7.4.1 Developments in the retail trade 146 7.4.2 Leading retailers 147 7.4.3 Distribution channels 149 7.4.3.1 Retailers 149 135 7.4.3.1.1 Independent specialised retailers 149 7.4.3.1.2 Clothing multiples 149 OUTERWEAR 2013 7 7.4.3.1.3 Department stores 150 7.4.3.1.4 Home shopping companies 150 7.4.3.1.5 Hyper- and supermarkets 150 7.4.3.2 151 Sales intermediaries 7.4.3.2.1 Clothing manufacturers 151 7.4.3.2.2 Central buying associations 151 7.4.3.2.3 Sales agents 151 7.4.3.2.4 Importers / wholesalers 152 7.5 Uk fashion trade fairs 152 7.6 List of major buyers in uk 154 8. Doing business in Switzerland and the EU 161 8.1 Market access 161 8.1.1 Quality and standards in Switzerland and the EU 161 8.1.2 Packaging, size marking and labelling 162 8.1.3 Trade related environmental and social issues 175 8.1.4 Present trade regulations 179 8.1.5 Implications after the elimination of the textile quotas 182 9. Appendix 9.1 Associations of trade agents, wholesalers organisations and retail organisations in the countries analysed 183 9.1.1 Europe 183 9.1.2 France 183 9.1.3 Germany 183 9.1.4 Italy 184 9.1.5 Denmark 185 9.1.6 Switzerland 185 9.1.7 United Kingdom 186 9.2 Industry federations in Switzerland and EU-Countries 187 9.2.1 France 187 9.2.2 Germany 187 9.2.3 Italy 187 9.2.4 Denmark 188 9.2.5 Switzerland 188 9.2.6 United Kingdom 188 OUTERWEAR 2013 8 183 9.3 Major european trade fairs 189 9.3.1 France 189 9.3.2 Germany 189 9.3.3 Italy 190 9.3.4 United Kingdom 191 9.4 European trade magazines 191 9.4.1 France 191 9.4.2 Germany 192 9.4.3 Italy 193 9.4.4 Denmark 193 9.4.5 Switzerland 194 9.4.6 United Kingdom 195 9.6 Important addresses for environmental and social issues 197 9.6.1 Contact points for the Oeko-ex 100 Hallmar 198 9.7 Sources of information 199 9.7.1 Europe 199 9.7.2 France 200 9.7.3 Germany 200 9.7.4 Italy 200 9.7.5 Denmark 201 9.7.6 Switzerland 202 9.7.7 United Kingdom 203 OUTERWEAR 2013 9 1. INTRODUCTION 1.Introduction 1.1 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 overseas supplier. Secondly, a comprehensive list of addresses would help to gain more detailed information about the target market and to establish first contacts. The handbook includes facts and figures 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 about trade structure as well as prices and margins are provided. The 2013 survey covers six countries viz Switzerland, France, Germany, Italy, Great Britain and Denmark. The information collected for this study is the latest available from reliable international publications and should be used by the exporter as a basis for further individual market research to prepare the individual market entry strategy and to establish first contacts. The main sources of information for this study were evaluation of trade publications, research on internet, market reports, Eurostat, information from other trade promotion organisations, Chambers of Commerce, importers and / or textile associations, et al. 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. 1.2PRODUCT 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 genders 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 listed in the following table. OUTERWEAR 2013 10 1. INTRODUCTION Table 1: List of used HS codes HS Code 61 Category description Articles of apparel & clothing accessories - knitted or crocheted 61.01 Men’s or boys’ overcoats etc - knitted or crocheted 61.02 Women’s or girls’ overcoats etc - knitted or crocheted 61.03 Men’s or boys’ suits, ensembles etc - knitted or crocheted 61.04 Women’s or girls’ suits, ensembles etc - knitted or crocheted 61.05 Men’s or boys’ shirts - knitted or crocheted 61.06 Women’s or girls’ blouses - knitted or crocheted 61.09 T-shirts, singlets, tank tops etc - knitted or crocheted 61.10 Sweaters, pullovers, vests etc - knitted or crocheted 61.11 Babies’ garments & accessories - knitted or crocheted 61.12 Track suits, ski-suits & swimwear - knitted or crocheted 61.13 Garments, knitted etc, coated etc rubber, plastic etc 61.14 Other garments - knitted or crocheted 61.16 Gloves, mittens and mitts, knitted or crocheted 61.17 Other made-up clothing accessories, knitted or crocheted 62 Articles of apparel & clothing accessories - not knitted or crocheted 62.01 Men’s or boys’ overcoats, cloaks etc - not knitted or crocheted 62.02 Women’s or girls’ overcoats etc - not knitted or crocheted 62.03 Men’s or boys’ suits, ensembles etc - not knitted or crocheted 62.04 Women’s or girls’ suits, ensembles etc - not knitted or crocheted 62.05 Men’s or boys’ shirts - not knitted or crocheted 62.06 Women’s or girls’ blouses - not knitted or crocheted 62.09 Babies’ garments & accessories - not knitted or crocheted 62.10 Garments, of felt etc, or fabric impregnated etc 62.11 Track suits, ski-suits & swimwear - not knitted or crocheted 62.14 Shawls, scarves, mufflers, mantillas, veils and the like 62.15 Ties, bow ties and cravats 62.16 Gloves, mittens and mitts 62.17 Other made-up clothing accessories and parts of garments Source: Foreign Trade online OUTERWEAR 2013 11 1. INTRODUCTION 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 1.3MARKET SURVEY OF THE 12-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 2004 (Czech Republic, Cyprus, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, Slovenia) and two further new joining countries in 2007 (Bulgaria, Romania). Negotiations are in progress with a number of other candidate member states such as Croatia, Former Yugoslav Republic of Macedonia and Turkey. Table 2: Population and GDP of EU-12 countries (data for 2011) Population million Age 0-14 % Age 15-64 % GDP € billion GDP per capita 2011 ‘000 Euro 102.95 14.9% 70.2% 1060.37 10.83 7.37 13.2% 68.3% 41.21 5.51 10.49 14.5% 69.9% 167.11 15.85 Estonia 1.34 15.3% 67.6% 17.06 12.73 Cyprus 0.84 16.8% 70.5% 19.01 23.62 Latvia 2.07 14.2% 67.4% 21.75 9.80 Lithuania 3.05 14.9% 67.2% 32.90 10.27 Hungary 9.99 14.6% 68.7% 107.82 10.81 Malta 0.42 15.0% 69.3% 6.84 16.33 Poland 38.53 15.2% 71.3% 396.16 10.37 Romania 21.41 15.1% 70.0% 138.44 6.47 Slovenia 2.05 14.2% 69.3% 38.15 18.59 Slovakia 5.39 15.4% 72.0% 73.92 13.59 Countries New (12) EU countries Bulgaria Czech Republic Source: Eurostat 2012, World Bank, US Census Bureau 1.4 CLOTHING CONSUMPTION The EU market for outerwear amounted to € 259 billion in 2011. Consumption of outerwear grew 0.5% during the whole period 2008-2011. Germany is still the most important country in clothing consumption in the EU, but the difference between Germany and the United Kingdom (UK) has become smaller again. Five countries (Germany, Italy, UK, France and Spain) account for 75% of EU outerwear consumption. Consumers in the UK, Austria, Finland, Sweden and Luxembourg are the largest spenders on outerwear in the EU, while per capita consumption in the review period in the new EU member states was far below the EU average of € 528. OUTERWEAR 2013 12 1. INTRODUCTION Experts forecast that clothing expenditure in several of the new EU member states will continue to see robust growth in the period to 2010, while expectations in the major EU countries are moderately optimistic. The number of garments purchased per head of the population will continue to rise, but prices will not follow this growth rate. The populations are becoming more multi-ethnic and the average age is increasing. This will lead to new demands and consumer behaviour. Table 3: Outerwear consumption in the EU countries (2008-2011, € million) 2008 2009 2010 2011 Per capita € CAGR (08-11) Germany 51,642 48,352 51,550 53,347 618 1.1% Italy 41,776 40,333 42,406 42,794 698 0.8% United Kingdom 40,406 35,877 39,445 42,071 760 1.4% France 34,680 33,703 34,042 33,834 576 -0.8% Spain 21,000 20,319 20,812 21,965 462 1.5% Netherlands 9,527 9,464 9,675 9,677 578 0.5% Sweden 5,996 5,469 6,484 6,987 761 5.2% Belgium 6,398 6,531 6,827 6,983 615 3.0% Austria 6,203 6,315 6,609 6,688 737 2.5% Poland 5,889 4,796 5,745 6,078 132 1.1% Portugal 4,647 4,589 4,697 4,919 432 1.9% Greece 6,492 5,904 5,195 4,242 351 -13.2% Denmark 3,651 3,813 3,846 3,833 678 1.6% Finland 3,398 3,376 3,565 3,750 761 3.3% Ireland 2,666 2,530 2,249 2,184 477 -6.4% Czech Republic 2,320 1,768 1,818 1,862 200 -7.1% Hungary 1,405 1,124 1,095 1,139 100 -6.7% Slovakia 1,056 1,037 1,031 1,033 150 -0.7% Slovenia 838 831 847 857 463 0.7% Lithuania 666 571 543 610 204 -2.9% Luxembourg 462 501 519 558 1092 6.5% Cyprus 376 361 373 366 350 -0.9% Estonia 354 295 303 326 217 -2.7% Latvia 506 293 287 302 151 -15.8% Malta 147 131 155 160 300 2.9% Romania 2,320 1,788 1,979 1,979 149 -5.2% Bulgaria 638 592 541 541 143 -5.4% 255,458 240,662 252,638 259,085 528 0.5% EU 27 Source: Gherzi analysis based on Eurostat and previous years’ trend OUTERWEAR 2013 13 1. INTRODUCTION 1.5MARKETING AND DISTRIBUTION Developments in the retail sector, like a growing concentration at retail level, expanding by internationalisation and growing competition, lead to an increased demand for fashionable products against low prices. •• The EU market has witnessed the relentless growth of clothing multiple chains and franchised outlets, leading to the decline of the formerly strong independents’ sector. This trend will be continued in the coming years. •• The hypermarket format, with its strong non-food component and international character, plays an increasingly important role in outerwear sales in Western as well as in Eastern EU countries. •• The fast-changing demand in the clothing market is a significant factor. Because of the higher dynamics of the clothing markets in terms of more rapidly changing consumer preferences and more seasons per year, there is a general tendency in the clothing branch to demand shorter delivery times and smaller volumes of series and orders. •• The role of importing wholesalers and importers remains relatively important but will slightly decline, while the role of clothing multiples and, to a lesser degree, buying groups or franchise formula will increase in the coming years. Parallel to the trend for suppliers to make their clothing abroad is a trend for retailers or wholesalers to bypass the local industry totally, by means of direct imports. OUTERWEAR 2013 14 2. FRANCE 2.France 2.1 GENERAL ECONOMIC SITUATION France, the second largest Euro zone economy, weathered the 2008 financial and subsequent euro-area crisis relatively well compared to other advanced European countries. France suffered smaller output and employment losses than most advanced euro-area partners. However its recovery has been sluggish. As elsewhere in Europe, The 2010-11 economic recovery gave way to stagnation in 2012. Real GDP is expected to have grown at 0.2% in 2012 while unemployment rate rose to 10%. OUTLOOK The IMF predicts a moderate growth of 0.4 % in 2013 due to generally fragile condition of the European economy and an average medium-term growth of 1.3% p.a. from 2014 to 2017. 2.2 THE MARKET FOR OUTERWEAR 2.2.1 Market size France, which accounts for 13% of the population of the 27-member EU, is the fourth largest clothing market behind Germany, Italy and the United Kingdom. In 2011, the market size of outerwear in France amounted to € 26.84 billion, which is 65% of the total clothing market. The French clothing market is forecast to grow steadily between 2015 and 2018 to reach a value of € 43 billion, of which up to € 28 billion will be outerwear. Apparel imports, at € 14.57 billion, are slightly higher than local production at €14 billion. The imports of outerwear increased by 14% in terms of value from 2009 to 2011. In the same period local production increased by -32%, of which goods amounting to € 6.51 billion were exported. Table 4: Size of the French outerwear market, 2011 Value [€ bn] Import 14.57 Local production 5.76 Export 6.51 Total market size 26.84 Source: Eurostat 2012 2.2.2 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 universal expression ‘haute couture’ manifests the worldwide importance of French fashion and French clothing brands. Compared to other EU countries, The French consumers are highly price-conscious. The reasons for this can be found in an unemployment rate of around 10.3% and a relatively low economic growth rate. On the other hand, the French are said to be very fashion-conscious too. However, impulsive buying is 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. OUTERWEAR 2013 15 2. FRANCE 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 share in the French clothing market. In this scenario it is obvious that the French clothing retail system is very fragmented. 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. 2.2.3 Demographic characteristics The size and age structure of the population is one of the basic determinants of which products will be bought and how much will be spent on clothing. France’s population has increased at a very slow rate in recent years. This has been a result of a low birth rate narrowly outstripping the declining death rate. Rates of immigration have also decreased in recent years, further slowing population growth. The 15-24 age segment of the female population tends to be made up of fashionable consumers, with a tendency to spend a lot of money on their clothing and personal adornment. These consumers are also likely to look for new styles and designs. With life expectancy among the French population increasing significantly over the past ten years, in addition to the effects of the ‘baby boomer’ generation, the number of over-50s in the population has increased rapidly. Figure 1: Age structure of the French population by gender, 2012 Male France - 2012 Female 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 3 2.4 1.8 1.2 Population (in millions) Source: U.S. Census Bureau, International Data Base OUTERWEAR 2013 16 0.6 0 0 Age Group 0.6 1.2 1.8 2.4 3 Population (in millions) 2. FRANCE The following figure shows a breakdown of outerwear expenditure by demographic segment in 2011. Figure 2: Breakdown of outerwear expenditure by demographic segment in 2011 13% women men children 52% 35% Source: Gherzi calculations based on International outlook by French Institute of Fashion 2.2.4 Retail sales by product category Table 5 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. Table 5: Market share of outerwear by gender, 2008 and 2011(%) Women Men 2008 2011 2008 2011 Formal 33 30 38 36 Casual 40 42 32 33 Leisure 20 21 22 22 7 7 8 9 100 100 100 100 Active sports Total Source: Gherzi assumptions based on last years’ trend Table 6 indicates the women’s outerwear segment in % change of sales (consumption) from the year 2011. OUTERWEAR 2013 17 2. FRANCE Table 6: Sales of women’s wear by product category (% Change from 2011 to 2012) % change in the year 2012 Skirts 2.3% Dresses 3.6% Jeans Leggings Fashion shorts in town T-shirts -17.8% 13% 2% 28.7% Source: Fédération Française du Prêt à Porter Féminin 2.2.5 Consumer behaviour 2.2.5.1 Consumer preferences 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 children’s wear segment. The youngsters are also interested in sportswear, which is used also as everyday clothing. Sports like rugby, football and basketball are quite popular. The trends for ‘American’ styles strongly influenced by the ‘Hip- Hop 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. 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 old 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. Women’s wear follows the broad trend toward more casual and sporty garments. Several fashion forecasts announced that collections will be more feminine and will have less casual details. The younger men in France are more fashion-conscious, spending more on clothing in the last few years than before. The fact that casual wear is more common for the office is a particular trend which has grown in recent years. Children’s wear is more classic and formal for special occasions than in other EU countries, like The Netherlands and Germany. However, younger fashion brands have increased the last few years, and more and more have an adult look. OUTERWEAR 2013 18 2. FRANCE Trends in consumption ••In women’s wear, clothing is becoming more feminine. Luxury looking materials and colours are used to create a good feeling in answer to financial unstable times. ••The increasing feminization of clothing products could drive trends for clothing accessories, also for the use of pearls and embroidery. Luxury appearance materials and colours are used to create a good feeling, in answer to financial instable times. Other forecasts are: ••a-symmetrical openings and several layers will become popular. Several lengths can be created in one garment or in a combination of several garments, like skirt with long tunic or blouse and short waistcoat or short jacket on a top. ••Accents on the waist by large belts or accents on the neck by wide scarves in accent colours. ••Skirts remain popular in all types and kind of lengths. ••In general, there is much dynamism in consumer preferences at the moment. Cultural changes are succeeding each other rapidly. This makes predictions of consumer behaviour rather tricky. ••Babies’ wear is still classical and hardly follows the trends of adult clothing. Newborn collections are mainly plain or have childlike decorations and are less influenced by the casual trends, as in adult fashion. ••Materials, like cashmere and angora, are very expensive and delicate to treat, but in France where more luxury fashion is appreciated by women, this quality is and will become more popular. ••For the coming winter-season (2010/11) the trend is warm colours in hairy woollen yarns such as mohair, angora or cashmere. This combination gives knitwear a voluminous look and warm feeling. ••Tunics and long pullovers to wear like a dress combined with legging/trousers/tights will become more popular. ••Catwalk reports announced an upcoming trend for winter 2010/11: more accent on neck and shoulder, for example big collars or cowls. ••Consumers become more aware of sustainability issues. 2.2.5.2 Consumer Expenditures Taking the total consumer expenditure on manufactured goods as reference value, the share of consumer expenditures on clothing has declined by 0.6% from 2009 to 2011. The development of consumer expenditure of manufactured goods increased in the same period by 4.4% and the expenditure on total clothing and total outerwear by less than 1%. This is certainly due to two different factors, which are a) falling clothing prices due to cheap imports and b) to shift of expenditure to electronic goods and leisure. Table 7: Development of consumer expenditure in France 2009 2010 2011 Manufactured goods [€ bn] 261 266.4 272.6 Total clothing [€ bn] 38.4 38.8 38.5 14.7% 14.6% 14.1% 33.6 34.0 33.7 87.6% 87.7% 87.5% In % of manufactured goods Total outerwear [€ bn] In % of total consumption Source: Eurostat 2012 According to Table 8, which considers the expenditures on outerwear by gender in France, consumption of women’s outerwear clothing was € 17.9 billion in 2011 and accounted for 53.1% of total clothing consumption. OUTERWEAR 2013 19 2. FRANCE Table 8: Consumer expenditure on outerwear clothing 2009 2010 2011 Women [€ bn] 17.9 18.1 17.9 Men [€ bn] 9.6 9.7 9.6 Children (aged 3-14) [€ bn] 6.1 6.2 6.1 33.6 34.0 33.7 Total [€ bn] Source: Gherzi analysis based on Eurostat 2012 2.2.6 Price development of clothing Generall speaking, import prices of most selected products were increasing as below shows. Prices of total clothing imports into France increased during the period 2009-2011 with 4.8% annually, as well as from other EU countries also increased during the period mentioned with 2% annually. And Import Prices increased from DCs (Developing Countries) with 1.6%. Table 9: Development of average import prices of clothing 2006-2010, € 2009 2010 2011 2012 P CAGR 2009-11 Total imports 4.84 4.93 5.32 5.59 4.8% Intra-EU 6.22 6.30 6.48 7.17 2.0% Developing countries* 3.77 3.82 3.89 4.00 1.6% Source: Gherzi analysis based on Eurostat 2012 Note :* Estimated, P- Projected 2.3 Imports 2.3.1 Total imports In 2011, the total import of outerwear clothing (knitted and woven) in France was € 14.57 Billion. There has been a steady growth in imports which increased from € 12.74 Billion in 2009 to €14.57 Billion in 2011 at an annual growth rate of 7% Summary of Clothing Outerwear imports by France: 2009-2011 (Euro Bn) Total imports 2009 2010 2011 12.74 13.62 14.57 6.42 6.32 6.31 7.31 6.65 7.92 Of which Intra-EU imports Extra-EU imports Source: Eurostat 2012 OUTERWEAR 2013 20 2. FRANCE Source of Imports It is clearly evident from the above table that the value of imports from outside Europe (extra-EU) increased from € 6.32 Billion in 2009 to € 7.92 Billion in 2011 reflecting an increase in market share from 49% to 54% in the last three years. A detailed analysis of various export countries is shown in the subsequent tables. Product segments The clothing outerwear imports are composed of two product segments viz knitted outerwear and woven outerwear, with a slight tilt in favour of the latter (53% share). Overall, the largest segment in terms of value is knitted outerwear for both genders at € 4.70 Billion, representing 32% share of total imports. As shown in the aggregate table below, this segment consists of main products such as Jerseys, Pullovers, Cardigans, Gloves& Mittens and T-shirts. The second largest segment is woven outerwear for women & girls, with imports amounting to €3.6 Billion, representing 25% of total imports Product Segments – Import of Clothing outerwear by France, 2011(Euro Bn) Product segment Total Knits 6.82 0.50 Wovens 7.75 14.57 Total Men & Boys’ Women & girls’ Both genders Active sportswear 1.22 4.70 0.40 2.66 3.65 1.00 0.44 3.16 4.87 5.70 0.84 Source: Eurostat 2012 Table 10: Imports of knitted outerwear by gender and product categories, 2009-2011. 2009 2010 1,000 € 2011 Tons 1,000 € Tons Tons 1,000 € Coats, Raincoats, anoraks etc. (61.01) 1,191 45,481 2,175 46,634 2,540 52,203 Suits, jackets, outfits, trousers, shorts etc. (61.03) 1,857 101,940 5,224 105,142 5,862 113,001 Shirts (61.05) 9,741 273,965 13,811 274,995 15,672 334,680 Sub Total 12,789 421,386 21,210 426,771 24,074 499,884 Sub Total Extra EU 12,789 185,018 13,412 200,752 14,646 248,715 Coats, raincoats, anoraks etc. (61.02) 2,664 88,434 4,498 96,464 4,931 103,846 Suits, jackets, outfits, trousers, dresses, skirts etc. (61.04) 18,126 654,064 39,172 800,142 39,945 856,863 6,470 235,594 11,240 247,972 10,637 262,822 For Men or Boys For women or girls Blouses and shirts (61.06) OUTERWEAR 2013 21 2. FRANCE Sub Total 27,261 978,092 54,911 1,144,578 55,513 1,223,530 Sub Total Extra EU 27,261 458,122 33,223 586,661 32,730 637,649 T-shirts, singlets etc. (61.09) 48,722 1,403,136 94,187 1,562,580 87,835 1,634,531 Jersey, pullovers, cardigans, waistcoats, etc. (61.10) 62,310 2,083,285 103,135 2,228,807 106,085 2,313,208 Babies’ garments (61.11) 20,584 322,548 23,351 384,286 22,636 434,256 Garments rubberised, impregnated, etc. (61.13) 1,438 29,105 1,626 33,493 2,070 46,626 Gloves, mittens and mitts (61.16) 5,289 104,064 12,066 158,265 12,093 173,481 Other made-up clothing accessories (61.17) 4,468 73,790 5,292 94,896 5,057 100,277 Sub Total 142,812 4,015,929 239,656 4,462,327 235,776 4,702,378 Sub Total Extra EU 134,924 2,077,708 156,076 2,513,938 149,874 2,671,236 Track suits, ski suits and swimwear (61.12) 3,194 192,518 7,578 213,621 8,773 247,756 Special garments for professional sporting or other purposes (61.14) 5,424 129,412 6,166 150,391 4,969 143,558 Sub Total 8,618 321,930 13,744 364,012 13,742 391,314 Sub Total Extra EU 6,130 148,028 7,785 179,053 8,743 209,498 TOTAL 191,480 5,737,337 329,520 6,397,689 329,104 6,817,106 TOTAL EXTRA EU 181,103 2,868,876 210,496 3,480,405 205,993 3,767,097 For both genders Active Sportswear Source: Eurostat 2012 Table 11: Imports of woven outerwear by gender and product categories, 2009-2011 2009 2010 2011 Tons 1,000 € Tons 1,000 € Tons 1,000 € Coats, anoraks, windcheaters, etc. (62.01) 11,473 383,905 17,824 382,678 19,962 444,649 Suits, jackets, outfits, trousers, shorts, etc. (62.03) 48,232 1,494,984 78,959 1,526,672 78,860 1649,527 Shirts (62.05) 13,594 498,270 19,407 512,332 19,890 558,905 Sub Total 732,99 2,377,160 116,191 2,421,682 118,712 2,653,082 Sub Total Extra EU 73,299 1,177,100 78,903 1,279,545 76,545 1,394,223 For Men or Boys OUTERWEAR 2013 22 2. FRANCE For women or girls Coats, anoraks, windcheaters, etc. (62.02) 14,230 540,312 27,112 576,907 28,003 616,779 Suits, jackets, dresses, skirts, trousers, etc (62.04) 52,797 2,300,958 91,320 2,348,267 93,988 2,456,041 569,453 15,307 571,220 14,248 576,579 Sub Total 75,998 3,410,723 133,739 3,496,394 136,239 3,649,399 Sub Total Extra EU 75,998 1,594,096 85,287 1,819,052 81,895 1,914,766 Blouses and shirts (62.06) 8,970 For both genders Babies garments (62.09) 9,064 181,847 9,791 206,150 9,599 233,968 Others incl. Impregnated (62.10) 24,492 322,024 26,374 357,795 28,393 429,738 Shawls, scarves, mufflers, etc. (62.14) 2,878 165,281 5,094 192,842 6,824 219,000 Ties, bow ties and cravats (62.15) 355 36,596 513 34,346 567 35,165 Gloves, mittens and mitts (62.16) 872 30,912 1,943 38,065 1,624 38,333 3,090 65,119 3,262 66,389 2,723 5,0674 Sub Total 40,751 801,779 46,977 895,587 49,730 1,006,877 Sub Total Extra EU 26,817 460,298 30,452 513,873 32,266 597,329 Track suits, ski suits (62.11) 2,2134 411,387 22,660 410,687 22,660 444,389 Sub Total 22,134 411,387 22,660 410,687 22,660 444,389 Sub Total Extra EU 14,542 222,397 14,087 223,643 13,922 244,648 TOTAL 212,181 7,001,049 319,567 7,224,350 327,341 7,753,747 TOTAL EXTRA EU 190,655 3,453,892 208,729 3,836,112 204,628 4,150,965 Other made-up clothing accessories (62.17) Active Sportswear Source: Eurostat 2012 2.3.2 Outward processing trade (OPT) Outward Processing is the term used to describe a duty relief procedure established by the European Community (EC). It allows goods to be exported outside the European Union (EU) for processing or repair and then re-imported to the EU with a relief granted from import duties on the basis of the content of the EU goods in the final products. Outward processing enables businesses to take advantage of cheaper labour costs outside the EU, while encouraging the use of Community produced raw materials and intermediates to manufacture the finished products. The analysis of the largest suppliers of OPT outerwear into France in Table 6 shows a downturn in OPT. Overall, the OPT business plays a minor role in France, accounting for only 0.90% of the total woven outerwear clothing imports. OUTERWEAR 2013 23 2. FRANCE Tunisia is the most important OPT partner country for France. Morocco is second, as it was in the previous two years. Belarus is catching up to China and could become fourth in the coming years. Table 12: Largest supplying countries of OPT woven outerwear, 2008-2010 Position Country 2008 [‘000 €] Change from 2008 2009 [‘000 €] Change from 2009 2010 [‘000 €] 1 TUNISIA 22,275 16.3% 25,896 -28.1% 18,626 2 MOROCCO 18,668 62.2% 30,274 -42.1% 17,538 3 CHINA 8,699 -26.9% 6,362 30.7% 8,318 4 UKRAINE 14,141 -28.1% 10,173 -34.9% 6,620 5 MADAGASCAR 1,603 1174.9% 20,432 -74.3% 5,252 6 INDIA 244 341.3% 1,075 143.4% 2,615 7 BELARUS 4,583 4.7% 4,799 -52.0% 2,302 8 HONG KONG 677 112.4% 1,438 25.0% 1,797 9 SERBIA 1,344 -5.5% 1,271 20.6% 1,533 10 VIET-NAM 177 -70.8% 52 -73.5% 14 11 TURKEY 155 -35.8% 100 -89.5% 10 12 SWITZERLAND 0 0.0% 0 - 2 13 MAURITIUS 0 0.0% 0 - 1 14 UNITED STATES 15 0.0% 76 -99.2% 1 Total 74,360 37.2% 102,017 -36.6% 64,629 Source: Eurostat 2012 2.3.3 Largest suppliers of outerwear Table 7 provides a very good overview of the twenty major extra-EU countries supplying clothing to France from 2009 to 2011. The share of clothing imports from extra EU countries in France was 49.6% in 2009 and had slightly increased to 54.3% in 2011. The imports from outside the EU in 2011 amounted to € 7.9 billion, whereas € 6.7 billion were imported from the European Union. The main import countries for France from outside Europe are: China (€ 3.5 billion), Bangladesh (€ 0.9 billion) and India (€ 0.6 billion). Morocco and Tunisia are French speaking countries; this is a very important advantage for them when exporting to France. OUTERWEAR 2013 24 2. FRANCE Table 13: Largest extra EU supplying countries of outerwear, 2009-2011 2009 [‘000 €] Change from 2009 2010 [‘000 €] Change from 2010 2011 [‘000 €] 2,695,687 27.2% 3,427,942 4.5% 3,583,027 BANGLADESH 604,620 20.8% 730,104 23.0% 897,869 3 INDIA 584,438 3.6% 605,766 10.7% 670,795 4 TUNISIA 626,129 -0.4% 623,330 1.9% 634,917 5 MOROCCO 548,702 3.4% 567,347 0.9% 572,530 6 TURKEY 381,860 21.9% 465,542 4.4% 486,169 7 SWITZERLAND 166,454 -10.8% 148,441 16.2% 172,516 8 PAKISTAN 84,447 25.6% 106,031 19.8% 126,996 9 VIET-NAM 77,385 -5.4% 73,185 66.6% 121,960 10 MAURITIUS 90,218 0.8% 90,922 -8.7% 83,025 11 MADAGASCAR 86,946 -27.2% 63,333 30.0% 82,339 12 INDONESIA 64,184 8.8% 69,804 13.7% 79,352 13 THAILAND 55,773 3.4% 57,670 17.7% 67,894 14 CAMBODIA 25,253 -7.9% 23,247 65.9% 38,558 15 MALAYSIA 15,833 34.0% 21,216 33.4% 28,306 16 SRI LANKA 22,169 3.4% 22,917 9.8% 25,159 17 UNITED STATES 16,362 24.7% 20,406 20.4% 24,569 18 KOREA 16,287 44.3% 23,495 1.7% 23,883 19 HONG KONG 9,721 92.9% 18,753 13.5% 21,285 20 MACAO 7,333 -33.9% 4,846 17.7% 5,703 EU27_EXTRA 6,322,768 15.7% 7,316,517 8.2% 7,918,063 EU27_INTRA 6,415,618 -1.7% 6,305,521 5.5% 6,652,790 Total 12,738,386 6.94% 13,622,038 Position Country 1 CHINA 2 6.97% 14,570,853 Source: Eurostat 2012 Typically, the French consider themselves to be rather weak in foreign language skills. Moreover, they prefer to communicate in French. This fact should be considered by foreign manufacturers wishing to sell in the French market. The main import from European countries for France is: Belgium (€ 1.7 billion), Italy (€ 1.3 billion) and Germany (€ 1.03 billion) in the year 2011, these three countries’ share is 60% of total import form Intra EU. Much business with Belgium is done on a subcontracting basis. OUTERWEAR 2013 25 2. FRANCE Table 14: Largest intra EU supplying countries of outerwear, 2009-2011 Position Country 2009 [‘000 €] Change from 2009 2010 [‘000 €] Change from 2010 2011 [‘000 €] 1 BELGIUM 1,857,507 -15.0% 1,578,505 10.8% 1,749,502 2 ITALY 1,290,334 7.5% 1,387,104 -1.0% 1,372,744 3 GERMANY 1,011,285 2.1% 1,032,262 0.4% 1,036,623 4 SPAIN 688,401 11.0% 763,804 4.7% 800,021 5 NETHERLAND 434,970 -5.4% 411,546 20.7% 496,834 6 UK 330,416 4.4% 345,116 -3.8% 332,080 7 PORTUGAL 252,497 -4.9% 240,079 22.0% 292,907 8 ROMANIA 149,199 -10.4% 133,631 6.6% 142,484 9 BULGARIA 78,431 8.0% 84,690 11.5% 94,432 10 LUXEMBOURG 16,846 9.7% 18,481 -1.5% 18,207 EU27_INTRA 6,415,618 -1.7% 6,305,521 5.5% 6,652,790 EU27_EXTRA 6,322,768 15.7% 7,316,517 8.2% 7,918,063 Total 12,738,386 6.9% 13,622,038 7.0% 14,570,853 Source: Eurostat 2012 2.4 TRADE STRUCTURE 2.4.1 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. 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. In 2011 only 20% were sold by independent retailers. Within the last years, the multiples also (as in other European countries) invaded France, and consumers are more likely to buy in speciality chain stores with large outlets. 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 high-end 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’. OUTERWEAR 2013 26 2. FRANCE 2.4.2 Leading retailers In France, there are approx 33,000 active clothing retail companies, which have approx 47’000 stores, of which an estimated two thirds are owned by independent retailers, which have fewer than 5 outlets. The big number of specialists chains indicates that the French market is less concentrated than, for instance, the UK market. Important French groups are Vivarte, Auchan/Mulliez, Etam, GroupeBeaumanoir and Promod. These groups are also active in many European countries. The following table lists the major specialised clothing chains of French origin in France. Table 15: Major specialised clothing chains of French origin in France, 2009-2011 Clothing retail chain Parent company Website Number of outlets Association Mulliez www.kiabi.com 365 (456) Vivarte www.lahalle.com 573 Eurodif UOCR www.eurodif.com 79 Ecce www.armandthiery.fr ~500 Promod www.promod.eu 326 (1,007) Cime-Camaïeu www.camaieu.fr 601 (1,018) EtamDeveloppemt www.etam.com 483 (4,400) Association Mulliez www.pimkie.fr 261 (756) New Look (UK) www.mim.fr 320 Vivarte www.caroll.com 302 (459) Cache Cache GroupeBeaumanoir www.cachecache.fr 519 Patrice Bréal GroupeBeaumanoir www.patricebreal.fr 335 (14) Scottage GroupeBeaumanoir www.scottage.fr 147 Brice Brice www.brice.fr ~200 (220) Jules Association Mulliez www.jules.fr ~240 Jacadi Id Group www.jacadi.fr 106 (270) Okaidi / Obaidi / Jacadi Id Group www.idgroup.com ~560 (1117) Association Mulliez www.decathlon.com 250 (535) General Kiabi La Halle aux Vêtements Eurodif Men and women Armand Thierry Women’s wear Promod Camaïeu Femme Etam Pimkie Mim Caroll Men Children Sports Décathlon OUTERWEAR 2013 27 2. FRANCE Intersport Intersport Group www.intersport.com 580 (5400) Sport2000 Groupe Sport 2000 www.sport2000.fr 491 (2,919) Source: CBI, Individual websites - Note:Numbers in brackets including outlets abroad, ~Approx 2.4.3 Distribution channels Table 16 gives an overview on sales made by different clothing retail channels in 2011 to 2012. 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 20%) behind the multiples that have a share of 36%. The trend towards more concentration is also reflected by the relatively high share of super- and hypermarkets (10%). Home shopping companies took some 10% of sales value in 2012. Table 16:Mmarket shares of retail distribution of clothing in France, 2011 – 2012 [% of value] 2011 2012 Specialists 57% 56% Independent retailers 21% 20% Clothing multiples 36% 36% Non-specialists 43% 44% 5% 6% 11% 10% Home shopping companies 9% 10% Sports shops and other chains 9% 10% Other channels 9% 8% 100% 100% Department and variety stores Hyper- and supermarkets Total Source: IMF, Gherzi calculations 2.4.3.1 Retailers 2.4.3.1.1 Independent retailers The share of independent retailers decreased from 28% in 1995 to less than 20% in 2012. Independent retailers are defined as retailers with less than five ‘active’ outlets. There are approx 30,000 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 other countries. Figures indicate that the strong decline came to a stop in 2004, when there was an upward trend. Market share: < 20% in 2012 Trend: Decreasing 2.4.3.1.2 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 children‘s wear are numerous. There are three times more outlets of clothing multiples for women than for men. The largest player in the retail business is the Groupe Vivarte (formerly Groupe André). Groupe Vivarte owns the clothing chains Caroll, Kookaï, Creeks, Liberto OUTERWEAR 2013 28 2. FRANCE 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. Market share: 36% in 2012 Trend: Stable 2.4.3.1.3 Department and variety 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 (Pinault- Printemps-Redoute). Variety stores Mostly consist of the Monoprix chain (440 stores) which will soon belong to the distribution group Casino (Casino, Franprix, Leader Price, etc.). The importance of department stores has stabilised over the last few years after decreases in the last decade. Market share: 6 % in 2012 Trend: Slightly Increasing 2.4.3.1.4 Hyper- and supermarkets The grocery super- and hypermarkets offer comparatively more men‘s wear. 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. Market share: 10% in 2012 Trend: Slightly decreasing 2.4.3.1.5 Home shopping companies The mail-order business in France slightly increased during the past 3 years but still remains under 10%. 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. Home shopping companies 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 home shopping companies. Market share: 10 % in 2008 Trend: slightly increasing 2.4.3.1.6 Sports shops and other chains There are four relevant sports shops in France; Decathlon, Go Sports, Sport 2000 and Intersport. Sportswear is often used by the French youth and mixed with other styles. Market share: 10% in 2012 Trend: Increasing 2.4.3.1.7 Other channels The share of other distribution channels is decreasing. Other channels are those that do not fall into the definition of the above mentioned channels. Examples of such distribution channels would be markets, fairs, and factory outlets. Market share: 8% in 2012 Trend: Decreasing 2.4.3.2 Sales intermediaries 2.4.3.2.1 Clothing manufacturers 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 price conscious; on the other, imports of cheap garments from abroad lower the prices. Manufacturers have no OUTERWEAR 2013 29 2. FRANCE 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. Opportunities exist for exporters who are interested in forming relationships or partnerships with French producers. 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. 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. 2.4.3.2.2 Central buying associations 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 Inters port, Go Sport and Sport 2000. 2.4.3.2.3 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%. Clothing exports into the French market via a sales agent are very common. Especially in the case of France, it is recommended for foreign manufacturers 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. 2.4.3.2.4 Importers/wholesalers Some 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. OUTERWEAR 2013 30 2. FRANCE 2.5 FRENCH FASHION TRADE FAIRs Table 17: French fashion trade fairs 2012 - 2013 Trade fair Date Location Fatex Fair January, 2013 Paris International sourcing event for lingerie and swimwear 19 - 21.01.2013 Paris International fashion fair Prêt-á-Porter, Women’s Ready-to-wear and Accessories Collections 19 - 21.01.2013 Paris Beauté sélection 10 - 11.02.2013 Nantes International trade fair for the procurement of clothing and fashion accessories 12 - 15.02.2013 Le Bourget EXPOFIL 12 - 14.02.2013 Paris International trade fair for the textile industry 12 - 25.02.2013 Le Bourget March, 2013 Paris 10 - 11.04.2013 Paris June, 2013 Paris 06 - 08.07.2013 Paris 05.06 - 06.06.2013 Lille International platform for subcontracting to manufacturers of fashion and home textiles 07 - 09.07.2013 Paris International trade fair for the textile industry 12 - 25.09.2013 Le Bourget SPORT ACHAT 09.09 - 10.09 2013 Lyon SALON DU MARIAGE DE MONTPELLIER 21.09 - 22.09 2013 Montpellier 12 - 15.09.2013 Le Bourget BEAUTÉ SÉLECTION - LYON 07.11 - 18.11 2013 Lyon MARIAGORA (Wedding Fair of Marseille) 08.11 - 10.11 2013 Marseille VIVEZ NATURE LYON 22.11 - 25.11 2013 Lyon STOFFEN SPEKTAKEL REIMS 30.11 - 30.11 2013 Reims Nov. 2013 Quimper Not Confirmed Paris 25 - 28.01.2014 Paris January, 2014 Paris Salon du mariaged’arras February, 2014 Arras CTCO February, 2014 Lyon Indigo (creative textile design) February, 2014 Paris March 2014 Paris Vivez Bio Paris Made in France by Fatex, ‘Haute-Façon’ Fair. Who’s Next (Ready-to-wear International Exhibition) International fair for lingerie and swimwear brands TISSU PREMIER International trade fair for the procurement of clothing and fashion accessories SALON MADAME! International fair for sustainable fashion FAME (The new unifying event of international fashion) SALON INTERNATIONAL DE LA LINGERIE SALON VIVRE AUTREMENT OUTERWEAR 2013 31 RÉUNION EXPO March 2014 Saint-Denis, Réunion MADE IN FRANCE BY FATEX April 2014 Paris PARIS BRIDAL FAIR April 2014 Paris FRANCE PRODUCTION EXPO May 2014 Paris Source: Gherzi research, AUMA & Trade Fair dates The Prêt-à-Porter Trade Fair is an international women ready-to-wear exhibition with a ‘boutique’ section. The collections are normally presented on the classical pre-order 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. In the highly competitive European fashion world, French trade fairs are major opportunities for business and marketing on an international scale, although the ‘Ready-to-wear’ has slipped against the Italian and German clothing trade fairs in recent years. OUTERWEAR 2013 32 2. FRANCE 2.6LIST OF MAJOR BUYERS IN FRANCE Clothing Chain Stores CMC agnès b. 17, rue de Dieu F - 75010 Paris Tel.: +33 – 1 – 4003 45 00 Fax: +33 – 1 – 4003 45 50 www.europe.agnesb.fr mailing@agnesb.fr Product range: ladies’, men’s, children’s wear Price segment: high price level Number of outlets: 428 shops (51 inFrance) Caroll International 38, rue du Hameau F - 75740 Paris Cedex 15 Tel.: +33 -0- 810 30 40 30 Fax: +33 -01- 56 23 34 07 contact@caroll.com or adenaes@caroll.com (Direction commerciale internationale) www.caroll.com Product range: womenswear Price segment: mid-price level Number of outlets: 460 Boutiques worldwide (301 in France) Chattawak 29, boulevard des Italiens F - 75002 Paris Tel.: +33 – 1 - 44 94 80 60 Fax: +33 – 1 – 42 66 93 92 www.chattawak.fr courrier@chattawak.fr Product range: ladies’, menswear Price segment: mid-price level Number of outlets: 130 shops including 25 affiliated Brice 152, avenue Alfred Motte F - 59100 ROUBAIX Tel.: +33 (0)3 20 99 36 36 www.brice.fr contact@brice.fr Product range: menswear Price segment: mid-price level Number of outlets: 220 Aubert France 4, rue de la Ferme - BP 30130 F - 68705 Cernay aubert.contact@aubert.fr www.aubert.fr Product range: babies’ wear Price segment: mid-price level Number of outlets: more than 200 shops (in Europe) + mail order Infinitif 26, rue du Caire F - 75002 Paris Tel.: +33 – 1 – 45 08 15 29 www.infinitif.com info@infinitif.com OUTERWEAR 2013 33 Product range: womenswear Price segment: mid- to high price level Number of outlets: 10 in F + 400 franchising partners 2. FRANCE Kookai 45, avenue Victor Hugo 93534 SAINT DENIS LA PLAINE CEDEX Tel.: +33 – 399 292 994 www.kookai.fr serviceclient.kookai@mixcommerce.com La Halle aux Vêtements 26, rue de Flandres F - 75019 Paris Tel.: +33 – 1 – 533 50 425 Fax: +33 – 1 – 533 50 480 contact@contact-lahalle.comwww.lahalle.com Oliver Grant Diffusion 74, rue Elysée Reclus F - 69150 Décibes Cedex Tel.: +33 – 472 – 81 25 60 Fax: +33 – 472 – 81 25 61 contact@olivergrant.com www.olivergrant.com PROMOD – Centrale d’Achat Chemin du Verseau F - 59847 Marq en Baroeul Cedex Tel.: +33 – 3 – 204 57 551 Fax: +33 – 3 – 204 57 454 contact@promod.fr www.promod.fr TARTINE-ET-CHOCOLAT.COM BEBEO SA Parc des Docks de Saint-Ouen, Lot 567 - Portes B et C 50, rue Ardoin F - 93400 ST OUEN 1 – 4562339 www.tartine-et-chocolat.com TATI SA 81, rue Cartier Bresson F - 93697 Pantin Cedex tati_contact@agora-distribution.com www.tati.fr Groupe Zannier Head Office 6 bis, rue Gabriel Laumain F - 75010 Paris Tel.: +33 – 1 – 44 83 45 45 Fax: +33 – 1 – 44 83 45 30 jfrousseau@groupezannier.fr www.groupezannier.fr OUTERWEAR 2013 34 Product range: womenswear Price segment: mid-price level Number of outlets: 30 outlets + 120 franchise partners + 320 franchise partners abroad Note: belongs to the former AndréGroup, Paris Product range: ladies’, men’s, childrenswear Price segment: low to mid-price level Number of outlets: 480 Note: belongs to the former AndréGroup, Paris Product range: womenswear, menswear, sportswear Price segment: mid - to high price level Number of outlets: 32 shops, 3 franchising partners Product range: womenswear Price segment: low price level Number of outlets: 1006 stores in 56 countries (In France 325 stores ) Product range: childrenswear Price segment: mid-price level Number of outlets: 3 shops, 15 franchising partners Product range: all kinds of clothing Price segment: low price level Number of outlets: 60 (of which 20 are for marrige clothing) and 2 (in Poland & Spain) Product range: childrenswear Price segment: mid-price level Number of outlets: 270 outlets Note: own brands like Trios Pommes, Hawai – 60% of the clothing is sourced from outside 2. FRANCE Jeans- and Sportswear CHAUSPORT Belongs to Société Spodis 96 rue du Pont Rompu F-5920 Tourcoing T: +33 -3- 59 36 02 86 service-client@chausport.fr www.chausport.com Product range: Casual wear and active sportswear, sports articles Price segment: mid-price level Number of outlets: 80 stores in France Decathlon-Sport 4, Boulevard de Mons F - 59650 Villeneuve d’Asqu Tel.: +33 – 3 – 203 350 00 Fax: +33 – 3 – 203 350 01 contact@decathlon.com www.decathlon.com Product range: Casual wear and active sportswear Price segment: mid-price level Number of outlets: 250 stores in France Decouverte Vêtements Cloup Diffusion CD Textile 28, rue Maillot F – 81100 Castres Tel.: +33 – 5 63 59 24 39 Fax: +33 – 5 63 59 31 43 cdtextile@aol.com www.creatives-decouverte.com Product range: Womenswear and sportswear Price segment: mid-price level Number of outlets: 10 + 45 franchise partners (Brands: Cache Cache, Caroll, Old River) ITM Entreprises S.A. 24 rue Auguste Chadrieres F-65737 Paris Cedex 5 Tel. : +33 - 1 45 33 74 17 Fax : +33 - 1 45 33 39 13 www.itmentreprises.fr Product range: all kinds of clothing incl. sportswear Price segment: lower price level Number of outlets: 163 shops ‘Vetimarché’ Lasserre (modern cottage) 20, chemin de Laporte F - 31300 Toulouse Tel.: +33 – 561 – 49 13 13 Fax: +33 – 561 – 49 98 48 enquiries@lasserre.co.uk Product range: sportswear Price segment: mid-price level Number of outlets: 40 + 35 franchisePartners NAF NAF SAS 6-10, Boulevard Foch F - 93807 Epinaysur Seine Tel.: +33 – 1 – 4813 8888 Fax: +33 – 1 – 4813 8850 serviceclients@nafnaf.fr direction.internationale@nafnaf.fr dircom@nafnaf.fr www.nafnaf-sa.com OUTERWEAR 2013 35 Product range: womenswear Price segment: mid- to high price level Number of outlets: 257 in France (over 581 worldwide, in over 40 countries) 2. FRANCE Department stores Au Bon Marche (ABM) 24, rue des Sèvres F – 75007 Paris Tel.: +33 - 1 – 44 39 80 00 Fax: +33 - 1 – 44 39 81 19 www.lebonmarche.fr Product range: all kinds of clothing Price segment: mid-price level Number of outlets: approx. 150 Note: textile share app. 49% - 1’500 employees mail-order business Galeries Lafayette 40, Boulevard Haussmann F - 75009 Paris Cedex 07 Tel.: +33 – 14 – 878 25 19 Fax: +33 – 14 – 282 80 23 www.galerieslafayette.fr www.groupegalerieslafayette.fr Product range: womenswear Price segment: high price level Number of outlets: 250 stores Nouvelles Galeries Réunis 66, rue des Archives F - 75150 Paris Cedex Tel.: +33 – 1 – 427 48 212 Fax: +33 – 1 – 427 46 652 Product range: all kinds of clothing Price segment: mid-price level Number of outlets: 287 shops 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 Product range: all kinds of clothing Price segment: mid-price level Number of outlets: 20 Mail Order Companies(product range: generally all kinds of clothing, price segment: low to middle) 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 + 31 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 OUTERWEAR 2013 36 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 – 206 96 000 Fax: +33 – 3 – 202 40 337 www.redcats.com 2. FRANCE Maison de Valerie ZI, rue Jacquart F - 41350 Vineuil Tel.: +33 – 2 – 54425254 Fax: +33 – 2 – 54815053 www.lamaisondevalerie.fr 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 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 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 Price segment: mid-price level Number of outlets: 14 countries, 294 hypermarkets, 588 supermarkets Carrefour SA ZAC Saint-Guénault BP 75 F - 91002 EvryCedex Tel.: +33 – 360 – 913737 Fax: +33 – 360 – 794498 www.carrefour.com Product range: all products Price segment: mid-price level Number of outlets: 1350 hypermarkets worldwide (in 19 countries) Casino-Groupe 24, rue de la Montat F - 42004 Saint-Etienne Tel.: +33 – 477 – 454256 Fax: +33 – 477 – 454365 Product range: all products Price segment: mid-price level More than 6000 outlets (not all selling clothing) Intermarché 1, rue du Chemin Blanc F - 91160 Longjumeau Tel.: +33 – 164 – 545500 Fax: +33 – 164 – 545190 Product range: all products Price segment: mid-price level 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 Product range: all products Price segment: mid-price level OUTERWEAR 2013 37 2. FRANCE Promodes Z.I. route de Paris F - 14127 Mondeville Cedex Tel.: +33 – 231 – 706000 Fax: +33 – 231 – 706000 Product range: all products Price segment: mid-price level Manufacturers / importers and wholesalers / importers Adolphe Lafont SA 320, rue Georges Foulc F - 69665 Villefranche sur Saone Tel.: +33 – 474 – 62 68 68 Fax: +33 – 474 – 62 23 99 Products: ladies’, men’s wear, professional wear, manufacturer and wholesaler Chipie International 11, avenue du Général Leclerc F - 11003 Carcassonne Cedex Tel.: +33 – 468 10 54 54 Fax: +33 – 468 10 54 55 Products: ladies’, men’s, children’s wear, Manufacturer of sportswear, leisure wear, 35 own shops – brand ‘Chipie’ high price level www.chipie.tm.fr Catimini SA 94, rue Choletaise F - 49 – 450 St.Macaire-en-Mauges Tel.: +33 – 241 – 71 41 41 Fax: +33 – 241 – 71 41 32 Product : children’s wear and maternity wear Outlets: 95 shops in France Chouette Sportswear 216, rue St. Denis F - 75002 Paris Tel.: +33 – 1 – 42 36 39 50 Fax: +33 – 1- 42 36 4 554 Products: ladies’ wear, sportswear. Manufacturer Class Affaire 67, rue de Sedaine F - 75011 Paris Tel.: +33 – 1 – 48 06 46 06 Fax: +33 – 1 – 48 06 46 92 Products: ladies’, menswear Manufacturer +37 shops Coup de Coeur 6, rue de Bachaumont F - 75002 Paris Tel.: +33 – 1 – 448 28 500 Fax: +33 – 1 – 448 28 501 Product: womenswear Manufacturer + 10 shops OUTERWEAR 2013 38 2. FRANCE Eden Park 9, av. Hoche F - 75008 Paris Tel.: +33 – 1 – 538 90 010 Fax: +33 – 1 – 495 30 697 Product: menswear Manufacturer+ 7 shops, 15 franchising partners www.eden-park.tm.fr Buying associations Fusalp (Creations) SA 114, avenue de France F - 74000 Annecy Tel.: +33 – 450 – 238888 Fax: +33 – 450 – 238899 Disco SA 18 – 20, avenue Gustave Ferrie Zone Industrielle, BP 926 F - 49309 Cholet Tel.: +33 – 241 – 714 452 Fax: +33 – 241 – 714399 Sagam SA 4, allée Verte F - 75011 Paris Tel.: +33 – 1 –143577748 Fax: +33 – 1 – 143574658 Promodes 9, rue Close Famille/B.P. 19 F - 78240 Chambourcy Tel.: +33 – 139 – 793944 Fax: +33 – 139 – 794662 Sport Europe Distribution S.E.D. 10, rue d’Arcelle F - 38600 Fontaine Tel.: +33 – 4 – 76859276 Fax: +33 – 4 – 76531067 OUTERWEAR 2013 39 Manufacturer jeans- and sportswear www.catimini.com Buying for app. 4,000 retailers approximately 1.5 billion € turn-over p.a. Product: childrenswear and maternity dresses – 226 members Buying association for Discounters, buying via C.I.M. Product: sportswear 3. GERMANY 3.Germany 3.1 GENERAL ECONOMIC SITUATION Germany is the euro area’s largest economy. The performance of the German economy has been remarkable. The economy recovered from the 2008/09 recession. The employment position has been strong and unemployment has declined from 7.7% in 2009 to 5.2% in 2012. With rising household income, stable employment and financial both consumption and investment are expected to gather pace. OUTLOOK According to IMF, Germany’s GDP grew at 3.6% and 3.1% respectively in 2010 and 2011. It slowed down to 1% in 2012 and is predicted to stabilise at 1.3% over the medium term 2013-17. 3.2 THE MARKET FOR OUTERWEAR 3.2.1 Market size As the largest economy and clothing market in the European Union (EU), Germany accounted for 20% of EU GDP and 19% of EU clothing expenditures in 2011. Real German clothing expenditures grew 3% in 2011 and are projected to grow another 2 % from € 58.3 billion to € 59.5 billion in 2012. The clothing sales volume was 58.52 billion € in 2011 (up from € 56.6 billion in 2010), this corresponds to an average spending per person of € 618 per annum (EU average in 2011 was € 528 per annum)., German households spent a constant average of 4.4 % of their disposable income on clothing. 3.2.2 Market characteristics The German textile and clothing industry has undergone intensive structural changes, dominated by falling domestic production, transfer of production to foreign lower-wage economies continuing stiff competition and a shift of focus in home production towards higher-quality, technically challenging textiles. They countered it by methods including internationalization and focusing on innovative products and strong brands, which have led to the development of new customer groups and key markets. Most of the imported textiles in 2011 came from Asia (more than 52%) and the EU (30%). The most important source countries are China, Turkey and Bangladesh. E-commerce has become a popular channel for buying fashion. In 2011, apparel was the most popular product group ordered online. About 47% of all 41 million online shoppers in Germany used the internet for fashion shopping. In 2011, clothing price rose by 2.5% and the average outerwear spending per person reached € 618 in 2011, which was higher than the EU average of € 528. 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 is moving in two directions: (a) value/price and (b) trend/fashion, whilst the middle segment fis decreasing. German consumers are well-known for their price consciousness, the share of private label merchandise in the outerwear market being higher than in other major EU countries. Influences of the media (magazines, TV and Internet) OUTERWEAR 2013 40 3. GERMANY make consumers more conscious about the latest fashion trends and prices, so they are better informed to make a choice than before. Especially the men’s wear market is very dynamic due to an increasing number of fashion-conscious men. Spin-offs from adult brands and extensive marketing led to good results in children’s and teenage clothing from trendy brands and sports labels. However, the market for children’s outerwear has been negatively affected by the declining birth rate. Babies’ wear and small sizes in children clothes are decreasing, due to the popularity of second hand clothes and by receiving used clothes from friends and family. The German population is becoming oversized, so that demand for clothes for the full figured man or woman is high and increasing. Many companies started collections for larger sized clothing. 3.2.3 Demographic characteristics Figure 3 shows that the major population segment by age group is between 45 and 49 years of age (approximately 7.25 million – male and female), followed by those in the 34 bracket (approximately 6.75 million people). In other words, Germans in their early forties represent the largest target group (in numbers only). The younger generation under 25 is comparatively small, e.g. the age group between 20 and 24 represents only approx. 5 million Germans (6% 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. The size and age structure of the population is one of the basic determinants of how much will be spent on outerwear. The German population is decreasing at a very slow pace from 82.5 million in 2003 to 82.3 million in 2007 to 82.0 million in 2008 and 81.8 million in 2012. It is projected to decrease to 81.2 million by 2015. Figure 3: Age structure of German population by gender, 2011 Male Germany - 2012 Female 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 4 3.2 2.8 1.6 Population (in millions) Source: U.S. Census Bureau, International Data Base OUTERWEAR 2013 41 0.8 0 0 Age Group 0.8 1.6 2.4 3.2 4 Population (in millions) 3. GERMANY The following positive trends influence the market for outerwear: ••Economic optimism is stronger among younger German consumers, who tend to shop for clothes more often and buy more on impulse and place more importance on the latest clothing styles and brand name. ••Regardless of age, German consumers are seeking quality and value in their clothing through wardrobe staples like denim, value-added performance finishes, and cotton ••Older German consumers tend to be more scrutinizing apparel shoppers, finding factors like finishing, durability, fiber content, and environmental friendliness important to their apparel purchase decisions. 3.2.4 Retail sales by product category Table 18 shows that the overall outerwear turnover increased by 7% from 2010 to the 2012. This is a good result compared to the high downturn of -13.4% between 2002 and the 1st quarter 2005. The total turnover for men’s wear (10%) performed by 2% better than women’s wear (8%). Children’s wear decreased by -4% in total turnover; this reflects the declining birth-rate and the popularity of second hand clothes and used clothes received from friends and family. There are several ways of segmenting the clothing market. Table 18 provides an overview of the turnover development in the major product segments, in percentages, covering the main items of women’s, men’s and children’s outerwear analysed by this survey. Table 18: Outerwear turnover development in % by gender and product categories January to August 2010 2011 2012 Women’s wear 5 5 -2 coats 0 5 -7 suits NA* 5 -1 2 3 1 dresses 16 7 -3 skirts -6 -3 -7 trousers 4 7 -2 Jeans wear 6 5 -1 12 10 -4 Men’s wear 4 5 1 coats 7 -13 4 suits -2 5 2 blazers 0 10 3 jackets 8 1 2 trousers 1 6 0 Jeans wear 8 8 1 Children’s wear 1 -3 -2 Textiles total Without Home Textile 4 4 -1 jackets/blazers blouses Source: BTE Cologne, 2012 (* data not available) OUTERWEAR 2013 42 3. GERMANY 3.2.5 Consumer behaviour The latest observations on consumer behaviour based on market research for this marketing handbook show that consumer of 2012: ••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 ••an economic climate with a lot of uncertainty leads to consumer with defensive behaviour ••are highly sensitive to price the former belief that ‘cheap things’ are bad and expensive is good, no longer applies ••Price sensitive has grown further ••show a clear trend towards shopping at textile discounters ••Significant fashion impulse does not exist any more. If everything is acceptable, then so does the outfit from last year. 3.2.5.1 Consumer preferences 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’. A survey of the clothing market segment shows that many Germans buy from specialists (60.2%). Department stores lost 1.7% compared to 2009 to 11% in 2011 are has been overtook by home shopping companies (14.3%). Table 19 shows the trends in various retail channels between 2003 and 2007. Compared to its 45% market share in 2003, non-specialists retailers constantly continue losing market share from 2003 to 2007. Table 19: Clothing retail channels by market share [%] 2003 2005 2007 2009 2010 2011 55 55 54 59.9 60.4 60.2 Clothing 50.5 51.9 51.7 Home Textiles 9.4 8.5 8.5 45 45 46 40.1 39.6 39.8 Purchasing and stores 11 9.5 9.3 Home shoping / Mail order 13.2 13.8 14.3 Food trade 5.6 6.9 6.9 Sports shops 2.4 2.7 2.8 Others 7.9 6.7 6.5 100 100 100 100 100 100 Specialists Non-specialists Total Source: BTE 2012 and Gherzi analysis Following the communication analysis report published by the Brigitte magazine, the 5 most preferred clothing retailers among all female consumers between the ages of 14 and 64 years are; 1) 2) 3) 4) 5) C&A H&M Galeria Kaufhof Karstadt Esprit OUTERWEAR 2013 43 3. GERMANY Looking at consumer patterns, market research by Intermedia in 2011 on behalf of Burda Verlag, Hamburg shows interesting results, summarised in Table 20. The key fact is that 22.7 % of women are interested in the latest fashion trends and 19.4 % of men have the same interest. Table 20: Consumer patterns with regard to interest in fashion, purchase timing, brand awareness and bargains by gender, 2011 [%] Women Men Interest in fashion I am interested in the latest fashion trends 22.7 19.4 I often talk about fashion 17.9 13.8 Purchase timing I often buy fashion at the beginning of the season, when the new range comes into the shops 10.4 11.2 I often buy fashion at the end of the season, when prices have already been reduced in many places 43.5 39.8 Brand Awareness and Bargains I am very concerned about buying the right brand 13.7 15.9 I often buy special offers 51.1 45.2 Source: Typologie der Wünsche, Intermedia-Burda, 2009 In the year 2009, the inter media investigated about the typical session of consumer interest in fashion regarding purchase timing, brand awareness and bargaining which is in the above table 20 and there have not been major changed in the trend since last few years, so same trend will be continue for the year 2011 which will be as per the year 2009’ trend. 3.2.5.2 Consumer expenditure The private household consumption increased by 4% to € 1,409 billion in 2011. The latest detailed analysis of expenditure structures of German households by the German Federal Statistical Office in 2009 shows that out of € 100, € 4.13 was spent on clothing. 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. Table 22 gives an overview of the share of the clothing segments 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 electronic devices, services, travel, education, fitness / health and rent for housing. A different analysis of consumer expenditure in 2011 showed that the per capita consumption for clothing amounted to € 618 per year. Table 21 shows the annual consumption in different product groups. A clear fact is that the per capita consumption has increased in value in recent years, as the turnover in the clothing market has increased. OUTERWEAR 2013 44 3. GERMANY Table 21: Expenditures on outerwear per capita for outerwear, 2011 [€/year] Total (average) 618 of which: Women’s outerwear 795 Men’s outerwear 430 Children’s outerwear 630 Source: Gherzi estimation The share of clothing expenditure in all household expenses has permanently fallen. According to Table 22, published by the BTE (German Association of Textile Retailers) but there is slightly increasing since last 3 years. German consumers only spend in 2008 an average of 4.6% of their purchases on fashion. Back in 1997 German households used to spend 5.8% of their disposable income on clothing. Table 22:Household spending on clothing [% of total spending] 2005 2006 2007 2008 2009 2010 4.42 4.43 4.39 4.39 4.54 4.61 Source: German Federal Statistical Office Table 23 shows average retail price index of consumer expenditures per clothing article. Table 23: Consumer price index for Textile, Clothing and Footwear Base year 2005 = 100 Weighting in % 2010 2011 % change 2011/2012 1,000 108.2 110.7 2.5 37.10 103.5 105.6 2.5 Apparel accessories 1.12 108.6 109.5 1.3 Cleaning 1.20 106.4 107.3 0.9 Total clothing 39.42 103.5 105.4 1.9 Carpeting / Flooring 26.50 105.4 106.1 0.7 Home textiles 4.07 102.5 104.4 1.9 Shoes 9.46 104.1 105.6 1.5 overall Index Including for: Articles of clothing Source: BTE Cologne 2012 OUTERWEAR 2013 45 3. GERMANY 3.2.6 Price developments of clothing Below table shows between 2010 and 2012, the prices for clothing sector have increased in a lower percentage but the price index total cost of living has decreased. Table 24: Clothing price index relative to national consumer price index (2010-2012) Index: 2005 = 100 2010 2011 2012 Price index clothing 103.5 105.4 106.1 Price index total cost of living 108.2 106.6 107.7 Source: BTE Cologne 2012 3.3 IMPORTS 3.3.1 Total imports In 2011, the total import of outerwear clothing (knitted and woven) in Germany was € 23.66 Billion. There has been a steady growth in imports which increased from € 19.15 Billion in 2009 to € 23.66 Billion in 2011 at an annual growth rate of 11.15% Summary of Clothing Outerwear imports by Germany: 2009-2011 (Euro Bn) 2009 2010 2011 Total imports 19.15 20.59 23.66 Intra-EU imports 6.51 7.08 8.10 Extra-EU imports 12.63 13.52 15.56 Of which Source: Eurostat 2012 Source of Imports It is clearly evident from the above table that imports from outside Europe (extra-EU) had majority of the value of imports which increased from € 12.63 Billion in 2009 to € 15.56 Billion in 2011 reflecting a consistent market share of 65% the last three years. A detailed analysis of various export countries is shown in the subsequent tables. Product Segments The clothing outerwear imports are composed of two product segments viz knitted outerwear and woven outerwear, with a slight tilt in favour of the latter (54% share). Overall, the largest segment in terms of value is knitted outerwear for both genders at € 7.39Billion, representing 31.24% share of total imports. As shown in the aggregate table below, thissegment consists of main products such as Jerseys, Pullovers, Cardigans, Gloves & Mittens and T-shirts. The second largest segment is woven outerwear for women & girls, with imports amounting to € 5.66Billion, representing 24% of total imports. OUTERWEAR 2013 46 3. GERMANY Product Segments – Import of Clothing outerwear by Germany, 2011(Euro Bn) Product segment Total Men & Boys’ Women & girls’ Both genders Active sportswear Knits 10.94 0.73 2.28 7.39 0.54 Wovens 12.72 5.37 5.66 1.28 0.40 Total 23.66 6.10 7.94 8.67 0.94 Source: Eurostat 2012 Table 25: Imports of knitted outerwear by gender and product categories, 2009-2011 2009 2010 2011 Tons 1’000 € Tons 1’000 € Tons 1’000 € Coats, Raincoats, anoraks etc. (61.01) 3,085 56,934 4,819 85,297 6,024 115,285 Suits, jackets, outfits, trousers, shorts etc. (61.03) 7,097 105,115 8,244 130,235 8,578 155,811 Shirts (61.05) 20,703 353,269 22,496 378,001 24,504 462,594 Sub Total 30,885 515,319 35,559 593,532 39,106 733,690 Sub Total Extra EU 24,514 326,335 27,430 374,571 31,214 482,073 Coats, raincoats, anoraks etc. (61.02) 17,590 262,199 20,689 316,031 22,058 376,226 Suits, jackets, outfits, trousers, dresses, skirts etc. (61.04) 59,282 988,610 71,397 1,270,210 73,308 1,435,888 Blouses and shirts (61.06) 20,605 452,730 20,452 450,031 19,273 469,636 Sub Total 97,476 1,703,539 112,539 2,036,272 114,639 2,281,751 Sub Total Extra EU 80,577 1,174,429 92,371 1,396,527 94,655 1,560,881 T-shirts, singlets etc. (61.09) 166,584 2,594,312 171,809 2,835,990 172,427 3,131,978 Jersey, pullovers, cardigans, waistcoats, etc. (61.10) 167,629 3,010,851 169,313 3,174,870 169,200 3,490,374 Babies’ garments (61.11) 16,612 235,679 15,208 234,017 16,281 283,215 Garments rubberised, impregnated, etc. (61.13) 1,833 27,941 2,267 3,3161 2,558 49,420 Gloves, mittens and mitts (61.16) 13,008 135,006 17,546 198,686 20,359 255,070 7,752 124,412 8,621 156,594 9,102 180,952 For Men or Boys For women or girls For both genders Other made-up clothing accessories (61.17) OUTERWEAR 2013 47 3. GERMANY Sub Total 373,417 6,128,201 384,763 6,633,318 389,927 7,391,008 Sub Total Extra EU 299,923 4,158,008 306,919 4,494,411 312,522 5,049,306 Track suits, ski suits and swimwear (61.12) 10,379 239,211 10,484 244,433 11,353 281,788 Special garments for professional sporting or other purposes (61.14) 8,840 191,959 10,376 227,140 10,780 254,339 Sub Total 19,220 431,170 20,860 471,573 22,133 536,128 Sub Total Extra EU 13,190 238,451 13,999 243,035 15,359 272,824 TOTAL 520,998 8,778,228 553,721 9,734,695 565,804 10,942,577 TOTAL EXTRA EU 418,204 5,897,223 440,719 6,508,543 453,750 7,365,084 Active Sportswear Source: Eurostat 2012 Table 26: Imports of woven outerwear by gender and product categories, 2009-2011 2009 2010 2011 Tons 1’000 € Tons 1’000 € Tons 1’000 € 31,855 593,905 31,950 641,186 35,937 828,578 153,153 2,863,008 154,449 2,992,888 167,936 3,514,632 39,328 779,279 39,229 853,014 41,868 1,023,711 Sub Total 224,336 4,236,193 225,628 4,487,088 245,741 5,366,921 Sub Total Extra EU 182,027 2,764,525 181,642 2,954,155 196,215 3,568,256 54,403 1,038,737 52,483 1,079,962 58,516 1,342,626 132,403 2,973,807 128,182 2,967,810 131,715 3,347,802 25,075 858,215 26,624 908,837 24,724 972,066 Sub Total 211,880 4,870,760 207,289 4,956,609 214,955 5,662,494 Sub Total Extra EU 168,628 3,123,360 160,027 3,096,137 162,790 3,504,332 Babies garments (62.09) 6,465 101,417 5,611 96,633 6,102 122,451 Others incl. Impregnated (62.10) 30,856 460,366 37,068 555,690 41,928 681,362 8,726 178,703 10,024 232,890 11,086 290,036 For Men or Boys Coats, anoraks, windcheaters, etc. (62.01) Suits, jackets, outfits, trousers, shorts, etc. (62.03) Shirts (62.05) For women or girls Coats, anoraks, windcheaters, etc. (62.02) Suits, jackets, dresses, skirts, trousers, etc (62.04) Blouses and shirts (62.06) For both genders Shawls, scarves, mufflers, etc. (62.14) OUTERWEAR 2013 48 3. GERMANY Ties, bow ties and cravats (62.15) 1,224 50,963 1,493 57,927 1,298 62,378 Gloves, mittens and mitts (62.16) 3,161 42,210 3,720 57,629 4,028 74,636 Other made-up clothing accessories (62.17) 3,218 49,250 3,131 53,408 2,510 51,932 Sub Total 53,649 882,909 61,047 1,054,176 66,952 1,282,795 Sub Total Extra EU 44,011 610,102 49,675 725,607 53,664 868,360 Track suits, ski suits (62.11) 21,370 377,412 19,288 362,149 19,943 402,325 Sub Total 21,370 377,412 19,288 362,149 19,943 402,325 Sub Total Extra EU 16,576 237,357 14,628 233,102 14,999 254,826 TOTAL 511,236 1,0367,274 513,251 10,860,023 547,592 1,2714,535 TOTAL EXTRA EU 411,243 6,735,345 405,972 7,009,000 427,667 8,195,775 Active Sportswear Source: Eurostat 2012 3.3.2 Outward processing trade Outward Processing is the term used to describe a duty relief procedure established by the European Community (EC). It allows goods to be exported outside the European Union (EU) for processing or repair and then re-imported to the EU with a relief granted from import duties on the basis of the content of the EU goods in the final products. Outward processing enables businesses to take advantage of cheaper labour costs outside the EU, while encouraging the use of Community produced raw materials and intermediates to manufacture the finished products. A brief analysis of the OPT imports of woven outerwear into Germany shows that most of the top 20 OPT countries increased OPT by 3% with Germany from 2009 to 2010. However, overall OPT decreased by 8.23% from year 2008 to 2010. Armenia, Sri Lanka, Indonesia, China have increased their OPT activities with Germany by 230%, 47%, 36% and 30% respectively from 2008 to 2010.Viet Nam and Indonesia also emerged as key OPT partner in 2010. OUTERWEAR 2013 49 3. GERMANY Serbia, Morocco and Croatia have decreased their OPT activities with Germany by -59%, -49% and -38% respectively from 2008 to 2010. Table 27: Largest supplying countries of OPT woven outerwear, 2008-2010 2008 [1’000 €] Change from 2008 2009 [1’000 €] Change from 2009 2010 [1’000 €] MACEDONIA 138,082 -14.0% 118,766 1.5% 120,556 2 UKRAINE 129,394 -17.1% 107,316 -3.7% 103,324 3 VIETNAM 46,986 -13.0% 40,892 43.0% 58,468 4 CHINA 39,225 17.6% 46,122 10.3% 50,896 5 TUNISIA 35,480 -19.9% 28,429 18.9% 33,800 6 INDONESIA 23,100 2.0% 23,552 33.8% 31,511 7 BOSNIA AND HERZEGOVINA 33,222 -5.0% 31,575 -14.9% 26,882 8 SRI LANKA 14,003 4.0% 14,565 41.5% 20,609 9 CROATIA 27,340 -23.6% 20,899 -18.5% 17,029 10 MOLDOVA 20,338 -15.7% 17,140 -1.5% 16,890 11 HONG KONG 22,701 42.1% 32,262 -54.6% 14,655 12 PHILIPPINES 8,661 -8.9% 7,891 27.8% 10,088 13 BELARUS 8,858 12.0% 9,922 -10.1% 8,923 14 SERBIA 18,048 -50.9% 8,861 -17.3% 7,328 15 ARMENIA 2,212 51.5% 3,351 118.0% 7,304 16 MYANMAR 7,110 7.5% 7,645 -5.0% 7,263 17 ALBANIA 5,532 5.0% 5,809 7.1% 6,221 18 MOROCCO 12,289 -63.7% 4,465 39.2% 6,215 19 COLOMBIA 3,358 11.5% 3,743 8.1% 4,047 20 PAKISTAN 2,733 -33.0% 1,831 21.7% 2,229 Total 608,554 -10.9% 542,013 3.0% 558,446 Position Country 1 Sourcce: Eurostat 2012 3.3.3 Largest suppliers of outerwear Table 16 shows the imports of finished products from major supplying countries into Germany between 2009 and 2011. Germany’s main import partners are China followed by Turkey and Bangladesh. The three leading supplying countries represent 47% of all clothing imports in 2011. Not less than 67% of all imports originate from non-EU countries. Extra European imports by Germany increased by 23% from 2009 to 2011. Taking a closer look to the largest extra EU supplying countries of outerwear (Table 16), the ‘winners’ in terms of sales increases from 2009 to 2011 are Pakistan (+77%), Morocco (+78%) and Cambodia (+68%). The ‘losers’ are Hong Kong (-30%) and Switzerland (-12%). OUTERWEAR 2013 50 3. GERMANY Table 28: Largest extra EU supplying countries of outerwear, 2009-2011 2009 [1’000 €] Change from 2009 2010 [1’000 €] Change from 2010 2011 [1’000 €] CHINA 5,349,843 9.3% 5,848,201 9.2% 6,386,110 2 TURKEY 2,001,571 14.0% 2,280,911 5.9% 2,415,838 3 BANGLADESH 1,571,860 4.0% 1,635,375 35.1% 2,210,110 4 INDIA 768,563 -1.7% 755,617 16.8% 882,842 5 VIET-NAM 323,625 13.2% 366,263 25.3% 458,845 6 INDONESIA 357,479 0.2% 358,262 17.2% 419,876 7 MACEDONIA 249,796 8.2% 270,224 19.3% 322,384 8 PAKISTAN 175,583 14.2% 200,493 55.3% 311,422 9 TUNISIA 266,978 -2.5% 260,330 15.9% 301,770 10 CAMBODIA 163,649 -1.4% 161,400 70.0% 274,332 11 MOROCCO 91,118 8.2% 98,605 64.4% 162,085 12 UKRAINE 131,366 -1.0% 130,012 4.0% 135,179 13 SRI LANKA 122,363 8.2% 132,345 1.7% 134,618 14 THAILAND 124,341 2.9% 127,946 -5.9% 120,404 15 SWITZERLAND 133,729 -10.3% 119,911 -1.5% 118,167 16 EGYPT 74,932 -3.0% 72,667 39.0% 101,009 17 CROATIA 69,676 -4.0% 66,865 -2.3% 65,307 18 HONG KONG 83,100 -21.1% 65,538 -10.8% 58,443 19 BOSNIA & HERZEGOVINA 59,881 -16.9% 49,773 17.0% 58,234 20 MYANMAR 55,445 -0.1% 55,384 1.7% 56,300 EU27_EXTRA 12,632,567 7.0% 13,517,544 15.1% 15,560,859 EU27_INTRA 6,512,935 8.7% 7,077,174 14.4% 8,096,253 Total 19,145,502 7.57% 20,594,717 14.87% 23,657,112 Position Country 1 Source: Eurostat 2012 European imports by Germany increased by 24% from 2009 to 2011. Taking a closer look to the largest intra EU supplying countries of outerwear (Table 17), the ‘winners’ in terms of sales increases from 2009 to 2011 are Denmark (+51%), France (+37%) and Netherlands (+36%). OUTERWEAR 2013 51 3. GERMANY Table 29: Largest intra EU supplying countries of outerwear, 2009-2011 2009 [1’000 €] Change from 2009 2010 [1’000 €] Change from 2010 2011 [1’000 €] 1,014,564 13.0% 1,146,740 20.3% 1,380,029 ITALY 894,285 4.3% 932,911 11.4% 1,039,030 3 POLAND 782,497 18.9% 930,125 11.4% 1,035,714 4 DENMARK 432,104 24.1% 536,373 21.7% 652,670 5 FRANCE 398,280 16.3% 463,017 17.4% 543,692 6 BELGIUM 431,002 12.6% 485,485 6.4% 516,746 7 UNITED KINGDOM 414,680 5.1% 435,779 11.9% 487,709 8 ROMANIA 445,505 -2.8% 433,096 11.5% 482,963 9 BULGARIA 270,288 0.7% 272,259 17.5% 319,838 10 AUSTRIA 271,970 -4.7% 259,075 11.5% 288,790 EU27_INTRA 6,512,935 8.7% 7,077,174 14.4% 8,096,253 EU27_EXTRA 12,632,567 7.0% 13,517,544 15.1% 15,560,859 Total 19,145,502 7.6% 20,594,717 14.9% 23,657,112 Position Country 1 NETHERLANDS 2 Source: Eurostat 2012 3.4 TRADE STRUCTURE 3.4.1 Developments in the retail trade The following table gives an overview on the most important foreign-owned clothing retailers in Germany. Table 30: The most important foreign-owned clothing retailers in Germany Retailer Country of origin Number of stores in Germany Sweden 389 Switzerland 294 France 81 Orsay (Mulliez Group) Germany (France) 202 Pimkie (Mulliez Group) Germany (France) 170 Italy 212 Zara (Inditex) Spain 69 Mango Spain 109 Hennes&Mauritz Vögele Miss Etam Benetton OUTERWEAR 2013 52 3. GERMANY M&S Mode Netherlands 39 Turkey 230 Netherlands 245 Arsana Zeeman Source: Gherzi analysis, Individual websites of every retailer, BTE report 2012 20 companies accounted for 50% of the German retail-clothing and textile market. The major developments in the German clothing retail structure are as follows: Market shares of specialised clothing multiples, textile discounters and non-specialists like hyper-, supermarkets, discounters, variety stores and also the coffee shop chain Tchibo, have increased in the outerwear sector. This has negatively affected specialized independents and department stores. According to BTE and Gherzi analysis, the total number of German outlets with clothing in their assortment is approximately 44’000. The number of independent clothing stores is estimated at 26’000, of which 7’000 are specialised in women’s wear, 2’000 in men’s wear, 15’000 have a broader range and the remaining part is specialised in another product group. Around 40% of the independent retailers are member of a buying corporation. In no other European country, with the exception of the Netherlands, do the buying organisations also act as independent retailers as they do in Germany. The most important buying corporations are Ardek (http://www.ardek.de) which specializes in babies’ and children‘s products including clothing with approximately 500 outlets; and Katag-abz (http://www. katag.net) which operates through 373 members with 1,500 outlets. Other buying groups are Unitex (http://www. unitex-gmbh.de) with 500 members; Sütegro (http://www.suetegro.de) which has 130 members and is specialized in women’s wear. Sütegro became the fashion and style division of the EK-Service group. Most of the sport shops are organisations of independent retailers, many of them being organised in (international) co-operations like Intersport (1,429 outlets; http://www.intersport.com) and Sport 2000 (1,000 outlets; http://www. sport2000.de). Table 31 gives an overview of the important German chains, operating in Germany. Some remarks regarding this overview: ••Orsay is owned by the French Muliez Group. Since the withdrawal of Orsay from the French market, this company can be considered as German-based. ••Since 1997, the European part of the Esprit business was acquired by the Hong Kong division of Esprit Holding. Headquarters of Esprit Europe is established in Germany, from which the wholesale and retail activities are managed. ••The number of children’s wear chains and men’s wear chains is very limited in Germany. ••Leading clothing multiple C&A sells clothing for the whole family and operates mainly in the middle of the market, but is also active in both the upper and the lower price brackets. Other C&A formula are Kids Stores and Women Stores (mostly active in Germany). The market share of C&A came under pressure, besides increasing competition from non-specialists, since the entrance and strong expansion of foreign general clothing chains like Hennes&Mauritz, Vögele and Zara. OUTERWEAR 2013 53 3. GERMANY Table 31: Major German-based chains selling outerwear (2010/2011) Retail chain Parent company Number of stores in Germany C&A C&A 500 P&C P&C West and P&C Nord 24 WHG 22 Wöhrl 38 K+L Ruppert 64 Strauss Innovation 93 Esprit Europe 185 Bonita Mode Bonita Group 732 Ulla Popken Popken Group 300 C&A 15 Mulliez Group (France) 202 Pohland 12 Bonita Group 60 C&A 104 New Yorker Friedrich Knapp 299 Mister Lady Western Store Beran 204 Schaeffer-Kuehn 191 Hannover Finanz 102 Ernsting Familie 1350 Takko Holding 1300 Tengelmann-Gruppe 2039 Adler Metro Group 107 NKD Daun & Cie. 1000 GENERAL Sinn Leffers Wöhrl K+L Ruppert Strauss Innovation Esprit WOMEN Women Store Orsay MEN Pohland NIC CHILDREN Kids Stores LEISURE Jeans Fritz SPORTS Runners Point DISCOUNTERS Ernsting’s Family Takko KiK Source: CBI & Individual websites of retail chains OUTERWEAR 2013 54 3. GERMANY Textile discounters sell family clothing, sportswear, body wear and household textiles, but sometimes also other product groups. They buy in large quantities and avoid middlemen, in order to get low-priced goods in the shops quickly. All discounters mentioned increased strongly in turnover and in number of outlets in recent years; they compete, among others, with the Dutch discount chain Zeeman (245 stores in Germany). Many textiles, including knitted and woven outerwear, can increasingly be found in food discounters, super- and hypermarkets. Table 32: Other outerwear selling branches in Germany Retail chain Web site Number of stores in Germany www.aldi-essen.de 2,509 www.aldi-sued.de 1,794 www.lidl.de 3,300 Netto www.netto-online.de 1500 Penny www.penny.de 2,401 www.plus.de 2,840 www.metrogroup.de 316 www.kaufland.de 1,000 www.tengelmann.de 3,000 www.edeka.de 12,000 www.metro-cc.de 107 www.fegro-selgros.de 45 www.tchibo.com 1,000 FOOD DISCOUNTERS Aldi Nord AldiSüd Lidl Plus SUPER- and HYPERMARKETS Real Kaufland/Kaufmarkt Tengelmann Edeka (Spar, Netto, etc.) NON-SPECIALIZED STORES Metro C+C Fegro / Selgros Tchibo Source: CBI, Individual websites of retail chains According to CBI the actual trends are as follows: ••Market conditions have become more difficult and the competitive pressure is increasing. This is due to the expansion of powerful foreign companies in the German market and market activities by companies from outside the clothing sector. On the other side, many German retail chains have expanded their activities abroad. ••The non-food offer in the grocery sector is increasing in Germany. The hypermarket format, with its strong nonfood component, plays an increasingly important role. However, it should be noted that these companies operate more in low-priced incidental offers than in a fixed/permanent outerwear assortment. ••Ongoing expansion by many of the leading chains to develop smaller store formats, so as to create a more specialised boutique character (for instance H&M, C&A and Zara). OUTERWEAR 2013 55 3. GERMANY ••Stronger ranges of complementary accessories and footwear. ••Clothing specialised multiples have been the largest exponents of the fast-fashion phenomenon, which has encouraged more frequent purchasing. 3.4.2 Leading retailers Table 33 gives an overview of the structure and the development of the largest German textile retailers. This analysis was carried out by the BTE report 2012. Table 33: Major German textile retailers 2009 / 2011 Turnover 2009 [mn €] Turnover 2010 [mn €] Turnover 2011 [mn €] Change [%] 2009 - 2011 H&M 2,830 3,211 3,290 16.3% 2 C&A 2,933 3,011 3,090 5.4% 3 Tengelmann 1,340 1,195 1,206 -10.0% 4 Tchibo 900 945 926 2.9% 5 Esprit 915 915 897 -2.0% 6 Ersting’s Family 782 845 888 13.6% 7 Takko 626 738 813 29.9% 8 New Yorker 675 689 723 7.1% 9 NKD 421 483 503 19.5% 10 Inditex 439 467 488 11.2% 11 Bonita 332 312 324 -2.4% 12 Charles Vögele 337 327 316 -6.2% 13 AWG, Köngen 279 295 285 2.2% 14 S.Oliver/Comma 183 252 270 47.5% 15 Bestseller 220 250 13.6% 16 Gerry Weber 135 162 201 48.9% 17 Orsay 182 180 185 1.6% 18 MisterLady 135 148 151 11.9% Position Retailer Chain 1 Source: BTE 2012 3.4.3 Distribution channels The 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 34. OUTERWEAR 2013 56 3. GERMANY Table 34: Textile and clothing retail channels by market share, 2006 –2008 2009 2010 2011 General clothing retail 39.7 40.2 40.1 Men clothing retail 2.6 2.8 2.9 Women clothing retail 7.5 7.9 7.8 Children clothing retail 0.5 0.7 0.7 Others 0.2 0.3 0.2 50.5 51.9 51.7 9.4 8.5 8.5 59.9 60.4 60.2 11 9.5 9.3 13.2 13.8 14.3 Food trade 5.6 6.9 6.9 Sports shops 2.4 2.7 2.8 Other 7.9 6.7 6.5 Total non-textile or clothing specialised retail 40.1 39.6 39.8 Grand Total 100 100 100 Total general clothing retail Total general textile retail Total textile and clothing specialised retail Purchasing and stores Home shopping / Mail order Source: BTE and Gherzi analysis 3.4.3.1 Retailers 3.4.3.1.1 General clothing retail Independent retailers do not usually buy directly from developing countries. With approximately 43’000 textile and clothing shops all over Germany, they still play animportant role in the market. A high percentage of the retailers are members of buying associations that takes over certain functions from the members such as purchasing, marketing, logistics etc. The most important department stores are C&A (500)*, H&M (377)*, P&C West and P&C North (24)*, Sinn Leffers (22)*, K+L Ruppert (64)*, C. Vögele (294)* and Wöhrl (38)*. New Yorker with 299 outlets (968 worldwide) is the largest jeans and sportswear chain. The major women’s wear multiples are BiBa (129)* and Appelrath_ Cüpper (13)*, part of the Douglas Group, Orsay from France (202)*, Bonita (920)* and Ulla Popken for large sizes (300)*. Menswear multiples are NIC (60)* (owned by Bonita) and Pohland (12)*. * number of outlets Market share: 51.7% in 2011 Trend: Slightly increasing (2009 = 50.5%) 3.4.3.1.2 Department stores (Purchasing and stores) The major department stores are Karstadt with more than 120 outlets and Galleria Kaufhof with 137 stores, belonging to the Metro group. Galleria Kaufhof’s turnover declined constantly from € 3.5 bn in 2008 to € 3.1 bn in 2011. Another example is Woolworth with 200 outlets. Market share: 9.3% in 2011 Trend: Slightly decreasing (2009 = 11%) OUTERWEAR 2013 57 3. GERMANY 3.4.3.1.3 Sport shops The turnover of clothing in sports shops is influenced by the unpredictable weather, shorter product life cycles, consumer behaviour and continued cost and price pressures. In recent years sports shops have developed themselves from pure or predominant providers of winter clothing towards providers with a large range of for all weather gears, with emphasis on outdoor and lifestyle. Market share: 2.8% in 2011 Trend: Slightly increasing (2009 = 2.4%) 3.4.3.1.4 Home shopping companies (Mail order) Quelle is one of the leading home shopping companies in 2011. The Otto Group (another leading home shopping company) bought the Quelle brand. This deal still has to be approved by the FTC (Federal Trade Commission). 55% of the total home shopping turnover in 2011 was generated by internet sales. Market share: 14.3% in 2011 Trend: Slightly decreasing (2009 = 13.2%) 3.4.3.1.5 Food trade Market share: 6.9% in 2011 Trend: Slightly increasing (2009 = 5.6%) 3.4.3.1.6 Others (FOC) Market share: 6.5% in 2011 Trend: Slightly decreasing (2009 = 7.9%) 3.4.3.2 Sales intermediaries 3.4.3.2.1 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). 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. 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-withinthe-shop, sales corners in department stores and own mono-brand shops. 3.4.3.2.2 Central buying associations More than half 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 midto upper market segment. The leading associations are Katag / abz in Bielefeld and Unitex in Neu-Ulm. Some, such as Ardek in Hofheim / Wallau specialise in children’s wear, or Intersport in Munich specialising in active sports- and hardware. The German buying associations also have members from the Netherlands, Belgium, Austria and Switzerland. 3.4.3.2.3 Sales agents 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 non- European countries with a market oriented range and an excellent service might find the right partner in the CDH News published monthly. OUTERWEAR 2013 58 3. GERMANY 3.4.3.2.4 Importers / wholesalers It is estimated that there are approx 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. 3.5 GERMAN FASHION TRADE FAIRS 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. 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. 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 35: German fashion trade fairs 2013, 2014 Trade fair TRAUDICH STUTTGART Wedding Fair PANORAMA FASHION FAIR Fashion Fair TRAUDICH FRANKURT Wedding Fair TRAUDICH DUSSELDORF Wedding Fair Date Location 12.01 - 13.01 2013 Stuttgart 15.01 - 17.01 2013 Berlin 19.01 - 20.01 2013 Frankfurt 12.01 - 13.01 2013 Düsseldorf 16.02 - 18.02 2013 Dortmund 09.03 - 10.03 2013 Freiburg Messehalle 24.03 - 26.03 2013 Munich 22.03 - 24.03 2013 Hamburg Messe und Congress 09.03 - 11.03 2013 Messe Offenbach WÄSCHE UND MEHR Dessous, Underwear, Beach Fashion and Home-Wear Order Days BABY+KIND MESSE - FREIBURG Baby & Child Expo MODA MADE IN ITALY (SPRING) International Trade Fair for Shoes BABYWELT HAMBURG Exhibition around the Baby I.L.M SUMMER/WINTER STYLES International Leather Goods Fair of Brand-New Novelties. Fashionable Handbags and Leather Accessories OUTERWEAR 2013 59 3. GERMANY GLOBAL SHOES International Event for Leather Goods & More 13.03 - 15.03 2013 Düsseldorf 16.03 - 18.03 2013 Düsseldorf 13.03 - 15.03 2013 Düsseldorf 15.06 - 18.06 2013 Messe Essen 09.06 - 10.06 2013 Frankfurt 07.06 - 09.06 2013 Berlin 02.07 – 04.07 2013 Berlin July 2013 Berlin 10.08 – 13.08 2013 Munich Aug. 2013 Ardek Center Rhein Main 19.09 - 22.09 2013 Cologne Sept. 2013 Munich, 11.10 - 13.10 2013 Munich, TOP HAIR INTERNATIONAL Trade Fair - Show - Congress for the International Hairdressing Industry GDS International Shoe Fair MODATEX FASHION FAIR German Fair for Bridal and Evening Wear HAIR & BEAUTY International Hair & Beauty Trade Fair Youth Trade Fair for “Outfit/Sport/Lifestyle” PREMIUM, International Fashion Trade Show BREAD & BUTTER BERLIN Tradeshow for Selected Brands. At the crossroads of Fashion, Music, Art and Design, as well as Visual and Performing Arts PREMIUM Order Munich INNATEX International Fair for Natural and Organic Textiles KIND + JUGEND International Baby to Teenager Fair MUNICH FABRIC START International Fabrics Fair MODA MADE IN ITALY (AUTUMN) International Trade Fair for Shoes BABYWELT MÜNCHEN Exhibition around the Baby INFALINO BABYMESSE International Future Mother, Babies & Kids Show TRAU – THE MARRIAGE FAIR MANNHEIM Marriage Fair LEBENSART BREMEN Exhibition for Lifestyle, Culture, Style & Elegance 25.10 - 27.10 2013New Munich Trade Fair Centre 19.10 - 21.10 2013 Deutsche Messe Hannover 26.10 - 27.10 2013 Maimarkt Mannheim 12.10 - 20.10 2013 Deutsche Messe Hannover 13.11 - 17.11 2013 Berlin 16.11 - 24.11 2013 Stutgart 22.11 - 24.11 2013 Stutgart IMPORT SHOP BERLIN Shopping World with Special Shops “Christmas”, “Country Style” FAMILY & HOME Shopping and Experience Exhibition BABYWELT STUTTGART Exhibition around the Baby OUTERWEAR 2013 60 3. GERMANY HAIR & STYLE MANAGEMENT 01.12 - 02.12 2013 Stutgart Informational and Sales Event for everything concerning the subject “Wedding” Jan. 2014 Dortmund TRAU – THE MARRIAGE FAIR FREIBURG Jan. 2014 Freiburg Messehalle TRAU – THE MARRIAGE FAIR HEIDELBERG Jan. 2014 Kongresshaus TRAU – THE MARRIAGE FAIR LUDWIGSHAFEN Jan. 2014 Friedrich-Ebert-Halle HOCHZEITSTAGE Jan. 2014 Munich, TRAU – THE MARRIAGE FAIR SAARBRÜCKEN Jan. 2014 Congresshalle TRAU – THE MARRIAGE FAIR VS - SCHWENNINGEN Jan. 2014 SüdwestMesse Trade Fair for Hairdressing Equipment, Cosmetics, Salon Management and Fashion with Championships HOCHZEITSTAGE DORTMUND Informational and Sales Event for everything concerning the subject “Wedding” ISPO International Trade Fair for Sports Equipment and Fashion Feb. 2014New Munich Trade Fair Centre Source: EventsEye 3.6LIST OF MAJOR BUYERS IN GERMANY Clothing chain stores 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: Women’s wear Price segment: Lower to mid-level Number of outlets: 920 E. Breuninger GmbH & Co. Marktstr. 1 – 3 D - 70173 Stuttgart Tel.: +49 – 711 – 211-0 Fax: +49 – 711 – 211-3053 kontakt@breuninger.de www.breuninger.de Product range: Women’s, men’s and children’s wear Price segment: Upper level Number of outlets: 10 C&A Mode KG Wanheimer Straße 70 40468 Düsseldorf Tel.: +49 – 211 – 98720 service@shop-CundA.de www.cunda.de Product range: Women’s, men’s and children’ s wear Price segment: Lower to mid-level Number of outlets: 503 OUTERWEAR 2013 61 3. GERMANY Appelrath-Cüpper Zeppelinstrasse 2 D - 50667 Köln Tel.: +49 – 221 – 20 59 90 info@appelrath-cuepper.de www.appelrath-cuepper.de Product range: Women’s wear Price segment: Mid to upper level Number of outlets: 13 Note: belongs to Douglas Holding AG 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: Men’s wear Price segment: Mid to upper level Number of outlets: 12 Note: belongs to Douglas Holding AG Esprit Europe GmbH Esprit Europe GmbH Esprit-Allee D-40882 Ratingen Tel.: +49 – 2102 – 123 – 0 Fax: +49 – 2102 – 123 – 45 – 100 info@esprit.com www.esprit.com 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 H&M Hennes & Mauritz GmbH Spitalerstrasse 12 D - 20095 Hamburg Tel: +49 – 40 – 350 95 50 www.hm.com Orsay GmbH Im Lossenfeld 12 D - 77731 Willstätt-Sand Tel.: +49 – 7852 – 910 – 0 Fax +49 – 7852 – 910 - 909 info@orsay.com www.orsay.com Peek & Cloppenburg KG Berliner Allee 2 D - 40212 Düsseldorf Tel.: +49 – 211 – 3662 – 0 Fax: +49 – 211 – 3662 – 697 dialog@peekundcloppenburg.de www.peekundcloppenburg.de http://b2b.peek-und-cloppenburg.de/ OUTERWEAR 2013 62 Product range: Women’s, men’s and children’s wear Price segment: Upper level Number of outlets: 185 retail stores in Germany and over 800 directly managed outlets worldwide Product range: Ladies, men’s and children’s wear Price segment: Mid to upper level Number of outlets: 2 Product range: Women’s, men’s and children’s wear Price segment: Lower level Number of outlets: 377 Product range: Women’s wear Price segment: Lower to mid level Number of outlets: 202 Note: belongs to Mulliez Group Product range: Ladies men’s and childrenswear Price segment: Upper level Number of outlets: 64 3. GERMANY 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 s.Oliver Bernd Freier GmbH & Co. KG s.Oliver Straße 1 D - 97228 Rottendorf Tel.: +49 – 93 02 / 3 09 – 0 Fax: +49 – 93 02 / 3 09 – 473 info@soliver.de onlineshop@soliver.com www.soliver.de 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 Tchibo GmbH Überseering 18 D - 22297 Hamburg Tel.: +49 – 40 – 6387 – 2876 Fax: +49 – 40 – 6387 – 2530 info@tchibo.com www.tchibo.de Charles Vögele Deutschland GmbH Zeppelinstrasse 2-8 72488 Sigmaringen Tel.: +49 – 7571 723 0 Fax +49 – 7571 723 171 kundendienst.de@charles-voegele.com www.voegele-mode.de Wehmeyer Lifestyle GmbH Rotter Bruch 17 D - 52068 Aachen Tel.: +49 – 2 41 / 51 97 – 0 Fax: +49 – 241 51 97 107 www.wehmeyer.com www.w-lifestyle.de kundenbetreuung@wehmeyer.com OUTERWEAR 2013 63 Product range: Ladies men’s and childrenswear Price segment: Mid to upper level Number of outlets: 22 Product range: Ladies’, men’s and childrenswear Price segment: Mid to upper level Number of owned stores: 262 Number of stores with partners: 323 Product range: Ladies’, men’s and Childrenswear (and Accessoires, Jewelry) Price segment: Lower level Number of outlets: 1140 Germany (1,704 worldwide) Product range: Ladies’, men’s and childrenswear Price segment: Lower level Number of outlets: over 800 Product range: Ladies’, men’s and childrenswear Price segment: Lower to mid level Number of outlets: 294 Product range: Ladies’ and menswear Price segment: Lower to mid level Number of outlets: 44 3. GERMANY 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 Product range: Ladies’, men’s and childrenswear Price segment: Upper level (brands mainly) Number of outlets: 38 Department stores (selection) Zara Moenckebergstrasse, 10 D - 20095 Hamburg Tel.: +49 – 40 3 030 97 28 Fax: +49 – 40 30 96 22 40 www.zara.de Product range: Ladies’ and menswear Price segment: Lower to mid level Number of outlets: 69 Deutsche Woolworth GmbH Lyoner Str. 52 D - 60528 Fr Woolworth ankfurt a.M. Tel.: +49 – 69 – 6601 – 1 Fax +49 – 69 – 6601 – 2399 info@woolworth.de www.woolworth.de Product range: Ladies’, men’s and childrenswear Price segment: Lower level Number of outlets: 200 in Germany Metro AG Schlüterstraße 1 D - 40235 Düsseldorf Tel.: +49 211 6886 10 51 or 19 36 Fax: +49 211 6886 37 59 kontakt@metro.de www.metro-ag.de www.metrogroup.de www.investorrelations@metro.de Product range: Ladies’, men’s, childrenswear and sportswear Price segment: Mid to upper level Number of outlets: Real/Extra 316, Kaufhof 137 in Germany Kaufhof Warenhaus AG Leonhard-Tietz-Str. 1 D - 50676 Köln Tel.: +49 02 21 223 55 95 Fax: +49 02 21 223 55 99 www.galeria-kaufhof.de Callcenter Tel: +49 01805 17 25 17 Callcenter Fax: +49 01805 17 35 17 service@galeria-kaufhof.de Product range: Ladies’, men’s and childrenswear Price segment: Mid to upper level Number of outlets: 122 Note: Belongs to Metro AG Strauss Innovation GmbH & Co. KG Raiffeisenstr. 15-18 D - 40764 Langenfeld Tel.: +49 - 2173 - 99 00 01 Fax +49 - 2173 - 99 23 90 fragenundantworten@strauss-innovation.de gutesundschlechtes@strauss-innovation.de www.strauss-innovation.de Product range: Ladies’ and menswear Price segment: Lower to mid level Number of outlets: 93 OUTERWEAR 2013 64 3. GERMANY 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 Product range: Ladies’, men’s, childrenswear and sportswear Price segment: Lower level (for clothing) Number of outlets: 85 Clothing manufacturers (importing) and wholesalers / importers HEINRICH NICKEL GMBH & CO.KG Wilhelm-Bergner-Str. 10 D - 21509 Glinde Tel.: +49(0)40 7270 241 Fax: +49(0)40 7270 224 www.nickel-sportswear.com office@nickel-sportswear.com APRIORI Textilvertriebs GmbH Harkortstr. 24 D - 48163 Münster Tel.: +49 (0)251 7135-0 Fax: +49 (0)251 7135-837 dialog@apriori-fashion.de www.apriori-fashion.de ara Shoes AG Zur Schlenkhecke 4 D – 40764 Langenfeld Tel.: +49 – 2173 105 0 Fax: +49 – 2173 105 108 www.ara-moden.de info@ara-shoes.de Bay City Textilhandels & Co.KG An’n Slagboom 7 Postfach 3165 D-22848 Norderstedt Tel.: +49 (40) 534 13 300 Fax: +49 (40) 534 13 301 baycity@fashioncenter.net www.fashioncenter.net/baycity www.bay-city.de F.W. Brinkmann GmbH Waltgeristraße 1-5 32049 Herford Tel: +49 (0) 52 21 / 88 40 Fax: +49 (0) 52 21 / 88 42 81 info@bugatti.de www.bugatti.de OUTERWEAR 2013 65 Importer of men’s, ladies and children’s sportswear Wholesaler of ladies wear Number of owned stores: Approximately 120 Belongs 100% to: PRIMERA GmbH & Co. Manufacturer of classic women and men shoes Over 500 shops worldwide (CMT business mainly) Importer for jeans, casual and active sportswear founded: 1975 and belongs to Schmid Gruppe License Contract with Unilever (Lable: Langnese) Manufacturer of classic men’s and sportswear (mainly CMT business – brand orientated) 3. GERMANY Bültel Bekleidungswerke GmbH Rheiner Str. 28 D - 48499 Salzbergen Tel.: +49 – 5976 – 270 Fax: +49 – 5976 – 27410 www.bueltel.com info@bueltel.com Manufacturer of men’s sportswear Founded: 1964 elho Business & Sport Vertriebs GmbH Bronkhorstr. 56 / 2. Etage D – 47137 Duisburg Tel.: +49 – 89 – 42091 – 0 Fax: +49 – 89 – 42091 – 213 www.elho.de otto.schwarz@elho.de Manufacturer of active and casual sportswear (full import and CMT) Frontline GmbH Hinüberstraße 4A 30175 Hannover Tel.: +49 – 4105 – 6105 – 0 Fax: +49 – 4105 – 6105 – 64 www.frontline.de Distributor of garments of all kinds GARDEUR GmbH Alsstraße 155 D - 41063 Mönchengladbach Tel.: +49 – 2161 – 816 – 0 Fax: +49 – 2161 – 183833 www.gardeur.com info@gardeur.de Manufacturer of classic ladies’ and menswear specialised in trousers (CMT business – brand oriented) GARDEUR GmbH, founded in 1920, has recently been acquired by HSH Private Equity (Hamburg) 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) Hucke Fashion GmbH, Königsmühle u. R. Overmeyer Bekleidungs GmbH Mail order companies ALBA MODA GMBH Daimlerstr. 13 D - 32108 Bad Salzuflen Tel.: +49 – (0) 180 540 55 Fax: +49 – (0) 180 540 59 99 www.albaModa.de OUTERWEAR 2013 66 Product range: Ladies’ and menswear Price segment: Mid to upper level Note: Fashion orientated (not young fashion) 3. GERMANY Baur Versand (GmbH & Co. KG) Bahnhofstraße 10 96224 Burgkunstadt Tel.: +49 – 0 95 72 - 91 0 www.baur.de service@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 service@bader.de Product range: All kinds of goods, ladies’, men’s, childrenswear Price segment: Mid market level Note: one of the larger mail-order Companies CYRILLUS DEUTSCHLAND GmbH Sonneaue 69 D - 47804 Krefeld Tel.: +49 – 180 5 095 095 Fax: +49 – 180 5 000 955 www.cyrillus.de mailbox2@cyrillus.com HEINRICH HEINE GMBH Windeckstr. 15 D - 76135 Karlsruhe Tel.: +49 – (0) 180 – 536 36 Fax: +49 – (0) 180 - 5 524 524 Tel. Kundenbetreuung: +49 (0) 180 - 522 66 www.heine.de service@heine.de Product range: Ladies’, men’s, childrenswear Price segment: Mid level Note: Niche market mail-order house Products: Home textiles, furniture, accessories, ladies’, menswear Price segment: Mid to upper level Note: more classic styles Versandhaus Robert Klingel Sachsenstr. 23 D - 75177 Pforzheim Tel.: +49 – 0180 53 200 Fax:+49 – 0180 530 56 70 www.klingel.de service@klingel.de Product range: All kinds of goods, ladies’, men’s and childrenswear Price segment: Mid level Neckermann Versand AG Hanauer Landstraße 360 D - 60386 Frankfurt am Main Tel.: +49 – 180 55414 www.neckermann.de service@neckermann.de Product range: All kinds of goods, ladies’, men’s, childrenswear Price segment: Mid-market level Note: one of the larger mail-order companies OUTERWEAR 2013 67 3. GERMANY Otto (GmbH & Co KG) Wandsbeker Straße 3-7 D - 22172 Hamburg OTTO-Hotline: 0180 - 5 30 30 Hotline: +49 (0) 180 530 30 Tel.: +49 40 - 64 61 - 0 Fax: +49 40 - 64 61 - 85 71 OTTO-Hotline: 0180 - 5 30 30 www.otto.de service@otto.de SportScheck GmbH Sendlinger Str. 6 D - 80331 München Tel: +49 89 2166-0 Fax: +49 89 2166-1420 Tel. Kundenbetreuung: Tel.: +49 – 180 55050* Fax: +49 – 180 55051* www.sportscheck.com filiale_muenchen@sportscheck.com Product range: Ladies’, men’s and Children’s wear and other goods Price segment: Lower to mid level Note: Largest mail order house in the orld selling worldwide Product range: All kinds of goods, women’s and children’ wear, sportswear Price segment: Mid to upper level Jeans-, sportswear and young fashion Western Store Beran Mister-Lady GmbH Sprottauer Str. 4 – 8 D - 90475 Nürnberg Tel.: +49 – 911 – 984 760 Fax: +49 – 911 – 984 73 04 www.wsberan.de DIESEL DEUTSCHLAND GMBH Kasernenstr. 1 D - 40213 Düsseldorf Tel.: +49 211 8622 966 www.diesel.com Jeans Palast Görgens GmbH Schildergasse 55 D - 50667 Köln Tel.: +49 221 – 257 86 49 Fax: +49 221 – 258 85 51 jeans-palast-koeln@goergens-gruppe.de http://filialnetz.guna.de/filialnetz/koeln/jeanspalast/ OUTERWEAR 2013 68 Product range: Jeans and sportswear, young fashion Price segment: Lower to mid level Product range: Jeans, young fashion Price segment: Mid to upper level Number of outlets: 12 Product range: Jeans, young fashion Price segment: Mid to upper level Number of outlets: Approximately 55 3. GERMANY 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 Price segment: Mid level 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 smattern@newyorker.de (Produktanfragen & Expansion) Product range: Jeans, leisurewear Price segment: Mid level Number of outlets: 299 HIS TEXTIL GmbH Bellevue 7 D - 22301 Tel.: +49 – 89 – 329070 Fax: +49 – 89 – 32907108 www.his-jeans.de www.info@his-jeans.com MUSTANG Jeans GmbH & Co.KG P.O. Box 1264 D – 74642 Künzelsau Tel.: +49 – 7940 – 125 – 0 Fax: +49 – 7940 – 125 – 102 www.mustang.de info@mustang.de Product range: Jeans Price segment : Mid to upper level Note: Manufacturer + clothing chain Product range: Jeans and sportswear Price segment : Mid to upper level Note: Manufacturer + clothing chain Number of outlets: Approximately 1100 (an present in over 31 countries worldwide) Buying associations ARDEK eG (proBABY c/o) Robert Bosch Str. 9 D - 65719 Hofheim-Wallau Tel.: +49 – 6122 – 72 – 0 Fax: +49 – 6122 – 72338 www.ardek.de info@ardek.de www.probaby.de info@probaby.de INTERSPORT Deutschland eG Wannenäckerstr. 50 D - 74078 Heilbronn Tel.: +49 – 7131 – 288 – 0 Fax: +49 – 7131 – 21257 www.intersport.com contact@intersport.com OUTERWEAR 2013 69 Product range: Products for children, Children’s wear, pro-BABY-Line / Products for babies (100 Member companies) Price segment: Mid to upper level Member companies: over than 500 Product range: (Active) sportswear Price segment: Mid to upper level Member companies: 1,450 Note: Market leader for active Sportswear KATAG AG Stralsunder Str. 5 D - 33605 Bielefeld Tel.: +49 – 521 – 292 – 0 Fax: +49 – 521 – 292 – 101 www katag.net www.info@katag.de KURTENBACH GbmH & CO. KG Offheimer Weg 45 D - 65549 Limburg Tel.: +49 – 6431 – 503 – 0 Fax: +49 – 6431 – 503 – 201 www.mut-kurtenbach.de Geschäftsleitung@Kurtenbach.de OUTERWEAR 2013 70 Product range: Men’s, ladies’ and childrenswear Price segment: Mid to upper level Member companies: 1’200 Product range: All kinds of garments Price segment: Lower level Member companies: 2000 4. ITALY 4. Italy 4.1 GENERAL ECONOMIC SITUATION Italy’s economy, which is the third largest in the euro area after Germany and France, has been in recession since 2011. Its GDP contracted in 2012. The contraction was led by sharp falls in consumption and investment in the wake of the Euro area financial crisis. Household real disposable income declined in 2011 while the consumption sentiment fell below levels in 2008-09. The unemployment rose to 10.2% in 2012, its highest level in more than ten years, with youth unemployment at 35%. Outlook According to the IMF, Italy’s economy is forecast to decline by 0.3 % in 2013 (2012 was -1.9%) due to tight financial conditions and global slowdown. Over the medium term, an ageing society is likely to constrain Italy’s growth prospects. The economy is expected to emerge from recession in 2013 with medium term (2014-17) growth forecast between 0.5% to 1.2%. 4.2 THE MARKET FOR OUTERWEAR 4.2.1 Market size Italy is the third largest clothing market in Europe, behind Germany and the UK, and therefore plays a major role in the European fashion business. The market size for outerwear stands at € 58 billion. 4.2.2 Market characteristics The Italian clothing market has traditionally been mainly supplied by a strong national apparel industry, comprised primarily of family owned 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. 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. 500‘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. OUTERWEAR 2013 71 4. ITALY 4.2.3 Demographic characteristics Italy has a fairly well spread age structure providing it with an average dependency load. The ages 0-14 have 14.17% of the population, the ages 15-64 have 67.48% of the population and the elders - 65 and up - have 18.35% (demographics). The total Italian population grows at an annual rate of 0.07% as opposed to a country like Canada with a growth rate of 0.804% (Omundi Index). The factors that affect the population and the growth or birth and death rates, migrants, fertility rate and infant mortality rate. The birth rate in Italy is 9.05 births every year per 1000 people. The death rate is 10.07 deaths annually per 1000 people. These two statistics put Italy in the 5th phase of the demographic transition when the birth rate falls below the death rate. The migrant rate (people leaving the country) is 1.73 migrants annually per 1000 population which is an average rate. The fertility rate is 11.8 children per 1 woman in her life time as opposed to a country like Canada where the fertility is 1.6 children per 1 woman in her whole life (demographics). The total life expectancy in Italy is 79.14. For men the average life expectancy is 75.97. The average life expectancy for woman is almost seven year’s higher at 82.52 (demographics). The total sex ratio throughout an entire life is 0.94 makes per 1 woman. This total is divided in to four separate categories to analyse. The four are at birth, below fifteen, fifteen-sixty four, and sixty four and up. The sex ratio at birth is 1.07 males to 1 female. The amount of males then drops slightly to 1.06 males per 1 female in the under fifteen category. It then drops again more significantly to 0.94 males per 1 woman in the fifteen - sixty four category. Then the most significant of the drops comes in the last category at 0.74 males per 1 female in the above sixty four category. Figure 4: Age structure of Italian population by gender, 2012 Male Italy - 2012 Female 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 3 2.4 1.8 1.2 Population (in millions) Source: U.S. Census Bureau, International Data Base OUTERWEAR 2013 72 0.6 0 0 Age Group 0.6 1.2 1.8 2.4 3 Population (in millions) 4. ITALY 4.2.4 Retail sales by product category 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 36 shows the dominant role in sales of formal clothing: 39% of men‘s wear sold in Italy is formal wear as is 37% of women‘s wear. Compared to other European countries, the share of formal wear is very high. Casual wear has a market share of 35% for men‘s wear and 39% for women‘s wear and is a preferred product category of the Italian consumer, as in all other Western European countries. However, casual wear 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 17% (men‘s wear) and 17% (women‘s wear) of the total clothing market. Table 36: Share of outerwear by gender, 2007 and 2011 Women Men Children 2008 2011 2008 2011 2008 2011 Formal 38% 37% 40% 39% 16% 14% Casual 37% 39% 34% 35% 71% 72% Leisure 18% 17% 18% 17% n.a. n.a. 7% 7% 8% 9% 13% 14% 100% 100% 100% 100% 100% 100% Active sports Total Source: Gherzi assumptions as per the market trend and last report’s data 4.2.5 Consumer behaviour 4.2.5.1 Consumer preferences Table 37 shows the development of the preferred types of retail channels for clothing from 2008 to 2012. 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 mores 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 through independent shops expresses the desire for service and quality. 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 children’s wear in particular is bought. At the same time, consumers have 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. OUTERWEAR 2013 73 4. ITALY Table 37: Clothing retail channels by market share [%] 2008 2010 2012 Specialists 65 69 71 Independent retailers 48 45 38 Clothing multiples 17 24 33 Non-specialists 35 31 29 Department/variety stores 14 13 9 Home shopping companies 2 2 2 Hyper- and supermarkets 7 6 7 Sports stores 5 1 4 Other 7 9 7 Total 100 100 100 Source: INSIGHTS (Global lifestyle monitor) 4.2.5.2 Consumer expenditure Italy, in terms of consumption volume of clothing, belongs to the top four countries within Europe together with France, the UK and Germany. According to Eurostat the final consumption Expenditure of households of clothing was, account for € 58.7 billion in 2011. Over the last few years, spending on clothing in Italy was fluctuating around € 58 billion, Below table shows total clothing consumption market is stable, there is no any drastic change, it increased by ~1% (annual growth) from 2008 to 2011. 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 50-55% more on clothing compared to men. This means that in Italy the market segment for men’s wear is more important than in the other countries analysed in this survey. Table 38: Final consumption Expenditure of households (aggregates at current prices) Total clothing Euro Billion Change % Source: Eurostat 2012 OUTERWEAR 2013 74 2008 2009 2010 2011 57.3 55.4 58.2 58.7 1.67% -3.5% 5.1% 0.9% 4. ITALY As table 39 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 in 2011 of € 2,843 for the North and only € 1,894 for the South of Italy. 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 2011 in Italy accounts for 5.4% of total household consumption (Basis: middle income household). Although expenditure in the South in total is lower - due to less disposable income - the share of expenditure for clothing (and footwear) is at 6.6% and 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). Table 39: Comparison of household expenditure on selected categories by region, 2009 – 2011 2009 2010 2011 North Italy 2,768 2,796 2,843 Central Italy 2,523 2,539 2,577 South Italy 1,898 1,882 1,894 Italy 2,442 2,453 2,488 Monthly expenditure per household € Spending categories Percentage distribution Clothing / footwear North Italy 5.2% 5.1% 4.9% Central Italy 5.4% 5.7% 5.1% South Italy 7.5% 7.5% 6.6% Italy 5.8% 5.8% 5.4% North Italy 28.3% 28.8% 29.4% Central Italy 31.2% 31.1% 32.4% South Italy 24.7% 25.0% 28.8% Italy 28.0% 28.4% 28.9% North Italy 5.5% 5.3% 5.2% Central Italy 5.5% 5.1% 5.0% South Italy 5.6% 5.5% 5.3% Italy 5.5% 5.3% 5.2% Housing Electricity, gas and other fuels OUTERWEAR 2013 75 4. ITALY Food and beverages North Italy 16.4% 16.5% 16.6% Central Italy 18.7% 18.6% 18.4% South Italy 24.4% 25.0% 25.6% Italy 18.9% 19.0% 19.2% North Italy 5.9% 5.6% 5.3% Central Italy 4.7% 4.8% 4.6% South Italy 5.2% 5.2% 5.2% Italy 5.5% 5.4% 5.1% Furnishing, equipment and housing services Source: Analysis based on ISTAT 4.2.6 Price developments of clothing Table 40 indicates the clothing (and footwear) price index compared with the general consumer price index in Italy from 2011 to 2013. The clothing price index has no changed in the 2013 whereas general consumer price index changed with 0.2% from December 2012 to January 2013 and in every period the change of percentage of clothing price index is smaller than general consumer price index. Table 40 Italian consumer price index (weights, indices and percentage changes) Division General consumer price index Jan - 13 Jan - 13 Dec - 12 Jan - 12 Weights Indices 1,000,000 106.7 0.2 83,387 110.5 0.0 Clothing and footwear price index Dec - 12 Dec - 11 Jan - 12 Dec - 11 2.2 2.3 0.3 1.4 1.5 0.1 Source: ISTAT – Note: January 2013, weights, indices and percentage changes (base 2010=100) 4.3 IMPORTS 4.3.1 Total imports In 2011, the total import of outerwear clothing (knitted and woven) in Italy was € 11.19 Billion. There has been a steady growth in imports which increased from € 9.30 Billion in 2009 to € 11.19 Billion in 2011 at an annual growth rate of 9.69% Summary of Clothing Outerwear imports by Italy: 2009-2011 (Euro Bn) 2009 2010 2011 9.30 10.30 11.19 Intra-EU imports 3.56 3.88 4.40 Extra-EU imports 5.74 6.42 6.79 Total imports Of which Source: Eurostat 2012 OUTERWEAR 2013 76 4. ITALY Source of Imports It is clearly evident from the above table that the value of imports from outside Europe (extra-EU) consistently occupy majority (60%) market share whereas the share of imports from within EU countries hold minority (40%) market share. Extra EU imports increased from € 5.74 Billion in 2009 to € 6.79 Billion in 2011. A detailed analysis of various export countries is shown in the subsequent tables. Product segments The clothing outerwear imports are composed of two product segments viz knitted outerwear and woven outerwear, with a slight tilt in favour of the latter (52% share). Overall, the largest segment in terms of value is knitted outerwear for both genders at € 3.33 Billion, representing 30% share of total imports. As shown in the aggregate table below, this segment consists of main products such as Jerseys, Pullovers, Cardigans, Gloves& Mittens and T-shirts. The second largest segment is woven outerwear for women & girls, with imports amounting to € 2.56 Billion, representing 23% of total imports. Product Segments – Import of Clothing outerwear by Italy, 2011(Euro Bn) Product segment Total Men & Boys’ Women & girls’ Both genders Active sportswear Knits 5.37 0.58 0.79 3.33 0.67 Wovens 5.82 2.56 2.39 0.63 0.26 11.19 3.14 3.18 3.96 0.91 Total Source: Eurostat 2012 Table 41: Imports of knitted outerwear by gender and product categories, 2009-2011 2009 2010 2011 Tons 1‘000 € Tons 1‘000 € Tons 1’000 € Coats, Raincoats, anoraks etc. (61.01) 1,333 37,615 1,959 47,834 2,155 57,038 Suits, jackets, outfits, trousers, shorts etc. (61.03) 7,720 126,860 10,515 152,734 11,394 197,177 Shirts (61.05) 9,758 258,411 14,088 290,391 14,452 324,911 Sub Total 18,811 422,886 26,562 490,959 28,001 579,127 Sub Total Extra EU 18,811 268,923 20,509 313,300 21,682 372,557 For Men or Boys For women or girls Coats, raincoats, anoraks etc. (61.02) Suits, jackets, outfits, trousers, dresses, skirts etc. (61.04) OUTERWEAR 2013 77 1,062 50,227 2,077 61,432 2,204 70,898 12,469 386,233 22,536 498,164 22,289 578,580 4. ITALY Blouses and shirts (61.06) 3,094 133,776 4,469 129,414 4,490 138,254 Sub Total 16,625 570,235 29,082 689,010 28,982 787,733 Sub Total Extra EU 16,625 323,301 20,211 403,119 19,117 432,251 For both genders T-shirts, singlets etc. (61.09) 39,565 989,739 61,050 1,085,278 61,858 1,216,911 Jersey, pullovers, cardigans, waistcoats, etc. (61.10) 46,973 1,468,698 67,640 1,589,681 65,253 1,685,866 Babies’ garments (61.11) 11,596 210,533 12,433 232,770 12,201 255,966 Garments rubberised, impregnated, etc. (61.13) 490 10,457 622 12,341 666 15,071 Gloves, mittens and mitts (61.16) 3,583 54,107 6,500 73,889 7,345 87,571 Other made-up clothing accessories (61.17) 3,743 52,602 6,299 74,723 4,996 71,501 Sub Total 105,950 2,786,136 154,544 3,068,682 152,318 3,332,888 Sub Total Extra EU 102,598 1,847,723 111,300 2,037,978 108,472 2,153,241 Active Sportswear Track suits, ski suits and swimwear (61.12) 11,686 235,859 11,611 236,227 11,685 247,556 Special garments for professional sporting or other purposes (61.14) 23,180 373,458 28,596 423,606 25,413 421,750 Sub Total 34,866 609,318 40,208 659,832 37,098 669,306 Sub Total Extra EU 14,542 211,537 14,926 226,140 11,928 222,199 TOTAL 176,252 4,388,575 250,397 4,908,484 246,398 5,369,053 TOTAL EXTRA EU 152,577 2,651,483 166,946 2,980,536 161,199 3,180,248 Source: Eurostat 2012 Table 42: Imports of woven outerwear by gender and product categories, 2009-2011 2009 2010 2011 Tons 1’000 € Tons 1’000 € Tons 1’000 € Coats, anoraks, windcheaters, etc. (62.01) 18,134 518,656 22,796 572,809 23,910 644,978 Suits, jackets, outfits, trousers, shorts, etc. (62.03) 44,315 1,223,590 68,565 1,370,607 63,771 1,455,169 Shirts (62.05) 11,772 369,035 16,870 411,037 16,428 460,596 For Men or Boys OUTERWEAR 2013 78 4. ITALY Sub Total 74,221 2,111,281 108,231 2,354,453 104,110 2,560,743 Sub Total Extra EU 74,221 1,359,923 80,909 1,561,123 78,407 1,672,803 Coats, anoraks, windcheaters, etc. (62.02) 17,175 579,757 23,009 660,805 20,958 714,358 Suits, jackets, dresses, skirts, trousers, etc (62.04) 32,041 1,241,888 45,916 1,293,228 41,329 1,383,648 4,495 248,735 6,922 269,187 6,310 290,876 Sub Total 53,711 2,070,380 75,848 2,223,220 68,597 2,388,883 Sub Total Extra EU 53,711 1,313,391 55,082 1,403,864 48,823 1,428,867 4,998 111,730 4,968 114,764 4,920 129,118 11,821 168,510 14,254 190,765 14,317 225,097 For women or girls Blouses and shirts (62.06) For both genders Babies garments (62.09) Others incl. Impregnated (62.10) Shawls, scarves, mufflers, etc. (62.14) 2,800 92,135 4,199 131,466 4,208 153,519 Ties, bow ties and cravats (62.15) 732 27,497 687 25,980 640 28,114 Gloves, mittens and mitts (62.16) 792 21,226 972 23,959 1,002 26,926 2,212 46,707 2,488 56,638 2,349 59,677 Sub Total 23,354 467,804 27,568 543,570 27,436 622,451 Sub Total Extra EU 16,418 256,906 18,862 304,963 18,509 347,398 Other made-up clothing accessories (62.17) Active Sportswear Track suits, ski suits (62.11) 14,330 265,016 13,780 270,894 11,963 245,192 Sub Total 14,330 265,016 13,780 270,894 11,963 245,192 Sub Total Extra EU 10,643 162,949 10,720 173,983 9,525 159,724 TOTAL 165,615 4,914,482 225,428 5,392,137 212,105 5,817,269 TOTAL EXTRA EU 154,992 3,093,168 165,573 3,443,933 155,264 3,608,793 Source: Eurostat 2012 OUTERWEAR 2013 79 4. ITALY 4.3.2 Outward Processing Trade (OPT) Outward Processing is the term used to describe a duty relief procedure established by the European Community (EC). It allows goods to be exported outside the European Union (EU) for processing or repair and then re-imported to the EU with a relief granted from import duties on the basis of the content of the EU goods in the final products. Outward processing enables businesses to take advantage of cheaper labour costs outside the EU, while encouraging the use of Community produced raw materials and intermediates to manufacture the finished products. According to table 31, the main two import countries for OPT business with Italy are Tunisia, with imports of € 38 million in 2010, and Albania, with imports valuing € 17.2 million. At present, the countries with the highest growth rates in the outward processing trade are India (+412%), Armenia (+207%), Croatia (+143%) and Moldova (+40%) from 2009 to 2010. 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 decreased with -9.8% from 2008 to 2009 and increased with +4.5% from 2009 to 2010 but overall slightly decreasing with -5.76% from 2008 to 2010. Table 43: Largest supplying countries of OPT woven outerwear, 2008-2010 Position Country 2008 (1’000 €) Change from 2008 2009 (1’000 €) Change from 2009 2010 (1’000 €) 1 TUNISIA 33,867 8.1% 36,595 4.0% 38,066 2 ALBANIA 25,132 -27.8% 18,139 -4.9% 17,248 3 MOLDOVA 13,271 -8.7% 12,117 40.0% 16,961 4 CHINA 17,024 -14.4% 14,570 -1.5% 14,357 5 SERBIA 5,557 43.8% 7,989 37.5% 10,987 6 UKRAINE 10,343 -22.0% 8,065 -11.3% 7,152 7 MOROCCO 4,930 -3.6% 4,755 1.4% 4,822 8 SWITZERLAND 4,078 -13.5% 3,528 -24.0% 2,682 9 INDIA 32 322.4% 136 412.2% 697 10 CROATIA 969 -74.9% 243 143.2% 592 11 MACEDONIA 1,921 -60.4% 761 -29.3% 537 12 ARMENIA 309 -46.4% 166 207.5% 510 13 SRI LANKA 130 496.6% 775 -57.0% 333 14 HONG KONG 14 4967.3% 692 -60.7% 272 15 EGYPT 2,010 -22.4% 1,559 -88.7% 176 16 KOREA - 0.0% - - 28 OUTERWEAR 2013 80 4. ITALY 17 PAKISTAN - 0.0% - - 8 18 CANADA - 0.0% - - 5 19 AZERBAIJAN - 0.0% - - 3 20 VIET-NAM 257 -3.4% 248 -100.0% - Total 122,488 -9.8% 110,510 4.5% 115,436 Source: Eurostat 2012 4.3.3 Largest suppliers of outerwear Looking at the major clothing supplying countries to Italy, table 32 gives a very good survey on the ‘top 20’ extra EU suppliers. Among the emerging and developing countries is China, with high year to year growth rate imports of € 3.2 billion in 2011. This figure represents almost 47% of the total Extra EU imports of outerwear into Italy. A similar picture can be drawn for Tunisia (€ 0.74 billion) and Bangladesh (€ 0.6 billion) which have considerable growth rates, too. The three biggest suppliers are China, Tunisia and Bangladesh. These three countries account for more than two thirds of the import share. Tunisia is also a strong OPT country for Italy, ranking on 2nd place in the below shown table. Table 44: Largest extra EU supplying countries of outerwear, 2009-2011 2009 (1’000 €) Change from 2009 2010 (1’000 €) Change from 2010 2011 (1’000 €) 2,759,410 15.7% 3,192,888 0.2% 3,200,832 TUNISIA 704,469 4.8% 738,604 1.5% 749,363 3 BANGLADESH 378,364 22.4% 463,137 30.7% 605,252 4 TURKEY 456,644 4.2% 475,720 10.3% 524,489 5 INDIA 268,349 9.4% 293,611 7.1% 314,580 6 CROATIA 140,264 -7.6% 129,550 11.8% 144,785 7 ALBANIA 103,691 19.0% 123,374 11.1% 137,007 8 MOROCCO 114,621 -4.3% 109,665 -1.1% 108,423 9 SRI LANKA 91,841 8.9% 100,022 6.4% 106,433 10 SWITZERLAND 81,395 18.2% 96,180 8.6% 104,431 11 VIET-NAM 74,666 12.9% 84,264 12.4% 94,715 12 MOLDOVA 61,227 2.4% 62,702 19.1% 74,691 13 PAKISTAN 50,965 17.6% 59,911 24.1% 74,331 14 INDONESIA 54,379 1.3% 55,112 19.7% 65,994 15 UNITED STATES 37,073 23.0% 45,582 -7.0% 42,378 16 EGYPT 42,532 0.6% 42,785 -11.5% 37,862 17 THAILAND 35,807 3.6% 37,111 -12.7% 32,392 18 HONG KONG 21,694 -27.9% 15,645 6.0% 16,580 Position Country 1 CHINA 2 OUTERWEAR 2013 81 4. ITALY 19 MALAYSIA 7,869 16.7% 9,180 5.8% 9,710 20 MAURITIUS 21,833 -37.6% 13,624 -41.8% 7,934 EU27_EXTRA 5,744,652 11.8% 6,424,469 5.7% 6,789,041 EU27_INTRA 3,558,405 8.9% 3,876,152 13.4% 4,397,282 Total 9,303,057 10.72% 10,300,621 8.60% 11,186,323 Source: Eurostat 2012 Intra EU imports into Italy have increased with 24% from the period 2009 to 2011. This imports accounts for 39% of the total outerwear clothing imports to Italy. Only Romania, which in ranking on the 1st place and Hungary (ranking 10th) had constantly decreasing values over the period from 2009 to 2010 and again increasing from 2010 to 2011, overall supply of outerwear from Hungary to Italy is constant over the period 2009 to 2011. Table 45: Largest intra EU supplying countries of outerwear, 2009-2011 Position Country 2009 (1’000 €) Change from 2009 2010 (1’000 €) Change from 2010 2011 (1’000 €) 1 ROMANIA 676,402 6.7% 721,997 19.5% 862,771 2 FRANCE 693,622 -1.7% 682,090 10.0% 750,185 3 SPAIN 443,305 13.8% 504,540 13.0% 570,177 4 BELGIUM 328,772 18.0% 388,115 28.8% 499,821 5 GERMANY 298,033 23.5% 368,210 -3.2% 356,412 6 NETHERLANDS 187,275 22.7% 229,752 24.9% 286,905 7 BULGARIA 199,236 12.2% 223,500 15.9% 259,061 8 UNITED KINGDOM 193,173 5.8% 204,366 11.7% 228,311 9 PORTUGAL 89,349 15.1% 102,833 11.5% 114,696 10 HUNGARY 70,556 -20.7% 55,929 26.2% 70,603 EU27_INTRA 3,558,405 8.9% 3,876,152 13.4% 4,397,282 EU27_EXTRA 5,744,652 11.8% 6,424,469 5.7% 6,789,041 Total 9,303,057 10.7% 10,300,621 8.6% 11,186,323 Source: Eurostat OUTERWEAR 2013 82 4. ITALY 4.4 TRADE STRUCTURE 4.4.1 Developments in retail trade 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. 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 4.3, imports grew constantly and in particular low priced products were 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. The small companies however have less financial possibilities to follow the technical trends in research and development and to establish their own distribution system. 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 so called street markets with a share of approximately 10%. North-Africans and increasingly Chinese dealers offer cheap (branded) and very fashionable clothing with minor faults at a reasonable quality. Obviously, some of the products are counterfeited. 8 out of 10 Italian consumers admit to buy from these mainly illegal market dealers. Most of the goods are smuggled from China, Morocco or elsewhere. Based on developments in the European clothing market, changes will also occur in the Italian retail sector. OUTERWEAR 2013 83 4. ITALY 4.4.2 Leading retailers The largest clothing retailer is the well-known Benetton Group is one of the best-known fashion companies in the world. Present in 120 countries with a network of over 6,500 stores, its total turnover exceeds 2 billion euro a year. It is more than ever a responsible group that plans for the future and lives in the present, with a watchful eye to the environment, to human dignity, and to a society in transformation. Edizione Srl, the holding company of the Benetton family, reported consolidated turnover of 11.6 billion Euro in 2010, with the group’s total number of employees exceeding 85,000 people. Edizione operates in the retail sector, principally with the shareholdings in Benetton Group and Autogrill Max Mara Group has consolidated over time through a meticulous, luxurious style that has always achieved rising success on a world-wide scale, demonstrated today in more than 2,300 stores. Sophisticated designer outlets open worldwide, not only on the most famous shopping streets of metropolises such as Milan, Paris, London, Moscow, New York and Tokyo but also in South Africa, Saudi Arabia, Bahrain, Australia, Brazil or New Caledonia. Even in China a network of over 245 sales outlets has been opened in less than ten years, extending from Beijing and Shanghai to Qingdao, Shenyang and Old Hangzhou. In total, the Max Mara Group has chosen to operate in 105 countries, both directly and through the other 10,000 multi-brand stores. Stefanel has 691 mono brand stores of which 264 are directly operated stores. In the mega stores of Stefanel, brands other than Stefanel are also offered. The whole company has a turnover based on retail and production activities of € 300 million a year. Stefanel owns four production sites in Italy and one in Germany. The Coin Group is one of the leading European retailers for clothing, accessories, and household goods with a turnover of € 1.7 billion in 2011 with 6.5% market share. The retail chains Oviesse and Coin belong to the Coin Holding and are subsidiary companies for different market segments. Throughout Italy there are 824 shops and in other countries 78 OVS & 15 Coin. The Coin clothing range is produced by Manifatture di Fara SPA and Sirema Srl. 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 2011, the turnover of La Rinascente was € 500 million. 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. La Rinascente sold its subsidiary company UPIM (€ 520 million turnover in 2012) to the Gruppo Coin. 4.4.3 Distribution channels 4.4.3.1 Retailers Table 46 gives an overview on the structure of the Italian clothing retail market from 2008 to 2012. The numbers indicate that independent retailers account for 38% of clothing retail and therefore represent nearly 1/3rd of the market where multiples in Italy increased in the period 2010 to 2012 by 9% and total amount is33% of the clothing is sold through these clothing chains. Hyper- and supermarkets represent 7% and department stores decreased account for 9% of the clothing retail distribution in Italy. OUTERWEAR 2013 84 4. ITALY Table 46: Clothing retail channels by market share [%] 2008 2010 2012 Specialists 65 69 71 Independent retailers 48 45 38 Clothing multiples 17 24 33 Non-specialists 35 31 29 Department/variety stores 14 13 9 Home shopping companies 2 2 2 Hyper- and supermarkets 7 6 7 Sports stores 5 1 4 Other 7 9 7 Total 100 100 100 Source: INSIGHTS (Global lifestyle monitor) 4.4.3.1.1 Independent 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 38% in 2012. 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. Market share: 38% in 2012 Trend: Strongly Decreasing 4.4.3.1.2 Clothing multiples 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 (women’s wear), Max Mara (women’s wear), Prenatal (children’s wear) or Chicco (children’s wear). 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. Market share: 33% in 2012 Trend: Slightly increasing 4.4.3.1.3 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 women’s 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. Market share: 9% in 2012 Trend: Slightly decreasing OUTERWEAR 2013 85 4. ITALY 4.4.3.1.4 Mail-order houses Over the last years the Italian postal service has made some improvements. But still 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 decreased to 1% and does not show any significant signs of change. Market share: 12% in 2012 Trend: Slightly increasing 4.4.3.1.5 Hyper- and supermarkets While multiples and department stores often buy directly from manufacturers, the hyper- and supermarkets sometimes also make use of agents and importers/wholesalers based in Italy. These hyper- and supermarkets 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. Hyper- and supermarkets 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 located in the North of Italy, are Coop, Ipercoop, Gruppo Standa, Conad, Despar Italia and Esselunga. The share of clothing sold through hyper- and supermarkets is slightly but continuously increasing, reaching a level of 7% in 2012. Market share: 7% in 2012 Trend: Constant trend 4.4.3.1.6 Sport stores Sport stores in Italy only offer a limited range of clothing products specialised to fit to numerous sporting disciplines. Market share: 4% in 2012 Trend: Stable trend 4.4.3.1.7 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. Market share: 7% in 2012 Trend: Stable trend 4.4.3.2 Sales intermediaries 4.4.3.2.1 Clothing manufacturers 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). OUTERWEAR 2013 86 4. ITALY 4.4.3.2.2 Sales agents 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 10%-15%. Independent regional sales agents take between 5% and 10%. 4.4.3.2.3 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 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. 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 longterm business partnerships. 4.5 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. The exhibitors at Moda Prima in Milan are manufacturers of ready to 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 department stores, chains and mail-order companies, but also wholesalers, importers and trading 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 women‘s wear is the Milano Moda Donna in February and September each year. The main fashion fair for men‘s wear is the Pitti Uomo which is quite small but of absolutely international importance with many buyers from overseas. The table of the specialised clothing fairs below only includes events with an international approach. Table 47: Italian fashion trade fairs 2013-14 Trade fair Date Location ICDF - IMMAGINE CASA DECOR & FASHION Home, Yachting and spa Linens, furnishing textiles, furnishing accessories, luxury interiors, underwear lingerie, collection preview 23.02 - 26.02 2013 Rimini Fiera TOUCH! NEZONE CLOUDNINE Three showplaces dedicated to woman collections, on stage during the Milan Fashion Week 23.02 - 25.02 2013 Milan MI MILANO PRÊT-À-PORTER International Presentation of Women swear Collections 23.02 - 25.02 2013 Fiera Milano City SHOE COLLECTION Trade Shoe Fair 09.03 - 11.03 2013 Fiera Bolzano OUTERWEAR 2013 87 4. ITALY MICAM SHOEVENT International Footwear Exhibition 03.03 - 06.03 2013 Fiera Milano Nuovo Polo MIFUR International Leather & Furs Exhibition 03.03 - 06.03 2013 Fiera Milano Nuovo Polo MIPEL International Leather Goods Market 03.03 - 06.03 2013 Fiera Milano Nuovo Polo March, 2013 Lingotto Fiere LINEAPELLE International Exhibition of Leathers, Accessories, Components, Synthetic Products and Models for Footwear, Leather Goods, Leatherwear and Furnishing 03.04 - 05.04 2013 Bologna Exhibition Centre PROWINTER Trade Show for Professionals of Winter Sports 17.04 - 19.04 2013 Fiera Bolzano May, 2013 Fiera Milano City CHIBIMART - SUMMER Cash & Carry Exhibition of Costume Jewelry in semiprecious stones, precious stones, Silver Handicraft, Gift Items 10.05 - 13.05 2013 Fiera Milano City CHIBIDUE International Exhibition of Gift Articles, Perfumery Items, Costume Jewelry and Smokers’ Supplies 10.05 - 13.05 2013 Fiera Milano City MODAPRIMA FLORENCE Women’s Fashion Show 24.05 - 26.05 2013 Fortezza da Basso MITTELMODA International Contest for Young Designers June, 2013 Udine e Gorizia Fiere MILANO MODA UOMO Fashion Show for Men. This is an international event featuring novelties and pret-à-porter collections for men created by italian fashion’s most prestigious designers June, 2013 Fiera Milano City PITTI IMAGINE W Fair-event devoted to special projects in women’s fashions concomitantly with Pitti Uomo 18.06 - 21.06 2013 Fortezza da Basso PITTI IMMAGINE UOMO Men’s Fashion Show 18.06 - 21.06 2013 Fortezza da Basso SI SPOSAITALIA COLLEZIONI International Presentation of Bridal and Ceremonial Clothes 21.06 - 24.06 2013 Fiera Milano City PITTI IMMAGINE BIMBO Children’s Fashion Show 27.06 - 29.06 2013 Fortezza da Basso PITTI IMMAGINE FILATI Yarn Industry Show 03.07 - 05.07 2013 Fortezza da Basso Sept. 2013 Fiera Milano City 12.09 - 15.09 2013 Fiera Milano City IDEASPOSA Bridal Show MODAPRIMA International Fashion and Accessories Show MILANO MODA DONNA Women’s Wear Exhibition. MILANO MODA DONNA is an international event featuring novelties and pret-à-porter collections created by italian fashion’s most prestigious designers BIJOUX Exhibition of Costume Jewelry OUTERWEAR 2013 88 4. ITALY MILANO UNICA International Textile Fair 10.09 - 12.09 2013 Fiera Milano City MACEF AUTUNNO / PRIMAVERA 12.09 - 15.09 2013 Fiera Milano Nuovo Polo Oct. 2013 Fiera di Ferrara 08.10 - 10.10 2013 Bologna Exhibition Centre Sept. 2013 Fiera Milano City RISO & CONFEFFI Exhibition of Products and Services for the Wedding and the New House 02.11 - 10.11 2013 Pordenone Fiere RISO E CONFETTI Wedding Fair 02.11 - 10.11 2013 Pordenone Fiere Jan. 2014 Fiera Internazionale della Sardegna CHIBIMART - INVERNO Cash & Carry Exhibition of Costume Jewelry in semiprecious stones, precious stones, Silver Handicraft, Gift Items 15.11 - 18.11 2013 Fiera Milano City ROMA SPOSA National Show of Wedding and Full Dress as well as Accessories and Services for the Wedding Day Jan. 2014 Fiera di Roma VERONA SPOSI Wedding Show Nov. 2013 Verona Exhibition Centre E’ SPOSI Bridal Exhibition Feb. 2014 PadovaFiere VENEZIA SPOSI Wedding Show Feb. 2014 Marittima Terminal Passengers VIVI LA CASA Fashion and Life Styles for Modern Living Feb. 2014 Verona Exhibition Centre SPAZIOCASA Exhibition of Furnishing, Home Accessories and Wedding Articles Feb. 2014 Fiera di Vicenza FERRARA SPOSI Wedding Fair SIMAC International Exhibition of Machines and Technologies for Footwear and Leather Goods Industries MODA IN - TESSUTO & ACCESSORI Textile Proposals FIORI E SPOSE Trade Show of Wedding’s equipment and services Source: EventsEye OUTERWEAR 2013 89 4. ITALY 4.6LIST OF MAJOR BUYERS IN ITALY Clothing chain stores ARIMO S.r.l. Via Libertà 52 I-20029 Turbigo (Mi) Tel.: +39 0331 890814 Fax: +39 0331 898079 info@arimo.it www.arimo.it ARTENI SpA Via Nazionale, 133-141 I - 33010 Tavagnacco (UD) Tel.: +39 (0) – 432 661288 Fax: +39 (0) – 432 660624 info@arteni.it www.arteni.it Bernardi SpA Bernardi Group Spa - a sole Via delle Industrie, 3 33050 Ronchis (UD) Tel +39 0431 568111 Fax +39 0431 567066 e-mail: info@bernardi.it www.bernardi.it 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 La Cicogna srl Piazzale Biancamano 1 I - 20154 Milano Tel.: +39 (0) – 233 605725 Fax: +39 (0) – 233 605725 OUTERWEAR 2013 90 Product range: underwear, swim- and beachwear Price segment: mid level Number of outlets: 126 Product range: ladies’, men’s, childrenswear, sportswear Price segment: mid level Number of outlets: 16 Product range: ladies’, menswear Price segment: lower level Number of outlets: 183 stores, including 34 with insignia Go Kids Product range: womenswear, young fashion Price segment: mid to higher level Number of outlets: 9 Product range: children swear Price segment: mid level Number of outlets: 10 4. ITALY Modifin SpA Via Manzoni, 38 I - 20121 Milano Tel.: +39 (0) – 2 7609 3558 Fax: +39 (0) – 2 7609 3550 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 Zara (Head office in Spain) Via Morimondo, 26 I - 20143 Milano Tel.: +39 (0) – 2818 00 81 Fax: +39 (0) – 2891 52 424 www.zara.com Product range: Men’s and women swear Price segment: high level Number of outlets: 20 Note: Manufacturer and retailer Product range: Women swear Price segment: mid level Number of outlets: 11 Product range: all kinds of clothing Price segment: low Number of outlets: 11 Italy, 12 EU, 3 US Note: app. 100 employees Product range: Ladies, men’s, Childrenswear, Jeans- sportswear and young fashion Price segment: mid level Number of outlets: 67 in Italy Jeans- sportswear and young fashion 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 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 OUTERWEAR 2013 91 Product range: Denim Price segment: mid level Number of outlets: 12 Product range: young fashion Price segment: mid level Number of outlets: 35 own, 40 dep. stores, 3’500 multi-brands Note: Brand ‘Fornarina’ 4. ITALY 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 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 48 6456 Fax: +39 (0) – 773 60 624 www.sport85.it 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 Product range: Sports-, casual-, denimwear for ladies and men Price segment: mid level Number of outlets: 8 Product range: womenswear Price segment: lower level Number of outlets: 17 Product range: ladies’, men’s wear Product range: jeans and casualwear Price segment: lower level Number of outlets: 24 Product range: women swear Price segment: mid to upper level Number of outlets: 370 worldwide Diesel Italia Via dell’ Industria 7 I - 36063 Marostica (Vi) Tel.: + 39 (0) – 424 4855 Fax: + 39 (0) – 424 471 131 www.diesel.com Product range: jeans and casual wear Price segment: mid level Number of outlets: 26 Fashion Box Industries SpA Via Marcoai, 1 I - 31010 Asolo (TV) Tel.: +39 (0) – 423 9251 Fax: +39 (0) – 423 925299 www.replay.it Product range: jeans and casualwear Price segment: mid level Number of outlets: 26 Sixty Groupe SpA Via Erasmo Piaggio, 35 I - 66013 Chieti 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 Number of outlets: 16 OUTERWEAR 2013 92 4. ITALY 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 Price segment: mid to upper level Number of outlets: 359 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 Product range: men’s, ladies’ and childrenswear Price segment: lower level Number of outlets: 10 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 Product range: men’s, ladies’ and childrenswear Price segment: lower to mid level Number of outlets: 147 stores + 230 franchise partners Note: belongs to La Rinascente Mail order companies 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 OUTERWEAR 2013 93 CONAD Consorzio Nationale Dettaglianti scarl Via Michelino, 59 I - 40127 Bologna Tel.: +39 (0) – 51 508111 Fax: +39 (0) – 51 508414 www.conad.it 4. ITALY 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 di Torre Spaccata. 172, lotto 3 I – 00169 Roma Tel.: +39 (0) – 6 454 97 100 Fax: +39 (0) – 6 454 97 190 info@metrocspa.it www.metrocspa.it Lombardini Holding SpA Via Provinciale, 80 I - 24044 Dalmine BG Tel.: +39 (0) – 35 432 0111 Fax: +39 (0) – 35 4320580 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 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 Benetton Group SpA Villa Minelli 1 I - 31050 Ponzano Veneto Tel.: +39 (0) – 422 519111 Fax: +39 (0) – 422 969501 info@benetton.it www.benetton.com Cadena Italia srl V. Leopardi, 31 I - 22075 Lurate Caccivio (CO) Tel.: +39 (0) – 31 391030 Fax: +39 (0) – 31 391040 OUTERWEAR 2013 94 Product range: children’s, babies’ Product: ladies’, menswear Manufacturer + wholesaler Note: 7’000 stores in 120 countries Manufacturer + wholesaler 4. ITALY 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 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 Manufacturer + wholesaler FORALL Confezioni Spa V. F. Filzi, 34 I - 36050 Quinto Vicentino (VI) Tel.: +39 (0) – 444 35 6096 Fax: +39 (0) – 444 35 7064 www.sartoriale.it www.palzileri.it Product: Menswear Manufacturer + wholesaler 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 + retailer Shops Max Mara Fashion Group Srl Sede Legale via del Carmine,10 - Torino - Italia Tel: +39 02 777.921 Fax: +39 02 777.92801 info@maxmarafashiongroup.com www.maxmarafashiongroup.com/it OUTERWEAR 2013 95 Products: womenswear – upper segment 4. ITALY Miniconf srl 52010 Ortignano Raggiolo (AR) T: + 39 0575 5331 info@miniconf.it www.miniconf.it Marzotto S.p.A. Via Turati 16/18 I - 20121 Milano marzotto@marzotto.it www.marzotto.it Pado Tonali SpA Via Cesare Battisti 3 I - 21045 Gazzada Schianno (VA) Tel.: +39 (0) – 332 464233 Fax: +39 (0) – 332 464158 tonalispa@paolotonali.it www.paolotonali.it Buying associations Cooperativa Legler Società Cooperativa Via Carducci, 5 - 24030 Presezzo (BG) Tel. +39.035.41.58.111 Fax +39.035.41.58.126 info@cooperativalegler.it www.cooperativelegler.it Euroconfezioni Soc.coop.r.l. 39, v. Bellini I - 89055 Reggio Calabria (RC) Tel.: +39 (0) – 965 371878 Mob.: +39 0349 4049055 Fax: +39 (0) – 965 371878 euroconf@libero.it OUTERWEAR 2013 96 Buying of all kinds of clothing Buying centres, supermarkets, retail Shops Buying cooperation, manufacturer, retailer All kinds of outerwear, sportswear, Workwear 5. DENMARK 5. Denmark 5.1 GENERAL ECONOMIC SITUATION This thoroughly modern market economy features a high-tech agricultural sector, state-of-the-art industry with world-leading firms in pharmaceuticals, maritime shipping and renewable energy, and a high dependence on foreign trade. Denmark is a member of the European Union (EU); Danish legislation and regulations conform to EU standards on almost all issues. Danes enjoy among the highest standards of living in the world and the Danish economy is characterized by extensive government welfare measures and an equitable distribution of income. Denmark is a net exporter of food and energy and enjoys a comfortable balance of payments surplus but depends on imports of raw materials for the manufacturing sector. Within the EU, Denmark is among the strongest supporters of trade liberalization. The global financial crisis hit Denmark hard, and the recovery has been slow and unsteady. Denmark’s slow growth predates the recent economic crisis, and the economy has underperformed its regional peers during the past two decades. Income growth has been less than in other northern European countries This has affected the consumer confidence. The global financial crises cut Danish real GDP by 0.8% in 2008 and (- 5.7%) in 2009. Denmark made a modest recovery in 2010 with real GDP growth of 1.3%, in part because of increased government spending; however, the country experienced a technical recession in late 2010-early 2011. Historically low levels of unemployment rose sharply with the recession and have remained at about 6% in 2010-11, based on the national measure, about twothirds average EU unemployment. An impending decline in the ratio of workers to retirees will be a major long-term issue. Despite previously meeting the criteria to join the European Economic and Monetary Union (EMU), so far Denmark has decided not to join, although the Danish Krone remains pegged to the Euro. OUTLOOK The IMF has projected 2013 growth at 0.9% of GDP, lifted mostly by private consumption; medium term (2014-17) forecast for GDP growth is 1.3% to1.5%. 5.2 THE MARKET FOR OUTERWEAR 5.2.1 Market size Denmark, which accounts for 1% of the population of the 27-member EU, In 2011, the market size of outerwear in Denmark amounted to € 3.75 billion, which is 60% of the total clothing market € 6.25 billion. The Denmark clothing market is forecast to grow steadily between 2015 and 2018 to reach a value of € 7.5 billion, of which up to € 4.5 billion will be outerwear. Apparel imports, at € 3.06 billion, are higher than local production at € 0.32 billion. The imports of clothing increasing by 2% annual growth rate in terms of value from 2008 to 2011. In the same period local production decreased by -1%, of which goods amounting to € 2.86 billion were exported. OUTERWEAR 2013 97 5. DENMARK Table 48: Evolution of the Denmark clothing sector [€ million] 2008 2009 2010 2011 CAGR Employees [‚000] 2.11 1.44 1.40 1.38 -13% Production 335 306 316 324 -1% Import 2851 2550 2843 3067 2% Export 2546 2346 2544 2868 4% Trade balance -305 -203.6 -299 -198.6 -13% Source: Eurostat & Gherzi assumptions 5.2.2 Market characteristics Denmark holds no luxury brands in the apparel fashion industry with histories that can match those of French fashion houses. The success of Danish fashion in recent years has accordingly been dependent on the establishment of new brands. This reality somewhat conflicts with the self-conception of the Danish Fashion Industry. Denmark has gained a prominent position on the global fashion market since the 1990s, driven by especially the expansion of the multinational enterprise Bestseller comprising brands such as Jack & Jones and Vero Moda. In 2010 Bestseller opened nearly 500 new brand-stores in alliance with local partners. The success of Bestseller has been due to expansion in Europe but also in China, where Danish fashion is building a stronghold. The global success of Bestseller and other Danish fashion producers have lead both industry observers and the trade itself to conclude that the Danish clothing industry has been more swiftly able to adopt to a new global trade regime through outsourcing of production and the building of global distribution networks than competitors in other western countries. The narrative largely neglects that the transformation of the clothing industry was a result of the emergence of new successful companies rather than the transformation of old ones. In order to protect old business models the industry’s associations also in Denmark for long fought for protectionism. 5.2.3 Demographic characteristics According to 2012 figures from Statistics Denmark, 89.6% of Denmark’s population of over 5,580,516 was of Danish descent. Many of the remaining 10.4% were immigrants—or descendants of recent immigrants—near half of whom are from the neighboring Scandinavian countries and Germany. Others include people from Turkey, Iraq, Somalia, Bosnia and Herzegovina, South Asia, and from the Middle East. More than 590 000 individuals (10.4%) are migrants and their descendants (142 000 second generation migrants born in Denmark). OUTERWEAR 2013 98 5. DENMARK Of these 590 000 immigrants and their descendants: Figure 5: Age structure of Denmark population by gender, 2012 Male Denmark - 2012 Female 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 0-4 215 172 129 86 43 Population (in thousands) 0 Age Group 0 43 86 129 172 215 Population (in thousands) Source: US Census Bureau, International Data Base 5.2.4 Retail sales of clothing The H&M is the market leader for clothing in Denmark with the 11.2% share retailing, and second leader is the Dansk Supermarked with 10% market share which has started its business in Denmark in 2010. Earlier in 2009 the second player was Bestsellers group for the clothing retailing in Denmark. Table 49: Market share of clothing retailers, 2008 and 2011 [%] Market Player 2009 2010 H & M Hennes & Mauritz AB 9 11.2 Dansk Supermarked A/S 0 10 Bestseller Group 6.9 8.6 BTX Group A/S 6.8 6.3 Dress Partner a.m.b.a. 3.8 4.7 Polaris Management A/S 3.1 3.8 OUTERWEAR 2013 99 5. DENMARK Mr ApS 2.6 3.3 Axel Kaufmann ApS 2.4 3 IC Companys A/S 2.3 2.6 A/S Deres Design 1.7 2.1 61.3 44.5 Others Source: Mintel report 2011 5.2.5 Consumer behaviour 5.2.5.1 Consumer preferences ”The Danish clothing industry has equipped itself to be able to satisfy the clothing needs of any woman. Now it is about selling the right clothes to the right women”, said the clothing industry and the tailor’s trade’s central organisation Federation of Danish Textile and Clothing Industries. For the Federation of Danish Textile and Clothing Industries, the campaign was a conscious and commercial road to change in the attempt to create and keep a market. Their strategic effort was in the first instance putting on the big marketing campaign, Clothes Create People, which in the literal sense of the word was supposed to stimulate interest in fashion with the consumers and was to compete on fashion, design and branding rather than price. Even though research into the Danish clothing industry today offers alternative angles on the traditional stylistic and evolution history angles, the research is most often not connected with social, political and financial changes, just as it to a high degree does not have a consume perspective. The consumers had to be advised on how to be well dressed and the Federation of Danish Textile and Clothing Industries became the organisational centre of a network, which wanted to strengthen the reputation of Danish fashion and increase purchasing power. 5.2.5.2 Consumer expenditure Consumer spending on clothing in Denmark is in the levels to other European countries. Average spending on clothing in 2011 amounts to € 678 per capita, which is below Italy’s rate. The total consumption expenditure on outerwear is increased by 5% from the year 2008 (€ 3.65 bn) to 2011 (€ 3.83 bn) in which the women’s, Men’s and Children’s outerwear expenditure is grown by 5.1%, 5% and 4.4% respectively in the same period. According to industry sources, women’s expenditure on outerwear amount to approximately 50% of the total consumer expenditure on outerwear clothing. More details about the structure of Denmark outerwear consumption can be taken from table below. Table 50: Consumer expenditure on outerwear clothing 2008 2009 2010 2011 Women [€ bn] 1.99 2.08 2.10 2.09 Men [€ bn] 1.09 1.13 1.14 1.14 Children [€ bn] 0.58 0.60 0.60 0.60 Total [€ bn] 3.65 3.81 3.85 3.83 Source: Gherzi assumptions based on Eurostat and previous reports OUTERWEAR 2013 100 5. DENMARK 5.3 IMPORTS 5.3.1 Total imports In 2011, the total import of outerwear clothing (knitted and woven) in Denmark was € 2.80 Billion. There has been a steady growth in imports which increased from € 2.31 Billion in 2009 to € 2.80 Billion in 2011 at an annual growth rate of 9.86% Summary of Clothing Outerwear imports by Denmark: 2009-2011 (Euro Bn) 2009 2010 2011 2.31 2.57 2.80 Intra-EU imports 0.79 0.84 0.89 Extra-EU imports 1.52 1.73 1.91 Total imports Of which Source: Eurostat 2012 PRODUCT SEGMENTS The clothing outerwear imports are composed of two product segments viz knitted outerwear and woven outerwear, with a slight tilt in favour of the latter (56% share). Overall, the largest segment in terms of value is knitted outerwear for both genders at € 0.83 Billion, representing 29.6% share of total imports. As shown in the aggregate table below, this segment consists of main products such as Jerseys, Pullovers, Cardigans, Gloves& Mittens and T-shirts. The second largest segment is woven outerwear for women & girls, with imports amounting to € 0.75 Billion, representing 26.4% of total imports. Product Segments – Import of Clothing outerwear by Denmark, 2011(Euro Bn) Product segment Total Men & Boys’ Women & girls’ Knits 1.22 0.08 0.25 0.83 0.05 Wovens 1.58 0.61 0.75 0.15 0.08 Total 2.80 0.69 1.00 0.98 0.13 Source: Eurostat 2012 OUTERWEAR 2013 101 Both genders Active sportswear 5. DENMARK Table 51: Imports of knitted outerwear by gender and product categories, 2009-2011 2009 2010 2011 Tons 1’000 € Tons 1’000 € Tons 1’000 € For Men or Boys Coats, Raincoats, anoraks etc. (61.01) 343 8,982 500 12,393 481 14,278 Suits, jackets, outfits, trousers, shorts etc. (61.03) 1,017 21,328 1,430 28,348 1,639 32,117 Shirts (61.05) 1,347 24,761 1,766 30,949 1,794 34,623 Sub Total 2,707 55,071 3,696 71,690 3,914 81,018 Sub Total Extra EU 2,082 26,789 2,846 36,654 2,995 40,960 568 10,746 564 11,258 637 13,063 Suits, jackets, outfits, trousers, dresses, skirts etc. (61.04) 6,499 131,466 8,145 162,488 6,713 153,000 Blouses and shirts (61.06) 4,944 102,883 4,415 96,254 3,641 88,766 12,011 245,094 13,123 270,001 10,992 254,829 9,629 163,483 10,553 186,356 8,472 167,542 T-shirts, singlets etc. (61.09) 16,315 268,747 20,316 328,958 18,789 341,214 Jersey, pullovers, cardigans, waistcoats, etc. (61.10) 18,652 322,112 20,165 372,487 20,372 398,279 1,913 33,155 2,087 38,964 1,919 39,486 439 5,661 510 5,733 593 7,893 1,543 13,096 1,724 17,757 2,470 24,805 659 12,406 858 16,078 998 18,743 Sub Total 39,521 655,176 45,661 779,978 45,140 830,419 Sub Total Extra EU 32,272 447,046 37,520 537,379 37,732 593,452 For women or girls Coats, raincoats, anoraks etc. (61.02) Sub Total Sub Total Extra EU For both genders Babies’ garments (61.11) Garments rubberised, impregnated, etc. (61.13) Gloves, mittens and mitts (61.16) Other made-up clothing accessories (61.17) OUTERWEAR 2013 102 5. DENMARK Active Sportswear Track suits, ski suits and swimwear (61.12) 782 17,859 984 21,902 1,095 23,338 Special garments for professional sporting or other purposes (61.14) 1,200 27,658 1,311 28,975 997 27,651 Sub Total 1,982 45,517 2,294 50,876 2,092 50,989 Sub Total Extra EU 1,314 23,415 1,445 25,489 1,246 23,214 TOTAL 56,221 1,000,858 64,774 1,172,545 62,138 1,217,255 TOTAL EXTRA EU 45,297 660,733 52,364 785,878 50,445 825,168 Source: Eurostat 2012 Table 52: Imports of woven outerwear by gender and product categories, 2009-2011 2009 2010 2011 Tons 1’000 € Tons 1’000 € Tons 1’000 € Coats, anoraks, windcheaters, etc. (62.01) 4,359 76,215 5,299 92,456 5,967 112,543 Suits, jackets, outfits, trousers, shorts, etc. (62.03) 15,681 312,477 16,528 333,638 18,507 390,861 3,823 88,272 4,204 97,752 4,208 108,430 Sub Total 23,863 476,964 26,031 523,847 28,682 611,834 Sub Total Extra EU 18,714 268,253 20,355 302,182 22,413 372,472 6,322 103,703 6,167 108,093 6,934 127,040 21,706 445,976 21,211 449,849 19,937 479,743 3,924 123,710 4,082 124,103 3,988 134,276 Sub Total 31,952 673,389 31,460 682,045 30,860 741,060 Sub Total Extra EU 25,060 481,715 26,504 511,592 26,233 557,820 798 13,350 868 15,504 748 13,961 2,369 42,817 2,867 54,312 3,651 79,113 For Men or Boys Shirts (62.05) For women or girls Coats, anoraks, windcheaters, etc. (62.02) Suits, jackets, dresses, skirts, trousers, etc (62.04) Blouses and shirts (62.06) For both genders Babies garments (62.09) Others incl. Impregnated (62.10) OUTERWEAR 2013 103 5. DENMARK Shawls, scarves, mufflers, etc. (62.14) 1,225 28,329 1,350 32,424 1,247 33,606 91 4,053 98 3,751 87 3,404 Gloves, mittens and mitts (62.16) 318 5,024 343 6,935 399 9,111 Other made-up clothing accessories (62.17) 465 8,719 592 10,513 357 8,405 Sub Total 5,265 102,292 6,118 123,438 6,490 147,599 Sub Total Extra EU 3,925 70,600 4,567 82,845 5,022 104,056 Track suits, ski suits (62.11) 3,181 63,070 3,640 71,863 3,953 82,834 Sub Total 3,181 63,070 3,640 71,863 3,953 82,834 Sub Total Extra EU 2,459 42,882 2,670 47,310 2,833 52,399 TOTAL 64,261 1,315,714 67,249 1,401,193 69,984 1,583,327 TOTAL EXTRA EU 50,157 863,451 54,097 943,929 56,500 1,086,747 Ties, bow ties and cravats (62.15) Active Sportswear Source: Eurostat 2012 5.3.2 Outward Processing Trade (OPT) Outward Processing is the term used to describe a duty relief procedure established by the European Community (EC). It allows goods to be exported outside the European Union (EU) for processing or repair and then re-imported to the EU with a relief granted from import duties on the basis of the content of the EU goods in the final products. Outward processing enables businesses to take advantage of cheaper labour costs outside the EU, while encouraging the use of Community produced raw materials and intermediates to manufacture the finished products. According to table 63, the main two import countries for OPT business with Denmark are Vietnam, with imports of € 15 million in 2010, and Ukraine, with imports valuing € 8.4 million. At present, the countries with the highest growth rates in the outward processing trade are Thailand (+57.4%), Ukraine (+39.3%) and Vietnam (+24%) from 2009 to 2010. The total OPT business into Denmark from non EU countries has decreased with -23.6% from 2008 to 2009 and increased with +15% from 2009 to 2010 but overall slightly decreased with -12% from 2008 to 2010. Table 53: Largest supplying countries of OPT woven outerwear, 2008-2010 2008 (1’000 €) Change from 2008 2009 (1’000 €) Change from 2009 2010 (1’000 €) VIETNAM 8,205 50.2% 12,321 23.9% 15,260 2 UKRAINE 12,977 -53.1% 6,086 39.3% 8,479 3 THAILAND 2,603 -25.2% 1,948 57.4% 3,067 4 CHINA 5,983 -47.4% 3,150 -66.7% 1,050 Position Country 1 OUTERWEAR 2013 104 5. DENMARK 5 MACEDONIA - - - - 104 6 CROATIA 36 -49.4% 18 2.5% 19 7 INDIA 1,447 -59.5% 585 -100.0% - 8 BELARUS 82 140.1% 196 -100.0% - 9 HONG KONG - - 1 -100.0% - 10 TAIWAN 259 -100.0% - - - 11 RUSSIA 149 -100.0% - - - 12 BANGLADESH 62 -100.0% - - - 13 BOSNIA AND HERZEGOVINA 16 -100.0% - - - Total 31,818 -23.6% 24,307 15.1% 27,979 Source: Eurostat 2012 5.3.3 Largest suppliers of outerwear The five major supplying countries of clothing from extra-EU countries are – according to their importance – China, Turkey, India, Bangladesh and Vietnam. The two main extra-EU suppliers of fashion clothing, China and Turkey, represent 69% of the entire extra-EU import value. Table 54: Largest extra EU supplying countries of outerwear, 2009-2011 Position Country 2009 (1’000 €) Change from 2009 2010 (1’000 €) Change from 2010 2011 (1’000 €) 1 CHINA 829,035 13.0% 936,539 7.3% 1,005,350 2 TURKEY 275,377 6.5% 293,210 7.1% 313,920 3 INDIA 193,115 9.0% 210,490 13.5% 239,010 4 BANGLADESH 113,674 43.1% 162,629 29.9% 211,205 5 VIETNAM 29,789 35.0% 40,215 29.2% 51,949 6 PAKISTAN 10,328 -24.1% 7,841 64.6% 12,904 7 THAILAND 14,706 -0.1% 14,691 -20.1% 11,745 8 HONG KONG 11,303 -18.6% 9,199 5.3% 9,688 9 LAO 3,277 10.7% 3,629 21.4% 4,407 10 SRI LANKA 3,030 21.6% 3,684 16.9% 4,307 11 UNITED STATES 3,820 15.1% 4,396 -16.1% 3,686 12 INDONESIA 1,367 25.6% 1,717 42.3% 2,443 13 PHILIPPINES 1,681 -3.2% 1,627 24.2% 2,021 14 SWITZERLAND 1,180 48.8% 1,756 1.0% 1,773 15 EGYPT 1,486 23.4% 1,833 -17.6% 1,510 16 MAURITIUS 1,513 -29.9% 1,061 13.0% 1,200 OUTERWEAR 2013 105 5. DENMARK 17 KOREA 1,001 -22.0% 780 48.8% 1,162 18 MADAGASCAR 770 22.9% 946 22.3% 1,157 19 CAMBODIA 1,883 116.8% 4,084 -72.0% 1,143 20 TAIWAN 855 -3.9% 822 24.4% 1,022 EU27_EXTRA 1,524,184 13.5% 1,729,807 10.5% 1,911,915 EU27_INTRA 792,388 6.5% 843,931 5.3% 888,666 Total 2,316,572 11.10% 2,573,738 8.81% 2,800,581 Source: Eurostat 2012 The three main EU suppliers Germany (€ 0.18 Billion), Sweden (€ 0.15 Billion) and Italy (€ 0.14 Billion) represent 54% of the Intra EU imports value for Denmark. Table 55: Largest intra EU supplying countries of outerwear, 2009-2011 Position Country 2009 (1’000 €) Change from 2009 2010 (1’000 €) Change from 2010 2011 (1’000 €) 1 GERMANY 141,541 19.5% 169,211 7.5% 181,834 2 SWEDEN 132,047 13.4% 149,762 2.4% 153,344 3 ITALY 140,893 -2.4% 137,502 7.1% 147,284 4 NETHERLANDS 73,460 12.5% 82,622 -11.3% 73,315 5 UNITED KINGDOM 51,906 10.3% 57,261 4.6% 59,884 6 BELGIUM 31,589 16.6% 36,818 17.8% 43,364 7 FRANCE 30,721 25.4% 38,521 9.4% 42,161 8 PORTUGAL 38,660 -11.8% 34,100 22.9% 41,897 9 POLAND 49,202 -28.4% 35,237 -4.6% 33,607 10 LITHUANIA 23,356 0.8% 23,550 1.9% 23,989 EU27_INTRA 792,388 6.5% 843,931 5.3% 888,666 EU27_EXTRA 1,524,184 13.5% 1,729,807 10.5% 1,911,915 Total 2,316,572 11.1% 2,573,738 8.8% 2,800,581 Source: Eurostat 2012 OUTERWEAR 2013 106 5. DENMARK 5.4 TRADE STRUCTURE 5.4.1 Developments in the retail trade Danish fashion industry is known worldwide for their stylish and modern clothing design. Around the world you can find Danish fashion brands in franchise shops, company stores and other fashion retail shops. Clothes, clothing, fashion accessories, shoes, bags, underwear and jewellery designed in Denmark is sold all around the world. The fierce competition on the Danish market, partly due to more imports from abroad, has led to structural reforms at the retail level. The expansion of clothing multiples resulted in a decrease in the number of independent specialized shops. In 2011, total clothing retail trade showed rising turnover with an average annual change of 2%. Each year, independent retailers are steadily losing market shares to other more dynamic retail channels; this trend has even accelerated in the last few years. 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. The H&M is the nationwide leading standard with almost perfect logistics and very short lead-times for new ranges/ designs. It can be expected that the Danish 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. 5.4.2 Leading retailers Some of the most popular and best known Danish clothing brands are Cottenfield, InWear, Jackpot, Matinique, Part Two, Vero Moda, ONLY, Jack & Jones and Selected. These successful brands are either produced by IC Companys or Bestseller. When visiting shopping centres and malls in Europe and North America you will often find Danish fashion and clothing companies having a retail shop there. Brands like Cottenfield, InWear, Jackpot, Matinique, Vero Moda and Jack & Jones have many company stores and franchising shops in Denmark and other European and Northern American countries. Table 56: Major specialised clothing chains in Denmark, 2011 Clothing retail chain Websites Number of outlets http://www.hm.com 94 http://www.dsg.dk 554 Bestseller http://www.bestseller.com 300 BTX Group A/S http://www.btx-group.com ~500 (5000) Dress Partner a.m.b.a. http://www.dintojmand.dk 79 http://www.polarisequity.dk * http://www.mr.dk * http://www.kaufmann.dk 19 IC Companys A/S http://www.iccompanys.com (500) A/S Deres Design http://www.deres.dk * H & M Hennes & Mauritz AB Dansk Supermarked A/S Polaris Management A/S Mr ApS Axel Kaufmann ApS Source: Mintel report 2011, Note: () Number of stores worldwide *Data not available OUTERWEAR 2013 107 5. DENMARK 5.4.3 Distribution channels Table 57 gives an overview on the structure of the Danish clothing retail market from 2009 to 2011. The numbers indicate that independent retailers account for 32% of clothing retail and therefore represent nearly 1/3rd of the market where multiples in Denmark increased in the period 2009 to 2011 by 1%. Hyper- and supermarkets represent 15% and department stores decreased account for 12% of the clothing retail distribution in Denmark. The Denmark specialist clothing chains’ status increasing which accounts 58% share in the total distribution of the clothing in the year 2011, whereas non-specialist chains has decreased by 3% from the year 2009 to 2011 which accounts 42% share in the year 2011. Table 57: Clothing retail channels by market share [%] 2009 2011* 2009 2011* Specialists 55% 58% Independent retailers 30% 32% Clothing multiples 25% 26% Non-specialists 45% 42% Department/variety stores 13% 12% Home shopping companies 10% 9% Hyper- and supermarkets 16% 15% Other 6% 6% Total 100% 100% Source: DG SANCO Report on consumer satisfaction, Gherzi Assumptions, Note-*Estimated 5.5DENMARK FASHION TRADE FAIRS Denmark hosts about 16 trade fairs at 6 different cities. The majority of the fairs in Denmark are Clothing Trade Fairs and Exhibitions, Fashion Trade Shows and Industry Trade Shows. Out of the total 16 trade fairs there are only 3 Fashion Trade Shows and all these 3 are hosted in Copenhagen. Copenhagen Fashion Week is held twice a year in Copenhagen. Copenhagen Fashion Week consists of a market week with 3 big fairs: CIFF at Bella Centre, VISION at Lokomotivværkstedet and Gallery at Forum and a diverse range of fashion shows. It is also offers a programme opens to all, for consumers, citizens and tourists. The first fashion week was held in 1968 by Bella Centre and fashion fairs have been started since 1981. The fashion events are scheduled in February and August every year and are the Nordic region’s largest fashion event with more than 1,600 exhibitors and 2,800 branded collections. In addition to 40-45 runway shows on the official show schedule. OUTERWEAR 2013 108 5. DENMARK Table 58: Denmark fashion trade fairs 2013 Trade fair Date Location VISION COPENGAGEN, Interational Fashion Fair 08.08. - 10.08.2013 Copenhagen, Øksnehallen FORMLAND Scandinavia’s Largest Home Accessory and Gift Fair 15.08. - 18.08. 2013 Herning, Exhibition Centre CIFF - COPENHAGEN INTERNATIONALIO 30.01 - 02.02 2014 Copenhagen, Bella Center Source: EventsEye 5.6LIST OF MAJOR BUYERS IN DENMARK BILKA Dansk Supermaked Gruppen Agerøvej 7 - 8381 Mundelstrup (45)(0)89 44 44 44 Channel – Hypermarket Product range – Ladies and men’s wear Price segment – Mid level www.bilka.dk, jtn@bilka.dk COLLECTION WOMENSWEAR Fabriksparten 12a - 2600 Glostrup (45)(0)43 45 18 88 Channel - Retailers’ Buying Group Product range – Women’s wear Price segment – Mis level No. of outlets – www.collection.dk DANSK SUPERMARKED Bjødstrupvej 18 - Holme - 8270 Højbjerg (45)(0)89 30 30 30 Channel – Hypermarket www.dansksupermarked.dk DERES Vimmelskaftet 45 - 1161 København (45)(0)33 12 13 40 Channels - Fashion Chain Store www.deres.dk mp@deres.dk MAGASIN DU NORD/ILLUM Jernholmen 49-57 - 2650 Hvidovre (45)(0)31 49 70 22 Channel - Department Store www.magasin.dk KVICKLY Intergroup Roskildevej 45 - 2620 Albertslund (45)(0)43 86 43 86 www.fdb.dk OUTERWEAR 2013 109 Channel – Hypermarket 5. DENMARK TIPPY Saebygardsallé 9 - 4291 Ruds-Vedby Soroevej 26 - 4291 Ruds Vedby (45)(0)58 26 13 33 Channels - Fashion Chain Store www.tippy.dk, leif@tippy.dk VERO MODA / ONLY Bestseller Group Industrivej 28 - 7330 Brande Fredskovbej - 7330 Brande (45)(0)99 42 32 00 Channels - Fashion Chain Store www.bestseller.dk DRESS PARTNER/DIN TØJMAND Immerkaer 54 - 2650 Hvidovre (45)(0) 36 47 13 11 Buying office : Dress Partner Amba Channels - Fashion Chain Store Product range : Women - Men - Children www.dintojmand.dk FDB Roskildevej 65 - 2620 Albertslund (45)(0) 43 86 43 86 Channel – Hypermarket Product range : Women - Men – Children www.fdb.dk INTERSPORT Tarupvej 57 - 5210 Odense NV (45)(0) 63 16 6100 Channel : Retailers’ Buying Group Product range : Women - Men – Children www.intersport.dk MR/INDØPSFORENING Albuen 6-8 - 6000 Kolding (45)(0) 75 53 09 00 Buying office: Mister Indkøpsforeningen AF 1964 Channels - Fashion Chain Store Product range : Women - Men – Children www.mr-mister.dk SPORT DANMARK Farbiksparten 19-21 - 2600 Glostrup (45)(0) 43 28 72 72 à partir d’avril 2001 OUTERWEAR 2013 110 Group: Sport 2000 Channels - Fashion Chain Store Product range : Women - Men – Children 5. DENMARK TØJEKSPERTEN Himmelev Bygade 57-59 - 4000 Roskilde (45)(0)46 36 10 10 Channel : Retailers’ Buying Group Product range : Men www.tojeksperten.dk JACK & JONES / TDK Bestseller Group Industrivej 28 - 7330 Brande (45)(0)99 42 32 00 www.bestseller.dk OUTERWEAR 2013 111 Buying office: Bestseller Wholesale AS Product range : Women - Men – Children 6. SWITZERLAND 6.Switzerland 6.1 GENERAL ECONOMIC SITUATION Switzerland is a peaceful, prosperous, and modern market economy with low unemployment, a highly skilled labour force, and a per capita GDP among the highest in the world. Switzerland’s economy benefits from a highly developed service sector, led by financial services, and a manufacturing industry that specializes in high-technology, knowledge-based production. Its economic and political stability, transparent legal system, exceptional infrastructure, efficient capital markets, and low corporate tax rates also make Switzerland one of the world’s most competitive economies. The Swiss economy is fundamentally strong, but is facing a number of challenges. Headwinds from the euro area debt crisis and a strong currency have slowed down growth. Swiss unemployment is low at 3.4%, well below most other European countries. However the slowdown in export growth is expected to drive the unemployment rate higher. OUTLOOK After facing stagnation in 2012, the economy is expected to regain momentum in 2013.Accoding to an IMF forecast, GDP growth is expected to reach 1.7% and strengthen thereafter. Compared to other EU countries, The French consumers are highly price-conscious. The reasons for this can be found in an unemployment rate of around 10.3% and a relatively low economic growth rate. On the other hand, the French are said to be very fashion-conscious too. However, impulsive buying is comparatively rare because of price sensitivity. Table 59: Key indicators of the Swiss economy, 2010-2012 2010 2011 2012 3 1.9 0.8 Industrial production growth [%] 6.2 1.1 3.3 Average unemployment rate [%] 3.5 2.8 3.3 Average consumer price index [%] --- -0.2 -0.2 CHF in € (average) 0.72 0.81 0.82 CHF in US$ (average) 0.96 1.12 1.06 Real GDP growth [%] Exchange rates Source: IMF, Gherzi analysis OUTERWEAR 2013 112 6. SWITZERLAND 6.2 THE MARKET FOR OUTERWEAR 6.2.1 Market size Switzerland has a small but very competitive apparel market. In 2011, the total local clothing industry had a turnover (local production) of about CHF 1.85 billion (consumption- CHF 5.88 billion). Switzerland has very high labour and production costs, and therefore the industry has the tendency to concentrate on high-end and/or niche products. Switzerland’s apparel industry is experiencing a resizing process, based on the following key factors: ••Worldwide over capacities ••Growing competition from low wage 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 Clothing imports amounted to CHF 5.46 billion in 2011 (see table 63), -1.3% declined over the previous year. At the same time, clothing exports accounted for CHF 1.45 billion. Due to the fact that Switzerland is a relatively small country, the Swiss clothing industry depends strongly on exports. Local production accounts for CHF 1.85 billion. Thus, imports are three times stronger than local production. Table 60: Size of the Swiss clothing industry, 2010-2011 [CHF billion] 2010 2011 % change Imports 5.53 5.46 -1.3% Local Production 1.57 1.85 17.8% Exports 1.48 1.43 -3.4% -4.049 -4.043 -0.1% External trade balance Source: TVS, Gherzi analysis 6.2.2 Market characteristics 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 multichannelling (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, Zara and others (see ‘Leading Retailers’ and ‘Distribution Channels’). 6.2.3 Demographic characteristics The Swiss society is an ageing 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 40-49. In contrast, the number of ‘under twenties’ has increased at a slower pace and has actually declined since the early seventies. This ageing 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. The population pyramid shown in Figure 6 points out in greater detail the recent (year 2011) proportion of the Swiss male and female population divided into age groups (based on a total Swiss population of 8 million). OUTERWEAR 2013 113 6. SWITZERLAND Figure 6: Age structure of Swiss population by gender, 2012 Male Switzerland - 2012 Female 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 0-4 340 272 204 136 68 Population (in thousands) 0 0 Age Group 68 136 204 272 340 Population (in thousands) Source: US Census Bureau, International Data Base 6.2.4 Retail sales by categories The clothing sales increased by an average of 1.2% from 2000 to 2011. The total sales index grew in the same period by an average of 1.6%.; Figure 7 gives anestimated indication (based on previous years’ trend) on the total sales tendencies and clothing from 1970 to 2011. Figure 7: Sales volume index for total sales and clothing sales, 1970 – 2011 140 total 120 100 80 clothing 60 40 20 0 1970 1976 1982 1988 1994 2000 2004 2006 2008 2009 2010 2011 OUTERWEAR 2013 114 6. SWITZERLAND Source: Gherzi analysis based on BFS and Eurostat Figure 8 shows the development of production and import costs for textile and clothing from 2003 to 2011. The figure clearly shows that the local production cost has increased at a faster pace than the import prices did in the same period. Import prices only grew by an average 0.1% per year, while the local production cost grew by an average of 1.2% per year. These facts make the Swiss market attractive for foreign textile and clothing goods. Figure 8: Production and import costs for textile and clothing, 2003 – 2013 (Index 2010 = 100) 105 100 Import 95 Producer prices 90 85 80 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Source: Gherzi analysis based on BFS and Eurostat The sales volume of outerwear has decreased from CHF 1.31 billion in 2006 & CHF 1.33 billion in 2009 to CHF 1.06 billion in 2011 with -19.1% & -20.3% respectively. The sales volume of underwear has declined by -20.0% in the period 2009 to 2011. The total turnover decreased by -11.7% from 2006 to 2011. Below Table indicates the sales developments of the major product segments outerwear, underwear and accessories. Sales have dropped from 2009 to 2011 by -19.2%. Table 61: Size of the Swiss clothing market, 2006-2011 [CHF billion] 2006 2009 2010 2011 % change 06-11 % change 09-11 Outerwear 1.31 1.33 1.12 1.06 -19.1% -20.3% Underwear 0 0.2 0.17 0.16 - -20.0% Accessories 0.31 0.24 0.2 0.2 -35.5% -16.7% Total 1.62 1.77 1.48 1.43 -11.7% -19.2% Source: TVS 6.2.5 Consumer behaviour 6.2.5.1 Consumer preferences 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-for money- concept’ on the market which reflects the ‘economic sense’ of the Swiss consumer. OUTERWEAR 2013 115 6. SWITZERLAND 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. 6.2.5.2 Consumer expenditures The Swiss population has one of the highest per capita incomes in the world. Total expenditure per household grew by an average of 20% from 2007 to 2011, while during the same period expenditure for clothing and shoes grew by a yearly average of 24%. The following table shows the developments of the Swiss household expenditure from 2007 to 2011. Table 62: Swiss average household expenditures, 2008-2011 [CHF] 2007 2008 2009 2010 2011 CAGR 08-11 37,816 45,525 54,804 65,976 79,425 20.4% Clothing and shoes 1,512 1,879 2,336 2,904 3,610 24.3% % of total 4.0% 4.1% 4.3% 4.4% 4.5% n.a. Total Source: Gherzi analysis based on BFS(http://www.bfs.admin.ch/bfs/portal/en/index/themen/20/02/blank/key/einkommen0/niveau.html) 6.2.6 Price development of clothing For the last few years, the Swiss clothing market has permitted significant price increases but in the 2012 it has decreased. 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 2008 to 2011 at an average rate of 1.67% but considerably decreased in 2012 with an average rate of -5.89% (2011-2012). In fact, Prices for clothing and shoes have decreased since 2008 by an average rate of -0.2%. More details can be taken from the table below. OUTERWEAR 2013 116 6. SWITZERLAND Table 63: Swiss national consumer price index, 2008-2012 2008 2009 2010 2011 2012 CAGR% 2008-2012 Clothing and footwear 100 102.43 103.59 105.10 98.91 -0.27% Housing and energy 100 97.44 100.14 102.87 103.78 0.93% Food and non-alcoholic beverage 100 99.79 98.62 95.16 94.33 -1.45% Alcoholic beverages, tobacco 100 102.75 104.04 106.61 108.51 2.06% Total national consumer price index 100 99.50 100.20 100.50 99.80 -0.05% Source: BFS – Note: Index 2008 = 100 6.3 IMPORTS 6.3.1 Total imports Switzerland has an extremely liberal import regime for textiles (no import limitations, and some of the lowest import duties in the world). Clothing imports have remained constant from CHF 5.5 billion in 2010 to CHF 5.46 billion in 2011, a sign of stagnation. More details can be taken from the table below, which shows the clothing import developments into Switzerland from 2010 to 2011. Table 64: Swiss clothing imports, 2010 - 2011 [CHF million] % of total textile and clothing 2010 2010 % of total textile and clothing 2011 2011 Outerwear 55.80% 4,286.42 55.60% 4,224.02 Underwear 9.90% 760.49 10.10% 767.31 Accessories 6.30% 483.95 6.30% 478.62 72.00% 5,530.86 72.00% 5,469.95 100.00% 7,681.75 100.00% 7,597.15 Total Clothing Total Textile and Clothing Source: TVS & Gherzi calculations 6.3.2 Outward Processing Trade (OPT) 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 OUTERWEAR 2013 117 6. SWITZERLAND non-OPT clothing imports. A more detailed analysis is therefore not possible. 6.3.3 Largest suppliers Table 57 summarises the major countries supplying outerwear to Switzerland. The neighbouring countries Germany and Italy remain the most important clothing suppliers for Switzerland. Almost 50% of the clothing imported originates from these two EU countries. Professional and advanced marketing by the foreign brands, quick and easy communication and overnight truck deliveries are important reasons for this dominant position. Most of the well-known European brands are at least partially produced or finished in low labour cost countries, whether in Eastern Europe, North Africa or elsewhere. The EU remains the by far most important trading partner in clothing for Switzerland. EFTA countries no longer have any importance as suppliers. The supply from developing countries increases and has gained competitiveness regarding design, fashion and qualitative aspects. Table 65: Largest supplying countries of clothing, 2000-2011 [CHF million] Country 2000 2010 2011 % change 2010-2011 CAGR % 2000-2011 1 Germany 1,663 1,871 1,804 -3.58% 0.74% 2 Italy 968 957 902 -5.75% -0.64% 3 China 628 640 678 5.94% 0.70% 4 France 486 457 430 -5.91% -1.11% 5 Bangladesh 62 141 173 22.70% 9.78% 6 India 152 140 143 2.14% -0.55% 7 Netherlands 99 140 129 -7.86% 2.44% 8 Turkey 113 118 126 6.78% 0.99% 9 Austria 148 134 122 -8.96% -1.74% Spain 76 123 96 -21.95% 2.15% Total 10 countries 4395 4721 4603 -2.50% 0.42% Total Worldwide 5396 5532 5470 -1.12% 0.12% Position 10 Source: TVS 6.4 TRADE STRUCTURE 6.4.1 Developments in the retail trade 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 to its lowest level in the year 2000 and recovered from then on. This recovery is also due to the cessation of the import/export quotas on January 1st, 2005 which had specially proOUTERWEAR 2013 118 6. SWITZERLAND tected the European markets from cheap imports from China for years. 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. People of 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 Weijl 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 self-owned retail outlets. This sales concept means a strict supply chain management and is increasingly used also by department stores and chains like Globus building up their own ‘retail brands’. The sales volume of the Swiss clothing industry in 2011 reached about CHF 3 billion with a share of 67% for the outerwear clothing. Local clothing production decreased by 17.8% from 2010 to 2011. Exports also decreased from CHF 1.48 billion in 2010 to CHF 1.43 billion in 2011 (-3.4%). Figure 9: Sales volume index for total sales and clothing sales, 1970 - 2011 140 120 total 100 80 clothing 60 40 20 0 1970 1976 1982 1988 1994 2000 2004 2006 2008 2009 2010 2011 Source: Gherzi analysis based on previous years’ trend 6.4.2 Leading retailers The following clothing retailers are the important stores and shops in the Swiss market. Price competition is fierce and deemed dangerous by experts as customers are getting used to special offers. The biggest market players are H&M, Vögele, C&A Switzerland, Zara, 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 80 stores throughout the country. As per the Retail Index, It had a turnover of € 12.1 million in Europe in 2011. H&M does not produce itself but has a network of approximately 800 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. CHARLES VÖGELE MODE AG is a Swiss-based fashion chain operating in Switzerland, Germany, Austria, Belgium, The Netherlands, Czech Republic, Poland, Hungary and Slovenia. In 2011, Vögele had 7,300 employees and 801 sales OUTERWEAR 2013 119 6. SWITZERLAND branches. Group turnover was CHF 1,207 million € in 2011 which has decreased by -29% from 2009. Vögele’s primary market strategy traditionally has been low price and still is, though effort has been made to ensure high quality as well. Two new corporate sectors have been created; “sourcing” and “new channel development”. This new sectors will strengthen Vögele‘s market position. 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. The range consists of women‘s wear (59%), men‘s wear (31%) and children‘s wear (10%). The GLOBUS GROUP with its flagship store in Zurich employs 3,100 employees in 14 stores and achieved a gross sales volume of about CHF 803 million in the year 2012 on a net selling space of 85,106 sq. m. With a square metre sales volume of over CHF 9,435, it is one of the most productive department stores of the world. The GLOBUS GROUP belongs to the MIGROS AG. The Migros Group, which is still operated as a cooperative, is the Swiss market leader in retailing but not in the clothing market. Migros has over 15% of Globus‘ shares. 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’). In 2011 the group‘s total turnover was CHF 20.89 billion (-0.7%). Migros has its own sourcing network for clothing all over the world, but also buys from European based producers and wholesalers. As of 2011 C&A has 81 stores in Switzerland. 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 approximately 450 employees in total owns several clothing chains. PKZ stores concentrates on men‘s wear with quality clothing of different labels. Burger is a men‘s wear shop. Feldpausch focuses on women‘s wear; Bluedog is a young fashion casual wear chain. 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 CHF 25 billion in 2011 which corresponds to a 23% of the Swiss market share. Over 75,000 employees work for the Coop Group at 1,800 sales points. MANOR is the largest department store chain in Switzerland. It belongs in large part to the Lausanne based family Maus. Other divisions of the Manor Group are ‚Fly‘ (furniture and home accessories), ‚Athleticum‘ (sports) and ‚Jumbo‘ (Do-it-yourself articles). The Manor Group is one of the three largest Swiss retailers. The business employs about 11,300 people altogether. About 2‘000 persons are working in the textile division, which represents about one third of the whole Manor business. Generated total sales of CHF 3.19 Billion in 2011. 6.4.3 Distribution channels 6.4.3.1 Retailers The distribution channels are grouped according to their basic structure into different kinds of retail businesses. More details about the development of the market share of the retail outlets can be taken from following table. The data indicates that the textile specialist stores play a dominant role among the clothing distributors in Switzerland. These specialists had a constant market share of 55% over the last years. They include chain stores and the independ- OUTERWEAR 2013 120 6. SWITZERLAND ent retailers / boutiques and other specialised clothing retailers (including fur and leather wear outlets). 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, Zebra, Schaad Mode, Levi‘s Store, Mango, Zara ••Clothing retailers with a ‘brand concept’: PKZ/BlueDog/Burger/Feldpausch, Schild, Beldona, Fein-Kaller, Bongenie-Grieder, Herren Globus, Spengler ••Department stores: Globus, Manor, Coop, Jelmoli, Loeb, Migros and other department stores ••Home shopping companies: Cornelia, Heine-Versand, Goldener Schnitt, Charles Veillon, Ackermann, Spengler, Jelmoli, Vögele, Damart Versand, Vedia, Bader. Walz and others ••Hyper- and Supermarkets: Migros, Coop, Denner, Aldi Schweiz, Lidl Schweiz, Spar, Volg ••Other Distributors (sport shops, sport specialist stores, various distributors) hold a market share of 9%. Low-price shops are not very popular in Switzerland as the consumers look for more than just low prices. For midprice apparel, department stores and mail order companies are still appropriate and well accepted distribution channels. Table 66: Clothing retail channels by market share [%] 2001 2004 2009 2011 Specialists 55 55 55 55 Non-specialists 45 45 45 45 Department/variety stores 15 13 12 11 Home shopping companies 11 11 11 11 Hyper- and supermarkets 10 10 13 14 Other 9 11 9 9 Total 100 100 100 100 Source: TVS, Gherzi assumptions 6.4.3.1.1 Specialists (Including textile specialised retailers and 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%. 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, and PKZ, there are many foreign retailers present in the Swiss clothing market. Several foreign chains that are active in Switzerland must be mentioned, such as the Swedish HENNES & MAURITZ GROUP, the Spanish retailer ZARA, the German ESPRIT, the Italian fashion company MAX MARA (aiming at international female shoppers) and the Danish VERO MODA as well as the Spanish MANGO. MANGO is a Spanish franchise company owning 36 shops in Switzerland, 2,415 stores all over the world in 107 counOUTERWEAR 2013 121 6. SWITZERLAND tries. 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 86 countries with 1,751 stores. All of them have been designed to create a special atmosphere that will allow the client to feel the pleasure of buying fashion. The designers create new fashion that hits the market twice a week. The turnover was € 13.7 billion (2011) and € 15.9 billion (2012). Zara‘s share within the Inditex Group is 65.6%. In Switzerland, Zara has had 10 stores since 2002. Another new clothing retailer is VERO MODA with 41 shops. Vero Moda Switzerland belongs to ‘Bestseller Wholesale’. Bestseller is a family-owned clothing company founded in Denmark in 1975. Today Bestseller comprises 10 brands including Vero Moda. The Swiss chain TALLY WEIJL is another international ‘textile success story’. The market target is ‘the woman who likes to be sexy’. TALLY WEIJL operates 74 shops in Switzerland. With a turnover of 628 mn CHF in 2011 and more than 760 shops in 31 countries, TALLY WEIJL has become an important player. Market share: 55% Trend: Stable at 55% 6.4.3.1.2 Department/variety stores Department stores play the second most important role among the distribution channels, with a market share of 11% in 2011. Their market share has declined since 2001 (15%). 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 five outlets. Loeb owns several clothing and non-clothing companies and has a total turnover of CHF 99 million (2011). The five Loeb department stores only represent one part of the Loeb Holding. 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 specialities retail business unit. Due to use of synergies at retail level, high profitability has been achieved. Market share: 11% Trend: Declining 6.4.3.1.3 Home shopping companies The mail-order business is the fourth most important retail channel for clothing in Switzerland. The market share of mail-order houses in Switzerland remained stable at 11% over the last years. Market share: 11% Trend: Stable 6.4.3.1.4 Hyper- and supermarkets Hyper- and supermarkets are the second most important retail channel for clothing after the specialists. The market OUTERWEAR 2013 122 6. SWITZERLAND share in 2011 was 14%. MIGROS and COOP with their stores are the largest retailers in Switzerland, with activities in super- and hypermarkets. Denner is the leading Swiss food discounter. Denner has a consistent discount policy: Lowest prices combined with highest quality with a limited number of articles. Aldi steped in the Swiss market in 2005 and achieved in 2011 an estimated turnover of 1000 mn CHF with 100 markets. Aldi is known mainly as food retailer but offers on a weeky changing base a wide range of garments at a very low price. Market share: 14% Trend: Increasing 6.4.3.1.5 Others This category primarily includes sport shops, sport specialist stores, street markets and ex factory sales (directly from the fashion manufacturer through ‘factory outlet centres’). Another form of distribution is ‘consumer fairs’. 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. Market share: 9% Trend: Stable 6.4.3.2 Sales intermediaries 6.4.3.2.1 Clothing manufacturers The clothing manufacturers in Switzerland face a difficult market situation. The total turnover of the Swiss clothing industry amounted to CHF 1.85 billion in 2011. 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. 6.4.3.2.2 Central buying associations One major Swiss central buying association is the ‘Mode Schweiz’ (formerly ‘ez Fashion Center’). It has more than 60 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 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. 6.4.3.2.3 Sales agents 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. 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. 6.4.3.2.4 Importers / wholesalers OUTERWEAR 2013 123 6. 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. The situation is unchanged, that a considerable share of clothing imports into Switzerland is handled by German importers, as they buy in overseas markets anyway to a very large extent and can offer the service to neighbouring Swiss retailers as well. 6.5 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), it 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’ (TMC) was set up as a wholesale centre for textiles and clothing in August 1978. Swiss buyers, whether they are in charge of department stores, specialized retailers, importers, Home shopping companies tend to visit trade fairs mostly for information purposes, but also to find new contacts. Table 67: Swiss fashion trade fairs 2013, 2014 Trade fair BABYPLANET Future & Young Parents Fair Date Location 11.10 - 13.10 2013 Lausanne MARINATAL BASEL Wedding Fair Jan., 2014 Basle MARINATAL LAUSANNE Switzerland’s largest Wedding Fair Jan., 2014 Lausanne MARINATAL BERN Wedding Fair Feb., 2014 Bern OUTERWEAR 2013 124 6. SWITZERLAND Source: EventsEye 6.6LIST OF MAJOR BUYERS IN SWITZERLAND Clothing multiples Bernie‘s AG Zentralverwaltung Binzstrasse 44, CH-8045 Zürich Tel.: (0)58 426 10 50, Fax.: (0)58 426 10 10 welcome@bernies.ch Blue Dog (company: PKZ Feldpausch) Bahnhofstrasse 46 CH - 8010 Zürich Tel.: +41 44 736 33 33 Fax: +41 44 736 33 00 www.bluedog.ch 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 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: high fashion & casual Price segment: high price level Number of outlets: 11 Product range: Jeans, sports- and casual wear Price segment: mid and high price level Number of outlets: 40 Note: brand and fashion oriented – exclusive retailer Product range: all kinds of clothing Price segment: mid to high price level Number of outlets: 19 Product range: all kind of clothing Price segment: low price level Number of outlets: 157 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 Website is not available Product range: menswear and womenswear Price segment: high price level Number of outlets: 6 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 Number of outlets: 23 OUTERWEAR 2013 125 6. SWITZERLAND 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 Number of outlets: 12 Modehaus MODEVA AG Muttenzerstr. 109 CH - 4133 Pratteln Tel.: +41 61 821 91 91 Fax: +41 61 821 92 20 www.modeva.ch Product range: womenswear Price segment: high price level Number of outlets: 32 Pasito-Fricker AG Pfadackerstr. 7 CH - 8957 Spreitenbach Tel.: +41 56 418 17 77 www.pasito.ch PKZ Burger-Kehl & Co. Bahnhofstrasse 46 CH - 8010 Zürich Tel.: +41 44 736 33 33 Fax: +41 44 736 33 00 www.pkz.ch Product range: womenswear, menswear, shoes Price segment: mid and high price level Number of outlets: 18 Product range: all kind of clothing incl. jeans wear Price segment: mid and high price level Number of outlets: 35 Schaad Mode Tannewäg 1 CH – 8197 Rafz www.schaadmode.ch Product range: Women’s outerwear for best age Price segment: mid price level Number of outlets: 24 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 Price segment: mid price level Number of outlets: 41 TALLY WEIJL Trading AG Service and Support Center Viaduktstrasse 42 CH-4051 Basel Tel: +41 (0)61 568 60 00 Fax: +41 (0)61 568 62 00 contact@tally-weijl.com www.tally-weijl.com Product range: womenswear Price segment: high price level Number of outlets: 94 (Nore than 760 stores worldwide) OUTERWEAR 2013 126 6. SWITZERLAND Wartmann AG Marktgasse 45 / Postfach CH - 3001 Bern Tel.: +41 31 320 18 18 Fax: +41 31 312 16 55 www.mode-wartmann.ch Website is not available Product range: womenswear Price segment: mid price level 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 Jelmoli AG Bahnhofstrasse mailbox three thousand and twenty 8 021 Zurich Tel +41 44 220 44 11 Fax +41 44 220 44 00 www.jelmoli.ch Loeb AG Spitalgasse 47-51 3001 Bern info (at) loeb.ch Tel.: 031 320 71 11 www.loeb.ch Manor AG Rebgasse 34 CH - 4058 Basel Tel.: +41 61 686 11 11 Fax: +41 61 681 11 92 www.manor.ch Schaufelberger AG Bälliz 26 CH - 3601 Thun Tel.: +41 33 225 37 37 Fax: +41 33 225 37 38 www.schaufelberger-thun.ch OUTERWEAR 2013 127 Product range: all kind of clothing Price segment: low and mid price level Number of stores: 15 Product range: all kind of clothing and textile Price segment: mid and high price level Number of outlets: 1 large outlet in Zürich - also includes mail order Catalogue Product range: all kind of products Price segment: mid price level Number of outlets: 10 Product range: all kind of clothing and textile Price segment: mid price level Number of outlets: 64 stores Product range: men’s and womenswear, textiles Price segment: mid level 6. SWITZERLAND Mail order companies Ackermann Versandhaus AG Fürstenlandstrasse 35 CH - 9001 St. Gallen Tel.: +41 848 85 85 11 Fax: +41 848 85 85 12 kundendienst@ackermann.ch www.ackermann.ch BON´A PARTE MODE AG Fürstenlandstrasse 35 CH - 9001 St. Gallen Tel.: +41 848 44 08 81 Fax: +41 848 44 08 85 www.bonaparte.ch Happy Size-Company Versand-handels AG Postfach CH - 9028 Kundenservice Tel.: +41 848 55 66 80 Fax: +41 848 55 66 84 www.happy-size.ch Heine Stephanie Lerch Postfach 8088 Zürich Tel.: +41 0848 80 00 60 www.heine.ch service@heine.ch Jelmoli Versand AG Postfach CH - 8088 Zürich Tel.: +41 848 840 300 Fax: +41 848 840 305 www.jelmoli.ch 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 OUTERWEAR 2013 128 Product range: professional wear, ladies’, men’s, childrenswear Price segment: mid price level Note: no outlets, only mail order Product range: Men’s and womenswear, boys’ and girls’ Product Range: men’s and womenswear Companies: Happy Size and Men Product range: ladies’, men’s, childrenswear Price segment: mid and high Product range: all kinds of clothing and textile Price segment: mid and high Product range: ladies’, men’s, childrenswear Price segment: mid and high 6. SWITZERLAND 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 West 4042 CH - 4614 Hägendorf Tel.: +41 62 216 43 43 Fax: +41 62 216 43 45 www.rotex.ch Spengler Versand AG Fürstenlandstrasse 35 CH - 9001 St. Gallen Tel.: +41 71 274 61 61 Fax: +41 71 274 61 62 www.spengler.ch Tchibo (Schweiz) AG Industriestrasse 19 CH- 8304 Wallisellen Tel: +41 (0)43/233 45 00 Fax: +41 (0)43/233 45 90 kundenservice@tchibo.ch www.tchibo.ch Product range: Menswear Product range: ladies’, menswear Product range: professional wear, leisure wear Product range: all kind of clothing and textile Price segment: mid price level Product range: ladies’, men’s, childrenswear Forecast for 2010: 100 shop-in-shops with COOP Veillon SA Route de Buyère 2 CH - 1017 Lausanne Tel.: +41 21 706 92 17 Fax: +41 21 706 98 14 www.veillon.ch Product range: ladies’, men’s, childrenswear 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 Price segment: low price level OUTERWEAR 2013 129 6. SWITZERLAND Wullehus-Mode Versandhaus AG Emmentalstr. 4 CH - 3510 Konolfingen Tel.: +41 31 791 01 47 Fax: +41 31 791 10 19 www.wullehus.ch Product range: all kind of clothing for age group 40+ as target group Price segment: mid price level Number of outlets: 4 shops + mail Order Grocery super- and hypermarkets ALDI SUISSE AG Zentraleinkauf Verwaltungsgebäude Z Postfach 150 CH-8423 Embrach-Embraport www.aldi-suisse.ch Product range: high fashion & casual Price segment: low price level Number of outlets: 100 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 1’700 shops Denner AG Zentrale Grubenstrasse 10 CH - 8045 Zürich Tel.: +41 44 455 11 11 www.denner.ch Number of outlets in CH: 430 stores and 300 individual retail traders Jumbo Markt AG Industriestrasse 33 CH - 8305 Dietlikon Tel.: +41 44 805 54 54 Fax: +41 44 805 54 50 www.jumbo.ch Product range: all kinds of clothing Price segment: very low price level Number of outlets: 39 Lidl Schweiz DL GmbH, Neckarsulm Zweigniederlassung Weinfelden Dunantstrasse 14 CH - 8570 Weinfelden www.lidl.ch OUTERWEAR 2013 130 Product range: all kinds of clothing Price segment: low price range with own brands Number of fashion outlets: 30 Forecast until end of 2010: another 30 6. SWITZERLAND Migros-Genossenschaft-Bund Limmatstrasse 152 CH - 8005 Zürich Tel.: +41 44 277 21 11 Fax: +41 44 277 25 25 www.migros.ch Product range: all kinds of clothing 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 Hauptsitz Felsenstrasse 40 CH-9001 St.Gallen Schweiz Telefon +41 71 22 777 22 Fax +41 71 22 777 00 www.akris.ch akris@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 info@alba-creation.ch www.alba-gruppe.ch (Professional clothes) 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) 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 info@michelangeloz.ch (mid-priced menswear and womenswear) Blumer F. & Cie. AG Windeggstrasse 16 CH-8867 Niederurnen GL Tel.: +41 55 644 11 17 Fax: +41 55 644 39 49 info@f-blumer.ch www.f-blumer.ch (men’s, women’s, childrenswear) OUTERWEAR 2013 131 a ma chère AG Dufourstrasse 167 8008 Zürich Tel.: +41 43 456 30 01 Fax. +41 43 456 30 09 info@a-ma-chere.ch www.a-ma-chere.ch 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 info@becaferretti.ch www.becaferretti.ch (menswear, professional clothes) Calida AG Bodywear Industrie Münigen, CH - 6210 Sursee Tel.: +41 41 925 45 25 Fax: +41 41 925 42 84 www.calida.com info@calida.com (men’s, women’s and children’s under- and nightwear) 6. SWITZERLAND Brülisauer SA Via motta 45 CH - 6855 Stabio Tel.: +41 91 640 64 40 Fax: +41 91 640 64 44 www.bruli.com info@bruli.com(menswear) Braunschweig P. & R. AG Badener Strasse 120 CH - 8026 Zürich Tel.: +41 44 241 97 30 Fax: +41 44 242 94 28 (mid- and high-priced coats and jackets for women) Consitex SA (belongs to Ermenegildo ZEGNA-Groupe) Via Laveggio 16, Casella postale 155 CH- 6850 Mendrisio Tel.: +41 091 640 76 00 Fax: +41 091 640 76 19 direzione_consitex@zegnaermenegildo.it www.zegna.com(high priced menswear) Camiro sagl Strada Cantonale CH - 6863 Besazio Tel.: +49 91 646 61 18 Fax: +49 91 646 69 95 camiro@starsofti.com(menswear) Conceprio SA Corzoneso Piano CH - 6715 Dongio Tel.: +41 91 871 12 43 Fax: +41 91 871 25 31 Conceprio.sa@bluewin.ch (men’s and womenswear) Ganzoni & Cie AG Gröblistrasse 8 CH - 9014 St. Gallen Tel.: +41 71 279 33 66 Fax: +41 71 274 29 89 www.sigvaris.com info@sigvaris.com (men’s, women’s and childrenswear) Dresdensia SA Via Fola 13 CH - 6963 Pregassona Tel.: +41 91 971 60 63 Fax: +41 91 971 11 52 (men’s and childrenswear) Feldinger Gabriel AG Lettenweg 40 CH - 4123 Allschwil Tel.: +41 61 481 05 05 Fax: +41 61 481 05 39 (mid-priced items womenswear) Fabric Frontline Zurich AG Ankerstrasse 118 CH - 8026 Zürich Tel.: +41 44 241 64 55 Fax: +41 44 242 20 02 www.fabricfrontline.ch info@fabricfrontline.ch (men’s and womenswear) Hagmann Hosenmode AG Industriestrasse 9 CH - 4657 Dulliken Tel.: +41 62 285 55 55 Fax: +41 62 285 55 69 www.hagman.ch info@hagman.ch (menswear, especially trousers) Filtex AG Teufenerstrasse 1 CH - 9001 St. Gallen Tel.: +41 71 221 13 13 Fax: +41 71 221 13 14 www.filtex.ch info@filtex.ch (women’s and childrenswear) OUTERWEAR 2013 132 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) 6. SWITZERLAND Gessner AG Florhofstrasse 13 CH - 8820 Wädenswil Tel.: +41 44 789 86 00 Fax: +41 44 789 86 01 www.gessner.ch info@gessner.ch (womenswear) Hofmann + Co AG Krawattenfabrik In the iron age 51 8033 Zurich Tel.: +41 44 362 37 54 Fax: +41 44 362 37 19 www.hofmannties.ch (men’s accessories and ties) ISA Sallmann AG Weinfelderstrasse 15 CH - 8580 Amriswil Tel.: +41 71 414 24 44 Fax: +41 71 414 24 55 www.isabodywear.ch (men’s, women’s and childrenswear) Mammut Sports Group AG Headoffice Switzerland Pf, Birren 5 CH-5703 Seon Tel. +41 (0) 62 769 81 81 Fax. +41 (0) 62 769 83 11 www.mammutsportsgroup.com www.mammut.ch www.toko.ch (sportswear, outdoor jackets) Madie’s Fashion S.A. Via Gaggiolo 5 CH - 6855 Stabio Tel.: +41 91 647 11 53 Fax: +41 91 647 32 53 (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) OUTERWEAR 2013 133 HANRO AG Benzburweg 18 CH - 4410 Liestal 18 Tel.: +41 61 926 88 22 Fax: +41 61 926 88 27 www.hanro.ch info@hanro.ch (men’s and women’s under- and nightwear) Hugo Boss Industries Via Passeggiata 7 CH - 6883 Novazzano Tel.: +41 91 696 17 17 Fax: +41 91 696 17 78 www.hugoboss.com info@hugoboss.com (menswear) Kauf AG – The Swiss Shirt Maker Rosenbüelstrasse 50 CH - 9642 Ebnat-Kappel Tel.: +41 71 992 60 60 Fax: +41 71 992 60 65 www.kauf.ch info@kauf.ch (shirts for department stores and mail-order comp.) leywa GmbH Fabrikstrasse CH - 8756 Mitlödi Tel.: +41 55 644 46 46 Fax: +41 55 644 46 47 www.leywa.ch (men’s, women’s and childrenswear) Metzler Switzerland & Co. AG Hauptstrasse 33 CH - 9436 Balgach Tel.: +41 71 722 21 43 Fax: +41 71 722 72 29 www.metzler-hemden.ch (shirts, T-shirts & sweatshirts for indep.) 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) 6. SWITZERLAND 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) 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) 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) 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 info@zewiundbebe-jou.ch (mid- / high-priced coats and jackets for children) 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 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 info@intersport.ch (jeans and active sportswear in mid price level) Importers / wholesalers 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) OUTERWEAR 2013 134 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) Pandinavia Import Export Spitalackerstrasse 63 CH - 3000 Bern 25 Tel.: +41 31 331 40 32 Fax: +41 31 333 06 93 www.pandinavia.ch info@pandinavia.ch (Importer/Distributor of men’s apparel) 7. UNITED KINGDOM 7.United Kingdom 7.1 GENERAL ECONOMIC SITUATION The UK, the leading trading power and financial centre, is the third largest economy in Europe after Germany and France. Leading up to the financial crisis, economic growth in the UK was brisk, led by consumption. The households reduced their savings and borrowed more to sustain consumption growth. The UK’s economic recovery has been sluggish. Economic activity is projected to gain some momentum but the pace of expansion in the UK is expected to be weak. Growth returned to 0.7% in 2011 before declining in the first quarter of 2012.Weak growth has kept unemployment high at 8.2%, with youth unemployment (21.9%), particularly worrisome. Private consumption has declined sharply due to a sharp increase in household savings. At the same time, consumer confidence fell to low levels due to high commodity prices, concerns about job prospects, and heightened turmoil in the euro zone OUTLOOK Household real disposable income growth is expected to improve. According to an IMF forecast the real GDP growth in 2013 is predicted to be 1.4% and projected to grow at 2.2% to 2.7% in the medium term (2014-17). 7.2 THE MARKET FOR OUTERWEAR 7.2.1 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 increased, the export market also increased in 2011, the local production stagnated. However, it seems very likely that the local production and employment will fall in the coming years and imports will continue to rise. The British clothing market has a volume of € 55 billion in 2011. Compared to 2009 the market increased by 8.3%. Table 68: Consumption of clothing in the United Kingdom, 2009 – 2011 [€ billion] 2009 2010 2011 CAGR 09-11 Knitted outerwear 19.44 21.37 22.79 8.3% Woven outerwear 21.92 24.10 25.70 8.3% Total outerwear 41.35 45.47 48.49 8.3% Clothing others 5.64 6.20 6.61 8.3% 46.99 51.67 55.11 8.3% Total clothing Source: Gherzi assumptions based on Eurostat OUTERWEAR 2013 135 7. UNITED KINGDOM 7.2.2 Market characteristics 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’. However, some consumers are also willing to buy higher priced and exclusive clothing. 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 cannot 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. The clothing retail industry has been and is undergoing significant changes resulting from processes of globalisation, changes in consumer demand as well as changing corporate activities in terms of strategic marketing decisions. The UK clothing retail industry has experienced significant growth which has focused attention on studies in the field with this sector being considered as the one of the most competitive markets in Europe. This is primarily as a result of the concentrated power of larger retailers such as Marks & Spencer. 7.2.3 Demographic characteristics According to the 2011 census, the total population of the United Kingdom is around 63,182,000. It is the third-largest in the European Union (behind Germany and France) and the 22nd-largest in the world. Its overall population density is one of the highest in the world at 674 people per square mile, due to the particularly high population density in England (currently over 1’000 people per square mile). Almost one-third of the population lives in England‘s southeast which is predominantly urban and suburban, with about 8 million in the capital city of London, the population density of which is just over 13,400 per square mile. The United Kingdom‘s extremely high literacy rate (99%) is attributable to universal public education introduced for the primary level in 1870 (Scotland 1872, free 1890) and secondary level in 1900. Parents are obliged to have their children educated from the ages of 5 to 16 (with legislation passed to raise this to 18), and can continue education free of charge in the form of A-Levels, vocational training or apprenticeship to age 18. About 40% of British students go on to post-secondary education (18+). The Church and the Church of Scotland function as the national churches in their respective countries, but all the major religions found in the world are represented in the United Kingdom. OUTERWEAR 2013 136 7. UNITED KINGDOM Figure 10: Age structure of British population by gender, 2012 Male France - 2012 Female 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 3 2.4 1.8 1.2 0.6 0 Population (in millions) 0 0.6 1.2 Age Group 1.8 2.4 3 Population (in millions) Source: US Census Bureau, International Data Base 7.2.4 Retail sales by product category The British market for outerwear shows that the turnover for women’s wear is almost double level compared to men’s wear. As indicated in the table below the retail sales of outerwear clothing in the UK amounted to a total of € 55 billion in 2011 with a CAGR of 8.3% from 2009 to 2011. The total clothing retail sales have risen with a CAGR of 8.3% from € 47 billion in 2009 to € 55 billion in 2011. Table 69: Turnover of outerwear clothing by gender, 2009 and 2011 2009 2010 2011 CAGR 09-11 Women’s outerwear 22.04 24.23 25.84 8.3% Men’s outerwear 12.85 14.12 15.06 8.3% 6.47 7.12 7.59 8.3% 41.35 45.47 48.49 8.3% 5.64 6.20 6.61 8.3% 46.99 51.67 55.11 8.3% Children’s outerwear Total outerwear Total others Total clothing Source: Gherzi assumptions based on Eurostat OUTERWEAR 2013 137 7. UNITED KINGDOM 7.2.5 Consumer behaviour 7.2.5.1 Consumer preferences British women are fashion-conscious and stylish. This leads to an interest in and desire for new and innovative styles of clothing. The influence of media, especially magazines, TV and Internet, make consumers more conscious of the latest fashion trends and prices, so they are better informed to make a choice than before. Recent years have seen a trend towards purchasing casual wear for the office and leisurewear for home, and away from buying formal wear. The children’s clothing market is strongly shaped by adult fashion, with some styles being miniaturised versions of adult ranges. Meanwhile youth styles and fashions are opening up a new children’s niche, with its own characteristics and inspirations. Influences on children’s fashion from the sports world and the entertainment sector will continue, even from an increasingly young age. 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 the table below shows, the share of formal clothing is at a comparatively high level of 38% for women and 37% 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. Casual wear and basic leisurewear in particular have - compared to other European countries - lesser but increasing importance among British consumers. Table 70: Share of outerwear by gender and type, 2009 and 2011 Women Men Children 2009 2011 2009 2011 2009 2011 Formal 39% 38% 38% 37% 18% 17% Casual 38% 39% 34% 35% 70% 71% Leisure 18% 18% 21% 22% - - 5% 5% 7% 6% 12% 12% 100% 100% 100% 100% 100% 100% Active sports Total Source: Gherzi assumptions based on Eurostat 7.2.5.2 Consumer expenditure 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. The next table illustrates household expenditure by the age of the household reference person. 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. Between the age of 30 and 49, average weekly expenditure is £9, between 50 and 64; women’s expenditure shows the same level at £9 weekly. Assuming that the age of the reference person of the household stands for the age of the female consumer, it means that 50 to 64 year old women are 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. OUTERWEAR 2013 138 7. UNITED KINGDOM Table 71: Weekly household expenditure by age of household reference person, 2011 [£] Less than 30 30 – 49 50 – 64 65 – 74 75 or over All households Expenditureshare Women’s outerwear 6.80 9.00 9.00 6.70 3.50 7.70 53.47% Men’s outerwear 5.20 5.00 4.90 3.00 1.10 4.20 29.17% Girls’ outerwear 0.50 1.90 0.80 0.40 0.10 1.00 6.94% Boys’ outerwear 0.20 1.40 0.60 0.20 0.00 0.70 4.86% Infants’ outerwear 1.20 1.20 0.50 0.50 0.10 0.80 5.56% Source: ONS The next table clearly shows that total expenditure per household has decreased with a CAGR of -0.2% over the last years. Expenditure on clothing and shoes only increased with a CAGR of 5% over the same period, thus increasing the share of clothing and shoes expenditure per household. Table 72: Average yearly Expenditure per household, 2008-2011 (Euro, 3 persons/household, 2 adults with 1 child ) 2008 2009 2010 2011 Clothing & footwear 1434 1408 1476 1658 1740.42 5.0% % of total 4.6% 4.6% 5.1% 5.3% 5.6% 31254 30587 29117 31114 31066.86 -0.2% Total 2012* CAGR 08-11 Source: ONS - Note: *Estimated 7.2.6 Price development of clothing 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 following table clearly shows the slightly increase in the prices of clothing and shoe segment. The CAGR for clothing and shoes is 0.71% from 2009 to 2012, while Housing, water and fuels and all other items had considerable positive average yearly increase with CAGR 3.5%. Table 73: Price indices for clothing and shoes, 2009-2012 2009 2010 2011 2012 CAGR 09-12 Clothing and Footwear 79.6 78.8 80.6 81.3 0.71% Clothings 78.4 77.5 80.0 80.7 0.97% Housing, water and fuels 129.9 130.3 137.5 144.4 3.59% All items 110.8 114.5 119.6 123.0 3.54% Source: Eurostat 2012 OUTERWEAR 2013 139 7. UNITED KINGDOM 7.3 IMPORTS 7.3.1 Total imports In 2011, the total import of outerwear clothing (knitted and woven) in UK was € 13.93 Billion. There has been a steady growth in imports which increased from € 12.70 Billion in 2009 to €13.93 Billion in 2011 at an annual growth rate of 4.73% Summary of Clothing Outerwear imports by UK: 2009-2011 (Euro Bn) 2009 2010 2011 12.70 13.20 13.93 Intra-EU imports 3.03 3.42 3.89 Extra-EU imports 9.67 9.78 10.04 Total imports Of which Source: Eurostat 2012 SOURCE OF IMPORTS It is clearly evident from the above table that the value of imports from outside Europe (extra-EU) dominates the market. Value of extra-EU imports increased from € 9.67 Billion in 2009to € 10.04 Billion in 2011 however there was a slight decrease in their market share from 76.14% to 72.7% in the last three years. A detailed analysis of various export countries is shown in the subsequent tables. PRODUCT SEGMENTS The clothing outerwear imports are composed of two product segments viz knitted outerwear and woven outerwear, with a slight tilt in favour of the latter (53% share). Overall, the largest segment in terms of value is knitted outerwear for both genders at € 4.25 Billion, representing 30.5% share of total imports. As shown in the aggregate table below, this segment consists of main products such as Jerseys, Pullovers, Cardigans, Gloves & Mittens and T-shirts. The second largest segment is woven outerwear for women & girls, with imports amounting to € 3.80 Billion, representing 27.2% of total imports. Product Segments – Import of Clothing outerwear by UK, 2011(Euro Bn) Product segment Total Knits 6.60 0.70 Wovens 7.33 13.93 Total Source: Eurostat 2012 OUTERWEAR 2013 140 Men & Boys’ Women & girls’ Both genders Active sportswear 1.35 4.25 0.30 2.56 3.80 0.63 0.33 3.26 5.15 4.88 0.63 7. UNITED KINGDOM Table 74: Imports of knitted outerwear by gender and product categories, 2009-2011 2009 2010 2011 Tons 1’000 € Tons 1’000 € Tons 1’000 € 4,938 74,283 4,719 79,624 4,979 89,369 Suits, jackets, outfits, trousers, shorts etc. (61.03) 15,697 173,748 15,505 206,056 15,596 211,168 Shirts (61.05) 22,155 302,420 23,626 354,249 23,770 402,498 Sub Total 42,789 550,451 43,849 639,930 44,345 703,035 Sub Total Extra EU 38,276 404,027 38,431 455,403 38,905 489,516 Coats, raincoats, anoraks etc. (61.02) 9,798 114,807 10,918 134,205 8,842 144,005 Suits, jackets, outfits, trousers, dresses, skirts etc. (61.04) 42,893 665,622 51,547 878,944 51,495 948,907 Blouses and shirts (61.06) 13,090 219,348 12,614 226,898 12,174 254,551 Sub Total 65,780 999,777 75,079 1,240,047 72,510 1,347,463 Sub Total Extra EU 58,685 768,430 64,145 929,695 63,309 997,817 T-shirts, singlets etc. (61.09) 126,509 1,679,979 117,832 1,709,565 103,360 1,645,297 Jersey, pullovers, cardigans, waistcoats, etc. (61.10) 153,058 2,032,436 110,487 1,965,991 106,803 2,043,163 23,361 317,491 21,791 338,429 18,760 336,497 Garments rubberised, impregnated, etc. (61.13) 1,444 26,709 1,653 29,143 1,465 26,223 Gloves, mittens and mitts (61.16) 9,990 77,038 10,885 94,044 11,906 115,568 Other made-up clothing accessories (61.17) 5,884 75,532 5,717 86,570 5,165 82,502 Sub Total 320,246 4,209,184 268,364 4,223,741 247,459 4,249,250 Sub Total Extra EU 267,732 3,398,594 233,589 3,337,645 214,059 3,263,686 6,213 130,221 6,410 130,648 6,326 139,663 For Men or Boys Coats, Raincoats, anoraks etc. (61.01) For women or girls For both genders Babies’ garments (61.11) Active Sportswear Track suits, ski suits and swimwear (61.12) OUTERWEAR 2013 141 7. UNITED KINGDOM Special garments for professional sporting or other purposes (61.14) 7,933 110,486 8,087 143,815 8,293 157,990 Sub Total 14,146 240,707 14,497 274,463 14,620 297,654 Sub Total Extra EU 12,747 190,660 12,002 202,883 12,058 211,749 TOTAL 442,961 6,000,119 401,788 6,378,180 378,933 6,597,402 TOTAL EXTRA EU 377,439 4,761,710 348,168 4,925,626 328,331 4,962,768 Source: Eurostat 2012 Table 75: Imports of woven outerwear by gender and product categories, 2009-2011 2009 2010 2011 Tons 1’000 € Tons 1’000 € Tons 1’000 € Coats, anoraks, windcheaters, etc. (62.01) 19,135 322,377 17,420 332,522 21,260 414,211 Suits, jackets, outfits, trousers, shorts, etc. (62.03) 93,907 1,390,244 90,338 1,410,045 89,096 1,515,722 Shirts (62.05) 33,608 557,934 31,475 593,971 29,939 631,248 Sub Total 146,650 2,270,554 139,233 2,336,538 140,295 2,561,181 Sub Total Extra EU 132,367 1,660,516 123,885 1,690,175 122,428 1,826,221 26,703 469,294 24,550 503,288 26,856 582,967 144,423 2,432,923 124,509 2,431,584 123,996 2,559,065 31,193 652,223 28,123 639,109 27,099 661,801 Sub Total 202,318 3,554,439 177,182 3,573,980 177,951 3,803,832 Sub Total Extra EU 164,684 2,632,493 147,816 2,541,875 144,155 2,587,738 Babies garments (62.09) 10,101 147,951 7,539 131,522 9,680 124,026 Others incl. Impregnated (62.10) 16,475 250,609 18,421 258,488 20,671 277,733 8,243 112,107 6,586 123,179 6,306 123,175 For Men or Boys For women or girls Coats, anoraks, windcheaters, etc. (62.02) Suits, jackets, dresses, skirts, trousers, etc (62.04) Blouses and shirts (62.06) For both genders Shawls, scarves, mufflers, etc. (62.14) OUTERWEAR 2013 142 7. UNITED KINGDOM Ties, bow ties and cravats (62.15) 6,774 41,802 1,723 41,286 1,515 39,263 Gloves, mittens and mitts (62.16) 1,759 20,999 2,048 26,570 2,161 33,726 Other made-up clothing accessories (62.17) 4,078 45,655 3,316 43,606 2,971 36,500 Sub Total 47,430 619,123 39,631 624,651 43,305 634,423 Sub Total Extra EU 35,102 432,727 32,982 418,026 35,797 415,323 Track suits, ski suits (62.11) 19,434 254,516 21,583 278,860 23,540 329,352 Sub Total 19,434 254,516 21,583 278,860 23,540 329,352 Sub Total Extra EU 16,573 178,376 19,167 200,880 20,649 243,550 TOTAL 415,832 6,698,632 377,629 6,814,029 385,091 7,328,787 TOTAL EXTRA EU 348,726 4,904,112 323,851 4,850,956 323,029 5,072,831 Active Sportswear Source: Eurostat 2012 7.3.2 Outward Processing Trade (OPT) Outward Processing is the term used to describe a duty relief procedure established by the European Community (EC). It allows goods to be exported outside the European Union (EU) for processing or repair and then re-imported to the EU with a relief granted from import duties on the basis of the content of the EU goods in the final products. Outward processing enables businesses to take advantage of cheaper labour costs outside the EU, while encouraging the use of Community produced raw materials and intermediates to manufacture the finished products. According to table 44, the main two import countries for OPT business with UK are China, with imports of € 31 million in 2010, and Indonesia, with imports valuing € 17.4 million. At present, the countries with the highest growth rates in the outward processing trade are India (+546%), Tunisia (+322%), Thailand (+117%) and Philippines (+49%) from 2009 to 2010. The total OPT business into UK from non EU countries has decreased by -27.8% from 2008 to 2009 and increased with +11% from 2009 to 2010 but overall slightly decreased by -20% from 2008 to 2010. OUTERWEAR 2013 143 7. UNITED KINGDOM Largest supplying countries of OPT woven outerwear, 2008-2010 2008 (1‘000 €) Change from 2008 2009 (1’000 €) Change from 2009 2010 (1’000 €) CHINA 28,360 6.3% 30,154 4.8% 31,599 2 INDONESIA 15,642 0.3% 15,689 10.9% 17,397 3 MOLDOVA 9,617 5.8% 10,170 30.7% 13,295 4 UKRAINE 12,711 -36.3% 8,094 40.2% 11,344 5 MOROCCO 22,536 -64.7% 7,954 35.5% 10,781 6 HONG KONG 9,214 -17.8% 7,576 0.4% 7,605 7 THAILAND 5,341 -61.2% 2,071 116.6% 4,485 8 BELARUS 7,758 -35.8% 4,979 -25.1% 3,728 9 TUNISIA 1,320 -54.7% 597 321.6% 2,519 10 UAE 5,508 -44.2% 3,073 -40.3% 1,836 11 MACEDONIA 10,172 -45.9% 5,501 -66.7% 1,834 12 RUSSIA 1,703 -26.5% 1,251 11.3% 1,392 13 VIETNAM 2,212 -36.8% 1,398 -7.8% 1,289 14 PAKISTAN - - - - 882 15 SRI LANKA 1,610 -59.5% 652 14.3% 745 16 BANGLADESH 2,322 -54.0% 1,069 -72.8% 290 17 INDIA 112 -68.4% 35 545.6% 228 18 GEORGIA 83 8.0% 90 46.0% 131 19 PHILIPPINES 67 -0.9% 67 48.8% 99 20 EGYPT - - - - 79 Total 139,421 -27.8% 100,691 11.0% 111,770 Position Country 1 Source: Eurostat 2012 7.3.3 Largest suppliers of outerwear Table 45 gives a good survey on the performance of the 20 leading extra-EU clothing suppliers to the UK. The share of clothing imports from non-EU countries was 76% in 2009. In 2009, € 12.7 billion of outerwear was imported to the UK: € 9.6 billion outerwear from extra-EU and € 3.03 billion from other EU member states. While the imports from extra-EU increased by +4% from 2009 to 2011, the imports from EU countries increased by almost 23%. The three main import countries are China (€ 4.1 billion), Bangladesh (€ 1.16 billion)and Turkey (€ 1.10 billion). Looking at the country shares in total import, China maintains the major part with 29.7% of total imports. Turkey also plays a significant role with a share of 8.39%. These two countries alone represent more than a third of total clothing imports. OUTERWEAR 2013 144 7. UNITED KINGDOM Table 76: Largest extra EU supplying countries of outerwear, 2009-2011 2009 (1’000 €) Change from 2009 2010 (1’000 €) Change from 2010 2011 (1’000 €) 4,241,220 -0.1% 4,238,493 -2.5% 4,134,192 953,688 -0.3% 951,285 22.8% 1,168,287 1,056,360 9.7% 1,158,369 -4.3% 1,108,018 INDIA 863,196 0.8% 870,345 4.2% 907,277 5 SRI LANKA 478,595 -4.8% 455,807 0.1% 456,094 6 VIET-NAM 204,960 8.7% 222,808 29.9% 289,379 7 PAKISTAN 223,120 3.2% 230,194 14.9% 264,551 8 CAMBODIA 147,489 10.7% 163,230 52.0% 248,078 9 INDONESIA 228,277 -11.9% 201,201 4.7% 210,681 10 MOROCCO 185,554 -13.8% 160,026 -4.0% 153,559 11 MAURITIUS 155,455 -12.3% 136,362 3.1% 140,601 12 EGYPT 123,131 1.0% 124,359 9.9% 136,690 13 HONG KONG 114,816 2.4% 117,615 -4.3% 112,523 14 UNITED STATES 91,529 16.4% 106,546 -8.7% 97,271 15 THAILAND 117,518 -3.4% 113,528 -16.6% 94,686 16 TUNISIA 65,220 11.5% 72,740 2.6% 74,642 17 LAO 36,645 9.3% 40,042 19.8% 47,966 18 UAE 40,415 -3.4% 39,024 -5.7% 36,806 19 PHILIPPINES 22,286 22.4% 27,279 3.0% 28,106 20 MALAYSIA 44,245 -23.2% 33,998 -24.5% 25,666 EU27_EXTRA 9,665,823 1.1% 9,776,581 2.6% 10,035,600 EU27_INTRA 3,032,927 12.6% 3,415,628 13.9% 3,890,589 Total 12,698,750 3.89% 13,192,209 5.56% 13,926,189 Position Country 1 CHINA 2 BANGLADESH 3 TURKEY 4 Source: Eurostat 2012 Intra-EU imports have increased by +28.3% from 2009 to 2011. Only Ireland had inverse trend and decreased its exports to the UK by -2.38% from 2009 to 2011. Italy, Netherlands and Germany are the three main intra-EU exporting countries to the UK. OUTERWEAR 2013 145 7. UNITED KINGDOM Table 77: Largest intra EU supplying countries of outerwear, 2006-2008 Position Country 2009 (1’000 €) Change from 2009 2010 (1’000 €) Change from 2010 2011 (1’000 €) 1 ITALY 579,975 17.4% 680,751 11.6% 760,029 2 NETHERLANDS 295,354 29.3% 381,777 23.9% 472,934 3 GERMANY 407,892 9.5% 446,535 5.5% 471,315 4 FRANCE 386,085 -1.4% 380,687 9.2% 415,592 5 BELGIUM 352,697 5.6% 372,521 6.8% 397,887 6 ROMANIA 234,327 19.9% 281,059 28.1% 360,004 7 SPAIN 229,697 10.6% 253,930 6.0% 269,167 8 PORTUGAL 147,697 3.8% 153,268 1.6% 155,739 9 DENMARK 61,578 36.1% 83,810 60.0% 134,062 10 IRELAND 102,861 -1.6% 101,211 -0.8% 100,409 EU27_INTRA 3,032,927 12.6% 3,415,628 13.9% 3,890,589 EU27_EXTRA 9,665,823 1.1% 9,776,581 2.6% 10,035,600 Total 12,698,750 3.9% 13,192,209 5.6% 13,926,189 Source: Eurostat 2012 7.4.1 Developments in the retail trade Following M&S survey, the clothing market faced a difficult year. In this highly competitive sector several factors are driving shopping trends on the High Street. Older customers, who are more cautious about spending, are increasingly buying on a ‘needs’ basis or replacing staples with investment pieces. They are looking for clothing that lasts beyond the current season, which can be dressed up or down and accessorised. Additionally, the economic climate has forced customers to consider carefully before buying, prompting retailers to introduce promotions and discounts to entice them in, especially during Christmas. This resulted in customers widening their store choice so they could cherry pick the best offers, and use deals to ‘trade up’ to better quality items for less money. Under-35 customers are more unpredictable in their approach to spending. While spending initially slowed at the start of 2008/09, they quickly returned to the impulse shopping that characterised their spending before the credit crunch. They tend to buy for the moment and gravitate to cheap fashion items – cutting back spending in other parts of their lives so they can afford to shop. The retailing structure for clothing in the UK is one most concentrated in the world. Clothing chains, value and discount retailers and variety stores are the main retail channels for outerwear clothing in the UK. The three largest players are Marks & Spencer (M&S), the Next Group and the Arcadia Group. The number and variety of retail channels which offer outerwear clothing has increased in recent years. OUTERWEAR 2013 146 7. UNITED KINGDOM The UK accounted for around 35,000 clothing outlets in 2011, of which the number of independent clothing retailers can be estimated at almost 10’000, operating through 13’000 outlets. Some independent sport shops in the UK have joined a buying group, of which the most important are Intersport (260 stores) and Sport 2000 (300 stores). The Arcadia Group operates through over 2’500 clothing multiple stores in the UK (and 615 abroad), like Dorothy Perkins, Evans, Top Shop, Wallis, Miss Selfridge, Burton and Top Man. All chains include home service activities. Under the name Aurora Fashions, new name for Mosaic Fashions, four fashion brands (Karen Millan, Coast, Warehouse and Oasis) will continue its activities through more than 1’700 stores in 44 countries, as reported in March 2012. Major foreign players are Hennes & Mauritz (228 stores), Gap (122 stores), Zara (65 stores), Mango (84 stores) and Dunnes Stores (35 stores). The UK clothing retail sector makes a distinction between discount retailers, which sell branded clothing at below recommended prices, and value retailers, which sell own label clothes at low prices. Both types of retailers are likely to put even further downward pressure on pricing. The value players have performed strongly and this is expected to continue as the downturn takes hold. Primark is the largest of these players followed by TK Maxx (part of the USA based TJX Companies). Primark has plans for further expansion, has stores already trading in Spain and plans afoot for further expansion into The Netherlands, Portugal and Germany. TK Maxx Europe is also active in Ireland and Germany. The most important variety chain is Marks & Spencer (M&S) with 700 stores nationwide and selling clothing besides food and home ware. In addition, M&S has 300 stores worldwide, including franchise businesses, operating in 40 countries. M&S is the UK’s leading household and furnishing retailer, and an important retailer of foods, clothing and footwear. Another variety chain is Bhs (188 stores), active in adults’ wear, and even more important, in children’s wear also through the formula Tammy. The leading department store is Debenham (153 stores in the UK and Ireland, besides 48 franchised outlets in 17 countries abroad). Debenham is the UK’s third largest clothing retailer and the leading department store in selling clothing. Another department store is John Lewis Partnership (27 stores). 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. 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. 7.4.2 Leading retailers The following table gives a good survey of leading clothing shops/chains in the UK. Besides the clothing chains of the powerful ARCADIA Group, (sales volume £ 2.67 billion in 2011) there are other clothing multiples like NEXT with 410 outlets and a sales volume of € 3.3 billion. OUTERWEAR 2013 147 7. UNITED KINGDOM Table 78: Major specialised clothing chains based in the UK, 2011 Clothing retail chain Parent company Website Number of outlets General Next Next PLC www.next.co.uk 410 Monsoon Monsoon www.monsoon.co.uk 410 (849) New Look New Look www.newlook.co.uk 502 (660) Dorothy Perkins Arcadia Group www.dorothyperkins.co.uk 600 (50) Evans Arcadia Group www.evans.ltd.uk 330 Wallis Arcadia Group www.walis-fashion.com 300 (425) Miss Selfridge Arcadia Group www.misssefridge.co.uk Online Topshop Arcadia Group www.topshop.co.uk Online Alexon Alexon Group www.alexon.co.uk 10 (18) Bay Trading Alexon Group www.alexon.co.uk More than 100 Stroes Women Men More than 100 Stroes (Incl. UK and Ireland) www.topman.co.uk Topman Arcadia Group Burton Arcadia Group www.burton.co.uk Mothercare www.mothercare.com JJB Sports www.jjb.co.uk 19 Black Leisure Group www.blackleisure.co.uk 400 Plus stores John David Group www.jdsports.co.uk 402 Matalan (family clothing etc.) www.matalan.co.uk 217 Peacock (clothing, footwear etc.) www.peacocks.co.uk 460 (506) Primark (clothing, footwear etc.) www.primark.co.uk M6Co (former name Mackays; women’s and children’s wear) www.mackaystores.co.uk 300 Plus QS (general clothing) www.qsgroup.co.uk 170 Bonmarché (women’s wear) www.bonmarche.co.uk 261 Children & maternity Mothercare Outdoor / sports JJB Sports Blacks Leisure JD Sports Value retailers OUTERWEAR 2013 148 7. UNITED KINGDOM Discount chains TK Maxx (fashion and giftware) The Officers Club (men’s wear) www.tkmaxx.com 214 (231) www.theofficersclub.co.uk 53 Source: CBI & Individual websites of retailers - Note: Numbers in brackets including outlets abroad 7.4.3 Distribution channels 7.4.3.1 Retailers The following table gives an overview on the main clothing retail channels in the UK and the share of each channel. Table 79: Clothing retail channels by market share [%] 2008 2010 2012 Specialists 47 48 50 Independent retailers 11 11 12 Clothing multiples* 36 37 38 Non-specialists 53 52 50 Department/variety stores 21 14 14 Home shopping companies 8 13 14 Hyper- and supermarkets 9 11 11 Sports stores 4 4 2 Other 11 10 9 Total 100 100 100 Source: INSIGHTS (Global lifestyle monitor) 7.4.3.1.1 Independent specialised retailers The market share of independent clothing retailers has been dropping slowly over the past years (2008-2012). 12% of the clothing is sold through independent shops, which is rather low compared with the much higher 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. Market share: 12% in 2012 Trend: Stable 7.4.3.1.2 Clothing multiples 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 more than 2’500 clothing multiple stores and includes, as well as home service activities, the women’s chains Dorothy Perkins, Evans, Top Shop, Miss Selfridge, Wallis, Outfit the men’s wear chains Burton and Top Man. The Arcadia Group buys separately for each of its companies and each product group and there are buyers responsible for each product segment. OUTERWEAR 2013 149 7. UNITED KINGDOM The Top Shop chain, offers 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, and Mulberry, who combined classic brands with current market trends. 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. Market share: 38 % in 2012 Trend: increasing 7.4.3.1.3 Department stores 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 a total sales of around £ 0.9 billion in 2008, the restructuring efforts were successful. M&S has now reopened stores outside the UK but still concentrates on premium locations. The DEBENHAMS department stores had a sales turnover of £ 3.2 billion in 2011. Other major department stores are: JOHN LEWIS, HOUSE OF FRASER, ALLDERS and SELFRIDGES in the market, but MARKS & SPENCER still keeps the no. 1 position. Market share: 14 % in 2012 Trend: Stable 7.4.3.1.4 Home shopping companies Over 40 companies are active in the home shopping sector (operations via direct-mail, catalogues, television and Internet) like: Grattan and Freemans; both companies are part of the German mail-order giant Otto Versand; Empire Stores is owned by the French PRP; Littlewoods. Most of the UK retail organisations operate also via Internet, mailorder and home shopping, of which Next Directory - is the most successful. Market share: 14% in 2012 Trend: Decreasing 7.4.3.1.5 Hyper- and supermarkets Supermarkets tend to offer convenience and competitive prices. And because almost everyone needs to go grocery shopping, supermarkets have a large base of customers who regularly visit their stores. This has even resulted in some supermarkets attempting to lead and create fashion trends in clothing. According to Verdict, growth in sales of clothing at supermarkets will be driven by two factors. ••Supermarkets will start to sell a greater range of higher priced clothing. This will help them attract a wider spread of consumers and allow them to take more business from specialist players ••Supermarkets will achieve growth in sales of clothing via online shopping. Many grocers are already active in Internet sales and have a comprehensive delivery network in place. OUTERWEAR 2013 150 7. UNITED KINGDOM The two major retailers in the supermarket sector are ASDA (328 stores selling clothing in the UK and part of American Wal-Mart; and Tesco (585 superstores but not all stores are selling clothing). They increasingly follow the trend of offering non-food products as do, for instance, the leading French hypermarkets. ASDA’s assortment includes its successful George clothing range, which is also sold by Wal-Mart. Another grocer chain is Sainsbury’s (selling its TU clothing collection in 300 of the in total more than 800 stores). The German discounters Lidl (450 stores) and Aldi (360) and, Makro Cash & Carry (33 stores) are also active in the UK. Market share: 11% in 2012 Trend: Increasing 7.4.3.2 Sales intermediaries 7.4.3.2.1 Clothing manufacturers 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. Due to the strong increase of production costs in the UK, clothing manufacturers (mainly brands) have started outsourcing to Eastern Europe and Northern Africa. Many products (e.g. most of the knitted outerwear) are bought from Asia and Turkey. British clothing ‘manufacturers’ have turned in being more management and marketing units than producers. They mainly concentrate on the design and 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. 7.4.3.2.2 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. 7.4.3.2.3 Sales agents There are different methods of indirect distribution from abroad to the various clothing retailers in the UK. 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. 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 women’s wear), 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 the UK. The condition is whether the manufacturer has a clear marketing strategy with a market oriented collection for the British market. The basis is a 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. OUTERWEAR 2013 151 7. UNITED KINGDOM 7.4.3.2.4 Importers / wholesalers 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. 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’. 7.5 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. 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 the UK is the London Fashion Week. Two more fairs take place parallel to the London Fashion Week: Pure and Margin London. All these fairs take place twice a year (February and August). An exception is the Premier Kids in Birmingham, which has found its niche in the children’s wear segment. In any case, brief research about the importance and the concept of the fair to be attended is essential. The following table gives a brief overview on the major British clothing fairs with names, venues and dates. OUTERWEAR 2013 152 7. UNITED KINGDOM Table 80: UK fashion trade fairs 2013 Trade fair Date Location 16th - 17th April 2013 Silverstone Circuit, Towcester Interiors London 2013 19th - 21st May 2013 Excel London, London MINT Polo In The Park 7th - 9th June 2013 Hurlingham Park, Fulham, London 7th - 9th July 2013 Ricoh Arena, Coventry Workwear and Corporate Clothing Show Chic - International Fashion Accessories & Travel Goods Fair Fashion and Footwear Fair International Jewellery London RDS - Irish International Convention and 18th - 19th August 2013 Exhibition Centre, Dublin 1st - 4th September 2013 Earls Court 2, London 8th September 2013 Epsom Downs Racecourse, Surrey 9th - 11th September 2013 Business Design Centre, London The Exhibition at London Fashion Week 13th - 17th September 2013 Somerset House, London Off-Price Show London 22nd - 23rd September 2013 Olympia, London, Kensington Fashion SVP 22nd - 24th September 2013 Olympia Exhibition Centre, London 22nd September 2013 Kempton Park Racecourse, Surrey 7th - 9th November 2013 SECC, Glasgow 16th - 17th November 2013 tbc The 50+ Show - Birmingham, NEC 6th - 7th December 2013 NEC, Birmingham Chic - International Fashion Accessories & Travel Goods Fair 19th - 22nd January 2014 Ricoh Arena, Coventry 1st - 2nd February 2014 Citywest Hotel, Conference, Leisure & Golf Resort, Dublin The Exhibition at London Fashion Week 14th - 18th February 2014 Somerset House, London The Exhibition at London Fashion Week 12th - 16th September 2014 Somerset House, London 27th - 29th January 2020 ManchesterCentral, Petersfield Epsom Downs Racecourse - Wedding Show Sunday 8th September 2013 London Garments Expo Kempton Park Wedding Show - 22nd September 2013 The 50+ Show - Glasgow, SECC UltimateProm live London Futura Home Interiors Show Slide. Actionsport & Streetwear Retailer Show Source: EventsEye OUTERWEAR 2013 153 7. UNITED KINGDOM 7.6LIST OF MAJOR BUYERS IN UK Clothing Chain Stores Arcadia Group Ltd. Colegrave House 70 Berners Street GB - London W1T 3NL Tel.: +44 – 0844 243 0000 www.arcadiagroup.co.uk customer.service@arcadiagroup.co.uk Product range: Ladies, men’s, childrenswear Price segment: Mid-level Number of outlets: 2500 + 615 international franchise stores+ mail order business Note: Arcadia Group is privately owned by Taveta Investments Ltd, the investment vehicle owned by Sir Philip Green and his family TOP MAN Colegrave House 70 Berners Street GB - London W1T 3NL Tel.: +44 – 207 – 636 8040 European Customers: +44 844 984 0264 customer.service@topman.com www.topman.co.uk Product range: Menswear 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 customer.service@TOPSHOP.COM Product range: Womenswear (young fashion) Price segment: Mid-level Number of outlets: 288 + mail order service Note: belongs to ARCADIA Group Wallis Fashion Group Ltd. Colegrave House 70 Berners Street GB - London W1T 3NL Tel.: +44 – 207 – 636 8040 customer.service@wallis.co.uk www.wallis-fashion.com Product range: Womenswear Price segment: Lower to mid-level Number of outlets: 289 + mail order service Note: belongs to ARCADIA Group WEW Group PLC 296 Springfield Road GB - Glasgow G40 3HZ Tel.: +44 – 141 – 5567111 Fax: +44 – 141 – 5567262 Product range: Ladies, men’s, childrenswear Price segment: Mid-level Number of outlets: 40 Bhs International Euston House 132 Hampstead Road GB - London NW1 2PS Tel.: +44 – 207 – 2623288 international@bhs.co.uk www.bhs.co.uk Product range: Ladies, men’s, childrenswear, Home Price segment: Mid-level Number of outlets: over 100 in the UK OUTERWEAR 2013 154 7. UNITED KINGDOM Bon Marché Ltd. Jubilee Way Grange Moor GB - Wakefield WF4 4SJ Tel.: +44(0)1924 700100 Fax: +44(0)1924 700249 info@bonmarche.co.uk www.bonmarche.co.uk 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 Product range: Womens wear Price segment: Lower level Number of outlets: 261 (350 at the end 2008) Note: belongs to Peacock Group Product range: Menswear Price segment: Upper level Number of outlets: 150 H&M Hennes Ltd. 2nd Floor, Holden House 57 Rathbone Place GB - London W1T 1HE Tel.: +44 – 020 – 7323 2211 www.hm.com Product range: Ladies, men’s, childrenswear Price segment: lower level Number of outlets: 228 Matalan Retail Ltd. Gillibrands Road Skelmersdale GB - WN8 9TB, West Lancashire Tel.: +44 – 169 – 5552400 www.matalan.co.uk Product range: Ladies, men’s, childrenswear Price segment: mid to upper level Number of outlets: 217 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 Product range: Ladies, men’s, childrenswear Price segment: Lower level (value for money) Number of outlets: 84 in UK Store Twenty One (Earlier Know as Q S PLC) Harbour House 121 Gardener Road, Portslade GB - Brighton BN1 IQS Tel.: +44 – 1273 – 874444 Fax: +44 – 1273 – 874433 http://www.storetwentyone.co.uk/about-us/ customerservices@storetwentyone.co.uk Subsidery of Grabel Alok Product range: Ladies, men’s, childrenswear Price segment: Lower level (value for money) Number of outlets: 279 OUTERWEAR 2013 155 7. UNITED KINGDOM 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 48, Warwick Street GB - London, W1B 5 FE Tel.: +44 20 7851 43 00 Fax: +44 20 7851 43 01 www.zara.com Product range: Ladies’ and menswear Price segment: Mid to upper level Number of outlets: 200 Product range: Ladies, men’s, childrenswear Price segment: Mid-level Number of outlets: 42 (Remark: Buying via Spain) Department stores: Debenhams Retail Plc. 1 Welbeck Street GB - London W1G GAA Tel.: +44 – 207 – 408 4444 Fax: +44 – 207 – 408 3366 www.debenhams.com 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 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 Liberty PLC Regent Street GB - London W1B 5AH Tel.: +44 – 207 – 734 1234 Fax: +44 – 020 – 7573 9898 www.liberty.co.uk OUTERWEAR 2013 156 Product range: Ladies’, men’s and childrenswear Price segment: Mid-level Number of outlets: 117 in UK (240 Stores across 28 countries) Product range: Ladies’ and menswear Price segment: Upper level (brand orientation) Number of outlets: 62 (In UK and Ireland) Product range: Sports and Leisurewear Price segment: Lower to mid-level Number of outlets: 27 stores + 169 Supermarkets Product range: Ladies’, men’s and childrenswear Price segment: Lower to mid-level Number of outlets: 120 + 166 catalogue Shops 7. UNITED KINGDOM Marks + Spencer Group PLC Waterside House 35 North Wharf Road GB - London W21 NW Tel.: +44 – 020 7935 4422 www.marksandspencer.com retailcustomer.services@marksandspencer.com Next plc. Company secretary: Mr A J R McKinlay Desford Road GB - Enderby Leicester LE19 4AT Tel.: +44 – 0 - 844 844 88 88 Fax: +44 – 116 – 284 8998 www.next.co.uk Woolworths PLC 1st Floor, Skyways House, Speke Road, GB - Speke, Liverpool L70 1AB Tel.: +44 – 207 – 262 1222 Fax: +44 – 207 – 706 5416 www.woolworths.co.uk Product range: Ladies’, men’s and childrenswear Price segment: Mid-level Number of outlets: 375 stores + over 130 franchising partners Product range: Ladies’, men’s and childrenswear Price segment: Mid-level Number of outlets 500 stores + 43 franchising partners + home shopping Product range: Childrenswear Price segment: Lower to mid-level Number of outlets: 806 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 Liam David Ltd. Address has got changed.....site is under construction www.ldl.uk.com Westbridge International Group Ltd. Westbridge House Holland Street, Hyson Green GB - Nottingham NG7 5DS Tel.: +44 – 115 – 978 2254 Fax: +44 – 115 942 0547 www.wbig.co.uk OUTERWEAR 2013 157 County Coats 61-75 Alie Street GB - London E1 8EL Tel.: +44 – 207 – 709 9682 Fax: +44 – 207 – 702 2870 Propeller UK Ltd. A.M.C. House 33 GREAT Queen Streetcovent Garden London wc2b 5AA Tel.: +44 – 020 7836 2736 7. UNITED KINGDOM Mail Order Companies: 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 Product range: Ladies’, men’s and childrenswear Price level: Lower level Freemans PLC Amberley Street GB – Sheffield S9 2 FS www.freemans.com Product range: Ladies’, men’s and childrenswear Price level: Lower to mid-level (value for money) Great Universal Stores PLC (GUS) Universal House 251-256 Tottenham Court Road GB - London W1A 1BZ Tel.: +44 71 636 4080 Fax: +44 71 631 3641 info@gusplc.com www.gusplc.com Grattan PLC P.O. B ox 3856 GB – Sheffield S96 5WD www.grattan.co.uk JD Williams + Co. Ltd. Griffin House 40 Lever Street GB - Manchester M60 6ES Tel.: +44 – 870 – 160 61 00 www.jdwilliams.co.uk OUTERWEAR 2013 158 Product range: Ladies’, men’s and childrenswear Price level: from Lower to upper level Note: 12 different mail-order lines Product range: Ladies’, men’s and childrenswear Price level: Lower to mid-level Product range: Ladies’, men’s and childrenswear Price level: Mid to lower level Note: No. 1 in UK with 20 catalogue brands Note: part of N. Brown Group PLC 7. UNITED KINGDOM Jeans and Young Fashion Chain: Alexon A Division of Alexon Int. Ltd. Pitfield Kiln Farm GB – Milton Keynes MK 11 3LW help@alexon.co.uk www.alexon.co.uk Product range: Sportswear (outdoor) Price segment: Mid-level Number of outlets: 125 Note: belongs to Blacks Leisure Group plc. Blacks Leisure Group PLC 440-450 Cob Drive Swan Valley GB – Northampton NN4 9BB Tel.: +44 (0) 1604 597 000 Fax +44 (0) 1604 597 171 www.blacks.co.uk Product range: Sportswear (outdoor) Price segment: Mid-level Number of outlets: 125. 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 Price segment: Lower to mid-level Number of outlets: 55 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) Number of outlets: 50 Paco Life in Colour Unit K3/Waterside Shopping Centre High Street Lincoln, LN2 1AP Tel.: +44 01 522 568637 www.dancingdress.co.uk Product range: Sportswear Price segment: Mid-level Number of outlets: 50 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 www.jjbsports.com Product range: Sportswear Price segment: Mid-level Number of outlets: 82 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 www.frenchconnection.com OUTERWEAR 2013 159 Product range: Stylish sports and casual wear Price segment: Mid to upper level Number of outlets: 430 Note: Largest British retailer for sportswear 7. UNITED KINGDOM Buying Associations: 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 INTERSPORT UK Shirley Solihull GB - B90 4LF West Midlands Tel.: +44 - 121 - 683 1449 Fax: +44 - 121 – 683 1467 www.intersport.co.uk contact@intersport.co.uk OUTERWEAR 2013 160 8. DOING BUSINESS IN SWITZERLAND AND THE EU 8. Doing business in Switzerland and the EU 8.1MARKET ACCESS 8.1.1 Quality and standards in Switzerland and the EU The application of the European Norms (EN) in the 27 EU and the 4 EFTA countries (including Switzerland) is the basis of a liberal intra-European trade and is valid in all 31 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 Apparel and Textile Confederation (Euratex) has published an example of recommendations for manufacturers of knitted and woven clothing. Within these recommendations the Euratex, where Switzerland and many of the EU 27 countries hold a membership makes a difference between: ••Recommendations concerning the characteristics of product which could be detected by an experienced person without aid of instruments in general 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 definition, testing method, minimum quality standards and (if necessary) possible allowable tolerances compared with measurements of the sample. Testing methods for clothing are usually based on the ISO standards (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. 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) ••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 penetration), EN 24920 (spray test) etc. ••for colour-fastness 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 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 nonmembership in the EU, Switzerland has accepted various EU-norms and references within the framework of national legislation. OUTERWEAR 2013 161 8. DOING BUSINESS IN SWITZERLAND AND THE EU 8.1.2 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. The dispose of waste is increasingly difficult and expensive 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 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 packaging 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). SIZE 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. Table 81: Size table for women’s outerwear Character sizes XXS XS S M L XL XXL XXXL 34 36 38 40 42 44 46 48 Chest width 78-81 82-85 86-89 90-93 94-97 98-102 103-107 108-113 Waist size 62-65 66-69 70-73 74-77 78-81 82-85 86-89 90-94 Hip girth 89-91 92-95 96-98 99-101 102-104 105-108 109-112 113-116 Figure size Table 82: Size table for men’s outerwear except trousers and jeans Character sizes XXS XS S M L XL XXL XXXL 44 46 48 50 52 54 56 58 Chest width 86-89 90-93 94-97 98-101 102-105 106-109 110-113 114-117 Waist size 74-77 78-81 82-85 86-89 90-94 95-99 100-104 105-109 Hip girth 89-92 93-96 97-100 101-104 105-108 109-112 113-116 117-120 Figure size OUTERWEAR 2013 162 8. DOING BUSINESS IN SWITZERLAND AND THE EU Table 83: Size table for men‘s trousers [cm] Figure sizes 44 46 48 50 52 54 56 58 60 62 Waistband width 77 81 85 89 93 97 103 109 115 119 Side length 77 79 81 83 85 86 87 87 88 88 The EN 13402 is a voluntary European Standard aimed at making the buying of clothes simpler for the customer throughout Europe. At the moment, a woman with a bust of about 88 cm, a waist of about 72 cm and hips of about 96 cm, takes a dress size: ••12 in the UK ••38 in Norway, Sweden and Finland ••40 in Belgium and France ••38 in Germany and the Netherlands ••44 in Italy ••44/46 in Portugal and Spain. ••(10 in the USA) EN 13402 suggests a new measurement system which would remove this confusion. It takes different dimensions such as height, bust, and waist, and displays these measurements in 4 cm and 8 cm intervals. For example, a woman with a waist of 71 cm, hips of 96cm and a height of 172 cm, would look for a skirt displaying the following measurements on the label: waist 70-74 cm, hips 94-98 cm, height 170-174 cm. The standard also suggests a language-neutral pictogram, on which these dimensions can be indicated, to enable easier purchasing abroad. JEANS SIZES Jeans are sold internationally in inch sizes. They are read as follows: The first number refers to the girth of the waist and the second to the inside leg seam (inseam). Both are expressed in inches. Germany has a specific system for the men’s sizes, which are subdivided into three groups: ••Standard sizes: 44 46 48 50 52 54 56 58 60 62 ••Large sizes (shorter than standard sizes and wider at the hip): 24 25 26 ••Slim sizes (longer than standard sizes and narrower): 84 86 88 90 94 98 102 106 Table 84: Size marking for babies’ and children’s wear Years Groups 0-2 Babies 2-6 Toddlers 6-12 Middle group / school 12-14 Pre-teens 14-16 Teenagers OUTERWEAR 2013 163 8. DOING BUSINESS IN SWITZERLAND AND THE EU INFANTS’ WEAR (BODY SIZES) For the purposes of sizing all children are best grouped into infants (younger than seven years), boys and girls. The Swedish ‘Centilong’ system based on height values is used in some European countries. There is one standard for all these sizes. Table 85: Body sizes infants [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 Table 86: Boys‘ wear [cm] Height 110 116 122 128 134 140 146 152 158 164 170 176 182 188 194 Chest 58 59 60 62 64 67 70 73 77 81 85 88 91 94 97 Waist 54 55 56 57 59 61 63 65 68 71 74 77 80 83 86 Hips 59 61 63 65 68 71 74 77 81 85 89 93 95 98 101 Arm length 39.1 41.4 43.7 46 48.3 50.6 52.5 55.3 57.5 60 62.5 65 67 69 71 Inside leg length 47.5 51 54.5 58 61.5 65 68 71 74 77 80 83 86 89 92 28 28.5 29.5 30.5 31.5 32.5 33.5 34.5 35.5 36.5 37.5 38 38.5 39 39.5 Neck circumference Table 87: Girls’ wear [cm] Height 110 116 122 128 134 140 146 152 158 164 170 176 182 188 Chest 58 59 60 62 64 67 71 75 79 83 86 89 92 95 Waist 54 55 56 57 59 61 63 65 67 69 71 73 75 77 Hips 61 63 65 67 70 73 77 81 85 89 93 96 99 102 Arm length 39.1 41.4 43.7 46 48.3 50.6 52.8 55 57.3 59.5 61.5 63.5 65.5 67.5 Inside leg length 47.5 51 55 59 63 67 70 72.5 75 77.5 80 82.5 85 87.5 Neck circumference 28 28.5 29 29.5 30 30.7 31.5 32.2 33.3 33.7 34.5 35.5 36.5 37.5 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. OUTERWEAR 2013 164 8. DOING BUSINESS IN SWITZERLAND AND THE EU 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 (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 pictogram. 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. 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 colour-fastness, 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. OUTERWEAR 2013 165 8. DOING BUSINESS IN SWITZERLAND AND THE EU Table 88: The washing labelling symbols (according to ISO 3758) Symbols OUTERWEAR 2013 166 Maximum washing temperature Care process Symbols Maximum washing temperature Care process 40°C mechanical action highly reduced rinsing at gradually decreasing temperature spinning highly reduced 30°C mechanical action normal rinsing normal spinning normal 30°C mechanical action reduced rinsing at gradually decreasing temperature spinning reduced 60°C mechanical action reduced rinsing at gradually decreasing temperature spinning reduced 30°C mechanical action highly reduced rinsing at gradually decreasing temperature spinning highly reduced 40°C mechanical action normal rinsing normal spinning normal 40°C hand wash only 40°C mechanical action reduced rinsing at gradually decreasing temperature spinning reduced - 95°C mechanical action normal rinsing normal spinning normal 95°C mechanical action reduced rinsing at gradually decreasing temperature spinning reduced 60°C mechanical action normal rinsing normal spinning normal Do not wash 8. DOING BUSINESS IN SWITZERLAND AND THE EU Table 89: Ironing labelling symbols (according to ISO 3758) Symbols Care Process Iron at maximum soleplate temperature of 200° C Iron at maximum soleplate temperature of 150° C Iron at maximum soleplate temperature of 110° C (steam iron may be risky) Do not iron DRY CLEANING Letters (A, P and F) in the circle refer to the solvents which may be used by dry cleaners. Underlining the circle indicates that a specific process should be 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, self-service cleaning is not allowed. Table 90: Dry cleaning labelling symbols (according to ISO 3758) Symbols Care Process Dry-cleaning in all solvents normally used for dry-cleaning except trichloro- ethylene with normal cleaning procedures. Self-service cleaning is possible 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 OUTERWEAR 2013 167 8. DOING BUSINESS IN SWITZERLAND AND THE EU Only petroleum solvents may be used with normal cleaning procedures 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 allowe Do not dry-clean - no stain removal with solvents Table 91: Dry cleaning labelling symbols (according to ISO 3758) continued Symbols Care process No wet-cleaning possible Wet-cleaning possible Gentle wet-cleaning possible Very gentle wet-cleaning possible OUTERWEAR 2013 168 8. DOING BUSINESS IN SWITZERLAND AND THE EU TUMBLE DRYING The tumble drying symbol (a circle in a square) must be completed by one or two dots for two different temperature levels. Table 92: Tumble drying labelling symbols (according to ISO 3758) 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 BLEACHING Table 93: Bleaching labelling symbols (according to ISO 3758) Symbols Care process The empty triangle means that all bleaching processes are allowed The triangle with the two lines means that only oxygen based bleach and no chloride based bleach is allowed The crossed black triangle means that bleaching is not possible (normal washing powder allowed) OUTERWEAR 2013 169 8. DOING BUSINESS IN SWITZERLAND AND THE EU 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 wash tub 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. 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 baby wear. 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 crop over 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 Oeko-Tex 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 OekoTex 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 82’000 certificates (2009 data). The headquarters of Oeko-Tex International is located in Zürich/Switzerland (www.oeko-tex.com). Obtaining the Oeko-Tex label involves testing for harmful substances according to the criteria which are laid down for each product class. Harmful substances may have negative effect on the human health. Importers from outside the EU have become aware of the significance of this label. The number of the importers who ask for Oeko-Tex is growing continuously. OUTERWEAR 2013 170 8. DOING BUSINESS IN SWITZERLAND AND THE EU 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 biochemical treatment allowed •• Limitation of harmful substances in the end product (pesticides, formaldehyde, heavy metals) •• Differentiated limitations according to textile types and target groups 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 Oeko-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. 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 designation is restricted to one year, after which the product will need to undergo new testing. The Oeko-Tex Standard 100 as well as the Oeko-Tex 100 plus label have achieved a worldwide acceptance with an increased number of registered companies also in Asia and South America. OEKO-TEX STANDARD 100 PLUS The first edition of the Oeko-Tex Standard 100 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. 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 OekoTex 100 label. The Oeko-Tex label can be used to distinguish a textile product from competitors. OUTERWEAR 2013 171 8. DOING BUSINESS IN SWITZERLAND AND THE EU TEXTILE PRODUCTS FOR WHICH LABELLING OR MARKING IS NOT MANDATORY 1. Sleeve-supporting armbands 2. Watch straps of textile materials 3. Labels and badges 4. Stuffed pan-holders of textile materials 5. Coffee cosy covers 6. Tea cosy covers 7. Sleeve protectors 8. Muffs other than in pile fabric 9. Artificial flowers 10. Pin cushions 11. Painted canvas 12. Textile products for base and underlying fabrics and stiffening 13. Old made-up textile products, where explicitly stated to be such 14. Gaiters 15. Packaging, not new and sold as such 16. Fancy goods and saddlery, of textile materials 17. Travel goods of textile materials 18. Hand-embroidered tapestries, finished or unfinished, and materials for their production, including embroidery yarns, sold separately from the canvas and specially presented for use in such tapestries 19. Slide fasteners 20. Buttons and buckles covered with textile materials 21. Book covers of textile materials 22. Toys 23. Textile parts of footwear 24. Table mats having several components and a surface area of not more than 500 cm 2 25. Oven gloves and cloths 26. Egg cosy covers 27. Make-up casesEN 28. Tobacco pouches of textile fabric 29. Spectacle, cigarette and cigar, lighter and comb cases of textile fabric 30. Covers for mobile telephones and portable media players with a surface of not more than 160 cm 2 31. Protective requisites for sports with the exception of gloves 32. Toilet cases 33. Shoe-cleaning cases 34. Funeral products 35. Disposable products, with the exception of wadding 36. Textile products subject to the rules of the European Pharmacopoeia and covered by a reference to those rules, non- disposable bandages for medical and orthopaedic use and orthopaedic textile products in general 37. Textile products including cordage, ropes and string, subject to item 12 of Annex VI, normally intended: a. for use as equipment components in the manufacture and processing of goods; b. for incorporation in machines, installations (e.g. for heating, air conditioning or lighting), domestic and other appliances, vehicles and other means of transport, or for their operation, maintenance or equipment, other than tarpaulin covers and textile motor vehicle accessories sold separately from the vehicle 38. Textile products for protection and safety purposes such as safety belts, parachutes, life-jackets, emergency chutes, fire-fighting devices, bulletproof waistcoats and special protective garments (e.g. protection against fire, chemical substances or other safety hazards) 39. Air-supported structures (e.g. sports halls, exhibition stands or storage facilities), provided that details of the performances and technical specifications of these products are supplied 40. Sails 41. Animal clothing 42. Flags and bannersEN OUTERWEAR 2013 172 8. DOING BUSINESS IN SWITZERLAND AND THE EU TEXTILE PRODUCTS FOR WHICH INCLUSIVE LABELLING IS SUFFICIENT 1. Floor cloths 2. Cleaning cloths 3. Edgings and trimmings 4. Passementerie 5. Belts 6. Braces 7. Suspenders and garters 8. Shoe and boot laces 9. Ribbons 10. Elastic 11. New packaging sold as such 12. Packing string and agricultural twine; string, cordage and ropes other than those falling within item 37 of Annex V (*) 13. Table mats 14. Handkerchiefs 15. Bun nets and hair nets 16. Ties and bow ties for children 17. Bibs, washgloves and face flannels 18. Sewing, mending and embroidery yarns presented for retail sale in small quantities with a net weight of 1 gram or less 19. Tape for curtains and blinds and shuttersEN REGULATION ON DECLARATION OF FUR AND FUR PRODUCTS (REGULATION ON FUR DECLARATION) FOR SWITZERLAND The Swiss Federal Council adopted at its meeting on 7th December 2012 a new Regulation on the declaration of fur and fur products. In order to achieve that the consumers are able to make a conscious decision by buying fur or fur products, fur products must be more specified precisely: The species of origin and the method of purchase should be declared (for example, whether an animal was hunted or from which breed it derives). The new regulation should be a compromise between adequate consumer information and additional burdens for providers. That way the risks associated with the labelling of trade barrier is minimized. This form of labelling is unique in Europe: here the species or animal welfare is important, meanwhile other labelling requirements (for example the Textile labelling Act of the European Union) focus to protect consumers. Therefore skins of domestic species, such as •• Horses •• Cattle •• Pigs •• Sheep •• Goats •• Llamas •• Alpacas are exempt from the labeling requirements. Besides the regular declaration requirement of wild animal fur (mammals only), any fur which comes from dogs, cats and rabbits must be labeled. OUTERWEAR 2013 173 8. DOING BUSINESS IN SWITZERLAND AND THE EU The newly introduced mandatory Swiss declaration has no effect on the import regulations, but only refers to the marking of sale any end consumer product. The marking must be fixed on the product (with stickers or labels) or on its packaging using at least one official language (German, French, Italian). Following products must be labeled: products which are made out of fur or which contains fur, no matter how big is the part on the whole product (including fur trim on hats, jackets and soon). Fur can be made from the skins of different animal or from the skins of same species, but with different origin or purchase. In this case, it is sufficient to declare precisely the three kinds of skins with the largest area. Overview of the Components of the Fur Labelling: Species (Article 3) scientific and zoological name of the species Origin of fur (Article 4) Country in which the animal was hunted or where it was breed and grown ready for slaughter Methodes of purchase (Article 5) - Wild animal hunt: Either “trapping” or “hunting without traps” - Breeding animal: “herd keeping”, “pack keeping”, “caging with natural floors “or “caging with mesh bottoms” Example of a correct Labelling of previous Statement: a) cap with fur trimming: Supplier information Main material: 100% Acrylic Fur trimming: Fur from domestic rabbits, China, Growing animal correct labelling Switzerland correct labelling Germany Main material: 100% Acrylic Main material: 100% Acrylic Fur trimming: Contains non-textiles parts of animal origin domestic rabbits / Oryctolagus cuniculus forma domestica China Growing animal / “caging with mesh bottoms” b) fur jacket: Supplier information Main material: Fur from domestic rabbits, China, Growing animal Lining: 100% Acetate OUTERWEAR 2013 174 correct labelling Switzerland correct labelling Germany Main material: domestic rabbits / Oryctolagus cuniculus forma domestica China Growing animal / “caging with mesh bottoms” Main material: genuine fur (rabbit) Lining: 100% Acetate Lining: 100% Acetate 8. DOING BUSINESS IN SWITZERLAND AND THE EU 8.1.3 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. Many companies are now, before signing any contract with their suppliers checking the fulfilment of the social standards at the production site. The BSCI programme (more details under www.bsci-eu.org) is one organisation that takes a closer look on the social standards of producers. 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 eco-labels (for products, see also eco-labels), 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 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 continuous 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. 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. OUTERWEAR 2013 175 8. DOING BUSINESS IN SWITZERLAND AND THE EU 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. Quality related requirements A quality related requirement is 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 and discuss this matter with your customer. 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. 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. Since 1 June 2009, the prohibition of the use of three flame retardants is laid down in Annex XVII to the EU Regulation (EC) 1907/2006 on the registration, evaluation and authorisation of chemicals (REACH), which is directly applicable in all member states. Until this date, this matter was regulated by means of Directive 76/769/EEC on the marketing and use of certain dangerous substances and preparations and its amendments, which is repealed by the REACH Regulation. The EU legislation prohibits the use of: •• Tri-(2, 3, -dibromopropyl)-phosphate (TRIS) (CAS No1 126-72-7) •• Tris-(aziridinyl)-phosphineoxide (TEPA) (CAS No 5455-55-1) •• Polybromobiphenyles (PBB) (CAS No 59536-65-1) in textile articles intended to come into contact with skin, like garments, underwear and linen. They are also prohibited in Switzerland. OUTERWEAR 2013 176 8. DOING BUSINESS IN SWITZERLAND AND THE EU Nickel in clothing accessories Nickel is a metal that is sometimes used in alloys used for ornaments (such as armlets, bracelets and earrings) and in clothing accessories (such as zippers and buttons). The occurrence of increasing number of cases of people with nickel allergy symptoms has forced the EU to set limits for the nickel content in products coming in contact with the skin. Since 1 June 2009, the restriction on the nickel1 content in certain products is laid down in Annex XVII to the new EU Regulation (EC) 1907/2006 on the registration, evaluation and authorisation of chemicals (REACH), which is directly applicable in all member states. Until this date, this matter was regulated by means of Directive 76/769/EEC on the marketing and use of certain dangerous substances and preparations and its amendments, which will be repealed by REACH. The legislation lays down certain requirements for specific applications which are presented in the next table. Perfluorooctane sulfonates (PFOS) Perfluoroocatane sulfonates (PFOS) are commercially available in the form of salts, derivatives and polymers. PFOSrelated substances are used for providing grease, oil and water resistance to materials such as textiles, carpets, upholstery, leather, apparel, paper and packaging and in general coating. The substances used in these areas are largely PFOS-polymers for fabrics and PFOS-substances for paper treatment and coatings. Other smaller volume uses are in chromium plating, photography, photolithography, fire fighting foams and in hydraulic fluids for aviation. Recent studies have shown that the PFOS are persistent, bio-accumulative and toxic for mammals. PFOS have the potential to spread over large distances and produce adverse effects on the environment. They therefore fulfil the criteria for being considered as persistent organic pollutants (POPs). In order to protect the environment from these substances, legislation has been laid down that sets strict limits for the use and marketing of PFOS and products containing PFOS. Table 94: Maximal content of PFOS permitted Application As a substance or constituent of preparations As semi-finished products or articles, or parts thereof In textiles or other coated materials Max. content permitted < 0.005% by mass < 0.1% by mass <1 μg/m2 of the coated material The ban on the use of PFOS in the production process does not apply to producers from outside EU. Depending on national legislation, it is possible for producers to use PFOS in their country of origin and export their products to the EU. However producers from outside the EU will have to comply with the limits regarding the marketing of PFOS and products containing PFOS mentioned above. REACH and directive 76/769/EEC On 1 June 2007 the EU Regulation (EC) 1907/2006 on Chemicals entered into force. This Regulation concerns a single integrated system for the registration, evaluation and authorisation of chemicals (REACH). The provisions set by this legislation place obligations and restrictions on producers, importers and downstream users of chemicals depending on the properties of the substance and the quantities they handle per year. REACH legislation repeals Directive 76/769/EEC and its requirements are as from June 2009 implemented in Annex XVII of the REACH Regulation. OUTERWEAR 2013 177 8. DOING BUSINESS IN SWITZERLAND AND THE EU 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. 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. 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). OUTERWEAR 2013 178 8. DOING BUSINESS IN SWITZERLAND AND THE EU 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. Other sources of information are the WTO web site (http://www.wto.org), the European Commission (http://europa.eu). 8.1.4 Present trade regulations 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. 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, Caribbean 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. As stated in Resolution 21 (ii) taken at the UNCTAD II Conference in New Delhi in 1968; “… the objectives of the generalized, non-reciprocal, non-discriminatory system of preferences in favour of the developing countries, including special measures in favour of the least advanced among the developing countries, should be: (a) to increase their export earnings; (b) to promote their industrialization; and (c) to accelerate their rates of economic growth.” Under GSP schemes of preference-giving counties, selected products originating in developing countries are granted reduced or zero tariff rates over the MFN rates. The least developed countries (LDCs) receive special and preferential treatment for a wider coverage of products and deeper tariff cuts. The idea of granting developing countries preferential tariff rates in the markets of industrialized countries was originally presented by Raul Prebisch, the first Secretary-General of UNCTAD, at the first UNCTAD conference in 1964. The GSP was adopted at UNCTAD II in New Delhi in 1968. In 1971, the GATT Contracting Parties approved a waiver to Article I of the General Agreement for 10 years in order to authorize the GSP scheme. Later, the Contracting Parties decided to adopt the 1979 Enabling Clause, Decision of the Contracting Parties of 28 November 1979 (26S/203) entitled “Differential and more favourable treatment, reciprocity and fuller participation of developing countries”, creating a permanent waiver to the most-favoured-nation clause to allow preference-giving countries to grant preferential tariff treatment under their respective GSP schemes. There are currently 13 national GSP schemes notified to the UNCTAD secretariat. The following countries grant GSP preferences: Australia, Belarus, Bulgaria, Canada, Estonia, the European Union, Japan, New Zealand, Norway, the Russian Federation, Switzerland, Turkey and the United States of America. Lomé Convention (for ACP countries) The partnership agreement between the 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. OUTERWEAR 2013 179 8. DOING BUSINESS IN SWITZERLAND AND THE EU 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 non-tariff 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 Agreement is also valid for Switzerland: •• Canada •• Chile •• Croatia •• Egypt •• Israel •• Jordan •• South Korea •• Lebanon •• Macedonia •• Mexico •• Morocco •• Palestinian National Authority •• Singapore •• Southern African Customs Union (Botswana, Lesotho, Namibia, Swaziland, South Africa) •• Tunisia •• Turkey Signed agreement 2008, not yet ratified •• Colombia Signed agreement 2009, not yet ratified •• Gulf Co-operation Council (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, United Arab Emirates) Finalised negotiations 2008 •• Peru Currently negotiating agreements •• Algeria •• Hong Kong •• India •• Thailand Declarations on Cooperation •• Albania •• Mercosur (Brazil, Argentina, Uruguay, Paraguay) •• Mongolia •• Serbia •• Ukraine OUTERWEAR 2013 180 8. DOING BUSINESS IN SWITZERLAND AND THE EU 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. Many clothing items are already quota-free, but WTO rules allow importer countries to impose anti-dumping duties if there is evidence that markets are being disrupted by selling below costs. Anti-dumping measures Anti-dumping implies that, under WTO regulations, exporters are expected to sell their products at fair market value, at a price above cost and without imposing higher domestic prices for the same product that would in effect subsidize their lower export prices. In the event of predatory pricing by a particular company or country, the importing country is allowed to impose a duty surcharge on the imported product, to bring the final price up to fair market value. Anti-fraud investigations and actions Besides anti-dumping measures, the EU is stepping up anti-fraud investigations and actions against fraud designed to: •• circumvent trade policy measures, such as anti-dumping measures; •• benefit illegally from preferential treatment such as that under GSP; •• 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 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. 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 is part of the Schengen Area. Further, ‘pan- European 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. OUTERWEAR 2013 181 8. DOING BUSINESS IN SWITZERLAND AND THE EU 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. GSP benefits 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. Scope of preferences 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. 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. 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 Pan- European cumulation system of October 1st, 1998. Therefore, textiles and clothing containing raw materials from EU countries and Norway may also be granted preference. Custom tariff Customs duties Although Switzerland has been a member of the Schengen Area since the end of 2008, it is not part of the European Customs Union. As a result, customs controls remain in place. The most important document for customs clearance is the customs declaration, which must be accompanied by the exporter’s invoice (indicating the weight) and confirmation of origin. A certificate of origin is required if one wishes to benefit from preferential duty rates or if the goods are to be re-exported. Unlike most other countries, Switzerland uses a system of customs clearance based on weight. This specific customs duty is therefore levied on products from non-EU/EFTA countries on the basis of weight. As a result, Swiss customs duties are usually lower than those of other countries. This favours the importation of high-quality technical components, which weigh very little but are extremely valuable. VAT (7.6%) is much lower than in neighbouring countries (Germany: 19%, France: 19.6%, Austria: 20%, Italy: 20%). 8.1.5 Implications after the elimination of the textile quotas 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. The 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. OUTERWEAR 2013 182 9. APPENDIX 9.Appendix 9.1 Associations of trade agents, wholesalers organisations and retail organisations in the countries analysed 9.1.1 Europe 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 9.1.2 France FEDERATION NATIONALE DES ENTREPRISES A COMMERCES MULTIPLES Federation of multiples and department stores FEDERATION NATIONALE DES GRANDS MAGASINS ET DES MAGASINS POPULAIRES National federation of department stores 46, Bd Magenta F - 75010 Paris Tel.: +33 – 1 – 4202 1769 Fax: +33 – 1 – 4206 5209 (no website) 11, rue Saint-Florentin F - 75008 Paris Tel.: +33 – 1 – 42 60 02 Fax: +33 – 1 – 42 60 15 09 (no website) 9.1.3 Germany 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 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 OUTERWEAR 2013 183 9. APPENDIX BUNDESVERBAND DES DEUTSCHEN TEXTILEINZELHANDELS e. V. (BTE) Association of German Textile Retailers BUNDESVERBAND DES DEUTSCHEN VERSANDHANDELS eV Association of German Mail OrderCompanies CENTRALVEREINIGUNG DEUTSCHER WIRTSCHAFTSVERBÄNDE FÜR HANDELSVERMITTLUNG UND VERTRIEB (CDH) National Association of Trade Agents VERBAND DER FERTIGWARENIMPORTEURE (VFI) Association of Non-Food Importers An Lyskirchen 14 D - 50676 Köln Tel.: +49 – 221 – 921 509 – 0 Fax: +49 – 221 – 921 509 – 10 www.bte.de info@bte.de 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 Am Weidenbaum 1 A D - 10117 Berlin Tel.: +49 – 30 – 726 25600 Fax: +49 – 30 – 726 25699 www.cdh.de centralvereinigung@cdh.de Kanalstraße 7 D 22085 Hamburg Tel: +49 40 - 238820-0 Fax: +49 40 - 238820-20 www.vfi-deutschland.de info@vfi-deutschland.de 9.1.4 Italy 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 10850 62 www.cameramoda.it cameramoda@cameramoda.it 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) OUTERWEAR 2013 184 9. APPENDIX FEDERAZIONE MODA ITALIA Italian Fashion Organisation SISTEMA MODA ITALIA (SMI) Association of Italian Textile and Clothing Industry Via Durini, 14 I - 20122 – Milano Tel.: +39 (0) – 2-7601 5212 Fax: +39 (0) – 2-7600 3779 www.federazionemodaitalia.it info@federazionemodaitalia.it Viale Sarca, 223 I - 20126 Milano Tel.: +39 (0) – 2 641191 Fax: +39 (0) – 2 66103667 www.sistemamodaitalia.it info@sistemamodaitalia.it 9.1.5 Denmark DTB Federation of Danish Textile and Clothing Industries Denmark Skohandlerforening trade organization in the fashion industry Birk Centerpark 38 | 7400 Herning Tel.: +45 22 22 04 08 mhi@dmogt.dk Tel.: +45 22 22 04 05 sgj@dmogt.dk www.dmogt.dk/ info@dmogt.dk Langebrogade 5 | 1411 Copenhagen K. Tel.: 33 91 46 07 bm@skohandlerforening.dk www.skohandlerforening.dk/ 9.1.6 Switzerland 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 96 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 OUTERWEAR 2013 185 9. APPENDIX VSIG – VEREINIGUNG DES SCHWEIZER IMPORT- UND GROSSHANDELS Association of Swiss Importers and Wholesalers VSV – VERBAND DES SCHWEIZERISCHEN VERSANDHANDELS Federation of Swiss Mail Order Companies Güterstr. 78 CH - 4010 Basel Tel.: +41-61-228 90 30 Fax: +41-61-228 90 39 www.vsig.ch info@vsig.ch General Wille-Strasse 144 8706 Meilen Tel.: +41-58 - 310 07 17 Fax: +41-58-310 07 18 www.vsv-versandhandel.ch info@vsv-versandhandel.ch 9.1.7 United Kingdom BRITISH AGENTS REGISTER 5A Chelttenham Mount Harrogate, North Yorkshire GB - HG1 1DW Tel.: +44-1423-560608/9 Fax: +44-1423-561204 www.agentsregister.com info@agentsregister.com BRITISH FASHION COUNCIL Somerset House, South Wing Strand, London, WC2R 1LA Tel.: +44 - 20-7759 1999 www.britishfashioncouncil.com info@britishfashioncouncil.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 OUTERWEAR 2013 186 9. APPENDIX 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 BRITISH SHOPS AND STORE ASSOCIATION Ltd. (BSSA) 9.2 INDUSTRY FEDERATIONS IN SWITZERLAND AND EU-COUNTRIES 9.2.1 France UNION FRANCAISE DES INDUSTRIES DE L’HABILLEMENT (UFIH) French Clothing Manufacturers Association UNION DES INDUSTRIES TEXTILES (UIT) Textile Industry Association 8, rue de Montesquieu F - 75001 Paris Tel: + 33 - 1 44 55 66 60 Fax: +33 - 1 44 55 66 66 www.lamodefrancaise.org secretariatufih@lamodefrancaise.org 37/39, rue de Neuilly F - 92110 Clichy Tel.: +33 – 1 – 4756 3100 Fax: +33 – 1 – 4730 2528 www.textile.fr admin@textile.fr 9.2.2 Germany GermanFashion Modeverband Deutschland e.V German Fashion Federation Gesamtverband der deutschen Textil- und Modeindustrie e.V. German Textile and Fashion Industry An Lyskirchen 14 D - 50676 Köln Tel.: +49 – 221 – 7744 – 0 Fax: +49 – 221 – 7744 – 137 www.germanfashion.net info@germanfashion.net Reinhardtstr. 12 -14 10117 Berlin Tel: +49 - 30 726220-0 Fax +49 - 30 726220-44 www.textile-online.de info@textil-mode.de 9.2.3 Italy FEDERTESSILE Textile Industry Federation OUTERWEAR 2013 187 Viale Sarca 223 I - 20126 Milano Tel.: +39 (0) – 2-6610 3440 Fax: 39 (0) – 2-6610 3455 9. APPENDIX 9.2.4 Denmark Confederation of Danish Industry manufacturing, trade and service industry 1787 COPENHAGEN Tel.: +45 3377 3377 di.dk di@di.dk 9.2.5 Switzerland SCHWEIZERISCHER GEWERBEVERBAND Swiss Trade Association SWISSFASHION – GESAMTVERBAND DER SCHWEIZERISCHEN BEKLEIDUNGSINDUSTRIE Swiss Clothing Manufacturers Association Schwarztorstrasse 26 Postfach CH-3001 Bern Tel: +41 31 380 14 14 Fax: +41 31 380 14 15 www.sgv-usam.ch info@sgv.usam.ch Beethovenstrasse 20 CH - 8022 Zürich Tel.: +41-44-289 79 79 Fax: +41-44-289 79 80 www.swisstextiles.ch zuerich@swisstextiles.ch 9.2.6 United Kingdom BRITISH APPAREL & TEXTILE CONFEDERATION THE BRITISH CHAMBERS OF COMMERCE CONFEDERATION OF BRITISH WOOL TEXTILES OUTERWEAR 2013 188 5, Portland Place GB - London W1N 3AA Tel: +44-171-636 7788 Fax: +44-171-636 7515 www.apparel-textiles.co.uk 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 Textile House Red Doles Lane Huddersfield HD2 1YF Tel.: +44-1484 346500 Fax: +44-1484 346501 www.cbwt.co.uk info@cbwt.co.uk 9. APPENDIX 9.3MAJOR EUROPEAN TRADE FAIRS 9.3.1 France FATEX - Paris organised by: PROFATEX SA INTERSELECTION – Paris organized by: Intersélection – Groupe Eurovet PREMIERE VISION – Paris (Textile Fabrics Fair) organised by: Première Vision KID’S FASHION – MODE ENFANTINE Kids Fahion Fairs in Paris and Brussels organized by Kid’s Fashion Mode Enfantine SA/NV SALON DU PRET A PORTER PARIS French association of Prêt à Porter WHO’S NEXT URBAN SHOW 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 Rue de Neuilly F - 92113 Clichy Cedex Tel +33 – 1 – 4756 3232 Fax: +33 – 1 – 4756 3299 www.interselection.net interselection@la-federation.com 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 999 chée d’Alsemberg B - 1180 Brussels Tel.: +32 – 2 – 376 5747 Fax: +32 – 2 – 332 0880 www.kidsfashionfairs.com visitorskids@bff.be 5, rue Caumartin F - 75009 Paris Tel.: +33 – 1 – 4494 7000 Fax: +33 – 1 – 4494 7002/7004 www.pretparis.com info@pretparis.com 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 9.3.2 Germany ISPO – Munich (Active Sportswear) organised by: Messe München GmbH OUTERWEAR 2013 189 Messegelände D - 81823 München Tel.: +49 – 89 – 949 – 11388 Fax: +49 – 89 – 949 – 11389 www.ispo.com ispo@messe-muenchen.de 9. APPENDIX KIND + JUGEND – Cologne organised by: Köln Messe GmbH BREAD AND BUTTER Trade fair for selected brands in Berlin and Barcelona BREAD & butter GmbH Headquarter: MUNICHFABRICSTART Exhibitions GmbH Thomas-Wimmer-Ring 17 80539 München Telefon: +49 (0) 89 45 22 47-0 Telefax: +49 (0) 89 45 22 47-22 Messeplatz 1 D - 50679 Köln Tel.: +49 – 221 – 821 – 0 Fax: +49 – 221 – 821 – 2574 www.koelnmesse.de info@koelnmesse.de 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 VERANSTALTUNGSORT Munich Order Center MOC & Zenith Hall Lilienthalallee 40 & 29 D - 80939 München (Nord) Sonja Ragaller Telefon: +49 (0)152 53664047 E-Mail: sonja@pragaller.de 9.3.3 Italy 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 OUTERWEAR 2013 190 9. APPENDIX Via Faenza 111 I - 50123 Florence Tel.: +39 (0) – 55 – 36931 Fax: +39 (0) – 55 – 3693200 www.pittimmagine.com uomo@bittimmagine.com PITTI UOMO – Florence organised by: Pitti Immagine srl 9.3.4 United Kingdom Tel.: +44-1484-846069 Fax: +44-1484-846232 www.moda-uk.co.uk info@moda-uk.co.uk MODA UK – Birmingham organised by: ITE Moda Ltd. 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 9.4 EUROPEAN TRADE MAGAZINES 9.4.1 France Name of Magazine JOURNAL DU TEXTILE Edition Hennessen SA 61, rue de Malte F - 75541 Paris Cedex 11 Tel.: +33 – 1 – 4357 2189 Fax: +33 – 1 – 4700 0835 www.journaldutextile.com contact@journaldutextile.com OUTERWEAR 2013 191 Publication schedule Circulation Contents Weekly 18’101 Textile and clothing retail 9. APPENDIX 9.4.2 Germany Name of Magazine 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 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 Publication schedule Circulation Contents 2’500 Weekly on Special edition Mondays once per year – 6’700 Textile and specialized retail and industry – Retail and Clothing Addresses 2 times/month 10’000 Trade, sports articles 6 times/year 28’700 Trade, jeans and sportswear TM Fashion Trend Magazine Branche & Business Fachverlag GmbH & Co.KG Königsallee 70 D - 40212 Düsseldorf Tel.: +49 – 211 – 8 3030 Fax: +49 – 211 – 324862 www.tm-fashion-portal.de info@textilmitteilungen.de Weekly 28’000 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 28’200 Textile and clothing trade and industry 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 OUTERWEAR 2013 192 9. APPENDIX 9.4.3 Italy 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 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 4-6 times/year App. 50,000 Sports fashion, retail, industry, consumer Publication schedule Circulation Contents Name of Magazine DONNA COLLEZIONI – UOMO COLLEZIONI – BAMBINI COLLEZIONI Zanfi.editori@mo.nettuno.it 9.4.4 Denmark Name of Magazine Guide - Danish Textile and Clothing Industry Federation of Danish Textile and Clothing Industries Birk Centerpark 38 7400, Herning DENMARK http://www.textile.dk/default.htm OUTERWEAR 2013 193 Annually Fabric, Apparel & Textile 9. APPENDIX Husflid Dansk Husflidsselskab Tyrebakken 11 DK-5300, Kerteminde DENMARK Tel.: +45 () 6332 2096 Fax: +45 () 6332 2097 http://www.husflid.dk/ dansk@husflid.dk fabric textile craftworks handicrafts 9.4.5 Switzerland Name of Magazine Publication schedule Circulation Contents 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 3’100 Sports and leisure wear industry TEXTIL-REVUE Fürstenlandstr. 122 CH - 9001 St. Gallen Tel.: +41 – 71 – 272 77 77 Fax: +41 – 71 – 272 74 49 www.textil-revue.ch redaction@textil-revue.ch Once a month 7’500 Textile and clothing industry 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 OUTERWEAR 2013 194 9. APPENDIX Fashion Trend Forecast (Spring / Summer, Autumn / Winter) Switzerland Global Enterprise Swiss Import Promotion Programme Stampfenbachstrasse 85 8006 Zürich Tel +41 44 365 51 51 Fax +41 44 365 52 02 www.switzerland-ge.com/sippo Fashion -Garments & Accessories, Home Textiles 2 times / year 9.4.6 United Kingdom Publication schedule Circulation Contents 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 20’000 No. 1 of textile publications in GB FW EMAP Fashion Angel House 338-346 Goswell Rd. GB - London EC1V 7QP Tel.: +44 – 20 – 7520 1500 Fax: +44 – 20 – 7520 1501 www.emap.co.uk information@emap.com Weekly 10’000 Retail, industry Name of Magazine 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 OUTERWEAR 2013 195 9. APPENDIX MENSWEAR EMAP Fashion Angel House 338-346 Goswell Rd. GB - London EC1V 7QP Tel.: +44 – 20 – 7520 1500 Fax: +44 – 20 – 7520 1501 www.emap.co.uk clairer@fashion.emap.co.uk 2 times/month 11’000 Retail 9.5 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 Børsen, Slotsholmsgade, DK - 1217 Copenhagen K Tel.: +45 3374 6000 Fax: +45 3374 6080 www.dipo.eu dipp@danskerhverv.com GIZ Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH Dag-Hammerskjöld-Weg 1-5 D - 65726 Eschborn Tel: +49 – 6196 – 79 0 Fax: +49 – 6196 – 79 1115 www.giz.de info@giz.de INTERNATIONAL TRADE CENRE UNCTAD/WTO (ITC) OUTERWEAR 2013 196 Palais des Nations CH - 1211 Geneva 10 Tel : +41 – 22 – 730 0111 Fax : +41 – 22 – 733 4439 www.intracen.org itcreg@intracen.org 9. APPENDIX 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 9.6 IMPORTANT ADDRESSES FOR ENVIRONMENTAL AND SOCIAL ISSUES CBI – CENTRUM TOT BEVORDERING VAN DE IMPORT UIT ONTWIKKELINGSLANDEN Centre for the Promotion of Imports from Developing Countries COMMISSION OF THE EUROPEAN COMMUNITIES FORSCHUNGSINSTITUT HOHENSTEIN (measurement tables and ecological issues) OUTERWEAR 2013 197 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 European wide ecological questions) Rue de la Loi 200 B - 1049 Brussels Tel.: +32 – 2 – 2990344 Fax: +32 – 2 – 2990313 www.europa.eu Schloß Hohenstein D - 74357 Bönningheim Tel.: +49 – 7143 – 2710 Fax: +49 – 7143 – 27151 www.hohenstein.de info@hohenstein.de 9. APPENDIX INSTITUT FRESENIUS GRUPPE (product testing) Im Maisel 14 D - 65232 Taunusstein-Neuhof Tel.: +49 – 6128 – 7440 www.fresenius.com info@fresenius.com 9.6.1 Contact points for the Oeko-ex 100 hallmar DEUTSCHE ZERTIFIZIERUNGSSTELLE ÖKO-TEX Schloß Hohenstein D - 74357 Bönningheim Tel.: +49 – 7143 – 2710 Fax: +49 – 7143 – 27151 www.oeko-tex.com info@oeko-tex.com IFTH Lyon Institut Français du Textile et de l’Habillement Avenue Guy de Collongue 69134 Ecully Cédex France Tel.: +33 472 86 1600 Fax: +33 478 43 3966 www.ifth.org CENTRO TESSILE COTONIERO E ABBIGLIAMENTO S.p.A. AITEX Instituto Tecnológico Textil OUTERWEAR 2013 198 Piazza Sant’ Anna 2 21052 Busto Arsizio VA Italy Tel.: +39 0331 696711 Fax: +39 0331 680056 www.centrocot.it Plaza Emilio Sala 1 03801 Alcoy Spain Tel.: +34 96 554 22 00 Fax: +34 96 554 34 94 www.aitex.es 9. APPENDIX Shirley Technologies Ltd TESTEX Swiss Institute for Textile Testing – International Secretary of the Oeko-Tex Association Unit 12, Westpoint Enterprise Park Clarence Avenue Trafford Park M17 1QS Manchester Tel.: +44 161 869 1610 Fax: +44 161 872 64692 www.shirleytech.co.uk Gotthardstr. 61 CH - 8027 Zürich Tel.: +41 – 1 – 206 42 42 Fax: +41 – 1 – 206 42 30 www.oeko-tex.com info@oeko-tex.com 9.7 SOURCES OF INFORMATION 9.7.1 Europe 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) OUTERWEAR 2013 199 24, rue Montoyer B - 1000 Bruxelles Tel.: +32 – 2 – 285 4892 Fax: +32 – 2 – 230 6054 www.euratex.org info@euratex.org 9. APPENDIX 9.7.2 France 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 9.7.3 Germany 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 9.7.4 Italy INSTITUTO NAZIONALE DI STATISTICA (ISTAT) (National Statistical Office) OUTERWEAR 2013 200 Via Cesare Balbo, 16 I - 00100 Roma Tel.: +39 (0) – 6-46 73 1 www.istat.it info@istat.it 9. APPENDIX 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 9.7.5 Denmark Statistics Denmark Institut for Dansk Detailhandel Department of Danish Retail Danish Fashion Institute Copenhagen OUTERWEAR 2013 201 Sejroegade 11 2100 Copenhagen Oe Tel.: +45 39 17 39 17 Fax: +45 39 17 39 99 http://www.dst.dk/ dst@dst.dk Business Academy Dania Minervavej 63 8960 Randers SE Tel.: +45 (0) 87 11 4400 http://www.danskdetailhandel.dk/ info@danskdetailhandel.dk HC Andersens Boulevard 27, 1553 Copenhagen V Tel: +45 70203068 info@danishfashioninstitute.dk http://danishfashioninstitute.ch/wp/ 9. APPENDIX 9.7.6 Switzerland SARTEX (Swiss Association for Textile Marking) SWISS ASSOCIATION FOR STANDARDIZATION (SNV) TESTEX – Schweizer Textilprüfinstitut (Swiss Institute for Textile Testing) TMC - TEXTIL UND MODE CENTER ZÜRICH Fashion Center OUTERWEAR 2013 202 Beethovenstr. 20 CH - 8022 Zürich Tel.: +41 – 44 – 289 79 49 Fax: +41 – 44 – 289 79 38 www.sartex.ch Bürglistr. 29 CH - 8400 Winterthur Tel.: +41-52-224 54 54 Fax: +41-52-224 54 74 www.snv.ch info@snv.ch Gotthardstr. 61 CH - 8027 Zürich Tel.: +41 – 44- 206 42 42 Fax: +41 – 44 – 206 42 30 www.testex.ch contact@testex.ch Thurgauerstrasse 117 CH - 8152 Glattbrugg Tel.: +41-43-211 59 20 Fax: +41-43-211 59 29 www.tmc.ch contact@tmc.ch 9. APPENDIX 9.7.7 United Kingdom EIU - ECONOMIST INTELLIGENCE UNIT 26 Red Lion Square London WC1R 4HQ United Kingdom Tel: + 44 - 20 7576 8181 Fax: + 44 - 20 7576 8476 www.eiu.com london@eiu.com TAYLOR NELSON SOFRES plc. Market Research 222 Grays Inn Road, London WC1X 8HB www.tnsofres.com research@tnsofres.com TEXTILE OUTLOOK INTERNATIONAL OUTERWEAR 2013 203 Alderley House Alderley Road Wilmslow SK9 1AT United Kingdom Tel.: +44 – 1625 – 536136 Fax: +44 – 1625 – 536137 www.textilesintelligence.com subscriptions@textilesintelligence. Com Contact www.switzerland-ge.com/sippo import.info@ switzerland-ge.com T +41 44 365 51 51 Switzerland Global Enterprise Stampfenbachstrasse 85 CH-8006 Zürich T +41 44 365 51 51 www.switzerland-ge.com Copyright@ Switzerland Global Enterprise June 2013. All rights reserved.