Page 1

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 ZĂźrich 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.

1.2 PRODUCT GROUPS ANALYSED This market survey covers knitted and woven outerwear and sportswear for men, women and children. It must be considered that in the official statistics no difference is made between adults and children, or in end use, such as conventional, casual or leisure clothing. In the analysis of the clothing imports, the differentiation between 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

1.3 MARKET 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

1.5 MARKETING 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

2.6 LIST 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

3.6 LIST 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 yearâ&#x20AC;&#x2122;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

4.6 LIST 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

5.5 DENMARK 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

5.6 LIST 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 yearsâ&#x20AC;&#x2122; trend) on the total sales tendencies and clothing from 1970 to 2011. Figure 7: Sales volume index for total sales and clothing sales, 1970 â&#x20AC;&#x201C; 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%

Â

Total 10 countries

4395

4721

4603

-2.50%

0.42%

Â

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

6.6 LIST 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 â&#x201A;Ź 31 million in 2010, and Indonesia, with imports valuing â&#x201A;Ź 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

7.6 LIST 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 8.1 MARKET 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 (60째 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 Îźg/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.â&#x20AC;&#x201E; 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 exporterâ&#x20AC;&#x2122;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

9.3 MAJOR 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 Z端rich T +41 44 365 51 51 www.switzerland-ge.com

Copyright@ Switzerland Global Enterprise June 2013. All rights reserved.

Outerwear update final 2013  

Overview and Marketing Guide on Switzerland and the Major Markets in the European Union

Read more
Read more
Similar to
Popular now
Just for you