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THE OUTERWEAR MARKET IN THE EU

THE OUTERWEAR MARKET


IN THE EU
September 2008

CONTENTS
1 CONSUMPTION ..................................................................................................... 5
2 PRODUCTION ..................................................................................................... 12
3 TRADE CHANNELS FOR MARKET ENTRY .............................................................. 16
4 TRADE: IMPORTS AND EXPORTS ........................................................................ 22
5 PRICE DEVELOPMENTS ....................................................................................... 32
6 MARKET ACCESS REQUIREMENTS ....................................................................... 35
7 OPPORTUNITY OR THREAT ? .............................................................................. 40

APPENDIX A PRODUCT CHARACTERISTICS............................................................ 42


APPENDIX B INTRODUCTION TO THE EU MARKET ................................................. 54
APPENDIX C LIST OF DEVELOPING COUNTRIES .................................................... 55

This survey was compiled for CBI by Fashion Research & Trends

Disclaimer CBI market information tools: http://www.cbi.eu/disclaimer

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THE OUTERWEAR MARKET IN THE EU

REPORT SUMMARY
This survey profiles the EU market for outerwear and includes knitted and woven outerwear for
men, women and children, leather garments and clothing accessories.

Market size
• The EU market for outerwear amounted to € 260 billion in 2007. Consumption of outerwear
grew 8.1% during the whole period 2003-2007, of which 2.6% in 2006-2007.
• 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, UK, Italy, France and Spain) account for 75% of EU outerwear
consumption.
• Consumers in the UK and Austria are the biggest 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.
• 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.

Production
• Output in the EU clothing industry decreased around 1% in 2007 while turnover increased
by 2% compared to 2006. The contrast with the net decline in production shows that the
relocation movement is continuing (the turnovers include the invoicing linked to the
relocated units).
• The number of employees in the EU apparel sector fell by 6.4% in 2007 to 1.0 million, of
which around a third is active in the knitting sector. The number of enterprises decreased
too.
• Italy is the dominant clothing producer in the EU accounting for 29% of total EU production,
followed by France, Germany and Spain.
• Most of the EU manufacturers have developed an outsourcing policy.

Imports
• The EU imported 4.8 million tonnes of outerwear with a value of € 90.0 billion in 2007, of
which 51% came from developing countries (DCs).
• The average import price grew 1.4% in the period 2003-2005 and fell 4.7% in the period
2005-2007, of which 2.9% in 2007 compared to 2006.
• Germany remained the leading importer with an import share of 20% in terms of value.
Germany was followed by the UK, France, Italy, Spain, Belgium and The Netherlands.
• Although some sensitive categories still being under quota, China continued, by far, to
benefit most in 2007, before Turkey, Germany, Italy and Bangladesh. Total imports from
China increased 26% in the period 2005-2007 to an import share of 20% in 2007 or
otherwise expressed: 37% of EU outerwear imports from outside the EU came from China.
Quotas on EU imports of several outerwear items from China came to an end on December
31, 2007.
• The role of DCs in EU imports increased strongly: from 44% in 2003 to 51% of total EU
imports in 2007. This percentage was significantly higher in the following product groups:
T-shirts, babies’ garments, woven outdoor coats and jackets, woven skirts, woven shirts
and blouses and leather garments. Lower for knitted jerseys, pullovers etc. and sportswear
and woven products like suits, indoor jackets and dresses. The share of DCs in EU imports
of all woven products increased. Two thirds of total imports of garments for babies came
from DCs, against 39% of total imported woven indoor jackets.

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THE OUTERWEAR MARKET IN THE EU

Exports
• The EU exported 1.8 billion tonnes of outerwear with a value of € 61.6 billion in 2007,
representing an annual increase in value of 3.9% in 2003-2007. A slightly decreasing share
of 24% went to countries outside the EU, mainly Switzerland, the USA, Russia, Japan, Hong
Kong and Norway.
• The leading EU exporter of outerwear remained Italy (22% of total exported value),
followed by Germany, France and Belgium.

Trade structure
• 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.

Opportunities for developing country exporters


• The considerable decrease of production in the major EU countries has led to a further
sourcing of products in low-cost countries and, probably, of products with a higher design
content. Besides the traditional lower range market segment, the largest middle range
market segment may also offer good opportunities for exporters in DCs.
• Importers in the major EU countries have built up a comparative advantage by specialising
themselves in design and other functions, like preparation of samples, logistics, marketing
etc., while simple production operations take place increasingly in other countries. As time
goes by, even more of the first mentioned functions are leaving these EU countries too.
• The focus on casual and leisurewear will be continued for the coming years, but to a much
smaller degree. Besides this trend, there is a tendency to use more natural fibres, mainly
cotton and blends with cotton, at the expense of man-made fibres.
• Caused by economic developments, many consumers on lower incomes will continue to seek
low priced clothes.
• It should be noted that exporters in DCs will be faced with demands for high quality and
environmentally friendly products.

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THE OUTERWEAR MARKET IN THE EU

Introduction

This CBI market survey profiles the outerwear market in the EU. The emphasis of this survey
lies on those products, which are of importance to developing country suppliers. The role of,
and opportunities for, developing countries (DCs) are highlighted.

The broad definition of outerwear means that, in addition to this report, the CBI market
surveys 'Bodywear’ (covering underwear, nightwear, swimwear and hosiery) and ‘Personal
Protective Equipment’ (including workwear) facilitate a complete view of all types of clothing
made of textiles.

Product groups
The survey covers the product groups:
• Knitted and woven outerwear: coats and raincoats; outdoor jackets (anoraks etc.); suits
and ensembles; indoor jackets; dresses; skirts; jeans and other trousers; shirts; jerseys,
polo- and sweatshirts etc.; T-shirts and babies’ garments.
• Knitted and woven clothing accessories: gloves, mittens and mitts; scarves, mufflers, man-
tillas, veils etc.; ties, bow ties and cravats.
• Active sportswear: track suits and jogging suits; sports dresses, sports skirts and sports
trousers, for instance footless maillots/leggings, cyclist pants and special sports suits, for
instance surf suits, sail suits, skiwear, gymnastics and fitness/aerobics suits. Please note
that active sportswear does not include swimwear in this survey.
• Leather garments include mainly jackets and coats, besides other garments, like trousers,
skirts, shirts, waistcoats, dresses and body warmers.

Besides this product classification, used for trade statistics, the classification (based on
demographical criteria) outerwear for women, men and children is used for consumption
statistics.
For detailed information on the selected product groups please consult appendix A. More
information about the EU can be found in appendix B.

In this survey, EU means the EU-27 unless otherwise indicated. Bulgaria and Romania joined
the EU on January 1, 2007.

CBI market surveys covering the market in specific EU member states, specific product group
(s) or documents on market access requirements can be downloaded from the CBI website. For
information on how to make optimal use of the CBI market surveys and other CBI market
information, please consult ‘From survey to success - Guidelines for exporting outerwear to the
EU’. All information can be downloaded from http://www.cbi.eu/marketinfo, go to ‘Search CBI
database’ and select your market sector and the EU.

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THE OUTERWEAR MARKET IN THE EU

1 Consumption
1.1 Market size
Consumption of outerwear in the EU followed an annual growth of 2.0% during the period
2003-2007 and reached € 260 billion in 2007, which was 88% of total clothing consumption.
Germany is still the most important country in clothing consumption in the EU, despite
decreases in the period 2001-2004, followed by a slight recovery in the years 2005-2007. The
difference between Germany and the UK and Italy has become smaller again. Five countries
(Germany, UK, Italy, France and Spain) account for 75% of EU outerwear consumption.

Clothing has not been one of the strongest performers in the last few years, whereas
household related sectors have done better.

Table 1.1 Outerwear consumption in the EU countries, 2003-2009, in € million


2003 2005 2007 Annual change 2009 Per capita
2003-2007 forecasts 2007- in €
Germany 50,548 49,915 50,863 +0.2% 51,100 618
UK 40,804 43,845 46,152 +3.2% 47,000 760
Italy 38,724 39,320 41,115 +1.5% 43,000 698
France 33,351 34,420 35,179 +1.4% 36,500 576
Spain 18,190 19,268 20,544 +3.2% 20,900 462
Netherlands 9,075 9,023 9,456 +1.0% 9,800 578
Belgium 6,712 6,972 7,219 +1.9% 7,450 683
Austria 5,846 5,918 6,132 +1.2% 6,240 737
Sweden 5,204 5,602 6,068 +4.0% 6,480 666
Greece 5,198 5,692 5,891 +3.3% 6,170 527
Poland 5,368 5,217 5,038 -1.5% 5,150 132
Portugal 4,136 4,400 4,604 +2.8% 4,900 434
Denmark 3,039 3,408 3,694 +5.4% 3,950 678
Romania 2,572 2,922 3,210 +6.2% 3,500 149
Finland 2,382 2,668 2,992 +6.1% 3,140 567
Ireland 2,488 2,579 2,732 +2.5% 2,700 636
Czech Rep. 1,770 1,952 2,237 +6.6% 2,530 217
Hungary 1,488 1,629 1,738 +4.2% 1,840 173
Bulgaria 809 963 1,088 +8.7% 1,270 143
Slovakia 617 689 809 +7.8% 880 150
Slovenia 601 639 744 +5.9% 820 370
Lithuania 370 511 687 +21.5% 770 204
Latvia 233 324 515 +30.2% 580 226
Estonia 231 284 387 +16.9% 480 289
Luxembourg 320 329 353 +2.6% 370 728
Cyprus 301 331 344 +3.6% 360 402
Malta 149 156 165 +2.7% 170 406
EU 240,526 248,976 259,956 +2.0% 268,050 528
Sources: Euromonitor, Retail Intelligence and several national statistics

Consumers in the UK and Austria are the biggest spenders on outerwear in the EU. Looking at
the other major EU countries, consumption per capita in Italy was the highest, followed by
Belgium and Germany. Spanish consumption was less than the EU average consumption of
outerwear. Per capita consumption in the ten EU member states, which joined the EU in 2004,
is in the range of € 132 (Poland) to € 406 (Malta). The two most recent members of the EU,
Romania and Bulgaria account for € 149 and € 143 per capita.

There have been significant differences between the rates of growth of different member
states. For example, the highest growth rates have been enjoyed by the three Baltic States,
Latvia, Lithuania and Estonia. Conversely, below average, or in the case of Poland, negative
growth has been experienced over the period by several of the major EU member states.

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THE OUTERWEAR MARKET IN THE EU

Women’s outerwear is the leading sector in all markets surveyed. In 2007, the share of the
total value of women’s outerwear sales in the major EU countries ranged from 51% in France
to 57% in Germany. Women are considered to be more sensitive to fashion and buy more
impulsively than men. In many EU countries the demand for formal wear is declining in favour
of casual and leisurewear, which implies higher increasing sales in terms of volume rather than
in terms of value.

Forecasts
Forecasts (in real terms, after correction of inflation) on consumer expenditure on outerwear
are € 268.0 billion in 2009, which is 3.1% higher than in 2007 or otherwise an annual growth
of 1.5%.

A more robust growth is expected for several new EU members, while expectations for other
EU countries (including the major countries) are moderately optimistic.

In terms of future potential, it is clear that the new EU member states, in particular Slovakia,
the Czech Republic, Slovenia and Poland, offer greater scope for market growth as incomes and
spending patterns approach European norms, although this may still be some years away. Also
of interest are Portugal and Spain, which have surprisingly low levels of outerwear spending per
capita. These forecasts are based on historic data, and therefore must be viewed as no more
than an indication of a broad trend.

1.2 Market segmentation


The general criteria for market segmentation of outerwear are:
• by age – babies’ and children’s wear and adults (15+), the latter often being divided into
age groups in several ways, for instance 15-24, 25-49, 50-64 and 65+
• by gender - women/girls and men/boys
• by type of product and type of activity resulting in specific clothing behaviour, like formal,
casual, leisure and active sports dress
• by attitude towards fashion and life style; and,
• by product/quality ratio.

Other criteria are based on special events (weddings, parties, communion etc. in which cases
dress can be considered as formal wear) or other circumstances, like maternity wear.

Segmentation by demographic factors


The size and age structure of the population is one of the basic determinants of how much will
be spent on clothing. The composition by age groups of the population in the EU countries will
be discussed in the market surveys on outerwear for specific EU countries. Although this may
appear to be a rough method for categorising the market, it is interesting because:
• generally speaking, different age categories have different clothing behaviour, and
• developments within the various age categories can be followed, by comparing results with
projections.

The EU population is characterised by a declining birth rate and an ageing population. The
category below 15 years has decreased while the category 50 and older has increased
substantially. In 2007, 15.8% of the EU population was younger than 15 years and 16.9%
older than 64.

Table 1.2 Population trends in the EU by age and gender, 2003-2009, in million
2003 2005 2007 2009
forecasts
Total 484.8 489.1 492.7 495.4
Males
0-14 41.1 40.4 39.8 39.5
15-64 163.1 164.7 166.0 166.8
65+ 32.0 33.4 34.6 35.6
Total males 236.2 238.5 240.4 241.9

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THE OUTERWEAR MARKET IN THE EU

2003 2005 2007 2009


forecasts
Females
0-14 39.1 38.4 37.9 37.6
15-64 162.9 164.3 165.5 166.1
65+ 46.6 47.9 48.9 49.8
Total females 248.6 250.6 252.3 253.5
Sources: Eurostat and Euromonitor

Table 1.2 illustrates that population growth is expected to slow down in the EU. Another
important demographic development, not shown in this table, is the strong increase of one-
and two-person households. The persons in such households do not have many household or
family obligations, so they have a lot of leisure time. Besides that many of these households
have rather high disposable incomes. Both factors are stimulating clothing consumption.

Clothing buying process by age groups


Children (0-15)
The buyer of children’s wear, certainly for the younger age groups, is an adult, mostly the
mother. Her fashion consciousness and general buying behaviour have a long-lasting
dominating influence on the purchase of clothes for the child. The social position of the child's
family also plays a role in these decisions. The trend of more working women, smaller family
sizes and older parenthood mean that, in many households, there is a higher level of per capita
spending on children than in any previous period. This segment is helped by indulgent gift
buying, especially for newborn babies, as clothes are a popular gift.

As they grow up, boys and girls are increasingly vocal as to how they want to be dressed. This
development takes place in phases, with varying influences from the outside. Fashion
awareness of clothing is increasing among the younger children. Almost all designers and top
fashion retailers launch their own children’s couture. The main buying force comes from 9-14
year-olds, who are more financially independent (i.e. they have a clothing allowance) and
fashion-conscious, and are heavily influenced by pop celebrities and their favourite sport icons.

Men (15+)
In terms of consumer targeting, the market for men (15+) can be divided into two broad
groups: younger buyers, who tend to be more concerned with image and fashion, and older
buyers, who are concerned more with quality, value, practicality and durability. However, the
dividing line between these two groups in terms of age is not easy to draw. Fashion is
important to many consumers in their 30 to 40s and quality has become an increasingly
important criterion for younger consumers.

Women (15+)
The women’s clothing market is generally fast-moving and volatile, particularly so amongst the
crucial younger age groups for whom fashion is the key driver. However, unlike men’s
expenditure, spending by women on clothing increases to the age around 60. This is probably
the result of women’s sustained purchasing of higher-priced and better quality clothing in
middle life, which boosts value rather than volume growth in the market. The women’s wear
market is not only much larger than the men’s wear market, but is also more dynamic and
enjoys growth in most of the EU countries. Fundamentally, women spend far more on clothes
than men do and they spend more consistently throughout their lives.

Segmentation by type of product and type of activity


The outerwear market can be divided into several segments based on type of product
combined with type of activity, resulting in a specific clothing behaviour. The following
categories can be distinguished: formal clothing, casual wear, basic leisurewear and active
sportswear.

The active sports segment in the EU influences the leisure and casual segments. ‘Smart casual’
will be further influenced by the workplace. This can be illustrated by the success of cotton

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THE OUTERWEAR MARKET IN THE EU

trousers including the renewed popularity of jeans. Increased demand for knitted products like
T-shirts, sweaters, jumpers, pullovers, vests etc. illustrates the popularity of casual wear, too.
The children’s clothing market is in some ways as much influenced by fashion as is the market
for adult clothing. For boys and girls, there has been a switch over the past several years
towards purchasing sport and sport leisure type wear as casual clothing, with the majority of
children’s wear classed as casual.

Segmentation by attitude towards fashion and life style


Elements of fashion are: colour, design, fabric, exclusivity and style. The present consumer in
Western Europe wants to be seen as an individual with his/her own life style. Especially in the
higher priced fashion segment, clothing products have an individualising function. Therefore
the demand by the consumer has become more specific. Another new trend is that people buy
different clothes for different activities and occasions.

Consumer behaviour is unpredictable and influenced by short term demands. The consequence
of the above is that the consumer expects retailers to present a clear image. In order to meet
these consumer demands, many clothing stores are going for upgrading and many suppliers
are likely to broaden their non-clothing product ranges, in particular by adding accessories,
shoes, sunglasses and similar products. On the other side, value retailers and clothing
discounters start or maintain their operating at a low-price level. This will be discussed in more
detail below and in chapter 3 ‘Trade channels for market entry’ of this survey.

Segmentation by price/quality ratio


Quality is an essential requirement for the higher segments of the clothing market. There are
several aspects to it: quality must be reliable and is closely connected with service. Quality
requirements demand that the clothing fits well and is comfortable to wear, for example the
choice of the yarns or fabrics used.

The demand for higher quality and more expensive products has increased in recent years,
besides an even more important change in demand: the price-conscious consumer looking for
fashionable trends as well as good quality materials. Value for money is still the most important
purchase criterion for most consumers.

The major purchase criteria as based on several segmentation criteria, like segmentation by
attitude towards fashion and by price/quality ratio as well as the consequences for the store
choices, are given in the overviews below.
The low-to-middle price segment, with a market share of 40%, continues to dominate. This and
more information about the retail and other distribution channels will be discussed in more detail
in chapter 3 ‘Trade channels for market entry’.

PRODUCT CRITERIA Examples of FASHION CRITERIA


BRAND NAMES
High price luxury Limited collections, made with Dolce & Gabbana, High fashionable
segment special care; sometimes Prada, Girbaud, collections.
handmade, high quality Georgio Armani, Exclusively designed
materials Donna Karan materials and artworks
Designer/ brand name stands Trend-setting in fashion
for exclusivity and fashionable
Market share 5% clothes
Upper middle Collections are produced after Max Mara, Large variety of styles
price segment pre-sale; extra attention to Hugo Boss, and of materials
fitting and accessories Blumarine, Styling and fitting are
Brand-name goods; good Marni, Strenesse, vitally important
quality materials; broad range Marc Cain Product in line with the
Market share 15% in design latest fashion trends
Middle price Collections are produced after French Connection, Good fitting is important
segment pre-sale; good to medium In-wear, Benetton, Recognisable by brand-
quality materials S. Oliver, Esprit, name visible on outside

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THE OUTERWEAR MARKET IN THE EU

PRODUCT CRITERIA Examples of FASHION CRITERIA


BRAND NAMES
Trend-following or classic Mexx , Jackpot
assortment; brand-name
Market share 30% goods
Low to middle Produced in larger quantities Private labels, like Collections with a view
price segment to lower the price; basic C&A, Promod, WE, to current fashions
styles, less changes to Marks & Spencer,
patterns, basic fitting Hema, Etam,
Medium quality Vögele
materials/lower fashionable
element
Produced in large quantities to Private labels, like High fashionable, close
lower the price; less attention Hennes & Mauritz, to trends
to fitting and patterns Zara, Mango,
Market share 40% Basic quality/high fashionable Topshop
Low or very low Basic or low quality No brands Standard products
price segment Special sales/ offers without particular
Inexpensive products fashion requirements
Market share 10% Produced in large quantities

STORE CHOICES PROMOTIONS PRICE CRITERIA

High price luxury Designer stores Promotion by catwalk Price is less, or not,
segment Special departments in shows and fashion important
department stores magazines
Exclusive retail stores
Upper middle Independent speciality Advertising in fashion Acceptance of high prices
price segment shops magazines for fashionable collections
Manufacturer’s direct and consumer brands
stores
Department stores
Middle price Independent speciality Advertising in lifestyle Price thresholds must be
segment shops and fashion magazines observed
Department stores
Home shopping companies
Low to middle Clothing multiples Advertising in Price important
price segment Variety stores lifestyle magazines,
RTV, newspapers,
billboards and
door-to-door leaflets
Clothing multiples Advertising in Price important
Variety stores lifestyle magazines,
Value retailers billboards
Low or very low Discounters Advertising in Special (low) prices
price segment Super- and hyper-markets newspapers and door-
Street markets to-door leaflets

Source: Fashion & Vision (2007)

More information about price levels and price structures will be discussed in chapters 3 and 5.

1.3 Consumption patterns and trends


Demand for clothing is determined by factors like demographics and life styles, as discussed
above. Other factors are: income and spending power, priorities in consumer choices,
developments in fashion, brands and climate.

Brands
In a world of change and insecurity, brands provide a basis for identity. All humans face a
fundamental conflict between wanting to be different and needing to belong. Belonging to a group
or a community of some kind provides us with an identity which says something about how we
perceive ourselves and how others should perceive us. Brands are important because:

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THE OUTERWEAR MARKET IN THE EU

• In the purchase decision, they give consumers confidence about the product that goes
beyond pure quality assurance. Consumers know they will not be disappointed and that they
can be sure of a product’s durability and workmanship.
• Only some brand attributes are related to the product. Consumers feel it is important that a
brand should not only guarantee quality but should also project the image which relates to
their life style.
• In Europe, the majority of consumers clearly look to well known brands for better quality
and claim that they will pay more for a brand that they like and which fits their image and
life style, which also will be underlined by advertising and marketing.
• Consumers do not distinguish between supplier and retailer brands. Either can reach the
consumer with a branded proposition. Suppliers are opening their own stores (such as Nike,
Levi’s, Mexx, Boss etc.); retailers are offering their own products (such as Zara, C&A, H&M
etc.).
• A polarisation of brand leadership also appears likely in Europe. Retailers in Germany, UK,
France and other EU countries are clearly aiming to replace manufacturer brands with their
own identities in the middle market, leaving the upper market to designer brands.

Climate
Generally spoken, weather has an impact on the timing of expenditure, which tends to be
highly seasonal. Unexpected weather changes influence consumers in their purchasing
decisions. Consumers in warm, dry climates tend to purchase less durable, cheaper clothing,
which influences the share of clothing expenditure. Because of the warmer climate in Southern
Europe, the difference in seasons is limited.

Owing to its cold and wet winters, a comparatively high proportion in value is spent on heavy
garments such as winter coats and jackets in Nordic countries (like Sweden and Finland),
Germany and Austria. Companies intending to export clothes to these countries should be
aware of the temperate climate, which requires casual garments which are comfortable, robust
and preferably wind- and waterproof.

Trends
• 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.
• Younger people are more and more interested in brand name clothing, especially in casual
and leisure wear (street wear). Influence by media such as Internet, (fashion) magazines,
and TV inspires youth to follow fashion trends and they are willing to spend more for
(mainly) European brands. Consumers also combine a high-priced luxury product with a
cheap private label product to lower the costs.
• The children’s wear market is increasingly driven by fashion, with children becoming ‘older
younger’ and with older girls tending to buy young adult designer wear. Several women’s
brands offer the same garments in smaller sizes for girls.
• Babies’ wear is still classic and follows the trends of adult clothing to a lesser degree.
Newborn collections are mainly plain or have childlike decorations and are less influenced by
the casual trends as seen in adult fashion.
• A stronger fashionability across the retail section will be achieved by a wider distribution
and the appeal of designer labels and exclusive collections. Some well-known examples of
this are Karl Lagerfeld and Stella Mc Cartney designing special collections for H&M.
• In most of the major EU countries, people have become larger in length and width, which is
valid for men and women, as well as in the younger age groups.
• Decreasing brand loyalty; consumers can combine a high-priced luxury product with a
cheap private label product.
• Increasing individualisation; consumers are more difficult to control and also less
predictable. The trends are changing at a greater speed and this makes segmentation of
the market difficult. However, mass fashion will still exist within different subcultures.

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THE OUTERWEAR MARKET IN THE EU

For current and detailed fashion information on colours and styles, we refer to CBI Fashion
Forecasts.

1.4 Opportunities and threats

The same development or trend can be an opportunity for one exporter and a threat to
another. Exporters should therefore analyse if the developments and trends discussed in
this survey provide opportunities or threats. The outcome of this analysis depends on each
exporter’s specific circumstances.

+ Expectations for consumer expenditure on outerwear for the period 2008-2010 are
moderately optimistic in the major EU countries:
- the number of garments purchased per capita will continue to rise but prices will not
follow this growth rate;
- continuing interest in more fashionable outerwear;
- demographic developments, society has become more multi-ethnic and the average age is
increasing. This will lead to new demands and consumer behaviour. The birth rate will
decrease, which will moderate the growth of the babies’ wear market.
+ Experts forecast that clothing expenditure in several of the new EU member states will
continue to see robust growth in the period to 2010:
- boosted by the entry of more foreign, particularly European, formula (or fascia) into the
market, consumers will become more aspiring and ‘western’ in their outlook as prosperity
increases and foreign investment in the country grows;
- popularity of second-hand clothing declined in favour of buying clothing at hyper- and
supermarkets and from home-shopping companies.
+ The focus on casual and leisurewear will be continued for the coming years, but to a much
smaller degree. Besides this trend, there is a tendency to more natural fibres, mainly
cotton and blends with cotton at the expense of man-made fibres.
± 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.
± Caused by economic developments, many consumers on lower incomes will continue to seek
low-priced clothes. On the other hand, the size of the market and the polarisation in
incomes offer huge markets for quality and convenience, designer labels, (global) sports
brands etc.
± It should be noted that exporters in DCs will be faced with demands for high quality and
environmentally friendly products.

1.5 Useful sources

• Euromonitor publications - http://www.euromonitor.com


• http://www.fashion.about.com/cs/tipsadvice/a/allaboutfit
• http://europa.eu.int/comm/enterprise/textile/index_en.htm

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Page 11 of 56
THE OUTERWEAR MARKET IN THE EU

2 Production
2.1 Size of production
Based on turnover of the EU clothing industry as given in table 2.1., turnover in outerwear can
be estimated at about € 80 billion in 2007, which was 0.6% higher than in 2006.

Developments in clothing production by the individual EU member states were not available at
the time of compiling this survey, for which reason table 2.2 covers the period 2003-2006.

Table 2.1 EU clothing production structure, 2003-2007


2003 2005 2007 Annual change
estimates in %, 2003-2007
Turnover (€ million) 88,213 83,599 84,660 -1.1%
Total employment ('000) 1,286 1,113 1,004 -5.5%
Number of companies 114,692 102,421 94,866 -4.3%
Investment (€ million) 1,281 1,568 1,620 +6.6%

Turnover/employee 76,912 75,106 77,360 :


Investment/turnover 1.5% 1.9% 2.1 :
Employee/company 11.2 10.9 10.6 :
Source: Euratex (2008) and industry estimates

Output in the EU clothing industry decreased around 1% in 2007 while turnover increased by
2% compared to 2006. 2007 was the second positive year in turnover terms. Even though an
EU company lowers its production, it can still achieve a higher turnover through relocating
some of its manufacturing to low cost countries. The turnovers will then include the invoicing
linked to the relocation units.

The number of employees in the apparel sector fell by 6.4% in 2007 to 1.0 million, of which
around a third is active in the knitting sector. The number of enterprises decreased, too. The
EU clothing industry is dominated by a large number of small and medium-sized enterprises;
the average company had 11 employees in 2007.

Table 2.2 Indices of clothing production in the EU countries, 2003-2006 (2000=100)


2003 2005 2006 Annual change Share in EU
2003-2006 turnover 2006
Italy 92.6 81.1 83.7 -3.2% 29.3%
France 54.5 34.7 33.0 -13.1% 15.0%
Germany 70.8 62.0 53.3 -8.2% 14.0%
Spain 70.3 62.3 63.0 -3.5% 8.8%
UK 76.8 67.5 68.9 -3.4% 8.7%
Denmark 61.3 60.1 72.5 +6.1% 4.1%
Portugal 89.9 73.8 72.9 -6.3% 3.6%
Romania 125.0 99.9 91.1 -9.0% 2.7%
Belgium 63.0 52.1 51.9 -5.9% 2.6%
Poland 88.9 75.4 78.2 -4.0% 1.8%
Bulgaria 173.6 190.7 209.0 +6.8% 1.5%
Netherlands 82.0 82.8 87.8 +2.4% 1.3%
Austria 87.6 81.5 87.4 -0.1% 1.2%
Greece 87.3 70.4 61.3 -9.9% 1.0%
Hungary 104.5 82.7 91.9 -4.0% 0.9%
Lithuania 118.5 99.0 100.5 -5.1% 0.7%
Finland 86.1 75.7 62.9 -9.0% 0.7%
Czech Rep. 96.2 97.3 77.8 -6.4% 0.6%
Slovakia 103.3 87.8 121.2 +5.8% 0.4%
Slovenia 77.8 69.5 65.0 -5.5% 0.3%
Latvia 97.6 99.6 91.2 -2.2% 0.2%
Estonia 114.0 103.6 107.9 -1.8% 0.2%
Sweden 81.2 80.1 : : 0.2%

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Page 12 of 56
THE OUTERWEAR MARKET IN THE EU

2003 2005 2006 Annual change Share in EU


2003-2006 turnover 2006
Ireland 60.1 57.2 36.5 -13.1% 0.1%
Other (3) - - 0.1%
EU 81.8 69.9 69.5 -5.0% 100.0
Source: Euratex (2008)

Italy is the dominant clothing producer in the EU accounting for 29% of total EU turnover in
2007, followed by France, Germany, Spain and the UK. 76% of the EU garment industry is
concentrated in these five countries.

Clothing manufacturers in the EU can be divided into:


• Manufacturers which have access to the end consumer using own retail structures (vertically
integrated companies),
• Manufacturers which are developing own design/brands, and
• Manufacturers which are working only as subcontractors (mostly on cut/make/trim or CMT
basis).

Most EU manufacturers have developed an outsourcing policy which may include:


• Small, rush-orders in their own factory using modern technologies;
• Specialist products and products with a reasonable profit margin are subcontracted at short
distance;
• Series of bulk products are sub-contracted in low-wage countries.

Some small apparel sectors will remain in Western Europe to guarantee speed and flexibility. In
some sub-sectors, which should be capable of automatisation or production of a relative high
value added, there is room for production capacity. So the West European clothing sector will
further specialise in market segments with a high added value.

2.2 Trends in production

The restructuring policy of many manufacturing companies in the EU during the last two
decades led to relocation of the clothing production, mainly based on labour cost comparisons.
However, even though cost may play an important role in defining the ideal location, it is only
one of the elements to take into account. For example: a well-organised, highly productive
factory in country A can offer better prices than a poorly organised, low-efficient factory in
country B, despite lower labour costs in country B.

The foreign policy of clothing manufacturing companies takes many forms:


• Most of the largest companies have established their own factories abroad or entered into
joint ventures in low-cost countries.
• Besides these forms of ownership structure, subcontracting forms an important part of the
activities of the EU clothing industry. It is possible to identify three basic concepts of
subcontracting: Outward Processing Trade (OPT), Cut, Make and Trim (CMT) and Free on
Board (FOB).
• Another possibility for manufacturing companies is sourcing abroad, mainly for additional
products to their own product range.

Under OPT, the most labour-intensive piecework such as sewing and packing has been
relocated. For the sake of quality control, the whole handling of fabrics, including dyeing and
printing, is retained in the EU home country. The same goes for the quality control and the
distribution to the customer. Basically spoken, EU fabrics, cuttings or semi-finished garments
are exported to low-wage countries, which make them up into finished garments for re-import
into the EU.
OPT in outerwear decreased considerably in the period 2003-2007 to € 1.5 billion. OPT
appeared to constitute 3.0% of EU outerwear imports from outside the EU in 2007, while it had
accounted for 7.8% in 2003. This change is mainly due to the fact that several important
trading partners in CEECs, like Hungary, the Czech Republic and Poland, became new EU

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Page 13 of 56
THE OUTERWEAR MARKET IN THE EU

members as from 1 May 2004, then Romania and Bulgaria as from 1 January 2007. OPT is
therefore no longer necessarily statistically recorded as such. At the same time, the policy of
EU manufacturers has changed to other ways of delocalisation, like CMT and FOB.
More than half of total OPT came from CEECs in 2007, of which most important were Ukraine,
Macedonia, Moldova, Albania, Belarus and Croatia. The most important OPT country outside
Europe became Morocco, followed by China and Tunisia.

Table 2.3 Developments in OPT in outerwear, 2003-2007, in € million


2003 2005 2007 Leading trade partners in 2007, in %
EU 3,161 1,970 1,499 Ukraine (18), Macedonia (15), Morocco (13), China (8), Tunisia
(7), Moldova (4), Albania (4), Belarus (4), Croatia (4)
Germany 1,587 957 634 Ukraine (22), Macedonia (20), Hong Kong (6), Vietnam (6),
China (6), Tunisia (5 ), Croatia (5), Bosnia & Herzegovina (5)
UK 467 416 171 Morocco (21), China (11), Indonesia (10), UA Emirates (10)
Italy 212 139 161 Albania (24), China (17), Tunisia (17), Croatia (13), Moldova
(10)
France 296 204 122 Morocco (31), Tunisia (25), Ukraine (18), Madagascar (12)
Spain 18 6 106 Morocco (90), Tunisia (9)
Greece - - 79 Macedonia (70), Albania (23), Turkey (3)
Netherlands 118 62 54 Ukraine (32), Macedonia (29), Belarus (19), Tunisia (6)
Belgium 52 49 28 Ukraine (60), Indonesia (14), Moldova (13), Macedonia (9)
Sweden 38 18 25 Ukraine (50), Russia (18), China (18), Belarus (7)
Other (18) 374 118 119
Source: Eurostat (2008)

CMT indicates a further step in the relocation. Under CMT, the entire manual production is
relocated, although the material purchase is held on to for efficiency and quality reasons. The
quality control is relocated, too, and is typically managed by travelling controllers.

The next step in relocation is often called FOB. Under FOB suppliers abroad receive complete
specifications for the design, quality of the fabric, accessories and other materials etc.
Subsequently, the suppliers manage the purchase of the materials themselves. This form is
most usual for importers/wholesalers and importing retail organisations, but only for a minority
of the manufacturing companies. This often concerns additional products (accessories) or basic
products, to complete a manufacturer’s product range.

The relocation policy of EU manufacturers gives them the possibility to maintain control over
the management and quality of the outsourcing operations and to respond quickly to changing
market demands.
When products from foreign production, subcontracting and sourcing are imported, this occurs
under a regime of direct imports with trade restrictions. The garments produced under OPT
restrictions are re-imported exempted from all quotas and tariffs for imports into the EU for the
countries in question.

2.3 Trends

• Forecasts for domestic outerwear production in the EU remained very depressed. Several
member states registered a two-digit decrease in production, sometimes from already very
low production levels. The activity of the EU clothing sector will decrease furthermore due
to the growing penetration rate of Asian imports and the exchange rate of the euro, which
is unfavourable to EU exporters.
• Price competition among suppliers has intensified, resulting in a slow growth in production
prices. This is causing concern among EU producers, who are finding it increasingly difficult
to match low import prices.
• Increasing internationalisation by EU manufacturing and/or retail companies expanding
their activities intensively, making their products available in many European countries and
even outside Europe.

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Page 14 of 56
THE OUTERWEAR MARKET IN THE EU

• High degree of vertical integration in the value chain; several producers opened their own
chain(s) and many suppliers started a close and long-term co-operation with distribution
channels, which increases the entry barriers for new suppliers.
• Increasing concentration; the number of suppliers decreased and many suppliers have
merged or have taken over other suppliers.

2.4 Opportunities and threats

+ The further sourcing of products in low-cost countries has led to the considerable decrease
in production in the major EU countries, including products with higher design content.
Besides the traditional lower range market segment, the largest middle range market
segment may also offer good opportunities for exporters in DCs.
+ Importers in the major EU countries have built up a comparative advantage by specialising
themselves in design and other functions, like preparation of samples, logistics, marketing
etc., while simple production operations take place increasingly in other countries. As time
goes by, even the first-mentioned functions are leaving these EU countries too.
+ Advantages of the new EU states in terms of lower wages and shorter routes will largely be
eroded, due to the alignment of the wage structure and the fact that the clothing industry
will no longer be competitive there. This already happened in the regions of the ‘old’ EU
states. An entire sector will disappear in Eastern Europe and only niche suppliers or quality
producers will be able to survive.
± To satisfy the requirements of importing companies in the EU, exporters in DCs will be
faced with increased demands for higher quality and requirements concerning environment
and sociability.
+ The activity of the EU clothing sector will decrease furthermore by factors, like growing
penetration rate of Asian imports linked to changes in the EU quota policy and a strong
exchange rate of the euro, making EU production relatively expensive compared to imports.

Useful sources
• General websites are Euratex (http://www.euratex.org) including links to national trade
associations
• Eurostat (http://epp.eurostat.cec.eu.int).
• Euratex Bulletins and several trade magazines, like:
Textil Wirtschaft (http://www.twnetwork.de),
Textiles Outlook International (http://www.textilesintelligence.com) and
Journal du Textile (http://www.journaldutextile.com/intro_en.htm)

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Page 15 of 56
THE OUTERWEAR MARKET IN THE EU

3 Trade channels for market entry


3.1 Trade channels
Figure 3.1 shows the basic trade channels (exporting manufacturers and traders, agents,
importing manufacturers, wholesalers and retailers). Depending on its position in the market,
the functions of a particular channel will be linked with up- or downstream channels with the
same kind of specialisation. It is also possible for a given channel to take over (some of) the
functions of the latter, in order to improve competitiveness (vertical integration). For instance,
manufacturers, agents and retailers may also function as importers, while wholesalers may
also be manufacturers (vertical integration). Each of these groups has a different approach to
business and the market, with its own specific interpretation of the marketing mix.

Theoretically, importing is a function which can be done by manufacturers, wholesalers or


retailers as given in figure 3.1. However, in some countries and/or branches a distinction is
made between importing wholesalers and importers. In that case, the importer purchases at
his own risk, handles Customs clearance and sells mainly to retail organisations, like multiples,
department stores and buying organisations and other wholesalers, while wholesalers purchase
at own risk from local or EU manufacturers and from importers.

Figure 3.1 Trade and distribution channels for outerwear in the EU

Exporting manufacturers

Importing wholesalers Importing manufacturers Agents

Importing retailers

Department Clothing Home Selling and/or Other


and variety multiples shopping buying retailers
stores companies organisations

Non-importing retailers

Trade channels
Different sales intermediaries have their position between industry and retail, for instance:

Importing wholesalers: by buying on his own account, the importer/wholesaler takes title to
the goods and is responsible for their further sale and distribution in his country and/or in other
EU markets. He is familiar with local markets and can supply considerable information and
guidance to the exporter, in addition to the primary business of buying and selling, such as
administration of import/export procedures and holding of stock. The development of a
successful working relationship between exporting manufacturers in DCs and an
importing/wholesaler or importer can lead to a high level of co-operation with regard to
appropriate designs for the market, new trends, use of materials and quality requirements.

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Page 16 of 56
THE OUTERWEAR MARKET IN THE EU

Most outerwear and/or sportswear wholesalers cater both to the specialist shops and to the
department stores and multiple chains. Contrary to the agent, the wholesaler purchases from
manufacturers and holds his stocks at own risk. The mark-up of a wholesaler is approximately
20-30%. An increasing number of importers/wholesalers today act as agents. The fact that
many independent retailers, as well as purchasing combinations and multiple stores, are
becoming more cautious about pre-ordering, preferring to sell from stock, is reinforcing the
position of the wholesaler. On the other side, large retail companies are increasingly
purchasing abroad, thereby passing the intermediaries. In the case of importers, the mark-up
is approximately 40-50%, which covers a range of activities, such as design, stock-forming,
distribution, marketing etc. as mentioned above. .

Importing manufacturers: the many forms of production strategies of EU manufacturers are


discussed in chapter 5 of this survey. Retailers are increasingly taking part in stages before
them in the sector (vertical integration) and have their own designers to give their own
collections a more unique look. Clothing manufacturers penetrate the retail business by
operating through own shops or through franchising. This gives them control over their output
and margins. Producers can also try to compete through a greater emphasis on their own
product development. They can then offer exclusivity to the retailers and give them a
competitive advantage.

Agents: the sales agent is an independent intermediary between the (foreign) manufacturer
and the retailer or retail organisation, receiving a commission from the former.
The agent (or sales representative) covers a limited geographical area. The level of the
commission depends on a number of factors, including the turnover rate of the product
concerned, but it averages an estimated 8-12% of turnover.

Most agents represent more than one manufacturer, although competition is avoided. More and
more agents are starting to sell from stock, to meet their clients' short-term demands. Stock
forming is often on a consignment basis. If the agent builds up his own stock, he is in fact
functioning as an importer/wholesaler. The role of agent as described above is often indicated
as selling agent. Another type of agency is the so-called buying agent. The buying agent is
located in the supplying country and settles business on the instructions of his principals, which
are mainly retail organisations, and works on commission basis, too. The development
described above - an increasing number of importer/wholesalers acting as agent - is also true
in reverse: many agents today act as importers/wholesalers.

Capital requirements are limited because this cooperation is based upon commission; however,
agents mainly work with brand names and are therefore less interesting for most exporters in
DCs.

Importing retailers: the bigger retail organisations (multiples with more than 20 outlets,
department and variety stores, buying organisations, home shopping companies) import
through their own buyers. These buyers at clothing multiples, home shopping companies and
variety stores, which have mainly or exclusively private labels in their assortment, divide their
budgets between the purchase of finished products via direct imports (sourcing ready-made
products) from low-wage countries and sourcing products made according to their own design.

Home shopping companies are keener than other retail distributors about the re-order facility.
They will want to start with small orders to test the market and make a firm, but not final, bulk
commitment a few months later. If an item sells, they expect subsequent supply of maybe
three times that number at short notice, simply because the catalogue cannot on any account
disappoint the customer by saying ‘sold out’.

Many major retail organisations use buying agents or set up their own buying organisations in
low labour-cost countries. This means that retailers are able to bypass domestic wholesalers
and/or manufacturers and can reduce costs.

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Page 17 of 56
THE OUTERWEAR MARKET IN THE EU

A difference has to be made in the segments distinguished: super- and hypermarket chains,
textile and other discounters operate mainly at the lower end of the market, so the lowest
purchasing prices are the main buying criteria.

Generally spoken, variety stores and clothing multiples are interested in more criteria than
price, like service by the producer, technological capacity, quick response etc.

Contacts with sales intermediaries can be made in several ways, like consulting trade
representatives’ associations, chambers of commerce, fashion centres, trade publications,
trade directories etc. In this survey and in the surveys on specific EU countries, websites of
potential trading partners are mentioned and otherwise websites of associations including links
to their members (manufacturers, wholesalers or retailers), lists of exhibitors on trade fairs
etc.

Retail trade
Retailers constitute the final stage before products reach the consumer. In this survey and in
the surveys covering individual countries, a distinction is made between specialised retailers
(independent (clothing specialty) retailers and clothing multiple stores) and non-specialised
retailers, like department and /or variety stores, textile supermarkets or discount stores, value
retailers, home shopping companies, sport speciality stores, (grocery) super- and
hypermarkets, street markets, wholesalers (selling to consumers), factory outlets etc.
A detailed overview of the retail structure and market shares of retailers with clothing in their
assortment are discussed in the surveys on specific EU countries.

Distribution channels differ greatly across the EU member states. Some characteristics are:
• The UK has a high concentration of distribution, which is reflected in the relatively low
market share of independent retailers.
• The southern and eastern EU member states have high market shares for independent
retailers. These retailers buy mainly from manufacturers and wholesalers/importers.
• In Germany, The Netherlands and Scandinavian countries, many independent retailers are
members of buying co-operations.
• In southern and eastern EU countries franchise formula are more popular.

Unorganised independent retailers, which have decreasing but still important market shares in
most of the EU countries, buy directly from local or near-by manufacturers or agents
representing these manufacturers, as well as from wholesalers/importers. These retailers do
not import by themselves and are therefore not interesting for developing country exporters.

Franchise or selling formula and buying groups can be considered as multiple stores or chains,
including their buying policy. The original function of the buying groups was reduction in costs
by centralising of buying and logistics. More and more selling formula for the members have
been developed and the successful ones have been exploited as franchising activities. The
website of the European Association of National Organisations of textile retailers (AEDT):
http://www.aedt.org gives information about independent retailers and links to national
organisations.

Trends in retail trade


• A high degree of integration in the value chain: more and more manufacturers open their
own (international) brand stores.
• 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.

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Page 18 of 56
THE OUTERWEAR MARKET IN THE EU

• Most of the retail chains have expanded their foreign activities; some of them even operate
globally. The main examples are Hennes & Mauritz (Sweden; http://hm.com), Inditex
(Spain; http://www.inditex.com) and C&A (Netherlands/Germany; http://www.c- and-
a.com). The number of stores and turnover of these companies can be found at the
websites mentioned. Zara is the most important chain of the vertically organized Inditex.
• Tough market conditions have favoured those retailers who can respond to consumer
demand more quickly and at lower cost. A handful of specialty retailers, such as H&M and
Zara, continues to defy the global economic downturn. These companies are particularly
adept at understanding what consumers buy - and want to buy - in real time and
responding quickly to sales trends and customer feedback. The explosive growth of these
chains is, besides international expansion, also driven by diversification. As a growth
strategy, they are capitalising on the heightened interest in their brands by extending them
into new product areas, new customer segments, and new formats. H&M introduced the
formula Cos in 2007 and C&A the formula Avanti to reach specific target groups.
• These strategies, mentioned above, have consequences for manufacturers, through the
concentration in buying activities. The powerful groups of chains reduce their number of
supplying manufacturers in general; have a stronger position in negotiations about price,
delivery conditions etc. and in some cases organisations take over the functions of
suppliers, in order to improve competitiveness (vertical integration). The increasing
integration in the value chain decreases the number of suppliers on the market and forces
them into a close and long-term cooperation with the distribution channels. Mergers and
take-overs in clothing production in many EU countries should therefore be seen against
the background of grasping more market power, as well as a strong position compared to
the retail organisations.
• Margins are under continuous pressure in the major EU countries. Consumer expectations
with regard to lower prices, in particular, as well as tough competition, have resulted in the
retailer’s needs for lower inventories, less out of stock and lower markdowns. The
consequences for the buying policy are fewer pre-seasonal orders; more collections per
season; investment in seasonal planning and control; co-operation with suppliers (quick
response/EDI), and fewer suppliers.
• All opportunities enabling reduced costs are eagerly pursued. Buyers of clothing importing
companies are looking for lower purchase prices abroad, thereby minimising costs in the
buyer’s home country. The necessity to reduce costs has provided the main driving force
behind the development of garment sourcing in foreign countries for the markets of
importing countries. As a result, production has migrated to a growing number of DCs, as
buyers have sought, and are still seeking, ever lower-cost locations. In practice, it is not a
question of looking for the lowest wages but looking for manufacturers with the lowest
overall manufacturing costs.
• Minimising purchasing costs implies that many buyers try to limit the number of supplying
countries and the number of individual manufacturers they deal with.
• Sourcing policies are made on two levels, country level and company level. On country level
aspects like duty rates, ethical aspects, wage structure, distance, local infrastructure,
economic and political stability play a role. Other aspects like fast reaction, speed to
market, logistics management, quality, production facilities, design capacity, availability of
raw materials, are not country-specific. They can vary considerably within individual
countries.

More specified information concerning distribution in the EU countries is given in the CBI
surveys covering individual countries.

3.2 Price structure


The margins at the various different levels of distribution are influenced by several factors like
degree of risk; volume of business; functions or marketing services rendered; competition and
exclusiveness; and are different for each product/market combination. It is impossible to draw
up a schedule of actual margins for each and every product/market combination. Even within
the same type of combination, different importers apply different margins, due to variation in
economic conditions.

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Page 19 of 56
THE OUTERWEAR MARKET IN THE EU

The various retailing stores differ in the sales formula they apply, i.e. their assortment and the
consumer group targeted, as well as in the way they differentiate themselves from
competitors. As an aid to understanding the market, one can discriminate between "service
retailing", where the retailer offers the consumer substantial added value (quality, service,
fashionability, choice etc.), and "low-margin retailing", where the price-conscious consumer is
offered low prices, at the expense of quality, service and so forth. We refer to the overview in
chapter 1.2 for the various segments in the outerwear market.

The effect of low, medium and high margins on consumer end price, based on one CFR (cost
and freight) price for three different products, will be shown in table 3.1. This shows that a
multiplier of between 2.2 and 3.0 on the manufacturer’s price should be used to calculate an
appropriate final consumer price. Caused by factors like increasing competition at all levels in
the distribution column, further concentration and integration, the factor has decreased in the
last decade. Elimination of the wholesaler, for instance, can lead to a lower multiplier used by
clothing multiples, department and variety stores and mail-order companies.

Most of the major retail organisations set up their own buying organisations in low-labour-cost
countries. This means that retailers are able to bypass domestic wholesalers and/or
manufacturers.

Table 3.1 Calculation schedule: margins


Low Medium High
CFR Rotterdam/Amsterdam 100 100 100
Import duties * * *
Charges on CFR basis:
- handling charges, transport insurance, banking services 7 7 7
107 107 107
Wholesaler's margin (20/30/40%) 21 32 43
128 139 150
Retailer's margin (45/55/65%) 64 76 98
- net selling price 186 215 248
Value Added Tax: 19% of net selling price **) 36 41 47
- gross selling or consumer price 221 256 295

RATIO CIF/CONSUMER PRICE: 2.2 2.6 3.0


*) import tariffs vary from 0 up to 12.0% of CFR value
**) In this calculation, the VAT tariff valid for The Netherlands is used, but note that this tariff varies
per EU country (see country surveys).

The average outerwear retailer marks goods up by 80-110% of his buying price, with selected
goods retailing up to 165% higher than buying prices. However, a large part of the assortment
will have been reduced in price.

Although levels of wholesaler and retailer costs often shock suppliers, these intermediaries do
not generate excessive profits. While purchase costs have fallen since manufacturing in low
cost countries started to gather pace, other costs have risen and increasing competitive
pressures have kept profitability down. Bargain sales are growing in importance in all segments
of the clothing market and in all major EU countries. Bargain sales generally threaten margins
but are considered as inevitable, because of the growing dynamics of the clothing market.
Rapidly changing fashion quickly makes clothing assortments "out-fashioned". Bargain sales
are then the only means to recover a part of the purchase price, even if garments are sold
below the usual retail price.

Opportunities and threats


Opportunities for exporters in DCs when choosing their distribution channels, depends on
external (demand and requirements of importers/buyers) and internal factors. The latter is
discussed in CBI’s survey ‘From survey to success - Guidelines for exporting outerwear to the
EU’. The foreign strategies of EU manufacturers are discussed in chapter 2.

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THE OUTERWEAR MARKET IN THE EU

+ For starting and/or SME exporters, selling to wholesalers and importers has the most
advantages. Disadvantages are the missing of direct contacts with retail organisations and
the lower margins.
± Importers in the major EU countries have built up a comparative advantage by specialising
themselves in design and other functions, like preparation of samples, logistics, marketing
etc., while simple production operations take place increasingly in other countries. As time
goes by, even the first-mentioned functions are leaving these EU countries too.
± Because of the spreading of buying of clothes over the whole year and because of
increasing product differentiation, there is a growing shift in power positions of the retail
chains. These developments include opportunities for the group of ‘privileged/short
distance’ supplying countries and tough competition for other countries.
+ As mentioned above, exporters of outerwear are confronted with many aspects like quality,
sizing, packaging, environmental aspects, resulting in a lot of technical requirements,
added to which are aspects of design, fashionability, market developments etc. For that
reason, co-operation in a variety of forms between importer and exporter can be necessary,
of which the more further-reaching forms of potential co-operation are joint ventures and
co-makership agreements.
± The EU apparel market is complex and sophisticated. The movement away from cheap
products (with low relation to fashion and comfort) to mid-price segments, including
products of higher quality and more individual clothes, offer interesting opportunities to
exporters. In this segment, European as well as foreign retailers operate with their own
private labels, sometimes combined with branded products (for an increasing part sourced
outside the EU) as well as with non-branded or fancy branded items.

3.3 Useful sources

• European Association of National Organisations of textile retailers (AEDT):


http://www.aedt.org
• Contacts with sales intermediaries can be made in several ways like consulting trade
representatives’ associations, chambers of commerce, fashion centres, trade publications,
trade directories etc. We refer to the CBI surveys covering individual countries for
addresses and other information.

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Page 21 of 56
THE OUTERWEAR MARKET IN THE EU

4 Trade: imports and exports

Trade statistics in this chapter are taken from Eurostat. Eurostat bases its statistics on
information from the Customs and EU companies, which is given on a voluntary basis. Not all
transactions are registered, particularly intra-EU trade such as those by smaller countries and
transactions from non-EU sources. Consequently intra-EU trade tends to be understated. On
the other hand, figures for trade between the EU and the rest of the world (extra-EU) are
accurately registered, and therefore more precisely presented in these statistics. Nevertheless
they must be treated with extreme caution and are only intended to give an indication of trade
flows in the international outerwear market.

4.1 Total EU imports


The EU member states imported 4.8 million tonnes of outerwear with a value of € 90.0 billion
in 2007, of which 51% came from DCs. Total imports of outerwear increased, while production
for the EU market decreased, which indicates growth of the import share in the slightly
increasing consumer market.

The average import price (in units) grew 1.4% in the period 2003-2005 and fell 4.7% in the
period 2005-2007, of which 2.9% in 2007 compared to 2006.

German imports of outerwear fell 0.4% during the period 2003-2005, followed by a growth of
7.0% in the period 2005-2007 to reach a value of € 18.0 billion in 2007. Germany remained
the leading importer with a share of 20% in imported value. Germany was followed by the UK
(16%), France (13%), Italy (10%), Spain (9%) and Belgium (6%). The Netherlands (5%)
ranked sixth, followed by Austria (4%) and Denmark (3%).

Table 4.1 EU imports of outerwear 2003-2007, in € million/1,000 tonnes


2003 2005 2007 Annual
€ million 1,000 € million 1,000 € million 1,000 change
tonnes tonnes tonnes in value
Total EU, 72,638 4,163 81,148 4,719 89,995 4,811 +6.0%
of which from:
Intra-EU 32,040 966 38,301 1242 40,428 1026 +6.5%
Extra-EU 40,598 3197 42,847 3477 49,566 3785 +5.5%
DCs 32,013 2560 39,414 3109 46,264 3501 +11.1%
Source: Eurostat (2008)

Developments in imports of outerwear vary strongly per EU country. This depends on several
factors like size and structure of domestic production of outerwear, the possibilities and volume
of re-exports, developments in demand as described in Chapter 1. EU countries can be divided,
by developments in value of imports during the period 2005-2007, into:
• Booming imports (more than 50%) in Poland, Slovakia, Latvia, Lithuania and Estonia;
• Considerably growing imports (between 25 and 50%) in Greece and Slovenia;
• Strongly growing imports (between 10 and 25%) in Spain, Cyprus, Denmark, Sweden,
Portugal, Romania, Bulgaria, Italy, Ireland and Finland;
• Slowly growing imports (between 5 and 10%) in Germany, the UK, Belgium, France and
Austria;
• Very slowly increasing imports (between 0 and 5%) in The Netherlands and the Czech
Rep.;
• Very slowly decreasing imports (between 0 and -3%) in Hungary and Luxembourg;
• Considerably decreasing imports (more than 10%) in Malta.

Although some sensitive categories being still under quota, China continued, by far, to benefit
most in 2007, before Turkey, Germany, Italy and Bangladesh. Total imports from China
increased considerably: 72% in the period 2003-2005 and 26% in the period 2005-2007. In

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Page 22 of 56
THE OUTERWEAR MARKET IN THE EU

2003, 12% of EU imports came from China; in 2005: 18% and in 2007: 20% or otherwise
expressed: 37% of EU outerwear imports from outside the EU came from China.

The agreement of mid-2005 between the EU and China led to a limitation of Chinese exports
until 2008 and covered several outerwear product groups, like T-shirts, sweaters, pullovers
etc., trousers, blouses and dresses. The European Commission decided not to extend quotas on
EU (textile and) clothing imports from China when current arrangements came to an end on
December 31, 2007.
A further expansion of China’s dominance in the EU outerwear imports is forecasted by several
experts, however, it should be noted that the following factors influencing a decrease in growth
of Chinese exports were mentioned by a recent (2007) KSA survey: risks of stock-outs;
increasing wage costs; lack of workforce; increasing costs caused by changes of the law based
on social and ecological standards; longer lead times compared to manufacturing locations
nearer to the EU; lack of quality and too-high minimum order limits. These criteria mean the
relative advantage of China over other countries, such as Turkey, Bangladesh, India, Sri Lanka,
Vietnam etc., is decreasing.

With regard to factors like cost levels and distances, the following competitive categories in
outerwear can be distinguished:
Low-cost, long-distance countries: these countries specialise in low-priced, high-volume,
low and medium fashion and standard types of products with a fair quality. These products are
mainly made to buyers' specifications in countries in the Far East (China, Hong Kong and
Macao) and South East Asia (Bangladesh, India, Indonesia, Vietnam, Pakistan Sri Lanka and
Thailand).
Low-cost, medium-distance countries: these countries supply medium fashion products,
sometimes made as OPT. The main sources are Mediterranean countries like Tunisia, Morocco,
Egypt, Croatia and EU countries Romania, Hungary, Bulgaria, Poland and Slovakia.
Medium-cost, medium-distance countries: these countries supply medium to high fashion
products of high quality and sometimes made of sophisticated fabrics: like Turkey and EU
countries Portugal and Greece.
High-cost countries: these countries supply quality fashion characterized by frequent
deliveries, small quantities and sophisticated fabrics, which are difficult to obtain in low-cost
countries. Western Europe (Italy, Germany, Belgium, Austria and UK), Israel and USA belong
to this category.

4.2 EU imports per product group

EU imports of woven outerwear increased annually in volume (1.5%) and in value (4.4%)
during 2005-2007: average import prices were 6.2% higher in 2007 than in 2005. DCs
accounted for 51% of total EU imports of woven outerwear in 2007 (44% in 2005). In 2007,
EU imports of woven outerwear came for 45% from other EU countries (44% in 2005).

EU imports of knitted outerwear increased annually in value (+7.1%) in the period 2005-
2007, while the volume of imported knitwear fell by 2.5%, which indicated that average import
prices of knitted outerwear grew strongly and were 23% higher in 2007 than in 2005. In 2007,
EU imports of knitted outerwear came for 51% from DCs (43% in 2005) and for 44% from
other EU countries (45% in 2005).

Total EU imports of leather garments accounted for € 1.5 billion in 2007 and stabilized in the
period 2005-2007. DCs play a dominating role in EU imports of leather garments. In terms of
value, 61% of total imports came from these countries. An analysis of imported leather
garments, such as by actual types of product, materials used and whether the garments are for
men or women, is not possible, because only one statistical number is available for leather
garments.

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THE OUTERWEAR MARKET IN THE EU

Table 4.2 EU imports and leading suppliers of outerwear 2003-2007, share in % of


value
2003 2005 2007 Leading suppliers in 2007 Share
€ mln € mln € mln Share in % (%)
Total outerwear 72,638 81,148 89,995 100
Intra-EU: 32,040 38,301 40,428 Germany (8), Italy (7), Belgium (4), 45
France (4), Netherlands (4), Spain (3),
Romania (3), UK (2), Portugal (2),
Denmark (2).
Extra-EU ex. DCs: 8,585 3,433 3,302 Hong Kong (2), Switzerland (1), USA 4
(<1), Macao (<1), South Korea (<1).
DCs: 32,013 39,414 46,264 China (20), Turkey (9), Bangladesh (5), 51
India (4), Morocco (2), Tunisia (2),
Indonesia (1), Vietnam (1), Pakistan (1),
Sri Lanka (1), Thailand (1).
Woven outerwear 41,168 45,498 49,480 100
Intra-EU: 18,251 22,354 22,913 Germany (8), Italy (7), Belgium (4), 46
France (4), Romania (4), Netherlands
(3), Spain (3), UK (2), Denmark (2),
Poland (2), Portugal (1).
Extra-EU ex. DCs: 5,400 1,650 1,380 Hong Kong (1), Switzerland (1), USA 3
(<1), Macao (<1).
DCs: 17,517 21,494 25,187 China (23), Turkey (6), India (4), 51
Morocco (3), Bangladesh (3), Tunisia (3),
Vietnam (1), Indonesia (1), Pakistan (1),
Macedonia (1).
Knitted outerwear 29,749 34,113 38,975 100
Intra-EU: 13,293 15,438 16,957 Germany (7), Italy (6), Belgium (5), 44
France (4), Netherlands (3), Spain (3),
UK (3), Portugal (3), Denmark (2),
Romania (1), Greece (1).
Extra-EU ex. DCs: 3,083 1,739 1,872 Hong Kong (3), Macao (<1), South Korea 5
(<1), Taiwan (<1), USA (<1),
Switzerland (<1).
DCs: 13,373 16,936 20,146 China (16), Turkey (11), Bangladesh (7), 51
India (4), Morocco (1), Indonesia (1),
Tunisia (1), Cambodia (1), Thailand (1),
Mauritius (1).
Leather garments 1,721 1,537 1,540 100
Intra-EU: 496 509 558 Italy (9), Germany (9), France (4), 36
Netherlands (3), Spain (2), Belgium (2),
Denmark (2), UK (1), Austria (1),
Romania (1), Sweden (1).
Extra-EU ex. DCs: 102 44 51 Switzerland (2), Hong Kong (<1), USA 3
(<1), UA Emirates (<1), South Korea
(<1).
DCs: 1,123 984 931 China (23), India (15), Turkey (10), 61
Pakistan (10), Ukraine (1), Morocco (1),
Vietnam (<1), Croatia (<1), Mauritius
(<1), Tunisia (<1).
Source: Eurostat (2008)

The role of DCs in EU imports increased strongly in the period under review: from 44% in 2003
to 51% of total EU imports in 2007. As can be derived from table 4.3 the share of DCs in EU
imports of all woven products increased. However, the role of DCs in EU imported outerwear
products varied strongly, for example: two thirds of total imports of woven and knitted
garments for babies came from DCs, against 39% of total imported woven indoor jackets.

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THE OUTERWEAR MARKET IN THE EU

Table 4.3 EU imports of outerwear and DC share by products, 2003-2007, in € million


2003 2005 2007
€ million DC share € million DC share € million DC share
in % in % in %
Total outerwear 72,638 44 81,148 49 89,995 51

Knitted outerwear
- overcoats/outdoor jackets 734 44 916 46 1,037 47
- suits/jackets/trousers 3,571 47 3,974 48 4,630 50
- shirts/blouses 2,191 43 2,812 48 4,015 50
- T-shirts 9,548 48 10,829 54 12,546 56
- jerseys/pullovers 11,022 41 12,205 46 12,807 47
- babies’ garments 1,337 61 1,508 66 1,788 68
- sportswear 1,113 47 1,466 46 1,696 45
- accessories 233 48 403 51 456 48
Total knitted outerwear 29,749 45 34,113 50 38,975 51

Woven outerwear
- overcoats/outdoor jackets 5,679 51 6,616 54 7,366 55
- suits/ensembles 2,105 33 2,046 36 2,068 39
- indoor jackets 2,784 27 3,918 35 3,787 40
- trousers 14,535 42 16,288 46 17,283 52
- dresses 1,158 42 1,283 47 2,592 48
- skirts 2,033 47 2,921 53 2,462 53
- shirts/blouses 6,463 45 6,433 50 7,875 54
- babies‘ garments 674 63 783 64 887 66
- sportswear 1,440 46 1,458 49 1,389 50
- accessories 1,024 43 1,219 48 1,130 47
- other 3,273 30 2,533 31 2,641 33
Total woven outerwear 41,168 43 45,498 49 49,480 51

Leather garments 1,721 65 1,537 64 1,540 61


Source: Eurostat (2008)

Knitted outerwear
Imports of three product groups: jerseys, sweaters, polo shirts etc., T-shirts and shirts and
blouses formed 75% of total EU imports of knitted outerwear.

EU imports of jerseys, pullovers, sweaters, polo shirts etc. increased in volume during the
period 2005-2007 by 9%, of which 3% in 2006-2007. Average import prices increased from
€ 6.63 in 2005 to € 6.71 in 2006, then fell back to € 6.42 in 2007.

Imports of lightweight articles like fine knit roll, polo or turtleneck jumpers and pullovers made
of cotton fluctuated during 2005-2007: from 40.3 million units in 2005 (at € 3.97) to 45.2
million (at € 3.98) in 2006 and to 41.4 million (at € 4.63) in 2007, while those made of man-
made fibres fluctuated from 32.6 million units (at € 3.02) to 23.9 million (at € 4.37) in 2006
and to 24.7 million (at € 5.24) in 2007.

Developments in imports and average import prices of other materials can be derived from the
following table.

Table 4.4 Analysis of imported knitted jerseys etc. by materials used, 2003-2007
Volume (million units) Value (€ million)
2005 2006 2007 2005 2006 2007
Total 1,826 1,941 1,995 12,205 13,026 12,807
of which in %
- wool and hair 9 9 7 17 17 17
- cotton 41 43 47 39 41 44
- man-made fibres 47 44 42 40 38 35
- other 3 4 4 4 4 4
Source: Eurostat (2008)

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THE OUTERWEAR MARKET IN THE EU

EU imports from DCs in this product group accounted for 47% of total imported value in 2007
(41% in 2003). Intra-EU imports (43% of total EU imports) came, besides from the leading
suppliers Italy and Germany (each country supplying 8% of EU imports), from France (4%),
Belgium (4%), The Netherlands, the UK and Spain (each country 3%). Imports from the EU
countries mentioned increased, except for imports from Italy, The Netherlands and Romania. It
should be noted that a considerable share of imports from EU countries consists of re-exports.
However, it is not possible to quantify the amount of the re-exports by using the available
statistics.

Imports from DCs increased (+6.2% during 2005-2007) but to a lesser degree than growth of
intra-EU trade (+8.8%). Imports from leading supplier China fluctuated strongly in volume as
well as in average price during the period under review: 364 million units at € 4.93 in 2005;
210 million at € 7.32 in 2006 and 288 million at € 6.78 in 2007. Other important suppliers to
the EU were (in terms of value) Bangladesh (301 million units in 2007 at € 3.56), Italy (123
million at € 8.49), Germany (110 million at € 8.84), Turkey (125 million at € 7.14) and Hong
Kong (130 million at € 6.42). Other important exporting DCs, besides China, Bangladesh and
Turkey, were Cambodia (74 million at € 4.05), Indonesia (61 million at € 4.63), India (48
million at € 4.51), Tunisia (28 million at € 7.02) and Thailand (34 million at € 4.81).

EU imports of knitted T-shirts rose 20% in volume and 16% in value in the period 2005-2007.
Average import prices during this period increased from € 2.71 in 2005 to € 2.83 in 2006 and
decreased to € 2.59 in 2007.

In 2007, cotton T-shirts retained their popularity and accounted for 87% of total imported
volume. Developments in imports of T-shirts are illustrated in the following table.

Table 4.5 Analysis of imported T-shirts by materials used, 2005-2007


Million units € million
2005 2006 2007 2005 2006 2007
Total 4,025 4,299 4,840 10,829 12,162 12,546
of which in %
- cotton 85 87 87 79 78 77
- man-made fibres 14 12 12 19 20 21
- other 1 1 1 2 2 2
Source: Eurostat (2008)

T-shirts was one of the product groups with a Chinese safeguard quota to the EU until 2008.
Turkey, China and Bangladesh dominate the EU market. In terms of value, 58% of total
imported T-shirts came from outside the EU, of which 97% from DCs (56% of total imports) in
2007.

In terms of value, Turkey remained the leading supplier of T-shirts to the EU, accounting for
17% of total imports (586 million units at € 3.70). China ranked second and accounted for
10% of total imports (510 million units at € 2.50). The same share was valid for Bangladesh
(1,283 million shirts at € 0.96). Other important (DC) suppliers were (ranked in size of
imports): India, Morocco, Mauritius, Tunisia, Sri Lanka, Thailand, Egypt, Indonesia, Pakistan,
Vietnam and Cambodia.

Inside the EU, Germany, Belgium, Italy, Portugal, France, and The Netherlands were the
leading exporting countries of T-shirts. The same remarks can be made about re-exports as
discussed above. Imports from all these countries, except Italy and Portugal, increased during
the review period. Major EU exporters of T-shirts from outside the EU (other than DCs) were
the USA and Hong Kong.

The product group suits, jackets and trousers include several product types unlike the product
group shirts and blouses.

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THE OUTERWEAR MARKET IN THE EU

Imports of knitted shirts and blouses increased 44% (in terms of volume) and 39% (in
value) during 2005-2007. Imported volume of knitted blouses and shirts for women increased
by 46% in the review period, while imports of men's shirts increased by 42%.
Cotton remained the most popular fabric type for men’s shirts and for women’s shirts and
blouses. Cotton shirts had a growing share of 85% in total imports of men’s shirts, while the
import share of cotton blouses and shirts for women stabilized at 64%.

The leading supplier of knitted shirts and blouses to the EU remained Turkey; 14% of total
imported value came from this country in 2007. It was followed by China (9%), Bangladesh
(7%), Germany, France and India (each country 6%) and nine other EU countries. The same
remarks can be made about re-exports as discussed above.

Total imports from DCs increased 49% in the period 2005-2007. These increases varied per
country: Turkey (+45%), China (+59%), Bangladesh (+55%), India (+51%), Morocco
(+158%), Pakistan (+62%), Thailand (+9%) and Tunisia (+53%).

Woven outerwear
Imports of three product groups: ‘overcoats and outdoor jackets’, ‘trousers, shorts etc.’ and
‘shirts and blouses’ are the most important in the woven sector, accounting for 65% of total
imports of woven outerwear.

Imports of woven outdoor jackets, such as anoraks, ski jackets etc. increased from 397
million units in 2005 to 426 million in 2007. Average import prices decreased very slightly from
€ 10.67 in 2005 to € 10.62 in 2007. Almost 65% of imported woven anoraks was made of man-
made fibres and 29% made of cotton in 2007, against respectively 70 and 25% in 2005.

Table 4.6 EU imports of woven coats, anoraks etc., 2005-2007, in million units
2005 2006 2007 2007
o.w. men women
Over- and raincoats 158 164 165 53 112
Anoraks etc. 397 403 426 182 244
Total 555 567 591 235 356
of which:
- wool 21 23 30 8 22
- cotton 136 164 169 64 105
- man-made fibres 386 370 382 159 223
- other 12 10 10 5 5
Source: Eurostat (2008)

EU imports from DCs grew considerably: from 311 million in 2005 to 343 million jackets in
2007, respectively 85 and 87% of total imports came from China.
Export volume in this product group by China reached 298 million jackets in 2007. Average
import prices from China were 3% lower in 2007 than in 2005, respectively € 7.19 and € 7.42.
Intra-EU trade increased in volume (+4%) during the same period to 79.9 million units but
against much higher prices, namely € 22.40 in 2007 against € 19.06 in 2005. Important
suppliers like Germany, The Netherlands, Belgium, Romania, Indonesia and Turkey were
confronted with much lower exports to the EU, while exports by Vietnam, France, Spain,
Denmark and the UK increased.

EU imports of the product group woven trousers, shorts and bib & braces for men and
women increased in volume to 2,286 million units in 2007, at an average import price of € 7.70
against € 7.72 in 2005. The important products within the product group woven trousers for
both sexes are cotton trousers other than denim, synthetic fibre trousers and jeans.

EU imports of cotton trousers (other than denim), including casual trousers like chinos,
workers, cargos etc. increased considerably from 944 million units in 2005 to 1,116 million in
2007. Imports of jeans decreased to 554 million units, of which 54% for men. Average import

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Page 27 of 56
THE OUTERWEAR MARKET IN THE EU

prices for men’s jeans amounted to € 10.30 in 2007 (€ 9.86 in 2005) and for women’s jeans
€ 9.23 (€ 7.85 in 2005).

Imports of the total product group (trousers, shorts, bib & braces) concerned 44% men’s and
56% women’s in 2007, which is almost equal to the ratio in 2005.
The role of cotton trousers became more important: 73% of total imports was cotton made in
2007 against 71% in 2005.

Table 4.7 EU imports of woven trousers etc. by materials used, 2005-2007,


in million units
2005 2006 2007 2007
men women
Trousers 1,926 1,937 1,957 880 1,077
Shorts 203 229 307 116 191
Bib & braces 25 26 22 12 10
Total 2,154 2,192 2,286 1,008 1,278
of which:
- wool 30 29 28 18 10
- cotton denim 578 560 554 299 255
- other cotton 944 1,013 1,116 506 610
- synthetics 450 430 424 144 280
- artificial 34 30 30 7 23
- other 118 130 134 34 100
Source: Eurostat (2008)

The import share (in value) for jeans from other EU countries accounted for 50% in 2007 (51%
in 2005), while imports from DCs increased from 42% in 2005 to 47% in 2007.
The leading exporting countries in 2007 were: Turkey (13% of total EU imports in value),
China (10%), Italy (10%), Belgium (8%), Germany (7%), Tunisia (6%), The Netherlands
(5%), Bangladesh (5%), Pakistan (4%) and the Czech Rep. (3%. Almost all supplying
countries, including the leading suppliers in DCs, gained from the renewed popularity of jeans,
but imports from Italy, Bangladesh and Morocco decreased compared with 2005. Fast-growing
imports came from Turkey, China, The Netherlands, Pakistan, the Czech Rep., Spain and India.
Average import prices varied strongly from € 26.92 (Italy) to € 12.69 (Turkey) and to € 5.61
(China).

EU imports of cotton trousers (other than denim) increased considerably in the period 2005-
2007 in volume (+9% to 908 million units) and in value (+3% to € 6.7 billion), which indicates
an average import price of € 7.38. A limited part of EU imports came from other EU countries,
namely 23% in volume and 39% in value.
Leading suppliers were China (218 million units at € 5.76), Turkey (63 million at € 9.69),
Germany (48 million units at € 11.17), Bangladesh (122 million units at € 3.86) and Tunisia
(36 million at € 12.66), followed by Italy, Morocco, Romania, Belgium and France. Imports
from China boomed in 2005, decreased in volume in 2006 but against much higher prices and
boomed again in 2007: +81% in volume to 218 million units against 8.4% lower prices namely
€ 5.76 in 2007. Average import prices also varied strongly in this product group, namely from
€ 23.09 (Italy) to € 11.19 (Germany), to € 9.69 (Turkey) and to € 5.76 (China).

EU imports of synthetic trousers decreased in the period 2005-2007 in volume (-10% to 311
million units) and in value (-8% to € 2.2 billion), of which 32% in volume and 48% in value
came from other EU countries in 2007. Leading suppliers were China (54 million units at
€ 5.31), Germany (17 million units at € 11.55), Turkey (20 million at € 8.04) and Belgium (15
million at € 10.10). Other important EU suppliers were Romania, Morocco, Vietnam,
Bangladesh, France and The Netherlands.

Imports of woven shirts and blouses increased in volume (+20%) and in value (+18%) in the
period 2005-2007. This growth was mainly caused by increased imports of cotton shirts (and
blouses) for men and women. Imports of shirts (and blouses) made of man-made fibres increased

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Page 28 of 56
THE OUTERWEAR MARKET IN THE EU

too, but to a lesser degree. 78% of men’s shirts imported in 2007 was made of cotton and 18% of
man-made fibres, while in 2005 these percentages were respectively 74 and 21.

Imports of women's blouses were for 55% made of cotton in 2007, 33% of man-made fibres
and 4% of linen. Imports of cotton blouses and shirts increased mainly to the detriment of
blouses and shirts of man-made fibres.

DCs played a more important role in EU imports of woven shirts for men (58% of total
imported value in 2007 against 54% in 2005) than for shirts and blouses for women (50% in
2007 and 46% in 2005). The leading supplier was China (16% of total value of EU imports),
followed by India (9%), Turkey (8%), Germany (8%), Romania (6%), Italy (6%) and
Bangladesh (4%) in 2007.

Leather garments
74% of EU imported value of leather garments came from six countries in 2007, of which
imports from leading supplier India increased 52% compared to 2005 to € 349 million. India
was followed by the UK (including re-exports), China, Sri Lanka, Bangladesh and Turkey.
These countries were at distance followed by France, Italy, Vietnam, Indonesia, Ukraine, The
Netherlands and Macedonia.

4.3 The role of DCs

Total EU imports from DCs increased in terms of volume (+37%) and value (+45%) in the
period 2003-2007, which indicates that average import prices grew by 5.8%. During the period
2005-2007, imports from DCs increased by 17% in value. The different regions showed varied
patterns during the period 2005-2007:
• Growing imports (+22% in value terms) came from Asian DCs, like China (+26%),
Bangladesh (+23%), India (+18%), Vietnam (+64%), Pakistan (+16%) and Sri Lanka
(+8%), despite slight falling imports from Thailand (-2%) and stabilizing imports from
Indonesia. Imports from Asian DCs accounted for 68% of total imports from DCs.
• Imports from Mediterranean countries increased by 9% in the review period. It should be
noted that Turkish exports to the EU grew strongly (+11% during 2005-2007), while
exports by Morocco and Tunisia grew by respectively 8 and 4%. Mediterranean countries
accounted for 29% of total imports from DCs. Other significant exporting countries from
the Mediterranean region were Egypt, Croatia, Serbia, Bosnia & Herzegovina and Albania.
• Imports of outerwear from ACP countries increased by 11% during 2005-2007 to € 725
million in 2007. 62% of ACP exports came from the leading country Mauritius (+5%).
France and the UK were the leading destinations of exports from Mauritius. Madagascar
(+36%) ranked second with 30% of ACP exports to the EU in 2007 (mainly to France and
Germany).
• Imports from South American DCs grew 13% in the period under review to € 297 million in
2007, coming mainly from Brazil, Peru, El Salvador, Honduras and Colombia.

Table 4.8 Imports of outerwear from developing countries, 2003-2007


2003 2005 2007 Average annual
€ 1,000 € 1,000 € 1,000 change in value
million tonnes million tonnes million tonnes
Total EU 32,013 2,563 39,414 3,109 46,264 3,501 +11.1%
of which:
Germany 8,189 532 9,511 692 11,241 795 +9.3%
UK 6,556 456 8,154 578 9,236 677 +10.2%
France 4,312 261 5,049 323 5,490 345 +6.8%
Italy 3,303 342 4,340 362 5,360 329 +15.6%
Spain 2,132 154 3,249 267 4,293 337 +25.3%
Netherlands 2,236 350 2,535 245 2,726 204 +5.5%
Belgium 1,997 158 2,348 197 2,658 226 +8.3%
Denmark 927 64 1,216 82 1,461 96 +14.4%
Sweden 672 45 814 55 947 64 +10.2%
Austria 334 21 480 30 555 56 +16.5%

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Page 29 of 56
THE OUTERWEAR MARKET IN THE EU

2003 2005 2007 Average annual


€ 1,000 € 1,000 € 1,000 change in value
million tonnes million tonnes million tonnes
Greece 176 13 266 21 439 38 +37.3%
Poland 8 2 271 59 403 69 #
Ireland 166 11 252 10 313 14 +22.1%
Finland 133 10 195 15 227 17 +17.7%
Czech Rep. 214 44 159 50 218 64 +0.5%
Slovakia 72 14 39 12 183 79 +38.5%
Romania 53 33 148 45 134 48 +38.2%
Portugal 56 4 77 6 85 7 +12.9%
Hungary 133 14 100 26 67 7 -12.4%
Bulgaria 69 16 58 15 52 12 -6.2%
Slovenia 86 5 43 3 47 3 -11.3%
Lithuania 31 3 23 3 37 3 +4.8%
Luxembourg 33 5 27 4 25 4 -6.1%
Latvia 17 1 16 2 21 2 +5.9%
Estonia 37 2 10 1 17 1 - 3.5%
Cyprus 49 2 19 3 16 2 -16.8%
Malta 22 1 15 3 15 2 -8.0%
Source: Eurostat (2008)

4.4 Exports

The EU member states exported 1.8 billion tonnes of outerwear with a value of € 61.6 billion in
2007, representing an annual increase in value of 3.9% in 2003-2007. A slightly decreasing
share of 24% went to countries outside the EU. Export activities by EU countries vary strongly.
The leading EU exporter of outerwear was Italy (22% of total EU exported value), followed by
Germany (16%), France (10%), Belgium (8%), Spain, the UK and The Netherlands (each 6%).

As described in the previous chapters, EU exporters suffered, during the review period, from
the appreciation of the euro against the US dollar. An overview of exports of outerwear by the
EU countries (in volume and value) is given in the table below.

Table 4.9 EU exports of outerwear, 2003-2007, in volume and in value


2003 2005 2007 Average annual
€ 1,000 € 1,000 € 1,000 change in value
million tonnes million tonnes million tonnes 2003-2007
Total EU 53,271 1,623.8 56,558 1,798.2 61,600 1,795.4 +3.9%

Italy 12,231 224.3 12,596 213.6 13,768 228.8 +3,1%


Germany 7,532 188.0 8,455 286.8 9,902 317.7 +7,9%
France 5,025 115.7 5,507 138.7 6,276 156.0 +6,2%
Belgium 3,907 107.3 4,410 133.2 4,934 156.6 +6,6%
Spain 2,521 60.1 2,918 67.7 3,578 90.9 +10,5%
United Kingdom 3,221 134.7 3,267 161.8 3,557 143.1 +2,6%
Netherlands 2,960 114.8 3,115 175.5 3,549 188.0 +5.0%.
Romania 3,153 155.0 3,276 139.8 2,780 105.4 -3.0%
Denmark 1,720 37.3 1,986 40.0 2,286 39.7 +8,2%
Portugal 2,498 32.8 2,057 26.5 2,130 25.3 -3.7%
Poland 1,407 50.4 1,410 45.6 1,424 45.3 +0,3%
Austria 751 21.0 1,285 36.0 1,341 52.5 +19,6%
Bulgaria 1,147 80.4 1,189 73.7 1,241 65.4 +2,1%
Czech Rep. 409 16.8 800 23.5 825 23.6 +25,4%
Greece 1,162 132.7 915 115.9 762 42.7 -8,6%
Sweden 501 14.5 545 17.1 760 19.0 +12,9%
Slovakia 476 20.5 460 19.0 529 23.5 +2,8%
Hungary 936 38.7 750 22.5 516 15.3 -11,2%
Lithuania 512 25.1 475 14.4 444 16.3 -3,3%
Slovenia 224 4.2 225 4.3 222 4.4 -0,2%
Finland 157 2.9 179 4.1 187 4.6 +4,8%
Estonia 177 6.9 167 6.3 152 5.9 -3,5%

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Page 30 of 56
THE OUTERWEAR MARKET IN THE EU

2003 2005 2007 Average annual


€ 1,000 € 1,000 € 1,000 change in value
million tonnes million tonnes million tonnes 2003-2007
Latvia 135 6.6 146 3.2 131 2.7 -0,7%
Ireland 246 17.0 200 17.5 129 13.9 -11,9%
Luxembourg 101 5.2 123 5.9 121 5.4 +5.0%
Malta 142 10.0 91 5.2 45 3.2 -17,1%
Cyprus 20 0.9 11 0.4 11 0.2 -11,3%
Source: Eurostat (2008)%

A declining share went to countries outside the EU in the period under review: 25% in 2005
and 24% in 2007. The main destinations outside the EU were Switzerland (4% of total EU
exports and 18% of non-EU exports), Russia (16% of non-EU exports), the USA (13%), Japan
(8%), Hong Kong (5%) and Norway (4%).

Woven outerwear accounted for 60% of EU exports (in terms of value), knitted outerwear for
38% and leather garments for 2% in 2007; these were the same percentages as in 2005.
Leading export product groups in the outerwear sector were: woven trousers and shorts (18%
of total EU outerwear exports in 2007), knitted jerseys, sweaters, pullovers etc. (13%), T-
shirts (11%), woven suits and ensembles (6%), woven (8%) and knitted (4%) shirts and
blouses; woven outdoor jackets (6%) and woven sportswear (3%).

EU exports of leather garments increased by 11% during the period 2005-2007 to € 1,035
million, of which two thirds went to other EU countries. The most important destination outside
the EU of this product group remained Switzerland (8% of total exports in 2007) followed by
Russia (6%) and the USA (5%).

Re-exports
Exports by major EU countries as described above include so-called re-exports: imported
products, which are exported to other (mainly other EU) countries. The volume of re-exports
can be estimated when national production statistics are available and the destination of
production can be divided into domestic sales and exports by industry. For instance: available
production figures in The Netherlands are rather limited and include production abroad by
manufacturers. For that reason, re-exports by The Netherlands cannot be determined,
however, it can be assumed that about 40% of Netherlands outerwear imports is re-exported
or that almost 80% of exports of outerwear consists of re-exports. Besides The Netherlands,
re-exports by Germany, Belgium and Denmark are significant, while re-exports in the other
major EU countries are more limited, but growing strongly.

4.5 Opportunities and threats

± An increasing share of 51% of the outerwear imports into the EU came from DCs in 2007.
This percentage was significantly higher in the following product groups: T-shirts (56%),
babies’ garments (knitted 68% and woven 66%), woven outdoor coats and jackets (55%),
woven skirts (53%), woven shirts and blouses (54%) and leather garments (61%). The
percentage was significantly lower for the product groups: jerseys and pullovers (47%),
knitted overcoats and outdoor jackets (47%), woven suits and ensembles (39%) and
woven indoor jackets (40%), woven dresses (48%) and knitted sportswear (45%).
± The agreement between the EU and China (10-06-05) to limit Chinese exports to the EU of,
among others, sweaters, jumpers etc., T-shirts, men’s trousers blouses and dresses ended
on December 31, 2007.
+ Many factors like, among others, increasing costs, lack of workforce and quality and longer
lead times limits the growth of Chinese exports. These criteria mean the relative advantage
of China over other countries, such as India, Bangladesh, Vietnam etc., is decreasing.
+ Imports from DCs will grow faster than total imports in the coming years, mainly to the
detriment of other (EU and non-EU) countries.

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THE OUTERWEAR MARKET IN THE EU

+ Import prices will be under pressure and the decrease in average import prices will put
further pressure on EU producers. In particular, the effect on the elimination of quotas will
probably lead to a fall in prices.
± To satisfy the requirements of importing European companies, exporters in DCs will be
faced with increased demands for higher quality and environmentally friendly products.
More information concerning environmental aspects can be found in CBI’s website. With the
right strategy and a carefully thought out development plan, there is no reason why these
challenges cannot be met.

4.6 Useful sources

• EU Expanding Exports Helpdesk - http://exporthelp.europa.eu Î go to: trade statistics


• Eurostat – official statistical office of the EU - http://epp.eurostat.ec.europa.eu Î go to
‘themes’ on the left side of the home page Î go to ‘external trade’ Î go to ‘data – full
view’ Î go to ‘external trade - detailed data’
• Understanding Eurostat: Quick guide to easy comext Î
http://epp.eurostat.ec.europa.eu/newxtweb/assets/User_guide_Easy_Comext_20080117.p
df
• Euratex bulletins - http://www.euratex.org

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Page 32 of 56
THE OUTERWEAR MARKET IN THE EU

5 Price developments
5.1 Price developments
The clothing market in the EU countries is intensively competitive and prices vary widely
according to the product and type of outlet. A rough indication of differences in price levels by
types of outlets has been given in chapter 2. EU outerwear retail prices grow more slowly than
overall prices. Countries where pricing is similar have been identified.

According to a study by Eurostat on comparative footwear and clothing price indices, there
were five clusters of countries where prices are higher or lower than the average (100):
• In descending order from the highest, Finland (121), Luxembourg (118), Sweden (115),
Austria (112), Lithuania (113), Latvia (113) and Italy (111).
• Countries with above average prices were Belgium (110), Estonia (109), The Netherlands
(109), Greece (108), Denmark (108), Spain (103), Cyprus (103) and Malta (103).
• Countries on the EU average were Germany (100) and Slovakia (100).
• Countries with below average prices were Ireland (93), Czech Rep. (93), Hungary (91),
France (91), Portugal (91) and UK (91).
• At the other end of the spectrum, with the lowest prices were Slovenia (85), Poland (85),
Romania (65) and Bulgaria (58).

Some markets in the EU shrank, while most others are growing at a slower pace. This
development has placed pressure on price levels. Due to the diversity in products, it is not
possible to focus on prices for individual products.
Table 5.1 gives an overview of consumer and import prices in the individual EU countries
during the period 2005-2007.

Table 5.1 Consumer and import prices of outerwear in the EU, 2005-2007
Consumer prices Import prices
2005-06 2006-07 2005-06 2006-07
Austria -0.8% -1.4% -1.8% -1.0%
Belgium -1.1% -1.5% -2.3% -6.8%
Bulgaria +5.4% +4.8% +10.4% +16.6%
Cyprus +1.3% +6.5% +1.2% +3.7%
Czech Rep. -3.8% -4.3% -48.2% +17.2%
Denmark -0.3% -0.4% -1.4% +2.0%
Estonia +4.8% +2.6% +5.5% +4.2%
Finland -1.8% +0.4% +0.5% -4.3%
France +2.2% +1.0% -0.1% -4.1%
Germany -1.9% -1.2% +3.3% -7.6%
Greece +3.7% +3.3% +7.5% +4.5%
Hungary +3.4% +1.5% +39.3% +32.6%
Ireland -3.6% -3.3% -4.2% -2.3%
Italy +1.0% +0.6% +18.6% +4.2%
Latvia +8.0% +5.5% +9.9% +6.6%
Luxembourg : : -36.0% +33.0%
Malta -1.2% : -3.3% -2.2%
Netherlands +0.3% +1.3% +12.9% -8.8%
Poland -5.6% -2.9% +5.8% +21.5%
Portugal +1.1% +0.1% +0.5% -9.7%
Romania +5.8% +4.4% : :
Slovakia +1.7% -0.2% +1.5% -33.3%
Slovenia +1.5% +0.6% -2.1% +6.9%
Spain +1.3% +1.0% +3.1% -4.3%
Sweden +2.4% +2.9% -1.7% -5.1%
UK -4.4% -3.4% -0.9% -5.0%
EU -1.4% -1.1% -1.8% -2.9%
Source: Euromonitor and Eurostat (2008)

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THE OUTERWEAR MARKET IN THE EU

In some EU countries (UK, Belgium, Austria and Ireland) the drop in import prices stimulated a
drop in consumer prices and a corresponding growth in retail sales. Consumer prices in the EU
decreased less in the review period than import prices. Without entering into a polemic, it is
worthwile to stress that in recent studies it was confirmed that there is a correlation between
the type of retail structure in the clothing market and the changes in consumer prices.
However, several other elements pollute the way in which each market react to the import
price-drop.

Although price is not the only marketing tool for exporting outerwear to EU markets, it is
certainly a very important one. Concentration of buying power, increasing supply and global
sourcing of clothing put pressure on processes and margins throughout the value chain.
Exporters should have:
• A clear insight into their cost prices for exports to EU markets, in order to set a minimum
selling price. At least all variable costs and part of the fixed costs should be covered by the
selling price. If the market price is lower than the minimum selling price, a loss situation
can easily occur. Although this could be acceptable for individual orders in order to prevent
larger losses (stock losses), in the longer term this situation will undermine the financial
stability of the company.
• Try to ensure efficiencies in operations in order to decrease cost prices, for example:
reduction of stocks, more efficient production runs, negotiate lower purchase prices for raw
materials and packing materials, etc.
MARKET SURVEY: THE FOOTWEAR MARKET IN THE EU
5.2 Useful sources
There is a number of ways to find out about EU outerwear prices, depending on whether you
want to find out about manufacture, wholesale or retail prices. A good way to obtain
information about prices and price levels in the EU is by visiting one of the major trade fairs or
trade centres or by contacting a manufacturer or a wholesaler. They may not always be
prepared to discuss prices openly, but looking at both sets of prices will also give you an idea
of margins. However, you should always ensure that you are comparing the same thing. Some
products may appear to be similar, but there may well be very sound reasons why their prices
differ.

Shopping in the prospective target country, at several retail shops is another good way of
obtaining information about prices at retail or consumer level, but also about fashion, colours
and qualities. You can find prices in mail order catalogues, but the main source now is Internet.
There are many Internet websites providing retail prices. Many of them are country specific
and mentioned in the surveys covering individual countries.

A good link to wholesalers and their prices in the UK is the UK Wholesale Suppliers Directory
http://www.thewholesaler.co.uk/trade/distributor/Clothing_and_fashion_UK_wholesale_directo
ry

To see how the same product compares across different EU countries, you may best be served
by looking at websites of retailers (which are sometimes also manufacturers) which have a
presence in a number of EU countries, and by visiting the individual country sites.

Prices charged by competitors can be found by browsing their Internet sites or looking for
general sites like http://www.globalsources.com or http://www.alibaba.com.

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Page 34 of 56
THE OUTERWEAR MARKET IN THE EU

6 Market access requirements


As a manufacturer in a DC preparing to access EU markets, you should be aware of the market
access requirements of your trading partners and the EU governments. Requirements are
demanded through legislation and through labels, codes and management systems. These
requirements are based on environmental, consumer health and safety and social concerns.
You need to comply with EU legislation and have to be aware of the additional non-legislative
requirements which your trading partners in the EU might request.

For information on legislative and non-legislative requirements, go to ‘Search CBI database’ at


http://www.cbi.eu/marketinfo, select outerwear and the EU in the category search, click on the
search button and click on market access requirements.

There is no EU quality standard for outerwear, sportswear and clothing accessories. Most of the
importers (manufacturers, wholesalers, retail organisations etc.) work with certain minimum
requirements. In this respect they have formulated and stipulated minimum quality
requirements, relating to both materials and make. The technical committee of the European
Clothing Association (ECLA) published an example of recommendations concerning
characteristics and faults in woven and knitted fabrics intended to be used for clothing, in which
a distinction is made between:
• recommendations, limited to the characteristics of fabrics, which are detectable, by an
experienced person with or without the aid of instruments in general use. A fault is
considered to exist if the irregularity is evident in the fabrics as delivered or is detrimental to
the final garment;
• recommendations, limited to the characteristics of fabrics, which can only be detected with
the aid of suitable equipment. Each characteristic described comprises: definition, method of
testing and minimum quality standards and as far it occurs: possible allowable tolerances
compared with the values of the sample and eventual commercial implications.

Methods of testing fabrics and/or garments are mainly based on ISO standards
(http://www.iso.org) and otherwise on European norms (EN) or national standards (DIN, NEN
or BS, respectively for Germany, The Netherlands and UK), like:
• care labelling (ISO 3758);
• dimensional stability aspects, like steaming (DIN 53894), fusing (DIN 54311),
washing/tumbling (ISO 3759, 5077 and 6330), dry cleaning (ISO 3175);
• mechanical and physical properties like tensile strength strip (ISO 5081), tensile strength
grab (ISO 5082), tear strength (ISO 9290), seam slippage (BS 3320), abrasion resistance
(ISO 2313), crease tendency/recovery (ISO 9867), pilling tendency (BS 5811-ICI; ISO
12945-Martingdale), fibre penetration (SIS 650047), spray test (ISO 4920) etc.;
• colour fastness related to several aspects like washing, light, water etc. (ISO 105).

Despite EU harmonisation, which enables free trade between EU member states, individual
markets have different requirements regarding garment types, sizes, colours etc.

For more information on non-legislative requirements applicable to outerwear go to the CBI


website at http://www.cbi.eu/marketinfo, select your market sector and the EU in the category
search, click on the search button and click on your subject of interest under non-legislative
requirements for an overview of all documents on the subject concerned.

Packaging
Information on packaging legislation is included in the CBI market information database.
Additional information on packaging can be found at the website of ITC on export packaging:
http://www.intracen.org/ep/packaging/packit.htm

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THE OUTERWEAR MARKET IN THE EU

Size marking
The following body measurements are used in the EU: body length, chest, waist and hip size.
These four basic measurements determine the fitting of the garments. The measurements in
the tables below are an indication and averages of the size tables used by home shopping
companies and international clothing chains. The following sizes are generally used in the EU
(note that, for all sizes, the body length of women is 168 cm and for men 176 cm):

Table 6.1 Size table for women's outerwear (body sizes) in cm


Character sizes XS S M L XL XXL
figure sizes 34 36 38 40 42 44 46 48 50
Chest width 80 84 88 92 96 100 104 110 116
Waist size 61 64 68 72 76 81 86 91 97
Hip girth 86 90 94 98 102 106 110 114 118

Table 6.2 Size table for men's outerwear (body sizes) in cm, except trousers/jeans
Character XS S M L XL XXL
sizes
figure sizes 42 44 46 48 50 52 54 56 58 60
Chest width 84 88 92 96 100 104 108 112 116 120

Table 6.3 Size table for men's trousers (garment sizes) in cm:
figure sizes 40 41 42 43 44 45 46 47 48 49
Waistband width 68 68 72 72 76 76 80 80 84 84
side length 100 108 102 110 104 111 104 112 106 112

figure sizes 50 51 52 53 54 55 56 58 60 62
Waistband width 88 88 92 92 97 97 102 108 114 120
side length 106 113 108 114 108 114 111 111 111 111

In the major EU countries, except the UK and Ireland, the same figure sizes are used, although
the actual sizes are not equal. For instance: for a woman with a bust of about 88 cm, a waist of
about 68 cm and hips of about 94 cm, her dress size at the moment is 38 in Germany,
Denmark and The Netherlands, C38 in Sweden and Finland, 40 in Belgium and France, 44 in
Italy, 44/46 in Spain and Portugal. As mentioned above, the UK uses a different sizing system:
figure size 36 in Germany (and some other EU countries) is indicated in the UK (and Ireland)
as 8, 38 as 10 etc.
International clothing size comparisons can be found at several websites, such as:
http://en.wikipedia.org/wiki/Clothing_sizes or
http://www.brightonarea.co.uk/ebay/conversion.html

Because of e-commerce and internationalisation of retail shops (for instance: H&M), one can
say that the above size table is used as a standard in all EU countries. In some cases a
garment will have an indication for all different countries with their own size, as mentioned
above.

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.

Table 6.4 Conversion table for women’s sizes:


Inches 26 27 28 29 30 31 32 33 34 35 36
Sizes 34 - 36 38 - 40 42 - 44 - 46

In the table below, jeans sizes are compared with the usual size marking for outerwear.
WW (horizontal) means: waistband width in inches and SL (vertically) means: side length
(in-seam) in inches.

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THE OUTERWEAR MARKET IN THE EU

Table 6.5 Conversion table for men’s sizes:


WW 27 28 29 30 31 32 33 34 35 36 38 40 42
SL: 32 - - - - - - - 24 - 25 26 - -
34 84 86 88 44 - 46 48 50 - 52 54 56 58
36 - - - - 90 94 - 98 - 102 106 - -
Size marking for babies’ and children’s wear
The following groups are those mainly distinguished:

Years groups
0- 2 babies Infants
2- 6 toddlers
6 – 12 middle group/school
12 – 14 preteens
14 – 16 teenagers

For the purposes of the sizing of clothes, children are best grouped into infants (younger than
7 years), boys and girls. Infants also constitute a group of their own, because their garments
are usually not 'fit-critical'.

Infants’ wear (body sizes)


The Swedish 'Centilong' system based on height values is used in most of the EU countries.
The size range varies from 50-104 cm with an intersize of 6 cm. There is one standard for all
these sizes and they can be ranked as follows:

Table 6.6 Infants’ wear (body sizes/heights) in cm


Height (in cm) 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

Other children’s wear


Depending on the garment concerned, the following dimensions are used for boys’ and girls’
wear:
Table 6.7 Boys' wear (body sizes/heights) in cm.
Height 110 116 122 128 134 140 146 152 158 164 170 176 182 188 194
Chest 58.0 59.0 60.0 62.0 64.0 67.0 70.0 73.0 77.0 81.0 85.0 88.0 91.0 94.0 97.0
Waist 54.0 55.0 56.0 57.0 59.0 61.0 63.0 65.0 68.0 71.0 74.0 77.0 80.0 83.0 86.0
Hips 59.0 61.0 63.0 65.0 68.0 71.0 74.0 77.0 81.0 85.0 89.0 92.0 95.0 98.0 101.0
Arm length 39.1 41.4 43.7 46.0 48.3 50.6 52.5 55.3 57.5 60.0 62.5 65.0 67.0 69.0 71.0
Inside leg length 47.5 51.0 54.5 58.0 61.5 65.0 68.0 71.0 74.0 77.0 80.0 83.0 86.0 89.0 92.0
Neck girth 28.0 28.5 29.5 30.5 31.5 32.5 33.5 34.5 35.5 36.5 37.5 38.0 38.5 39.0 39.5

Table 6.8 Girls' wear (body sizes/heights) in cm.


Height 110 116 122 128 134 140 146 152 158 164 170 176 182 188
Chest 58.0 59.0 60.0 62.0 64.0 67.0 71.0 75.0 79.0 83.0 86.0 89.0 92.0 95.0
Waist 54.0 55.0 56.0 57.0 59.0 61.0 63.0 65.0 67.0 69.0 71.0 73.0 75.0 77.0
Hips 61.0 63.0 65.0 67.0 70.0 73.0 77.0 81.0 85.0 89.0 93.0 96.0 99.0 102.0
Arm length 39.1 41.4 43.7 46.0 48.3 50.6 52.8 55.0 57.3 59.5 61.5 63.5 65.5 67.5
Inside leg length 47.5 51.0 55.0 59.0 63.0 67.0 70.0 72.5 75.0 77.5 80.0 82.5 85.0 87.5
Neck girth 28.0 28.5 29.0 29.5 30.0 30.7 31.5 32.2 33.3 33.7 34.5 35.5 36.5 37.5

Shirts and blouses


Sizes for men’s shirts are based on neck girth in cm or inches. They vary respectively from 37-
48 cm and from 15-19 inches and can be extended with other measurements, of which arm
length is the most important. The sizes XS-XXL are also used for leisure or sport shirts,
whether or not in combination with the usual shirt size. The standard outerwear sizes are used
for women’s and children’s wear.

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Page 37 of 56
THE OUTERWEAR MARKET IN THE EU

Gloves
Gloves are the only clothing item for which there has been a reasonably consistent sizing
system, applicable internationally, the so-called French sizing system. Normal sizes for
women’s gloves are in inches.

Table 6.9 Women’s gloves sizes in inches


6 6¼ 6½ 6¾ 7 7¼ 7½ 7¾ 8 for leather
6 6½ 7 7½ 7¾ 8 for cotton and nylon
The introduction of stretch nylon yarns has resulted in one-sized gloves that fit any hand from
size 6 to size 8. Popular sizes for men have been 7½ - 11½ and for women 6-8½, both with ½
-inch steps between sizes.

It should be noted that different interpretations by manufacturers, wholesalers and retail


organizations can occur regarding sizing! Different interpretations are also possible
between different countries. Exporters should discuss this in detail with (potential) clients,
to obtain clear information.

Labelling
There are two kinds of requirements in the EU: mandatory and voluntary. The mandatory
requirement for all EU countries is the fibre content or the composition of the textiles used.
With regard to fibre content: the indication 100% or pure can be used within a margin of 2
percent of the weight of the final product. Other fibres with a weight of less than 10 percent of
the weight of the final products can be mentioned. In that case all (eventual) other fibres have
to be mentioned. The official language of the country has to be used on the labels.
Optional requirements are:
• Care-labelling/washing instructions. An international care-labelling programme, patterned
after similar programmes, is in use in many countries including countries outside the EU.
The programme makes use of five basic symbols which are colour-coded; the symbols
relate to the properties of colour fastness, dimensional stability, effect of retained chlorine
(bleach), maximum safe ironing temperatures and certain other properties. In the EU
symbols as published by Ginetex (http://www.sartex.ch/ginetex_web/ginetex/default.htm)
are obligatory.
• Origin marking: the name of the country of origin should be mentioned. It is not permitted
to mention the name of a country other than the country of origin.
• Other possibilities are: size, brand or product name and other consumer information. There
is an increasing awareness of the need to keep the consumer informed about his/her
prospective and current purchases.

Regarding Austria and Italy, care-labelling/washing instructions are mandatory requirements,


while in Spain the complete address of the exporter (otherwise the importing company) has to
be mentioned on a label. Countries with mandatory requirements other than mentioned above
are discussed in the relevant survey.
The place of the label in garments varies (mostly neck or side-seam) and can be part of the
importer’s requirements.

Tariffs and quotas


Up-to-date information on import tariffs and an updated list of least-developed countries
(LDCs) can be obtained from the Customs authorities in Rotterdam, The Netherlands, through
their on-line system, known as the Integrated Tariff of the European Communities (TARIC) at
http://www.douane.nl. Click on ‘Business’ and on ‘Imports’ where you will have to mention the
HS code of the clothing product concerned; a detailed list of HS codes can be found in
Appendix A of this survey. Other sources of information: the EU export helpdesk at
http://exporthelp.europa.eu.

The agreement between the EU and China (June 2005) to limit Chinese exports to the EU of,
among others, pullovers, men’s trousers, blouses, T-shirts, dresses etc., came to an end on
December 31, 2007. The European Commission decided not to continue imposing quotas on EU

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THE OUTERWEAR MARKET IN THE EU

imports from China. More information can be found on http://trade.ec.europa.eu/sigl or


http://exporthelp.europa.eu.

Anti-dumping measures
Anti-dumping implies that, under WTO regulations, exporters are expected to sell their
products at a 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. The latest information on anti-dumping can be found at http://exporthelp.europa.eu.

Anti-fraud investigations and actions


The EU is stepping up anti-fraud investigations and actions against fraud, designed to:
• circumvent trade policy measures, such as anti-dumping measures;
• benefit illegally from preferential treatment such as that under RGSP;
• cheat consumers (claiming EU origin for products produced elsewhere);
• combat counterfeiting and piracy (copying exclusive designs and models without permission
of the owner).

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THE OUTERWEAR MARKET IN THE EU

7 Opportunity or threat?

An overview of the general opportunities and threats has been given at the end of the previous
chapters: Consumption (chapter 1), Production 2 and Trade (3 and 4) in this EU survey.
Specific opportunities in each EU market can be found in Chapters 1 and 3 of the CBI market
surveys on individual countries. However, to define the opportunities more realistically, it is
necessary to know the trends, in particular in the fashion industry, like outerwear. Once the
trend is clear, it is important to know which target group in which country is involved.

Knowing the trends


• There is plenty of information available on trends and you can find some of the main trends
in this survey and seasonal trends in CBI fashion forecasts (http://www.cbi.eu/marketinfo),
also in several magazines as mentioned in the surveys of individual countries.
• In order to understand the trends, i.e. where they come from and how long they are likely
to last, try to recognize the underlying demographic changes and consumer life styles. Try
to identify a trend that may be suitable for your product, for example women are becoming
larger and heavier, which has led to a marked increase in demand for bigger sizes.
• You should be aware that not everybody follows trends. For every trend there is a counter
trend which presents untapped growth opportunities as well as potential threats. For
example, while there is a rapid increase in the number of people who choose fashionable
outerwear as a part of their life style, there is another growing group of people who prefer
quality and comfortable outerwear, which they can use for a long time.
• It is important to know that trends are firstly picked up in Western and Northern EU
countries. The twelve new member states lag behind the others in terms of the adoption of
new trends or developments. However, their integration into the EU has meant that this
process will be speeded up, encouraged by media and by internationally operating clothing
chains.

Approach of the EU market


• The EU and, generally spoken, almost all EU countries have a high share of DC imports in
the outerwear sector, which indicates that most EU countries are receptive to imports from
DCs.
• Most EU companies have willingly sourced in cheaper labour countries (mostly DCs) and
manufacturers have even shifted operations.
• Try to find out which EU countries really offer an export opportunity. Both in terms of
consumption (and production) and imports, a few countries have the biggest share, but
these big countries have generally lower rates of growth. The smaller countries have shown
bigger rates of growth, but the starting volumes are somewhat smaller. You can assess this
and determine whether it could be favourable for you to start submitting offers to one
group or the other - or in one country belonging to the first group, or in a country
belonging to the second group.
• Furthermore, all product groups seem to move in particular and different ways in each of
the countries. Place your offer in the country in question according to these movements
and the different volumes of imports (i.e. cotton knitwear in Spain, woven cotton trousers
in CEECs, etc.). Generally, it will be easier for exporters in DCs to stay out of big producing
countries and concentrate on medium-sized markets, where good price-quality ratios can
facilitate entry.
• Another important issue is the variation in average import prices. The most sustainable and
enduring way for DCs to enter the outerwear sector in the EU is by placing their offer in
product and country markets where average import prices are increasing and, hence, value
is being enhanced and not eroded. Decreasing average import prices indicate erosion, while
increasing average import prices indicate value enhancement. Product groups, which have
increasing average import prices at EU level are, among others: knitted synthetic and
woollen shirts for both sexes, knitted heavyweight woollen jerseys, pullovers etc. for both
sexes and lightweight (fine knit roll, polo, turtleneck etc.) items for both sexes and woven

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THE OUTERWEAR MARKET IN THE EU

denim trousers for women and woven shirts/blouses for women. This analysis can be done
for the individual EU countries
• Instead of just focusing on a few large EU markets, it would be better to summarise all
opportunities and threats you have found in the outerwear surveys on matters such as:
market development, your target group, market niches, trends in fashion, design,
production trends, outerwear trade flows, price developments, market access requirements.
Once you have recognised your opportunities, you will have an idea as to which are the
best EU countries to approach.

Identify your strengths and weaknesses


• The result of this analysis depends on your specific situation e.g. proximity to the EU
market, small or large company, flexibility, overhead costs, knowledge of your export
market etc.
• The next step is to examine your own strengths and weaknesses. Try to determine which
type of exporter you are (CMT or OPT producer, FOB producer, producer of private labels or
producer of own design, mainly using brand trademarks). Topics to be assessed are
described in ‘Guidelines for exporting outerwear to the EU’.
• For example, if you are trying to enter the Spanish market at the top or middle segments of
the market, your own capabilities are crucial for success. Design is highly valued in Spain
so, as a new supplier, you must be able to provide your customer with access to a quality
design team which understands the rapidly changing trends and styles. This is as important
as production skills and capacity.
• If you are able to do this, you have a good opportunity. However, as Spanish fashion
changes rapidly, buyers are not always loyal to particular overseas suppliers, so you may
lose out to another supplier in your own country or a neighbouring country. This is a major
threat, especially when you already have made some initial investment.

So, try to optimise your strengths and see how to overcome weaknesses in the future, as well
as how to deal with threats in the marketplace. This analysis will be crucial for your decision on
whether or not to start exporting to the EU.

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THE OUTERWEAR MARKET IN THE EU

APPENDIX A Product characteristics


A-1 Product groups and types of products
This survey ‘The outerwear market in the EU’ includes knitted and woven outerwear for men,
women and children, clothing accessories and leather garments. Besides this product classification
(mainly used for trade statistics), the segments women’s outerwear, men’s outerwear and
children’s outerwear are included (used for consumption statistics).
The broad definition of outerwear means that, in addition to this report, the CBI market
surveys 'Bodywear’ (covering underwear, nightwear, swimwear and hosiery) and Personal
Protective Equipment (including workwear) facilitate a complete view of all types of clothing
made of textiles.

Knitted and woven outerwear


Short descriptions of the main (textile) products under review are given below.
• Coats and raincoats. Coats can be described as hip-length to full-length outerwear with
sleeves designed to be worn over other clothing for protection against cold/wet. Besides
various lengths, there are variations in general use: fitted, straight or full (swing back)
silhouette, buttoned (single- or double-breasted) or wrapped, with varying hem lengths and
design details. Types of coats are overcoat or topcoat, car coats, capes, cloaks etc. Under
the raincoat category come, among others: all-weather coat (waterproofed or water-
repellent coat sometimes made with zip-in linings, usually of acrylic pile, to adapt to various
temperatures); trench coat and rain cape. It should be noted that coat types like Burberry
and London Fog are based on registered trademarks.
• Outdoor jackets (anoraks etc.); in statistics, in the trade and among consumers, outdoor
jackets are referred to under various different names, like anoraks, wind-cheaters, wind-
jackets, ski-jackets, blouson jackets, bomber jackets etc. Casual jackets generally come in
two lengths: full jackets length or the shorter (waist-length) blousons or bomber jackets.
Outdoor jackets come in a wide range of materials: textile fabrics as well as leather/suede
(see below). Textile fabrics cover common fabrics like cotton, polyester, wool and several
mixtures and high-performance fabrics and/or finishes such as Sympatex, Gore-Tex,
Aquatex, Polartec, Isotex, Teflon etc.
• Suits and ensembles include combinations of jacket and trousers and, possibly,
vests/waistcoats for men designed to be worn together, either in matching fabrics and/or
colours (suits eventually with vest/waistcoat) or contrasting fabrics (ensembles). For
women, the combination can be extended to jackets and/or trousers, dresses and/or
jackets, jackets and/or skirts and dresses and coats.
• Indoor jackets are short coats worn by men and women. These can be single-breasted,
double-breasted, zippered or wrapped; dressy, casual or functional depending upon design
and fabrics used. Another name used for an indoor jacket is blazer.
• Dresses are made of lighter weight fabrics, synonymous with robe, frock or gown. Current
fashions include among others: A-line, blouson, coatdress, jumper (one-piece dress without
sleeves and with lower neckline), wrap, cardigan dress, shirtdress, step-in dress and the
princess (classic-styled dress with vertical panels that fit the body and flare in the skirt).
• Skirts, current skirt styles include among others: A-line (with flare, wider at hem than at
hip), straight line (fitting the waist and hip), culotte (a skirt-pant variation), wrap and
circle.
• Jeans are defined as being a type of construction rather than a particular type of fabric
and, therefore, jeans made from fabrics such as corduroy and other cotton fabrics are
covered in the survey, as well as denim. Most denim is still 100% cotton, although a small
volume of polyester/cotton denim is produced and traded worldwide.
• Trousers other than jeans In particular, the popularity of casual trousers (chinos) and
leisure trousers (workers, combat trousers) is high, while corduroy represents a small part
of the market. Fabrics of wool and polyester/wool are used for formal trousers for men.
• Shirts, traditionally the shirt market covers two main categories: conventional or dress
shirts and casual or leisure shirts, the latter also being referred to as sports shirts.

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THE OUTERWEAR MARKET IN THE EU

Generally spoken, dress shirts are worn with a tie under a suit or indoor (tailored) jacket or
blazer in office locations and on more formal social occasions. This type of shirts is mostly
long-sleeved of woven cotton or cotton/polyester having a collar for a tie and buttons down
the front. Leisure shirts, as their name implies, are likely to be worn in less formal
situations in the home, and for leisure activities. This type of shirt can be long- or short-
sleeved.
• Jerseys, polo- and sweatshirts etc. This category of knitwear can be divided into heavy
(more than 600 grams per article) and lightweight products. The former covers jerseys,
pullovers, cardigans and waistcoats (for winter use, mainly wool or wool mixes), the latter
covers fine knit roll, polo or turtle neck jumpers and pullovers, which can also be worn in
combination with suits and indoor jackets.
• T-shirts can be used for many purposes. Functions vary from outerwear especially in
summer months (plain, striped, printed), underwear (mainly plain white) especially in
winter months, part of a sport-outfit (plain with logo) to nightwear (oversized). About 90%
of T-shirts is made of cotton.
• Babies’ garments include outerwear for babies (0-2 years and a body height not
exceeding 86 cm) such as jackets, coats, one and two piece suits, trousers, dresses,
pullovers, blouses, T-shirts, caps, sets, gloves and socks. Products like blankets, sheets,
tights etc. are not covered in this report.
• Active sportswear includes items such as track suits and jogging suits, of which the
variety in materials and styling of track suits is wide. Other items are sports dresses, sports
skirts and sports trousers, for instance footless maillots/leggings, cyclist pants and special
sports suits, for instance surf suits, sail suits, ski overalls, gymnastics and fitness/aerobics
suits. Skiwear consists of padded, waterproof jackets and stretchable pants or salopettes.
Active sportswear does not include swimwear in this survey.

Clothing accessories include the following main products: gloves, mittens and mitts, knitted
or woven from wool, cotton or synthetic fibres (mainly acryl). It also includes scarves, mufflers,
mantillas, veils and the like, knitted or woven from silk, wool, synthetic fibres, artificial fibres
or blends. In the higher-price segments, silk and wool are often used; acryl is mainly used in
the low-priced segments. For woven and knitted ties, bow ties and cravats are silk, man-made
fibres (polyester) or blends mainly used.

Leather garments
Leather garments include mainly jackets and coats, besides other garments, like trousers,
skirts, shirts, waistcoats, dresses and body warmers. Besides by type of product, the market
for leather garments can be divided into combinations of criteria, such as (among others):
Leather used: variety of origin (sheep/lamb, goat/kid. pig/piglet, cow/calf etc.)
Finishing techniques: variety of finish (suede, split, shammy or chamois, nappa, nubuck etc.)
Functional aspects: some categories of consumers prefer functional aspects above
fashion aspects in leisure and/or profession, like for motorcycle
driving (protective aspects) and for sexual activities (gay- and SM-
scene).

In trade statistics, only one HS code covers all leather-made apparel, which means that
specifications are impossible. In general can be said that market information about leather
garments is difficult to obtain.

Classification on clothing behaviour


Besides by gender, the demand side of the outerwear market can also be divided into clothing
behaviour of consumers, mainly based on activities. Herewith the following product categories
are considered:
• Formal clothing, besides formal gowns (like evening dress, dinner dress, wedding gowns,
communion dresses, cocktail dresses etc.), this category includes coats and raincoats, suits
and ensembles, indoor jackets, (other than cotton) trousers, dresses, skirts and blouses;
• Casual wear, like outdoor jackets, shirts, jumpers, cardigans, pullovers made of cotton,
wool, fleece etc. and cotton trousers other than denim;

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THE OUTERWEAR MARKET IN THE EU

• Basic leisurewear, like T-shirts and polo shirts, tops and bodies, shorts/bermudas, jeans,
jackets and sweaters;
• Active sportswear, like tracksuits, jogging suits, ski-suits, shorts, sports branded T-shirts
etc.

A-2 Statistical product classification of outerwear

Combined nomenclature and Prodcom


Two different sets of statistical data are used in this survey. Both sets have been provided by
Eurostat, the statistical body of the EU.

The first set is the trade data based on the Combined Nomenclature (CN) and contains the
goods classification prescribed by the EU for international trade statistics. The CN is an 8-digit
classification consisting of a further specification of the 6-digit Harmonised System (HS). HS
was developed by the World Customs Organisation (WCO). The system covers about 5,000
commodity groups, each identified by a six-digit code. More than 179 countries and economies
use the system.

The second set is derived from Prodcom. The term Prodcom is derived from PRODucts of the
European COMmunity. This is a survey based on products whose definitions are standardised
across the EU to allow comparability between the member countries’ data. Prodcom covers
some 4,800 products which are assigned to some 250 industries (subclasses) as defined by the
Standard Industrial Classification (SIC). Prodcom data contain production, imports and exports.
Based on these data, apparent consumption can be calculated as follows: apparent
consumption=production+imports-/-exports.

Statistical data: limitations


Trade figures quoted in CBI market surveys must be interpreted and used with extreme caution.

The Prodcom data, used in Chapter 2, are less reliable than the import and export statistics
used in Chapter 4, as they are not part of official data collection for Customs. Companies only
have to send in their data on an annual or quarterly basis. The figures sometimes show a
discrepancy between years, e.g. a substantial fall or extraordinary growth. These problems are
caused by inaccurate, inconsistent and untimely reporting by companies. However, Prodcom
data are the only official source for production in the different EU markets. For decision making,
however, these figures are not accurate enough and should be used in conjunction with, and
supported by, further market research.

In the case of intra-EU trade, statistical surveying is only compulsory for exporting and
importing firms whose trade exceeds a certain annual value. The threshold varies considerably
from country to country, but it is typically about € 100,000. As a consequence, although figures
for trade between the EU and the rest of the world are accurately represented, trade within the
EU is generally underestimated.

Furthermore, the information used in CBI market surveys is obtained from a variety of sources.
Therefore, extreme care must be taken in the qualitative use and interpretation of quantitative
data, because it puts limitations on in-depth interpretation of relations between consumption,
production and trade figures within one country and between different countries.

Detailed classification of outerwear by CN codes


Notes:
Chapter 61 applies only to made-up knitted or crocheted articles. Chapter 62 applies only to
made-up articles of any textile fabric other than wadding, excluding knitted or crocheted
articles.

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Page 44 of 56
THE OUTERWEAR MARKET IN THE EU

HS Code Description

42.03.10 Articles of apparel leather or composition leather

61.01. Men's or boys' overcoats, car-coats, capes, cloaks, anoraks (including ski-jackets),
windcheaters, wind-jackets and similar articles, knitted or crocheted, other than
those of heading no.61.03:
- Of wool or fine animal hair:
10.10 -- Overcoats, car coats, capes, cloaks and similar articles
10.90 -- Anoraks, (including ski-jackets), windcheaters, wind-jackets and similar articles
- Of cotton:
20.10 -- Overcoats, car coats, capes, cloaks and similar articles
20.90 -- Anoraks, (including ski-jackets), windcheaters, wind-jackets and similar articles
- Of man-made fibres:
30.10 -- Overcoats, car coats, capes, cloaks and similar articles
30.90 -- Anoraks, (including ski-jackets), windcheaters, wind-jackets and similar articles
- Of other textile materials:
90.10 -- Overcoats, car coats, capes, cloaks and similar articles
90.90 -- Anoraks, (including ski-jackets), windcheaters, wind-jackets and similar articles

61.02. Women's or girls' overcoats, car-coats, capes, cloaks, anoraks (including ski-
jackets), windcheaters, wind-jackets and similar articles, knitted or crocheted,
other than those of heading no. 61.04:
- Of wool or fine animal hair:
10.10 -- Overcoats, car coats, capes, cloaks and similar articles
10.90 -- Anoraks, (including ski-jackets), windcheaters, wind-jackets and similar articles
- Of cotton:
20.10 -- Overcoats, car coats, capes, cloaks and similar articles
20.90 -- Anoraks, (including ski-jackets), windcheaters, wind-jackets and similar articles
- Of man-made fibres:
30.10 -- Overcoats, car coats, capes, cloaks and similar articles
30.90 -- Anoraks, (including ski-jackets), windcheaters, wind-jackets and similar articles
- Of other textile materials
90.10 -- Overcoats, car coats, capes, cloaks and similar articles
90.90 -- Anoraks, (including ski-jackets), windcheaters, wind-jackets and similar articles

61.03. Men's or boys' suits, ensembles, jackets, blazers, trousers, bib and brace
overalls, breeches and shorts (other than swimwear), knitted or crocheted
- Suits:
11.00 -- Of wool or fine animal hair
12.00 -- Of synthetic fibres
19.00 -- Of other textile materials
- Ensembles:
21.00 -- Of wool or fine animal hair
22.00 -- Of cotton
23.00 -- Of synthetic fibres
29.00 -- Of other textile materials
- Jackets and blazers:
31.00 -- Of wool or fine animal hair
32.00 -- Of cotton
33.00 -- Of synthetic fibres
39.00 -- Of other textile materials
- Trousers, bib and brace overalls, breeches and shorts:
-- Of wool or fine animal hair:
41.10 --- Trousers and breeches
41.90 --- Bib and brace overalls and shorts
-- Of cotton:
42.10 --- Trousers and breeches
42.90 --- Bib and brace overalls and shorts
-- Of synthetic fibres:
43.10 --- Trousers and breeches
43.90 --- Bib and brace overalls and shorts
-- Of other textile materials
49.10 --- Trousers and breeches of other textile materials

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Page 45 of 56
THE OUTERWEAR MARKET IN THE EU

49.91 --- Bib and brace overalls and shorts of artificial fibres
49.99 --- Bib and brace overalls and shorts of other textile materials

61.04. Women's or girls' suits, ensembles, jackets, dresses, skirts, trousers, bib and
brace overalls, breeches and shorts (other than swimwear), knitted or crocheted
- Suits:
11.00 -- Of wool or fine animal hair
12.00 -- Of cotton
13.00 -- Of synthetic fibres
19.00 -- Of other textile materials
- Ensembles:
21.00 -- Of wool or fine animal hair
22.00 -- Of cotton
23.00 -- Of synthetic fibres
29.00 -- Of other textile materials
- Jackets and blazers:
31.00 -- Of wool or fine animal hair
32.00 -- Of cotton
33.00 -- Of synthetic fibres
39.00 -- Of other textile materials
- Dresses:
41.00 -- Of wool or fine animal hair
42.00 -- Of cotton
43.00 -- Of synthetic fibres
44.00 -- Of artificial fibres
49.00 -- Of other textile materials
- Skirts and divided skirts:
51.00 -- Of wool or fine animal hair
52.00 -- Of cotton
53.00 -- Of synthetic fibres
59.00 -- Of other textile materials
- Trousers, bib and brace overalls, breeches and shorts:
-- Of wool or fine animal hair
61.10 -- Trousers and breeches
61.90 -- Bib and brace overalls and shorts
-- Of cotton:
62.10 -- Trousers and breeches
62.90 --- Bib and brace overalls and shorts
-- Of synthetic fibres
63.10 --- Trousers and breeches
63.90 --- Bib and brace overalls and shorts
69.10 --- Trousers and breeches of other textile materials
69.91 ---- Bib and brace overalls and shorts of artificial fibres
69.99 ---- Bib and brace overalls and shorts of other textile materials

61.05. Men's or boys' shirts, knitted or crocheted:


10.00 - Of cotton
20.10 - Of synthetic fibres
20.90 - Of artificial fibres
90.10 - Of wool or fine animal hair
90.90 - Of other textile materials

61.06. Women's or girls' blouses, shirts and shirt-blouses, knitted or crocheted:


10.00 - Of cotton
20.00 - Of man-made fibres
90.10 - Of wool or fine animal hair
90.30 - Of silk or silk waste
90.50 - Of flax or of ramie
90.90 - Of other textile materials

61.09. T-shirts, singlets and other vests, knitted or crocheted:


10.00 - Of cotton
90.10 - Of wool or fine animal hair
90.30 - Of man-made fibres

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Page 46 of 56
THE OUTERWEAR MARKET IN THE EU

90.90 - Other

61.10 Jerseys, pullovers, cardigans, waistcoats and similar articles, knitted or crocheted:
- Of wool:
11.10 -- Jerseys and pullovers, containing at least 50% by weight of wool and weighing 600 gr.
or more per article
11.30 --- Men's or boys' jerseys, pullovers, waistcoats etc. (excluding at least 50% by weight of
wool)
11.90 --- Women's or girls' jerseys, pullovers, waistcoats etc. (excluding at least 50% by weight
of wool)
- Of cashmere hair:
12.10 --- Men's or boys' jerseys, pullovers, waistcoats etc.
12.90 --- Women's or girls' jerseys, pullovers, waistcoats etc.
- Of other animal hair
19.10 --- Men's or boys' jerseys, pullovers, waistcoats etc.
19.90 --- Women's or girls' jerseys, pullovers, waistcoats etc.

20.10 -- Lightweight fine knit roll, polo or turtleneck jumpers and pullovers of cotton:
-- Other jerseys etc. for:
20.91 --- Men or boys
20.99 --- Women or girls
- Of man-made fibres:
30.10 -- Lightweight fine knit roll, polo or turtleneck jumpers and pullovers
-- Other:
30.91 --- Men or boys
30.99 --- Women or girls
- Of other textile materials:
90.10 -- Of flax or ramie
90.90 -- Other

61.11. Babies' garments and clothing accessories, knitted or crocheted:


- Of wool or fine animal hair:
10.10 -- Gloves, mittens and mitts
10.90 -- Other babies’ garments
- Of cotton
20.10 -- Gloves, mittens and mitts
20.90 -- Other babies’ garments
- Of synthetic fibres
30.10 -- Gloves, mittens and mitts
30.90 -- Other babies’ garments
90.00 - Of other textile materials

61.12. Track suits, ski suits and swimwear, knitted or crocheted:


- Track suits:
11.00 -- Of cotton
12.00 -- Of synthetic fibres
19.00 -- Of other textile materials
20.00 - Ski suits

61.13. Garments rubberised, impregnated etc.:


00.10 - Garments rubberised
00.90 - Garments impregnated, coated or covered with plastics or other materials

61.14. Special garments for professional sporting or other purposes:


10.00 - Of wool or fine animal hair
20.00 - Of cotton
30.00 - Of man-made fibres
90.00 - Of other materials

61.16. Gloves, mittens and mitts, knitted or crocheted:


91.00 - Of wool or fine animal hair
92.00 - Of cotton
93.00 - Of synthetic fibres
99.00 - Of other textile materials

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THE OUTERWEAR MARKET IN THE EU

61.17. Other made-up clothing accessories, knitted or crocheted:


10 00 - Shawls, scarves, mufflers, mantillas, veils and the like
20 00 - Ties, bow ties and cravats
- Other accessories:
80.10 -- Knitted or crocheted, elasticised or rubberised
80.90 -- Other
90 00 - Parts

62.01. Men's or boys' overcoats, car-coats, capes, cloaks, anoraks (including ski-
jackets), windcheaters, wind-jackets and similar articles, other than those of
heading no. 62.03:
- Overcoats, raincoats, car coats, capes and cloaks and similar articles:
11.00 -- Of wool or fine animal hair
-- Of cotton:
12.10 --- Of a weight, per garment, not exceeding 1 kg
12.90 --- Of a weight, per garment, exceeding 1 kg
-- Of man-made fibres:
13.10 --- Of a weight, per garment, not exceeding 1 kg
13.90 --- Of a weight, per garment, exceeding 1 kg
19.00 -- Of other textile materials
- Anoraks (including ski-jackets, windcheaters, wind-jackets and similar articles):
91.00 -- Of wool or fine animal hair
92.00 -- Of cotton
93.00 -- Of man-made fibres
99.00 -- Of other textile materials

62.02. Women's or girls' overcoats, car-coats, capes, cloaks, anoraks (including ski-jackets),
windcheaters, wind-jackets and similar articles, other than those of heading no.
62.04:
- Overcoats, raincoats and similar articles:
11 .00 -- Of wool or fine animal hair
-- Of cotton:
12.10 --- Of a weight, per garment, not exceeding 1 kg
12.90 --- Of a weight, per garment, exceeding 1 kg
-- Of man-made fibres:
13.10 --- Of a weight, per garment, not exceeding 1 kg
13.90 --- Of a weight, per garment, exceeding 1 kg
19.00 -- Of other textile materials
- Anoraks (including ski-jackets, wind-cheaters, wind-jackets and similar articles):
91.00 -- Of wool or fine animal hair
92.00 -- Of cotton
93.00 -- Of man-made fibres
99.00 -- Of other textile materials

62.03. Men's or boys' suits, ensembles, jackets, blazers, trousers, bib and brace overalls,
breeches and shorts (other than swimwear)
- Suits:
11.00 -- Of wool or fine animal hair
12.00 -- Of synthetic fibres
19.10 -- Of cotton
19.30 -- Of artificial fibres
19.90 -- Of other textile materials
- Ensembles:
21.00 -- Of wool or fine animal hair
22.80 -- Of cotton
23.80 -- Of synthetic fibres
29.18 -- Of artificial fibres:
29.90 -- Of other textile materials
- Jackets and blazers:
31.00 -- Of wool or fine animal hair
32.90 -- Of cotton
33.90 -- Of synthetic fibres
39.19 -- Of artificial fibres

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THE OUTERWEAR MARKET IN THE EU

39.90 -- Of other textile materials


- Trousers, bib and brace overalls, breeches and shorts:
-- Of wool or fine animal hair
41.10 --- Trousers and breeches
41.30 --- Bib and brace overalls
41.90 --- Shorts
-- Of cotton
42.31 --- Of denim
42.33 --- Of cut corduroy
42.35 --- Other cotton
42.59 --- Bib and brace overalls
42.90 --- Shorts
-- Of synthetic fibres
43.19 --- Trousers and breeches
43.39 --- Bib and brace overalls
43.90 --- Shorts
-- Of artificial fibres
49.19 --- Trousers and breeches
49.39 --- Bib and brace overalls
49.50 --- Shorts
49.90 -- Trousers, bib and brace overalls, breeches and shorts of other textile materials

62.04. Women's or girls' suits, ensembles, jackets, dresses, skirts, divided skirts, trousers,
bib and brace overalls, breeches and shorts (other than swimwear):
- Suits:
11.00 -- Of wool or fine animal hair
12.00 -- Of cotton
13.00 -- Of synthetic fibres
19.10 -- Of artificial fibres
19.90 -- Of other textile materials
- Ensembles:
21.00 -- Of wool or fine animal hair
22.80 -- Of cotton
23.80 -- Of synthetic fibres
29.18 -- Of artificial fibres:
29.90 -- Of other textile materials
- Jackets and blazers:
31.00 -- Of wool or fine animal hair
32.90 -- Of cotton
33.90 -- Of synthetic fibres
39.19 -- Of artificial fibres
39.90 -- Of other textile materials
- Dresses:
41.00 -- Of wool or fine animal hair
42.00 -- Of cotton
43.00 -- Of synthetic fibres
44.00 -- Of artificial fibres
49.10 -- Of silk or silk waste
49.90 -- Of other textile materials
- Skirts and divided skirts:
51.00 -- Of wool or fine animal hair
52.00 -- Of cotton
53.00 -- Of synthetic fibres
59.10 -- Of artificial fibres
59.90 -- Of other textile materials
- Trousers, bib and brace overalls, breeches and shorts:
-- Of wool or fine animal hair
61.10 --- Trousers
61.80 --- Bib and brace overalls
61.90 --- Shorts
-- Of cotton:
--- Trousers and breeches:
62.31 ---- Of denim
62.33 ---- Of cut corduroy

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Page 49 of 56
THE OUTERWEAR MARKET IN THE EU

62.39 ---- Other cotton


62.59 --- Bib and brace overalls
62.90 --- Shorts
-- Of synthetic fibres
63.18 --- Trousers and breeches
63.39 --- Bib and brace overalls:
63.90 --- Shorts
--- Of artificial fibres:
69.18 ---- Trousers and breeches
69.39 ---- Bib and brace overalls:
69.50 ---- Shorts
69.90 -- Trousers, bib and brace overalls, breeches and shorts of other textile materials

62.05. Men's or boys' shirts:


10.00 - Of wool or fine animal hair
20.00 - Of cotton
30.00 - Of man-made fibres
90.10 - Of flax or ramie
90.90 - Of other textile materials

62.06. Women's or girls' blouses, shirts and shirt-blouses:


10.00 - Of silk or silk waste
20.00 - Of wool or fine animal hair
30.00 - Of cotton
40.00 - Of man-made fibres
90.10 - Of flax or ramie
90.90 - Of other textile materials

62.09. Babies' garments and clothing accessories:


10.00 - Of wool or fine animal hair
20.00 - Of cotton
30.00 - Of synthetic fibres
90.00 - Of other textile materials

62.10. Garments made up of felt or non-wovens, whether or not impregnated, coated,


covered or laminated:
10.10 - Of felt:
10.99 - Of nonwovens
20.00 - Overcoats for men or boys rubberised or impregnated etc.
30.00 - Overcoats for women or girls rubberised or impregnated etc.
40.00 - Other garments for men or boys
50.00 - Other garments for women or girls

62.11. Track suits and ski suits:


20.00 - Ski suits
- Men's or boys track suits:
31.00 - Track suits of wool
32.31 -- Lined track suits of cotton with an outer shell of a single identical fabric
32.41 -- Lined track suit tops of cotton
32.42 -- Lined track suit bottoms of cotton
32.90 -- Other cotton garments
33.31 -- Lined track suits of man-made fibres with an outer shell of a single identical fabric
33.41 -- Lined track suit tops of man-made fibres
33.42 -- Lined track suit bottoms of man-made fibres
33.90 -- Other garments of man-made fibres
39.00 -- Track suits of other textile materials
- Women's or girls track suits:
41.00 -- Track suits of wool
42.31 -- Lined track suits of cotton with an outer shell of a single identical fabric
42.41 -- Lined track suit tops of cotton
42.42 -- Lined track suit bottoms of cotton
42.90 -- Other cotton garments
43.31 -- Lined track suits of man-made fibres with an outer shell of a single identical fabric
43.41 -- Lined track suit tops of man-made fibres

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Page 50 of 56
THE OUTERWEAR MARKET IN THE EU

43.42 -- Lined track suit bottoms of man-made fibres


43.90 -- Other garments of man-made fibres
49.00 -- Track suits of other textile materials

62.14. Shawls, scarves, mufflers, mantillas, veils and the like:


10.00 - Of silk or silk waste
20.00 - Of wool or fine animal hair
30.00 - Of synthetic fibres
40.00 - Of artificial fibres
90.10 - Of cotton
90.90 - Of other textile materials

62.15. Ties, bow ties and cravats


10.00 - Of silk or silk waste
20.00 - Of man-made fibres
90.00 - Of other textile materials

62.16.00.00 Gloves, mittens and mitts

62.17. Other made-up clothing accessories and parts of garments


10.00 Other made-up clothing accessories
90.00 Parts of garments

Detailed classification of outerwear by Prodcom codes


Knitted or crocheted textiles
1772.1031 Men’s or boys’ jerseys, pullovers, sweatshirts, waistcoats and cardigans, of wool or fine
animal hair (excluding heavyweight products).
1772.1032 Women’s or girls’ jerseys, pullovers, sweatshirts, waistcoats and cardigans, of wool or fine
animal hair (excluding heavyweight products).
1772.1033 Jerseys and pullovers, containing >=50% by weight of wool and weighing >= 600 gr. per
article.
1772.1053 Lightweight fine knit roll, polo or turtle neck jumpers and pullovers, of cotton.
1772.1055 Lightweight fine knit roll, polo or turtle neck jumpers and pullovers, of man-made fibres.
1772.1061 Men’s or boys’ jerseys, pullovers, sweatshirts, waistcoats and cardigans, of cotton
(excluding lightweight products).
1772.1062 Women’s or girls’ jerseys, pullovers, sweatshirts, waistcoats and cardigans, of cotton
(excluding lightweight products).
1772.1071 Men’s or boys’ jerseys, pullovers, sweatshirts, waistcoats and cardigans, of man-made
fibres (excluding lightweight products).
1772.1072 Women’s or girls’ jerseys, pullovers, sweatshirts, waistcoats and cardigans, of man-made
fibres (excluding lightweight products).
1772.1090 Jerseys, pullovers, sweatshirts and cardigans of other textile materials.
1822.1120 Men’s or boys’ anoraks, ski-jackets, wind-jackets and similar articles.
1822.1210 Men’s or boys’ suits
1822.1220 Men’s or boys’ ensembles.
1822.1230 Men’s or boys’ jackets and blazers.
1822.1240 Men’s or boys’ trousers and breeches.
1822.1250 Men’s or boys’ bib and brace overalls and shorts.
1822.1260 Men’s or boys’ suits and ensembles.
1822.1270 Men’s or boys’ trousers, breeches, shorts, bib and brace overalls.
1822.1110 Men’s or boys’ overcoats, car-coats, capes, cloaks and similar articles.
1822.1310 Women’s or girls’ overcoats, car-coats, capes, cloaks and similar articles.
1822.1320 Women’s or girls’ anoraks, ski-jackets, wind-jackets and similar articles.
1822.1410 Women’s or girls’ suits
1822.1420 Women’s or girls’ ensembles
1822.1430 Women’s or girls’ jackets and blazers.
1822.1440 Women’s or girls’ trousers and breeches.
1822.1450 Women’s or girls’ bib and brace overalls and shorts.
1822.1460 Women’s or girls’ suits and ensembles.
1822.1470 Women’s or girls’ dresses.
1822.1480 Women’s or girls’ skirts and divided skirts.

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THE OUTERWEAR MARKET IN THE EU

1822.1490 Women’s or girls’ trousers, breeches, shorts, bib and brace overalls.
1823.1310 Women’s or girls’ blouses, shirts and shirt-blouses.
1823.3030 T-shirts, singles and vests, of cotton.
1823.3090 T-shirts, singles and vests, of other textiles
1824.1100 Babies’ garments and clothing accessories.
1824.1230 Ski-suits.
1824.1290 Other garments.
1824.1430 Shawls, scarves, mufflers, mantillas, veils etc.
1824.1450 Ties, bow ties and cravats.
1824.1490 Other clothing accessories and parts thereof.
1824.2211 Men’s or boys’ waistcoats, tracksuits, jogging suits and other apparel for sports etc. of
cotton.
1824.2214 Men’s or boys’ waistcoats, tracksuits, jogging suits and other apparel for sports etc. of
wool.
1824.2215 Men’s or boys’ waistcoats, tracksuits, jogging suits and other apparel for sports etc. of
man-made fibres.
1824.2219 Men’s or boys’ waistcoats, tracksuits, jogging suits and other apparel for sports etc. of
other textiles.
1824.2221 Women’s or girls’ jogging suits and other apparel for sports etc. of cotton.
1824.2224 Women’s or girls’ tracksuits, jogging suits of wool or fine animal hair.
1824.2225 Women’s or girls’ tracksuits, jogging suits and other apparel for sports etc. of man-made
fibres.
1824.2229 Women’s or girls’ tracksuits, jogging suits and other apparel for sports etc. of other
textiles.

Woven textiles
1822.2111 Men’s or boys’ raincoats of cotton.
1822.2114 Men’s or boys’ overcoats, car-coats, capes and similar articles of cotton.
1822.2115 Men’s or boys’ raincoats of man-made fibres.
1822.2119 Men’s or boys’ overcoats, car-coats, capes, cloaks and similar articles of man-made fibres.
1822.2125 Men’s or boys’ anoraks, wind-jackets and similar articles of man-made fibres.
1822.2129 Men’s or boys’ anoraks, wind-jackets and similar articles of other materials.
1822.2211 Men’s or boys’ suits of cotton.
1822.2214 Men’s or boys’ suits of wool.
1822.2219 Men’s or boys’ suits of other textiles.
1822.2221 Men’s or boys’ ensembles of cotton.
1822.2224 Men’s or boys’ ensembles of wool.
1822.2229 Men’s or boys’ ensembles of other textiles.
1822.2331 Men’s or boys’ jackets and blazers of cotton.
1822.2334 Men’s or boys’ jackets and blazers of wool.
1822.2339 Men’s or boys’ jackets and blazers of other textiles.
1822.2441 Men’s or boys’ trousers and breeches of cut corduroy.
1822.2442 Men’s or boys’ trousers and breeches of denim.
1822.2443 Other cotton trousers and breeches for men or boys.
1822.2444 Men’s or boys’ trousers, breeches and shorts, of wool or fine animal hair.
1822.2445 Men’s or boys’ trousers and breeches of man-made fibres.
1822.2446 Men’s or boys’ trousers and breeches of synthetic fibres.
1822.2447 Men’s or boys’ trousers and breeches of artificial fibres.
1822.2449 Men’s or boys’ trousers, breeches, shorts, bib and brace overalls of other textiles.
1822.2451 Men’s or boys’ bib and brace overalls of cotton.
1822.2459 Men’s or boys’ bib and brace overalls of other textiles.
1822.2461 Men’s or boys’ shorts of cotton.
1822.2463 Men’s or boys’ shorts of man-made fibres.
1822.2466 Men’s or boys’ shorts of synthetic fibres.
1822.2467 Men’s or boys’ shorts of artificial fibres.
1822.3111 Women’s or girls’ raincoats of cotton.
1822.3114 Women’s or girls’ overcoats and similar articles of wool.
1822.3115 Women’s or girls’ raincoats of man-made fibres.
1822.3119 Women’s or girls’ overcoats and similar articles of other textiles.
1822.3121 Women’s or girls’ anoraks, wind-jackets and similar articles of cotton.
1822.3125 Women’s or girls’ anoraks, wind-jackets and similar articles of man-made fibres.
1822.3129 Women’s or girls’ anoraks, wind-jackets and similar articles of other materials.
1822.3211 Women’s or girls’ suits of cotton.
1822.3214 Women’s or girls’ suits of wool.

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THE OUTERWEAR MARKET IN THE EU

1822.3219 Women’s or girls’ suits of other textiles.


1822.3221 Women’s or girls’ ensembles of cotton.
1822.3224 Women’s or girls’ ensembles of wool.
1822.3229 Women’s or girls’ ensembles of other textiles.
1822.3331 Women’s or girls’ jackets and blazers of cotton.
1822.3334 Women’s or girls’ jackets and blazers of wool.
1822.3339 Women’s or girls’ jackets and blazers of other textiles.
1822.3371 Women’s or girls’ dresses of cotton.
1822.3374 Women’s or girls’ dresses of wool.
1822.3375 Women’s or girls’ dresses of man-made fibres.
1822.3376 Women’s or girls’ dresses of synthetic fibres.
1822.3377 Women’s or girls’ dresses of artificial fibres.
1822.3378 Women’s or girls’ dresses of silk fibres.
1822.3379 Women’s or girls’ dresses of other textiles.
1822.3481 Women’s or girls’ skirts and divided skirts of cotton.
1822.3384 Women’s or girls’ skirts and divided skirts of wool.
1822.3385 Women’s or girls’ skirts and divided skirts of man-made fibres.
1822.3386 Women’s or girls’ skirts and divided skirts of synthetic fibres.
1822.3387 Women’s or girls’ skirts and divided skirts of artificial fibres.
1822.3388 Women’s or girls’ skirts and divided skirts of silk fibres.
1822.3389 Women’s or girls’ skirts and divided skirts of other textiles.
1822.3541 Women’s or girls’ trousers and breeches of cut corduroy.
1822.3542 Women’s or girls’ trousers and breeches of denim.
1822.3543 Other cotton trousers and breeches for women or girls.
1822.3544 Women’s or girls’ trousers, breeches and shorts, of wool or fine animal hair.
1822.3546 Women’s or girls’ trousers and breeches of synthetic fibres.
1822.3547 Women’s or girls’ trousers and breeches of artificial fibres.
1822.3549 Women’s or girls’ trousers, breeches, shorts, bib and brace overalls of other textiles.
1822.3551 Women’s or girls’ bib and brace overalls of cotton.
1822.3559 Women’s or girls’ bib and brace overalls of other textiles.
1822.3561 Women’s or girls’ shorts of cotton.
1822.3564 Women’s or girls’ shorts of wool or fine animal hair.
1822.3565 Women’s or girls’ shorts of man-made fibres.
1822.3566 Women’s or girls’ shorts of synthetic fibres.
1822.3567 Women’s or girls’ shorts of artificial fibres.
1822.3569 Women’s or girls’ trousers, breeches, bib and brace overalls of other textiles.
1824.2230 Ski-suits.
1824.2311 Handkerchiefs of cotton
1824.2319 Handkerchiefs of other textiles
1824.2334 Shawls, scarves, mufflers, mantillas, veils etc. of wool or fine animal hair
1824.2338 Shawls, scarves, mufflers, mantillas, veils etc. of silk or silk waste
1824.2339 Shawls, scarves, mufflers, mantillas, veils etc. of other textiles
1824.2355 Ties, bow ties and cravats of man-made fibres.
1824.2358 Ties, bow ties and cravats of silk or silk waste.
1824.2359 Ties, bow ties and cravats of other textiles.
1824.2370 Gloves, mittens and mitts
1824.2395 Other clothing accessories and parts thereof.
1824.3233 Garments made up of felt.

Leather garments
1810.1000 Articles of apparel of leather or of composition leather (including coats and overcoats and
excluding clothing accessories).
1810.1001 Coats and overcoats of leather
1810.1003 Ensembles of leather
1810.1005 Blazers and jackets of leather
1810.1007 Trousers and skirts of leather
1810.1009 Other articles of apparel of leather

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Appendix B Introduction to the EU market

The European Union (EU) is the current name for the former European Community. Since
January 1995 the EU has consisted of 15 member states. Ten new countries joined the EU in
May 2004. In January 2007 two more countries – Bulgaria and Romania - joined the EU.
Negotiations are in progress with a number of other candidate member states. In this survey,
the EU is referred to as the EU-27, unless otherwise stated.

Cultural awareness is a critical skill in securing success as an exporter. The enlargement of the
EU has increased the size of the EU, and also significantly increased its complexity. Because
there are more people from culturally diverse backgrounds, effective communication is
necessary. Be aware of differences in respect of meeting and greeting people (use of names,
body language etc.) and of building relationships. There are also differences in dealings with
hierarchy, presentations, negotiating, decision making and handling conflicts. More information
on cultural differences can be found in chapter 3 of CBI’s export manual ‘Exporting to the EU’.

General information on the EU can also be found on the official EU website


http://europa.eu/abc/governments/index_en.htm or the free encyclopaedia Wikipedia
http://en.wikipedia.org/wiki/Portal:Europe.

Monetary unit: Euro


On 1 January 1999, the Euro became the legal currency within eleven EU member states:
Austria, Belgium, Finland, France, Germany, Italy, Ireland, Luxembourg, The Netherlands,
Spain and Portugal. Greece became the 12th member state to adopt the Euro on January 1,
2001. Slovenia adopted the Euro in 2007. Cyprus and Malta adopted the Euro at the beginning
of 2008. Since 2002 Euro coins and banknotes replaced national currency in these countries.
Denmark, United Kingdom and Sweden have decided not to participate in the Euro.

In CBI market surveys, the Euro (€) is the basic currency unit used to indicate value.

Table B-1 Exchange rates of EU currencies in €, average interbank rate


Country Name Code Year September
2007 2008
Bulgaria Lev BGN 0.5139 0.51081
Czech Republic Crown CZK 0.0356 0.04033
Denmark Crown DKK 0.1341 0.13410
Estonia Crown EEK 0.0639 0.06390
Hungary Forint HUF 0.0039 0.00422
Latvia Lats LVL 1.4347 1.43612
Lithuania Litas LTL 0.2896 0.28962
Poland Zloty PLN 0.2577 0.29907
Romania Lei ROL 0.0306*) 0.02850*)
Slovakia Crown SKK 0.0285 0.03299
Sweden Crown SEK 0.1101 0.10571
United Kingdom Pound GBP 1.5190 1.23315
*) in ‘000 lei
Source: Oanda - http://www.oanda.com (September 2008)

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Page 54 of 56
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Appendix C List of DCs

OECD DAC list - January 2006


When referring to DCs in the CBI market surveys, reference is made to the group of countries
on this OECD DAC list of January 2006.

Afghanistan Gabon Nepal Uruguay


Albania Gambia Nicaragua Uzbekistan
Algeria Georgia Niger Vanuatu
Angola Ghana Nigeria Venezuela
Anguilla Grenada Niue Vietnam
Antigua and Barbuda Guatemala Oman Wallis & Futuna
Argentina Guinea Pakistan Yemen
Armenia Guinea-Bissau Palau Zambia
Azerbaijan Guyana Palestinian Admin. Areas Zimbabwe
Bangladesh Haiti Panama
Barbados Honduras Papua New Guinea
Belarus India Paraguay
Belize Indonesia Peru
Benin Iran Philippines
Bhutan Iraq Rwanda
Bolivia Jamaica Samoa
Bosnia & Herzegovina Jordan Sao Tome & Principe
Botswana Kazakhstan Saudi Arabia
Brazil Kenya Senegal
Burkina Faso Kiribati Serbia
Burundi Korea Rep. of Seychelles
Cambodia Kyrgyz Rep. Sierra Leone
Cameroon Laos Solomon Islands
Cape Verde Lebanon Somalia
Central African Rep. Liberia South Africa
Chad Libya Sri Lanka
Chile Macedonia St. Helena
China Madagascar St. Kitts Nevis
Colombia Malawi St. Lucia
Comoros Malaysia St. Vincent & Grenadines
Congo Democratic Rep. Maldives Sudan
Congo Rep. Mali Suriname
Cook Islands Marshall Islands Swaziland
Costa Rica Mauritania Syria
Cote d’Ivoire Mauritius Tajikistan
Croatia Mayotte Tanzania
Cuba Mexico Thailand
Djibouti Micronesia, Fed. States Timor-Leste
Dominica Moldova Togo
Dominican Republic Mongolia Trinidad & Tobago
Ecuador Montenegro Tunisia
Egypt Montserrat Turkey
El Salvador Morocco Turkmenistan
Equatorial Guinea Mozambique Turks & Caicos Islands
Eritrea Myanmar Tuvalu
Ethiopia Namibia Uganda
Fiji Nauru Ukraine

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Page 55 of 56
THE OUTERWEAR MARKET IN THE EU

CBI countries – January 2007:

CBI supports exporters in the following Asian, African, Latin American and European (Balkan)
countries:

Albania
Armenia
Bangladesh
Benin
Bolivia
Bosnia-Herzegovina
Burkina Faso
Colombia
Ecuador
Egypt
El Salvador
Ethiopia
Georgia
Ghana
Guatemala
Honduras
India
Indonesia
Jordan
Kenya
Macedonia
Madagascar
Mali
Moldova
Montenegro
Morocco
Mozambique
Nepal
Nicaragua
Pakistan
Peru
Philippines
Rwanda
Senegal
Serbia
South Africa
Sri Lanka
Suriname
Tanzania
Thailand
Tunisia
Uganda
Vietnam
Zambia

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Page 56 of 56