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Overview and Marketing Guide on Switzerland and the Major Markets in the European Union.
sippo.ch
SIPPO Swiss Import Promotion Programme.
SIPPO is a mandate from the State Secretariat for Economic
Affairs of Switzerland (SECO), carried out by Osec.
The programme supports small and medium-sized enterprises
(SMEs) from emerging markets and markets in transition to access
the Swiss and European markets.
Osec
Swiss Import Promotion Programme
Stampfenbachstrasse 85
P.O. Box 2407
CH-8021 Zürich
Phone +41 44 365 51 51
Fax +41 44 365 52 02
www.sippo.ch
sippo@osec.ch
2 l Outerwear 2010
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Outerwear 2010 l 3
Table of content.
1 Introduction. 3.4.2 Leading retailers......................................................... 43
1.1 Background and methodology of the market survey.... 7 3.4.3 Distribution channels.................................................. 44
1.2 Product groups analysed.............................................. 7 3.5 German fashion trade fairs......................................... 46
1.3 Market survey of the 12-EU new member countries..... 8 3.6 List of major buyers in Germany................................. 47
1.4 Clothing consumption................................................... 9
1.5 Marketing and distribution........................................... 11 4 Italy.
4.1 General economic situation........................................ 53
2 France. 4.2 The market for outerwear........................................... 53
2.1 General economic situation........................................ 12 4.2.1 Market size................................................................. 53
2.2 The market for outerwear........................................... 12 4.2.2 Market characteristics................................................. 53
2.2.1 Market size................................................................. 12 4.2.3 Demographic characteristics...................................... 53
2.2.2 Market characteristics................................................. 12 4.2.4 Retail sales by product category................................ 54
2.2.3 Demographic characteristics...................................... 13 4.2.5 Consumer behaviour.................................................. 55
2.2.4 Retail sales by product category................................ 14 4.2.6 Price developments of clothing................................... 57
2.2.5 Consumer behaviour.................................................. 15 4.3 Imports........................................................................ 57
2.2.6 Price development of clothing..................................... 15 4.3.1 Total imports............................................................... 57
2.3 Imports........................................................................ 16 4.3.2 Outward Processing Trade (OPT)............................... 60
2.3.1 Total imports............................................................... 16 4.3.3 Largest suppliers of outerwear................................... 61
2.3.2 Outward processing trade (OPT)................................ 19 4.4 Trade structure............................................................ 62
2.3.3 Largest suppliers of outerwear................................... 19 4.4.1 Developments in retail trade....................................... 62
2.4 Trade structure............................................................ 21 4.4.2 Leading retailers......................................................... 63
2.4.1 Developments in the retail trade................................. 21 4.4.3 Distribution channels.................................................. 64
2.4.2 Leading retailers......................................................... 21 4.5 Italian fashion trade fairs............................................. 66
2.4.3 Distribution channels.................................................. 23 4.6 List of major buyers in Italy......................................... 67
2.5 French fashion trade fairs........................................... 25
2.6 List of major buyers of women’s, 5 Spain.
men’s and children's wear in France........................... 26 5.1 General economic situation........................................ 71
5.2 The market for outerwear........................................... 71
3 Germany. 5.2.1 Market size................................................................. 71
3.1 General economic situation........................................ 31 5.2.2 Market characteristics................................................. 72
3.2 The market for outerwear........................................... 31 5.2.3 Demographic characteristics...................................... 72
3.2.1 Market size................................................................. 31 5.2.4 Retail sales by product category and gender............. 73
3.2.2 Market characteristics................................................. 31 5.2.5 Consumer behaviour.................................................. 74
3.2.3 Demographic characteristics...................................... 32 5.2.6 Price development of clothing..................................... 74
3.2.4 Retail sales by product category................................ 33 5.3 Imports........................................................................ 75
3.2.5 Consumer behaviour.................................................. 33 5.3.1 Total imports............................................................... 75
3.2.6 Price developments of clothing................................... 35 5.3.2 Outward Processing Trade (OPT)............................... 78
3.3 Imports........................................................................ 35 5.3.3 Largest suppliers of outerwear................................... 79
3.3.1 Total imports............................................................... 35 5.4 Trade structure............................................................ 80
3.3.2 Outward Processing Trade (OPT)............................... 38 5.4.1 Developments in the retail trade................................. 80
3.3.3 Largest suppliers of outerwear................................... 38 5.4.2 Leading retailers......................................................... 81
3.4 Trade structure............................................................ 40 5.4.3 Distribution channels.................................................. 83
3.4.1 Developments in the retail trade................................. 40 5.5 Spanish fashion trade fairs......................................... 85
5.6 List of major buyers in Spain...................................... 86
4 l Outerwear 2010
6 Switzerland. 8 Doing business in Switzerland
6.1 General economic situation........................................ 89 and the EU.
6.2 The market for outerwear........................................... 89 8.1 Market access.......................................................... 126
6.2.1 Market size................................................................. 89 8.1.1 Quality and standards in Switzerland
6.2.2 Market characteristics................................................. 90 and the EU................................................................ 126
6.2.3 Demographic characteristics...................................... 90 8.1.2 Packaging, size marking and labelling...................... 126
6.2.4 Retail sales by categories........................................... 91 8.1.3 Trade related environmental and social issues......... 135
6.2.5 Consumer behaviour.................................................. 93 8.1.4 Present trade regulations......................................... 139
6.2.6 Price development of clothing..................................... 94 8.1.5 Implications after the elimination
6.3 Imports........................................................................ 95 of the textile quotas................................................... 142
6.3.1 Total imports............................................................... 95
6.3.2 Outward Processing Trade (OPT)............................... 95 9 Appendix.
6.3.3 Largest suppliers........................................................ 95 9.1 Associations of trade agents,
6.4 Trade structure............................................................ 96 wholesalers organisations and retail organisations
6.4.1 Developments in the retail trade................................. 96 in the countries analysed.......................................... 143
6.4.2 Leading retailers......................................................... 97 9.1.1 Europe...................................................................... 143
6.4.3 Distribution channels.................................................. 98 9.1.2 France....................................................................... 143
6.5 Swiss fashion trade fairs........................................... 100 9.1.3 Germany................................................................... 143
6.6 List of major buyers in Switzerland........................... 101 9.1.4 Italy........................................................................... 144
9.1.5 Spain........................................................................ 144
7 United Kingdom. 9.1.6 Switzerland............................................................... 145
7.1 General economic situation...................................... 107 9.1.7 United Kingdom........................................................ 145
7.2 The market for outerwear......................................... 107 9.2 Industry federations in Switzerland
7.2.1 Market size............................................................... 107 and EU-countries...................................................... 146
7.2.2 Market characteristics............................................... 107 9.2.1 France....................................................................... 146
7.2.3 Demographic characteristics.................................... 108 9.2.2 Germany................................................................... 146
7.2.4 Retail sales by product category.............................. 108 9.2.3 Italy........................................................................... 146
7.2.5 Consumer behaviour................................................ 109 9.2.4 Spain........................................................................ 146
7.2.6 Price development of clothing................................... 111 9.2.5 Switzerland............................................................... 146
7.3 Imports...................................................................... 214 9.2.6 United Kingdom........................................................ 147
7.3.1 Outward Processing Trade (OPT)............................. 214 9.3 Major European trade fairs....................................... 148
7.3.2 Largest suppliers of outerwear................................. 214 9.3.1 France....................................................................... 148
7.4 Trade structure.......................................................... 116 9.3.2 Germany................................................................... 148
7.4.1 Developments in the retail trade............................... 116 9.3.3 Italy........................................................................... 149
7.4.2 Leading retailers....................................................... 117 9.3.4 Spain........................................................................ 149
7.4.3 Distribution channels................................................ 118 9.3.5 United Kingdom........................................................ 149
7.5 UK fashion trade fairs............................................... 121 9.4 European trade magazines...................................... 150
7.6 List of major buyers in UK......................................... 122 9.4.1 France....................................................................... 150
9.4.2 Germany................................................................... 150
9.4.3 Italy........................................................................... 151
9.4.4 Spain........................................................................ 152
9.4.5 Switzerland............................................................... 152
9.4.6 United Kingdom........................................................ 153
Outerwear 2010 l 5
9.5 Trade promotion organisations in Europe................. 155
9.6 Important addresses for environmental
and social issues...................................................... 155
9.6.1 Contact points for the Oeko-ex 100 hallmark............ 156
9.7 Sources of information.............................................. 156
9.7.1 Europe...................................................................... 156
9.7.2 France....................................................................... 156
9.7.3 Germany................................................................... 156
9.7.4 Italy........................................................................... 157
9.7.5 Spain........................................................................ 157
9.7.6 Switzerland............................................................... 157
9.7.7 United Kingdom........................................................ 158
6 l Outerwear 2010
1. Introduction.
1.1 Background and methodology 1.2 Product groups analysed.
of the market survey. This market survey covers knitted and woven outerwear and
This survey is designed for clothing manufacturers from foreign sportswear for men, women and children. It must be considered
countries wishing to access the European market. The main that in the official statistics no difference is made between adults
objective of this compendium about Switzerland and the five major and children, or in end use, such as conventional, casual or leisure
EU clothing markets is to provide first hand market information clothing. In the analysis of the clothing imports, the differentiation
about the respective target markets for the exporter from abroad. between genders has been made as far as possible.
Secondly, a comprehensive list of addresses helps to gain more
detailed information about the target market and to establish first Underwear, nightwear, hosiery, swimwear, work wear as well as
contacts. clothing accessories and home textiles have not been covered.
The handbook includes facts and key data about consumption, Within the EU statistical system products are specified by the
imports, trade structure, role of trade fairs and price developments Harmonized Commodity Description and Coding System (HS).
in the target markets. The study is completed by a detailed list These numbers clearly identify a specific product. The product
of useful addresses at European level about trade promotion categories covered by this study are listed in the following table.
organisations, trade press, clothing fairs, industry federations,
centres for ecological issues etc. as well as a detailed list of Table 1: List of used HS codes
potential distribution partners for each of the six countries HS Code Category description
analysed. Furthermore, statistical market information about trade
61 Articles of apparel & clothing accessories
structure as well as prices and margins are provided.
- knitted or crocheted
The countries selected for the survey are Switzerland, Germany, 61.01 Men’s or boys’ overcoats etc - knitted or crocheted
France, Italy, Great Britain and Spain. The information collected 61.02 Women’s or girls’ overcoats etc
for this study is the latest available and should be used by the - knitted or crocheted
exporter as a basis for further individual market research to fully
61.03 Men’s or boys’ suits, ensembles etc
design the individual market entry strategy and to establish first
- knitted or crocheted
contacts.
61.04 Women’s or girls’ suits, ensembles etc
The main sources of information for this study were evaluation - knitted or crocheted
of press material, research on internet, market reports, Eurostat, 61.05 Men’s or boys’ shirts - knitted or crocheted
information from other trade promotion organisations, Chambers
61.06 Women’s or girls’ blouses - knitted or crocheted
of Commerce, importers and / or textile associations, a.o.m. The
sources are mentioned in the respective chapters. All contact 61.09 T-shirts, singlets, tank tops etc - knitted or crocheted
addresses listed in the Appendices have been checked and 61.10 Sweaters, pullovers, vests etc - knitted or crocheted
updated, additional information about the clothing retailers and
61.11 Babies’ garments & accessories
other potential partners with products, number of outlets, etc. is
given for a more specific use of the contacts. - knitted or crocheted
61.12 Track suits, ski-suits & swimwear
- knitted or crocheted
61.13 Garments, knitted etc, coated etc rubber, plastic etc
61.14 Other garments - knitted or crocheted
61.16 Gloves, mittens and mitts, knitted or crocheted
Outerwear 2010 l 7
HS Code Category description HS Code Category description
61.17 Other made-up clothing accessories, 62.06 Women’s or girls’ blouses - not knitted or crocheted
knitted or crocheted 62.09 Babies’ garments & accessories
62 - not knitted or crocheted
Articles of apparel & clothing accessories - not
knitted or crocheted 62.10 Garments, of felt etc, or fabric impregnated etc
8 l Outerwear 2010
Table 2: Population and GDP of EU-12 countries (data for 2008)
1.4 Clothing consumption Consumers in the UK and Austria are the largest spenders on
The EU market for outerwear amounted to € 260 billion in 2007. outerwear in the EU, while per capita consumption in the review
Consumption of outerwear grew 8.1% during the whole period period in the new EU member states was far below the EU ave-
2003-2007, of which 2.6% in 2006-2007. rage of € 528. Experts forecast that clothing expenditure in several
of the new EU member states will continue to see robust growth in
Germany is still the most important country in clothing consumpti- the period to 2010, while expectations in the major EU countries
on in the EU, but the difference between Germany and the United are moderately optimistic. The number of garments purchased
Kingdom (UK) has become smaller again. Five countries (Germa- per head of the population will continue to rise, but prices will not
ny, UK, Italy, France and Spain) account for 75% of EU outerwear follow this growth rate. The populations are becoming more multi-
consumption. ethnic and the average age is increasing. This will lead to new
demands and consumer behaviour.
Outerwear 2010 l 9
Table 3: Outerwear consumption in the EU countries (2003-2009, € million)
2003 2004 2007 2009 forecast Per capita 2007 - in € CAGR (03-09)
Germany 50’548 49’915 50’863 51’100 618 0.18%
UK 40’804 43’845 46’152 47’000 760 2.38%
Italy 38’724 39’320 41’115 43’000 698 1.76%
France 33’351 34’420 35’179 36’500 576 1.52%
Spain 18’190 19’268 20’544 20’900 462 2.34%
Netherlands 9’075 9’023 9’456 9’800 578 1.29%
Belgium 6’712 6’972 7’219 7’450 683 1.75%
Austria 5’846 5’918 6’132 6’240 737 1.09%
Sweden 5’204 5’602 6’068 6’480 666 3.72%
Greece 5’198 5’692 5’891 6’170 527 2.90%
Poland 5’368 5’217 5’038 5’150 132 -0.69%
Portugal 4’136 4’400 4’604 4’900 434 2.87%
Denmark 3’039 3’408 3’694 3’950 678 4.47%
Romania 2’572 2’922 3’210 3’500 149 5.27%
Finland 2’382 2’668 2’992 3’140 567 4.71%
Ireland 2’488 2’579 2’732 2’700 636 1.37%
Czech Rep. 1’770 1’952 2’237 2’530 217 6.13%
Hungary 1’488 1’629 1’738 1’840 173 3.60%
Bulgaria 809 963 1’088 1’270 143 7.81%
Slovakia 617 689 809 880 150 6.10%
Slovenia 601 639 744 820 370 5.31%
Lithuania 370 511 687 770 204 12.99%
Latvia 233 324 515 580 226 16.42%
Estonia 231 284 387 480 289 12.96%
Luxembourg 320 329 353 370 728 2.45%
Cyprus 301 331 344 360 402 3.03%
Malta 149 156 165 170 406 2.22%
EU 240’526 248’976 259’956 268’050 528 1.82%
Source: Euromonitor, Retail Intelligence and several national statistics, CBI
10 l Outerwear 2010
1.5 Marketing and distribution
Developments in the retail sector, like a growing concentration at
retail level, expanding by internationalisation and growing com-
petition, lead to an increased demand for fashionable products
against low prices.
Outerwear 2010 l 11
2. France.
2.1 General economic situation. 2.2 The market for outerwear.
The financial crisis did not spare the French economy, which faced 2.2.1 Market size
a deep recession in 2009, even if the situation was less severe In 2009, the market size of outerwear in France amounted to €
than elsewhere. After a clear drop in the fourth quarter of 2008, 24.1 billion, which is 62% of the total clothing market. The French
economic activity slightly grew in 2009. Both the timing and the clothing market is forecast to grow steadily between 2010 and
strength of recovery remain uncertain, primarily because of the 2013 to reach a value of € 41.4 billion, of which up to € 26 billion
risks surrounding the balance sheets of financial institutions. While will be outerwear. France, which accounts for 13% of the popu-
French banks have been weakened by the crisis, they are not as lation of the 27-member EU, is the fourth largest clothing market
shaky as their counterparts in many other countries. Moreover, behind Germany, Italy and the United Kingdom. Apparel imports, at
the risk that the real estate market correction now under way will € 14.5 billion, are slightly higher than local production at €14 billion.
accentuate the decline in economic activity is attenuated to some The imports of outerwear increased by 25% in terms of value from
extent by the low rate of household indebtedness and the weak- 2004 to 2009. In the same period local production decreased by
ness of the wealth effect on consumption. The crisis will leave -44%, of which goods amounting to € 5.3 billion were exported.
public finances in poor shape, and once the recovery begins, a
priority will be to phase out the general government budget deficit. Table 4: Size of the French outerwear market, 2009
Given the already very heavy burden of taxes and compulsory
Value [€ bn]
contributions, public finance consolidation will require strict control
Import 14.5
over expenditures.
Local production 4.3
Export 5.3
According to INSEE, the French National Institute of Statistics
Total market size 24.1
and Economic Studies, the French Gross National Product (GNP)
decreased in 2009 by -1.3%, in 2008 and 2007 in increased by Source: Eurostat 2009
2.1%. This was slightly over the average growth rate of the Euro-
pean Union. With 2.8% in 2009, the consumer price inflation rate 2.2.2 Market characteristics
was under the average rate of the European Union (3.5%). The French clothing, French design and French labels have a long tradi-
unemployment rate declined from 10.1% in 2005 to 7.4% in 2009. tion and a good reputation. Clothing labels originating from France
This number is said to grow over 10% in 2010 due to the financial are internationally considered to be fashionable and of good quality.
crisis. The internationalised French expression ‘haute couture’ signals the
worldwide importance of French fashion and French clothing brands.
Fashion is often associated with French fashion design.
12 l Outerwear 2010
However, the other extreme is also seen in the retail market: the so France’s population has increased at a very slow rate in recent
called ‘centrales d’achat’, huge supermarkets (Carrefour, E. Leclerc, years. This has been a result of a low birth rate narrowly outstrip-
Intermarché etc.) and clothing chains like Promod, Pimkie, Kookai ping the declining death rate. Rates of immigration have also
etc., have strengthened their share in the French clothing market. In decreased in recent years, further slowing population growth.
this scenario it is obvious that the French clothing retail system is very
fragmented. France has the largest network of outlets and franchise The 15-24 age segment of the female population tends to be
systems operated by clothing manufacturers within Europe. Both made up of fashionable consumers, with a tendency to spend a lot
systems, franchising and own outlets, merge with each other and of money on their clothing and personal adornment. These consu-
cooperate very closely. mers are also likely to look for new styles and designs.
2.2.3 Demographic characteristics With life expectancy among the French population increasing
The size and age structure of the population is one of the basic significantly over the past ten years, in addition to the effects of the
determinants of which products will be bought and how much will ‘baby boomer’ generation, the number of over-50s in the population
be spent on clothing. has increased rapidly.
10 0 +
95-99
male 90-94 female
85-90
80-85
7 5 -7 9
7 0 -74
65-69
60-64
55-59
50-54
45-49
40-44
35-39
30-34
25-29
2 0 - 24
15 -19
10 -14
5-9
0-4
2,5 2,0 1,5 1,0 0,5 0,0 0,0 0,5 1,0 1,5 2,0 2,5
Population in millions
Outerwear 2010 l 13
The following figure shows a breakdown of outerwear expenditure Table 6: Sales of women's wear by product categories, 2007 – 2008
by demographic segment in 2009.
Sales in mn Euro 2007 2008 +/- from
per article category previous year
Figure 2: Breakdown of outerwear expenditure by demographic
Waterproof coats 758 741 -2%
segment in 2009
Anoraks, parkas, jackets 445 348 -22%
Women
Jackets & blazers 155 145 -6%
Men
4%
Children (aged 8-14) Coats etc. 268 293 9%
Babies (aged 0-7) 14%
Gilets without sleeves 55 77 40%
Suits, outfits 915 615 -33%
53% Dresses 665 728 9%
Skirts 741 568 -23%
29%
Trousers 1’546 1’532 -1%
Trousers (sports) 46 38
Jeans 1’007 1’084 8%
Overalls 5 12 140%
Shorts & bermudas 86 95 10%
Source: Eurostat 2009 and Euromonitor 2009
Skirts & smocks 28 24 -14%
2.2.4 Retail sales by product category Blouses 527 544 3%
Table 5 gives a brief overview of the market share for the most T-Shirts 1’186 1’133 -4%
relevant clothing segments, divided into men and women. For- Tops without sleeves 270 216 -20%
merly, French consumers tended to buy more formal clothing than
Polos 135 111 -18%
consumers in other European countries. This share has declined,
Bodies 7 17 143%
to the advantage of basic leisurewear sales.
Pullovers, waistcoats, 270 257 -5%
cardigans
Table 5: Market share of outerwear by gender, 2003 and 2007 [%]
Sweatshirts 97 92 -5%
Women Men Tracksuits 61 70 15%
2003 2007 2003 2007 Swimsuits 236 231 -2%
Formal 36 32 41 37 Unitards 58 56 -3%
Casual 39 41 30 32 Sport shirts 56 48 -14%
Leisure 19 20 21 22 Other pieces of outerwear 0 69 n.a.
Active sports 6 7 8 9 Other small pieces 999 999 0
Total 100 100 100 100 of outerwear
Total 10’604 10’073 -5%
Source: CBI
Total pieces of outerwear 6’674 6’261 -6%
Table 6 indicates the sales development of the women’s outerwear Total small pieces 3’930 3’812 -3%
segment in € million of sales. of outerwear
Source: Fédération Française du Prêt à Porter Féminin
14 l Outerwear 2010
2.2.5 Consumer behaviour • The increasing feminization of clothing products could drive
2.2.5.1 Consumer preferences trends for clothing accessories, also for the use of pearls and
As with the young generations in other European countries, French embroidery. Luxury appearance materials and colours are used
children like U.S. fashion styles and are influenced by American to create a good feeling, in answer to financial instable times.
culture. Therefore, American brands and/or brands perceived to Other forecasts are:
be American are particularly successful in the children's wear
segment. The youngsters are also interested in sportswear, which A-symmetrical openings and several layers will become popular.
is used also as everyday clothing. Sports like rugby, football and Several lengths can be created in one garment or in a combi
basketball are quite popular. nation of several garments, like skirt with long tunic or blouse
and short waistcoat or short jacket on a top.
The trends for ‘American’ styles strongly influenced by the ‘Hip- Hop
Scene’ and the preferred sportswear are expressed in the sales Accents on the waist by large belts or accents on the neck by
of items like t-shirts, sweatshirts, polo-shirts in combination with wide scarves in accent colours.
baseball caps. Young consumers’ demand for sportswear helped
the largest sports retailer Decathlon to increase its sales of Skirts remain popular in all types and kind of lengths.
children’s clothing in the last few years.
• In general, there is much dynamism in consumer preferences
As regards fabrics, there is a trend towards natural, easy to wear at the moment. Cultural changes are succeeding each other
and modern fibres (jersey, cotton flannel, stretch, technical fabrics, rapidly. This makes predictions of consumer behaviour rather
polar fleeces). The children’s parents prefer clothing which is tricky.
easy to wash and which requires no ironing. However, 70% of the
clothing of 4 to 14 year old is selected by the children themselves • Babies’ wear is still classical and hardly follows the trends of
and not by the parents. Children from six years up develop brand adult clothing. Newborn collections are mainly plain or have
awareness, which is mainly formed by their peer group and TV childlike decorations and are less influenced by the casual
advertising. trends, as in adult fashion.
Women’s wear follows the broad trend toward more casual and • Materials, like cashmere and angora, are very expensive
sporty garments. Several fashion forecasts announced that and delicate to treat, but in France where more luxury fashion
collections will be more feminine and will have less casual details. is appreciated by women, this quality is and will become more
popular.
The younger men in France are more fashion-conscious, spending
more on clothing in the last few years than before. The fact that • For the coming winter-season (2010/11) the trend is warm
casual wear is more common for the office is a particular trend colours in hairy woollen yarns such as mohair, angora or
which has grown in recent years. cashmere. This combination gives knitwear a voluminous look
and warm feeling.
Children’s wear is more classic and formal for special occasions
than in other EU countries, like The Netherlands and Germany. • Tunics and long pullovers to wear like a dress combined with
However, younger fashion brands have increased the last few legging/trousers/tights will become more popular.
years, and more and more have an adult look.
• Catwalk reports announced an upcoming trend for winter
Trends in consumption 2010/11: more accent on neck and shoulder, for example big
• In women’s wear, clothing is becoming more feminine. Luxury collars or cowls.
looking materials and colours are used to create a good feeling
in answer to financial unstable times. • Consumers become more aware of sustainability issues.
Outerwear 2010 l 15
2.2.5.2 Consumer expenditures Import prices from DCs were 61% of the level of intra-EU import
Taking the total consumer expenditure on manufactured goods as prices, but they fell as from 2004.
reference value, the share of consumer expenditures on clothing
has declined by 1.9% from 2004 to 2009. Table 9: Developments of average import prices per unit in France [€]
2006 2007 2008 CAGR*
The development of consumer expenditure of manufactured goods
Total 4.89 4.82 4.74 -1.0%
increased in the same period by 13.9% and the expenditure on
imports
total clothing and total outerwear by less than 1%. This is certainly
due to two different factors, which are a) falling clothing prices due
Intra-EU 6.39 6.23 6.16 -1.2%
to cheap imports and b) to shift of expenditure to electronic goods
and leisure. Developing 3.79 3.76 3.73 -0.5%
countries
2.2.6 Price development of clothing According to Table 10, the imports of knitted outerwear into France
Prices of imports into France fell during the period 2006-2008, as increased steadily from 2006 to 2008. Active sportswear such as
table 9 indicates. Prices from DCs (Developing Countries), as well tracksuits, ski suits and swimwear is particularly worth mentioning.
as from other EU countries fell during the period mentioned. Woven outerwear for both genders is by far the largest sector with
€ 7.2 billion in 2008.
In 2008, price movements reinforced the trend of increasing
purchases of lower-priced outerwear from Asian manufacturers.
16 l Outerwear 2010
Table 10: imports of knitted outerwear by gender and product categories, 2006-2008
Blouses and shirts (61.06) 4’443 190’839 6’512 265’987 7’812 283’737
Sub Total 18’992 728’839 22’295 919’440 25’383 936’490
Sub Total Extra EU 18’278 306’438 22’234 407’945 25’383 448’996
For both genders
T-shirts, singlets etc. (61.09) 60’245 1’580’733 61’031 1’615’262 54’764 1’465’754
Jersey, pullovers, cardigans, waistcoats, 64’190 1’946’166 60’872 1’989’934 61’043 2’135’580
etc. (61.10)
Gloves, mittens and mitts (61.16) 6’326 120’928 6’768 119’140 8’003 141’282
Other made-up clothing accessories (61.17) 3’735 74’194 3’630 76’235 3’951 76’063
Sub Total 158’034 4’070’132 156’208 4’153’354 151’559 4’171’895
Sub Total Extra EU 143’974 2’101’010 147’397 2’137’733 142’665 2’105’247
Active Sportswear
Track suits, ski suits and swimwear (61.12) 4’203 211’871 3’942 203’673 3’385 198’164
Special garments for professional 6’046 142’545 5’539 132’021 6’071 127’166
sporting or other purposes (61.14)
Outerwear 2010 l 17
In comparison to previous years, the share of the non-EU coun- The import of the women’s woven segment increased from € 3.4
tries in the knitted outerwear imports is with 49% stable, while the billion in 2006 to € 3.5 billion in 2008. Woven suits for men (€ 1.6
overall trend in France is an increase in imports. The end of the billion) and women (€2.4 billion) have the highest share of imports.
MFA radically changed the French textile and clothing production
landscape. An innumerable number of mills have been closed and
many jobs have been lost.
Table 11: Imports of woven outerwear by gender and product categories, 2006-2008
2006 2007 2008
Tons 1’000 € Tons 1’000 € Tons 1’000 €
For men or boys
Coats, anoraks, windcheaters, etc. (62.01) 12’377 352’898 10’880 346’659 11’287 370’994
Suits, jackets, outfits, trousers, 49’466 1’557’904 50’733 1’606’991 51’388 1’613’016
shorts, etc. (62.03)
Blouses and shirts (62.06) 7’067 421’858 6’797 455’432 7’969 530’464
Sub Total 81’555 3’444’840 78’468 3’474’150 79’136 3’495’224
Sub Total Extra EU 76’544 1’596’160 77’808 1’562’223 79’126 1’597’206
For both genders
Babies garments (62.09) 10’086 187’197 10’162 188’624 9’777 180’947
Others incl. Impregnated (62.10) 29’558 360’977 28’799 327’161 29’464 315’592
Shawls, scarves, mufflers, etc. (62.14) 2’350 115’410 1’842 112’583 2’530 128’206
Ties, bow ties and cravats (62.15) 358 43’100 481 43’986 478 44’262
Gloves, mittens and mitts (62.16) 1’346 36’189 994 27’729 894 26’888
Other made-up clothing accessories 3’370 65’949 3’945 75’315 3’284 74’284
(62.17)
18 l Outerwear 2010
2.3.2 Outward processing trade (OPT) 2.3.3 Largest suppliers of outerwear
The analysis of the largest suppliers of OPT outerwear into France Table 13 gives a very good overview of the twenty major extra EU
in Table 12 shows a downturn in OPT. Overall, the OPT business countries supplying clothing to France from 2006 to 2008. The
plays a minor role in France, accounting for only 0.66% of the total share of clothing imports from extra EU countries in France was
outerwear clothing imports. 48.6% in 2006 and had slightly increased to 48.7% in 2008.
Tunisia is the most important OPT partner country for France. The imports from outside the EU in 2008 amounted to € 6.4
Morocco is second, as it was in the previous two years. Belarus billion, whereas € 6.7 billion were imported from the European
is catching up to China and could become fourth in the coming Union. While the total imports to France amounted to € 12.5 billion
years. in 2006, they exceeded € 13.1 billion in 2008, an increase of
4.8%. Overall, the growth rates of total imports increased by 3%
and 1%, respectively. The main import countries for France from
outside Europe are: China (€ 2.4 billion), Tunisia (€ 0.7 billion) and
Morocco (€ 0.6 billion). Morocco and Tunisia are French spea-
king countries; this is a very important advantage for them when
exporting to France.
Table 12: Imports of woven outerwear by gender and product categories, 2006-2008
Outerwear 2010 l 19
Table 13: Largest extra EU supplying countries of outerwear, 2006-2008
Position Country 2006 [‘000 €] Change from 2007 [‘000 €] Change from 2008 [‘000 €]
2006 2007
1 China 1’706’835 21% 2’063’477 16% 2’403’807
2 Tunisia 724’022 -2% 712’974 1% 716’682
3 Morocco 673’775 -1% 667’699 -5% 632’342
4 India 575’986 -2% 563’260 3% 579’893
5 Bangladesh 506’696 0% 505’593 6% 538’135
6 Turkey 473’249 -4% 456’431 -5% 432’976
7 Switzerland 147’655 26% 186’272 3% 191’969
8 Mauritius 141’210 -10% 127’783 -13% 110’726
9 Madagascar 82’148 9% 89’489 -6% 84’430
10 Thailand 160’357 -15% 135’684 -39% 82’628
11 Pakistan 71’823 9% 78’482 0% 78’534
12 Vietnam 83’922 -2% 82’205 -7% 76’574
13 Indonesia 99’603 -15% 84’583 -18% 69’144
14 Hong Kong 125’119 -33% 83’618 -54% 38’281
15 South Korea 67’096 -36% 42’641 -21% 33’894
16 Cambodia 33’740 -2% 33’020 -13% 28’743
17 Malaysia 25’550 8% 27’592 -14% 23’682
18 Macao 67’610 -23% 52’341 -62% 20’126
19 USA 19’313 2% 19’660 -7% 18’336
20 Sri Lanka 24’124 -23% 18’470 -1% 18’228
Extra-EU 27 6’073’822 3% 6’255’259 2% 6’364’314
Intra-EU 27 6’434’957 4% 6’660’298 1% 6’706’674
Total 12’508’779 3% 12’915’557 1% 13’070’988
Typically, the French consider themselves to be rather weak market. This fact also explains the leadership position of the
in foreign language skills. Moreover, they are not very keen on relatively small EU country Belgium, which is characterised as
speaking another language than French. This fact should be a multilingual country, including the French language. Much
considered by foreign manufacturers wishing to sell in the French business with Belgium is done on a subcontracting basis.
20 l Outerwear 2010
Table 14: Largest intra EU supplying countries of outerwear, 2006-2008
Position Country 2006 [‘000 €] Change from 2007 [‘000 €] Change from 2008 [‘000 €]
2006 2007
1 Belgium 1’912’349 9% 2’078’537 0% 2’071’727
2 Italy 1’221’326 7% 1’303’005 -1% 1’294’389
3 Germany 908’896 2% 930’096 8% 1’003’780
4 Spain 451’480 -2% 443’357 35% 598’331
5 Netherlands 527’459 2% 538’405 -11% 480’377
6 UK 310’152 4% 323’906 1% 327’259
7 Portugal 284’717 5% 297’679 -4% 287’208
8 Romania 289’010 -19% 235’203 -23% 182’195
9 Luxembourg 32’180 -8% 29’705 0% 29’702
10 Bulgaria 140’716 -19% 113’425 -14% 98’016
Intra-EU 27 5’933’106 4% 6’141’834 2% 6’266’298
Extra-EU 27 6’073’822 3% 6’255’259 2% 6’364’314
Total 12’508’779 3% 12’915’557 1% 13’070’988
2.4.1 Developments in the retail trade The multiples are now in the position to react more quickly to
It would be too simple to assume that price is the only area of consumer demands by following a strategy of greater ‘just in time’
competition in the French market. Quality, style and trend also play supply to the shops and the consumers. The chains act like manuf-
an important role. acturers in this respect. However, the link to the manufacturers has
become closer. The importance of middlemen has been reduced
The clothing retail sector in France went through major changes and retailers buy directly from the clothing companies (abroad).
over the last years. From the beginning of the 1980’s, consumers The increased purchasing power of the retailers stimulated some
were used to independent shops that offered various brands. Ap- clothing manufacturers to build up an independent distribution sy-
parel sold by independent retailers in France accounted for 39.1% stem by operating self-owned outlets or using a ‘franchise system’.
of total sales in 1995. In 2008 only 20% were sold by independent
retailers. Within the last years, the multiples also (as in other Euro- 2.4.2 Leading retailers
pean countries) invaded France, and consumers are more likely to In France, there are about 33'250 active clothing retail companies,
buy in speciality chain stores with large outlets. which have 47'500 stores, of which an estimated two thirds are
owned by independent retailers, which have fewer than 5 outlets.
This development enhanced lower prices for outerwear through
the greater competition and number of goods imported by these The big number of specialists chains indicates that the French
chains. These companies, of which most are French chains, have market is less concentrated than, for instance, the UK market. Im-
a very up-to-date concept with a high standard in logistics, IT portant French groups are Vivarte, Auchan/Mulliez, Etam, Groupe
and advertising. There seems to be a real competition on who is Beaumanoir and Promod. These groups are also active in many
the next to open up a high-end logistics centre. The professional European countries.
management system in the clothing sector has swept away small
retailers. This development has been a concentrated process
Outerwear 2010 l 21
Table 15: Major specialised clothing chains of French origin in France, 2008-2009
Only three out of the top ten general clothing specialists in France Bershka), Cortefiel; Mango (also from Spain; 107 stores); Benet-
are companies from abroad - C&A (from Germany; 119 stores), ton (from Italy; 91 stores); M&S Mode (from The Netherlands; 150
H&M (from Sweden; 133 stores) and Inditex from Spain (231 stores), Esprit (from Germany/Hong Kong; 640 stores) and Gap
stores in France, of which 115 Zara stores). Other foreign retail (from the USA; 17 stores).
companies, active in France, are other formula of Inditex (mainly
22 l Outerwear 2010
2.4.3 Distribution channels 2.4.3.1.2 Clothing multiples
Table 16 gives an overview on sales made by different clothing re- The long-term trend clearly indicates a higher importance of
tail channels in 2004 to 2008. Compared to previous years, sales clothing multiples and more concentration of the market (Journal
in independent clothing shops are decreasing. They once used to de Textile). Generally, the French market is still less concentrated
be the most important location for the French to buy their clothing. in the retail sector than in other European countries. However,
Now they are (at 20%) behind the multiples that have a share of this is expected to change. The outlets for children's wear are
37%. The trend towards more concentration is also reflected by numerous. There are three times more outlets of clothing multiples
the relatively high share of super- and hypermarkets (11%). Home for women than for men. The largest player in the retail business
shopping companies took some 9% of sales value in 2008. is the Groupe Vivarte (formerly Groupe André). Groupe Vivarte
owns the clothing chains Caroll, Kookaï, Creeks, Liberto and La
Table 16: Market shares of retail distribution of clothing in France, Halle aux Vêtements. Shoe shop chains called André, San Marina,
2004 – 2008 [% of value] Orcade-Minelli, La Halle aux Chaussures and Chaussland et
Besson also belong to Groupe Vivarte. In November 2001, Groupe
Market Shares 2004 2006 2008
of retail distribution André was renamed Groupe Vivarte.
Specialists 59 58 57
Market share: 37% in 2008, Trend: Stable
Independent retailers 21 21 20
Clothing multiples 38 37 37
2.4.3.1.3 Department and variety stores
Non-specialists 41 42 43 The main department store in France is Les Galeries Lafayette,
Department and variety stores 7 8 9 which also operates under the name Nouvelles Galeries. Ano-
Hyper- and supermarkets 12 12 11 ther department store of importance in France is PPR (Pinault-
Printemps-Redoute). Variety stores include Prisunec, Monoprix
Home shopping companies 8 8 9
and Inno, which belong to Galeries Lafayette. The importance
Sports shops and other chains 7 8 9
of department stores has stabilised over the last few years after
Other channels 7 6 5 decreases in the last decade.
Total 100 100 100
Source: Journal de Textile (2009) and UFIH (2009) Market share: 9 % in 2008, Trend: Increasing
Factory Outlet Centres have also gained importance, in 2008 there 2.4.3.1.4 Hyper- and supermarkets
were 21 of them spread around the country with an total area of The grocery super- and hypermarkets offer comparatively more
280'000m2 and a total turnover of € 0.8 billion. men's wear. The supermarkets and hypermarkets that have a
higher share in the menswear segment have done better for
2.4.3.1 Retailers major items, but are reported to have problems with small items,
2.4.3.1.1 Independent retailers although socks and underwear constitute their main clothing
The share of independent retailers decreased from 28% in 1995 business. A trend can be noted away from cheap products to
to 20% in 2008. Independent retailers are defined as retailers with fashionable clothing offering better quality.
less than five ‘active’ outlets. There are around 33'250 independent
outlets in France. Their buying is sometimes linked to franchise Market share: 11% in 2008, Trend: Slightly decreasing
organisations. Although the share of independent specialised
retailers is generally decreasing, it is still much higher than in other
countries. Figures indicate that the strong decline came to a stop
in 2004, when there was an upward trend.
Outerwear 2010 l 23
2.4.3.1.5 Home shopping companies The clothing manufacturer has to rely on the distributors’ promo-
The mail-order business in France slightly increased during the tion and advertising for their respective collection. This can cause
past 3 years but still remains under 10%. Among the mail-order problems, for instance when brand names are promoted ina-
houses, La Redoute and 3 Suisses must be mentioned. La dequately. This can only be avoided by the installation of a costly
Redoute is owned by PPR, and 3 Suisses belongs to the Groupe own retail system by the manufacturer. Because of the strong
3 Suisses International, which also carries the mail-order busi- position of the retailers, some French clothing brands are ready to
ness Blanche Porte. Home shopping companies are said to have accept these greater financial investments.
aggressive sales policies and heavy promotion. In the longer run,
however, the mail-order business is expected to grow, since more Establishing their own retail chain allows them to adapt more
and more French consumers have Internet access at home. It quickly to evolving market trends and have more influence on the
is only a matter of time until the French return to buying certain distribution. The sales personnel can be trained according to the
products from the home shopping companies. marketing strategy as well as the product’s image. In any case, it is
recommendable not to neglect other local apparel manufacturers
Market share: 9 % in 2008, Trend: slightly increasing when building up an own retail system.
Market share: 5% in 2008, Trend: Decreasing Clothing exports into the French market via a sales agent are very
common. Especially in the case of France, it is recommended
2.4.3.2 Sales intermediaries for foreign manufacturers EU to work with agents as the buying
2.4.3.2.1 Clothing manufacturers of clothing is very much concentrated on the so called ‘centrales
French manufacturers have slid against the retailers and their d’achats’. The buying managers often import through sales agents
position has weakened in recent years. This is also confirmed by based in France who represent reliable manufacturers from abroad.
the fact that there are fewer ‘manufacturer’s brands’, because they
are partially being replaced by the ‘retailer’s brands’. The industry 2.4.3.2.4 Importers/wholesalers
is characterised by high price pressure: on the one hand, consu- Some French retailers (mainly super- and hypermarkets, textile
mers have become more price conscious; on the other, imports of discounters and to some extent clothing chains) prefer not to run
cheap garments from abroad lower the prices. Manufacturers have own control and sourcing units in overseas markets. These retai-
no chance but to follow the retailers. French manufacturers often lers buy their products via importers/wholesalers and often get
produce their core product range on their own, but they also buy attractive conditions. Since the end of the eighties, the importers
a considerable share of their product assortment from manufac- have gained importance as the previously very strong national
turers abroad. Apparently, they do so in order to add certain pro- French clothing industry became less competitive due to incre-
ducts to complete their collection. Opportunities exist for exporters asing production costs. As a result, many importers/wholesalers
who are interested in forming relationships or partnerships with enjoy increasing orders and revenues.
French producers.
24 l Outerwear 2010
2.5 French fashion trade fairs.
Table 17: French fashion trade fairs 2010
Trade fair Date Location
Salon international de la lingerie 23. - 25.01.2010 Paris
The Prêt-à-Porter Trade Fair is an international women ready- In the highly competitive European fashion world, French trade
to-wear exhibition with a ‘boutique’ section. The collections are fairs are major opportunities for business and marketing on an
normally presented on the classical pre-order system, mea- international scale, although the Prêt-à-Porter has slipped against
ning half a year ahead of the actual sales in the shops. The the Italian and German clothing trade fairs in recent years.
winter collection is shown in March, the summer collection in
September of the previous year. The fair has a certain importance
at the European level, but it has the character of an image fair.
Nevertheless, it is the French trade fair that attracts the most
visitors.
Outerwear 2010 l 25
2.6 List of major buyers in France.
Clothing Chain Stores
26 l Outerwear 2010
Clothing Chain Stores Jeans- and Sportswear
Outerwear 2010 l 27
Department stores Mail Order Companies (product range: generally all kinds of
clothing, price segment: low to middle)
28 l Outerwear 2010
Super- and hypermarkets Manufacturers / importers and wholesalers / importers
Auchan Product range: all products Adolphe Lafont SA Products: ladies’, men’s
Rue de la Recherche 200 Price segment: mid-price 320, rue Georges Foulc wear, professional wear,
F - 59650 Villeneuve-d’Asqu level F - 69665 Villefranche sur Saone manufacturer and
Tel.: +33 - 320 – 431212 Number of outlets: 14 coun- Tel.: +33 – 474 – 62 68 68 wholesaler
Fax: +33 – 320 – 436400 tries, 294 Fax: +33 – 474 – 62 23 99
hypermarkets, 588 super-
markets Chipie International Products: ladies’,
11, avenue du Général Leclerc men’s, children’s wear,
Carrefour SA Product range: all products F - 11003 Carcassonne Cedex Manufacturer of sports-
ZAC Saint-Guénault Price segment: mid-price Tel.: +33 – 468 10 54 54 wear, leisure wear,
BP 75 level Fax: +33 – 468 10 54 55 35 own shops – brand
F - 91002 Evry Cedex Number of outlets: 215 ‘Chipie’- high price level
Tel.: +33 – 360 – 913737 hypermarkets www.chipie.tm.fr
Fax: +33 – 360 – 794498
www.carrefour.com Catimini SA Product: children’s wear
94, rue Choletaise and maternity wear
Casino-Groupe Product range: all products F - 49 – 450 St. Macaire-en- Outlets: 95 shops in
24, rue de la Montat Price segment: mid-price Mauges France
F - 42004 Saint-Etienne level Tel.: +33 – 241 – 71 41 41
Tel.: +33 – 477 – 454256 More than 6000 outlets (not Fax: +33 – 241 – 71 41 32
Fax: +33 – 477 – 454365 all selling
clothing) Chouette Sportswear Products:
216, rue St. Denis ladies’ wear, sportswear.
Intermarché Product range: all products F - 75002 Paris Manufacturer
1, rue du Chemin Blanc Price segment: mid-price Tel.: +33 – 1 – 42 36 39 50
F - 91160 Longjumeau level Fax: +33 – 1- 42 36 4 554
Tel.: +33 – 164 – 545500 Number of outlets: approx.
Fax: +33 – 164 – 545190 75 Class Affaire Products:
67, rue de Sedaine ladies’, menswear
E. Leclerc Product range: all products F - 75011 Paris Manufacturer + 37 shops
52, rue Camille Desmoulins Price segment: mid-price Tel.: +33 – 1 – 48 06 46 06
F - 92451 Issy Les Mouli- level Fax: +33 – 1 – 48 06 46 92
neaux
Tel.: +33 – 146 – 625200 Coup de Coeur Product: womenswear
Fax: +33 – 146 – 629600 6, rue de Bachaumont Manufacturer + 10 shops
www.e-leclerc.com F - 75002 Paris
Tel.: +33 – 1 – 448 28 500
Promodes Product range: all products Fax: +33 – 1 – 448 28 501
Z.I. route de Paris Price segment: mid-price
F - 14127 Mondeville Cedex level Eden Park Product: menswear
Tel.: +33 – 231 – 706000 9, av. Hoche Manufacturer + 7 shops,
Fax: +33 – 231 – 706000 F - 75008 Paris 15 franchising
Tel.: +33 – 1 – 538 90 010 partners
Fax: +33 – 1 – 495 30 697 www.eden-park.tm.fr
Outerwear 2010 l 29
Buying associations
30 l Outerwear 2010
3. Germany.
3.1 General economic situation. years, German households spent a constant average of 4.4% of
their disposable income on clothing.
The German economy over the last year collapsed. The gross Several factors resulted in the stagnation of expenditure on
domestic product in Germany decreased in 2009 compared to the clothing, like:
previous year by a full 5% decline in real gross domestic product
(GDP). Thus, the recession was more than five times as strong as • Decreasing population figures
in the previously largest decline in 1975 following the oil crisis. At • Changing consumer expectations
that time, a decrease of 0.9% was recorded. In 2008, the German • Growing imports from low-cost countries
economy had grown by 1.3% a year earlier by 2.5%.
3.2.2 Market characteristics
Reason for the severe recession was the slump in exports and In 2009, clothing price rose by 2.4% and the average outerwear
investment. Exports collapsed by 14.7%, while businesses spend spending per person reached € 611 in 2008, which was higher
20.0% less in machinery, vehicles and other capital goods. The than the EU average of € 590.
construction spending fell by 0.7%. On the other hand private
consumption went up by 0.4%; because the prices barely rose and The present situation of the outerwear market in Germany can be
the German government introduced the car scrap scheme. The characterised by the following brief statements:
government consumption grew by 2.7%.
Clothing items from the outerwear segment can be characterised
In the second quarter of 2009, the German economy grew for the by a permanent price decrease. The main reason for this is
first time since the beginning of 2008 - by 0.4% over the previous the production of garments from low-wage countries. Product
quarter. In the third quarter thanks to strong investment, fiscal imitation has become easier through global production, easy
stimulus programs and the continuing increase in exports the GDP communication by Internet / e-mail and liberalised trade.
grew by 0.7%.
Renowned market research institutes have stated that the ‘middle
For 2010, the federal government expects a growth of about 1.5%. market segment’, (which is characterised by quality consciousness
and ‘brand orientation’) has become much smaller in recent years.
Unlike in previous recessions, the labour market remained The outerwear and clothing market is moving in two directions:
relatively stable: It is estimated that the number of unemployed (a) value/price and (b) trend/fashion, whilst the middle segment is
will rise in 2010 by about 450,000 compared to the 2008 annual decreasing.
average. However, this figure remains well below the 1.5 million
additional jobs that were created during the years 2006 to 2008. German consumers are well-known for their price consciousness,
the share of private label merchandise in the outerwear market
being higher than in other major EU countries. Influences of the
3.2 The market for outerwear. media (magazines, TV and Internet) make consumers more
conscious about the latest fashion trends and prices, so they are
3.2.1 Market size better informed to make a choice than before.
Germany still represents the largest single market within the EU,
with an estimated total sales volume in clothing of 58.4 billion € Especially the men’s wear market is very dynamic due to an
in 2008 (Statistics BTE Cologne 2009, amounts at retail prices increasing number of fashion-conscious men. Spin-offs from adult
including VAT), this represents an increase of 1.0 % to 2007. brands and extensive marketing led to good results in children’s
and teenage clothing from trendy brands and sports labels.
The outerwear clothing sales volume was 50.3 billion € in 2008 However, the market for children’s outerwear has been negatively
(down from € 50.9 billion in 2007), this corresponds to an average affected by the declining birth rate. Babies’ wear and small sizes
spending per person of € 611 (down from € 618 in 2007) per in children clothes are decreasing, due to the popularity of second
annum (EU average in 2008 was € 590 per annum). For the last 3 hand clothes and by receiving used clothes from friends and
Outerwear 2010 l 31
family. The German population is becoming oversized, so that The size and age structure of the population is one of the basic
demand for clothes for the full figured man or woman is high and determinants of how much will be spent on outerwear.
increasing. Many companies started collections for larger sized
clothing. The German population is decreasing at a very slow pace from
82.5 million in 2003 to 82.3 million in 2007 and 82.0 million end of
3.2.3 Demographic characteristics 2008. It is projected to decrease to 81.2 million by 2015.
Figure 3 shows that the major population segment by age group is
between 40 and 44 years of age (approximately 7.5 million – male The following positive trends influence the market for outerwear:
and female), followed by those in the 35-39 bracket (approximately The older people amongst the aging population tend to spend
7 million people). In other words, Germans in their early forties more on comfortable clothing, while outdoor activities are
represent the largest target group (in numbers only). becoming more and more popular among an important number of
active seniors.
The younger generation under 25 is comparatively small, e.g. the
age group between 20 and 24 represents only approx. 4.5 million Younger consumers are becoming more and more interested in
Germans (5.5% of the whole population). The smallest potential fashion trends.
‘target group’, apart from those over 70, is the segment under 10
years of age. The consequences of this for clothing manufacturers The following negative trends influence the market for outerwear:
from foreign countries are evident. The German birth rate is projected to decrease over the next
years; this will affect the growth of the babies’ wear market.
10 0 +
95-99
male 90-94 female
85-90
80-85
7 5 -7 9
7 0 -74
65-69
60-64
55-59
50-54
45-49
40-44
35-39
30-34
25-29
2 0 - 24
15 -19
10 -14
5-9
0-4
4,0 3,5 3,0 2,5 2,0 1,5 1,0 0,5 0,0 0,0 0,5 1,0 1,5 2,0 2,5 3,0 3,5 4,0
Population in millions
32 l Outerwear 2010
3.2.4 Retail sales by product category 3.2.5 Consumer behaviour
Table 18 shows that the overall outerwear turnover increased The latest observations on consumer behaviour based on market
by 4.1% from 2007 to the 1st quarter 2009. This is a good result research for this marketing handbook show that consumer of
compared to the high downturn of -13.4% between 2002 and the 2009:
1st quarter 2005.
• react very noticeably to economic changes and moods
The total turnover for men’s wear (6.1%) performed by 1% better • tend to buy less since all wardrobes are full and basic needs can
than women’s wear (5.1%). Children’s wear decreased by 1% be fulfilled less expensively
in total turnover; this reflects the declining birth-rate and the • are highly sensitive to price the former belief that ‘cheap things’
popularity of second hand clothes and used clothes received from are bad and expensive is good, no longer applies
friends and family. • show a clear trend towards shopping at textile discounters
• Significant fashion impulse does not exist any more. If everything
There are several ways of segmenting the clothing market. Table is acceptable, then so does the outfit from last year.
18 provides an overview of the turnover development in the major
product segments, in percentages, covering the main items of 3.2.5.1 Consumer preferences
women’s, men’s and children’s outerwear analysed by this survey. There have been tremendous shifts in consumer preferences with
regard to the most popular shops in recent years. Market leaders
Table 18: Outerwear turnover development in % by gender and confirm that this development corresponds directly to more unpre-
product categories dictable consumer buying patterns towards much cheaper goods,
closer to the actual demand (not in advance) and in shops with
2007 2008 1st Q.
2009 more ‘event character’.
Women’s wear 3 1 1
coats -4 0 -7 A survey of the clothing market segment shows that many Ger-
suits -4 2 -5 mans buy from clothing multiples (31%). Department stores lost
jackets/blazers -1 1 4 1% compared to 2004 to 11% in 2007 are has been overtook by
dresses 12 3 7 home shopping companies (13%).
Outerwear 2010 l 33
Following the 2008 communication analysis report published by the 3.2.5.2 Consumer expenditure
Brigitte magazine, the 5 most preferred clothing retailers among all The private household consumption increased by 0.3% to € 1’341
female consumers between the ages of 14 and 64 years are; billion in 2009.
I am very concerned about 13.7 15.9 Source: Gherzi estimation, CBI 2009
buying the right vvvbrand
I often buy special offers 51.1 45.2 The share of clothing expenditure in all household expenses has
permanently fallen. According to Table 22, published by the BTE
Source: Typologie der Wünsche, Intermedia-Burda, 2009 (German Association of Textile Retailers), German consumers
only spend in 2008 an average of 4.4 % of their purchases on
fashion. Back in 1997 German households used to spend 5.8 % of
their disposable income on clothing.
34 l Outerwear 2010
Table 22: Household spending on clothing [% of total spending]
Source: BTE Cologne 2009 – Note: Based on all private households in Germany
Outerwear 2010 l 35
Table 25: Imports of knitted outerwear by gender and product categories, 2006-2008
36 l Outerwear 2010
As shown in table 26 the two main woven product groups impor- (62.02) had the highest growth with 22.2% (62.14) and 13.9%
ted where suits, jackets, etc. for women (62.04) and suits, jackets (62.14) from 2006 to 2008. The share of European imports of
etc. for men (62.03). From 2006 to 2008 the 62.04 product group woven outerwear fell from 39.2% in 2006 to 34.7% in 2008. Total
had a value decline of 12.1% and 62.03 had an increase of 4.8%. imports of woven outerwear fell by 0.7% in the same time period
Shawls, scarves, etc. (62.14) and coats, anoraks, etc. for women
Table 26: Imports of woven outerwear by gender and product categories, 2006-2008
Outerwear 2010 l 37
3.3.2 Outward Processing Trade (OPT) 3.3.3 Largest suppliers of outerwear
A brief analysis of the OPT imports of outerwear into Germany Table 28 shows the imports of finished products from major
shows that most of the top 20 OPT countries decreased OPT with supplying countries into Germany between 2006 and 2008.
Germany in 2008. Overall OPT decreased by 35% from year 2006 Germany’s main import partners are China followed by Turkey and
to 2008. Bangladesh. The three leading supplying countries represent 46%
of all clothing imports in 2008. Not less than 67% of all imports
Sri Lanka, Vietnam and Bosnia-Herzegovina have increased their originate from non-EU countries.
OPT activities with Germany by 59%, 53% and 43% respectively
from 2006 to 2008. Extra European imports by Germany increased by 7.5% from
2006 to 2008. Taking a closer look to the largest extra EU
supplying countries of outerwear (Table 28), the ‘winners’ in terms
of sales increases from 2006 to 2008 are China (+43%), Egypt
(+39%) and Switzerland (+31%). The ‘losers’ are Hong Kong
(-73%), Cambodia (-26%) and Myanmar (-25%)
Position Country 2006 [‘000 €] Change 2007 [‘000 €] Change 2008 [‘000 €]
from 2006 from 2007
1 Macedonia 115’634 20% 138’538 7% 148’863
2 Ukraine 185’669 -14% 160’464 -10% 144’647
3 Vietnam 25’579 14% 29’129 35% 39’250
4 China 33’157 24% 41’214 -5% 39’028
5 Tunisia 37’956 8% 41’025 -8% 37’576
6 Hong Kong 32’643 22% 39’778 -7% 37’058
7 Bosnia-Herz. 25’127 35% 33’875 6% 35’891
8 Croatia 25’713 14% 29’195 13% 32’955
9 Indonesia 17’571 26% 22’223 3% 22’929
10 Moldova 24’421 7% 26’108 -17% 21’607
11 Serbia 20’065 33% 26’716 -31% 18’516
12 Sri Lanka 8’786 36% 11’924 17% 14’000
13 Morocco 16’176 0% 16’164 -18% 13’242
14 Belarus 20’517 -43% 11’768 -13% 10’233
15 Thailand 8’703 25% 10’847 -16% 9’129
16 Philippines 8’470 5% 8’912 -3% 8’661
17 Myanmar 10’085 -16% 8’428 -15% 7’145
18 Albania 5’690 -4% 5’479 5% 5’726
19 Russia 16’189 -54% 7’496 -25% 5’626
20 Colombia 5’189 -33% 3’481 -4% 3’358
Total 2’052’996 -33% 1’367’722 -3% 1’333’493
38 l Outerwear 2010
Table 28: Largest extra EU supplying countries of outerwear,
2006-2008
Position Country 2006 [‘000 €] Change 2007 [‘000 €] Change 2008 [‘000
from 2006 from 2007 €]
1 China 3’531’488 21% 4’277’658 18% 5’052’168
2 Turkey 2’266’329 6% 2’406’256 -10% 2’164’774
3 Bangladesh 1’322’747 -5% 1’252’179 10% 1’382’857
4 India 636’947 -1% 629’546 7% 676’051
5 Indonesia 379’466 -8% 350’770 9% 382’068
6 Vietnam 286’205 12% 320’795 4% 332’125
7 Tunisia 263’559 14% 300’974 5% 316’015
8 Macedonia 250’020 13% 281’857 1% 283’411
9 Pakistan 188’163 2% 191’213 -5% 182’072
10 Hong Kong 649’736 -39% 396’867 -55% 178’285
11 Cambodia 239’220 -28% 173’271 2% 176’215
12 Ukraine 193’167 -14% 166’724 -8% 153’661
13 Switzerland 117’102 43% 167’025 -8% 153’373
14 Thailand 140’748 -16% 118’085 1% 119’368
15 Morocco 125’567 1% 126’818 -16% 106’876
16 Sri Lanka 82’690 17% 96’539 10% 106’336
17 Egypt 68’938 6% 73’048 31% 95’506
18 Croatia 103’687 2% 105’975 -12% 93’526
19 Bosnia and Herzegovina 59’305 8% 64’257 5% 67’460
20 Myanmar 82’290 -16% 68’844 -11% 61’389
Extra-EU 27 11’735’915 4% 12’259’693 3% 12’616’660
Intra-EU 27 6’666’593 1% 6’702’980 -9% 6’105’096
Total 18’402’508 3% 18’962’673 -1% 18’721’757
Outerwear 2010 l 39
Table 29: Largest intra EU supplying countries of outerwear, 2006-2008
Position Country 2006 [‘000 €] Change 2007 [‘000 €] Change 2008 [‘000 €]
from 2006 from 2007
1 Netherlands 977’171 10% 1’075’327 -16% 902’396
2 Italy 968’719 -4% 934’172 -12% 824’799
3 Poland 451’965 4% 469’121 29% 606’172
4 Romania 845’030 -24% 641’298 -12% 563’918
5 Belgium 375’729 6% 398’439 0% 400’277
6 Denmark 420’293 2% 428’398 -8% 394’474
7 France 327’427 24% 406’936 -9% 369’416
8 Bulgaria 404’017 -12% 355’342 -8% 325’439
9 United Kingdom 320’485 2% 327’902 -4% 315’168
10 Austria 259’514 10% 285’428 -13% 247’062
Intra EU 27 6’666’593 1% 6’702’980 -9% 6’105’096
Extra EU 27 11’735’915 4% 12’259’693 3% 12’616’660
Total 18’402’508 3% 18’962’673 -1% 18’721’757
3.4 Trade structure. 20 companies accounted for 50% of the German retail-clothing
and textile market.
3.4.1 Developments in the retail trade
The major developments in the German clothing retail structure
Table 30: The most important foreign-owned clothing retailers are as follows:
in Germany
Market shares of specialised clothing multiples, textile discounters
Retailer Country Number of
of origin stores in and non-specialists like hyper-, supermarkets, discounters, variety
Germany
stores and also the coffee shop chain Tchibo, have increased in
Hennes & Mauritz Sweden 340 the outerwear sector. This has negatively affected specialized
Vögele Switzerland 326 independents and department stores.
Miss Etam France 81
Orsay (Mulliez Group) Germany (France) 260 According to BTE, the total number of German outlets with clothing
Pimkie (Mulliez Group) Germany (France) 170 in their assortment is 45’000. The number of independent clothing
Benetton Italy 212 stores is estimated at 26’500, of which 7’000 are specialised in
Zara (Inditex) Spain 65 women’s wear, 2’000 in men’s wear, 15’000 have a broader range
and the remaining part is specialised in another product group.
Mango Spain 52
Around 40% of the independent retailers are member of a buying
M&S Mode Netherlands 62
corporation. In no other European country, with the exception
Arsana Turkey 230
of the Netherlands, do the buying organisations also act as
Zeeman Netherlands 245 independent retailers as they do in Germany. The most important
Source: Gherzi analysis, CBI buying corporations are Ardek (http://www.ardek.de) which
specializes in babies’ and children's products including clothing
and has 350 members with 500 outlets; and Katag-abz (http://
40 l Outerwear 2010
www.katag.net) which operates through 364 members with 1’200 Table 31: Major German-based chains selling outerwear
outlets. Other buying groups are Unitex (http://www.unitex-gmbh. (2008/2009)
de) with 500 members; Sütegro (http://www.suetegro.de) which
Retail chain Parent company Number of
has 130 members and is specialized in women’s wear. Sütegro stores in
became the fashion and style division of the EK-Service group. Germany
General
Most of the sport shops are organisations of independent retailers, C&A C&A 303
many of them being organised in (international) co-operations like P&C P&C West and P&C Nord 88
Intersport (1’462 outlets; http://www.intersport.com) and Sport Sinn Leffers WHG 24
2000 (770 members with 1’130 outlets; http://www.sport2000.de). Wöhrl Wöhrl 40
K+L Ruppert K+L Ruppert 61
Table 31 gives an overview of the important German chains, Strauss Innovation Strauss Innovation 98
operating in Germany. Some remarks regarding this overview: Esprit Esprit Europe 140
Women
• Orsay is owned by the French Muliez Group. Since the with
Bonita Mode Bonita Group 732
drawal of Orsay from the French market, this company can be
Ulla Popken Popken Group 186
considered as German-based.
Women Store C&A 17
Orsay Mulliez Group (France) 260
• Since 1997, the European part of the Esprit business was
acquired by the Hong Kong division of Esprit Holding. Men
Headquarters of Esprit Europe is established in Germany, from Pohland Pohland 12
which the wholesale and retail activities are managed. NIC Bonita Group 60
Children
• The number of children’s wear chains and men’s wear chains is Kids Stores C&A 105
very limited in Germany. Leisure
New Yorker Friedrich Knapp 299
• Leading clothing multiple C&A sells clothing for the whole family Mister Lady Western Store Beran 204
and operates mainly in the middle of the market, but is also Jeans Fritz Schaeffer-Kuehn 191
active in both the upper and the lower price brackets. Other
Sports
C&A formula are Kids Stores and Women Stores (mostly active
Runners Point Hannover Finanz 102
in Germany). The market share of C&A came under pressure,
Discounters
besides increasing competition from non-specialists, since the
Ernsting’s Family Ernsting Familie 1’350
entrance and strong expansion of foreign general clothing chains
Takko Takko Holding 841
like Hennes & Mauritz, Vögele and Zara.
KiK Tengelmann-Gruppe 2’039
Adler Metro Group 107
NKD Daun & Cie. 1’000
Source: CBI
Outerwear 2010 l 41
Textile discounters sell family clothing, sportswear, body wear Many textiles, including knitted and woven outerwear, can increa-
and household textiles, but sometimes also other product groups. singly be found in food discounters, super- and hypermarkets.
They buy in large quantities and avoid middlemen, in order to get
low-priced goods in the shops quickly. All discounters mentioned
increased strongly in turnover and in number of outlets in recent
years; they compete, among others, with the Dutch discount chain
Zeeman (239 stores in Germany).
Source: CBI
• Market conditions have become more difficult and the • Ongoing expansion by many of the leading chains to develop
competitive pressure is increasing. This is due to the expansion smaller store formats, so as to create a more specialised
of powerful foreign companies in the German market and boutique character (for instance H&M, C&A and Zara).
market activities by companies from outside the clothing sector.
On the other side, many German retail chains have expanded • Stronger ranges of complementary accessories and footwear.
their activities abroad.
• Clothing specialised multiples have been the largest exponents
• The non-food offer in the grocery sector is increasing in of the fast-fashion phenomenon, which has encouraged more
Germany. The hypermarket format, with its strong non-food frequent purchasing.
component, plays an increasingly important role. However,
it should be noted that these companies operate more in
low-priced incidental offers than in a fixed/permanent outerwear
assortment.
42 l Outerwear 2010
3.4.2 Leading retailers
Table 33 gives an excellent overview of the structure and the
development of the largest German textile retailers. This analysis
was carried out by the renowned trade magazine Textilwirtschaft/
Frankfurt on an annual basis
Position Retailer Chain Turnover 2008 [mn €] Turnover 2007 [mn €] Change [%]
1 Arcandor 4’116 4’170 -1.3%
2 Otto 3’480 3’406 2.2%
3 C&A 2’954 2’933 0.7%
4 Metro 2’539 3’077 -17.5%
5 H&M 2’476 2’395 3.4%
6 Tengelmann 1’568 1’498 4.7%
7 P&C, Düsseldorf 1’343 1’351 -0.6%
8 Aldi-Gruppe 1’071 1’100 -2.6%
9 Lidl 1’029 1’050 -2.0%
10 Tchibo 931 1’023 -9.0%
11 Esprit 800 740 8.1%
12 Ersting’s Family 676 550 22.9%
13 New Yorker 622 603 3.2%
14 Takko 560 566 -1.1%
15 Klingel 525 536 -2.1%
16 NKD 498 498 0.0%
17 Adler 464 515 -9.9%
18 Bonita 443 428 3.5%
19 Sinn Leffers 430 474 -9.3%
20 P&C, Hamburg 420 420 0.0%
Source: Textilwirtschaft
Outerwear 2010 l 43
3.4.3 Distribution channels 3.4.3.1 Retailers
The structure of the textile / clothing retail market can also be split 3.4.3.1.1 General clothing retail
into two major groups: “specialised retailers” and “larger forms of Independent retailers do not usually buy directly from developing
textile retail”. For more details, see Table 34. countries. With approximately 43'000 textile and clothing shops
all over Germany, they still play an important role in the market. A
Table 34: Textile and clothing retail channels by market share, high percentage of the retailers are members of buying associa-
2006 - 2008 tions that takes over certain functions from the members such as
purchasing, marketing, logistics etc.
Retail channel 2006 2007 2008
General clothing retail 38.0 39.3 39.5
The most important department stores are C&A (435)*, H&M
Men clothing retail 2.6 2.6 2.7
(339)*, P&C West and Anson’s Menswear (88)* and P&C North
Women clothing retail 7.6 7.6 7.6 (25)*, Sinn Leffers (47)*, K+L Ruppert (65)*, C. Vögele (326)* and
Children clothing retail 0.5 0.6 0.5 Wöhrl (36)*. New Yorker with 302 outlets is the largest jeans and
Others 0.2 0.2 0.2 sportswear chain. The major women's wear multiples are BiBa
Total general clothing retail 48.9 50.3 50.5 (250)* and Appelrath_ Cüpper (14)*, part of the Douglas Group,
Dowry, bedding 2.2 2.2 2.3 Orsay from France (242)*, Bonita (800)* and Ulla Popken for large
Carpet, drape 3.2 3.2 3.2 sizes (187)*. Menswear multiples are NIC (41)* (owned by Bonita)
Other 0.8 0.8 0.7 and Pohland (8)*.
Total general textile retail 6.2 6.2 6.2
Total textile and clothing 55.1 56.5 56.7 * number of outlets
specialised retail
Department stores 12.2 11.9 11.7 Market share: 48.9% in 2008
Sports shops 2.5 2.5 2.6 Trend: Slightly increasing (2006 = 50.5%)
Home shopping companies 13.5 12.8 12.9
3.4.3.1.2 Department stores
Super- and Hypermarkets 13.7 13.4 13.1
The major department stores are Karstadt with 120 outlets (since
Other 3.0 2.9 3.0
1st December 2009 in chapter 11) and Galleria Kaufhof with 113
Total non textile or clothing 44.9 43.5 43.3 stores, belonging to the Metro group. Galleria Kaufhof's turnover
specialised retail declined constantly from € 3.6 bn in 2006 to € 3.5 bn in 2008.
Grand Total 100.0 100.0 100.0 Another example is Woolworth with 161 outlets.
Source: BTE
Market share: 11.7% in 2008
Trend: Slightly decreasing (2006 = 12.2%)
3.4.3.1.3 Sport shops
The turnover of clothing in sports shops is influenced by the unpre-
dictable weather, shorter product life cycles, consumer behaviour
and continued cost and price pressures. In recent years sports
shops have developed themselves from pure or predominant pro-
viders of winter clothing towards providers with a large range of for
all weather gears, with emphasis on outdoor and lifestyle.
44 l Outerwear 2010
3.4.3.1.4 Home shopping companies and so on (also) sell through their own outlets. These brands are
Quelle, one of the leading home shopping companies filed chapter normally positioned in the mid- to upper market segment. The
11 in 2009. The Otto Group (another leading home shopping com- tendency towards self-retailing by clothing brands/manufacturers
pany) bought the Quelle brand. This deal still has to be approved has increased and taken on different forms such as concessions,
by the FTC (Federal Trade Commission). shop-within- the-shop, sales corners in department stores and
own mono-brand shops.
53.3% of the total home shopping turnover in 2009 was generated
by internet sales. 3.4.3.2.2 Central buying associations
55% of all independent clothing retailers in Germany are members
Market share: 12.9% in 2008 of a buying association. These figures underline the significant role
Trend: Slightly decreasing (2006 = 13.5%) of buying associations for the majority of specialised independent
retailers. The buying policy is similar to that of multiple stores (buy-
3.4.3.1.5 Super- and hypermarkets ing directly or through buying agents abroad). They operate in the
The main super- and hypermarkets selling clothing are: Metro, mid- to upper market segment. The leading associations are Katag
Aldi, Edeka, Tengelmann, Rewe, Lidl, Tchibo, and Globus. The / abz in Bielefeld and Unitex in Neu-Ulm. Some, such as Ardek
clothing sold in those markets is mainly restricted to clothing in Hofheim / Wallau specialise in children's wear, or Intersport in
accessories such as socks, caps, scarves and so on, but increas- Munich specialising in active sports- and hardware. The German
ingly includes T-shirts, shirts, jeans etc. Aldi and Lidl in particular buying associations also have members from the Netherlands,
offer more and more fashion products alongside their food- and Belgium, Austria and Switzerland.
non-food assortment.
3.4.3.2.3 Sales agents
Market share: 13.1% in 2008 Sales agents for clothing in Germany play a major role in the
Trend: Slightly decreasing (2006 = 13.7%) market, especially for the renowned clothing brands. The more
reputable agents are members of the Central Association of Ger-
3.4.3.1.6 Others (FOC) man Sales Agents (CDH) in Cologne. They often have their own
Factory Outlet Centres are becoming very popular in Germany. showrooms in fashion centres of major German cities such as
So far 11 FOCs have been built with a total surface of 120'000 Neuss / Düsseldorf, Frankfurt, Hamburg, Munich and so on. Only
m2. Further 11 FOC's with a total surface of about 120'000 m2 will strong manufacturers from non- European countries with a market
soon be built. oriented range and an excellent service might find the right partner
in the CDH News published monthly.
3.4.3.2 Sales intermediaries
3.4.3.2.1 Clothing manufacturers 3.4.3.2.4 Importers / wholesalers
Manufacturing companies play a pivotal role in the clothing It is estimated that there are over 1'000 importers / wholesalers
distribution system in Germany. Most of the German clothing for clothing in Germany. They range from very small units run by
brands work in a dual way: On the one hand they buy directly from the owner, up to larger companies with more than 100 employees
developing countries in the Far and Middle East on a full import worldwide such as Miles, Jebsen & Jessen, Nickel etc. They often
basis (finished products). On the other hand, Germany is by far operate through their buying offices in the Far East, which take
the largest European buyer of clothing on outsourcing basis (OPT over the order and control function on the ‘sourcing spot’. The
business). Due to its proximity to Eastern European countries, importers / wholesalers have an important role, they have excel-
Germany was the ‘pioneer’ country in outsourcing production in lent know-how about worldwide sourcing and supply directly to all
the neighbouring countries to the East. The clothing industry has kinds of retailers in Germany and the neighbouring countries. The
been shrinking since the beginning of the nineties, to the point most reputable importers are members of the Association of non-
where now only the ‘fittest’ have survived. Larger companies such food importers (VFI) in Hamburg.
as TOM TAILOR, CARLO COLUCCI, S. OLIVER, STREET ONE
Outerwear 2010 l 45
3.5 German fashion trade fairs. footwear and sports equipment), which is partially covered by the
products specified for this study, the ISPO Fair in Munich plays a
For women's wear, the main event not only for Europe but also leading role for Germany and Europe. Approximately 1'600 exhibi-
worldwide is the CPD Fashion Fair in Düsseldorf, which is organ- tors from more than 40 countries show their products in February
ised twice per year (February and July) by the IGEDO company. and July each year. There have been tremendous changes and
Approximately 44'000 visitors and around 1'500 international challenges for the German textile and clothing fairs since 2000
exhibitors attend per event. The fair organisers have grouped the and this trend can be expected to continue in the next few years.
fair in different ‘theme worlds’ (Gallery, Italian Suite, Boutique, The shift in the ‘classical’ menswear segment from Cologne to
Concept II, Modern Essentials, Decorate, Special Luxury Women's Düsseldorf was the initial factor. Some two years back many reput-
Wear, Special Big is Beautiful). For manufacturers from emerging ed jeans and sportswear brands moved to the ‘Bread and Butter’
or developing countries the so called ‘Global Fashion’ (a fair within in Berlin. The fair organisers are permanently working on develop-
the fair) of the CPD in Düsseldorf is generally a good choice, since ing the fair structure and services: the idea being that the visitor
many buyers from Germany, Belgium, Luxemburg, Netherlands should have the most efficient and convenient way to become
as well as to a certain extent from Austria and Switzerland tend informed about fashion trends and to buy the clothing they require.
to visit this fair when they look for new suppliers. Leading fashion In most clothing segments, from a commercial point of view, the
fairs have suffered from the market developments. Nevertheless, German fairs still have the leading position within Europe although
for ‘mainstream’ fashion manufacturers from developing countries, some other fairs (particularly in Italy) have taken over the ‘fashion
the German clothing fairs are still a very good choice (from a com- leadership’. Among German retailers, the fairs mentioned above
mercial point of view). For the active sportswear market (including are regarded as ‘information platform No. 1’ to a very large extent.
46 l Outerwear 2010
3.6 List of major buyers in Germany.
Clothing chain stores
Bonita Gefühl für Mode Product range: Esprit Europe GmbH Product range: Women’s,
GmbH & Co. KG Women‘s wear Esprit-Allee men’s and children’s wear
Kesseldorfer Rott 39 Price segment: D-40882 Ratingen Price segment:
D - 46499 Hamminkeln Lower to mid level Tel.: +49 – 2102 – 123 – 0 Upper level
Tel.: +49 – 2852 – 9500 Number of outlets: 732 Fax: +49 – 2102 – 123 – 45 Number of outlets:
Fax: +49 – 2852 – 950100 – 100 800 directly managed
info@bonita.de info@esprit.com retail stores and over
www.bonita.de www.esprit.com 6,000 wholesale outlets
worldwide
E. Breuninger GmbH & Co. Product range:
Marktstr. 1 – 3 Women’s, men’s and Hettlage + Fischer GmbH Product range:
D - 70173 Stuttgart children’s wear Industriestraße 1 Ladies, men’s and
Tel.: +49 – 711 – 211-0 Price segment: D - 48644 Coesfeld-Lette children’s wear
Fax: +49 – 711 – 211-3053 Upper level Tel.: +49 – 2546 9345 – 0 Price segment:
kontakt@breuninger.de Number of outlets: 10 Fax: +49 – 2546 9345 – 79 Mid to upper level
www.breuninger.de info@hettlage-fischer.com Number of outlets: 2
www.hettlage-fischer.de
C&A Mode KG Product range:
Wanheimer Straße 70 Women’s, men’s and H&M Hennes & Mauritz Product range: Women’s,
40468 Düsseldorf children’ s wear GmbH men’s and
Tel.: +49 – 211 – 98720 Price segment: Spitalerstrasse 12 children’s wear
service@shop-CundA.de Lower to mid level D - 20095 Hamburg Price segment: Lower level
www.cunda.de Number of outlets: 303 Tel: +49 – 40 – 350 95 50 Number of outlets: 339
www.hm.com
Appelrath-Cüpper Product range:
Zeppelinstrasse 2 Women’s wear Orsay GmbH Product range: Women’s
D - 50667 Köln Price segment: Im Lossenfeld 12 wear
Tel.: +49 – 221 – 20 59 90 Mid to upper level D - 77731 Willstätt-Sand Price segment: Lower to
info@appelrath-cuepper.de Number of outlets: 14 Tel.: +49 – 7852 – 910 – 0 mid level
www.appelrath-cuepper.de Note: belongs to Douglas Fax +49 – 7852 – 910 - 909 Number of outlets: 260
Holding AG info@orsay.com Note: belongs to Mulliez
www.orsay.com Group
Outerwear 2010 l 47
Clothing chain stores
48 l Outerwear 2010
Clothing manufacturers (importing)
Department stores (selection) and wholesalers / importers
Kaufhof Warenhaus AG Product range: Heinrich Nickel Gmbh & Importer of men’s, ladies
Leonhard-Tietz-Str. 1 Ladies’, men’s and Co.Kg and
D - 50676 Köln childrenswear Wilhelm-Bergner-Str. 10 children’s sportswear
Tel.: +49 02 21 223 55 95 Price segment: D - 21509 Glinde
Fax: +49 02 21 223 55 99 Mid to upper level Tel.: +49(0)40 7270 241
www.galeria-kaufhof.de Number of outlets: 127 Fax: +49(0)40 7270 224
Callcenter Tel: Note: Belongs to Metro AG www.nickel-sportswear.com
+49 01805 17 25 17 office@nickel-sportswear.com
Callcenter Fax:
+49 01805 17 35 17 APRIORI Textilvertriebs Wholesaler of ladies wear
service@galeria-kaufhof.de GmbH Number of owned stores:
Harkortstr. 24 125
Strauss Innovation GmbH & Product range: D - 48163 Münster Belongs 100% to:
Co. KG Ladies’ and menswear Tel.: +49 (0)251 7135-0 PRIMERA GmbH & Co.
Raiffeisenstr. 15-18 Price segment:
D - 40764 Langenfeld Lower to mid level Fax: +49 (0)251 7135-837
Tel.: +49 - 2173 - 99 00 01 Number of outlets: 93 dialog@apriori-fashion.de
Fax +49 - 2173 - 99 23 90 www.apriori-fashion.de
fragenundantworten@
strauss-innovation.de ara Shoes AG Manufacturer of classic
gutesundschlechtes@ Zur Schlenkhecke 4 women and men shoes
strauss-innovation.de D – 40764 Langenfeld Over 500 shops worldwide,
www.strauss-innovation.de Tel.: +49 – 2173 105 0 in 2008 sold 7 mn. Shoes
Fax: +49 – 2173 105 108 in over 50 countries
Wal-Mart Germany GmbH & Product range: www.ara-moden.de (CMT business mainly)
Co. KG Ladies’, men’s, childrens- info@ara-shoes.de
Friedrich-Engels-Allee 28 wear and sportswear
D-42103 Wuppertal Price segment: Bay City Textilhandels & Importer for jeans, casual
Tel: +49 – 202 – 2829 – 0 Lower level (for clothing) Co.KG and active sportswear
Fax: +49 – 202 – 2829 – 1724 Number of outlets: 88 An‘n Slagboom 7
kontakt@wal-mart.com Postfach 3165 founded: 1975 and belongs
www.walmart.de D-22848 Norderstedt to Schmid Gruppe
Tel.: +49 (40) 534 13 300
Fax: +49 (40) 534 13 301 License Contract with
baycity@fashioncenter.net Unilever (Lable: Langnese)
www.fashioncenter.net/
baycity
www.bay-city.de
Outerwear 2010 l 49
Clothing manufacturers (importing)
and wholesalers / importers Mail order companies
50 l Outerwear 2010
Mail order companies
Neckermann Versand AG Product range: All kinds Jeans Palast Görgens Product range:
Hanauer Landstraße 360 of goods, ladies’, men’s, GmbH Jeans, young fashion
D - 60386 Frankfurt am Main childrenswear Schildergasse 55 Price segment:
Tel.: +49 – 180 55414 Price segment: D - 50667 Köln Mid to upper level
www.neckermann.de Mid market level Tel.: +49 221 – 257 86 49 Number of outlets: 53
service@neckermann.de Note: one of the larger Fax: +49 221 – 258 85 51
mail-order companies jeans-palast-koeln@goergens-
gruppe.de
Otto (GmbH & Co KG) Product range: Ladies’, http://filialnetz.guna.de/filial-
Wandsbeker Straße 3-7 men’s and hildrenswear netz/koeln/jeanspalast/
D - 22172 Hamburg and other goods
OTTO-Hotline: 0180 - 5 30 Price segment: Jeans Fritz Product range:
30Hotline: +49 (0) 180 530 30 Lower to mid level Handelsgesellschaft für Jeans, leisurewear
Tel.: +49 40 - 64 61 - 0 Note: Largest mail order Mode mbH Price segment: Mid level
Fax: +49 40 - 64 61 - 85 71OT- house in the orld selling Tengerner Straße 143 Number of outlets: 237
TO-Hotline: 0180 - 5 30 30 worldwide D - 32609 Hüllhorst
www.otto.de Tel.: +49 (0) 5744 512 – 0
service@otto.de Fax: +49 (0) 5744 512 – 111
www.jeans-fritz.de
Sport Scheck GmbH Product range: All kinds of
Sendlinger Str. 6 goods, women’s and New Yorker S.H.K Jeans Product range:
D - 80331 München children’ wear, sportswear GmbH Price segment: Mid level
Tel: +49 89 2166-0 Price segment: Hansestraße 48 Number of outlets: 298
Fax: +49 89 2166-1420 Mid to upper level D - 38112 Braunschweig
Tel. Kundenbetreuung: Tel.: +49 – 531 – 2135 – 0
Tel.: +49 – 180 55050* Fax: +49 – 531 – 2135 – 187
Fax: +49 – 180 55051* www.newyorker.de
www.sportscheck.com smattern@newyorker.de
filiale_muenchen@sport- (Produktanfragen & Expan-
scheck.com sion)
Outerwear 2010 l 51
Buying associations
52 l Outerwear 2010
4. Italy.
4.1 General economic situation. The problems in Italian fashion business are also due to its own
structure. Therefore many companies have begun or are planning
Italy’s current population is 60 million; the country has developed to embark on restructuring processes. Nonetheless, the Italian
to an economic level similar to that of countries such as Germany, clothing industry is one of the most competitive within Western
France or United Kingdom. Before 1945, Italy was quite rural and Europe and imports of outerwear encounter difficulties in finding
today the country is still characterised by an agricultural South suitable market access. The Italian clothing industry itself is highly
with an unemployment rate of 13.2% and a few big state-owned export oriented and plays an important role in the economic situa-
companies. On the other hand, the ‘rich’ North has a favourable tion of the whole country.
economic climate and many successful private companies.
500'000 workers directly depend on the Italian clothing industry.
In 2009 Italy faced a difficult period with a GDP real growth rate Italy is a leading country for clothing (and textiles) worldwide.
of -4.5%. The economy was in a sharp recession, mainly because Clothing exports are double the imports. Italian consumers are
of external developments linked to the global financial crisis, and very much brand oriented, but also are looking for items which
there was great uncertainty about the strength and timing of the offer value for money. In recent years, the consumers have also
recovery. Italian exports plummeted 26% in 2008, the largest drop become more price oriented and are known for their high de-
since records began in 1991. Despite a relatively healthy banking mands regarding quality. Because of the high specialisation of the
system Italy seems particularly sensitive to both the credit tighten- Italian producers and their offer of very sophisticated collections,
ing which has occurred in line with that in other countries and the manufacturers from abroad should avoid copying Italian outerwear.
weakness in external demand. This sensitivity has probably been
accentuated both by the poor productivity and aggregate profit- Cheaper and lighter clothing is more often sold in the South of
ability performance of the economy over the past decade or more, Italy, where the climate is warmer and there is less income per
and by the weak underlying fiscal situation. An array of budget capita. There is more expenditure on clothing in the richer North
neutral measures have been taken in the short term, but economic than in the South, although more people live in the South of Italy.
performance must be enhanced over the longer term by both mac-
roeconomic and structural policy reforms. 4.2.3 Demographic characteristics
Italy is known as a family loving country where children and moth-
ers play an important role in society. Less known is the fact that
4.2 The market for outerwear. the formerly high birth rates in Italy have dramatically dropped
since the beginning of records in 1952 from 2.33 living birth per
4.2.1 Market size women to 1.41 in 2008. The lowest birth-rate was recorded in
Italy is the third largest clothing market in Europe, behind Germany 1995 with 1.18 living birth per women. Since then, birth-rate went
and the UK, and therefore plays a major role in the European constantly up again. The Italian population grew constantly from
fashion business. The market size for outerwear stands at € 40.9 1952 to 2009 with a CAGR of 0.4% per year.
billion.
The most numerous group in the population are the 35 – 39 and
4.2.2 Market characteristics 40 - 44 age groups, with a total of about 5 million inhabitants.
The Italian clothing market has traditionally been mainly supplied Compared to this age group, there is nearly half of that number in
by a strong national apparel industry, comprised primarily of family the lowest age group, that is, the newborn – 4 year old segment
owned production companies. These small to medium size com- (2.5 million persons). Figure 4 shows further details.
panies are flexible and often highly specialised in specific prod-
ucts. They are able to react quickly to market needs. The strong
community within these companies allows the Italian companies to
produce higher quality goods and to be more effective. About 90%
of the small firms are geographically concentrated and often build
so-called ‘conzorzii’, e.g. for export group marketing activities.
Outerwear 2010 l 53
The consequence of the low birth-rate is not only that less chil- Another possible consequence is that parents often cannot find
dren's wear is sold, but major changes are required on the produc- a successor for their clothing business. Since these small family
tion side. Since clothing production in Italy has a tradition of small companies are flexible, highly service oriented and dominating
family owned companies, there are negative effects due to smaller the independent shops, the whole clothing distribution in Italy is
family sizes. The owners are no longer able to run the company affected.
with fewer family members.
10 0 +
95-99
male 90-94 female
85-90
80-85
7 5 -7 9
7 0 -74
65-69
60-64
55-59
50-54
45-49
40-44
35-39
30-34
25-29
2 0 - 24
15 -19
10 -14
5-9
0-4
2,5 2,0 1,5 1,0 0,5 0,0 0,0 0,5 1,0 1,5 2,0 2,5
Population in millions
4.2.4 Retail sales by product category Table 36: Share of outerwear by gender, 2004 and 2008
The shares of the different apparel segments (styles) of formal
Women Men Children
and casual clothing, leisurewear and active sportswear in Italy are
similarly structured to the more traditional oriented British clothing 2004 2008 2004 2008 2004 2008
market. Table 36 shows the dominant role in sales of formal Formal 40% 38% 41% 40% 17% 16%
clothing: 40% of men's wear sold in Italy is formal wear as is 38% Casual 35% 37% 33% 34% 70% 71%
of women's wear. Compared to other European countries, the Leisure 19% 18% 19% 18% n.a. n.a.
share of formal wear is very high. Active 6% 7% 7% 8% 13% 13%
sports
Casual wear has a market share of 34% for men's wear and 37% Total 100% 100% 100% 100% 100% 100%
for women's wear and is a preferred product category of the Italian
consumer, as in all other Western European countries. However,
casual wear as the Italians understand it has a very sophisticated Source: Analysis based on Eurostat and Euromonitor
touch with high quality fabrics and basic but elegant designs in
comparison to the Northern European markets.
54 l Outerwear 2010
4.2.5 Consumer behaviour 4.2.5.2 Consumer expenditure
4.2.5.1 Consumer preferences Italy, in terms of consumption volume of clothing, belongs to the
Table 37 shows the development of the preferred types of retail top four countries within Europe together with France, the UK and
channels for clothing from 2004 to 2008. The table indicates that Germany. The consumption of clothing will, according to most
Italian consumers mainly prefer to buy clothing in independent recent estimates, account for € 44 billion in 2009. Over the last
shops. This retail sector still accounts for half of the total Italian few years, spending on clothing in Italy was fluctuating around €
clothing retail market. The main reasons why Italian consumers 46 billion. As mentioned at the beginning of the Italian chapter, the
prefer independent retailers is that these shops are somehow economy was badly hit by the financial crisis. This is also reflected
‘closer to the consumer’. Furthermore, these boutique-like shops in the drop by -5.3% in total clothing consumption from 2008 to
offer personal contact and mores service. The formerly very strong 2009. More details may be found in table 38.
market position of independent retailers has been weakened, but
is still clearly dominating the buying decisions of the consumers. It is notable that Italian women do not buy that much more clothing
The high share of clothing consumption through independent than men. In other European countries like UK or Switzerland,
shops expresses the desire for service and quality. A graphic women’s expenditure for clothing is nearly double that of men.
illustration of the 2008 situation is given in chapter 4.4.3.1 ‘Retailers’. In Italy, women only spend around 50-55% more on clothing
compared to men. This means that in Italy the market segment for
Generally speaking, the Italian consumer is extremely quality and men's wear is more important than in the other countries analysed
fashion conscious, but very hesitant and looks only for products in this survey
which he or she is really convinced of.
Table 38: Consumption of clothing in Italy
The fact, that Italians are more and more price oriented as
2004 2006 2008 2009*
consumers can be derived from the increasing role of hyper- and
Total clothing [€ billion] 45.3 45.7 46.5 44
supermarkets in the Italian retail market, where men’s and chil-
Change [%] - 0.9% 1.8% -5.4%
dren's wear in particular is bought. At the same time, consumers
have a high brand awareness. This is particularly evident in the Source: CBI – Note:*forecast
segment of children’s clothing. Many children love to have clothing
with pictures of current trends for kids on it. As table 39 indicates, the total expenditures in the North and in the
South of Italy are different. The disposable income in the North is
Table 37: Clothing retail channels by market share [%] much higher than in the South. The Italian Statistical Office (ISTAT)
indicates an average household expenditure in 2006 of € 2'860 for
2004 2006 2008
the North and only € 2'010 for the South of Italy.
Specialists 69 68 67
Independent retailers 51 49 48
It is not possible to make a distinction between clothing and
Clothing multiples 18 19 19 footwear consumption on the basis of ISTAT figures. The figures
Non-specialists 31 32 33 indicate that the consumption of clothing/footwear in 2006 in Italy
Department/variety stores 10 10 10 accounts for 6.4% of total household consumption (Basis: middle
Home shopping companies 0 1 1 income household).
Outerwear 2010 l 55
Although expenditure in the South in total is lower - due to less North and Central part of Italy, where the import and distribution
disposable income - the share of expenditure for clothing (and structures are much better developed. Nevertheless, the South,
footwear) is at 7.7% and higher than the Italian average. Generally due to lower income, has a higher demand for ‘basic clothing
speaking, the more attractive areas for clothing sales are in the items’ (e.g. cotton products like cotton casual shirts and trousers,
T-shirts, knitwear).
Table 39: Comparison of household expenditure on selected categories by region, 2002 - 2006
56 l Outerwear 2010
4.2.6 Price developments of clothing 4.3 Imports.
Table 40 indicates the clothing (and footwear) price index com-
pared with the general consumer price index in Italy from 2003 to 4.3.1 Total imports
2006. Total Italian imports of outerwear in 2008 amounted to € 9.8 billion.
The CAGR was 1% from 2006 to 2008. Like elsewhere in Europe,
The clothing price index CAGR from 2003 to 2006 was with 1.7% extra EU imports increased in the same period with a higher pace.
smaller than the CAGR of the general consumer price index with In the case of Italy extra EU imports grew with a CAGR of 1.7%
2.1%. from 2006 to 2008, amounting to an end value of € 6 billion. This
shows that developing and emerging countries also are increasing
Table 40: Comparison of household expenditure on selected their market share of outerwear clothing in Italy.
categories by region, 2002 - 2006
In addition, imports of the different outerwear segments covered by
2003 2004 2005 2006
this study showed a strong upswing from 2004 to 2008. Specially
General consumer the import increase by 36% of knitted women's outerwear (table
price index 122 124.7 127.1 129.8 41) is remarkable.
Clothing and footwear
price index 124.4 127.2 129.2 130.9 In the same period, the imports of men’s and boys outerwear only
Source: Analysis based on ISTAT – Note: 1995 = 100.0 grew by 25% in value terms. Category 61.03 (suits, jackets, outfits,
trousers, shorts etc.) only grew by 0.6%, this may be the result of a
very strong national menswear industry which is able to success-
fully compete against foreign producers.
Table 42 shows the import figures of woven outerwear into Italy Total woven outerwear imports decreased by 2% to € 5.2 billion
from 2006 to 2008. An interesting fact is that imports of woven from 2006 to 2008. In the same period the share of extra EU
men's wear dropped by -5.2% from 2006 to 2008. Total women's imports increased by 5.7% to 63%. This corresponds to a value of
woven outerwear imports grew by 1.4% in the same time period. € 3.3 billion.
The Extra EU import share grew in both cases by 4.6% and 8.8%
respectively.
58 l Outerwear 2010
Table 42: Imports of woven outerwear by gender and product categories, 2006-2008
Outerwear 2010 l 59
4.3.2 Outward Processing Trade (OPT) For Italy, the proportion of OPT imports compared to ‘normal’
According to table 43, the main two import countries for OPT busi- imports of outerwear (f.o.b. business) is low. The implication for
ness with Italy are Albania, with imports of € 35.7 million in 2008, clothing manufacturers mainly based in Eastern European coun-
and Tunisia, with imports valuing € 28.8 million. At present, the tries is that there is a great deal of potential for more OPT busi-
countries with the highest growth rates in the outward processing ness in the Italian market due to the national industry’s struggle
trade are Hong Kong (+155%), Armenia (+126%), Switzerland with increasing costs for labour, energy, raw materials etc.
(+63%) and Ukraine (+61%).
The total OPT business into Italy from non EU countries has been
slightly shrinking year after year: -1.8% in 2006 and -1.6% in 2008
Position Country 2006 [‘000 €] Change 2007 [‘000 €] Change 2008 [‘000 €]
from 2006 from 2007
1 Albania 19’042 103% 38’650 -8% 35’682
2 Tunisia 22’442 11% 24’960 15% 28’769
3 China 8’221 171% 22’319 -19% 18’001
4 Croatia 10’441 107% 21’649 -24% 16’387
5 Moldova 9’358 68% 15’755 -1% 15’615
6 Ukraine 7’575 0% 7’547 61% 12’147
7 Morocco 1’043 557% 6’850 -13% 5’976
8 Serbia 984 379% 4’717 -11% 4’198
9 Switzerland 0 - 2’501 63% 4’079
10 Macedonia 1’666 94% 3’229 6% 3’427
11 Hong Kong 588 83% 1’073 155% 2’736
12 Egypt 41 4733% 1’968 8% 2’119
13 Bosnia-Herz. 243 566% 1’616 18% 1’912
14 Mauritius 74 1457% 1’155 56% 1’797
15 Montenegro 760 53% 1’163 -53% 546
16 Macao 0 - 351 52% 534
17 Armenia 0 - 143 126% 322
18 Vietnam 806 4% 841 -69% 257
19 Israel 0 - 0 - 201
20 Sri Lanka 762 -59% 316 -43% 180
Total 168’360 -6% 158’631 -2% 155’541
Source: Eurostat 2009
60 l Outerwear 2010
4.3.3 Largest suppliers of outerwear The three biggest suppliers are China, Tunisia and Turkey. These
Looking at the major clothing supplying countries to Italy, table three countries account for more than two thirds of the import sha-
44 gives a very good survey on the ‘top 20’ extra EU suppliers. re. Tunisia is also a strong OPT country for Italy, ranking on 2nd
Among the emerging and developing countries is China, with high place in the above shown table.
year to year growth rate imports of € 2.7 billion in 2008. This figure
represents almost 45% of the total imports of outerwear into Italy.
A similar picture can be drawn for Tunisia (€ 0.8 billion) and Turkey
(€ 0.5 billion) which have considerable growth rates, too.
Position Country 2006 [‘000 €] Change 2007 [‘000 €] Change 2008 [‘000 €]
from 2006 from 2007
1 China 2’274’671 7% 2’434’448 10% 2’672’062
2 Tunisia 718’142 9% 781’795 5% 818’742
3 Turkey 474’623 12% 530’804 2% 539’329
4 Bangladesh 333’929 -10% 301’923 18% 355’189
5 India 339’217 -10% 305’470 -10% 275’318
6 Croatia 169’421 -11% 151’551 5% 159’431
7 Morocco 99’119 40% 139’136 1% 140’423
8 Albania 90’461 5% 94’981 8% 103’042
9 Switzerland 79’284 9% 86’119 9% 94’021
10 Sri Lanka 50’128 30% 64’977 25% 81’487
11 Vietnam 58’959 17% 69’198 11% 76’803
12 Moldova 62’696 15% 71’836 -3% 69’527
13 Indonesia 95’186 -33% 63’707 -2% 62’424
14 Pakistan 67’418 -3% 65’559 -17% 54’596
15 Egypt 44’712 8% 48’458 8% 52’122
16 Thailand 48’457 -4% 46’628 -7% 43’354
17 Hong Kong 164’314 -43% 93’411 -55% 41’708
18 USA 41’510 -9% 37’829 10% 41’671
19 Serbia 37’930 -2% 37’219 -17% 30’974
20 Mauritius 39’619 -4% 37’883 -25% 28’427
Extra-EU 27 5’605’889 2% 5’722’862 5% 6’002’287
Intra-EU 27 3’838’826 3% 3’950’287 -3% 3’820’079
Total 9’444’715 2% 9’673’149 2% 9’822’366
Source: Eurostat 2009
Outerwear 2010 l 61
Intra EU imports into Italy remained constant over the period 2006
to 2008. This imports accounts for 39% of the total outerwear
clothing imports to Italy. Only Romania, which in ranking on the
1st place and Hungary (ranking 10th) had constantly decreasing
values over the period from 2006 to 2008.
Position Country 2006 [‘000 €] Change from 2007 [‘000 €] Change from 2008 [‘000 €]
2006 2007
1 Romania 1’031’866 -16% 865’063 -5% 825’811
2 France 656’167 11% 725’300 -5% 692’522
3 Spain 260’587 28% 333’812 18% 395’027
4 Belgium 306’036 11% 338’639 12% 379’088
5 Germany 304’743 9% 331’168 -9% 301’442
6 Bulgaria 221’171 2% 225’221 2% 229’919
7 UK 165’151 18% 194’700 13% 220’946
8 Netherlands 147’755 22% 180’373 1% 182’025
9 Portugal 125’380 14% 143’076 -14% 123’179
10 Hungary 258’008 -12% 226’398 -54% 105’074
Intra-EU 27 3’838’826 3% 3950287 -3% 3’820’079
Extra-EU 27 5’605’889 2% 5’722’862 5% 6’002’287
Total 9’444’715 2% 9’673’149 2% 9’822’366
Source: Eurostat 200
4.4 Trade structure. and collections have lost market share. The multiple shops of Itali-
an clothing companies have tried to answer by ‘going public’, joint
4.4.1 Developments in retail trade ventures and mergers, with partial success. With the money ear-
The independent retailers, which are mainly run as family busi- ned from giving out stocks, some Italian multiples have financed
nesses, still have a strong market position. As stated previously, their expansion plans to buy other companies and brands, enlarge
the role of the independent shops in Italy has diminished and their production facilities or extend their distribution network.
many shops have had to close down because the owners could
not find a successor for their business. As shown in chapter 4.3, imports grew constantly and in particular
low priced products were imported and sold in Italian super- and
Furthermore, a tremendous competition has arisen in the clothing hypermarkets. In addition, formerly middle priced and high priced
market from clothing multiples and supermarkets that have items are influenced by increasing imports.
discovered that selling clothing is a profitable business. As in
other South European countries, in Italy the domestic production The Italian clothing association ‘Sistema Moda Italia’ states that
and distribution of clothing is closely linked. Many Italian clothing the multiples in Italy cope better with the new challenges of cheap
brands like Benetton, Marzotto Group etc. have built up their own mass imports than many small companies. The developments
retail system, often based on franchise partnerships all over the in clothing retail are very much in favour of multiples like Sasch,
country. In Europe, however as in Italy itself, Italian clothing brands Benetton, Gas etc. that are able to optimise stock keeping and act
62 l Outerwear 2010
efficiently in the market. The small companies however have less 4.4.2 Leading retailers
financial possibilities to follow the technical trends in research and The largest clothing retailer is the well known Benetton Group
development and to establish their own distribution system. which has 6'200 shops all over the world. The turnover was €
2.1 billion in 2008. Benetton is both manufacturer and retailer
Since the variety stores also import and take advantage of chea- and carries the brands United Colors of Benetton (UCB Kids and
per clothing from outside the country, this segment could have pro- UCB Adults), Sisley, Playlife, and other brands for sportswear and
fited in terms of gaining market share. However, the market impor- sports equipment. The group’s strategy is to increase floor-space
tance is not as much as was forecast years before. Variety shops and to transform its shops into mega stores. The large shops are
have to fight against discounters or super- and hypermarkets not managed directly by Benetton (no franchising) and are located in
to lose their customers searching for mid-priced and middle quality historical town centres and main shopping centres. The new Be-
items. Unlike previous years, these super- and hypermarkets netton ‘Megastores’ sell casual wear and underwear and accesso-
nowadays offer good quality and very reasonable prices. ries for women, men and children.
Instead of only selling clothing, advanced managed Italian retailers Max Mara is an Italian fashion giant with a continuously growing
(mainly multiples and department stores) also often offer cos- turnover, about € 1.7 billion, with more than 2'254 shops in over
metics, bags, shoes, accessories and sometimes even stylish 100 countries. Max Mara operates 17 companies in the markets
household articles. There is a trend that retailers in Italy put and owns more than 35 labels. The brand produces and distributes
emphasis on a ‘lifestyle ambience’ in the outlets and appropriate women's wear, mainly coats and suits.
surroundings like cafeteria or special places for children. The aim
is to keep the customers in the shops as long as possible to moti- Stefanel has 691 mono brand stores of which 264 are directly
vate them to finally buy something. operated stores. In the mega stores of Stefanel, brands other
than Stefanel are also offered. The whole company has a turnover
E-commerce and internet sales in Italy have fewer opportunities based on retail and production activities of € 275 million a year.
than in other European countries. Only very low growth rates of Stefanel owns four production sites in Italy and one in Germany.
clothing sales through this distribution channel can be predicted,
because the logistically similar structured mail-order business is The Coin Group is one of the leading European retailers for
very small as well. The Italian Post is not efficient and too slow clothing, accessories, and household goods with a turnover of €
and it is a real burden to run a proper mail-order or e-commerce 1.2 billion in 2009. The retail chains Oviesse and Coin belong to
business. Furthermore, Italian consumers like to touch the fabric the Coin Holding and are subsidiary companies for different mar-
and trying on the clothing. Italian consumers, having ordered via ket segments. Throughout Italy there are 299 shops and 19 are
internet or mail-order, are generally not prepared to wait for the located in other countries. The Coin clothing range is produced by
items bought for more than one week. Manifatture di Fara SPA and Sirema Srl.
A phenomenon in Italy are the so called street markets with a LA RINASCENTE is the leading department store in Italy with a
share of approximately 10%. North-Africans and increasingly Chi- good reputation offering a wide product range including a wide va-
nese dealers offer cheap (branded) and very fashionable clothing riety in clothing. In 2008, the turnover of La Rinascente was € 420
with minor faults at a reasonable quality. Obviously, some of the million. La Rinascente aims to be the most elegant department
products are counterfeited. 8 out of 10 Italian consumers admit to store. Like other retailers that pursue a quality strategy, the stores
buy from these mainly illegal market dealers. Most of the goods are attractively decorated for national and international customers.
are smuggled from China, Morocco or elsewhere. La Rinascente department stores are located in characteristic
places in the city centres of the major Italian cities. La Rinascente
Based on developments in the European clothing market, changes sold its subsidiary company UPIM (€ 430 million turnover in 2009)
will also occur in the Italian retail sector. to the Gruppo Coin.
Outerwear 2010 l 63
4.4.3 Distribution channels Germany or The Netherlands. The Italian clothing multiples only
4.4.3.1 Retailers buy a few items to complete their product range. However, if they
Table 46 gives an overview on the structure of the Italian clothing import clothing, then they buy directly and concentrate on basic
retail market from 2004 to 2008. The numbers indicate that inde- items.
pendent retailers account for 48% of clothing retail and therefore
represent nearly half of the market. As opposed to other European Market share: 19% in 2008, Trend: Slightly increasing
countries, where multiples have the largest share, in Italy only
19% of the clothing is sold through these clothing chains. Hyper- 4.4.3.1.3 Department/variety stores
and supermarkets represent 10% and department stores account There are two big department stores in Italy: La Rinascente and
for 10% of the clothing retail distribution in Italy. Gruppo Coin. The department stores in Italy have an amazingly
large range of products to offer. For example, Coin offers women's
Table 46: Clothing retail channels by market share [%] clothing from outerwear, underwear, night and swimwear to jeans
and sportswear. Beauty, fitness and shoes also have a major sha-
2004 2006 2008
re in the range of products offered in the Coin stores.
Specialists 69 68 67
Independent retailers 51 49 48
Market share: 10% in 2008, Trend: Slightly Increasing
Clothing multiples 18 19 19
Non-specialists 31 32 33
4.4.3.1.4 Mail-order houses
Department/variety stores 10 10 10
Over the last years the Italian postal service has made some
Home shopping companies 0 1 1 improvements. But still the mail-order business is little developed
Hyper- and supermarkets 9 10 10 and has no real tradition as in other European countries. The lea-
Sports stores 4 4 5 ding mail-order company is ‘Postalmarket’. Although the German
Other 8 7 7 mail-order company Otto gained market importance, the mail-
Total 100 100 100 order market share has decreased to 1% and does not show any
Source: CBI significant signs of change.
64 l Outerwear 2010
4.4.3.1.6 Sport stores 4.4.3.2.3 Importers and wholesalers
Sport stores in Italy only offer a limited range of clothing products Italian importers operate nationwide and mainly ask for the ‘exclu-
specialised to fit to numerous sporting disciplines. sive distribution rights’ for the whole of Italy. Importers/wholesalers
in the classical sense tend to be few in Italy, because of the high
Market share: 5% in 2008, Trend: Slightly increasing competition within the distribution system and the strong position
of the clothing brands with their own efficient outlets. The importers
4.4.3.1.7 Others can often only position themselves by a ‘low price strategy’, e.g.
Open (street) markets and consumer fairs are often supplied by by sourcing basic fashion items in emerging and developing
specialised wholesalers that import directly from emerging and de- countries. The role of Italian importers is getting less important,
veloping countries. Markets and fairs traditionally play an important because dealing and importing of clothing (being a fashion item
role in Italy. However, the wholesalers involved in this fair and open with its up and downs in sales) is increasingly seen as a risk. Nati-
market business also buy good quality fashion products that are onal manufacturers try to avoid collaboration with Italian importers
sold at these fairs as well. Since the traders exhibiting on those because they have the image of being too expensive. Similar
open markets have to react quickly to market trends, they also buy advantages and disadvantages may occur when dealing with Italian
selected clothing items from domestic manufacturers. wholesalers. Wholesalers in Italy normally act only within their
region to be more flexible for local markets and fairs. The Italian
Market share: 7% in 2008, Trend: Slightly decreasing wholesalers mainly buy from local producers. Italian wholesalers
also tend be very spontaneous in their choice with a strong ten-
4.4.3.2 Sales intermediaries dency not to bind themselves in long-term business partnerships.
4.4.3.2.1 Clothing manufacturers
Clothing manufacturers in Italy often run their own shops to be
independent from retailers. Manufacturers only buy a small share
of their collection from foreign manufacturers, mainly in order to
complete the existing product range. Large scale clothing manuf-
acturers in Italy are e.g. Benetton, Sixty, Replay, Diesel, Gas, Ste-
fanel, Max Mara, Prenatal, Marzotto or Chicco. The small clothing
companies are concentrated in so-called ‘conzorzii’ in Biella/Pié-
mont region (woollen products, coats, jackets, suits), Como-Lecco/
Lombardie (silk, woollen products, coats, jackets, suits), Emilia
Romagna (all kind of textiles), Tuscany (woollen products, coats,
jackets, suits).
4.4.3.2.2 Sales agents
As the retailers are scattered all over Italy and difficult to reach
from overseas markets, collaboration with an agent is common in
Italy and generally recommended for better market penetration.
Most of the agents are concentrated in the North of Italy and ope-
rate with sub-agents in central and southern Italy. The commission
for an agent covering the whole of Italy is about 10%-15%. Inde-
pendent regional sales agents take between 5% and 10%.
Outerwear 2010 l 65
4.5 Italian fashion trade fairs.
The Italian market for fashion fairs is quite clearly structured ac-
cording to their main product segments. The main cities for fashion
fairs with European recognition are Milan and Florence. Italian
fashion fairs like the ‘International Menswear Fair ‘Pitti Uomo’ still
has an international excellent reputation and in fact buyers from
all over the world tend to visit these international fashion events.
The exhibitors at Moda Prima in Milan are manufacturers of ready
to wear clothing from Italy and from countries like France, Spain,
UK and Germany, Eastern Europe and Asia. The trade show aims
to address major Italian retailers like department stores, chains
and mail-order companies, but also wholesalers, importers and
trading companies. The fair also gives space to manufacturers of
non-exclusive clothing. Only one out of four sections is reserved for
Italian manufacturers. Moda Prima seems to be the most suitable
clothing fair for manufacturers from developing and emerging
markets wishing to increase their sales to Italy. The most impor-
tant fashion fair for women's wear is the Milano Moda Donna in
February and September each year. The main fashion fair for
men's wear is the Pitti Uomo which is quite small but of absolutely
international importance with many buyers from overseas. The
table of the specialised clothing fairs below only includes events
with an international approach.
66 l Outerwear 2010
4.6 List of major buyers in Italy.
Clothing chain stores
Arimo S.r.l. Product range: underwear, Modifin SpA Product range: Men’s and
Via Libertà 52 swim- and beachwear Via Manzoni, 38 womenswear
I-20029 Turbigo (Mi) Price segment: mid level I - 20121 Milano Price segment: high level
Tel.: +39 0331 890814 Number of outlets: 126 Tel.: +39 (0) – 2 7609 3558 Number of outlets: 20
Fax: +39 0331 898079 Fax: +39 (0) – 2 7609 3550 Note: Manufacturer and
info@arimo.it retailer
www.arimo.it
Mango (head office in Spain) Product range:
Arteni Spa Product range: ladies’, Mercaders 9-11 Womenswear
Via Nazionale, 133-141 men’s, childrenswear, P.I. Riera de Caldes Price segment: mid level
I - 33010 Tavagnacco (UD) sportswear Apartado de Correos 280 Number of outlets: 11
Tel.: +39 (0) – 432 661288 Price segment: mid level ES-08184 Palau-solità i Ple-
Fax: +39 (0) – 432 660624 Number of outlets: 14 gamans
info@arteni.it (Barcelona) Spain
www.arteni.it Tel.: +34 93 860 24 24
Fax: +34 93 860 22 07
Bernardi SpA Product range: ladies’, www.mango.es
Via dell’ industria 1 menswear
I - 33050 Ronchis (Ud) Price segment: lower level
Tel.: +39 (0) – 431 568111 Number of outlets: 150
Fax: +39 (0) – 431 567066 Nico Garda SpA Product range:
info@bernardi.it Via S. Zeno, 67 all kinds of clothing
www.bernardi.it I - 36022 Cassola (VI) Price segment: low
Tel.: +39 (0) – 424 570630 Number of outlets:
Fax: +39 (0) – 424 570703 11 Italy, 12 EU, 3 US
Jeune Srl Product range: womens-
www.nico.it Note: app. 100 employees
123/125, V. del Casale San- wear, young fashion
www.grupponico.com
tarelli Price segment: mid to
I - 00040 Roma (RM) higher level
Tel.: +39 (0) – 6 7984 5219 Number of outlets: 9
Fax: +39 (0) – 6 7984 5931
jeune@jeune.it Zara (Head office in Spain) Product range:
www.jeune.it Via Morimondo, 26 Ladies, men’s,
I - 20143 Milano childrenswear
La Cicogna srl Product range: childrens- Tel.: +39 (0) – 2818 00 81 Price segment: mid level
Piazzale Biancamano 1 wear Fax: +39 (0) – 2891 52 424 Number of outlets:
I - 20154 Milano Price segment: mid level www.zara.com 67 in Italy
Tel.: +39 (0) – 233 605725 Number of outlets: 10
Fax: +39 (0) – 233 605725
Outerwear 2010 l 67
Jeans- sportswear and young fashion
Sport’85 srl Product range: l Vecchio Continente Srl Product range: men’s,
V. Piave, km 68.600 ladies’, men’s wear Corso Alfieri 293 ladies’ and childrenswear
I - 04100 Latina (LT) Product range: I - 14100 Asti (AT) Price segment: lower level
Tel.: +39 (0) – 773 48 6456 jeans and casualwear Tel.: +39 (0) – 141 31336 Number of outlets: 10
Fax: +39 (0) – 773 60 624 Price segment: lower level Fax: +39 (0) – 141 35 889
www.sport85.it Number of outlets: 24
Rinascente UPIM Spa Product range: men’s,
Teddy SpA Product range: 15, C. Ventidue Marzo ladies’ and childrenswear
Via Coriano, 58 – Grosrimini womenswear I - 20129 Milano (MI) Price segment:
BL.97 Price segment: Tel.: +39 (0) – 2 5990 2457 lower to mid level
I - 47900 Rimini (RN) mid to upper level Fax: +39 (0) – 2 5990 23 29 Number of outlets:
Tel.: +39 (0) – 541 301411 Number of outlets: www.upim.it 147 stores
Fax: +39 (0) – 541 383430 370 worldwide + 230 franchise partners
info@teddy.it Note:
www.teddy.it belongs to La Rinascente
68 l Outerwear 2010
Mail order companies
Manufacturers / importers and wholesalers / importers Forall Confezioni Spa Product: Menswear
V. F. Filzi, 34 Manufacturer + wholesaler
G. Armani Spa Product range: children’s, I - 36050 Quinto Vicentino (VI)
Via Borgonuovo 11 babies’ Tel.: +39 (0) – 444 35 6096
I - 20121 Milano Fax: +39 (0) – 444 35 7064
Tel.: +39 (0) – 2 723181 www.sartoriale.it
Fax: +39 (0) – 2 8054102 www.palzileri.it
www.giorgioarmani.com
Outerwear 2010 l 69
Manufacturers / importers and wholesalers / importers Buying associations
Miniconf srl
52010 Ortignano Raggiolo
(AR)
T: + 39 0575 5331
info@miniconf.it
www.miniconf.it
Marzotto S.p.A.
Via Turati 16/18
I - 20121 Milano
marzotto@marzotto.it
www.marzotto.it
70 l Outerwear 2010
5. Spain.
5.1 General economic situation. The housing bubble was fed by a chain of finance based on the
sale of bonds. This was swept away by the credit crunch. At its
When Spain acceded to EU membership in 1986, its people were peak the Spanish current account deficit was nominally the world’s
among the most enthusiastic of Europeans. The country has done second highest, behind only the United States. This was in spite of
well from its membership by investing in roads, railways and modern the fact that Spain has a population of only 45 million.
infrastructure. But now the gilt is wearing off; there are more
eurosceptics and less interest in decisions made in Brussels or the
men and women who are supposed to represent them in the Euro- 5.2 The market for outerwear.
pean Parliament. Strasbourg is a long way from the Cortes (parlia-
ment) in Madrid and Spanish political parties are less interested in 5.2.1 Market size
European issues than in their approval rating at home. Unlike in other Western and Northern European countries, the
textile and clothing industry is an important industrial sector in the
Unemployment in 2009 reached 18.8%, the highest in Europe, and Spanish economy with 215'000 direct employed persons and 4%
there are predictions that it could reach 20 per cent before things contribution to the GDP.
improve.
Spain is a major world producer of textiles and apparel and the
A report from the Organisation for Economic Cooperation and country’s economy relies heavily on this sector. The Asian crisis
Development (OECD) has painted a bleak picture predicting and the low growth of other world markets caused a strong ent-
economic contraction of 4.2% in 2009, considerably worse than rance of foreign textile products into European markets including
the 3 % prediction of the Bank of Spain. Spain, creating fierce competition, especially after the MFA
expired at beginning of 2005.
The speed of the recession has been striking. In 2007 Spain was
running a record public sector budget surplus of 2.2% of GDP, but Since the introduction of the Euro in 2002, Spaniards have follo-
in 2009 it will have a deficit of nearly 10%. Within the Euro-zone, wed the European trend of spending less.
only Ireland’s public spending deficit has risen faster. The gover-
nor of the Bank of Spain has warned that government debt could Spain ranks fourth among the EU after Italy, France and Germany
exceed 60% of GDP in 2010, up from less than 40% at the end of but has a stronger textile production base than e.g. UK.
last year.
The Consejo Intertextil Espanol reports that the total production
Further evidence of the economic crisis can be seen in recent in 2008 for men’s, women’s and children’s outerwear amounted to
figures on house sales, which fell a record 47.6% in April 2009 approx. € 10.4 billion the same amount of 2007. During the same
compared to the same month in 2008. House sales have been time period imports have decreased by -0.7%, but projections
falling for 16 months, but this was the sharpest year-on-year show that imports will again rise by an average of 10% per year.
decline to date. The National Confederation of Construction has
estimated that around 600'000 homes around Spain remain unsold
and a decline in the construction sector of 12.8% in 2009 hit the
construction sector.
Outerwear 2010 l 71
Table 48: Evolution of the Spanish textile and clothing sector [€ million]
72 l Outerwear 2010
Figure 5: Age structure of Spanish population by gender, 2008
95-99
male 90-94 female
85-90
80-85
7 5 -7 9
7 0 -74
65-69
60-64
55-59
50-54
45-49
40-44
35-39
30-34
25-29
2 0 - 24
15 -19
10 -14
5-9
0-4
2,0 1,5 1,0 0,5 0,0 0,0 0,5 1,0 1,5 2,0
Population in millions
5.2.4 Retail sales by product category and gender Table 49: Market share of outerwear by product category and
The Spanish clothing market can be divided into four major pro- gender, 2003 and 2007 [%]
duct groups: formal, casual, leisure and active sportswear.
Women Men
2003 2007 2003 2007
Spanish women wear often feminine and stylish clothes, but are
critical about comfort and quality. They also have higher prefe- Formal 27 25 25 22
rences for national brands and make their purchasing decision Casual 48 49 41 42
based on comfort, quality and design. Leisure 18 18 24 25
Active sports 7 8 10 11
Spanish men aged over 40 are classic dressers and reserve the
Total 100 100 100 100
greatest part of their annual clothing budget for a smart suit, while
younger men in Spain are more fashion-conscious and spent more Source: Euromonitor, Eurostat
on clothing in the last few years than before. Men over 40 are still
classically dressed and often wear a suit.
Spanish people prefer casual clothing for their daily life, largely
supported by young people. The increasing demand for jeans
and other cotton trousers, knitted products like T-shirts, sweaters,
jumpers, pullovers etc. and sportswear illustrates the popularity of
casual/leisure wear.
Outerwear 2010 l 73
5.2.5 Consumer behaviour women, the pattern is slimmer in Spain (e.g. a Swiss/German size
5.2.5.1 Consumer preferences 38 is size 40 to 42 in Spain). Also trousers with ‘extra length’ (like
Women and label-conscious urban young people tend to be the 36 and 38 are rarely in demand).
major target group in the Spanish apparel sector. Consumers in
Spain attach a great deal of importance to fashion and are begin- 5.2.5.2 Consumer expenditure
ning to care more and more about what they wear, giving special Consumer spending on clothing in Spain is below average levels
awareness to brand names. Interviews and trend research in Spain in other European countries. Average spending on clothing in 2009
have proved that professional women have a general preference amounts to € 492 per capita, which is clearly below Italy’s rate of €
for wearing natural materials, dark colours, comfortable styles and 733. It also decreased in comparison to Spanish total consumption.
classic designs. In contrast, in the North of Spain, light colours are
trendier. Six out of ten Spanish women regard quality as the main It is obvious that expenditure on clothing depends to some extent
aspect in their buying decision while 30% feel that design is the on the geographical zones. Firstly, the reason for these diffe-
most important criterion. Surprisingly, price is the most important rences is the social life, the income and the prestige, which play
decision factor for only 10% of women, in contrast to attitudes in an important role in the North of the country. Secondly, the climate
Northern EU countries and Switzerland. influences expenditure on clothing, e.g. in the colder North, the
relatively more expensive outerwear items like coats, jackets etc.
Spanish clothing consumers can be briefly characterized by the increase the per capita consumption in value terms. The ‘economic
following statements: centres’ are the regions with the highest readiness to spend money
for clothing like Cantabria, Navarra, Rioja and Ceuta/Melilla.
• The Spanish consumers do not have a tendency to prefer the
same shop; instead, they look for diversity in their shopping loca- According to industry sources, women’s expenditure on outerwear
tions. amount to approximately 50% of the total consumer expenditure
on outerwear clothing. More details about the structure of Spanish
• Although this habit has decreased, approximately 18% of outerwear consumption can be taken from table below.
Spaniards still go shopping with their families/relatives (in com
parison: European average is only 9% in this respect). - Table 50: Consumer expenditure on outerwear clothing
Spaniards buy clothing 7-8 times a year (on average), which is
2004 2006 2008 2009
below the European average of 9-10 times a year. The exception
Women [€ bn] 10.0 10.6 10.9 10.1
are young consumers from 16 to 34; their average is more than
Men [€ bn] 5.9 6.3 6.3 5.9
10 purchases per year.
Children 2.9 3.1 3.2 3.1
• Spaniards pay increasing attention to brand names – especially (aged 3-14) [€ bn]
young consumers and service quality. Total [€ bn] 18.8 20.0 20.4 19.1
Source: Analysis based on CBI
• The country of origin of the product purchased is for Spanish
consumers mostly irrelevant. 5.2.6 Price development of clothing
As the Spanish clothing market is still dominated by the strong
• Spanish consumers are less ecologically conscious e.g. compa national clothing production, price developments also depend on
red to the Swiss, Germans or the Scandinavians, and requests the national industry to a large extent.
for ‘ecological standards’ in terms of clothing presently can only
be observed in large cities like Madrid and Barcelona. The national consumer price index grew with a CAGR of 2.2%
from 2006 to 2009 (national consumer price index 2006=100,
The differences in consumer preferences compared to other 2009=106.8) compared to the clothing (including shoes) price
Western European countries like Switzerland and Germany is the index which fell by an average of -0.1% per year from 2006 to
cut of ladies outerwear. Due to the average smaller size of Spanish 2009 (clothing (and shoes) price index 2006=100, 2009=99.75).
74 l Outerwear 2010
The strong increase of clothing imports, mainly from developing 5.3 Imports.
countries into Spain has led to more competition and has limited
the inflation for clothing items. The production costs for clothing in 5.3.1 Total imports
Spain have been lower (e.g. for labour, logistics, marketing) com- The imports of outerwear clothing to Spain increased by 8.6%
pared to Western European countries, the price level for apparel from 2007 to 2008.
has been approximately 10% lower.
Table 51 and table 52 give a more detailed survey on the imports
According to the Textile and Outerwear Information Centre (CI- from 2006 to 2008 divided into imports of knitted outerwear and
TYC) in Barcelona, the mark-up for a Spanish retailer ‘theoretically’ imports of woven outerwear.
is at 100%; in practical terms, due to sales and reductions, figures
run at only 70%. This tendency to stronger price reductions, lower Looking at the 2008 total figures in table 51, the import share of
margins and a European wide price adaptation can be stated for men’s knitted outerwear clothing (knitted and woven) at 3.5% (=
all countries of the Euro zone covered by this market survey. € 0.3 million) less than the half of women import (7.7% = € 0.7
million). The import share of knitted outerwear for both genders
was 29.6% with € 2.7 billion. Knitted sportswear items add up to €
0.3 billion, a 3.0 % import share.
Outerwear 2010 l 75
Sub Total 19’933 392’292 27’370 536’797 350’210 705’012
Sub Total Extra EU 19’230 178’715 27’268 227’588 24’809 284’749
For both genders
T-shirts, singlets etc. (61.09) 44’025 1’072’931 49’159 1’165’774 97’079 1’103’070
Jersey, pullovers, cardigans, waist- 43’336 982’295 39’882 1’070’531 148’322 1’303’971
coats, etc. (61.10)
Babies’ garments (61.11) 74’004 189’385 81’355 218’250 73’256 197’099
Garments rubberised, impregnated, 345 7’437 592 9’890 714 12’363
etc. (61.13)
Gloves, mittens and mitts (61.16) 3’727 41’761 3’836 43’374 13’662 41’680
Other made-up clothing accessories 4’170 38’290 4’213 33’559 4’055 39’826
(61.17)
Sub Total 169’607 2’332’098 179’037 2’541’378 337’087 2’698’009
Sub Total Extra EU 98’452 1’180’680 102’600 1’285’865 120’174 1’382’790
Active Sportswear
Track suits, ski suits and swimwear 12’264 159’435 17’383 165’009 81’332 168’236
(61.12)
Special garments for professional 67’299 137’309 24’384 123’780 6’763 119’911
sporting or other purposes (61.14)
Sub Total 79’564 296’745 41’767 288’789 88’094 288’147
Sub Total Extra EU 16’697 152’772 22’143 141’514 11’935 124’556
Generally speaking, imports to Spain in almost all woven product Thus, best prospects for imported apparel include business wear
categories have increased year by year since 2006. Looking at (basic colours, good quality, medium- high price) for women as
the total imports of woven outerwear for women or girls, imports well as high quality sportswear with a casual style and excellent
from 2006 to 2008 in value terms increased more strongly than for quality materials (mainly natural fibres) with sophisticated styles
men. The imports of woven men’s or boys’ outerwear increased by and patterns. Casual wear, mainly denim, cotton-made products
16.1% from € 1.6 billion in 2006 to € 1.8 billion in 2008, whereas and knitted apparel, have also been in strong demand and sales
the women's wear imports for the same product group increased prospects for these items have been rated as positive. Spanish
by 17.9% from € 2.2 billion in 2006 to € 2.6 billion in 2008. youth is strongly influenced by fashion trends from casual wear in
general (‘GAP style’) and it can be stated that imports in general
have very good prospects in this sector.
76 l Outerwear 2010
Table 52: Imports of woven outerwear by gender and product categories, 2006-2008
Outerwear 2010 l 77
5.3.2 Outward Processing Trade (OPT) Spain. The remainder of Mango clothing is produced in China (ap-
The textile and clothing industry in Spain is a labour intensive in- proximately 50%) and Morocco (approximately 25%) but almost
dustry with relatively high labour costs. Outsourcing is a common 100% on finished product basis.
practice among Spanish clothing firms, however mainly within
Spain. INDITEX (Brand ZARA), for example, designs, produ- The actual ‘Outward Processing Trade’ (OPT) business – usually
ces (50% is outsourced to subcontractors) and distributes its operated by apparel manufacturers - in Spain plays more and
own brands (vertical concept). The company policy of satisfying more important role but represents only 1.7% of total outerwear
customer demand almost immediately requires that INDITEX pro- imports. The No. 1 OPT supplier is by far Morocco with € 0.1 billion
duction is almost entirely located in Europe, primarily in Spain to imports in 2008 (in 2006 only € 0.04 billion!) followed by Tunisia,
provide the flexibility to respond quickly and effectively to market China and Macedonia. Basically, there are two reasons for the
trends. MANGO, Spain’s second largest textile company after extremely small OPT business: a. the strong clothing production
INDITEX, designs strictly women's wear for young urban women. base in Spain with rather competitive prices and b. no tradition in
However, Mango manufactures only to 25% of its production in OPT business.
Position Country 2006 [‘000 €] Change from 2007 [‘000 €] Change from 2008 [‘000 €]
2006 2007
1 Morocco 38’754 148% 96’166 18% 113’660
2 Tunisia 4’707 257% 16’782 6% 17’813
3 China 984 27% 1’245 194% 3’655
4 Macedonia 672 -13% 583 40% 814
5 Bangladesh 27 -100% 0 625
6 Serbia 10 770% 85 163% 224
7 Turkey 6 -100% 0 200
8 Vietnam 141 -41% 83 129% 190
9 Moldova 0 69 74% 119
10 Pakistan 0 0 100
11 USA 2 -100% 0 53
12 Hong Kong 10 5% 11 346% 49
13 Guatemala 0 0 42
14 Mexico 0 0 19
15 Norway 2 -100% 0 3
16 Bosnia-Herz. 0 70 -97% 2
17 Thailand 32 87% 61 -97% 2
18 Switzerland 2 -100% 0 0
19 Romania 7’129 -100% 0 0
20 Bulgaria 12’702 -100% 0 0
Total 65’477 76% 115’382 19% 137’570
78 l Outerwear 2010
5.3.3 Largest suppliers of outerwear The two main EU suppliers France and Italy represent 47.9% of
The five major supplying countries of clothing from extra-EU coun- the whole EU import value. In general, approximately 46.1% of the
tries are – according to their importance – China, Morocco, Turkey, import value is supplied by EU member states and the rest comes
Bangladesh and India The two main extra-EU suppliers of fashion from developing countries.
clothing, China and Morocco, represent 54.7% of the entire extra-
EU import value
Position Country 2006 [‘000 €] Change 2007 [‘000 €] Change 2008 [‘000 €]
from 2006 from 2007
Outerwear 2010 l 79
Table 55: Largest intra EU supplying countries of outerwear, 2006-
2008
Position Country 2006 [‘000 €] Change from 2007 [‘000 €] Change from 2008 [‘000 €]
2006 2007
1 France 639’311 18% 757’482 50% 1’134’652
2 Italy 806’863 13% 914’602 -4% 878’723
3 Portugal 600’697 13% 681’595 -4% 654’037
4 Germany 416’821 12% 466’345 5% 489’272
5 Belgium 344’117 17% 401’852 1% 406’711
6 Netherlands 136’536 33% 181’371 13% 204’598
7 UK 112’909 14% 128’388 39% 178’857
8 Denmark 116’167 7% 124’850 -11% 111’452
9 Bulgaria 99’598 -50% 49’421 0% 49’659
10 Romania 49’272 -57% 21’104 14% 24’078
Intra-EU 27 3’418’428 12% 3’814’424 10% 4’204’113
Extra-EU 27 4’151’147 10% 4’582’874 7% 4’911’522
Total 7’569’575 11% 8’397’298 9% 9’115’635
Source: Eurostat 2009
5.4 Trade structure. channels, like specialised clothing chains, and this trend will conti-
nue because of limited capabilities to respond quickly to changing
5.4.1 Developments in the retail trade trends. At the lower end of the retail market, the market share of
The fierce competition on the Spanish market, partly due to more street markets declined in favour of shopping centres (including
imports from abroad, has led to structural reforms at the retail hypermarkets and multiples).
level. The expansion of clothing multiples resulted in a decrease
in the number of independent specialized shops. In 2008, total The further strategy of the clothing industry, partially running their
clothing retail trade showed rising turnover with an average annual own retail outlets, includes the increase of productivity in order to
change of +2.3%. lower labour costs, and a higher dislocation of the production to
countries with low production costs. These cost-saving strategies
Each year, independent retailers are steadily losing market shares have been completed by a very sophisticated supply-chain ma-
to other more dynamic retail channels; this trend has even accele- nagement to provide the franchise shops with new fashion items
rated in the last few years. on a weekly or monthly basis.
In Spain there are five large groups that control one third of the to- The Inditex Group has achieved a worldwide leading standard with
tal retail market for men’s, women’s and children's wear: El Corte almost perfect logistics and very short lead-times for new ranges/
Inglés, Inditex, Carrefour, Cortefiel and Mango. designs of less than 6 weeks. It can be expected that the Spanish
clothing retailers will offer greater segmentation in the product
In 2008 there were 40'000 clothing retailers in Spain down from lines offered and specialize more in market niches, mainly within
70'612 in the nineties. Each year, small independent multi-brand the low and upper price ranges.
stores steadily lose market share to other more dynamic retail
80 l Outerwear 2010
5.4.2 Leading retailers The Barcelona-based Armand BASI, originally a knitwear compa-
As mentioned before, the Spanish clothing retail structure can be ny, is also an important supplier of men’s and women's wear, as
characterized by a strong concentration on only a few companies. well as the Galicia based CARAMELO chain. Two leading Spanish
Further, a significant part of the turnover is made by distribution specialists in women’s jeans and trousers are ANINOTO and
chains such as C&A, or international franchise companies like JOCAVI, which are popular among women of all ages.
Benetton, Pimkie or Promod.
Table 56 gives a survey on the major clothing companies, most
Department store sales (in Spain El Corte Inglés) also represent a of them having an own production as well as own retail outlets
large share of the total clothing market. The El Corte Inglés group among which MANGO, ZARA and CORTEFIEL have the most
includes the franchise chains Sintesis, Cedosce, Tintoretto and advanced marketing concept and are successfully operating all
Amitié. over Europe and partially worldwide. In the table below it becomes
obvious to what extent Inditex dominates the Spanish clothing
The most successful Spanish clothing retailer, INDITEX in La market with 1'896 own shopping outlet stores in Spain (53% of
Coruna, is the world third largest clothing company after GAP and worldwide shopping outlet stores). Another big player is the ‘El
H&M, with a total turn-over of € 10.41 billion (2008) representing Grupo CORTEFIEL SA’ in Madrid with 970 shops in 9 European
an CAGR of 20.6% over the last 10 years (1998 turn-over € 1.6 countries and 375 franchises in 37 non European countries.
billion). The founders and owners had opened the first Zara store
with the idea of producing fashion clothing at an affordable price. The distribution of outerwear in the Spanish clothing market is
Over the past decade, Inditex has registered 7 new brands and based on extensive franchising systems that are highly developed
runs 3'556 shops in 37 countries. Inditex group today consists compared to other European markets. Some of the most important
of eight major chains: Zara (Turn-over share: 65.6% - products: franchises are ADOLFO DOMINGUEZ (men’s designer clothing
men’s, women’s and children's wear), Zara Home (Turn-over sha- – 559 outlets worldwide), MASSIMO DUTTI (ladies’ and men’s ou-
re: 2.1% - products: home textiles), Pull & Bear (Turn-over share: terwear – 250 outlets – franchisee Inditex Group) or TINTORETTO
6.9% - products: menswear), Massimo Dutti (Turn-over share: (high segment ladies’ outerwear – 45 outlets – franchisee Induyco
6.9% - products: men’s and women's wear), Bershka (Turn-over Group).
share: 9.9%), Oysho (Turn-over share: 2.3%), Stradivarius (Turn-
over share: 6.1% - products: women’s and girls’ wear) and Uterqüe
(Turn-over share: n.a. – products: women’s and girls’ accessories
and shoes).
Outerwear 2010 l 81
Table 56: Major specialised clothing chains in Spain, 2008-2009
Source: Gherzi analysis – Note: *Companies with own production in Spain or clothe collaboration; Number in brackets corresponds to worldwide outlets.
82 l Outerwear 2010
5.4.3 Distribution channels 5.4.3.1.2 Clothing multiples
5.4.3.1 Retailers Key characteristics: Clothing multiples mainly or exclusively have
The last survey on the structure of the Spanish clothing distribu- only one brand label in their assortment for fashionable products
tion channels dated from 2009 indicates that 157'600 persons with short rotation times (like Mango). As a result of aggressive
were employed in 62'817 shops. The size of the shops in Spain is expansion plans, these specialist chains account for a large per-
comparatively small with 2.5 employees per unit (source: Distri- centage of total retail clothing sales in Spain. Many of these chains
bución Actualidad based on data from DBK). Table 57, based on operate on either a franchise basis or a mix of both company-run
CBI, indicates the share of the clothing distribution channels in stores and franchises. These often single brand retail channels,
2008. The market is still dominated by the independent specialized along with hypermarkets, have gained the greatest market share
retailers (35%) but the share of clothing multiples (28%) has grown at the expense of the multi-brand independent shops. Like France
in recent years and can be rated, together with the hyper- and su- and the UK, Spain possesses favourable regulations for franchise
permarkets (11%), as the greatest potential target customer group companies.
for manufacturers from developing countries.
Market share: 28% in 2008, Trend: Increasing
Table 57: Clothing retail channels by market share [%]
5.4.3.1.3 Department / variety stores
2004 2006 2008
Key characteristics: Department stores combine a wide range of
Specialists 63 64 63
branded goods and private labels. The prevalent Spanish de-
Independent retailers 38 37 35 partment store is El Corte Inglés, the store presents more than
Clothing multiples 25 27 28 30 brands of men’s, women’s and children's wear. Many of these
Non-specialists 37 36 37 brands originate from the Induyco Group (which is the owner of El
Department/variety stores 13 12 12 Corte Inglés). However, a large portion of the assortment consists
Home shopping companies 1 1 1 of well-known Spanish or foreign brands. According to our market
Hyper- and supermarkets 10 10 11 observations, entry to the Spanish market through El Corte Inglés
Sports stores 5 6 6 for companies with substantial sales volume has been indispens-
Other 8 7 7 able up to now. Despite strict terms of admission (restrictive terms
Total 100 100 100 of payment, certain levels of turnover etc.) set up by the leading
Source: CBI department store, many brand manufacturers try to sell their
garments to El Corte Inglés. Due to strict brand orientation, the
5.4.3.1.1 Independent retailers department store offers easier access for well known brands and
Key characteristics: These specialized clothing shops are still the companies with a good image. Companies from developing coun-
main retail outlets for garments in Spain (Jeans-shops, Boutiques, tries have the best access chances to El Corte Inglés by offering
sportswear-shops), although the market share of these shops has their assortment to the ‘private label buying managers’ who source
been slightly decreasing. They still play an important role mostly in their products mainly from overseas suppliers.
the North of Spain, although even here the importance for this dis-
tribution channel is shrinking. Each year small independent multi- Market share: 12% in 2008, Trend: Slightly decreasing
brand stores steadily lose market share to other more dynamic
retail channels (like large department store El Corte Ingles, C&A 5.4.3.1.4 Home shopping companies
and other forms of retail). This trend has accelerated in the past Mail-order has traditionally not been particularly popular in Spain,
few years, mainly because of their limited capabilities to respond with direct selling being the more effective and better-developed
quickly enough to changing market trends and the limited choice of method in the Spanish market. Shopping has always been seen as
products in the shops. a leisure activity in Spain, where shops stay open late.
Outerwear 2010 l 83
The major German and French players are present in Spain, but overproduction, phased-out products and returns. ZARA has an
their progress has been slow. Spanish leading mail-order compa- independent shop in Madrid. There are many FOCs in Spain, loca-
nies selling clothing besides general goods are Venca (part of Otto ted outside of big cities. There is FOC ‘La Roca Company Stores’
Versand) and La Redoute Catalogue. near Barcelona, which offers brand apparel at reduced price in 40
shops (Cacharel, Dockers, Levi’s, Timberland). Two other FOCs
Market share: 1% in 2008, Trend: Constant are situated near Madrid (‘Las Rozas Village’ in Las Rozas and
another one in Getafe). According to Factory-Outlet Center.biz
5.4.3.1.5 Hyper- and supermarkets there are 9 registered large FOC’s in Spain in 2009.
Key characteristics: The main activities of grocery super- and
hypermarkets lie originally in the selling of groceries. Both distri- 5.4.3.2.2 Central buying associations
bution channels are gaining importance in Spain. The price level As the share of independent smaller retailers in Spain (at 35%)
of clothing sold by super- and hypermarkets ranges in the lower to is high, there is a relatively broad basis for potential member
middle level. The important suppliers are large supermarkets like companies for buying associations. Nevertheless, the major buying
ALCAMPO, ALIMENT, MERCADONA, GIGANTE and CARRE- association Spain is IFA ESPANOLA in Madrid. The members are
FOUR. For the children's clothing sector this distribution channel more supermarkets and cash-and-carry markets than retailers.
plays a particularly important role. The low importance of buying associations in Spain can be mainly
explained by the fact that the owner of a single boutique or a small
Market share: 11% in 2008, Trend: Slightly increasing number of shops buys over 80% of his product range from local
manufacturers and/or from sales agents representing foreign
5.4.3.1.6 Sport shops brands. Therefore, the buying associations are of less importance
Sport stores in Spain only offer a limited range of clothing products for foreign manufacturers wishing to export to Spain.
specialised to fit to numerous sporting disciplines.
5.4.3.2.3 Sales agents
Market share: 6% in 2008, Trend: Slightly increasing Sales agents play a major role in the Spanish clothing market. This
refers mainly to Spanish and European clothing brands which are
5.4.3.1.7 Other (street markets, etc.) distributed via a network of sales agents all over the country. Only
According to desk-research and interviews conducted in Spain, those clothing manufacturers from abroad wishing to enter the
open street markets and to a lesser extent consumer fairs and Spanish market with an own product range are advised to appoint
factory outlets are the major distribution channels for clothing a sales agent to sell their collection to the major retailers. These
summarised under ‘Other forms of retail’. The market share of this sales agents should be located near or in the major ‘clothing are-
retail channels is slightly decreasing. as’ of Spain like Madrid, Seville, Barcelona and La Coruña to build
up and maintain contact to the ‘key players’ in Spain.
Market share: 7% in 2008, Trend: Slightly decreasing
5.4.3.2.4 Importers/wholesalers
5.4.3.2 Sales intermediaries Given the strong increase of clothing imports into Spain since the
5.4.3.2.1 Clothing manufacturers end of the nineties, the necessity for the assignment of importers/
As stated above, the clothing production sector plays a dominant wholesalers has increased. Some Spanish wholesalers/impor-
role in the Spanish industry. There is a growing trend among ters have come to supply the chains and the brands with ‘price
manufacturers to create their own chain of distribution. Franchise attractive and fashionable’ collections that they often develop with
has become a very common system for brand name distribution of manufacturers from overseas countries. However, interviews in
fashion products. Spain have shown that the large clothing companies like Mango,
Inditex or Indyuco often have their own import departments and
A new way of distributing garments for clothing manufacturers sourcing and control systems worldwide. Therefore, the clothing
originates from the USA: Sales through Factory Outlet Cen- supplier from abroad should approach retailers and manufacturers
ters (FOCs). Garments are sold directly from the factory to the in Spain directly.
consumer. This distribution way concerns ‘leftovers’: goods from
84 l Outerwear 2010
5.5 Spanish fashion trade fairs. CIO CIBELES, ESPACIO HOMBRE and BOUTIQUE EUROPA.
The ongoing growth SIMM has enjoyed has made this event the
The important Spanish fashion fairs take place in two big cities: second most important fashion trade fair in Europe in terms of
Barcelona and Madrid. net exhibition area, based on a solid and constant drive to ensure
quality. Furthermore, the fair will feature strong participation on the
The significant fashion fair in Madrid is SIMM – International Fa- part of international companies and buyers from other countries,
shion Week. It is organized twice a year, in February and August/ for which SIMM represents an important business centre.
September in Parque Ferial Juan Carlos I by IFEMA (Feria de
Madrid). The fair focuses on men’s and women's wear, but also
fur clothing and leather garments. The fair includes the following For children's wear the ‘FIMI’ in Valencia is the most important
events: INMODA/ANIMODA, IMAGENMODA, INTERMODA, LA event. The fair takes place twice per year and shows baby to tee-
GALERIA, PASARELA DE CIBELES, CIEN POR CIEN, ESPA- nager wear as well as accessories and maternity wear.
Source: CBI
Outerwear 2010 l 85
5.6 List of major buyers in Spain.
Clothing chain stores
C & A Modas S.L. Product range: Ladies’, Euronido Textil SA Product range: Ladies’
Avda. de la Indústria, 17 men’s and childrenswear Ctra. Andalucia, km 6.400 and menswear
Pol. Ind. de Alcobendas Price segment: E - 28041 Madrid Price segment:
28108 Alcobendas (Madrid) Lower to mid level Tel.: +34-91-217 3345 Lower level
Tel.: +34-91-663 0000 Number of outlets: 115 Fax: +34-91-365 0848 (value for money)
Fax: +34-91-663 3532 www.euronido.es Number of outlets: 16
press@C-and-A.com
www.c-and-a.com or Inditex SA (‘Zara’) Product range: Ladies’,
www.c-y-a.es Poligono Ind. Sabon 79B men’s and childrenswear
infoiberica@retail-sc.com E - 15142 Arteixo, La Coruna Price segment: Mid to
Tel.: +34-981-185400 upper level
Celso Garcia SA Product range: Ladies’, Fax: +34-981-185454 Number of outlets: > 500
Calle Serrano 52 men’s and childrenswear www.inditex.com - partially
E - 28001 Madrid Price segment: Mid level own production
Tel.: +34-91-431 6760 Number of outlets: 11
Fax: +34-91-431 67 70 Note: Belongs 1/3 to Mango – Punto FA S.L. Product range: Womens-
www.cortefiel.es Cortefiel Calle Mercaders 9 11 wear, young fashion
E - 08184 Palau de Plegamans Price segment: Mid level
Comerc. Espanola LA ARA- Product range: Ladies’ – Number of outlets:
NA SA and menswear Barcelona Over 60 + 175
Polígono Industrial El Pla - Price segment: Lower to Tel.: +34-93-860 2222 franchising partners
Edificio Arana mid level Fax: +34-93-8602 201
E - 08800 Barcelona Number of outlets: 42 www.mango.es
Tel.: +34-93-668 9061
Fax: +34-93-668 5962 Prénatal SA Product range: Childrens-
Botanica 29-31 wear, Maternity wear
Cortefiel SA Product range: Ladies’ E-08908 Hospitalet de Llobre- Price segment:
Avenida Mon Forte De Lemos and menswear + young gat (Barcelona) Mid to upper level
s/n fashion Tel.: +34-93-2606000 Number of outlets: 105
E - 28029 Madrid Price segment: Mid level Fax: +34-93-2606018
Tel.: +34-91-730 2912 Number of outlets: > 300 www.prenatal.es
Fax: +34-91-730 2437
www.cortefiel.es Reguero SA Product range: Menswear
Roble 3 Price segment:
Damart SA Product range: Ladies’ E - 28020 Madrid Lower to mid level
Calle Gomis 32 and menswear, under- Tel.: +34-91-4252 880 Number of outlets: 14
E - 08023 Barcelona wear Fax: +34-91- 571 57 35
Tel.: +34-93-212 2412 Price segment:
Fax: +34-93-211 5815 Lower level Superconfex SA Product range: Ladies’
www.damart.fr Number of outlets: 22 Sierra de Guadarrama 84 and menswear
shops + mail order Polígono Industrial San Price segment: Lower
Fernando level
de Henares Number of outlets: 12
E - 28850 Madrid Note: Daughter company
Tel.: +34-91-656 4012 of Dutch
Fax: +34-91-677 2935 ‘Superconfex’
www.superconfex.be
86 l Outerwear 2010
Jeans-, sportswear and young fashion Mail order companies
88 l Outerwear 2010
6. Switzerland.
6.1 General economic situation. Table 59: Key indicators of the Swiss economy, 2007-2009
The CHF develops more closely in line with the Euro than with the
USD. In the past few years, the ratio of the CHF to the Euro has
slowly but continuously grown stronger. One CHF is at present
0.68 € (22.02.2010).
Outerwear 2010 l 89
Table 60: Size of the Swiss clothing industry, 2007-2008 companies have gained more and more influence, for instance
[CHF billion] C&A Switzerland, H&M, Zara and others (see ‘Leading Retailers’
2007 2008 % change and ‘Distribution Channels’).
95 10 0 +
95-99
male 90-94 female
85-90
85 80-85
7 5 -7 9
7 0 -74
65-69
75 60-64
55-59
50-54
45-49 Clothing
65 40-44
35-39
30-34
25-29
55 2 0 - 24
70
15 -196
72 74 76 78 8 0 8 2 84 98 8 8 9 0 9 2 9 4 9 6 9 8 0002 004 06 08
19 19 19 19 19 19 19 19 101-14 19 19 19 19 19 19 2200 2 20 20
5-9
0-4
0.35 0.30 0.25 0.20 0.15 0.10 0.05 0.00 0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35
Population in millions
90 l Outerwear 2010
6.2.4 Retail sales by categories
The clothing sales increased by an average of 1.6% from 2000
to 2008. The total sales index grew in the same period by an ave-
rage of 1.8%. Clothing sales fell by 3.0% from 2007 to 2008. Data
about the specific sales for outerwear are not available, however,
Figure 7 gives a good indication on the total sales tendencies and
clothing from 1970 to 2008.
Figure 7: Sales volume index for total sales and clothing sales,
1970 - 2008
Source: BFS
Outerwear 2010 l 91
Figure 8: Production and import costs for textile and clothing,
2002 – 2009 (Index 2003 = 100)
110
108
106
104
Price Index
Import cost
102
100
98
96
94
2002 2003 2004 2005 2006 2007 2008 2009
Source: BFS
The sales volume of outerwear has grown from CHF 1.00 billion in
2000 to CHF 1.34 billion in 2008, an increase of 34%. The sales
volume of underwear has declined by 20.5% in the same period.
The total turnover increased by 21.8% from 2000 to 2008. Table 61
indicates the sales developments of the major product segments
outerwear, underwear and accessories. Sales have dropped from
2007 to 2008 by -2.2%.
92 l Outerwear 2010
Table 61: Size of the Swiss clothing market, 2000-2008
[CHF billion]
According to desk research carried out in Switzerland, the follow- Swiss women today can generally be described as fashion ori-
ing product groups have the best sales prospects in Switzerland: ented without following all fashion trends immediately. They are
usually sure of their taste and prefer basic and ‘practical’ garments
• Young and trendy Sportswear/Casual wear which can be easily mixed and matched. Swiss women occasio-
nally engage in impulse buying, but generally prefer to invest in
• Jeans wear (either branded or on a value for money basis)- high quality basics. Working women prefer simple and elegant
Strict displacement competition garments of high quality and comfort. The formal office outfit for
working women usually consists of an outfit or suit with matching
• Well-known street wear brands in the mid price range blouse or shirt. Matching accessories like shawls, belts, handbags
etc. have gained much more importance in the last 2-3 years and
• Fashionable products at an ‘acceptable’ price level mainly help to ‘freshen-up’ an existing outfit.
offered by chains
Modern Swiss men have changed their attitude to fashion consi-
• High-end designer brands derably over the past few years. According to retail trade sources,
the male customers have ‘grown up’ and know what they are loo-
• Environmentally friendly apparel king for: fashionable and comfortable clothing of good quality. The
level of sophistication in men’s attitude is increasing. Well-known
The demand for leisure and casual wear has increased continu- brand names are very popular, especially among label-conscious
ously over the last few years, especially for the sportswear and young consumers.
‘smart casual’ segment. Additionally, high-end designer lines can
also be quite successful in Switzerland with its high standard of Younger people, in particular, are willing and able to pay high
living. An ongoing trend is a demand for natural fabrics. Also ‘func- prices for well-known labels. Casual clothing without a known
tional clothing’ e.g. with ‘breath-active fabric’ is selling well. label in the mid price bracket is also in demand. In general, buyers
aged 25-50 are the most relevant consumer group for apparel,
6.2.5 Consumer behaviour representing the target group which spends a high proportion of
6.2.5.1 Consumer preferences disposable income on apparel and shoes. Quality, functionality,
Swiss consumers can be defined as ‘hybrid consumers’, as in price and design, in that order, are the most important factors for
other countries. Market analysis has shown that generally spea- this target group in taking a buying decision.
king the consumers are very well informed about the latest trends
in fashion and can be considered to be both sophisticated and 6.2.5.2 Consumer expenditures
brand conscious. This is the case especially for people with higher The Swiss population has one of the highest per capita incomes
income and a higher standard of living. It is no surprise that well- in the world. Total expenditure per household grew by an average
known clothing brands are popular among Swiss consumers, as of 1.9% from 2005 to 2009, while during the same period expen-
they are considered status symbols. On the other hand, there are diture for clothing and shoes only grew by a yearly average of
many ‘cheap’ chain stores with a ‘value-for money- concept’ on the 1.5%.
market which reflects the ‘economic sense’ of the Swiss consumer.
Outerwear 2010 l 93
The following table shows the developments of the Swiss
household expenditure from 2005 to 2009.
94 l Outerwear 2010
6.3 Imports. 6.3.2 Outward Processing Trade (OPT)
The outsourcing of local production process to low wage countries
6.3.1 Total imports is continuing. Thus, the outward processing trade (OPT) of clothing
Switzerland has an extremely liberal import regime for textiles manufacturers in Switzerland has increased too in the last few
(no import limitations, and some of the lowest import duties in the years and contributed to the growth of the Swiss clothing industry.
world).
There are no detailed statistics available for the last few years,
Clothing imports have increased from CHF 4.8 billion in 1990 to as the import data are no longer specified for OPT and non-OPT
CHF 6.3 billion in 2008, this corresponds to a compound annual clothing imports. A more detailed analysis is therefore not possible.
growth rate of 1.5%. More details can be taken from the table
below, which shows the clothing import developments into Switzer- 6.3.3 Largest suppliers
land from 1990 to 2008. Table 65 summarises the major countries supplying outerwear to
Switzerland. The neighbouring countries Germany and Italy re-
Table 64: Swiss clothing imports, 1990-2008 [CHF billion] main the most important clothing suppliers for Switzerland. Almost
55% of the clothing imported originates from these two EU coun-
1990 2000 2007 2008 CAGR
90-08 tries. Professional and advanced marketing by the foreign brands,
Outerwear 4.0 4.4 4.9 4.9 1.10% quick and easy communication and overnight truck deliveries are
important reasons for this dominant position.
Underwear 0.5 0.7 0.8 0.8 2.60%
Accessories 0.3 0.4 0.5 0.5 2.90%
Most of the well known European brands are at least partially pro-
Total 4.8 5.4 6.2 6.3 1.50% duced or finished in low labour cost countries, whether in Eastern
Source: EZV Europe, North Africa or elsewhere.
The EU remains the by far most important trading partner in
clothing for Switzerland. EFTA countries no longer have any impor-
tance as suppliers. The supply from developing countries incre-
ases and has gained competitiveness regarding design, fashion
and qualitative aspects.
Source: EZV
Outerwear 2010 l 95
6.4 Trade structure. group between 45 and 54 have been strong consumers already
in the past, and this specific age group will influence the market
6.4.1 Developments in the retail trade positively.
The liberalization of regulations governing clearance sales in the
retail trade since 1997 has enabled Swiss retailers to initiate sales In general, the situation of the Swiss clothing retail market remains
all year round, and not just during fixed periods. While smaller difficult, mainly due to more and more competition from foreign
retailers in particular fear that the department stores and other big chains (Mango, Zara, H&M, C&A Switzerland) but also Swiss
clothing stores will continue to put additional pressure on prices retailers growing stronger like Tally Weijl or Vögele. The specia-
and margins by starting the summer and winter sales earlier each lised smaller and independent retailers are under pressure and
year, other trade sources mentioned the positive effect the libe- often can only exist by ‘mixing different labels’ to be attractive for a
ralization has on shops forced to liquidate their goods in order to specific target group. There is a continuing trend to verticalization
renovate or move the store. at Swiss retail level, meaning to manage and control the whole
sourcing and distribution process from design of the collection
The sales volume in the clothing market has shrunk to its lowest and production down to the distribution of the product range in
level in the year 2000 and recovered from then on. This recovery is self-owned retail outlets. This sales concept means a strict supply
also due to the cessation of the import/export quotas on January chain management and is increasingly used also by department
1st, 2005 which had specially protected the European markets stores and chains like Globus building up their own ‘retail brands’.
from cheap imports from China for years. The sales volume of the Swiss clothing industry in 2008 reached
about CHF 2.01 billion with a share of 67% for the outerwear
Those groups who are most investing in clothes at present will clothing. Local clothing production decreased by 2.2% from 2007
also have the strongest population growth within the coming years, to 2008. Exports also decreased from CHF 2.19 billion in 2007 to
basically the age group from 35 to 65 years. People of the age CHF 2.14 billion in 2008 (-2.6%).
Figure 9: Sales volume index for total sales and clothing sales, 1970 -2008
Source: BFS
96 l Outerwear 2010
6.4.2 Leading retailers which is still operated as a cooperative, is the Swiss market leader
The following clothing retailers are the important stores and shops in retailing but not in the clothing market. Migros has over 15% of
in the Swiss market. Price competition is fierce and deemed dan- Globus' shares.
gerous by experts as customers are getting used to special offers.
The biggest market players are H&M, Vögele, C&A Switzerland, Migros puts high efforts in sustainability, fair trade and social re-
Zara, the PKZ Group and department stores such as COOP, Glo- sponsibility of the company towards its own workers, its suppliers
bus, Migros and Manor. and society in general (‘Clean Clothes Campaign’). In 2008 the
group's total turnover was CHF 25.75 billion (+13.5%). Migros has
The Swedish HENNES & MAURITZ is currently the market leader. its own sourcing network for clothing all over the world, but also
Established in Switzerland in the year 1978, H&M now operates buys from European based producers and wholesalers.
73 stores throughout the country. It had a turnover of CHF 846
million in 2009. H&M does not produce itself but has a network of As of 2009 C&A has 96 stores in Switzerland. The market strategy
more than 700 suppliers. 60% of production is placed in Asia. A aims at being a clothing house for the whole family with good
key factor in success seems to be the strategy of cost leadership prices and quality. It sells all kind of mid-priced clothing and aims
backed by the globally operating Swedish headquarters. to extend market share. However, C&A does not buy separately
through their branch in Switzerland, but from Düsseldorf/Germany
CHARLES VÖGELE MODE AG is a Swiss-based fashion chain and the C&A purchasing centre EBSCO in Brussels.
operating in Switzerland, Germany, Austria, Belgium, The Nether-
lands, Czech Republic, Poland, Hungary and Slovenia. In 2009, The PKZ GROUP with 495 employees in total owns several
Vögele had 7'639 employees and 855 sales branches. Group clothing chains. PKZ with 58 stores concentrates on men's wear
turnover was CHF 1'689 million € in 2008/09. Vögele’s primary with quality clothing of different labels. Burger is a men's wear
market strategy traditionally has been low price and still is, though shop. Feldpausch focuses on women's wear, Bluedog is a young
effort has been made to ensure high quality as well. Two new fashion casual wear chain. In 2008, PKZ sold goods to more than
corporate sectors have been created; “sourcing” and “new channel 1.1 million customers.
development”. This new sectors will strengthen Vögele's market
position. The COOP GROUP runs quite varied store formats ranging from
food to non-food and services. Coop offers a unique mix from
CHARLES VÖGELE GROUP does not have production centres branded articles to own brands and special brands (like Coop
of its own. All clothes are obtained from external suppliers. Most ‘Naturaplan’). Numerous products of the Coop are from production
purchase orders (about 95%) are placed directly with manufactu- plants of their own or from suppliers with whom they work very
rers all over the world and produced with Vögele own-labels. By closely. The sales volume in the retail business reached CHF 19.3
the vertical organization, the costs are optimized and high quality billion in 2008 which corresponds to a 17.2% of the Swiss market
standards can be maintained. Vögele runs a clear compliance share. Over 53'000 employees work for the Coop Group.
strategy, expecting sustainability and responsibility of its suppliers,
e.g. by following certain minimum social standards, environmental MANOR is the largest department store chain in Switzerland. It
rules and product safety standards. The range consists of women's belongs in large part to the Lausanne based family Maus. Other
wear (59%), men's wear (31%) and children's wear (10%). divisions of the Manor Group are 'Fly' (furniture and home acces-
sories), 'Athleticum' (sports) and 'Jumbo' (Do-it-yourself articles).
The GLOBUS GROUP with its flagship store in Zurich employs The Manor Group is one of the three largest Swiss retailers. The
2'630 employees and achieves a total sales volume of about CHF business employs about 11'000 people altogether. About 2'000
815 million yearly on a net selling space of 55'800 sq. m. With persons are working in the textile division, which represents about
a square metre sales volume of over CHF 14'600 per year it is one third of the whole Manor business.
one of the most productive department stores of the world. The
GLOBUS GROUP belongs to the MIGROS AG. The Migros Group,
Outerwear 2010 l 97
6.4.3 Distribution channels Table 66: Clothing retail channels by market share [%]
6.4.3.1 Retailers
2001 2004 2009
The distribution channels are grouped according to their basic
Specialists 55 55 55
structure into different kinds of retail businesses. More details
Non-specialists
about the development of the market share of the retail outlets can
Department/variety stores 15 13 12
be taken from following table. The data indicates that the textile
specialist stores play a dominant role among the clothing distribu- Home shopping companies 11 11 11
tors in Switzerland. These specialists had a constant market share Hyper- and supermarkets 10 10 13
of 55% over the last years. They include chain stores and the Other 9 11 9
independent retailers / boutiques and other specialised clothing Total 100 100 100
retailers (including fur and leather wear outlets). Source: TVS
The following Swiss retailers can be assigned to the specific distri- 6.4.3.1.1 Specialists
bution channels: (including textile specialised retailers and clothing chains)
• Clothing chains with own labels: Charles Vögele, WE-mode, Be- These specialized clothing shops are still the main type of retail
netton, Hennes + Mauritz, C & A, Kookai, Esprit, Tally Weijl, Yendi, outlet for garments in Switzerland, namely chain stores, boutiques
Chicorée, Pimkie, Orsay, Blackout, Zebra, Schaad Mode, Levi‘s and other specialised clothing retailers. The market share of these
Store, Mango, Zara shops has remained stable over the past years at around 55%.
• Clothing retailers with a ‘brand concept’: PKZ/BlueDog/Burger/ The major distribution channel among the textile specialist retai-
Feldpausch, Schild, Beldona, Fein-Kaller, Bongenie-Grieder, lers in Switzerland are the clothing stores with several outlets.
Herren Globus, Spengler Apart from the national clothing multiples Vögele, Schild, and
PKZ, there are many foreign retailers present in the Swiss clothing
• Department stores: Globus, Manor, Coop, Jelmoli, Loeb, Migros market.
and other department stores
Several foreign chains that are active in Switzerland must be men-
• Home shopping companies: Cornelia, Heine-Versand, Goldener tioned, such as the Swedish HENNES & MAURITZ GROUP, the
Schnitt, Charles Veillon, Ackermann, Spengler, Jelmoli, Vögele, Spanish retailer ZARA, the German ESPRIT, the Italian fashion
Damart Versand, Vedia, Bader. Walz and others company MAX MARA (aiming at international female shoppers)
and the Danish VERO MODA as well as the Spanish MANGO.
• Hyper- and Supermarkets: Migros, Coop, Denner, Aldi Schweiz,
Lidl Schweiz, Spar, Volg MANGO is a Spanish franchise company owning 13 shops in
Switzerland, 1'220 all over the world including online-retailing
• Other Distributors (sport shops, sport specialist stores, various (Mango MNG Group).
distributors) hold a market share of 9%.
ZARA is one of eight fashion brands retailers belonging to the
Low-price shops are not very popular in Switzerland as the con- Inditex group which lays stress on high vertical integration as a
sumers look for more than just low prices. For mid-price apparel, strategic factor in competition. Zara first opened in 1975 in Spain
department stores and mail order companies are still appropriate and is now present in over 40 countries with 1'188 stores. All of
and well accepted distribution channels. them have been designed to create a special atmosphere that will
allow the client to feel the pleasure of buying fashion. The desig-
ners create new fashion that hits the market twice a week.
The turnover was € 9.4 billion (2007) and € 10.4 billion (2008).
Zara's share within the Inditex Group is 65.6%. In Switzerland,
Zara has had 10 stores since 2002.
98 l Outerwear 2010
Another new clothing retailer is VERO MODA with 38 shops. Vero 6.4.3.1.3 Home shopping companies
Moda Switzerland belongs to ‘Bestseller Wholesale’. Bestseller is The mail-order business is the fourth most important retail channel
a family-owned clothing company founded in Denmark in 1975. for clothing in Switzerland. The market share of mail-order houses
Today Bestseller comprises 10 brands including Vero Moda. in Switzerland remained stable at 11% over the last years.
The Swiss chain TALLY WEIJL is another international ‘textile suc- Market share: 11%, Trend: Stable
cess story’. The market target is ‘the woman who likes to be sexy’.
TALLY WEIJL operates 74 shops in Switzerland. With a turnover 6.4.3.1.4 Hyper- and supermarkets
of 500 mn CHF in 2008 and more than 500 shops in 30 countries, Hyper- and supermarkets are the second most important retail
TALLY WEIJL has become an important player. channel for clothing after the specialists. The market share in 2009
was 13%.
Market share: 55%, Trend: Stable at 55%
6.4.3.1.2 Department/variety stores MIGROS and COOP with their stores are the largest retailers in
Department stores play the second most important role among the Switzerland, with activities in super- and hypermarkets.
distribution channels, with a market share of 12% in 2009. Their
market share has declined since 2001 (15%). Denner is the leading Swiss food discounter. Denner has a consi-
stent discount policy: Lowest prices combined with highest quality
One of the major department stores in Switzerland is GLOBUS with a limited number of articles.
AG, a department store with branches in all major Swiss cities,
which sells fashion for men, women and children in the mid and Aldi steped in the Swiss market in 2005 and achieved in 2009 an
upper price range, as well as fashion accessories, general consu- estimated turnover of 900 mn CHF with 100 markets. Aldi is known
mer products and food. mainly as food retailer but offers on a weeky changing base a wide
range of garments at a very low price.
Another major Swiss player is the MANOR AG, a department
store with branches in the whole of Switzerland, operating clothing Market share: 13%, Trend: Increasing
departments for men, women and children in the lower to mid pri-
ce category, including fashion accessories and general consumer 6.4.3.1.5 Others
products. This category primarily includes sport shops, sport specialist
stores, street markets and ex factory sales (directly from the
The LOEB HOLDING (a traditional family company in Bern) is a fashion manufacturer through ‘factory outlet centres’). Another
department store with five outlets. Loeb owns several clothing and form of distribution is ‘consumer fairs’. For the manufacturer from
non-clothing companies and has a total turnover of CHF 111.4 abroad, this target group is very difficult to approach as they nor-
million (2008/09). The five Loeb department stores only represent mally do not import on their own. They buy mainly from importers/
one part of the Loeb Holding. wholesalers according to their own specifications.
JELMOLI AG is a department store with significant apparel sales Market share: 9%, Trend: Stable
for men, women and children featuring international brands
concentrated on the mid to upper price range. With its ‘two-line 6.4.3.2 Sales intermediaries
business strategy’ - retail business and retail real estate business - 6.4.3.2.1 Clothing manufacturers
Jelmoli has managed to change the original department store into The clothing manufacturers in Switzerland face a difficult market
a successful, growing and profitable specialities retail business situation. The total turnover of the Swiss clothing industry amoun-
unit. Due to use of synergies at retail level, high profitability has ted to CHF 2.0 billion in 2008.
been achieved.
Swiss clothing manufacturers know the needs of the Swiss custo-
Market share: 12%, Trend: Declining mer, but their domestic production costs are too high to compete
99 l Outerwear 2010
with imports in the lower or mid price range. Thus, most clothing emerging countries. Thus, with the general increase of clothing
manufacturers look for production possibilities abroad. imports into Switzerland, the importance of Swiss wholesalers and
importers has increased and the ‘need’ for imported goods also for
6.4.3.2.2 Central buying associations smaller retailers due to the price pressure in the market has ge-
One major Swiss central buying association is the ‘Mode Schweiz’ nerally increased. The situation is unchanged, that a considerable
(formerly ‘ez Fashion Center’). It has more than 60 members, share of clothing imports into Switzerland is handled by German
mainly independent retailers. The buying association operates on importers, as they buy in overseas markets anyway to a very large
the basis of long-term partnerships, often with very close links to extent and can offer the service to neighbouring Swiss retailers as
local clothing producers. well.
Often, such importers have their own shop or boutique with high- Table 67: Swiss fashion trade fairs 2010
priced clothing and fear low quality imports. Only a few show some
Trade fair Date Location
interest in imports from outside Europe. The situation remains
unchanged, that most of the small retailers/importers are not in the TMC men 08. - 11.02.2010 Zurich
position to order sufficient quantities, thus orders e.g. from Asia TMC dessous 15. - 18.02.2010 Zurich
or South America will not be worthwhile for them. Even middle- TMC women 15. - 18.02.2010 Zurich
sized retailers are sometimes reluctant to do so, but regret at the TMC kids 22. - 25.02.2010 Zurich
same time not having the possibility to source from developing and TMC sport 22. - 04.03.2010 Zurich
TMC sport 22. - 04.03.2010 Zurich
Source: Auma, TMC
Blue Dog Product range: Jeans, Jeans & Co. AG Product range:
(company: PKZ Feldpausch) sports- and casual wear Haldenstr. 1 casual wear
Bahnhofstrasse 46 Price segment: mid and CH - 6340 Baar Price segment:
CH - 8010 Zürich high price level Tel.: +41 41 768 60 50 mid price level
Tel.: +41 44 736 33 33 Number of outlets: 12 Fax: +41 41 768 60 59 Number of outlets: 10
Fax: +41 44 736 33 00 Note: brand and fashion www.jeans-co.ch
www.bluedog.ch oriented – exclusive
retailer Modehaus MODEVA AG Product range:
Muttenzerstr. 109 womenswear
Bon Genie Product range: CH - 4133 Pratteln Price segment:
Brunschwig & Cie SA all kinds of clothing Tel.: +41 61 821 91 91 high price level
34, rue du Marché Price segment: Fax: +41 61 821 92 20 Number of outlets: 26
CH - 1204 Genève mid to high price level www.modeva.ch
Tel.: +41 22 818 11 11 Number of outlets: Bon-
Fax: +41 22 818 11 99 nard u. Cie 3 Pasito-Fricker AG Product range: womens-
www.bongenie-grieder.ch shops, Bon Genie 7, Pfadackerstr. 7 wear, menswear, shoes
Grieder 7, 10 boutiques CH - 8957 Spreitenbach Price segment: mid and
under Bon Genie Tel.: +41 56 418 17 77 high price level
www.pasito.ch Number of outlets: 18
Charles Vögele AG Product range:
Gwattstrasse 15 all kind of clothing PKZ Burger-Kehl & Co. Product range: all kind of
CH - 8808 Pfäffikon Price segment: Bahnhofstrasse 46 clothing incl. jeans wear
Tel.: +41 55 416 71 11 low price level CH - 8010 Zürich Price segment: mid and
Fax: +41 55 410 37 43 Number of outlets: 157 Tel.: +41 44 736 33 33 high price level
www.voegele.ch Fax: +41 44 736 33 00 Number of outlets: 30
www.pkz.ch
Fein-Kaller & Co. AG Product range: menswear
Bachmattstr. 53 and womenswear Schaad Mode Product range: Women’s
CH - 8048 Zürich Price segment: Tannewäg 1 outerwear for best age
Tel.: +41 44 434 83 83 high price level CH – 8197 Rafz Price segment:
Fax: +41 44 434 83 43 Number of outlets: 6 www.schaadmode.ch mid price level
www.fein-kaller.ch Number of outlets: 20
Jelmoli Versand AG Product range: all kinds of Veillon SA Product range: ladies’,
Postfach clothing and textile Route de Buyère 2 men’s, childrenswear
CH - 8088 Zürich Price segment: CH - 1017 Lausanne
Tel.: +41 848 840 300 mid and high Tel.: +41 21 706 92 17
Fax: +41 848 840 305 Fax: +41 21 706 98 14
www.jelmoli.ch www.veillon.ch
Spengler Versand AG Product range: all kind of COOP Schweiz Product range:
Fürstenlandstrasse 35 clothing and textile Thiersteiner Allee 12 all kind of products
CH - 9001 St. Gallen Price segment: CH - 4002 Basel Price segment: low and
Tel.: +41 71 274 61 61 mid price level Tel.: +41-61 336 66 66 mid price level
Fax: +41 71 274 61 62 Fax: +41-61 336 60 40 Number of outlets: 11
www.spengler.ch www.coop.ch department
stores, more than 1’700
Tchibo (Schweiz) AG Product range: ladies’, shops
Industriestrasse 19 men’s, childrenswear
CH- 8304 Wallisellen Forecast for 2010: 100 Denner AG Zentrale Number of outlets in CH:
Tel: +41 (0)43/233 45 00 shop-in-shops with COOP Grubenstrasse 10 430 stores and 300 indivi-
Fax: +41 (0)43/233 45 90 CH - 8045 Zürich vual retail traders
kundenservice@tchibo.ch Tel.: +41 44 455 11 11
www.tchibo.ch www.denner.ch
Dürsteler J. & Co. AG Fabric Frontline Zurich AG Hugo Boss Industries ISA Sallmann AG
Zürcherstrasse 47 Ankerstrasse 118 Via Passeggiata 7 Weinfelderstrasse 15
CH - 8620 Wetzikon CH - 8026 Zürich CH - 6883 Novazzano CH - 8580 Amriswil
Tel.: +41 44 933 60 70 Tel.: +41 44 241 64 55 Tel.: +41 91 696 17 17 Tel.: +41 71 414 24 44
Fax: +41 44 933 60 71 Fax: +41 44 242 20 02 Fax: +41 91 696 17 78 Fax: +41 71 414 24 55
www.faerben.ch www.fabricfrontline.ch www.hugoboss.com www.isabodywear.ch
info@faerben.ch info@fabricfrontline.ch info@hugoboss.com (men’s, women’s and child-
(men’s, women’s and child- (men’s and womenswear) (menswear) renswear)
renswear)
Kauf AG – The Swiss Shirt Lehsa Strickwarenfabrik
Feldinger Gabriel AG Filtex AG Maker Eichenweg 16
Lettenweg 40 Teufenerstrasse 1 Rosenbüelstrasse 50 CH - 4900 Langenthal
CH - 4123 Allschwil CH - 9001 St. Gallen CH - 9642 Ebnat-Kappel Tel.: +41 62 922 50 44
Tel.: +41 61 481 05 05 Tel.: +41 71 221 13 13 Tel.: +41 71 992 60 60 Fax: +41 62 923 08 38
Fax: +41 61 481 05 39 Fax: +41 71 221 13 14 Fax: +41 71 992 60 65 www.lehsa.ch
(mid-priced items womens- www.filtex.ch www.kauf.ch (men’s and women’s knit-
wear) info@filtex.ch info@kauf.ch wear)
(women’s and childrens- (shirts for department stores
wear) and mail-order comp.)
7.2.2 Market characteristics
A large proportion of British consumers has become more price
sensitive under the slogan: ‘Look good – pay less’. This attitude
towards clothing consumption explains to a large extent the
overwhelming success of the so called British ‘Value Retailers’.
However, some consumers are also willing to buy higher priced
and exclusive clothing.
Most consumers with high income are normally in the age group
between 50 and 60 and manufacturers offering highest quality
garments meet a strong and ever growing market segment in the
UK.
10 0 +
95-99
male 90-94 female
85-90
80-85
7 5 -7 9
7 0 -74
65-69
60-64
55-59
50-54
45-49
40-44
35-39
30-34
25-29
2 0 - 24
15 -19
10 -14
5-9
0-4
2,5 2,0 1,5 1,0 0,5 0,0 0,0 0,5 1,0 1,5 2,0 2,5
Population in millions
7.2.5 Consumer behaviour children’s fashion from the sports world and the entertainment
7.2.5.1 Consumer preferences sector will continue, even from an increasingly young age.
British women are fashion-conscious and stylish. This leads to an
interest in and desire for new and innovative styles of clothing. The Although formal wear is more and more substituted by casual
influence of media, especially magazines, TV and Internet, make wear, as in other European countries, the UK is still the country
consumers more conscious of the latest fashion trends and prices, with the highest market share of formal wear. As the table below
so they are better informed to make a choice than before. shows, the share of formal clothing is at a comparatively high level
Recent years have seen a trend towards purchasing casual wear of 39% for women and 38% for men. In this context, it should also
for the office and leisurewear for home, and away from buying be mentioned that in the segment of children‘s clothing, formal
formal wear. wear is also strong because of the use of school uniforms in Great
Britain.
The children’s clothing market is strongly shaped by adult fashion,
with some styles being miniaturised versions of adult ranges. Me- Casual wear and basic leisurewear in particular have - compared
anwhile youth styles and fashions are opening up a new children’s to other European countries - lesser but increasing importance
niche, with its own characteristics and inspirations. Influences on among British consumers.
Table 70: Share of outerwear by gender and type, 2004 and 2008
Source: Analysis based on Eurostat and Euromonitor – Note: *Included in casual wear
Source: ONS
The next table clearly shows that total expenditure per household
has increased with a CAGR of 2.8% over the last years. Expen-
diture on clothing and shoes only increased with a CAGR of 0.9%
over the same period, thus decreasing the share of clothing and
shoes expenditure per household.
7.3 Imports.
The UK is the second largest EU importer in terms of value. As
a logical consequence, the ‘Overseas Trade Statistics’ show that
imports for women's and men’s clothing continuously increased
over the last few years. Although the import level of women's wear
is higher than for men's wear, imports of men’s clothing seem to
have grown stronger.
Looking at the total figures in table 74 and table 75, the import
share of women‘s clothing in total imports is higher than that for
men mainly due to a generally higher consumption of women‘s
clothing. Overall outerwear clothing imports (knitted and woven)
have shrunk by -7.7% from 2006 to 2008. Extra EU imports shrunk
by -0.4% in the same time period, thus increasing its share from
69.8% in 2006 to 75.4% in 2008. This is also the main reason for
the constant depreciation in clothing price over the last years.
7.3.1 Outward Processing Trade (OPT) Table 76 gives a good survey on the performance of the 20 lea-
The United Kingdom does not have any kind of OPT activities ding extra-EU clothing suppliers to the UK. The share of clothing
according to Eurostat. imports from non-EU countries was 75.4% in 2008. In 2008, €
13.4 billion of outerwear was imported to the UK: € 10.1 billion
7.3.2 Largest suppliers of outerwear outerwear from extra-EU and € 3.3 billion from other EU member
According to Textil Forum, UK clothing production rose for the first states. While the imports from extra-EU decreased by -0.4% from
time in many years in 2007. It grew by 3% during 2007 and stood 2006 to 2008, the imports from EU countries declined significantly
at some € 5.4 billion. In 2008 employment in the clothing sector by almost 25%.
remained static at some 77’000. This was the first time that em-
ployment has not fallen, while in 2007 some 8’000 jobs were lost The three main import countries are China (€ 4.2 billion), Turkey (€
across the sector. 1.2 billion), Bangladesh (€ 0.9 billion).
However, it seems very likely that production and employment will Looking at the country shares in total import, China maintains the
fall in the coming years and imports will continue to rise. Several major part with 31.6% of total imports. Turkey also plays a signifi-
manufacturers of outerwear for men and/or women specialised cant role with € 1.2 billion and a share of 9.2%. These two coun-
themselves in corporate clothing, while other manufacturers shifted tries alone represent more than a third of total clothing imports.
from manufacturing private labels to own branded business.
Position Country 2006 [‘000 €] Change from 2007 [‘000 €] Change from 2008 [‘000 €]
2006 2007
1 China 3’104’783 12% 3’491’706 21% 4’233’931
2 Turkey 1’565’951 11% 1’733’457 -29% 1’232’455
3 Bangladesh 934’737 -3% 910’784 -1% 898’775
4 India 780’417 15% 896’957 -6% 840’286
5 Sri Lanka 453’725 1% 458’826 5% 479’894
6 Morocco 339’259 1% 344’258 -19% 280’435
7 Hong Kong 716’548 -26% 532’757 -57% 231’168
8 Vietnam 185’558 8% 200’830 11% 222’950
9 Indonesia 316’589 -13% 274’873 -20% 221’071
10 Pakistan 213’369 3% 219’739 -3% 212’762
11 Mauritius 190’687 2% 195’140 -13% 169’267
12 Egypt 131’667 5% 138’350 1% 139’087
Position Country 2006 [‘000 €] Change from 2007 [‘000 €] Change from 2008 [‘000 €]
2006 2007
13 Thailand 132’405 -9% 120’539 2% 123’265
14 Cambodia 121’053 0% 121’022 -2% 119’092
15 USA 97’737 4% 101’545 -9% 92’643
16 Tunisia 65’920 0% 66’035 2% 67’132
17 Malaysia 56’163 -4% 53’829 -10% 48’438
18 United Arab Emirates 66’271 -8% 60’791 -22% 47’625
19 Lao 42’311 -25% 31’567 25% 39’485
20 Philippines 61’171 -29% 43’560 -35% 28’346
Extra-EU 27 10’115’771 4% 10’483’559 -4% 10’074’580
Intra-EU 27 4’369’427 -3% 4’228’645 -22% 3’288’354
Total 14’485’198 2% 14’712’204 -9% 13’362’934
Source: Eurostat 2009
Position Country 2006 [‘000 €] Change from 2007 [‘000 €] Change from 2008 [‘000 €]
2006 2007
1 Italy 738’108 7% 791’131 -13% 686’370
2 Germany 508’640 -2% 500’066 -12% 438’308
3 France 572’712 -9% 520’384 -20% 416’824
4 Belgium 473’308 -19% 382’264 -12% 337’874
5 Romania 567’390 24% 704’426 -57% 302’231
6 Netherlands 276’771 -6% 260’715 3% 268’890
7 Spain 186’792 11% 206’940 7% 220’953
8 Portugal 296’902 -12% 260’454 -25% 194’574
9 Ireland 125’169 -8% 114’760 -15% 97’092
10 Denmark 72’452 8% 77’990 -9% 71’084
Intra-EU 27 4’369’427 -3% 4’228’645 -22% 3’288’354
Extra-EU 27 10’115’771 4% 10’483’559 -4% 10’074’580
Total 14’485’198 2% 14’712’204 -9% 13’362’934
Source: Eurostat 2009
The shrinking process of the smaller independent retailers has Market share: 37 % in 2008, Trend: increasing
come to a standstill and the market has stabilized at a low level.
More than 90% of independent retailers do not buy/import from 7.4.3.1.3 Department stores
overseas clothing suppliers but source abroad through their buying Among the clothing retailers, the department store MARKS &
associations. SPENCER (M&S) in particular suffered from fiercer competition
and profits that turned into losses at the end of the nineties. Howe-
Market share: 12% in 2008, Trend: decreasing ver, with a total sales of around £ 0.9 billion in 2008, the restruc-
turing efforts were successful. M&S has now reopened stores
7.4.3.1.2 Clothing multiples outside the UK but still concentrates on premium locations.
The structure of clothing retailing in the UK is one of the most
concentrated in the world. The largest player in the market is the The DEBENHAMS department stores had a sales turnover of £
Arcadia Group, which operates with more than 2'500 clothing mul- 2.3 billion in 2009. Other major department stores are: JOHN LE-
tiple stores and includes, as well as home service activities, the WIS, HOUSE OF FRASER, ALLDERS and SELFRIDGES in the
women’s chains Dorothy Perkins, Evans, Top Shop, Miss Selfridge, market, but MARKS & SPENCER still keeps the no. 1 position.
Wallis, Outfit the men's wear chains Burton and Top Man. The
Arcadia Group buys separately for each of its companies and each Market share: 16 % in 2008, Trend: Stable
product group and there are buyers responsible for each product
segment.
7.4.3.2.4 Importers / wholesalers
For most suppliers to the UK market, indirect selling is the first way
to go. UK wholesalers are infrequently mentioned, rarely visible,
and searching for them on the Internet proves to be very difficult.
Market research has shown that clothing wholesalers do not play
an important role in the UK. Some British retailers do buy with
the help of intermediary companies, and these wholesalers might
even be outside the UK.
The main trade fair for clothing in the UK is the London Fashion
Week. Two more fairs take place parallel to the London Fashion
Week: Pure and Margin London. All these fairs take place twice a
year (February and August).
Arcadia Group Ltd. Product range: Ladies, Bhs International Product range: Ladies,
Colegrave House men’s, childrenswear Euston House men’s, childrenswear
70 Berners Street Price segment: Mid-level 132 Hampstead Road Price segment: Mid-level
GB - London W1T 3NL Number of outlets: 2500 + GB - London NW1 2PS Number of outlets: over
Tel.: +44 – 0844 243 0000 420 international franchise Tel.: +44 – 207 – 2623288 100 in the UK
www.arcadiagroup.co.uk stores+ mail order business international@bhs.co.uk
customer.service@arcadia- Note: Arcadia Group is www.bhs.co.uk
group.co.uk privately owned by Taveta
Investments Ltd, the invest-
ment vehicle owned by Sir Bon Marché Ltd. Product range:
Philip Green and his family Jubilee Way Womenswear
Grange Moor Price segment:
TOP MAN Product range: Menswear GB - Wakefield WF4 4SJ Lower level
Colegrave House Price segment: Tel.: +44(0)1924 700100 Number of outlets: 350
70 Berners Street Lower to mid-level Fax: +44(0)1924 700249 (370 at the
GB - London W1T 3NL Number of outlets: info@bonmarche.co.uk end 2005)
Tel.: +44 – 207 – 636 8040 167 + mail order service www.bonmarche.co.uk Note: belongs to Peacock
European Customers: Note: belongs to ARCA- Group
+44 844 984 0264 DIA Group
customer.service@topman.com
www.topman.co.uk Greenwoods Ltd. Product range: Menswear
Greenwood House Price segment:
Albion Road, Greengates Upper level
TOP SHOP Product range: Womens-
GB - Bradford BD10 9TQ Number of outlets: 150
Colegrave House wear (young fashion)
Tel.: +44 – 127 – 4659650
70 Berners Street Price segment: Mid-level
Fax: +44 – 127 – 4659692
GB - London W1T 3NL Number of outlets:
info@gwmw.com
Tel.: +44 – 207 – 636 8040 288 + mail order service
www.gwmw.com
Fax: +44 – 207 – 927 2434 Note: belongs to ARCA-
www.topshop.co.uk DIA Group
customer.service@ H&M Hennes Ltd. Product range: Ladies,
TOPSHOP.COM 2nd Floor, Holden House men’s, childrenswear
57 Rathbone Place Price segment: lower level
GB - London W1T 1HE Number of outlets: 96
Wallis Fashion Group Ltd. Product range:
Tel.: +44 – 020 – 7323 2211 (expanding)
Colegrave House Womenswear
www.hm.com
70 Berners Street Price segment:
GB - London W1T 3NL Lower to mid-level
Tel.: +44 – 207 – 636 8040 Number of outlets: 289 +
customer.service@wallis.co.uk mail order service
Matalan Retail Ltd. Product range: Ladies,
www.wallis-fashion.com Note: belongs to ARCA-
Gillibrands Road men’s, childrenswear
DIA Group
Skelmersdale Price segment:
GB - WN8 9TB, West Lan- mid to upper level
WEW Group PLC Product range: Ladies, cashire Number of outlets: 190
296 Springfield Road men’s, childrenswear Tel.: +44 – 169 – 5552400
GB - Glasgow G40 3HZ Price segment: Mid-level www.matalan.co.uk
Tel.: +44 – 141 – 5567111 Number of outlets: 40
Fax: +44 – 141 – 5567262
Westbridge International Propeller UK Ltd. Great Universal Stores PLC Product range:
Group Ltd. A.M.C. House (GUS) Ladies’, men’s and
Westbridge House 1a Lower Park Universal House childrenswear
Holland Street, Hyson GB - London W3 6XA 251-256 Tottenham Court Price level:
Green Tel.: +44 – 208 – 896 8700 Road from Lower to upper
GB - Nottingham NG7 5DS GB - London W1A 1BZ level
Tel.: +44 – 115 – 978 2254 Tel.: +44 71 636 4080 Note: 12 different mail-
Fax: +44 – 115 942 0547 Fax: +44 71 631 3641 order lines
www.wbig.co.uk info@gusplc.com
www.gusplc.com
Alexon A Division of Alexon Product range: JJB Sports PLC (formerly Product range:
Int. Ltd. Sportswear (outdoor) Sports Division) Sportswear
Pitfield Price segment: Mid-level Martland Park, Challenge Way Price segment: Mid-level
Kiln Farm Number of outlets: 125 GB - Wigan WN5 0LD, Lan- Number of outlets: 82
GB – Milton Keynes MK 11 Note: belongs to Blacks cashire
3LW Leisure Group plc. Tel.: +44 – 194 – 2 2101 20
help@alexon.co.uk Fax: +44 – 194 – 2 210 124
www.alexon.co.uk www.jjbsports.com
8.1.1 Quality and standards in Switzerland and the EU • for dimensional stability – DIN 53894 (steaming), DIN 54311
The application of the European Norms (EN) in the 27 EU and the (fusing), ISO 3759/5077/6330 (washing/tumbling), ISO 3175 (dry
4 EFTA countries (including Switzerland) is the basis of a liberal cleaning)
intra-European trade and is valid in all 31 countries (more details:
www.cenorm.be). • for physical properties – ISO 5081 (tensile strength strip), ISO
5082 (tensile strength grab), ISO 9290 (tear strength), BS 3320
However, there are no general EU or Swiss standards for (seam slippage), EN 22313 (abrasion resistance), ISO 9876
garments. The rule is that importers in EU countries as well as (crease tendency/recovery), BS 5811 (pilling tendency), SIS
in Switzerland generally fulfil the minimum quality requirements 650047 (fibre penetration), EN 24920 (spray test) etc.
regarding material and making. The technical committee of the Eu-
ropean Apparel and Textile Confederation (Euratex) has published • for colour-fastness to washing, light, water and other external
an example of recommendations for manufacturers of knitted and influences - ISO 105
woven clothing. Within these recommendations the Euratex, where
Switzerland and many of the EU 27 countries hold a membership Although the EU attempts to activate free trade based on the
makes a difference between: harmonization of product requirements, each EU member state
and Switzerland has its own national market for apparel with its re-
• Recommendations concerning the characteristics of product spective requirements concerning quality, type of clothing, colour,
which could be detected by an experienced person without aid fabric, size etc.
of instruments in general use. A fault is located if the irregularity
is evident in the fabrics as it was delivered or in the final product Swiss norms are progressively disappearing due to the appea-
rance of international norms. Following requirements inherent to
• Recommendations concerning the characteristics of fabrics, globalisation, Swiss industry has changed over to international
which could be only recovered with the help of appropriate standards over the last twenty years. In order to counteract pos-
equipment. Description of each characteristic includes definition, sible discrimination against the Swiss clothing industry because
testing method, minimum quality standards and (if necessary) of the country’s non-membership in the EU, Switzerland has
possible allowable tolerances compared with measurements of accepted various EU-norms and references within the framework
the sample. of national legislation.
Testing methods for clothing are usually based on the ISO 8.1.2 Packaging, size marking and labelling
standards (www.iso.ch) or they can also suit the requirements of Packaging
European norms (EN) or national standards of the EU member Care must be given to the packaging of products if one intends
states (such as DIN, SIS, BS). ISO is made up of its members. to export to EU countries and Switzerland. Packaging must be
A member body of ISO is the national body ‘most representative travel-steady, it must protect the product against environmental
of standardization in its country’. Only one such body for each influences, theft, rough handling etc.
country is accepted for membership of ISO. Member bodies are
entitled to participate and exercise full voting rights on any techni- As well as these basic demands, some importers may have spe-
cal committee and policy committee of ISO. The member body of cific demands concerning packaging, such as printing information
ISO in Switzerland is Swiss Association for Standardization (SNV) about the order on the boxes (order number, quantity, product
(more details can be taken from www.snv.ch). ISO norms are also number, product description etc.). Some materials like PVC are
applied in Switzerland. The major standards for quality and grading less popular or even forbidden in some countries because of en-
standards in the EU and Switzerland are the following: vironmental issues, and exporters should discuss this matter with
potential clients and include the cost of the special price in their
wholesale price, if required.
The dispose of waste is increasingly difficult and expensive in New legislation about wood packaging has recently been introdu-
Europe. In principle, the importer is held responsible for disposal ced. More detailed information about packaging techniques and
of the packaging waste for all goods from outside the EU. It is the use of packaging materials can be found on the website of ITC
therefore crucial, when planning exports to the EU, to take the pa- (http://www.intracen.org).
ckaging of your products (both sales packaging and transport pa-
ckaging) into consideration. To fulfil the requirements of the target Size
market, clear communication with the importer about packaging is The following body measurements are used: body length, chest
highly recommended. size and hip size. These three basic measurements determine the
fitting of the garments. The following sizes are similar in Germany,
the Netherlands and Austria.
Table 82: Size table for men's outerwear except trousers and jeans
Character sizes XXS XS S M L XL XXL XXXL
Figure size 44 46 48 50 52 54 56 58
Chest width 86-89 90-93 94-97 98-101 102-105 106-109 110-113 114-117
Waist size 74-77 78-81 82-85 86-89 90-94 95-99 100-104 105-109
Hip girth 89-92 93-96 97-100 101-104 105-108 109-112 113-116 117-120
Jeans sizes
Jeans are sold internationally in inch sizes. They are read as
follows: The first number refers to the girth of the waist and the
second to the inside leg seam (inseam). Both are expressed in
inches.
Germany has a specific system for the men’s sizes, which are
subdivided into three groups:
• Standard sizes: 44 46 48 50 52 54 56 58 60 62
• Large sizes (shorter than standard sizes and wider at the hip):
24 25 26
Chest 40 42 44 46 48 50 52 54 55 56
Waist 40 42 44 46 48 49 50 51 52 53
Hips 41 43 45 47 49 51 53 55 57 59
Arm length 18 20 22 24 26 28 30 32.3 34.6 36.9
Inside leg length 16 19 22 25 28 31 34 37 40.6 44.2
Boys' wear
Height 110 116 122 128 134 140 146 152 158 164 170 176 182 188 194
Chetst 58 59 60 62 64 67 70 73 77 81 85 88 91 94 97
Waist 54 55 56 57 59 61 63 65 68 71 74 77 80 83 86
Hips 59 61 63 65 68 71 74 77 81 85 89 93 95 98 101
Arm length 39.1 41.4 43.7 46 48.3 50.6 52.5 55.3 57.5 60 62.5 65 67 69 71
Inside leg length 47.5 51 54.5 58 61.5 65 68 71 74 77 80 83 86 89 92
Neck 28 28.5 29.5 30.5 31.5 32.5 33.5 34.5 35.5 36.5 37.5 38 38.5 39 39.5
circumference
Table 87: Girls' wear [cm]
Girls' wear
Height 110 116 122 128 134 140 146 152 158 164 170 176 182 188
Chest 58 59 60 62 64 67 71 75 79 83 86 89 92 95
Waist 54 55 56 57 59 61 63 65 67 69 71 73 75 77
Hips 61 63 65 67 70 73 77 81 85 89 93 96 99 102
Arm length 39.1 41.4 43.7 46 48.3 50.6 52.8 55 57.3 59.5 61.5 63.5 65.5 67.5
Inside leg 47.5 51 55 59 63 67 70 72.5 75 77.5 80 82.5 85 87.5
length
Neck 28 28.5 29 29.5 30 30.7 31.5 32.2 33.3 33.7 34.5 35.5 36.5 37.5
circumference
- Do not wash
Do not iron
No wet-cleaning possible
Wet-cleaning possible
Tumble drying
Two dots for all cotton and linen articles, one dot for all other com-
Bleaching positions. Care should be taken that articles are finished properly
to prevent excessive shrinkage. This should be tested.
Table 93: Bleaching labelling symbols (according to ISO 3758) Note: the ‘weakest’ fibre determines the selection of the symbols in
blended materials.
The empty triangle means that all
bleaching processes are allowed
Ecolabels
In the late nineties and at the beginning of the millennium, various
competing ecolabels were popular all over Europe. In the be-
The triangle with the two lines means that
only oxygen based bleach and no chloride ginning, they were mainly used for under- and baby wear. Many
based bleach is allowed labels have now disappeared and the approach to the whole ‘eco-
logical’ issue about textiles and clothing is broader and considers
The crossed black triangle means that the whole supply-chain from the crop over the production process
bleaching is not possible up to the delivery into the shop. Social and environmental aspects
(normal washing powder allowed)
play an important role (cf. chapter on ‘Trade Related Environmen-
tal and Social Issues’).
Below is some useful general information how to use the care
labels and what to write on them: Currently, the German/Swiss Oeko-Tex Standard 100 is widely
accepted in the EU countries and Switzerland as well.
Care Labelling – General Recommendations for Exporters Öko-Tex 100
The standard specifies four article classes: The designation is restricted to one year, after which the product
will need to undergo new testing. The Oeko-Tex Standard 100 as
• Articles for babies well as the Oeko-Tex 100 plus label have achieved a worldwide
acceptance with an increased number of registered companies
• Articles in direct contact with skin also in Asia and South America.
The Oeko-Tex 100 Standard comprehensively addresses the 8.1.3 Trade related environmental and social issues
Human Ecology component of textile products. It evaluates and Apart from legal requirements, nowadays producers are being
screens for any harmful substances present within processed tex- confronted more and more with additional requirements. EU and
tiles intended to come into contact with consumers. The advantage Swiss buyers want more information from producers, for example
for clothing exporters of applying for Oeko-Tex Standard 100 is about the social conditions at their production sites or environmen-
that this system is built up in a modular way and enables reliable tally sound production. Many companies are now, before signing
The ban on the use of PFOS in the production process does Occasionally, consumers or citizens form pressure groups (some-
not apply to producers from outside EU. Depending on national times even demonstrating on the streets) to force government to
legislation, it is possible for producers to use PFOS in their country put an end to business practices they find unethical or anti-social.
of origin and export their products to the EU. However producers Such ‘consumerist movements’ succeeded in setting government
from outside the EU will have to comply with the limits regarding rules; the SA 8000 (Social Accountability) is an example of such.
the marketing of PFOS and products containing PFOS mentioned The fact that consumers don’t accept certain practices demands
above. that suppliers adopt new processes or materials.
Its main characteristics are: • Gulf Co-operation Council (Bahrain, Kuwait, Oman,
Qatar, Saudi Arabia, United Arab Emirates)
the partnership principle, the contractual nature of the relationship,
and the combination of aid, trade and political aspects, together Finalised negotiations 2008
with its long-term perspective (5 years for Lomé I, II, and III, and
ten for Lomé IV). Products originating in the ACP countries can be • Peru
imported without duties and quotas, when a ‘Movement Certificate
EUR.1’ is filled in by the exporter and issued by the competent Currently negotiating agreements
authorities, such as the local Chamber of Commerce. Tariff contin-
gents and tariff ceilings no longer exist. • Algeria
• Hong Kong
Preferential duty regimes under Free Trade Agreements (FTAs) • India
The EU also has many free trade agreements with partners in the • Thailand
region (the central European countries, the Mediterranean coun-
tries) and beyond (Mexico, Chile). FTAs now increasingly involve Declarations on Cooperation
provisions affecting non-tariff measures and regulatory issues
such as provisions on trade facilitation and rule-making in areas • Albania
such as investment, intellectual property, government procure- • Mercosur (Brazil, Argentina, Uruguay, Paraguay)
ment, technical standards and SPS issues. • Mongolia
• Serbia
The following Free Trade Agreement is also valid for Switzerland: • Ukraine
Custom tariff
Customs duties
Although Switzerland has been a member of the Schengen Area
since the end of 2008, it is not part of the European Customs Uni-
on. As a result, customs controls remain in place. The most impor-
tant document for customs clearance is the customs declaration,
which must be accompanied by the exporter’s invoice (indicating
the weight) and confirmation of origin. A certificate of origin is
required if one wishes to benefit from preferential duty rates or if
the goods are to be re-exported.
Centralvereinigung Am Weidenbaum 1 A
Deutscher Wirtschafts- D - 10117 Berlin
verbände Für Handels- Tel.: +49 – 30 – 726 25600
vermittlung und Vertrieb Fax: +49 – 30 – 726 25699
(CDH) www.cdh.de
centralvereinigung@cdh.de
National Association of
Trade Agents
Swiss Fashion Stores CH - 3073 Gümlingen British Agents Register 5A Chelttenham Mount
Tel.: +41-31-384 77 04 Harrogate,
Association of Fashion Fax: +41-31-384 76 96 North Yorkshire
retailers www.swiss-fashion-stores.ch GB - HG1 1DW
c/o KPMG Fides - Hofgut office@swiss-fashion-stores.ch Tel.: +44-1423-560608/9
Fax: +44-1423-561204
Swiss Retail Federation Marktgasse 50 www.agentsregister.com
CH - 3000 Bern 7 info@agentsregister.com
Federation of retailers Tel.: +41-31-312 40 40
Fax: +41-31-312 40 41 British Fashion Council Somerset House, South Wing
www.swiss-retail.ch Strand, London, WC2R 1LA
info@swiss-retail.ch Tel.: +44 - 20-7759 1999
www.britishfashioncouncil.com
VSF – Verband Frohburgstr. 98 info@britishfashioncouncil.com
Schweizerischer CH - 8006 Zürich
Filialunternehmen Tel.: +41-44-363 14 00 British Menswear Guild 5 Portland Place
Fax: +41-44-363 15 25 GB - London, W1B 1PW
Federation of Swiss Chain www.vsf-schweiz.ch Tel.: +44-20-7580 8783
Stores - vsf@ku-law.ch Fax: +44-20-7436 8833
c/o www.british-menswear-guild.
Advokaturbüro Utzinger co.uk
director@british-mens-wearguild.
VSIG – Vereinigung des Güterstr. 78 co.uk
Schweizer Import- und CH - 4010 Basel
Grosshandels Tel.: +41-61-228 90 30 British shops and store Middleton House
Fax: +41-61-228 90 39 Association Ltd. (Bssa) 2 Main Road –
Association of Swiss www.vsig.ch Middleton Cheney
Importers and info@vsig.ch GB - Banbury – Oxon OX17 2TN
Wholesalers Tel.: +44-1295-712277
Fax: +44-1295-711665
VSV – Verband des General Wille-Strasse 144 www.british-shops.co.uk
Schweizerischen 8706 Meilen info@bssa.co.uk
Versandhandels Tel.: +41-58 - 310 07 17
Fax: +41-58-310 07 18
Federation of Swiss Mail www.vsv-versandhandel.ch
Order Companies info@vsv-versandhandel.ch
9.2.2 Germany
Messeplatz 1
Première Vision – Paris Le Britannia – Batiment A20 Kind + Jugend – Cologne D - 50679 Köln
Bld. Eugène Deruelle
Tel.: +49 – 221 – 821 – 0
(Textile Fabrics Fair) F - 69432 Lyon Cedex 3
Fax: +49 – 221 – 821 – 2574
organised by: Tel.: +33 – 4 – 7260 6500
www.koelnmesse.de
Première Vision Fax: +33 – 4 – 7260 6509
info@koelnmesse.de
www.premierevision.fr
info@premierevision.fr
Münzstrasse 13
Bread And Butter
D - 10178 Berlin
Kid’s Fashion 999 chée d’Alsemberg
Service Hotline
– Mode Enfantine B - 1180 Brussels Trade fair for selected brands
(Accreditation + Tickets):
Tel.: +32 – 2 – 376 5747 in Berlin and Barcelona
+49 – 30 – 2000 – 370
Kids Fahion Fairs in Paris Fax: +32 – 2 – 332 0880 Bread & Butter GmbH Head-
Tel.: +49 – 30 – 400 – 44 – 0
and Brussels www.kidsfashionfairs.com quarter:
(Headquarter)
organized by Kid’s Fashion visitorskids@bff.be
Fax: +49 – 30 – 400 – 44 – 101
Mode www.breadandbutter.com
Enfantine SA/NV info@breadandbutter.com
5, rue Caumartin
Salon du Pret à Porter F - 75009 Paris
Paris Tel.: +33 – 1 – 4494 7000
Fax: +33 – 1 – 4494
French association of Prêt 7002/7004
à Porter www.pretparis.com
info@pretparis.com
9.3.4 Spain
9.4.2 Germany
9.4.3 Italy
9.4.5 Switzerland
9.4.6 United Kingdom
CBI – Centrum Tot Bevor- WTC-Beurs Building, CBI – Centrum Tot WTC-Beurs Building, Beursplein
dering Van De Import Uit Beursplein 37 Bevordering Van De 37
Ontwikkelingslanden P.O.Box 30009 Import Uit Ontwikke- P.O.Box 30009
NL - 3001 DA Rotterdam lingslanden NL - 3001 DA Rotterdam
Centre for the Promotion Tel.: +31 – 10 – 2013 434 Tel.: +31 – 10 – 2013 434
of Imports from Developing Fax: +31 – 10 – 4114 081 Centre for the Promotion Fax: +31 – 10 – 4114 081
Countries www.cbi.nl, cbi@cbi.nl of Imports from Develo- www.cbi.nl, cbi@cbi.nl
ping Countries www.cbi-accessguide
DIPO Børsen, Slotsholmsgade, (internet guide to European wide
DK - 1217 Copenhagen K ecological questions)
Danish Import Promotion Tel.: +45 3374 6000
Office Boersen Fax: +45 3374 6080 Commission Rue de la Loi 200
www.dipo.eu Of The European B - 1049 Brussels
dipp@danskerhverv.com Communities Tel.: +32 – 2 – 2990344
Fax: +32 – 2 – 2990313
GTZ - Gesellschaft für Dag-Hammerskjöld-Weg www.europa.eu
technische Zusammen- 1-5
arbeit D - 65726 Eschborn Forschungsinstitut Schloß Hohenstein
Tel: +49 – 6196 – 79 0 Hohenstein D - 74357 Bönningheim
German Organisation for Fax: +49 – 6196 – 79 1115 Tel.: +49 – 7143 – 2710
Technical Cooperation www.gtz.de (measurement tables Fax: +49 – 7143 – 27151
info@gtz.de and ecological issues) www.hohenstein.de
info@hohenstein.de
International Trade Cenre Palais des Nations
Unctad/Wto (ITC) CH - 1211 Geneva 10 Institut Fresenius Im Maisel 14
Tel : +41 – 22 – 730 0111 Gruppe D - 65232 Taunusstein-Neuhof
Fax : +41 – 22 – 733 4439 Tel.: +49 – 6128 – 7440
www.intracen.org (product testing) www.fresenius.com
itcreg@intracen.org info@fresenius.com
NORAD Ruselokkveien 26
Postbox 8034
Norwegian Agency for N - 0030 Oslo
Development Tel.: +47 – 22 – 24 20 30
Cooperation Fax: +47 – 22 – 24 20 31
www.norad.no
firmapost@norad.no
SIDA Sweavagen 20
Postbox 3144
Swedish International S - 10525 Stockholm
Development Tel.: +46 – 8 – 698 5000
Cooperation Agency Fax: +46 – 8 – 208864
www.sida.se
info@sida.se
9.7.4 Italy 9.7.6 Switzerland
Market Study Clothing Via dei Piatti, 11 Swiss Association For Bürglistr. 29
Sector Databank I - 20123 Milano Standardization (SNV) CH - 8400 Winterthur
Tel.: +39 (0) – 2-80 95 56 Tel.: +41-52-224 54 54
Sede Centrale Fax: +39 (0) – 2-80 56 495 Fax: +41-52-224 54 74
www.databank.it www.snv.ch
info@databank.it info@snv.ch
(Dirección de Relaciones
Institucionales y Publicaci-
ones)