OUTER

WEAR
Overview and Marketing Guide
on Switzerland and the
Major Markets in the European Union
IMPRINT
Publisher
SIPPO
Swiss Import Promotion Programme
Stampfenbachstrasse 85, P.O. Box 492
CH-8035 Zurich, Switzerland
Tel : +41 44 365 52 00
Fax: +41 44 365 52 02
info@sippo.ch
www.sippo.ch
Authors
Jrgen Pack, J.P. Consulting
Brckner Mauspfad 623
D-511109 Cologne, Germany
Eve Bchtold, SIPPO
Revision
Corinne Bammerlin de Castro
Traductora Pblica Juramentada
Jr. Bolivar 161, of. 3A
Miraflores - Lima - Peru
Layout
Beate Rttiger, Grafik Design
In der Klinge 6
D-72127 Kusterdingen, Germany
Edition
2nd Edition, Zurich, March 2006
Disclaimer
The information provided in this survey
is believed to be accurate at the time of
writing. It is, however, passed on to the
reader without any responsibility on the
part of SIPPO or the authors and the
reader still have the obligation to comply
with all applicable legislation.
Neither the publishers nor the authors
of this publication make any warranty,
expressed or implied, concerning the
accuracy of the information presented,
and will not be liable for injury or claims
pertaining to the use of this publication
or of the information contained therein.
No obligation is assumed for updating or
amending this publication for any reason,
whether new or contrary information
or changes in legislation, regulation or
jurisdiction that should arise.
2
 C O N T E N T S

INTRODUCTION
BACKGROUND AND METHODOLOGY OF THE MARKET SURVEY 5
PRODUCT GROUPS ANALYSED 6

MARKET SURVEY OF THE 10-EU NEW MEMBER

COUNTRIES 7
CLOTHING CONSUMPTION 8
POLAND 10
CZECH REPUBLIC 11
HUNGARY 12
MARKETING AND DISTRIBUTION 12

1 FRANCE
1.1 GENERAL ECONOMIC SITUATION 14
1.2 THE MARKET FOR OUTERWEAR 15
1.3 IMPORTS 22
1.4 TRADE STRUCTURE 29
1.5 FRENCH FASHION TRADE FAIRS 36
1.6 LIST OF MAJOR BUYERS IN FRANCE 38

2 GERMANY
2.1 GENERAL ECONOMIC SITUATION 50
2.2 THE MARKET FOR OUTERWEAR 51
2.3 IMPORTS 59
2.4 TRADE STRUCTURE 65
2.5 GERMAN FASHION TRADE FAIRS 73
2.6 LIST OF MAJOR BUYERS IN GERMANY 76

3 I T A LY
3.1 GENERAL ECONOMIC SITUATION 88
3.2 THE MARKET FOR OUTERWEAR 89
3.3 IMPORTS 99
3.4 TRADE STRUCTURE 106
3.5 ITALIAN FASHION TRADE FAIRS 114
3.6 LIST OF MAJOR BUYERS IN ITALY 116

3
 C O N T E N T S

4 SPAIN
4.1 GENERAL ECONOMIC SITUATION 125
4.2 THE MARKET FOR OUTERWEAR 126
4.3 IMPORTS 134
4.4 TRADE STRUCTURE 141
4.5 SPANISH FASHION TRADE FAIRS 151
4.6 LIST OF MAJOR BUYERS IN SPAIN 153

5 SWITZERLAND
5.1 GENERAL ECONOMIC SITUATION 160
5.2 THE MARKET FOR OUTERWEAR 162
5.3 IMPORTS 170
5.4 TRADE STRUCTURE 173
5.5 SWISS FASHION TRADE FAIRS 186
5.6 LIST OF MAJOR BUYERS IN SWITZERLAND 188

6 UNITED KINGDOM
6.1 GENERAL ECONOMIC SITUATION 203
6.2 THE MARKET FOR OUTERWEAR 203
6.3 IMPORTS 212
6.4 TRADE STRUCTURE 218
6.5 UK FASHION TRADE FAIRS 227
6.6 LIST OF MAJOR BUYERS IN GREAT BRITAIN 229

4
I N T R O D U C T I O N
BACKGROUND AND METHO-
DOLOGY OF THE MARKET
SURVEY
This survey is designed for clot-
hing manufacturers from foreign
countries wishing to access the
European market. The main
objective of this compendium
about Switzerland and the five
major EU clothing markets is to
provide first hand market informa-
tion about the respective target
markets for the exporter from
abroad. Secondly, a comprehen-
sive list of addresses helps to gain
more detailed information about
the target market and to establish
first contacts.
The handbook includes facts and
key data about consumption,
imports, trade structure, role of
trade fairs and price develop-
ments in the target markets. The
study is completed by a detailed
list of useful addresses at
European level about trade pro-
motion organisations, trade press,
clothing fairs, industry federations,
centres for ecological issues etc.
as well as a detailed list of potenti-
al distribution partners for each of
the six countries analysed.
Furthermore, statistical market
information on consumption,
imports, information about trade
structure as well as prices and
margins are provided.
The countries selected for the sur-
vey are Switzerland, Germany,
France, Italy, Great Britain and
Spain. The information collected for
this study is the latest available and
should be used by the exporter as
a basis for further individual market
research to fully design the indivi-
dual market entry strategy and to
establish first contacts.
The main sources of information
for this study were evaluation of
press material, research on inter-
net, market reports, Eurostat,
information from other trade pro-
motion organisations, Chambers
of Commerce, importers and/or
textile associations a.o.m. The
sources are mentioned in the
respective chapters. All contact
addresses listed in the
Appendices have been checked
and updated, additional informati-
on about the clothing retailers and
other potential partners with pro-
ducts, number of outlets etc. is
given for a more specific use of
the contacts.
Additionally, app. 20 personal
interviews with importers, experts
etc. per country analysed have
been considered for this survey.
These comments have been con-
sidered mainly in the chapter con-
sumption trends, role of trade fairs
and outlook on future garment
imports.
5
PRODUCT GROUPS
ANALYSED
This market survey covers knitted
and woven outerwear and sports-
wear for men, women and chil-
dren. It must be considered that in
the official statistics no difference
is made between adults and chil-
dren, or in end use, such as con-
ventional, casual or leisure clot-
hing. In the analysis of the clothing
imports, the differentiation bet-
ween sexes has been made as far
as possible.
Underwear, nightwear, hosiery,
swimwear, work wear as well as
clothing accessories and home
textiles have not been covered.
Within the EU statistical system
products are specified by the
Harmonized Commodity Des-
cription and Coding System (HS).
These numbers clearly identify a
specific product. The product
categories covered by this study
are:
- HS 61.01 until 61.14
(knitted or crocheted)
- HS 62.01 until 62.11
(woven)
A more detailed description of the
product groups analysed can be
taken from the import statistics in
all countries analysed.
Switzerland has a national coding
system for the registration of
imports and exports, which never-
theless is based on the HS code
system of the European Union.
Thus, the HS codes referred to in
this study are also applicable for
the Swiss market.
6
Market Survey of the 10-EU
New Member Countries
The European Union (EU), which
had consisted of 15 member
states since 1st of January 1995,
was enlarged by ten new joining
countries in May 2004. They are
the Czech Republic, Estonia,
Slovakia, Cyprus, Latvia, Lithuania,
Malta, Slovenia, Poland and
Hungary. Negotiations are in pro-
gress with a number of other can-
didate member states such as
Romania, Bulgaria and Turkey.

Table: Population and GDP of EU-10 countries (data for 2004)

Countries Population Age 0-14 Age 15-64 GDP GDP per

million % % billion capita
2003 EU-
25 = 100

New (10) EU countries 74.1 16.7 69.2 477 60

Poland 38.2 17.2 69.8 196 46

Czech Republic 10.2 15.2 70.9 87 69

Hungary 10.1 15.9 68.6 81 61

Slovakia 5.4 17.6 71.0 33 51

Lithuania 3.4 17.7 67.3 18 46

Latvia 2.3 15.4 68.5 11 42

Slovenia 1.4 14.6 70.4 26 77

Estonia 1.4 16.6 67.6 9 48

Cyprus 0.7 20.0 68.1 12 83

Malta 0.4 18.2 68.8 4 73

Source: Eurostat, 2005

7
Clothing Consumption
In 2004, consumer clothing
expenditure in the EU-10 coun-
tries was valued at 11.1 billion,
which is equivalent to only 4.3
percent of the EU-15 consumpti-
on of 261.3 billion in that year.
These figures show that the abso-
lute size of the clothing markets of
the 10 new EU members is small
compared to the old EU-15
countries. However, due to the
impressive growth rates in con-
sumption, some key data and initi-
al recommendations for apparel
manufacturers from developing
and emerging markets shall be
given below.
Looking at the per capita con-
sumption, the picture is similar: In
the EU-10 in 2004 it averaged
151, much less than the 682
average in the EU-15 markets. It
should be noted that this figure
varies from country to country,
ranging from an average of 123
in Slovakia to 397 in Slovenia.
There will also be differences bet-
ween cities and the countryside.
Almost all countries have a large
clothing manufacturing industry,
which is primarily dedicated to
exports to other EU countries and
most of the new EU countries still
have a small domestic market.
More details can be taken from
the table below.

When comparing the consumpti-

on in the EU-10 and EU-25 coun-
try blocks, the results are as fol-
lows: Consumption of clothing in
the EU-25 grew by 5 percent
during the period 2001-2004
almost 2 percent of which was in
2003-2004 and 82 percent of
which was outerwear. Clothing
consumption in the ten new EU
countries (since 1 May 2004)
showed a much stronger increase
(26% during the period 2001-
2004) than the EU-15 countries
(5%), but total consumption
remained rather low.

8
Table: Consumer clothing expenditure in the EU-25 countries,
2000-2004 (in million)

Country 2001 2002 2003 2004 Per capita Outerwear

consumption consumption
in 2004 (in ) in 2004

EU-15 250,379 253,302 256,688 261,257 682 215,345

countries

Poland 4,019 4,411 4,836 5,054 132 4,074

Czech Republic 1,498 1,640 1,756 1,842 181 1,490

Hungary 1,104 1,259 1,421 1,471 146 1,148

Slovakia 585 598 628 662 123 585

Slovenia 565 613 721 794 397 627

Estonia 137 150 166 181 140 146

Latvia 312 329 362 401 174 322

Lithuania 378 401 418 445 131 358

Cyprus 239 242 248 260 371 196

Malta 75 79 82 83 208 65

EU-10 8,912 9,722 10,638 11,193 151 9,011

countries

EU-25 259,291 263,024 267,326 272,450 600 224,356

countries

Sources: Euromonitor, Retail Intelligence, Several national statistics, CBI, 2005

In terms of future potential, it is Central and Eastern Europe

clear that the new EU member
states, in particular the Czech
Republic, Hungary, Slovenia and
Poland, offer greater scope for
market growth as incomes and
spending patterns approach
European norms, although this
may still take many years.
A general look at the ten new EU
countries shows that Poland
represents 45% of total con-
sumption, despite a very low per
capita consumption of 132. It is
expected that those markets in
where the biggest difference bet-
ween supply and demand existed
following reform of the political
system, will see positive growth.
Saturation point has not yet been
reached in these markets. 43 per-
cent of the total population of the
accession countries resides in
Poland. Three countries: Poland,
the Czech Republic and Hungary
accounted for almost 75 percent
of EU-10 consumption in 2004.
These countries will be briefly
highlighted below.
9
Poland
According to the Austrian based
Regio Plan Consulting in Vienna,
the annual per capita consumpti-
on for clothing in 2004 in Poland
was as follows: Polish women
invested 105 per year whereas
the men only spent 75. In com-
parison, the Austrian consumer
spends 655 (women) and 450
(men). These figures illustrate that
the sales potential in markets like
Poland is increasing, but still from
a very low level.
According to CBI research, the
weak spending power of Polish
consumers can be illustrated by
the fact that 85-90 percent usual-
ly consider price as a very impor-
tant factor when deciding to pur-
chase clothing. Only 10-15 per-
cent of Poles are guided by genui-
ne needs when shopping can
afford premium priced products.
However, the significance of
brand-name products or modern
eye-catching designs is increa-
sing and consumers want not just
functionality but begin to demand

Figure 2-1: Age structure of the French population by sex, 2000

Consumption Figures 2002 2003 2004 2005 (f) 2006 (f)

Total consumption 123.6 125.1 127.8 134.1 142.9

Of which: Clothing 4.4 4.8 5.1 5.3 5.6

In % of total consumption 3.6% 3.8% 4.0% 4.0% 4.0%

Of which: Outerwear 3.5 3.9 4.1 4.3 4.5

In % of total clothing 80.1% 80.3% 80.4% 80.5% 80.5%

expenditure

Source: Eurostat and CBI, 2005 *in billion at constant 2002 prices - (f) = forecasts

With an increasing population and quality and style. Younger people

an economy which was also
affected by the economic recessi-
on, the Polish GDP nevertheless
grew by 3.8 percent in 2003 to
185 billion at market prices.
Further growth is forecast to
245 billion in 2006. The Polish
apparel market was worth 5.1
billion in 2004, of which 80% was
for outerwear. However, thanks
to the economic climate and
consumer confidence in the EU,
demand is rising.
with higher incomes are more
receptive to the latest trends and
innovations in fashion. Increasing
imports from Asian countries are
usually much cheaper than dome-
stic products and for that reason
very competitive in Poland, where
low prices still considerably influ-
ence buying decisions.
10
Czech Republic Compared to the EU-15 countries,
the purchasing frequency for
According to a GFK Market Study jeans in the Czech Republic is very
of 2005 until 2015, the per capita low. One explanation might be
income of the Czech population that the consumption patterns for
will increase from 70% of the EU- clothing are more traditional and
25 average to 84%. In the capital e.g. the wearing of jeans in the
Prague, even today 50% of the office is not as common as in the
population have an income above Western part of the EU.
the EU-25 average. The shares
for clothing spending can be split Looking at the preferred distributi-
up as follows (consumers > 15 on channels, 30% of the Czech
years of age): consumers buy their clothing in
their regular shop, normally the
46% small spenders boutique or specialised shop in
town. The major clothing shops
33% medium spenders
are Kenvelo, Orsay and Benetton.
21% big spenders
(>200 annually) Compared to Poland, per capita
expenditure for clothing is slightly
15% very big spenders higher in Czech Republic: 163
(>500 annually) for women and 95 for men (all
figures for 2004. Source:
Regioplan Consulting Vienna).
For the group of big spenders, Due to a relatively high population
brands, quality and a large choice and its geographical position, the
play a major role when selecting Czech Republic has been favou-
the type of shop for the clothing rable to foreign investors. It was
purchase. the first East European country to
abolish central planning and has
The buying frequency, namely 3 implemented rapid privatisation of
times per year, for the most factories and companies.
favourable product groups is as
follows: The rapid growth of foreign chains
e.g. the British Tesco, the German
48% Casual wear Metro/Kaufhof Group, the French
Carrefour, the Dutch Ahold, stimu-
41% Underwear
lated retail sales, with most hyper-
28% Childrenswear markets also selling non-food
26% Shoes items such as clothing.

18% Active Sportswear

13% Jeans

11
Since 2000, the GDP has grown
by around 3 percent (at constant
prices) to reach 80 billion in
2003 and, according to Eurostat
forecasts, to 102 billion in 2006.
With a population of 10.2 million,
Czech clothing consumption was
worth 1,842 million in 2004, and
represented 16.5 percent of the
total by the accession countries.
According to other sources, the
Czech per capita consumption of
clothing was 181, among the
highest of the accession coun-
tries. Consumer expenditure is
forecast to increase by just over 2
percent each year in constant
value terms between 2005 and
2009.
Hungary
The third country profiled in this
survey has undergone some eco-
nomic turbulence especially in the
1990s. Hungary has traditionally
always been oriented more
towards the West and has had a
comparatively high standard of
living. After a tough period of
recession and high inflation rates,
Hungarian GDP started to grow
after 1999 by around 4 percent (at
constant prices), up to 73 billion
2003 and will grow further to 94
billion in 2006 (according to
Eurostat forecasts). Along with
the Czech Republic, Hungary also
created an open climate for
foreign investment and attracted
shopping mall developers and
large foreign chains.
The table Population and GDP of
10-EU countries above indicates
that clothing consumption by 10.1
million citizens in 2004 amounted
to 1,471 million, a share of 13 per-
cent of the EU-10 total. Growth in
the period 2001-2004 accounted
for 33 percent, an annual average
of 11 percent. This strong develop-
ment can primarily be attributed to
the increase in disposable inco-
me, which enabled many
Hungarians to increase their
spending on clothing items.
Growth rates are likely to slow
down in the coming years to an
annual growth of 6-7%.
The more affluent Hungarian
people in the urban areas have
become, as in other city areas in
the Central and Eastern European
countries, increasingly interested
in fashion. The larger West
European chains also play a major
role in the clothing retail scene.
Marketing and Distribution
Although playing a comparatively
small role in clothing imports at
present, the ten new EU mem-
bers are confronted with a strong
increase of clothing imports main-
ly from Asia which has lead to
often negative trade balances.
The local industry suffers from
these Asian imports and can not
always compensate the decrease
in national sales by increasing
exports, mainly to the EU-15.
12
Simultaneously, the Czech clot-
hing industry for example is
fighting against increasing pro-
duction costs. Salaries in apparel
production have been increasing
by approximately 2-3% annually
since 2003 (9 000 CZK (286 ) in
01/03 to 10 000 CZK (318 ) in
02/05). In the same period, the
number of employees in the
Czech apparel sector has been
reduced from 32,000 to 24,000.
As a consequence of these eco-
nomic developments, for apparel
manufacturers from developing
countries, there are generally
comparatively good sales chan-
ces in the ten new EU member
countries also in the coming 5-8
years. However, the distribution
structures are not so well develo-
ped and targetable as in the EU-
15 countries. Importers are there,
but difficult to identify, and quanti-
ties sold are much smaller.
A substantial part of the new EU
clothing markets is covered by the
large chains and stores from EU-
15 countries. Companies like
TESCO, Metro/Kaufhof, Carrefour
Karstadt, Benetton, H&M, C&A
etc. started their expansion activi-
ties immediately after the disrupti-
on of the former USSR and the
opening of the markets in the
early 1990s. Obviously, overseas
suppliers delivering to the large
European chains and supermar-
kets are already selling to the EU-
10 countries, although in an indi-
rect way.
A good sales opportunity for clot-
hing manufacturers from abroad
is participation in the leading trade
fair for Central and Eastern
European countries, the STYL
International Fashion Fair of
Fashion and Textiles, which takes
place twice annually (February
and August www.bvv.cz/styl) in
Brno Exhibition Centre. The
number of exhibitors in August
2005 was 682 firms from 23
countries. 16,030 visitors atten-
ded the fair. The STYL is connec-
ted with KABO, the international
fair for footwear and leatherwear
(www.bvv.cz/styl).
In the August 2005 show there
were exhibitors from Turkey,
China, India, Indonesia and
Pakistan. When talking about mar-
keting instruments to enter the
Central and Eastern European
apparel markets, the STYL
Fashion Fair definitely is a good
choice, probably by visiting the fair
first to get an impression of the
presentation and the (competing)
exhibitors.
13
Outerwear

FRANCE
1 FRANCE

1.1 GENERAL ECONOMIC At the beginning of 2006, the

SITUATION
According to INSEE, the French
National Institute of Statistics and
Economic Studies, the French
Gross National Product (GNP)
increased in 2004 by 2.3%, in
2003 by 0.8% and in 2002 by
1.2%. This was slightly above the
average growth rate of other eco-
French population is in quite a
despondent mood: first was the
vote against the new EU constitu-
tion; it is more or less dissatisfied
with the government; riots take
place in Paris suburbs; there are
large deficits in the state budget
and the social systems; there is a
continued high unemployment
rate and the economy is suffering

Figure 1-1: Development of the French unemployment rate over the past 5 years

10.2
10
9.8
9.6
% 9.4
9.2
9
8.8
8.6
8.4
2000 2001 2002 2003 2004 2005

Source: INSEE

nomies in Europe. With 2.2% in from decreasing competitiveness.

2004, the overall inflation was in All these factors have led to a high
line with the rates of other degree of uncertainty among the
European countries. consumers, resulting in a low con-
sumption rate.
A major problem for the French
economy is the unemployment
rate, which was 9.9% in 2004.
Although this rate has slightly
declined in 2005, it is still higher
than the average rate of 9.0% in
the European Union and much
higher than in Switzerland.

14
1.2 THE MARKET FOR
OUTERWEAR
1.2.1 Market size
In 2004, the market size of outer-
wear in France amounted to 18.2
billion , which is 78% of the total
clothing market. The French clot-
hing market is forecast to grow
steadily between 2004 and 2007
to reach a value of 33.6 billion ,
of which up to 28 billion
will be outerwear. France, which
accounts for 13% of the populati-
on of the 25-member EU, is the
fourth largest clothing market
behind Germany, Italy and the
United Kingdom.
Apparel imports, at 12.76 billion ,
are slightly higher than local pro-
duction at 11.63 billion . The sta-
tistics show a 25% increase in
import flow compared to 2001.
Local production increased by
13.3%, of which goods amoun-
ting to 6.19 billion are exported.
The share of exported French
production increased from
Table 1-1: Size of the French
outerwear market, 2003
in bn.
Import Market 12.76
Local Production 11.63
Exports 6.19
Total Market 18.20
Source: Ministry of Economy, Finance
and Industry , 2005
27.8% in 2001 to 53.2%, total
exports being twice as high as
three years previously (+116%).
Local production is focused on
womenswear. Consequently, the
share of imported outerwear for
women is low at about 51%. At
the same time, three times more
womenswear than menswear is
exported.
1.2.2 Market characteristics
French clothing, French design
and French labels have a long
tradition and a good reputation.
Clothing labels originating from
France are internationally consi-
dered to be fashionable and of
good quality. The internationali-
sed French expression haute
couture signals the worldwide
importance of French fashion
and French clothing brands.
Fashion is often associated with
French fashion design.
Compared to other EU countries,
France is said to be dominated
by price-conscious consumers.
The reasons for this can be found
in an unemployment rate of
around 10% and a relatively low
economic growth rate. On the
other hand, the French are said
to be very fashion-conscious too.
However, spontaneous purcha-
ses are comparatively rare
because of price sensitivity.
There is a high share of indepen-
dent retailers in France that are
run as smaller boutiques all over
the country.
15
However, the other extreme is
also seen in the retail market: the
so called centrales dachat, huge
supermarkets (Carrefour, E.
Leclerc, Intermarch etc.) and
clothing chains like Promod,
Pimkie, Kookai etc., have streng-
thened their in the French clothing
market. In this scenario it is obvio-
us that the French clothing retail
system is very fragmented. 91% of
the total turnover (10 billion ) is
carried out by companies with 20
to 250 employees. Altogether, the
industry employs 60,000 people.
France has the largest network of
outlets and franchise systems
operated by clothing manufactu-
rers within Europe. Both systems,
franchising and own outlets,
merge with each other and
cooperate very closely.
1.2.3 Demographic Characteristics
As Figure 1-2 shows, in the long-
term the birth rate declines and
thus the young population in
France shrinks. The French popu-
lation (60.7 million inhabitants in
total) is, as in other European
countries, getting older on avera-
ge. The age groups from 29 to 59
have the highest shares in the
population structure.
Though the share of the young
population is shrinking, the con-
sumption of womenswear in the
same age group is relatively high.
It can be said that the younger
female consumers in particular
are buying high quantities of clot-
hing - dominated by the wish for
fashionable casual clothing.
Overall, nearly half of all womens-
wear items are bought by women
between 13 and 34. Note that this
age group represents only 27.7%
of French women!

Figure 1-2: Age structure of the French population by sex, 2005

France: 2005 Source:

100+ U.S. Census
95-99
90-94 Bureau,
male 85-89 International
80-84 female
75-79
Data Base
70-74
65-69
60-64
55-59
50-54
45-49
40-44
35-39
30-34
25-29
20-24
15-19
10-14
5-9
0-4

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) 16
With an average outerwear budget of 349 per capita, the French spent
1.2% more than in 2003. Outerwear expenditure can be broken down
into major segments, as shown in figure 1-3.

Figure 1-3: Breakdown of outerwear expenditure by segment in 2004

Children aged 2-7

6%

Children aged 8-14

8%

Women
50%

Menswear
36%

Source: Interselection, 2005

1.2.4 Retail Sales by product category

Table 1-2 gives a brief overview of

the market share for the most
relevant clothing segments, divi-
ded into men and women.
Formerly, French consumers ten-
ded to buy more formal clothing
than consumers in other
European countries. This share
has declined, to the advantage of
basic leisurewear sales, which are
now higher than in most other EU
countries.

in % of total value Men Women

Table 1-2: Market share
of outerwear by sex, Formal Clothing 37 40
2004
Casual wear 31 29

Basic leisure wear 27 26

Active Sports wear 5 5

Source:
TOTAL 100 100
CBI Market Survey, 2005
17
 Table 1-3: Sales of womenswear by product categories, 2003 2004

in 1000s of articles 2003 2004 +/-from previous year

Waterproof coats 1313 1412 8%

Suits, outfits 12755 11104 -13%

Dresses 15062 15044 0%

Skirts 27717 28072 1%

Jackets & blazers 2430 2356 -3%

Trousers (formal) 41539 42647 3%

Trousers (leisure) 19683 22500 14%

Trousers (sports) 1675 2051 22%

Jeans 24389 27208 12%

Source: Fdration Franaise des Industries du Vtement Fminin, 2005

Shorts & bermudas 4519 3821 -15%

Blouses 24804 24410 -2%

Sweat-shirts & polos 12248 13341 9%

T-Shirt 76977 85890 12%

Pullovers, waistcoats, cardigans 55959 56933 2%

Camisoles & slipovers 23383 23572 1%

Swimsuits 9956 9721 -2%

Anoraks, parkas, jackets 9349 11016 18%

Coats etc. 6211 7345 18%

Pants 3615 2831 -22%

Tracksuits 2219 2076 -6%

Other pieces of outerwear 8979 8180 -9%

Other small pieces of outerwear 7077 6687 -6%

TOTAL 391860 408218 4%

Total pieces of outerwear 177562 183536 3%

Total small pieces of outerwear 214298 224682 5%

Table 1-3 indicates the sales deve-
lopment of the womens clothing
segment in thousands of articles.
Overall, a modest increase in sales
can be observed between 2003
and 2004. Small articles of outer-
wear particularly contributed to
this effect. However, not all pro-
duct categories developed even-
ly. Parts of this evolution can be
explained by external factors such
as the weather. For instance, in
the extremely hot year of 2003,
the French bought less anoraks
but more shorts than in 2004.
18
1.2.5 Consumer behaviour
1.2.5.1 Consumer preferences
Table 1-4 gives a good survey on
sales made by different clothing
retail channels in 2002. Compared
to previous years, sales in inde-
pendent clothing shops are
decreasing. They once used to be
the most important location for
the French to buy their clothing.
Now they are (at 18.6%) behind
the multiples that have a share of
24.8%. The trend towards more
concentration is also reflected by
the relatively high share of super-
and hypermarkets (15.2%). Mail
order houses took some 8.6% of
sales value in 2002. However,
they are expected to enjoy much
higher rates in the future due to
the rise of the Internet.
In 2003 in France, outerwear
retailers had on average 3.2 out-
lets for menswear and 3.8 outlets
for womenswear. The principal
names of the preferred shops for
men, women and children are
C&A, Kiabi and Eurodif, where the
consumer finds more general
clothing with no specific purpose.
The main retail companies for
French women are Pimkie,
Promod and Chamaeu Femme.
The French men prefer to buy
their clothing at Celio, Chamaeu
Homme, Devred, Manars and
Burton. The favourite shops for
childrenswear are Zannier, Jacadi
and Catamani, all of which are
specialised shops offering only
childrenswear.
As with the young generations in
other European countries, French
children like U.S. fashion styles
and are influenced by American
culture. Therefore, American
brands and/or brands perceived
to be American are particularly
successful in the childrenswear
segment. The youngsters are also
interested in sportswear, which is
used also as everyday clothing.
Sports like rugby, football and bas-
ketball are quite popular.
Table 1-4: Market share of clothing retail
channels, 2003
in%of total sales
Independents 18.5
Clothing multiples 24.8
Department & variety stores 6.8
Mail order 8.6
Super & hypermarkets 15.2
Sport shops 7.6
Specialist large surface stores 10.9
Others 7.6
Total 100.0
Source: UFIH, French Apparel Association, 2005
The trends for American styles
strongly influenced by the Hip-
Hop Scene and the preferred
sportswear are expressed in the
sales of items like t-shirts, sweat-
shirts, polo-shirts in combination
with baseball caps. Young consu-
mers demand for sportswear hel-
ped the largest sports retailer
Decathlon to increase its sales of
childrens clothing in the last few
years.
19
As regards fabrics, there is a trend
towards natural, easy to wear and
modern fibres (jersey, cotton flan-
nel, stretch, technical fabrics,
polar fleeces). The childrens
parents prefer clothing which is
easy to wash and which requires
no ironing. However, 70% of the
clothing of 4 to 14 year olds is
selected by the children themsel-
ves and not by the parents.
Children from six years up deve-
lop brand awareness, which is
mainly formed by their peer group
and TV advertising.
1.2.5.2 Consumer expenditures
Recalled that France has a population
of 60.7 million inhabitants, the per
capita expenditures for clothing are
slightly below the average in the EU.
As Table 1-4 shows, the share of con-
sumption of the average French hou-
seholds for clothing (in all consumpti-
on) remained rather stable at a level
around 3.6%.
According to a study by OSEO, clot-
hing consumption has stayed stable
in constant Euros since 1986. OSEO is
a syndicate of the French Innovation
agency, Anvar (agence franaise de
linnovation), the development bank
for small and medium enterprises,
BDPME (Banque du dveloppement
des PME), and the agency for small
and medium enterprises, ADPME
(Agence des PME).

Table 1-5: Development of consumer expenditure in France, 2001-2004

(in billion )

2001 2002 2003 2004

Total consumption 812.7 840.6 866.9 874.3

Clothing consumption 30.5 30.9 31.3 31.7

In % of total consumption 3.8 3.7 3.6 3.6

Outerwear consumption 25.0 25.5 26.2 26.6

In % of total clothing consumption 82.0 82.3 83.9 84.0

Source: CBI Market Survey, 2005

20
Table 1-6: Consumer expenditures on outerwear clothing by sex
(in billion ), 2001 - 2004

2001 2002 2003 2004

Men & boys 8.9 9.1 9.4 9.6

Women, girls & infants 16.1 16.3 16.8 17.0

Total 25.0 25.4 26.2 26.6

Source: CTCOE, 200)

According to Table 1-6, which considers the expenditures on outerwear

by sex in France, consumption of womens and girls clothing was 17 bil-
lion in 2004 and accounted for 63.9% of total clothing consumption.

1.2.6 Price development of clothing The category of womens, girls,

According to CTCOE, clothing pri-
ces generally develop more wea-
kly than the average inflation rate.
With the exception of 2001-2002,
when prices went up 0.7% cau-
sed by the introduction of the
Euro, a general downward ten-
dency can be observed. Prices
went down by 2.2% from 2002 to
2003, and by 3.5% in the period
2003-2004. For the period 2004-
2005, the deflation is estimated at
5%. The weakness of the US
Dollar and the elimination of trade
barriers with China with the con-
sequent increased imports of low
priced clothing explain this price
decline.
and infants wear is especially
affected by the downturn of pri-
ces. In contrast, menswear is less
affected by falling prices. The
price development of womens-
wear can be interpreted from
Table 1-7: While consumption in
value went down by 0.4%, con-
sumption in volume increased by
4.2%. This diverging development
of import value and import volume
does not necessarily mean that
more lower quality clothing is sold
in the market. However, it indica-
tes a clear price deflation for
outerwear in the market (with fal-
ling prices).

Table 1-7: Price development of womenswear, 2003-2004

2003 2004 +/- from previous year

In million 10.634 10.592 -0.4%

In million articles (large + small) 391.860 408.218 +4.2%

Source: CTCOE (2005) and Fdration Franaise des Industries

du Vtement Fminin, 2005
21
Looking at the imports of outerwear in tons, as indicated in Table 1-8, the
same picture emerges: The growth rate of imports in Euros is much
smaller than increase in tons imported. Obviously, the conclusion is the
same: falling prices.

Table 1-8: Price development of imported outerwear, 2002 - 2004

2002 2003 2004 +/- from

previous year

Imports in 1,000 10 905 408 11 114 361 11 266 609 1.4%

Imports in tons 467 294 484 453 520 358 7.4%

Source: Eurostat, 2005

1.3 IMPORTS woven outerwear for men (2,290

1.3.1 Total imports
According to Eurostat, total
imports of apparel into France
amounted to 11.3 billion in 2004.
Since 1999, there has been a con-
tinuous increase in clothing
imports. The share of imports of
outerwear in total French clothing
consumption is over 30%.
Increasing imports are more than
balancing the shrinking domestic
outerwear production.
A comparison of the following
Table 1-9 and Table 1-10 shows
that the proportion of mens and
womenswear imports into France
are different for knitted and woven
outerwear. While the imports of
million ) and women (3,041 milli-
on ) are at a similar level, the
imports of knitted womenswear
(641 million ) clearly supersede
the imports of knitted menswear
(233 million ). The imports of
woven outerwear are, depending
on the product category, five to
nine times higher than the imports
of knitted outerwear.
According to Table 1-10, the
imports of knitted outerwear into
France increased steadily from
2002 to 2004. Active sportswear
such as tracksuits, ski suits and
swimwear is particularly worth
mentioning. Knitted outerwear for
both sexes is by far the largest
sector with 3,403 million in
2004.

22
 Table 1-9: Imports of knitted outerwear by sex and product categories, 2002 - 2004

2002 2003 2004

Tons 1,000 Tons 1,000 Tons 1,000

For men or boys

Coats, raincoats, anoraks 644 19,655 866 22,614 974 23,826

etc. (61.01)

Suits, jackets, ensembles, 3,117 60,640 4,101 81,328 3,967 75,865

trousers, shorts etc. (61.03)

Shirts (61.05) 7,981 169,805 7,147 149,689 7,364 133,767

Total 11,743 250,099 12,115 253,631 12,305 233,458

Total extra EU 7,586 128,340 6,849 109,634 7,043 104,699

For women or girls

Coats, raincoats, 2,055 52,545 2,571 62,346 2,878 62,249

anoraks etc. (61.02)

Suits, outfits, jackets, dres- 19,528 356,473 20,308 363,056 21,004 362,060
ses, skirts, trousers (61.04)

Blouses and shirt 10,848 230,738 11,461 204,762 11,746 216,714

blouses (61.06)

Total 32,431 639,756 34,340 630,164 35,628 641,023

Total extra EU 19,189 339,677 19,657 298,815 21,475 314,680

For both sexes

T-shirts, singlets etc. (61.09) 64,345 1,129,123 67,370 1,214,957 79,019 1,351,513

Jerseys, pullovers, cardi- 84,352 1,769,857 88,967 1,821,702 88,990 1,749,658

gans, waistcoats etc. (61.10)

Babies garments (61.11) 16,631 324,309 17,044 292,379 17,776 281,988

Impregnated clothing (61.13) 1,193 26,067 1,000 20,063 1,177 19,665

Total 166,520 3,249,355 174,381 3,349,101 186,962 3,402,824

Total extra EU 106,384 1,743,234 112,526 1,688,119 126,522 1,820,887

Active Sportswear

Track suits, ski suits and 5,904 165,710 6,704 176,369 9,726 213,394
swimwear (61.12)

Other sportswear (61.14) 2,815 82,563 4,096 107,249 3,812 118,256

Total 8,718 248,272 10,799 283,618 13,538 331,650

Total extra EU 4,188 106,289 4,953 116,435 6,696 139,922

Source: Eurostat, 2005

23
In comparison to previous years,
the share of the non-EU countries
in the knitted outerwear imports is
generally decreasing, while the
overall trend in France is an
increase in imports. However,
according to Journal du Textile,
the French textile industry is
beginning to feel the consequen-
ces of the elimination of trade bar-
riers. The French producers are
especially afraid of Chinese
imports that are gaining significant
market share at a fast pace.
Table 1-10 indicates that there are
more imports of woven menswe-
ar units but less in compared to
the ladies segment. The import of
the womens woven segment
increased from 2017 million in
1999 to 3041 million in 2004, an
increase of more than 50% within
6 years! Woven suits for men
(1475 million ) and women (2240
million ) have the highest share of
imports.
The shares of non-EU countries in
the woven outerwear segment
shows different developments:
For example, in terms of quantity
(tons), the share of non-EU coun-
tries in the women and girls
outerwear category reached
59.5% in 2001. Sales possibilities
for foreign manufacturers into
France have definitely increased
during this period. On the other
hand, non-EU countries hold only
55.1% of the money value share in
the same category. This indicates
that foreign manufacturers need
to compete on the price level in
order to make their (volume)
share of the market.
24
 Table 1-10: Imports of woven outerwear by sex and product categories, 2002 - 2004

2002 2003 2004

Tons 1,000 Tons 1,000 Tons 1,000

For men or boys

Coats, anoraks, wind- 16,127 335,722 20,835 343,494 21,516 336,965

cheaters etc, (62,01)

Suits, jackets, outfits, trou- 66,619 1,403,147 65,059 1,389,664 71,271 1,475,257
sers, shorts etc. (62,03)

Shirts (62,05) 20,713 490,493 20,178 497,851 20,358 477,881

Total 103,460 2,229,363 106,072 2,231,009 113,145 2,290,104

Total extra EU 70,684 1,288,595 67,077 1,194,429 69,524 1,213,860

For women or girls

Coats, capes, anoraks, 18,270 412,221 21,612 429,644 25,664 451,093

windjackets etc. (62,02)

Suits, outfits, jackets, 87,395 2,135,342 86,276 2,169,361 93,413 2,239,584

dresses, skirts, trousers
(62,04)

Blouses and shirt 12,142 375,787 11,382 380,466 10,561 350,569

blouses (62,06)

Total 117,807 2,923,351 119,271 2,979,471 129,638 3,041,246

Total extra EU 71,826 1,643,966 72,836 1,645,035 77,177 1,675,767

For both sexes

Babies garments (62,09) 10,928 166,757 7,623 157,134 8,321 155,898

Other incl. Impregnated 15,687 270,364 19,852 282,333 20,822 272,649

(62,10)

Total 26,615 437,121 27,475 439,467 29,142 428,547

Total extra EU 17,051 255,044 13,537 221,331 14,523 221,630

Source: Eurostat, 2005

25
1.3.2 Outward Processing Trade (OPT)
The analysis of the largest sup-
pliers of OPT outerwear into
France in Table 1-11 shows a stabi-
lising trend: for the first time in
years, OPT imports to France
have slightly increased in the
period 2003 to 2004. Previously,
OPT imports strongly and continu-
ously declined from 53.7 million
in 1999 to 24.1 million in 2003.
Overall, the OPT business plays a
minor role in France, accounting
for only 0.22% of the total imports.
The Ukraine is by far the most
important OPT partner country for
France, although the value of
imported goods was more than
twice as much just three years
ago. Romania is second, as it was
in the period 1999 to 2002, but
Bulgaria could catch up with China
that used to rank in position No. 3.
The growth rates show that OPT
business can fluctuate dramatical-
ly, e.g. Morocco had an increase
of +11100% in 2002 and a decrea-
se of -64% in 2003.
While in 1999 and 2000, total extra
EU OPT exports to France were
worth more than 50 million , they
were only about half this value in
the last three years, although the
new member countries of the
European Union (May 2004) are
not yet taken into account by
these figures.

Table 1-11: Largest supplying countries of OPT outerwear, 2002 - 2004

Po- Country 2002 +/- from 2003 +/- from 2004

siton in 1,000 2002 in 1,000 2003 in 1,000

1 Ukraine 8609 -43% 4928 114% 10564

2 Romania 8180 -26% 6076 -18% 4981

3 Bulgaria 2554 73% 4418 -22% 3445

4 Belarus 1771 21% 2141 23% 2642

5 China 1767 -21% 1388 -20% 1114

6 Tunisia 943 -29% 671 62% 1087

7 Morocco 4 11100% 448 -64% 161

8 Madagascar 596 17% 698 -98% 12

9 Bosnia 54 -81% 10 -30% 7

Herzegovina

Extra EU 15 26212 -8% 24103 1% 24354

Source: Eurostat, 2005

26
1.3.3 Largest suppliers of outerwear
Table 1-12 gives a very good over-
view of the twenty major countries
supplying clothing to France from
2002 to 2004. The share of clot-
hing imports from extra EU coun-
tries in France was 51.9% in 1999
and had increased to 55.9% in
2001, but slightly decreased again
in 2004 to 53.6%. The imports
from outside the EU in 2004
amounted to 6037 million , whe-
reas 5229 Million were imported
from the European Union. While
the total imports to France
amounted to 7952 million in
1999, they exceeded 11266 million
in 2004, an increase of 41.6%.
The development of imports from
countries outside the EU showed
a mixed trend: From 2002 to
2003, they fell by 3.7%, but then
increased again by 3.4%, nearly
recovering to the 2002 level in
2004. The growth rates of imports
from EU countries also had a
mixed development, following a
mirror trend to the imports from
extra EU countries. From 2002
to 2003, they increased by 8.9%
and then declined by 0.9%.
Overall, the growth rates of total
imports showed a very steady
development, increasing by 1.9%
and by 1.4%, respectively.
The main import countries for
France from outside Europe are:
China (916 million ), Tunisia (896
million ) and Morocco (802 milli-
on ). Morocco and Tunisia are
French speaking countries; this is
a very important advantage for
them when exporting to France.
Typically, the French consider
themselves to be rather weak in
foreign language skills. Moreover,
they are not very keen on spea-
king another language than
French. This fact should be consi-
dered by foreign manufacturers
wishing to sell in the French mar-
ket. This fact also explains the
leadership position of the relative-
ly small EU country Belgium,
which is characterised as a multi-
lingual country, including the
French language. Much business
with Belgium is done on a subcon-
tracting basis.
27
Table 1-12: Largest supplying countries of outerwear, 2002 - 2004

Po- Country 2002 in +/- from 2003 in +/- from 2004 in

siton 1,000 2002 1,000 2003 1,000

1 Belgium 1474228 3% 1520280 1% 1539385

2 Italy 995153 15% 1145757 -6% 1081298

3 China 788907 0% 789887 16% 916019

4 Tunisia 986615 -5% 935339 -4% 895823

5 Fr Germany 734880 9% 804391 6% 850596

6 Morocco 924920 -9% 838781 -4% 801565

7 Netherland 425277 15% 489986 -4% 471240

8 Turkey 442269 3% 454660 1% 460481

9 Spain 375641 15% 430631 -1% 425850

10 Bangladesh 339109 -2% 333753 23% 409037

11 India 364471 -1% 361561 0% 361469

12 Portugal 395071 -4% 380991 -12% 333898

13 UK 224596 27% 284430 9% 308772

14 Romania 278282 2% 284907 8% 308363

15 Mauritius 255167 -11% 227458 -17% 188896

16 Switzerland 74906 61% 120419 38% 165759

17 Bulgaria 143639 2% 146300 6% 155219

18 Thailand 94616 -1% 93543 42% 133288

19 Hong Kong 118967 -18% 97491 20% 116845

20 Poland 133867 -5% 127337 -16% 107192

EU 4843738 9% 5275949 -1% 5229320

Extra EU 6061670 -4% 5838412 3% 6037289

Source: Eurostat, 2005

28
1.4 TRADE STRUCTURE
1.4.1 Developments in the retail trade
It would be too simple to assume
that price is the only area of com-
petition in the French market.
Quality, style and trend also play
an important role. Marks &
Spencer withdrew from the
French market while international
chains gained market share. H&M
(Hennes & Mauritz) in particular
had extraordinary growth rates
(33% more growth in the first nine
months of 2005) due to their reli-
ance on Chinese garments, as
reported by Journal du Textile.
The clothing retail sector in France
went through major changes over
the last years. From the beginning
of the 1980s, consumers were
used to independent shops that
offered various brands. Apparel
sold by independent retailers in
France accounted for 39.1% of
total sales in 1995. Within the last
6-7 years, the multiples also (as in
other European countries) inva-
ded France, and consumers are
more likely to buy in specialty
chain stores with large outlets.
According to OSEO, the large
chains (e.g. hypermarkets, spe-
cialised chains) gained 17 points of
market share in the last 12 years at
the expense of independent retai-
lers who lost 15 points during the
same period. In sum, the trend
towards more concentration con-
tinues.
This development enhanced
lower prices for outerwear
through the greater competition
and number of goods imported
by these chains. These compa-
nies, of which most are French
chains, have a very up-to-date
concept with a high standard in
logistics, IT and advertising. There
seems to be a real competition on
who is the next to open up a high-
end logistics centre. The profes-
sional management system in the
clothing sector has swept away
small retailers. This development
has been a concentrated process
that has given the retailers more
purchasing power against the
manufacturers in comparison with
the formerly fragmented small
retailers.
The multiples are now in the posi-
tion to react more quickly to con-
sumer demands by following a
strategy of greater just in time
supply to the shops and the con-
sumers. The chains act like manu-
facturers in this respect. However,
the link to the manufacturers has
become closer. The importance
of middlemen has been reduced
and retailers buy directly from the
clothing companies (abroad). The
increased purchasing power of
the retailers stimulated some clot-
hing manufacturers to build up an
independent distribution system
by operating self-owned outlets
or using a franchise system.
Online sales are also growing fast
in France, by 3% in 2004 and by
29
 45% already in the first half of
2005. Factory Outlet Centres
have also gained importance, at
present (2005) there are 16 of
them spread around the country.
More are planned with an additio-
nal total space of 180,000 sq. m.
1.4.2 Leading retailers
As mentioned previously, the
French market shows a high
degree of concentration at clot-
Table 1-13: Important clothing retail chains by number of outlets, 2005
hing retail level. The large outlets
(called surfaces in French) are
spread all around France. Table 1-
13 gives a good overview of some
of the most important French clot-
hing multiples. The retail chain
Jacadi with 400 outlets is number
one in France. It must be mentio-
ned, however, that Groupe
Zannier takes a worldwide leading
position in childrenswear. Typical
for the French market is the
strong market presence of chil-
drenswear shops.

Retailer Parent company Sector Number of

outlets

Jacadi Jacadi Children's wear 400

Camaeu Femme Cime-Camaeu Womenswear 373

Promod Promod Womenswear 370

La Halle Vivarte General Clothing 300

Groupe Zannier Groupe Zannier Children's wear 270

Pimkie Auchan Mulliez Womenswear 258

Source: CBI Marketing Handbook, 2005

Okade Okade Childrens wear 250

Dcathlon Auchan Sportswear 220

Natalys Natalys Baby/maternity wear 200

Prenatal Prenatal Baby/maternity wear 96

Catamini Groupe Zannier Children's wear 95

Devred UOCR Eurodif Menswear 92

Eurodif UOCR Eurodif General Clothing 91

Kiabi Auchan Mulliez General Clothing 81

C&A C&A (NL) General Clothing 74

In terms of market share, the group Vivarte is the leader with 10% of total
sales in 2004. Vivarte (formerly Groupe Andr) is a one of Europe's lead-
ing distributors of footwear and apparel. It operates about 2,500 stores
under 12 different banners.
30
 1.4.3 Distribution Channels
1.4.3.1 Retailers
According to Interselection, the
French distribution system still has
a large share of independents
with 22.2% in 2004. Recall that
the French Apparel Association
UFIH reported a share of only
18.5% in 2003. As can be seen in
Figure 1-4, organized retail plays a
Figure 1-4: Amounts spent on
outerwear by retail channel in 2004
Source: Interselection, 2005
major role in the French outerwe-
ar market: It is responsible for 70%
of the amounts spent.
Compared to previous years, the
importance of mail-order declined
from 10.2% in 2001 to 7.8% in
2004. In the same period, the
market share of city centre chains,
department stores and multiples
stayed fairly stable.
1.4.3.1.1 Independent
specialised retailers
The share of independent retailers
decreased from 28% in 1995 to
18.5% in 2003. Independent retai-
lers are defined as retailers with
less than five active outlets.
There are around 25,000 inde-
pendent outlets in France. Their
buying is sometimes linked to
franchise organisations. Although
the share of independent speciali-
sed retailers is generally decrea-
sing, it is still much higher than in
City centre chains 27.6%
Volume retail discounts
and sports chains 19.0%
Independent stores 22.2%
Food mass retail 9.6%
Mail order 7.8%
Department stores and
multiples 6.1%
Other channels 7.7%
other countries. Figures indicate
that the strong decline came to a
stop in 2004, when there was an
upward trend. On the other hand,
the independents lost market
share again in the first months of
2005, as reported by Journal du
Textile.
Market share: 22.2% in 2004
Trend: Decreasing
31
1.4.3.1.2 City centre
chains - Clothing multiples
The long-term trend clearly indica-
tes a higher importance of clot-
hing multiples and more concen-
tration of the market (Journal de
Textile). Generally, the French
market is still less concentrated in
the retail sector than in other
European countries. However,
this is expected to change.
The outlets for childrenswear are
numerous. There are three times
more outlets of clothing multiples
for women than for men. The big-
gest player in the retail business is
the Groupe Vivarte (formerly
Groupe Andr). Groupe Vivarte
owns the clothing chains Caroll,
Kooka, Creeks, Liberto and La
Halle aux Vtements. Shoe shop
chains called Andr, San Marina,
Orcade-Minelli, La Halle aux
Chaussures and Chaussland et
Besson also belong to Groupe
Vivarte. In November 2001,
Groupe Andr was renamed
Groupe Vivarte. It accounts for
10% of overall sales.
Market share: 27.6% in 2004
Trend: Increasing
1.4.3.1.3 Department stores
The main department store in
France is Les Galeries Lafayette,
which also operates under the
name Nouvelles Galeries. Another
department store of importance
in France is PPR (Pinault-
Printemps-Redoute). Marks &
Spencer no longer operates in the
French market. Variety stores
include Prisunec, Monoprix and
Inno, which belong to Galeries
Lafayette. The importance of
department stores has stabilised
over the last few years after
decreases in the last decade.
The Galeries Lafayette Group,
with a total number of 60 outlets,
has successfully started a special
concept for the French provinces
offering special ranges, e.g. L.
Homme for menswear. However,
the department stores are strugg-
ling; as an example, the famous
La Samaritaine closed down in
2005.
Market share: 6.1% in 2004
Trend: Stable
32
1.4.3.1.4 Mail-order houses
The mail-order business in France
is obviously decreasing. From 12%
in 1995, it dropped to 10% in 2000
and to around 8% in 2004. Among
the mail-order houses, La
Redoute and 3 Suisses must be
mentioned. La Redoute is owned
by PPR, and 3 Suisses belongs
to the Groupe 3 Suisses
International, which also carries
the mail-order business Blanche
Porte. Mail-order houses are said
to have aggressive sales policies
and heavy promotion. In the lon-
ger run, however, the mail-order
business is expected to grow,
since more and more French con-
sumers have Internet access at
home. It is only a matter of time
until the French return to buying
certain products from the mail-
order houses.
Market share: 7.8% in 2004
Trend: slightly increasing
1.4.3.1.5 Textile discounters and
sports chains
There are some relevant textile
discounters all over France that
are mainly based outside the lar-
ger cities such as Paris, Lyon,
Marseille, but also around towns
with more than 250,000 inhabi-
tants where a demand exists for
cheap clothing, mainly for lower
income households.
Larger French textile discounters
import directly from abroad (main-
ly ready-made items from Asia) or
buy from French importers spe-
cialised in the product groups in
demand. Specific figures on the
market share of sports chains are
not available, but are included
in the discounter category.
However, according to Journal du
Textile, sports chains are increa-
sing in popularity.
Traditional textile discounters are
La Halle (Vivarte), Kiabi (Mulliez)
and Tati which have got strong
competition from new price
aggressive retailers like VetLand,
VetAffaires, GEMO (Eram Grou)
and Choyo (Mulliez).
Market share: 19.0% (textile dis-
counters, sports chains included)
in 2004
Trend: Increasing
33
1.4.3.1.6 Grocery super- and hyper-
markets
The grocery super- and hyper-
markets offer comparatively more
menswear. The supermarkets
and hypermarkets that have a hig-
her share in the menswear seg-
ment have done better for major
items, but are reported to have
problems with small items, alt-
hough socks and underwear con-
stitute their main clothing busi-
ness. A trend can be noted away
from cheap products to fashiona-
ble clothing offering better quality.
The French hypermarkets like
Carrefour have lost market share
to the upcoming textile discoun-
ters mentioned before. In 2002,
French consumers still bought
60% of their clothing in hypermar-
kets; this situation has changed in
favour of the discounters.
Market share: 9.6% in 2004
Trend: Decreasing
1.4.3.1.7 Other channels
The share of other distribution
channels is increasing. Other
channels are those that do not fall
into the definition of the above-
mentioned channels. Examples of
such distribution channels would
be markets, fairs, internet and
factory outlets.
Market share: 7.7% in 2004
Trend: Increasing
1.4.3.2 Sales Intermediaries
1.4.3.2.1 Clothing Manufacturers
French manufacturers have slid
against the retailers and their posi-
tion has weakened in recent
years. This is also confirmed by
the fact that there are fewer
manufacturers brands, because
they are partially being replaced
by the retailers brands. The indu-
stry is characterised by high price
pressure: on the one hand, con-
sumers have become more price-
conscious; on the other, imports
of cheap garments from abroad
lower the prices. Manufacturers
have no chance but to follow the
retailers. French manufacturers
often produce their core product
range on their own, but they also
buy a considerable share of their
product assortment from manu-
facturers abroad. Apparently, they
do so in order to add certain pro-
ducts to complete their collection.
The clothing manufacturer has to
rely on the distributors promotion
and advertising for their respecti-
ve collection. This can cause pro-
blems, for instance when brand
names are promoted inadequate-
ly. This can only be avoided by the
installation of a costly own retail
system by the manufacturer.
Because of the strong position of
the retailers, some French clot-
hing brands are ready to accept
these greater financial invest-
ments.
34
Establishing their own retail chain
allows them to adapt more quick-
ly to evolving market trends and
have more influence on the distri-
bution. The sales personnel can
be trained according to the mar-
keting strategy as well as the pro-
ducts image. In any case, it is
recommendable not to neglect
other local apparel manufacturers
when building up an own retail
system.
1.4.3.2.2 Central buying associations
There are not many important
buying organisations for indepen-
dent retailers in France, as they
are mainly provided by the French
clothing manufacturers and the
wholesalers and importers. For
the most part, meaningful buying
associations can be found in the
sportswear segment, for instance
Intersport, Go Sport and Sport
2000.
1.4.3.2.3 Sales Agents
A sales agent based in France
normally takes a commission of
10-15% if the manufacturer is from
overseas (slightly higher commis-
sion because of higher risks). The
sales commission within France or
Europe is normally below 10%.
Clothing exports into the French
market via a sales agent are very
common. Especially in the case
of France, it is recommendable for
manufacturers from outside the
EU to work with agents as the
buying of clothing is very much
concentrated on the so called
centrales dachats. The buying
managers often import through
sales agents based in France who
represent reliable manufacturers
from abroad.
1.4.3.2.4 Importers/wholesalers
Some of the French retailers
(mainly super- and hypermarkets,
textile discounters and to some
extent clothing chains) prefer not
to run own control and sourcing
units in overseas markets. These
retailers buy their products via
importers/wholesalers and often
get attractive conditions. Since
the end of the eighties, the impor-
ters have gained importance as
the previously very strong national
French clothing industry became
less competitive due to increasing
production costs. As a result,
many importers/wholesalers
enjoy increasing orders and reve-
nues.
35
 1.5 FRENCH FASHION TRADE FAIRS

Table 1-14: Overview of fashion trade fairs by number of visitors

Frequency
Name city Category Specialities Visitors

Exhibitors
per year
Prt--Porter Paris womenswear Young fashion, small items 2 1020 41416

Who's next Paris general clothing Fancy articles, small items 2 510 31344

Nouveau SEHM Paris menswear Sports wear, jeans 2 18 23744

Lingerie Paris general clothing Socks, swim wear, mens items 1 494 23501

Lyon, Mode City Lyon small pieces Fibres, stitchery, swim wear 1 877 19778

Interselection Paris general clothing Leisure wear, 2 387 6010

men/women/children

Source: AUMA, 2005

The Prt--Porter Trade Fair is an The most important tradeshow in

international ladies ready-to-wear
exhibition with a boutique secti-
on. The collections are normally
presented on the classical pre-
order system, meaning half a year
ahead of the actual sales in the
shops. The winter collection is
shown in March, the summer col-
lection in September of the pre-
vious 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.
France for menswear is the Salon
International de lHabillement
Masculin (Le Nouveau SEHM),
which is held twice a year, in
January and September. This is an
exhibition for the whole range of
mens and boys apparel, inclu-
ding accessories. It must be men-
tioned that this is a relaunch of a
previously important menswear
fair. The position of the SEHM at
European level used to be weak.
However, one out of three visitors
and two out of three exhibitors
come from abroad.

36
The trade fair Whos Next, is also
worth mentioning. In contrast
to Le Nouveau SEHM and
Prt--Porter, Whos Next is less
specialised according to gender.
Exhibitions include menswear,
womenswear and childrenswear.
It is also held twice a year and has
attracted more than 30,000 visi-
tors in recent years.

A rather new phenomenon is the

Lyon, Mode City. It is the only fair
that does not take place in Paris.
Although France is a highly cen-
tralised country and the French
tend to do most of their business
in the capital, Lyon, Mode City
could find a niche for underwear
and nightwear (small range of
outerwear) that can exist alongsi-
de Paris. The yearly trade fair con-
sisted of up to 1,000 exhibitors in
recent years, the majority of them
from abroad.

In the highly competitive Euro-

pean fashion world, French trade
fairs are major opportunities for
business and marketing on an
international scale, although the
SEHM in particular and the Prt--
Porter have slipped against the
Italian and German clothing trade
fairs in recent years.

37
1.6 LIST OF MAJOR BUYERS OF LADIES, MENS AND
CHILDRENSWEAR IN FRANCE

Clothing Chain Stores

Agnes B Product range: ladies, mens, chil-

17, rue de Dieu drenswear
F - 75010 Paris Price segment: high price level
Tel.: +33 1 40034500 Number of outlets: 129 shops (32 in
Fax: +33 1 40034550 France)
www.agnesb.fr

Aubert France Product range: babies wear

4, rue de la Ferme - BP 30 Price segment: mid-price level
F - 68705 Cernay Number of outlets: 200 shops (in
Tel.: +33 389 383200 Europe) + mail order
Fax: +33 389 754167
aubert.contact@aubert.fr
www.aubert.fr

Caroll International Product range: womenswear

38, rue du Hameau Price segment: mid-price level
F - 75740 Paris Cedex 15 Number of outlets: 280 shops, of
Tel.: +33 810304030 which more than 70 abroad and 75
Fax: +33 1 56233407 franchising partners + mail order
contact@caroll.com
www.caroll.com

Chattawak Product range: ladies, menswear

29, boulevard des Italiens Price segment: mid-price level
F - 75002 Paris Number of outlets: 25 shops + 20
Tel.: +33 1 44948060 franchising partners
Fax: +33 1 42669392
www.chattawak.fr

Fabristyle Brice Product range: menswear

142, avenue du Panorama Price segment: mid-price level
F - 72100 Le Mans Number of outlets: 211
Tel.: +33 2 43614444
Fax: +33 2 43614422
www.brice.fr

38
Infinitif Product range: womenswear
26, rue du Caire Price segment: mid- to high price
F - 75002 Paris level
Tel.: +33 1 40399703 Number of outlets: 35
Fax: +33 1 42655527
www.infinitif.com

Kookai Product range: womenswear

45, Av Victor Hugo Price segment: mid-price level
Bat., 201 Number of outlets: 30 outlets + 120
F - 93534 Aubervilliers franchise partners + 320 franchise
Tel.: +33 1 43525252 partners abroad
Fax: +33 3 43525266 Note: belongs to the former Andr
www.kookai.fr Group, Paris

La Halle aux Vtements Product range: ladies, mens, chil-

26, rue de Flandres drenswear
F - 75019 Paris Price segment: low to mid-price level
Tel.: +33 1 53350425 Number of outlets: 300
Fax: +33 1 53350480 Note: belongs to the former Andr
Group, Paris

Maison des 100.000 Number of outlets: 300

Chemises Product range: menswear, especially
112, rue Richelieu shirts
F - 75002 Paris Price segment: mid-price level
Tel.: +33 1 42966612 Number of outlets: 42
Fax: +33 1 42605014

Oliver Grant Diffusion Product range: womenswear, mens-

74, rue Elise, Reclus 69 wear, sportswear
F - 69150 Dcibes Cedex Price segment: mid- to high price
Tel.: +33 472 812560 level
Fax: +33 472 812561 Number of outlets: 22 shops, 3 fran-
chising partners

39
PROMOD Centrale dAchat Product range: womenswear
Chemin du Verseau Price segment: low price level
F - 59847 Marcq en Baroeul Number of outlets: 370 shops in
Tel.: +33 3 20457551 France and other countries
Fax: +33 3 20457454
www.promod.fr

Tartine et Chocolat Product range: childrenswear

105, rue Fbg. St. Honor Price segment: mid-price level
F - 75115 Paris Number of outlets: 3 shops, 15 fran-
Tel.: +33 1 45624404 chising partners
Fax: +33 1 4562339

TATI SA Product range: all kinds of clothing

82, avenue de Maine Price segment: low price level
F - 75018 Paris Number of outlets: 32
Tel.: +33 1 56800680
Fax: +33 1 142523244
contact@tati.fr
www.tati.fr

Zannier Groupe Product range: childrenswear

6 bis, rue Gabriel Laumain Price segment: mid-price level
F - 75010 Paris Number of outlets: 270 outlets
Tel.: +33 1 44834545 Note: own brands like Trios Pommes,
Fax: +33 1 44834530 Hawai 60% of the clothing is sour-
www.groupezannier.fr ced from outside

Jeans- and Sportswear

Big Star Product range: Jeans and sports-
Z.I. Route de lIndustrie wear
F - 68360 Soultz Price segment: mid-price level
Tel.: +33 389 746575 Number of outlets: 40 + 35 franchise
Fax: +33 389 746581 partners
office@bigstar.com
www.bigstarjeans.com

40
Chausport
9, rue des Ingres
F - 59100 Roubaix
Tel.: +33 3 20896633
Fax: +33 3 20896622
Coprint Sportswear
141, rue Louis Armand
F - 73200 Albertville
Tel.: +33 47 9390909
Fax: +33 47 9390001
Decathlon-Sport
4, Boulevard de Mons
F - 59650 Villeneuve dAsqu
Tel.: +33 3 20335000
Fax: +33 3 20335001
www.decathlon.com
Decouverte Vtements
16, rue des Petits Camps ZI
Sud
F - 35400 Saint Malo
Tel.: +33 299 822635
Fax: +33 299 824942
Donald Diffusion
21, Boulevard de la Libert
F - 13001 Marseille
Tel.: +33 491 504389
Fax: +33 491 620789
Product range: Casual wear and
active sportswear, sports articles
Price segment: mid-price level
Number of outlets: 75
Product range: Sportswear
Price segment: mid-price level
Number of outlets: 75 shops + 20
franchise partners
Product range: Casual wear and
active sportswear
Price segment: mid-price level
Number of outlets: 220, belongs to
Auchan
Product range: Womenswear and
sportswear
Price segment: mid-price level
Number of outlets: 10 + 45 franchise
partners (Brands: Cache Cache,
Caroll, Old River)
Product range: sportswear
Price segment: lower to mid-price
level
Number of outlets: 70 shops + 50
Franchise partner
Note: own brand Landers
41
ITM Intermarch Entreprises
24, rue August-Chabriires
F - 75737 Paris
Tel.: +33 1 45337417
Fax: +33 1 45331208
Lasserre
20, chemin de Laporte
F - 31300 Toulouse
Tel.: +33 561 491313
Fax: +33 561 499848
Naf Naf Chevignon
6-10, Boulevard Foch
F - 93807 Epinay sur Seine
Tel.: +33 1 4813 8888
Fax: +33 1 4813 8850
production@nafnaf.fr
www.nafnaf-sa.com
Paparazzi
Route Saint Bernard B.P.151
F - 06220 Vallauris
Tel.: +33 493 646140
Fax: +33 493 644770
Department Stores
Au Bon Marche (ABM)
5, rue de Babylone
F - 75322 Paris Cedex 07
Tel.: +33 - 1 44398000
Fax: +33 - 1 44398050
www.lebonmarche.fr
Product range: all kinds of clothing
incl. sportswear
Price segment: lower price level
Number of outlets: 163 shops
Vetimarch
Product range: sportswear
Price segment: mid-price level
Number of outlets: 40 + 35 franchise
partners
Product range: womenswear
Price segment: mid- to high price
level
Number of outlets: 197 in France
Product range: ladies and menswear
Price segment: mid-price level
Number of outlets: 22 + 20 franchise
partners
Product range: all kinds of clothing
Price segment: mid-price level
Number of outlets: approx. 150
Note: textile share app. 49% - 1,500
employees - mail-order business
42
Galeries Lafayette
40, Boulevard Haussmann
F - 75009 Paris Cedex 07
Tel.: +33 14 8782519
Fax: +33 14 2828023
www.galerieslafayette.fr
www.groupegalerieslafayette.fr
Nouvelles Galeries Runis
66, rue des Archives
F - 75150 Paris Cedex
Tel.: +33 1 42748212
Fax: +33 1 42746652
Printemps
102, rue des Provence
F - 75009 Paris
Tel.: +33 1 42855000
Fax: +33 1 42823600
17 shops + related shops
www.printemps.com
Mail Order Companies
Cyrillus (Redcats)
Avenue Amsterdam
F - 59910 Bondues
Tel.: +33 3 209 9330
Fax: +33 3 209 9332
Products: ladies, mens,
childrens wear, Mailorder + 25
shops also in B, CH and
www.cyrillus.fr
La Blanche Porte
22, rue de la Blanche
F - 59200 Tourcoing
Tel.: +33 3 20282028
Fax: +33 3 20282029
www.lablancheporte.fr
Product range: womenswear
Price segment: high price level
Number of outlets: 130 shops in
France and more in other countries
Product range: all kinds of clothing
Price segment: mid-price level
Number of outlets: 287 shops
Note: belongs to Galeries Lafayette
Group textile share in assortment
25% - app. 25,000 employees
Product range: all kinds of clothing
Price segment: mid-price level
Number of outlets: 20
(product range: generally all kinds of clothing,
price segment: low to middle)
Good Life
33, rue de lAssomption
F - 75016 Paris
Tel.: +33 1 45245650
Fax: +33 1 45245599
Products: ladies, mens wear
Mailorder + retail
www.goodlife.fr
La Redoute a Roubaix S.A.
(Redcats)
57, rue Blanchemaille
F - 59100 Roubaix
Tel.: +33 3 20696000
Fax: +33 3 20240337
www.redcats.com
43
Maison de Valerie
ZI, rue Jacquart
F - 41350 Vineuil
Tel.: +33 2 54425254
Fax: +33 2 54815053
Trois Suisses International
4, place de la Rpublique
F - 59962 Croix
Tel.: +33 3 20203062
Fax: +33 3 20720406
www.3suisses.fr
www.3suissesinternational.com
Super- and Hypermarkets
Auchan
Rue de la Recherche 200
F - 59650 Villeneuve-dAsqu
Tel.: +33 - 320 431212
Fax: +33 320 436400
Carrefour SA
ZAC Saint-Gunault
BP 75
F - 91002 Evry Cedex
Tel.: +33 360 913737
Fax: +33 360 794498
www.carrefour.com
Casino-Groupe
24, rue de la Montat
F - 42004 Saint-Etienne
Tel.: +33 477 454256
Fax: +33 477 454365
Neckermann Sarl
5, rue du Chteau dAngleterre
F - 67300 Schiltigheim
Tel. +33 3 88191010
Fax: +33 3 88191030
Note: all kinds of clothing 260
employees textile share 75%
www.neckermann.fr
Product range: all products
Price segment: mid-price level
Number of outlets: 14 countries, 294
hypermarkets, 588 supermarkets
Product range: all products
Price segment: mid-price level
Number of outlets: 215 hypermarkets
Product range: all products
Price segment: mid-price level
More than 6000 outlets (not all sel-
ling clothing)
44
Intermarch
1, rue du Chemin Blanc
F - 91160 Longjumeau
Tel.: +33 164 545500
Fax: +33 164 545190
Product range: all products
Price segment: mid-price level
Number of outlets: approx. 75

E. Leclerc Product range: all products

52, rue Camille Desmoulins Price segment: mid-price level
F - 92451 Issy Les Moulineaux
Tel.: +33 146 625200
Fax: +33 146 629600
www.e-leclerc.com

Promodes Product range: all products

Z.I. route de Paris Price segment: mid-price level
F - 14127 Mondeville Cedex
Tel.: +33 231 706000
Fax: +33 231 706000

Manufacturers/Importers and Wholesalers/Importers

Adolphe Lafont SA Products: ladies, mens wear, pro-

320, rue Georges Foulc fessional wear, manufacturer and
F - 69665 Villefranche sur Saone wholesaler
Tel.: +33 474 626868
Fax: +33 474 622399

Chipie International Products: ladies, mens, childrens wear,

11, avenue du Gnral Leclerc Manufacturer of sportswear, leisure wear,
F - 11003 Carcassonne Cedex 35 own shops brand Chipie- high price
Tel.: +33 468 105454 level
Fax: +33 468 105455 www.chipie.tm.fr

45
Catimini SA Product : childrens wear and mater-
94, rue Choletaise nity wear
F - 49 450 St.Macaire-en- Outlets: 95 shops in France
Mauges
Tel.: +33 241 714141
Fax: +33 241 714132

Chouette Sportswear Products: ladies wear, sportswear.

216, rue St. Denis Manufacturer
F - 75002 Paris
Tel.: +33 1 42363950
Fax: +33 1- 42364554

Class Affaire Products: ladies, menswear

67, rue de Sedaine Manufacturer +37 shops
F - 75011 Paris
Tel.: +33 1 48064606
Fax: +33 1 48064692

Coup de Cur Product: womenswear

6, rue de Bachaumont Manufacturer + 10 shops
F - 75002 Paris
Tel.: +33 1 44828500
Fax: +33 1 44828501

Eden Park Product: menswear

9, av. Hoche Manufacturer+ 7 shops, 15 franchi-
F - 75008 Paris sing partners
Tel.: +33 1 53890010 www.eden-park.tm.fr
Fax: +33 1 49530697

46
Buying Associations

Fusalp (Creations) SA Manufacturer jeans- and sportswear

114, avenue de France www.catimini.com
F - 74000 Annecy
Tel.: +33 450 238888
Fax: +33 450 238899

Disco SA Buying for app. 4,000 retailers -

18 20, avenue Gustave Ferrie approximately
Zone Industrielle, BP 926 1.5 billion turn-over p.a.
F - 49309 Cholet
Tel.: +33 241 714 452
Fax: +33 241 714399

Sagam SA Product: childrenswear and materni-

4, alle Verte ty dresses 226 members
F - 75011 Paris
Tel.: +33 1 143577748
Fax: +33 1 143574658

Promodes Buying association for Discounters,

9, rue Close Famille/B.P. 19 buying via C.I.M.
F - 78240 Chambourcy
Tel.: +33 139 793944
Fax: +33 139 794662

Sport Europe Distribution Product: sportswear

S.E.D.
10, rue dArcelle
F - 38600 Fontaine
Tel.: +33 4 76859276
Fax: +33 4 76531067

47
1.6 Other useful addresses

Syndicates, federations and similar organisations

UFIH
French Apparel Association (Union Franaise des
Industries de l'Habillement, or UFIH)
8, rue Montesquieu, 75001 Paris
Tel.: +33 1 44556660 - Fax: +33 1 44556666
secretariatufih@wanadoo.fr
www.lamodefrancaise.org

Euratex
The European Apparel and Textile Organisation
24, rue Montoyer, B 1000 Brussels
Tel.: + 32 2 2854892 Fax: +32 2 2306054
www.euratex.org

Mod'Sp
Institut Suprieur Spcialis de la Mode
32, rue de Paradis, 75010 Paris
Tel.: + 33 1 48242380 - Fax: + 33 1 48242343
modspe@modspe.com
www.modspe.com

IFM
Institut Franais de la Mode
33, rue Jean Goujon, 75008 Paris
Tel.: + 33 1 56592222 - Fax: 33 1 56592200
ifm@ifm-paris.org
www.ifm-paris.org

IFTH
Institut Franais Textile-Habillement (French Textile
and Apparel Institute)
Avenue Guy Collonque, 69134 Ecully cedex
Tel.: + 33 4 72 86 16 00 - Fax: 33 4 78433966
information@ifth.org
www.ifth.org

48
APCE
Agence pour la Cration d'entreprise
(Business start-up agency)
14, rue Delambre, 75682 Paris Cedex 14
Tel.: +33 1 42185858
Fax: +33 1 42185800
info@apce.com
www.apce.com

UCAD
Union Centrale des Arts Dcoratifs, Muse de la Mode
et du Textile, Union Franaise des Arts et des Costumes
107, rue de Rivoli, 75001 Paris
Tel.: +33 1 44555750
www.ucad.fr

Fdration Franaise de la Couture, du Prt--

Porter des Couturiers et des Crateurs de Mode
100-102, Faubourg Saint Honor, 75008 Paris
Tel.: +33 1 42666444 - Fax: +33 1 42669463
info@modeaparis.com
www.modeaparis.com

49
 Outerwear

GERMANY
2 GERMANY

2.1 GENERAL ECONOMIC The GDP of Germany, which is the

SITUATION
Germanys affluent and technolo-
gically powerful economy - the
fifth largest in the world - has
become one of the slowest gro-
wing economies in the euro zone
and Switzerland. A quick turna-
round is not foreseeable in the
immediate future. Growth in 2001-
03 was under 1%, rising to 1.7% in
2004. The modernization and
integration of the eastern German
economy continues to be a costly
long-term process, with annual
transfers from west to east
amounting to roughly $70 billion.
largest economy in the EU, grew
more slowly than the EU average
and of course Switzerland. The
weak economic situation can be
illustrated by the number of
unemployed persons, which
increased by 7.8% in 2004.
A second aspect was the increa-
se in the cost of living for private
households compared with pre-
vious years. This comparatively
high rate was mainly due to the
increase of energy costs, food,
ecological taxes and administrati-
ve fees which practically absor-
bed the planned tax reductions.

Germanys aging population,

combined with high unemploy-
ment, has pushed social security
outlays to a level exceeding con-
tributions from workers. Structural
rigidities in the labour market -
including strict regulations on lay-
ing off workers and the setting of
wages on a national basis - have
made unemployment a chronic
problem. Corporate restructuring
and growing capital markets are
setting the foundations that could
allow Germany to meet the long-
term challenges of European eco-
nomic integration and globalizati-
on, particularly if labour market
rigidities are further addressed. In
the short run, however, the fall in
government revenues and the
rise in expenditures have raised
the deficit above the EU 3% debt
limit.

50
2.2 THE MARKET FOR
OUTERWEAR
2.2.1 Market size
Although the general economic
situation at the beginning of 2005
was disappointing, Germany still
represents by far the largest sin-
gle market within the EU, with an
estimated total sales volume in
clothing of 55.6 billion in 2004
(Statistics BTE Cologne 2005,
amounts at retail prices including
VAT).
In 2004, annual clothing sales
(including outerwear) shrank in
comparison with other consumer
expenditures (they decreased by
2.3% in comparison to 2003). The
year was dominated by a signifi-
cant decrease of all sales which
amounted to approximately 2 billi-
on . There is no real change visi-
ble at the moment as there will be
no growth in 2005. The negative
retail trends must also be seen in
the light that private household
expenditures have increased by
3.5% in the years 2001-2004.
Nevertheless, clothing consumpti-
on fell constantly during recent
years so that only 5.40 out of
100 disposable are being spent
on clothing.
2.2.2 Market characteristics
The present situation of the outer-
wear market in Germany can be
characterised by the following
brief statements:
Clothing items from the outerwear
segment can be characterised by
a permanent price decrease. The
main reason for this is the produc-
tion of garments from low-wage
countries. Product imitation has
become easier through global
production, easy communication
by Internet / e-mail and liberalised
trade.
Renowned market research insti-
tutes have stated that the middle
market segment, (which is cha-
racterised by quality conscious-
ness and brand orientation) has
become much smaller in recent
years. The outerwear and clothing
market are moving in two directi-
ons: (a) value/price and (b)
trend/fashion, whilst the middle
segment is decreasing.
51
2.2.3 Demographic characteristics
Figure 2-1 shows that the major
population segment by age
group is between 40 and 44
years of age (approximately 7.5
million male and female), follo-
wed by those in the 35-39 brak-
ket (approximately 7 million
people). In other words,
Germans in their early forties
represent the largest target
group (in numbers only).
The younger generation under
25 is comparatively small, e.g.
the age group between 20 and
24 represents only approx. 4.5
million Germans (5.5% of the
whole population). The smallest
potential target group, apart
from those over 70, is the seg-
ment under 10 years of age. The
consequences of this for clothing
manufacturers from foreign
countries are evident.

Figure 2-1: Age structure of the German population by sex, 2005

Germany: 2005
100+
95-99
90-94
male 85-89
female
80-84
75-79
70-74
65-69
60-64
55-59
50-54
45-49
40-44
35-39
30-34
25-29
20-24
15-19
10-14
5-9
0-4

4,0 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)

Source: U.S. Census Bureau, International Data Base, 2005

52
2.2.4 Retail sales by product category
Table 2-1 shows that, in terms
of turnover development, the
womenswear market increased
by 5% between 2002 and 2005,
while the menswear market highly
increased by 10%; the negative
turnover in 2002 had been trans-
formed into a positive value of 2%
in the first half of 2005. The chil-
drenswear market increased by
9%.
Table 2-1: Outerwear turnover
development in % by sex and pro-
duct categories, 2002 - 2005
There are several ways of seg-
menting the clothing market.
Table 2-1 provides an overview of
the turnover development in the
major product segments, in per-
centages, covering the main
items of ladies, mens and chil-
drens outerwear analysed by this
survey.
All three major segments (ladies,
men, children) see a turnover
'boom' during the years 2003 to
2004, where all turnover values
increased highly and nearly turned
into positive figures.

2002 2003 2004 1st half 2005

Ladieswear -6 -5 -2 -1

coats -10 -8 -5 15

suits -12 1 4 -1

jackets/blazers 2 -8 0 3

dresses -18 -7 -5 -9

skirts -16 4 -8 -10

trousers -4 3 2 -3

jeanswear -4 -2 3 8

blouses -9 -11 -10 -8

Menswear -8 -4 0 2

coats -14 -5 1 10

suits -8 2 8 5

blazers -12 -9 -3 -2

jackets -6 -6 -3 4

trousers -9 -3 2 -1

jeanswear -2 -3 3 2

Childrenswear -9 -10 -1 0

Textiles total -8 -5 -2 -10

Source: BTE Cologne, 2005

53
2.2.5 Consumer behaviour
The latest observations on consu-
mer behaviour based on market
research for this marketing hand-
book show that consumers of
2004/2005:
- react very noticeably to
economic changes and
moods
- tend to buy less since all
wardrobes are full and
basic needs can be fulfilled
less expensively
- are highly sensitive to price
the former belief that
cheap things are bad and
expensive is good, no lon
ger applies
- were concerned about the
introduction of the Euro ()
in the beginning of 2002
and assumed hidden
price increases
- show a clear trend towards
shopping at textile discoun-
ters
2.2.5.1 Consumer preferences
There have been tremendous
shifts in consumer preferences
with regard to the most popular
shops in recent years. Market
leaders confirm that this develop-
ment corresponds directly to
more unpredictable consumer
buying patterns towards much
cheaper goods, closer to the
actual demand (not in advance)
and in shops with more event
character.
A survey of the clothing market
segment shows that many
Germans buy from clothing multi-
ples (20%). Department stores
are in third position at 12% and
are still quite strong, although they
have dropped by 1%. New con-
cepts reinforced the position of
department stores. Smaller spe-
cialised clothing retailers are less
important and it is expected that
this distribution channel will lose
further market share in coming
years.
The most preferred shops among
all female consumers between
the ages of 14 and 64 years are
C&A (56%) in the number one
position, followed by H&M (47%)
and Galeria Kaufhof and Karstadt
(both 38%). They also mentioned
Esprit, Adler, Benetton, Whrl,
Jean Pascale and S. Oliver. All
other retailers are below 5% of all
responses (Source: Kommuni-
kationsanalyse 2004, Brigitte
Magazine, Gruner + Jahr, Ham-
burg, 2004).
54
Table 2-2: Clothing retail channels by market share, 2000 - 2004

in % of total value 2000 2002 2004

Specialists 56 55 54

independent retailers 28 27 25

Clothing multiples 28 28 29

Non-specialists 44 45 46

Department/variety stores 13 13 12

Super- and hypermarkets 5 6 7

Sports shops 3 3 3

Home shopping companies 14 14 15

Other 9 9 9

Total 100 100 100

Source: BTE Cologne, 2005

Table 2-2 shows that many retail Looking at consumer patterns,

channels have lost market share
in the last four years (such as
Independent Retailers (-3%) and
Clothing Multiples (-8%). In con-
trast, Home Shopping is very
popular in Germany, even in con-
trast to other Western European
countries and Switzerland (share:
15%).
market research by Intermedia in
2005 on behalf of Burda Verlag,
Hamburg shows interesting
results, summarised in Table 2-3.
The key fact is that women have a
much greater interest in the latest
fashion trends (82%) than men
(18%). Even when it comes to
special offers, ladies (58.5%) are
more interested than men
(41.5%). Approximately 60%
would like to buy at fixed prices.
Only one third likes to bargain on
prices. Brand awareness is low
among consumers; only one
German in six is concerned about
the brand.

55
Table 2-3: Consumer patterns with regard to interest in fashion, purchase
timing, brand awareness and bargains by sex, 2005

Ladies Men

Interest in Fashion
I am interested in the latest fashion trends 82.0% 18.0%
I often talk about fashion 87.9% 12.1%

Purchase Timing
I often buy fashion at the beginning of the season, 68.2% 31.8%
when the new range comes into the shops
I often buy fashion at the end of the season, 59.0% 41.0%
when prices have already been reduced in many places

Brand Awareness and Bargains

I am very concerned about buying the right brand 58.4% 41.6%
I often buy special offers 58.5% 41.5%

Source: Typologie der Wnsche, Intermedia-Burda Verlag, 2005/2006

2.2.5.2 Consumer expenditure ments in German household

expenditure. A general tendency
The overall disposable income of is for consumers to spend less on
all private German households clothing, especially since the
increased by 2.3% to 1,441 billi- beginning of 2002 and the intro-
on in 2005 compared with 2004. duction of the Euro. Also a large
The private household consump- part of their income is spent on
tion increased by 1.2% to 1,266 services, travel, education, fitness /
billion in 2005 and was in line with health and rent for housing.
the developments of recent
years.
Figure 2-2: Monthly household spending
The latest detailed analysis of on clothing and shoes, 2005
expenditure structures of German
households by the German
Federal Statistical Office in 2005
shows that out of 100 (= 100%),
5.40 was spent on clothing (=
5.4%). Single males have a relati-
vely higher disposable income but
save most on textiles and clot- 0 50 100 150 200
hing. Couples with kids spend the
most on textiles. The self-employ-
Clothing/shoes total Ladieswear/shoes
ed and employees tend to spend
Menswear/shoes Kidswear/shoes
the most on clothing.

Figure 2-2 gives an overview of Source: Federal Statistical Office

the share of the clothing seg- Germany, 2005
56
A different analysis of consumer
expenditure by the CBI in 2004
showed that the per capita con-
sumption for clothing amounted
to 587.00 per year. Table 2-4
shows the annual consumption in
different product groups. A clear
fact is that the per capita con-
sumption has decreased in value
in recent years, as the turnover in
the clothing market has reduced,
whilst the population has increa-
sed.

Table 2-4: Expenditures on outerwear per capita by product categories, 2004

Total (average) 587 / per head

of which:

Women's outerwear 760 / head

Men's outerwear 418 / head
Children's outerwear 546 / head

Source: CBI Market Survey, 2005

The share of clothing expenditure by the BTE (German Association

in all household expenses has fal- of Textile Retailers), German con-
len permanently: by approximate- sumers only spend an average of
ly 0.8% points from 1997 to 2003. 5.05% of their purchases on
According to Table 2-5, published fashion.

Table 2-5: Household spending on clothing (in % of total spending),

1997 - 2003

1997 1998 1999 2000 2001 2002 2003

5.84% 5.69% 5.63% 5.55% 5.39% 5.24% 5.05%

Source: German Federal Association of Textile Retailers (BTE), Cologne, 2005

57
Table 2-6 shows average retail
prices of consumer expenditures
per clothing article.

2003 in 2004 in Table 2-6: Average retail

prices by product categories,
Suit 305 312 2003/2004
Coat 254 216

Sports jacket 191 98

Trousers (classic) 84 89

Trousers (leisure) 71 73

Jeans 76 76

Sweatshirt 76 71

Jacket 148 145

Leather jacket 284 323

Shirt 46 44

Polo shirt 28 28

Tie 32 30

Source: BTE Cologne, 2005

2.2.6 Price developments of clothing (except a remarkably high loss in

Between 2003 and the first half of
2005, the prices for all product
segments in the clothing sector
have decreased only slightly
the first half of 2005), whilst the
total cost of living has increased to
a larger extent. For more details,
see Table 2-7.

Table 2-7: Clothing price index relative to national consumer price index,
2003 - 2005

(Index: 2000 = 100) 2003 2004 1st half

2005

Price index clothing 100.7 100.0 97.9

Price index total cost of living 104.5 106.2 108.1

Source: BTE Cologne, 2005 / base: all private households in Germany

58
2.3 IMPORTS By far the largest product catego-
ry are jerseys, pullovers, cardigans
2.3.1 Total imports and waistcoats (HS code 61.10),
followed by T-shirts and singlets
Table 2-8 gives an overview of (HS code 61.09). As a result, price
import volume in terms of value competition is fiercest in these
and volume of the respective pro- product segments, especially for
duct groups into Germany. The T-shirts. In general, imports from
tendency is that imports have nonEU countries have increased
slightly increased overall, both in in most product segments, thus
terms of value and volume. indicating more sales opportuni-
ties for manufacturers abroad.
Looking at the total import increa- (including, to a large extent, deve-
ses per product segment from loping countries).
2003 to 2004, active sportswear
has increased by 8.5%, mens and
boys outerwear by 10.4%. Only
girls or ladies outerwear (repre-
senting the largest outerwear pro-
duct segment) has decreased by
1.9% (all figures in value terms).
The importance of imports from
non-EU countries depends on the
sector regarding 2003 to 2004.
Whilst in 2003 the share of the
non-EU countries in total imports
of mens or boys outerwear was
59.9%, the share decreased to
57.4% (value) in 2004. The same
analysis of the product segment
ladies and girls outerwear from
2003 to 2004 shows that the
share of non-EU countries in all
imports has increased, from
68.3% to 68.5% (value terms).

59
 Table 2-8: Imports of knitted outerwear by sex and product categories, 2002 - 2004

2002 2003 2004

Tons 1 000 Tons 1 000 Tons 1 000

For men or boys

Coats, raincoats, 1 297 35 121 1 412 36 130 1 403 32 671

anoraks etc. (61.01)

Suits, jackets, outfits, 4 112 86 763 5 067 82 689 7 362 96 440

trousers, shorts etc.
(61.03)

Shirts (61.05) 9 928 198 832 10 015 178 286 7 783 198 762

Total 15 337 320 717 16 494 297 104 20 238 327 874

Total extra EU 11 152 182 344 12 745 178 017 14 693 188 529

For women or girls

Coats, raincoats, ano- 4 227 98 497 7 243 130 088 7 454 121 718
raks etc. (61.02)

Suits, outfits, jackets, dres- 33 380 607 051 40 439 633 234 40 497 605 092
ses, skirts, trousers (61.04)

Blouses and shirt blou- 11 018 281 790 11 714 271 419 12 623 288 580
ses (6106)

Total 48 625 987 338 59 396 1 034 740 60 573 1 015 389

Total extra EU 37 876 640 097 47 727 706 289 48 027 695 522

For both sexes

T-shirts,singlets etc.(61.09) 111 146 1 960 769 132 170 2 127 672 146 863 2 308 693

Jerseys, pullovers, 135 128 2 933 571 151 718 2 866 040 146 076 2 718 103
cardigans, waistcoats
etc. (61.10)

Babies garments (61.11) 9 540 190 681 11 357 196 367 13 935 193 907

Impregnated clothing(61.13) 2 361 47 858 978 19 172 810 15 277

Total 258 174 5 132 878 296 222 5 209 250 307 675 5 235 979

Total extra EU 201 734 3 300 627 238 761 3 548 496 251 423 3 692 544

Active Sportswear

Track suits, ski suits and 7 736 221 841 9 948 238 659 12 617 247 627
swimwear (61.12)

Other sportswear (61.14) 3 196 109 395 3 266 99 921 4 358 119 792

Total 10 932 331 237 13 241 338 580 16 974 367 419

Total extra EU 8 112 206 288 10 284 219 616 13 002 236 840
Source: Office of National Statistics (ONS): Consumer Trends, 2005 deflators.
60
 Table 2-9 shows that the share of
non-EU countries in total imports
for woven outerwear items is
even higher than for knitted items.
78.8% of mens and boys outer-
wear in 2004, for example, origi-
nated from non-EU countries. For
womens or girls outerwear the
share of non-EU countries was
also at a very high level of 70.5%
(year 2004 - value terms). As for
knitted outerwear, there was a
general upswing in imports of
woven outerwear between 2003
and 2004.

Table 2-9: Imports of woven outerwear by sex and product categories, 2002 - 2004

2002 2003 2004

Tons 1 000 Tons 1 000 Tons 1 000

For men or boys

Coats, anoraks, windcheaters 25 038 577 659 28 390 523 800 31 545 486 597
etc. (62.01)

SuitSuits, jackets, outfits, trou- 119 318 2 650 541 126 953 2 592 882 141 808 2 669 557
sers, shorts etc. (62.03)

Shirts (62.05) 36 916 777 378 40 592 755 845 39 776 725 981

Total 181 272 4 005 578 195 934 2 990 221 213 128 3 882 136

Total extra EU 151 938 3 041 561 165 056 3 872 528 181 305 3 059 571

For women or girls

Coats, capes, anoraks, wind 38 207 860 435 44 605 834 477 53 056 853 193
jackets etc. (62.02)

SuSuits, outfits, jackets, dres- 137 961 3 571 079 140 328 3 321 803 155 043 3 410 037
ses, skirts, trousers (6204)

Blouses and shirt blouses 28 905 913 740 27 619 806 313 25 292 691 315
(6206)

Total 205 072 4 005 578 195 934 3 872 528 307 675 5 235 979

Total extra EU 172 674 3 041 651 165 056 2 990 221 251 423 3 692 544

For both sexes

Babies garments (62.09) 4 314 78 969 5 255 79 841 6 203 82 875

Other incl. Impregnated (62.10) 15 396 350 263 16 683 298 629 17 227 266 162

Total 19 711 429 233 21 938 378 469 23 430 349 036

Total extra EU 14 030 315 286 15 026 266 538 15 409 246 329

Source: Eurostat, 2005

61
 2.3.2 Outward Processing Trade (OPT)
A brief analysis of the OPT imports
of outerwear into Germany shows
that most of the countries lost mar-
ket share in 2004, except India with
+1,333%, Latvia with +65% and
China with +6%. This positive deve-
lopment can be mainly explained
by the fact that these countries cur-
rently have a high growth potential
for textile exports.
The losers are Lithuania (-96%),
Bosnia-Herzegovina (-95%),
Slovakia (-94%), Ukraine (-89%)
and Albania (-87%). Romania has
retained the first position, although it
also lost 65% import volume. For
more details, see Table 2-10.

Table 2-10: Largest supplying countries of OPT outerwear, 2002 2004

Po- Country 2002 Change 2003 Change 2004 in

siton in 1000 from 2002 in 1000 from 2003 1000

1 Romania 51.749 -51% 25.264 -65% 8.851

2 Tunisia 43.539 -36% 28.019 -70% 8.545

3 Poland 73.502 -63% 27.429 -79% 5.629

4 Latvia 946 89% 1.791 65% 2.953

5 Bulgaria 16.778 -45% 9.197 -69% 2.860

6 Hungary 12.130 -44% 6.806 -73% 1.831

7 Czech Rep. 8.463 -63% 3.133 -73% 847

8 Slovakia 12.140 -48% 6.355 -94% 397

9 Albania 2.229 39% 3.097 -87% 394

10 Slovenia 3.801 -29% 2.686 -86% 363

11 For.JRep.Mac 7.019 -88% 854 -74% 225

12 Croatia 2.608 -50% 1.293 -84% 205

13 Israel 0 0 71

14 India 921 -99% 5 1333% 71

15 Bosnia-Herz. 2.437 -59% 993 -95% 46

16 Egypt 50 109% 105 -73% 29

Source: Eurostat, 2005

17 China 358 -94% 21 6% 23

18 Ukraine 16.407 -99% 175 -89% 19

19 Lithuania 1.022 -56% 449 -96% 19

20 Maldives 0 0 14

Extra-EU15 12.511.379 -64% 4.548.198 -4% 4.352.872

62
2.3.3 Largest suppliers of outerwear

Table 2-11 shows the imports of

finished products from major sup-
plying countries into Germany
between 2002 and 2004. By far
the leading import country is
Turkey, followed by China and
Italy. The three leading supplying
countries represent 32.5% of all
clothing imports in 2004. Not less
than 74.4% of all imports originate
from non-EU countries.
The winners in terms of sales
increases are Austria (+24%), India
(+23%), China (+16%), Ukraine
(+11%), Belgium (+10%), UK (+10%)
and Bulgaria (+6%). Turkey, as the
number one supplying country,
slightly lost import volume by -4%.
The losers are all from Europe
(except Tunisia): Poland, Tunisia,
Greece, The Netherlands and
Italy with an average decrease of
more than 10% in 2004 compared
to 2003.

63
 Table 2-11: Largest supplying countries of outerwear, 2002 - 2004

Po- Country 2002 Change 2003 Change 2004

siton in 1000 from 2002 in 1000 from 2003 in 1000

1 Turkey 2.489.849 1% 2.515.195 -4% 2.422.190

2 China 1.595.364 9% 1.736.886 16% 2.006.300

3 Italy 1.441.476 -14% 1.234.142 -11% 1.099.218

4 Bangladesh 657.650 30% 852.906 23% 1.052.723

5 Romania 948.283 -6% 893.658 3% 918.882

6 Netherlands 1.027.475 -10% 929.433 -11% 829.627

7 Poland 791.333 -13% 688.828 -18% 561.492

8 Belgium 456.993 0% 456.716 10% 500.114

9 Hong Kong 541.723 -11% 484.653 0% 483.590

10 Czech Rep. 388.059 27% 491.583 -3% 475.157

11 India 402.774 2% 410.431 -7% 381.937

12 France 480.585 -18% 392.764 -5% 371.233

13 Indonesia 353.744 1% 357.655 2% 366.418

14 Bulgaria 292.505 15% 335.689 6% 357.180

15 Utd. Kingdom 387.669 -18% 317.386 10% 347.976

16 Denmark 284.890 4% 294.890 4% 305.728

17 Tunisia 379.198 -14% 325.185 -11% 288.384

18 Greece 314.124 -8% 287.434 -11% 256.609

19 Austria 166.302 16% 192.358 24% 238.105

20 Ukraine 220.425 -8% 203.448 11% 226.280

Intra-EU15 5.037.721 -10% 4.548.198 -4% 4.352.872

Extra-EU15 12.511.379 0% 12.485.409 1% 12.649.499

Total 17.549.100 -3% 17.033.607 0% 17.002.372

Source: Eurostat, 2005

64
2.4 TRADE STRUCTURE
2.4.1 Developments in the retail trade
The major developments in
German clothing retail structure
are as follows:
The clothing retailers were more
or less forced to continue their
trading down policy, or in other
words have not managed to
increase prices. Known brands
are sold at reduced prices and
cheap trade brands have been
created. The higher segment
shows price increases but this is
of absolutely minor importance.
Expansion of price aggressive
retail outlets in the clothing sec-
tor mainly represented by vertical
chains such H&M, MANGO,
ZARA, Vero Moda, Tally Weijl etc.
Other retailers mainly suffer from
decreasing turnover, less profit,
lower frequency in the shops and
increased costs.
Changes in the size structure of
outlets the tendency for larger
units has decreased. Even larger
clothing retailers have lost their
market share or had to leave the
market (such as BOECKER, C&A).
The tendency for more outlets
continues the so called vertical
retailers, who manage the whole
scale from collection develop-
ment, production (outsourcing)
and sales via their own shops,
dominate the best shopping
areas beyond Germanys largest
cities.
New outlets whose main business
is not clothing, such as Tchibo
(coffee sales with over 1000 own
shops) and Aldi (supermarkets)
have gained importance and
become the winners over the
last 2-3 years. Large cash-and-
carry markets have extended
their sales area including the texti-
le range, and also have gained
importance.
Retailers tend to work with fewer
but more efficient clothing sup-
pliers with faster deliveries and
EDP support. Four out of five
companies would like to work with
fewer suppliers. 69% of all retailers
want to buy on a more short-term
basis.
The internationalisation of the
German market with increasing
market share by chains such as
H&M Sweden, GAP USA, Auchan
France (ORSAY, PIMKE), Inditex
(ZARA) and MANGO Spain etc.
continued in 2004/2005, and it
can be expected that the vertical
chains with their fast delivery
rhythms will continue their expan-
sion strategy in the future.
In the future, textiles and clothing
shopping will be more combined
with lifestyle and entertainment in
the German cities, e.g. in the form
of Urban Entertainment Centres
such as Stilwerk or SEVENS in
Dsseldorf or the COLONADEN in
Hamburg.
65
2.4.2 Leading retailers
Table 2-12 gives an excellent
overview of the structure and the
development of the largest
German textile retailers. This ana-
lysis was carried out by the
renowned trade magazine Textil-
wirtschaft/Frankfurt on an annual
basis.

Table 2-12: Major specialised clothing, sports chains and discounters in Germany,
2004/2005

Retail chain Parent company Sector Outlets Turnover

2003 inm.

C&A C&A (Netherlands) General clothing 227 2,690 a)

Hennes & Mauritz Hennes & Mauritz (Sweden) General clothing 282 1,800

Peek & Cloppenburg Peek & Cloppenburg West General clothing 78 1,360

Vgele Vgele (Switzerland) General clothing 352 373

Peek & Cloppenburg Peek & Cloppenburg Nord General clothing 26 342

Whrl Whrl General clothing 41 308

K+L Ruppert K+L Ruppert General clothing 50 185

Zara Inditex (Spain) General clothing 33 161

Orsay Mulliez Group (France) Womenswear 239 540 c)

Sinn Leffers Karstadt/Quelle Womenswear 51 537

Bonita Mode Bonita Group Womenswear 397 260 b)

Ulla Popken Popken Group Womenswear 257 166

Xanaka Mulliez Group (France) Womenswear 77 c)

Pimky Mulliez Group (France) Womenswear 152 c)

M&S Mode Vendex/KBB (Netherlands) Womenswear 77 n.a.

Pohland Pohland Menswear 12 62

Nicolas Scholz Bonita Group Menswear 40 b)

Kids Stores C&A (Netherlands) Childrenswear 77 a)

New Yorker New Yorker Leisure wear 254 440

Mister + Lady Jeans Western Store Beran Leisure wear 193 119

Jeans Fritz Jeans Fritz Leisure wear 200 106

66
 Retail chain Parent company Sector Outlets Turnover
2003 inm.

Runners Point Karstadt/Quelle Sportswear 121 24

Ernstings Family Ernsting Discounter 2) 1049 412

Takko Takko Discounter 781 740

KiK Tengelmann-Gruppe Discounter 1055 652

Adler Metro Group Discounter 609

NKD NKD Discounter 766 366

Zeeman Zeeman Group Discounter 241 86

(Netherlands)

Source: Textilwirtschaft, 2004 / CBI Market Survey, 2004

1) turnover in textiles and clothing 2) mentioned discounters are textile and/or clothing discounters
a), b) and c) only consolidated figures are given

67
Table 2-13 and Table 2-14 give a
good overview of the winners
and losers among clothing retai-
lers in Germany. It may be a good
idea for clothing exporters from
abroad to include the best-perfor-
ming retailers in their list of target
customers. For the members of
the losers list, it can be assumed
that they are not really looking for
new suppliers as they are trying to
manage the decrease in sales
and perhaps even cut down the
list of suppliers.

Table 2-13: The winners in clothing retail, 2003/2004

Name of Retailer 2003 2004 Increase in

(in bn. ) (in bn. ) turnover

Esprit, Ratingen 320 400 + 25.0 %

Tengelmann, Muelheim/R. 652 782 + 19.9 %

Zeeman, Alphen/NL 86 102 + 18.6 %

Goergens-Group, Koeln 85 100 + 17.6 %

Hugo Boss, Metzingen 77 90 + 16.9 %

Source: Textilwirtschaft, Frankfurt/Main, 2004

Table 2-14: The losers in clothing retail, 2003/2004

Name of Retailer 2003 2004 Increase in

(in bn. ) (in bn. ) turnover

Aldi, Essen 1,400 1,100 - 21.0 %

Ludwig Beck, Munich. 93 80 - 14.0 %

Vgele, Sigmaringen 373 346 - 7.2 %

Woolworth, Frankfurt 428 397 - 7.2 %

Sahinler Gruppe, Wrselen 118 110 - 6.8 %

Source: Textilwirtschaft, Frankfurt/Main, 2004

68
2.4.3 Distribution channels

This structure of the textile/clot-

hing retail market can also be split
into two major groups: speciali-
sed retailers and larger forms of
textile retail. For more details, see
Table 2-6.

Table 2-15: Clothing retail channels by market share, 2000 - 2004

in % of total value 2000 2002 2004

Specialists 56 55 54

Independent retailers 28 27 25

Clothing multiples 28 28 29

Non-specialists 44 45 46

Department/variety stores 13 13 12

Super- and hypermarkets 5 6 7

Sports shops 3 3 3

Home shopping companies 14 14 15

Other 9 9 9

Total 100 100 100

Source: BTE Cologne, 2005

2.4.3.1 Retailers important role in the market. A

2.4.3.1.1 Independent specialised
retailers
Independent retailers do not usu-
ally buy directly from developing
countries. With approximately
45,000 textile and clothing shops
all over Germany, they still play an
high percentage of the retailers
are members of a buying associa-
tion that takes over certain functi-
ons from the members such as
purchasing, marketing, logistics
etc.
Market share: 25% in 2004
Trend: Decreasing (2000 = 28%)

69
2.4.3.1.2 Clothing multiples
The most important clothing multi-
ples are C&A (227)*, H&M (282)*,
P&C West and Ansons Mens-
wear (78)* and P&C North (26)*,
Sinn Leffers (51)*, K+L Ruppert
(50)*, C. Vgele (352)* and Whrl
(41)*. New Yorker with 254 outlets
is the largest jeans and sports-
wear chain, followed by Western
Store Beran (approx. 200)* and
Werdin with 40 shops.
The major womenswear multiples
are BiBa (113)* and Appel-
rath_Cpper (14)*, both part of the
Douglas Group, Orsay from
France (239)*, Bonita (397)* and
Ulla Popken for large sizes (257)*.
Menswear multiples are Nicolas
Scholz (40)* and Pohland (12)*.
* number of outlets
Market share: 20% in 2004
Trend: Strongly Decreasing (2000
=28%)
2.4.3.1.3 Department stores
The major department stores are
Karstadt with 122 outlets (as a
part of the Karstadt/Quelle group)
and Galleria Kaufhof with 127 sto-
res, belonging to the Metro group.
Kaufhof has been very successful
with their trading up concept to
Galleria Kaufhof. Another exam-
ples is Woolworth with 330 out-
lets.
Market share: 12% in 2004
Trend: Slightly decreasing (2000
= 13%)
2.4.3.1.4 Mail-order houses
The German mail-order business
is, after the US, the largest market
in the world. The biggest mail-
order house in the world is the
Hamburg based Otto Versand
with many investments/subsidiary
companies abroad. They also
own the German mail order com-
panies Schwab, Baur, Witt, Heine,
Alba Moda and Sport Scheck.
Quelle and Neckermann, the
number two and three in the mar-
ket, are part of the Karstadt
Group. Quelle, as the second lar-
gest mail order house, also holds
major shares in other mail order
houses, such as Schpflin, Peter
Hahn and Madeleine, covering dif-
ferent market segments. Other
larger mail order houses are
Bader and Klingel. Smaller, more
niche market orientated mail
order companies retailing clothing
are Atelier Goldener Schnitt,
Elgance, Bon Prix and Drei
Pagen Versand. Buying clothes
via mail order is quite popular in
Germany, as people trust online
payment and the very well organi-
sed internet infrastructure.
Market share: 15% in 2004
Trend: Slightly Increasing (2000 =
14%)
70
2.4.3.1.5 Textile discounters
Leading discounters are NKD
(approx. 850 outlets), Tengel-
mann (750 clothing outlets), Lidl &
Schwartz (over 1,900 Lidl stores),
Ernstings family (over 1,000 out-
lets) and Takko (721 outlets). Their
buying policy is very much price
oriented. The buying managers
often buy from European based
importers/wholesalers who have
access to the cheapest sourcing
countries worldwide.
Market share: 12% in 2004
Trend: Strongly increasing (2000
= 3%)
2.4.3.1.6 Grocery super- and hyper-
markets
Some examples are: Metro, Aldi,
Edeka/AVA, Tengelmann, Rewe
and Plus markets. The clothing
they sell is mainly restricted to
clothing accessories such as
socks, caps, scarves and so on,
but increasingly includes T-shirts,
shirts, jeans etc. Aldi and Lidl in
particular offer more and more
fashion products alongside their
food- and non-food assortment.
Market share: 7% in 2004
Trend: Slightly increasing (2000 =
5%)
2.4.3.1.7 Others
Apart from street markets and
ex-factory sales directly from the
fashion manufacturer, the clothing
distribution via non textile related
retailers has gained importance.
The most prominent example is
the Tchibo Group. This Hamburg
based company was originally a
coffee roaster selling coffee in
more than 3,000 outlets all over
Germany. Since the beginning of
the nineties, every week a new
Tchibo also sells other items,
among which clothing plays a very
important role. The company
mainly buys from importers/who-
lesalers according to their own
specifications. Many Germans
have bought garments from
Tchibo, and the market forecast
for this form of textile distribution
is excellent.
Market share: 9% in 2004
Trend: Constant (2000 = 9%)
2.4.3.2 Sales intermediaries
2.4.3.2.1 Clothing manufacturers
Manufacturing companies play a
pivotal role in the clothing distribu-
tion system in Germany. Most of
the German clothing brands work
in a dual way: On the one hand
they buy directly from developing
countries in the Far and Middle
East on a full import basis (finished
products). On the other hand,
Germany is by far the largest
European buyer of clothing on
outsourcing basis (OPT business).
71
Due to its proximity to Eastern
European countries, Germany
was the pioneer country in out-
sourcing production in the
neighbouring countries to the
East. The clothing industry has
been shrinking since the begin-
ning of the nineties, to the point
where now only the fittest have
survived. There are over 500
reputable clothing companies in
Germany. They can be contacted
through the German Clothing
Manufacturers Association (BBI) in
Cologne.
Larger companies such as TOM
TAILOR, CARLO COLUCCI, S. OLI-
VER, STREET ONE and so on
(also) sell through their own out-
lets. These brands are normally
positioned in the mid- to upper
market segment. The tendency
towards self-retailing by clothing
brands/manufacturers has increa-
sed and taken on different forms
such as concessions, shop-wit-
hin-the-shop, sales corners in
department stores and own
mono-brand shops.
2.4.3.2.2 Central buying associations
55% of all independent clothing
retailers in Germany are members
of a buying association. These
figures underline the significant
role of buying associations for the
majority of specialised indepen-
dent retailers. The buying policy is
similar to that of multiple stores
(buying directly or through buying
agents abroad). They operate in
the mid- to upper market seg-
ment.
Some buying associations had to
close down or had serious pro-
blems (such as Stex, Kaufring).
The leading associations are
Katag/abz in Bielefeld, KMT in
Cologne and Unitex in Neu-Ulm.
Some, such as Ardek in
Hofheim/Wallau specialise in chil-
drenswear, or Intersport in Munich
specialising in active sports- and
hardware. The German buying
associations also have members
from the Netherlands, Belgium,
Austria and Switzerland.
2.4.3.2.3 Sales agents
Sales agents for clothing in
Germany play a major role in the
market, especially for the
renowned clothing brands. The
more reputable agents are mem-
bers of the Central Association of
German Sales Agents (CDH) in
Cologne. They often have their
own showrooms in fashion cen-
tres of major German cities such
as Neuss/Dsseldorf, Frankfurt,
Hamburg, Munich and so on. Only
strong manufacturers from non-
European countries with a market
oriented range and an excellent
service might find the right partner
in the CDH News published
monthly.
72
2.4.3.2.4 Importers/wholesalers
It is estimated that there are over
1,000 importers/wholesalers for
clothing in Germany. They range
from very small units run by the
owner, up to larger companies
with more than 100 employees
worldwide such as Miles, Jebsen
& Jessen, Nickel etc. They often
operate through their buying
offices in the Far East, which take
over the order and control functi-
on on the sourcing spot. The
importers/wholesalers have an
important role, they have excel-
lent know-how about worldwide
sourcing and supply directly to all
kinds of retailers in Germany and
the neighbouring countries. The
most reputable importers are
members of the Association of
non-food importers (VFI) in Ham-
burg.
2.5 GERMAN FASHION TRADE
FAIRS
For womenswear, the main event
not only for Europe but also
worldwide is the CPD Fashion Fair
in Dsseldorf, which is organised
twice per year (February and July)
by the IGEDO company.
Approximately 44,000 visitors and
around 1,500 international exhibi-
tors attend per event. The fair
organisers have grouped the fair
in different theme worlds (CPD
Show, Gallery Show, CPD White
Show, New Discovery Fashion).
For manufacturers from emerging
or developing countries the so
called Global Fashion (a fair within
the fair) of the CPD in Dsseldorf is
generally a good choice, since
many buyers from Germany,
Belgium, Luxemburg, Netherlands
as well as to a certain extent from
Austria and Switzerland tend to
visit this fair when they look for
new suppliers.
Leading fashion fairs have suffe-
red from the market develop-
ments. Nevertheless, for main-
stream fashion manufacturers
from developing countries, the
German clothing fairs are still a
very good choice (from a com-
mercial point of view).
For the active sportswear market
(including footwear and sports
equipment), which is partially
covered by the products specified
for this study, the ISPO Fair
in Munich plays a leading role
for Germany and Europe.
Approximately 1,600 exhibitors
from more than 40 countries
show their products in February
and July each year. The ISPO
management has split up the fair
into 14 special fairs such as
Teamsport ISPO, Fitness ISPO,
Wellness ISPO, etc.
There have been tremendous
changes and challenges for the
German textile and clothing fairs
since 2000 and this trend can be
expected to continue in the next
few years. The shift in the classi-
cal menswear segment from
Cologne to Dsseldorf was the
initial factor.
73
Some two years back many repu-
ted jeans and sportswear brands
moved to the Bread and Butter in
Berlin. The fair organisers are per-
manently working on developing
the fair structure and services: the
idea being that the visitor should
have the most efficient and conve-
nient way to become informed
about fashion trends and to buy
the clothing they require.
In most clothing segments, from a
commercial point of view, the
German fairs still have the leading
position within Europe although
some other fairs (particularly in
Italy) have taken over the fashion
leadership. Among German retai-
lers, the fairs mentioned above
are regarded as information plat-
form No. 1 to a very large extent.

Table 2-16: German fashion trade fairs, 2006

Trade fair Date Location

Munich Fashion Fair Men 22.24.1.2006 Munich

SPIRIT OF FASHION Home of Underground Fashion 27.29.1.2006 Berlin

CO Cologne Order 27.29.1.2006 Cologne

BREAD & BUTTER BERLIN tradeshow for selected brands 27.29.1.2006 Berlin

PREMIUM SHOWROOM 28.31.1.2006 Berlin

Designer-Kollektionen und Accessoires

ispovision Internationale Fachmesse fr 29.1.1.2.2006 Munich

Sportstyle - Fashion inspired by Sports

CPD DSSELDORF includine Global Fashion 5.7.2.2006 Duesseldorf

MMC KIDS Collections Kinder Mode Messe 11.13.2.2006 Schkeuditz

hop (Hamburger Orderpremiere) 12.14.2.2006 Hamburg

Die Modefachmesse fr den Norden

Munich Fashion Fair WoMen 18.21.2.2006 Munich

BREAD & BUTTER BERLIN tradeshow for selected brands July 2006 Berlin

Modatex Modatex Fashion Fair 9.11.7.2006 Essen

ispovision Internationale Fachmesse fr Sportstyle - 16.18.7.2006 Munich

Fashion inspired by Sports

SPIRIT OF FASHION Home of Underground Fashion 21.23.7.2006 Berlin

CPD DSSELDORF 23.25.7.2006 Duesseldorf

74
 Trade fair Date Location

global fashion Private Label, Production & Sourcing 23.25.7.2006 Duesseldorf

MMC Fashion Leipzig Mitteldeutsche Mode Messe 5.7.8.2006 Schkeuditz

hop (Hamburger Orderpremiere) Die Modefachmesse fr 6.8.8.2006 Hamburg

den Norden

Munich Fashion Fair WoMen 12.15.8.2006 Munich

Kind + Jugend Internationale Kinder- und Jugend-Messe 15.17.9.2006 Cologne

Kln

Import Shop Berlin 15.19.11.2006 Berlin

Source: m+a Expo Database, 2005 / 2006

Further details to fairs (e.g. number of exhibitors, product range and visitors) can be
reviewed on the website www.auma.de.

75
2.6 LIST OF MAJOR BUYERS OF LADIES, MENS AND
CHILDRENS WEAR IN GERMANY

Clothing Chain Stores

Bonita Gefhl fr Mode Product range: Womenswear

GmbH & Co. KG Price segment: Lower to mid level
Kesseldorfer Rott 39 Number of outlets: 526
D - 46499 Hamminkeln
Tel.: +49 2852 9500
Fax: +49 2852 950100
info@bonita.de
www.bonita.de

E.Breuninger GmbH & Co. Product range: Ladies, mens and

Marktstr. 1 3 childrenswear
D - 70173 Stuttgart Price segment: Upper level
Tel.: +49 711 211-0 Number of outlets: 14
Fax: +49 711 2 36-15 54
kundenservice@breuninger.de
www.breuninger.de

C&A Mode KG Product range: Ladies, mens and

Bleichstr. 20 childrenswear
D - 40211 Dsseldorf Price segment: Lower to mid level
Tel.: +49 211 166 0 Number of outlets: 247 + 96 Kids
Fax: +49 211 1662563 Stores
service@CundA.de
www.cunda.de

Douglas Holding AG Product range: Ladies (Appelrath-

Kabeler Str. 4 Cpper) and mens (Pohland) wear
D - 58099 Hagen Price segment: Mid to upper level
Tel.: +49 2331 690 0 Number of outlets: 1102 (Germany),
Fax: +49 2331 690 271 497 (abroad)
info@douglas-holding.com
www.douglas.de
www.douglas-holding.de

Reiner Appelrath Cpper Product range: Womenswear

Nachf. GmbH Price segment: Mid to upper level
Zeppelinstr. 2 Number of outlets: 14
D - 50667 Kln Note: belongs to Douglas Holding AG
Tel.: +49 221 205990
Fax: +49 221 2573838
info@appelrath-cuepper.de
www. appelrath-cuepper.de
76
Pohland-Herrenkleidung
GmbH & Co. KG
Brckenstrae 17
D - 50677 Kln
Tel.: +49 221 270497 0
Fax: +49 221 270497 39
info@pohland.de
www.pohland.de
Esprit Europe GmbH
D - 40842 Ratingen
Tel.: +49 2102 123 0
Fax: +49 2102 123 45 100
www.esprit.com
www.esprit-online-shop.com
Hettlage + Fischer GmbH
Industriestrae 1
D - 48644 Coesfeld-Lette
Tel.: +49 2546 9345 0
Fax: +49 2546 9345 79
info@hettlage-fischer.com
www.hettlage-fischer.de
H&M Hennes & Mauritz
GmbH
Spitalerstrasse 12
D - 20095 Hamburg
Tel: +49 40 350 95 50
www.hm.com
Orsay GmbH
Tannenstr. 20
D - 77731 Willsttt-Eckartsweier
Tel.: +49 7854 963 0
Fax +49 7852 910 909
www.orsay.com
Product range: Menswear
Price segment: Mid to upper level
Number of outlets: 10
Note: belongs to Douglas Holding AG
Product range: Ladies, mens and
childrenswear
Price segment: Upper level
Number of outlets: 580 directly
managed retail stores and over
6,000 wholesale outlets
Product range: Ladies, mens and
childrenswear
Price segment: Mid to upper level
Number of outlets: 3
Product range: Ladies, mens and
childrenswear
Price segment: Lower level
Number of outlets: 282
Product range: Womenswear
Price segment: Lower to mid level
Number of outlets: 420 shops in 8
countries (231 in Germany)
77
Peek & Cloppenburg KG Product range: Ladies mens and
Berliner Allee 2 childrenswear
D - 40212 Dsseldorf Price segment: Upper level
Tel.: +49 211 3662 0 Number of outlets: 70
Fax: +49 211 3662 605
dialog@peekundcloppenburg.de
www.peekundcloppenburg.de

SinnLeffers AG Product range: Ladies mens and

Batheyer Str. 115 117 childrenswear
D - 58099 Hagen Price segment: Mid to upper level
Tel.: +49 2331 620 0 Number of outlets: 51
Fax: +49 2331 620 100
info@sinnleffers.de
www.sinnleffers.de

s.Oliver Bernd Freier GmbH Product range: Ladies, mens and

& Co. KG childrenswear
Ostring Price segment: Mid to upper level
D - 97228 Rottendorf Number of outlets: 120
Tel.: +49 93 02 / 3 09 0
Fax: +49 93 02 / 3 09 9426
info@s.Oliver.de
www.soliver.de

Takko Holding GmbH Product range: Ladies, mens and

Alfred Krupp Str. 21 childrenswear
D - 48291 Telgte Price segment: Lower level
Tel.: +49 2504 923 0 Number of outlets: 920
Fax: +49 2504 923 277
info@takko.de
www.takko.de

Tchibo GmbH Product range: Ladies, mens and

berseering 18
D - 22297 Hamburg
Tel.: +49 40 6387 2876
Fax: +49 40 6387 2530
www.tchibo.de
childrenswear
Price segment: Lower level
Number of outlets: over 1000

78
Charles Vgele Deutschland
GmbH
Zeppelinstrasse 2-8
72488 Sigmaringen
Tel.: +49 7571 723 111
Fax +49 7571 723 171
www.voegele-mode.de
Wehmeyer GmbH & Co. KG
Rotter Bruch 17
D - 52068 Aachen
Tel.: +49 2 41 / 51 97 0
www.wehmeyer.com
Rudolf Whrl AG
Lina-Amman-Str. 10
D - 90471 Nrnberg
Tel.: +49 911 8121 0
Fax: +49 911 8121 100
info@woehrl.de
www.woehrl.de
Department Stores (selection):
Zara
Moenckebergstrasse, 10
D - 20095 Hamburg
Tel.: +49 40 30 96 22 22
Fax: +49 40 30 96 22 40
www.zara.de
Deutsche Woolworth GmbH
& Co.OHG
Lyoner Str. 52
D - 60528 Frankfurt
Tel.: +49 69 6601 1
Fax +49 69 6601 2399
info@woolworth.de
www.woolworth.de
Product range: Ladies, mens and
childrenswear
Price segment: Lower to mid level
Number of outlets: 352
Product range: Ladies and menswear
Price segment: Lower to mid level
Number of outlets: 44
Product range: Ladies, mens and
childrenswear
Price segment: Upper level
(brands mainly)
Number of outlets: 39
Product range: Ladies and
menswear
Price segment: Lower to mid level
Number of outlets: 30
Product range: Ladies, mens and
childrenswear
Price segment: Lower level
Number of outlets: 330
79
Karstadt/Quelle AG
Theodor-Althoff-Str. 2
D - 45133 Essen
Tel.: +49 201 727 1
Fax: +49 201 727 5216
www.karstadtquelle.de
Metro AG
Schlterstrae 1
D - 40235 Dsseldorf
Tel.: +49 211 6886 0
kontakt@metro.de
www.metro-ag.de
www.metrogroup.de
Kaufhof Warenhaus AG
Leonhard-Tietz-Str. 1
D - 50676 Kln
Tel.: +49 2 21 / 2 23 0
Fax: +49 2 21 / 2 23 28 00
service@galeria-kaufhof.de
www.galeria-kaufhof.de
Strauss Innovation GmbH &
Raiffeisenstr. 15-18
D - 40764 Langenfeld
Tel.: +49 2173 99 0001
Fax +49 2173 99 23 90
www.strauss1902.de
Wal-Mart Germany GmbH &
Co. KG
Friedrich-Engels-Allee 28
D-42103 Wuppertal
Tel: +49 202 2829 0
Fax: +49 202 2829 1724
kontakt@wal-mart.com
www.walmart.de
Product range: Ladies, mens,
childrenswear and sportswear
Price segment: Mid to upper level
Number of outlets: 122
Product range: Ladies, mens,
childrenswear and sportswear
Price segment: Mid to upper level
Number of outlets: Real/Extra 560,
Kaufhof 127
Product range: Ladies, mens and
childrenswear
Price segment: Mid to upper level
Number of outlets: 127
Note: belongs to Metro AG
Product range: Ladies and
menswear
Price segment: Lower to mid level
Number of outlets: 93
Product range: Ladies, mens,
childrenswear and sportswear
Price segment: Lower level
(for clothing)
Number of outlets: 88
80
Clothing Manufacturers (importing) and Wholesalers/Importers:

HEINRICH NICKEL GMBH & Importer of mens, ladies and

CO.KG childrens sportswear
Wilhelm-Bergner-Str. 10
D - 21509 Glinde
Tel.: +49 40 7270241
Fax: +49 40 7270224
www.nickel-sportswear.com

APRIORI Textilvertriebs Wholesaler of ladies wear

GmbH
Harkortstr. 24
D - 48163 Mnster
Tel.: +49 (211) 438 09 05
Fax: +49 (211) 435 04 83

ARA Moden GmbH & Co.KG Manufacturer of classic womenswear

Arastr. 2 (CMT business mainly)
D - 85579 Neubiberg
Tel.: +49 89 600180
Fax: +49 89 60018128
www.ara-moden.de

Bambino Dress Young Manufacturer/importer of

Fashion GmbH childrenswear
Hauptstr. 43
D - 09496 Marienberg
Tel.: +49 3735 91430

Bay City Textilhandels & Importer for jeans, casual and

Co.KG active sportswear
AnN Slagboom 7
D - 22848 Norderstedt
Tel.: +49 40 53413300
Fax: +49 40 53413301

81
F.W. Brinkmann GmbH Manufacturer of classic mens and
Waltgeristr. 1-5 sportswear (mainly CMT business
D - 32049 Herford brand orientated)
Tel.: +49 5221 884 0
Fax: +49 5221 884 281
www.bugatti.de

Bltel Bekleidungswerke Manufacturer of mens sportswear

GmbH
Rheiner Str. 28
D - 48499 Salzbergen
Tel.: +49 5976 270
Fax: +49 5976 27410
www.bueltel.de

elho Sportswear GmbH Manufacturer of active and casual

Richard-Reitzner-Allee 8 sportswear (full import and CMT)
Haus D
D - 85540 Haar
Tel.: +49 89 42091 0
Fax: +49 89 42091 213
www.elho.de

Frontline Leather Fashion Importer of garments of all kinds

GmbH
Werkstrae 11
D - 21218 Seevetal
Tel.: +49 4105 6105 0
Fax: +49 4105 6105 64
www.frontline.de

GARDEUR AG Manufacturer of classic ladies and

Alsstrae 155 menswear specialised in trousers
D - 41063 Mnchengladbach (CMT business brand oriented)
Tel.: +49 2161 816 0
Fax: +49 2161 183833
www.gardeur.de

82
HUCKE AG Multi Brand manufacturer of ladies,
Ravensberger Str. 41 mens and childrenswear (full import
D - 32312 Lbbecke and CMT)
Tel.: +49 5741 364 0
Fax: +49 5741 364 414
www.hucke.de

Mail Order Companies

ALBA MODA GMBH Product range: Ladies and
Daimlerstr. 13 menswear
D - 32108 Bad Salzuflen Price segment: Mid to upper level
Tel.: +49 5222 920 0 Note: Fashion orientated (not young
Fax: +49 5222 920 899 fashion)
www.albaModa.de

Baur Versand Product range: All kinds of goods,

(GmbH & Co KG) ladies, mens, childrenswear
Bahnhofstrae 10, Price segment: Mid market level
96224 Burgkunstadt Note: one of the larger mail-order
Tel.: +49 180 530 50 50 companies
www.baur.de

BRUNO BADER Product range: All kinds of goods,

GmbH + Co KG ladies, mens, childrenswear
Maximilianstrae 48 Price segment: Mid market level
D - 75172 Pforzheim Note: one of the larger mail-order
Tel.: +49 180 5 222 111 companies
Fax: +49 180 5 222 777
www.bader.de

CYRILLUS DEUTSCHLAND Product range: Ladies, mens, chil-

Sonneaue 69 drenswear
D - 47804 Krefeld Price segment: Mid level
Tel.: +49 180 5 095 095 Note: Niche market mail-order house
Fax: +49 180 5 000 955
www.cyrillus.de

83
HEINRICH HEINE GMBH Products: Home textiles, furniture,
Windeckstr. 15 accessories, ladies, menswear
D - 76135 Karlsruhe Price segment: Mid to upper level
Tel.: +49 721 9910 Note: more classic styles
Fax: +49 721 9911886
www.heine.de

Versandhaus Robert Klingel Product range: All kinds of goods,

Sachsenstr. 23 ladies, mens and childrenswear
D - 75177 Pforzheim Price segment: Mid level
Tel.: +49 180/53 200
Fax:+49 180/5 30 56 70
www.klingel.de

Neckermann Versand AG Product range: All kinds of goods,

Hanauer Landstrae 360 ladies, mens, childrenswear
D - 60386 Frankfurt am Main Price segment: Mid market level
Tel.: +49 180 55414 Note: one of the larger mail-order
www.neckermann.de companies

Otto (GmbH & Co KG) Product range: Ladies, mens and

Wandsbeker Strae 3-7 childrenswear and other goods
D - 22172 Hamburg Price segment: Lower to mid level
Tel.: +49 40 6461 0 Note: Largest mail order house in the
Fax: +49 40 6461 8571 world selling worldwide
www.otto.de

SportScheck GmbH Product range: All kinds of goods,

Sendlinger Str. 6 ladies, mens and childrenswear,
D - 80331 Mnchen sportswear
Tel.: +49 180 55050* Price segment: Mid to upper level
Fax: +49 180 55051*
www.sportscheck.com

84
Jeans-, Sportswear and Young Fashion

Western Store Beran Product range: Jeans and sports-

Sprottauer Str. 4 8
D - 90475 Nrnberg
Tel.: +49 911 98476 0
Fax: +49 911 98473604
www.wsberan.de
wear
Price segment: Lower to mid level
Number of outlets: 200

DIESEL DEUTSCHLAND Product range: Jeans, young fashion

GMBH Price segment: Mid to upper level
Rather Str. 49B Number of outlets: 11
D - 40476 Dsseldorf
Tel.: +49 211 418 56 0
Fax: + 49 211 412 298
www.diesel.com

Jeans Palast Grgens GmbH Product range: Jeans, young fashion

Schildergasse Price segment: Mid to upper level
D - 50667Kln, Altstadt-Nord Number of outlets: 48
Tel.: +49 221 2578649
Fax: +49 221 2582510

Jeans Fritz Product range: Jeans, leisurewear

Handelsgesellschaft Price segment: Mid level
fr Mode mbH Number of outlets: 201
Tengerner Strae 143
D - 32609 Hllhorst
Tel.: +49 (0) 5744 512 0
Fax: +49 (0) 5744 512 111
www.jeans-fritz.de

New Yorker S.H.K Jeans Product range: Jeans, leisurewear

GmbH Price segment: Mid level
Hansestrae 48 Number of outlets: 275
D - 38112 Braunschweig
Tel.: +49 531 2135 0
Fax: +49 531 2135 187
www.newyorker.de

85
VF GERMANY TEXTILHAN- Product range: Jeans
DELS GMBH H.I.S. Division Price segment : Mid to upper level
Daimler Str. 15 Note: Manufacturer + clothing chain
D - 85748 Garching/ Mnchen
Tel.: +49 89 329070
Fax: +49 89 32907108
www.his-jeans.de

MUSTANG, Bekleidungs-
werke GmbH & Co.KG Product range: Jeans and sports-
Austrae 10 wear
D - 74653 Knzelsau Price segment : Mid to upper level
Tel.: +49 7940 125 0 Note: Manufacturer + clothing chain
Fax: +49 7940 125 102
www.mustang.de

Buying Associations
ARDEK EG
Robert Bosch Str. 9 Product range: Products for children,
D - 65719 Hofheim-Wallau childrenswear
Tel.: +49 6122 72 0 Price segment: Mid to upper level
Fax: +49 6122 72338 Member companies: 408
www.ardek.de

INTERSPORT
DEUTSCHLAND EG Product range: (Active) sportswear
Wannenckerstr. 50 Price segment: Mid to upper level
D - 74078 Heilbronn Member companies: 1,450
Tel.: +49 7131 288 0 Note: Market leader for active
Fax: +49 7131 21257 sportswear
www.intersport.de

KATAG AG
Stralsunder Str. 5 Product range: Mens, ladies and
D - 33605 Bielefeld childrenswear
Tel.: +49 521 292 800 Price segment: Mid to upper level
Fax: +49 521 292 810 Member companies: 700
www.katag.de

86
KURTENBACH GMBH & CO. Product range: All kinds of garments
KG G TEXTILGROHANDEL Price segment: Lower level
Offheimer Weg 45 Member companies: 2000
D - 65549 Limburg
Tel.: +49 6431 503 0
Fax: +49 6431 503 201

Westdeutsche Product range: Mens, ladies and

Handelsgesellschaft childrenswear
Potthoffstr. 15 17 Price segment: Mid level
D - 58095 Hagen Member companies: approx. 380
Tel.: +49 2331 3960
Fax: +49 2331 396100

87
Outerwear

I T A LY
3 I T A LY
3.1 GENERAL ECONOMIC
SITUATION
Italys Gross National Income
(GNI) has been slightly growing in
recent years due to high exports
and consumption. For 2005 there
is expected to be stagnation while
the forecast for 2006 is for growth
of about 1.0%. In 2003, the eco-
nomic growth rate amounted to
2.75% while in 2005 the rate is
around 1.6%. Italy also ranks in line
with average inflation rates in the
other EU countries and
Switzerland. The overall inflation
rate in Italy was 1.8% in June 2005.
However, Italy is one of the coun-
tries ranked highest for unemploy-
ment rates in Western Europe at
7.9% in 2005.
Italys current population is 58.5
million; the country has developed
to an economic level similar to that
of countries such as Germany,
France or United Kingdom. Before
1945, Italy was quite rural and
today the country is still characte-
rised by an agricultural South with
an unemployment rate of 20%
and a few big state-owned com-
panies. On the other hand, the
rich North has a favourable eco-
nomic climate and many success-
ful private companies. The pre-
sence of the state is a general
problem for the whole country
and hinders full economic deve-
lopment. Italy has to deal with illicit
work on a large scale. The Italian
government is trying to directly
reduce the number of unemploy-
ed workers and employees by
employing them in national com-
panies.
88
3.2 THE MARKET FOR
OUTERWEAR
3.2.1 Market size
Italy is the third biggest clothing
market in Europe, behind
Germany and the UK, and there-
fore plays a major role in the
European fashion business. The
market size for mens and boys
outerwear stands at 1.34 Bn.
and the womens and girls mar-
ket stands at 2.03 Bn. .
3.2.2 Market characteristics
The Italian clothing market has tra-
ditionally been mainly supplied by
a strong national apparel industry,
comprised primarily of family-
owned production companies.
These small to medium size com-
panies are flexible and often highly
specialised in specific products.
They are able to react quickly to
market needs. The strong com-
munity within these companies
allows the Italian companies to
produce higher quality goods and
to be more effective. About 90%
of the small firms are geographi-
cally concentrated and often build
so-called conzorzii, e.g. for
export group marketing activities.
However, the Italian fashion busi-
ness is facing a highly visible crisis.
The Labour Unions have called on
fashion employees to protest, as
the government plans to introdu-
ce a labelling obligation for
Chinese products. The threat to
close outlets or shift productions
abroad is widespread, as it was in
the early 80 s. The problems in
Italian fashion business are also
due to its own structure.
Therefore many companies have
begun or are planning to embark
on restructuring processes.
Nonetheless, the Italian clothing
industry is one of the most com-
petitive within Western Europe
and imports of outerwear
encounter difficulties in finding
suitable market access. The Italian
clothing industry itself is highly
export oriented and plays an
important role in the economic
situation of the whole country.
540,000 workers directly depend
on the Italian clothing industry. Italy
is a leading country for clothing
(and textiles) worldwide. Clothing
exports are double the imports.
Italian consumers are very much
brand oriented, but also are loo-
king for items which offer value for
money. In recent years, the con-
sumers have also become more
price oriented and are known for
their high demands regarding
quality. Because of the high spe-
cialisation of the Italian producers
and their offer of very sophistica-
ted collections, manufacturers
from abroad should avoid copying
Italian outerwear.
Cheaper and lighter clothing is
more often sold in the south of
Italy, where the climate is warmer
and there is less income per
capita. There is more expenditure
on clothing in the richer North than
in the South, although more
people live in the South of Italy.
89
3.2.3 Demographic Characteristics
Italy is known as a family loving
country where children and
mothers play an important role in
society. Less known is the fact
that the formerly high birth rates in
Italy have dramatically dropped
since 1975 - more than in other
European countries. The situation
is similar to that of Germany, but
even more marked.
The consequences of this
decrease in the Italian population
is not only that less childrenswear
is sold, but major changes are
required on the production side.
Since clothing production in Italy
has a tradition of small family-
owned companies, there are
negative effects due to smaller
family sizes. The owners are no
longer able to run the company
with fewer family members.

Figure 3-1: Age structure of the Italian population by sex, 2005

Italy: 2005
100+
95-99
90-94
male 85-89
80-84
female
75-79
70-74
65-69
60-64
55-59
50-54
45-49
40-44
35-39
30-34
25-29
20-24
15-19
10-14
5-9
0-4

3,5 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
Population (in millions)

Source: U.S. Bureau of the Census, International Data Base

The most numerous group in the Another consequence is that

population is the 35 - 39 age
group, with a total of 5 million inha-
bitants. Compared to this age
group, there is nearly half of that
number in the lowest age group,
that is, the newborn 4 year old
segment (2.5 million persons).
However, the reduction of the
Italian population seems to have
stabilised at a low level. Figure 3-1
shows further details.
parents often cannot find a suc-
cessor for their clothing business.
Since these small family compa-
nies are flexible and highly service
oriented and also dominate the
independent shops, the whole
clothing distribution in Italy is affec-
ted.
90
3.2.4 Retail sales by product category
The shares of the different apparel
segments (styles) of formal and
casual clothing, leisurewear and
active sportswear in Italy are simi-
larly structured to the more tradi-
tional oriented British clothing
market. Table 3-1 shows the
dominant role in sales of formal
clothing: 43% of menswear sold in
Italy is formal wear as is 47% of
womenswear. Compared to other
European countries, the share of
formal wear is very high.
Casualwear has a market share of
30% for menswear and 29% for
womenswear and is a preferred
product category of the Italian
consumer, as in all other Western
European countries. Within this
product group, shirts and trousers
have for the highest shares in
sales. Jeans and trousers repre-
sent one third of the Italian market
for woven outerwear. However,
casualwear as the Italians under-
stand it has a very sophisticated
touch with high quality fabrics and
basic but elegant designs in com-
parison to the Northern European
markets.
Basic leisure wear is less impor-
tant in Italy and only represents
20% (menswear) and 19%
(womenswear) of the total clot-
hing market. Looking at the sepa-
rate product categories it can be
observed that casualwear trou-
sers, for example, are sold more
often in Italy than (basic) jeans.
The minor role of this segment,
that is mainly produced by manu-
facturers from abroad, can be
explained by the Italian taste for
more elegant styles.

Table 3-1: Shares of outerwear by sex, 2004

In % of total value Men Women In % of total value Men Women

in million in million

Formal Clothing 43 47 Casualwear 30 29

Coats/raincoats 568 1.089 Outdoor jackets 1.014 1.096

Suits/jackets 998 1.804 Shirts 1.206 1.702

Trousers 1.979 2.512 Jumpers/cardigans - 1.593

Dresses/skirts - 2.324 Pullovers 1.684 -

Shirts/blouses 1.206 1.702 Trousers 1.979 2.512

Basic leisurewear 20 19 Active sportswear 7 5

T-shirts 1.043 1.643 Sportswear 694 771

Jeans 1.405 966 Other 509 375

Source: CBI Rotterdam, 2005

91
3.2.5 Consumer behaviour
3.2.5.1 Consumer preferences
Table 3-2 shows the development
of the preferred types of retail chan-
nels for clothing from 2000 to 2004.
The table indicates that Italian con-
sumers mainly prefer to buy clothing
in independent shops. This retail
sector still accounts for half of the
total Italian clothing retail market.
The main reasons why Italian con-
sumers prefer independent retailers
is that these shops are somehow
closer to the consumer. Further-
more, these boutique-like shops
offer personal contact and more
through independent shops ex-
presses the desire for service and
quality. A graphic illustration of the
2005 situation is given in Chapter
3.4.3.1 Retailers.
Generally speaking, the Italian con-
sumer is extremely quality and
fashion conscious, but very hesitant
and looks only for products which
he or she is really convinced of.
The fact, that Italians are more and
more price oriented as consumers
can be derived from the increasing
role of hyper- and supermarkets in
the Italian retail market, where
mens and childrenswear in particu-

Table 3-2: Clothing retail channels by market shares, 2000 - 2004

Source: Trade Estimates, 2005

In % of total value 2000 2002 2004

Specialists 69 69 68

Independent retailers 52 51 49

Clothing multiples 17 18 19

Non-specialists 31 31 32

Department/variety stores 8 8 8

Hyper- and supermarkets 10 11 12

Sports shops 4 4 4

Home shopping companies 2 2 2

Street markets and other 7 6 6

Total 100 100 100

service. The formerly very strong
market position of independent
retailers has been weakened, but is
still clearly dominating the buying
decisions of the consumers. The
high share of clothing consumption
lar is bought. At the same time, con-
sumers have a high brand aware-
ness. This is particularly evident in
the segment of childrens clothing.
Many children love to have clothing
with pictures of current trends for
kids on it.
92
3.2.5.2 Consumer expenditure
Italy, in terms of consumption
volume of clothing, belongs to the
top four countries within Europe
together with France, the UK and
Germany. The consumption of
clothing will, according to most
recent estimates, account for
45.7 Billion in 2006. Over the last
few years, spending on clothing in
Italy has gradually increased. The
average growth rate of clothing
consumption between 2003 and
2006 is 2.5% annually. More
details can be taken from Figure
3-2.
According to the press and mar-
ket surveys, the attitude of Italians
towards fashion items has dete-
riorated. It is foreseen that 42% of
the population will reduce their
expenditure on clothes in the near
future. This is the highest figure
within the last 15 years. The stron-
gest decrease is expected for the
next years in the outerwear sec-
tor, where 46.2% will cut their
expenses.
Figure 3-2: Consumption of womens-
wear and menswear, 2003 - 2006
46
45
44
43
42
41
40
Source: Eurostat, 2005, (f)=forecasts
According to Nielsen (2005) the
share of clothing expenses in total
expenses has decreased from
2000 to 2005, with a peak in 2001
(1.6%) and 2003 (1.5%). In 2005
the decrease in the shares of clot-
hing expenditure was only 0.3%,
whereas total consumption grew
by 2.2%. This whole development
was and is a kind of shock for the
Italian clothing market which ran
through an euphoric clothing con-
sumption phase from 1995 to
2000.
It is notable that Italian women do
not buy that much more clothing
than men. In other European
countries like UK or Switzerland,
womens expenditure for clothing
is nearly double that of men. In
Italy, women only spend around
30-35% more on clothing compa-
red to men. This means that in
Italy the market segment for
menswear is more important than
in the other countries analysed in
this survey. Other sources indicate
a difference of 40% between con-
sumption of mens and womens-
wear, but this would still be less
than in Switzerland or in UK.
93
As table 3-3 indicates, the total
expenditures in the North and in
the South of Italy are different. The
disposable income in the North is
much higher than in the South.
The Italian Statistical Office (ISTAT)
indicates an average household
expenditure of 2 689 for the
North and only 1 915 for the
South of Italy (all figures for year
2004). While incomes in the North
have steadily increased, income in
the South had a temporary drop in
1999. For the whole country, inco-
me per household only rises
slowly. Taking inflation into
account, income growth rates are
even negative.
It is not possible to make a
distinction between clothing and
footwear consumption on the
basis of ISTAT figures. The figures
indicate that the consumption of
clothing/footwear in Italy accounts
for 6.6% of total household con-
sumption (Basis: middle income
household).
Although expenditure in the South
in total is lower - due to less dispo-
sable income - the share of
expenditure for clothing (and foot-
wear), at 7.8% (1998: 8.2%, 1999:
7.8%), is higher than the Italian
average. Generally speaking, the
more attractive areas for clothing
sales are in the North and central
part of Italy, where the import and
distribution structures are much
better developed. Nevertheless,
the South, due to lower income,
has a higher demand for basic
clothing items (e.g. cotton pro-
ducts like cotton casual shirts and
trousers, T-shirts, knitwear).
94
Table 3-3: Comparison of household expenditure and the structure of household
spending by region, 2003 - 2004

Northern Italy Central Italy Southern Italy Italy (total)

2003 2004 2003 2004 2003 2004 2003 2004

Monthly expenditure 2536 2689 2436 2392 1892 1915 2307 2381
per household in

Spending categories Percentage distribution

Clothing/footwear 6.2 6.1 6.5 6.4 7.9 7.8 6.7 6.6

Food and drinks 17.4 16.7 19.0 18.8 24.0 23.8 19.5 19.0

Tobacco 0.8 0.7 0.8 0.8 1.1 1.1 0.8 0.8

Housing 25.8 26.7 27.8 27.6 21.1 21.3 21.9 25.5

Fuel and electric 4.9 4.8 4.6 4.7 4.4 4.5 4.7 4.7
power

Furniture, services 5.9 6.2 6.1 5.6 7.1 7.1 6.3 6.3
house

Sanitary/health 4.2 4.1 3.2 3.3 3.5 3.5 3.8 3.8

Transport 14.5 14.6 13.6 13.8 13.3 13.7 14.0 14.2

Communications 2.0 2.0 2.1 2.3 2.3 2.3 2.1 2.1

Education 1.1 1.2 1.0 1.0 1.4 1.4 1.2 1.2

Entertainment/ 5.1 5.1 4.7 4.9 4.3 4.3 4.8 4.8

Culture

Other 12.3 11.9 10.7 10.6 9.5 9.2 11.2 10.9

Source: ISTAT, 2005

95
As Table 3-4 shows, the share of
expenditure for clothing rises with
an increasing number of house-
hold members: From 5.1% for a
single household rising to 6.9% for
three people living in one house-
hold. In households with 5 or more
people, the share of expenditure
in clothing clearly rises to 8.0% (all
figures 2005).

Table 3-4: Comparison of household expenditure and household spending

on clothing and footwear by household size, 2005

Number of people per household 1 2 3 4 5+

Monthly expenditure per household 1 503 2 254 2 871 3 012 3 071

in

Monthly household spending on clot- 5.1 5.9 6.9 7.6 8.0

hing and footwear in %

Source: ISTAT, 2005

The share of expenditure for clot-
hing as a proportion of total
expenditure sorted by different
family status is illustrated in table
3-5. The highest expenditure with
2 932 and a high share of clot-
hing expenditure with 8.0% is
represented by a family house-
hold with parents and three or
more children. In contrast, house-
holds with single parents have a
lower income and a lower share of
expenditure for clothing (only
6.5%).
Households with the head of hou-
sehold having the professional
status of entrepreneur, freelancer,
manager or employee have a hig-
her share of expenditure on clot-
hing. On the one hand, this can
explained by more expensive for-
mal wear for work. On the other
hand, it can be assumed that the
share of expenditure (for clothing)
is higher with an increasing inco-
me.

96
Table 3-5: Comparison of household expenditure and spending by types of
household and professional status, 2004

Monthly household Monthly expenditure

spending on clothing per household in
in % (average)

Household type

Single person under 35 7.6 1 912

Single person, 35-64 6.2 1 789

Single person 65 and 3.6 1 165

over

Couple without children, 7.9 2 462

under 35

Couple without children, 6.7 2 588

35-64

Couple without children, 4.1 1 903

65 and over

Couple with 1 child 7.3 2 788

Couple with 2 children 7.8 2 928

Couple with 3 or more 8.0 2 932

children

Single parents 6.5 2 255

Professional status

Entrepreneurs and free- 8.6 3624

lancers

Labourers 7.5 2 837

Managing and employees 7.7 2 954

Pensioned 7.1 1 993

Unemployed 4.9 1 688

Source: ISTAT, 2005

97
3.2.6 Price developments of clothing
Figure 3-3 indicates the price infla-
tion of clothing (and footwear)
compared to the general inflation
index in Italy from 1994 to 2004. In
contrast to other European coun-
tries, the Italian clothing sector
from 1994 onward does not show
decreasing clothing prices.
In 1995, when the general inflation
rate was high, clothing prices also
grew more. During the time period
illustrated in Figure 3-3 from 1994
to 2001 the lowest national inflati-
on rate was in 1999 at 1.6% and
clothing prices increased by 2.0%
only. In 2004 one can see that
both indices dropped simultane-
ously to 2.3%.

The development of the clothing

prices and the national inflation
rate showed a similar tendency.
For example, in 2001 the overall
inflation was 2.7% and prices for
clothing increased by 3.0%.
Therefore, the clothing prices
generally follow the price develop-
ment of other consumer goods
and services.

Figure 3-3: Inflation rate of clothing and footwear relative to national

inflation rate, 1994 2004
change in % from previous year

6
5
Clothing and footwear
4
price index
3
Consumer price index
2
1
0
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004

Source: ISTAT, 2004, Italy in Figures

98
3.3 IMPORTS
3.3.1 Total imports
Total Italian imports of outerwear
in 2004 amounted to 6 929 Billion
. This currently high figure is a
result of the strongly increasing
imports in the last five years.
These high growth rates can be
explained to a large extent by the
previously moderate level of
imports compared to other
European countries. Developing
and emerging countries nowa-
days play an important role in the
higher imports of outerwear to
Italy.
In addition, imports of the different
outerwear segments covered by
this study showed a strong ups-
wing from 2002 to 2004. Looking
at the import development of knit-
ted outerwear in Table 3-6, the
increase of outerwear for both
sexes in this period is especially
remarkable. The imports in volu-
me increased by nearly 50%.
At the same time, the imports of
mens and boys outerwear
increased less dramatically. These
figures indicate that the menswe-
ar manufacturers from abroad
wishing to sell (more) in Italy come
up against a very strong national
menswear industry, especially in
the formal wear sector with coats,
raincoats, suits, jackets, trousers
etc.
The deliveries from non-EU coun-
tries play a dominant role in all
sectors of knitted outerwear. For
example, looking at the imports of
woven outerwear in for women
and girls, 81% of the garments ori-
ginate from non-EU countries
(year 2004).
99
Table 3-6: Imports of knitted outerwear by sex and product categories, 2002 - 2004

2002 2003 2004

tons 1 000 tons 1 000 tons 1 000

For men or boys

Coats, raincoats, 671 16 765 928 20 377 1 130 23 071

anoraks etc. (61.01)

Suits, jackets, outfits, 8 457 78 853 9 863 85 653 12 277 125 700
trousers, shorts etc.
(61.03)

Shirts (61.05) 6 583 132 941 6 686 117 653 7 783 141 163

Total 15 711 228 559 17 477 223 683 21 190 289 934

Total extra EU 14 166 164 156 15 738 162 815 19 177 222 965

For women or girls

Coats, raincoats, ano- 769 22 190 914 24 367 1 106 28 286

raks etc. (61.02)

Suits, outfits, jackets, dres- 28 453 153 495 28 309 164 790 21 498 188 606
ses, skirts, trousers (61.04)

Blouses and shirt 2 234 57 498 2 624 67 466 3 547 88 973

blouses (61.06)

Total 31 456 233 183 31 847 256 623 26 151 305 865

Total extra EU 29 923 163 212 29 865 181 368 23 529 210 607

For both sexes

T-shirts,singlets etc.(61.09) 31 648 567 113 38 046 655 068 48 233 850 699

Jerseys, pullovers, 48 275 1 103 357 51 669 1 147 388 60 276 1 212 111
cardigans, waistcoats
etc. (61.10)

Babies garments (61.11) 7 005 129 803 10 042 134 494 13 307 152 734

Impregnated clothing(61.13) 401 8 559 431 8 522 662 8 450

Total 87 365 1 808 832 100 188 1 945 472 122 478 2 223 994

Total extra EU 73 783 1 348 877 84 041 1 472 640 103 953 1 676 849

Active Sportswear

Track suits, ski suits and 10 952 155 632 17 745 162 800 20 694 188 703
swimwear (61.12)

Other sportswear (61.14) 1 266 41 088 2 335 75 394 2 897 110 539

Total 12 218 196 720 20 080 238 194 23 591 299 242

Total extra EU 10 974 136 028 18 461 153 457 20 973 171 053

Source: Eurostat, 2005

100
Table 3-7 shows the import figu-
res of woven outerwear into Italy
from 2002 to 2004. An interesting
fact is that woven menswear in
particular is imported at a higher
level than womenswear. The diffe-
rence compared to the imports of
womenswear is very obvious
when looking at the value terms.
The difference is even higher
when analysing the import volu-
mes in tons: imports of woven
menswear are significantly higher
than those of woven womenswe-
ar imports.
In 2004, imports of woven mens-
wear into Italy amounted to 2
Billion and 114 327 tons. Imports
of woven womenswear in 2004
represent only 1.6 Billion and
88 923 tons. It must be mentio-
ned that the high imports of
woven menswear is no new
development; the same situation
obtained in previous years.
Nearly all outerwear product seg-
ments increased their imports
from 2002 to 2004. Nevertheless,
looking at table 3-7, the specific
woven product categories show-
ed different developments. For
example the imports of woven
coats increased in 2003 but drop-
ped again in 2004 to 444.7 Mil-
lion . In 2003, imports of woven
coats for women increased but
decreased even more in 2004 to
387.9 Million . However, all other
product categories of woven suits
and woven shirts/blouses drop-
ped even more. Blouses in parti-
cular had a remarkable drop in
imports.

Table 3-7: Imports of woven outerwear by sex and product categories,

2002 - 2004

2002 2003 2004

tons 1 000 tons 1 000 tons 1 000

For men or boys

Coats, anoraks, 24 822 436 849 27 365 442 606 27 199 444 685
windcheaters
etc. (62.01)

Suits, jackets, 64 593 1 173 772 62 374 1 100 267 68 515 1 185 594
outfits, trousers,
shorts etc.
(62.03)

Shirts (62.05) 22 585 422 449 24 456 426 635 18 613 369 779

Total 112 000 2 033 115 114 195 1 969 508 114 327 2 000 058

Total extra EU 102 547 1 689 522 106 774 1 661 440 106 976 1 689 549

101
 2002 2003 2004

tons 1 000 tons 1 000 tons 1 000

For women or girls

Coats, capes, 19 302 323 379 34 704 366 973 23 163 387 911
anoraks, wind
jackets etc. (62.02)

Suits, outfits, jackets, 54 282 908 636 68 260 980 199 56 430 1 064 691
dresses, skirts, trou-
sers (62.04)

Blouses and shirt 18 168 197 483 30 984 197 289 9 330 162 400
blouses (62.06)

Total 91 752 1 429 498 133 948 1 544 461 88 923 1 615 002

Total extra EU 86 416 1 118 742 128 661 1 255 229 82 721 1 314 790

For both sexes

Babies garments 5 075 77 111 7 866 81 584 6 220 82 511

(62.09)

Other incl. 7 916 114 811 8 319 120 093 7 901 112 632
Impregnated (62.10)

Total 12 991 191 922 16 185 201 677 14 121 195 143

Total extra EU 10 875 132 964 13 861 133 474 11 669 118 131

Source: Eurostat, 2005

3.3.2 Outward Processing Trade (OPT) clothing manufacturers mainly

According to Table 3-8, the main
two import countries for OPT busi-
ness with Italy are Romania, with
imports of 51.7 Million in 2004,
and Albania, with imports of 32.3
Million . At present, the countries
with the highest growth rates in
the outward processing trade are
Croatia (+388% in 2004), China
(+213%), Bosnia Herzegovina
(+116%) and Egypt (+73%).
For Italy, the proportion of OPT
imports compared to normal
imports of outerwear (f.o.b. busi-
ness) is low. The implication for
based in Eastern European coun-
tries is that there is a great deal of
potential for more OPT business in
the Italian market due to the natio-
nal industrys struggle with increa-
sing costs for labour, energy, raw
materials etc.
The total OPT business into Italy
from non-EU countries has been
shrinking year after year: 5% in
2003 and 1% in 2004. These figu-
res indicate that the lower imports
of OPT stand in strong contrast to
the high increases of normal
imports of outerwear.
102
Table 3-8: Largest supplying countries of OPT outerwear, 2002 - 2004

Po- Country 2002 Change 2003 Change 2004

siton in 1 000 from 2002 in 1 000 from 2003 in 1 000

1 Romania 66.967 -12% 59.165 -13% 51.682

2 Albania 24.172 3% 24.922 29% 32.255

3 Croatia 13.063 -66% 4.505 388% 21.962

4 Tunisia 20.129 4% 20.885 -16% 17.560

5 Moldova 9.416 42% 13.337 21% 16.084

6 Ukraine 14.315 21% 17.269 -25% 12.923

7 Belarus 10.243 14% 11.702 6% 12.386

8 Serbia/ 13.631 -26% 10.154 -36% 6.541

Monten.

9 Hungary 17.654 -13% 15.347 -60% 6.100

10 Bulgaria 7.806 -18% 6.390 -19% 5.173

11 Bosnia-Herz. 195 680% 1.517 116% 3.283

12 Slovakia 2.888 218% 9.177 -65% 3.247

13 China 279 185% 796 213% 2.489

14 Egypt 722 98% 1.432 73% 2.476

15 Morocco 1.659 11% 1.842 28% 2.354

16 Czech Rep. 1.024 32% 1.347 -58% 563

17 Russia 1.979 -68% 624 -55% 281

18 Poland 2.446 -81% 464 -71% 134

19 Macao 540 -81% 100 -80% 20

20 Slovenia 2.879 -84% 454 -96% 18

Extra-EU15 212.357 -5% 201.617 -1% 200.085

Source: Eurostat, 2005

103
3.3.3 Largest suppliers of outerwear
Looking back at the import figures
illustrated in table 3-7 and table 3-
8 (in volume and value) the diffe-
rent shares of imports from non-
EU countries regarding the speci-
fic product category are beco-
ming clearer.
To show the import role of extra
EU countries, this chapter high-
lights the imports of knitted coats,
suits and blouses for women
(taken from Table 3-9). For instan-
ce, there were 26 151 tons of knit-
ted coats, suits and blouses for
women imported to Italy in 2004.
From outside the EU, 23 529 tons
of these product categories were
imported to Italy in the same year.
This is a share of 90% (2001:
95.6%) imports from outside the
EU for this product category.
However, looking at the imports in
the same product category in ,
the share of imports from non-EU
countries is clearly lower: 68.9%
(2001: 71.1%). In 2004, the imports
of knitted coats, suits and blouses
for women from countries outside
the EU were 210 607 , while the
total imports of the aforementio-
ned products were 305 865 .
Firstly, it can be stated that the
share of imports from outside the
EU is quite high - whether calcula-
ted in volume or in price.
Secondly, the difference may be
explained by the higher priced
items from the EU and the chea-
per products imported from outsi-
de the EU.
This example also shows that the
share of imports from outside the
EU have been at a considerably
high level during the last three
years. In 2002, the share of knit-
ted womenswear in value terms
imported from non-EU countries
was 69.9% and in 2004 remained
nearly constant at a level of
68.9%.
Looking at the major clothing sup-
plying countries to Italy, Table 3-9
gives a very good survey on the
top 20 suppliers. Among the
emerging and developing coun-
tries is China, with enormous
growth rates every year and
imports of 1 364 235 Million in
2004. This figure represents 18%
of the total imports of outerwear
into Italy. A similar picture can be
drawn for India (206.4 Million )
and Hong Kong (92.7 Million )
which have considerable growth
rates, too. Although Romania was
the largest supplier in 2001, today
it is has been overtaken by the lar-
gest clothing manufacturing
country worldwide - China, which
was previously in the second posi-
tion.
The three biggest suppliers are
China, Romania and Tunisia.
These three countries account for
42% of the market. This shows
again that import countries are not
scattered, but there is a concen-
tration of a few big players. It can
be assumed that Romania and
Tunisia, as traditional strong OPT
countries, work for large Italian
manufacturers that have outsour-
ced at least parts of their produc-
tion to nearby low cost countries.
104
Other strong non-EU countries Bangladesh (+25%), Turkey
which have reinforced their positi- (+32%), Hungary (+57%), India
on in 2004 in terms of value and (+25%), Morocco (+8%) and
enjoy the favour of the Italian Croatia (+11%).
importers of outerwear are

Table 3-9: Largest supplying countries of outerwear, 2002 - 2004

Po- Country 2002 Change 2003 Change 2004

siton in 1 000 from 2002 in 1 000 from 2003 in 1 000

1 China 953.772 28% 1.216.106 12% 1.364.235

2 Romania 1.283.762 1% 1.293.476 -11% 1.149.930

3 Tunisia 664.166 -2% 651.910 3% 672.044

4 France 393.571 5% 412.127 9% 449.355

5 Turkey 212.822 13% 241.431 32% 319.585

6 Belgium 271.098 -8% 248.770 7% 265.774

7 Hungary 174.642 -10% 158.046 57% 248.067

8 Bangladesh 210.322 -8% 192.446 25% 240.147

9 Germany 195.119 1% 196.583 9% 215.074

10 Croatia 191.403 -1% 188.769 11% 208.959

11 India 142.038 16% 164.589 25% 206.365

12 Bulgaria 166.355 8% 179.127 -4% 172.486

13 Spain 179.443 -16% 150.582 10% 165.147

14 Portugal 128.581 2% 131.521 7% 140.418

15 Utd. 115.271 -15% 98.135 38% 135.481

Kingdom

16 Netherlands 118.244 30% 154.095 -12% 135.408

17 Morocco 92.174 -1% 91.111 8% 98.259

18 Indonesia 91.531 1% 92.096 6% 97.612

19 Hong Kong 62.320 23% 76.633 21% 92.657

20 Slovakia 103.965 0% 104.076 -24% 79.226

Intra-EU15 1.516.198 0% 1.510.608 10% 1.655.937

Extra-EU15 5.212.676 6% 5.525.563 7% 5.906.691

Total 6.728.874 5% 7.036.172 7% 7.562.628

Source: Eurostat, 2005

105
3.4 TRADE STRUCTURE
3.4.1 Developments in the retail trade
The independent retailers, which
are mainly run as family busines-
ses, still have a strong market
position. As stated previously, the
role of the independent shops in
Italy has diminished and many
shops have had to close down
because the owners could not
find a successor for their busi-
ness. Low birth rates cause the
problem, given that there is no
child to take over the business.
Furthermore, a tremendous com-
petition has arisen in the clothing
market from clothing multiples
and supermarkets that have dis-
covered that selling clothing is a
profitable business.
As in other South European coun-
tries, in Italy the domestic produc-
tion and distribution of clothing is
closely linked. Many Italian clot-
hing brands like Benetton,
Marzotto Group etc. have built up
their own retail system, often
based on franchise partnerships
all over the country. In Europe,
however as in Italy itself, Italian
clothing brands and collections
have lost market share. The multi-
ple shops of Italian clothing com-
panies have tried to answer by
going public, joint ventures and
mergers, with partial success.
With the money earned from
giving out stocks, some Italian
multiples have financed their
expansion plans to buy other
companies and brands, enlarge
their production facilities or extend
their distribution network.
As shown in chapter 3.3, imports
grow constantly and low priced
products in particular are impor-
ted and sold in Italian super- and
hypermarkets. In addition, former-
ly middle priced and high priced
items are influenced by increasing
imports.
The Italian clothing association
Sistema Moda Italia states that
the multiples in Italy cope better
with the new challenges of cheap
mass imports than many small
companies. The developments in
clothing retail are very much in
favour of multiples like Sasch,
Benetton, Gas etc. that are able to
optimise stock keeping and act
efficiently in the market. As an
example, in Milan you will find four
Benetton shops in a single shop-
ping street, one of which is a store
with several floors. Such flagship
stores of course also help to build
up the brand names of the clot-
hing companies. The small com-
panies however have less financi-
al possibilities to follow the techni-
cal trends in research and deve-
lopment and to establish their
own distribution system.
106
Since the variety stores also
import and take advantage of
cheaper clothing from outside the
country, this segment could have
profited in terms of gaining market
share. However, the market
importance is not as much as was
forecast years before. Variety
shops have to fight against dis-
counters or super- and hypermar-
kets not to lose their customers
searching for mid-priced and
middle quality items. Unlike pre-
vious years, these super- and
hypermarkets nowadays offer
good quality and very reasonable
prices.
Instead of only selling clothing,
advanced managed Italian retai-
lers (mainly multiples and depart-
ment stores) also often offer cos-
metics, bags, shoes, accessories
and sometimes even stylish hou-
sehold articles. There is a trend
that retailers in Italy put emphasis
on a lifestyle ambience in the
outlets and appropriate surroun-
dings like cafeteria or special pla-
ces for children. The aim is to
keep the customers in the shops
as long as possible to motivate
them to finally buy something.
E-commerce and Internet sales in
Italy have fewer opportunities than
in other European countries. Only
very low growth rates of clothing
sales through this distribution
channel can be predicted, becau-
se the logistically similar structured
mail-order business is very small
as well. The Italian Post is not effi-
cient and too slow and it is a real
burden to run a proper mail-
order or e-commerce business.
Furthermore, Italian consumers
like to touch the fabric and trying
on the clothing. Italian consumers,
having ordered via internet or
mail-order, are generally not pre-
pared to wait for the items bought
for more than one week.
A phenomenon in Italy are the so-
called street markets with a share
of approximately 10%. North-
Africans and increasingly Chinese
dealers offer cheap (branded) and
very fashionable clothing with
minor faults at a reasonable quali-
ty. Obviously, some of the pro-
ducts are just fakes. 8 out of 10
Italian consumers admit to buying
from these mainly illegal market
dealers. Most of the goods come
directly from China, Morocco or
elsewhere.
It can be expected that there are
a lot of changes in the Italian retail
sector still to come. This can be
assumed based on observations
of earlier developments in other
European countries, e.g. the
growth rates in the retail sector in
Italy (around 3.5% annually) are
still higher than in countries like
Germany or France.
Due to strong competition on the
Italian fashion market, large retai-
lers such as H&M, Zara and
French Connection have just
recently entered the market.
107
The UK based Market Research MAX MARA is an Italian fashion
Institute Retail Intelligence belie- giant with a continuously growing
ves that smaller chains like Vgele turnover, about 1.3 Billion , with
(Switzerland), WE International more than 1,200 shops in over 100
(Netherlands), Brantano (Belgium) countries. Max Mara operates 17
or El Corte Ingls (Spain) might companies in the markets and
consider entering the Italian retail owns more than 40 sub-labels.
market. On the other side, Italian The brand produces and distribu-
retailers like Sasch have entered tes womenswear, mainly coats
the markets abroad, as have and suits.
Benetton (worldwide turnover of
1.7 Billion ) and Coin (worldwide STEFANEL has around 120 shops
turnover of 1.07 Billion ), of which in Italy and about 400 shops for
the latter acquired the German womenswear all over the world. In
department store Kaufhalle and the megastores of Stefanel,
changed it into Oviesse. They brands other than Stefanel are
have subsequently pulled out of also offered. The whole company
the German market again, with has a turnover based on retail and
great losses. production activities of 260 Million
a year. Stefanel owns four pro-
3.4.2 Leading Retailers duction sites in Italy and one in
Germany.
The largest clothing retailer is the
well known BENETTON GROUP
which has 5,000 shops in 120
countries all over the world. The
turnover at retail level was 1.7
Billion in 2004. Benetton is both
manufacturer and retailer and car-
ries the brands United Colors of
Benetton, Sisley and many other
brands for sportswear and sports
equipment. The groups strategy
is to increase floor-space and to
transform its shops into megasto-
res. The large shops are managed
directly by Benetton (no franchi-
sing) and are located in historical
town centres and main shopping
centres. The new Benetton
Megastores sell casual wear and
underwear and accessories for
women, men and children.

108
The COIN GROUP is one of the
leading European retailers for clot-
hing, accessories, and household
goods and has a turnover of 1.07
Billion a year. The retail chains
Oviesse and Coin belong to COIN
Holding and are subsidiary com-
panies for different market seg-
ments. For some years Coin
owned the German retailer
Kaufhalle which was a bad strate-
gic step for Coin to enter foreign
markets. They had to close quite a
number of stores and finally left
the German market. Throughout
Italy there are 326 shops. The
Coin clothing range is produced
by Manifatture di Fara SPA and
Sirema Srl. In 1998, it acquired the
non-food sector of Standa, which
is one of Italys largest supermar-
ket chains that also sells clothing,
but to a lesser extent.
LA RINASCENTE is the leading
department store in Italy with a
good reputation offering a wide
product range including a wide
variety in clothing. In 2004, the tur-
nover of La Rinascente was 925
Million , including its subsidiary
company UPIM in 404 outlets. La
Rinascente aims to be the most
elegant department store. Like
other retailers that pursue a quali-
ty strategy, the stores are attracti-
vely decorated for national and
international customers. La
Rinascente department stores
are located in characteristic pla-
ces in the city centres of the major
Italian cities. A 7-year restructuring
programme until 2012 for the
whole Group aims to double the
turnover of La Rinascente to
approximately 605 Million by
increased merchandising, more
service for the customers,
decreasing the share of own
labels from 40% to 10% and an
increase of concessions within
the outlets from zero to 30%. It is
envisaged to increase the number
of shops to 20.
A 5-year investment plan has also
been agreed for the UPIM outlets,
until 2010, with the main aim of
modernising all outlets and increa-
sing turnover from 510 Million to
600 Million . At present, UPIM
has 350 shops, of which 150 are
operated under own manage-
ment.
In the latest press reports dated
from 2005 there are a lot of
rumours going round concerning
a merger between Gruppo Coin
and La Rinascente.
109
3.4.3 Distribution Channels
3.4.3.1 Retailers
Figure 3-4 gives a survey of the
structure of the Italian clothing
retail market. The graph indicates
that independent retailers
account for 49% of clothing retail
and therefore represent nearly
half of the market. As opposed to
other European countries, where
multiples have the largest share, in
Italy only 19% of the clothing is
sold through these clothing
chains. Grocery super- and hyper-
markets represent 12% and
department stores account for
8% of the clothing retail distributi-
on in Italy.

Figure 3-4: Clothing retail channels by market shares, 2004

Street markets and other 10%

Grocery super- and
hypermarkets 10%

Mail-order-
houses 2%
Independent specialised
Sport shops 4% retailers 48%

Department/
variety stores 8%

Clothing multiples
19%

Source: CBI, 2005 and trade estimates

110
3.4.3.1.1 Independent specialised
retailers
The Italian clothing market is
dominated by independent retai-
lers. These are mainly family run
clothing shops, and had a market
share of 59% in 1995. Since then,
the importance of independent
retailers has dropped to a market
share of 49% in 2004. Italian small
retailers offer high-priced items
with an emphasis on quality,
brands, well designed outlets and
service. These boutique like
shops convince with personal
contact and good availability by
a dense allocation of the shops all
over the country.
Market share: 48% in 2004
Trend: Strongly Decreasing
(1995 = 59%)
3.4.3.1.2 Clothing multiples
In contrast to other EU countries,
clothing multiples in Italy mainly
belong to clothing manufacturers.
The most prominent is Benetton.
Other clothing brands with own
shops are Stefanel (womenswear),
Max Mara (womenswear), Prenatal
(childrenswear) or Chicco (chil-
drenswear). Since these clothing
chains aim to sell their own collecti-
ons, importers will have difficulties in
selling to them. This situation is total-
ly different to other countries like UK,
Germany or The Netherlands. The
Italian clothing multiples only buy a
few items to complete their product
range. However, if they import clot-
hing, then they buy directly and con-
centrate on basic items.
Clothing chains other than those
tied to Italian manufacturers have
serious problems in Italy. There is
no Marks & Spencer or C&A in
Italy yet. There are French multi-
ples like Dclathon, Kookai,
Promod or Kiabi in Italy, but they
have limited profitability. These are
companies that do not generally
sell the clothing they produce, but
buy from all over the world.
Newcomers in Italy are the
Swedish H&M and the Spanish
Zara which opened shops in
2005.
Market share: 19% in 2004
Trend: Slightly Increasing
(1995 = 17%)
3.4.3.1.3 Department/variety stores
There are two big department
stores in Italy: La Rinascente and
Gruppo Coin. The department
stores in Italy have an amazingly
large range of products to offer.
For example, Coin offers ladies
clothing from outerwear, under-
wear, night and swimwear to
jeans and sportswear. Beauty, fit-
ness and shoes also have a major
share in the range of products
offered in the Coin stores.
Although most of the quality clot-
hing items are sourced in Italy
(often brands) mens and chil-
drenswear especially is often
imported directly from manufac-
turers abroad.
Market share: 8% in 2004
Trend: Slightly Increasing
(1995 = 7%)
111
3.4.3.1.4 Mail-order houses
Due to unsatisfying postal services
in Italy, the mail-order business is
little developed and has no real
tradition as in other European
countries. The leading mail-order
company is Postalmarket.
Although the German mail-order
company Otto gained market
importance, the mail-order market
share has slightly decreased to 2%
and does not show any significant
signs of change.
Market share: 2% in 2004
Trend: Slightly Decreasing
(1995 = 3%)
3.4.3.1.5 Grocery super- and hyper-
markets
While multiples and department
stores often buy directly from
manufacturers, the super- and
hypermarkets sometimes also
make use of agents and impor-
ters/wholesalers based in Italy.
These super- and hypermarkets
concentrate on cheap products
and are direct buyers/importers of
clothing for which they have instal-
led purchasing departments and
specialised buyers for clothing
who also travel abroad to inspect
the production partner on the
spot.
Super- and hypermarkets in Italy
only offer a limited range of clot-
hing products; often the consu-
mer finds knitwear like T-shirts and
pullovers, casual trousers inclu-
ding jeans, underwear items, ano-
raks and all kinds of shirts. The
major supermarkets, mainly loca-
ted in the North of Italy, are
CoopGS, Ipercoop, Gruppo
Standa, Conad, Euromodis,
Despar Italia and Esselunga. The
share of clothing sold through
super and hypermarkets is conti-
nuous and strongly increasing,
reaching a level of 12% in 2004.
Market share: 12% in 2004
Trend: Strongly increasing
(1995 = 6%)
3.4.3.1.6 Sport shops
Sport shops in Italy only offer a
limited range of clothing products
which all have a sporting attitude
and fit to numerous sporting disci-
plines.
Market share: 4% in 2004
Trend: No previous data
3.4.3.1.7 Others
Open (street) markets and consu-
mer fairs are often supplied by
specialised wholesalers that
import directly from emerging and
developing countries. Markets
and fairs traditionally play an
important role in Italy. However,
the wholesalers involved in this fair
and open market business also
buy good quality fashion products
that are sold at these fairs as well.
Since the traders exhibiting on
those open markets have to react
quickly to market trends, they also
buy selected clothing items from
domestic manufacturers.
Market share: 10% in 2004
Trend: Increasing (1995 = 7%)
112
3.4.3.2 Sales Intermediaries
3.4.3.2.1 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 clot-
hing manufacturers in Italy are e.g.
Benetton, Sixty, Replay, Diesel,
Gas, Stefanel, Max Mara, Prenatal,
Marzotto or Chicco. The small
clothing companies are concen-
trated in so-called conzorzii in
Biella/Pimont region (woollen
products, coats, jackets, suits),
Como-Lecco/Lombardie (silk,
woollen products, coats, jackets,
suits), Emilia Romagna (all kind of
textiles), Tuscany (woollen pro-
ducts, coats, jackets, suits).
3.4.3.2.2 Sales Agents
As the retailers are scattered all
over Italy and difficult to reach
from overseas markets, collabo-
ration with an agent is common in
Italy and generally recommended
for better market penetration.
Most of the agents are concen-
trated in the North of Italy and
operate with sub-agents in central
and southern Italy. The commissi-
on for an agent covering the
whole of Italy is about 8%-15%.
Independent regional sales
agents take between 3% and 7%.
3.4.3.2.3 Importers and wholesalers
Italian importers operate nationwi-
de and mainly ask for the exclusi-
ve distribution rights for the whole
of Italy. Importers/wholesalers in
the classical sense tend to be few
in Italy, because of the high com-
petition within the distribution
system and the strong position of
the clothing brands with their own
efficient outlets. The importers
can often only position themsel-
ves by a low price strategy, e.g.
by sourcing basic fashion items in
emerging and developing coun-
tries. The role of Italian importers is
getting less important, because
dealing in and importing of clot-
hing (being a fashion item with its
up and downs in sales) is increa-
singly seen as a risk. National
manufacturers try to avoid colla-
boration with Italian importers
because they have the image of
being too expensive.
Similar advantages and disadvan-
tages may occur when dealing
with Italian wholesalers. Whole-
salers in Italy normally act only wit-
hin their region to be more flexible
for local markets and fairs. The
Italian wholesalers mainly buy
from local producers. Italian who-
lesalers also tend be very sponta-
neous in their choice with a strong
tendency not to bind themselves
in long-term business partner-
ships.
113
3.5 ITALIAN FASHION TRADE
FAIRS
The Italian market for fashion fairs
is quite clearly structured accor-
ding to their main product seg-
ments. 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 reputati-
on and in fact buyers from all over
the world tend to visit these inter-
national fashion events. For
instance, the January 2006 show
will host 651 exhibitors, of which
261 come from abroad. The orga-
niser expects approximately
28,000 visitors.
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
departments stores, chains and
mail-order companies, but also
wholesalers, importers and tra-
ding companies. The fair also
gives space to manufacturers of
non-exclusive clothing. Only one
out of four sections is reserved for
Italian manufacturers. Moda Prima
seems to be the most suitable clot-
hing fair for manufacturers from
developing and emerging markets
wishing to increase their sales to
Italy.
The most important fashion fair for
womenswear is the Milano Moda
Donna in February and September
each year. The main fashion fair for
menswear is the Pitti Uomo which
is quite small but of absolutely inter-
national importance with many
buyers from overseas. The chil-
drenswear fair Pitti Bimbo is held
twice per year (January and July)
and is the European trendsetter for
childrenswear with an international
concept, both on the buyers as
well as the exhibitors side.
The description of the specialised
clothing fairs below only includes
events with an international
approach.
114
Table 3-10: Italian fashion trade fairs

Trade fair Dates in Product range

2005/2006

Milano Fashion Week 29.9. -2.10.2005 Avantgarde

modaprima / esma 27.29.11.2005 both

EXIT - exportitalia 2.3.12.2005 both

PITTI IMMAGINE UOMO 11.14.1.2006 menswear

SuperSport 11.14.1.2006 sportswear

Milano Moda Uomo 5.20.1.2006 menswear

PITTI IMMAGINE BIMBO 20.22.1.2006 childrens wear

venezie moda & sport fashion Show 29.30.1.2006 both

Jeans & Casual Collection February 2006 both

Milano Moda Donna 18.26.2.2006 womenswear

Ready to Show March 2006 Ready-to-wear

for major retailers

MilanoVendeModa 3.6.3.2006 womenswear

SPORT MODE COLLECTION 6.17.3.2006 sportswear

EXIT - exportitalia 26.27.5.2006 womenswear

modaprima / esma 28.30.5.2006 both

PITTI IMMAGINE UOMO 21.24.6.2006 menswear

Milano Moda Uomo 25.30.6.2006 menswear

PITTI IMMAGINE BIMBO 30.6.2.7.2006 childrens wear

Milano Moda Donna 23.9.1.10.2006 womenswear

Source: m+a Expo Database, 2005/2006

115
3.6 LIST OF MAJOR BUYERS OF LADIES, MENS AND
CHILDRENSWEAR IN ITALY

Clothing Chain Stores

Arimo SpA Product range: underwear,

Via Manzoni 31 swim- and beachwear
I - 20020 Robecchetto con Price segment: mid level
induco (MI) Number of outlets: 126
Tel.: +39 (0) 331 074711
Fax: +39 (0) 331 074778
info@arimo.it
www.arimo.it

ARTENI Confezioni SpA Product range: ladies, mens,

Via Nazionale, 135
I - 33010 Tavagnasco (UD)
Tel.: +39 (0) 432 661288
Fax: +39 (0) 432 660624
www.arteni.it
childrenswear, sportswear
Price segment: mid level
Number of outlets: 14

Bernardi SpA Product range: ladies, menswear

Via dell industria 1 Price segment: lower level
I - 33050 Ronchis (Ud) Number of outlets: 150
Tel.: +39 (0) 431 568111
Fax: +39 (0) 431 567066
info@bernardi.it
www.bernardi.it

Jeune Srl Product range: womenswear, young

123/125, V. del Casale Santarelli fashion
I - 00040 Roma (RM) Price segment: mid to higher level
Tel.: +39 (0) 6 7984 5219 Number of outlets: 9
Fax: +39 (0) 6 7984 5931
jeune@jeune.it
www.jeune.it

La Cicogna srl Product range: childrenswear

Piazzale Biancamano 1 Price segment: mid level
I - 20154 Milano Number of outlets: 10
Tel.: +39 (0) 233 605725
Fax: +39 (0) 233 605725

116
Modifin SpA Product range: Mens and womens-
Via Manzoni, 38 wear
I - 20121 Milano Price segment: high level
Tel.: +39 (0) 2 7609 3558 Number of outlets: 20
Fax: +39 (0) 2 7609 3550 Note: Manufacturer and retailer

MANGO (head office in Spain) Product range: Womenswear

Mercaders 9-11 Price segment: mid level
P.I. Riera de Caldes Number of outlets: 11
Apartado de Correos 280
ES-08184 Palau-solit i Plegamans
(Barcelona) Spain
Tel.: +34 93 860 24 24
Fax: +34 93 860 22 07
www.mango.es

Nico Garda SpA Product range: all kinds of clothing

Via S. Zeno, 67
I - 36022 Cassola (VI)
Tel.: +39 (0) 424 570630
Fax: +39 (0) 424 570703
www.nico.it
www.grupponico.com
Price segment: low
Number of outlets: 11 Italy, 12 EU,
3 US
Note: app. 100 employees

Zara Product range: Ladies, mens,

Galera Passarella n1
I - 20122 Milano
Tel.: +39 (0) 390 276 455 51
Fax: +39 (0) 390 276 455 500
www.zara.com
childrenswear
Price segment: mid level
Number of outlets: 2 (in Italy)

Jeans-, Sportswear and Young Fashion

M.J.F. Mohave Jeans Product range: Denim
Factory Price segment: mid level
Zona ind. Corropoli Number of outlets: 12
I - 64013 Corropoli (TE)
Tel.: +39 (0) 8 6183 90425
Fax: +39 (0) 8 6183 9197
info@mohave.it
www.mohave.it
117
Fornari Spa
Zona Ind.le A
I - 62012 Civitanova Marche (MC)
Tel.: +39 (0) 7 3389 5511
Fax: +39 (0) 7 3389 5518
fornari@fornari.com
www.fornari.com
Product range: young fashion
Price segment: mid level
Number of outlets: 31 own, 39 dep.
stores, 3500 multi-brands
Note: Brand Fornarina

JDS (James Dillon Sport Product range: Sports-, casual-,

Wear) SpA denimwear for ladies and men
20/22, Via Vittine di Bologna Price segment: mid level
I - 10024 Moucalivi (TO) Number of outlets: 8
Tel.: +39 (0) 11 6402115
Fax: +39 (0) 2 892 210214
www.jdsinternational.com

Mazzorato Moda Product range: womenswear

Via della Croce, 18 - Castelnumio Price segment: lower level
I - 31023 Resana Number of outlets: 17
Tel.: +39 (0) 423 484191
Fax: +39 (0) 423 484184
www.mazzorato.com

Sport85 srl Product range: ladies, mens wear

V. Piave, km 68.600
I - 04100 Latina (LT)
Tel.: +39 (0) 773 486456
Fax: +39 (0) 773 660624
www.sport85.it
Product range: jeans and casualwear
Price segment: lower level
Number of outlets: 24

Teddy SpA Product range: womenswear

Via Coriano, 58 Grosrimini BL.97 Price segment: mid to upper level
I - 47900 Rimini (RN) Number of outlets: 370 worldwide
Tel.: +39 (0) 541 301411
Fax: +39 (0) 541 383430
info@teddy.it
www.teddy.it

118
Diesel Italia Product range: jeans and casualwear
Via dell Industria 7 Price segment: mid level
I - 36063 Marostica (Vi) Number of outlets: 26
Tel.: + 39 (0) 424 4855
Fax: + 39 (0) 424 471 131
www.diesel.com

Fashion Box Product range: jeans and casualwear

Industries SpA Price segment: mid level
Via Marcoai, 1 Number of outlets: 26
I - 31010 Asolo (TV)
Tel.: +39 (0) 423 9251
Fax: +39 (0) 423 925299
www.replay.it

Sixty SpA Product range: casualwear for ladies

Via Erasmo Piaggio, 35 Price segment: lower to mid level
I - 66013 Chieti (CH) Number of outlets: 16
Tel.: +39 (0) 871 5891
Fax: +39 (0) 871 562496
misssixty@misssixty.com
www.misssixty.com

COIN Spa Product range: mens, ladies and

Via Terraglio, 17 childrenswear
I - 30174 Venezia (VE) Price segment: mid to upper level
Tel.: +39 (0) 41 2398000 Number of outlets: 359
Fax: +39 (0) 41 982722 Note: largest department store in
www.coin.it Italy
www.gruppocoin.it

Department Stores
l Vecchio Continente Srl Product range: mens, ladies and
Corso Alfieri 293 childrenswear
I - 14100 Asti (AT) Price segment: lower level
Tel.: +39 (0) 141 31336 Number of outlets: 10
Fax: +39 (0) 141 35 889

119
Rinascente UPIM Spa
15, C. Ventidue Marzo
I - 20129 Milano (MI)
Tel.: +39 (0) 2 5990 2457
Fax: +39 (0) 2 5990 23 29
www.upim.it
Mail Order Companies
G.D.A. SpA
Via Lenticchia, 24
I - 22100 Como (CO)
Tel.: +39 (0) 31 5001111
Fax: +39 (0) 31 5001191
shirty@gda.it
www.gda.it
Grocery Super- and Hypermarkets
C.I.S. COOP Italia
Non-Alimentari r.l.
24, p. Mercant
I - 50019 Sesto Fiorentino
Tel.: +39 (0) 55 444840
Fax: +39 (0) 55 4481243
www.e-coop.it
EUROMADIS
Via Christoforo Colombo, 51
I - 20090 Trezzano sul Naviglion
Tel.: +39 (0) 2 48402900
Fax: +39 (0) 2 48402038
Metro SpA
Via XXV Aprile, 23
I - 20097 San Donato Milanese
Tel.: +39 (0) 2 517 11
Fax: +39 (0) 2 517 16262
Product range: mens, ladies and
childrenswear
Price segment: lower to mid level
Number of outlets: 147 stores + 230
franchise partners
Note: belongs to La Rinascente
CONAD Consorzio Nationale
Dettaglianti scarl
Via Michelino, 59
I - 40127 Bologna
Tel.: +39 (0) 51 508111
Fax: +39 (0) 51 508414
www.conad.it
Gruppo DESPAR ITALIA
Via Caldera, 21
I - 20137 Milano
Tel.: +39 (0) 2 409091
Fax: +39 (0) 2 40918177
Lombardini Holding SpA
Via Provinciale, 80
I - 24044 Dalmine BG
Tel.: +39 (0) 35 432 0111
Fax: +39 (0) 35 4320580
120
Manufacturers/Importers and
Wholesalers/Importers

G. Armani Spa Product range: childrens, babies

Via Borgonuovo 11
I - 20121 Milano
Tel.: +39 (0) 2 723181
Fax: +39 (0) 2 8054102
www.giorgioarmani.com

Belvest spa Product: ladies, menswear

V. Corsica, 55 Manufacturer + wholesaler
I - 35016 Piazzola sul Brenta (PD)
Tel.: +39 (0) 49 969 9111
Fax: +39 (0) 49 559 8759
www.belvest.com

Benetton Group SpA Note: 7.000 stores in 120 countries

Villa Minelli 1
I - 31050 Ponzano Veneto
Tel.: +39 (0) 422 519111
Fax: +39 (0) 422 969501
www.benetton.com

Cadena Italia srl Manufacturer + wholesaler

V. Leopardi, 31
I - 22075 Lurate Caccivio (CO)
Tel.: +39 (0) 31 391030
Fax: +39 (0) 31 391040

Casucci spa Product: jeans and sportswear

Vl. Abruzzi
I - 64016 SantEgidio alle Vibrata
Tel.: +39 (0) 8 618 481
Fax: +39 (0) 8 618 41860
www.casucci.it

121
Distribution selling center Product: Ladies and menswear
SAS Manufacturer + wholesaler
Viale Brianza 6
Viale Brianza 6
I - 20127 Milano
Tel.: +39 (0) 2 2893651

Class Fashion Intens Product: Womenswear

Fashion Group srl Manufacturer + wholesaler
V. Tiburtina, 643
I - 00159 Roma (RM)
Tel.: +39 (0) 6 438 5972
Fax: +39 (0) 6 438 6671
www.class-fashion.com

FORALL Confezioni spa Product: menswear

V. F. Filzi, 34 Manufacturer + wholesaler
I - 36050 Quinto Vicentino (VI)
Tel.: +39 (0) 444 356096
Fax: +39 (0) 444 357064
www.sartoriale.it
www.palzileri.it

Immagine Di Quattrocchi Product: childrens, womenswear

SAS Abbigliamente Manufacturer + wholesaler + retailer
V. Umberto I, 209
I - 98051 Barcellona Pozzo di
Gotto (ME)
Tel.: +39 (0) 90 979 5867
Fax: +39 (0) 90 979 5867

KOKO srl Product: womenswear

V. Lombardia, 8 Manufacturer + wholesaler + retail
I - 25025 Manerbio (BS) shops
Tel.: +39 (0) 30 993 8422
Fax: +39 (0) 30 993 8452
www.koko.it

122
Max Mara Products: womenswear upper seg-
Fashion Group Srl ment
Via Fratelli Cervi, 66
I - 42100 Reggio Emilia
Tel.: +39 (0) 522 7991
Fax: +39 (0) 522 382630

Sama Diffusione srl Products: ladies, menswear, casual-

St. Padana Superiore, 18 wear, sportswear
I - 20063 Cernusco Sul Naviglio
(MI)
Tel.: +39 (0) 2 9210 3508
Fax: +39 (0) 2 9210 2559

Miniconf
Via Provinciale 1/a
I - 52010 Ortignano
Tel.: +39 (0) 575 5331
Fax: +39 (0) 575 533300
www.miniconf.it

Marzotto SpA
Largo S.Margherita, 1
36078 Valdagno VI
Tel.: +39 (0) 445 429411
Fax: +39 (0) 445 402000

Pado Tonali SpA

Via Cesare Battisti 3
I - 21045 Gazzada Schianno (VA)
Tel.: +39 (0) 332 464233
Fax: +39 (0) 332 464158
www.paolotonali.it

123
Buying Associations

Cooperativa Legler srl Buying of all kinds of clothing

V. Carducci, 5 Buying centres, supermarkets, retail
I - 24030 Presezzo (BG) shops
Tel.: +39 (0) 35 4158 111
Fax: +39 (0) 35 4158 126

Euroconfezioni Soc.coop.r.l. Buying cooperation, manufacturer,

39, v. Bellini retailer
I - 89055 Reggio Calabria (RC) All kinds of outerwear, sportswear,
Tel.: +39 (0) 965 371878 workwear
Fax: +39 (0) 965 371878
euroconf@libero.it

124
Outerwear

S PA I N
4 SPAIN
4.1 GENERAL ECONOMIC
SITUATION
Spain has a mixed capitalist eco-
nomy with a per capita GDP of
about 80% of the four leading
Western European economies.
The former conservative govern-
ment under Jose Maria Aznar pur-
sued a policy of liberalization, pri-
vatization, and deregulation of the
economy, introducing several tax
reforms to achieve this goal.
Unemployment has been steadily
falling, but still remains high at
10.4%.
Given the background of a falte-
ring European economy, the
countrys growth of 2.5% in 2003
and 2.6% in 2004 was considered
satisfactory. The new socialist pre-
sident, Jos Luis Rodrguez
Zapatero, elected in March 2004,
has initiated economic and social
reforms that are generally popular
among the people except for reli-
gious and other conservative ele-
ments. Spain will have to focus on
adjusting to the monetary and
other economic policies of an
integrated Europe, especially after
the enlargement of the EU in 2004
which will leave Spain with less EU
subsidies. Reducing unemploy-
ment and absorbing widespread
social changes will pose other
challenges to Spain over the next
few years.
In 2004, Spains GDP increased to
795.4 billion, but GDP real
growth rate has fallen to 2.6%.
The inflation rate was 3.2% and
the labour force stands at 19.33
million people. The main industries
in Spain consist of textiles and
apparel (including footwear), food
and beverages, metals and metal
manufactures, chemicals, ship-
building, automobiles, machine
tools and tourism.
Between 2000 and 2004 there
was a shift of the labour force.
68% of the labour force is employ-
ed in the services industry, a rise
of 4%, while only 3% work in agri-
culture. The labour force in indu-
stry remains stable at 28.5%.
The socialist government will face
considerable challenges during
the period under study. Demands
for greater devolution, and possi-
bly secession, by some regions
(especially the Basque and
Catalonia regions; 80% of Spains
textiles are produced in Catalonia)
are causing instability and are like-
ly to undermine the cohesion of
the socialist party. The budget is
expected to be in deficit during
the period. With the Euro area
economy faltering, Spanish eco-
nomic growth is expected to slow
to 2.6% by 2006. The rate of
unemployment will fall, but only
slightly, reaching just under 10% in
2006. The economy will suffer, as
is the case for other countries,
under high oil prices, which alrea-
dy rose considerably in 2004 and
even more so in 2005 during the
Hurricane Season which destroy-
ed US oil platforms along the Gulf
Coast.
125
4.2 THE MARKET FOR
OUTERWEAR
4.2.1 Market size
Unlike in other Western and
Northern European countries,
the textile and clothing industry is
the most important industrial
sector in the Spanish economy.
Spain is a major world producer
of textiles and apparel and the
countrys economy relies heavily
on this sector. The Asian crisis
and the low growth of other
world markets caused a strong
entrance of foreign textile pro-
ducts into European markets
including Spain, creating fierce
competition, especially after the
World Trade Organisations long-
standing system of textile quotas
for China expired at the begin-
ning of 2005.
Table 4-1: Spanish textile
production in comparison to other
EU countries, 2004
Country EU turnover
Italy
France
Germany
Spain
UK
Source: CBI Market Survey, 2005
The EUs approach to resolving
the issue in June was to sign an
agreement with China imposing
new quotas on ten categories of
textile goods, limiting growth in
those categories to between 8%
and 12.5% a year. The agree-
ment, which runs till 2007, is sup-
posed to give domestic manu-
facturers time to adjust to a world
of unfettered competition.
In 2004, Spains economy conti-
nued to grow as did the textile
economy, even if a certain sta-
gnation of industrial production
was visible. Since the introducti-
on of the Euro in 2002, Spaniards
have followed the European
trend of spending less which is
especially the case in Spain as
many citizens keep having trou-
ble converting Euros into pese-
tas (1 = 166 ptas.).
36 %
12 %
11 %
8%
7%
126
Table 4-1 underlines the strong posi-
tion of Spanish clothing production
at EU level: Spain ranks in fourth
place among all EU member coun-
tries after Italy, France and Germany
but has a stronger textile production
base than e.g. UK (which has a
comparatively much stronger eco-
nomy in general). All the other coun-
tries, such as Austria, Ireland,
Portugal and the Scandinavian
countries, each contribute less than
5% to EU textile production.
Switzerland, which has a strong
national textile production base
mainly in the upper market segment
is not considered in this evaluation.
turers from foreign overseas
countries.
4.2.2 Market characteristics
The present situation of the clothing
market in Spain is obviously very
much related to the status of the
Spanish clothing industry. The situa-
tion in the apparel market can be
characterized as follows:
The total Spanish knitwear and
made-up clothing industry is highly
fragmented with 4,525 clothing
manufacturers and 820 knitwear
companies.

Table 4-2: Size of the Spanish textile and clothing market (2002 2004)

2002 2003 2004 +/- from

in million ) in million ) in million ) previous year

Imports 8.620 9.336 9.980 + 6.9%

Local Production 13.912 13.258 12.790 -3.5%

Exports 6.143 6.445 6.610 + 2.5%

Total Market 28.675 29.039 29.380 + 1.02%

Source: Consejo Intertextil Espanol, 2005

The Consejo Intertextil Espanol The production is to a great extent

reports that the total production in
2004 for mens, womens and chil-
drens outerwear amounted to
approx. 12.8 billion . Nevertheless,
it showed a 3.5% decrease to
2003. Compared to Italy, for exam-
ple, Spanish production is fairly low.
At the same time imports have
increased in the last two years
15,8%. It can be expected that this
trend will continue at least for the
next 3 years offering better sales
possibilities for apparel manufac-
outsourced to small and medium-
sized workshops. Many large com-
panies are looking for lower labour
costs in other countries such as
Portugal, Morocco and Tunisia. 2/3
of total Spanish clothing exports go
to other European markets. The
main clothing suppliers are China
and Portugal, and the main custo-
mers are Portugal and France.
127
Innovation, just-in-time supple-
ment, continual renewal of stock
with the most recent fashion
trends and satisfying customer
demands are immediate success
formulas of the largest Spanish
companies.
Clothing sales through Internet
are less successful than in
other European countries like
Switzerland, Germany, Nether-
lands or UK. Only 1% of the
Spanish population uses the
Internet for shopping purposes.
The general aversion to compu-
ters, problems with logistics, lack
of amusement during the purcha-
se are reasons for the low rate of
e-commerce-based clothing pur-
chases.
As in all countries analysed for this
survey, children and teenagers
have a low share in the total popu-
lation. Only approx. 7.8 million
Spanish citizens are younger than
20 years old. The prospects for
the childrenswear sector are not
positive: in the year 2005, only 1.8
million children were between 5
and 9 years old and represented
the smallest age group of all
(except those over 75 years old).
The export manager from abroad
wishing to enter or to sell more in
the Spanish clothing market
should follow and/or anticipate
these developments and be pre-
pared to further develop his col-
lection according to the demands
of the targeted age groups.

4.2.3 Demographic Characteristics

According to Figure 4-1, out of

40.3 million Spaniards, the major
population segment is between
25 and 39 years of age (approx.
10 million male and female). This
age group is followed by those
between the age of 40 and 44
years (approx. 3.1 million people).
Spains major target group is more
than 5 years younger compared
to other Northern European coun-
tries. Therefore, the young fashion
and sportswear segment, being
the preferred dress style by these
age groups, offers good sales
opportunities for clothing manu-
facturers from abroad covering
this segment.

128
Figure 4-1: Age structure of the Spanish population by sex, 2005

Spain: 2005
100+
95-99
90-94
male 85-89
80-84
female
75-79
70-74
65-69
60-64
55-59
50-54
45-49
40-44
35-39
30-34
25-29
20-24
15-19
10-14
5-9
0-4

2,0 1,5 1,0 0,5 0,0 0,0 0,5 1,0 1,5 2,0
Population (in millions)

Source: US Bureau of Census, International Database

4.2.4 Retail sales by product category The womenswear segment holds

The Spanish clothing market can
be divided into four major product
groups: womenswear, menswear,
childrenswear and active sports-
wear. At present, there are no
exact sales figures for the respec-
tive market segments available.
According to industrial sources,
womens and girls wear repre-
sent 2/3 of the total value of the
fashion market in Spain.
the dominant market position, fol-
lowed by menswear, leisurewear
and childrenswear. Menswear has
been the fastest growing market
segment. Also, the leisure clothing
and sportswear segment show a
positive development. The chil-
drenswear segment has lost mar-
ket share, mainly because of low
birth rates in Spain and decreasing
prices, resulting in lower sales
figures.

129
Figure 4-2 indicates the shares of
the respective segments in the
total Spanish outerwear market.
Nevertheless, it can be stated that
menswear has slightly lost market
compared to 2002 (-2%) and
Figure 4-2: Value sales of outerwear by sector in shares, 2004
Childrenswear
15%
Menswear
33%
Source: Spanish National Statistics Office and CBI, 2004
4.2.5 Consumer behaviour
4.2.5.1 Consumer preferences
Women and label-conscious
urban young people tend to be
the major target group in the
Spanish apparel sector.
Consumers in Spain attach a
great deal of importance to
fashion and are beginning to care
more and more about what they
wear, giving special awareness to
brand names. Interviews and
trend research in Spain have pro-
ved that professional women
womenswear has gained massive
shares in 2004 (+14%). Child-
renswear represents only 15% in
the total Spanish clothing market
with an increasing tendency.
Womenswear
52%
have a general preference for
wearing natural materials, dark
colours, comfortable styles and
classic designs. In contrast, in the
North of Spain, light colours are
trendier. Six out of ten Spanish
women regard quality as the main
aspect in their buying decision
while 30% feel that design is the
most important criterion.
Surprisingly, price is the most
important decision factor for only
10% of women, in contrast to atti-
tudes in Northern EU countries
and Switzerland.
130
Table 4-7 indicates the most com-
mon shopping places for Spanish
apparel consumers among all kinds
of distribution channels for clothing.
There are some remarkable diffe-
rences between the Spanish and
the average European consumer.
The No. 1 shop type are indepen-
dent retailers with a preference of
37%, which is also the most prefer-
red retail type all over Europe. They
are followed by clothing multiples
(24%) and department stores
(14%). Purchases through home
shopping channels (1%), factory
outlet channels, large suburban
stores, although growing, are still
relatively rare in Spain.
Spanish clothing consumers
can be briefly characterized
by the following statements:
- The Spanish consumers do
not have a tendency to
prefer the same shop;
instead, they look for diver-
sity in their shopping locati-
ons.
- Although this habit has
decreased, approximately
20% of Spaniards still go
shopping with their families
/relatives (in comparison:
European average is only
9% in this respect).
- Spaniards buy clothing 7-8
times a year (on average),
which is below the European
average of 9-10 times a
year. The exception are
young consumers from 16
to 34; their average is more
than 10 purchases per year.
- Spaniards pay increasing
attention to brand names
especially young consumers
and service quality.
- The country of origin of the
product purchased is for
Spanish consumers mostly
irrelevant.
- Spanish consumers are
less ecologically conscious
e.g. compared to the
Swiss, Germans or the
Scandinavians, and requests
for ecological standards in
terms of clothing presently
can only be observed in
large cities like Madrid and
Barcelona.
The differences in consumer pre-
ferences compared to Western
European countries like
Switzerland and Germany is the
cut of ladies outerwear. Due to the
average smaller size of Spanish
ladies, the pattern is slimmer in
Spain (e.g. a Swiss/German size
38 is size 40 to 42 in Spain). Also
trousers with extra length (like 36
and 38 are rarely in demand).
131
4.2.5.2 Consumer expenditure
Consumer spending on clothing in
Spain is below average levels in
other European countries.
Average spending on clothing in
2004 amounts to 527 per
capita, which is clearly below
Italys rate of 749 or 880 in the
UK in the same year. It also
decreased in comparison to
Spanish total consumption.
According to the results of a mar-
ket survey carried out by the
Spanish designer firm Miguel Gil,
based on a poll among 1000
women living in Spains major
cities, women are mostly respon-
sible for the steady increase in
family clothing expenditure. Most
women are indifferent to clothing
origin. However, if they have the
chance to choose the origin of the
clothing item, more than a third of
women prefer Spanish brands
and fashion.
It is obvious that expenditure on
clothing depends to some extent
on the geographical zones (where
the consumers live). Firstly, the
reason for these differences is the
social life, the income and the pre-
stige, which play an important role
in the North of the country.
Secondly, the climate influences
expenditure on clothing, e.g. in
the colder North, the relatively
more expensive outerwear items
like coats, jackets etc. increase
the per capita consumption in
value terms. The economic cen-
tres are the regions with the hig-
hest readiness to spend money
for clothing like Cantabria,
Navarra, Rioja and Ceuta/Melilla.
Statistics regarding general inco-
me show that the average expen-
diture by household in Spain was
22688 in 2004 (=100%). Out of
this amount the average expendi-
ture for clothing and footwear was
1451, which represents a share
of 6.4%.
According to industry sources,
womens and girls wear amount
to approximately two thirds of
Spanish consumer expenditure
on outerwear. More details about
the structure of Spanish outerwe-
ar consumption can be taken
from Figure 4-3.
132
Figure 4-3: Consumer expenditure on outerwear in Spain, 2002 2004
(consumer prices)
20.000,0
18.000,0
16.000,0
14.000,0
6.558,0
12.000,0
10.000,0
8.000,0
6.000,0
10.084,0
4.000,0
2.000,0
0,0
2002
Women's and girl's wear
Source: CMT Espana and Euromonitor, 2004
4.2.6 Price development of clothing
As the Spanish clothing market is
still dominated by the strong
national clothing production, price
developments also depend on
the national industry to a large
extent. Due to the weakness of
the until the beginning of 2000,
and the increased costs for ener-
gy and raw materials in the same
period, most of the Spanish
manufacturers and consequently
the retailers have been forced to
increase their prices for outerwear
products.
However, the national consumer
price index compared to the clot-
hing price index (1.8%), was signi-
ficantly high at 3.2% in 2004.
General inflation rates in Spain of
over 3% (EU average 2.5%) have
also been stated for 2005.
6.812,0 6.503,0
10.616,0 10.919,0
2003 2004
Men's and boy's wear
The strong increase of clothing
imports, mainly from developing
countries into Spain has led to
more competition and has limited
the inflation for clothing items. As
the production costs for clothing
in Spain have been lower (e.g. for
labour, logistics, marketing) com-
pared to Western European
countries, the price level for appa-
rel has been approximately 10%
lower. With the introduction of the
, the prices have adapted more
to the Western European level.
According to the Textile and
Outerwear Information Centre
(CITYC) in Barcelona, the mark-up
for a Spanish retailer theoretically
is at 100%; in practical terms, due
to sales and reductions, figures
run at only 70%. This tendency to
stronger price reductions, lower
margins and a European wide
price adaptation can be stated for
all countries of the euro zone
covered by this market survey.
133
4.3 IMPORTS 4.3.1 Total imports

The imports of clothing to Spain

increased by 8% in 2004. Knitwear
and woven clothing were the lead-
ing product groups among the
Figure 4-4: Clothing imported apparel. Imports of fabrics
and textiles imports, 2000 - 2004 have increased too.

11

10
10
9
9,3
in billion

8 8,4 8,6

7 7,5

2000 2001 2002 2003 2004

Source: German Chamber of Commerce in Spain

Figure 4-4 shows the general very

strong increase of textile and clot-
hing imports into Spain, especially
from 2002 to 2004, with increa-
ses of over 8% annually. These
Figure 4-5: figures show the tremendous
Shares of clothing imports by pressure on the Spanish clothing
product categories, 2004 markets (and manufacturers).

100%

90%
33,2
80%

70%

60% Women's wear

27,5
50% Men's wear

40% Both sexes

sportswear
30%
34,6
20%

10%
4,7
0%

Source: German Chamber of Commerce in Spain, 2005

134
Figure 4-5 gives a first general
survey on the structure of the
imported clothing in value terms
covering the five major product
groups womens, mens, chil-
drens and sportswear as well as
other clothing. Clothes for both
sexes are dominant with 34.6%
but followed immediately by
womenswear with a 33.2% import
share and menswear with a
27.5% import share. The 4.7%
import share of sportswear only
represents the imports of knitted
outerwear. Data for woven outer-
wear was not available.
Table 4-3 and Table 4-4 give a
more detailed survey on the
imports from 2002 to 2004 divi-
ded into imports of knitted outer-
wear and imports of woven outer-
wear covering those outerwear
items analyzed for this marketing
handbook.
Knitted outerwear for women or
girls has the highest growth rates
with +47.7% from 2002 to 2004
(value) followed by active sports-
wear for both sexes with an
increase of +37.8% in the same
period. It is obvious that these
product segments with the hig-
hest import growth rates offer the
best sales opportunities for manu-
facturers from abroad. The total
import of knitted products into
Spain increased in terms of value
from 2002 to 2004 by 76.4%,
which is extremely high compared
to other European countries ana-
lysed for this survey.

Looking at the 2004 total figures

in Table 4-3, the import share of
mens clothing at 9.1% (= 217 milli-
on ) of total imports is slightly
lower than that for women (12.5%
= 299 Million ). The largest share
by far in total imports of outerwe-
ar to Spain is represented by
outerwear products for both
sexes (T-shirts, cardigans, pull-
overs etc.) with 1 631 million
(68.2%). Knitted sportswear items
add up to 244 million , a 10.2%
market share.

135
Table 4-3: Imports of knitted outerwear by sex and product categories (2002 2004)

2002 2003 2004

tons 1 000 tons 1 000 tons 1 000

For men or boys

Coats, raincoats, anoraks * 9 788 667 18 128 1116 25 835

etc. (61.01)

Suits, jackets, outfits, trou- * 57 827 6 641 68 705 11 984 77 047

sers, shorts etc. (61.03)

Shirts (61.05) * 90 316 3 701 97 009 4 568 114 284

Total * 157 931 11 009 183 843 17 668 217 167

Total extra EU * 70 617 10 094 86 552 17 581 107 547

For women or girls

Coats, raincoats, * 17 476 1 164 36 671 1 051 29 483

anoraks etc. (61.02)

Suits, outfits, jackets, * 125 878 11 029 154 763 27 678 176 808
dresses, skirts, trousers
(61.04)

Blouses and shirt * 59 306 1 728 64 120 2 239 93 050

blouses (61.06)

Total * 202 660 13 921 255 554 30 968 299 341

Total extra EU * 76 439 13 772 108 429 30 716 139 545

For both sexes

T-shirts, singlets etc. (61.09) * 543 588 24 542 630 853 31 506 762 961

Jerseys, pullovers, cardi- * 637 540 24 853 674 704 31 334 736 983
gans, waistcoats etc. (61.10)

Babies garments (61.11) 4 450 101 215 6 245 113 740 8 849 124 526

Impregnated clothing (61.13) 315 6 609 355 6 154 304 6 624

Total 4 765 1 288 953 55 955 1 425 450 71 633 1 631 093

Total extra EU 2 982 586 746 53 366 671 578 66 431 821 376

Active Sportswear *

Track suits, ski suits and 30 101 903 5 510 110 720 11 612 142 406
swimwear (61.12)

Other sportswear (61.14) 2 246 74 974 4 024 94 436 4 538 101 364

Total 2 275 176 877 9 534 205 157 16 150 243 770

Total extra EU 1 196 86 255 7 612 99 187 14 460 120 514

Source: Eurostat, 2005 * no data available

136
Table 4-4 shows the imports of
woven outerwear into Spain.
Generally speaking, imports to
Spain in almost all product cate-
gories have increased year by
year since 2002. Looking at the
total imports of woven outerwear
for women or girls, imports from
2002 to 2004 in value terms
increased more strongly than for
men. The imports of woven mens
or boys outerwear increased by
14.5% from 1032.2 million in
2002 to 1182.4 million in 2004,
whereas the womenswear
imports for the same product
groups increased by 38.5% from
1005.4 million in 2002 to 1392.6
million in 2004.
The woven womens and girls
outerwear imports increased con-
tinuously from 2002 to 2004 and
amounted to 1182.4.3 million in
2004. This segment shows the
highest import increase of all seg-
ments analysed with 38.5% in the
three years since 2002.
Thus, best prospects for imported
apparel include business wear
(basic colours, good quality, medi-
um-high price) for women as well
as high quality sportswear with a
casual style and excellent quality
materials (mainly natural fibres)
with sophisticated styles and pat-
terns. Casual wear, mainly denim,
cotton-made products and knit-
ted apparel, have also been in
strong demand and sales pro-
spects for these items have been
rated as positive. Spanish youth is
strongly influenced by fashion
trends from casual wear in gene-
ral (GAP style) and it can be
stated that imports in general
have very good prospects in this
sector.

Table 4-4 Imports of woven outerwear by sex and product categories,

2002 2004

2002 2003 2004

tons 1 000 tons 1 000 tons 1 000

For men or boys

Coats, anoraks, wind- 10 629 189 623 11 581 201 443 15 254 197 659
cheaters etc. (62.01)

Suits, jackets, outfits, 28 155 594 985 31 472 645 564 40 054 709 662
trousers, shorts etc.
(62.03)

Shirts (62.05) 10 959 247 638 12 366 270 916 13 142 275 071

Total 49 743 1032246 55 418 1 117 294 68 451 1 182 392

Total extra EU 33 027 530 366 38 441 580 628 49 176 647 353

137
 2002 2003 2004

tons 1 000 tons 1 000 tons 1 000

For women or girls

Coats, capes, anoraks, wind- 8 166 171 356 10 446 209 263 13 983 233 417
jackets etc. (62.02)

Suits, outfits, jackets, dres- 25 322 636 408 33 759 802 096 47 805 980 156
ses, skirts,
trousers (62.04)

Blouses and shirt 6 295 197 588 6 565 202 055 7 226 179 007
blouses (62.06)

Total 39 793 1 005 351 50 770 1 213 415 69 014 1 392 581

Total extra EU 28 747 555 095 37 277 696 703 50 968 827 324

For both sexes

Babies garments (62.09) 3 109 53 050 3 163 61 880 3 155 61 932

Other incl.Impregnated(62.10) 9 123 62 625 5 076 77 620 3 572 70 145

Total 12 232 115 676 8 240 139 500 6 727 132 077

Total extra EU 3 094 45 121 3 873 55 128 3 902 48 065

Source: Eurostat, 2005

4.3.2 Outward Processing Trade (OPT) second largest textile company

The textile and clothing industry in
Spain is a labour intensive industry
with relatively high labour costs.
Outsourcing is a common practi-
ce among Spanish clothing firms,
however mainly within Spain. INDI-
TEX (Brand ZARA), for example,
designs, produces (50% is out-
sourced to subcontractors) and
distributes its own brands (vertical
concept). The company policy of
satisfying customer demand
almost immediately requires that
INDITEX production is almost enti-
rely located in Europe, primarily in
Spain to provide the flexibility to
respond quickly and effectively to
market trends. MANGO, Spains
after INDITEX, designs strictly
womenswear for young urban
women. However, Mango manu-
factures only to 25% of its produc-
tion in Spain. The remainder of
Mango clothing is produced in
China (approximately 50%) and
Morocco (approximately 25%)
but almost 100% on finished pro-
duct basis. According to EURO-
STAT, the OPT import figures are
really incomplete and have not
been recorded in the relevant
time period.

138
4.3.2.1 Largest supplying countries of
OPT outerwear, 2002 - 2004
The actual Outward Processing
Trade (OPT) business - usually
operated by apparel manufactu-
rers - in Spain plays only a negligi-
ble role and represents only 1.3%
of total imports from extra EU
countries.
From the statistical point of view,
only incomplete figures are availa-
ble (probably a problem of decla-
ration of imported goods). The
No. 1 OPT supplier is Morocco
with 2 115 000 imports in 2004
(in 2003 only 9 000 !) followed
by China, Bulgaria and Hong
Kong. Basically, there are two rea-
sons for the extremely small OPT
business: a. the strong clothing
production base in Spain with rat-
her competitive prices and b. no
tradition in OPT business.
4.3.3 Largest suppliers of outerwear
The ten major supplying countries
of clothing from non-European
countries are according to their
importance China, Morocco,
Bangladesh, Turkey, India,
Indonesia, Pakistan, Vietnam,
Thailand and Hong Kong. The two
main extra-EU suppliers of fashion
clothing, China and Morocco,
represent 56.9% of the entire
extra-EU import volume, which
constitutes an increase of 11%
compared to 2001, whereas the
two main EU suppliers Portugal
and Germany represent only
28.3% of the whole EU import
volume. In general, approximately
37.5% of the import volume is
supplied by EU member states
and the rest comes from devel-
oping countries.
The main winners among the
supplying countries in terms of
import increase from 2002 to
2004 are Myanmar (+63.1%),
Indonesia (+61.6%), Bulgaria
(+60.4%), Turkey (+56.4%),
Pakistan (+47.7%), Vietnam
(+45.0%) and United Arab
Emirates (+39.5%).
Clothing suppliers from Hong
Kong (35.7%), Netherlands
(24.6%), South-Korea (10.9%) and
Thailand (10.1%) are the losers
among the top 20 (twenty) coun-
tries exporting into Spain in 2004
compared to 2003 (value terms).
More details can be taken from
Table 4-5.
139
Table 4-5: Largest supplying countries of outerwear, 2002 2004

Po- Country 2002 Change 2003 Change 2004

siton in 1000 from 2002 in 1000 from 2003 in 1000

1 China 548.036 16,5% 638.494 20,1% 766.786

2 Morocco 424.426 27,5% 541.056 1,4% 548.558

3 Bangladesh 136.148 40,3% 191.035 37,9% 263.469

4 Turkey 132.844 57,8% 209.666 56,4% 327.857

5 Portugal 487.148 18,2% 575.570 -5,1% 546.318

6 India 116.964 13,3% 132.534 5,3% 139.572

7 Germany 204.484 15,9% 236.907 24,4% 294.606

8 France 390.217 6,7% 416.373 16,9% 486.588

9 Italy 543.371 6,2% 577.058 15,6% 666.934

10 Bulgaria 30.651 35,5% 41.546 60,4% 66.643

11 Indonesia 46.878 -3,4% 45.283 61,6% 73.175

12 Pakistan 21.782 28,6% 28.005 47,7% 41.354

13 Belgium 232.829 8,3% 252.077 -6,5% 235.738

14 Vietnam 66.868 -36,3% 42.581 45,0% 61.756

15 Thailand 60.626 -6,2% 56.876 -10,1% 51.111

16 Hong Kong 110.855 -13,6% 95.834 -35,7% 61.658

17 Netherlands 124.943 13,3% 141.517 -24,6% 106.721

18 South Korea 34.632 36,3% 47.209 -10,9% 42.043

19 Myanmar 21.627 -0,1% 21.608 63,1% 35.246

20 U.A.Emirates 21.975 -19,3% 17.741 39,5% 24.753

Intra-EU15 2.287.276 5,7% 2.416.603 6,3% 2.569.823

Extra-EU15 2.098.801 17,4% 2.464.984 17,9% 2.906.860

Total 4.386.077 11,3% 4.881.587 12,2% 5.476.683

Source: Eurostat, 2005

140
4.4 TRADE STRUCTURE
4.4.1 Developments in the retail trade
The fierce competition on the
Spanish market, partly due to
more imports from abroad, has
led to structural reforms at the
retail level. The expansion of
department stores resulted in a
decrease in the number of inde-
pendent specialized shops. Other
distribution channels, such as
mail-order houses and clothing
markets, suffered and lost market
share. In 2004, retail trade show-
ed rising turnover, although with
falling sales volume. Apparently,
many retail shop owners and mul-
tiples have changed their marke-
ting concept towards high-quality
units. Each year, small indepen-
dent multi-brand stores are stea-
dily losing market shares to other
more dynamic retail channels; this
trend has even accelerated in the
last few years.
In Spain there are five large
groups that control one third of
the total retail market for mens,
womens and childrenswear: El
Corte Ingls, Inditex, Carrefour,
Cortefiel and Mango control 35%
of the total sector turnover. The
ten largest companies account for
42% of all retail sales. In 1992
there were 55 190 clothing retai-
lers in Spain. Over the past deca-
de this number has grown by
nearly 30% to 70 612 outlets. Less
than half are independent multi-
brand shops.
Specialized franchise chains have
nearly doubled their market share
in the past decade at the expense
of independent retailers. These
often single brand oriented retail
channels, along with hypermar-
kets, gained the greatest market
share at the expense of the multi-
brand independent shops that are
unable to respond as quickly to
changing market trends. As
stated above, close collaborations
are often used in view of Spains
existing industrial and trading
infrastructure along with franchi-
sing, considered an excellent
means for penetrating the
Spanish market.
Today, hypermarkets account for
nearly 13% of total clothing retail
sales by value, a dramatic change
from 15 years ago when most
such outlets sold only socks and
underwear. All the large hyper-
market chains, Carrefour and
Alcampo in particular, carry a wide
range of clothing, especially chil-
drenswear.
The further strategy of the clot-
hing industry, partially running their
own retail outlets, includes the
increase of productivity in order to
lower labour costs, and a higher
dislocation of the production to
countries with low production
costs. These cost-saving strate-
gies have been completed by a
very sophisticated supply-chain
management to provide the fran-
chise shops with new fashion
items on a weekly or monthly
basis.
141
The Inditex Group has achieved a
worldwide leading standard with
almost perfect logistics and very
short lead-times for new
ranges/designs of less than 6
weeks. It can be expected that
the Spanish clothing retailers will
offer greater segmentation in the
product lines offered and speciali-
ze more in market niches, mainly
within the low and upper price
ranges.
4.4.2 Leading retailers
As mentioned before, the Spanish
clothing retail structure can be
characterized by a strong con-
centration on only a few compa-
nies. Further, a significant part of
the turnover is made by distributi-
on chains such as C&A, or inter-
national franchise companies like
Benetton, Pimkie or Promod.
Department store sales (in Spain
El Corte Ingls) represent approxi-
mately 14% of the total clothing
market in value. The El Corte
Ingls group includes the fran-
chise chains Sintesis, Cedosce,
Tintoretto and Amiti.
The most successful Spanish clot-
hing retailer, INDITEX in La Coruna
(see Figure 4-6), became one of
the worlds most important and
successful clothing retailers with a
total turn-over of 4.65 billion
(2005) representing an increase
of 20%. The speed of expansion is
extremely fast, 323 new shops
have been opened in the first
three quarters of 2005 alone. Its
owners had opened the first Zara
store with the idea of producing
fashion clothing at an affordable
price. Over the past five years,
Zara has increased the number of
stores from 180 (mainly in Spain)
to 816 in 46 different countries.
INDITEX in total runs 2 567 shops
in 59 countries. Revenues have
grown by an average of 27% a
year since 1998. As can be seen
from Figure 4-6, the Inditex group
today consists of eight major
chains: Zara (mens, womens and
childrenswear), Zara Home (home
textiles), Pull & Bear (menswear),
Massimo Dutti (mens and
womenswear), Kiddy's Class
(childrenswear), Bershka, Oysho
and Stradivarius (both womens
and girls wear).
INDITEX provides the flexibility and
quick response to market trends,
while other Spanish clothing firms
are based on designer or seaso-
nal collections. Designers are in
constant touch with store mana-
gers to find out which items are
most in demand. The plant, in
turn, ships the goods to the stores
twice a week, thus eliminating the
need for warehouses and kee-
ping inventories low.
142
Figure 4-6: INDITEX Principal clothing chains by market share, 2004
% of total sales
1% 1%
4% 2%
9%
8%
7%
Source: Inditex Annual Report, 2004
European firms such as Gucci are
successful in the womenswear
market. Dutch/German C&A tar-
gets a bigger share in the market.
Other successful European chains
in Spain are the Italian Benetton,
Max Mara chains and the French
Pimkie. The Swedish Hennes &
Mauritz chain has operated in the
Spanish market since 2000 and
plans an aggressive expansion,
opening numerous outlets in major
Spanish cities. The American GAP
competes successfully with Zara
and Mango, offering young
fashion at low prices.
The Barcelona-based Armand
BASI, originally a knitwear compa-
ny, is also an important supplier of
mens and womenswear, as well
as the Galician-based CARAMELO
chain. As regards jeans and casu-
alwear, the Valencia-based SAEZ
MERINO, with its Spanish bull
trademark Lois brand, competes
Zara
68 % Bershka
Oysho
Pull & Bear
Stradivarius
Zara Home
Massimo Dutti
Kiddy's Class
with Levi Strauss Espaa in mens
and womens leisure clothing. Two
leading Spanish specialists in
womens jeans and trousers are
ANINOTO and JOCAVI, which are
popular among women of all ages.
Table 4-6 gives a survey on the
major clothing companies, most of
them having an own production as
well as own retail outlets among
which MANGO, ZARA and COR-
TEFIEL have the most advanced
marketing concept and are suc-
cessfully operating all over Europe
and partially worldwide. In the table
below it becomes obvious to what
extent Inditex dominates the
Spanish clothing market as it
penetrates the market with a high
share of shopping outlet stores.
Another big player is the El Grupo
CORTEFIL SA in Madrid with 1 170
shops which plans to extend the
number of shops to 2 000 by 2010
in Spain as well as abroad.
143
Table 4-6: Major specialised clothing chains in Spain, 2004/2005

Retailer Parent Company Sector No. of

outlets

Zara *** Inditex General Clothing 241

C&A C&A General Clothing 35

H&M Hennes&Mauritz General Clothing 44

Pull & Bear*** Inditex Men's and 257

women's wear

Massimo Dutti*** Inditex Men's and 202

women's wear

Adolfo Dominguez*** Adolfo Dominguez Men's and 302

women's wear

Bershka*** Inditex Women's wear 194

Stradivarius*** Inditex Women's wear 188

Mango *** Mango Holding Women's wear 226

Cortefiel *** Cortefiel Women's wear 118

Promod Promod Women's wear 51

Amiti*** Induyco Women's wear 84

Sintesis*** Induyco Women's wear 85

Tintoretto*** Induyco Women's wear 51

Pimkie Mulliez Group Women's wear 53

Springfield*** Cortefiel Men's wear 249

Kiddy's Class*** Inditex Children's wear 114

Prenatal Prenatal Baby/maternity 102

wear

Intersport Intersport Sportswear 321

Sport 2000 Sport 2000 Sportswear 200

Decathlon Auchan Sportswear 44

Source: various industrial soucessources, companies' websites

*** Companies with own production in Spain or close collaboration
with production partners

144
The distribution of outerwear in
the Spanish clothing market is
based on extensive franchising
systems that are highly developed
compared to other European
markets. Most of the franchise
chains in Spain sell womens and
childrens clothing. Some of the
most important franchises are
ADOLFO DOMINGUEZ (mens
designer clothing - 302 outlets
worldwide), DON ALGODON (high
segment ladies wear 98 outlets
- franchisee Cortefiel), MASSIMO
DUTTI (ladies and mens outer-
wear 202 outlets - franchisee
Inditex Group) or TINTORETTO
(high segment ladies outerwear
51 outlets franchisee Induyco
Group).
The El Corte Ingls franchise
chains Amiti, Cedosce, Sintesis
and Tintoretto represent also a
high number of outlets. Specialist
chains, such as Escorpin
(womens knitwear), Pronovias
(bridalwear) and the Italian
Prnatal (childrens and maternity
wear) also prove to be among the
better-known franchise chains in
Spains large cities.
4.4.3 Distribution channels
4.4.3.1 Retailers
The last survey on the structure of
the Spanish clothing distribution
channels dated from 2005 indica-
tes that 178 000 persons were
employed in 70 948 shops. The
size of the shops in Spain is com-
paratively small with 2.5 employe-
es per unit (source: Distribucin
Actualidad based on data from
DBK).

Table 4-7: Clothing retail channels by market share (data research of 2005)

in % of total value 2000 2002 2004

Specialists 61 61 61

Independent retailers 41 39 37

Clothing multiples 20 22 24

Non-specialists 39 39 39

Department/variety stores 14 14 14

Hyper- and supermarkets 12 12 13

Sports shops 5 5 5

Home shopping companies 1 1 1

Street markets and other 7 7 6

Total 100 100 100

Source: Retail Monitor and Acotex, 2004

145
Figure 4-7: Clothing retail channels by market shares, 2004

Home shopping Street markets and

companies, 1%
other, 6%

Sports shops, 5%
Hyper- and Independent
Supermarkets, retailers, 37%
13%

Department/variety-
stores, 14%

Clothing multiples,
24%

Source: Retail Monitor and ACOTEX

Table 4-7, based on an analysis of

the Retail Monitor and Acotex,
indicates the share of the clothing
distribution channels in 2004. The
market is still dominated by the
independent specialized retailers
(37%) but the share of clothing
multiples (24%) and department
stores (14%) has grown in recent
years and can be rated, together
with the hyper- and supermarkets
(13%), as the greatest potential
target customer group for manu-
facturers from developing coun-
tries.

146
4.4.3.1.1 Independent specialized
retailers
Key characteristics: These spe-
cialized clothing shops are still the
main retail outlets for garments in
Spain (Jeans-shops, Boutiques,
sportswear-shops), although the
market share of these shops has
been slightly decreasing. They still
play an important role mostly in
the North of Spain, although even
here the importance for this distri-
bution channel is shrinking. Each
year small independent multi-
brand stores steadily lose market
share to other more dynamic retail
channels (like large department
store El Corte Ingles, C&A and
other better organised forms of
retail). This trend has accelerated
in the past few years, mainly
because of their limited capabili-
ties to respond quickly enough to
changing market trends and the
limited choice of products in the
shops.
Market-share: 37% in 2004
Trend: Slightly decreasing
(2002 = 41%)
4.4.3.1.2 Clothing multiples
Key characteristics: Clothing mul-
tiples mainly or exclusively have
only one brand label in their
assortment for fashionable pro-
ducts with short rotation times
(like Mango). As a result of
aggressive expansion plans,
these specialist chains account
for a fairly percentage of total retail
clothing sales in Spain. Many of
these chains operate on either a
franchise basis or a mix of both
company-run stores and fran-
chises. These often single brand
retail channels, along with hyper-
markets, have gained the
greatest market share at the
expense of the multi-brand inde-
pendent shops. Like France and
the UK, Spain possesses favoura-
ble regulations for franchise com-
panies.
Market share: 24% in 2004
Trend: slightly increasing
(2002 = 20%)
4.4.3.1.3 Department / variety stores
Key characteristics: Department
stores combine a wide range of
branded goods and private labels.
The prevalent Spanish depart-
ment store is El Corte Ingls, the
store presents more than 30
brands of mens, womens and
childrenswear. Many of these
brands originate from the Induyco
Group (which is the owner of El
Corte Ingls). However, a large
portion of the assortment are
well-known Spanish or foreign
brands. According to our market
observations, entry to the Spanish
market through El Corte Ingls for
companies with substantial sales
volume has been indispensable
up to now. Despite strict terms of
admission (restrictive terms of
payment, certain levels of turno-
ver etc.) set up by the leading
department store, many brand
manufacturers try to sell their gar-
ments to El Corte Ingls.
147
Due to strict brand orientation, the
department store offers easier
access for well known brands and
companies with a good image.
Companies from developing
countries have the best access
chances to El Corte Ingls by offe-
ring their assortment to the priva-
te label buying managers who
source their products mainly from
overseas suppliers.
Market share: 14% in 2004
Trend: Constant (2002 = 14%)
4.4.3.1.4 Mail-order houses
There is very little information avai-
lable about mail-order houses in
Spain. The major unit is VENTA
CATALOGO in Barcelona which
has reasonable sales all over
Spain. Similar to other southern
European countries like Italy,
home shopping is not very popu-
lar, due to the partially unsatisfac-
tory service by the national postal
service. Some smaller catalogue
houses, mainly operating in niche
markets, are of minor importance
and are restricted, making them
an unsuitable target group for
clothing manufacturers from
abroad. As a general rule, the
Spanish consumers receive a new
catalogue 1-2 times per year -
often additional seasonal fashion
catalogues are send out. This dis-
tribution channel is losing market
share.
Market share: 1% in 2004
Trend: Constant (2002 = 1%)
4.4.3.1.5 Textile discounters
The distribution of clothing in
the lower price segment in Spain
is mainly handled by the grocery
super- and hypermarkets. Spe-
cific textile discounters operate
more on a regional level and are
very difficult to identify at all. The
textile discounters mainly buy
from wholesalers and importers
based in Spain. Therefore clothing
manufacturers from abroad
should contact these importers to
also penetrate the clothing dis-
count business. Against this
backdrop, it is obvious that speci-
fic figures about the market sha-
res and the development of texti-
le discounters are not available. It
should also be mentioned that
discounters like H&M, Zara and
Mango have accelerated their
international expansion in the last
few years. Thus a reallocation in
the market share is likely.
148
4.4.3.1.6 Grocery super- and hyper-
markets
Key characteristics: The main acti-
vities of grocery super- and
hypermarkets lie originally in the
selling of groceries. Both distributi-
on channels are gaining importan-
ce in Spain. The price level of clot-
hing sold by super- and hyper-
markets ranges in the lower to
middle level. The important sup-
pliers are large supermarkets like
ALCAMPO, ALIMENT, MERCADO-
NA, GIGANTE and CARREFOUR.
The childrenswear sector plays a
particularly important role for this
distribution channel.
Market share: 13% in 2004
Trend: increasing (2002 = 12%)
4.4.3.1.7 Sport shops
Sport shops in Spain only offer a
limited range of clothing products
which all have a sporting attitude
and fit to numerous sporting disci-
plines.
Market share: 5% in 2004
Trend: no previous data
4.4.3.1.8 Street markets and other
According to desk-research and
interviews conducted in Spain,
open street markets and to a les-
ser extent consumer fairs and fac-
tory outlets are the major distribu-
tion channels for clothing summa-
rised under Other forms of retail.
The market share of this retail
channels is slightly decreasing.
Market share: 6% in 2004
Trend: slightly decreasing
(2002 = 7%)
4.4.3.2 Sales Intermediaries
4.4.3.2.1 Clothing Manufacturers
As stated above, the clothing pro-
duction sector plays a dominant
role in the Spanish industry. There
is a growing trend among manu-
facturers to create their own chain
of distribution. Franchise has
become a very common system
for brand name distribution of
fashion products. The latest avai-
lable analysis of the Spanish
Franchise Association from 2001
states that there are over 78
Spanish brand name franchises in
the fashion sector with almost
3 000 boutiques. In the meantime
this figure will have gone up by
approximately 10-12% (more
details under www.franquiciado-
res.com).
A new way of distributing gar-
ments for clothing manufacturers
originates from the USA: Sales
through Factory Outlet Centers
(FOCs). Garments are sold direct-
ly from the factory to the consu-
mer. This distribution way con-
cerns leftovers: goods from
overproduction, phased-out pro-
ducts and returns. ZARA has an
independent shop in Madrid.
There are many FOCs in Spain,
located outside of big cities.
149
There is FOC La Roca Company
Stores near Barcelona, which
offers brand apparel at reduced
price in 40 shops (Cacharel,
Dockers, Levis, Timberland). Two
other FOCs are situated near
Madrid (Las Rozas Village in Las
Rozas and another one in Getafe).
According to Factory-Outlet
Center.biz there are 6 registered
large FOCs in Spain in 2006.
4.4.3.2.2 Central Buying Associations
As the share of independent
smaller retailers in Spain (at 37%)
is high, there is a relatively broad
basis for potential member com-
panies for buying associations.
Nevertheless, there are only two
buying associations of importance
in Spain: UNA VIVO in Madrid with
160 members and IFA ESPANOLA
in Madrid with 62 members, foun-
ded in 1967. The members of the
latter are more supermarkets and
cash-and-carry markets than
retailers.
The low importance of buying
associations in Spain can be main-
ly explained by the fact that the
owner of a single boutique or a
small number of shops buys over
80% of his product range from
local manufacturers and/or from
sales agents representing foreign
brands. Therefore, the buying
associations are of less importan-
ce for foreign manufacturers wis-
hing to export to Spain.
4.4.3.2.3 Sales Agents
Sales agents play a major role in
the Spanish clothing market. This
refers mainly to Spanish and
European clothing brands which
are distributed via a network of
sales agents all over the country.
Only those clothing manufactu-
rers from abroad wishing to enter
the Spanish market with an own
product range are advised to
appoint a sales agent to sell their
collection to the major retailers.
These sales agents should be
located near or in the major clot-
hing areas of Spain like Madrid,
Seville, Barcelona and La Corua
to build up and maintain contact
to the key players in Spain.
4.4.3.2.4 Importers/wholesalers
Given the strong increase of clot-
hing imports into Spain since the
end of the nineties, the necessity
for the assignment of
importers/wholesalers has increa-
sed. Some Spanish
wholesalers/importers have come
to supply the chains and the
brands with price attractive and
fashionable collections that they
often develop with manufacturers
from overseas countries.
However, interviews in Spain have
shown that the large clothing
companies like Mango, Inditex or
Indyuco often have their own
import departments and sourcing
and control systems worldwide.
Therefore, the clothing supplier
from abroad should approach
retailers and manufacturers in
Spain directly.
150
4.5 SPANISH FASHION
TRADE FAIRS
The important Spanish fashion
fairs take place in two big cities:
Barcelona and Madrid. The signifi-
cant fashion fair in Barcelona is
BCN Fashion Week. The main
focus of this fair is casual & high
quality wear and prt--porter for
men and women, accessories
exhibition, swimwear and lingerie
fashion.
The significant fashion fair in
Madrid is SIMM International
Fashion Week. It is organized
twice a year, in February and
August/September in Parque
Ferial Juan Carlos I by IFEMA
(Feria de Madrid). The fair focuses
on mens and womenswear, but
also fur clothing and leather gar-
ments. The fair includes the follo-
wing events: INMODA/ANIMODA,
IMAGENMODA, INTERMODA, LA
GALERIA, PASARELA DE CIBE-
LES, CIEN POR CIEN, ESPACIO
CIBELES, ESPACIO HOMBRE and
BOUTIQUE EUROPA. From 2006
onwards all shows in
February/September each year
will be combined under the name:
International Madrid Fashion
Week. 930 exhibitors will partici-
pate in February 2006 with an
exhibition area of 35 800 sq. m.
The ongoing growth SIMM has
enjoyed has made this event the
second most important fashion
trade fair in Europe in terms of net
exhibition area, based on a solid
and constant drive to ensure qua-
lity. Furthermore, the fair will featu-
re strong participation on the part
of international companies and
buyers from other countries, for
which SIMM represents an impor-
tant business centre.
For childrenswear the FIMI in
Valencia is the most important
event. The fair takes place twice
per year and shows baby to teen-
ager wear as well as accessories
and maternity wear. FIMI - the
62nd edition of the International
Children's and Young People's
Fashion Fair in Valencia will take
place on 13-15 January 2006. At
this show all the collections for
Autumn / Winter 2006-07 will be
presented. FIMI anticipates the
visit of 7,000 professionals, who
have shown great loyalty since
the fair began. More than 250
companies, national as well as
international, originating mainly
from Italy, France and Portugal will
present the latest fashion trends.
151
Table 4-8: Overview of Spanish Fashion Trade Fairs

Trade Fair Products Location Dates

FIMI Children and youth wear Valencia January and June

BCN Fashion Week (SIMM) Womens and mens- Barcelona January and
wear September

International Fashion Week Womens and mens- Madrid February and

(SIMM) wear September

CIEN X CIEN JOVEN jeans, sportswear, Madrid February and

streetwear August

ESPACIO HOMBRE menswear Madrid February and

August

IMAGENMODA Womenswear Madrid February and

August

INTERMODA direct-order-fair for Madrid February and

womens wear August

INTIMA Moda Bao lingerie and swimwear, Madrid August and

dessous September

Bread & Butter Barcelona Tradeshow for Barcelona January and July
selected brands

Source: m+a Expo DataBase, Messedatenbank, 2005/2006

152
4.6 LIST OF MAJOR BUYERS OF LADIES, MENS AND
CHILDRENS WEAR IN SPAIN
Clothing Chain Stores
C & A Modas S.L.
Esther Pineo
Avda. de la Indstria, 17
E - 28108 Alcobendas (Madrid)
Tel.: +34-91-663 0000
Fax: +34-91-663 3532
press@C-and-A.com
www.c-and-a.com www.c-y-a.es
Celso Garcia SA
Calle Serrano 52
E - 28001 Madrid
Tel.: +34-91-431 6760
Fax: +34-91-431 67 70
www.cortefiel.es
Comerc. Espanola LA
ARANA SA
Polgono Industrial El Pla -
Edificio Arana
E - 08800 Barcelona
Tel.: +34-93-668 9061
Fax: +34-93-668 5962
Cortefiel SA
Avenida Mon Forte De Lemos
s/n
E - 28029 Madrid
Tel.: +34-91-730 2912
Fax: +34-91-730 2437
www.cortefiel.es
Damart SA
Calle Gomis 32
E - 08023 Barcelona
Tel.: +34-93-212 2412
Fax: +34-93-211 5815
www.damart.fr
Product range: Ladies, mens and
childrenswear
Price segment: Lower to mid level
Number of outlets: 47
Product range: Ladies, mens and
childrenswear
Price segment: Mid level
Number of outlets: 11
Note: Belongs 1/3 to Cortefiel
Product range: Ladies and
menswear
Price segment: Lower to mid level
Number of outlets: 42
Product range: Ladies and
menswear + young fashion
Price segment: Mid level
Number of outlets: > 300
Product range: Ladies and
menswear, underwear
Price segment: Lower level
Number of outlets: 22 shops
+ mail order
153
Euronido Textil SA
Ctra. Anadlucia, km 6.400
E - 28041 Madrid
Tel.: +34-91-217 3345
Fax: +34-91-365 0848
www.euronido.es
Inditex SA (Zara)
Poligono Ind. Sabon 79B
E - 15142 Arteixo, La Coruna
Tel.: +34-981-185400
Fax: +34-981-185454
www.inditex.com
Mango Punto FA S.L.
Calle Mercaders 9 11
E - 08184 Palau de Plegamans
Barcelona
Tel.: +34-93-860 2222
Fax: +34-93-8602 201
www.mango.es
Prnatal SA
Botanica 29-31
Hospitalet de Llobregat
E - 08908 Barcelona
Tel.: +34-93-2606000
Fax: +34-93-2606018
www.prenatal.es
Reguero SA
Roble 3
E - 28020 Madrid
Tel.: +34-91-4252 880
Fax: +34-91- 571 57 35
Product range: Ladies and
menswear
Price segment: Lower level
(value for money)
Number of outlets: 16
Product range: Ladies, mens and
childrenswear
Price segment: Mid to upper level
Number of outlets: > 500 - partially
own production
Product range: Womenswear, young
fashion
Price segment: Mid level
Number of outlets: Over 60 + 175
franchising partners
Product range: Childrenswear,
Maternity wear
Price segment: Mid to upper level
Number of outlets: 100
Product range: Menswear
Price segment: Lower to mid level
Number of outlets: 14
154
Superconfex SA
Sierra de Guadarrama 84
Polgono Industrial San Fernando
de Henares
E - 28850 Madrid
Tel.: +34-91-656 4012
Fax: +34-91-677 2935
www.superconfex.nl
Product range: Ladies and
menswear
Price segment: Lower level
Number of outlets: 12
Note: Daughter company of Dutch
Superconfex

Viella SA Product range: Ladies and

Psje. Blanchart 26 menswear
E - 08901 Barcelona Price segment: Mid level
Tel.: +34-93-337 1686 Number of outlets: 20
Fax: +34-93-93- 337 1690

Jeans-, Sportswear and Young Fashion

Dacosa SA Product range: Sportswear
Claudio Coello 57 Price segment: Mid to higher level
E - 28001 Madrid Number of outlets: 110
Tel.: +34-91-431 6041 Note: belongs to Cortefiel group
Fax: +34-91-577 4904

Saez Merino S.A. Note: One of the leading jeans and

Lanterners, no 1 Pol. Vara de casual wear manufacturers in Spain
Quart with brands CAROCHE, LOIS and
E - 46014 Valencia CIMARRON
Tel.: +34-96-382 65 70
Fax: +34-96-382 65 79
www.saezmerino.es

Department Stores
Alcampo SA Product range: Ladies, mens and
Edificio de Oficina Madrid 2 childrenswear
Santiago del Compostela sur s/n Price segment: Lower to mid level
E - 28029 Madrid Number of outlets: 43 + 13 service
Tel.: +34-91-730 6666 points
Fax: +34-91-730 7299
www.alcampo.es

155
Almacenes ARCOS SA
Avenida de Portugal 2
E - 21001 Huelva
Fax: +34-955-25637
El Corte Ingles SA
Hermosilla 112
E - 28009 Madrid
Tel.: +34-91-309 7221
Fax: +34-91-327 1327
www.elcorteingles.es
Galerias Primero SA
Paseo Echegaray y caballero 76
E - 50003 Zaragoza
Tel.: +34-976-769900
Fax: +34-976-769901
www.galeriasprimero.es
Jose Luis Gay GA
Calle Alfonso I n 17
E - 50003 Zaragoza
Tel.: +34-976-397150
Fax: +34-976-396647
Simago SA
Josefa Valcarcel, 40 duplicado
E - 28027 Madrid
Tel.: +34-91-301 80 00
Fax: +34-91-301 80 23
Product range: Ladies, mens and
childrenswear
Price segment: Lower level
Number of outlets: 8 dept. stores
+ 3 discounters
Product range: Mens ladies and
childrenswear
Price segment: Lower to upper level
(depending on distribution channel)
Number of outlets: 37 dept. stores +
supermarkets + franchising partners
Product range: Ladies, mens and
childrenswear
Price segment: Mid level
Number of outlets: 11
Product range: Ladies and
menswear
Price segment: Lower level
Number of outlets: 6
Product range: Ladies, mens and
childrenswear
Price segment: Lower level
Number of outlets: approximately 15
Note: belongs to the Spanish
Continente Group
156
Mail Order Companies

Venta Catalogo SA Product range: Casual wear for men

Calle de los Olivares 1 - and women
Vilanova i la Geltr Price segment: Mid level
E - 08800 Barcelona
Tel.: +34-93-814 0909
Fax: +34-93-893 0818
www.venca.es

Manufacturers/Importers and
Wholesalers/Importers

Caramelo SA Product range: Ladies and

Avda. Gambrinus 103
E - 15008 La Coruna
Tel.: +34-981-146 002
Fax: +34-981-270103
www.caramelo.com
menswear
Price segment: Mid to higher level
Number of outlets: 25
Note: Manufacturer + retailer

Centro Textil Massana Product range: Knitwear and

C. Josep Calvet, 80 - Apto. 1052 outerwear
E - 08302 Matar Price segment: Mid level
Tel.: +34-937-415 545
Fax: +34-937-415 553
www.massana.es

Difusion Dignos Product range: Knitwear

SL / Diktons Price segment: Lower to mid level
Tnger 66
E - 08018 Barcelona
Tel.: +34-93-4864545
Fax: +34-93-4864546

Efussion International SA Product range: Menswear

Avda. Rio Palancia s/n Price segment: Mid level
E - 12412 Geldo (Castellon) Note: Manufacturer
Tel.: +34-964-712081
Fax: +34-964-712011

157
Import Arasate S.A. Product range: Sport and rainwear
Pol. Kataid, pab 19
E - 205000 Arrasate
(Guipuzcoca)
Tel.: +34-943-712-034
Fax: +34-943-771-301
www.astore.es

Induyco Grupo de Moda Product range: Ladies, mens and

Tomas Breton, 62
E - 28045 Madrid
Tel.: +34-91-4680 300
Fax: +34-91-46 78 723
www.induyco.es
childrenswear
Price segment: Mid to high level
Note: 50% production absorbed by
Corte Ingls

Sirita SL Product range: Casual wear for men

Calle Poligono 6 Note: Manufacturer
E - 46960 Aldaya (Valencia)
Tel.: +34-96-151 2377
Fax: +34-96-151 2361
www.andres-garcia.com

Takezo + Co. SA Product range: Ladies and

Trafalgr 70 menswear
E - Barcelona (Ciutat Vella) Price segment: Mid level
Tel.: +34-93-268 4322
Fax: +34-93-268 2293

Unicen SL Product range: Menswear

San Pedro de Leixa 303 Note: Manufacturer and wholesaler
E - 15405 Ferrol, La Coruna
Tel.: +34-981-315611
Fax: +34-981-326252
www.unicen.com

158
Buying Associations

FA Espanola SA Note: 62 related wholesalers

Seplveda, 4
Poligono Industrial Alcobendas
E - 28100 Alcobendas (Madrid)
Tel.: +34-91-651 0460
Fax: +34-91-661 5880
www.grupoifa.com

Una Vivo AS Note: 160 related companies

Condado de Trevino 19
E - 28033 Madrid
Tel.: +34-91-766 1222

159
 Outerwear

SWITZERLAND
5 SWITZERLAND
5.1 GENERAL ECONOMIC
SITUATION
The Swiss import policy for clot-
hing from EU and to a large extent
also from non-EU countries is very
liberal. Thus, the economy is inter-
nationally highly integrated, apply-
ing an open trade regime for indu-
strial products. Tariffs on manu-
factured products are generally
low, and in principle there are no
quantitative restrictions, anti-dum-
ping, countervailing or safeguard
actions. However, in a number of
sectors, the market entry has long
suffered from private or informal originating in the financial sector.
barriers that can be attributed to a
legacy of weak anti-cartellegislati-
on, specific and protective techni-
cal regulations, certain investment
restrictions, etc.
Against the backdrop that
Switzerland has no mineral
resources, the country is forced to
import, process and resell them
as products. The service sector
is the most significant part of the
economy, employing more the
50% of the population. This sector
specifically includes banking, insu-
rance and tourism. Industry and
trade are the second sectors in
significance (about 40% of the
population are employed there)
and include the machine and
metal industry, the watch industry
as well as the textile and clothing
industry.
Economic relations with the EU
have further intensified and
foreign trade with this country
block has a share of 70% of all
Swiss trade activities. This is main-
ly also due to the seven bilateral
agreements between Switzerland
and the European Union that
came into force on June 1st, 2002
and the central location of
Switzerland within Europe.
Exports of merchandise are con-
centrated on a few sectors, parti-
cularly machinery, instruments,
watches, chemicals and medical
products and to a lesser extent
textiles and clothing. Exports of
commercial services are also
important with about one quarter
As mentioned, the European
countries play an important role in
Swiss trade relations. Germany is
the most important trading part-
ner for Switzerland: In 2004,
32.9% (23 Bn. ) of all imports
came from Germany and 20.3%
of all exports (18.8 Bn. ) were
delivered into Germany. Both are
also important investment part-
ners to each other. The complete
capital stock of German invest-
ments in Switzerland amounts to
18 Bn. . Almost 1 800 German
enterprises are operating in
Switzerland. Switzerland, on the
other hand, has investments total-
ling up to 17 billion in Ger-
many, operating with approx.
1 900 enterprises and 220 000
employees. Switzerland is the
sixth largest foreign investor in
Germany.
160
GDP and Industrial Production
have grown from 2003 to 2004
by 1.7% and 4.7% respectively.
Table 5-1 shows all of the impor-
tant Key Indicators of the Swiss
Economy over the last years.

Table 5-1: Key indicators of the Swiss Economy, 2002 - 2005

in % 2002 2003 2004 2005 (est.)

Real GDP growth 0,30 -0,40 1,70 1,27

Industrial production growth -0,50 0,40 4,70 3,28

Unemployment rate (average) 2,50 3,70 3,90 3,37

Consumer price inflation (average) 0,60 0,60 0,80 0,93

Exchange rates

CHF: (av) 1.47 1.52 1.54 1.53

CHF: US$ (av) 1.56 1.40 1.24 1.50

Source: SFSO, 2005

In 2005, the fluctuation of the

CHF (CHF=Swiss Franc) against
the (Euro) was small, from an
absolute high of 1.57 ( to CHF)
to an absolute low of 1.53 at the
end of 2005 (only 2.5% variati-
on). The lowest rate for the CHF
against the between 2002 and
2005 was 1.45 in 2002 and the
highest, 1.58 in 2004 (fluctuation
9%). The Euro fluctuation against
the USD (US-Dollar) was much
higher, from 1.20 in 2002 to a low
of 0.73 at the beginning of 2005
(nearly 64%) within the same
period. The CHF develops more
closely in line with the Euro than
with the USD. In the past few
years, the ratio of the CHF to the
Euro has slowly but continuously
grown stronger. One CHF is at
present 1.544 (13.12.2005).
161
 5.2 THE MARKET FOR
OUTERWEAR
5.2.1 Market size
Switzerland has a small but very
competitive apparel market. In
2003, the total size of the Swiss
clothing market was about CHF
6.8 Billion. Switzerland has very
high labour and production costs,
and therefore the industry has the
tendency to concentrate on high-
end and/or niche products.
Switzerlands apparel industry is
experiencing a resizing process,
based on the following key factors:
- Worldwide overcapacities
- Growing competition from low-
wage economies
- Strict displacement competition
- Lack of market dynamics in textile
production
- Market split between expensive
labels and cheap mass clothing
- Consumer price sensitivity
- Demographic developments
- Discrimination of passive valu-
added trade (eliminated by the
principle of the Pan European Accu-
mulation since January 1997), com
prising EU member States, EFTA1
and MOES2
in Mio. CHF 2002
Source: SFSO, 2004
Import Market 5386
National Production 1481
Exports 1236
Total Market 6867
The MOES agreement benefits
exporters and manufacturers of
clothing by providing them with
more competitive advantages on
the European markets and has
brought an end to the discrimina-
tion against Swiss textile products
that have been produced in
Eastern and Central European
countries.
Clothing imports amounted to
5 423 Million CHF in 2004 (see
Table 5-2), a 0.9% growth over
the previous year. At the same
time, clothing exports accounted
for 1 623 Million CHF.
Due to the fact that Switzerland is
a relatively small country, the
Swiss clothing industry depends
strongly on exports. Local pro-
duction accounts for 948 Million
CHF. Thus, imports are five times
stronger than local production.
The total market amounts to
6 245 Million CHF and fell by 9.3%
in 2004.
1
Switzerland, Norway, Iceland, Principality of Liechtenstein
2
Poland, Czech Republic, Slovakia, Hungary, Bulgaria,
Romania, Slovenia, Estonia, Latvia, Lithuania
Table 5-2: Size of the Swiss Clothing
Market, 2002 - 2004
2003 2004 % Change
against previous
year
5372 5423 0,95
1453 978 -48,57
1559 1623 4,10
6825 6245 -9,29
162
5.2.2 Market characteristics
The present situation in the clot-
hing market in Switzerland can be
characterised by the following
brief statements:
The recent economic improve-
ments in 2004/2005 have encou-
raged consumer spending. This
has resulted in improved pro-
spects for the clothing sector.
Sports activities such as basket-
ball, snowboarding, skateboar-
ding, etc. have spurred demand
for young and trendy fashion
wear. Casual and leisurewear
have also become more popular
in recent years. Highly fashion-
conscious young people are wil-
ling and able to pay higher prices
for well-known labels. The trend
towards use of natural fabrics and
fibres has slowed down; man-
made fibres that offer easier care
and washing of clothing have gai-
ned importance. Thus, ecological-
ly friendly clothes made of natural
fibres which were being introdu-
ced at the end of the nineties still
have a demand but at a lower
consumption level.
The German ecological standard
ko-Tex 100 was introduced
more than ten years ago and also
plays an important role in
Switzerland. The aim is to ban cer-
tain colouring methods, chloride
products and heavy metals to
prevent the danger of cancer or
allergies (see www.oeko-
tex.com).
The Swiss clothing retail market
has undergone a severe concen-
tration process with a trend
towards factory outlets, (brand)
chain stores and brand sales
points within larger department
stores (shop-in-shop). The
increased use of e-commerce in
the fashion world has imposed a
challenge to the normal retailers.
Trends are towards multi-chan-
nelling (parallel selling via internet
and shops), pre- and after sales
support and mass customized
offers. Foreign companies have
gained more and more influence,
for instance C&A Switzerland,
H&M and others (see Leading
Retailers and Distribution
Channels).
5.2.3 Demographic Characteristics
The Swiss society can be briefly
characterized as an aging society.
There are now many more elderly
people than 50 years ago. The
number of citizens over 64 has
more than doubled since 1950,
while that of those over 80 has
even quadrupled. The major age
group are those at an age bet-
ween 40-64 (34.33%). In con-
trast, the number of under twen-
ties has increased much less and
has actually declined since the
early seventies. This aging pro-
cess is the result of a longer life
expectancy and fewer births.
According to birth scenarios
drawn by the Swiss Federal
Statistical Office, this trend will
continue over the next few deca-
des.
163
 Table 5-3 shows the population The population pyramid shown in
development in Switzerland over Figure 5-1 points out in greater
the years 2002 to 2004. detail the recent (year 2005) pro-
portion of the Swiss male and
Table 5-3: Age structure of the Swiss female population divided into age
population by sex and age groups, groups (based on a total Swiss
2002 - 2004 population of 7.4 million).

2002 % 2003 % 2004 %

Switzerland 7313853 100 7364148 100 7415102 100

Sex

male 3575029 48,88 3601539 48,91 3628696 48,94

female 3738824 51,12 3762609 51,09 3786406 51,06

Age groups

0-19 1642782 22,46 1641794 22,29 639045 22,1

Source: SFSO, 2005

20-39 2086762 28,53 2072594 28,14 2055959 27,73

40-64 2441827 33,39 2493019 33,85 2545756 34,33

65-79 829715 11,34 837186 11,37 846194 11,41

80 and over 312764 4,28 319555 4,34 328148 4,43

Figure 5-1: Age structure of the Swiss Population by sex, 2005

Switzerland: 2005

85+
80-84
male 75-79 female
70-74
65-69
60-64
55-59
50-54
45-49
40-44
35-39
30-34
25-29
20-24
15-19
10-14
5-9
0-4

350 300 250 200 150 100 50 0 0 50 100 150 200 250 300 350
Population (in thousands)

Source: U.S. Census Bureau, International Data Base, 2005

164
5.2.4 Retail sales by categories
The sales volume increased by
2.6% for Swiss clothing and shoe
retail in 2004 compared to 2003.
This has been the first sales
increase since 1990. Data about
the specific sales for outerwear
are not available, however, Figure
5-2 gives a good indication on the
sales tendencies for clothing and
shoes from 1990 to 2004 .

Figure 5-2: Index of Clothing and Shoes (last 12 months), 2003 - 2004

105

100

95

90
1990 2000 2003 2004

Source: SFSO, 2004

Table 5-4 (a) shows the market
development for clothing in 2004.
Clothing sales in quantity terms
declined slightly by 0.2% whereas
the value decreased heavily by
10.6%. This diverging develop-
ment indicates a price decrease
per apparel item in Switzerland
(basically due to the increasing
imports from low-cost countries).

Table 5-4 (a): Market development in clothing in 2004 in comparison to 2000

2000 2004 Change to year

2000 in %

in Pieces 1.000 222.203 221.758 -0.2

Value in CHF Mill. 6.275 5.674 -10.6

Average Price in CHF 28.25 25.58 -10.4

Source: IHA-GfK, 2004

165
The sales volume of Outerwear
has grown from 930 Million CHF in
2003 to 950 Million CHF in 2004,
an increase of 2.2%. The sales
volume of Underwear declined by
2.7% in the same period. The total
turnover remained stable with a
slight growth of 0.5%. Table 5-4
(b) indicates the sales develop-
ments of the major product seg-
ments Outerwear and Underwear.

Table 5-4 (b): Clothing turnover development by categories 2003 - 2004

in Million CHF 2003 2004 Change from

previous year in %

Outer Wear 930 950 2,2

Under Wear 375 365 -2,7

Garment Accessories 215 212 -1,4

Total 1,520 1,527 0,5

Index Values (Basis 1995 = 100)

Knitted Garments 73,2 71,2 -2,7

Woven Garments 101,0 113,0 11,9

Garments & Shoes 97,0 99,5 2,6

Source: Textile Revue, 2004

The sales of Knitted Garments - High-end designer brands

declined by -2.7%, while Woven
Garments increased by 11.9% in the
same period.
According to desk research carried
out in Switzerland, the following
product groups have the best sales
prospects in Switzerland:
- Young and trendy Sports-
wear/Casual wear
- Jeans wear (either branded or
on a value for money basis)-
Strict displacement competition
- Well-known street wear brands
in the mid price range
- Fashionable products at an
acceptable price level mainly
offered by chains
- Environmentally friendly apparel
- Soccer related active sports
wear as Switzerland qualified
for the FIFA Worl Championship
2006
The demand for leisure and casu-
al wear has increased continuous-
ly over the last few years, especi-
ally for the sportswear and smart
casual segment. Additionally,
high-end designer lines can also
be quite successful in Switzerland
with its high standard of living. An
ongoing trend is a demand for
natural fabrics. Also functional
clothing e.g. with breath-active
fabric is selling well.
166
5.2.5 Consumer behaviour
5.2.5.1 Consumer preferences
Swiss consumers can be defined
as hybrid consumers, as in other
countries. Market analysis has
shown that generally speaking the
consumers are very well informed
about the latest trends in fashion
and can be considered to be both
sophisticated and brand conscio-
us. This is the case especially for
people with higher income and a
higher standard of living. It is no
surprise that well-known clothing
brands are popular among Swiss
consumers, as they are conside-
red status symbols. On the other
hand, there are many cheap
chain stores with a value-for-
money-concept on the market
which reflects the economic
sense of the Swiss consumer.
Swiss women today can generally
be described as fashion oriented
without following all fashion trends
immediately. They are usually sure
of their taste and prefer basic and
practical garments which can be
easily mixed and matched. Swiss
women occasionally engage in
impulse buying, but generally pre-
fer to invest in high quality basics.
Working women prefer simple
and elegant garments of high
quality and comfort. The formal
office outfit for working women
usually consists of an outfit or suit
with matching blouse or shirt.
Matching accessories like shawls,
belts, handbags etc. have gained
much more importance in the last
2-3 years and help to freshen-up
an existing outfit.
Modern Swiss men have changed
their attitude to fashion considera-
bly over the past few years.
According to retail trade sources,
the male customers have grown
up and know what they are loo-
king for: fashionable and comfor-
table clothing of good quality. The
level of sophistication in mens
attitude is increasing. Well-known
brand names are very popular,
especially among label-conscious
young consumers.
Younger people, in particular, are
willing and able to pay high prices
for well-known labels. Casual clot-
hing without a known label in the
mid price bracket is also in
demand. In general, buyers aged
25-50 are the most relevant con-
sumer group for apparel, repre-
senting the target group which
spends a high proportion of dis-
posable income on apparel and
shoes. Quality, functionality, price
and design, in that order, are the
most important factors for this tar-
get group in taking a buying deci-
sion.
Children (beginning at kindergar-
ten age) believe they know what
fashion is and what fashion suits
them. They have clear wishes and
preferences concerning brands;
they love Hip-hop and Rap styles
with wide trousers (baggy trou-
sers), jeans and sport shoes.
Sports brands like Puma, Adidas
etc. have been very much in
demand in 2005. This target mar-
ket changes its preferences relati-
vely quickly.
167
 5.2.5.2 Consumer expenditures
The Swiss population has one of
the highest per capita incomes in
the world. Households with a single
person account for 19.4% of the
Swiss population and have an inco-
me of around 6700 CHF/month
according to the last survey of the
Swiss Federal Statistical Office
(SFSO) in 2003. Couples without
children have the highest in-
comes with an estimated 10,976
CHF/month.
Table 5-5 summarizes the structure
of Swiss household income by size
of household.

Table 5-5: Household income by household types, 2003

All Single Sole Couples Couples Couples Couples

house- person parent with 1 with 2 with 3 or
holds family child children more
children

Percentage 100 19.4 3.7 18.8 10.5 13.5 5.4

of house-
holds

People per 2.3 1 2.54 2 3 4 5.29

household

Monthly 8781 6718 8338 10976 10912 11440 11808

income
per hou-
sehold

Source: SFSO, 2003 (most recent year for which figures are available)
1
Note: The remaining 28.7% are not allocated to consumer segments.

According to a market survey of 2.9% (in 2000 it was 4.35%),

the SFSO, monthly earnings for which means approximately 223
the average Swiss household (2.3 CHF monthly (in 2000 334.25
persons) are 7981 CHF. A relative- CHF), is usually spent on clothing
ly small share of this money, only items and footwear.

168
5.2.6 Price development of clothing
For the last few years, the Swiss
clothing market has permitted no
significant price increases. Based
on stable procurement costs but
increased costs for personnel,
rent, energy etc., the margins in all
sectors have the tendency to
become smaller. In this respect,
the profit situation has become
much worse for companies that
are concentrated on the national
market only. Therefore, many
manufacturers are forced to con-
centrate on high-quality products,
niche marketing, new fashion and
exclusive lines or on export mar-
kets.
Figure 5-3: National consumer price index relative to clothing price index,
1995 2004
105,0
95,0
85,0
1995 1996 1997 1998
Consumer Proce Index
Source: SFSO, 2004
The Swiss price index increased
continuously but very slowly from
1999 to 2004 at an average rate
of 0.9%. In fact, there has been
practically no inflation in recent
years. Prices for apparel have
decreased since 1999. There has
been a dramatic price deflation of
clothing since 2001. The reason
can be seen in the heavy price
cuts of Swiss retailers due to the
fierce competition. On average, in
2001 the prices for clothing in
Switzerland decreased by 5.4%.
More details can be taken from
Figure 5-3.
1999 2000 2001 2002 2003 2004
Clothing Price Index
169
5.3 IMPORTS
5.3.1 Total imports
Switzerland has an extremely libe-
ral import regime for textiles (no
import limitations, and some of the
lowest import duties in the world).
In addition, developing countries
profit from a 50% import tax
reduction.
In the year 2003, total imports of
clothing and textiles amounted to
7.47 billion CHF. In comparison,
outerwear imports were 4.59 billi-
on CHF, with 1.1% growth in 2004
and with a falling tendency in 2005
(approx. -0.9%).

Since 2001, clothing imports have

averaged 5.37 Billion CHF. More
details can be taken from Figure

Figure 5-4: Clothing imports, 2001 2005

5.47
5.39 5.37 5.37
5.27

4.61 4.64 4.61

4.58 4.59

4
2001 2002 2003 2004 2005 (est.)

Source: SFCO, last updated, 2004

5-4, which shows the clothing

import developments into Switzer-
land from 2001 to 2005. The
upper curve shows clothing total
and the lower curve, the HS
Codes 61 and 62 (basically outer-
wear).

170
The statistical data about clothing
imports to Switzerland gathered
by the Swiss Textile Association
allow a general look at the import
flows of outer- and underwear in
2003 and 2004 in comparison
with 2000. The figures are sum-
marized in Table 5-6.
The imports of clothing (under-
and outerwear) increased from
1999 to 2000 in terms of volume
and value. The outerwear imports
were 4307.3 Million CHF turnover
an increase of 0.6% from 2003 to
2004.

Table 5-6: Imports of outerwear and underwear, 2003 2004

(in comparison with 2000)

In CHF Million 2000 2003 2004 Change from

previous year in %

Outer Wear 4.373.7 4.279.8 4.307.3 0.6

Under Wear 671.8 749.1 753.1 0.5

Total 5.045.5 5.028.9 5060.4 0.63

Source: Swiss Textile Federation, 2004

5.3.2 Outward Processing Trade (OPT) There are no detailed statistics

available for the last few years, as
The outsourcing of local producti- the import data are no longer spe-
on process to low wage countries cified for OPT and non-OPT clot-
is continuing. Thus, the outward hing imports. A more detailed
processing trade (OPT) of clothing analysis is therefore not possible.
manufacturers in Switzerland has
increased too in the last few years
and contributed to the growth of
the Swiss clothing industry.

171
 5.3.3 Largest suppliers
Table 5-7 summarises the major
countries supplying outerwear to
Switzerland. The neighbouring
countries Germany and Italy
remain the most important clot-
hing suppliers for Switzerland.
More than 81% of the clothing
imported originates from Europe.
Professional and advanced mar-
keting by the foreign brands,
quick and easy communication
and overnight truck deliveries are
important reasons for this domi-
nant position. In recent years, the
role of Austria has improved from
9th to 5th position. Portugal has fal-
Table 5-7: Largest supplying countries, 2000 2004
ced or finished in low labour cost
countries, whether in Eastern
Europe, North Africa or elsewhe-
re. The East Asian countries China
and India (places three and seven)
have a slightly declining market
role compared to other supplying
countries. Next to Austria,
Bangladesh has shown the hig-
hest increase at 18.2%.
The EU remains the by far most
important trading partner in clot-
hing for Switzerland (export share
77.2%, import share 59.7%). EFTA
countries no longer have any
importance as suppliers. The sup-
ply from developing countries

Source: Eurostat 2005

Po- Country 2000 2003 2004 +/- in %
siton in mio. CHF in mio. CHF in mio. CHF

1 Germany 1662,9 1569,1 1555,7 -0,9

2 Italy 968,2 1357,9 1383,4 1,9

3 China 627,9 497,5 519,4 4,4

4 France 486 470,1 452,1 -3,8

5 Austria 147,7 121,6 148,2 21,8

6 Turkey 113,1 135 137,9 2,2

7 India 152,4 123,6 127,1 2,8

8 Portugal 153 159,4 117 -26,6

9 Netherlands 98,6 118,3 113,1 -4,4

10 Spain 76,1 98,5 112,2 13,9

11 Bangladesh - 58,8 69,5 18,2

12 Great Britain 97,6 69,2 68 -1,7

All 12 countries 4583,5 4779 4803,6 0,5

All countries worldwide 5396,3 5372,3 5422,7 -0,9

len back from 5th to 8th position. increases and has gained compe-
titiveness regarding design,
Most of the well known European fashion and qualitative aspects.
brands are at least partially produ-
172
5.4 TRADE STRUCTURE
5.4.1 Developments in the retail trade
The liberalization of regulations
governing clearance sales in the
retail trade since 1997 has enab-
led Swiss retailers to initiate sales
all year round, and not just during
fixed periods. While smaller retai-
lers in particular fear that the
department stores and other big
clothing stores will continue to put
additional pressure on prices and
margins by starting the summer
and winter sales earlier each year,
other trade sources mentioned
the positive effect the liberalization
has on shops forced to liquidate
their goods in order to renovate or
move the store.
The sales volume in the clothing
market has shrunk by about 10%
in the three years up to 2004 (in
value terms). Growth was impe-
ded by successful trade competi-
tors and continuing price reducti-
ons. After the cessation of the
import/export quotas on January
1st, 2005 which had specially pro-
tected the European markets
from cheap imports from China
for years, the prices fell even
more. The market entry of the
Italian Oviesse shops (under the
direction of C&A Switzerland) has
brought additional competition, as
has the transformation of COOP
city markets and takeovers in the
mail order business.
Clothing trends, especially the
cessation of fashion dictations or
dress codes, favour a further fall in
the sales volume in the market as
a whole. However, there are also
factors which will influence the
future development of the clot-
hing market positively such as
demographic development and
increasing disposable incomes.
Those groups who are most inve-
sting in clothes at present will also
have the strongest population
growth within the coming years,
basically the age group from 35 to
65 years of age. The age group
between 45 and 54 have been
strong consumers already in the
past, and this specific age group
will influence the market positively.
In general, the situation of the
Swiss clothing retail market
remains difficult, mainly due to
more and more competition from
foreign chains (Mango, Zara,
H&M, C&A Switzerland) but also
Swiss retailers growing stronger
like Tally Weilj or Vgele. The spe-
cialised smaller and independent
retailers are under pressure and
often can only exist by mixing dif-
ferent labels to be attractive for a
specific target group. There is a
continuing trend to verticalization
at Swiss retail level, meaning to
manage and control the whole
sourcing and distribution process
from design of the collection and
production down to the distributi-
on of the product range in self-
owned retail outlets. This sales
concept means a strict supply
chain management and is increa-
singly used also by department-
stores and chains like Globus buil-
ding up their own retail brands.
173
The sales volume of the Swiss
textile and clothing industry in
2004 reached about 3.7 Bn. CHF
with a share of 2.2 bn. CHF for the
clothing industry alone. This was a
1.9% increase over the previous
year. Local clothing production
increased by 0.5%. Exports
increased to 1.6 bn. CHF (+4.1%).
The sales volume at retail level
more or less stagnated between
2001 and 2005. More details
about sales volumes can be taken
from Figure 5-5, which provides a Figure 5-5: Clothing and textiles
comparison with other sectors of turnover relative to turnover in all
the Swiss economy. sectors, 2002 - 2005

140

130

120

110

100

90
80

70
60

I/2002 III/2002 I/2003 III/2003 I/2004 III/2004 I/2005 III/2005

Clothing and Textile Turnover Turnover all Sectors

Source: SFSO, 2004

5.4.2 Leading retailers biggest market player is H&M,

The following clothing retailers are
the important stores and shops
on the Swiss market (section
6.4.3. Distribution Channels gives
further detail). The overall compo-
sition of market leaders has
changed dramatically within the
past few years. Price competition
is fierce and deemed dangerous
by experts as customers are get-
ting used to special offers. The
followed by Vgele, C&A Switzer-
land, the PKZ Group and depart-
ment stores such as COOP,
Globus, Migros and Manor.
The Swedish HENNES & MAU-
RITZ is currently the market lead-
er. Established in Switzerland in
the year 1978, H&M now operates
49 stores throughout the country.
It has a turnover of 619 Million (3
644 Million CHF).

174
H&M does not produce itself but
has a network of 700 suppliers.
60% of production is placed in
Asia. A key factor in success
seems to be the strategy of cost
leadership backed by the globally
operating Swedish headquarters.
Two stores were opened in 2004
(one for childrenswear). The
management perceives growth
potential in Switzerland as limited
because H&M has been present
in the market since the late seven-
ties.
CHARLES VGELE MODE AG is a
Swiss-based fashion chain opera-
ting in Switzerland, Germany,
Austria, Belgium and The
Netherlands. In 2005, Vgele had
7201 employees and 787 sales
branches. Group turnover has fal-
len from 974.1 Million in 2002 to
866.2 Million in 2004 while ear-
nings doubled from 10.3 to 24.4 in
2003 and remained stable in
2004. Vgeles primary market
strategy traditionally has been low
price and still is, though effort has
been made to ensure high quality
as well. Break-even was reached
in the German market in 2005
year although overall turnover has
decreased. To respond to higher
pressure in the market, retail out-
lets are managed as profit cen-
tres. Consequently, the number of
full-time employee has been
reduced slightly for the last 2-3
years. In order to increase pro-
ductivity, a special supply chain
management division has been
set up. Plans are to cut costs by
6.5 million this year. The first six
months of 2005 already ended
with a profit surplus of 4.4%
(664.5 Mill. CHF).
CHARLES VGELE GROUP does
not have production centres of its
own. All clothes are obtained from
external suppliers. Most purchase
orders (about 95%) are placed
directly with manufacturers all
over the world and produced with
Vgele own-labels. By the vertical
organization, the costs are optimi-
zed and high quality standards
can be maintained. Vgele runs a
clear compliance strategy, expec-
ting sustainability and responsibili-
ty of its suppliers, e.g. by following
certain minimum social standards,
environmental rules and product
safety standards.
An important event in the anniver-
sary year 2005 was the revision of
the Corporate Identity of the
enterprise. The new logo repre-
sents a fusion of dynamism and
tradition. The main aim is to offer
attractive prices and high quality
for ready-to-wear elegance and
style affordable for their custo-
mers. In the next few years,
Vgele will expand into new mar-
kets such as Slovenia, Poland,
Hungary and Czech and will
strengthen its position in Germany
(330 stores at present). In
Switzerland, Vgele operates 157
stores, has 2175 employees and a
selling space of 129 762 sq. m.
175
Net sales were 485.3 bn. CHF.
According to the German textile
publication Textilwirtschaft, this
figure represents a market share
of 6.1% which is higher than the
share of H&M in the Swiss market.
The range consists of womens-
wear (56%), menswear (32%) and
childrenswear (12%).
ABM (Au Bon March) has pulled
out of the market. In 2002, the 56
stores were transformed into
Oviesse under the regime of the
Globus group and a franchise
agreement with the Italian Gruppo
Coin. The Gruppo Coin wants to
enter several European markets
with their Oviesse concept.
OVIESSE belongs to the big Italian
clothing and textile chains with
about 200 branch offices for
ladies, mens and childrenswear.
The range is positioned in the low
price segment and brings out
novelties on a permanent basis.
Store design and product presen-
tation is highly attractive.
The GLOBUS GROUP flagship
store in Zurich employs about 420
employees and achieves a sales
volume of about 150 Mio. CHF
yearly on a net selling space of
7,500 sq. m. With a square metre
sales volume of over 20,000 CHF
per month it is one of the most
productive department stores of
the world.
The Globus group completed the
clearing up of unprofitable lines of
business in 2004 and sold its
foreign countries business to a
large extent. The group has inve-
sted 100 Mio. CHF every year
since 2003 on restructuring mea-
sures. These measures reduced
the groups sales volume (-24.8%
up to 2003). The sales reduction
amounted to about 400 Mio. CHF
and the business result decrea-
sed to 1182.8 Mio. CHF in 2004
(-24.8% compared to 2003). As a
result, a profit increase is expec-
ted for the current financial year
2005 which is not affected by
restructuring costs any more.
The comparable retail business
sales volume in Switzerland was
achieved with an almost unchan-
ged selling space. The Globus
department stores made a profit
of 671.5 Mio. CHF in 2004 (-0.2%
compared to 2003). HERREN
GLOBUS surpassed the previous
year by 4.8% with 62 Mio. CHF.
Oviesse achieved an increase of
6.5% in 2004. The global sales
increase of the Globus group at
retail level in 2004 was 0.6% com-
pared to 2003.
The GLOBUS GROUP belongs to
the MIGROS AG. 2004 was a
milestone regarding profits for
Migros: After a loss of 59 million
in 2003, the 2004 profit skyrocke-
ted to 13 million . This may be
related to disinvesting from
foreign markets (turnover redu-
ced by 24.8%). The Migros Group,
which is still operated as a coope-
rative, is the Swiss market leader
in retailing but not in the clothing
market.
176
Migros puts high efforts in sustai-
nability, fair trade and social
responsibility of the company
towards its own workers, its sup-
pliers and society in general
(Clean Clothes Campaign). The
year 2004 brought one of the
best results in company history.
Earnings increased by 47% to
351.2 Million , the turnover rate in
2005 is expected to go up by 2%.
Migros has its own sourcing net-
work for clothing all over the
world, but also buys from
European based importers and
wholesalers.
The textile chain OVIESSE missed
the required two-digit growth.
Despite great efforts, the Italian
textile concept Oviesse has not
reached a breakthrough in the
Swiss clothing market. This is why
the Globus Group led the brand
Oviesse as a franchise from
Gruppo Coin. Gruppo Coin (Italy)
took most decisions in terms of
assortment, price and quality for
the Swiss market. In the end, the
activities led to completely insuffi-
cient results. Consequently, the
partners ended their cooperation
in December 2004. The 30
Oviesse outlets were closed and
the shops/locations were taken
over by C&A Switzerland.
C&A SWITZERLAND also took on
a large part of Oviesse staff by
March 2005. The parties agreed
not to disclose the takeover price
of the network. C&A is planning to
re-open 24 of the stores as C&A
stores. This will boost market pre-
sence from 43 to about 70 stores
in Switzerland. Management
expects turnover to exceed 400
Million CHF this year and 500
Million CHF after successful inte-
gration of the former Oviesse
shops. The market strategy aims
at being a clothing house for the
whole family with good prices and
quality. It sells all kind of mid-priced
clothing and aims to extend mar-
ket share. However, C&A does
not buy separately through their
branch in Switzerland, but from
Dsseldorf/Germany and the C&A
purchasing centre EBSCO in
Brussels.
The PKZ GROUP with 700
employees in total owns several
clothing chains. PKZ with 33 sto-
res concentrates on menswear
with quality clothing of different
labels. Burger (1 Shop) is a mens-
wear shop. FELDPAUSCH (10 sto-
res) focuses on womenswear,
BLUEDOG (11 outlets) is a young
fashion casual wear chain. PKZ
Group puts a lot of effort into cus-
tomer relations with 600 000 cus-
tomers in the database, reaching
into 20% of all Swiss households.
In 2004, PKZ sold goods to more
than one million customers. This
business is looking back on a
decade of continuous growth in
turnover with a slight decrease in
the period 2002-2004.
The PKZ GROUP suffered from
the frosty consumption climate in
2002-2003. The group in 2004
reached an increase in turnover
after a sales decrease of 9% in
2003.
177
All subgroups moved in he same
direction. However, the new up-
swing of the group is mainly due
to increased advertising and
efforts on the quality of the pro-
ducts. The new Feldbausch-
Concept combines basically two
fashion directions: classically and
stylishly oriented female custo-
mers and modern and elegant
fashion for ladies. Burger reduced
their number of brands from 40 to
20 and focussed further on the
younger segment. The Group tur-
nover in 2004 reached 139 million
. Cash flow exceeds 10% of tur-
nover. The group will use these
financial means for further growth
in the years to come. Since 2005
Feldbausch is present also in East
Switzerland (St. Gallen with 500
sq. m).
The COOP GROUP runs quite
varied store formats ranging from
food to non-food and services.
Coop offers a unique mix from
branded articles to own brands
and special brands (like Coop
Naturaplan). Numerous products
of the Coop are from production
plants of their own or from sup-
pliers with whom they work very
closely. The sales volume in the
retail business reached 13.98 Bn.
CHF in 2004 (2.9% in 2003). In a
restructuring process, the number
of stores of the whole group has
been reduced and the 1 433 most
profitable ones have been kept
(5.3% compared to 2003) with
over 47 000 employees. The mar-
ket share of the Coop Group is
15.7% (0.7% compared to 2003).
The non-food division holds a
market share of 10% (0.8% com-
pared to 2003) with a sales volu-
me of 42 762 million CHF. The tex-
tile division represents 4% of the
non-food division and is calcula-
ted together with multimedia.
With its 72 branch offices in 2004,
MANOR is the largest department
store chain in Switzerland. It
belongs in large part to the two
Lausanne based families, Maus
and Nordmann. Other divisions of
the Manor Group are 'Fly' (furnitu-
re and home accessories),
'Athleticum' (sports) and 'Jumbo'
(Hobby articles). The Manor
Group is the third largest Swiss
retailer. In 2004, turnover reached
2.79 billion CHF. Further company
data have not been published.
The business employs 12 000
people altogether. About 2000
persons are working in the textile
division, which represents about
one third of the whole Manor busi-
ness.
178
5.4.3 Distribution channels
5.4.3.1 Retailers
The distribution channels are
grouped according to their basic
structure into different kinds of
retail businesses. Figure 5-6 gives
a first survey on the Swiss clothing
retail market (market shares in
2004). More details about the
development of the market share
of the retail outlets can be taken
from Table 5-8.

Figure 5-6: Clothing retail channels by market share, 2004

Channels by market share: Independent retailers and Chain stores

summarised in Textile specialist stores with 55.2% of total marke
Other Distributors
Food Distributors 11% Chain stores
10% 31%

Mail order
11%

Department stores Independent

13% retailers / Boutiques
24%

Source: IHA Institut fr Marktanalysen, 2004

The data indicate that the textile

specialist stores play a dominant
role among the clothing distribu-
tors in Switzerland (as in 2002). In
this group of textile specialists,
the most popular shops are clot-
hing multiples with a wide range of
clothing (with a market share of
30.9% in 2004). These specialists
show constant growth over the
last few years. They include chain
stores with 30.9% (trend: slight
growth in market share) and the
independent retailers / boutiques
and other specialised clothing
retailers (including fur and leather-
wear outlets) with a market share
of 24.3% (trend: slight fall in mar-
ket shares).

179
The following Swiss retailers can
be assigned to the specific distri-
bution channels:
- Clothing chains with own labels:
Charles Vgele, WE-mode,
Benetton, Hennes + Mauritz,
C & A, Kookai, Esprit, Tally Weijl,
Yendi, Chicore, Pimkie, Orsay,
Blackout, Levis Store, Mango,
Zara
- Clothing retailers with a brand
concept: PKZ/BlueDog/Burger,
Schild, Beldona, Fein-Kaller,
Feldpausch, Grieder, Herren
Globus, Spengler (without mail
order), Jeans-Stores
- Independent retailers: Wool
market/wool stores, textile one-
line stores, boutiques, jeans
boutiques, tailors workshops,
stocking stores, leather and fur
business
- Department stores: Globus,
Manor, Coop, Jelmoli (without
mail order), Migros and other
department stores
- Mail order companies: Cornelia,
Heine-Versand, Goldner Schnitt,
Charles Veillon, Ackermann,
Spengler, Jelmoli, Vgele,
Quelle, Total Beyeler/Damart
Versand, Vedia, Bader and
other mail order houses
- Food distributors: Migros, Coop
and other food distributors
- Cash & Carry: Denner, Waro,
Jumbo/Carrefour, Primo/Visavis,
Volg
Other Distributors (sport shops,
sport specialist stores, various dis-
tributors) hold a market share of
11.3%.
Low-price shops are not very
popular in Switzerland as the con-
sumers look for more than just low
prices. Therefore, they have lost
market share in recent years and
the prospects are not very positi-
ve either. For mid-price apparel,
department stores and mail order
companies are still appropriate
and well accepted distribution
channels.

Table 5-8: Clothing retail channels by market shares, 2000 - 2004

in % of Totales 2001 2002 2003 2004

Textile specialised stores 55,1 56,3 54,7 55,2

- Chain Stores (branches) 28,8 30,2 30,3 30,9

- Independent Retailers 26,3 26,1 24,4 24,3

Department stores 15,4 14,5 13,9 13,1

Mail Order 10,9 10,7 11,1 10,6

Food Distributor 10,1 9,6 9,9 9,8

Various Distributors 8,5 8,9 10,4 11,3

Total Market in bn. CHF 6,24 6,29 5,80 5,75

Source: IHA-GfK, 2004

180
5.4.3.1.1 Textile specialised retailers
(including clothing chains)
These specialized clothing shops
are still the main type of retail outlet
for garments in Switzerland, name-
ly chain stores, boutiques and other
specialised clothing retailers. The
market share of these shops has
remained stable over the past
years at around 55%. Chain Stores
have won more popularity and
represent the most successful retail
channel with a market share of
30.9% in 2004 (28.0% in 2000).
This corresponds to an increase of
7.3% since 2000. The independent
retailers, boutiques and other spe-
cialised clothing retailers (including
leather and fur stores) are losing
their popularity, with a market share
of 24.3% in 2004 representing a
loss of about 8.2% compared to
2000.
The major distribution channel
among the textile specialist retailers
in Switzerland are the clothing sto-
res with several outlets. Apart from
the national clothing multiples
Vgele, Schild, PKZ and Spengler,
there are many foreign retailers
present in the Swiss clothing mar-
ket.
Market share: 55.2%
Trend: stabilization at 55% (1996 =
56.3%)
Several foreign chains that are
every active in Switzerland must be
mentioned, such as the Swedish
HENNES & MAURITZ GROUP, the
Spanish retailer ZARA, the German
ESPRIT (67 shops), the Italian
fashion company MAX MARA
(aiming at international female
shoppers) and the Danish VERO
MODA (with 23 shops) as well as
the Spanish MANGO (12 stores).
MANGO is a Spanish franchise
company owning 12 shops in
Switzerland, 800 all over the world
including online-retailing (Mango
MNG Group). Global turnover
increased by 5.3% in 2004 and 87
stores were opened in 2004. A
new shop in Winterthur opened in
March 2005 (first shop in
Switzerland in 1999). A new and
improved logistics system ensures
direct delivering from the factories
in Spain to the local retailers all over
the world. Mango is currently devi-
sing a corporate sustainability pro-
gramme.
ZARA is one of eight fashion brands
retailers belonging to the Inditex
group which lays stress on high
vertical integration as a strategic
factor in competition. Zara first ope-
ned in 1975 in Spain and is now pre-
sent in over 50 countries with 723
stores. All of them have been desi-
gned to create a special atmo-
sphere that will allow the client to
feel the pleasure of buying fashion.
200 designers create new fashion
that hits the market twice a week.
Company turnover was 3.82 bn.
(2004) and 3.22 bn. (2003). Zara
has a share within the Inditex Group
of 67.4%. Sales in franchise stores
stand at 10% in 2004, the same as
in 2003. In Switzerland, Zara has
had 7 stores since 2002. IT conti-
nues expanding around the world.
181
Another new clothing retailer is
VERO MODA with 23 shops. Vero
Moda Switzerland belongs to
Bestseller Wholesale. Bestseller is
a family-owned clothing company
founded in Denmark in 1975. Today,
approximately 13,000 people work
at Bestseller in more than 30 coun-
tries designing, developing, selling
and marketing Bestsellers brands.
Bestseller offers a permanent sup-
ply of young fashion in 900 stores
worldwide at comparatively low pri-
ces. Today Bestseller comprises 11
brands including Vero Moda. The
Group turnover in 2004 was 928
million .
The Swiss chain TALLY WEIJL is
another international textile suc-
cess story. The company is cur-
rently installing a new logistics
system because of fast growth; it
currently has 210 stores. More than
100 stores operate under own
management, the rest on a fran-
chise basis. The market target is
the woman who likes to be sexy.
Despite doubling sales volume wit-
hin the last 5 years, TW wants to
remain a niche supplier.
New market players have entered
the Swiss clothing market in
2004/2005, for instance BELDO-
NA. Beldona belongs to WE
International BV (Netherlands) with
233 stores worldwide. TOMMY
HILFIGER opened a first Hilfiger
Denim Store in Zurich. INTER-
SPORTS opened a first outlet in
Switzerland in October 2005.
5.4.3.1.2 Department-stores
Department stores play the second
most important role among the dis-
tribution channels, with a market
share of 13.1% in 2004. Their mar-
ket share has declined since 1999
(16.3%), and sales values in 2004
were equal to those of 1996.
Market share: 13.1%
Trend: obviously declining
One of the major department sto-
res in Switzerland is GLOBUS AG, a
department store with branches in
all major Swiss cities, which sells
fashion for men, women and chil-
dren in the mid and upper price
range, as well as fashion accesso-
ries, general consumer products
and food.
Another major Swiss player is the
MANOR AG, a department store
with branches in the whole of
Switzerland, operating clothing
departments for men, women and
children in the lower to mid price
category, including fashion acces-
sories and general consumer pro-
ducts.
The LOEB HOLDING (a traditional
family company in Bern) is a depart-
ment store with nine outlets. Loeb
owns several clothing and non-
clothing companies and has a total
turnover of 213 million CHF (2004).
The nine Loeb department stores
only represent one part of the Loeb
Holding. Loeb Holding also owns
Wartmann, a separate clothing
multiple.
182
Loeb has placed itself in the mar-
ket as a department store with a
strategy to be a regional niche
player not competing directly with
big houses like Coop or Manor.
JELMOLI AG is a department
store with significant apparel sales
for men, women and children fea-
turing international brands con-
centrated on the mid to upper
price range. With its two-line busi-
ness strategy - retail business
and retail real estate business -
Jelmoli has managed to change
the original department store into
a successful, growing and profita-
ble specialties retail business unit.
Due to use of synergies at retail
level, high profitability has been
achieved. Group profit in 2004
was 88.7 million CHF (12.7% com-
pared to 2003). The 2004 profit in
retail sales was 57.8 million CHF
(+96% compared to 2003) with
2,548 employees and 183 stores
(+1.1% compared to 2003). The
positive trend has continued in the
first half of 2005 (6 months),
where an increase of 3.5% has
been achieved.
The overall good results of the
Jelmoli Group can mainly be tra-
ced back to the success in the
retail business, namely specialised
stores and outlets (restaurants
and others), sales activities of the
Fust group (multimedia, kit-
chen/household, electrical goods)
as well as some effective custo-
mer relationship activities like
Bonus Cards.
5.4.3.1.3 Mail-order houses
The mail-order business is the
third most important retail channel
for clothing in Switzerland. The
market share of mail-order hou-
ses in Switzerland showed an
increase of about 2.8% in 2004
compared to 2000. The average
share since 1996 lies quite con-
stantly at around 10.8%.
Market share: 10.6%
Trend: stable
The market leader in mail-order,
CHARLES VEILLON SA, uses the
most modern logistics technology
and a close cooperation with the
Swiss mail. MONA VERSAND
GMBH & CO. is another mail-
order company, targeted at the
over 60 age group, 90%
womenswear, 10% menswear.
The French mail-order house LA
REDOUTE offers clothing with a
French touch and is specialised
in clothing. ACKERMANN is a
company proud of its individual
service and has one of the most
modern distribution centres in
Europe. In Switzerland,
Ackermann communicates with
its customers in the four official
languages.
There are some department sto-
res which run separate mail-order
companies. For example, JELMO-
LI AG, a department store, also
offers sales through a mail order
catalogue. CHARLES VOEGELE
AG stopped its mail-order activi-
ties in 1995.
183
SPENGLER AG, a clothing chain
with own apparel stores also runs
an own mail order house; it offers
clothing for men, women and chil-
dren in a mid price range.
5.4.3.1.4 Grocery super- and hypermarkets
The fourth most important retail
channel for clothing after mail-
order houses are super- and
hypermarkets. The market share
in 2004 was 9.8%. In 1996, super-
and hypermarkets were still posi-
tioned above the mail-order hou-
ses with 11.3% (mail-order houses
10.9%), this corresponds to a loss
of 15% by 2004. The trend is
decreasing further.
Market share: 9.8%
Trend: decreasing
MIGROS AND COOP with their
stores are the biggest retailers in
Switzerland, with activities in
super- and hypermarkets. The
company DENNER AG owns the
hypermarket WARO, which sells
clothing to a small extent. Jumbo
is said to be the cheapest super-
market in the Swiss market, with
shops that are located outside the
towns. Denner is the leading Swiss
food discounter with over 320
branches in all of Switzerland and
employs approx. 2 000 employe-
es. Additionally, Denner has more
than 280 Denner saTel.lite
dealers, which cooperate very
closely. The Denner range covers
a good choice of articles for daily
use. 75% of the range offered are
branded articles, the rest are own
brands. Weekly new, select speci-
al offers from the non-food area
round off the assortment.
Denner has a consistent discount
policy: Lowest prices combined
with highest quality with a limited
number of articles. 2004 was the
most successful year in history for
Denner. Sales volume increased
by 11.8% to CHF 1,843 billion in
comparison to the previous year.
This peak turnover is even 11% hig-
her than the previous record year
1991.
This overall sales increase is direct-
ly connected to increased market
share. The renewal of all outlets
had been completed by the end of
2004. In 2005 there was further
growth in sales volume as 20 addi-
tional stores were opened.
5.4.3.1.5 Various Distributors
This category primarily includes
sport shops, sport specialist sto-
res, street markets and ex factory
sales (directly from the fashion
manufacturer through factory
outlet centres). Other forms of
distribution are consumer fairs
and sales through the Internet.
For the manufacturer from abro-
ad, this target group is very difficult
to approach as they normally do
not import on their own. They buy
mainly from importers/wholesalers
according to their own specificati-
ons. The role of this other form of
distribution has increased over
the past few years.
184
In 2000, it had a market share of
8.5%, the market share in 2004
increased to 11.3%. Although
more detailed figures are not avai-
lable, it can be strongly assumed
that the increase in this distribution
channel is mainly due to higher
internet sales.
Market share: 11.3%
Trend: Increasing (2000 to 2004 =
32.9%).
5.4.3.2 Sales Intermediaries
5.4.3.2.1 Clothing Manufacturers
The clothing manufacturers in
Switzerland face a difficult market
situation. The total turnover of the
Swiss clothing industry amounted
to 1.5 bn. CHF in 2004 (1.7 bn.
CHF in 2000). The added value of
Swiss companies decreased in
the last few years and more and
more manufacturers use OPT
business.
Swiss clothing manufacturers
know the needs of the Swiss cus-
tomer, but their domestic produc-
tion costs are too high to compe-
te with imports in the lower or mid
price range. Thus, most clothing
manufacturers look for production
possibilities abroad. Since 2000,
OPT and outsourcing has increa-
sed. Despite all these negative
economic effects, Swiss clothing
production increased by 0.5%
while simultaneously employment
fell by 13.6%. Exportas grew by
4.1% due to the increased high
quality demand for outer- and
underwear from Switzerland.
5.4.3.2.2 Central buying associations
One major Swiss central buying
association is the ez Fashion
Center. It has dozens of mem-
bers, mainly independent retailers.
The buying association operates
on the basis of long-term partner-
ships, often with very close links to
local clothing producers. The ez
Fashion Center now co-operates
with the German buying associati-
on Stegro (Stuttgart) and with
the Austrian Fashion Association.
ez Fashion Center is trying to gain
more members and to find suitab-
le contracts with efficient clothing
suppliers.
The members of the buying-asso-
ciation Inter-Sport originate from
the active sportswear and sports
articles sector, the organisation is
closely linked to the German
based Inter-Sport in Heidelberg.
Some of the Swiss clothing retai-
lers are even members in the lar-
ger German buying associations
such as Katag in Bielefeld.
5.4.3.2.3 Sales Agents
Sales agents for the Swiss market
are normally located in the coun-
try where the clothing is imported
from, e.g. in the major Asian cities
like Hong Kong, Singapore,
Shanghai, New Delhi or Istanbul.
Desk research and interviews with
Swiss clothing manufacturers
revealed that only very few Swiss
buyers rely on sales agents to
take over a buying function for
them.
185
The overwhelming part of the buy-
ing process is handled by the
importing retailer directly. Clothing
manufacturers from abroad must
contact these sourcing offices in
their respective country or contact
the buyer at the retailers or manu-
facturers headquarter directly in
Switzerland.
5.4.3.2.4 Importers/wholesalers
Analysis has revealed that the large
majority of Swiss importers are dis-
tributors for foreign European
brands selling into Switzerland.
Often, such importers have their
own shop or boutique with high-pri-
ced clothing and fear low quality
imports. Only a few show some
interest in imports from outside
Europe. The situation remains
unchanged, that most of the small
retailers/importers are not in the
position to order sufficient quanti-
ties, thus orders e.g. from Asia or
South America will not be worthwhi-
le for them. Even middle-sized retai-
lers are sometimes reluctant to do
so, but regret at the same time not
having the possibility to source from
developing and emerging countries.
Thus, with the general increase of
clothing imports into Switzerland,
the importance of Swiss wholesa-
lers and importers has increased
and the need for imported goods
also for smaller retailers due to the
price pressure in the market has
generally increased since the last
study in 2002. The situation is un-
changed, that a considerable share
of clothing imports into Switzerland
is handled by German importers, as
they buy in overseas markets any-
way to a very large extent and can
offer the service to neighbouring
Swiss retailers as well.
5.5 SWISS FASHION TRADE
FAIRS
Reliable trade sources have repea-
tedly mentioned that the participati-
on in European Fashion Trade Fairs
by manufacturers from emerging or
developing countries, frequently
visited by Swiss buyers, are the best
and most efficient way to establish
initial contacts with Swiss wholesa-
lers and distributors.
The most important Swiss trade
event for mens, womens and chil-
drens wear at the TMC Fashion
Centre in Zrich (TMC), takes place
twice per year and has a clear natio-
nal character. Participation in these
so called selling days (to the retai-
lers) are restricted to agents running
a showroom in the TMC. The
Textile & Mode Center was set up
as a wholesale centre for textiles
and clothing in August 1978.
Participation of foreign manufactu-
rers in these national market
events at TMC is not allowed and
also does not make sense (inappro-
priate target group).
Swiss buyers, whether they are in
charge of department stores, spe-
cialized retailers, importers, mail-
order houses or chains tend to visit
trade fairs mostly for information
purposes, but also to find new con-
tacts. Clothing fairs in Germany are
quite popular among Swiss retai-
lers. The following trade fairs in
neighbouring countries are fre-
quently visited by Swiss buyers:
186
Trade Fair Products Location Dates

Barcelona Fashion Week Menswear, womenswear Barcelona/Spain February and

and designer collections September

Bread and Butter Denim, sport and street Berlin (Germany) January and
wear, sportswear and Barcelona July

CPD Woman Man
including Global Fashion
(for clothing suppliers from
emerging and developing
countries with non-branded
products)
All kind of womens and Dsseldorf/Germany February and
menswear including ready- August
to-wear, knitwear, underwear
and swimwear, hats & caps
and accessories, bridal &
evening wear, young fashion,
casual wear

Fashion Look! Menswear, womenswear, Leipzig/Germany February and

Leipzig Messe childrens wear, fur, leather, (will move to August
sports wear Dsseldorf from
August 2006
onwards)

Fimi Valencia Childrens fashion and Valencia/Spain January

accessories

ISPO Active sportswear, fashion Munich/Germany January and

sport, sporting goods July

Kind und Jugend Babies and childrenswear, Cologne/Germany February and

maternity wear, babies July
accessories and clothing for
teens

MODAMILANO - Exhibition of new styles, new Milan/Italy February and

International Apparel Show trends, boutique fashions October

PITTI BIMBO High class childrenswear Florence/Italy January and

mainly European brands June

PITII Imagine UOMO Menswear designer and Florence/Italy January and

avant-garde and European June
brands

PRT A PORTER Ladies ready-to-wear gar- Paris/France February and

ments, exhibits of winter col- September
lection at the spring show
summer collection

SIMM Women's fashion, Ready-to- Madrid/Spain February and

wear, Jeans, streetwear, August
sportswear

187
5.6 LIST OF MAJOR BUYERS OF LADIES, MENS AND
CHILDRENS WEAR IN SWITZERLAND

Clothing multiples

Bernie's AG Product range: high fashion & casual

Postfach 3925 Price segment: high price level
CH - 8021 Zrich Number of outlets: 5
Tel.: +41 43 244 75 75
Fax: +41 43 244 75 76
www.bernies.ch

Blue Dog Product range: Jeans, sports- and

(company: PKZ Feldbausch) casual wear
Bahnhofstrasse 46 Price segment: mid and high price
CH - 8010 Zrich level
Tel.: +41 44 736 33 33 Number of outlets: 12
Fax: +41 44 736 33 00 Note: brand and fashion oriented
www.bluedog.ch exclusive retailer

Bon Genie Product range: all kinds of clothing

Brunschwig & Cie SA Price segment: mid to high price
34, rue du March level
CH - 1204 Genve Number of outlets: Bonnard u. Cie 3
Tel.: +41 22 818 11 11 shops, Bon Genie 7, Grieder 7, 10
Fax: +41 22 818 11 99 boutiques under Bon Genie
www.bongenie-grieder.ch

Charles Vgele AG Product range: all kind of clothing

Gwattstrasse 15 Price segment: low price level
CH - 8808 Pfffikon Number of outlets: 157
Tel.: +41 55 416 71 11
Fax: +41 55 410 37 43
www.voegele.ch

wear
Fein-Kaller & Co. AG Product range: menswear and
Bachmattstr. 53 womenswear
CH - 8048 Zrich Price segment: high price level
Tel.: +41 44 434 83 83 Number of outlets: 6
Fax: +41 44 434 83 43
www.fein-kaller.ch

188
Herren Globus Zentrale Product range: Department store for
Industriestrae 171 men
CH - 8957 Spreitenbach Price segment: mid-priced items
Tel.: +41 58 455 30 30 Number of outlets: 22
Fax: +41 58 455 31 88
www.herrenglobus.ch

Jeans & Co. AG Product range: casual wear

Haldenstr. 1 Price segment: mid price level
CH - 6340 Baar Number of outlets: 10
Tel.: +41 41 768 60 50
Fax: +41 41 768 60 59
www.jeans-co.ch

Modehaus MODEVA AG Product range: womenswear

Muttenzerstr. 109 Price segment: high price level
CH - 4133 Pratteln Number of outlets: 26
Tel.: +41 61 821 91 91
Fax: +41 61 821 92 20
www.modeva.ch

Pasito-Fricker AG Product range: womenswear, mens-

Pfadackerstr. 7 wear, shoes
CH - 8957 Spreitenbach Price segment: mid and high price
Tel.: +41 56 418 17 77 level
www.pasito.ch Number of outlets: 18

PKZ Burger-Kehl & Co. Product range: all kind of clothing

Bahnhofstrasse 46 incl. jeans wear
CH - 8010 Zrich Price segment: mid and high price
Tel.: +41 44 736 33 33 level
Fax: +41 44 736 33 00 Number of outlets: 34
www.pkz.ch

189
Schild AG Product range: clothing for men and
Zentralverwaltung women
CH - 6002 Luzern Price segment: mid price level
Tel.: +41 41 429 55 55 Number of outlets: 41
Fax: +41 41 429 57 57
www.schild.ch

Ed. Sturzenegger AG Product range: womenswear, texti-

Werkstrasse 5 les, underwear
CH - 9000 St. Gallen Price segment: high price level
Tel.: +41 71 243 90 30 Number of outlets: 10
Fax: +41 71 243 90 41
www.sturzenegger.ch

Tally Weijl Product range: womenswear

Areal Bleiche Price segment: high price level
CH - 4800 Zofingen Number of outlets: 210 (total world-
Tel.: +41 62 745 10 00 wide)
Fax: +41 62 745 10 30

Wartmann AG Product range: womenswear

Marktgasse 45 / Postfach Price segment: mid price level
CH - 3001 Bern Number of outlets: 26 (stores, shops,
Tel.: +41 31 320 18 18 boutiques also as a part in other
Fax: +41 31 312 16 55 businesses)
www.mode-wartmann.ch

Department stores

Globus AG Headquarter Product range: all kind of clothing

Eichstrasse 27 Price segment: low and mid price
CH - 8045 Zrich level
Tel.: +41 44 455 21 11 Number of stores: 12
Fax: +41 44 463 35 02
www.globus.ch

190
Jelmoli AG Product range: all kind of clothing
Seidengasse 1 and textile
CH - 8001 Zrich Price segment: mid and high price
Tel.: +41 44 220 44 11 level
Fax: +41 44 220 40 00 Number of outlets: 1 large outlet in
www.jelmoli.ch Zrich - also includes mail order
catalogue

LOEB AG Product range: all kind of products

Blliz 39 Price segment: mid price level
CH - 3600 Thun Number of outlets: 10
Tel.: +41 33 227 51 51
Fax: +41 33 227 51 52
www.loeb.ch

Manor AG Product range: all kind of clothing

Rebgasse 34 and textile
CH - 4058 Basel Price segment: mid price level
Tel.: +41 61 686 11 11 Number of outlets: 80 stores
Fax: +41 61 681 11 92
www.manor.ch

Schaufelberger AG Product range: mens and womens-

Blliz 26 wear, textiles
CH - 3600 Thun Price segment: mid level
Tel.: +41 33 225 37 37
Fax: +41 33 225 37 38
www.schaufelberger-thun.ch

Mail Order
Ackermann Versandhaus AG Product range: professional wear,
Postfach ladies', men's, childrenswear
CH - 6160 Entlebuch Price segment: mid price level
Tel.: +41 41 482 81 11 Note: no outlets, only mail order
Fax: +41 41 482 84 05
www.ackermann.ch

191
BONA PARTE MODE AG Product range: Mens and womens-
Frstenlandstrasse 35 wear, boys and girls
CH - 9001 St. Gallen
Tel.: +41 848 44 08 81
Fax: +41 848 44 08 85
www.bonaparte.ch

Happy Size-Company Product Range: mens and womens-

Versandhandels AG wear
Postfach Companies: Happy Size and Men+
CH - 9025 St. Gallen
Tel.: +41 848 55 66 83
Fax: +41 848 55 66 84
www.happy-size.ch

Heinrich Heine Product range: ladies, mens, chil-

Handelsgesellschaft AG drenswear
Riedwiesenstr. 12 Price segment: mid and high
CH - 8305 Dietlikon
Tel.: +41 44 805 15 15
Fax: +41 44 834 04 40
www.neu.heine.ch

Jelmoli Versand AG Product range: all kinds of clothing

Postfach and textile
CH - 8088 Zrich Price segment: mid and high
Tel.: +41 848 840 300
Fax: +41 848 840 305
www.jelmoli.ch

La Redoute CH SA Product range: ladies, mens, chil-

Rue de la Gare 13 drenswear
CH - 1820 Montreux 1 VD Price segment: mid and high
Tel.: +41 21 966 50 00
Fax: +41 21 966 50 01
www.laredoute.ch

192
menswear24.ch Product range: Menswear
Momasi SA
Avenue de la Gare 42
CH - 2800 Delmont
Tel.: +41 79 828 75 77
www.menswear24.ch

Mona Versand GmbH & Co. Product range: ladies, menswear

Wehrstr. 12
CH - 9202 Gossau
Tel.: +41 71 314 83 00
Fax: +41 71 314 83 09
www.mona.ch

Rotex Versand Product range: professional wear,

Industrie Wet 4042 leisure wear
CH - 4614 Hgendorf
Tel.: +41 62 216 43 43
Fax: +41 62 216 43 45
www.rotex.ch

Spengler Versand AG Product range: all kind of clothing

Frstenlandstrasse 35 and textile
CH - 9001 St. Gallen Price segment: mid price level
Tel.: +41 71 274 61 61
Fax: +41 71 274 61 62
www.spengler.ch

Veillon SA Product range: ladies, mens, chil-

Route de Buyre 2 drenswear
CH - 1017 Lausanne
Tel.: +41 21 706 92 17
Fax: +41 21 706 98 14
www.veillon.ch

193
Vgele AG Product range: all kind of clothing
Gwattstrasse 15 Price segment: low price level
CH - 8808 Pfffikon
Tel.: +41 55 416 71 11
Fax: +41 55 410 37 43
www.voegele.ch

Walbusch Product range: Mens and womens-

Bahnhofstrasse 46 wear
CH - 9443 Widnau SG Price segment: high level
Tel.: +41 71 727 99 88
Fax: +41 71 722 90 11
www.walbusch.ch

Wullehus-Mode Product range: all kind of clothing

Versandhaus AG
Emmentalstr. 4
CH - 3510 Konolfingen
Tel.: +41 31 791 01 47
Fax: +41 31 791 10 19
www.wullehus.ch
for age group 40+ as target group
Price segment: mid price level
Number of outlets: 4 shops + mail
order

Grocery Super- and Hypermarkets

COOP Schweiz Product range: all kind of products

Thiersteiner Allee 12
CH - 4002 Basel
Tel.: +41-61 336 66 66
Fax: +41-61 336 60 40
www.coop.ch
Price segment: low and mid price
level
Number of outlets: 11 department
stores, more than 1700 shops

Denner AG Zentrale Proprietor of Waro and Franz Carl

Grubenstrasse 10 Weber (FCW)
CH - 8045 Zrich Number of outlets: 613 stores
Tel.: +41 44 455 11 11
Fax: +41 44 456 29 29 (buying
department)
www.denner.ch

194
Jumbo Markt AG
Industriestrasse 33
CH - 8305 Dietlikon
Tel.: +41 44 805 54 54
Fax: +41 44 805 54 50
www.jumbo.ch
Migros-Genossenschaft-
Bund
Limmatstrasse 152
CH - 8005 Zrich
Tel.: +41 44 277 21 11
Fax: +41 44 277 25 25
www.migros.ch
Swiss Clothing Manufacturers
Algo S.A.
Badenerstrasse 274
CH - 8004 Zrich
Tel.: +41 44 240 41 66
Fax: +41 44 240 41 67
www.algosa.ch
(high priced womenswear)
AKRIS LINEA B S.A.
Via Francesco Borromini 12
CH - 6850 Mendrisio
Tel.: +41 91 641 39 00
Fax: +41 91 641 39 01
www.akris.ch
(very high priced womenswear)
Product range: all kinds of clothing
Price segment: very low price level
Number of outlets: 39
Product range: all kinds of clothing
Price segment: low price range with
own brands
Number of fashion outlets: 134
10 Migros Co-operative societies
Ajotex SA
Route de Coeuve 37-41
CH - 2900 Porrentruy
Tel.: +41 32 465 89 89
Fax: +41 32 465 89 85
www.jic.ch/ajotex
(men / women / child wear)
alba Albin Breitenmoser AG
Zielstrasse 38
CH - 9050 Appenzell
Tel.: +41 71 788 91 11
Fax: +41 71 787 46 58
www.alba-gruppe.ch
(Professional clothes)
195
Alumo Textil AG
Zielstrasse 38
CH - 9050 Appenzell
Tel.: +41 71 788 91 55
Fax: +41 71 788 91 54
www.alumo.ch
(produces shirts)
Angloz Michel SA
Route de lIndustrie 3
CH - 1680 Romont
Tel.: +41 26 651 92 80
Fax: +41 26 651 92 89
www.michelangeloz.ch
(mid-priced menswear and
womenswear)
Blumer F. & Cie. AG
Industrie Mhle 19
CH - 8762 Schwanden GL
Tel.: +41 55 644 11 17
Fax: +41 55 644 39 49
www.blumer-f.ch
(mens, womens, childrenswear)
Brlisauer SA
Via motta 45
CH - 6850 Mendrisio
Tel.: +49 91 640 64 40
Fax: +49 91 640 64 44
www.bruli.com
(menswear)
Amacher Rosmarie
Dufourstrasse 167
CH - 8008 Zrich
Tel.: +41 44 380 50 60
Fax: +41 44 422 88 70
www.couture-amacher.ch
Beca Ferretti SA
Via della Posta-Zona 2 CP 257
CH - 6934 Bioggio
Tel.: +41 91 605 57 76
Fax: +49 91 604 67 87
(menswear, professional clothes)
Boller, Winkler AG
(no street name)
CH - 8488 Turbenthal
Tel.: +41 52 396 22 22
Fax: +41 52 396 22 00
www.bonjour.ch
(clothing and other textiles)
196
Braunschweig P. & R. AG
Badener Strasse 120
CH - 8026 Zrich
Tel.: +41 44 241 97 30
Fax: +41 44 242 94 28
www.pierrette.com
(mid- and high-priced coats and
jackets for women)
Camiro sagl
Strada Cantonale
CH - 6863 Besazio
Tel.: +49 91 646 61 18
Fax: +49 91 646 69 95
(menswear)
Conceprio SA
Corzoneso Piano
CH - 6715 Dongio
Tel.: +41 91 871 12 43
Fax: +41 91 871 25 31
(mens and womenswear)
Dresdensia SA
Via Fola 13
CH - 6963 Pregassona
Tel.: +41 91 971 60 63
Fax: +41 91 971 11 52
(mens and childrenswear)
Calida AG Bodywear
Industrie Mnigen,
CH - 6210 Sursee
Tel.: +41 41 925 45 25
Fax: +41 41 925 42 84
www.calida.com
(mens, womens and childrens
under- and nightwear)
Cavalco Confezioni SA
Via Industria 7
CH - 6826 Riva San Vitale
Tel.: +41 91 648 22 63
Fax: +41 91 648 23 64
www.cavalco.ch
(menswear)
Consitex SA
Via Ligornetto 13
CH - 6855 Stabio
Tel.: + 41 91 640 76 00
Fax:+ 41 91 640 76 19
www.zegna.com
(high priced menswear)
Drsteler J. & Co. AG
Zrcherstrasse 47
CH - 8620 Wetzikon
Tel.: +41 44 933 60 70
Fax: +41 44 933 60 71
www.faerben.ch
(mens, womens and childrens-
wear)
197
Fabric Frontline Zurich AG
Ankerstrasse 118
CH - 8026 Zrich
Tel.: +41 44 241 64 55
Fax: +41 44 242 20 02
www.fabricfrontline.ch
(mens and womenswear)
Filtex AG
Teufenerstrasse 1
CH - 9001 St. Gallen
Tel.: +41 71 221 13 13
Fax: +41 71 221 13 14
www.filtex.ch
(womens and childrenswear)
Gessner AG
Florhofstrasse 13
CH - 8820 Wdenswil
Tel.: +41 44 789 86 00
Fax: +41 44 789 86 01
www.gessner.ch
(womenswear)
HANRO AG
Benzburweg 18
CH - 4410 Liestal 18
Tel.: +41 61 926 88 22
Fax: +41 61 926 88 27
www.hanro.ch
(mens and womens under- and
nightwear)
Feldinger Gabriel AG
Lettenweg 40
CH - 4123 Allschwil
Tel.: +41 61 481 05 05
Fax: +41 61 481 05 39
(mid-priced items womenswear)
Ganzoni & Cie AG
Grblistrasse 8
CH - 9014 St. Gallen
Tel.: +41 71 279 33 66
Fax: +41 71 274 29 89
www.sigvaris.com
(mens, womens and childrens-
wear)
Hagmann Hosenmode AG
Industriestrasse 9
CH - 4657 Dulliken
Tel.: +41 62 285 55 55
Fax: +41 62 285 55 69
www.hagman.ch
(menswear, especially trousers)
Herz Heinrich AG Julietta
Via Campagna 21
CH - 6987 Caslano
Tel.: +41 91 606 73 43
Fax: +41 91 606 21 60
www.heinrichherz.ch
(womenswear)
198
Hofmann + Co AG
Krawattenfabrik
Im Eisernen Zeit 51
CH - 8057 Zrich
Tel.: +41 44 362 37 54
Fax: +41 44 362 37 19
www.hofmannties.ch
(mens accessories and ties)
ISA Sallmann AG
Weinfelderstrasse 15
CH - 8580 Amriswil
Tel.: +41 71 414 24 44
Fax: +41 71 414 24 55
www.isabodywear.ch
(mens, womens and childrens-
wear)
Lehsa Strickwarenfabrik
Eichenweg 16
CH - 4900 Langenthal
Tel.: +41 62 922 50 44
Fax: +41 62 923 08 38
www.lehsa.ch
(mens and womens knitwear)
Madie's Fashion S.A.
Via Gaggiolo 5
CH - 6855 Stabio
Tel.: +41 91 647 11 53
Fax: +41 91 647 32 53
(womenswear)
Hugo Boss Industries
Via Passeggiata 7
CH - 6883 Novazzano
Tel.: +41 91 696 17 17
Fax: +41 91 696 17 78
www.hugoboss.com
(menswear)
Kauf AG
Rosenbelstrasse 50
CH - 9642 Ebnat-Kappel
Tel.: +41 71 992 60 60
Fax: +41 71 992 60 65
www.kauf.ch
(shirts for department stores
and mail-order comp.)
leywa GmbH
Fabrikstrasse
CH - 8756 Mitldi
Tel.: +41 55 644 46 46
Fax: +41 55 644 46 47
www.leywa.ch
(mens, womens and childrenswear)
Mammut AG
Industriestrasse Birren
CH - 5703 Seon
Tel.: +41 62 769 81 81
Fax: +41 62 769 81 00
www.mammut.ch
(sportswear, outdoor jackets)
199
Metzler & Co. AG
Hauptstrasse 33
CH - 9436 Balgach
Tel.: +41 71 722 21 43
Fax: +41 71 722 72 29
www.marcthombard.ch
(shirts and blouses, T-shirts &
sweatshirts for indep.)
Noga Mode S.A.
Via Orti 1
CH - 6928 Manno
Tel.: +41 91 605 48 88
Fax: +41 91 605 48 88
www.nogamode.com
(mens and womens wear)
Strellson AG
Sonnenwiesenstrasse 21
CH - 8280 Kreuzlingen
Tel.: +41 71 686 33 33
Fax: +41 71 688 64 94
www.strellson.com
(high priced mens and
womenswear)
TOPA Konfektions AG
Birkenstrasse 109
CH - 9443 Widnau
Tel.: +41 71 720 03 05
Fax: +41 71 720 03 07
www.topa-ag.com
(mens, womens and childrens-
wear, OPT)
Mitloedi Textildruck AG
Fabrikstrasse
CH - 8756 Mitldi
Tel.: +41 55 647 88 33
Fax: +41 55 647 88 13
(womenswear)
Rosmarie Amacher & Co.
Dufourstrasse 167
CH - 8008 Zrich
Tel.: +41 43 456 30 00
Fax: +41 43 456 30 09
www.couture-amacher.ch
(womenswear)
SwissTex Logistics AG
Funkenstrasse 10
CH - 4800 Zofingen
Tel.: +41 62 745 33 33
Fax: +41 62 745 33 00
www.swisstex.net
(menswear and womenswear)
Traxler AG
Unterdorf 7
CH - 8363 Bichelsee
Tel.: +41 71 971 19 43
Fax: +41 71 971 31 29
www.traxler.ch
(knitwear, shirts/blouses, ecolo-
gical clothing men/women)
200
Vollmoeller Textil AG /
Jockey International
Bahnstrasse 21
CH - 8610 Uster
Tel.: +41 44 905 22 22
Fax: +41 44 940 53 33
www.jockey.ch
(mens and womens wear)
Zewi und Bb-Jou AG
Knonauerstr. 58
CH - 6330 Cham
Tel.: +41 41 784 10 00
Fax: +41 41 784 10 01
www.zewiundbebe-jou.ch
(mid- / high-priced coats and jak-
kets for children)

Zimmerli Textil AG
Feldstrasse 25
CH - 4663 Aarburg
Tel.: +41 62 791 41 41
Fax: +41 62 791 38 72
www.zimmerli.biz
(high priced underwear)

Buying Associations

ez Fashion Center Intermeet Fashion

TMC 3 Felsenrainweg 17
Talackerstrasse 13 CH - 8052 Zrich
CH - 8065 Zrich Tel.: +41 44 302 11 62
Tel.: +41 44 874 90 10 Fax: +41 44 302 41 53
Fax: +41 44 874 90 19 (womenswear)
www.ezfashion.ch

INTERSPORT International
Holding AG
Obere Zollgasse 7
CH - 3072 Ostermundigen
Tel.: +41 31 930 71 11
Fax: +41 31 930 71 21
www.intersport.ch
(jeans and active sportswear in
mid price level)

201
Importers/Wholesalers
Baum AG
Aeschenvorstadt 48
CH - 4010 Basel
Tel.: +41 61 271 01 55
Fax: +41 61 272 51 54
(boutique/shop)
WE Switzerland AG
Im Langacker 16
CH - 5405 Baden-Dttwil
Tel.: +41 56 483 03 83
Fax: +41 56 483 03 70
www.we-fashion.com
(Importer/Distributor of men's
apparel, Dutch owned company)
Conrad
Spalenring 123
CH - 4045 Basel
Tel.: +41 61 272 57 33
Fax: +41 61 272 57 11
(Importer/Distributor of mainly
menswear, only buy brands in
small quantities)
Pandinavia Import Export
Spitalackerstrasse 63
CH - 3000 Bern 25
Tel.: +41 31 331 40 32
Fax: +41 31 333 06 93
(Importer/Distributor of men's
apparel)
202
 Outerwear

UNITED KINGDOM
6 UNITED KINGDOM
6.1 GENERAL ECONOMIC
SITUATION
The growth rates of the Gross
Domestic Product (GDP) in the UK
were higher in the 90s than in the
rest of the EU and Switzerland.
Great Britain can be described as
a booming country, economic
development is comparable to
that of the US. This must also be
seen against the backdrop of the
UKs painful restructuring process
in previous decades, that yielded
obviously successful results in the
end. Since 1995, the GDP growth
rate has been at constant prices
on average 2.8%. In 2004 it was
even at 3.2%. This is more than in
most other European countries.
Total expenditure of private hou-
seholds in the UK continuously
increased in the last few years at
constant prices by 2.8% with
1,094 billion in 2004. The reason
for this positive development is
that the unemployment rate
among the population has been
quite low: 4.8% in 2004. This per-
formance is excellent compared
to the double digit unemployment
rates in other European countries
except Switzerland with 3.9%.
The UK is one of the three largest
countries in the European Union,
but has not yet entered the EU
Monetary Union. Especially since
the introduction of the in begin-
ning of 2002, the imports of clot-
hing (and other goods) to the UK
have been positively influenced by
the strong position of the British
against the .
Generally speaking, Great Britain
is still profiting today from the
structural reforms implemented
by Mrs. Thatcher with privatisati-
on, deregulation and liberalisation
of the employment market.
6.2 THE MARKET FOR
OUTERWEAR
6.2.1 Market size
The UK remained the second big-
gest clothing market in the EU
behind Germany. UK consumers,
along with Austrian citizens,
belong to the biggest spenders
per capita on clothing in the EU.
While the import and export mar-
ket increased over the years, the
local production fell rapidly by
approx. 1 bn. . As a result of
these figures it is obvious that the
British fashion market is highly
dependent on other countries'
textiles.
According to the German Maga-
zine Textilwirtschaft, the British
clothing market has a volume of
approximately 33 Billion Pounds
sterling. The market volume for
clothing in 2004 increased by a
quite dynamic 3.5%.
203
Table 6-1: Size of the British fashion market, 2001 - 2004
in m. * 2001
Import Market 9 400
Local Production 4 932
Exports 2 877
Source: BATC, Overseas Trade Statistics
6.2.2 Market characteristics
Based on desk research it can be
stated that in general the patterns
of British consumers have
changed since 2004/2005. British
apparel retailers look back at a
period of 10 years of almost phe-
nomenal growth rates. From
2000 to 2004, British retail expan-
ded by 4.2% annually, whereas in
2005 the sales increase was only
1.9%; expenditures are decrea-
sing.
A large proportion of British con-
sumers has become more price
sensitive under the slogan: Look
good pay less. This attitude
towards clothing consumption
explains to a large extent the
overwhelming success of the so
called British Value Retailers, of
which the Top Seven sold clot-
hing with a value of 5.2 Billion
Pounds sterling (2004). In the
same year the year the value
retailer market increased by 14%.
However, some consumers are
also willing to buy higher priced
and exclusive clothing. Good eco-
nomic development in the UK in
the past few years has lead to an
increase of the consumer seg-
2002 2003 2004
10 075 10 610 10 859
4 793 4 391 3 925
2 481 2 692 2 719
ment with more purchasing
power, e.g. the number of millio-
naires in the UK increased by
more than 80% between 2001
(230,000) and 2004 (425,000).
The tendency towards luxury is
also emphasized by strong brand
awareness.
Between 2002 and 2003, UK real
household disposable income per
head rose by 1.8 per cent compa-
red with growth in GDP per head
of 2.0 per cent. Most consumers
with high income are normally in
the age group between 50 and
60 and manufacturers offering
highest quality garments meet a
strong and ever growing market
segment in the UK.
Good quality is also of increasing
relevance to the younger consu-
mers. This is underlined by the fact
that clothing brands are of the
same importance to the young as
to elderly consumers, although
the younger consumers often can
not afford the branded items.
Whenever their financial situation
allows (often due to the wealth of
their parents) the young like to
buy brands (e.g. for jeans) and are
eager to show their fashion awa-
reness.
204
6.2.3 Demographic characteristics
The UK has a population of 59.8
million inhabitants with slight
increases in population projected
for the next 10 years. It grew by
281,200 people in the year to mid-
2004, and the average growth
per year has been 0.4 per cent
since mid 2001. The age structure
indicates the most suitable consu-
mer groups to address for the
respective product segment.
Market developments in terms of
shifts in the age groups can be
predicted. These demographic
forecasts may give hints on how
to address the age group concer-
ning design and marketing. Also,
the kinds of clothing requested
may change in the future regar-
ding general demand, quality, sui-
tability, comfort standards, basic
designs and colours.
The age groups between 35 and
44 have the highest shares in the
British population today with 7.7%
(35 - 39) and 8.0% (40 - 44) of
total population. But the older age
groups of 45 to 49 also play a
significant role. In future, the youn-
ger consumer segment will
decrease more and more. The
tendency of falling birth rates in
the UK is a constant factor with
direct effects on the age and the-
refore consumption structure of
the population.
Manufacturers from abroad
should not neglect the increasing
age group of over 39 up to 59
years of age. More details about
the shares and developments of
the age groups concerned can be
taken from Figure 6-1.

Figure 6-1: Age structure of the British population by sex, 2005

United Kingdom: 2005

100+
95-99
90-94
male 85-89
female
80-84
75-79
70-74
65-69
60-64
55-59
50-54
45-49
40-44
35-39
30-34
25-29
20-24
15-19
10-14
5-9
0-4

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)

Source: U.S. Bureau of the Census, International Data Base

205
 Table 6-2 indicates the shares of
the specific age groups in the total
British population in 2005.

Table 6-2: Age structure of the British population in shares, 2005

0-4 5-9 10- 15- 20- 25- 30- 35- 40- 45- 50- 55- 60- 65- 70- 75- 80+
14 19 24 29 34 39 44 49 54 59 64 69 74 79

5.5% 5.9% 6.4% 6.5% 5.5% 6.2% 6.8% 7.7% 8.0% 6.9% 6.1% 6.5% 5.1% 4.4% 3.8% 3.2% 4.4%

Source: U.S. Bureau of the Census, International Data Base

6.2.4 Retail Sales by product category As indicated in Figure 6-2 the retail
sales of clothing in the UK amoun-
The British market for outerwear ted to a total of approximately 43
shows that womenswear is at a 500 million (yellow line in the
double level (and partially above) graph) in 2004. The total clothing
compared to menswear. retail sales have risen on average
yearly by 4.9% from 38.5 billion
in 2001 to 43.5 billion in 2004.

Figure 6-2: Clothing turnover by sex, 2001-2004

50
45
40
35
in million

30
Men & boys
25
20 Women,
15 girls & infants
10 Total
5
0
2001 2002 2003 2004

Source: CBI, 2004

The market for womens and girls
wear represents 68% of the total
market and is therefore the lar-
gest sector for outerwear.

206
 Table 6-3: Shares of outerwear by sex and percentage change, 2004

in % of Men Women Change in % of Men Women Change

total value from total value from
03-04 03-04

Formal 41 45 Casual wear 31 31

Clothing

Coats +11% Outdoor jackets +1%

Suits/jackets +2% Shirts -5%

Trousers +3% Jumpers/cardigans +3%

Dresses/skirts +3% Pullovers +1

Shirts/blouses -3% Trousers +3

Basic 22 20 Active sports 6 4

leisure wear wear

T-shirts +8% Track/jogging suits -

Tops/bodies - Tops and shorts -
Shorts - Other -
Jeans trousers +1% Sweaters/fleeces -

Source: CBI Market Survey Outerwear, 2004

Although formal wear is more and have - compared to other

more substituted by casual wear,
as in other European countries,
the UK is still the country with the
highest market share of formal
wear. As Table 6-3 shows, the
share of formal clothing is at a
comparatively high level of 45%
for women and 41% for men. In
this context, it should also be
mentioned that in the segment of
childrens clothing, formal wear is
also strong because of the use of
school uniforms in Great Britain.
This has great after effects on the
adult population. Casual wear and
basic leisurewear in particular
European countries - lesser but
increasing importance among
British consumers. According to
research conducted, designer
(i.e. branded) casual clothing has
become more and more popular.
The most preferred clothing items
are outdoor jackets (+1%) for men
and women as well as trousers
(+3%) for men and cardigans/jum-
pers for women (+3%).

207
6.2.5 Consumer behaviour 6.2.5.2 Consumer expenditure

6.2.5.1 Consumer preferences In recent years, the UK economy

As you can see from Table 6-4,
multiple clothing chains and varie-
ty stores took 52% of UK clothing
sales by value in 2004.
Department stores and mail order
operators represented approx.
10% of the sales in 2004. The mail
Table 6-4: Clothing retail channels by
market share, 2000 - 2004
has been among the strongest in
Europe. Consumer confidence
has been high as a result of low
interest rates, low level of unem-
ployment (< 5% - lowest rate for
the last 25 years) and strong
increases in house prices. Growth
in household expenditure was the
driving force behind the UKs GDP
growth. Household expenditure
grew by 8.6 percent in the period

in % of total value 2000 2002 2004 Source: Office of National

Statistics (ONS), 2005
Specialists 47 47 48

Independent retailers 16 15 14

Clothing multiples 31 32 34

Non-specialists 53 53 52

Variety stores 19 17 18

Hyper- and supermarkets 4 5 5

Department stores 9 10 10

Home shopping companies 10 10 9

Street markets and other 5 4 4

Sports shops 6 7 6

Total 100 100 100

order sector has held share as 2001-2004 and further growth is

some multiple operators have
entered the catalogue market.
Sports shops took 6%. Indepen-
dents commonly sell upmarket
branded clothing at higher price or
more expensive own brands. In
2001, these outlets represented
14% of total sales by value.
expected for the coming years.
These positive economic data for
the British explain to a large extent
the fact that UK consumers most
favourate leisure time activity is
shopping, just like the slogan:
Shop until you drop!

208
The UK remainded the second
biggest clothing market in the EU
behind Germany. UK consumers,
along with Austrian citizens,
belong to the biggest spenders
per capita on clothing in the EU.
In comparison to other European
countries, the share of clothing
expenditure compared to the
total consumption climbed conti-
nuously since the mid 90s. The
per capita consumption for clot-
hing in the UK today ranks in the
middle of the EU and Switzerland.
Demographic figures support the
thesis that outerwear expenditure
will grow also in the near future. In
2004, expenditure on clothing
increased at constant current pri-
ces by 4.7% compared to a rise in
total expenditure by 5.9%. More
details about the developments
from 2001 to 2004 can be taken
from Figure 6-3.
Figure 6-3: Comparison of house-
hold expenditure on clothing and
total household expenditure,
2001 2004
Source: Office of National Statistics (ONS): Consumer Trends 2005 -
seasonally adjusted - at constant current prices (Basis: average 2.4 per-
sons household)
Table 6-5 illustrates household
expenditure by age of head of
household. The figures indicate
that for men, expenditure on clot-
hing rises with age, but seems to
be quite constant especially for
men between 30 and 64, and only
falls again at a higher age.
Expenditure for womens outer-
wear is not only higher in all age
categories than for men, but also
shows a different life cycle pat-
tern. In the 20 years between the
age of 30 and 49, average weekly
expenditure is 10.20. In the 15
years between 50 and 64,
womens expenditure shows
nearly the same level at 9.20
weekly. Assuming that the age of
the head of household stands for
the age of the female consumer, it
means that 50 to 64 year old
women is the age category with
the highest expenditure on clot-
hing. The reason for this could be
sales of luxury items for wealthy
clientele in shops like Burberrys,
Barbour and Pringle.
209
 Table 6-5: Weekly household expenditure by age of head of household, 2004
in Under 30 30-49 50-64
Men's outerwear 5.20 5.90 5.00
Women's outerwear 7.40 10.20 9.20
Boys' outerwear 0.60 1.70 0.30
Girls' outerwear 0.40 2.40 0.40
Babies' outerwear 1.30 0.90 0.50
Source: ONS Family Spending 2004 - based on weighted data and including childrens expenditure
Expenditure for boys' and girls'
clothing is highest in households
where the head of household is
between 30-49 years old. The
numbers show that babies outer-
wear is bought mostly by younger
families or single parents under 30
years. The spending of house-
holds on clothing for the young
and very young consumers (boys,
girls and babies) represents only
16.8% of the total budget for clot-
hing.
The International Data Base
Study of the U.S. Bureau of the
Census predicts positive demo-
graphic effects on total consumer
expenditure (incl. clothing) for
another twenty years considering
that the group with the main
expenditure for women is bet-
ween 50 and 64 years old. These
demographic effects have to be
considered by the clothing manu-
facturers wishing to penetrate the
British market e.g. in terms of sty-
ling and designing for the older
consumers, who are already
spending relatively more for clot-
hing and will increase spending in
the future.
65-74 75+ Total Percentage
2.00 0.70 4.40 29.5%
4.80 2.70 8.00 53.7%
0.20 0.00 0.80 5.4%
0.30 0.20 1.10 7.4%
0.10 0.10 0.60 4.0%
The UK has been a price oriented
market in the past, but continues
to be more and more of a market
with consumers valuing quality.
Sales difficulties in the middle
market segment are probably
more of a management problem
(e.g. at Marks & Spencer which
has had serious marketing and
sales problems in the last 2-3
years) than a general consumer
trend.
The main factor in buying decisi-
ons of British consumers is dispo-
sable income, which has continu-
ously increased in recent years.
Retailers with the appropriate mar-
keting concept have shared in this
positive development. As a conse-
quence of the booming economy
compared to other markets,
people are willing to spend more
on higher priced items. On avera-
ge, around 6% of total household
expenditure is on clothing (ONS,
Family Spending Survey) indepen-
dent from total expenditure in the
respective income classes. It can
be concluded that the percentage
of expenditure on clothing from
total income is stable throughout
all income classes.
210
6.2.6 Price development of clothing
Clothing prices have been decli-
ning since the mid 90s. The fierce
competition on the UK clothing
market has brought down prices
year after year. In most outerwear
sectors consumers buy more
items, but the growth of the clot-
hing market in value is lower due
to price deflation.
The national statistics of ONS give
a clear picture of the situation.
Especially in 2001/2002, prices for
clothing went down in the UK
while the overall prices of consu-
mer goods rose on average. In
2001, the general price inflation on
consumer goods was + 2.2%.
However, the prices for garments
fell 4.5%. In 2003 the clothing
price index only dropped by 1.9%,
which is one of the lowest deflati-
ons since the mid 90s. More
details can be taken from Figure
6-4.

Figure 6-4: Inflation rate of clothing relative to national inflation rate,

2001 2004

0
2001 2002 2003 2004
-1 Clothing price index

-2 Consumer price index

-3

-4

-5

-6

Source: Office of National Statistics (ONS): Consumer Trends, 2005 deflators.

211
6.3 IMPORTS
6.3.1 Total imports
While UK production has decrea-
sed, imports of clothing increased
in recent years. The UK is the
second largest EU importer in
terms of value and accounted for
18 percent of EU total imports of
outerwear in 2002. The strength
of the British Pound can be seen
as the main motivation by the
importers as to why the imports
have been so attractive. As a logi-
cal consequence, the Overseas
Trade Statistics show that imports
for ladies and mens clothing con-
tinuously increased over the last
few years. Although the import
level of womenswear is higher
than for menswear, imports of
mens clothing seem to have
grown stronger.
Looking at the total figures in Table
6-6 and Table 6-7, the import
share of womens clothing in total
imports is higher than that for men
mainly due to a generally higher
consumption of womens clot-
hing. The national clothing pro-
duction companies have been
reducing their output year after
year and the imports are not only
replacing the domestic, but there
are also - with a tendency of lower
prices - more clothing items sold
in the UK than ever before. UK
imports amounted to approxima-
tely 18% of total clothing imports
to the European Union in 2004.
Table 6-6 illustrates the import
developments of knitted outerwe-
ar from 2002 to 2004 for those
outerwear items analysed for this
marketing handbook. Although
the consumption of womenswear
is higher than that of menswear,
the import figures show that the
import of knitted outerwear
(coats, suits, shirts/blouses) for
men in 2004 at 556.4 million is
nearly as high as for women at
825.4 million . It should be noted
that the imports of knitted outer-
wear for women and girls have
decreased from 2003 to 2004 by
0.2%. The highest import increase
for a specific product segment is
Other Sportswear with a growth
of 22.5% in 2004 compared to
2003 (HS Code 61.14).
The total import of knitted pro-
ducts increased in terms of value
from 2002 to 2004 by approx.
8%. The percentage of knitted
outerwear imported from coun-
tries outside the EU is around
65%.
212
 Table 6-6: Imports of knitted outerwear by sex and product categories, 2002 - 2004

2002 2003 2004

Tons 1 000 Tons 1 000 Tons 1 000

For men or boys

Coats, raincoats, ano- 3 794 71 306 3 348 59 976 3 920 67 907

raks etc. (61.01)

Suits, jackets, ensem- 114 289 191 384 11 898 174 496 14 096 200 933
bles, trousers, shorts
etc. (61.03)

Shirts (61.05) 21 830 347 081 21 841 297 322 22 162 287 514

Total 139 912 609 772 37 086 531 795 40 178 556 353

Total extra EU 33 705 485 036 33 390 411 015 35 524 420 899

For women or girls

Coats, raincoats, ano- 6 696 135 587 7 833 125 206 8 798 130 478
raks etc. (61.02)

Suits, ensembles, jak- 25 921 521 521 22 31 799 496 753 30 914 478 159
kets, dresses, skirts,
trousers (61.04)

Blouses and shirt blou- 10 848 230 738 11 461 204 762 11 746 216 714
ses (61.06)

Total 43 465 887 547 51 093 826 72 51 458 825 351

Total extra EU 37 019 668 153 38 805 589 233 42 039 588 185

For both sexes

T-shirts,singlets etc.(61.09) 88 518 1 527 233 102 173 1 593 099 134 166 1 869 015

Jerseys, pullovers, 99 919 1 935 260 106 771 1 699 121 128 828 1 693 816
cardigans, waistcoats
etc. (61.10)

Babies garments (61.11) 17 619 323 565 18 785 285 348 21 402 310 667

Impregnated clothing (61.13) 755 16 170 728 12 493 1 019 16 6097

Total 206 811 3 802 219 228 456 3 590 062 258 414 3 890 107

Total extra EU 170 729 2 786 974 185 676 2 570 856 209 219 2 854 136

Active Sportswear
Source: Eurostat, 2005

Track suits, ski suits and 4 832 138 273 6 656 149 109 8 282 167 641
swimwear (61.12)

Other sportswear (61.14) 3 331 74 712 4 400 77 674 5 511 100 222

Total 8 163 212 985 1 056 226 784 13 793 267 863

Total extra EU 6 594 160 629 9 044 168 547 10 916 199 587

213
Table 6-7 shows the imports of
woven outerwear into the UK.
From 2002 to 2004, total imports
of woven outerwear for women in
value terms increased at a greater
rate than for men. Imports of
woven menswear decreased
from 2,542 million in 2002 to
2,435 million in 2003 and increa-
sed in 2004 to 2,515 million.
The import volume of woven
menswear rose from 126 million
tons in 2002 to 142 million tons in
2004. Import prices for woven
menswear decreased significant-
ly. Menswear, and in particular
woven wear, played an important
role in recent seasons, resulting in
some price increases.
The increase of imports in 2004
compared to 2003 is not valid for
all outerwear product categories
for men in value terms. Shirts
decreased by 31.9 million to
586.8 million , similar to coats,
anoraks and windcheaters which
decreased by 14.2 million to
307.9 million .
Woven womenswear imports
increased from 2003 to 2004 and
amounted to 3,847 million in
2004. Whereas ladies suits, out-
fits, jackets, dresses, skirts and
trousers (HS Code 62.04) and
coats, capes, anoraks and wind-
breakers (HS Code 62.02) were
imported more in 2004, blouses
(HS Code 62.06) suffered a
decrease of 1% (value terms).
The clothing exporter selling into
the UK can easily select his speci-
fic product group from the import
Table 6-6 and Table 6-7 in which
he is working (HS Code indicated
in column 1) and analyse the spe-
cific import developments in
terms of value and volume from
2002 to 2004.
214
 Table 6-7: Imports of woven outerwear by sex and product categories, 2002 - 2004

2002 2003 2004

Tons 1 000 Tons 1 000 Tons 1 000

For men or boys

Coats, anoraks, 15 521 313 941 18 400 322 192 18 986 307 910
windcheaters etc.
(62.01)

Suits, jackets, 76 595 1 539 386 81 422 1 493 727 88 966 1 620 470
ensembles, trousers,
shorts etc. (62.03)

Shirts (62.05) 33 977 688 278 36 481 618 688 34 567 586 777

Total 126 092 2 541 605 136 303 2 434 608 142 518 2 515 157

Total extra EU 103 970 1 775 892 116 521 1 705 069 123 348 1 771 791

For women or girls

Coats, capes, ano- 18 697 396 169 25 387 415 207 28 695 441 767
raks, windjackets etc.
(62.02)

Suits, ensembles, 115 942 2 657 584 139 981 2 612 143 171 871 2 763 047
jackets, dresses,
skirts, trousers
(62.04)

Blouses and shirt 34 431 714 982 34 384 647 920 40 320 641 779
blouses (62.06)

Total 169 069 3 768 736 199 752 3 675 270 240 886 3 846 594

Total extra EU 150 710 2 934 406 175 865 2 879 929 223 689 2 055 027

For both sexes

Babies garments 6 898 141 716 7 728 122 817 8 432 139 667
(62.09)

Other incl. impregna- 11 757 235 471 13 418 225 124 11 390 203 642
ted (62.10)

Total 18 655 377 187 21 146 347 914 19 822 343 309

Total extra EU 13 863 276 080 14 526 243 545 15 538 253 636

Source: Eurostat, 2005

215
6.3.2 Outward Processing Trade (OPT)
Unfortunately, there is no informa-
tion available via Eurostat and
other sources about the OPT
business in the UK, as this kind of
subcontracting business is relati-
vely unknown.
6.3.3 Largest suppliers of outerwear
UK domestic clothing production
has declined, whereas imports
have increased. This develop-
ment has opened and will open
good sales opportunities to
manufacturers; especially those
from developing and emerging
countries. Table 7-8 gives a good
survey on the performance of the
20 leading clothing suppliers to
the UK. The share of clothing
imports from non-EU countries is
74.4%. EUROSTAT states that in
2004, 13.1 billion of outerwear
was imported to the UK: 9.7 bil-
lion outerwear from outside the
EU and 3.4 billion outerwear
from EU countries. While the
imports from outside the EU
decreased by 2% in 2003 and
increased in the year 2001 by 2%,
the imports from EU countries
declined significantly by 6% in
2003 but increased by 7% in
2004. That shows that the
imports from EU countries rose
more than imports from outside
the EU.
The main import countries are
China (1,916 million ), Turkey
(1,452 million ), Bangladesh (820
million ), Italy (721 million ) and
Hong Kong (688 million ). Four of
these increased their exports to
the UK; only Hong Kong reduced
it by 5%.
Among the winning countries Sri
Lanka has an excellent perfor-
mance with +21%, the highest
increase among the 20 leading
clothing suppliers to the UK. The
second best performing country
is Bangladesh with an increase of
+19% followed by Pakistan with
+14% and Spain also with +14%.
The losing countries are Belgium
(7%), Portugal (6%), Indonesia
(6%) and Hong Kong (5%), (value
terms 2004 compared to 2003).
Looking at the country shares in
total import, China maintains the
major part with 14.6% of total
imports. Turkey also plays a signi-
ficant role with 1,452 million and
a share of 11.1%. The main Asian
countries are China (14.6%),
Bangladesh (6.3%), Hong Kong
(5.2%), India (3.5%) and Sri Lanka
(3.2%). These countries alone
represent more than a third of
total clothing imports.
216
 Table 6-8: Largest supplying countries of outerwear, 2002 2004

Po- Country 2002 Change 2003 Change 2004

siton in 1000 from 2002 in 1000 from 2003 in 1000

1 China 1 754 459 -2% 1 725 542 11% 1 916 039

2 Turkey 1 343 308 3% 1 386 655 5% 1 451 909

3 Bangladesh 596 325 15% 687 470 19% 820 158

4 Italy 688 633 -6% 650 349 11% 720 908

5 Hong Kong 795 719 -9% 721 225 -5% 687 543

6 Romania 570 914 1% 576 744 8% 622 931

7 France 465 488 16% 539 428 11% 598 604

8 Morocco 536 564 -12% 472 241 6% 500 909

9 Germany 502 447 -5% 476 132 5% 498 883

10 India 454 026 -8% 418 485 9% 456 048

11 Sri Lanka 385 924 -9% 351 784 21% 424 004

12 Portugal 407 417 0% 408 380 -6% 384 527

13 Belgium 473 067 -16% 398 354 -7% 369 010

14 Indonesia 415 020 -17% 343 417 -6% 321 959

15 Netherlands 287 089 -18% 236 338 12% 264 945

16 Pakistan 181 233 7% 193 911 14% 220 746

17 Mauritius 190 989 -9% 174 653 4% 181 174

18 Thailand 199 043 -11% 176 214 2% 179 497

19 Cambodia 157 207 -7% 145 417 12% 163 070

20 Spain 80 563 58% 127 434 14% 145 827

Intra-EU15 3 354 364 -2% 3 292 171 2% 3 359 657

Extra-EU15 9 713 310 -6% 9 137 179 7% 9 744 613

Total 13 067 674 -5% 2 429 351 5% 13 104 270

Source: Eurostat, 2005

217
6.4 TRADE STRUCTURE
6.4.1 Developments in the retail trade
The British retail scene with its
ideas and concepts is acknowled-
ged worldwide, so that even
representatives from American
department stores travel to
London to learn from the British
retailers. Names like Debenhams,
John Lewis, Selfridges, Harrods,
Harvey Nichols or Liberty have,
though they have developed
strongly, kept their personality.
Although the retail business was
expected to be affected by the
slowing down conjuncture in
2005 and the effects of the terror
attacks in London in July 2005, at
the end the results were not so
bad with sales in November 2005
up 4.6% compared to the previo-
us year (Source: Retail Sales
Monitor of the British Retail
Council in collaboration with
KPMG, December 2005).
Looking at the basic structures in
the British retail trade, the major
statement is that the retailers
have gone through a tremendous
process of concentration in
recent years. Ten companies con-
trol more than 40% of the retail
trade. British retail structure is
dominated by clothing multiples
with a market share of around
25%. The biggest players in this
segment include the Arcadia
Group and Next. Department
and variety stores also play a
dominant role with a market share
of 25%, of which Marks &
Spencer (M&S) is the most impor-
tant variety chain in the UK. As in
other EU countries and
Switzerland, with the exploding
importance of the clothing chains,
the role of the independent retai-
lers (boutiques etc.) has gone
back to a market share of about
14%. The mail-order houses
represent approximately 10% of
the clothing retail market (all data
from 2004).
The improved management of
the supply chain of retailers has
changed the whole retail structure
in the UK and Europe. This is even
truer for Great Britain, where the
degree of concentration at retail
level is even higher than in other
European countries. With a close
look at price retailers in the UK it
can be clearly observed that they
are optimising their supply chain.
Buyers in the purchasing depart-
ments are not only buyers but
also product and brand mana-
gers. Also, low stock keeping and
concentration of the purchasing
power on few big suppliers are
characteristics of the UK retail
market.
Along with this development, the
competition among the clothing
suppliers from non-EU countries
has also increased and demands
with regard to service, reliability
and keeping of high quality stan-
dards have to be fulfilled by com-
panies that wish to remain on the
suppliers lists.
218
A further strong development in
the British retail trade - apart from
price orientation - is the emphasis
on more service and attractive
shop interiors. Consumers are not
only prepared to invest in the pro-
duct, but also accept higher pri-
ces for the distracting experience
of shopping. Buying of clothing
becomes a special and joyful
event achieved through a variety
of entertaining and extensive
store environments.
Formerly known as discount retai-
lers, companies like MATALAN
have initiated new fashion
designs, sub-brands and manage
- in comparison to Marks &
Spencers clearly positioned
product lines. In general, buying
clothing for little money has been
de-stigmatised through the hig-
her qualities and branding strate-
gies of the retailers.
BHS (British Home Stores) variety
store started in the mid price seg-
ment and has moved more to an
image as a discounter with relati-
vely large reductions in price. The
strategy of BHS targets clothing
for adults and a special range for
kids. All these discount retailers
follow the trend of the consumers
looking for more at less money;
this means more choice, more
adventure, more service and
more efficiency.
According to MARKS & SPEN-
CER, the market has polarised
into three segments:
1. Premium Fashion Brands,
2. Fast One way Fashion and
3. Commoditisation of basic pro-
ducts (under the assumption that
they will be regarded as simple
commodity items which are sold
only via low price).
According to a study by Forester
Research, 35% of British Internet
users buy clothing online.
Traditional retailers like John
Lewis, Tesco; Argos and Next
profit particularly from this deve-
lopment. Experts assume that in
10 years, 15% of the retail turnover
will be via internet.
Verdict Forecasts Clothing &
Footwear to 2006 (Verdict
Research, London 2001), fore-
casts that competition for the
middle market segment will
increase even more. According to
this analysis, expenditure for clot-
hing in the UK to 2006 will increa-
se by only 8.8%. The best sales
chances are predicted for the
supermarkets, as the British con-
sumer by 2006 will spend 3 billion
in this kind of retail outlet. These
discounters will be among the
winners as well; they will increase
their market share by an increase
in turnover by 27% until 2006. The
upper market segment will have
grown by 16% from 2001 to 2006.
219
6.4.2 Leading retailers
Table 6-9 gives a good survey of
leading clothing shops/chains in
the UK. Besides the clothing
chains of the powerful ARCADIA
Group, (sales volume 1.02 Billion
in 2004) there are other clothing
multiples like NEXT with 333 out-
lets and a sales volume of 1.09
Billion. Another important clothing
multiple is BHS with about 160
outlets. C&A, one of the largest
clothing retailers in Europe, tried
to survive in Great Britain after
experiencing serious marketing
and sales problems, but finally fai-
led with large losses, gave up its
stores and withdrew totally in
2001. In the meantime, C&A in
Germany, for instance, has
modernised its sales strategy and
has improved its previously poor
image tremendously.
Looking at the sales figures of
other important clothing stores,
shops like the MATALAN chain
(137 outlets discount strategy),
MacKays (271), ETAM (212), New
Look (573 discount strategy),
ALEXON (659), MONSOON (189)
trail a long way behind NEXT.
Woolworth is the second largest
store chain for childrenswear after
M&S. ADAMS is the leading clot-
hing chain dealing only in chil-
drenswear.

Table 6-9: Leading clothing retailers by turnover, 2004

Position Brand Turnover Market Number

in Euro Share in % of Outlets

1 Marks & Spencer 1,742 10.2 315

2 Next 1,085 6.3 333

3 Arcadia 1,022 5.9 2

4 Debenhams 683 4.0 97

5 Asda 612 3.6 215

6 Matalan 493 2.9 137

7 Tesco 451 2.6 588

8 Bhs 401 2.3 163

9 New Look 351 2.1 573

10 John Lewis 306 1.8 25

Total of Top 10 7,144 41.8

UK Market 17,088 100.0

Source: EU Market research report, 2004

220
The department store MARKS &
SPENCER has the highest sales of
clothing at 1.74 billion. The
second largest department store
that also has an important clothing
department is DEBENHAMS,
(clothing sales 683 million) ran-
king among the five largest clot-
hing retailers in the UK. They have
97 stores in the UK and have been
very successful by running an
own retail brand strategy with
more than 50 own brands! The
Home Shopping Catalogue
Debenhams Direct has been
launched successfully. Other
department stores are HOUSE OF
FRASER (0.84 Billion ) and JOHN
LEWIS (0.36 Billion ). MOTHER-
CARE is the largest department
store for babies and children.
Among the mail-order houses,
GUS and N BROWN are leading.
The well known ASDA (George)
and the expansive TESCO are the
two largest supermarkets ranking
in position 5 (five) and 7 (seven)
among all clothing retailers in UK.
6.4.3 Distribution channels
6.4.3.1 Retailers
6.4.3.1.1 Independent specialised
retailers
The market share of independent
clothing retailers has been drop-
ping slowly over the past three
years (2002-2004). In Great
Britain, 14% is sold through inde-
pendent shops, which is rather
low compared with the much hig-
her percentages in France and
Germany.
The shrinking process of the smal-
ler independent retailers has
come to a standstill and the mar-
ket has stabilized at a low level.
More than 90% of independent
retailers do not buy/import from
overseas clothing suppliers but
source abroad through their buy-
ing associations.
Market share: 14% in 2004
Trend: decreasing
6.4.3.1.2 Clothing multiples
The structure of clothing retailing
in the UK is one of the most con-
centrated in the world. The largest
player in the market is the Arcadia
Group, which operates with 2,321
clothing multiple stores and inclu-
des, as well as home service activi-
ties, the womens chains Dorothy
Perkins, Evans, Top Shop, Miss
Selfridge and Wallis, the menswear
chains Burton Menswear and Top
Man with a market share of
approx. 6% and clothing sales of
around 1.02 billion .
Despite the fierce competition in
the retail industry, the ARCADIA
Group was able to increase its
sales volume by 6.8% in the busi-
ness year 2004/2005. The CEO
of the Arcadia Group, Mr. Philip
Green, achieved EBIT of 18.4%.
The Arcadia Group buys separa-
tely for each of its companies and
each product group and there are
buyers responsible for each pro-
duct segment.
221
The TOPSHOP chain, also belon-
ging to Arcadia, has almost rea-
ched a cult-status among fashio-
nable British consumers. They
offer the latest young fashion and
have enlarged their services inclu-
ding style consulting, a VIP
Service sending a selection of clot-
hing items home and a special
department for pregnant women
with extra large changing rooms.
Those luxury shops that have tra-
ditional brands such as BURBER-
RYS, BARBOUR and PRINGLE
play an important role for consu-
mers over 45 who have the
appropriate income to buy quality
collections. Burberry has been
successful in re-launching its tradi-
tional labels and combines higher
quality with higher prices.
Burberrys consumer-oriented
and elaborate marketing led to a
sales increase. Similar develop-
ments can be detected for the
retailers Daks, Aquascutum,
Mulberry, Holland and Holland and
Jaeger who combined classic
brands with current market trends.
The more sophisticated taste of
consumers and strong brand
awareness is reflected by the
trend for the more upmarket retai-
lers such as the department store
SELFRIDGES and the clothing
chain HOUSE OF FRASER. Luxury
shops like CARDINGTON, LIBERTY
and HARVEY NICHOLS with the
Hong Kong-based owner Dickson
Concepts are considering expan-
sions and refurbishments of their
shops because of good profits.
Cardington purchased the cou-
ture houses Hardy Amies and
Norman Hartnell, Liberty re-laun-
ched its Regent Street store not
only for Londoners but also for
shopping tourists. Harvey Nichols
will open more shops around the
UK in addition the ones in London
and Leeds.
As in other European countries,
the mid-market global fashion
brands of the foreign companies
H&M, ZARA and MANGO are
strengthening their hold on the UK
market. In the UK clothing retail
sector a distinction is made bet-
ween discount retailers, which sell
branded clothing at below recom-
mended prices and value retailers,
which sell own label clothes at low
prices. The market share of these
retailers, in particular value retai-
lers, increased strongly in the
period under review and included
outerwear. The secret of their suc-
cess is the ability to provide the
latest fashion trends to their custo-
mers.
Zara, seen to be more at the cut-
ting edge of fashion than H&M,
has maintained a lead in its ability
to respond rapidly to fashion
trends. It puts fashion ranges
together in 7-30 days and can
replenish bestsellers in the stores
in five days, while H&M can
respond in 30-60 days. This com-
pares to as much as 40-50 weeks
from design to delivery for a typical
clothing retailer.
Market share: 25 % in 2004
Trend: increasing
222
6.4.3.1.3 Department stores
Among the clothing retailers, the
department store MARKS &
SPENCER (M&S) in particular suf-
fered from fiercer competition and
profits that turned into losses at
the end of the nineties. However,
with sales of around 1.7 billion ,
M&S is still the largest British clot-
hing retailer with a share of 10.2%
in the total clothing market.
With its middle priced items and its
315 stores, M&S, at least in the
past, was sometimes viewed as
old-fashioned or at least not very
consumer oriented and with unfo-
cused areas in its outlets. On the
one hand it did not offer very
cheap clothing to convince
through price, and on the other
hand, it did not offer highest quali-
ty and had disregarded the
increased brand consciousness
of the British consumer. At the
same time, buying relations to
domestic suppliers proved to be
too unsuccessful. The manufactu-
rer William Baird, for instance, sup-
plied 7% of M&S clothing. Despite
long-term partnerships with
William Baird, M&S decided to
cancel and now buys from outsi-
de the country and therefore fol-
lows the purchasing strategy of its
competitors. In other European
countries like France and
Germany, M&S had to exit its retail
engagement. M&S also termina-
ted US activities by the end of
2001.
Activities are now concentrated
only on Great Britain and it seems
that the new efforts will prove to
be successful. A journalist specia-
lised in the UK retail market sug-
gests that the key for the better
performance of M&S was better
fashion, better prices and a faster
flow of goods. A M&S employee
stated that the perfect cam-
paign, which mediates the mes-
sage of giving the ideal standard
design M&S, achieved more sales
not only in the womenswear
segment but also in the menswe-
ar segment. Moreover, there is a
programme for general refurbish-
ment of the stores and the outlets
are updated and rearranged
across the country. To compete
with the small chain stores and the
discounters, M&S plans to react
with an aggressive price strategy
and low entry price ranges.
The DEBENHAMS department
stores are operating more suc-
cessfully, with sales of 2 Bn. in
2005. They had the excellent
Marketing Idea to offer a range
called Designers at Debenhams
offering exclusively developed
collections at affordable prices.
Among all department stores,
JOHN LEWIS has gained most
market share with a total of 1.8% in
2004. There are also HOUSE OF
FRASER, ALLDERS and SELFRID-
GES in the market, but MARKS &
SPENCER still keeps the no. 1
position.
Market share: 25 % in 2004
Trend: stable
223
6.4.3.1.4 Mail-order houses
The major currently active clothing
mail-order business companies
are the British owned companies
GREAT UNIVERSAL STORES
(GUS) and LITTLEWOODS Home
Shopping in co-operation with
Arcadia and Empire Stores
(French PRP Group). In this seg-
ment, customers can order within
given bank credits from the mail-
order companies. However, mail-
order houses lost 10% market
share from 2002 to 2004.
The mail-order house N BROWN
sells its products through a direct
mailing marketing strategy. The
German OTTO GROUP owns the
mail order companies GRATTAN
and FREEMANS. An employee of
Freemans has given the informati-
on that the whole process of buy-
ing from foreign suppliers in mail-
order business depends on the
publishing of the catalogues. In
addition, manufacturers from
abroad have to recognize that the
lead times are quite long. The pro-
ducts have to be photographed
and there is more preparation
necessary than high street stores
have to face. The penalties for
suppliers not performing in the
requested way are quite high.
Market share: 9% in 2004
Trend: decreasing
6.4.3.1.5 Textile discounters and
6.4.3.1.6 Supermarkets
In 2005, the London based retail
analysts Verdict Research publis-
hed that in 2004 the Top Seven
Textile Discounters and
Supermarkets are: George at
Asda, Matalan, New Look,
Primark, Tesco, TK Maxx and the
Peacock Group with a market
share of 16% in the British apparel
market.
The number one in terms of
growth rates is TESCO, which
achieved an increase of 28% in
2004 with its clothing brands
Cherokee, Florence and Fred, fol-
lowed by TK Maxx with a 17%
increase in sales. Tescos brands
Cherokee and Florence & Fred
remain the most expanding clot-
hing brands in the UK. Following
its competitor Asda, Tesco started
a pilot project with two non-food
stores in October 2005. Tesco
achieved an annual turnover of
700 Mn. (2004) in apparel only,
the total sales of the Tesco Group
were 37 Bn. .
Looking at the sales figures, ASDA
is the largest Value Retailer with a
turnover of 2 Bn. . In the super-
market segment the supermarket
ASDA (Wal-Mart) with half of
supermarket clothing sales, runs
its clothing under the label
GEORGE.
224
It can be predicted that the battle
in the mainstream market of
middle priced clothing will conti-
nue. The pull out of C&A from the
British market has implied an
ongoing fight among the retailers
to gain the consumers who pre-
viously bought from C&A. It is
reported that mainly the discoun-
ters and the so-called value for
money chains like PEACOCKS
and MATALAN have profited from
the pulling out of C&A, but BHS
which covers the middle priced
clothing, and Next have also done
so.
Market share: 20% (estimated)
Trend: strongly increasing
6.4.3.2 Sales Intermediaries
6.4.3.2.1 Clothing Manufacturers
In addition to retailers and whole-
salers that import clothing to the
UK, in some cases UK manufactu-
rers partly outsource their produc-
tion activities to manufacturers
abroad. UK clothing manufactu-
rers (mainly brands) have started
outsourcing with the strong
increase of production costs in the
UK, mainly in Eastern Europe and
Northern Africa. Many products
(e.g. most of the knitted outerwe-
ar) are bought from Asia and
Turkey on a finished product
basis (f.o.b. business).
British clothing manufacturers are
more management and marketing
units than producers. They mainly
concentrate on the design and on
questions of current fashion as
well as on marketing and sales.
The brands sell their products to
selected distribution channels that
correspond with their marketing
strategy. In any case, practically all
British clothing brands source pro-
ducts abroad in one way or anot-
her and offer various sales oppor-
tunities for clothing manufacturers
from abroad.
6.4.3.2.2 Central Buying Associations
Co-ordinated buying through cen-
tral buying associations is a way for
smaller UK retailers to gain more
purchasing power. Since the clot-
hing market in the UK is highly con-
centrated, with only a few big play-
ers who mainly buy directly from
clothing manufacturers and there
is little market share for small inde-
pendent shops, the importance of
central buying associations in the
UK is still low.
In Great Britain, importers/whole-
salers have often taken over the
buying function for smaller retai-
lers, as the latter do not have the
know-how and the means to
import goods on their own.
6.4.3.2.3 Sales Agents
There are different methods of
indirect distribution from abroad to
the various clothing retailers in
Great Britain. One option is that
local agents identify the clothing
suppliers abroad, but the UK retai-
ler is still the one who negotiates
with their in-house buying team
and organises all the logistics inclu-
ding shipping etc.
225
Most often British retailers use
several forms of indirect contacts.
Roughly speaking, half of these
agents or wholesalers are located
in the UK and half are located out-
side the UK. Agents are used by
retailers to identify appropriate
suppliers, to outsource the com-
plete handling and control inclu-
ding communication with the sup-
plier, the safeguarding of quality
standards (especially for
womenswear), the complete logi-
stics including the import proce-
dures, the production abroad
according to ecological and social
standards (code of conduct) etc.
A further option for the clothing
manufacturer from abroad is sel-
ling through regional agents in
Great Britain. The condition is
whether the manufacturer has a
clear marketing strategy with a
market oriented collection for the
British market. The basis is an
detailed Business Plan. The
manufacturer from abroad should
consider that the area of Greater
London is highly competitive and
it might be more advantageous to
start the market entry in areas like
Manchester, the North West or
even Ireland.
6.4.3.2.4 Importers/wholesalers
For most suppliers to the UK mar-
ket, indirect selling is the first way
to go. UK wholesalers are infre-
quently mentioned, rarely visible,
and searching for them on the
Internet proves to be very difficult.
Market research has shown that
clothing wholesalers do not play
an important role in the UK. Some
British retailers do buy with the
help of intermediary companies,
and these wholesalers might even
be outside the UK.
The principles and possibilities of
indirect selling to the UK might be
illustrated as follows: If the manu-
facturers clothing is sold for
instance at the shops of Marks &
Spencer in the UK, the import may
be done through a company
somewhere in Europe and not
necessarily in the UK. This can be
confusing for clothing manufactu-
rers from abroad when trying to
get in contact with a buyer who
only buys within Europe.
Nevertheless, selling clothing to
the UK also means working, in
general, with manufacturers in
Europe that export to the British
market.
Selling to wholesalers can be
more profitable, because despe-
rately trying to sell directly to the
retailers may not work and might
result in no orders at all, as many
British retailers source through
those wholesale and import units.
The main function of wholesalers
cannot be described merely as
buying and selling and gaining a
high margin. The wholesalers also
know most of the details about
the retailers needs. Other tasks
and functions of the wholesaler
within the sourcing process inclu-
de the know-how about the stan-
dards of the designs and as well
as knowledge of the technical
aspects of the products to be
produced.
226
The British wholesaler normally also
advises the manufacturer to put the
appropriate label on the product, as
the concept of own Retail Brands
has become of crucial importance
to the retailers in the UK offering
them more independence from the
clothing manufacturers and running
an own brand concept with better
margins. The British wholesaler nor-
mally is fully involved in these pro-
cesses to guarantee the right pro-
duct at the right time in the right
place.
6.5 UK FASHION TRADE FAIRS
The UK has achieved a better
image for clothing design in the last
few years and is competing with
France and Italy. With London as a
major fashion centre in Europe, the
United Kingdom has gained more
importance as a Fashion Country.
In addition, a great deal of support
from the British government has
been an encouraging factor.
London Design is said to have a
very modern or even avant-garde
style and influences the European
fashion scene to a certain extent.
As a consequence of the apprecia-
tion of British clothing and design,
trade fairs have increased in recent
years. According to market
experts, London offers the major
clothing fairs in UK. There have
been many clothing fairs in Great
Britain in the last 5 years, and the
British clothing fair market is extre-
mely fragmented. Still today, it is
highly recommended to check
exact dates and venues of the
smaller British fairs beforehand, as
the fair scene keeps on changing
its names and locations.
The main trade fair for clothing in
Great Britain is the London Fashion
Week. Three more fairs take place
parallel to the London Fashion
Week: Pure, Moda UK and Margin
London. All these fairs take place
twice a year (February and August).
At Pure, contemporary and classic
collections are shown, Moda UK is
a trade fair for mens and womens
clothing and accessories. Other
trade shows in Harrogate (PRIMA
Lingerie and Swimwear) are targe-
ting the northern part of the country
more, including Scotland, and the-
refore have more regional impor-
tance. An exception is the Premier
Childrenswear in Birmingham,
which has found its niche in the chil-
drenswear segment.
Premier Kids and Pure are organi-
sed by EMAP. The London Fashion
Week is organised by the British
Fashion Council.
There are also some smaller spe-
cialised fairs like the London Design
Week, London Corporate Wear
Week, Retail Solutions in
Birmingham or Harrogate Bridal
Exhibition which might be of inte-
rest for manufacturers from abroad
specialised in the respective pro-
duct groups presented during the
fair. In any case, brief research
about the importance and the con-
cept of the fair to be attended is
essential. The table underneath
gives a brief survey on the major
British clothing fairs with names,
venues and dates.
227
6.5.1 Overview of UK Fashion Trade Fairs

Trade Fair Products Location Dates

London Designer wear London February and

Fashion Week August

Pure Directional and contemporary London February and

womenswear August

Premier Kids 0-16 years old childrenswear Birmingham January and

jeans, sportswear Birmingham July

Moda UK Ladies and mens wear, Birmingham February and

accessories, footwear Birmingham August

PRIMA Womens wear, Harrogate February and

Harrogate lingerie and swimwear August

Margin Mens and womens clothing & London February and

London accessories August

Upfront Mens and womens clothing, London February

sportswear, leisure wear

Clotheshow Mens and womens clothing, Birmingham December

Live avant-garde, cosmetics Birmingham

Source: m+a Expo DataBase, Messedatenbank, 2005/2006

228
6.6 LIST OF MAJOR BUYERS OF LADIES, MENS AND
CHILDRENS WEAR IN GREAT BRITAIN

Clothing Chain Stores

Arcadia Group Ltd. Product range: Ladies, mens, chil-

Colegrave House drenswear
70 Berners Street Price segment: Mid-level
GB - London W1T 3NL Number of outlets: 2000 (2200 until
Tel.: +44 207 636 8040 the end of 2005) + mail-order busi-
Fax: +44 207 927 7651 ness
www.arcadiagroup.co.uk

TOP MAN Product range: Menswear

Colegrave House Price segment: Lower to mid-level
70 Berners Street Number of outlets: 167 + mail order
GB - London W1T 3NL service
Tel.: +44 207 636 8040 Note: belongs to ARCADIA Group
Fax: +44 207 927 2434
www.topman.co.uk

TOP SHOP Product range: Womenswear (young

Colegrave House fashion)
70 Berners Street Price segment: Mid-level
GB - London W1T 3NL Number of outlets: 288 + mail order
Tel.: +44 207 636 8040 service
Fax: +44 207 927 2434 Note: belongs to ARCADIA Group
www.topshop.co.uk

Wallis Fashion Group Ltd. Product range: Womenswear

Colegrave House Price segment: Lower to mid-level
70 Berners Street Number of outlets: 289 + mail order
GB - London W1T 3NL service
Tel.: +44 207 636 8040 Note: belongs to ARCADIA Group
www.wallis-fashion.com

WEW Group PLC Product range: Ladies, mens, chil-

(formerly Amber Day Holding drenswear
PLC) Price segment: Mid-level
296 Springfield Road Number of outlets: 40
GB - Glasgow G40 3HZ
Tel.: +44 141 5567111
Fax: +44 141 5567262

229
Bhs International Product range: Ladies, mens, chil-
Euston House drenswear
132 Hampstead Road Price segment: Mid-level
GB - London NW1 2PS Number of outlets: 164
Tel.: +44 207 2623288
international@bhs.co.uk
www.bhs.co.uk

Bon March Ltd. Product range: Womenswear

Jubilee Way Price segment: Lower level
Grange Moor Number of outlets: 350 (370 at the
GB - Wakefield WF4 4SJ end 2005)
Tel.: +44 192 4700100 Note: belongs to Peacock Group
Fax: +44 192 4 700249
www.bonmarche.co.uk

Ciro Citterio Menswear PLC Product range: Menswear

70 Church Road, Aston Price segment: Mid to upper level
GB - Birmingham B6 5TY Note: gone into compulsory liquidati-
www.cirocitterio.com on

Ethel Austin Ltd. Product range: Ladies, mens, chil-

School Lane, Knowsley drenswear
Industrial Park Price segment: Mid-level
GB - Knowsley, Prescot, Number of outlets: 270 (duplication
Merseyside L34 9GJ projected)
Tel.: +44 151 5467621
Fax: +44 151 5491380

Greenwoods Ltd. Product range: Menswear

Greenwood House Price segment: Upper level
Albion Road, Greengates Number of outlets: 150
GB - Bradford BD10 9TQ
Tel.: +44 127 4659650
Fax: +44 127 4659692
info@gwmw.com
www.gwmw.com
230
H&M Hennes Ltd.
2nd Floor, Holden House
57 Rathbone Place
GB - London W1T 1HE
Tel.: +44 020 7323 2211
www.hm.com
Product range: Ladies, mens, chil-
drenswear
Price segment: lower level
Number of outlets: 96 (expanding)

Leon Allan (Menswear) Ltd. Product range: Menswear

Ciro Citterio House Price segment: Mid-level
40 Vicarage Road, Edgbaston Note: dissolved
GB - Birmingham B15 3EZ

Matalan Retail Ltd. Product range: Ladies, mens, chil-

Gillibrands Road
Skelmersdale
GB - WN8 9TB, West Lancashire
Tel.: +44 169 5552400
www.matalan.co.uk
drenswear
Price segment: mid to upper level
Number of outlets: 190

MANGO (head office in Spain) Product range: Womenswear

Mercaders 9-11 Price segment: Mid-level
P.I. Riera de Caldes Number of outlets: 20 in UK
Apartado de Correos 280
E - 08184 Palau-solit i
Plegamans (Barcelona)
Tel.: +34 93 860 24 24
Fax:+34 93 860 22 07
www.mango.es

QS Familywear PLC Product range: Ladies, mens, chil-

Harbour House drenswear
121 Gardener Road, Portslade Price segment: Lower level (value for
GB - Brighton BN1 IQS money)
Tel.: +44 1273 874444 Number of outlets: 180
Fax: +44 1273 874433
qsplc@co.uk
www.qsgroup.co.uk

231
River Island Clothing Co.
Ltd.
Chelsea House, West Gate
GB - London W5 1DR
Tel.: +44 208 9914500
Fax: +44 208 9914500
www.riverisland.com
Zara
120, Regent Street
GB - London, W1B 5 FE
Tel.: + 44 207 851 43 00
Fax: +44 207 851 43 01
www.zara.com
Department Stores
Debenhams Ltd.
1 Welbeck Street
GB - London W1A 1DF
Tel.: +44 207 408 4444
Fax: +44 207 408 3366
www.debenhams.com
House of Fraser PLC
1 Howick Place
GB - London SW1P 1BH
Tel.: +44 207 963 2000
Fax: +44 207 821 5348
www.houseoffraser.co.uk
John Lewis Partnership Ltd.
John Lewis Department Stores
171 Victoria Street
GB - London SW1E 5NN
Tel.: +44 207 828 1000
Fax: +44 207 592 6333
www.johnlewis.co.uk
www.johnlewispartnership.co.uk
Product range: Ladies and menswe-
ar
Price segment: Mid to upper level
Number of outlets: 200
Product range: Ladies, mens, chil-
drenswear
Price segment: Mid-level
Number of outlets: 42
(Remark: Buying via Spain)
Product range: Ladies, mens and
childrenswear
Price segment: Mid-level
Number of outlets: 117
Product range: Ladies and menswe-
ar
Price segment: Upper level (brand
orientation)
Number of outlets: 51 (under 16
names)
Product range: Sports and
Leisurewear
Price segment: Lower to mid-level
Number of outlets: 27 stores + 169
supermarkets
232
Liberty PLC
Regent Street
GB - London W1B 5AH
Tel.: +44 207 734 1234
Fax: +44 020 7573 9898
www.liberty.co.uk
Littlewoods Shop Direct
Home Shopping Ltd.
Sir John Moores Building
100 Hall Street
GB - Liverpool L70 1AB
Tel.: +44 151 235 2222
www.littlewoods.co.uk
Marks + Spencer Group PLC
Waterside House
35 North Wharf Road
GB - London W21 NW
Tel.: +44 207 935 4422
Fax: +44 207 487 2679
www.marksandspencer.com
Next Retail Ltd.
Desford Road
GB - Enderby Leicester LE19 4AT
Tel.: +44 845 456 7777
Fax: +44 116 284 8998
www.next.co.uk
Woolworths PLC
242/246 Marylebone Road
GB - London NW1 6JL
Tel.: +44 207 262 1222
Fax: +44 207 706 5416
www.woolworths.co.uk
Product range: Ladies and menswear
Price segment: Upper level
Number of outlets: 5
Note: Department Store + mail-order
Product range: Ladies, mens and
childrenswear
Price segment: Lower to mid-level
Number of outlets: 120 + 166 catalo-
gue shops
Product range: Ladies, mens and
childrenswear
Price segment: Mid-level
Number of outlets: 375 stores + over
130 franchising partners
Product range: Ladies, mens and
childrenswear
Price segment: Mid-level
Number of outlets: 400 stores + 43
franchising partners + home shop-
ping
Product range: Childrenswear
Price segment: Lower to mid-level
Number of outlets: 806
233
Manufacturers/Importer and Wholesalers/Importers:

J. Brownleader Ltd. Campari UK Ltd.

49c Oxford Road International House
GB - London W5 3SR Priestly Way Staples Corner
Tel: +44 207 354 2468 GB - London NWW2 7AZ
Fax: +44 207 354 2593 Note: Company in liquidation

Liam David Ltd. County Coats

Coburg House 35 Sefton Street
GB - Liverpool L8 5SL,
Merseyside
Tel.: +44 151 706 0060
Fax: +44 151 706 0661
www.ldl.uk.com
61-75 Alie Street
GB - London E1 8EL
Tel.: +44 207 709 9682
Fax: +44 207 702 2870

Westbridge International Horace Battin + Co. Ltd.

Group Ltd.
Westbridge House
Holland Street, Hyson Green
GB - Nottingham NG7 5DS
Tel.: +44 115 978 2254
Fax: +44 115 942 0547
12, Sheep Street
GB - Wellingborough,
Northamptonshire NN8 1SL
Tel.: +44 933 22 3245
Fax: +44 933 44 2096

Propeller UK Ltd.
A.M.C. House
1a Lower Park
GB - London W3 6XA
Tel.: +44 208 896 8700

Mail Order Companies

Redcats (Brands) Ltd. Product range: Ladies, mens and

(formerly Empire Stores Ltd.) childrenswear
18, Canal Road Price level: Lower level
GB - Bradford B99 4XB W.
Yorkshire
Tel.: +44 1274 72 9544
Fax: +44 1274 76 3816
www.empirestores.co.uk
234
Freemans PLC
Anchor House
Ingleby Road
GB - Bradford, West Yorkshire,
BD98 2XG
Tel.: +44 870 606 6099
www.freemans.com
Great Universal Stores PLC
(GUS)
One Stanhope Gate
GB - London W1K 1AF
Tel.: +44 207 495 0070
Fax: +44 207 495 1567
info@gusplc.com
www.gusplc.com
Grattan PLC
Anchor House, Ingleby Road
GB - Bradford, West Yorkshire,
BD99 2XG
Tel.: +44 870 599 0900
www.grattan.co.uk
JD Williams + Co. Ltd.
Griffin House
40 Lever Street
GB - Manchester M60 6ES
Tel.: +44 870 160 61 00
www.jdwilliams.co.uk
Jeans and Young Fashion Chain
Alexon Group PLC
40 48 Guildford Street
GB - Luton Bds. LU1 2PB
Tel.: +44 1582 72 3131
Fax: +44 1582 399 823
www.alexon.co.uk
Product range: Ladies, mens and
childrenswear
Price level: Lower to mid-level
(value for money)
Product range: Ladies, mens and
childrenswear
Price level: from Lower to upper
level
Note: 12 different mail-order lines
Product range: Ladies, mens and
childrenswear
Price level: Lower to mid-level
Product range: Ladies, mens and
childrenswear
Price level: Mid to lower level
Note: No. 1 in UK with 20 catalogue
brands
Note: part of N. Brown Group PLC
Product range: Mens and ladies
outer- and sportswear
Price segment: Mid-level
Number of outlets: 357 stores + 988
concessions
Note: Manufacturer and retailer
235
Blacks Direct Ltd.
Unit 1, Parkers House Regent
Street
GB - Cambridge CB 2 1DP
Tel.: +44 122 3 314335
www.blacks.co.uk
Product range: Sportswear (outdoor)
Price segment: Mid-level
Number of outlets: 125
Note: belongs to Blacks Leisure
Group plc.

Cromwells Madhouse plc. Product range: Ladies and mens

Fulton Road, Unit 3, Palace of jeans wear
Industry Price segment: Lower to mid-level
GB - Wembley HA9 OTL Number of outlets: 55
Middlesex
Tel.: +44 181 903 5888
Fax: +44 181 903 0303
www.madhouse.co.uk

Gilesports plc Price segment: Upper level (mainly

Fortran Road, St. Mellons brands)
GB - Cardiff CF3 OLT Number of outlets: 50
Tel.: +44 1222 77 44 00
Fax: +44 1222 77 44 01
www.gilesports.com

Paco Life in Colours Product range: Sportswear

Kirkshaws Road Price segment: Mid-level
GB - Coatbridge ML5 4RP Number of outlets: 50
Tel.: +44 1236 44 9066

JJB Sports PLC (formerly Product range: Sportswear

Sports Division) Price segment: Mid-level
Martland Park, Challenge Way Number of outlets: 82
GB - Wigan WN5 0LD,
Lancashire
Tel.: +44 194 2 2101 20
Fax: +44 194 2 210 124

236
French Connection Group
PLC
Head Office
3 Hancock Road
Bromley-by-Bow
GB - London, E3 3DA
Tel.: +44 20 7036 7000
Fax: +44 20 7036 7001
Product range: Stylish sports and
casual wear
Price segment: Mid to upper level
Number of outlets: 430
Note: Largest British retailer for
sportswear

Note: Textile distribution centre

Buying Associations:

Greater Nottingham Note: Purchasing dep. for menswear

Partnership Ltd. in Manchester; for womenswear pur-
3rd Floor, Castle Heights chasing dep. in Mensfield
72 Maid Marian Way
GB - Nottingham NG1 6BJ
Tel.: +44 115 950 2608
Fax: +44 115 946 2173
gernal@gnpartnership.org.uk
www.gnpartnership.co.uk

Co-operative Wholesale Note: Purchasing dep. for menswear

(CWS) Ltd. in Manchester; for womenswear pur-
New Century House P.O.B. 53 chasing dep. in Mensfield
GB - Manchester M60 4ES
Tel.: +44 161 834 1212
Fax: +44 161 834 4507
www.Co-op.co.uk

Intersport G.B. Ltd. Products: (Active) sports- and casual

Tything Road wear
Arden Forest Industrial Estate
GB - Alcester B49 6EP
Warwickshire
Tel.: +44 1789 76 32 72
Fax: +44 1789 76 41 33
www.intersport.co.uk

237
 Outerwear

APPENDIX
I A P P E N D I X

ASSOCIATIONS OF TRADE AGENTS, WHOLESALERS ORGANISATIONS

AND RETAIL ORGANISATIONS IN THE COUNTRIES ANALYSED

E u r o p e :

AEDT 9-13/4th, Avenue des Nerviens

European Association of National B - 1040 Bruxelles
Organisations of Textile Retailers Tel.: +32 2 230 5296
Fax: +32 2 230 2569
www.aedt.org
info@aedt.org

F r a n c e :

FEDERATION NATIONALE DES 46, Bd Magenta

ENTREPRISES A COMMERCES F - 75010 Paris
MULTIPLES Tel.: +33 1 4202 1769
Federation of multiples and Fax: +33 1 4206 5209
department stores (no website)

FEDERATION NATIONALE DES 11, rue Saint-Florentin

GRANDS MAGASINS ET DES F - 75008 Paris
MAGASINS POPULAIRES Tel.: +33 1 42 60 02
National federation of department Fax: +33 1 42 60 15 09
stores (no website)

G e r m a n y :

AUSSENHANDELSVEREINIGUNG DES Mauritiussteinweg 1

DEUTSCHEN EINZELHANDELS eV D - 50676 Kln
(AVE) Tel.: +49 221 921834 0
Foreign Trade Association of German Fax: +49 221 921834 6
Retailers www.ave-koeln.de
info@ave-koeln.de

2
BUNDESVERBAND DES DEUTSCHEN
GROSS- UND
AUSSENHANDELS e.V. (BGA)
Federal Association of German
Wholesalers and Exporters
BUNDESVERBAND
DES DEUTSCHEN TEXTILEINZEL-
HANDELS e. V. (BTE)
Association of German Textile Retailers
BUNDESVERBAND DES DEUTSCHEN
VERSANDHANDELS eV
Association of German Mail Order
Companies
CENTRALVEREINIGUNG
DEUTSCHER WIRTSCHAFTS-
VERBNDE FR HANDELSVER-
MITTLUNG UND VERTRIEB (CDH)
National Association of Trade Agents
VERBAND DER FERTIGWAREN-
IMPORTEURE (VFI)
Association of Non-Food Importers
Am Weidendamm 1 A
D - 10117 Berlin
Tel.: +49 305 900 995 0
Fax: +49 305 900 995 19
www.bga.de
info@bga.de
An Lyskirchen 14
D - 50676 Kln
Tel.: +49 221 921 509 0
Fax: +49 221 921 509 10
www.bte.de
info@bte.de
Johann-Klotz-Str. 12
D - 60528 Frankfurt/M.
Tel.: +49 69 678 656 0
Fax: +49 69 678 656 29
www.versandhandel.org
info@versandhandel.org
Am Weidenbaum 1 A
D - 10117 Berlin
Tel.: +49 30 726 25600
Fax: +49 30 726 25699
www.cdh.de
centralvereinigung@cdh.de
Gotenstrae 21
D - 20097 Hamburg
Tel.: +49 40 236016 16
Fax: +49 40 236016 10
www.vfi-deutschland.de
info@vfi-deutschland.de
3
I t a l y :
CAMERA NAZIONALE DELLA MODA
ITALIANA
National Fashion Organisation
FEDERAZIONE NAZIONALE ASSOCIA-
ZIONI AGENTI E RAPPRESENTANTI DI
COMMERCIO
National Organisation of Trade Agents
and Representatives
FEDERAZIONE NAZIONALE
DETTAGLIANTI TESSILI E
ABBIGLIAMENTO
National Organisation of Textile and
Clothing Retailers
FEDERAZIONE MODA ITALIA
Italian Fashion Organisation
SISTEMA MODA ITALIA (SMI)
Association of Italian Textile and
Clothing Industry
V. Morone Gerolamo 6
I - 20121 Milano (MI)
Tel.: +39 (0) 2 777 1081
Fax: +39 (0) 2 777 10851
www.cameramoda.it
e-mail on the website
Corso Venezia, 51
I - 20121 Milano
Tel.: +39 (0) 2 764 5191
Fax: +39 (0) 2 7600 8493
www.fnaarc.it
info@fnaarc.it
Via Palestro, 24
I - 20121 Milano
Tel.: +39 (0) 2 7601 5212
Fax: +39 (0) 2 7600 3779
(no website)
Corso Venezia, 26
I - 20121 Milano
Tel.: +39 (0) 2 76015212
Fax: +39 (0) 2 76003779
www.federazionemodaitalia.it
info@federazionemodaitalia.it
Viale Sarca, 223
I - 20126 Milano
Tel.: +39 (0) 2 641191
Fax: +39 (0) 2 66103667/70
www.sistemamodaitalia.it
info@sistemamodaitalia.it
4
S p a i n :

ASOCIACION DE COMERCIO C. Alberto Aguilera 66 1-DCHA

TEXTIL - ACOTEX E - 28015 Madrid
Association of Textile Trade Tel.: +34-91-549 2397
Companies in the Region of Madrid Fax: +34-91-549 9256
www.acotex.org
info@acotex.org

ASOCIACION ESPANOLA DE IMPOR- Lagasca 27-2 A

TADORES Y DISTRIBUIDORES DE E - 28001 Madrid
MODA (ANIMODA) Tel.: +34-91-4352 805
Association of Fashion Importers and Fax: +34-91-5761-735
Wholesalers www.animoda.org

CONSEJO INTERTEXTIL ESPANOL Gran Via 670

(CIE) E - 08010 Barcelona
Spanish International Textile Tel.: +34-93-318 9200
Association Fax: +34-93-302 6235
www.aitpa.es
aitpa@aitpa.es

GREMI DE COMERC TEXTIL Diputaci 290 pral.

I SASTRERIA E - 08009 Barcelona
Trade Association for Textile and Tel.: +34-933-017980
Clothing Fax: +34-933-018720
agtc@bcn.servicom.es

SECRETARIA GENERAL Paeso de la Castellana 162

DE COMERCIO EXTERIOR E - 28071 Madrid
General Secretary of Foreign Trade www.mcx.es
Buzon.Oficial@secgcomex.sscc.
mcx.es

5
S w i t z e r l a n d :
SWISS FASHION STORES
Association of Fashion retailers
c/o KPMG Fides - Hofgut
SWISS RETAIL FEDERATION
Federation of retailers
VSF VERBAND SCHWEIZERISCHER
FILIALUNTERNEHMEN
Federation of Swiss Chain Stores -
c/o Advokaturbro Utzinger
VSIG VEREINIGUNG DES
SCHWEIZER IMPORT- UND
GROSSHANDELS
Association of Swiss Importers and
Wholesalers
VSV VERBAND DES
SCHWEIZERISCHEN
VERSANDHANDELS
Federation of Swiss Mail Order
Companies
CH - 3073 Gmlingen
Tel.: +41-31-384 77 04
Fax: +41-31-384 76 36
www.swiss-fashion-stores.ch
office@swiss-fashion-stores.ch
Marktgasse 50
CH - 3000 Bern 7
Tel.: +41-31-312 40 40
Fax: +41-31-312 40 41
www.swiss-retail.ch
info@swiss-retail.ch
Frohburgstr. 98
CH - 8006 Zrich
Tel.: +41-44-363 14 00
Fax: +41-44-363 15 25
www.vsf-schweiz.ch
vsf@ku-law.ch
Gterstr. 78
CH - 4010 Basel
Tel.: +41-61-228 90 30
Fax: +41-61-228 90 39
www.vsig.ch
info@vsig.ch
Brandenbergstr. 30
CH - 8304 Wallisellen
Tel.: +41-44-830 16 02
Fax: +41-44-830 16 08
www.vsv-versandhandel.ch
info@vsv-versandhandel.ch
6
U n i t e d K i n g d o m :
BRITISH AGENTS REGISTER
BRITISH FASHION COUNCIL
BRITISH MENSWEAR GUILD
BRITISH SHOPS AND STORE
ASSOCIATION Ltd. (BSSA)
24 Mount Parade
Harrogate
GB - North Yorkshire HG1 1BP
Tel.: +44-1423-560608/9
Fax: +44-1423-561204
www.agentsregister.com
info@agentsregister.com
5 Portland Place
GB - London, W1B 1PW
Tel.: +44-20-7636 7788
Fax: +44-20-7636 7515
www.londonfashionweek.co.uk
bfc@dial.pipex.com
5 Portland Place
GB - London, W1B 1PW
Tel.: +44-20-7580 8783
Fax: +44-20-7436 8833
www.british-menswear-guild.co.uk
director@british-mens-wear-
guild.co.uk
Middleton House
2 Main Road
Middleton Cheney
GB - Banbury Oxon OX17 2TN
Tel.: +44-1295-712277
Fax: +44-1295-711665
www.british-shops.co.uk
info@bssa.co.uk
7
II A P P E N D I X

INDUSTRY FEDERATIONS IN SWITZERLAND AND EU-COUNTRIES

F r a n c e :

UNION FRANCAISE DES 8, rue de Montesquieu

INDUSTRIES DE LHABILLEMENT F - 75001 Paris
(UFIH) www.lamodefrancaise.org
French Association of ladies, mens secretariatufih@lamodefrancai-
and childrens wear manufacturers se.org

UNION DES INDUSTRIES TEXTILES 37/39, rue de Neuilly

(UIT) F - 92110 Clichy
Tel.: +33 1 4756 3100
Fax: +33 1 4730 2528
www.textile.fr
admin@textile.fr

G e r m a n y :

BUNDESVERBAND DER Mevissenstr. 15

BEKLEIDUNGSINDUSTRIE eV (BBI) D - 50668 Kln
Federal Clothing Industry Federation Tel.: +49 221 7744 110
Fax: +49 221 7744 118
www.bbi-online.de
bbi@bbi-online.de

GESAMTVERBAND DER Frankfurter Str. 10-14

TEXTILINDUSTRIE GESAMTEXTIL EV
National Association of Textile
Industry
D - 65760 Eschborn
Tel.: +49 6196 966-0
Fax: +49 6196 42170
www.textile-online.de
info@textil-mode.de

8
I t a l y :
FEDERTESSILE
Textile Industry Federation
S p a i n :
AITPA
National Association of Textile
Industry
ASOCIACIN ESPAOLA DE
CONSTRUCTORES DE MAQUINARIA
TEXTIL Y DE CONFECCION
Association of Spanish Knitwear and
Ready-to-Wear Manufacturers
CENTRAL DE INFORMACION Y DIS-
ENO INDUSTRIAL TEXTIL (CIDIT)
Information Centre for the Spanish
Textile Industry
S w i t z e r l a n d :
SCHWEIZERISCHER
MODEGEWERBE-VERBAND
Swiss Association of the Fashion
Industry
Viale Sarca 223
I - 20126 Milano
Tel.: +39 (0) 2-6610 3440
Fax: 39 (0) 2-6610 3455
Gran Via
de les Corts Catalanes, 670
E - 08010 Barcelona
Tel.: +34-93-318 92 00
Fax: +34-93-302 62 35
www.aitpa.es
aitpa@aitpa.es
Riera Sant Miquel 3
E - 08006 Barcelona
Tel.: +34-934-150 422
Fax: +34-934-160 980
www.amec.es/amtex
amtex@amec.es
Paris 184, 4 - 1
E - 08306 Barcelona
Tel.: +34-93-4155 051
Fax: +34-93-2373 822
www.aprendemas.com
Gutenbruennenweg 23
CH - 3125 Toffen
Tel.: +41-31-819 52 17
Fax: +41-31-819 52 87
www.sgv-usam.ch
info@sgv.usam.ch
9
SWISSFASHION GESAMTVERBAND
DER SCHWEIZERISCHEN
BEKLEIDUNGSINDUSTRIE
Swiss Clothing Manufacturers
Association
U n i t e d K i n g d o m :
BRITISH TEXTILE CONFEDERATION
THE BRITISH CHAMBERS OF
COMMERCE
CONFEDERATION OF BRITISH WOOL
TEXTILES
Beethovenstrasse 20
CH - 8022 Zrich
Tel.: +41-44-289 79 79
Fax: +41-44-289 79 80
www.swisstextiles.ch
zuerich@swisstextiles.ch
5, Portland Place
GB - London W1N 3AA
Tel: +44-171-636 7788
Fax: +44-171-636 7515
www.batc.co.uk
batc@dial.pipex.co.uk
65 Petty France
St James Park
GB - London SW1H 9E4
Tel.: +44-20-7654 5800
Fax : +44-20-7654 5819
www.britishchambers.org.uk
info@britishchambers.org.uk
Merrydale House - Roydsdale
Way
GB - Bradford BD4 6SB
Tel.: +44-1274 652207
Fax: +44-1274 682293
www.cbwt.co.uk
info@cbwt.co.uk
10
III A P P E N D I X

MAJOR EUROPEAN TRADE FAIRS

F r a n c e :

FATEX - Paris 37/39, rue de Neuilly BP 121

organised by: F - 92582 Clichy Cedex
PROFATEX SA Tel.: +33 1 4730 5494
Fax: +33 1 4730 9450
www.fatex.fr
info@fatex.fr

INTERSELECTION Paris Rue de Neuilly

organized by:
Interslection Groupe Eurovet
F - 92113 Clichy Cedex
Tel +33 1 4756 3232
Fax: +33 1 4756 3299
www.interselection.net
interselection@la-federation.com

PREMIERE VISION Paris Le Britannia Batiment A20

(Textile Fabrics Fair) Bld. Eugne Deruelle
organised by: F - 69432 Lyon Cedex 3
Premire Vision Tel.: +33 4 7260 6500
Fax: +33 4 7260 6509
www.premierevision.fr
info@premierevision.fr

KIDS FASHION MODE ENFANTINE 999 che d'Alsemberg

Kids Fahion Fairs in Paris and Brussels
organized by Kid's Fashion Mode
Enfantine SA/NV
B - 1180 Brussels
Tel.: +32 2 376 5747
Fax: +32 2 332 0880
www.kidsfashionfairs.com
visitorskids@bff.be

SALON DU PRET A PORTER PARIS 5, rue Caumartin

French association of Prt Porter F - 75009 Paris
Tel.: +33 1 4494 7000
Fax: +33 1 4494 7002/7004
www.pretparis.com
info@pretparis.com

11
WHOS NEXT URBAN SHOW SA. 23, rue du Mail
F - 75002 Paris
Tel.: +33 140 13 74 74
Fax: +33 140 13 74 84
www.whosnext.com
info@whosnext.com

G e r m a n y :

CPD WOMAN/MAN incl. GLOBAL Stockumer Kirchstr. 61

FASHION D - 40474 Dsseldorf
organised by: Tel.: +49 211 4396 01
IGEDO Internationale Modemesse Fax: +49 211 4396 345
Kronen GmbH & Co.KG www.igedo.com
info@igedo.com

ISPO Munich Messegelnde

(Active Sportswear) D - 81823 Mnchen
organised by: Tel.: +49 89 949 11388
Messe Mnchen GmbH Fax: +49 89 949 11389
www.ispo.com
ispo@messe-muenchen.de

KIND + JUGEND Cologne Messeplatz 1

organised by: D - 50679 Kln
KlnMesse GmbH Tel.: +49 221 821 0
Fax: +49 221 821 2574
www.koelnmesse.de
info@koelnmesse.de

BREAD AND BUTTER Mnzstrasse 13

Trade fair for selected brands in Berlin
and Barcelona
BREAD & butter GmbH Headquarter:
D - 10178 Berlin
Service Hotline (Accreditation +
Tickets): +49 30 2000 370
Tel.: +49 30 400 44 0
(Headquarter)
Fax: +49 30 400 44 101
www.breadandbutter.com
info@breadandbutter.com

12
I t a l y :

IDEACOMO Cernobbio Via Regina, 40

organised by: I - 22012 Cernobbio
Ente Fieristico IDEACOMO Tel.: +39 (0) 31 513312
Fax: +39 (0) 31 340022
www.ideacomo.com
ideacomo@ideacomo.com

MODAPRIMA Milano Viala Sarca 223

organized by: I - 20126 Milano
EFIMA Ente Fiere Italiane aglieria e Tel.: +39 (0) 2 661 631
Abbigliamento Fax: +39 (0) 2 6610 1638
www.modaprima.it
info@modaprima.it

PITTI BIMBO Florence Via Faenza 111

organised by: I - 50123 Florence
Pitti Immagine srl Tel.: +39 (0) 55 36931
Fax: +39 (0) 55 3693200
www.pittimmagine.com
bimbo@bittimmagine.com

PITTI UOMO Florence Via Faenza 111

organised by: I - 50123 Florence
Pitti Immagine srl Tel.: +39 (0) 55 36931
Fax: +39 (0) 55 3693200
www.pittimmagine.com
uomo@bittimmagine.com

S p a i n :

FIMI Valencia Avenida de las Ferias

organised by: E - 46035 Valencia
Feria Valencia Tel.: +34-963-861100
Fax: +34-963-635111
www.feriavalencia.com
feriavalencia@feriavalencia.com

MODA BARCELONA Av. Reina Maria Cristina

organised by: E - 08004 Barcelona
Fira de Barcelona Tel.: +34-93-2332000
www.modabarcelona.com
moda@modabarclona.com

13
SIMM (Int. Fashion Week) Madrid Apdo. De Correros 67.067
organised by: E - 28080 Madrid
Parque Ferial Juan Carlos I Tel.: +34-91-7225000
Fax: +34-91-7225799
www.simm.ifema.es
simm@ifema.es

U n i t e d K i n g d o m :

MODA UK Birmingham Tel.: +44-1484-846069

organised by: Fax: +44-1484-846232
ITE Moda Ltd. www.moda-uk.co.uk
info@moda-uk.co.uk

PRIMA Harrogate London Kings Road, Harrogate, North

(Lingerie, Swimwear and Bridal Wear) GB - Yorkshire, HG1 5LA
organised by: Tel.: +44-1423-500500
Harrogate International Centre Fax: +44-1423-537210
www.harrogateinternationalcen-
tre.co.uk, sales@harrogateinter-
nationalcentre.co.uk

UK PURE WOMENSWEAR LONDON 33-39 Bowling Green Lane

(all kinds of womens wear and GB - London, EC1R 0DA
fashion accessories) Tel.: +44-20-7812-3700
organised by: Fax: +44-20-7812-3710
Emap Retail www.purewomenswear.co.uk
info@emap.com

PREMIER KIDS BIRMINGHAM 33-39 Bowling Green Lane

organised by: GB - London, EC1R 0DA
Emap Retail Tel.: +44-20-7812-3700
Fax: +44-20-7812-3710
www.purewomenswear.co.uk
info@emap.com

Remark: Comprehensive information about all

European and international fairs can be
collected from the internet site: www.auma.de

14
IV A P P E N D I X

EUROPEAN TRADE MAGAZINES

F r a n c e :

Name of Magazine Publication Circulation Contents

schedule

JOURNAL DU TEXTILE Weekly 18,000 Textile and

Edition Hennessen SA clothing retail
61, rue de Malte
F - 75541 Paris Cedex 11
Tel.: +33 1 4357 2189
Fax: +33 1 4700 0835
www.journaldutextile.com
contact@journaldutextile.com

G e r m a n y :

Name of Magazine Publication Circulation Contents

schedule

FASHION TECHNICS 2 times/month 7,500 Fashion and

Lpertzenderstr. 159 Textile Industry
D - 41061 Mnchengladbach
Tel.: +49 2161 244244
Fax: +49 2161 244241
www.fashion-technics.de
brief@fashion-technics.de

KLAR-TEXT Weekly on 2,500 Textile and

Das Klarsche Textilarchiv Mondays Special edition specialized retail
GmbH once per year and industry
Thann 28 6,700 Retail and
D - 83098 Brannenburg Clothing
Tel.: +49 8034 8686 Addresses
Fax: +49 8034 8001
www.klartext.de
info@klartext.de

15
Name of Magazine Publication Circulation Contents
schedule

SAZ Sportartikel Zeitung 2 times/month 10,000 Trade, sports

SAZ Verlag GmbH articles
Postfach 260246
D - 80059 Mnchen
Tel.: +49 89 2121 1090
Fax: +49 89 2121 1077
www.saz.de
saz@saz.de

SPORTSWEAR 6 times/year 21,500 Trade, jeans and

INTERNATIONAL sportswear
Deutscher Fachverlag GmbH
Mainzer Landstr. 251
D 60326 Frankfurt/Main
Tel.: +49 69 7595 - 2662
Fax: +49 69 7595 - 2660
www.dfv.de info@dfv.de

TM Fashion Trend Weekly 29,000 Textile and

Magazine clothing trade
Branche & Business
Fachverlag GmbH & Co.KG
Knigsallee 70
D - 40212 Dsseldorf
Tel.: +49 211 8 3030
Fax: +49 211 324862
www.tm-fashion-portal.de
info@textilmitteilungen.de

TW Textilwirtschaft Weekly 42,000 Textile and

Deutscher Textilverlag GmbH clothing trade
Mainzer Landstr. 251 and industry
D - 60326 Frankfurt
Tel.: +49 69 7595 01
Fax: +49 69 7595 1399
www.Twnetwork.de
info@TWnetwork.de

16
 I t a l y :

Name of Magazine Publication Circulation Contents

schedule

FASHION Weekly 18,000 Textile sector,

Edizioni Ecomarket Spa sports fashion
Corso Venezia 26
I - 20121 Milano
Tel.: +39 (0) 2 7600 7371
Fax: +39 (0) 2 78 3012
www.fashionmagazine.it
redazione@fashionmagazine.it

MODA BIMBI 2 times/year 100,000 Babies and

Ed. Moderne Internazionali childrens wear,
Via Burlamacchi 11 focus on trade
I - 20135 Milano
Tel.: +39 (0) 2 5518 9297
Fax: +39 (0) 2 546 5954
modabimbi@email.it

MODASPORT VACANZE Every 3 46,000 Sport and

Acalifa Srl months Cacation Sports
Palazzina S. Rocco International
Via S. Rocco 17
I - 20135 Milano
Tel.: +39 (0) 2 5831 5800
Fax: +39 (0) 2 5831 6313
www.infodataitaly.com
esabbat@tin.it

DONNA COLLEZIONI 4-6 times/year App. 50,000 Sports fashion,

UOMO COLLEZIONI BAM- retail, industry,
BINI COLLEZIONI consumer
Zanfi.editori@mo.nettuno.it

17
 S p a i n :

Name of Magazine Publication Circulation Short

schedule description

DIRECTORIO SECTORIAL 4 times/year 10,000 Clothing industry,

N.S.I. distribution, retail
C/Escultor Peresejo, 70 1a
E - 28023 Aravaca (Madrid)
Tel.: +34-91-740 1708
Fax: +34-91-307 1972
dsmoda@readysoft.es

TEXTIL EXPRES 4 times/year 5,500 Industry, retail

Aramo Editorial
Muntaner 50, Atico 3a
E - 08011 Barcelona
Tel.: +34-93-453 7938
Fax: +34-93-323 7926
aramo@docupress.es

NINSMODA 4 times/year 5,000 Childrens and

Ediciones Esfer young fashion,
Consell de Cent, 383-5 1a Retail,
E - 08009 Barcelona wholesale
Tel.: +34-93-488 1820
Fax.+34-93-215 0039
www.modainfantil.net
ninsmoda@modainfantil.net

PINKER MODA Monthly 6,250 Textile industry

Ediciones Tecnicas Doria SA
Paseo de Gracia, 44-2
E - 08007 Barcelona
Tel.: +34-93-467 1212
Fax: +34-93-488 3012
www.miramedios.com
info@data-red.com

18
 S w i t z e r l a n d :

Name of Magazine Publication Circulation Contents

schedule

MITTEX - SVT Zrich 6 times/year 3,000 Professional

Schweizerische Vereinigung magazine for
von Textilfachleuten SVT the textile and
c/o Gertsch Consulting knitting industry
Postfach 1107
CH-4800 Zofingen
Tel.: +41 62 751 26 39
Fax: +41 62 751 26 37
www.mittex.ch
svt@mittex.ch

SCHWEIZER SPORT UND Once a month 3,000 Sports and

MODE leisure wear
MS Dienstleistungen AG industry
rgelackerstrasse 4
CH-8707 Uetikon am See
Tel.: +41 44 920 79 40
Fax: +41 44 920 79 41
www.sportbiz.ch
info@sportbiz.ch

TEXTIL-REVUE Once a week 8,500 Textile and

Frstenlandstr. 122 clothing industry
CH - 9001 St. Gallen
Tel.: +41 71 272 77 77
Fax: +41 71 272 74 49
www.textil-revue.ch
redaction@textil-revue.ch

19
 U n i t e d K i n g d o m :

Name of Magazine Publication Circulation Contents

schedule

CWB Childrens Wear Buyer 4 times/year 4,500 Childrens wear,

Magazine retail
National Childrens Wear
Association
5 Portland Place
GB-London W 1B 1 PW
Tel.: +44 20 7631 5445
Fax: +44 20 7631 3443
www.ncwa.co.uk
enquiries@ncwa.co.uk

DRAPERS Weekly 19,568 No. 1 of textile

DR The fashion Business publications
EMAP Business Publishing in GB
Angel House
338-346 Goswell Rd.
GB - London EC1V 7QP
Tel.: +44 20 7520 1500
Fax: +44 20 7520 1501
www.drapersonline.com

FW Weekly 8,800 Retail, industry

EMAP Fashion
Angel House
338-346 Goswell Rd.
GB - London EC1V 7QP
Tel.: +44 20 7520 1500
Fax: +44 20 7520 1501
www.emap.co.uk
information@emap.com

MENSWEAR 2 times/month 8,429 Retail

EMAP Fashion
Angel House
338-346 Goswell Rd.
GB - London EC1V 7QP
Tel.: +44 20 7520 1500
Fax: +44 20 7520 1501
www.emap.co.uk
clairer@fashion.emap.co.uk

20
V A P P E N D I X
TRADE PROMOTION ORGANISATIONS IN EUROPE
CBI CENTRUM TOT BEVORDERING
VAN DE IMPORT UIT
ONTWIKKELINGSLANDEN
Centre for the Promotion of Imports
from Developing Countries
DIPO
Danish Import Promotion Office
Boersen
GTZ - Gesellschaft fr technische
Zusammenarbeit
German Organisation for Technical
Cooperation
INTERNATIONAL TRADE CENRE
UNCTAD/WTO (ITC)
NORAD
Norwegian Agency for Development
Cooperation
SIDA
Swedish International Development
Cooperation Agency
WTC-Beurs Building, Beursplein 37
P.O.Box 30009
NL - 3001 DA Rotterdam
Tel.: +31 10 2013 434
Fax: +31 10 4114 081
www.cbi.nl, cbi@cbi.nl
DK - 1217 Copenhagen K
Tel.: +45 33 950 500
Fax: +45 33 120 525
www.dipo.dk
dipo@commerce.dk
Dag-Hammerskjld-Weg 1-5
D - 65726 Eschborn
Tel: +49 6196 796 000
Fax: +49 6196 797 414
www.gtz.de
info@gtz.de
Palais des Nations
CH - 1211 Geneva 10
Tel : +41 22 730 0111
Fax : +41 22 733 4439
www.intracen.org
itcreg@intracen.org
Ruselokkveien 26
Postbox 8034
N - 0030 Oslo
Tel.: +47 22 24 20 30
Fax: +47 22 24 20 31
www.norad.no
firmapost@norad.no
Sweavagen 20
Postbox 3144
S - 10525 Stockholm
Tel.: +46 8 698 5000
Fax: +46 8 208864
www.sida.se
info@sida.se
21
VI A P P E N D I X

IMPORTANT ADDRESSES FOR ENVIRON-MENTAL AND SOCIAL ISSUES

CBI CENTRUM TOT BEVORDERING WTC-Beurs Building

VAN DE IMPORT UIT ONTWIKKE-
LINGSLANDEN
Centre for the Promotion of Imports from
Developing Countries
Beursplein 37
P.O.Box 30009
NL 3001 DA Rotterdam
Tel.: +31 10 2013 434
Fax: +31 10 4114 081
www.cbi.nl, cbi@cbi.nl
www.cbi-accessguide
(internet guide to European-
wide ecological questions)

COMMISSION OF THE EUROPEAN Rue de la Loi 200

COMMUNITIES B - 1049 Brussels
DG XI A 2 Tel.: +32 2 2990344
Fax: +32 2 2990313
www.europa.eu.int

FORSCHUNGSINSTITUT HOHENSTEIN Schlo Hohenstein

(measurement tables and D - 74357 Bnningheim
ecological issues) Tel.: +49 7143 2710
Fax: +49 7143 2715
www.hohenstein.de
info@hohenstein.de

INSTITUT FRESENIUS GRUPPE Im Maisel 14

(product testing) D - 65232 Taunusstein-Neuhof
Tel.: +49 6128 744155
Fax: +49 6128 744201
www.fresenius.com
info@fresenius.com

22
Contact points for the koTex 100 hallmark :

DEUTSCHE ZERTIFIZIERUNGSSTELLE Frankfurter Str. 10-14

KO-TEX D - 65760 Eschborn
Tel.: +49 6196 966230
Fax: +49 6196 966226
www.oeko-tex.com
info@oeko-tex.com

TESTEX Gotthardstr. 61
Swiss Institute for Textile Testing CH - 8027 Zrich
International Secretary of the Tel.: +41 1 206 42 35
Oeko-Tex Association Fax: +41 1 206 42 51
www.oeko-tex.com
info@oeko-tex.com

TV RHEINLAND Am Grauen Stein

BERLIN BRANDENBURG D - 51105 Kln
(all kinds of safety and quality testing) Tel.: +49 221 806 2151
Fax: +49 221 806 3406
www.tuv.com
webmaster@tuv.com

23
VII A P P E N D I X

SOURCES OF INFORMATION

E u r o p e :

AEDT 9-13/4th Avenue des Nerviens

(European Association of National B - 1040 Bruxelles
Organisations of Retailers) Tel.: +32 2 230 5296
Fax: +32 2 230 2569
www.aedt.org
info@aedt.org

EUROSTAT Btiment Joseph Bech

(Statistical office of the European 5, rue Alphonse Weicker
Union) L - 2721 Luxembourg
europa.eu.int/comm/eurostat

EURATEX 24, rue Montoyer

(European Apparel and Textile B - 1000 Bruxelles
Organisation) Tel.: +32 2 285 4892
Fax: +32 2 230 6054
www.euratex.org
info@euratex.org

F r a n c e :

CENTRE TEXTILE DE CONJONCTURE 37-39, rue de Neuilly BP 249

ET DOBSERVATION ECONOMIQUE F - 92113 Clichy
(CTCOE) Tel.: +33 1 4756 3030
Centre for the Observation of Fax: +33 1 4756 3016
Economic Development ifm@ifm-paris.org

24
G e r m a n y :
Bfai BUNDESAGENTUR FR
AUSSENWIRTSCHAFT
(foreign trade information Germany
and EU)
BUNDESAMT FR WIRTSCHAFT
(BAW)
(German Economic Office)
STATISTISCHES BUNDESAMT
(German Statistical Office)
I t a l y :
INSTITUTO NAZIONALE DI STATISTICA
(ISTAT)
(National Statistical Office)
MARKET STUDY CLOTHING SECTOR
DATABANK
Sede Centrale
Agrippastr. 87-93
D - 50445 Cologne
Tel.: +49 221 205 7000
Fax: +49 221 205 7212
www.bfai.de
webkontakt@bfai.de
Frankfurter Str. 29 31
D - 65760 Eschborn
Tel.: +49 6196 908-0
Fax: +49 6196 908-800
www.bafa.de
Gustav Streesemann Ring 11
D - 65189 Wiesbaden
Tel.: +49 611 752405
Fax: +49 611 753330
www.destatis.de
info@destatis.de
Via Cesare Balbo, 16
I - 00100 Roma
Tel.: +39 (0) 6-46 73 1
www.istat.it
info@istat.it
Via dei Piatti, 11
I - 20123 Milano
Tel.: +39 (0) 2-80 95 56
Fax: +39 (0) 2-80 56 495
www.databank.it
info@databank.it
25
S p a i n :

CENTRO DE INFORMACIN TEXTIL C./Rosellon, 216-5 E

Y DE LA CONFECCION (CITYC) E - 08008 Barcelona
Tel.: +34-93-4876 949
Fax: +34-93-4872 362
www.cityc.es

ECONMICO Y SOCIAL DE ESPAA C/Huertas 73

(Economic and Social Council of E - 28014 Madrid
Spain) Tel.: +34-91-429 0018
(Direccin de Relaciones Fax: +34-91-429 4257
Institucionales y Publicaciones) www.ces.es

INSTITUTO NACIONAL DE Paseo de la Castellana 183

ESTADSTICA E - 28071 Madrid
(National Statistical Office) Tel.: +34-91-583 9100
Fax: +34-91-5839158
www.ine.es

SECRETARIA GENERAL DE P de la Castellana 14-16

COMMERCIO EXTERIOR E - 28046 Madrid
(Secretary for External Commercial Tel.: +34-91-349 6100
Affairs) Fax: +34-91-431 6128
www.icex.es

S w i t z e r l a n d :

SARTEX Beethovenstr. 20
(Swiss Association for Textile Marking) CH - 8022 Zrich
Tel.: +41 44 289 79 49
Fax: +41 44 289 79 38
www.sartex.ch

26
SWISS ASSOCIATION FOR
STANDARDIZATION (SNV)
TESTEX Schweizer Textilprfinstitut
(Swiss Institute for Textile Testing)
TMC - TEXTIL UND MODE CENTER
ZRICH
Fashion Center
U n i t e d K i n g d o m :
EIU -
ECONOMIST INTELLIGENCE UNIT
TAYLOR NELSON SOFRES plc.
Market Research
TEXTILE OUTLOOK INTERNATIONAL
Brglistr. 29
CH - 8400 Winterthur
Tel.: +41-52-224 54 54
Fax: +41-52-224 54 74
www.snv.ch
info@snv.ch
Gotthardstr. 61
CH - 8027 Zrich
Tel.: +41 44- 206 42 42
Fax: +41 44 206 42 30
www.testex.ch
contact@testex.ch
Talackerstr. 17
CH - 8152 Glattbrugg
Tel.: +41-43-211 59 20
Fax: +41-43-211 59 29
www.tmc.ch
contact@tmc.ch
15, Regent Street
GB - London SW1Y 4LR
Tel.: +44 20 7830 1007
Fax: +44 20 7830 1023
www.eiu.com
london@eiu.com
Westgate
GB - London W5 1UA
Tel.: +44-20-8967 0007
Fax: +44-20-8967 4060
www.tnsofres.com
research@tnsofres.com
c/o Textiles Intelligence Ltd.
10 Beech lane
GB - Wilmsloe SK9 5ER
Tel.: +44 1625 536136
Fax: +44 1625 536137
www.textilesintelligence.com
subscriptions@textilesintelli-
gence.com
27
DOING
BUSINESS
in Switzerland and the EU

Requirements
for Access
 Doing Business in Switzerland and the EU Requirements for Access

1 MARKET ACCESS

1.1 QUALITY AND STANDARDS IN SWITZERLAND AND THE EU 3

1.2 PACKAGING, SIZE MARKING AND LABELLING 5

1.3 TRADE RELATED ENVIRONMENTAL 18

AND SOCIAL ISSUES

1.4 PRESENT TRADE REGULATIONS 23

1.5 IMPLICATIONS AFTER THE ELIMINATION OF THE 28

TEXTILES QUOTA

2
1 MARKET ACCESS
1.1 QUALITY AND STANDARDS
IN SWITZERLAND AND THE EU
The application of the European
Norms (EN) in the 25 EU and the 3
EFTA countries (including Switzer-
land) is the basis of a liberal intra-
European trade and is valid in all
28 countries (more details:
www.cenorm.be).
However, there are no general EU
or Swiss standards for garments.
The rule is that importers in EU
countries as well as in Switzerland
generally fulfil the minimum quality
requirements regarding material
and making. The technical com-
mittee of the European Clothing
Association (ECLA) has published
an example of recommendations
for manufacturers of knitted and
woven clothing. Within these
recommendations ECLA, where
Switzerland as well as the EU 15
countries hold a membership
(please compare www.iafnet.
org/html/iafwebsites.htm) makes
a difference between:
- Recommendations concerning
the characteristics of product
which could be detected by an
experienced person with-
without aid of instruments in-
general use. A fault is located if
the irregularity is evident in the
fabrics as it was delivered or in
the final product
- Recommendations concerning
the characteristics of fabrics,
which could be only recovered
with the help of appropriate
equipment. Description of each
characteristic includes definiti
on, testing method, minimum
quality standards and (if neces
sary) possible allowable toleran
ces compared with measure
ments of the sample.
Testing methods for clothing are
usually based on the ISO stan-
dards for Switzerland (www.iso.
ch) or they can also suit the requi-
rements of European norms (EN)
or national standards of the EU
member states (such as DIN, SIS,
BS). ISO is made up of its mem-
bers. A member body of ISO is the
national body most representati-
ve of standardization in its coun-
try. Only one such body for each
country is accepted for member-
ship of ISO. Member bodies are
entitled to participate and exerci-
se full voting rights on any techni-
cal committee and policy commit-
tee of ISO. The member body of
ISO in Switzerland is Swiss
Association for Standardization
(SNV) (more details can be taken
from www.snv.ch). ISO norms are
also applied in Switzerland.
3
The major standards for quality
and grading standards in the EU
and Switzerland are the following:
- for care labelling - ISO 3758
- for dimensional stability - DIN
53894 (steaming), DIN 54311
(fusing), ISO 3759/5077/6330
(washing/tumbling), ISO 3175
(dry cleaning)
changed over to international
standards over the last twenty
years. In order to counteract pos-
sible discrimination against the
Swiss clothing industry because
of the countrys non-membership
in the EU, Switzerland has accep-
ted various EU-norms and refe-
rences within the framework of
national legislation.

- for physical properties - ISO

5081 (tensile strength strip), ISO
5082 (tensile strength grab),
ISO 9290 (tear strength), BS
3320 (seam slippage), EN
22313 (abrasion resistance),
ISO 9876 (crease tendency/
recovery), BS 5811 (pilling ten-
dency), SIS 650047 (fibre pene
tration), EN 24920 (spray test)
etc.

- for colourfastness to washing,

light, water and other external
influences - ISO 105

Although the EU attempts to acti-

vate free trade based on the har-
monization of product require-
ments, each EU member state
and Switzerland has its own natio-
nal market for apparel with its
respective requirements concer-
ning quality, type of clothing,
colour, fabric, size etc.

Swiss norms are progressively

disappearing due to the appea-
rance of international norms.
Following requirements inherent
to globalisation, Swiss industry has
4
1.2 PACKAGING, SIZE MAR-
KING AND LABELLING
Packaging
Care must be given to the packa-
ging of products if one intends to
export to EU countries and
Switzerland. Packaging must be
travel-steady, it must protect the
product against environmental
influences, theft, rough handling
etc.
As well as these basic demands,
some importers may have speci-
fic demands concerning packa-
ging, such as printing information
about the order on the boxes
(order number, quantity, product
number, product description etc.).
Some materials like PVC are less
popular or even forbidden in some
countries because of environ-
mental issues, and exporters
should discuss this matter with
potential clients and include the
cost of the special price in their
wholesale price, if required.
The EU has issued a Directive on
packaging and packaging waste
(94/62/EC) that is applicable, to a
large extent, to Switzerland as
well. Among other measures, the
Directive sets maximum levels of
concentrations of heavy metals in
packaging and describes require-
ments specific to manufacturing
and composition of packaging.
The Directive needs to be trans-
posed to the national legislation of
the member states.
Since the last market survey
dated 2002, it has become
increasingly difficult and expensive
to dispose of waste in Europe. In
principle, the importer is held
responsible for disposal of the
packaging waste for all goods
from outside the EU. It is therefore
crucial, when planning exports to
the EU, to take the packaging of
your products (both sales packa-
ging and transport packaging) into
consideration. To fulfil the require-
ments of the target market, clear
communication with the importer
about packaging is highly recom-
mended.
Most of the previous systems,
such as the German packaging
waste programme the Green
Dot - where trade and industry in
Germany and other EU countries
were obliged to take back packa-
ging materials - have lost impor-
tance over the last 2-3 years,
mainly because of misuse of the
green dot which appeared almost
on every imported packaging wit-
hout an obligation to take back
the packaging.
New legislation about wood pak-
kaging has recently been introdu-
ced. More detailed information
about packaging techniques and
the use of packaging materials
can be found on the website of
ITC (http://www.intracen.org).
5
Size marking

The following body measure-

ments are used: body length,
chest size and hip size. These
three basic measurements deter-
mine the fitting of the garments.
The following sizes are similar in
Germany, the Netherlands and
Austria.

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

Character sizes XS S M M L L XL XL XXL

Figure sizes 34 36 38 40 42 44 46 48 50

Chest width 80 84 88 92 96 100 104 110 116

Waist size 61 64 68 72 76 81 86 91 97

Hip girth 86 90 94 98 102 106 110 114 118

Size table for men's outerwear (body sizes) except trousers/jeans

(see next table) in cm:

Character sizes XS S S M M L L XL XL XXL

Figure sizes 42 44 46 48 50 52 54 56 58 60

Chest width 84 88 92 96 100 104 108 112 116 120

Size table for men's trousers in cm:

Figure sizes 40 41 42 43 44 45 46 47 48 49

Waistband width 68 68 72 72 76 76 80 80 84 84

Side length 100 108 102 110 104 111 104 112 106 112

Figure sizes 50 51 52 53 54 55 56 57 58 59

Waistband width 88 88 92 92 97 97 102 108 114 120

Side length 106 113 108 114 108 114 111 111 111 111

6
All attempts to harmonise the size Germany has a specific system
system at European level have so for the mens sizes, which are
far failed. The system is that in subdivided into three groups:
some EU countries, except the
UK, the same figure sizes are a. Standard sizes: 44 46 48 50 52
used, but sizes are not equal. For 54 56 58 60 62
instance: Womens figure size 36
in Germany and The Netherlands b. Large sizes (shorter than stan-
is equivalent to 40 in France and dard sizes and wider at the hip):
42 in Italy. As mentioned above, 24 25 26
the UK uses a different system:
Womens figure size 36 in c. Slim sizes (longer than standard
Germany and The Netherlands is sizes and narrower): 84 86 88 90
equivalent to 8 in the UK, 38 to 10 94 98 102 106
etc.
Apart from this discrepancy, the Size Marking for Babies and
different brands and retailers in Childrens Wear
Europe use the same figures for
the sizes, but a ladys size 38 Years Groups
might differ to quite some extent
0-2 Babies
from brand to brand. 2-6 Toddlers
6 - 12 Middle group/school
Jeans sizes 12 - 14 Preteens
14 - 16 teenagers
Jeans are sold internationally in
inch sizes. They are read as fol-
lows: the first number refers to the
girth of the waist and the second
to the inside leg seam (inseam).
Both are expressed in inches.

Example: Conversion table for womens sizes in inch and conventional sizes

Inches 26 27 28 29 30 31 32 33 34 35 36

Sizes in Germany 34 - 36 38 - 40 42 - 44 - 46
and Switzerland

7
 Infants Wear (body sizes) and girls. The Swedish Centilong
system based on height values is
For the purposes of sizing all chil- used in some European countries.
dren are best grouped into infants There is one standard for all these
(younger than seven years), boys sizes.

Body Sizes Infants in cm:

Height 50 56 62 68 74 80 86 92 98 104

Chest 40 42 44 46 48 50 52 54 55 56

Waist 40 42 44 46 48 49 50 51 52 53

Hips 41 43 45 47 49 51 53 55 57 59

Arm length 18 20 22 24 26 28 30 32.3 34.6 36.9

Inside leg length 16 19 22 25 28 31 34 37 40.6 44.2

Boys' wear (body sizes) in cm:

Height 110 116 122 128 134 140 146 152 158 164 170 176 182 188 194

Chest 58.0 59.0 60.0 62.0 64.0 67.0 70.0 73.0 77.0 81.0 85.0 88.0 91.0 94.0 97.0

Waist 54.0 55.0 56.0 57.0 59.0 61.0 63.0 65.0 68.0 71.0 74.0 77.0 80.0 83.0 86.0

Hips 59.0 61.0 63.0 65.0 68.0 71.0 74.0 77.0 81.0 85.0 89.0 92.0 95.0 98.0 101.0

Arm length 39.1 41.4 43.7 46.0 48.3 50.6 52.5 55.3 57.5 60.0 62.5 65.0 67.0 69.0 71.0

Inside leg 47.5 51.0 54.5 58.0 61.5 65.0 68.0 71.0 74.0 77.0 80.0 83.0 86.0 89.0 92.0
length

Neck 28.0 28.5 29.5 30.5 31.5 32.5 33.5 34.5 35.5 36.5 37.5 38.0 38.5 39.0 39.5
circumference

Girls' wear (body sizes) in cm:

Height 110 116 122 128 134 140 146 152 158 164 170 176 182 188

Chest 58.0 59.0 60.0 62.0 64.0 67.0 71.0 75.0 79.0 83.0 86.0 89.0 92.0 95.0

Waist 54.0 55.0 56.0 57.0 59.0 61.0 63.0 65.0 67.0 69.0 71.0 73.0 75.0 77.0

Hips 61.0 63.0 65.0 67.0 70.0 73.0 77.0 81.0 85.0 89.0 93.0 96.0 99.0 102.0

Arm length 39.1 41.4 43.7 46.0 48.3 50.6 52.8 55.0 57.3 59.5 61.5 63.5 65.5 67.5

Inside leg 47.5 51.0 55.0 59.0 63.0 67.0 70.0 72.5 75.0 77.5 80.0 82.5 85.0 87.5
length

Neck 28.0 28.5 29.0 29.5 30.0 30.7 31.5 32.2 33.3 33.7 34.5 35.5 36.5 37.5
circumference

8
Shirts and Blouses
In EU and Switzerland, sizes for
mens shirts are based on neck
circumference in cm or inches
and vary respectively from 37-48
cm and from 15-19 in, and can be
extended with other measure-
ments, of which arm length is the
most important. The sizes XS-XXL
are also used for leisure or sport
shirts, also in combination with the
usual shirt size. For womens and
childrens wear, the standard
outerwear sizes are used.
Labelling
The International Association for
Textile Care Labelling (GINETEX
France - Groupement Internatio-
nal dEtiquetage pour lEntretien
des Textiles, www.ginetex.org),
which represents the textile pro-
ducing and retailing industries in 16
European countries (most of the
EU countries as well as
Switzerland and Tunisia as non-EU
countries included), has devised
an internationally applicable care
labelling system for textiles based
on symbols of pictograms. Only
those care labels issued by the
GINETEX may be used by the
retailers/manufacturers in the
GINETEX member countries.
The care identification symbols
are protected under trademark
law. The marks are owned by the
aforementioned GINETEX Group.
The care identification is also
covered by international stan-
dards (ISO 3758 / EN 23 758).
In Switzerland, the row of symbols
may not be reproduced, issued or
used without a special agreement
with SARTEX (Swiss Asso-
ciation for Textile Marking
www.sartex.ch). The contracting
companies undertake to make
correct use of these symbols at all
times within the meaning of the
relevant guidelines.
These guidelines apply to all texti-
les and textile products sold in
Switzerland and require a declara-
tion as to the kind and content of
the raw materials used. Pursuant
to the agreement with the user,
legal action will be taken in the
event of any breach of this under-
taking. The textile labelling regula-
tions set by the individual member
states of the European Union (EU
Standards) comply with the Swiss
guidelines and requirements. The
right to use these trademarks has
been given to the national mem-
ber bodies of GINETEX. SARTEX is
independent in regard to its struc-
ture and operating methods, but
should adhere in all respects to
the use of internationally agreed
symbols (above) as well as to
technical regulations and decisi-
ons taken at the GINETEX level.
Commercial companies (whole-
salers, importers etc.) are requi-
red to include the undertaking to
ensure correct care identification
and appropriate labelling in com-
pliance with the Swiss guidelines
in their orders for deliveries.
9
There are two kinds of require-
ments in the EU and Switzerland:
Mandatory requirements contain
requirements like size, fibre con-
tent and care-labelling/washing
instructions. With regard to fibre
content: the indication 100% or
pure can be used within a margin
of 2 percent of the weight of the
final product. Other fibres with a
weight of less than 10 percent of
the weight of the final products
can be mentioned; in that case, all
other fibres must be mentioned.
An international care-labelling pro-
gram is in use in many countries,
also outside the EU. The program
uses five basic symbols, which
relate to the properties of colour-
fastness, dimensional stability,
effect of retained chlorine (ble-
ach), maximum safe ironing tem-
peratures and certain other pro-
perties.
Voluntary requirements, such as
origin marking, brand or product
name and other consumer infor-
mation.
The care label
- should be durably fixed to the
textile article,
- should be legible during the
whole lifetime of the article. In
particular it should withstand
the washing and dry cleaning
process it recommends,
- should be clearly positioned
where it is easily noted and
without interference from a
seam,
- should not show through the
article and spoil its appearance.
Other forms of information may
be combined on the same label
but clearly separated from each
other. Garments consisting of
easily separable parts should be
labelled on each of the parts.
There should only be one single
care label on an article even if the
different components have to
carry further information (for
example fibre content).
The object of labelling is to inform
the consumer and the commerci-
al textile care industries when
buying, using or cleaning the arti-
cles. Therefore labels should be
easily detectable. The label should
be affixed permanently and posi-
tioned always at the same places
depending on the type of the arti-
cle. Because of differences in
materials, production, demands of
fashion etc. these requests can
only partially be fulfilled and by way
of exception an alternative place
of positioning is given. To achieve
a maximum of conformity, recom-
mended positions are laid down.
10
The International Textile Care Labelling Symbols (according to ISO 3758)

SYMBOLS MAXIMUM WASHING CARE PROCESS

TEMPERATURE

mechanical action normal

95 C
95C rinsing normal
spinning normal
mechanical action reduced (1)
95 C
rinsing at gradually decrea-
95C
sing temperature
spinning reduced
mechanical action normal
50C 60 C
rinsing normal
spinning normal
mechanical action reduced (1)
60 C
60C rinsing at gradually decrea-
sing temperature
spinning reduced
mechanical action normal
40 C
rinsing normal
40C
spinning normal

mechanical action reduced (1)

40 C
rinsing at gradually decrea-
40C sing temperature
spinning reduced

mechanical action much

30 C
reduced (1)
30C
rinsing normal
spinning reduced

hand wash only

40 C

do not wash
-

mechanical action reduced (1)

50 C
rinsing at gradually decrea-
50C
sing temperature
spinning reduced

mechanical action much

40 C
reduced
40C rinsing normal
spinning normal

(1) corresponding to a load inferior to a normal load and a maximum liquor ratio
* symbols only used in some countries 11
SYMBOLS CARE PROCESS

Chlorine-based bleaching allowed only in a cold

CI and dilute solution

Do not use chlorine-based bleach

IRONING

Dots placed within the symbols

(1, 2 or 3 dots) indicate the maxi-
mum temperature in degrees
Celsius for ironing textile articles.

SYMBOLS CARE PROCESS

Iron at a maximum soleplate temperature of 200 C

Iron at a maximum soleplate temperature of 150 C

Iron at a maximum soleplate temperature of 110 C

(steam iron may be risky)

Do not iron

12
DRY CLEANING
Letters (A, P and F) in the circle
refer to the solvents which may be
used by drycleaners.
Underlining the circle indicates
that a specific process should be
used (mild process with strict limi-
tations on the addition of water
and/or mechanical action and/or
temperature during cleaning
and/or drying). In this case, self-
service cleaning is not allowed.

SYMBOLS CARE PROCESS

Dry-cleaning in all solvents normally used for dry-

A cleaning with normal cleaning procedures
Dry-cleaning in all solvents normally used for dry-
cleaning except trichloroethylene with normal cleaning
P procedures. Self-service cleaning is possible

The bar placed under the circle indicates strict limitati-

ons on the addition of water and/or mechanical action
P and/or temperature during cleaning and/or drying.
Self-service cleaning is not allowed
Only petroleum solvents may be used with normal
F cleaning procedures

The bar placed under the circle indicates strict limitati-

ons on the addition of water and/or mechanical action
F and/or temperature during cleaning and/or drying.
Self-service cleaning is not allowed
Do not dry-clean - no stain removal with solvents

TUMBLE DRYING

The tumble drying symbol (a circle in a square) must be completed by one or

two dots for two different temperature levels.

SYMBOLS CARE PROCESS

No restrictions concerning the temperature of tum-

ble drying after a washing process

Tumble drying possible at lower temperature setting

(60 C maximum) after a washing process

Do not tumble dry

13
In April 2005 the Textile Care
labelling System according to ISO
3758, valid worldwide, was
updated. The new care symbols
are listed below and concern
washing, bleaching and professio-
nal care. The other symbols
remain valid as before.

Washing

For additional washing processes

the following symbols have been
introduced:

30C for normal treatment 30C

30C for very soft treatment 30C

Bleaching

The empty triangle means that all bleaching processes are

allowed

The triangle with the two lines means that only oxygen based
bleach and no chlorine based bleach is allowed

The crossed black triangle means that bleaching is not possi-

ble (normal washing powder allowed)

Professional Textile Care (Cleaning on chemical and water basis)

New symbol: wet cleaning possible

W

The crossed empty circle means No chemical treatment

possible

The crossed full circle means No water treatment possible

Source: www.textileaffairs.com, 2006 14

Below is some useful general
information how to use the care
labels and what to write on them:

Care Labelling General Recommendations for Exporters

Washing
All garments worn close to the skin should preferably be washable
at 60 C., normal mechanical agitation. All other garments should be
washable at 40 C., normal mechanical agitation. The bar under the
washtub should only be used in the case of delicate fabrics. The bar
indicates that the mechanical agitation should be reduced. The bro-
ken bar should only be used in the case of machine washable wool and
machine washable silk. The broken bar indicates that the mechani-
cal agitation should be much reduced. The hand-wash symbol
should only be used for articles which cannot be washed in the was-
hing machine.

Bleaching
Normally the symbol is crossed out.

Ironing three dots for cotton and linen; two dots for acetate, metal-
lised fibres, polyamide, polyester, tri-acetate, viscose, wool, angora
and silk; one dot for acrylic, modacrylic, elastane. The symbol should
be crossed out for chlorofibres and polypropylene.

Dry cleaning
Only use the symbol P. The bar under the symbol only to be used for
delicate fabrics, especially those made from angora.

Tumble drying
Two dots for all cotton and linen articles, one dot for all other com-
positions. Care should be taken that articles are finished properly to
prevent excessive shrinkage. This should be tested.

Note: the weakest fibre determines the selection of the

symbols in blended materials.

Source: CBI, 2005

15
Ecolabels
In the late nineties and at the
beginning of the millennium, vario-
us competing ecolabels were
popular all over Europe. In the
beginning, they were mainly used
for under- and babywear. Many
labels have now disappeared and
the approach to the whole ecolo-
gical issue about textiles and clot-
hing is broader and considers the
whole supply-chain from the pro-
duction process up to the delivery
into the shop. Social and environ-
mental aspects play an important
role (cf. chapter on Trade Related
Environmental and Social Issues).
Currently, the German/Swiss ko-
tex Standard 100 is widely accep-
ted in the EU countries and
Switzerland as well.
ko-Tex 100
A recent statistical evaluation of
the certificates issued throughout
the world highlighted the impor-
tance of the Oeko-Tex Standard
100 as the worlds leading test
label of its type at this time. Today,
this label is the most widely used,
and among European consumers
best-known, ecolabel in relation to
textiles and clothing. It was deve-
loped in 1993 by the International
Association for Research and
Testing in the field of Textile
Ecology and changed in 1997.
Companies in the EU, Switzerland
and throughout the world have
applied for more than 6000 certifi-
cates (2004 data). The headquar-
ter of Oeko-Tex International is
located in Zrich/Switzerland
(www.oeko-tex.com).
Obtaining the ko-Tex label invol-
ves testing for harmful substances
according to the criteria which are
laid down for each product class.
Harmful substances may have
some effect on people and
human health. Importers from
outside the EU have become
aware of the significance of this
label. The number of the impor-
ters who ask for ko-Tex is gro-
wing continuously.
The standard specifies four article
classes:
- Articles for babies
- Articles in direct contact with
skin
- Articles without direct skin
contact
- Decoration material
The standard consists of the follo-
wing fundamental guidelines:
- Requirements apply to the end
product only
- Exclusion of certain dyes which
can cause cancer or allergic
reactions
- No flame retardant or biocide
treatment allowed
- Limitation of harmful substan-
ces in the end product (pestici-
des, formaldehyde, heavy
metals)
- Differentiated limitations accor-
ding to textile types and target
groups
16
The Oeko-Tex 100 Standard com-
prehensively addresses the
Human Ecology component of
textile products. It evaluates and
screens for any harmful substan-
ces present within processed tex-
tiles intended to come into con-
tact with consumers.
The advantage for clothing expor-
ters of applying for ko-Tex
Standard 100 is that this system is
built up in a modular way and
enables reliable and comprehen-
sive assessment within a realistic
time frame. This is advantageous
when considering the nature of
the clothing and textile industry
with its fashion-conscious, dyna-
mic pace.
The Oeko-Tex scheme is available
to manufacturers world-wide.
Although it is far more cost effecti-
ve to test at each stage of the
production process, it is still possi-
ble to certify the finished product
itself at any time. Another advan-
tage of the system is, that if a pro-
duct is checked and certified at a
particular stage of the production
process chain, it can then be used
in the next stage without having to
be re-tested.
The designation is restricted to
one year, after which the product
will need to undergo new testing.
The ko-Tex Standard 100 as well
as the kotex 100 plus label have
achieved a worldwide acceptan-
ce with an increased number of
registered companies also in Asia
and South America.
Oeko-Tex Standard 100 plus
The first edition of the ko-Tex
Standard 1000 was issued in
1995. It outlined the requirements
for environmentally friendly pro-
duction. Manufacturing sites fulfil-
ling a strict set of criteria, addres-
sing areas such as banned chemi-
cals and harmful manufacturing
processes were licensed to carry
the label Umweltfreundliche
Betriebssttte (lit. Environmen-
tally Friendly Manufacturing Site)
which they could use as proof of
an environmental management
system. First organizations were
subsequently audited in a pilot
project.
The Oeko-Tex Standard 100 plus
label was awarded for the first
time in 1999. This related to a finis-
hed product which fulfilled the
requirements of the Oeko-Tex
Standard 100 and was also produ-
ced only on sites carrying the
Oeko-Tex Standard 1000 licence.
Generally speaking, it can be
recommended that clothing
exporters from developing and
emerging countries should con-
centrate on this koTex 100 label.
The ko-Tex label can be used to
distinguish a textile product from
competitors.
17
1.3 TRADE RELATED ENVI-
RONMENTAL AND SOCIAL
ISSUES
Apart from legal requirements,
nowadays producers are being
confronted more and more with
additional requirements. EU and
Swiss buyers want more informa-
tion from producers, for example
about the social conditions at their
production sites or environmen-
tally sound production. The
German Karstadt/Quelle Group,
for instance (one of the largest
European clothing retailers) stated
in June 2005, that before signing
any contract their buyers are
obliged to check the fulfilment of
the social standards at the pro-
duction site. Karstdt in this respect
works with the BSCI programme
(more details under www.bsci-
eu.org). Although the require-
ments in this field are not a part of
official legislation and have no
legal basis, it is recommended to
take them into account in order to
be competitive.
If a manufacturer wants to indica-
te to external parties that he is
manufacturing in an environmen-
tally sound way, he can comply
with standards which have been
developed for this purpose. The
major standards and current mar-
ket requirements are described in
this chapter.
Environmental Requirements
Environmental aspects play an
important role for outerwear
manufacturers interested in
exporting to the European market
given that environmental aspects
are a major issue in the EU and
Switzerland. Besides governmen-
tal actions (legislative, regulations),
a strong consumer movement is
not to be underestimated, especi-
ally in the Northern and Western
parts of the EU (Scandinavia,
Germany, Netherlands, United
Kingdom) and in Switzerland.
These aspects are not just a trend
- these are lasting issues, which,
together with other determinants
such as price and quality, have a
strongest impact on the positio-
ning of a supplier in the European
market.
The capacity of a company to use
the environmental approach
towards its products such as eco-
labels (for products, see also
Ecolabels), environmental ma-
nagement standards (for the
whole organisation) and producti-
on processes are green marke-
ting tools, which have been crea-
ted by governments and private
parties.
Being a part of the business chain,
companies in developing coun-
tries may also become responsi-
ble for negative side effects of
their business and their impact on
society, the environment and their
employees.
18
Environmental Management System
An Environmental Management
System (EMS) is important for
environmental protection and pol-
lution prevention in the production
phases. It is a management tool
which enables an overview of the
environmental impact of the com-
pany and the possible way it could
be diminished. At the moment
there are two general voluntary
standards with which manufactu-
rers can comply: ISO 14001 and
EMAS, both of them based on the
popular ISO 9000 series of quality
management standards.
The EUs Ecological Management
and Audit Scheme (EMAS) has
been operating since 1995. It
applies to companies with pro-
duction facilities within the EU and
therefore is not relevant for expor-
ters from developing countries.
However, ISO 14001 is favoured
by exporters to the EU and
Switzerland as well.
The ISO 14001 Environmental
management system was publis-
hed in November 1996. It has a
similar impact to the ISO 9000
Quality Management Systems
series. The objective of ISO 14001
standard is to provide companies
with the necessary elements of an
environmental management
system, which can be integrated
into business policies to achieve
environmental and economic
goals, such as compliance with
legislation and demands set by
the company as well as continu-
ous improvement of the environ-
mental performance of the com-
pany. ISO 14001 specifies only
general requirements for an envi-
ronmental management system,
but it contains no environmental
performance criteria.
Product related requirements
The main characteristics of the
production process are the vast
quantities of water required and
the variety of chemicals used in
the processing stages, which
cause much waste. Typical envi-
ronmental problems associated
with the production of textiles are
water pollution because of disch-
arge of untreated effluent. Liquid
wastes arising from washing con-
tain a substantial organic and sus-
pended pollution load, such as
fibres and grease. Effluents are
generally hot, alkaline, strong
smelling and coloured by chemi-
cals used in dyeing processes.
Some of the chemicals dischar-
ged are toxic and can lower the
dissolved oxygen of receiving
waters, threaten aquatic life and
damage general water quality
downstream.
There are many ways to reduce
the amount of water used and
emitted. Concerning dyes and
pigments, there are many alterna-
tives available which are less pol-
luting. Other technologies make it
possible to use less dye and redu-
ce or eliminate spillage of dyes.
19
Quality related requirements
A quality related requirement are
the so called Quality management
standards which refer to the
management of a company. This
is in contrast to most of the other
standards, labels and markings
described, all of which relate to
product or production processes.
Quality management standards
are not compulsory for market
entry into the EU; however, they
can definitely contribute to the
companys image in the market.
The most important quality
management system is ISO 9000,
inspired by the concept of Total
Quality Management. TQM is a
philosophy based on customer
satisfaction and continuous per-
formance improvement. ISO esta-
blished a policy committee,
DEVCO, specifically to address
the needs of developing coun-
tries. See http://www.iso.org
Azo dyes and other harmful
substances
Azo dyes are among the leading
colouring agents in the textile
industry, especially in developing
countries. Approximately 70% of
all dyes used in the textile industry
are azo dyes. There are about
2 000 different azo dyes, of which
approximately 200-300 may fall
under a ban. Dyes in the category
of direct, azoic/naphtol, disperse,
acid or basic dyes may split off
carcinogenic amines.
Many azo dyes above the con-
centration of 30 ppm are prohibi-
ted in the EU and also in
Switzerland. The ban on azo dyes
is applicable to all products that
are in contact with skin for long
periods of time. The manufacturer
must also take into consideration
the fact that the products, once
they have entered the EU, can be
re-exported or transferred easily
to Switzerland and other
European countries. Therefore, it
is highly recommendable to follow
the Azo regulations.
The best way to avoid problems
with banned azo dyes is to use
only dyes which are absolutely
safe. Use dyestuff supplied by
reputable manufacturers, who
give the Colour Index numbers,
the generic names and material
data sheets. Ask for azo-safe cer-
tificates. Choose reputable certi-
fied laboratories.
Other substances used in the tex-
tile and clothing industry that are
banned (or allowed to a limited
extent) in some EU countries and
Switzerland are: pentachlorophe-
nol (PCP), cadmium, formalde-
hyde and nickel. Polychlorobi-
pheniles (PCB) and terphenyles
(PCT) have a total prohibition, as
do asbestos and certain flame
retardants.
20
Flame retardants
Flame retardants are used in texti-
les to reduce their flammability. Tri-
(2,3,-dibromopropyl)-phosphate
(TRIS) and tris-(aziridinyl)-phosphi-
neoxide (TEPA) are both carcino-
genic and mutagenic, which
means that these substances
may alter genetic material.
Polybromobiphenyles (PBB) are
highly persistent, carcinogenic
and reprotoxic. Moreover they
also have effects on the immune
system and the nerve system.
In the light of the European direc-
tive on the restriction on the mar-
keting and use of certain dange-
rous substances and preparati-
ons (76/769/EEC), the EU has
prohibited the use of these flame
retardants: TEPA, TRIS and PBB
are prohibited in textile articles
intended for skin contact. They
are also prohibited in Switzerland.
Social Requirements
Encouraged by consumer organi-
zations, the consciousness of
ethical trading aspects has achie-
ved growing emphasis in many
EU countries and in Switzerland.
This has led to the development
of codes of conduct by many
importers. There is a growing con-
cern among buyers of clothing
about the use of child labour in the
factories of new suppliers.
Exporters who can guarantee that
their products are made without
child labour have a competitive
advantage over other products
and a better chance of establis-
hing a long-term business relati-
onship. Exporting companies in
developing countries mostly are
requested to apply principles of
corporate conduct compatible
with the Code of Conduct of their
partner company in the EU.
These social requirements are
gaining importance on European
markets and are becoming a pre-
condition for international trade.
The so-called social codes are
often corporate codes.
In addition, the EU has added a
social clause to the Generalized
System of Preferences (GSP),
which allows for special import
tariff reductions for products that
are produced in a humane way.
The garment industry and the
trade associations in some EU
countries are developing a model
code of ethical conduct for the
production of all items. A similar
system for Switzerland is not plan-
ned as yet.
Occasionally, consumers or citi-
zens form pressure groups
(sometimes even demonstrating
on the streets) to force govern-
ment to put an end to business
practices they find unethical or
anti-social. Such consumerist
movements succeeded in setting
government rules; the SA 8000
(Social Accountability) is an exam-
ple of such. The fact that consu-
mers dont accept certain practi-
ces demands that suppliers adopt
new processes or materials.
21
Code of Conduct
A Code of Conduct was agreed in
September 1997 by European
textiles union (ETUF-TCL) and
EURATEX (employers organizati-
on). The agreement applies not
only to the European enterprises
(mainly EU and Switzerland), but
also to their subcontractors or
subsidiaries in developing coun-
tries. One objective of their deve-
lopment is to demonstrate a com-
panys social responsibility.
The core thought of the agree-
ment is following: companies are
responsible for their social role.
Business ethics and integrity are
major determinants of the quality
of a company. Companies are
also responsible for establishing
their own General Business
Principles or Codes of Conduct.
These reflect the companys posi-
tion towards business ethics,
labour conditions, environment.
They should point out the contri-
bution of the company to these
issues. The company also has to
introduce mechanisms which
measure the true effectiveness of
the Code of Conduct.
Social Accountability (SA 8000)
SA 8000 is an international stan-
dard for social accountability and
was founded in 1997. Its purpose
is to ensure ethical sourcing of
goods and services. It is a volunta-
ry standard, which sets basic
standards for child labour, forced
labour, health and safety, freedom
of association and the right to col-
lective bargaining, discrimination,
disciplinary practices, wage levels,
working hours and compensation.
The requirements in the standard
are based on recommendations
of the International Labour
Organization (ILO) and on agree-
ments and conventions of the
United Nations (Human Rights,
Rights of the Child).
SA 8000 supports the demands
of consumers for worldwide soci-
al standards and is internationally
recognized. SA 8000 accreditati-
on is valid for three years with sur-
veillance and observation audits
every six months. Those that
meet the requirements have the
right to display the SA 8000 certi-
fication mark.
Socially acceptable production
has gained importance in
Switzerland. Up to now, 20 audi-
tors have been trained for the SA
8000 by the Swiss company
Amana SA, Aarau. Link Fair Trade
Guarantee represents the label of
Amana SA and operates as a seal
of approval for socially fair labour
conditions and social engage-
ment in low wages countries. The
organization is aimed at the pro-
motion and implementation of SA
8000. The advertising efforts of
the organization aim to make
Swiss companies buy Fair
Fashion.
22
Clean Clothes Campaign
The European wide Clean
Clothes Campaign based in
Amsterdam, which is based on
the SA 8000 regulations, is also
politically very strong in
Switzerland. This organization
publishes regular newsletters
regarding social behaviour when
dealing with the supplier countries
of leading Swiss clothing retailers
and manufacturers (please com-
pare www.cleanclothes.ch and
www.evb.ch).
More information can also be
requested from the Council on
Economic Priorities Accreditation
Agency (www.cepaa.org), with
headquarters in New York/USA.
Sources of Information
For detailed information about
environmental aspects relevant to
trade at EU level, please refer to
the websites of SIPPO and CBI
(www.sippo.ch and www.cbi.nl,
especially the CBI Access Guide.
For Switzerland, whose ecological
and environmental regulations are
similar to those of the EU, more
specific information can be found
in the CBI/SIPPO Eco-Trade
Manual. Other sources of informa-
tion are the WTO web site
(http://www.wto.org), the
European Commission
(http://europa.eu.int) and OETH
(http://www.oeth.com).
1.4. PRESENT TRADE REGU-
LATIONS AND OUTLOOK FOR
2005
European Union
All EU countries apply common
Customs tariffs to imports from
outside the Union. If there is no
special trade agreement in force,
the general import tariff applies.
Some kind of preferential trade
agreement in the field of tariffs,
reductions of EU duty levels may
apply to many developing coun-
tries, according to the commit-
ments in the Uruguay Round, until
2005.
Most of the developing countries
have been granted special trade
preferences; these countries usu-
ally benefit from zero duties
through preferential treatment
under the Renewed Generalised
System of Preferences (RGSP) or
under the 4th Lom Convention
for the African, Carribean and
Pacific (ACP) countries.
RGSP (Renewed Generalised
System of Preferences)
This agreement allows products
originating in the countries con-
cerned to be imported at prefe-
rential tariffs or, for the least deve-
loped countries even duty-free. A
Certificate of Origin Form A has
to be filled in by the exporter and
issued by the competent authori-
ties. Tariff contingents and ceilings
do not exist any more.
23
As from 1 January 2006, the
general arrangement and the
EBA arrangement under
Regulation No. 980/2005 will
enter into force and will continue
to apply together with the GSP
Plus arrangement. The two spe-
cial incentive arrangements for
the protection of labour rights and
of the environment under
Regulation No 2501/2001 are
repealed from 1.1.2006.
Lom Convention (for ACP coun-
tries)
The partnership agreement bet-
ween the 25 European Union (EU)
member states and the African,
Caribbean and Pacific (ACP)
states marks five generations of
agreements between ACP-EC
sovereign states. It is the worlds
largest financial and political fra-
mework for North-South coope-
ration. Its main characteristics are:
the partnership principle, the con-
tractual nature of the relationship,
and the combination of aid, trade
and political aspects, together
with its long-term perspective (5
years for Lom I, II, and III, and ten
for Lom IV). Products originating
in the ACP countries can be
imported without duties and quo-
tas, when a Movement Certificate
EUR.1 is filled in by the exporter
and issued by the competent aut-
horities, such as the local
Chamber of Commerce. Tariff
contingents and tariff ceilings no
longer exist.
Preferential duty regimes under
Free Trade Agreements (FTAs)
The EU also has many free trade
agreements with partners in the
region (the central European
countries, the Mediterranean
countries) and beyond (Mexico,
Chile). FTAs now increasingly
involve provisions affecting non-
tariff measures and regulatory
issues such as provisions on trade
facilitation and rule-making in
areas such as investment, intel-
lectual property, government pro-
curement, technical standards
and SPS issues.
The following Free Trade
Agreements are available online:
- FTA under the Euro-
Mediterranean Partnership
- FTA with Mexico
- FTA with Chile
- FTA with South Africa
Non-tariff barriers
Examples of non-tariff barriers are
anti-dumping measures, sanitary
sanctions, quota restrictions, envi-
ronmental clauses and intellectual
property rights. The most impor-
tant form of non-tariff barriers
regarding clothing is quota restric-
tions. Since 1995, the Multi Fibre
Arrangement (MFA) has been
taken over by the WTO
Agreement on Textiles and
Clothing (ATC).
24
The ATC calls for import restricti-
ons on textile and clothing that
have already been lifted in four
distinct phases spreading over a
period of 10 years: 16% of imports
by volume in 1995, 17% in 1998,
18% in 2002 and the rest in 2005.
Many clothing items are already
quota-free, but WTO rules allow
importer countries to impose anti-
dumping duties if there is evi-
dence that markets are being dis-
rupted by selling below costs.
Anti-dumping measures
Anti-dumping implies that, under
WTO regulations, exporters are
expected to sell their products at
fair market value, at a price above
cost and without imposing higher
domestic prices for the same pro-
duct that would in effect subsidize
their lower export prices. In the
event of predatory pricing by a
particular company or country, the
importing country is allowed to
impose a duty surcharge on the
imported product, to bring the
final price up to fair market value.
Anti-fraud investigations and
actions
Besides anti-dumping measures,
the EU is stepping up anti-fraud
investigations and actions against
fraud designed to:
- circumvent trade policy mea-
sures, such as anti-dumping
measures;
- benefit illegally from preferential
treatment such as that under
RGSP;
- cheat consumers (claiming EU
origin for products produced
elsewhere);
- combat counterfeiting and
piracy (copying exclusive
designs and models without
permission of the owner).
Financial instruments in the EU
The awarding of tariff preferences
or the levying of environmental
taxes on products is one of the
major instruments of the EU (besi-
des legislation) to promote envi-
ronmentally sound products.
Such preferential systems are the
common subsidy and support
schemes, Green GSP, which
works on the assumption that
extra preferences can be awar-
ded on top of the preferences for
producers who show their com-
mitment to the environment and
who search for cleaner producti-
on techniques to reduce the envi-
ronmental damage from their pro-
duction processes and final pro-
ducts. The EU principle the pollu-
ter pays becomes obvious as
responsibilities for pollution pre-
vention and clean-up are increa-
singly placed in the hand of the
polluter. European importers
faced with this will want to share
such extra costs with their develo-
ping country partners.
25
Switzerland
General Foreign Trade Conditions
- World Trade Organization (WTO)
and Free Trade Agreements
On July 1st, 1995 Switzerland joi-
ned the WTO (formerly GATT) and
since then has applied the most
favoured clause regarding trade
to all WTO member countries. This
also applies to dealings with regi-
ons and countries where
Switzerland has signed bilateral or
multilateral agreements on trade.
Furthermore, by joining the WTO,
Switzerland had to change most
of the non-tariff trade barriers to
customs duties.
Moreover, Switzerland is a mem-
ber of the European Free Trade
Association (EFTA). The dismant-
ling of tariffs by the EFTA, in paral-
lel to the European Economic
Community (EEC), has eliminated
to a large degree the customs
duties between the European
Union (EU), the EFTA countries
and Switzerland, at least as
regards industrial products (inclu-
ding clothing).
Within the EFTA framework,
Switzerland has also made free
trade agreements with Bulgaria,
Croatia, the Czech Republic,
Estonia, Hungary, Israel, Jordan,
Latvia, Lithuania, Macedonia,
Mexico, Morocco, PLO, Poland,
Romania, Slovak Republic,
Slovenia and Turkey. Further, pan-
European cumulation has been in
effect since July 1st 1997.
Switzerland has entered bilateral
trade agreements with numerous
other countries to prevent double
taxation and to protect and pro-
mote mutual investment.
THE SWISS GENERALISED
SYSTEM OF PREFERENCES
General Principles
The preferential treatment given
to exports of developing countries
is designed to help increase and
diversify their export. The Swiss
Generalised System of Prefe-
rences (GSP) was introduced on
March 1st, 1972 in compliance
with Switzerlands intention to
implement Resolution 21 (II) adop-
ted by the United Nations
Conference on Trade And
Development (UNCTAD) in 1968.
Beneficiaries of preferences
In principle, all developing coun-
tries and economies in transition
are eligible for preferences under
the Swiss scheme, with the
exception of countries or territo-
ries that have reached a high level
of development. The exclusion is
based on objective criteria. GSP-
benefits will not be granted to
countries which are members of
OECD or have a free trade agree-
ment with Switzerland. Also exclu-
ded are countries which the
Development Assistance Com-
mittee (DAC) of the OECD has
classified as a most advanced
developing country or territory
under Part II of its list of develop-
ment aid recipients.
26
Scope of preferences
Switzerland grants preferential
reductions amounting to 50% of
the normal rate on textiles and
clothing. The least developed
countries benefit from exemption
for clothing and textiles. Complete
up-to-date information on custom
tariffs may be obtained from the
Federal Customs Administration
OZD.
Rules of Origin
The Swiss Scheme includes rules
of origin which the goods must
comply with in order to qualify for
GSP-treatment. To satisfy the
rules of origin, the goods have to
be either wholly produced in the
beneficiary country or they must
have undergone working or pro-
cessing in a beneficiary country to
specific processing criteria laid
down in the regulations.
The prerequisites for the origin of
import textiles and clothing
applied in the Swiss Generalised
System of Preferences have been
harmonised with EU and Norway.
The rules related to the origin of
manufactured goods were adap-
ted to conform with the Pan-
European cumulation system of
October 1st, 1998. Therefore, tex-
tiles and clothing containing raw
materials from EU countries and
Norway may also be granted pre-
ference.
CUSTOM TARIFF
Customs duties based on weight
Swiss customs duties are based
on the Harmonized System of
Classification which is applied
worldwide. Unlike most countries
that have a taxation system based
on value (customs duties ad valo-
rem), the Swiss system is still
based on weight. It is the gross
weight that counts, i.e. the weight
of the goods together with that of
any packaging. Only in exceptio-
nal cases do the value of the
goods or other criteria such as the
number of items, serve as the
basis for taxation.
Switzerland imposes very modest
customs duties, amounting on
average to less than 2% of the
value of the industrial goods
(including clothing) concerned.
Customs clearance
The basic documentation requi-
red includes the customs declara-
tion, which must be accompanied
by the invoice with mention of the
weight and an attestation from the
exporter as to the origin of the
goods. A certificate of origin is
necessary if preferential customs
treatment is wished or if the mer-
chandise is to be re-exported.
27
- The documents which must
accompany goods travelling by
rail are an international freight
waybill and two international
customs declarations.
- Goods travelling by post requi-
re an international dispatch
note and a customs declarati-
on.
- The accompanying documents
should mention whether or not
the consignment is to be clea-
red through customs at the
border or at a particular cus-
toms office in the interior.
Value added tax (VAT)
At 7.6%, Switzerland has the
lowest VAT-rate in Europe. VAT
that has been pre-paid may be
recovered in certain cases.
1.5 IMPLICATIONS AFTER
THE ELIMINATION OF THE
TEXTILES QUOTA
The main challenges facing the
European Union and Swiss textiles
and clothing sector today are glo-
balisation, modernisation and a
murderous competition. Market
access and fair trade have a hig-
her priority for the textiles and
clothing sector than 5 years back.
Opening new markets, negotiati-
ons of bilateral agreements are
aimed at ensuring that industry
has time to adjust to full liberalisa-
tion.
EU and Swiss apparel imports
showed a constant increase in
recent years. In their outsourcing
strategies, EU and Swiss manu-
facturers prefer Eastern European
countries even over some Asian
countries with even lower wage
rates (such as Vietnam or China)
due to their geographical proximi-
ty and their higher quality stan-
dards. Thus, EU and Swiss com-
panies remain able to respond
quickly to changing market
demands.
On the other side, non-EU clot-
hing suppliers increasingly face
the fact that the reduction of the
number of suppliers on the retai-
lers side continues. The German
based Institute for Management
and Consulting in Mannheim
stated in June 2005 that recently
a 13.5% overall reduction of sup-
pliers has been reached. The
reduction of the number of sup-
pliers is a part of the market-
driven optimisation of the supply-
chain, where the chains reduce
most (25% in 2004/2005).
The commercial relationships of
the European Union and
Switzerland in textiles and clothing
are mainly governed by the WTO
Agreement on Textiles and
Clothing (ATC), which provides for
the progressive application of the
entire range of GATT rules to the
sector, including the gradual aboli-
tion of all remaining quotas by the
1st of January 2005 (not applica-
ble for Switzerland as there are no
quota restrictions).
28
The EU has negotiated bilateral
textile agreements with a consi-
derable number of third countries,
which are not as yet members to
the WTO. Those countries are
subject to quantitative restrictions
and/or a surveillance regime.

At the beginning of 2006, the

situation of the EU clothing mar-
kets, one year after the elimination
of all quotas in the clothing sector
after many years, is summarised
by the European Commission offi-
cially in the following way (Status
November 2005):

- The disruptive impact of liberalisation of Chinese textile exports to

the EU in the first nine months of 2005 has been limited to a fairly
narrow range of product categories.

- In these categories there have been absolute rises in textile

imports and steep falls in unit prices. Among the categories affec-
ted are the ten categories covered by the June 10 EU/China
Textiles Agreement.

- Chinas share of exports to the EU in these textile categories libe-

ralised on 1 January 2005 has increased dramatically at the
expense of traditional EU suppliers, mainly in Asia but also in North
Africa and the ACP. There has, however, been only a modest rise
in textile imports to the EU, either in the 35 products liberalised on
1 January 2005, or in total textile imports.

- A deceleration in the rate of growth of imports from China in the

products covered by the 10 June Agreement has already been
noticeable in September 2005.

29
Macro trends following liberalisation
1 January 2005
In general, in the first half of 2005,
China increased its exports to the
EU by 45% in value and by 40% in
volume. For products liberalised in
2005 there has been an increase
in Chinas market share by 145% in
volume and 95% in value. This
suggests significant falls in unit pri-
ces - see below. In these products
China, the US and India are the
only significant providers to have
increased their exports in 2005.
Indias increase in exports by value
is 15%; the USs, 10%.
This has been at the expense of
other suppliers to the EU. All other
suppliers have suffered export dis-
placement in products liberalised
in 2005. Pakistan, Indonesia,
Thailand, South Korea, the
Philippines, Taiwan, Hong Kong
and Macao have all seen exports
fall (by between 10% in the case of
Pakistan and 60% for Korea) in
value and volume. It is noteworthy
that the most significant displace-
ment by China has been exports
previously originating from Hong
Kong, Macao and Taiwan.
Textiles exports from ACP coun-
tries for the first nine months of
2005 fell by 20%. Mauritius has
seen exports to the EU fall by
about 20% in value and volume.
Morocco has seen a fall in exports
of around 11% in value and volume.
Bangladesh has largely sustained
its market share in volume but with
a fall in value, suggesting price-
cutting and rationalisation. One
purpose of the June Agreement
was to alleviate pressure on these
more vulnerable producers.
Market disruption in a small number
of sectors
Serious market disruption has
been limited to a small number of
product sectors which have
experienced both double digit
absolute growth in exports, a rise
in Chinese exports, and steep falls
in unit prices sufficient to force
restructuring.
All ten categories covered in the
June 10 Agreement have experi-
enced very large overall rises in
Chinese imports - as high as over
500% in some cases. Eight of the
ten sectors covered in the June 10
Textiles Agreement have seen
double digit absolute growth in
imports, alongside huge growth in
exports from China. There has
been an absolute rise in imports of
T-shirts (24%), pullovers (17%),
mens trousers (23.6%), blouses
(13%), bed linen (17%), dresses
(8%), bras (12.5%), table and kit-
chen linen (14.7%) and flax yarn
(59%). All the ten safeguarded
sectors have shown absolute
growth. However, there has been
a deceleration of the growth of
imports from China in the ten
safeguarded products, which
have all experienced lower rates
of growth in September as com-
pared with the previous period.
Such deceleration will become
more apparent in the coming few
months due to the fact that in
seven of the products covered by
the MoU, the ceilings for imports
have been reached.
30
There have been drops in unit
value in Chinese exports in all
except five of the 35 products
liberalised in 2005. These include
drops in unit price of between 18%
and 60% for all Chinese exports
covered by the June 10 textiles
agreement, with the exception of
only one product, flax yarn, where
the unit price drop was 5.5%.
Although EU producers have suf-
fered from market disruption in
the categories affected as a result
of the fall in unit prices and greater
Chinese competition in export
markets, there has been only a
slight increase of textile imports
into the EU in the first nine months
of 2005 (3.7% in value and 4.9% in
volume), and also a modest
increase in total imports in the
products liberalised in 2005 (4.8%
in value and 10.4% in volume).
Obviously, the first effect of the eli-
mination was booming imports
from China against much lower
prices in the first months of 2005
and objections from South and
East European clothing producing
countries. In June 2005, the EU
and China agreed a deal that will
manage the growth of Chinese
textile exports to the EU until
2008. This agreement will cover
10 of the 35 categories of Chinese
imports liberalised on 1 January
2005: pullovers, mens trousers,
blouses, T-shirts, dresses, bras,
flax yarn, cotton fabrics, bed linen,
table and kitchen linen.
It covers the categories of serious
concern, including most of the
categories identified by the
European Textile Association
Euratex and the two categories
for which the EU had already laun-
ched formal WTO consultations
with the Chinese: T-shirts and flax
yarn. The agreement limits the
rate of imports while allowing fair
and reasonable growth for
Chinese exports. By finding a wide
and balanced agreement, the EU
and China ensure a period of
adjustment for textile industries in
the EU and developing countries,
provide greater predictability for
importers and retailers, and pre-
serve the prize of market liberali-
sation for China.
The agreement limits growth in
imports in the 10 categories to
between 8% and 12.5% per year
for 2005, 2006 and 2007.
Quantitative levels apply from 11
June 2005, however, at the time
of the agreement, quotas for jer-
seys, jumpers etc. were already
filled. More information can be
found on http://sigl.cec.eu.int or
http://export-help.cec.eu.int/.
31
However, the risk of EU importers Cologne,1st of February 2006
not receiving all goods from China
ordered in 2006 and 2007 is com- JP CONSULTING Associates
paratively high, especially in the Bruecker Mauspfad 623
sensitive categories mentioned D-51109 Kln / Cologne - Germany
above. Thus the EU buyers will Tel.: +49 221 84 49 54
make sure that the Chinese sup- Fax: +49 221 84 49 86
plier really has sufficient export
licenses for the ordered goods
and finally will be able to deliver the
agreed quantities. An import stop
for clothing from China to the EU
in 2006 is also possible for single
categories, especially as many
2005 contracts have been trans-
ferred into 2006. E.g. already
today (October 2005), the 2006
quota has been exceeded in the
categories of knitwear, trousers
and dresses.

This situation with China is an

opportunity for other supplying
countries, mainly from Asia and
also the Mediterranean area.
Some European buyers tend to
look for other Asian countries
which are attractive alternatives to
China, such as Vietnam, Pakistan,
Indonesia, Sri Lanka and so on.
However, the experts agree on
one point, that the position of
China as a supplying country for
clothing will remain dominant and
the fight for supply shares to the
EU among developing and emer-
ging countries has started.
According to a study of the
German Technical University in
Darmstadt, Laos, Vietnam,
Cambodia and Bangladesh will be
the loosing countries.

32