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             Overview and Marketing Guide
             on Switzerland and the
Major Markets in the European Union
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    SIPPO                                  The information provided in this survey
    Swiss Import Promotion Programme       is believed to be accurate at the time of
    Stampfenbachstrasse 85, P.O. Box 492   writing. It is, however, passed on to the
    CH-8035 Zurich, Switzerland            reader without any responsibility on the
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    Tel : +41 44 365 52 00                 reader still have the obligation to comply
    Fax: +41 44 365 52 02                  with all applicable legislation.
    info@sippo.ch
    www.sippo.ch                           Neither the publishers nor the authors
                                           of this publication make any warranty,
                                           expressed or implied, concerning the
     Authors                               accuracy of the information presented,
                                           and will not be liable for injury or claims
    Jürgen Pack, J.P. Consulting           pertaining to the use of this publication
    Brückner Mauspfad 623                  or of the information contained therein.
    D-511109 Cologne, Germany
                                           No obligation is assumed for updating or
    Eve Bächtold, SIPPO                    amending this publication for any reason,
                                           whether new or contrary information
                                           or changes in legislation, regulation or
     Revision                              jurisdiction that should arise.


    Corinne Bammerlin de Castro
    Traductora Pública Juramentada
    Jr. Bolivar 161, of. 3A
    Miraflores - Lima - Peru



     Layout

    Beate Rüttiger, Grafik Design
    In der Klinge 6
    D-72127 Kusterdingen, Germany



     Edition

    2nd Edition, Zurich, March 2006




                                                                                         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-                    The countries selected for the sur-
DOLOGY OF THE MARKET                     vey are Switzerland, Germany,
SURVEY                                   France, Italy, Great Britain and
                                         Spain. The information collected for
This survey is designed for clot-        this study is the latest available and
hing manufacturers from foreign          should be used by the exporter as
countries wishing to access the          a basis for further individual market
European market. The main                research to fully design the indivi-
objective of this compendium             dual market entry strategy and to
about Switzerland and the five           establish first contacts.
major EU clothing markets is to
provide first hand market informa-       The main sources of information
tion about the respective target         for this study were evaluation of
markets for the exporter from            press material, research on inter-
abroad. Secondly, a comprehen-           net, market reports, Eurostat,
sive list of addresses helps to gain     information from other trade pro-
more detailed information about          motion organisations, Chambers
the target market and to establish       of Commerce, importers and/or
first contacts.                          textile association’s a.o.m. The
                                         sources are mentioned in the
The handbook includes facts and          respective chapters. All contact
key data about consumption,              addresses       listed   in     the
imports, trade structure, role of        Appendices have been checked
trade fairs and price develop-           and updated, additional informati-
ments in the target markets. The         on about the clothing retailers and
study is completed by a detailed         other potential partners with pro-
list of useful addresses at              ducts, number of outlets etc. is
European level about trade pro-          given for a more specific use of
motion organisations, trade press,       the contacts.
clothing fairs, industry federations,
centres for ecological issues etc.       Additionally, app. 20 personal
as well as a detailed list of potenti-   interviews with importers, experts
al distribution partners for each of     etc. per country analysed have
the six countries analysed.              been considered for this survey.
Furthermore, statistical market          These comments have been con-
information on consumption,              sidered mainly in the chapter con-
imports, information about trade         sumption trends, role of trade fairs
structure as well as prices and          and outlook on future garment
margins are provided.                    imports.




                                                                                  5
PRODUCT GROUPS                          Within the EU statistical system
ANALYSED                                products are specified by the
                                        Harmonized Commodity Des-
This market survey covers knitted       cription and Coding System (HS).
and woven outerwear and sports-         These numbers clearly identify a
wear for men, women and chil-           specific product. The product
dren. It must be considered that in     categories covered by this study
the official statistics no difference   are:
is made between adults and chil-
dren, or in end use, such as con-       - HS 61.01 until 61.14
ventional, casual or leisure clot-        (knitted or crocheted)
hing. In the analysis of the clothing
imports, the differentiation bet-       - HS 62.01 until 62.11
ween sexes has been made as far           (woven)
as possible.

Underwear, nightwear, hosiery,          A more detailed description of the
swimwear, work wear as well as          product groups analysed can be
clothing accessories and home           taken from the import statistics in
textiles have not been covered.         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            the Czech Republic, Estonia,
New Member Countries                  Slovakia, Cyprus, Latvia, Lithuania,
                                      Malta, Slovenia, Poland and
The European Union (EU), which        Hungary. Negotiations are in pro-
had consisted of 15 member            gress with a number of other can-
states since 1st of January 1995,     didate member states such as
was enlarged by ten new joining       Romania, Bulgaria and Turkey.
countries in May 2004. They are




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                   Looking at the per capita con-
                                       sumption, the picture is similar: In
In 2004, consumer clothing             the EU-10 in 2004 it averaged
expenditure in the EU-10 coun-         € 151, much less than the € 682
tries was valued at € 11.1 billion,    average in the EU-15 markets. It
which is equivalent to only 4.3        should be noted that this figure
percent of the EU-15 consumpti-        varies from country to country,
on of € 261.3 billion in that year.    ranging from an average of € 123
These figures show that the abso-      in Slovakia to € 397 in Slovenia.
lute size of the clothing markets of   There will also be differences bet-
the 10 new EU members is small         ween cities and the countryside.
compared to the ‘old’ EU-15            Almost all countries have a large
countries. However, due to the         clothing manufacturing industry,
impressive growth rates in con-        which is primarily dedicated to
sumption, some key data and initi-     exports to other EU countries and
al recommendations for apparel         most of the new EU countries still
manufacturers from developing          have a small domestic market.
and emerging markets shall be          More details can be taken from
given below.                           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                   where the biggest difference bet-
states, in particular the Czech                ween supply and demand existed
Republic, Hungary, Slovenia and                following reform of the political
Poland, offer greater scope for                system, will see positive growth.
market growth as incomes and                   Saturation point has not yet been
spending patterns approach                     reached in these markets. 43 per-
European norms, although this                  cent of the total population of the
may still take many years.                     accession countries resides in
                                               Poland. Three countries: Poland,
A general look at the ten new EU               the Czech Republic and Hungary
countries shows that Poland                    accounted for almost 75 percent
represents 45% of total con-                   of EU-10 consumption in 2004.
sumption, despite a very low per               These countries will be briefly
capita consumption of € 132. It is             highlighted below.
expected that those markets in
                                                                                                9
Poland                                       According to CBI research, the
                                             weak spending power of Polish
According to the Austrian based              consumers can be illustrated by
Regio Plan Consulting in Vienna,             the fact that 85-90 percent usual-
the annual per capita consumpti-             ly consider price as a very impor-
on for clothing in 2004 in Poland            tant factor when deciding to pur-
was as follows: Polish women                 chase clothing. Only 10-15 per-
invested € 105 per year whereas              cent of Poles are guided by genui-
the men only spent € 75. In com-             ne needs when shopping can
parison, the Austrian consumer               afford premium priced products.
spends € 655 (women) and € 450               However, the significance of
(men). These figures illustrate that         brand-name products or modern
the sales potential in markets like          eye-catching designs is increa-
Poland is increasing, but still from         sing and consumers want not just
a very low level.                            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                    with higher incomes are more
affected by the economic recessi-            receptive to the latest trends and
on, the Polish GDP nevertheless              innovations in fashion. Increasing
grew by 3.8 percent in 2003 to               imports from Asian countries are
€ 185 billion at market prices.              usually much cheaper than dome-
Further growth is forecast to                stic products and for that reason
€ 245 billion in 2006. The Polish            very competitive in Poland, where
apparel market was worth € 5.1               low prices still considerably influ-
billion in 2004, of which 80% was            ence buying decisions.
for outerwear. However, thanks
to the economic climate and
consumer confidence in the EU,
demand is rising.
                                                                                             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          The table ‘Population and GDP of
by around 3 percent (at constant       10-EU countries’ above indicates
prices) to reach € 80 billion in       that clothing consumption by 10.1
2003 and, according to Eurostat        million citizens in 2004 amounted
forecasts, to € 102 billion in 2006.   to € 1,471 million, a share of 13 per-
With a population of 10.2 million,     cent of the EU-10 total. Growth in
Czech clothing consumption was         the period 2001-2004 accounted
worth € 1,842 million in 2004, and     for 33 percent, an annual average
represented 16.5 percent of the        of 11 percent. This strong develop-
total by the accession countries.      ment can primarily be attributed to
According to other sources, the        the increase in disposable inco-
Czech per capita consumption of        me,     which       enabled     many
clothing was € 181, among the          Hungarians to increase their
highest of the accession coun-         spending on clothing items.
tries. Consumer expenditure is         Growth rates are likely to slow
forecast to increase by just over 2    down in the coming years to an
percent each year in constant          annual growth of 6-7%.
value terms between 2005 and
2009.                                  The more affluent Hungarian
                                       people in the urban areas have
Hungary                                become, as in other ‘city areas’ in
                                       the Central and Eastern European
The third country profiled in this     countries, increasingly interested
survey has undergone some eco-         in fashion. The larger West
nomic turbulence especially in the     European chains also play a major
1990s. Hungary has traditionally       role in the clothing retail scene.
always been oriented more
towards the ‘West’ and has had a       Marketing and Distribution
comparatively high standard of
living. After a tough period of        Although playing a comparatively
recession and high inflation rates,    small role in clothing imports at
Hungarian GDP started to grow          present, the ten new EU mem-
after 1999 by around 4 percent (at     bers are confronted with a strong
constant prices), up to € 73 billion   increase of clothing imports main-
2003 and will grow further to € 94     ly from Asia which has lead to
billion in 2006 (according to          often negative trade balances.
Eurostat forecasts). Along with        The local industry suffers from
the Czech Republic, Hungary also       these Asian imports and can not
created an open climate for            always compensate the decrease
foreign investment and attracted       in national sales by increasing
shopping mall developers and           exports, mainly to the EU-15.
large foreign chains.



                                                                                12
Simultaneously, the Czech clot-          A good sales opportunity for clot-
hing industry for example is             hing manufacturers from abroad
fighting against increasing pro-         is participation in the leading trade
duction costs. Salaries in apparel       fair for Central and Eastern
production have been increasing          European countries, the STYL
by approximately 2-3% annually           International Fashion Fair of
since 2003 (9 000 CZK (286 €) in         Fashion and Textiles, which takes
01/03 to 10 000 CZK (318 €) in           place twice annually (February
02/05). In the same period, the          and August – www.bvv.cz/styl) in
number of employees in the               Brno – Exhibition Centre. The
Czech apparel sector has been            number of exhibitors in August
reduced from 32,000 to 24,000.           2005 was 682 firms from 23
                                         countries. 16,030 visitors atten-
As a consequence of these eco-           ded the fair. The STYL is connec-
nomic developments, for apparel          ted with KABO, the international
manufacturers from developing            fair for footwear and leatherwear
countries, there are generally           (www.bvv.cz/styl).
comparatively good sales chan-
ces in the ten new EU member             In the August 2005 show there
countries also in the coming 5-8         were exhibitors from Turkey,
years. However, the distribution         China, India, Indonesia and
structures are not so well develo-       Pakistan. When talking about mar-
ped and targetable as in the EU-         keting instruments to enter the
15 countries. Importers are there,       Central and Eastern European
but difficult to identify, and quanti-   apparel markets, the STYL
ties sold are much smaller.              Fashion Fair definitely is a good
                                         choice, probably by visiting the fair
A substantial part of the new EU         first to get an impression of the
clothing markets is covered by the       presentation and the (competing)
large chains and stores from EU-         exhibitors.
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.


                                                                                 13
Outerwear


FRANCE
1   FRANCE

    1.1 GENERAL ECONOMIC                    At the beginning of 2006, the
    SITUATION                               French population is in quite a
                                            despondent mood: first was the
    According to INSEE, the French          vote against the new EU constitu-
    National Institute of Statistics and    tion; it is more or less dissatisfied
    Economic Studies, the French            with the government; riots take
    Gross National Product (GNP)            place in Paris suburbs; there are
    increased in 2004 by 2.3%, in           large deficits in the state budget
    2003 by 0.8% and in 2002 by             and the social systems; there is a
    1.2%. This was slightly above the       continued high unemployment
    average growth rate of other eco-       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                      27.8% in 2001 to 53.2%, total
OUTERWEAR                               exports being twice as high as
                                        three years previously (+116%).
1.2.1 Market size
                                        Local production is focused on
In 2004, the market size of outer-      womenswear. Consequently, the
wear in France amounted to 18.2         share of imported outerwear for
billion €, which is 78% of the total    women is low at about 51%. At
clothing market. The French clot-       the same time, three times more
hing market is forecast to grow         womenswear than menswear is
steadily between 2004 and 2007          exported.
to reach a value of 33.6 billion €,
of which up to 28 billion €             1.2.2 Market characteristics
will be outerwear. France, which
accounts for 13% of the populati-       French clothing, French design
on of the 25-member EU, is the          and French labels have a long
fourth largest clothing market          tradition and a good reputation.
behind Germany, Italy and the           Clothing labels originating from
United Kingdom.                         France are internationally consi-
                                        dered to be fashionable and of
Apparel imports, at 12.76 billion €,    good quality. The internationali-
are slightly higher than local pro-     sed French expression ‘haute
duction at 11.63 billion €. The sta-    couture’ signals the worldwide
tistics show a 25% increase in          importance of French fashion
import flow compared to 2001.           and French clothing brands.
Local production increased by           Fashion is often associated with
13.3%, of which goods amoun-            French fashion design.
ting to 6.19 billion € are exported.
The share of exported French            Compared to other EU countries,
production        increased    from     France is said to be dominated
                                        by price-conscious consumers.
Table 1-1: Size of the French           The reasons for this can be found
outerwear market, 2003                  in an unemployment rate of
                                        around 10% and a relatively low
                             in bn. €   economic growth rate. On the
                                        other hand, the French are said
 Import Market                  12.76   to be very fashion-conscious too.
                                        However, spontaneous purcha-
 Local Production               11.63
                                        ses are comparatively rare
 Exports                         6.19   because of price sensitivity.
 Total Market                   18.20
                                        There is a high share of indepen-
Source: Ministry of Economy, Finance    dent retailers in France that are
and Industry , 2005                     run as smaller boutiques all over
                                        the country.
                                                                            15
However, the other extreme is                 1.2.3 Demographic Characteristics
also seen in the retail market: the
so called ‘centrales d’achat’, huge           As Figure 1-2 shows, in the long-
supermarkets       (Carrefour,     E.         term the birth rate declines and
Leclerc, Intermarché etc.) and                thus the young population in
clothing chains like Promod,                  France shrinks. The French popu-
Pimkie, Kookai etc., have streng-             lation (60.7 million inhabitants in
thened their in the French clothing           total) is, as in other European
market. In this scenario it is obvio-         countries, getting older on avera-
us that the French clothing retail            ge. The age groups from 29 to 59
system is very fragmented. 91% of             have the highest shares in the
the total turnover (10 billion €) is          population structure.
carried out by companies with 20
to 250 employees. Altogether, the             Though the share of the young
industry employs 60,000 people.               population is shrinking, the con-
                                              sumption of womenswear in the
France has the largest network of             same age group is relatively high.
outlets and franchise systems                 It can be said that the younger
operated by clothing manufactu-               female consumers in particular
rers within Europe. Both systems,             are buying high quantities of clot-
franchising and own outlets,                  hing - dominated by the wish for
merge with each other and                     fashionable     casual      clothing.
cooperate very closely.                       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: Fédération Française des Industries du Vêtement Féminin, 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-   duct categories developed even-
                                                                        lopment of the women’s clothing       ly. Parts of this evolution can be
                                                                        segment in thousands of articles.     explained by external factors such
                                                                        Overall, a modest increase in sales   as the weather. For instance, in
                                                                        can be observed between 2003          the extremely hot year of 2003,
                                                                        and 2004. Small articles of outer-    the French bought less anoraks
                                                                        wear particularly contributed to      but more shorts than in 2004.
                                                                        this effect. However, not all pro-
                                                                                                                                                        18
1.2.5 Consumer behaviour              As with the young generations in
                                      other European countries, French
1.2.5.1 Consumer preferences          children like U.S. fashion styles
                                      and are influenced by American
Table 1-4 gives a good survey on      culture. Therefore, American
sales made by different clothing      brands and/or brands perceived
retail channels in 2002. Compared     to be American are particularly
to previous years, sales in inde-     successful in the childrenswear
pendent clothing shops are            segment. The youngsters are also
decreasing. They once used to be      interested in sportswear, which is
the most important location for       used also as everyday clothing.
the French to buy their clothing.     Sports like rugby, football and bas-
Now they are (at 18.6%) behind        ketball are quite popular.
the multiples that have a share of
24.8%. The trend towards more         Table 1-4: Market share of clothing retail
concentration is also reflected by    channels, 2003
the relatively high share of super-
and hypermarkets (15.2%). Mail                                           in%of total sales
order houses took some 8.6% of
                                       Independents                                  18.5
sales value in 2002. However,
they are expected to enjoy much        Clothing multiples                            24.8
higher rates in the future due to      Department & variety stores                      6.8
the rise of the Internet.
                                       Mail order                                       8.6

In 2003 in France, outerwear           Super & hypermarkets                          15.2
retailers had on average 3.2 out-
                                       Sport shops                                      7.6
lets for menswear and 3.8 outlets
for womenswear. The principal          Specialist large surface stores               10.9
names of the preferred shops for       Others                                           7.6
men, women and children are
                                       Total                                       100.0
C&A, Kiabi and Eurodif, where the
consumer finds more ‘general          Source: UFIH, French Apparel Association, 2005
clothing’ with no specific purpose.
The main retail companies for         The trends for ‘American’ styles
French women are Pimkie,              strongly influenced by the ‘Hip-
Promod and Chamaïeu Femme.            Hop Scene’ and the preferred
The French men prefer to buy          sportswear are expressed in the
their clothing at Celio, Chamaïeu     sales of items like t-shirts, sweat-
Homme, Devred, Manarès and            shirts, polo-shirts in combination
Burton. The favourite shops for       with baseball caps. Young consu-
childrenswear are Zannier, Jacadi     mers’ demand for sportswear hel-
and Catamani, all of which are        ped the largest sports retailer
specialised shops offering only       Decathlon to increase its sales of
childrenswear.                        children’s clothing in the last few
                                      years.
                                                                                   19
As regards fabrics, there is a trend   1.2.5.2 Consumer expenditures
towards natural, easy to wear and
modern fibres (jersey, cotton flan-    Recalled that France has a population
nel, stretch, technical fabrics,       of 60.7 million inhabitants, the per
polar fleeces). The children’s         capita expenditures for clothing are
parents prefer clothing which is       slightly below the average in the EU.
easy to wash and which requires        As Table 1-4 shows, the share of con-
no ironing. However, 70% of the        sumption of the average French hou-
clothing of 4 to 14 year olds is       seholds for clothing (in all consumpti-
selected by the children themsel-      on) remained rather stable at a level
ves and not by the parents.            around 3.6%.
Children from six years up deve-
lop brand awareness, which is          According to a study by OSEO, clot-
mainly formed by their peer group      hing consumption has stayed stable
and TV advertising.                    in constant Euros since 1986. OSEO is
                                       a syndicate of the French Innovation
                                       agency, Anvar (agence française de
                                       l’innovation), the development bank
                                       for small and medium enterprises,
                                       BDPME (Banque du développement
                                       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 women’s 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 women’s, girls’,
                                                 and infants’ wear is especially
According to CTCOE, clothing pri-                affected by the downturn of pri-
ces generally develop more wea-                  ces. In contrast, menswear is less
kly than the average inflation rate.             affected by falling prices. The
With the exception of 2001-2002,                 price development of womens-
when prices went up 0.7% cau-                    wear can be interpreted from
sed by the introduction of the                   Table 1-7: While consumption in
Euro, a general downward ten-                    value went down by 0.4%, con-
dency can be observed. Prices                    sumption in volume increased by
went down by 2.2% from 2002 to                   4.2%. This diverging development
2003, and by 3.5% in the period                  of import value and import volume
2003-2004. For the period 2004-                  does not necessarily mean that
2005, the deflation is estimated at              more lower quality clothing is sold
5%. The weakness of the US                       in the market. However, it indica-
Dollar and the elimination of trade              tes a clear price deflation for
barriers with China with the con-                outerwear in the market (with fal-
sequent increased imports of low                 ling prices).
priced clothing explain this price
decline.



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 Fédération Française des Industries
du Vêtement Féminin, 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
                                           million €) and women (3,041 milli-
1.3.1 Total imports                        on €) are at a similar level, the
                                           imports of knitted womenswear
According to Eurostat, total               (641 million €) clearly supersede
imports of apparel into France             the imports of knitted menswear
amounted to 11.3 billion € in 2004.        (233 million €). The imports of
Since 1999, there has been a con-          woven outerwear are, depending
tinuous increase in clothing               on the product category, five to
imports. The share of imports of           nine times higher than the imports
outerwear in total French clothing         of knitted outerwear.
consumption is over 30%.
Increasing imports are more than           According to Table 1-10, the
balancing the shrinking domestic           imports of knitted outerwear into
outerwear production.                      France increased steadily from
                                           2002 to 2004. Active sportswear
A comparison of the following              such as tracksuits, ski suits and
Table 1-9 and Table 1-10 shows             swimwear is particularly worth
that the proportion of men’s and           mentioning. Knitted outerwear for
womenswear imports into France             both sexes is by far the largest
are different for knitted and woven        sector with 3,403 million € in
outerwear. While the imports of            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 shares of non-EU countries in
the share of the non-EU countries      the woven outerwear segment
in the knitted outerwear imports is    shows different developments:
generally decreasing, while the        For example, in terms of quantity
overall trend in France is an          (tons), the share of non-EU coun-
increase in imports. However,          tries in the women and girls’
according to ‘Journal du Textile’,     outerwear category reached
the French textile industry is         59.5% in 2001. Sales possibilities
beginning to feel the consequen-       for foreign manufacturers into
ces of the elimination of trade bar-   France have definitely increased
riers. The French producers are        during this period. On the other
especially afraid of Chinese           hand, non-EU countries hold only
imports that are gaining significant   55.1% of the money value share in
market share at a fast pace.           the same category. This indicates
                                       that foreign manufacturers need
Table 1-10 indicates that there are    to compete on the price level in
more imports of woven menswe-          order to make their (volume)
ar units but less in € compared to     share of the market.
the ladies’ segment. The import of
the women’s 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.




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



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




                                                                              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                      This development enhanced
                                         lower prices for outerwear
1.4.1 Developments in the retail trade   through the greater competition
                                         and number of goods imported
It would be too simple to assume         by these chains. These compa-
that price is the only area of com-      nies, of which most are French
petition in the French market.           chains, have a very up-to-date
Quality, style and trend also play       concept with a high standard in
an important role. Marks &               logistics, IT and advertising. There
Spencer withdrew from the                seems to be a real competition on
French market while international        who is the next to open up a high-
chains gained market share. H&M          end logistics centre. The profes-
(Hennes & Mauritz) in particular         sional management system in the
had extraordinary growth rates           clothing sector has swept away
(33% more growth in the first nine       small retailers. This development
months of 2005) due to their reli-       has been a concentrated process
ance on Chinese garments, as             that has given the retailers more
reported by ‘Journal du Textile’.        purchasing power against the
                                         manufacturers in comparison with
The clothing retail sector in France     the formerly fragmented small
went through major changes over          retailers.
the last years. From the beginning
of the 1980’s, consumers were            The multiples are now in the posi-
used to independent shops that           tion to react more quickly to con-
offered various brands. Apparel          sumer demands by following a
sold by independent retailers in         strategy of greater ‘just in time’
France accounted for 39.1% of            supply to the shops and the con-
total sales in 1995. Within the last     sumers. The chains act like manu-
6-7 years, the multiples also (as in     facturers in this respect. However,
other European countries) inva-          the link to the manufacturers has
ded France, and consumers are            become closer. The importance
more likely to buy in specialty          of middlemen has been reduced
chain stores with large outlets.         and retailers buy directly from the
According to OSEO, the large             clothing companies (abroad). The
chains (e.g. hypermarkets, spe-          increased purchasing power of
cialised chains) gained 17 points of     the retailers stimulated some clot-
market share in the last 12 years at     hing manufacturers to build up an
the expense of independent retai-        independent distribution system
lers who lost 15 points during the       by operating self-owned outlets
same period. In sum, the trend           or using a ‘franchise system’.
towards more concentration con-
tinues.                                  Online sales are also growing fast
                                         in France, by 3% in 2004 and by


                                                                                29
                                       45% already in the first half of           hing retail level. The large outlets
                                       2005. Factory Outlet Centres               (called ‘surfaces’ in French) are
                                       have also gained importance, at            spread all around France. Table 1-
                                       present (2005) there are 16 of             13 gives a good overview of some
                                       them spread around the country.            of the most important French clot-
                                       More are planned with an additio-          hing multiples. The retail chain
                                       nal total space of 180,000 sq. m.          Jacadi with 400 outlets is number
                                                                                  one in France. It must be mentio-
                                       1.4.2 Leading retailers                    ned, however, that Groupe
                                                                                  Zannier takes a worldwide leading
                                       As mentioned previously, the               position in childrenswear. Typical
                                       French market shows a high                 for the French market is the
                                       degree of concentration at clot-           strong market presence of chil-
                                                                                  drenswear shops.
                                       Table 1-13: Important clothing retail chains by number of outlets, 2005


                                        Retailer                 Parent company      Sector                Number of
                                                                                                              outlets

                                        Jacadi                   Jacadi              Children's wear             400

                                        Camaïeu Femme            Cime-Camaïeu        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




                                        Okaïde                   Okaïde              Children’s wear             250

                                        Décathlon                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 André) 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            1.4.3.1.1 Independent
                                                                      specialised retailers
                               1.4.3.1 Retailers
                                                                      The share of independent retailers
                               According to Interselection, the       decreased from 28% in 1995 to
                               French distribution system still has   18.5% in 2003. Independent retai-
                               a large share of ‘independents’        lers are defined as retailers with
                               with 22.2% in 2004. Recall that        less than five ‘active’ outlets.
                               the French Apparel Association         There are around 25,000 inde-
                               UFIH reported a share of only          pendent outlets in France. Their
                               18.5% in 2003. As can be seen in       buying is sometimes linked to
                               Figure 1-4, organized retail plays a   franchise organisations. Although
                                                                      the share of independent speciali-
                               Figure 1-4: Amounts spent on           sed retailers is generally decrea-
                               outerwear by retail channel in 2004    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%
Source: Interselection, 2005




                                                                                Food mass retail 9.6%


                                                                                Mail order 7.8%


                                                                                Department stores and
                                                                                multiples 6.1%
                                                                                Other channels 7.7%




                               major role in the French outerwe-      other countries. Figures indicate
                               ar market: It is responsible for 70%   that the strong decline came to a
                               of the amounts spent.                  stop in 2004, when there was an
                                                                      upward trend. On the other hand,
                               Compared to previous years, the        the independents lost market
                               importance of mail-order declined      share again in the first months of
                               from 10.2% in 2001 to 7.8% in          2005, as reported by ‘Journal du
                               2004. In the same period, the          Textile’.
                               market share of city centre chains,
                               department stores and multiples        Market share: 22.2% in 2004
                               stayed fairly stable.                  Trend: Decreasing


                                                                                                              31
1.4.3.1.2 City centre                   1.4.3.1.3 Department stores
chains - Clothing multiples
                                        The main department store in
The long-term trend clearly indica-     France is Les Galeries Lafayette,
tes a higher importance of clot-        which also operates under the
hing multiples and more concen-         name Nouvelles Galeries. Another
tration of the market (Journal de       department store of importance
Textile). Generally, the French         in France is PPR (Pinault-
market is still less concentrated in    Printemps-Redoute). Marks &
the retail sector than in other         Spencer no longer operates in the
European countries. However,            French market. Variety stores
this is expected to change.             include Prisunec, Monoprix and
                                        Inno, which belong to Galeries
The outlets for childrenswear are       Lafayette. The importance of
numerous. There are three times         department stores has stabilised
more outlets of clothing multiples      over the last few years after
for women than for men. The big-        decreases in the last decade.
gest player in the retail business is
the Groupe Vivarte (formerly            The Galeries Lafayette Group,
Groupe André). Groupe Vivarte           with a total number of 60 outlets,
owns the clothing chains Caroll,        has successfully started a special
Kookaï, Creeks, Liberto and La          concept for the French provinces
Halle aux Vêtements. Shoe shop          offering special ranges, e.g. ‘L.
chains called André, San Marina,        Homme’ for menswear. However,
Orcade-Minelli, La Halle aux            the department stores are strugg-
Chaussures and Chaussland et            ling; as an example, the famous
Besson also belong to Groupe            ‘La Samaritaine’ closed down in
Vivarte. In November 2001,              2005.
Groupe André was renamed
Groupe Vivarte. It accounts for         Market share: 6.1% in 2004
10% of overall sales.                   Trend: Stable

Market share: 27.6% in 2004
Trend: Increasing




                                                                             32
1.4.3.1.4 Mail-order houses          1.4.3.1.5 Textile discounters and
                                     sports chains
The mail-order business in France
is obviously decreasing. From 12%    There are some relevant textile
in 1995, it dropped to 10% in 2000   discounters all over France that
and to around 8% in 2004. Among      are mainly based outside the lar-
the     mail-order   houses,    La   ger cities such as Paris, Lyon,
Redoute and 3 Suisses must be        Marseille, but also around towns
mentioned. La Redoute is owned       with more than 250,000 inhabi-
by PPR, and 3 Suisses belongs        tants where a demand exists for
to the Groupe 3 Suisses              ‘cheap’ clothing, mainly for lower
International, which also carries    income households.
the mail-order business Blanche
Porte. Mail-order houses are said    Larger French textile discounters
to have aggressive sales policies    import directly from abroad (main-
and heavy promotion. In the lon-     ly ready-made items from Asia) or
ger run, however, the mail-order     buy from French importers spe-
business is expected to grow,        cialised in the product groups in
since more and more French con-      demand. Specific figures on the
sumers have Internet access at       market share of sports chains are
home. It is only a matter of time    not available, but are included
until the French return to buying    in the discounter category.
certain products from the mail-      However, according to ‘Journal du
order houses.                        Textile’, sports chains are increa-
                                     sing in popularity.
Market share: 7.8% in 2004
Trend: slightly increasing           Traditional textile discounters are
                                     La Halle (Vivarte), Kiabi (Mulliez)
                                     and Tati which have got strong
                                     competition from new price
                                     aggressive retailers like Vet’Land,
                                     Vet’Affaires, 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-     1.4.3.2 Sales Intermediaries
markets
                                        1.4.3.2.1 Clothing Manufacturers
The grocery super- and hyper-
markets offer comparatively more        French manufacturers have slid
menswear. The supermarkets              against the retailers and their posi-
and hypermarkets that have a hig-       tion has weakened in recent
her share in the menswear seg-          years. This is also confirmed by
ment have done better for major         the fact that there are fewer
items, but are reported to have         ‘manufacturer’s brands’, because
problems with small items, alt-         they are partially being replaced
hough socks and underwear con-          by the ‘retailer’s brands’. The indu-
stitute their main clothing busi-       stry is characterised by high price
ness. A trend can be noted away         pressure: on the one hand, con-
from cheap products to fashiona-        sumers have become more price-
ble clothing offering better quality.   conscious; on the other, imports
                                        of cheap garments from abroad
The French hypermarkets like            lower the prices. Manufacturers
Carrefour have lost market share        have no chance but to follow the
to the upcoming textile discoun-        retailers. French manufacturers
ters mentioned before. In 2002,         often produce their core product
French consumers still bought           range on their own, but they also
60% of their clothing in hypermar-      buy a considerable share of their
kets; this situation has changed in     product assortment from manu-
favour of the discounters.              facturers abroad. Apparently, they
                                        do so in order to add certain pro-
Market share: 9.6% in 2004              ducts to complete their collection.
Trend: Decreasing
                                        The clothing manufacturer has to
1.4.3.1.7 Other channels                rely on the distributors’ promotion
                                        and advertising for their respecti-
The share of other distribution         ve collection. This can cause pro-
channels is increasing. Other           blems, for instance when brand
channels are those that do not fall     names are promoted inadequate-
into the definition of the above-       ly. This can only be avoided by the
mentioned channels. Examples of         installation of a costly own retail
such distribution channels would        system by the manufacturer.
be markets, fairs, internet and         Because of the strong position of
factory outlets.                        the retailers, some French clot-
                                        hing brands are ready to accept
Market share: 7.7% in 2004              these greater financial invest-
Trend: Increasing                       ments.



                                                                                34
Establishing their own retail chain     Clothing exports into the French
allows them to adapt more quick-        market via a sales agent are very
ly to evolving market trends and        common. Especially in the case
have more influence on the distri-      of France, it is recommendable for
bution. The sales personnel can         manufacturers from outside the
be trained according to the mar-        EU to work with agents as the
keting strategy as well as the pro-     buying of clothing is very much
duct’s image. In any case, it is        concentrated on the so called
recommendable not to neglect            ‘centrales d’achats’. The buying
other local apparel manufacturers       managers often import through
when building up an own retail          sales agents based in France who
system.                                 represent reliable manufacturers
                                        from abroad.
1.4.3.2.2 Central buying associations
                                        1.4.3.2.4 Importers/wholesalers
There are not many important
buying organisations for indepen-       Some of the French retailers
dent retailers in France, as they       (mainly super- and hypermarkets,
are mainly provided by the French       textile discounters and to some
clothing manufacturers and the          extent clothing chains) prefer not
wholesalers and importers. For          to run own control and sourcing
the most part, meaningful buying        units in overseas markets. These
associations can be found in the        retailers buy their products via
sportswear segment, for instance        importers/wholesalers and often
Intersport, Go Sport and Sport          get attractive conditions. Since
2000.                                   the end of the eighties, the impor-
                                        ters have gained importance as
1.4.3.2.3 Sales Agents                  the previously very strong national
                                        French clothing industry became
A sales agent based in France           less competitive due to increasing
normally takes a commission of          production costs. As a result,
10-15% if the manufacturer is from      many        importers/wholesalers
overseas (slightly higher commis-       enjoy increasing orders and reve-
sion because of higher risks). The      nues.
sales commission within France or
Europe is normally below 10%.




                                                                              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
Prêt-à-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, men’s 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 Prêt-à-Porter Trade Fair is an         The most important tradeshow in
           international ladies’ ready-to-wear        France for menswear is the Salon
           exhibition with a ‘boutique’ secti-        International de l’Habillement
           on. The collections are normally           Masculin (Le Nouveau SEHM),
           presented on the classical pre-            which is held twice a year, in
           order system, meaning half a year          January and September. This is an
           ahead of the actual sales in the           exhibition for the whole range of
           shops. The winter collection is            men’s and boy’s apparel, inclu-
           shown in March, the summer col-            ding accessories. It must be men-
           lection in September of the pre-           tioned that this is a relaunch of a
           vious year. The fair has a certain         previously important menswear
           importance at the European level,          fair. The position of the SEHM at
           but it has the character of an             European level used to be weak.
           image fair. Nevertheless, it is the        However, one out of three visitors
           French trade fair that attracts the        and two out of three exhibitors
           most visitors.                             come from abroad.




                                                                                                            36
The trade fair Who’s Next, is also
worth mentioning. In contrast
to Le Nouveau SEHM and
Prêt-à-Porter, Who’s 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 Prêt-à-
Porter have slipped against the
Italian and German clothing trade
fairs in recent years.




                                       37
1.6 LIST OF MAJOR BUYERS OF LADIES’, MEN’S AND
CHILDRENSWEAR IN FRANCE

Clothing Chain Stores

Agnes B                      Product range: ladies’, men’s, 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 André
www.kookai.fr               Group, Paris



La Halle aux Vêtements      Product range: ladies’, men’s, 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 André
                            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 Elisée, Reclus 69   wear, sportswear
F - 69150 Décibes 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 d’Achat    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. Honoré     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 l’Industrie    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                       Product range: Casual wear and
9, rue des Ingres               active sportswear, sports articles
F - 59100 Roubaix               Price segment: mid-price level
Tel.: +33 – 3 – 20896633        Number of outlets: 75
Fax: +33 – 3 – 20896622




Coprint Sportswear              Product range: Sportswear
141, rue Louis Armand           Price segment: mid-price level
F - 73200 Albertville           Number of outlets: 75 shops + 20
Tel.: +33 – 47 – 9390909        franchise partners
Fax: +33 – 47 – 9390001




Decathlon-Sport                 Product range: Casual wear and
4, Boulevard de Mons            active sportswear
F - 59650 Villeneuve d’Asqu     Price segment: mid-price level
Tel.: +33 – 3 – 20335000        Number of outlets: 220, belongs to
Fax: +33 – 3 – 20335001         Auchan
www.decathlon.com




Decouverte Vêtements            Product range: Womenswear and
16, rue des Petits Camps – ZI   sportswear
Sud                             Price segment: mid-price level
F - 35400 Saint Malo            Number of outlets: 10 + 45 franchise
Tel.: +33 – 299 – 822635        partners (Brands: Cache Cache,
Fax: +33 – 299 – 824942         Caroll, Old River)




Donald Diffusion                Product range: sportswear
21, Boulevard de la Liberté     Price segment: lower to mid-price
F - 13001 Marseille             level
Tel.: +33 – 491 – 504389        Number of outlets: 70 shops + 50
Fax: +33 – 491 – 620789         Franchise partner
                                Note: own brand ‘Landers’


                                                                       41
ITM Intermarché Entreprises     Product range: all kinds of clothing
24, rue August-Chabriires       incl. sportswear
F - 75737 Paris                 Price segment: lower price level
Tel.: +33 – 1 – 45337417        Number of outlets: 163 shops
Fax: +33 – 1 – 45331208         ‘Vetimarché’




Lasserre                        Product range: sportswear
20, chemin de Laporte           Price segment: mid-price level
F - 31300 Toulouse              Number of outlets: 40 + 35 franchise
Tel.: +33 – 561 – 491313        partners
Fax: +33 – 561 – 499848




Naf Naf – Chevignon             Product range: womenswear
6-10, Boulevard Foch            Price segment: mid- to high price
F - 93807 Epinay sur Seine      level
Tel.: +33 – 1 – 4813 8888       Number of outlets: 197 in France
Fax: +33 – 1 – 4813 8850
production@nafnaf.fr
www.nafnaf-sa.com



Paparazzi                       Product range: ladies’ and menswear
Route Saint Bernard – B.P.151   Price segment: mid-price level
F - 06220 Vallauris             Number of outlets: 22 + 20 franchise
Tel.: +33 – 493 – 646140        partners
Fax: +33 – 493 – 644770




Department Stores
Au Bon Marche (ABM)             Product range: all kinds of clothing
5, rue de Babylone              Price segment: mid-price level
F - 75322 Paris Cedex 07        Number of outlets: approx. 150
Tel.: +33 - 1 – 44398000        Note: textile share app. 49% - 1,500
Fax: +33 - 1 – 44398050         employees - mail-order business
www.lebonmarche.fr


                                                                       42
Galeries Lafayette                Product range: womenswear
40, Boulevard Haussmann           Price segment: high price level
F - 75009 Paris Cedex 07          Number of outlets: 130 shops in
Tel.: +33 – 14 – 8782519          France and more in other countries
Fax: +33 – 14 – 2828023
www.galerieslafayette.fr
www.groupegalerieslafayette.fr



Nouvelles Galeries Réunis         Product range: all kinds of clothing
66, rue des Archives              Price segment: mid-price level
F - 75150 Paris Cedex             Number of outlets: 287 shops
Tel.: +33 – 1 – 42748212          Note: belongs to Galeries Lafayette
Fax: +33 – 1 – 42746652           Group – textile share in assortment
                                  25% - app. 25,000 employees



Printemps                         Product range: all kinds of clothing
102, rue des Provence             Price segment: mid-price level
F - 75009 Paris                   Number of outlets: 20
Tel.: +33 – 1 – 42855000
Fax: +33 – 1 – 42823600
17 shops + related shops
www.printemps.com


                                  (product range: generally all kinds of clothing,
Mail Order Companies              price segment: low to middle)

Cyrillus (Redcats)                Good Life
Avenue Amsterdam                  33, rue de l’Assomption
F - 59910 Bondues                 F - 75016 Paris
Tel.: +33 – 3 – 209 9330          Tel.: +33 – 1 – 45245650
Fax: +33 – 3 – 209 9332           Fax: +33 – 1 – 45245599
Products: ladies’, men’s,         Products: ladies’, men’s wear
children’s wear, Mailorder + 25   Mailorder + retail
shops also in B, CH and           www.goodlife.fr
www.cyrillus.fr
                                  La Redoute a Roubaix S.A.
La Blanche Porte                  (Redcats)
22, rue de la Blanche             57, rue Blanchemaille
F - 59200 Tourcoing               F - 59100 Roubaix
Tel.: +33 – 3 – 20282028          Tel.: +33 – 3 – 20696000
Fax: +33 – 3 – 20282029           Fax: +33 – 3 – 20240337
www.lablancheporte.fr             www.redcats.com
                                                                              43
Maison de Valerie               Neckermann Sarl
ZI, rue Jacquart                5, rue du Château d’Angleterre
F - 41350 Vineuil               F - 67300 Schiltigheim
Tel.: +33 – 2 – 54425254        Tel. +33 – 3 – 88191010
Fax: +33 – 2 – 54815053         Fax: +33 – 3 – 88191030
                                Note: all kinds of clothing – 260
Trois Suisses International     employees – textile share 75%
4, place de la République       www.neckermann.fr
F - 59962 Croix
Tel.: +33 – 3 – 20203062
Fax: +33 – 3 – 20720406
www.3suisses.fr
www.3suissesinternational.com



Super- and Hypermarkets

Auchan                          Product range: all products
Rue de la Recherche 200         Price segment: mid-price level
F - 59650 Villeneuve-d’Asqu     Number of outlets: 14 countries, 294
Tel.: +33 - 320 – 431212        hypermarkets, 588 supermarkets
Fax: +33 – 320 – 436400




Carrefour SA                    Product range: all products
ZAC Saint-Guénault              Price segment: mid-price level
BP 75                           Number of outlets: 215 hypermarkets
F - 91002 Evry Cedex
Tel.: +33 – 360 – 913737
Fax: +33 – 360 – 794498
www.carrefour.com



Casino-Groupe                   Product range: all products
24, rue de la Montat            Price segment: mid-price level
F - 42004 Saint-Etienne         More than 6000 outlets (not all sel-
Tel.: +33 – 477 – 454256        ling clothing)
Fax: +33 – 477 – 454365




                                                                       44
Intermarché                              Product range: all products
1, rue du Chemin Blanc                   Price segment: mid-price level
F - 91160 Longjumeau                     Number of outlets: approx. 75
Tel.: +33 – 164 – 545500
Fax: +33 – 164 – 545190




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’, men’s 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’, men’s, children’s wear,
11, avenue du Général 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 : children’s 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 Cœur                  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, allée 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 d’Arcelle
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 Française 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'Spé
Institut Supérieur Spécialisé 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 Français 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 Français 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 Création 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 Décoratifs, Musée de la Mode
et du Textile, Union Française des Arts et des Costumes
107, rue de Rivoli, 75001 Paris
Tel.: +33 – 1 – 44555750
www.ucad.fr



Fédération Française de la Couture, du Prêt-à-
Porter des Couturiers et des Créateurs de Mode
100-102, Faubourg Saint Honoré, 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                              largest economy in the EU, grew
                                           more slowly than the EU average
    Germany’s affluent and technolo-       and of course Switzerland. The
    gically powerful economy - the         weak economic situation can be
    fifth largest in the world - has       illustrated by the number of
    become one of the slowest gro-         unemployed persons, which
    wing economies in the euro zone        increased by 7.8% in 2004.
    and Switzerland. A quick turna-
    round is not foreseeable in the        A second aspect was the increa-
    immediate future. Growth in 2001-      se in the cost of living for private
    03 was under 1%, rising to 1.7% in     households compared with pre-
    2004. The modernization and            vious years. This comparatively
    integration of the eastern German      high rate was mainly due to the
    economy continues to be a costly       increase of energy costs, food,
    long-term process, with annual         ecological taxes and administrati-
    transfers from west to east            ve fees which practically absor-
    amounting to roughly $70 billion.      bed the planned tax reductions.

    Germany’s 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                    2.2.2 Market characteristics
OUTERWEAR
                                      The present situation of the outer-
2.2.1 Market size                     wear market in Germany can be
                                      characterised by the following
Although the general economic         brief statements:
situation at the beginning of 2005
was disappointing, Germany still      Clothing items from the outerwear
represents by far the largest sin-    segment can be characterised by
gle market within the EU, with an     a permanent price decrease. The
estimated total sales volume in       main reason for this is the produc-
clothing of 55.6 billion € in 2004    tion of garments from low-wage
(Statistics BTE Cologne 2005,         countries. Product imitation has
amounts at retail prices including    become easier through global
VAT).                                 production, easy communication
                                      by Internet / e-mail and liberalised
In 2004, annual clothing sales        trade.
(including outerwear) shrank in
comparison with other consumer        Renowned market research insti-
expenditures (they decreased by       tutes have stated that the ‘middle
2.3% in comparison to 2003). The      market segment’, (which is cha-
year was dominated by a signifi-      racterised by quality conscious-
cant decrease of all sales which      ness and ‘brand orientation’) has
amounted to approximately 2 billi-    become much smaller in recent
on €. There is no real change visi-   years. The outerwear and clothing
ble at the moment as there will be    market are moving in two directi-
no growth in 2005. The negative       ons: (a) value/price and (b)
retail trends must also be seen in    trend/fashion, whilst the middle
the light that private household      segment is decreasing.
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.




                                                                             51
2.2.3 Demographic characteristics               The younger generation under
                                                25 is comparatively small, e.g.
Figure 2-1 shows that the major                 the age group between 20 and
population segment by age                       24 represents only approx. 4.5
group is between 40 and 44                      million Germans (5.5% of the
years of age (approximately 7.5                 whole population). The smallest
million – male and female), follo-              potential ‘target group’, apart
wed by those in the 35-39 brak-                 from those over 70, is the seg-
ket (approximately 7 million                    ment under 10 years of age. The
people).    In   other   words,                 consequences of this for clothing
Germans in their early forties                  manufacturers from foreign
represent the largest target                    countries are evident.
group (in numbers only).




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    There are several ways of seg-
                                          menting the clothing market.
Table 2-1 shows that, in terms            Table 2-1 provides an overview of
of turnover development, the              the turnover development in the
womenswear market increased               major product segments, in per-
by 5% between 2002 and 2005,              centages, covering the main
while the menswear market highly          items of ladies’, men’s and chil-
increased by 10%; the negative            dren’s outerwear analysed by this
turnover in 2002 had been trans-          survey.
formed into a positive value of 2%
in the first half of 2005. The chil-      All three major segments (ladies,
drenswear market increased by             men, children) see a turnover
9%.                                       'boom' during the years 2003 to
Table 2-1: Outerwear turnover             2004, where all turnover values
development in % by sex and pro-          increased highly and nearly turned
duct categories, 2002 - 2005              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            2.2.5.1 Consumer preferences

The latest observations on consu-   There have been tremendous
mer behaviour based on market       shifts in consumer preferences
research for this marketing hand-   with regard to the most popular
book show that consumers of         shops in recent years. Market
2004/2005:                          leaders confirm that this develop-
                                    ment corresponds directly to
- react very noticeably to          more unpredictable consumer
  economic changes and              buying patterns towards much
  moods                             cheaper goods, closer to the
                                    actual demand (not in advance)
- tend to buy less since all        and in shops with more ‘event
  wardrobes are full and            character’.
  basic needs can be fulfilled
  less expensively                  A survey of the clothing market
                                    segment shows that many
- are highly sensitive to price     Germans buy from clothing multi-
  the former belief that            ples (20%). Department stores
  ‘cheap things’ are bad and        are in third position at 12% and
  expensive is good, no lon         are still quite strong, although they
  ger applies                       have dropped by 1%. New con-
                                    cepts reinforced the position of
- were concerned about the          department stores. Smaller spe-
  introduction of the Euro (€)      cialised clothing retailers are less
  in the beginning of 2002          important and it is expected that
  and assumed hidden                this distribution channel will lose
  price increases                   further market share in coming
                                    years.
- show a clear trend towards
  shopping at textile discoun-      The most preferred shops among
  ters                              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, Wöhrl,
                                    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        market research by Intermedia in
in the last four years (such as        2005 on behalf of Burda Verlag,
Independent Retailers (-3%) and        Hamburg       shows     interesting
Clothing Multiples (-8%). In con-      results, summarised in Table 2-3.
trast, Home Shopping is very           The key fact is that women have a
popular in Germany, even in con-       much greater interest in the latest
trast to other Western European        fashion trends (82%) than men
countries and Switzerland (share:      (18%). Even when it comes to
15%).                                  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 Wünsche, 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             different product groups. A clear
expenditure by the CBI in 2004               fact is that the per capita con-
showed that the per capita con-              sumption has decreased in value
sumption for clothing amounted               in recent years, as the turnover in
to € 587.00 per year. Table 2-4              the clothing market has reduced,
shows the annual consumption in              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
                                                the first half of 2005), whilst the
Between 2003 and the first half of              total cost of living has increased to
2005, the prices for all product                a larger extent. For more details,
segments in the clothing sector                 see Table 2-7.
have decreased only slightly




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         non–EU 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%, men’s 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 men’s 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             share of non-EU countries was
         non-EU countries in total imports             also at a very high level of 70.5%
         for woven outerwear items is                  (year 2004 - value terms). As for
         even higher than for knitted items.           knitted outerwear, there was a
         78.8% of men’s and boys’ outer-               general upswing in imports of
         wear in 2004, for example, origi-             woven outerwear between 2003
         nated from non-EU countries. For              and 2004.
         women’s or girls’ outerwear the

         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)      rently have a high growth potential
                                                                   for textile exports.
                         A brief analysis of the OPT imports
                         of outerwear into Germany shows           The ‘losers’ are Lithuania (-96%),
                         that most of the countries lost mar-      Bosnia-Herzegovina             (-95%),
                         ket share in 2004, except India with      Slovakia (-94%), Ukraine (-89%)
                         +1,333%, Latvia with +65% and             and Albania (-87%). Romania has
                         China with +6%. This positive deve-       retained the first position, although it
                         lopment can be mainly explained           also lost 65% import volume. For
                         by the fact that these countries cur-     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                      New outlets whose main business
                                         is not clothing, such as Tchibo
2.4.1 Developments in the retail trade   (coffee sales with over 1000 own
                                         shops) and Aldi (supermarkets)
The major developments in                have gained importance and
German clothing retail structure         become the ‘winners’ over the
are as follows:                          last 2-3 years. Large cash-and-
                                         carry markets have extended
The clothing retailers were more         their sales area including the texti-
or less forced to continue their         le range, and also have gained
‘trading down policy’, or in other       importance.
words have not managed to
increase prices. Known brands            Retailers tend to work with fewer
are sold at reduced prices and           but more efficient clothing sup-
‘cheap’ trade brands have been           pliers with faster deliveries and
created. The higher segment              EDP support. Four out of five
shows price increases but this is        companies would like to work with
of absolutely minor importance.          fewer suppliers. 69% of all retailers
Expansion of price aggressive            want to buy on a more short-term
retail outlets – in the clothing sec-    basis.
tor mainly represented by ‘vertical
chains’ such H&M, MANGO,                 The internationalisation of the
ZARA, Vero Moda, Tally Weijl etc.        German market with increasing
Other retailers mainly suffer from       market share by chains such as
decreasing turnover, less profit,        H&M Sweden, GAP USA, Auchan
lower frequency in the shops and         France (ORSAY, PIMKE), Inditex
increased costs.                         (ZARA) and MANGO Spain etc.
                                         continued in 2004/2005, and it
Changes in the size structure of         can be expected that the vertical
outlets – the tendency for larger        chains with their fast delivery
units has decreased. Even larger         rhythms will continue their expan-
clothing retailers have lost their       sion strategy in the future.
market share or had to leave the
market (such as BOECKER, C&A).           In the future, textiles and clothing
The tendency for more outlets            shopping will be more combined
continues – the so called ‘vertical      with lifestyle and entertainment in
retailers’, who manage the whole         the German cities, e.g. in the form
scale from collection develop-           of ‘Urban Entertainment Centres’
ment, production (outsourcing)           such as Stilwerk or SEVENS in
and sales via their own shops,           Düsseldorf or the COLONADEN in
dominate the best shopping               Hamburg.
areas beyond Germany’s largest
cities.


                                                                                 65
2.4.2 Leading retailers                          German textile retailers. This ana-
                                                 lysis was carried out by the
Table 2-12 gives an excellent                    renowned trade magazine Textil-
overview of the structure and the                wirtschaft/Frankfurt on an annual
development of the largest                       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

 Vögele                   Vögele (Switzerland)            General clothing      352         373

 Peek & Cloppenburg       Peek & Cloppenburg Nord         General clothing       26         342

 Wöhrl                    Wöhrl                           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

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

 Vögele, Sigmaringen                               373           346         - 7.2 %

 Woolworth, Frankfurt                             428            397         - 7.2 %

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



                                                                                69
2.4.3.1.2 Clothing multiples          2.4.3.1.4 Mail-order houses

The most important clothing multi-    The German mail-order business
ples are C&A (227)*, H&M (282)*,      is, after the US, the largest market
P&C West and Anson’s Mens-            in the world. The biggest mail-
wear (78)* and P&C North (26)*,       order house in the world is the
Sinn Leffers (51)*, K+L Ruppert       Hamburg based Otto Versand
(50)*, C. Vögele (352)* and Wöhrl     with many investments/subsidiary
(41)*. New Yorker with 254 outlets    companies abroad. They also
is the largest jeans and sports-      own the German mail order com-
wear chain, followed by Western       panies Schwab, Baur, Witt, Heine,
Store Beran (approx. 200)* and        Alba Moda and Sport Scheck.
Werdin with 40 shops.
                                      Quelle and Neckermann, the
The major womenswear multiples        number two and three in the mar-
are BiBa (113)* and Appel-            ket, are part of the Karstadt
rath_Cüpper (14)*, both part of the   Group. Quelle, as the second lar-
Douglas Group, Orsay from             gest mail order house, also holds
France (239)*, Bonita (397)* and      major shares in other mail order
Ulla Popken for large sizes (257)*.   houses, such as Schöpflin, Peter
Menswear multiples are Nicolas        Hahn and Madeleine, covering dif-
Scholz (40)* and Pohland (12)*.       ferent market segments. Other
* number of outlets                   larger mail order houses are
                                      Bader and Klingel. Smaller, more
Market share: 20% in 2004             niche market orientated mail
Trend: Strongly Decreasing (2000      order companies retailing clothing
=28%)                                 are Atelier Goldener Schnitt,
                                      Elégance, Bon Prix and Drei
2.4.3.1.3 Department stores           Pagen Versand. Buying clothes
                                      via mail order is quite popular in
The major department stores are       Germany, as people trust online
Karstadt with 122 outlets (as a       payment and the very well organi-
part of the Karstadt/Quelle group)    sed internet infrastructure.
and Galleria Kaufhof with 127 sto-
res, belonging to the Metro group.    Market share: 15% in 2004
Kaufhof has been very successful      Trend: Slightly Increasing (2000 =
with their trading up concept to      14%)
‘Galleria Kaufhof’. Another exam-
ples is Woolworth with 330 out-
lets.

Market share: 12% in 2004
Trend: Slightly decreasing (2000
= 13%)

                                                                             70
2.4.3.1.5 Textile discounters          2.4.3.1.7 Others

Leading discounters are NKD            Apart from ‘street markets’ and
(approx. 850 outlets), Tengel-         ‘ex-factory sales’ directly from the
mann (750 clothing outlets), Lidl &    fashion manufacturer, the clothing
Schwartz (over 1,900 Lidl stores),     distribution via ‘non textile related
Ernsting’s family (over 1,000 out-     retailers’ has gained importance.
lets) and Takko (721 outlets). Their   The most prominent example is
buying policy is very much price       the Tchibo Group. This Hamburg
oriented. The buying managers          based company was originally a
often buy from European based          ‘coffee roaster’ selling coffee in
importers/wholesalers who have         more than 3,000 outlets all over
access to the cheapest sourcing        Germany. Since the beginning of
countries worldwide.                   the nineties, every week a new
                                       Tchibo also sells other items,
Market share: 12% in 2004              among which clothing plays a very
Trend: Strongly increasing (2000       important role. The company
= 3%)                                  mainly buys from importers/who-
                                       lesalers according to their own
2.4.3.1.6 Grocery super- and hyper-    specifications. Many Germans
markets                                have bought garments from
                                       Tchibo, and the market forecast
Some examples are: Metro, Aldi,        for this form of ‘textile distribution’
Edeka/AVA, Tengelmann, Rewe            is excellent.
and Plus markets. The clothing
they sell is mainly restricted to      Market share: 9% in 2004
clothing accessories such as           Trend: Constant (2000 = 9%)
socks, caps, scarves and so on,
but increasingly includes T-shirts,    2.4.3.2 Sales intermediaries
shirts, jeans etc. Aldi and Lidl in
particular offer more and more         2.4.3.2.1 Clothing manufacturers
fashion products alongside their
food- and non-food assortment.         Manufacturing companies play a
                                       pivotal role in the clothing distribu-
Market share: 7% in 2004               tion system in Germany. Most of
Trend: Slightly increasing (2000 =     the German clothing brands work
5%)                                    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         Some buying associations had to
European countries, Germany             close down or had serious pro-
was the ‘pioneer’ country in out-       blems (such as Sütex, Kaufring).
sourcing production in the              The leading associations are
neighbouring countries to the           Katag/abz in Bielefeld, KMT in
East. The clothing industry has         Cologne and Unitex in Neu-Ulm.
been shrinking since the begin-         Some,      such   as    Ardek    in
ning of the nineties, to the point      Hofheim/Wallau specialise in chil-
where now only the ‘fittest’ have       drenswear, or Intersport in Munich
survived. There are over 500            specialising in active sports- and
reputable clothing companies in         hardware. The German buying
Germany. They can be contacted          associations also have members
through the German Clothing             from the Netherlands, Belgium,
Manufacturers Association (BBI) in      Austria and Switzerland.
Cologne.
                                        2.4.3.2.3 Sales agents
Larger companies such as TOM
TAILOR, CARLO COLUCCI, S. OLI-          Sales agents for clothing in
VER, STREET ONE and so on               Germany play a major role in the
(also) sell through their own out-      market,    especially     for    the
lets. These brands are normally         renowned clothing brands. The
positioned in the mid- to upper         more reputable agents are mem-
market segment. The tendency            bers of the Central Association of
towards self-retailing by clothing      German Sales Agents (CDH) in
brands/manufacturers has increa-        Cologne. They often have their
sed and taken on different forms        own showrooms in fashion cen-
such as concessions, shop-wit-          tres of major German cities such
hin-the-shop, sales corners in          as Neuss/Düsseldorf, Frankfurt,
department stores and own               Hamburg, Munich and so on. Only
mono-brand shops.                       strong manufacturers from non-
                                        European countries with a market
2.4.3.2.2 Central buying associations   oriented range and an excellent
                                        service might find the right partner
55% of all independent clothing         in the CDH News published
retailers in Germany are members        monthly.
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.
                                                                               72
2.4.3.2.4 Importers/wholesalers       called ‘Global Fashion’ (a fair within
                                      the fair) of the CPD in Düsseldorf is
It is estimated that there are over   generally a good choice, since
1,000 importers/wholesalers for       many buyers from Germany,
clothing in Germany. They range       Belgium, Luxemburg, Netherlands
from very small units run by the      as well as to a certain extent from
owner, up to larger companies         Austria and Switzerland tend to
with more than 100 employees          visit this fair when they look for
worldwide such as Miles, Jebsen       new suppliers.
& Jessen, Nickel etc. They often
operate through their buying          Leading fashion fairs have suffe-
offices in the Far East, which take   red from the market develop-
over the order and control functi-    ments. Nevertheless, for ‘main-
on on the ‘sourcing spot’. The        stream’ fashion manufacturers
importers/wholesalers have an         from developing countries, the
important role, they have excel-      German clothing fairs are still a
lent know-how about worldwide         very good choice (from a com-
sourcing and supply directly to all   mercial point of view).
kinds of retailers in Germany and
the neighbouring countries. The       For the active sportswear market
most reputable importers are          (including footwear and sports
members of the Association of         equipment), which is partially
non-food importers (VFI) in Ham-      covered by the products specified
burg.                                 for this study, the ISPO Fair
                                      in Munich plays a leading role
2.5 GERMAN FASHION TRADE              for   Germany     and    Europe.
FAIRS                                 Approximately 1,600 exhibitors
                                      from more than 40 countries
For womenswear, the main event        show their products in February
not only for Europe but also          and July each year. The ISPO
worldwide is the CPD Fashion Fair     management has split up the fair
in Düsseldorf, which is organised     into 14 ‘special fairs’ such as
twice per year (February and July)    Teamsport ISPO, Fitness ISPO,
by     the     IGEDO    company.      Wellness ISPO, etc.
Approximately 44,000 visitors and
around 1,500 international exhibi-    There have been tremendous
tors attend per event. The fair       changes and challenges for the
organisers have grouped the fair      German textile and clothing fairs
in different ‘theme worlds’ (CPD      since 2000 and this trend can be
Show, Gallery Show, CPD White         expected to continue in the next
Show, New Discovery Fashion).         few years. The shift in the ‘classi-
                                      cal’ menswear segment from
For manufacturers from emerging       Cologne to Düsseldorf was the
or developing countries the so        initial factor.

                                                                               73
Some two years back many repu-               In most clothing segments, from a
ted jeans and sportswear brands              commercial point of view, the
moved to the ‘Bread and Butter’ in           German fairs still have the leading
Berlin. The fair organisers are per-         position within Europe although
manently working on developing               some other fairs (particularly in
the fair structure and services: the         Italy) have taken over the ‘fashion
idea being that the visitor should           leadership’. Among German retai-
have the most efficient and conve-           lers, the fairs mentioned above
nient way to become informed                 are regarded as ‘information plat-
about fashion trends and to buy              form No. 1’ to a very large extent.
the clothing they require.



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 für                   29.1.–1.2.2006   Munich
 Sportstyle - Fashion inspired by Sports

 CPD DÜSSELDORF 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 für 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 für Sportstyle -      16.–18.7.2006    Munich
 Fashion inspired by Sports

 SPIRIT OF FASHION Home of Underground Fashion             21.–23.7.2006    Berlin

 CPD DÜSSELDORF                                            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 für         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
 Köln

 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’, MEN’S AND
CHILDREN’S WEAR IN GERMANY

Clothing Chain Stores

Bonita Gefühl für 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’, men’s 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’, men’s and
Bleichstr. 20                 childrenswear
D - 40211 Düsseldorf          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                Cüpper) and men’s (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 Cüpper       Product range: Womenswear
Nachf. GmbH                   Price segment: Mid to upper level
Zeppelinstr. 2                Number of outlets: 14
D - 50667 Köln                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             Product range: Menswear
GmbH & Co. KG                      Price segment: Mid to upper level
Brückenstraße 17                   Number of outlets: 10
D - 50677 Köln                     Note: belongs to Douglas Holding AG
Tel.: +49 – 221 – 270497 – 0
Fax: +49 – 221 – 270497 – 39
info@pohland.de
www.pohland.de

Esprit Europe GmbH                 Product range: Ladies’, men’s and
D - 40842 Ratingen                 childrenswear
Tel.: +49 – 2102 – 123 – 0         Price segment: Upper level
Fax: +49 – 2102 – 123 – 45 – 100   Number of outlets: 580 directly
www.esprit.com                     managed retail stores and over
www.esprit-online-shop.com         6,000 wholesale outlets




Hettlage + Fischer GmbH            Product range: Ladies, men’s and
Industriestraße 1                  childrenswear
D - 48644 Coesfeld-Lette           Price segment: Mid to upper level
Tel.: +49 – 2546 9345 – 0          Number of outlets: 3
Fax: +49 – 2546 9345 – 79
info@hettlage-fischer.com
www.hettlage-fischer.de



H&M Hennes & Mauritz               Product range: Ladies’, men’s and
GmbH                               childrenswear
Spitalerstrasse 12                 Price segment: Lower level
D - 20095 Hamburg                  Number of outlets: 282
Tel: +49 – 40 – 350 95 50
www.hm.com




Orsay GmbH                         Product range: Womenswear
Tannenstr. 20                      Price segment: Lower to mid level
D - 77731 Willstätt-Eckartsweier   Number of outlets: 420 shops in 8
Tel.: +49 – 7854 – 963 – 0         countries (231 in Germany)
Fax +49 – 7852 – 910 – 909
www.orsay.com


                                                                         77
Peek & Cloppenburg KG            Product range: Ladies men’s and
Berliner Allee 2                 childrenswear
D - 40212 Düsseldorf             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 men’s 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’, men’s 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’, men’s 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’, men’s and
Überseering 18                   childrenswear
D - 22297 Hamburg                Price segment: Lower level
Tel.: +49 – 40 – 6387 – 2876     Number of outlets: over 1000
Fax: +49 – 40 – 6387 – 2530
www.tchibo.de


                                                                     78
Charles Vögele Deutschland       Product range: Ladies’, men’s and
GmbH                             childrenswear
Zeppelinstrasse 2-8              Price segment: Lower to mid level
72488 Sigmaringen                Number of outlets: 352
Tel.: +49 – 7571 723 111
Fax +49 – 7571 723 171
www.voegele-mode.de



Wehmeyer GmbH & Co. KG           Product range: Ladies’ and menswear
Rotter Bruch 17                  Price segment: Lower to mid level
D - 52068 Aachen                 Number of outlets: 44
Tel.: +49 – 2 41 / 51 97 – 0
www.wehmeyer.com




Rudolf Wöhrl AG                  Product range: Ladies’, men’s and
Lina-Amman-Str. 10               childrenswear
D - 90471 Nürnberg               Price segment: Upper level
Tel.: +49 – 911 – 8121 – 0       (brands mainly)
Fax: +49 – 911 – 8121 – 100      Number of outlets: 39
info@woehrl.de
www.woehrl.de


Department Stores (selection):
Zara                             Product range: Ladies’ and
Moenckebergstrasse, 10           menswear
D - 20095 Hamburg                Price segment: Lower to mid level
Tel.: +49 – 40 30 96 22 22       Number of outlets: 30
Fax: +49 – 40 30 96 22 40
www.zara.de



Deutsche Woolworth GmbH          Product range: Ladies’, men’s and
& Co.OHG                         childrenswear
Lyoner Str. 52                   Price segment: Lower level
D - 60528 Frankfurt              Number of outlets: 330
Tel.: +49 – 69 – 6601 – 1
Fax +49 – 69 – 6601 – 2399
info@woolworth.de
www.woolworth.de

                                                                       79
Karstadt/Quelle AG               Product range: Ladies’, men’s,
Theodor-Althoff-Str. 2           childrenswear and sportswear
D - 45133 Essen                  Price segment: Mid to upper level
Tel.: +49 – 201 – 727 – 1        Number of outlets: 122
Fax: +49 – 201 – 727 – 5216
www.karstadtquelle.de




Metro AG                         Product range: Ladies’, men’s,
Schlüterstraße 1                 childrenswear and sportswear
D - 40235 Düsseldorf             Price segment: Mid to upper level
Tel.: +49 211 6886 – 0           Number of outlets: Real/Extra 560,
kontakt@metro.de                 Kaufhof 127
www.metro-ag.de
www.metrogroup.de



Kaufhof Warenhaus AG             Product range: Ladies’, men’s and
Leonhard-Tietz-Str. 1            childrenswear
D - 50676 Köln                   Price segment: Mid to upper level
Tel.: +49 – 2 21 / 2 23 – 0      Number of outlets: 127
Fax: +49 – 2 21 / 2 23 – 28 00   Note: belongs to Metro AG
service@galeria-kaufhof.de
www.galeria-kaufhof.de



Strauss Innovation GmbH &        Product range: Ladies’ and
Raiffeisenstr. 15-18             menswear
D - 40764 Langenfeld             Price segment: Lower to mid level
Tel.: +49 – 2173 – 99 – 0001     Number of outlets: 93
Fax +49 – 2173 99 23 90
www.strauss1902.de



Wal-Mart Germany GmbH &          Product range: Ladies’, men’s,
Co. KG                           childrenswear and sportswear
Friedrich-Engels-Allee 28        Price segment: Lower level
D-42103 Wuppertal                (for clothing)
Tel: +49 – 202 – 2829 – 0        Number of outlets: 88
Fax: +49 – 202 – 2829 – 1724
kontakt@wal-mart.com
www.walmart.de

                                                                      80
Clothing Manufacturers (importing) and Wholesalers/Importers:

HEINRICH NICKEL GMBH &                    Importer of men’s, ladies and
CO.KG                                     children’s 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 Münster
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
An’N Slagboom 7
D - 22848 Norderstedt
Tel.: +49 – 40 – 53413300
Fax: +49 – 40 – 53413301


                                                                               81
F.W. Brinkmann GmbH           Manufacturer of classic men’s 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




Bültel Bekleidungswerke       Manufacturer of men’s 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
Werkstraße 11
D - 21218 Seevetal
Tel.: +49 – 4105 – 6105 – 0
Fax: +49 – 4105 – 6105 – 64
www.frontline.de



GARDEUR AG                    Manufacturer of classic ladies’ and
Alsstraße 155                 menswear specialised in trousers
D - 41063 Mönchengladbach     (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          men’s and childrenswear (full import
D - 32312 Lübbecke            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’, men’s, childrenswear
Bahnhofstraße 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’, men’s, childrenswear
Maximilianstraße 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’, men’s, 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’, men’s 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 Landstraße 360        ladies’, men’s, 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’, men’s and
Wandsbeker Straße 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’, men’s and childrenswear,
D - 80331 München             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                  wear
D - 90475 Nürnberg                     Price segment: Lower to mid level
Tel.: +49 – 911 – 98476 – 0            Number of outlets: 200
Fax: +49 – 911 – 98473604
www.wsberan.de




DIESEL DEUTSCHLAND                     Product range: Jeans, young fashion
GMBH                                   Price segment: Mid to upper level
Rather Str. 49B                        Number of outlets: 11
D - 40476 Düsseldorf
Tel.: +49 211 418 56 0
Fax: + 49 211 412 298
www.diesel.com



Jeans Palast Görgens GmbH              Product range: Jeans, young fashion
Schildergasse                          Price segment: Mid to upper level
D - 50667Köln, 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
für Mode mbH                           Number of outlets: 201
Tengerner Straße 143
D - 32609 Hüllhorst
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
Hansestraße 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/ München
Tel.: +49 – 89 – 329070
Fax: +49 – 89 – 32907108
www.his-jeans.de

MUSTANG, Bekleidungs-
werke GmbH & Co.KG            Product range: Jeans and sports-
Austraße 10                   wear
D - 74653 Künzelsau           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
Wannenäckerstr. 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: Men’s, 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 TEXTILGROßHANDEL         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: Men’s, 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                    Italy’s current population is 58.5
    SITUATION                               million; the country has developed
                                            to an economic level similar to that
    Italy’s Gross National Income           of countries such as Germany,
    (GNI) has been slightly growing in      France or United Kingdom. Before
    recent years due to high exports        1945, Italy was quite rural and
    and consumption. For 2005 there         today the country is still characte-
    is expected to be stagnation while      rised by an agricultural South with
    the forecast for 2006 is for growth     an unemployment rate of 20%
    of about 1.0%. In 2003, the eco-        and a few big state-owned com-
    nomic growth rate amounted to           panies. On the other hand, the
    2.75% while in 2005 the rate is         ‘rich’ North has a favourable eco-
    around 1.6%. Italy also ranks in line   nomic climate and many success-
    with average inflation rates in the     ful private companies. The pre-
    other       EU     countries    and     sence of the state is a general
    Switzerland. The overall inflation      problem for the whole country
    rate in Italy was 1.8% in June 2005.    and hinders full economic deve-
    However, Italy is one of the coun-      lopment. Italy has to deal with illicit
    tries ranked highest for unemploy-      work on a large scale. The Italian
    ment rates in Western Europe at         government is trying to directly
    7.9% in 2005.                           reduce the number of unemploy-
                                            ed workers and employees by
                                            employing them in national com-
                                            panies.




                                                                                      88
3.2 THE MARKET FOR                        the early 80‘ s. The problems in
OUTERWEAR                                 Italian fashion business are also
                                          due to its own structure.
3.2.1 Market size                         Therefore many companies have
                                          begun or are planning to embark
Italy is the third biggest clothing       on restructuring processes.
market in Europe, behind
Germany and the UK, and there-            Nonetheless, the Italian clothing
fore plays a major role in the            industry is one of the most com-
European fashion business. The            petitive within Western Europe
market size for men’s and boys’           and imports of outerwear
outerwear stands at 1.34 Bn. €            encounter difficulties in finding
and the women’s and girls mar-            suitable market access. The Italian
ket stands at 2.03 Bn. €.                 clothing industry itself is highly
                                          export oriented and plays an
3.2.2 Market characteristics              important role in the economic
                                          situation of the whole country.
The Italian clothing market has tra-      540,000 workers directly depend
ditionally been mainly supplied by        on the Italian clothing industry. Italy
a strong national apparel industry,       is a leading country for clothing
comprised primarily of family-            (and textiles) worldwide. Clothing
owned production companies.               exports are double the imports.
These small to medium size com-
panies are flexible and often highly      Italian consumers are very much
specialised in specific products.         brand oriented, but also are loo-
They are able to react quickly to         king for items which offer value for
market needs. The strong com-             money. In recent years, the con-
munity within these companies             sumers have also become more
allows the Italian companies to           price oriented and are known for
produce higher quality goods and          their high demands regarding
to be more effective. About 90%           quality. Because of the high spe-
of the small firms are geographi-         cialisation of the Italian producers
cally concentrated and often build        and their offer of very sophistica-
so-called ‘conzorzii’, e.g. for           ted collections, manufacturers
export group marketing activities.        from abroad should avoid copying
                                          Italian outerwear.
However, the Italian fashion busi-
ness is facing a highly visible crisis.   Cheaper and lighter clothing is
The Labour Unions have called on          more often sold in the south of
fashion employees to protest, as          Italy, where the climate is warmer
the government plans to introdu-          and there is less income per
ce a labelling obligation for             capita. There is more expenditure
Chinese products. The threat to           on clothing in the richer North than
close outlets or shift productions        in the South, although more
abroad is widespread, as it was in        people live in the South of Italy.
                                                                                    89
3.2.3 Demographic Characteristics             The consequences of this
                                              decrease in the Italian population
Italy is known as a family loving             is not only that less childrenswear
country where children and                    is sold, but major changes are
mothers play an important role in             required on the production side.
society. Less known is the fact               Since clothing production in Italy
that the formerly high birth rates in         has a tradition of small family-
Italy have dramatically dropped               owned companies, there are
since 1975 - more than in other               negative effects due to smaller
European countries. The situation             family sizes. The owners are no
is similar to that of Germany, but            longer able to run the company
even more marked.                             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                 parents often cannot find a suc-
group, with a total of 5 million inha-        cessor for their clothing business.
bitants. Compared to this age                 Since these small family compa-
group, there is nearly half of that           nies are flexible and highly service
number in the lowest age group,               oriented and also dominate the
that is, the newborn – 4 year old             independent shops, the whole
segment (2.5 million persons).                clothing distribution in Italy is affec-
However, the reduction of the                 ted.
Italian population seems to have
stabilised at a low level. Figure 3-1
shows further details.
                                                                                         90
3.2.4 Retail sales by product category     sales. Jeans and trousers repre-
                                           sent one third of the Italian market
The shares of the different apparel        for woven outerwear. However,
segments (styles) of formal and            casualwear as the Italians under-
casual clothing, leisurewear and           stand it has a very sophisticated
active sportswear in Italy are simi-       touch with high quality fabrics and
larly structured to the more tradi-        basic but elegant designs in com-
tional oriented British clothing           parison to the Northern European
market. Table 3-1 shows the                markets.
dominant role in sales of formal
clothing: 43% of menswear sold in          Basic leisure wear is less impor-
Italy is formal wear as is 47% of          tant in Italy and only represents
womenswear. Compared to other              20% (menswear) and 19%
European countries, the share of           (womenswear) of the total clot-
formal wear is very high.                  hing market. Looking at the sepa-
                                           rate product categories it can be
Casualwear has a market share of           observed that casualwear trou-
30% for menswear and 29% for               sers, for example, are sold more
womenswear and is a preferred              often in Italy than (basic) jeans.
product category of the Italian            The minor role of this segment,
consumer, as in all other Western          that is mainly produced by manu-
European countries. Within this            facturers from abroad, can be
product group, shirts and trousers         explained by the Italian taste for
have for the highest shares in             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                 through independent shops ex-
                                         presses the desire for service and
3.2.5.1 Consumer preferences             quality. A graphic illustration of the
                                         2005 situation is given in Chapter
Table 3-2 shows the development          3.4.3.1 ‘Retailers’.
of the preferred types of retail chan-
nels for clothing from 2000 to 2004.     Generally speaking, the Italian con-
The table indicates that Italian con-    sumer is extremely quality and
sumers mainly prefer to buy clothing     fashion conscious, but very hesitant
in independent shops. This retail        and looks only for products which
sector still accounts for half of the    he or she is really convinced of.
total Italian clothing retail market.
The main reasons why Italian con-        The fact, that Italians are more and
sumers prefer independent retailers      more price oriented as consumers
is that these shops are somehow          can be derived from the increasing
‘closer to the consumer’. Further-       role of hyper- and supermarkets in
more, these boutique-like shops          the Italian retail market, where
offer personal contact and more          men’s 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        lar is bought. At the same time, con-
market position of independent           sumers have a high brand aware-
retailers has been weakened, but is      ness. This is particularly evident in
still clearly dominating the buying      the segment of children’s clothing.
decisions of the consumers. The          Many children love to have clothing
high share of clothing consumption       with pictures of current trends for
                                         kids on it.
                                                                                                             92
3.2.5.2 Consumer expenditure            According to Nielsen (2005) the
                                        share of clothing expenses in total
Italy, in terms of consumption          expenses has decreased from
volume of clothing, belongs to the      2000 to 2005, with a peak in 2001
top four countries within Europe        (1.6%) and 2003 (1.5%). In 2005
together with France, the UK and        the decrease in the shares of clot-
Germany. The consumption of             hing expenditure was ‘only’ 0.3%,
clothing will, according to most        whereas total consumption grew
recent estimates, account for           by 2.2%. This whole development
45.7 Billion € in 2006. Over the last   was and is a kind of shock for the
few years, spending on clothing in      Italian clothing market which ran
Italy has gradually increased. The      through an euphoric clothing con-
average growth rate of clothing         sumption phase from 1995 to
consumption between 2003 and            2000.
2006 is 2.5% annually. More
details can be taken from Figure        It is notable that Italian women do
3-2.                                    not buy that much more clothing
                                        than men. In other European
According to the press and mar-         countries like UK or Switzerland,
ket surveys, the attitude of Italians   women’s expenditure for clothing
towards fashion items has dete-         is nearly double that of men. In
riorated. It is foreseen that 42% of    Italy, women only spend around
the population will reduce their        30-35% more on clothing compa-
expenditure on clothes in the near      red to men. This means that in
future. This is the highest figure      Italy the market segment for
within the last 15 years. The stron-    menswear is more important than
gest decrease is expected for the       in the other countries analysed in
next years in the outerwear sec-        this survey. Other sources indicate
tor, where 46.2% will cut their         a difference of 40% between con-
expenses.                               sumption of men’s and womens-
                                        wear, but this would still be less
Figure 3-2: Consumption of womens-      than in Switzerland or in UK.
wear and menswear, 2003 - 2006




 46

 45

 44

 43

 42

 41

 40




Source: Eurostat, 2005, (f)=forecasts
                                                                              93
As table 3-3 indicates, the total        Although expenditure in the South
expenditures in the North and in         in total is lower - due to less dispo-
the South of Italy are different. The    sable income - the share of
disposable income in the North is        expenditure for clothing (and foot-
much higher than in the South.           wear), at 7.8% (1998: 8.2%, 1999:
The Italian Statistical Office (ISTAT)   7.8%), is higher than the Italian
indicates an average household           average. Generally speaking, the
expenditure of 2 689 € for the           more attractive areas for clothing
North and only 1 915 € for the           sales are in the North and central
South of Italy (all figures for year     part of Italy, where the import and
2004). While incomes in the North        distribution structures are much
have steadily increased, income in       better developed. Nevertheless,
the South had a temporary drop in        the South, due to lower income,
1999. For the whole country, inco-       has a higher demand for ‘basic
me per household only rises              clothing items’ (e.g. cotton pro-
slowly. Taking inflation into            ducts like cotton casual shirts and
account, income growth rates are         trousers, T-shirts, knitwear).
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).




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




                                                                                 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          In 1995, when the general inflation
                                              rate was high, clothing prices also
Figure 3-3 indicates the price infla-         grew more. During the time period
tion of clothing (and footwear)               illustrated in Figure 3-3 from 1994
compared to the general inflation             to 2001 the lowest national inflati-
index in Italy from 1994 to 2004. In          on rate was in 1999 at 1.6% and
contrast to other European coun-              clothing prices increased by 2.0%
tries, the Italian clothing sector            only. In 2004 one can see that
from 1994 onward does not show                both indices dropped simultane-
decreasing clothing prices.                   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                             At the same time, the imports of
                                        men’s and boys outerwear
3.3.1 Total imports                     increased less dramatically. These
                                        figures indicate that the menswe-
Total Italian imports of outerwear      ar manufacturers from abroad
in 2004 amounted to 6 929 Billion       wishing to sell (more) in Italy come
€. This currently high figure is a      up against a very strong national
result of the strongly increasing       menswear industry, especially in
imports in the last five years.         the formal wear sector with coats,
These high growth rates can be          raincoats, suits, jackets, trousers
explained to a large extent by the      etc.
previously ‘moderate level’ of
imports compared to other               The deliveries from non-EU coun-
European countries. Developing          tries play a dominant role in all
and emerging countries nowa-            sectors of knitted outerwear. For
days play an important role in the      example, looking at the imports of
higher imports of outerwear to          woven outerwear in € for women
Italy.                                  and girls, 81% of the garments ori-
                                        ginate from non-EU countries
In addition, imports of the different   (year 2004).
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%.




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

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
                                                  based in Eastern European coun-
According to Table 3-8, the main                  tries is that there is a great deal of
two import countries for OPT busi-                potential for more OPT business in
ness with Italy are Romania, with                 the Italian market due to the natio-
imports of 51.7 Million € in 2004,                nal industry’s struggle with increa-
and Albania, with imports of 32.3                 sing costs for labour, energy, raw
Million €. At present, the countries              materials etc.
with the highest growth rates in
the outward processing trade are                  The total OPT business into Italy
Croatia (+388% in 2004), China                    from non-EU countries has been
(+213%), Bosnia Herzegovina                       shrinking year after year: 5% in
(+116%) and Egypt (+73%).                         2003 and 1% in 2004. These figu-
                                                  res indicate that the lower imports
For Italy, the proportion of OPT                  of OPT stand in strong contrast to
imports compared to ‘normal’                      the high increases of ‘normal’
imports of outerwear (f.o.b. busi-                imports of outerwear.
ness) is low. The implication for
                                                                                            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    This example also shows that the
                                        share of imports from outside the
Looking back at the import figures      EU have been at a considerably
illustrated in table 3-7 and table 3-   high level during the last three
8 (in volume and value) the diffe-      years. In 2002, the share of knit-
rent shares of imports from non-        ted womenswear in value terms
EU countries regarding the speci-       imported from non-EU countries
fic product category are beco-          was 69.9% and in 2004 remained
ming clearer.                           nearly constant at a level of
                                        68.9%.
To show the import role of extra
EU countries, this chapter high-        Looking at the major clothing sup-
lights the imports of knitted coats,    plying countries to Italy, Table 3-9
suits and blouses for women             gives a very good survey on the
(taken from Table 3-9). For instan-     ‘top 20’ suppliers. Among the
ce, there were 26 151 tons of knit-     emerging and developing coun-
ted coats, suits and blouses for        tries is China, with enormous
women imported to Italy in 2004.        growth rates every year and
From outside the EU, 23 529 tons        imports of 1 364 235 Million € in
of these product categories were        2004. This figure represents 18%
imported to Italy in the same year.     of the total imports of outerwear
This is a share of 90% (2001:           into Italy. A similar picture can be
95.6%) imports from outside the         drawn for India (206.4 Million €)
EU for this product category.           and Hong Kong (92.7 Million €)
However, looking at the imports in      which have considerable growth
the same product category in €,         rates, too. Although Romania was
the share of imports from non-EU        the largest supplier in 2001, today
countries is clearly lower: 68.9%       it is has been overtaken by the lar-
(2001: 71.1%). In 2004, the imports     gest      clothing    manufacturing
of knitted coats, suits and blouses     country worldwide - China, which
for women from countries outside        was previously in the second posi-
the EU were 210 607 €, while the        tion.
total imports of the aforementio-
ned products were 305 865 €.            The three biggest suppliers are
                                        China, Romania and Tunisia.
Firstly, it can be stated that the      These three countries account for
share of imports from outside the       42% of the market. This shows
EU is quite high - whether calcula-     again that import countries are not
ted in volume or in price.              scattered, but there is a concen-
Secondly, the difference may be         tration of a few big players. It can
explained by the higher priced          be assumed that Romania and
items from the EU and the chea-         Tunisia, as traditional strong OPT
per products imported from outsi-       countries, work for large Italian
de the EU.                              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                      giving out stocks, some Italian
                                         multiples have financed their
3.4.1 Developments in the retail trade   expansion plans to buy other
                                         companies and brands, enlarge
The independent retailers, which         their production facilities or extend
are mainly run as family busines-        their distribution network.
ses, still have a strong market
position. As stated previously, the      As shown in chapter 3.3, imports
role of the independent shops in         grow constantly and low priced
Italy has diminished and many            products in particular are impor-
shops have had to close down             ted and sold in Italian super- and
because the owners could not             hypermarkets. In addition, former-
find a successor for their busi-         ly middle priced and high priced
ness. Low birth rates cause the          items are influenced by increasing
problem, given that there is no          imports.
child to take over the business.
Furthermore, a tremendous com-           The Italian clothing association
petition has arisen in the clothing      ‘Sistema Moda Italia’ states that
market from clothing multiples           the multiples in Italy cope better
and supermarkets that have dis-          with the new challenges of cheap
covered that selling clothing is a       mass imports than many small
profitable business.                     companies. The developments in
                                         clothing retail are very much in
As in other South European coun-         favour of multiples like Sasch,
tries, in Italy the domestic produc-     Benetton, Gas etc. that are able to
tion and distribution of clothing is     optimise stock keeping and act
closely linked. Many Italian clot-       efficiently in the market. As an
hing brands like Benetton,               example, in Milan you will find four
Marzotto Group etc. have built up        Benetton shops in a single shop-
their own retail system, often           ping street, one of which is a store
based on franchise partnerships          with several floors. Such flagship
all over the country. In Europe,         stores of course also help to build
however as in Italy itself, Italian      up the brand names of the clot-
clothing brands and collections          hing companies. The small com-
have lost market share. The multi-       panies however have less financi-
ple shops of Italian clothing com-       al possibilities to follow the techni-
panies have tried to answer by           cal trends in research and deve-
‘going public’, joint ventures and       lopment and to establish their
mergers, with partial success.           own distribution system.
With the money earned from




                                                                                  106
Since the variety stores also            order or e-commerce business.
import and take advantage of             Furthermore, Italian consumers
cheaper clothing from outside the        like to touch the fabric and trying
country, this segment could have         on the clothing. Italian consumers,
profited in terms of gaining market      having ordered via internet or
share. However, the market               mail-order, are generally not pre-
importance is not as much as was         pared to wait for the items bought
forecast years before. Variety           for more than one week.
shops have to fight against dis-
counters or super- and hypermar-         A phenomenon in Italy are the so-
kets not to lose their customers         called street markets with a share
searching for mid-priced and             of approximately 10%. North-
middle quality items. Unlike pre-        Africans and increasingly Chinese
vious years, these super- and            dealers offer cheap (branded) and
hypermarkets nowadays offer              very fashionable clothing with
good quality and very reasonable         minor faults at a reasonable quali-
prices.                                  ty. Obviously, some of the pro-
                                         ducts are just fakes. 8 out of 10
Instead of only selling clothing,        Italian consumers admit to buying
advanced managed Italian retai-          from these mainly illegal market
lers (mainly multiples and depart-       dealers. Most of the goods come
ment stores) also often offer cos-       directly from China, Morocco or
metics, bags, shoes, accessories         elsewhere.
and sometimes even stylish hou-
sehold articles. There is a trend        It can be expected that there are
that retailers in Italy put emphasis     a lot of changes in the Italian retail
on a ‘lifestyle ambience’ in the         sector still to come. This can be
outlets and appropriate surroun-         assumed based on observations
dings like cafeteria or special pla-     of earlier developments in other
ces for children. The aim is to          European countries, e.g. the
keep the customers in the shops          growth rates in the retail sector in
as long as possible to motivate          Italy (around 3.5% annually) are
them to finally buy something.           still higher than in countries like
                                         Germany or France.
E-commerce and Internet sales in
Italy have fewer opportunities than      Due to strong competition on the
in other European countries. Only        Italian fashion market, large retai-
very low growth rates of clothing        lers such as H&M, Zara and
sales through this distribution          French Connection have just
channel can be predicted, becau-         recently entered the market.
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-
                                                                                  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 Vögele      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 Inglés (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 group’s 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             international       customers.      La
leading European retailers for clot-     Rinascente department stores
hing, accessories, and household         are located in characteristic pla-
goods and has a turnover of 1.07         ces in the city centres of the major
Billion € a year. The retail chains      Italian cities. A 7-year restructuring
Oviesse and Coin belong to COIN          programme until 2012 for the
Holding and are subsidiary com-          whole Group aims to double the
panies for different market seg-         turnover of La Rinascente to
ments. For some years Coin               approximately 605 Million € by
owned the German retailer                increased merchandising, more
Kaufhalle which was a bad strate-        service for the customers,
gic step for Coin to enter foreign       decreasing the share of own
markets. They had to close quite a       labels from 40% to 10% and an
number of stores and finally left        increase of ‘concessions’ within
the German market. Throughout            the outlets from zero to 30%. It is
Italy there are 326 shops. The           envisaged to increase the number
Coin clothing range is produced          of shops to 20.
by Manifatture di Fara SPA and
Sirema Srl. In 1998, it acquired the     A 5-year investment plan has also
non-food sector of Standa, which         been agreed for the UPIM outlets,
is one of Italy’s largest supermar-      until 2010, with the main aim of
ket chains that also sells clothing,     modernising all outlets and increa-
but to a lesser extent.                  sing turnover from 510 Million € to
                                         600 Million €. At present, UPIM
LA RINASCENTE is the leading             has 350 shops, of which 150 are
department store in Italy with a         operated under own manage-
good reputation offering a wide          ment.
product range including a wide
variety in clothing. In 2004, the tur-   In the latest press reports dated
nover of La Rinascente was 925           from 2005 there are a lot of
Million €, including its subsidiary      rumours going round concerning
company UPIM in 404 outlets. La          a merger between Gruppo Coin
Rinascente aims to be the most           and La Rinascente.
elegant department store. Like
other retailers that pursue a quali-
ty strategy, the stores are attracti-
vely decorated for national and




                                                                                  109
3.4.3 Distribution Channels              half of the market. As opposed to
                                         other European countries, where
3.4.3.1 Retailers                        multiples have the largest share, in
                                         Italy only 19% of the clothing is
Figure 3-4 gives a survey of the         sold through these clothing
structure of the Italian clothing        chains. Grocery super- and hyper-
retail market. The graph indicates       markets represent 12% and
that     independent      retailers      department stores account for
account for 49% of clothing retail       8% of the clothing retail distributi-
and therefore represent nearly           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           Clothing chains other than those
retailers                                   tied to Italian manufacturers have
                                            serious problems in Italy. There is
The Italian clothing market is              no Marks & Spencer or C&A in
dominated by independent retai-             Italy yet. There are French multi-
lers. These are mainly family run           ples like Déclathon, Kookai,
clothing shops, and had a market            Promod or Kiabi in Italy, but they
share of 59% in 1995. Since then,           have limited profitability. These are
the importance of independent               companies that do not generally
retailers has dropped to a market           sell the clothing they produce, but
share of 49% in 2004. Italian small         buy from all over the world.
retailers offer high-priced items           Newcomers in Italy are the
with an emphasis on quality,                Swedish H&M and the Spanish
brands, well designed outlets and           Zara which opened shops in
service. These ‘boutique like’              2005.
shops convince with ‘personal
contact’ and good ‘availability’ by         Market share: 19% in 2004
a dense allocation of the shops all         Trend: Slightly Increasing
over the country.                           (1995 = 17%)

Market share: 48% in 2004                   3.4.3.1.3 Department/variety stores
Trend: Strongly Decreasing
(1995 = 59%)                                There are two big department
                                            stores in Italy: La Rinascente and
3.4.3.1.2 Clothing multiples                Gruppo Coin. The department
                                            stores in Italy have an amazingly
In contrast to other EU countries,          large range of products to offer.
clothing multiples in Italy mainly          For example, Coin offers ladies
belong to clothing manufacturers.           clothing from outerwear, under-
The most prominent is Benetton.             wear, night and swimwear to
Other clothing brands with own              jeans and sportswear. Beauty, fit-
shops are Stefanel (womenswear),            ness and shoes also have a major
Max Mara (womenswear), Prenatal             share in the range of products
(childrenswear) or Chicco (chil-            offered in the Coin stores.
drenswear). Since these clothing            Although most of the quality clot-
chains aim to sell their own collecti-      hing items are sourced in Italy
ons, importers will have difficulties in    (often brands) men’s and chil-
selling to them. This situation is total-   drenswear especially is often
ly different to other countries like UK,    imported directly from manufac-
Germany or The Netherlands. The             turers abroad.
Italian clothing multiples only buy a
few items to complete their product         Market share: 8% in 2004
range. However, if they import clot-        Trend: Slightly Increasing
hing, then they buy directly and con-       (1995 = 7%)
centrate on basic items.
                                                                                    111
3.4.3.1.4 Mail-order houses            ted in the North of Italy, are
                                       CoopGS,      Ipercoop,     Gruppo
Due to unsatisfying postal services    Standa,     Conad,     Euromodis,
in Italy, the mail-order business is   Despar Italia and Esselunga. The
little developed and has no real       share of clothing sold through
tradition as in other European         super and hypermarkets is conti-
countries. The leading mail-order      nuous and strongly increasing,
company        is    ‘Postalmarket’.   reaching a level of 12% in 2004.
Although the German mail-order
company Otto gained market             Market share: 12% in 2004
importance, the mail-order market      Trend: Strongly increasing
share has slightly decreased to 2%     (1995 = 6%)
and does not show any significant
signs of change.                       3.4.3.1.6 Sport shops

Market share: 2% in 2004               Sport shops in Italy only offer a
Trend: Slightly Decreasing             limited range of clothing products
(1995 = 3%)                            which all have a sporting attitude
                                       and fit to numerous sporting disci-
3.4.3.1.5 Grocery super- and hyper-    plines.
markets
                                       Market share: 4% in 2004
While multiples and department         Trend: No previous data
stores often buy directly from
manufacturers, the super- and          3.4.3.1.7 Others
hypermarkets sometimes also
make use of agents and impor-          Open (street) markets and consu-
ters/wholesalers based in Italy.       mer fairs are often supplied by
These super- and hypermarkets          specialised wholesalers that
concentrate on cheap products          import directly from emerging and
and are direct buyers/importers of     developing countries. Markets
clothing for which they have instal-   and fairs traditionally play an
led purchasing departments and         important role in Italy. However,
specialised buyers for clothing        the wholesalers involved in this fair
who also travel abroad to inspect      and open market business also
the production partner on the          buy good quality fashion products
spot.                                  that are sold at these fairs as well.
Super- and hypermarkets in Italy       Since the traders exhibiting on
only offer a limited range of clot-    those open markets have to react
hing products; often the consu-        quickly to market trends, they also
mer finds knitwear like T-shirts and   buy selected clothing items from
pullovers, casual trousers inclu-      domestic manufacturers.
ding jeans, underwear items, ano-
raks and all kinds of shirts. The      Market share: 10% in 2004
major supermarkets, mainly loca-       Trend: Increasing (1995 = 7%)
                                                                               112
3.4.3.2 Sales Intermediaries            3.4.3.2.3 Importers and wholesalers

3.4.3.2.1 Clothing Manufacturers        Italian importers operate nationwi-
                                        de and mainly ask for the ‘exclusi-
Clothing manufacturers in Italy         ve distribution rights’ for the whole
often run their own shops to be         of Italy. Importers/wholesalers in
independent      from      retailers.   the classical sense tend to be few
Manufacturers only buy a small          in Italy, because of the high com-
share of their collection from          petition within the distribution
foreign manufacturers, mainly in        system and the strong position of
order to complete the existing          the clothing brands with their own
product range. Large scale clot-        efficient outlets. The importers
hing manufacturers in Italy are e.g.    can often only position themsel-
Benetton, Sixty, Replay, Diesel,        ves by a ‘low price strategy’, e.g.
Gas, Stefanel, Max Mara, Prenatal,      by sourcing basic fashion items in
Marzotto or Chicco. The small           emerging and developing coun-
clothing companies are concen-          tries. The role of Italian importers is
trated in so-called ‘conzorzii’ in      getting less important, because
Biella/Piémont region (woollen          dealing in and importing of clot-
products, coats, jackets, suits),       hing (being a fashion item with its
Como-Lecco/Lombardie           (silk,   up and downs in sales) is increa-
woollen products, coats, jackets,       singly seen as a risk. National
suits), Emilia Romagna (all kind of     manufacturers try to avoid colla-
textiles), Tuscany (woollen pro-        boration with Italian importers
ducts, coats, jackets, suits).          because they have the image of
                                        being too expensive.
3.4.3.2.2 Sales Agents
                                        Similar advantages and disadvan-
As the retailers are scattered all      tages may occur when dealing
over Italy and difficult to reach       with Italian wholesalers. Whole-
from overseas markets, collabo-         salers in Italy normally act only wit-
ration with an agent is common in       hin their region to be more flexible
Italy and generally recommended         for local markets and fairs. The
for better market penetration.          Italian wholesalers mainly buy
Most of the agents are concen-          from local producers. Italian who-
trated in the North of Italy and        lesalers also tend be very sponta-
operate with sub-agents in central      neous in their choice with a strong
and southern Italy. The commissi-       tendency not to bind themselves
on for an agent covering the            in long-term business partner-
whole of Italy is about 8%-15%.         ships.
Independent       regional   sales
agents take between 3% and 7%.



                                                                                  113
3.5 ITALIAN FASHION TRADE               ding companies. The fair also
FAIRS                                   gives space to manufacturers of
                                        non-exclusive clothing. Only one
The Italian market for fashion fairs    out of four sections is reserved for
is quite clearly structured accor-      Italian manufacturers. Moda Prima
ding to their main product seg-         seems to be the most suitable clot-
ments. The main cities for fashion      hing fair for manufacturers from
fairs with European recognition         developing and emerging markets
are Milan and Florence. Italian         wishing to increase their sales to
Fashion Fairs like the ‘International   Italy.
Menswear Fair ‘Pitti Uomo’ still has
an international excellent reputati-    The most important fashion fair for
on and in fact buyers from all over     womenswear is the Milano Moda
the world tend to visit these inter-    Donna in February and September
national fashion events. For            each year. The main fashion fair for
instance, the January 2006 show         menswear is the Pitti Uomo which
will host 651 exhibitors, of which      is quite small but of absolutely inter-
261 come from abroad. The orga-         national importance with many
niser expects approximately             buyers from overseas. The chil-
28,000 visitors.                        drenswear fair Pitti Bimbo is held
                                        twice per year (January and July)
The exhibitors at Moda Prima in         and is the European trendsetter for
Milan are manufacturers of ready-       childrenswear with an international
to-wear clothing from Italy and         concept, both on the buyers’ as
from countries like France, Spain,      well as the exhibitors’ side.
UK and Germany, Eastern Europe
and Asia. The trade show aims to        The description of the specialised
address major Italian retailers like    clothing fairs below only includes
departments stores, chains and          events with an international
mail-order companies, but also          approach.
wholesalers, importers and tra-




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




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



Zara                                   Product range: Ladies, men’s,
Galería Passarella nº1                 childrenswear
I - 20122 Milano                       Price segment: mid level
Tel.: +39 (0) – 390 276 455 51         Number of outlets: 2 (in Italy)
Fax: +39 (0) – 390 276 455 500
www.zara.com


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                          Product range: young fashion
Zona Ind.le ’A’                      Price segment: mid level
I - 62012 Civitanova Marche (MC)     Number of outlets: 31 own, 39 dep.
Tel.: +39 (0) – 7 3389 5511          stores, 3500 multi-brands
Fax: +39 (0) – 7 3389 5518           Note: Brand ‘Fornarina’
fornari@fornari.com
www.fornari.com



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




Sport’85 srl                         Product range: ladies’, men’s wear
V. Piave, km 68.600                  Product range: jeans and casualwear
I - 04100 Latina (LT)                Price segment: lower level
Tel.: +39 (0) – 773 486456           Number of outlets: 24
Fax: +39 (0) – 773 660624
www.sport85.it




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: men’s, 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: men’s, 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                Product range: men’s, ladies’ and
15, C. Ventidue Marzo              childrenswear
I - 20129 Milano (MI)              Price segment: lower to mid level
Tel.: +39 (0) – 2 5990 2457        Number of outlets: 147 stores + 230
Fax: +39 (0) – 2 5990 23 29        franchise partners
www.upim.it                        Note: belongs to La Rinascente



Mail Order Companies
G.D.A. SpA
Via Lenticchia, 24
I - 22100 Como (CO)
Tel.: +39 (0) – 31 5001111
Fax: +39 (0) – 31 5001191
shirty@gda.it
www.gda.it


Grocery Super- and Hypermarkets
C.I.S. COOP Italia                 CONAD Consorzio Nationale
Non-Alimentari r.l.                Dettaglianti scarl
24, p. Mercant                     Via Michelino, 59
I - 50019 Sesto Fiorentino         I - 40127 Bologna
Tel.: +39 (0) – 55 444840          Tel.: +39 (0) – 51 508111
Fax: +39 (0) – 55 4481243          Fax: +39 (0) – 51 508414
www.e-coop.it                      www.conad.it



EUROMADIS                          Gruppo DESPAR ITALIA
Via Christoforo Colombo, 51        Via Caldera, 21
I - 20090 Trezzano sul Naviglion   I - 20137 Milano
Tel.: +39 (0) – 2 48402900         Tel.: +39 (0) – 2 409091
Fax: +39 (0) – 2 48402038          Fax: +39 (0) – 2 40918177



Metro SpA                          Lombardini Holding SpA
Via XXV Aprile, 23                 Via Provinciale, 80
I - 20097 San Donato Milanese      I - 24044 Dalmine BG
Tel.: +39 (0) – 2 517 11           Tel.: +39 (0) – 35 432 0111
Fax: +39 (0) – 2 517 16262         Fax: +39 (0) – 35 4320580



                                                                         120
Manufacturers/Importers and
Wholesalers/Importers

G. Armani Spa                        Product range: children’s, 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 Sant’Egidio 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: children’s, 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                    million people. The main industries
    SITUATION                               in Spain consist of textiles and
                                            apparel (including footwear), food
    Spain has a mixed capitalist eco-       and beverages, metals and metal
    nomy with a per capita GDP of           manufactures, chemicals, ship-
    about 80% of the four leading           building, automobiles, machine
    Western European economies.             tools and tourism.
    The former conservative govern-
    ment under Jose Maria Aznar pur-        Between 2000 and 2004 there
    sued a policy of liberalization, pri-   was a shift of the labour force.
    vatization, and deregulation of the     68% of the labour force is employ-
    economy, introducing several tax        ed in the services industry, a rise
    reforms to achieve this goal.           of 4%, while only 3% work in agri-
    Unemployment has been steadily          culture. The labour force in indu-
    falling, but still remains high at      stry remains stable at 28.5%.
    10.4%.
                                            The socialist government will face
    Given the background of a falte-        considerable challenges during
    ring European economy, the              the period under study. Demands
    country’s growth of 2.5% in 2003        for greater devolution, and possi-
    and 2.6% in 2004 was considered         bly secession, by some regions
    satisfactory. The new socialist pre-    (especially the Basque and
    sident, José Luis Rodríguez             Catalonia regions; 80% of Spain’s
    Zapatero, elected in March 2004,        textiles are produced in Catalonia)
    has initiated economic and social       are causing instability and are like-
    reforms that are generally popular      ly to undermine the cohesion of
    among the people except for reli-       the socialist party. The budget is
    gious and other conservative ele-       expected to be in deficit during
    ments. Spain will have to focus on      the period. With the Euro area
    adjusting to the monetary and           economy faltering, Spanish eco-
    other economic policies of an           nomic growth is expected to slow
    integrated Europe, especially after     to 2.6% by 2006. The rate of
    the enlargement of the EU in 2004       unemployment will fall, but only
    which will leave Spain with less EU     slightly, reaching just under 10% in
    subsidies. Reducing unemploy-           2006. The economy will suffer, as
    ment and absorbing widespread           is the case for other countries,
    social changes will pose other          under high oil prices, which alrea-
    challenges to Spain over the next       dy rose considerably in 2004 and
    few years.                              even more so in 2005 during the
                                            Hurricane Season which destroy-
    In 2004, Spain’s GDP increased to       ed US oil platforms along the Gulf
    € 795.4 billion, but GDP real           Coast.
    growth rate has fallen to 2.6%.
    The inflation rate was 3.2% and
    the labour force stands at 19.33
                                                                                    125
4.2 THE MARKET FOR                       The EU’s approach to resolving
OUTERWEAR                                the issue in June was to sign an
                                         agreement with China imposing
4.2.1 Market size                        new quotas on ten categories of
                                         textile goods, limiting growth in
Unlike in other Western and              those categories to between 8%
Northern European countries,             and 12.5% a year. The agree-
the textile and clothing industry is     ment, which runs till 2007, is sup-
the most important industrial            posed to give domestic manu-
sector in the Spanish economy.           facturers time to adjust to a world
Spain is a major world producer          of unfettered competition.
of textiles and apparel and the
country’s economy relies heavily         In 2004, Spain’s economy conti-
on this sector. The Asian crisis         nued to grow as did the textile
and the low growth of other              economy, even if a certain sta-
world markets caused a strong            gnation of industrial production
entrance of foreign textile pro-         was visible. Since the introducti-
ducts into European markets              on of the Euro in 2002, Spaniards
including Spain, creating fierce         have followed the European
competition, especially after the        trend of spending less – which is
World Trade Organisation’s long-         especially the case in Spain as
standing system of textile quotas        many citizens keep having trou-
for China expired at the begin-          ble converting Euros into pese-
ning of 2005.                            tas (1€ = 166 ptas.).



Table 4-1: Spanish textile
production in comparison to other
EU countries, 2004


 Country               EU turnover

 Italy                            36 %

 France                           12 %

 Germany                          11 %

 Spain                            8%

 UK                                7%

Source: CBI Market Survey, 2005




                                                                               126
Table 4-1 underlines the strong posi-        turers from        foreign    overseas
tion of Spanish clothing production          countries.
at EU level: Spain ranks in fourth
place among all EU member coun-              4.2.2 Market characteristics
tries after Italy, France and Germany
but has a stronger textile production        The present situation of the clothing
base than e.g. UK (which has a               market in Spain is obviously very
comparatively much stronger eco-             much related to the status of the
nomy in general). All the other coun-        Spanish clothing industry. The situa-
tries, such as Austria, Ireland,             tion in the apparel market can be
Portugal and the Scandinavian                characterized as follows:
countries, each contribute less than
5% to EU textile production.                 The total Spanish knitwear and
Switzerland, which has a strong              made-up clothing industry is highly
national textile production base             fragmented with 4,525 clothing
mainly in the upper market segment           manufacturers and 820 knitwear
is not considered in this evaluation.        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         outsourced to small and medium-
2004 for men’s, women’s and chil-            sized workshops. Many large com-
dren’s outerwear amounted to                 panies are looking for lower labour
approx. 12.8 billion €. Nevertheless,        costs in other countries such as
it showed a 3.5% decrease to                 Portugal, Morocco and Tunisia. 2/3
2003. Compared to Italy, for exam-           of total Spanish clothing exports go
ple, Spanish production is fairly low.       to other European markets. The
At the same time imports have                main clothing suppliers’ are China
increased in the last two years              and Portugal, and the main custo-
15,8%. It can be expected that this          mers are Portugal and France.
trend will continue at least for the
next 3 years offering better sales
possibilities for apparel manufac-
                                                                                        127
Innovation, just-in-time supple-      As in all countries analysed for this
ment, continual renewal of stock      survey, children and teenagers
with the most recent fashion          have a low share in the total popu-
trends and satisfying customer        lation. Only approx. 7.8 million
demands are immediate success         Spanish citizens are younger than
formulas of the largest Spanish       20 years old. The prospects for
companies.                            the childrenswear sector are not
                                      positive: in the year 2005, only 1.8
Clothing sales through Internet       million children were between 5
are less successful than in           and 9 years old and represented
other European countries like         the smallest age group of all
Switzerland, Germany, Nether-         (except those over 75 years old).
lands or UK. Only 1% of the
Spanish population uses the           The export manager from abroad
Internet for shopping purposes.       wishing to enter or to sell more in
The general aversion to compu-        the Spanish clothing market
ters, problems with logistics, lack   should follow and/or anticipate
of amusement during the purcha-       these developments and be pre-
se are reasons for the low rate of    pared to further develop his col-
e-commerce-based clothing pur-        lection according to the demands
chases.                               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).
Spain’s 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 dominant market position, fol-
The Spanish clothing market can                    lowed by menswear, leisurewear
be divided into four major product                 and childrenswear. Menswear has
groups: womenswear, menswear,                      been the fastest growing market
childrenswear and active sports-                   segment. Also, the leisure clothing
wear. At present, there are no                     and sportswear segment show a
exact sales figures for the respec-                positive development. The chil-
tive market segments available.                    drenswear segment has lost mar-
According to industrial sources,                   ket share, mainly because of low
women’s and girls’ wear repre-                     birth rates in Spain and decreasing
sent 2/3 of the total value of the                 prices, resulting in lower sales
fashion market in Spain.                           figures.




                                                                                         129
Figure 4-2 indicates the shares of          womenswear has gained massive
the respective segments in the              shares in 2004 (+14%). Child-
total Spanish outerwear market.             renswear represents only 15% in
Nevertheless, it can be stated that         the total Spanish clothing market
menswear has slightly lost market           with an increasing tendency.
compared to 2002 (-2%) and

Figure 4-2: Value sales of outerwear by sector in shares, 2004



       Childrenswear
             15%




                                                           Womenswear
                                                              52%

      Menswear
         33%




Source: Spanish National Statistics Office and CBI, 2004



4.2.5 Consumer behaviour                    have a general preference for
                                            wearing natural materials, dark
4.2.5.1 Consumer preferences                colours, comfortable styles and
                                            classic designs. In contrast, in the
Women and label-conscious                   North of Spain, light colours are
urban young people tend to be               trendier. Six out of ten Spanish
the major target group in the               women regard quality as the main
Spanish       apparel     sector.           aspect in their buying decision
Consumers in Spain attach a                 while 30% feel that design is the
great deal of importance to                 most      important       criterion.
fashion and are beginning to care           Surprisingly, price is the most
more and more about what they               important decision factor for only
wear, giving special awareness to           10% of women, in contrast to atti-
brand names. Interviews and                 tudes in Northern EU countries
trend research in Spain have pro-           and Switzerland.
ved that professional women


                                                                                   130
Table 4-7 indicates the most com-          to 34; their average is more
mon shopping places for Spanish            than 10 purchases per year.
apparel consumers among all kinds
of distribution channels for clothing.   - Spaniards pay increasing
There are some remarkable diffe-           attention to brand names –
rences between the Spanish and             especially young consumers
the ‘average’ European consumer.           and service quality.
The ‘No. 1 shop’ type are indepen-
dent retailers with a preference of      - The country of origin of the
37%, which is also the most prefer-        product purchased is for
red retail type all over Europe. They      Spanish consumers mostly
are followed by clothing multiples         irrelevant.
(24%) and department stores
(14%). Purchases through home            - Spanish consumers are
shopping channels (1%), factory            less ecologically conscious
outlet channels, large suburban            e.g. compared to the
stores, although growing, are still        Swiss, Germans or the
relatively rare in Spain.                  Scandinavians, and requests
                                           for ‘ecological standards’ in
                                           terms of clothing presently
 Spanish clothing consumers                can only be observed in
 can be briefly characterized              large cities like Madrid and
 by the following statements:              Barcelona.

- The Spanish consumers do
  not have a tendency to                 The differences in consumer pre-
  prefer the same shop;                  ferences compared to Western
  instead, they look for diver-          European         countries        like
  sity in their shopping locati-         Switzerland and Germany is the
  ons.                                   cut of ladies outerwear. Due to the
                                         average smaller size of Spanish
- Although this habit has                ladies, the pattern is slimmer in
  decreased, approximately               Spain (e.g. a Swiss/German size
  20% of Spaniards still go              38 is size 40 to 42 in Spain). Also
  shopping with their families           trousers with ‘extra length’ (like 36
  /relatives (in comparison:             and 38 are rarely in demand).
  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
                                                                                  131
4.2.5.2 Consumer expenditure            It is obvious that expenditure on
                                        clothing depends to some extent
Consumer spending on clothing in        on the geographical zones (where
Spain is below average levels in        the consumers live). Firstly, the
other       European      countries.    reason for these differences is the
Average spending on clothing in         social life, the income and the pre-
2004 amounts to € 527 per               stige, which play an important role
capita, which is clearly below          in the North of the country.
Italy’s rate of € 749 or € 880 in the   Secondly, the climate influences
UK in the same year. It also            expenditure on clothing, e.g. in
decreased in comparison to              the colder North, the relatively
Spanish total consumption.              more expensive outerwear items
                                        like coats, jackets etc. increase
According to the results of a mar-      the per capita consumption in
ket survey carried out by the           value terms. The ‘economic cen-
Spanish designer firm ‘Miguel Gil’,     tres’ are the regions with the hig-
based on a poll among 1000              hest readiness to spend money
women living in Spain’s major           for clothing like Cantabria,
cities, women are mostly respon-        Navarra, Rioja and Ceuta/Melilla.
sible for the steady increase in
family clothing expenditure. Most       Statistics regarding general inco-
women are indifferent to clothing       me show that the average expen-
origin. However, if they have the       diture by household in Spain was
chance to choose the origin of the      € 22688 in 2004 (=100%). Out of
clothing item, more than a third of     this amount the average expendi-
women prefer Spanish brands             ture for clothing and footwear was
and fashion.                            € 1451, which represents a share
                                        of 6.4%.

                                        According to industry sources,
                                        women’s 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                                6.812,0                     6.503,0
                        6.558,0
            12.000,0

            10.000,0

             8.000,0

             6.000,0
                        10.084,0                    10.616,0                    10.919,0
             4.000,0

             2.000,0

                  0,0
                          2002                        2003                        2004


                          Women's and girl's wear              Men's and boy's wear




Source: CMT Espana and Euromonitor, 2004


4.2.6 Price development of clothing                      The strong increase of clothing
                                                         imports, mainly from developing
As the Spanish clothing market is                        countries into Spain has led to
still dominated by the strong                            more competition and has limited
national clothing production, price                      the inflation for clothing items. As
developments also depend on                              the production costs for clothing
the national industry to a large                         in Spain have been lower (e.g. for
extent. Due to the weakness of                           labour, logistics, marketing) com-
the € until the beginning of 2000,                       pared to Western European
and the increased costs for ener-                        countries, the price level for appa-
gy and raw materials in the same                         rel has been approximately 10%
period, most of the Spanish                              lower. With the introduction of the
manufacturers and consequently                           €, the prices have adapted more
the retailers have been forced to                        to the Western European level.
increase their prices for outerwear
products.                                                According to the Textile and
                                                         Outerwear Information Centre
However, the national consumer                           (CITYC) in Barcelona, the mark-up
price index compared to the clot-                        for a Spanish retailer ‘theoretically’
hing price index (1.8%), was signi-                      is at 100%; in practical terms, due
ficantly high at 3.2% in 2004.                           to sales and reductions, figures
General inflation rates in Spain of                      run at only 70%. This tendency to
over 3% (EU average 2.5%) have                           stronger price reductions, lower
also been stated for 2005.                               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


                        6


                        5


                        4

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

Looking at the 2004 total figures
in Table 4-3, the import share of
men’s 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                 highest import increase of all seg-
woven outerwear into Spain.                    ments analysed with 38.5% in the
Generally speaking, imports to                 three years since 2002.
Spain in almost all product cate-
gories have increased year by                  Thus, best prospects for imported
year since 2002. Looking at the                apparel include business wear
total imports of woven outerwear               (basic colours, good quality, medi-
for women or girls, imports from               um-high price) for women as well
2002 to 2004 in value terms                    as high quality sportswear with a
increased more strongly than for               casual style and excellent quality
men. The imports of woven men’s                materials (mainly natural fibres)
or boys’ outerwear increased by                with sophisticated styles and pat-
14.5% from € 1032.2 million in                 terns. Casual wear, mainly denim,
2002 to € 1182.4 million in 2004,              cotton-made products and knit-
whereas       the    womenswear                ted apparel, have also been in
imports for the same product                   strong demand and sales pro-
groups increased by 38.5% from                 spects for these items have been
1005.4 million € in 2002 to 1392.6             rated as positive. Spanish youth is
million € in 2004.                             strongly influenced by fashion
                                               trends from casual wear in gene-
The woven women’s and girl’s                   ral (‘GAP style’) and it can be
outerwear imports increased con-               stated that imports in general
tinuously from 2002 to 2004 and                have very good prospects in this
amounted to € 1182.4.3 million in              sector.
2004. This segment shows the

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

                                                                                         138
4.3.2.1 Largest supplying countries of   4.3.3 Largest suppliers of outerwear
OPT outerwear, 2002 - 2004
                                         The ten major supplying countries
The actual ‘Outward Processing           of clothing from non-European
Trade’ (OPT) business - usually          countries are – according to their
operated by apparel manufactu-           importance – China, Morocco,
rers - in Spain plays only a negligi-    Bangladesh,      Turkey,     India,
ble role and represents only 1.3%        Indonesia, Pakistan, Vietnam,
of total imports from extra EU           Thailand and Hong Kong. The two
countries.                               main extra-EU suppliers of fashion
                                         clothing, China and Morocco,
From the statistical point of view,      represent 56.9% of the entire
only incomplete figures are availa-      extra-EU import volume, which
ble (probably a problem of decla-        constitutes an increase of 11%
ration of imported goods). The           compared to 2001, whereas the
No. 1 OPT supplier is Morocco            two main EU suppliers Portugal
with 2 115 000 € imports in 2004         and Germany represent only
(in 2003 only 9 000 € !) followed        28.3% of the whole EU import
by China, Bulgaria and Hong              volume. In general, approximately
Kong. Basically, there are two rea-      37.5% of the import volume is
sons for the extremely small OPT         supplied by EU member states
business: a. the strong clothing         and the rest comes from devel-
production base in Spain with rat-       oping countries.
her competitive prices and b. no
tradition in OPT business.               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                      Specialized franchise chains have
                                         nearly doubled their market share
4.4.1 Developments in the retail trade   in the past decade at the expense
                                         of independent retailers. These
The fierce competition on the            often ‘single brand oriented’ retail
Spanish market, partly due to            channels, along with hypermar-
more imports from abroad, has            kets, gained the greatest market
led to structural reforms at the         share at the expense of the multi-
retail level. The expansion of           brand independent shops that are
department stores resulted in a          unable to respond as quickly to
decrease in the number of inde-          changing market trends. As
pendent specialized shops. Other         stated above, close collaborations
distribution channels, such as           are often used in view of Spain’s
mail-order houses and clothing           existing industrial and trading
markets, suffered and lost market        infrastructure along with franchi-
share. In 2004, retail trade show-       sing, considered an excellent
ed rising turnover, although with        means for penetrating the
falling sales volume. Apparently,        Spanish market.
many retail shop owners and mul-
tiples have changed their marke-         Today, hypermarkets account for
ting concept towards high-quality        nearly 13% of total clothing retail
units. Each year, small indepen-         sales by value, a dramatic change
dent multi-brand stores are stea-        from 15 years ago when most
dily losing market shares to other       such outlets sold only socks and
more dynamic retail channels; this       underwear. All the large hyper-
trend has even accelerated in the        market chains, Carrefour and
last few years.                          Alcampo in particular, carry a wide
                                         range of clothing, especially chil-
In Spain there are five large            drenswear.
groups that control one third of
the total retail market for men’s,       The further strategy of the clot-
women’s and childrenswear: El            hing industry, partially running their
Corte Inglés, Inditex, Carrefour,        own retail outlets, includes the
Cortefiel and Mango control 35%          increase of productivity in order to
of the total sector turnover. The        lower labour costs, and a higher
ten largest companies account for        dislocation of the production to
42% of all retail sales. In 1992         countries with low production
there were 55 190 clothing retai-        costs. These cost-saving strate-
lers in Spain. Over the past deca-       gies have been completed by a
de this number has grown by              very sophisticated supply-chain
nearly 30% to 70 612 outlets. Less       management to provide the fran-
than half are independent multi-         chise shops with new fashion
brand shops.                             items on a weekly or monthly
                                         basis.

                                                                                  141
The Inditex Group has achieved a       store with the idea of producing
worldwide leading standard with        fashion clothing at an affordable
almost perfect logistics and very      price. Over the past five years,
short    lead-times     for   new      Zara has increased the number of
ranges/designs of less than 6          stores from 180 (mainly in Spain)
weeks. It can be expected that         to 816 in 46 different countries.
the Spanish clothing retailers will    INDITEX in total runs 2 567 shops
offer greater segmentation in the      in 59 countries. Revenues have
product lines offered and speciali-    grown by an average of 27% a
ze more in market niches, mainly       year since 1998. As can be seen
within the low and upper price         from Figure 4-6, the Inditex group
ranges.                                today consists of eight major
                                       chains: Zara (men’s, women’s and
4.4.2 Leading retailers                childrenswear), Zara Home (home
                                       textiles), Pull & Bear (menswear),
As mentioned before, the Spanish       Massimo Dutti (men’s and
clothing retail structure can be       womenswear), Kiddy's Class
characterized by a strong con-         (childrenswear), Bershka, Oysho
centration on only a few compa-        and Stradivarius (both women’s
nies. Further, a significant part of   and girls’ wear).
the turnover is made by distributi-
on chains such as C&A, or inter-       INDITEX provides the flexibility and
national franchise companies like      quick response to market trends,
Benetton, Pimkie or Promod.            while other Spanish clothing firms
                                       are based on designer or seaso-
Department store sales (in Spain       nal collections. Designers are in
El Corte Inglés) represent approxi-    constant touch with store mana-
mately 14% of the total clothing       gers to find out which items are
market in value. The El Corte          most in demand. The plant, in
Inglés group includes the fran-        turn, ships the goods to the stores
chise chains Sintesis, Cedosce,        twice a week, thus eliminating the
Tintoretto and Amitié.                 need for warehouses and kee-
                                       ping inventories low.
The most successful Spanish clot-
hing retailer, INDITEX in La Coruna
(see Figure 4-6), became one of
the world’s 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
                                                                              142
Figure 4-6: INDITEX – Principal clothing chains by market share, 2004



                         % of total sales
                                                                    Zara
                          1% 1%
                    4% 2%                       68 %                Bershka
             9%
                                                                    Oysho
    8%
                                                                    Pull & Bear
                                                                    Stradivarius
    7%
                                                                    Zara Home
                                                                    Massimo Dutti
                                                                    Kiddy's Class


Source: Inditex Annual Report, 2004


European firms such as Gucci are       with ‘Levi Strauss España’ in men’s
successful in the womenswear           and women’s leisure clothing. Two
market. Dutch/German C&A tar-          leading Spanish specialists in
gets a bigger share in the market.     women’s jeans and trousers are
Other successful European chains       ANINOTO and JOCAVI, which are
in Spain are the Italian Benetton,     popular among women of all ages.
Max Mara chains and the French
Pimkie. The Swedish Hennes &           Table 4-6 gives a survey on the
Mauritz chain has operated in the      major clothing companies, most of
Spanish market since 2000 and          them having an own production as
plans an aggressive expansion,         well as own retail outlets among
opening numerous outlets in major      which MANGO, ZARA and COR-
Spanish cities. The American GAP       TEFIEL have the most advanced
competes successfully with Zara        marketing concept and are suc-
and Mango, offering young              cessfully operating all over Europe
fashion at low prices.                 and partially worldwide. In the table
                                       below it becomes obvious to what
The Barcelona-based Armand             extent Inditex dominates the
BASI, originally a knitwear compa-     Spanish clothing market as it
ny, is also an important supplier of   penetrates the market with a high
men’s and womenswear, as well          share of shopping outlet stores.
as the Galician-based CARAMELO         Another big player is the ‘El Grupo
chain. As regards jeans and casu-      CORTEFIL SA’ in Madrid with 1 170
alwear, the Valencia-based SAEZ        shops which plans to extend the
MERINO, with its Spanish bull          number of shops to 2 000 by 2010
trademark ‘Lois’ brand, competes       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

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

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         franchise basis or a mix of both
retailers                                 company-run stores and fran-
                                          chises. These often single brand
Key characteristics: These spe-           retail channels, along with hyper-
cialized clothing shops are still the     markets,     have     gained    the
main retail outlets for garments in       greatest market share at the
Spain (Jeans-shops, Boutiques,            expense of the multi-brand inde-
sportswear-shops), although the           pendent shops. Like France and
market share of these shops has           the UK, Spain possesses favoura-
been slightly decreasing. They still      ble regulations for franchise com-
play an important role mostly in          panies.
the North of Spain, although even
here the importance for this distri-      Market share: 24% in 2004
bution channel is shrinking. Each         Trend: slightly increasing
year small independent multi-             (2002 = 20%)
brand stores steadily lose market
share to other more dynamic retail        4.4.3.1.3 Department / variety stores
channels (like large department
store El Corte Ingles, C&A and            Key characteristics: Department
other better organised forms of           stores combine a wide range of
retail). This trend has accelerated       branded goods and private labels.
in the past few years, mainly             The prevalent Spanish depart-
because of their limited capabili-        ment store is El Corte Inglés, the
ties to respond quickly enough to         store presents more than 30
changing market trends and the            brands of men’s, women’s and
limited choice of products in the         childrenswear. Many of these
shops.                                    brands originate from the Induyco
                                          Group (which is the owner of El
Market-share: 37% in 2004                 Corte Inglés). However, a large
Trend: Slightly decreasing                portion of the assortment are
(2002 = 41%)                              well-known Spanish or foreign
                                          brands. According to our market
4.4.3.1.2 Clothing multiples              observations, entry to the Spanish
                                          market through El Corte Inglés for
Key characteristics: Clothing mul-        companies with substantial sales
tiples mainly or exclusively have         volume has been indispensable
only one brand label in their             up to now. Despite strict terms of
assortment for fashionable pro-           admission (restrictive terms of
ducts with short rotation times           payment, certain levels of turno-
(like Mango). As a result of              ver etc.) set up by the leading
aggressive expansion plans,               department store, many brand
these specialist chains account           manufacturers try to sell their gar-
for a fairly percentage of total retail   ments to El Corte Inglés.
clothing sales in Spain. Many of
these chains operate on either a
                                                                                  147
Due to strict brand orientation, the     4.4.3.1.5 Textile discounters
department store offers easier
access for well known brands and         The distribution of clothing in
companies with a good image.             the lower price segment in Spain
Companies from developing                is mainly handled by the grocery
countries have the best access           super- and hypermarkets. Spe-
chances to El Corte Inglés by offe-      cific textile discounters operate
ring their assortment to the ‘priva-     more on a regional level and are
te label buying managers’ who            very difficult to identify at all. The
source their products mainly from        textile discounters mainly buy
overseas suppliers.                      from wholesalers and importers
                                         based in Spain. Therefore clothing
Market share: 14% in 2004                manufacturers        from     abroad
Trend: Constant (2002 = 14%)             should contact these importers to
                                         also penetrate the ‘clothing dis-
4.4.3.1.4 Mail-order houses              count’ business. Against this
                                         backdrop, it is obvious that speci-
There is very little information avai-   fic figures about the market sha-
lable about mail-order houses in         res and the development of texti-
Spain. The major unit is VENTA           le discounters are not available. It
CATALOGO in Barcelona which              should also be mentioned that
has reasonable sales all over            discounters like H&M, Zara and
Spain. Similar to other southern         Mango have accelerated their
European countries like Italy,           international expansion in the last
‘home shopping’ is not very popu-        few years. Thus a reallocation in
lar, due to the partially unsatisfac-    the market share is likely.
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%)

                                                                                  148
4.4.3.1.6 Grocery super- and hyper-      rised under ‘Other forms of retail’.
markets                                  The market share of this retail
                                         channels is slightly decreasing.
Key characteristics: The main acti-
vities of grocery super- and             Market share: 6% in 2004
hypermarkets lie originally in the       Trend: slightly decreasing
selling of groceries. Both distributi-   (2002 = 7%)
on channels are gaining importan-
ce in Spain. The price level of clot-    4.4.3.2 Sales Intermediaries
hing sold by super- and hyper-
markets ranges in the lower to           4.4.3.2.1 Clothing Manufacturers
middle level. The important sup-
pliers are large supermarkets like       As stated above, the clothing pro-
ALCAMPO, ALIMENT, MERCADO-               duction sector plays a dominant
NA, GIGANTE and CARREFOUR.               role in the Spanish industry. There
The childrenswear sector plays a         is a growing trend among manu-
particularly important role for this     facturers to create their own chain
distribution channel.                    of distribution. Franchise has
                                         become a very common system
Market share: 13% in 2004                for brand name distribution of
Trend: increasing (2002 = 12%)           fashion products. The latest avai-
                                         lable analysis of the Spanish
4.4.3.1.7 Sport shops                    Franchise Association from 2001
                                         states that there are over 78
Sport shops in Spain only offer a        Spanish brand name franchises in
limited range of clothing products       the fashion sector with almost
which all have a sporting attitude       3 000 boutiques. In the meantime
and fit to numerous sporting disci-      this figure will have gone up by
plines.                                  approximately 10-12% (more
                                         details under www.franquiciado-
Market share: 5% in 2004                 res.com).
Trend: no previous data
                                         A new way of distributing gar-
4.4.3.1.8 Street markets and other       ments for clothing manufacturers
                                         originates from the USA: Sales
According to desk-research and           through Factory Outlet Centers
interviews conducted in Spain,           (FOCs). Garments are sold direct-
open street markets and to a les-        ly from the factory to the consu-
ser extent consumer fairs and fac-       mer. This distribution way con-
tory outlets are the major distribu-     cerns ‘leftovers’: goods from
tion channels for clothing summa-        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           4.4.3.2.3 Sales Agents
Stores’ near Barcelona, which
offers brand apparel at reduced         Sales agents play a major role in
price in 40 shops (Cacharel,            the Spanish clothing market. This
Dockers, Levi’s, Timberland). Two       refers mainly to Spanish and
other FOCs are situated near            European clothing brands which
Madrid (‘Las Rozas Village’ in Las      are distributed via a network of
Rozas and another one in Getafe).       sales agents all over the country.
According     to   Factory-Outlet       Only those clothing manufactu-
Center.biz there are 6 registered       rers from abroad wishing to enter
large FOC’s in Spain in 2006.           the Spanish market with an own
                                        product range are advised to
4.4.3.2.2 Central Buying Associations   appoint a sales agent to sell their
                                        collection to the major retailers.
As the share of independent             These sales agents should be
smaller retailers in Spain (at 37%)     located near or in the major ‘clot-
is high, there is a relatively broad    hing areas’ of Spain like Madrid,
basis for potential member com-         Seville, Barcelona and La Coruña
panies for buying associations.         to build up and maintain contact
Nevertheless, there are only two        to the ‘key players’ in Spain.
buying associations of importance
in Spain: UNA VIVO in Madrid with       4.4.3.2.4 Importers/wholesalers
160 members and IFA ESPANOLA
in Madrid with 62 members, foun-        Given the strong increase of clot-
ded in 1967. The members of the         hing imports into Spain since the
latter are more supermarkets and        end of the nineties, the necessity
cash-and-carry markets than             for     the     assignment      of
retailers.                              importers/wholesalers has increa-
                                        sed.         Some         Spanish
The low importance of buying            wholesalers/importers have come
associations in Spain can be main-      to supply the chains and the
ly explained by the fact that the       brands with ‘price attractive and
owner of a single boutique or a         fashionable’ collections that they
small number of shops buys over         often develop with manufacturers
80% of his product range from           from      overseas      countries.
local manufacturers and/or from         However, interviews in Spain have
sales agents representing foreign       shown that the large clothing
brands. Therefore, the buying           companies like Mango, Inditex or
associations are of less importan-      Indyuco often have their own
ce for foreign manufacturers wis-       import departments and sourcing
hing to export to Spain.                and control systems worldwide.
                                        Therefore, the clothing supplier
                                        from abroad should approach
                                        retailers and manufacturers in
                                        Spain directly.
                                                                              150
4.5 SPANISH FASHION                    exhibition area of 35 800 sq. m.
TRADE FAIRS                            The ongoing growth SIMM has
                                       enjoyed has made this event the
The important Spanish fashion          second most important fashion
fairs take place in two big cities:    trade fair in Europe in terms of net
Barcelona and Madrid. The signifi-     exhibition area, based on a solid
cant fashion fair in Barcelona is      and constant drive to ensure qua-
BCN Fashion Week. The main             lity. Furthermore, the fair will featu-
focus of this fair is casual & high    re strong participation on the part
quality wear and prêt-à-porter for     of international companies and
men and women, accessories             buyers from other countries, for
exhibition, swimwear and lingerie      which SIMM represents an impor-
fashion.                               tant business centre.

The significant fashion fair in        For childrenswear the ‘FIMI’ in
Madrid is SIMM – International         Valencia is the most important
Fashion Week. It is organized          event. The fair takes place twice
twice a year, in February and          per year and shows baby to teen-
August/September in Parque             ager wear as well as accessories
Ferial Juan Carlos I by IFEMA          and maternity wear. FIMI - the
(Feria de Madrid). The fair focuses    62nd edition of the International
on men’s and womenswear, but           Children's and Young People's
also fur clothing and leather gar-     Fashion Fair in Valencia will take
ments. The fair includes the follo-    place on 13-15 January 2006. At
wing events: INMODA/ANIMODA,           this show all the collections for
IMAGENMODA, INTERMODA, LA              Autumn / Winter 2006-07 will be
GALERIA, PASARELA DE CIBE-             presented. FIMI anticipates the
LES, CIEN POR CIEN, ESPACIO            visit of 7,000 professionals, who
CIBELES, ESPACIO HOMBRE and            have shown great loyalty since
BOUTIQUE EUROPA. From 2006             the fair began. More than 250
onwards        all   shows        in   companies, national as well as
February/September each year           international, originating mainly
will be combined under the name:       from Italy, France and Portugal will
International Madrid Fashion           present the latest fashion trends.
Week. 930 exhibitors will partici-
pate in February 2006 with an




                                                                                 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)      Women’s and mens-         Barcelona   January and
                              wear                                  September

 International Fashion Week   Women’s 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
                              women’s wear                          August

 INTIMA Moda Baño             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, MEN’S AND
CHILDREN’S WEAR IN SPAIN

Clothing Chain Stores

C & A Modas S.L.                Product range: Ladies’, men’s and
Esther Pineño                   childrenswear
Avda. de la Indústria, 17       Price segment: Lower to mid level
E - 28108 Alcobendas (Madrid)   Number of outlets: 47
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                 Product range: Ladies’, men’s and
Calle Serrano 52                childrenswear
E - 28001 Madrid                Price segment: Mid level
Tel.: +34-91-431 6760           Number of outlets: 11
Fax: +34-91-431 67 70           Note: Belongs 1/3 to Cortefiel
www.cortefiel.es




Comerc. Espanola LA             Product range: Ladies’ and
ARANA SA                        menswear
Polígono Industrial El Pla -    Price segment: Lower to mid level
Edificio Arana                  Number of outlets: 42
E - 08800 Barcelona
Tel.: +34-93-668 9061
Fax: +34-93-668 5962



Cortefiel SA                    Product range: Ladies’ and
Avenida Mon Forte De Lemos      menswear + young fashion
s/n                             Price segment: Mid level
E - 28029 Madrid                Number of outlets: > 300
Tel.: +34-91-730 2912
Fax: +34-91-730 2437
www.cortefiel.es



Damart SA                       Product range: Ladies’ and
Calle Gomis 32                  menswear, underwear
E - 08023 Barcelona             Price segment: Lower level
Tel.: +34-93-212 2412           Number of outlets: 22 shops
Fax: +34-93-211 5815            + mail order
www.damart.fr

                                                                    153
Euronido Textil SA               Product range: Ladies’ and
Ctra. Anadlucia, km 6.400        menswear
E - 28041 Madrid                 Price segment: Lower level
Tel.: +34-91-217 3345            (value for money)
Fax: +34-91-365 0848             Number of outlets: 16
www.euronido.es




Inditex SA (‘Zara’)              Product range: Ladies’, men’s and
Poligono Ind. Sabon 79B          childrenswear
E - 15142 Arteixo, La Coruna     Price segment: Mid to upper level
Tel.: +34-981-185400             Number of outlets: > 500 - partially
Fax: +34-981-185454              own production
www.inditex.com




Mango – Punto FA S.L.            Product range: Womenswear, young
Calle Mercaders 9 11             fashion
E - 08184 Palau de Plegamans –   Price segment: Mid level
Barcelona                        Number of outlets: Over 60 + 175
Tel.: +34-93-860 2222            franchising partners
Fax: +34-93-8602 201
www.mango.es



Prénatal SA                      Product range: Childrenswear,
Botanica 29-31                   Maternity wear
Hospitalet de Llobregat          Price segment: Mid to upper level
E - 08908 Barcelona              Number of outlets: 100
Tel.: +34-93-2606000
Fax: +34-93-2606018
www.prenatal.es



Reguero SA                       Product range: Menswear
Roble 3                          Price segment: Lower to mid level
E - 28020 Madrid                 Number of outlets: 14
Tel.: +34-91-4252 880
Fax: +34-91- 571 57 35



                                                                        154
Superconfex SA                         Product range: Ladies’ and
Sierra de Guadarrama 84                menswear
Polígono Industrial San Fernando       Price segment: Lower level
de Henares                             Number of outlets: 12
E - 28850 Madrid                       Note: Daughter company of Dutch
Tel.: +34-91-656 4012                  ‘Superconfex’
Fax: +34-91-677 2935
www.superconfex.nl

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’, men’s 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               Product range: Ladies’, men’s and
Avenida de Portugal 2            childrenswear
E - 21001 Huelva                 Price segment: Lower level
Fax: +34-955-25637               Number of outlets: 8 dept. stores
                                 + 3 discounters




El Corte Ingles SA               Product range: Men’s ladies and
Hermosilla 112                   childrenswear
E - 28009 Madrid                 Price segment: Lower to upper level
Tel.: +34-91-309 7221            (depending on distribution channel)
Fax: +34-91-327 1327             Number of outlets: 37 dept. stores +
www.elcorteingles.es             supermarkets + franchising partners




Galerias Primero SA              Product range: Ladies’, men’s and
Paseo Echegaray y caballero 76   childrenswear
E - 50003 Zaragoza               Price segment: Mid level
Tel.: +34-976-769900             Number of outlets: 11
Fax: +34-976-769901
www.galeriasprimero.es




Jose Luis Gay GA                 Product range: Ladies’ and
Calle Alfonso I n 17             menswear
E - 50003 Zaragoza               Price segment: Lower level
Tel.: +34-976-397150             Number of outlets: 6
Fax: +34-976-396647




Simago SA                        Product range: Ladies’, men’s and
Josefa Valcarcel, 40 duplicado   childrenswear
E - 28027 Madrid                 Price segment: Lower level
Tel.: +34-91-301 80 00           Number of outlets: approximately 15
Fax: +34-91-301 80 23            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 Geltrú               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                menswear
E - 15008 La Coruna                Price segment: Mid to higher level
Tel.: +34-981-146 002              Number of outlets: 25
Fax: +34-981-270103                Note: Manufacturer + retailer
www.caramelo.com



Centro Textil Massana              Product range: Knitwear and
C. Josep Calvet, 80 - Apto. 1052   outerwear
E - 08302 Mataró                   Price segment: Mid level
Tel.: +34-937-415 545
Fax: +34-937-415 553
www.massana.es




Difusion Dignos                    Product range: Knitwear
SL / Dikton’s                      Price segment: Lower to mid level
Tànger 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, men’s and
Tomas Breton, 62               childrenswear
E - 28045 Madrid               Price segment: Mid to high level
Tel.: +34-91-4680 300          Note: 50% production absorbed by
Fax: +34-91-46 78 723          Corte Inglés
www.induyco.es




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
Sepúlveda, 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                    block’ has a share of 70% of all
    SITUATION                               Swiss trade activities. This is main-
                                            ly also due to the seven bilateral
    The Swiss import policy for clot-       agreements between Switzerland
    hing from EU and to a large extent      and the European Union that
    also from non-EU countries is very      came into force on June 1st, 2002
    liberal. Thus, the economy is inter-    and the central location of
    nationally highly integrated, apply-    Switzerland       within     Europe.
    ing an open trade regime for indu-      Exports of merchandise are con-
    strial products. Tariffs on manu-       centrated on a few sectors, parti-
    factured products are generally         cularly machinery, instruments,
    low, and in principle there are no      watches, chemicals and medical
    quantitative restrictions, anti-dum-    products and to a lesser extent
    ping, countervailing or safeguard       textiles and clothing. Exports of
    actions. However, in a number of        commercial services are also
    sectors, the market entry has long      important with about one quarter
    suffered from ‘private’ or ‘informal’   originating in the financial sector.
    barriers that can be attributed to a
    legacy of weak anti-cartellegislati-    As mentioned, the European
    on, specific and protective techni-     countries play an important role in
    cal regulations, certain investment     Swiss trade relations. Germany is
    restrictions, etc.                      the most important trading part-
                                            ner for Switzerland: In 2004,
    Against the backdrop that               32.9% (23 Bn. €) of all imports
    Switzerland has no mineral              came from Germany and 20.3%
    resources, the country is forced to     of all exports (18.8 Bn. €) were
    import, process and resell them         delivered into Germany. Both are
    as products. The ‘service sector’       also important investment part-
    is the most significant part of the     ners to each other. The complete
    economy, employing more the             capital stock of German invest-
    50% of the population. This sector      ments in Switzerland amounts to
    specifically includes banking, insu-    18 Bn. €. Almost 1 800 German
    rance and tourism. Industry and         enterprises are operating in
    trade are the second sectors in         Switzerland. Switzerland, on the
    significance (about 40% of the          other hand, has investments total-
    population are employed there)          ling up to 17 billion € in Ger-
    and include the machine and             many, operating with approx.
    metal industry, the watch industry      1 900 enterprises and 220 000
    as well as the textile and clothing     employees. Switzerland is the
    industry.                               sixth largest foreign investor in
                                            Germany.
    Economic relations with the EU
    have further intensified and
    foreign trade with this ‘country
                                                                                    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                    The MOES agreement benefits
                     OUTERWEAR                             exporters and manufacturers of
                                                           clothing by providing them with
                     5.2.1 Market size                     more competitive advantages on
                                                           the European markets and has
                     Switzerland has a small but very      brought an end to the discrimina-
                     competitive apparel market. In        tion against Swiss textile products
                     2003, the total size of the Swiss     that have been produced in
                     clothing market was about CHF         Eastern and Central European
                     6.8 Billion. Switzerland has very     countries.
                     high labour and production costs,
                     and therefore the industry has the    Clothing imports amounted to
                     tendency to concentrate on high-      5 423 Million CHF in 2004 (see
                     end and/or niche products.            Table 5-2), a 0.9% growth over
                     Switzerland’s apparel industry is     the previous year. At the same
                     experiencing a resizing process,      time, clothing exports accounted
                     based on the following key factors:   for 1 623 Million CHF.
                                                           Due to the fact that Switzerland is
- Worldwide overcapacities                                 a relatively small country, the
- Growing competition from low-                            Swiss clothing industry depends
  wage economies                                           strongly on exports. Local pro-
- Strict displacement competition                          duction accounts for 948 Million
- Lack of market dynamics in textile                       CHF. Thus, imports are five times
  production                                               stronger than local production.
- Market split between expensive                           The total market amounts to
  labels and cheap mass clothing                           6 245 Million CHF and fell by 9.3%
- Consumer price sensitivity                               in 2004.
- Demographic developments
                                                           1
- Discrimination of passive valu-                           Switzerland, Norway, Iceland, Principality of Liechtenstein
                                                           2
  added trade (eliminated by the                            Poland, Czech Republic, Slovakia, Hungary, Bulgaria,

  principle of the Pan European Accu-                      Romania, Slovenia, Estonia, Latvia, Lithuania

  mulation since January 1997), com
  prising EU member States, EFTA1
  and MOES2                                                Table 5-2: Size of the Swiss Clothing
                                                           Market, 2002 - 2004


                      in Mio. CHF               2002       2003             2004                % Change
                                                                                          against previous
                                                                                                      year
Source: SFSO, 2004




                      Import Market              5386      5372              5423                              0,95

                      National Production        1481      1453                978                          -48,57

                      Exports                    1236      1559               1623                             4,10

                      Total Market               6867      6825              6245                            -9,29

                                                                                                                          162
5.2.2 Market characteristics           The Swiss clothing retail market
                                       has undergone a severe concen-
The present situation in the clot-     tration process with a trend
hing market in Switzerland can be      towards factory outlets, (brand)
characterised by the following         chain stores and ‘brand sales
brief statements:                      points’ within larger department
                                       stores    (‘shop-in-shop’).       The
The recent economic improve-           increased use of e-commerce in
ments in 2004/2005 have encou-         the fashion world has imposed a
raged consumer spending. This          challenge to the ‘normal’ retailers.
has resulted in improved pro-          Trends are towards multi-chan-
spects for the clothing sector.        nelling (parallel selling via internet
Sports activities such as basket-      and shops), pre- and after sales
ball, snowboarding, skateboar-         support and mass customized
ding, etc. have spurred demand         offers. Foreign companies have
for young and trendy fashion           gained more and more influence,
wear. Casual and leisurewear           for instance C&A Switzerland,
have also become more popular          H&M and others (see ‘Leading
in recent years. Highly fashion-       Retailers’     and       ‘Distribution
conscious young people are wil-        Channels’).
ling and able to pay higher prices
for well-known labels. The trend       5.2.3 Demographic Characteristics
towards use of natural fabrics and
fibres has slowed down; man-           The Swiss society can be briefly
made fibres that offer easier care     characterized as an aging society.
and washing of clothing have gai-      There are now many more elderly
ned importance. Thus, ecological-      people than 50 years ago. The
ly friendly clothes made of natural    number of citizens over 64 has
fibres which were being introdu-       more than doubled since 1950,
ced at the end of the nineties still   while that of those over 80 has
have a demand but at a lower           even quadrupled. The major age
consumption level.                     group are those at an age bet-
                                       ween 40-64 (34.33%). In con-
The German ecological standard         trast, the number of ‘under twen-
‘Öko-Tex 100’ was introduced           ties’ has increased much less and
more than ten years ago and also       has actually declined since the
plays an important role in             early seventies. This aging pro-
Switzerland. The aim is to ban cer-    cess is the result of a longer life
tain colouring methods, chloride       expectancy and fewer births.
products and heavy metals to           According to birth scenarios
prevent the danger of cancer or        drawn by the Swiss Federal
allergies    (see     www.oeko-        Statistical Office, this trend will
tex.com).                              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                  increase since 1990. Data about
                                                  the specific sales for outerwear
The sales volume increased by                     are not available, however, Figure
2.6% for Swiss clothing and shoe                  5-2 gives a good indication on the
retail in 2004 compared to 2003.                  sales tendencies for clothing and
This has been the first sales                     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                    10.6%. This diverging develop-
development for clothing in 2004.                 ment indicates a price decrease
Clothing sales in quantity terms                  per apparel item in Switzerland
declined slightly by 0.2% whereas                 (basically due to the increasing
the value decreased heavily by                    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           turnover remained stable with a
has grown from 930 Million CHF in       slight growth of 0.5%. Table 5-4
2003 to 950 Million CHF in 2004,        (b) indicates the sales develop-
an increase of 2.2%. The sales          ments of the major product seg-
volume of Underwear declined by         ments Outerwear and Underwear.
2.7% in the same period. The total

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        - Environmentally friendly apparel
Garments increased by 11.9% in the    - ‘Soccer related’ active sports
same period.                            wear as Switzerland qualified
                                        for the FIFA Worl Championship
According to desk research carried      2006
out in Switzerland, the following
product groups have the best sales    The demand for leisure and casu-
prospects in Switzerland:             al wear has increased continuous-
                                      ly over the last few years, especi-
- Young and trendy Sports-            ally for the sportswear and ‘smart
  wear/Casual wear                    casual’ segment. Additionally,
- Jeans wear (either branded or       high-end designer lines can also
  on a value for money basis)-        be quite successful in Switzerland
  Strict displacement competition     with its high standard of living. An
- Well-known street wear brands       ongoing trend is a demand for
  in the mid price range              natural fabrics. Also ‘functional
- Fashionable products at an          clothing’ e.g. with ‘breath-active
  ‘acceptable’ price level mainly     fabric’ is selling well.
  offered by chains
                                                                             166
5.2.5 Consumer behaviour                Modern Swiss men have changed
                                        their attitude to fashion considera-
5.2.5.1 Consumer preferences            bly over the past few years.
                                        According to retail trade sources,
Swiss consumers can be defined          the male customers have ‘grown
as ‘hybrid consumers’, as in other      up’ and know what they are loo-
countries. Market analysis has          king for: fashionable and comfor-
shown that generally speaking the       table clothing of good quality. The
consumers are very well informed        level of sophistication in men’s
about the latest trends in fashion      attitude is increasing. Well-known
and can be considered to be both        brand names are very popular,
sophisticated and brand conscio-        especially among label-conscious
us. This is the case especially for     young consumers.
people with higher income and a
higher standard of living. It is no     Younger people, in particular, are
surprise that well-known clothing       willing and able to pay high prices
brands are popular among Swiss          for well-known labels. Casual clot-
consumers, as they are conside-         hing without a known label in the
red status symbols. On the other        mid price bracket is also in
hand, there are many ‘cheap’            demand. In general, buyers aged
chain stores with a ‘value-for-         25-50 are the most relevant con-
money-concept’ on the market            sumer group for apparel, repre-
which reflects the ‘economic            senting the target group which
sense’ of the Swiss consumer.           spends a high proportion of dis-
                                        posable income on apparel and
Swiss women today can generally         shoes. Quality, functionality, price
be described as fashion oriented        and design, in that order, are the
without following all fashion trends    most important factors for this tar-
immediately. They are usually sure      get group in taking a buying deci-
of their taste and prefer basic and     sion.
‘practical’ garments which can be
easily mixed and matched. Swiss         Children (beginning at kindergar-
women occasionally engage in            ten age) believe they know what
impulse buying, but generally pre-      fashion is and what fashion suits
fer to invest in high quality basics.   them. They have clear wishes and
Working women prefer simple             preferences concerning brands;
and elegant garments of high            they love Hip-hop and Rap styles
quality and comfort. The formal         with wide trousers (baggy trou-
office outfit for working women         sers), jeans and sport shoes.
usually consists of an outfit or suit   Sports brands like Puma, Adidas
with matching blouse or shirt.          etc. have been very much in
Matching accessories like shawls,       demand in 2005. This target mar-
belts, handbags etc. have gained        ket changes its preferences relati-
much more importance in the last        vely quickly.
2-3 years and help to ‘freshen-up’
an existing outfit.
                                                                               167
      5.2.5.2 Consumer expenditures               Swiss Federal Statistical Office
                                                  (SFSO) in 2003. Couples without
      The Swiss population has one of             children have the highest in-
      the highest per capita incomes in           comes with an estimated 10,976
      the world. Households with a single         CHF/month.
      person account for 19.4% of the
      Swiss population and have an inco-          Table 5-5 summarizes the structure
      me of around 6700 CHF/month                 of Swiss household income by size
      according to the last survey of the         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
                                                   The Swiss price index increased
For the last few years, the Swiss                  continuously but very slowly from
clothing market has permitted no                   1999 to 2004 at an average rate
significant price increases. Based                 of 0.9%. In fact, there has been
on stable procurement costs but                    practically no inflation in recent
increased costs for personnel,                     years. Prices for apparel have
rent, energy etc., the margins in all              decreased since 1999. There has
sectors have the tendency to                       been a dramatic price deflation of
become smaller. In this respect,                   clothing since 2001. The reason
the profit situation has become                    can be seen in the heavy price
much worse for companies that                      cuts of Swiss retailers due to the
are concentrated on the national                   fierce competition. On average, in
market only. Therefore, many                       2001 the prices for clothing in
manufacturers are forced to con-                   Switzerland decreased by 5.4%.
centrate on high-quality products,                 More details can be taken from
niche marketing, new fashion and                   Figure 5-3.
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   1999      2000     2001    2002     2003   2004

                               Consumer Proce Index          Clothing Price Index




Source: SFSO, 2004




                                                                                              169
5.3 IMPORTS                              In the year 2003, total imports of
                                         clothing and textiles amounted to
5.3.1 Total imports                      7.47 billion CHF. In comparison,
                                         outerwear imports were 4.59 billi-
Switzerland has an extremely libe-       on CHF, with 1.1% growth in 2004
ral import regime for textiles (no       and with a falling tendency in 2005
import limitations, and some of the      (approx. -0.9%).
lowest import duties in the world).
In addition, developing countries
profit from a 50% import tax
reduction.

Since 2001, clothing imports have
averaged 5.37 Billion CHF. More
details can be taken from Figure

Figure 5-4: Clothing imports, 2001 – 2005

      6




             5.47
                          5.39        5.37                    5.37
                                                  5.27




      5


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

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




                                                                                                                                                  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                      the sales volume in the market as
                                         a whole. However, there are also
5.4.1 Developments in the retail trade   factors which will influence the
                                         future development of the clot-
The liberalization of regulations        hing market positively such as
governing clearance sales in the         demographic development and
retail trade since 1997 has enab-        increasing disposable incomes.
led Swiss retailers to initiate sales
all year round, and not just during      Those groups who are most inve-
fixed periods. While smaller retai-      sting in clothes at present will also
lers in particular fear that the         have the strongest population
department stores and other big          growth within the coming years,
clothing stores will continue to put     basically the age group from 35 to
additional pressure on prices and        65 years of age. The age group
margins by starting the summer           between 45 and 54 have been
and winter sales earlier each year,      strong consumers already in the
other trade sources mentioned            past, and this specific age group
the positive effect the liberalization   will influence the market positively.
has on shops forced to liquidate
their goods in order to renovate or      In general, the situation of the
move the store.                          Swiss clothing retail market
                                         remains difficult, mainly due to
The sales volume in the clothing         more and more competition from
market has shrunk by about 10%           foreign chains (Mango, Zara,
in the three years up to 2004 (in        H&M, C&A Switzerland) but also
value terms). Growth was impe-           Swiss retailers growing stronger
ded by successful trade competi-         like Tally Weilj or Vögele. The spe-
tors and continuing price reducti-       cialised smaller and independent
ons. After the cessation of the          retailers are under pressure and
import/export quotas on January          often can only exist by ‘mixing dif-
1st, 2005 which had specially pro-       ferent labels’ to be attractive for a
tected the European markets              specific target group. There is a
from cheap imports from China            continuing trend to verticalization
for years, the prices fell even          at Swiss retail level, meaning to
more. The market entry of the            manage and control the whole
Italian Oviesse shops (under the         sourcing and distribution process
direction of C&A Switzerland) has        from design of the collection and
brought additional competition, as       production down to the distributi-
has the transformation of COOP           on of the product range in self-
city markets and takeovers in the        owned retail outlets. This sales
mail order business.                     concept means a strict supply
                                         chain management and is increa-
Clothing trends, especially the          singly used also by department-
cessation of fashion dictations or       stores and chains like Globus buil-
dress codes, favour a further fall in    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,
                                                        followed by Vögele, C&A Switzer-
The following clothing retailers are                    land, the PKZ Group and depart-
the important stores and shops                          ment stores such as COOP,
on the Swiss market (section                            Globus, Migros and Manor.
6.4.3. Distribution Channels gives
further detail). The overall compo-                     The Swedish HENNES & MAU-
sition of market leaders has                            RITZ is currently the market lead-
changed dramatically within the                         er. Established in Switzerland in
past few years. Price competition                       the year 1978, H&M now operates
is fierce and deemed dangerous                          49 stores throughout the country.
by experts as customers are get-                        It has a turnover of 619 Million € (3
ting used to special offers. The                        644 Million CHF).


                                                                                                  174
H&M does not produce itself but         set up. Plans are to cut costs by
has a network of 700 suppliers.         6.5 million € this year. The first six
60% of production is placed in          months of 2005 already ended
Asia. A key factor in success           with a profit surplus of 4.4%
seems to be the strategy of cost        (664.5 Mill. CHF).
leadership backed by the globally
operating Swedish headquarters.         CHARLES VÖGELE GROUP does
Two stores were opened in 2004          not have production centres of its
(one for childrenswear). The            own. All clothes are obtained from
management perceives growth             external suppliers. Most purchase
potential in Switzerland as limited     orders (about 95%) are placed
because H&M has been present            directly with manufacturers all
in the market since the late seven-     over the world and produced with
ties.                                   Vögele own-labels. By the vertical
                                        organization, the costs are optimi-
CHARLES VÖGELE MODE AG is a             zed and high quality standards
Swiss-based fashion chain opera-        can be maintained. Vögele runs a
ting in Switzerland, Germany,           clear compliance strategy, expec-
Austria,    Belgium      and      The   ting sustainability and responsibili-
Netherlands. In 2005, Vögele had        ty of its suppliers, e.g. by following
7201 employees and 787 sales            certain minimum social standards,
branches. Group turnover has fal-       environmental rules and product
len from 974.1 Million € in 2002 to     safety standards.
866.2 Million € in 2004 while ear-
nings doubled from 10.3 to 24.4 in      An important event in the anniver-
2003 and remained stable in             sary year 2005 was the revision of
2004. Vögele’s primary market           the Corporate Identity of the
strategy traditionally has been low     enterprise. The new logo repre-
price and still is, though effort has   sents a fusion of dynamism and
been made to ensure high quality        tradition. The main aim is to offer
as well. Break-even was reached         attractive prices and high quality
in the German market in 2005            for ready-to-wear elegance and
year although overall turnover has      style affordable for their custo-
decreased. To respond to higher         mers. In the next few years,
pressure in the market, retail out-     Vögele will expand into new mar-
lets are managed as profit cen-         kets such as Slovenia, Poland,
tres. Consequently, the number of       Hungary and Czech and will
full-time employee has been             strengthen its position in Germany
reduced slightly for the last 2-3       (330 stores at present). In
years. In order to increase pro-        Switzerland, Vögele operates 157
ductivity, a special supply chain       stores, has 2175 employees and a
management division has been            selling space of 129 762 sq. m.



                                                                                 175
Net sales were 485.3 bn. CHF.          large extent. The group has inve-
According to the German textile        sted 100 Mio. CHF every year
publication ‘Textilwirtschaft’, this   since 2003 on restructuring mea-
figure represents a market share       sures. These measures reduced
of 6.1% which is higher than the       the groups sales volume (-24.8%
share of H&M in the Swiss market.      up to 2003). The sales reduction
The range consists of womens-          amounted to about 400 Mio. CHF
wear (56%), menswear (32%) and         and the business result decrea-
childrenswear (12%).                   sed to 1182.8 Mio. CHF in 2004
                                       (-24.8% compared to 2003). As a
ABM (Au Bon Marché) has pulled         result, a profit increase is expec-
out of the market. In 2002, the 56     ted for the current financial year
stores were transformed into           2005 which is not affected by
‘Oviesse’ under the regime of the      restructuring costs any more.
Globus group and a franchise
agreement with the Italian Gruppo      The comparable retail business
Coin. The Gruppo Coin wants to         sales volume in Switzerland was
enter several European markets         achieved with an almost unchan-
with their Oviesse concept.            ged selling space. The Globus
OVIESSE belongs to the big Italian     department stores made a profit
clothing and textile chains with       of 671.5 Mio. CHF in 2004 (-0.2%
about 200 branch offices for           compared to 2003). HERREN
ladies, men’s and childrenswear.       GLOBUS surpassed the previous
The range is positioned in the low     year by 4.8% with 62 Mio. CHF.
price segment and brings out           Oviesse achieved an increase of
novelties on a permanent basis.        6.5% in 2004. The global sales
Store design and product presen-       increase of the Globus group at
tation is highly attractive.           retail level in 2004 was 0.6% com-
                                       pared to 2003.
The GLOBUS GROUP flagship
store in Zurich employs about 420      The GLOBUS GROUP belongs to
employees and achieves a sales         the MIGROS AG. 2004 was a
volume of about 150 Mio. CHF           milestone regarding profits for
yearly on a net selling space of       Migros: After a loss of 59 million €
7,500 sq. m. With a square metre       in 2003, the 2004 profit skyrocke-
sales volume of over 20,000 CHF        ted to 13 million €. This may be
per month it is one of the most        related to disinvesting from
productive department stores of        foreign markets (turnover redu-
the world.                             ced by 24.8%). The Migros Group,
                                       which is still operated as a coope-
The Globus group completed the         rative, is the Swiss market leader
clearing up of unprofitable lines of   in retailing but not in the clothing
business in 2004 and sold its          market.
foreign countries business to a

                                                                              176
Migros puts high efforts in sustai-     sence from 43 to about 70 stores
nability, fair trade and social         in Switzerland. Management
responsibility of the company           expects turnover to exceed 400
towards its own workers, its sup-       Million CHF this year and 500
pliers and society in general           Million CHF after successful inte-
(‘Clean Clothes Campaign’). The         gration of the former Oviesse
year 2004 brought one of the            shops. The market strategy aims
best results in company history.        at being a clothing house for the
Earnings increased by 47% to            whole family with good prices and
351.2 Million €, the turnover rate in   quality. It sells all kind of mid-priced
2005 is expected to go up by 2%.        clothing and aims to extend mar-
Migros has its own sourcing net-        ket share. However, C&A does
work for clothing all over the          not buy separately through their
world, but also buys from               branch in Switzerland, but from
European based importers and            Düsseldorf/Germany and the C&A
wholesalers.                            purchasing centre EBSCO in
                                        Brussels.
The textile chain OVIESSE missed
the required two-digit growth.          The PKZ GROUP with 700
Despite great efforts, the Italian      employees in total owns several
textile concept Oviesse has not         clothing chains. PKZ with 33 sto-
reached a breakthrough in the           res concentrates on menswear
Swiss clothing market. This is why      with quality clothing of different
the Globus Group led the brand          labels. Burger (1 Shop) is a mens-
Oviesse as a franchise from             wear shop. FELDPAUSCH (10 sto-
Gruppo Coin. Gruppo Coin (Italy)        res) focuses on womenswear,
took most decisions in terms of         BLUEDOG (11 outlets) is a young
assortment, price and quality for       fashion casual wear chain. PKZ
the Swiss market. In the end, the       Group puts a lot of effort into cus-
activities led to completely insuffi-   tomer relations with 600 000 cus-
cient results. Consequently, the        tomers in the database, reaching
partners ended their cooperation        into 20% of all Swiss households.
in December 2004. The 30                In 2004, PKZ sold goods to more
Oviesse outlets were closed and         than one million customers. This
the shops/locations were taken          business is looking back on a
over by C&A Switzerland.                decade of continuous growth in
                                        turnover with a slight decrease in
C&A SWITZERLAND also took on            the period 2002-2004.
a large part of Oviesse staff by
March 2005. The parties agreed          The PKZ GROUP suffered from
not to disclose the takeover price      the frosty consumption climate in
of the network. C&A is planning to      2002-2003. The group in 2004
re-open 24 of the stores as C&A         reached an increase in turnover
stores. This will boost market pre-     after a sales decrease of 9% in
                                        2003.
                                                                                   177
All subgroups moved in he same        The non-food division holds a
direction. However, the new up-       market share of 10% (0.8% com-
swing of the group is mainly due      pared to 2003) with a sales volu-
to increased advertising and          me of 42 762 million CHF. The tex-
efforts on the quality of the pro-    tile division represents 4% of the
ducts. The new Feldbausch-            non-food division and is calcula-
Concept combines basically two        ted together with multimedia.
fashion directions: classically and
stylishly oriented female custo-      With its 72 branch offices in 2004,
mers and modern and elegant           MANOR is the largest department
fashion for ladies. Burger reduced    store chain in Switzerland. It
their number of brands from 40 to     belongs in large part to the two
20 and focussed further on the        Lausanne based families, Maus
younger segment. The Group tur-       and Nordmann. Other divisions of
nover in 2004 reached 139 million     the Manor Group are 'Fly' (furnitu-
€. Cash flow exceeds 10% of tur-      re and home accessories),
nover. The group will use these       'Athleticum' (sports) and 'Jumbo'
financial means for further growth    (Hobby articles). The Manor
in the years to come. Since 2005      Group is the third largest Swiss
Feldbausch is present also in East    retailer. In 2004, turnover reached
Switzerland (St. Gallen with 500      2.79 billion CHF. Further company
sq. m).                               data have not been published.
                                      The business employs 12 000
The COOP GROUP runs quite             people altogether. About 2000
varied store formats ranging from     persons are working in the textile
food to non-food and services.        division, which represents about
Coop offers a unique mix from         one third of the whole Manor busi-
branded articles to own brands        ness.
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).

                                                                            178
5.4.3 Distribution channels                          retail businesses. Figure 5-6 gives
                                                     a first survey on the Swiss clothing
5.4.3.1 Retailers                                    retail market (market shares in
                                                     2004). More details about the
The distribution channels are                        development of the market share
grouped according to their basic                     of the retail outlets can be taken
structure into different kinds of                    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 für 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        - Mail order companies: Cornelia,
be assigned to the specific distri-        Heine-Versand, Goldner Schnitt,
bution channels:                           Charles Veillon, Ackermann,
                                           Spengler, Jelmoli, Vögele,
- Clothing chains with own labels:         Quelle, Total Beyeler/Damart
  Charles Vögele, WE-mode,                 Versand, Vedia, Bader and
  Benetton, Hennes + Mauritz,              other mail order houses
  C & A, Kookai, Esprit, Tally Weijl,    - Food distributors: Migros, Coop
  Yendi, Chicorée, Pimkie, Orsay,          and other food distributors
  Blackout, Levi‘s Store, Mango,         - Cash & Carry: Denner, Waro,
  Zara                                     Jumbo/Carrefour, Primo/Visavis,
- Clothing retailers with a ‘brand         Volg
  concept’: PKZ/BlueDog/Burger,
  Schild, Beldona, Fein-Kaller,          Other Distributors (sport shops,
  Feldpausch, Grieder, Herren            sport specialist stores, various dis-
  Globus, Spengler (without mail         tributors) hold a market share of
  order), Jeans-Stores                   11.3%.
- Independent retailers: Wool
  market/wool stores, textile one-       Low-price shops are not very
  line stores, boutiques, jeans          popular in Switzerland as the con-
  boutiques, tailors’ workshops,         sumers look for more than just low
  stocking stores, leather and fur       prices. Therefore, they have lost
  business                               market share in recent years and
- Department stores: Globus,             the prospects are not very positi-
  Manor, Coop, Jelmoli (without          ve either. For mid-price apparel,
  mail order), Migros and other          department stores and mail order
  department stores                      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    fashion company MAX MARA
(including clothing chains)                (aiming at international female
                                           shoppers) and the Danish VERO
These specialized clothing shops           MODA (with 23 shops) as well as
are still the main type of retail outlet   the Spanish MANGO (12 stores).
for garments in Switzerland, name-
ly chain stores, boutiques and other       MANGO is a Spanish franchise
specialised clothing retailers. The        company owning 12 shops in
market share of these shops has            Switzerland, 800 all over the world
remained stable over the past              including online-retailing (Mango
years at around 55%. Chain Stores          MNG Group). Global turnover
have won more popularity and               increased by 5.3% in 2004 and 87
represent the most successful retail       stores were opened in 2004. A
channel with a market share of             new shop in Winterthur opened in
30.9% in 2004 (28.0% in 2000).             March 2005 (first shop in
This corresponds to an increase of         Switzerland in 1999). A new and
7.3% since 2000. The independent           improved logistics system ensures
retailers, boutiques and other spe-        direct delivering from the factories
cialised clothing retailers (including     in Spain to the local retailers all over
leather and fur stores) are losing         the world. Mango is currently devi-
their popularity, with a market share      sing a corporate sustainability pro-
of 24.3% in 2004 representing a            gramme.
loss of about 8.2% compared to
2000.                                      ZARA is one of eight fashion brands
                                           retailers belonging to the Inditex
The major distribution channel             group which lays stress on high
among the textile specialist retailers     vertical integration as a strategic
in Switzerland are the clothing sto-       factor in competition. Zara first ope-
res with several outlets. Apart from       ned in 1975 in Spain and is now pre-
the national clothing multiples            sent in over 50 countries with 723
Vögele, Schild, PKZ and Spengler,          stores. All of them have been desi-
there are many foreign retailers           gned to create a special atmo-
present in the Swiss clothing mar-         sphere that will allow the client to
ket.                                       feel the pleasure of buying fashion.
                                           200 designers create new fashion
Market share: 55.2%                        that hits the market twice a week.
Trend: stabilization at 55% (1996 =        Company turnover was 3.82 bn. €
56.3%)                                     (2004) and 3.22 bn. € (2003). Zara
                                           has a share within the Inditex Group
Several foreign chains that are            of 67.4%. Sales in franchise stores
every active in Switzerland must be        stand at 10% in 2004, the same as
mentioned, such as the Swedish             in 2003. In Switzerland, Zara has
HENNES & MAURITZ GROUP, the                had 7 stores since 2002. IT conti-
Spanish retailer ZARA, the German          nues expanding around the world.
ESPRIT (67 shops), the Italian
                                                                                      181
Another new clothing retailer is        5.4.3.1.2 Department-stores
VERO MODA with 23 shops. Vero
Moda Switzerland belongs to             Department stores play the second
‘Bestseller Wholesale’. Bestseller is   most important role among the dis-
a family-owned clothing company         tribution channels, with a market
founded in Denmark in 1975. Today,      share of 13.1% in 2004. Their mar-
approximately 13,000 people work        ket share has declined since 1999
at Bestseller in more than 30 coun-     (16.3%), and sales values in 2004
tries designing, developing, selling    were equal to those of 1996.
and marketing Bestseller’s brands.
Bestseller offers a permanent sup-      Market share: 13.1%
ply of young fashion in 900 stores      Trend: obviously declining
worldwide at comparatively low pri-
ces. Today Bestseller comprises 11      One of the major department sto-
brands including Vero Moda. The         res in Switzerland is GLOBUS AG, a
Group turnover in 2004 was 928          department store with branches in
million €.                              all major Swiss cities, which sells
                                        fashion for men, women and chil-
The Swiss chain TALLY WEIJL is          dren in the mid and upper price
another international ‘textile suc-     range, as well as fashion accesso-
cess story’. The company is cur-        ries, general consumer products
rently installing a new logistics       and food.
system because of fast growth; it
currently has 210 stores. More than     Another major Swiss player is the
100 stores operate under own            MANOR AG, a department store
management, the rest on a fran-         with branches in the whole of
chise basis. The market target is       Switzerland, operating clothing
‘the woman who likes to be sexy’.       departments for men, women and
Despite doubling sales volume wit-      children in the lower to mid price
hin the last 5 years, TW wants to       category, including fashion acces-
remain a niche supplier.                sories and general consumer pro-
                                        ducts.
New market players have entered
the Swiss clothing market in            The LOEB HOLDING (a traditional
2004/2005, for instance BELDO-          family company in Bern) is a depart-
NA. Beldona belongs to WE               ment store with nine outlets. Loeb
International BV (Netherlands) with     owns several clothing and non-
233 stores worldwide. TOMMY             clothing companies and has a total
HILFIGER opened a first Hilfiger        turnover of 213 million CHF (2004).
Denim Store in Zurich. INTER-           The nine Loeb department stores
SPORTS opened a first outlet in         only represent one part of the Loeb
Switzerland in October 2005.            Holding. Loeb Holding also owns
                                        Wartmann, a separate clothing
                                        multiple.

                                                                               182
Loeb has placed itself in the mar-      5.4.3.1.3 Mail-order houses
ket as a department store with a
strategy to be a regional niche         The mail-order business is the
player not competing directly with      third most important retail channel
big houses like Coop or Manor.          for clothing in Switzerland. The
                                        market share of mail-order hou-
JELMOLI AG is a department              ses in Switzerland showed an
store with significant apparel sales    increase of about 2.8% in 2004
for men, women and children fea-        compared to 2000. The average
turing international brands con-        share since 1996 lies quite con-
centrated on the mid to upper           stantly at around 10.8%.
price range. With its ‘two-line busi-
ness strategy’ - retail business        Market share: 10.6%
and retail real estate business -       Trend: stable
Jelmoli has managed to change
the original department store into      The market leader in mail-order,
a successful, growing and profita-      CHARLES VEILLON SA, uses the
ble specialties retail business unit.   most modern logistics technology
Due to use of synergies at retail       and a close cooperation with the
level, high profitability has been      Swiss mail. MONA VERSAND
achieved. Group profit in 2004          GMBH & CO. is another mail-
was 88.7 million CHF (12.7% com-        order company, targeted at the
pared to 2003). The 2004 profit in      over 60 age group, 90%
retail sales was 57.8 million CHF       womenswear, 10% menswear.
(+96% compared to 2003) with            The French mail-order house LA
2,548 employees and 183 stores          REDOUTE offers clothing with a
(+1.1% compared to 2003). The           ‘French touch’ and is specialised
positive trend has continued in the     in clothing. ACKERMANN is a
first half of 2005 (6 months),          company proud of its individual
where an increase of 3.5% has           service and has one of the most
been achieved.                          modern distribution centres in
                                        Europe.      In     Switzerland,
The overall good results of the         Ackermann communicates with
Jelmoli Group can mainly be tra-        its customers in the four official
ced back to the success in the          languages.
retail business, namely specialised
stores and outlets (restaurants         There are some department sto-
and others), sales activities of the    res which run separate mail-order
‘Fust’ group (multimedia, kit-          companies. For example, JELMO-
chen/household, electrical goods)       LI AG, a department store, also
as well as some effective custo-        offers sales through a mail order
mer relationship activities like        catalogue. CHARLES VOEGELE
‘Bonus Cards’.                          AG stopped its mail-order activi-
                                        ties in 1995.

                                                                              183
SPENGLER AG, a clothing chain               al offers from the non-food area
with own apparel stores also runs           round off the assortment.
an own mail order house; it offers
clothing for men, women and chil-           Denner has a consistent discount
dren in a mid price range.                  policy: Lowest prices combined
                                            with highest quality with a limited
5.4.3.1.4 Grocery super- and hypermarkets   number of articles. 2004 was the
                                            most successful year in history for
The fourth most important retail            Denner. Sales volume increased
channel for clothing after mail-            by 11.8% to CHF 1,843 billion in
order houses are super- and                 comparison to the previous year.
hypermarkets. The market share              This peak turnover is even 11% hig-
in 2004 was 9.8%. In 1996, super-           her than the previous record year
and hypermarkets were still posi-           1991.
tioned above the mail-order hou-
ses with 11.3% (mail-order houses           This overall sales increase is direct-
10.9%), this corresponds to a loss          ly connected to increased market
of 15% by 2004. The trend is                share. The renewal of all outlets
decreasing further.                         had been completed by the end of
                                            2004. In 2005 there was further
Market share: 9.8%                          growth in sales volume as 20 addi-
Trend: decreasing                           tional stores were opened.

MIGROS AND COOP with their                  5.4.3.1.5 Various Distributors
stores are the biggest retailers in
Switzerland, with activities in             This category primarily includes
super- and hypermarkets. The                sport shops, sport specialist sto-
company DENNER AG owns the                  res, street markets and ex factory
hypermarket WARO, which sells               sales (directly from the fashion
clothing to a small extent. Jumbo           manufacturer through ‘factory
is said to be the cheapest super-           outlet centres’). Other forms of
market in the Swiss market, with            distribution are ‘consumer fairs’
shops that are located outside the          and sales through the ‘Internet’.
towns. Denner is the leading Swiss
food discounter with over 320               For the manufacturer from abro-
branches in all of Switzerland and          ad, this target group is very difficult
employs approx. 2 000 employe-              to approach as they normally do
es. Additionally, Denner has more           not import on their own. They buy
than 280 Denner ‘saTel.lite                 mainly from importers/wholesalers
dealers’, which cooperate very              according to their own specificati-
closely. The Denner range covers            ons. The role of this ‘other form of
a good choice of articles for daily         distribution’ has increased over
use. 75% of the range offered are           the past few years.
branded articles, the rest are own
brands. Weekly new, select speci-
                                                                                      184
In 2000, it had a market share of        5.4.3.2.2 Central buying associations
8.5%, the market share in 2004
increased to 11.3%. Although             One major Swiss central buying
more detailed figures are not avai-      association is the ‘ez Fashion
lable, it can be strongly assumed        Center’. It has dozens of mem-
that the increase in this distribution   bers, mainly independent retailers.
channel is mainly due to higher          The buying association operates
internet sales.                          on the basis of long-term partner-
                                         ships, often with very close links to
Market share: 11.3%                      local clothing producers. The ‘ez
Trend: Increasing (2000 to 2004 =        Fashion Center’ now co-operates
32.9%).                                  with the German buying associati-
                                         on ‘Sütegro’ (Stuttgart) and with
5.4.3.2 Sales Intermediaries             the ‘Austrian Fashion Association’.
                                         ez Fashion Center is trying to gain
5.4.3.2.1 Clothing Manufacturers         more members and to find suitab-
                                         le contracts with efficient clothing
The clothing manufacturers in            suppliers.
Switzerland face a difficult market
situation. The total turnover of the     The members of the buying-asso-
Swiss clothing industry amounted         ciation ‘Inter-Sport’ originate from
to 1.5 bn. CHF in 2004 (1.7 bn.          the active sportswear and sports
CHF in 2000). The added value of         articles sector, the organisation is
Swiss companies decreased in             closely linked to the German
the last few years and more and          based Inter-Sport in Heidelberg.
more manufacturers use OPT               Some of the Swiss clothing retai-
business.                                lers are even members in the lar-
                                         ger German buying associations
Swiss clothing manufacturers             such as Katag in Bielefeld.
know the needs of the Swiss cus-
tomer, but their domestic produc-        5.4.3.2.3 Sales Agents
tion costs are too high to compe-
te with imports in the lower or mid      Sales agents for the Swiss market
price range. Thus, most clothing         are normally located in the coun-
manufacturers look for production        try where the clothing is imported
possibilities abroad. Since 2000,        from, e.g. in the major Asian cities
OPT and outsourcing has increa-          like Hong Kong, Singapore,
sed. Despite all these negative          Shanghai, New Delhi or Istanbul.
economic effects, Swiss clothing         Desk research and interviews with
production increased by 0.5%             Swiss clothing manufacturers
while simultaneously employment          revealed that only very few Swiss
fell by 13.6%. Exportas grew by          buyers rely on sales agents to
4.1% due to the increased high           take over a ‘buying function’ for
quality demand for outer- and            them.
underwear from Switzerland.
                                                                                 185
The overwhelming part of the buy-       way to a very large extent and can
ing process is handled by the           offer the service to neighbouring
importing retailer directly. Clothing   Swiss retailers as well.
manufacturers from abroad must
contact these ‘sourcing offices’ in     5.5 SWISS FASHION TRADE
their respective country or contact     FAIRS
the buyer at the retailer’s or manu-
facturer’s headquarter directly in      Reliable trade sources have repea-
Switzerland.                            tedly mentioned that the participati-
                                        on in European Fashion Trade Fairs
5.4.3.2.4 Importers/wholesalers         by manufacturers from emerging or
                                        developing countries, frequently
Analysis has revealed that the large    visited by Swiss buyers, are the best
majority of Swiss importers are dis-    and most efficient way to establish
tributors for foreign European          initial contacts with Swiss wholesa-
brands selling into Switzerland.        lers and distributors.
Often, such importers have their
own shop or boutique with high-pri-     The most important Swiss trade
ced clothing and fear low quality       event for men’s, women’s and chil-
imports. Only a few show some           dren’s wear at the ‘TMC Fashion
interest in imports from outside        Centre’ in Zürich (TMC), takes place
Europe. The situation remains           twice per year and has a clear natio-
unchanged, that most of the small       nal character. Participation in these
retailers/importers are not in the      so called ‘selling days’ (to the retai-
position to order sufficient quanti-    lers) are restricted to agents running
ties, thus orders e.g. from Asia or     a showroom in the TMC. The
South America will not be worthwhi-     ‘Textile & Mode Center’ was set up
le for them. Even middle-sized retai-   as a wholesale centre for textiles
lers are sometimes reluctant to do      and clothing in August 1978.
so, but regret at the same time not     Participation of foreign manufactu-
having the possibility to source from   rers in these ‘national market
developing and emerging countries.      events’ at TMC is not allowed and
                                        also does not make sense (inappro-
Thus, with the general increase of      priate target group).
clothing imports into Switzerland,
the importance of Swiss wholesa-        Swiss buyers, whether they are in
lers and importers has increased        charge of department stores, spe-
and the ‘need’ for imported goods       cialized retailers, importers, mail-
also for smaller retailers due to the   order houses or chains tend to visit
price pressure in the market has        trade fairs mostly for information
generally increased since the last      purposes, but also to find new con-
study in 2002. The situation is un-     tacts. Clothing fairs in Germany are
changed, that a considerable share      quite popular among Swiss retai-
of clothing imports into Switzerland    lers. The following trade fairs in
is handled by German importers, as      neighbouring countries are fre-
they buy in overseas markets any-       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                All kind of women’s and          Düsseldorf/Germany   February and
including Global Fashion       menswear including ready-                             August
(for clothing suppliers from   to-wear, knitwear, underwear
emerging and developing        and swimwear, hats & caps
countries with non-branded     and accessories, bridal &
products)                      evening wear, young fashion,
                               casual wear

Fashion Look!                  Menswear, womenswear,            Leipzig/Germany      February and
Leipzig Messe                  children’s wear, fur, leather,   (will move to        August
                               sports wear                      Düsseldorf from
                                                                August 2006
                                                                onwards)

Fimi Valencia                  Children’s 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

PRÊT 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’, MEN’S AND
CHILDREN’S WEAR IN SWITZERLAND

Clothing multiples

Bernie's AG                  Product range: high fashion & casual
Postfach 3925                Price segment: high price level
CH - 8021 Zürich             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 Zürich             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 Marché            level
CH - 1204 Genève             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 Vögele AG            Product range: all kind of clothing
Gwattstrasse 15              Price segment: low price level
CH - 8808 Pfäffikon          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 Zürich             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
Industriestraße 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 Zürich         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 Zürich           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 Zürich             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               Zürich - also includes mail order
                             catalogue



LOEB AG                      Product range: all kind of products
Bälliz 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: men’s and womens-
Bälliz 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
BON´A PARTE MODE AG       Product range: Men’s and womens-
Fürstenlandstrasse 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: men’s 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’, men’s, 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 Zürich          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’, men’s, 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 Delémont
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 Hägendorf
Tel.: +41 62 216 43 43
Fax: +41 62 216 43 45
www.rotex.ch




Spengler Versand AG       Product range: all kind of clothing
Fürstenlandstrasse 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’, men’s, chil-
Route de Buyère 2         drenswear
CH - 1017 Lausanne
Tel.: +41 21 706 92 17
Fax: +41 21 706 98 14
www.veillon.ch


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




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

Grocery Super- and Hypermarkets

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



Denner AG Zentrale                Proprietor of Waro and Franz Carl
Grubenstrasse 10                  Weber (FCW)
CH - 8045 Zürich                  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                  Product range: all kinds of clothing
Industriestrasse 33             Price segment: very low price level
CH - 8305 Dietlikon             Number of outlets: 39
Tel.: +41 44 805 54 54
Fax: +41 44 805 54 50
www.jumbo.ch




Migros-Genossenschaft-          Product range: all kinds of clothing
Bund                            Price segment: low price range with
Limmatstrasse 152               own brands
CH - 8005 Zürich                Number of fashion outlets: 134
Tel.: +41 44 277 21 11          10 Migros Co-operative societies
Fax: +41 44 277 25 25
www.migros.ch


Swiss Clothing Manufacturers

Algo S.A.                       Ajotex SA
Badenerstrasse 274              Route de Coeuve 37-41
CH - 8004 Zürich                CH - 2900 Porrentruy
Tel.: +41 44 240 41 66          Tel.: +41 32 465 89 89
Fax: +41 44 240 41 67           Fax: +41 32 465 89 85
www.algosa.ch                   www.jic.ch/ajotex
(high priced womenswear)        (men / women / child wear)



AKRIS LINEA B S.A.              alba Albin Breitenmoser AG
Via Francesco Borromini 12      Zielstrasse 38
CH - 6850 Mendrisio             CH - 9050 Appenzell
Tel.: +41 91 641 39 00          Tel.: +41 71 788 91 11
Fax: +41 91 641 39 01           Fax: +41 71 787 46 58
www.akris.ch                    www.alba-gruppe.ch
(very high priced womenswear)   (Professional clothes)




                                                                       195
Alumo Textil AG                   Amacher Rosmarie
Zielstrasse 38                    Dufourstrasse 167
CH - 9050 Appenzell               CH - 8008 Zürich
Tel.: +41 71 788 91 55            Tel.: +41 44 380 50 60
Fax: +41 71 788 91 54             Fax: +41 44 422 88 70
www.alumo.ch                      www.couture-amacher.ch
(produces shirts)



Angéloz Michel SA                 Beca Ferretti SA
Route de l’Industrie 3            Via della Posta-Zona 2 CP 257
CH - 1680 Romont                  CH - 6934 Bioggio
Tel.: +41 26 651 92 80            Tel.: +41 91 605 57 76
Fax: +41 26 651 92 89             Fax: +49 91 604 67 87
www.michelangeloz.ch              (menswear, professional clothes)
(mid-priced menswear and
womenswear)



Blumer F. & Cie. AG               Boller, Winkler AG
Industrie Mühle 19                (no street name)
CH - 8762 Schwanden GL            CH - 8488 Turbenthal
Tel.: +41 55 644 11 17            Tel.: +41 52 396 22 22
Fax: +41 55 644 39 49             Fax: +41 52 396 22 00
www.blumer-f.ch                   www.bonjour.ch
(men’s, women’s, childrenswear)   (clothing and other textiles)



Brülisauer SA
Via motta 45
CH - 6850 Mendrisio
Tel.: +49 91 640 64 40
Fax: +49 91 640 64 44
www.bruli.com
(menswear)




                                                                     196
Braunschweig P. & R. AG           Calida AG Bodywear
Badener Strasse 120               Industrie Münigen,
CH - 8026 Zürich                  CH - 6210 Sursee
Tel.: +41 44 241 97 30            Tel.: +41 41 925 45 25
Fax: +41 44 242 94 28             Fax: +41 41 925 42 84
www.pierrette.com                 www.calida.com
(mid- and high-priced coats and   (men’s, women’s and children’s
jackets for women)                under- and nightwear)



Camiro sagl                       Cavalco Confezioni SA
Strada Cantonale                  Via Industria 7
CH - 6863 Besazio                 CH - 6826 Riva San Vitale
Tel.: +49 91 646 61 18            Tel.: +41 91 648 22 63
Fax: +49 91 646 69 95             Fax: +41 91 648 23 64
(menswear)                        www.cavalco.ch
                                  (menswear)



Conceprio SA                      Consitex SA
Corzoneso Piano                   Via Ligornetto 13
CH - 6715 Dongio                  CH - 6855 Stabio
Tel.: +41 91 871 12 43            Tel.: + 41 91 640 76 00
Fax: +41 91 871 25 31             Fax:+ 41 91 640 76 19
(men’s and womenswear)            www.zegna.com
                                  (high priced menswear)



Dresdensia SA                     Dürsteler J. & Co. AG
Via Fola 13                       Zürcherstrasse 47
CH - 6963 Pregassona              CH - 8620 Wetzikon
Tel.: +41 91 971 60 63            Tel.: +41 44 933 60 70
Fax: +41 91 971 11 52             Fax: +41 44 933 60 71
(men’s and childrenswear)         www.faerben.ch
                                  (men’s, women’s and childrens-
                                  wear)




                                                                   197
Fabric Frontline Zurich AG      Feldinger Gabriel AG
Ankerstrasse 118                Lettenweg 40
CH - 8026 Zürich                CH - 4123 Allschwil
Tel.: +41 44 241 64 55          Tel.: +41 61 481 05 05
Fax: +41 44 242 20 02           Fax: +41 61 481 05 39
www.fabricfrontline.ch          (mid-priced items womenswear)
(men’s and womenswear)



Filtex AG                       Ganzoni & Cie AG
Teufenerstrasse 1               Gröblistrasse 8
CH - 9001 St. Gallen            CH - 9014 St. Gallen
Tel.: +41 71 221 13 13          Tel.: +41 71 279 33 66
Fax: +41 71 221 13 14           Fax: +41 71 274 29 89
www.filtex.ch                   www.sigvaris.com
(women’s and childrenswear)     (men’s, women’s and childrens-
                                wear)



Gessner AG                      Hagmann Hosenmode AG
Florhofstrasse 13               Industriestrasse 9
CH - 8820 Wädenswil             CH - 4657 Dulliken
Tel.: +41 44 789 86 00          Tel.: +41 62 285 55 55
Fax: +41 44 789 86 01           Fax: +41 62 285 55 69
www.gessner.ch                  www.hagman.ch
(womenswear)                    (menswear, especially trousers)



HANRO AG                        Herz Heinrich AG Julietta
Benzburweg 18                   Via Campagna 21
CH - 4410 Liestal 18            CH - 6987 Caslano
Tel.: +41 61 926 88 22          Tel.: +41 91 606 73 43
Fax: +41 61 926 88 27           Fax: +41 91 606 21 60
www.hanro.ch                    www.heinrichherz.ch
(men’s and women’s under- and   (womenswear)
nightwear)




                                                                  198
Hofmann + Co AG                  Hugo Boss Industries
Krawattenfabrik                  Via Passeggiata 7
Im Eisernen Zeit 51              CH - 6883 Novazzano
CH - 8057 Zürich                 Tel.: +41 91 696 17 17
Tel.: +41 44 362 37 54           Fax: +41 91 696 17 78
Fax: +41 44 362 37 19            www.hugoboss.com
www.hofmannties.ch               (menswear)
(men’s accessories and ties)



ISA Sallmann AG                  Kauf AG
Weinfelderstrasse 15             Rosenbüelstrasse 50
CH - 8580 Amriswil               CH - 9642 Ebnat-Kappel
Tel.: +41 71 414 24 44           Tel.: +41 71 992 60 60
Fax: +41 71 414 24 55            Fax: +41 71 992 60 65
www.isabodywear.ch               www.kauf.ch
(men’s, women’s and childrens-   (shirts for department stores
wear)                            and mail-order comp.)



Lehsa Strickwarenfabrik          leywa GmbH
Eichenweg 16                     Fabrikstrasse
CH - 4900 Langenthal             CH - 8756 Mitlödi
Tel.: +41 62 922 50 44           Tel.: +41 55 644 46 46
Fax: +41 62 923 08 38            Fax: +41 55 644 46 47
www.lehsa.ch                     www.leywa.ch
(men’s and women’s knitwear)     (men’s, women’s and childrenswear)



Madie's Fashion S.A.             Mammut AG
Via Gaggiolo 5                   Industriestrasse Birren
CH - 6855 Stabio                 CH - 5703 Seon
Tel.: +41 91 647 11 53           Tel.: +41 62 769 81 81
Fax: +41 91 647 32 53            Fax: +41 62 769 81 00
(womenswear)                     www.mammut.ch
                                 (sportswear, outdoor jackets)




                                                                      199
Metzler & Co. AG                  Mitloedi Textildruck AG
Hauptstrasse 33                   Fabrikstrasse
CH - 9436 Balgach                 CH - 8756 Mitlödi
Tel.: +41 71 722 21 43            Tel.: +41 55 647 88 33
Fax: +41 71 722 72 29             Fax: +41 55 647 88 13
www.marcthombard.ch               (womenswear)
(shirts and blouses, T-shirts &
sweatshirts for indep.)



Noga Mode S.A.                    Rosmarie Amacher & Co.
Via Orti 1                        Dufourstrasse 167
CH - 6928 Manno                   CH - 8008 Zürich
Tel.: +41 91 605 48 88            Tel.: +41 43 456 30 00
Fax: +41 91 605 48 88             Fax: +41 43 456 30 09
www.nogamode.com                  www.couture-amacher.ch
(men’s and women’s wear)          (womenswear)




Strellson AG                      SwissTex Logistics AG
Sonnenwiesenstrasse 21            Funkenstrasse 10
CH - 8280 Kreuzlingen             CH - 4800 Zofingen
Tel.: +41 71 686 33 33            Tel.: +41 62 745 33 33
Fax: +41 71 688 64 94             Fax: +41 62 745 33 00
www.strellson.com                 www.swisstex.net
(high priced men’s and            (menswear and womenswear)
womenswear)



TOPA Konfektions AG               Traxler AG
Birkenstrasse 109                 Unterdorf 7
CH - 9443 Widnau                  CH - 8363 Bichelsee
Tel.: +41 71 720 03 05            Tel.: +41 71 971 19 43
Fax: +41 71 720 03 07             Fax: +41 71 971 31 29
www.topa-ag.com                   www.traxler.ch
(men’s, women’s and childrens-    (knitwear, shirts/blouses, ecolo-
wear, OPT)                        gical clothing men/women)




                                                                      200
Vollmoeller Textil AG /           Zewi und Bébé-Jou AG
Jockey International              Knonauerstr. 58
Bahnstrasse 21                    CH - 6330 Cham
CH - 8610 Uster                   Tel.: +41 41 784 10 00
Tel.: +41 44 905 22 22            Fax: +41 41 784 10 01
Fax: +41 44 940 53 33             www.zewiundbebe-jou.ch
www.jockey.ch                     (mid- / high-priced coats and jak-
(men’s and women’s wear)          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 Zürich
CH - 8065 Zürich                  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                          Conrad
Aeschenvorstadt 48               Spalenring 123
CH - 4010 Basel                  CH - 4045 Basel
Tel.: +41 61 271 01 55           Tel.: +41 61 272 57 33
Fax: +41 61 272 51 54            Fax: +41 61 272 57 11
(boutique/shop)                  (Importer/Distributor of mainly
                                 menswear, only buy brands in
                                 small quantities)



WE Switzerland AG                Pandinavia Import Export
Im Langacker 16                  Spitalackerstrasse 63
CH - 5405 Baden-Dättwil          CH - 3000 Bern 25
Tel.: +41 56 483 03 83           Tel.: +41 31 331 40 32
Fax: +41 56 483 03 70            Fax: +41 31 333 06 93
www.we-fashion.com               (Importer/Distributor of men's
(Importer/Distributor of men's   apparel)
apparel, Dutch owned company)




                                                                   202
    Outerwear


UNITED KINGDOM
6   UNITED KINGDOM

    6.1 GENERAL ECONOMIC                  hing (and other goods) to the UK
    SITUATION                             have been positively influenced by
                                          the strong position of the British £
    The growth rates of the Gross         against the €.
    Domestic Product (GDP) in the UK
    were higher in the 90s than in the    Generally speaking, Great Britain
    rest of the EU and Switzerland.       is still profiting today from the
    Great Britain can be described as     structural reforms implemented
    a ‘booming’ country, economic         by Mrs. Thatcher with privatisati-
    development is comparable to          on, deregulation and liberalisation
    that of the US. This must also be     of the employment market.
    seen against the backdrop of the
    UK’s painful restructuring process    6.2 THE MARKET FOR
    in previous decades, that yielded     OUTERWEAR
    obviously successful results in the
    end. Since 1995, the GDP growth       6.2.1 Market size
    rate has been at constant prices
    on average 2.8%. In 2004 it was       The UK remained the second big-
    even at 3.2%. This is more than in    gest clothing market in the EU
    most other European countries.        behind Germany. UK consumers,
                                          along with Austrian citizens,
    Total expenditure of private hou-     belong to the biggest spenders
    seholds in the UK continuously        per capita on clothing in the EU.
    increased in the last few years at    While the import and export mar-
    constant prices by 2.8% with          ket increased over the years, the
    1,094 billion £ in 2004. The reason   local production fell rapidly by
    for this positive development is      approx. 1 bn. £. As a result of
    that the unemployment rate            these figures it is obvious that the
    among the population has been         British fashion market is highly
    quite low: 4.8% in 2004. This per-    dependent on other countries'
    formance is excellent compared        textiles.
    to the double digit unemployment
    rates in other European countries     According to the German Maga-
    except Switzerland with 3.9%.         zine Textilwirtschaft, the British
    The UK is one of the three largest    clothing market has a volume of
    countries in the European Union,      approximately 33 Billion Pounds
    but has not yet entered the EU        sterling. The market volume for
    Monetary Union. Especially since      clothing in 2004 increased by a
    the introduction of the € in begin-   quite dynamic 3.5%.
    ning of 2002, the imports of clot-




                                                                                 203
Table 6-1: Size of the British fashion market, 2001 - 2004


 in m. £*                       2001        2002          2003         2004

 Import Market                 9 400        10 075       10 610       10 859

 Local Production              4 932        4 793         4 391        3 925

 Exports                        2 877        2 481        2 692         2 719

Source: BATC, Overseas Trade Statistics


6.2.2 Market characteristics              ment with more purchasing
                                          power, e.g. the number of millio-
Based on desk research it can be          naires in the UK increased by
stated that in general the patterns       more than 80% between 2001
of British consumers have                 (230,000) and 2004 (425,000).
changed since 2004/2005. British          The tendency towards luxury is
apparel retailers look back at a          also emphasized by strong brand
period of 10 years of almost phe-         awareness.
nomenal growth rates. From
2000 to 2004, British retail expan-       Between 2002 and 2003, UK real
ded by 4.2% annually, whereas in          household disposable income per
2005 the sales increase was only          head rose by 1.8 per cent compa-
1.9%; expenditures are decrea-            red with growth in GDP per head
sing.                                     of 2.0 per cent. Most consumers
                                          with high income are normally in
A large proportion of British con-        the age group between 50 and
sumers has become more price              60 and manufacturers offering
sensitive under the slogan: ‘Look         highest quality garments meet a
good – pay less’. This attitude           strong and ever growing market
towards clothing consumption              segment in the UK.
explains to a large extent the
overwhelming success of the so            Good quality is also of increasing
called British ‘Value Retailers’, of      relevance to the younger consu-
which the ‘Top Seven’ sold clot-          mers. This is underlined by the fact
hing with a value of 5.2 Billion          that clothing brands are of the
Pounds sterling (2004). In the            same importance to the young as
same year the year the value              to elderly consumers, although
retailer market increased by 14%.         the younger consumers often can
                                          not afford the branded items.
However, some consumers are               Whenever their financial situation
also willing to buy higher priced         allows (often due to the wealth of
and exclusive clothing. Good eco-         their parents) the young like to
nomic development in the UK in            buy brands (e.g. for jeans) and are
the past few years has lead to an         eager to show their fashion awa-
increase of the consumer seg-             reness.
                                                                                 204
6.2.3 Demographic characteristics               The age groups between 35 and
                                                44 have the highest shares in the
The UK has a population of 59.8                 British population today with 7.7%
million inhabitants with slight                 (35 - 39) and 8.0% (40 - 44) of
increases in population projected               total population. But the older age
for the next 10 years. It grew by               groups of 45 to 49 also play a
281,200 people in the year to mid-              significant role. In future, the youn-
2004, and the average growth                    ger consumer segment will
per year has been 0.4 per cent                  decrease more and more. The
since mid 2001. The age structure               tendency of falling birth rates in
indicates the most suitable consu-              the UK is a constant factor with
mer groups to address for the                   direct effects on the age and the-
respective product segment.                     refore consumption structure of
Market developments in terms of                 the population.
shifts in the age groups can be
predicted. These demographic                    Manufacturers     from    abroad
forecasts may give hints on how                 should not neglect the increasing
to address the age group concer-                ‘age group’ of over 39 up to 59
ning design and marketing. Also,                years of age. More details about
the kinds of clothing requested                 the shares and developments of
may change in the future regar-                 the age groups concerned can be
ding general demand, quality, sui-              taken from Figure 6-1.
tability, comfort standards, basic
designs and colours.

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 women’s and girl’s
                                                                               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,           European countries - lesser but
        as in other European countries,            increasing importance among
        the UK is still the country with the       British consumers. According to
        highest market share of formal             research conducted, designer
        wear. As Table 6-3 shows, the              (i.e. branded) casual clothing has
        share of formal clothing is at a           become more and more popular.
        comparatively high level of 45%            The most preferred clothing items
        for women and 41% for men. In              are outdoor jackets (+1%) for men
        this context, it should also be            and women as well as trousers
        mentioned that in the segment of           (+3%) for men and cardigans/jum-
        children‘s clothing, formal wear is        pers for women (+3%).
        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



                                                                                         207
6.2.5 Consumer behaviour                      6.2.5.2 Consumer expenditure

6.2.5.1 Consumer preferences                  In recent years, the UK economy
                                              has been among the strongest in
As you can see from Table 6-4,                Europe. Consumer confidence
multiple clothing chains and varie-           has been high as a result of low
ty stores took 52% of UK clothing             interest rates, low level of unem-
sales    by     value   in  2004.             ployment (< 5% - lowest rate for
Department stores and mail order              the last 25 years) and strong
operators represented approx.                 increases in house prices. Growth
10% of the sales in 2004. The mail            in household expenditure was the
                                              driving force behind the UK’s GDP
Table 6-4: Clothing retail channels by        growth. Household expenditure
market share, 2000 - 2004                     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                  expected for the coming years.
entered the catalogue market.
Sports shops took 6%. Indepen-                These positive economic data for
dents commonly sell upmarket                  the British explain to a large extent
branded clothing at higher price or           the fact that UK consumers’ most
more expensive own brands. In                 favourate leisure time activity is
2001, these outlets represented               ‘shopping’, just like the slogan:
14% of total sales by value.                  ‘Shop until you drop!’


                                                                                          208
The UK remainded the second                  Table 6-5 illustrates household
biggest clothing market in the EU            expenditure by age of head of
behind Germany. UK consumers,                household. The figures indicate
along with Austrian citizens,                that for men, expenditure on clot-
belong to the biggest spenders               hing rises with age, but seems to
per capita on clothing in the EU.            be quite constant especially for
In comparison to other European              men between 30 and 64, and only
countries, the share of clothing             falls again at a higher age.
expenditure compared to the
total consumption climbed conti-             Expenditure for women‘s outer-
nuously since the mid 90’s. The              wear is not only higher in all age
per capita consumption for clot-             categories than for men, but also
hing in the UK today ranks in the            shows a different life cycle pat-
middle of the EU and Switzerland.            tern. In the 20 years between the
Demographic figures support the              age of 30 and 49, average weekly
thesis that outerwear expenditure            expenditure is £10.20. In the 15
will grow also in the near future. In        years between 50 and 64,
2004, expenditure on clothing                women’s expenditure shows
increased at constant current pri-           nearly the same level at £9.20
ces by 4.7% compared to a rise in            weekly. Assuming that the age of
total expenditure by 5.9%. More              the head of household stands for
details about the developments               the age of the female consumer, it
from 2001 to 2004 can be taken               means that 50 to 64 year old
from Figure 6-3.                             women is the age category with
                                             the highest expenditure on clot-
Figure 6-3: Comparison of house-             hing. The reason for this could be
hold expenditure on clothing and             sales of luxury items for wealthy
total household expenditure,                 clientele in shops like Burberry‘s,
2001 – 2004                                  Barbour and Pringle.


      6

      5

      4

      3

      2

      1

      0


Source: Office of National Statistics (ONS): Consumer Trends 2005 -
seasonally adjusted - at constant current prices (Basis: average 2.4 per-
sons household)
                                                                                   209
       Table 6-5: Weekly household expenditure by age of head of household, 2004


in £                     Under 30   30-49    50-64     65-74    75+    Total   Percentage

Men's outerwear              5.20    5.90     5.00      2.00    0.70   4.40        29.5%

Women's outerwear            7.40   10.20     9.20      4.80    2.70   8.00        53.7%

Boys' outerwear              0.60     1.70    0.30      0.20    0.00   0.80         5.4%

Girls' outerwear             0.40    2.40     0.40      0.30    0.20    1.10        7.4%

Babies' outerwear            1.30    0.90     0.50      0.10    0.10   0.60         4.0%


       Source: ONS Family Spending 2004 - based on weighted data and including children’s expenditure


       Expenditure for boys' and girls'              The UK has been a price oriented
       clothing is highest in households             market in the past, but continues
       where the head of household is                to be more and more of a market
       between 30-49 years old. The                  with consumers valuing quality.
       numbers show that babies outer-               Sales ‘difficulties’ in the middle
       wear is bought mostly by younger              market segment are probably
       families or single parents under 30           more of a management problem
       years. The spending of house-                 (e.g. at Marks & Spencer which
       holds on clothing for the young               has had serious marketing and
       and very young consumers (boys,               sales problems in the last 2-3
       girls and babies) represents only             years) than a general consumer
       16.8% of the total budget for clot-           trend.
       hing.
                                                     The main factor in buying decisi-
       The ‘International Data Base                  ons of British consumers is dispo-
       Study’ of the U.S. Bureau of the              sable income, which has continu-
       Census predicts positive demo-                ously increased in recent years.
       graphic effects on total consumer             Retailers with the appropriate mar-
       expenditure (incl. clothing) for              keting concept have shared in this
       another twenty years considering              positive development. As a conse-
       that the group with the main                  quence of the booming economy
       expenditure for women is bet-                 compared to other markets,
       ween 50 and 64 years old. These               people are willing to spend more
       demographic effects have to be                on higher priced items. On avera-
       considered by the clothing manu-              ge, around 6% of total household
       facturers wishing to penetrate the            expenditure is on clothing (ONS,
       British market e.g. in terms of sty-          Family Spending Survey) indepen-
       ling and designing for the ‘older             dent from total expenditure in the
       consumers’, who are already                   respective income classes. It can
       spending relatively more for clot-            be concluded that the percentage
       hing and will increase spending in            of expenditure on clothing from
       the future.                                   total income is stable throughout
                                                     all income classes.
                                                                                            210
6.2.6 Price development of clothing          The national statistics of ONS give
                                             a clear picture of the situation.
Clothing prices have been decli-             Especially in 2001/2002, prices for
ning since the mid 90’s. The fierce          clothing went down in the UK
competition on the UK clothing               while the overall prices of consu-
market has brought down prices               mer goods rose on average. In
year after year. In most outerwear           2001, the general price inflation on
sectors consumers buy more                   consumer goods was + 2.2%.
items, but the growth of the clot-           However, the prices for garments
hing market in value is lower due            fell 4.5%. In 2003 the clothing
to price deflation.                          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


            3

            2

            1

            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                             Table 6-6 illustrates the import
                                        developments of knitted outerwe-
6.3.1 Total imports                     ar from 2002 to 2004 for those
                                        outerwear items analysed for this
While UK production has decrea-         marketing handbook. Although
sed, imports of clothing increased      the consumption of womenswear
in recent years. The UK is the          is higher than that of menswear,
second largest EU importer in           the import figures show that the
terms of value and accounted for        import of knitted outerwear
18 percent of EU total imports of       (coats, suits, shirts/blouses) for
outerwear in 2002. The strength         men in 2004 at 556.4 million € is
of the British Pound can be seen        nearly as high as for women at
as the main motivation by the           825.4 million €. It should be noted
importers as to why the imports         that the imports of knitted outer-
have been so attractive. As a logi-     wear for women and girls have
cal consequence, the ‘Overseas          decreased from 2003 to 2004 by
Trade Statistics’ show that imports     0.2%. The highest import increase
for ladies and men’s clothing con-      for a specific product segment is
tinuously increased over the last       ‘Other Sportswear’ with a growth
few years. Although the import          of 22.5% in 2004 compared to
level of womenswear is higher           2003 (HS Code 61.14).
than for menswear, imports of
men’s clothing seem to have             The total import of knitted pro-
grown stronger.                         ducts increased in terms of value
                                        from 2002 to 2004 by approx.
Looking at the total figures in Table   8%. The percentage of knitted
6-6 and Table 6-7, the import           outerwear imported from coun-
share of women‘s clothing in total      tries outside the EU is around
imports is higher than that for men     65%.
mainly due to a generally higher
consumption of women‘s 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.



                                                                              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 womenswear imports
woven outerwear into the UK.           increased from 2003 to 2004 and
From 2002 to 2004, total imports       amounted to € 3,847 million in
of woven outerwear for women in        2004. Whereas ladies suits, out-
value terms increased at a greater     fits, jackets, dresses, skirts and
rate than for men. Imports of          trousers (HS Code 62.04) and
woven menswear decreased               coats, capes, anoraks and wind-
from € 2,542 million in 2002 to €      breakers (HS Code 62.02) were
2,435 million in 2003 and increa-      imported more in 2004, blouses
sed in 2004 to € 2,515 million.        (HS Code 62.06) suffered a
                                       decrease of 1% (value terms).
The import volume of woven
menswear rose from 126 million         The clothing exporter selling into
tons in 2002 to 142 million tons in    the UK can easily select ‘his speci-
2004. Import prices for woven          fic product group’ from the import
menswear decreased significant-        Table 6-6 and Table 6-7 in which
ly. Menswear, and in particular        he is working (HS Code indicated
woven wear, played an important        in column 1) and analyse the spe-
role in recent seasons, resulting in   cific import developments in
some price increases.                  terms of value and volume from
                                       2002 to 2004.
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 €.




                                                                              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)   The main import countries are
                                       China (1,916 million €), Turkey
Unfortunately, there is no informa-    (1,452 million €), Bangladesh (820
tion available via Eurostat and        million €), Italy (721 million €) and
other sources about the OPT            Hong Kong (688 million €). Four of
business in the UK, as this kind of    these increased their exports to
subcontracting business is relati-     the UK; only Hong Kong reduced
vely unknown.                          it by 5%.

6.3.3 Largest suppliers of outerwear   Among the ‘winning countries’ Sri
                                       Lanka has an excellent perfor-
UK domestic clothing production        mance with +21%, the highest
has declined, whereas imports          increase among the 20 leading
have increased. This develop-          clothing suppliers to the UK. The
ment has opened and will open          second best performing country
good sales opportunities to            is Bangladesh with an increase of
manufacturers; especially those        +19% followed by Pakistan with
from developing and emerging           +14% and Spain also with +14%.
countries. Table 7-8 gives a good      The ‘losing’ countries are Belgium
survey on the performance of the       (7%), Portugal (6%), Indonesia
20 leading clothing suppliers to       (6%) and Hong Kong (5%), (value
the UK. The share of clothing          terms 2004 compared to 2003).
imports from non-EU countries is
74.4%. EUROSTAT states that in         Looking at the country shares in
2004, € 13.1 billion of outerwear      total import, China maintains the
was imported to the UK: € 9.7 bil-     major part with 14.6% of total
lion outerwear from outside the        imports. Turkey also plays a signi-
EU and € 3.4 billion outerwear         ficant role with 1,452 million € and
from EU countries. While the           a share of 11.1%. The main Asian
imports from outside the EU            countries are China (14.6%),
decreased by 2% in 2003 and            Bangladesh (6.3%), Hong Kong
increased in the year 2001 by 2%,      (5.2%), India (3.5%) and Sri Lanka
the imports from EU countries          (3.2%). These countries alone
declined significantly by 6% in        represent more than a third of
2003 but increased by 7% in            total clothing imports.
2004. That shows that the
imports from EU countries rose
more than imports from outside
the EU.




                                                                               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                      of 25%, of which Marks &
                                         Spencer (M&S) is the most impor-
6.4.1 Developments in the retail trade   tant variety chain in the UK. As in
                                         other     EU      countries     and
The British ‘retail scene’ with its      Switzerland, with the exploding
ideas and concepts is acknowled-         importance of the clothing chains,
ged worldwide, so that even              the role of the independent retai-
representatives from American            lers (boutiques etc.) has gone
department stores travel to              back to a market share of about
London to learn from the British         14%. The mail-order houses
retailers. Names like Debenhams,         represent approximately 10% of
John Lewis, Selfridges, Harrods,         the clothing retail market (all data
Harvey Nichols or Liberty have,          from 2004).
though they have developed
strongly, kept their personality.        The improved management of
                                         the ‘supply chain’ of retailers has
Although the retail business was         changed the whole retail structure
expected to be affected by the           in the UK and Europe. This is even
slowing down conjuncture in              truer for Great Britain, where the
2005 and the effects of the terror       degree of concentration at retail
attacks in London in July 2005, at       level is even higher than in other
the end the results were not so          European countries. With a close
bad with sales in November 2005          look at price retailers in the UK it
up 4.6% compared to the previo-          can be clearly observed that they
us year (Source: Retail Sales            are optimising their supply chain.
Monitor of the British Retail            Buyers in the purchasing depart-
Council in collaboration with            ments are not only buyers but
KPMG, December 2005).                    also product and brand mana-
                                         gers. Also, low stock keeping and
Looking at the basic structures in       concentration of the purchasing
the British retail trade, the major      power on few big suppliers are
statement is that the retailers          characteristics of the UK retail
have gone through a tremendous           market.
process of concentration in
recent years. Ten companies con-         Along with this development, the
trol more than 40% of the retail         competition among the clothing
trade. British retail structure is       suppliers from non-EU countries
dominated by clothing multiples          has also increased and demands
with a market share of around            with regard to service, reliability
25%. The biggest players in this         and keeping of high quality stan-
segment include the ‘Arcadia             dards have to be fulfilled by com-
Group’ and ‘Next’. Department            panies that wish to remain on the
and variety stores also play a           supplier’s lists.
dominant role with a market share

                                                                                218
A further strong development in         According to MARKS & SPEN-
the British retail trade - apart from   CER, the market has polarised
price orientation - is the emphasis     into three segments:
on more service and attractive
shop interiors. Consumers are not       1. Premium Fashion Brands,
only prepared to invest in the pro-
duct, but also accept higher pri-       2. Fast ‘One way’ Fashion and
ces for the distracting experience
of shopping. Buying of clothing         3. ‘Commoditisation’ of basic pro-
becomes a special and joyful            ducts (under the assumption that
‘event’ achieved through a variety      they will be regarded as simple
of entertaining and extensive           commodity items which are sold
store environments.                     only via low price).

Formerly known as discount retai-       According to a study by Forester
lers, companies like MATALAN            Research, 35% of British Internet
have initiated new fashion              users      buy    clothing    online.
designs, sub-brands and manage          Traditional retailers like John
- in comparison to Marks &              Lewis, Tesco; Argos and Next
Spencer’s – clearly positioned          profit particularly from this deve-
product lines. In general, buying       lopment. Experts assume that in
clothing for little money has been      10 years, 15% of the retail turnover
‘de-stigmatised’ through the hig-       will be via internet.
her qualities and branding strate-
gies of the retailers.                  ‘Verdict Forecasts Clothing &
                                        Footwear to 2006’ (Verdict
BHS (British Home Stores) variety       Research, London 2001), fore-
store started in the mid price seg-     casts that competition for the
ment and has moved more to an           middle market segment will
image as a discounter with relati-      increase even more. According to
vely large reductions in price. The     this analysis, expenditure for clot-
strategy of BHS targets clothing        hing in the UK to 2006 will increa-
for adults and a special range for      se by only 8.8%. The best sales
kids. All these discount retailers      chances are predicted for the
follow the trend of the consumers       supermarkets, as the British con-
looking for more at less money;         sumer by 2006 will spend 3 billion
this means more choice, more            £ in this kind of retail outlet. These
‘adventure’, more service and           discounters will be among the
more efficiency.                        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                    2001. In the meantime, C&A in
                                           Germany, for instance, has
Table 6-9 gives a good survey of           modernised its sales strategy and
leading clothing shops/chains in           has improved its previously poor
the UK. Besides the clothing               image tremendously.
chains of the powerful ARCADIA
Group, (sales volume €1.02 Billion         Looking at the sales figures of
in 2004) there are other clothing          other important clothing stores,
multiples like NEXT with 333 out-          shops like the MATALAN chain
lets and a sales volume of €1.09           (137 outlets – discount strategy),
Billion. Another important clothing        MacKay’s (271), ETAM (212), New
multiple is BHS with about 160             Look (573 – discount strategy),
outlets. C&A, one of the largest           ALEXON (659), MONSOON (189)
clothing retailers in Europe, tried        trail a long way behind NEXT.
to survive in Great Britain after          Woolworth is the second largest
experiencing serious marketing             store chain for childrenswear after
and sales problems, but finally fai-       M&S. ADAMS is the leading clot-
led with large losses, gave up its         hing chain dealing only in chil-
stores and withdrew totally in             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 &          her percentages in France and
SPENCER has the highest sales of      Germany.
clothing at €1.74 billion. The
second largest department store       The shrinking process of the smal-
that also has an important clothing   ler independent retailers has
department is DEBENHAMS,              come to a standstill and the mar-
(clothing sales € 683 million) ran-   ket has stabilized at a low level.
king among the five largest clot-     More than 90% of independent
hing retailers in the UK. They have   retailers do not buy/import from
97 stores in the UK and have been     overseas clothing suppliers but
very successful by running an         source abroad through their buy-
‘own retail brand strategy’ with      ing associations.
more than 50 own brands! The
Home       Shopping      Catalogue    Market share: 14% in 2004
‘Debenhams Direct’ has been           Trend: decreasing
launched successfully. Other
department stores are HOUSE OF        6.4.3.1.2 Clothing multiples
FRASER (0.84 Billion €) and JOHN
LEWIS (0.36 Billion €). MOTHER-       The structure of clothing retailing
CARE is the largest department        in the UK is one of the most con-
store for babies and children.        centrated in the world. The largest
                                      player in the market is the Arcadia
Among the mail-order houses,          Group, which operates with 2,321
GUS and N BROWN are leading.          clothing multiple stores and inclu-
The well known ASDA (George)          des, as well as home service activi-
and the expansive TESCO are the       ties, the women’s chains Dorothy
two largest supermarkets ranking      Perkins, Evans, Top Shop, Miss
in position 5 (five) and 7 (seven)    Selfridge and Wallis, the menswear
among all clothing retailers in UK.   chains Burton Menswear and Top
                                      Man with a market share of
6.4.3 Distribution channels           approx. 6% and clothing sales of
                                      around 1.02 billion €.
6.4.3.1 Retailers
                                      Despite the fierce competition in
6.4.3.1.1 Independent specialised     the retail industry, the ARCADIA
retailers                             Group was able to increase its
                                      sales volume by 6.8% in the busi-
The market share of independent       ness year 2004/2005. The CEO
clothing retailers has been drop-     of the Arcadia Group, Mr. Philip
ping slowly over the past three       Green, achieved EBIT of 18.4%.
years (2002-2004). In Great           The Arcadia Group buys separa-
Britain, 14% is sold through inde-    tely for each of its companies and
pendent shops, which is rather        each product group and there are
low compared with the much hig-       buyers responsible for each pro-
                                      duct segment.
                                                                             221
The TOPSHOP chain, also belon-          ture houses Hardy Amies and
ging to Arcadia, has almost rea-        Norman Hartnell, Liberty re-laun-
ched a cult-status among fashio-        ched its Regent Street store not
nable British consumers. They           only for Londoners but also for
offer the latest young fashion and      shopping tourists. Harvey Nichols
have enlarged their services inclu-     will open more shops around the
ding ‘style consulting’, a VIP          UK in addition the ones in London
Service sending a selection of clot-    and Leeds.
hing items home and a special
department for pregnant women           As in other European countries,
with extra large changing rooms.        the mid-market global fashion
                                        brands of the foreign companies
Those luxury shops that have tra-       H&M, ZARA and MANGO are
ditional brands such as BURBER-         strengthening their hold on the UK
RY‘S, BARBOUR and PRINGLE               market. In the UK clothing retail
play an important role for consu-       sector a distinction is made bet-
mers over 45 who have the               ween discount retailers, which sell
appropriate income to buy quality       branded clothing at below recom-
collections. Burberry has been          mended prices and value retailers,
successful in re-launching its tradi-   which sell own label clothes at low
tional labels and combines higher       prices. The market share of these
quality    with    higher    prices.    retailers, in particular value retai-
Burberry‘s     consumer-oriented        lers, increased strongly in the
and elaborate marketing led to a        period under review and included
sales increase. Similar develop-        outerwear. The secret of their suc-
ments can be detected for the           cess is the ability to provide the
retailers    Daks,    Aquascutum,       latest fashion trends to their custo-
Mulberry, Holland and Holland and       mers.
Jaeger who combined classic
brands with current market trends.      Zara, seen to be more at the cut-
                                        ting edge of fashion than H&M,
The more sophisticated taste of         has maintained a lead in its ability
consumers and strong brand              to respond rapidly to fashion
awareness is reflected by the           trends. It puts fashion ranges
trend for the more upmarket retai-      together in 7-30 days and can
lers such as the department store       replenish bestsellers in the stores
SELFRIDGES and the clothing             in five days, while H&M can
chain HOUSE OF FRASER. Luxury           respond in 30-60 days. This com-
shops like CARDINGTON, LIBERTY          pares to as much as 40-50 weeks
and HARVEY NICHOLS with the             from design to delivery for a typical
Hong Kong-based owner Dickson           clothing retailer.
Concepts are considering expan-
sions and refurbishments of their       Market share: 25 % in 2004
shops because of good profits.          Trend: increasing
Cardington purchased the cou-
                                                                                222
6.4.3.1.3 Department stores              Activities are now concentrated
                                         only on Great Britain and it seems
Among the clothing retailers, the        that the new efforts will prove to
department store MARKS &                 be successful. A journalist specia-
SPENCER (M&S) in particular suf-         lised in the UK retail market sug-
fered from fiercer competition and       gests that the key for the better
profits that turned into losses at       performance of M&S was better
the end of the nineties. However,        fashion, better prices and a faster
with sales of around 1.7 billion €,      flow of goods. A M&S employee
M&S is still the largest British clot-   stated that the ‘perfect’ cam-
hing retailer with a share of 10.2%      paign, which mediates the mes-
in the total clothing market.            sage of giving the ‘ideal standard’
                                         design M&S, achieved more sales
With its middle priced items and its     – not only in the womenswear
315 stores, M&S, at least in the         segment but also in the menswe-
past, was sometimes viewed as            ar segment. Moreover, there is a
old-fashioned or at least not very       programme for general refurbish-
consumer oriented and with unfo-         ment of the stores and the outlets
cused areas in its outlets. On the       are updated and rearranged
one hand it did not offer very           across the country. To compete
cheap clothing to convince               with the small chain stores and the
through price, and on the other          discounters, M&S plans to react
hand, it did not offer highest quali-    with an aggressive price strategy
ty and had disregarded the               and low entry price ranges.
increased brand consciousness
of the British consumer. At the          The DEBENHAMS department
same time, buying relations to           stores are operating more suc-
domestic suppliers proved to be          cessfully, with sales of 2 Bn. £ in
too unsuccessful. The manufactu-         2005. They had the excellent
rer William Baird, for instance, sup-    ‘Marketing Idea’ to offer a range
plied 7% of M&S clothing. Despite        called ‘Designers at Debenhams’
long-term      partnerships      with    offering exclusively developed
William Baird, M&S decided to            collections at affordable prices.
cancel and now buys from outsi-
de the country and therefore fol-        Among all department stores,
lows the purchasing strategy of its      JOHN LEWIS has gained most
competitors. In other European           market share with a total of 1.8% in
countries     like    France      and    2004. There are also HOUSE OF
Germany, M&S had to exit its retail      FRASER, ALLDERS and SELFRID-
engagement. M&S also termina-            GES in the market, but MARKS &
ted US activities by the end of          SPENCER still keeps the no. 1
2001.                                    position.

                                         Market share: 25 % in 2004
                                         Trend: stable
                                                                                223
6.4.3.1.4 Mail-order houses           6.4.3.1.5 Textile discounters and

The major currently active clothing   6.4.3.1.6 Supermarkets
mail-order business companies
are the British owned companies       In 2005, the London based retail
GREAT UNIVERSAL STORES                analysts ‘Verdict Research’ publis-
(GUS) and LITTLEWOODS Home            hed that in 2004 the ‘Top Seven
Shopping in co-operation with         Textile     Discounters        and
Arcadia and Empire Stores             Supermarkets’ are: George at
(French PRP Group). In this seg-      Asda, Matalan, New Look,
ment, customers can order within      Primark, Tesco, TK Maxx and the
given bank credits from the mail-     Peacock Group with a market
order companies. However, mail-       share of 16% in the British apparel
order houses lost 10% market          market.
share from 2002 to 2004.
                                      The number one in terms of
The mail-order house N BROWN          growth rates is TESCO, which
sells its products through a direct   achieved an increase of 28% in
mailing marketing strategy. The       2004 with its clothing brands
German OTTO GROUP owns the            Cherokee, Florence and Fred, fol-
mail order companies GRATTAN          lowed by TK Maxx with a 17%
and FREEMANS. An employee of          increase in sales. Tesco’s brands
Freemans has given the informati-     Cherokee and Florence & Fred
on that the whole process of buy-     remain the most expanding clot-
ing from foreign suppliers in mail-   hing brands in the UK. Following
order business depends on the         its competitor Asda, Tesco started
publishing of the catalogues. In      a pilot project with two non-food
addition, manufacturers from          stores in October 2005. Tesco
abroad have to recognize that the     achieved an annual turnover of
lead times are quite long. The pro-   700 Mn. £ (2004) in apparel only,
ducts have to be photographed         the total sales of the Tesco Group
and there is more preparation         were 37 Bn. £.
necessary than high street stores
have to face. The penalties for       Looking at the sales figures, ASDA
suppliers not performing in the       is the largest ‘Value Retailer’ with a
requested way are quite high.         turnover of 2 Bn. £. In the super-
                                      market segment the supermarket
Market share: 9% in 2004              ASDA (Wal-Mart) with half of
Trend: decreasing                     supermarket clothing sales, runs
                                      its clothing under the label
                                      GEORGE.




                                                                               224
It can be predicted that the battle    well as on marketing and sales.
in the mainstream market of            The brands sell their products to
middle priced clothing will conti-     selected distribution channels that
nue. The pull out of C&A from the      correspond with their marketing
British market has implied an          strategy. In any case, practically all
ongoing fight among the retailers      British clothing brands source pro-
to gain the consumers who pre-         ducts abroad in one way or anot-
viously bought from C&A. It is         her and offer various sales oppor-
reported that mainly the discoun-      tunities for clothing manufacturers
ters and the so-called ‘value for      from abroad.
money chains’ like PEACOCKS
and MATALAN have profited from         6.4.3.2.2 Central Buying Associations
the pulling out of C&A, but BHS
which covers the middle priced         Co-ordinated buying through cen-
clothing, and Next have also done      tral buying associations is a way for
so.                                    smaller UK retailers to gain more
                                       purchasing power. Since the clot-
Market share: 20% (estimated)          hing market in the UK is highly con-
Trend: strongly increasing             centrated, with only a few big play-
                                       ers who mainly buy directly from
6.4.3.2 Sales Intermediaries           clothing manufacturers and there
                                       is little market share for small inde-
6.4.3.2.1 Clothing Manufacturers       pendent shops, the importance of
                                       central buying associations in the
In addition to retailers and whole-    UK is still low.
salers that import clothing to the
UK, in some cases UK manufactu-        In Great Britain, importers/whole-
rers partly outsource their produc-    salers have often taken over the
tion activities to manufacturers       ‘buying function’ for smaller retai-
abroad. UK clothing manufactu-         lers, as the latter do not have the
rers (mainly brands) have started      know-how and the means to
outsourcing with the strong            import goods on their own.
increase of production costs in the
UK, mainly in Eastern Europe and       6.4.3.2.3 Sales Agents
Northern Africa. Many products
(e.g. most of the knitted outerwe-     There are different methods of
ar) are bought from Asia and           indirect distribution from abroad to
Turkey on a ‘finished product’         the various clothing retailers in
basis (f.o.b. business).               Great Britain. One option is that
                                       local ‘agents’ identify the clothing
British clothing ‘manufacturers’ are   suppliers abroad, but the UK retai-
more management and marketing          ler is still the one who negotiates
units than producers. They mainly      with their in-house buying team
concentrate on the design and on       and organises all the logistics inclu-
questions of current fashion as        ding shipping etc.
                                                                                225
Most often British retailers use         an important role in the UK. Some
several forms of indirect contacts.      British retailers do buy with the
Roughly speaking, half of these          help of intermediary companies,
agents or wholesalers are located        and these wholesalers might even
in the UK and half are located out-      be outside the UK.
side the UK. Agents are used by
retailers to identify appropriate        The principles and possibilities of
suppliers, to outsource the com-         indirect selling to the UK might be
plete handling and control inclu-        illustrated as follows: If the manu-
ding communication with the sup-         facturer’s clothing is sold for
plier, the safeguarding of quality       instance at the shops of Marks &
standards       (especially     for      Spencer in the UK, the import may
womenswear), the complete logi-          be done through a company
stics including the import proce-        somewhere in Europe and not
dures, the production abroad             necessarily in the UK. This can be
according to ecological and social       confusing for clothing manufactu-
standards (code of conduct) etc.         rers from abroad when trying to
                                         get in contact with a buyer who
A further option for the clothing        only     buys     ‘within    Europe’.
manufacturer from abroad is sel-         Nevertheless, selling clothing to
ling through regional agents in          the UK also means working, in
Great Britain. The condition is          general, with manufacturers in
whether the manufacturer has a           Europe that export to the British
clear marketing strategy with a          market.
market oriented collection for the
British market. The basis is an          Selling to wholesalers can be
detailed ‘Business Plan’. The            more profitable, because despe-
manufacturer from abroad should          rately trying to sell directly to the
consider that the area of ‘Greater       retailers may not work and might
London’ is highly competitive and        result in no orders at all, as many
it might be more advantageous to         British retailers ‘source’ through
start the market entry in areas like     those wholesale and import units.
Manchester, the North West or            The main function of wholesalers
even Ireland.                            cannot be described merely as
                                         ‘buying and selling and gaining a
6.4.3.2.4 Importers/wholesalers          high margin’. The wholesalers also
                                         know most of the details about
For most suppliers to the UK mar-        the retailer’s needs. Other tasks
ket, indirect selling is the first way   and functions of the wholesaler
to go. UK wholesalers are infre-         within the sourcing process inclu-
quently mentioned, rarely visible,       de the know-how about the stan-
and searching for them on the            dards of the designs and as well
Internet proves to be very difficult.    as knowledge of the technical
Market research has shown that           aspects of the products to be
clothing wholesalers do not play         produced.
                                                                                 226
The British wholesaler normally also     the ‘fair scene’ keeps on changing
advises the manufacturer to put the      its names and locations.
appropriate label on the product, as
the concept of own ‘Retail Brands’       The main trade fair for clothing in
has become of crucial importance         Great Britain is the London Fashion
to the retailers in the UK offering      Week. Three more fairs take place
them more independence from the          parallel to the London Fashion
clothing manufacturers and running       Week: Pure, Moda UK and Margin
an own brand concept with better         London. All these fairs take place
margins. The British wholesaler nor-     twice a year (February and August).
mally is fully involved in these pro-    At Pure, contemporary and classic
cesses to guarantee the ‘right pro-      collections are shown, Moda UK is
duct at the right time in the right      a trade fair for men’s and women’s
place’.                                  clothing and accessories. Other
                                         trade shows in Harrogate (PRIMA –
6.5 UK FASHION TRADE FAIRS               Lingerie and Swimwear) are targe-
                                         ting the northern part of the country
The UK has achieved a better             more, including Scotland, and the-
image for clothing design in the last    refore have more regional impor-
few years and is competing with          tance. An exception is the Premier
France and Italy. With London as a       Childrenswear in Birmingham,
major fashion centre in Europe, the      which has found its niche in the chil-
United Kingdom has gained more           drenswear segment.
importance as a ‘Fashion Country’.
In addition, a great deal of support     Premier Kids and Pure are organi-
from the British government has          sed by EMAP. The London Fashion
been an encouraging factor.              Week is organised by the British
‘London Design’ is said to have a        Fashion Council.
very modern or even avant-garde
style and influences the European        There are also some smaller spe-
fashion scene to a certain extent.       cialised fairs like the ‘London Design
                                         Week’, ‘London Corporate Wear
As a consequence of the apprecia-        Week’,       ‘Retail     Solutions’  in
tion of British clothing and design,     Birmingham or Harrogate Bridal
trade fairs have increased in recent     Exhibition which might be of inte-
years. According to market               rest for manufacturers from abroad
experts, London offers the major         specialised in the respective pro-
clothing fairs in UK. There have         duct groups presented during the
been many clothing fairs in Great        fair. In any case, brief research
Britain in the last 5 years, and the     about the importance and the con-
British clothing fair market is extre-   cept of the fair to be attended is
mely fragmented. Still today, it is      essential. The table underneath
highly recommended to check              gives a brief survey on the major
exact dates and venues of the            British clothing fairs with names,
smaller British fairs beforehand, as     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 men’s wear,        Birmingham   February and
                accessories, footwear          Birmingham   August


 PRIMA          Women’s wear,                  Harrogate    February and
 Harrogate      lingerie and swimwear                       August


 Margin         Men’s and women’s clothing &   London       February and
 London         accessories                                 August


 Upfront        Men’s and women’s clothing,    London       February
                sportswear, leisure wear


 Clotheshow     Men’s and women’s 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, MEN’S AND
CHILDREN’S WEAR IN GREAT BRITAIN

Clothing Chain Stores

Arcadia Group Ltd.            Product range: Ladies, men’s, 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, men’s, 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, men’s, 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 Marché 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, men’s, 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.                 Product range: Ladies, men’s, chil-
2nd Floor, Holden House         drenswear
57 Rathbone Place               Price segment: lower level
GB - London W1T 1HE             Number of outlets: 96 (expanding)
Tel.: +44 – 020 – 7323 2211
www.hm.com




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



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-solità i
Plegamans (Barcelona)
Tel.: +34 – 93 860 24 24
Fax:+34 – 93 860 22 07
www.mango.es



QS Familywear PLC               Product range: Ladies, men’s, 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.        Product range: Ladies’ and menswe-
Ltd.                             ar
Chelsea House, West Gate         Price segment: Mid to upper level
GB - London W5 1DR               Number of outlets: 200
Tel.: +44 – 208 – 9914500
Fax: +44 – 208 – 9914500
www.riverisland.com



Zara                             Product range: Ladies, men’s, chil-
120, Regent Street               drenswear
GB - London, W1B 5 FE            Price segment: Mid-level
Tel.: + 44 – 207 – 851 43 00     Number of outlets: 42
Fax: +44 – 207 – 851 43 01       (Remark: Buying via Spain)
www.zara.com


Department Stores
Debenhams Ltd.                   Product range: Ladies’, men’s and
1 Welbeck Street                 childrenswear
GB - London W1A 1DF              Price segment: Mid-level
Tel.: +44 – 207 – 408 4444       Number of outlets: 117
Fax: +44 – 207 – 408 3366
www.debenhams.com




House of Fraser PLC              Product range: Ladies’ and menswe-
1 Howick Place                   ar
GB - London SW1P 1BH             Price segment: Upper level (brand
Tel.: +44 – 207 – 963 2000       orientation)
Fax: +44 – 207 – 821 5348        Number of outlets: 51 (under 16
www.houseoffraser.co.uk          names)




John Lewis Partnership Ltd.      Product range: Sports and
John Lewis Department Stores     Leisurewear
171 Victoria Street              Price segment: Lower to mid-level
GB - London SW1E 5NN             Number of outlets: 27 stores + 169
Tel.: +44 – 207 – 828 1000       supermarkets
Fax: +44 – 207 – 592 6333
www.johnlewis.co.uk
www.johnlewispartnership.co.uk
                                                                       232
Liberty PLC                       Product range: Ladies’ and menswear
Regent Street                     Price segment: Upper level
GB - London W1B 5AH               Number of outlets: 5
Tel.: +44 – 207 – 734 1234        Note: Department Store + mail-order
Fax: +44 – 020 – 7573 9898
www.liberty.co.uk




Littlewoods Shop Direct           Product range: Ladies’, men’s and
Home Shopping Ltd.                childrenswear
Sir John Moores Building          Price segment: Lower to mid-level
100 Hall Street                   Number of outlets: 120 + 166 catalo-
GB - Liverpool L70 1AB            gue shops
Tel.: +44 – 151 – 235 2222
www.littlewoods.co.uk



Marks + Spencer Group PLC         Product range: Ladies’, men’s and
Waterside House                   childrenswear
35 North Wharf Road               Price segment: Mid-level
GB - London W21 NW                Number of outlets: 375 stores + over
Tel.: +44 – 207 – 935 4422        130 franchising partners
Fax: +44 – 207 – 487 2679
www.marksandspencer.com



Next Retail Ltd.                  Product range: Ladies’, men’s and
Desford Road                      childrenswear
GB - Enderby Leicester LE19 4AT   Price segment: Mid-level
Tel.: +44 – 845 – 456 7777        Number of outlets: 400 stores + 43
Fax: +44 – 116 – 284 8998         franchising partners + home shop-
www.next.co.uk                    ping




Woolworths PLC                    Product range: Childrenswear
242/246 Marylebone Road           Price segment: Lower to mid-level
GB - London NW1 6JL               Number of outlets: 806
Tel.: +44 – 207 – 262 1222
Fax: +44 – 207 – 706 5416
www.woolworths.co.uk


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



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



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’, men’s 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                     Product range: Ladies’, men’s and
Anchor House                     childrenswear
Ingleby Road                     Price level: Lower to mid-level
GB - Bradford, West Yorkshire,   (value for money)
BD98 2XG
Tel.: +44 – 870 – 606 6099
www.freemans.com



Great Universal Stores PLC       Product range: Ladies’, men’s and
(GUS)                            childrenswear
One Stanhope Gate                Price level: from Lower to upper
GB - London W1K 1AF              level
Tel.: +44 – 207 – 495 0070       Note: 12 different mail-order lines
Fax: +44 – 207 – 495 1567
info@gusplc.com
www.gusplc.com



Grattan PLC                      Product range: Ladies’, men’s and
Anchor House, Ingleby Road       childrenswear
GB - Bradford, West Yorkshire,   Price level: Lower to mid-level
BD99 2XG
Tel.: +44 – 870 – 599 0900
www.grattan.co.uk




JD Williams + Co. Ltd.           Product range: Ladies’, men’s and
Griffin House                    childrenswear
40 Lever Street                  Price level: Mid to lower level
GB - Manchester M60 6ES          Note: No. 1 in UK with 20 catalogue
Tel.: +44 – 870 – 160 61 00      brands
www.jdwilliams.co.uk             Note: part of N. Brown Group PLC


Jeans and Young Fashion Chain

Alexon Group PLC                 Product range: Men’s and ladies
40 – 48 Guildford Street         outer- and sportswear
GB - Luton – Bds. LU1 2PB        Price segment: Mid-level
Tel.: +44 – 1582 – 72 3131       Number of outlets: 357 stores + 988
Fax: +44 – 1582 – 399 823        concessions
www.alexon.co.uk                 Note: Manufacturer and retailer

                                                                       235
Blacks Direct Ltd.               Product range: Sportswear (outdoor)
Unit 1, Parkers House – Regent   Price segment: Mid-level
Street                           Number of outlets: 125
GB - Cambridge CB 2 1DP          Note: belongs to Blacks Leisure
Tel.: +44 – 122 – 3 314335       Group plc.
www.blacks.co.uk




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

                                 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 Köln
    (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               Am Weidendamm 1 A
GROSS- UND                                D - 10117 Berlin
AUSSENHANDELS e.V. (BGA)                  Tel.: +49 – 305 – 900 995 – 0
Federal Association of German             Fax: +49 – 305 – 900 995 – 19
Wholesalers and Exporters                 www.bga.de
                                          info@bga.de

BUNDESVERBAND                             An Lyskirchen 14
DES DEUTSCHEN TEXTILEINZEL-               D - 50676 Köln
HANDELS e. V. (BTE)                       Tel.: +49 – 221 – 921 509 – 0
Association of German Textile Retailers   Fax: +49 – 221 – 921 509 – 10
                                          www.bte.de
                                          info@bte.de

BUNDESVERBAND DES DEUTSCHEN               Johann-Klotz-Str. 12
VERSANDHANDELS eV                         D - 60528 Frankfurt/M.
Association of German Mail Order          Tel.: +49 – 69 – 678 656 – 0
Companies                                 Fax: +49 – 69 – 678 656 – 29
                                          www.versandhandel.org
                                          info@versandhandel.org

CENTRALVEREINIGUNG                        Am Weidenbaum 1 A
DEUTSCHER WIRTSCHAFTS-                    D - 10117 Berlin
VERBÄNDE FÜR HANDELSVER-                  Tel.: +49 – 30 – 726 25600
MITTLUNG UND VERTRIEB (CDH)               Fax: +49 – 30 – 726 25699
National Association of Trade Agents      www.cdh.de
                                          centralvereinigung@cdh.de



VERBAND DER FERTIGWAREN-                  Gotenstraße 21
IMPORTEURE (VFI)                          D - 20097 Hamburg
Association of Non-Food Importers         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             V. Morone Gerolamo 6
ITALIANA                                I - 20121 Milano (MI)
National Fashion Organisation           Tel.: +39 (0) – 2 777 1081
                                        Fax: +39 (0) – 2 777 10851
                                        www.cameramoda.it
                                        e-mail on the website

FEDERAZIONE NAZIONALE ASSOCIA-          Corso Venezia, 51
ZIONI AGENTI E RAPPRESENTANTI DI        I - 20121 Milano
COMMERCIO                               Tel.: +39 (0) – 2 – 764 5191
National Organisation of Trade Agents   Fax: +39 (0) – 2 – 7600 8493
and Representatives                     www.fnaarc.it
                                        info@fnaarc.it

FEDERAZIONE NAZIONALE                   Via Palestro, 24
DETTAGLIANTI TESSILI E                  I - 20121 Milano
ABBIGLIAMENTO                           Tel.: +39 (0) – 2 – 7601 5212
National Organisation of Textile and    Fax: +39 (0) – 2 – 7600 3779
Clothing Retailers                      (no website)



FEDERAZIONE MODA ITALIA                 Corso Venezia, 26
Italian Fashion Organisation            I - 20121 Milano
                                        Tel.: +39 (0) – 2 – 76015212
                                        Fax: +39 (0) – 2 – 76003779
                                        www.federazionemodaitalia.it
                                        info@federazionemodaitalia.it

SISTEMA MODA ITALIA (SMI)               Viale Sarca, 223
Association of Italian Textile and      I - 20126 Milano
Clothing Industry                       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                 CH - 3073 Gümlingen
Association of Fashion retailers     Tel.: +41-31-384 77 04
c/o KPMG Fides - Hofgut              Fax: +41-31-384 76 36
                                     www.swiss-fashion-stores.ch
                                     office@swiss-fashion-stores.ch



SWISS RETAIL FEDERATION              Marktgasse 50
Federation of retailers              CH - 3000 Bern 7
                                     Tel.: +41-31-312 40 40
                                     Fax: +41-31-312 40 41
                                     www.swiss-retail.ch
                                     info@swiss-retail.ch

VSF – VERBAND SCHWEIZERISCHER        Frohburgstr. 98
FILIALUNTERNEHMEN                    CH - 8006 Zürich
Federation of Swiss Chain Stores -   Tel.: +41-44-363 14 00
c/o Advokaturbüro Utzinger           Fax: +41-44-363 15 25
                                     www.vsf-schweiz.ch
                                     vsf@ku-law.ch

VSIG – VEREINIGUNG DES               Güterstr. 78
SCHWEIZER IMPORT- UND                CH - 4010 Basel
GROSSHANDELS                         Tel.: +41-61-228 90 30
Association of Swiss Importers and   Fax: +41-61-228 90 39
Wholesalers                          www.vsig.ch
                                     info@vsig.ch

VSV – VERBAND DES                    Brandenbergstr. 30
SCHWEIZERISCHEN                      CH - 8304 Wallisellen
VERSANDHANDELS                       Tel.: +41-44-830 16 02
Federation of Swiss Mail Order       Fax: +41-44-830 16 08
Companies                            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         24 Mount Parade
                                Harrogate
                                GB - North Yorkshire HG1 1BP
                                Tel.: +44-1423-560608/9
                                Fax: +44-1423-561204
                                www.agentsregister.com
                                info@agentsregister.com

BRITISH FASHION COUNCIL         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

BRITISH MENSWEAR GUILD          5 Portland Place
                                GB - London, W1B 1PW
                                Tel.: +44-20-7580 8783
                                Fax: +44-20-7436 8833
                                www.british-menswear-guild.co.uk
                                director@british-mens-wear-
                                guild.co.uk



BRITISH SHOPS AND STORE         Middleton House
ASSOCIATION Ltd. (BSSA)         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 L’HABILLEMENT            F - 75001 Paris
     (UFIH)                                 www.lamodefrancaise.org
     French Association of ladies, men’s    secretariatufih@lamodefrancai-
     and children’s 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 Köln
     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         D - 65760 Eschborn
     National Association of Textile        Tel.: +49 – 6196 – 966-0
     Industry                               Fax: +49 – 6196 – 42170
                                            www.textile-online.de
                                            info@textil-mode.de




                                                                           8
I t a l y :

FEDERTESSILE                          Viale Sarca 223
Textile Industry Federation           I - 20126 Milano
                                      Tel.: +39 (0) – 2-6610 3440
                                      Fax: 39 (0) – 2-6610 3455




S p a i n :

AITPA                                 Gran Via
National Association of Textile       de les Corts Catalanes, 670
Industry                              E - 08010 Barcelona
                                      Tel.: +34-93-318 92 00
                                      Fax: +34-93-302 62 35
                                      www.aitpa.es
                                      aitpa@aitpa.es

ASOCIACIÓN ESPAÑOLA DE                Riera Sant Miquel 3
CONSTRUCTORES DE MAQUINARIA           E - 08006 Barcelona
TEXTIL Y DE CONFECCION                Tel.: +34-934-150 422
Association of Spanish Knitwear and   Fax: +34-934-160 980
Ready-to-Wear Manufacturers           www.amec.es/amtex
                                      amtex@amec.es

CENTRAL DE INFORMACION Y DIS-         Paris 184, 4° - 1
ENO INDUSTRIAL TEXTIL (CIDIT)         E - 08306 Barcelona
Information Centre for the Spanish    Tel.: +34-93-4155 051
Textile Industry                      Fax: +34-93-2373 822
                                      www.aprendemas.com



S w i t z e r l a n d :

SCHWEIZERISCHER                       Gutenbruennenweg 23
MODEGEWERBE-VERBAND                   CH - 3125 Toffen
Swiss Association of the Fashion      Tel.: +41-31-819 52 17
Industry                              Fax: +41-31-819 52 87
                                      www.sgv-usam.ch
                                      info@sgv.usam.ch


                                                                    9
SWISSFASHION – GESAMTVERBAND    Beethovenstrasse 20
DER SCHWEIZERISCHEN             CH - 8022 Zürich
BEKLEIDUNGSINDUSTRIE            Tel.: +41-44-289 79 79
Swiss Clothing Manufacturers    Fax: +41-44-289 79 80
Association                     www.swisstextiles.ch
                                zuerich@swisstextiles.ch



U n i t e d   K i n g d o m :

BRITISH TEXTILE CONFEDERATION   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

THE BRITISH CHAMBERS OF         65 Petty France
COMMERCE                        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



CONFEDERATION OF BRITISH WOOL   Merrydale House - Roydsdale
TEXTILES                        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:                             F - 92113 Clichy Cedex
      Intersélection – Groupe Eurovet           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. Eugène Deruelle
      organised by:                             F - 69432 Lyon Cedex 3
      Première Vision                           Tel.: +33 – 4 – 7260 6500
                                                Fax: +33 – 4 – 7260 6509
                                                www.premierevision.fr
                                                info@premierevision.fr

      KID’S FASHION – MODE ENFANTINE            999 chée d'Alsemberg
      Kids Fahion Fairs in Paris and Brussels   B - 1180 Brussels
      organized by Kid's Fashion Mode           Tel.: +32 – 2 – 376 5747
      Enfantine SA/NV                           Fax: +32 – 2 – 332 0880
                                                www.kidsfashionfairs.com
                                                visitorskids@bff.be

      SALON DU PRET A PORTER PARIS              5, rue Caumartin
      French association of Prêt à Porter       F - 75009 Paris
                                                Tel.: +33 – 1 – 4494 7000
                                                Fax: +33 – 1 – 4494 7002/7004
                                                www.pretparis.com
                                                info@pretparis.com




                                                                                 11
WHO’S 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 Düsseldorf
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                              Messegelände
(Active Sportswear)                        D - 81823 München
organised by:                              Tel.: +49 – 89 – 949 – 11388
Messe München GmbH                         Fax: +49 – 89 – 949 – 11389
                                           www.ispo.com
                                           ispo@messe-muenchen.de



KIND + JUGEND – Cologne                    Messeplatz 1
organised by:                              D - 50679 Köln
KölnMesse GmbH                             Tel.: +49 – 221 – 821 – 0
                                           Fax: +49 – 221 – 821 – 2574
                                           www.koelnmesse.de
                                           info@koelnmesse.de

BREAD AND BUTTER                           Münzstrasse 13
Trade fair for selected brands in Berlin   D - 10178 Berlin
and Barcelona                              Service Hotline (Accreditation +
BREAD & butter GmbH Headquarter:           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 women’s 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
 Lüpertzenderstr. 159                                             Textile Industry
 D - 41061 Mönchengladbach
 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 Klar’sche 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 München
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
Königsallee 70
D - 40212 Düsseldorf
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 Zürich          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
Örgelackerstrasse 4
CH-8707 Uetikon am See
Tel.: +41 – 44 – 920 79 40
Fax: +41 – 44 – 920 79 41
www.sportbiz.ch
info@sportbiz.ch

TEXTIL-REVUE                 Once a week    8,500         Textile and
Fürstenlandstr. 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 Children’s Wear
Association
5 Portland Place
GB-London W 1B 1 PW
Tel.: +44 – 20 – 7631 5445
Fax: +44 – 20 – 7631 – 3443
www.ncwa.co.uk
enquiries@ncwa.co.uk

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         WTC-Beurs Building, Beursplein 37
    VAN DE IMPORT UIT                     P.O.Box 30009
    ONTWIKKELINGSLANDEN                   NL - 3001 DA Rotterdam
    Centre for the Promotion of Imports   Tel.: +31 – 10 – 2013 434
    from Developing Countries             Fax: +31 – 10 – 4114 081
                                          www.cbi.nl, cbi@cbi.nl

    DIPO                                  DK - 1217 Copenhagen K
    Danish Import Promotion Office        Tel.: +45 – 33 – 950 500
    Boersen                               Fax: +45 – 33 – 120 525
                                          www.dipo.dk
                                          dipo@commerce.dk

    GTZ - Gesellschaft für technische     Dag-Hammerskjöld-Weg 1-5
    Zusammenarbeit                        D - 65726 Eschborn
    German Organisation for Technical     Tel: +49 – 6196 – 796 000
    Cooperation                           Fax: +49 – 6196 – 797 414
                                          www.gtz.de
                                          info@gtz.de

    INTERNATIONAL TRADE CENRE             Palais des Nations
    UNCTAD/WTO (ITC)                      CH - 1211 Geneva 10
                                          Tel : +41 – 22 – 730 0111
                                          Fax : +41 – 22 – 733 4439
                                          www.intracen.org
                                          itcreg@intracen.org

    NORAD                                 Ruselokkveien 26
    Norwegian Agency for Development      Postbox 8034
    Cooperation                           N - 0030 Oslo
                                          Tel.: +47 – 22 – 24 20 30
                                          Fax: +47 – 22 – 24 20 31
                                          www.norad.no
                                          firmapost@norad.no

    SIDA                                  Sweavagen 20
    Swedish International Development     Postbox 3144
    Cooperation Agency                    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-                Beursplein 37
     LINGSLANDEN                                P.O.Box 30009
     Centre for the Promotion of Imports from   NL – 3001 DA Rotterdam
     Developing Countries                       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              Schloß Hohenstein
     (measurement tables and                    D - 74357 Bönningheim
     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 ÖkoTex 100 hallmark :

DEUTSCHE ZERTIFIZIERUNGSSTELLE                 Frankfurter Str. 10-14
ÖKO-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 Zürich
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

TÜV RHEINLAND                                  Am Grauen Stein
BERLIN BRANDENBURG                             D - 51105 Köln
(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                              Bâtiment 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 D’OBSERVATION 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 FÜR             Agrippastr. 87-93
AUSSENWIRTSCHAFT                     D - 50445 Cologne
(foreign trade information Germany   Tel.: +49 – 221 – 205 7000
and EU)                              Fax: +49 – 221 – 205 7212
                                     www.bfai.de
                                     webkontakt@bfai.de

BUNDESAMT FÜR WIRTSCHAFT             Frankfurter Str. 29 – 31
(BAW)                                D - 65760 Eschborn
(German Economic Office)             Tel.: +49 – 6196 – 908-0
                                     Fax: +49 – 6196 – 908-800
                                     www.bafa.de



STATISTISCHES BUNDESAMT              Gustav Streesemann Ring 11
(German Statistical Office)          D - 65189 Wiesbaden
                                     Tel.: +49 – 611 – 752405
                                     Fax: +49 – 611 – 753330
                                     www.destatis.de
                                     info@destatis.de




I t a l y :

INSTITUTO NAZIONALE DI STATISTICA    Via Cesare Balbo, 16
(ISTAT)                              I - 00100 Roma
(National Statistical Office)        Tel.: +39 (0) – 6-46 73 1
                                     www.istat.it
                                     info@istat.it



MARKET STUDY CLOTHING SECTOR         Via dei Piatti, 11
DATABANK                             I - 20123 Milano
Sede Centrale                        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 INFORMACIÓN 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



ECONÓMICO Y SOCIAL DE ESPAÑA              C/Huertas 73
(Economic and Social Council of           E - 28014 Madrid
Spain)                                    Tel.: +34-91-429 0018
(Dirección de Relaciones                  Fax: +34-91-429 4257
Institucionales y Publicaciones)          www.ces.es



INSTITUTO NACIONAL DE                     Paseo de la Castellana 183
ESTADÍSTICA                               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 Zürich
                                          Tel.: +41 – 44 – 289 79 49
                                          Fax: +41 – 44 – 289 79 38
                                          www.sartex.ch




                                                                       26
SWISS ASSOCIATION FOR                   Bürglistr. 29
STANDARDIZATION (SNV)                   CH - 8400 Winterthur
                                        Tel.: +41-52-224 54 54
                                        Fax: +41-52-224 54 74
                                        www.snv.ch
                                        info@snv.ch

TESTEX – Schweizer Textilprüfinstitut   Gotthardstr. 61
(Swiss Institute for Textile Testing)   CH - 8027 Zürich
                                        Tel.: +41 – 44- 206 42 42
                                        Fax: +41 – 44 – 206 42 30
                                        www.testex.ch
                                        contact@testex.ch

TMC - TEXTIL UND MODE CENTER            Talackerstr. 17
ZÜRICH                                  CH - 8152 Glattbrugg
Fashion Center                          Tel.: +41-43-211 59 20
                                        Fax: +41-43-211 59 29
                                        www.tmc.ch
                                        contact@tmc.ch

U n i t e d     K i n g d o m :

EIU -                                   15, Regent Street
ECONOMIST INTELLIGENCE UNIT             GB - London SW1Y 4LR
                                        Tel.: +44 – 20 – 7830 1007
                                        Fax: +44 – 20 – 7830 1023
                                        www.eiu.com
                                        london@eiu.com

TAYLOR NELSON SOFRES plc.               Westgate
Market Research                         GB - London W5 1UA
                                        Tel.: +44-20-8967 0007
                                        Fax: +44-20-8967 4060
                                        www.tnsofres.com
                                        research@tnsofres.com

TEXTILE OUTLOOK INTERNATIONAL           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
                                         - Recommendations concerning
1.1 QUALITY AND STANDARDS
                                           the characteristics of fabrics,
IN SWITZERLAND AND THE EU
                                           which could be only recovered
                                           with the help of appropriate
The application of the European            equipment. Description of each
Norms (EN) in the 25 EU and the 3          characteristic includes definiti
EFTA countries (including Switzer-         on, testing method, minimum
land) is the basis of a liberal intra-     quality standards and (if neces
European trade and is valid in all         sary) possible allowable toleran
28 countries (more details:                ces compared with measure
www.cenorm.be).                            ments of the sample.

However, there are no general EU         Testing methods for clothing are
or Swiss standards for garments.         usually based on the ISO stan-
The rule is that importers in EU         dards for Switzerland (www.iso.
countries as well as in Switzerland      ch) or they can also suit the requi-
generally fulfil the minimum quality     rements of European norms (EN)
requirements regarding material          or national standards of the EU
and making. The technical com-           member states (such as DIN, SIS,
mittee of the European Clothing          BS). ISO is made up of its mem-
Association (ECLA) has published         bers. A member body of ISO is the
an example of recommendations            national body ‘most representati-
for manufacturers of knitted and         ve of standardization in its coun-
woven clothing. Within these             try’. Only one such body for each
recommendations ECLA, where              country is accepted for member-
Switzerland as well as the EU 15         ship of ISO. Member bodies are
countries hold a membership              entitled to participate and exerci-
(please compare www.iafnet.              se full voting rights on any techni-
org/html/iafwebsites.htm) makes          cal committee and policy commit-
a difference between:                    tee of ISO. The member body of
                                         ISO in Switzerland is Swiss
- Recommendations concerning             Association for Standardization
  the characteristics of product         (SNV) (more details can be taken
  which could be detected by an          from www.snv.ch). ISO norms are
  experienced person with-               also applied in Switzerland.
  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



                                                                                3
The major standards for quality        changed over to international
and grading standards in the EU        standards over the last twenty
and Switzerland are the following:     years. In order to counteract pos-
                                       sible discrimination against the
- for care labelling - ISO 3758        Swiss clothing industry because
                                       of the country’s non-membership
- for dimensional stability - DIN      in the EU, Switzerland has accep-
  53894 (steaming), DIN 54311          ted various EU-norms and refe-
  (fusing), ISO 3759/5077/6330         rences within the framework of
  (washing/tumbling), ISO 3175         national legislation.
  (dry cleaning)

- for physical properties - ISO
  5081 (tensile strength strip), ISO
  5082 (tensile strength grab),
  ISO 9290 (tear strength), BS
  3320 (seam slippage), EN
  22313 (abrasion resistance),
  ISO 9876 (crease tendency/
  recovery), BS 5811 (pilling 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-               Since the last market survey
KING AND LABELLING                     dated 2002, it has become
                                       increasingly difficult and expensive
Packaging                              to dispose of waste in Europe. In
                                       principle, the importer is held
Care must be given to the packa-       responsible for disposal of the
ging of products if one intends to     packaging waste for all goods
export to EU countries and             from outside the EU. It is therefore
Switzerland. Packaging must be         crucial, when planning exports to
travel-steady, it must protect the     the EU, to take the packaging of
product against environmental          your products (both sales packa-
influences, theft, rough handling      ging and transport packaging) into
etc.                                   consideration. To fulfil the require-
                                       ments of the target market, clear
As well as these basic demands,        communication with the importer
some importers may have speci-         about packaging is highly recom-
fic demands concerning packa-          mended.
ging, such as printing information     Most of the previous systems,
about the order on the boxes           such as the German packaging
(order number, quantity, product       waste programme the ‘Green
number, product description etc.).     Dot’ - where trade and industry in
Some materials like PVC are less       Germany and other EU countries
popular or even forbidden in some      were obliged to take back packa-
countries because of environ-          ging materials - have lost impor-
mental issues, and exporters           tance over the last 2-3 years,
should discuss this matter with        mainly because of misuse of the
potential clients and include the      green dot which appeared almost
cost of the special price in their     on every imported packaging wit-
wholesale price, if required.          hout an obligation to take back
The EU has issued a Directive on       the packaging.
packaging and packaging waste
(94/62/EC) that is applicable, to a    New legislation about wood pak-
large extent, to Switzerland as        kaging has recently been introdu-
well. Among other measures, the        ced. More detailed information
Directive sets maximum levels of       about packaging techniques and
concentrations of heavy metals in      the use of packaging materials
packaging and describes require-       can be found on the website of
ments specific to manufacturing        ITC (http://www.intracen.org).
and composition of packaging.
The Directive needs to be trans-
posed to the national legislation of
the member states.



                                                                               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 men’s 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: Women’s 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:
Women’s 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           Children’s Wear
Europe use the same figures for
the sizes, but a lady’s 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 women’s 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 Switzerland, the row of symbols
                                        may not be reproduced, issued or
In EU and Switzerland, sizes for        used without a special agreement
men’s shirts are based on neck          with SARTEX (Swiss Asso-
circumference in cm or inches           ciation for Textile Marking –
and vary respectively from 37-48        www.sartex.ch). The contracting
cm and from 15-19 in, and can be        companies undertake to make
extended with other measure-            correct use of these symbols at all
ments, of which arm length is the       times within the meaning of the
most important. The sizes XS-XXL        relevant guidelines.
are also used for leisure or sport
shirts, also in combination with the    These guidelines apply to all texti-
usual shirt size. For women’s and       les and textile products sold in
children’s wear, the standard           Switzerland and require a declara-
outerwear sizes are used.               tion as to the kind and content of
                                        the raw materials used. Pursuant
Labelling                               to the agreement with the user,
                                        legal action will be taken in the
The International Association for       event of any breach of this under-
Textile Care Labelling (GINETEX         taking. The textile labelling regula-
France - Groupement Internatio-         tions set by the individual member
nal d’Etiquetage pour l’Entretien       states of the European Union (EU
des Textiles, www.ginetex.org),         Standards) comply with the Swiss
which represents the textile pro-       guidelines and requirements. The
ducing and retailing industries in 16   right to use these trademarks has
European countries (most of the         been given to the national mem-
EU      countries   as     well    as   ber bodies of GINETEX. SARTEX is
Switzerland and Tunisia as non-EU       independent in regard to its struc-
countries included), has devised        ture and operating methods, but
an internationally applicable care      should adhere in all respects to
labelling system for textiles based     the use of internationally agreed
on symbols of pictograms. Only          symbols (above) as well as to
those care labels issued by the         technical regulations and decisi-
GINETEX may be used by the              ons taken at the GINETEX level.
retailers/manufacturers in the          Commercial companies (whole-
GINETEX member countries.               salers, importers etc.) are requi-
                                        red to include the undertaking to
The care identification symbols         ensure correct care identification
are protected under trademark           and appropriate labelling in com-
law. The marks are owned by the         pliance with the Swiss guidelines
aforementioned GINETEX Group.           in their orders for deliveries.
The care identification is also
covered by international stan-
dards (ISO 3758 / EN 23 758).

                                                                                9
There are two kinds of require-        - should be clearly positioned
ments in the EU and Switzerland:         where it is easily noted and
                                         without interference from a
Mandatory requirements contain           seam,
requirements like size, fibre con-
tent and care-labelling/washing        - should not show through the
instructions. With regard to fibre       article and spoil its appearance.
content: the indication 100% or
pure can be used within a margin       Other forms of information may
of 2 percent of the weight of the      be combined on the same label
final product. Other fibres with a     but clearly separated from each
weight of less than 10 percent of      other. Garments consisting of
the weight of the final products       easily separable parts should be
can be mentioned; in that case, all    labelled on each of the parts.
other fibres must be mentioned.        There should only be one single
An international care-labelling pro-   care label on an article even if the
gram is in use in many countries,      different components have to
also outside the EU. The program       carry further information (for
uses five basic symbols, which         example fibre content).
relate to the properties of colour-
fastness, dimensional stability,
effect of retained chlorine (ble-      The object of labelling is to inform
ach), maximum safe ironing tem-        the consumer and the commerci-
peratures and certain other pro-       al textile care industries when
perties.                               buying, using or cleaning the arti-
                                       cles. Therefore labels should be
Voluntary requirements, such as        easily detectable. The label should
origin marking, brand or product       be affixed permanently and posi-
name and other consumer infor-         tioned always at the same places
mation.                                depending on the type of the arti-
                                       cle. Because of differences in
The care label                         materials, production, demands of
                                       fashion etc. these requests can
- should be durably fixed to the       only partially be fulfilled and by way
  textile article,                     of exception an alternative place
                                       of positioning is given. To achieve
- should be legible during the         a maximum of conformity, recom-
  whole lifetime of the article. In    mended positions are laid down.
  particular it should withstand
  the washing and dry cleaning
  process it recommends,




                                                                                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                          used (mild process with strict limi-
                                      tations on the addition of water
Letters (A, P and F) in the circle    and/or mechanical action and/or
refer to the solvents which may be    temperature during cleaning
used by drycleaners.                  and/or drying). In this case, self-
Underlining the circle indicates      service cleaning is not allowed.
that a specific process should be


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:


30°C for normal treatment                                          30C



30°C 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 60º C., normal mechanical agitation. All other garments should be
  washable at 40º 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                                ter of Oeko-Tex International is
                                         located in Zürich/Switzerland
In the late nineties and at the          (www.oeko-tex.com).
beginning of the millennium, vario-
us competing ecolabels were              Obtaining the Öko-Tex label invol-
popular all over Europe. In the          ves testing for harmful substances
beginning, they were mainly used         according to the criteria which are
for under- and babywear. Many            laid down for each product class.
labels have now disappeared and          Harmful substances may have
the approach to the whole ‘ecolo-        some effect on people and
gical’ issue about textiles and clot-    human health. Importers from
hing is broader and considers the        outside the EU have become
whole supply-chain from the pro-         aware of the significance of this
duction process up to the delivery       label. The number of the impor-
into the shop. Social and environ-       ters who ask for Öko-Tex is gro-
mental aspects play an important         wing continuously.
role (cf. chapter on ‘Trade Related
Environmental and Social Issues’).       The standard specifies four article
                                         classes:
Currently, the German/Swiss Öko-
tex Standard 100 is widely accep-        - Articles for babies
ted in the EU countries and              - Articles in direct contact with
Switzerland as well.                       skin
                                         - Articles without direct skin
Öko-Tex 100                                contact
                                         - Decoration material
A recent statistical evaluation of
the certificates issued throughout       The standard consists of the follo-
the world highlighted the impor-         wing fundamental guidelines:
tance of the Oeko-Tex Standard
100 as the world’s leading test          - Requirements apply to the end
label of its type at this time. Today,     product only
this label is the most widely used,      - Exclusion of certain dyes which
and among European consumers               can cause cancer or allergic
best-known, ecolabel in relation to        reactions
textiles and clothing. It was deve-      - No flame retardant or biocide
loped in 1993 by the ‘International        treatment allowed
Association for Research and             - Limitation of harmful substan-
Testing in the field of Textile            ces in the end product (pestici-
Ecology’ and changed in 1997.              des, formaldehyde, heavy
Companies in the EU, Switzerland           metals)
and throughout the world have            - Differentiated limitations accor-
applied for more than 6000 certifi-        ding to textile types and target
cates (2004 data). The headquar-           groups

                                                                               16
The Oeko-Tex 100 Standard com-           Oeko-Tex Standard 100 plus
prehensively     addresses     the
Human Ecology component of               The first edition of the Öko-Tex
textile products. It evaluates and       Standard 1000 was issued in
screens for any harmful substan-         1995. It outlined the requirements
ces present within processed tex-        for environmentally friendly pro-
tiles intended to come into con-         duction. Manufacturing sites fulfil-
tact with consumers.                     ling a strict set of criteria, addres-
The advantage for clothing expor-        sing areas such as banned chemi-
ters of applying for Öko-Tex             cals and harmful manufacturing
Standard 100 is that this system is      processes were licensed to carry
built up in a modular way and            the label ‘Umweltfreundliche
enables reliable and comprehen-          Betriebsstätte’ (lit. Environmen-
sive assessment within a realistic       tally Friendly Manufacturing Site)
time frame. This is advantageous         which they could use as proof of
when considering the nature of           an environmental management
the clothing and textile industry        system. First organizations were
with its fashion-conscious, dyna-        subsequently audited in a pilot
mic pace.                                project.

The Oeko-Tex scheme is available         The ‘Oeko-Tex Standard 100 plus’
to manufacturers world-wide.             label was awarded for the first
Although it is far more cost effecti-    time in 1999. This related to a finis-
ve to test at each stage of the          hed product which fulfilled the
production process, it is still possi-   requirements of the Oeko-Tex
ble to certify the finished product      Standard 100 and was also produ-
itself at any time. Another advan-       ced only on sites carrying the
tage of the system is, that if a pro-    Oeko-Tex Standard 1000 licence.
duct is checked and certified at a       Generally speaking, it can be
particular stage of the production       recommended         that    clothing
process chain, it can then be used       exporters from developing and
in the next stage without having to      emerging countries should con-
be re-tested.                            centrate on this ÖkoTex 100 label.
                                         The Öko-Tex label can be used to
The designation is restricted to         distinguish a textile product from
one year, after which the product        competitors.
will need to undergo new testing.
The Öko-Tex Standard 100 as well
as the Ökotex 100 plus label have
achieved a worldwide acceptan-
ce with an increased number of
registered companies also in Asia
and South America.


                                                                                  17
1.3 TRADE RELATED ENVI-                 Environmental Requirements
RONMENTAL AND SOCIAL
ISSUES                                  Environmental aspects play an
                                        important role for outerwear
Apart from legal requirements,          manufacturers         interested     in
nowadays producers are being            exporting to the European market
confronted more and more with           given that environmental aspects
additional requirements. EU and         are a major issue in the EU and
Swiss buyers want more informa-         Switzerland. Besides governmen-
tion from producers, for example        tal actions (legislative, regulations),
about the social conditions at their    a strong consumer movement is
production sites or environmen-         not to be underestimated, especi-
tally sound production. The             ally in the Northern and Western
German Karstadt/Quelle Group,           parts of the EU (Scandinavia,
for instance (one of the largest        Germany, Netherlands, United
European clothing retailers) stated     Kingdom) and in Switzerland.
in June 2005, that before signing       These aspects are not just a trend
any contract their buyers are           - these are lasting issues, which,
obliged to check the fulfilment of      together with other determinants
the social standards at the pro-        such as price and quality, have a
duction site. Karstdt in this respect   strongest impact on the positio-
works with the BSCI programme           ning of a supplier in the European
(more details under www.bsci-           market.
eu.org). Although the require-
ments in this field are not a part of   The capacity of a company to use
official legislation and have no        the environmental approach
legal basis, it is recommended to       towards its products such as eco-
take them into account in order to      labels (for products, see also
be competitive.                         Ecolabels), environmental ma-
                                        nagement standards (for the
If a manufacturer wants to indica-      whole organisation) and producti-
te to external parties that he is       on processes are ‘green’ marke-
manufacturing in an environmen-         ting tools, which have been crea-
tally sound way, he can comply          ted by governments and private
with standards which have been          parties.
developed for this purpose. The
major standards and current mar-        Being a part of the business chain,
ket requirements are described in       companies in developing coun-
this chapter.                           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        ous improvement of the environ-
                                       mental performance of the com-
An ‘Environmental Management           pany. ISO 14001 specifies only
System’ (EMS) is important for         general requirements for an envi-
environmental protection and pol-      ronmental management system,
lution prevention in the production    but it contains no environmental
phases. It is a management tool        performance criteria.
which enables an overview of the
environmental impact of the com-       Product related requirements
pany and the possible way it could
be diminished. At the moment           The main characteristics of the
there are two general voluntary        production process are the vast
standards with which manufactu-        quantities of water required and
rers can comply: ISO 14001 and         the variety of chemicals used in
EMAS, both of them based on the        the processing stages, which
popular ISO 9000 series of quality     cause much waste. Typical envi-
management standards.                  ronmental problems associated
                                       with the production of textiles are
The EU’s Ecological Management         water pollution because of disch-
and Audit Scheme (EMAS) has            arge of untreated effluent. Liquid
been operating since 1995. It          wastes arising from washing con-
applies to companies with pro-         tain a substantial organic and sus-
duction facilities within the EU and   pended pollution load, such as
therefore is not relevant for expor-   fibres and grease. Effluents are
ters from developing countries.        generally hot, alkaline, strong
However, ISO 14001 is favoured         smelling and coloured by chemi-
by exporters to the EU and             cals used in dyeing processes.
Switzerland as well.                   Some of the chemicals dischar-
                                       ged are toxic and can lower the
The ISO 14001 Environmental            dissolved oxygen of receiving
management system was publis-          waters, threaten aquatic life and
hed in November 1996. It has a         damage general water quality
similar impact to the ISO 9000         downstream.
Quality Management Systems
series. The objective of ISO 14001     There are many ways to reduce
standard is to provide companies       the amount of water used and
with the necessary elements of an      emitted. Concerning dyes and
environmental       management         pigments, there are many alterna-
system, which can be integrated        tives available which are less pol-
into business policies to achieve      luting. Other technologies make it
environmental and economic             possible to use less dye and redu-
goals, such as compliance with         ce or eliminate spillage of dyes.
legislation and demands set by
the company as well as continu-

                                                                             19
Quality related requirements            Many azo dyes above the con-
                                        centration of 30 ppm are prohibi-
A quality related requirement are       ted in the EU and also in
the so called Quality management        Switzerland. The ban on azo dyes
standards which refer to the            is applicable to all products that
management of a company. This           are in contact with skin for long
is in contrast to most of the other     periods of time. The manufacturer
standards, labels and markings          must also take into consideration
described, all of which relate to       the fact that the products, once
product or production processes.        they have entered the EU, can be
Quality management standards            ‘re-exported’ or transferred easily
are not compulsory for market           to    Switzerland     and    other
entry into the EU; however, they        European countries. Therefore, it
can definitely contribute to the        is highly recommendable to follow
company’s image in the market.          the Azo regulations.
The most important quality
management system is ISO 9000,          The best way to avoid problems
inspired by the concept of Total        with banned azo dyes is to use
Quality Management. TQM is a            only dyes which are absolutely
philosophy based on customer            safe. Use dyestuff supplied by
satisfaction and continuous per-        reputable manufacturers, who
formance improvement. ISO esta-         give the Colour Index numbers,
blished a policy committee,             the generic names and material
DEVCO, specifically to address          data sheets. Ask for azo-safe cer-
the needs of developing coun-           tificates. Choose reputable certi-
tries. See http://www.iso.org           fied laboratories.

Azo dyes and other harmful              Other substances used in the tex-
substances                              tile and clothing industry that are
                                        banned (or allowed to a limited
Azo dyes are among the leading          extent) in some EU countries and
colouring agents in the textile         Switzerland are: pentachlorophe-
industry, especially in developing      nol (PCP), cadmium, formalde-
countries. Approximately 70% of         hyde and nickel. Polychlorobi-
all dyes used in the textile industry   pheniles (PCB) and terphenyles
are azo dyes. There are about           (PCT) have a total prohibition, as
2 000 different azo dyes, of which      do asbestos and certain flame
approximately 200-300 may fall          retardants.
under a ban. Dyes in the category
of direct, azoic/naphtol, disperse,
acid or basic dyes may split off
carcinogenic amines.



                                                                              20
Flame retardants                         and a better chance of establis-
                                         hing a long-term business relati-
Flame retardants are used in texti-      onship. Exporting companies in
les to reduce their flammability. Tri-   developing countries mostly are
(2,3,-dibromopropyl)-phosphate           requested to apply principles of
(TRIS) and tris-(aziridinyl)-phosphi-    corporate conduct compatible
neoxide (TEPA) are both carcino-         with the Code of Conduct of their
genic and mutagenic, which               partner company in the EU.
means that these substances
may alter genetic material.              These social requirements are
Polybromobiphenyles (PBB) are            gaining importance on European
highly persistent, carcinogenic          markets and are becoming a pre-
and reprotoxic. Moreover they            condition for international trade.
also have effects on the immune          The so-called social codes are
system and the nerve system.             often corporate codes.

In the light of the European direc-      In addition, the EU has added a
tive on ‘the restriction on the mar-     ‘social clause’ to the Generalized
keting and use of certain dange-         System of Preferences (GSP),
rous substances and preparati-           which allows for special import
ons’ (76/769/EEC), the EU has            tariff reductions for products that
prohibited the use of these flame        are produced in a humane way.
retardants: TEPA, TRIS and PBB           The garment industry and the
are prohibited in textile articles       trade associations in some EU
intended for skin contact. They          countries are developing a model
are also prohibited in Switzerland.      code of ethical conduct for the
                                         production of all items. A similar
Social Requirements                      system for Switzerland is not plan-
                                         ned as yet.
Encouraged by consumer organi-
zations, the consciousness of            Occasionally, consumers or citi-
ethical trading aspects has achie-       zens form pressure groups
ved growing emphasis in many             (sometimes even demonstrating
EU countries and in Switzerland.         on the streets) to force govern-
This has led to the development          ment to put an end to business
of codes of conduct by many              practices they find unethical or
importers. There is a growing con-       anti-social. Such ‘consumerist
cern among buyers of clothing            movements’ succeeded in setting
about the use of child labour in the     government rules; the SA 8000
factories of new suppliers.              (Social Accountability) is an exam-
Exporters who can guarantee that         ple of such. The fact that consu-
their products are made without          mers don’t accept certain practi-
child labour have a competitive          ces demands that suppliers adopt
advantage over other products            new processes or materials.

                                                                               21
Code of Conduct                        of association and the right to col-
                                       lective bargaining, discrimination,
A Code of Conduct was agreed in        disciplinary practices, wage levels,
September 1997 by European             working hours and compensation.
textiles union (ETUF-TCL) and          The requirements in the standard
EURATEX (employers’ organizati-        are based on recommendations
on). The agreement applies not         of the International Labour
only to the European enterprises       Organization (ILO) and on agree-
(mainly EU and Switzerland), but       ments and conventions of the
also to their subcontractors or        United Nations (Human Rights,
subsidiaries in developing coun-       Rights of the Child).
tries. One objective of their deve-
lopment is to demonstrate a com-       SA 8000 supports the demands
pany’s social responsibility.          of consumers for worldwide soci-
                                       al standards and is internationally
The core thought of the agree-         recognized. SA 8000 accreditati-
ment is following: companies are       on is valid for three years with sur-
responsible for their social role.     veillance and observation audits
Business ethics and integrity are      every six months. Those that
major determinants of the quality      meet the requirements have the
of a company. Companies are            right to display the SA 8000 certi-
also responsible for establishing      fication mark.
their own General Business
Principles or Codes of Conduct.        Socially acceptable production
These reflect the company’s posi-      has    gained     importance      in
tion towards business ethics,          Switzerland. Up to now, 20 audi-
labour conditions, environment.        tors have been trained for the SA
They should point out the contri-      8000 by the Swiss company
bution of the company to these         Amana SA, Aarau. Link Fair Trade
issues. The company also has to        Guarantee represents the label of
introduce mechanisms which             Amana SA and operates as a seal
measure the true effectiveness of      of approval for socially fair labour
the Code of Conduct.                   conditions and social engage-
                                       ment in low wages countries. The
Social Accountability (SA 8000)        organization is aimed at the pro-
                                       motion and implementation of SA
SA 8000 is an international stan-      8000. The advertising efforts of
dard for social accountability and     the organization aim to make
was founded in 1997. Its purpose       Swiss companies buy ‘Fair
is to ensure ethical sourcing of       Fashion’.
goods and services. It is a volunta-
ry standard, which sets basic
standards for child labour, forced
labour, health and safety, freedom

                                                                               22
Clean Clothes Campaign                 1.4. PRESENT TRADE REGU-
                                       LATIONS AND OUTLOOK FOR
The European wide ‘Clean               2005
Clothes Campaign’ based in
Amsterdam, which is based on           European Union
the SA 8000 regulations, is also
politically   very    strong      in   All EU countries apply common
Switzerland. This organization         Customs tariffs to imports from
publishes regular newsletters          outside the Union. If there is no
regarding ‘social behaviour’ when      special trade agreement in force,
dealing with the supplier countries    the general import tariff applies.
of leading Swiss clothing retailers    Some kind of preferential trade
and manufacturers (please com-         agreement in the field of tariffs,
pare www.cleanclothes.ch and           reductions of EU duty levels may
www.evb.ch).                           apply to many developing coun-
                                       tries, according to the commit-
More information can also be           ments in the Uruguay Round, until
requested from the Council on          2005.
Economic Priorities Accreditation
Agency (www.cepaa.org), with           Most of the developing countries
headquarters in New York/USA.          have been granted special trade
                                       preferences; these countries usu-
Sources of Information                 ally benefit from zero duties
                                       through preferential treatment
For detailed information about         under the Renewed Generalised
environmental aspects relevant to      System of Preferences (RGSP) or
trade at EU level, please refer to     under the 4th Lomé Convention
the websites of SIPPO and CBI          for the African, Carribean and
(www.sippo.ch and www.cbi.nl,          Pacific (ACP) countries.
especially the CBI Access Guide.
                                       RGSP (Renewed Generalised
For Switzerland, whose ecological      System of Preferences)
and environmental regulations are
similar to those of the EU, more       This agreement allows products
specific information can be found      originating in the countries con-
in the CBI/SIPPO Eco-Trade             cerned to be imported at prefe-
Manual. Other sources of informa-      rential tariffs or, for the least deve-
tion are the WTO web site              loped countries even duty-free. A
(http://www.wto.org),         the      ‘Certificate of Origin Form A’ has
European              Commission       to be filled in by the exporter and
(http://europa.eu.int) and OETH        issued by the competent authori-
(http://www.oeth.com).                 ties. Tariff contingents and ceilings
                                       do not exist any more.


                                                                                 23
As from 1 January 2006, the              Preferential duty regimes under
general arrangement and the              Free Trade Agreements (FTAs)
‘EBA’     arrangement        under
Regulation No. 980/2005 will             The EU also has many free trade
enter into force and will continue       agreements with partners in the
to apply together with the ‘GSP          region (the central European
Plus’ arrangement. The two spe-          countries, the Mediterranean
cial incentive arrangements for          countries) and beyond (Mexico,
the protection of labour rights and      Chile). FTAs now increasingly
of    the   environment      under       involve provisions affecting non-
Regulation No 2501/2001 are              tariff measures and regulatory
repealed from 1.1.2006.                  issues such as provisions on trade
                                         facilitation and rule-making in
Lomé Convention (for ACP coun-           areas such as investment, intel-
tries)                                   lectual property, government pro-
                                         curement, technical standards
The partnership agreement bet-           and SPS issues.
ween the 25 European Union (EU)
member states and the African,           The   following   Free     Trade
Caribbean and Pacific (ACP)              Agreements are available online:
states marks five generations of
agreements between ACP-EC                - FTA under the Euro-
sovereign states. It is the world’s        Mediterranean Partnership
largest financial and political fra-
mework for North-South coope-            - FTA with Mexico
ration. Its main characteristics are:
the partnership principle, the con-      - FTA with Chile
tractual nature of the relationship,
and the combination of aid, trade        - FTA with South Africa
and political aspects, together
with its long-term perspective (5
years for Lomé I, II, and III, and ten   Non-tariff barriers
for Lomé IV). Products originating
in the ACP countries can be              Examples of non-tariff barriers are
imported without duties and quo-         anti-dumping measures, sanitary
tas, when a ‘Movement Certificate        sanctions, quota restrictions, envi-
EUR.1’ is filled in by the exporter      ronmental clauses and intellectual
and issued by the competent aut-         property rights. The most impor-
horities, such as the local              tant form of non-tariff barriers
Chamber of Commerce. Tariff              regarding clothing is quota restric-
contingents and tariff ceilings no       tions. Since 1995, the Multi Fibre
longer exist.                            Arrangement (MFA) has been
                                         taken     over   by    the     WTO
                                         Agreement on Textiles and
                                         Clothing (ATC).
                                                                                24
The ATC calls for import restricti-    - circumvent trade policy mea-
ons on textile and clothing that         sures, such as anti-dumping
have already been lifted in four         measures;
distinct phases spreading over a       - benefit illegally from preferential
period of 10 years: 16% of imports       treatment such as that under
by volume in 1995, 17% in 1998,          RGSP;
18% in 2002 and the rest in 2005.      - cheat consumers (claiming EU
                                         origin for products produced
Many clothing items are already          elsewhere);
quota-free, but WTO rules allow        - combat counterfeiting and
importer countries to impose anti-       piracy (copying exclusive
dumping duties if there is evi-          designs and models without
dence that markets are being dis-        permission of the owner).
rupted by selling below costs.
                                       Financial instruments in the EU
Anti-dumping measures
                                       The awarding of tariff preferences
Anti-dumping implies that, under       or the levying of ‘environmental
WTO regulations, exporters are         taxes’ on products is one of the
expected to sell their products at     major instruments of the EU (besi-
fair market value, at a price above    des legislation) to promote envi-
cost and without imposing higher       ronmentally sound products.
domestic prices for the same pro-      Such preferential systems are the
duct that would in effect subsidize    common subsidy and support
their lower export prices. In the      schemes, Green GSP, which
event of predatory pricing by a        works on the assumption that
particular company or country, the     extra preferences can be awar-
importing country is allowed to        ded on top of the preferences for
impose a duty surcharge on the         producers who show their com-
imported product, to bring the         mitment to the environment and
final price up to fair market value.   who search for cleaner producti-
                                       on techniques to reduce the envi-
Anti-fraud investigations and          ronmental damage from their pro-
actions                                duction processes and final pro-
                                       ducts. The EU principle ‘the pollu-
Besides anti-dumping measures,         ter pays’ becomes obvious as
the EU is stepping up anti-fraud       responsibilities for pollution pre-
investigations and actions against     vention and clean-up are increa-
fraud designed to:                     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                              Switzerland has entered bilateral
                                         trade agreements with numerous
General Foreign Trade Conditions         other countries to prevent double
- World Trade Organization (WTO)         taxation and to protect and pro-
and Free Trade Agreements                mote mutual investment.

On July 1st, 1995 Switzerland joi-       THE SWISS GENERALISED
ned the WTO (formerly GATT) and          SYSTEM OF PREFERENCES
since then has applied the ‘most
favoured clause’ regarding trade         General Principles
to all WTO member countries. This
also applies to dealings with regi-      The preferential treatment given
ons     and    countries    where        to exports of developing countries
Switzerland has signed bilateral or      is designed to help increase and
multilateral agreements on trade.        diversify their export. The Swiss
Furthermore, by joining the WTO,         Generalised System of Prefe-
Switzerland had to change most           rences (GSP) was introduced on
of the non-tariff trade barriers to      March 1st, 1972 in compliance
customs duties.                          with Switzerland’s intention to
                                         implement Resolution 21 (II) adop-
Moreover, Switzerland is a mem-          ted by the United Nations
ber of the European Free Trade           Conference on Trade And
Association (EFTA). The dismant-         Development (UNCTAD) in 1968.
ling of tariffs by the EFTA, in paral-
lel to the European Economic             Beneficiaries of preferences
Community (EEC), has eliminated
to a large degree the customs            In principle, all developing coun-
duties between the European              tries and economies in transition
Union (EU), the EFTA countries           are eligible for preferences under
and Switzerland, at least as             the Swiss scheme, with the
regards industrial products (inclu-      exception of countries or territo-
ding clothing).                          ries that have reached a high level
                                         of development. The exclusion is
Within the EFTA framework,               based on objective criteria. GSP-
Switzerland has also made free           benefits will not be granted to
trade agreements with Bulgaria,          countries which are members of
Croatia, the Czech Republic,             OECD or have a free trade agree-
Estonia, Hungary, Israel, Jordan,        ment with Switzerland. Also exclu-
Latvia, Lithuania, Macedonia,            ded are countries which the
Mexico, Morocco, PLO, Poland,            Development Assistance Com-
Romania,      Slovak     Republic,       mittee (DAC) of the OECD has
Slovenia and Turkey. Further, ‘pan-      classified as a most advanced
European cumulation’ has been in         developing country or territory
effect since July 1st 1997.              under Part II of its list of develop-
                                         ment aid recipients.
                                                                                 26
Scope of preferences                  CUSTOM TARIFF

Switzerland grants preferential       Customs duties based on weight
reductions amounting to 50% of
the normal rate on textiles and       Swiss customs duties are based
clothing. The least developed         on the ‘Harmonized System of
countries benefit from exemption      Classification’ which is applied
for clothing and textiles. Complete   worldwide. Unlike most countries
up-to-date information on custom      that have a taxation system based
tariffs may be obtained from the      on value (customs duties ad valo-
Federal Customs Administration        rem), the Swiss system is still
OZD.                                  based on weight. It is the gross
                                      weight that counts, i.e. the weight
Rules of Origin                       of the goods together with that of
                                      any packaging. Only in exceptio-
The Swiss Scheme includes rules       nal cases do the value of the
of origin which the goods must        goods or other criteria such as the
comply with in order to qualify for   number of items, serve as the
GSP-treatment. To satisfy the         basis for taxation.
rules of origin, the goods have to
be either wholly produced in the      Switzerland imposes very modest
beneficiary country or they must      customs duties, amounting on
have undergone working or pro-        average to less than 2% of the
cessing in a beneficiary country to   value of the industrial goods
specific processing criteria laid     (including clothing) concerned.
down in the regulations.
                                      Customs clearance
The prerequisites for the origin of
import textiles and clothing          The basic documentation requi-
applied in the Swiss Generalised      red includes the customs declara-
System of Preferences have been       tion, which must be accompanied
harmonised with EU and Norway.        by the invoice with mention of the
The rules related to the origin of    weight and an attestation from the
manufactured goods were adap-         exporter as to the origin of the
ted to conform with the Pan-          goods. A certificate of origin is
European cumulation system of         necessary if preferential customs
October 1st, 1998. Therefore, tex-    treatment is wished or if the mer-
tiles and clothing containing raw     chandise is to be re-exported.
materials from EU countries and
Norway may also be granted pre-
ference.




                                                                            27
- The documents which must               EU and Swiss apparel imports
  accompany goods travelling by          showed a constant increase in
  rail are an international freight      recent years. In their outsourcing
  waybill and two international          strategies, EU and Swiss manu-
  customs declarations.                  facturers prefer Eastern European
                                         countries even over some Asian
- Goods travelling by post requi-        countries with even lower wage
  re an international dispatch           rates (such as Vietnam or China)
  note and a customs declarati-          due to their geographical proximi-
  on.                                    ty and their higher quality stan-
                                         dards. Thus, EU and Swiss com-
- The accompanying documents             panies remain able to respond
  should mention whether or not          quickly to changing market
  the consignment is to be clea-         demands.
  red through customs at the
  border or at a particular cus-         On the other side, non-EU clot-
  toms office in the interior.           hing suppliers increasingly face
                                         the fact that the reduction of the
Value added tax (VAT)                    number of suppliers on the retai-
                                         lers side continues. The German
                                         based Institute for Management
At 7.6%, Switzerland has the             and Consulting in Mannheim
lowest VAT-rate in Europe. VAT           stated in June 2005 that recently
that has been pre-paid may be            a 13.5% overall reduction of sup-
recovered in certain cases.              pliers has been reached. The
                                         reduction of the number of sup-
1.5 IMPLICATIONS AFTER                   pliers is a part of the market-
THE ELIMINATION OF THE                   driven optimisation of the supply-
TEXTILES QUOTA                           chain, where the chains reduce
                                         most (25% in 2004/2005).
The main challenges facing the
European Union and Swiss textiles        The commercial relationships of
and clothing sector today are glo-       the     European      Union     and
balisation, modernisation and a          Switzerland in textiles and clothing
murderous competition. Market            are mainly governed by the WTO
access and fair trade have a hig-        Agreement on Textiles and
her priority for the textiles and        Clothing (ATC), which provides for
clothing sector than 5 years back.       the progressive application of the
Opening new markets, negotiati-          entire range of GATT rules to the
ons of bilateral agreements are          sector, including the gradual aboli-
aimed at ensuring that industry          tion of all remaining quotas by the
has time to adjust to full liberalisa-   1st of January 2005 (not applica-
tion.                                    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.

  - China’s 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     was to alleviate pressure on these
1 January 2005                            more vulnerable producers.

In general, in the first half of 2005,    Market disruption in a small number
China increased its exports to the        of sectors
EU by 45% in value and by 40% in
volume. For products liberalised in       Serious market disruption has
2005 there has been an increase           been limited to a small number of
in China’s market share by 145% in        product sectors which have
volume and 95% in value. This             experienced both double digit
suggests significant falls in unit pri-   absolute growth in exports, a rise
ces - see below. In these products        in Chinese exports, and steep falls
China, the US and India are the           in unit prices sufficient to force
only significant providers to have        restructuring.
increased their exports in 2005.
India’s increase in exports by value      All ten categories covered in the
is 15%; the US’s, 10%.                    June 10 Agreement have experi-
                                          enced very large overall rises in
This has been at the expense of           Chinese imports - as high as over
other suppliers to the EU. All other      500% in some cases. Eight of the
suppliers have suffered export dis-       ten sectors covered in the June 10
placement in products liberalised         Textiles Agreement have seen
in 2005. Pakistan, Indonesia,             double digit absolute growth in
Thailand, South Korea, the                imports, alongside huge growth in
Philippines, Taiwan, Hong Kong            exports from China. There has
and Macao have all seen exports           been an absolute rise in imports of
fall (by between 10% in the case of       T-shirts (24%), pullovers (17%),
Pakistan and 60% for Korea) in            men’s trousers (23.6%), blouses
value and volume. It is noteworthy        (13%), bed linen (17%), dresses
that the most significant displace-       (8%), bras (12.5%), table and kit-
ment by China has been exports            chen linen (14.7%) and flax yarn
previously originating from Hong          (59%). All the ten safeguarded
Kong, Macao and Taiwan.                   sectors have shown absolute
                                          growth. However, there has been
Textiles exports from ACP coun-           a deceleration of the growth of
tries for the first nine months of        imports from China in the ten
2005 fell by 20%. Mauritius has           safeguarded products, which
seen exports to the EU fall by            have all experienced lower rates
about 20% in value and volume.            of growth in September as com-
Morocco has seen a fall in exports        pared with the previous period.
of around 11% in value and volume.        Such deceleration will become
Bangladesh has largely sustained          more apparent in the coming few
its market share in volume but with       months due to the fact that in
a fall in value, suggesting price-        seven of the products covered by
cutting and rationalisation. One          the MoU, the ceilings for imports
purpose of the June Agreement             have been reached.
                                                                                30
There have been drops in unit             It covers the categories of serious
value in Chinese exports in all           concern, including most of the
except five of the 35 products            categories identified by the
liberalised in 2005. These include        European Textile Association
drops in unit price of between 18%        Euratex and the two categories
and 60% for all Chinese exports           for which the EU had already laun-
covered by the June 10 textiles           ched formal WTO consultations
agreement, with the exception of          with the Chinese: T-shirts and flax
only one product, flax yarn, where        yarn. The agreement limits the
the unit price drop was 5.5%.             rate of imports while allowing fair
                                          and reasonable growth for
Although EU producers have suf-           Chinese exports. By finding a wide
fered from market disruption in           and balanced agreement, the EU
the categories affected as a result       and China ensure a period of
of the fall in unit prices and greater    adjustment for textile industries in
Chinese competition in export             the EU and developing countries,
markets, there has been only a            provide greater predictability for
slight increase of textile imports        importers and retailers, and pre-
into the EU in the first nine months      serve the prize of market liberali-
of 2005 (3.7% in value and 4.9% in        sation for China.
volume), and also a modest
increase in total imports in the          The agreement limits growth in
products liberalised in 2005 (4.8%        imports in the 10 categories to
in value and 10.4% in volume).            between 8% and 12.5% per year
                                          for 2005, 2006 and 2007.
Obviously, the first effect of the eli-   Quantitative levels apply from 11
mination was booming imports              June 2005, however, at the time
from China against much lower             of the agreement, quotas for jer-
prices in the first months of 2005        seys, jumpers etc. were already
and objections from South and             filled. More information can be
East European clothing producing          found on http://sigl.cec.eu.int or
countries. In June 2005, the EU           http://export-help.cec.eu.int/.
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, men’s trousers,
blouses, T-shirts, dresses, bras,
flax yarn, cotton fabrics, bed linen,
table and kitchen linen.



                                                                                 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 Köln / 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

				
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