Transcript Diapositiva 1 - Colombia Trade

EUROPEAN APPAREL MARKET - SUMMARY
Importadores y Distribuidores
Lex van Boeckel – Searce
March 2013
THE EU APPAREL MARKET
CONTENTS
Market size
Market differences
Fast fashion
Apparel sub-sectors
Knitted and woven clothing
Price levels
Trends and Future
Opportunities
THE EU APPAREL MARKET SIZE
Apparel
– EU apparel market € 311 billion in
2010.
– Europe (27 countries) is the largest
apparel market in the world.
― 30% of the global market.
– Europe (EU 27) is followed by:
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North America (USA + Canada) - 29%,
Asia Pacific (including Japan) - 27%,
Latin America
- 6%
Other regions
- 7%.
THE EU MARKET DIFFERENCES
Apparel
– More differences than the USA.
– EU market is hightly fragmented
and competitive.
– Diversity in outfits in the North,
West, South and in the East being
related to climate and culture.
– Germany is the largest market.
– Italy, France, UK leaders in fashion
trends.
– Consumer spending on clothing:
• German consumers spent around
4.4% of their total expenditure.
• Danish consumers spent 5.6%
• Polish consumers spent 2.2%.
EU APPAREL MARKET DIFFERENCES
People in the West and the North
People in the West and North are relatively more detached.
― Women are more emancipated by wearing what they want.
(mood or situation)
― People in the North are more relaxed. The climate can be
extremely cold (-15 – 25) with many wet seasons (snow & rain)
 often they wear comfortable, practical (waterproof) clothing.
Dress codes at work are more casual. Formal - classics with a twist.
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Women dress up for special occasions or when going out.
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Consumers here are well aware of sustainability issues (transparency).
EU APPAREL MARKET DIFFERENCES
People in the South
People in the South are more extravagant,
leading a more ‘Bourgondian life’
― There is more a ‘flirt culture’
women are dressed more feminine
men are dressed in style.
― In Italy, France and Spain designs are
very diverse.
― There is more personalisation by designs,
brands and lively colours.
― Less ‘mainstream fashion followers’.
Brands here have a long tradition and a good reputation.
― But large difference between people in cities and on countryside.
EU APPAREL MARKET DIFFERENCES
People in the East
People in the East are rather practical in their choice of clothing.
― Younger people are attracted to western style clothing.
― New countries increasingly exposed to western clothing
chains, hypermarkets, factory outlets and second-hand
outlets (e.g. Zara).
― Big mainstream brands are very important = high quality.
Wages are still much lower
― Formal clothing styles are quite pronounced
sometimes regarded as ‘kitsch’
FAST FASHION IN THE EU
Apparel
Mainly for teens, tweenies (pre-teens 8 – 12 years), young people:
 ‘Standardized outfits’
o Fashionable
o Low in price
o Heavily promoted
 Product development is vital
o up to 6 collections per year – or more
o Many teens want to look like adults and stars.
Fast fashion retailers: Inditex, Vivarte, Mango, H&M,
Bestseller, Esprit, Next, Arcadia, Benetton, C&A, etc...
 28,000 (fast) fashion chain outlets in Europe
o incl. clothing discounters e.g. Primark, Takko, Kiabi, Gémo...
 Independent fashion stores offering medium-high range,
non-mainstream fashion – many have a difficult time now.
EU APPAREL MARKET SUB-SECTORS
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KNITTED AND WOVEN CLOTHING
Largest sub-sector covering trousers & shorts, shirts & blouses,
T-shirts, jerseys & cardigans, dresses & skirts, suits & ensembles,
jackets, blazers & coats.
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LEATHER CLOTHING
Jackets, coats, belts, gloves, trousers, leggings, shorts, skirts,
dresses and vests.
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BODYWEAR
Underwear, intimates incl. lingerie & shapewear, bras,
night & indoor wear and hosiery.
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BABYWEAR
Baby jackets, coats, romper suits, vests, pants, napkins, gloves,
mitts and mittens.
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SPORTS CLOTHING
Anoraks, tracksuits, swimwear, beachwear, special sportswear
(fitness, racket sports, teamsports, snowsports, golf), outdoor sports.
EU APPAREL MARKET SUB-SECTORS
Share by value
EU APPAREL MARKET SUB-SECTORS
Development 2006 - 2010
EU APPAREL MARKET SUB-SECTORS
Knitted and woven clothing
SUB-SECTOR - KNITTED AND WOVEN
EU Apparel – Product and Main suppliers
PRODUCTION
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Around € 74 billion of knitted & woven clothing was made in Europe (Italy, France, Germany, Spain,
Portugal, UK, Denmark, Poland, Romania and Bulgaria).
Most was exported to the EU countries and to the BRICS-countries.
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Due to more outsourcing (Asia), the number of medium-large sized textile
companies has decreased in the past two decades to 47,000 (2010).
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Main importing manufacturers/brands were: Adidas, Valentino Fashion
(Hugo Boss), Benetton, Triumph, PPR/Gucci (Puma, Gucci), Bestseller
Group (Vero Moda, Jack & Jones, Only), Only the Brave (Diesel),
Pentland (Speedo, Elesse), LVMH (Louis Vuitton, Fendi, DKNY)...
MAIN SUPPLIERS (2010)  EU imports € 95 billion (55% from DCs)
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China (import share was 25%), Turkey (8%), Bangladesh (6%), India (4%), Morocco (2%), Tunisia (2%), Vietnam,
Indonesia, Pakistan, Sri Lanka, Cambodia and Egypt...
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Fast growing: Albania, Moldova, Mexico, Philippines, Laos, Honduras, Colombia, Nepal, Mongolia and Armenia.
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Other EU countries, USA, Canada and Asian countries such as South Korea, Taiwan, Malaysia, Singapore are excluded here .
EU APPAREL MARKET
Price levels
There are in Western and Northern EU countries five different price-quality levels
Segment
Share
Description
Examples of prices
High price luxury
segment
4%
High quality, designer brands,
exclusive, trend setting
Dolce & Gabbana: Dresses €245-€1,750; Tops
€135-€995; Sweaters €160-€395
Upper middle price
segment
12%
Branded, high quality, good choice
of designs, well-made
Hugo Boss: Dresses €149-€599; Tops €29-€195;
Sweaters €99-€249
Middle price
segment
32%
Good to medium quality, trend
following, well-known high street
brands
Diesel: Dresses €35-€180; Tops €16-€110;
Sweaters €30-€85
Low to middle price
segment
41%
Produced in larger quantities, more Marks & Spencer: Dresses €15-€69; Tops €5-€40;
basic styles and fitting, medium
Sweaters €18-€185
quality, less fashionable
Low or very low
price segment
11%
Produced in large quantities, low
quality, unbranded
– The low-middle segments taking up high share of the EU apparel market.
– Lower segments are more represented in Eastern EU countries.
EU APPAREL MARKET
Main Trends
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Fast fashion is still rising - clothing retailers and hypermarkets
still expanding. Especially in the new EU member states.
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Pressurized margins for all actors in the value chain.
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Fickle consumer demand
Growing competition retailers
Oversupply of cheap imports
Increased cotton prices
Rising wages China.
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H&M and Zara are still doing well - compensation by new business
in Asia – and by diversification in e.g. home furnishings.
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However - Fast fashion is slowing down:
o Changing consumer behaviour & confidence
o Growing fatigue to keep up with trends.
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Move away from mainstream fashion.
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Boho style and Vintage still popular.
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Trading up to better quality clothing that is comfortable and lasts longer.
EU APPAREL MARKET
The Future
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Aging population (in 2020 – 50% will be OVER 50 years)  new variations .
Consumers are:
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more individualising
more professionalising
more influenced by media
more participatory – they want to interact more
with producers, retailers and ‘tailor-made’.
more keen on prices – value for money.
Private label quality has improved – Germany.
claiming more for social and ecological responsibility.
Ethical fashion market was € 10 billion in the USA and around
€ 1 billion in the EU (UK, Germany, Scandinavia, Switzerland,
Netherlands, France and Italy).
The Eastern EU markets are still expected to show growth
due to a growing middle class and expansion of chains.
EU APPAREL MARKET
Opportunities
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Around 100 countries supplied the EU with clothing and textiles in 2010.
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Countries in Latin America produced less than 5% of the EU’s apparel supplies
 Big challenge!
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Smart combinations of Fashion – Comfort and Convenient/Functionality.
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Fashion accessories (shawls, hats, gloves..) that go well with your e.g. dresses
collection.
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Clothing for the plus size segment.
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Diversity in the European consumers (immigrants) and the growing tourist market (China, Russia)
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Eco and Ethical fashion e.g. by using organic cotton, sustainable principles
within the whole value chain incl. fair trade practices. More variation in styles !
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On-line sales are still increasing due to busier lifestyles, new small
entrepreneurs in on-line selling.
Internet connections are still expanding.
EU APPAREL MARKET
Key Succes factors
 Good comprehension of your market potential and key target
markets and assessment of your risks and weaknesses (SWOT
analysis).
 As the EU market is quite diverse focus on one country - or a
cluster of countries.
 Clever product/market combinations based on a good knowledge of the market.
We will give an example on the German market for women’s control underwear.
 Don’t just compete on price as the Asian countries do.
 Strategy: Know how to (co-) design, assess future trends within your target market (seasonal,
short terms, long term), choose the right channel, sizing, pricing and promotion.
 Supply: If you supply to fast fashion retailers try to be geared up to make short runs, do more
preplanning and use collaborative software with your customer.