Presentation on theme: "EUROPEAN APPAREL MARKET - SUMMARY Importadores y Distribuidores"— Presentation transcript:
1EUROPEAN APPAREL MARKET - SUMMARY Importadores y Distribuidores Lex van Boeckel – SearceMarch 2013En la diapositiva inicial solo deben incluirse los elementos que se observan en esta guía:LOGO DE PROEXPORT Y SU DESCRIPTORTITULO DE LA PRESENTACIONNOMBRE DE QUIEN REALIZA LA PRESENTACION (solo el nombre sin cargo) O el área que realizó la presentación si esta se va a enviar comodocumento y no se va a presentar ante un auditorio.
2THE EU APPAREL MARKET CONTENTS Market size Market differences Fast fashionApparel sub-sectorsKnitted and woven clothingPrice levelsTrends and FutureOpportunities
3The eu apparel MARKET size EU apparel market € 311 billion in2010.Europe (27 countries) is the largestapparel market in the world.30% of the global market.Europe (EU 27) is followed by:North America (USA + Canada) - 29%,Asia Pacific (including Japan) %,Latin America %Other regions %.
4THE EU market DIFFERENCES ApparelMore 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 around4.4% of their total expenditure.Danish consumers spent 5.6%Polish consumers spent 2.2%.
5eu apparel MARKET DIFFERENCES People in the West and the NorthPeople 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 beextremely 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.Women dress up for special occasions or when going out.Consumers here are well aware of sustainability issues (transparency).
6eu apparel MARKET differEnces People in the SouthPeople in the South are more extravagant,leading a more ‘Bourgondian life’There is more a ‘flirt culture’women are dressed more femininemen are dressed in style.In Italy, France and Spain designs arevery 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.
7eu apparel MARKET differences People in the EastPeople 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 clothingchains, hypermarkets, factory outlets and second-handoutlets (e.g. Zara).Big mainstream brands are very important = high quality.Wages are still much lowerFormal clothing styles are quite pronouncedsometimes regarded as ‘kitsch’
8Fast fashion in THE eu Apparel Mainly for teens, tweenies (pre-teens 8 – 12 years), young people:‘Standardized outfits’FashionableLow in priceHeavily promotedProduct development is vitalup to 6 collections per year – or moreMany 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 Europeincl. clothing discounters e.g. Primark, Takko, Kiabi, Gémo...Independent fashion stores offering medium-high range,non-mainstream fashion – many have a difficult time now.
12Eu apparel MARKET sub-sectors Knitted and woven clothing
13Sub-sector - knitted and woven EU Apparel – Product and Main suppliersPRODUCTIONAround € 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.Due to more outsourcing (Asia), the number of medium-large sized textilecompanies has decreased in the past two decades to 47,000 (2010).Main importing manufacturers/brands were: Adidas, Valentino Fashion(Hugo Boss), Benetton, Triumph, PPR/Gucci (Puma, Gucci), BestsellerGroup (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)China (import share was 25%), Turkey (8%), Bangladesh (6%), India (4%), Morocco (2%), Tunisia (2%), Vietnam, Indonesia, Pakistan, Sri Lanka, Cambodia and Egypt...Fast growing: Albania, Moldova, Mexico, Philippines, Laos, Honduras, Colombia, Nepal, Mongolia and Armenia.Other EU countries, USA, Canada and Asian countries such as South Korea, Taiwan, Malaysia, Singapore are excluded here.
14EU Apparel MARKET Price levels There are in Western and Northern EU countries five different price-quality levelsThe low-middle segments taking up high share of the EU apparel market.Lower segments are more represented in Eastern EU countries.
15EU apparel market Main Trends Fast fashion is still rising - clothing retailers and hypermarketsstill expanding. Especially in the new EU member states.Pressurized margins for all actors in the value chain.- Fickle consumer demand- Growing competition retailers- Oversupply of cheap imports- Increased cotton prices- Rising wages China.H&M and Zara are still doing well - compensation by new businessin Asia – and by diversification in e.g. home furnishings.However - Fast fashion is slowing down:Changing consumer behaviour & confidenceGrowing fatigue to keep up with trends.Move away from mainstream fashion.Boho style and Vintage still popular.Trading up to better quality clothing that is comfortable and lasts longer.
16eu apparel MARKET The Future Aging population (in 2020 – 50% will be OVER 50 years) new variations . Consumers are:more individualisingmore professionalisingmore influenced by mediamore participatory – they want to interact morewith 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 growthdue to a growing middle class and expansion of chains.
17EU Apparel market Opportunities Around 100 countries supplied the EU with clothing and textiles in 2010.Countries in Latin America produced less than 5% of the EU’s apparel supplies Big challenge!Smart combinations of Fashion – Comfort and Convenient/Functionality.Fashion accessories (shawls, hats, gloves..) that go well with your e.g. dressescollection.Clothing for the plus size segment.Diversity in the European consumers (immigrants) and the growing tourist market (China, Russia)Eco and Ethical fashion e.g. by using organic cotton, sustainable principleswithin the whole value chain incl. fair trade practices. More variation in styles ! On-line sales are still increasing due to busier lifestyles, new smallentrepreneurs in on-line selling.Internet connections are still expanding.
18eu apparel MARKET Key Succes factors Good comprehension of your market potential and key targetmarkets and assessment of your risks and weaknesses (SWOTanalysis).As the EU market is quite diverse focus on one country - or acluster 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.