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Report summary...................................................................................................... 2
Introduction ............................................................................................................ 3
1 Demand ............................................................................................................ 4
2 Production...................................................................................................... 17
3 Trade channels for market entry .................................................................... 22
4 Trade: imports and exports ............................................................................ 27
5 Price developments ........................................................................................ 37
6 Market access requirements........................................................................... 39
7 Opportunity or threat? ................................................................................... 41
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THE HOUSEHOLD AND FURNISHING TEXTILES MARKET IN THE EU
Report summary
This CBI market survey profiles the household and furnishing market in the EU. Seven product
groups have been included: blankets and travelling rugs, bed linen, table linen, bathroom and
kitchen linen, curtains, bedspreads and other furnishing articles. The first four product groups
belong to the group household textiles. The last three belong to the group furnishing textiles.
The household and furnishing market in EU countries is discussed in the CBI market surveys
covering the market in individual countries.
Demand
Between 2004 and 2008, demand for household textiles in the EU annually decreased by an
average of 1.8% to reach € 4.9 billion. The top five countries – consisting of Germany, France,
the UK, Italy and Spain – accounted for 70% of total demand in the EU. Demand for furnishing
textiles in the EU increased by an average of 4.0% annually to € 4.0 billion in 2008. The UK,
Italy, Germany, Spain and France accounted for 70% of total demand in the EU. The product
groups bed linen and curtains were the most important product groups.
Consumers are expected to respond to the difficult economic climate by postponing purchases
and making do with existing household and furnishing textiles. At the same time, however,
people desire to remain at home during uncertain times and focus their attention on products
that transform their houses to places of comfort and safety.
Production
The value of EU production of household textiles annually decreased by an average of 8.2% in
the period 2004-2008 to reach an output of € 2.6 billion in 2008. The production of household
textiles in the EU is dominated by Italy, accounting for more than 20% of total production
output of household textiles in the EU. The restructuring policy of many manufacturing
companies in the EU has led to the relocation of the production of textiles, mainly to low cost
countries. As a result, most Central and Eastern European countries saw a large increase in
production output. The value of EU production of furnishing textiles increased in the same
period by 3.9% to reach an output of € 3.2 billion in 2008. The production of furnishing textiles
in the EU is dominated by the UK, accounting for almost 30% of total production output of
furnishing textiles in the EU.
Trade channels
The choice of market entry strategy depends on the resources available and the priority given
to the different European markets. However, wholesalers/importers and retailers are, in
general, the most interesting trade channel for exporters from developing countries.
Imports
Total EU imports of household and furnishing textiles grew by an annual average of 3.0% and
3.2% to € 4.9 billion and € 2 billion respectively between 2004 and 2008. Imports from
developing countries (DCs) increased even faster (an average of 5.3% and 4.7% respectively
per year). DCs have a strong foothold on the market and were responsible for 62% of
household textiles and 59% of furnishing textiles imports. Import prices seemed to decrease
during the period under review, while the average consumer prices for household textiles
remained stable.
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THE HOUSEHOLD AND FURNISHING TEXTILES MARKET IN THE EU
Introduction
This CBI market survey profiles the household and furnishing textiles market in the EU. The
emphasis of this survey lies in those products which are of importance to developing country
suppliers. The role of and opportunities for developing countries (DCs) are highlighted.
Products not covered by this survey are floor-covering textiles, filling materials used in duvets,
quilts, pillows, sleeping bags, mattresses.
For detailed information on the selected product groups please consult appendix A. More
information about the EU can be found in appendix B.
CBI market surveys covering the market in specific EU countries, specific product(group)s or
documents on market access requirements can be downloaded from the CBI website. For
information on how to make optimal use of CBI market surveys and other CBI market
information, please consult ‘From survey to success - export guidelines’. All information can be
downloaded from http://www.cbi.eu/marketinfo Go to ‘Search CBI database’ and select your
market sector and the EU.
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THE HOUSEHOLD AND FURNISHING TEXTILES MARKET IN THE EU
1 Demand
In this Chapter, data from the Prodcom (production) database and CN (imports and exports)
database as supplied by Eurostat is used to indicate apparent demand. Apparent demand is
the sum of production and imports minus exports. Variations in inventory have not been taken
into account. Two problems occur: sometimes negative demand is calculated, this is the case
when exports are higher than production and imports combined. In that case figures are
treated as not available. Furthermore, figures sometimes show a discrepancy between years,
e.g., a large fall or extraordinary growth. These figures are therefore not accurate enough to
be able to make a good decision and they should be used in conjunction with further market
research.
The market for household and furnishing textiles can be divided into a consumer segment and
a commercial/contract segment. Both markets have their own market structure and market
characteristics and differ considerably in size. As there is almost no information available on
the commercial/contract segment in the individual countries, we will only discuss the consumer
segment in this chapter. In the other chapters and in the CBI country surveys for household
and furnishing textiles, no attention will be paid to the commercial/contract segment.
World demand
In the coming years demand is expected to grow by only 2.0% per annum on average in both
Europe and the Americas. Asia, however, is expected to show a larger increase in demand
across each segment between 2008 and 2010, reaching a growth of 4.6% per annum.
However, the current uncertainty and volatility of the short-term economic climate makes it
extremely difficult to make any forecasts.
Table 1.1 shows that apparent demand for household textiles in the EU annually decreased by
an average of 1.8% to € 4.9 billion in 2008. The top five – consisting of Germany, France,
Italy, the UK and Spain – accounted for more than 70% of total demand in the EU. In some
Western European countries demand decreased (Germany, Italy, the UK, Spain and Austria) or
slightly increased (France, Belgium, Sweden, Ireland and Denmark). However, in most Eastern
European countries demand grew, with Romania, Latvia, Lithuania and Slovakia even showing
growths of 56%, 25%, 22% and 20% respectively.
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THE HOUSEHOLD AND FURNISHING TEXTILES MARKET IN THE EU
Table 1.2 shows that apparent demand for furnishing textiles in the EU annually increased by
an average of 4.0% to € 4.0 billion in 2008. The top five – consisting of the UK, Italy,
Germany, Spain and France - accounted for more than 70% of total demand in the EU. While
demand for furnishing textiles increased in most Western European countries, the UK and
Belgium saw declining demand. In particular, Eastern-European countries saw a huge growth
in demand for furnishing textiles, showing a growth percentage ranging from 20% in the Czech
Republic to even 60% in Romania.
Slovenia is a large producer of car components, including car seats. The Prevent Group
headquartered in Slovenia is one of the largest European producers of car seat covers. This
explains the enormous demand for and imports of the product group ‘other furnishing articles’,
which includes furnishing covers for car seats, in Slovenia.
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THE HOUSEHOLD AND FURNISHING TEXTILES MARKET IN THE EU
As can be seen from Table 1.3, demand within the individual product groups of household
textiles decreased while demand within the individual product groups of furnishing textiles
increased between 2004 and 2008. Demand for household textiles has been virtually stable for
many years. However, there was a sharp decrease between 2007 and 2008. Demand for
furnishing textiles has continuously increased in the last years, but 2008 was the first year to
show a decline. These changes in patterns can be explained as a result of the economic crisis.
Table 1.4 Consumer expenditure of household and furnishing textiles in the EU,
in €, 2004-2008
2004 2005 2006 2007 2008 CAGR Annual
growth
'07-'08
EU27 17,44 18,20 18,59 19,28 17,85 0,6% -7,4%
Slovenia* 109,50 239,78 210,85 232,83 144,52 7,2% -38%
Ireland 30,65 32,18 36,86 41,85 38,95 6,2% -6,9%
Belgium 34,86 33,60 34,74 43,62 28,98 -4,5% -34%
United Kingdom 33,30 31,07 33,60 33,47 28,21 -4,1% -16%
Luxemburg 31,70 29,39 26,56 28,99 27,58 -3,4% -4,9%
Austria 27,05 28,38 27,88 26,20 27,19 0,1% 3,8%
Netherlands 21,20 21,50 22,85 24,45 26,24 5,5% 7,3%
Denmark 17.46 18.79 24.20 26.82 24.17 8.5% -0.1%
Finland 17,07 18,99 19,44 22,33 21,70 6,2% -2,8%
Sweden 18,42 18,60 20,77 21,21 19,58 1,5% -7,7%
Italy 19,52 21,29 20,34 18,19 19,04 -0,6% 4,6%
France 16,41 17,35 16,81 18,40 18,00 2,3% -2,2%
Germany 17,99 16,92 16,76 16,94 16,72 -1,8% -1,3%
Spain 16,22 18,08 18,28 18,33 16,37 0,2% -11%
Czech Republic 8,86 12,03 14,69 14,56 15,66 15,3% 7,6%
Greece 13,11 12,18 12,08 14,08 14,51 2,6% 3,1%
Malta 11,78 13,94 12,19 12,87 14,15 4,7% 10%
Latvia 4,32 5,94 7,58 7,99 9,88 22,9% 24%
Portugal 5,84 7,51 5,50 7,78 9,41 12,7% 21%
Lithuania 5,63 6,52 7,08 7,34 9,07 12,7% 24%
Slovakia 3,39 2,97 7,91 6,71 8,68 26,5% 29%
Cyprus 6,53 6,64 6,98 8,11 8,25 6,0% 1,7%
Poland 2,61 3,24 4,06 5,57 6,20 24,1% 11%
Hungary 4,19 3,97 4,08 3,82 4,20 0,1% 10%
Romania 0,67 1,24 1,71 2,82 4,16 57,6% 47%
Estonia 9,17 7,57 12,06 16,84 n/a n/a n/a
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THE HOUSEHOLD AND FURNISHING TEXTILES MARKET IN THE EU
The household and furnishing textiles market in the EU countries has experienced a non-stop,
but slow growth for many years. Demand patterns of households vary substantially across
Europe, due to differences in culture, traditions and tastes. Germany has been the largest
market for household textiles for many years, despite declining demand, followed by France.
Other important markets in the EU are the UK, Italy, Spain and Belgium. The UK has been the
largest market for furnishing textiles in previous years, followed by Italy, Spain and Germany.
The sizes of national markets for household and furnishing textiles reflect, among others:
• Demographic factors (size of population and number of households);
• Developments in the housing market (housing stock, new dwellings);
• Levels of income, in particular disposable income, derived from economic developments,
such as unemployment, consumer confidence, inflation etc.;
• Fashion developments in home furnishings, including household and furnishing textiles;
• Consumer preference for specific fibre types and brands;
• Importance of home textiles in household purchasing decisions.
The bulk of household and furnishing textiles purchased in the EU during any particular year is
for replacement purposes rather than constituting a primary purchase. New dwellings account
for a relatively small number of purchases. Most purchases of household and furnishing textiles
are made to replace old, worn or unfashionable textiles. These purchases can be deferred in
most cases, depending upon the economic circumstances at the time.
Fashion trends
Fashion trends in household and furnishing textiles are related to fashion developments in
general, and must therefore be in harmony with those of furniture, kitchen equipment, beds
etc. Fashion requires substantial investment in creativity, such as highly skilled designing, the
right colours and materials. Fashion in household textiles does not change quickly and trends
used to last for 3 to 4 years. However, furnishing lifecycles have reduced considerably to
approximately two years for soft furnishings and five years for carpets. Bed, bath, table and
kitchen linen are no longer considered to be just plain utility items. Fashion has entered into
the production and promotion of these textiles in a big way.
There are distinct seasonal preferences, and there is also a tendency to maintain or create a
design scheme affinity between the various fabrics and house decoration in general. Colour
trends are more or less uniform in EU countries. Generally speaking, design trends have
become more and more individual and no major single trend can be seen, as was the case in
previous years. Instead, several distinct trends are moving side by side forming a composite
fashion flow.
The trend in furniture has moved increasingly away from ‘traditional’ heavy furniture towards
modern lighter designs, frequently sold by large outlets in kit form for DIY assembly. These
outlets also have household textiles in their assortment of which colour and design are in
harmony with e.g. furniture, kitchen and beds.
Fashion trends or inspirations for the coming years can be derived from the website of the
leading EU trade fair Heimtextil (http://www.heimtextil.de) in Germany. Other trade fairs and
trade magazines publish fashion trends and can be sources of inspiration as well.
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THE HOUSEHOLD AND FURNISHING TEXTILES MARKET IN THE EU
It is particularly important for producers of household and furnishing textiles to understand colour,
design and style in their particular target market, as this is a major decision-making factor for most
buyers. These trends change rapidly and it is therefore important to keep knowledge up to date.
Source: http://www.capecraftanddesign.org.za
Brands
In the household textile sector, brand awareness among consumers is limited, as can be
derived from the high market shares for interior department stores (Ikea, Habitat), speciality
chains (Descamps) and variety chains (Marks & Spencer, Hema) operating with their own
private label and textile discounters, while super- and hypermarkets sell unknown or fancy
brand names. Operating at the top of the market are designers such as Ralph Lauren, Armani,
Kenzo, Christian Dior and Joop!, all of them well-known internationally. Other examples of
widespread licensed brands are for children (Pokemon, Teletubbies etc.) or for teenagers
(Chipie etc.). Examples of brand names (mainly operating in the higher segments) in the
household sector are Zucchi, Bassetti, Frette, Descamps, Marzotto, Santens, Clarysse,
Cinderella, Irisette, Van Dijck, Pretti, Zambaiti etc. Well-known brands of curtains are Ado,
Gardisette and Cordima, while manufacturer names of other furnishings are, among others,
Sodahl, Le Jacquard Francais and Graziano.
A brand’s personality generally appeals to a certain customer group. Product extensions are an
attempt to find other ways to appeal to the same customer. Benetton, Esprit, Mexx, Zara,
H&M, Schiesser and many other clothing chains have introduced household textiles in their
assortment (for example Zara Home).
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Page 8 of 50
THE HOUSEHOLD AND FURNISHING TEXTILES MARKET IN THE EU
Consumers are expected to respond to the difficult economic climate by postponing purchases
and making do with existing furnishing fabrics and linen. Decreasing consumer confidence has
only spurred this development. Consumers have become increasingly cautious and are thinking
twice about where and what they will spend their money on. At the same time, however,
people tend to remain at home during uncertain times and focus their attention on products
that transform their houses to places of comfort and safety.
Retailers are increasingly focusing on lower price and better value products. It is expected that
retailers will plan tighter inventories and will rely more and more on suppliers to bear the
inventory burdens.
The longer term prospects for the market are more optimistic with moderate growth forecast
for 2010-2012 when the economy is expected to regain momentum. The disposable incomes of
European consumers are expected to increase as is demand for household and furnishing
textiles. However, the current uncertainty and volatility of the short term economic climate
makes it extremely difficult to forecast in the medium term.
Consumer confidence
As mentioned above, declining consumer confidence has its effect on the demand for
household and furnishing textiles. Table 1.5 shows the Nielsen Global Consumer Confidence
Index for most European countries and the change in the 1st half of 2009 in comparison to the
2nd half of 2008. Please note that this index resembles the general trend in consumer
confidence and is not specifically aimed at consumers of household and furnishing textiles.
Unfortunately, not all European countries have been researched.
The Nielsen research showed that in the 1st half of 2009, 22% of the consumers researched
were spending spare cash on home improvements and decorating, down from 25% in the 2nd
half of 2008. To save on household expenses, 70% of consumers had changed their spending
habits. 34% of respondents had delayed the replacement of major household items and 10%
were planning to continue to save on household items when economic conditions improve.
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THE HOUSEHOLD AND FURNISHING TEXTILES MARKET IN THE EU
The commercial or contract market has a completely different market structure from the
consumer market. It can be divided into governmental organisations (defence, health and
hospitals etc.) and commercial organisations. Governmental institutes buy mainly via tenders,
while other organisations buy directly through manufacturers, wholesalers, or rent/lease via
textile service (laundry) companies. Textile service companies operate on the commercial
market with products such as work-wear, household textiles (towels, bed linen and table
linen), industrial wipers and mats. The total turnover of the textile rental market was
estimated at € 8-9 billion in 2006 (more recent figures are not available), of which the health
sector (35%), trade and industry (45%) and hotels and restaurants (20%) are the most
important customers. Information on the market size, apart from activities through textile
service companies, is not available. For this reason, we will not focus attention on the
commercial or contract market in the rest of this survey. Distribution of household textiles on
the institutional and industrial market is in the hands of internationally operating companies,
such as:
• Bardusch - http://www.bardusch.de
• Berendsen - http://www.berendsen.com
• Elis - http://www.elis.com
• HTS Industrial, part of Haniel - http://www.hts.com
• Johnson - http://www.johnsonplc.com and including http://www.stalbridge-linen.com
• Mewa - http://www.mewa.de
• Rentokil/Initial - http://www.rentokil-initial.com
Other suppliers in the textile service sector can be found on the website of the European
Textile Services Association
(http://www.etsa-europe.org/Etsa-Europe.org/members/pdf/ETSAMemberslist.pdf) and in the
general trade directories.
Table 1.6 gives an overview of total textile demand by the several categories of service
industries in the EU in 2002-2006. Unfortunately, more recent figures are not available. The
total expenditure of € 16 billion can be divided into expenditure on clothing (35%), textile floor
coverings (25%) and household and furnishing textiles (40%). This means that total
expenditure on household and furnishing textiles in the contract sector amounted to € 6.4
billion or 22% of consumer expenditure.
Just as is the situation on the consumer market, Germany, the United Kingdom, France, Italy
and Spain are the major contract markets and covered an estimated 70% of the total EU
market. The situation on the market for office buildings, the health and the hotel sector led to
decreased investments and a related fall in textile demand in EU countries such as Germany,
Belgium and the Netherlands.
In the previous years, the contract sector in most of the new EU states had shown positive
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Page 10 of 50
THE HOUSEHOLD AND FURNISHING TEXTILES MARKET IN THE EU
growth. The tourist industry had been growing apace, not only in urban but in rural and coastal
areas as well. New hotels were built, restaurants were opened and existing hotels and
guesthouses renovated and refurbished. Furthermore, construction on office buildings and
trade centres was also booming. However, the economic crisis has altered this positive picture
as Eastern European countries are being hit very hard by the economic crisis.
Carpets, on the business to business (B2B) market or contract sector, is the biggest product
group in textile demand by service industries, with destinations such as offices, hotels, public
buildings, hospitals and sport and holiday accommodations. It is followed by bed linen of which
rental laundries, hospitals and hotels are the main customers. Other major product groups are
curtains/upholstery and towelling.
There are important differences in the residential/consumer market for household and
furnishing textiles:
• Different products required
• Safety features like flame retardant
• Hygiene features such as washing standards
• Higher quality standards (abrasion, colour fastness, colour shades, and so on)
• Duration of range
• Other specific functional features
An important characteristic of the contract market is the role of the advisor, in most cases an
(interior-) architect or a contract furnishing specialist. However, they often source products
from a few suppliers with whom they are familiar when it comes to ordering a specific project.
Building up a new and sustainable relationship costs a considerable amount of time and is
almost impossible in some cases.
Technical product requirements are reflected in guidelines and certificates. Certified and
audited production is often necessary. The Association for Contract Textiles mentions voluntary
performance guidelines to label textiles (upholstery, drapery, wall covering, wrapped panels)
performing up to contract standards.
Increased attention has been paid to the contract sector in magazines and at trade fairs.
Nearly all trade fairs for home furnishings have been focusing attention, including trend
information, on participants in the contract sector, such as interior designers, planners and
decision makers for hotel and office equipment. However, there are also trade fairs specifically
for the contract market, such as:
• Contract Creations, Heimtextil - http://www.contact-contract.com – targeted at planners,
hotel operators, interior designers and architects – part of the trade fair Heimtextil –
Frankfurt – January - annually
• Equip Hotel – http://www.equiphotel.com – targeted at hotel buyers in Europe - Paris –
November – biannually
• Euroshop – http://www.euroshop.de – targeted at shop buyers – Düsseldorf - February –
biannually
• Expo Detergo – http://www.expodetergo.com – targeted at laundry buyers in Italy – Milan
– November – once every four years
• Orgatec – http://www.orgatec.de – targeted at office buyers – Cologne – October –
annually
• Texcare – http://www.texcare.com – targeted at laundry buyers in Germany – Frankfurt –
October – once every three years
An important trend in the commercial or contract market is the demand for performance
apparel technologies, such as moisture management technology, integrated into the
production of bed sheets and other home textile products. Functional fabrics which are
stretchable, thermally adaptive, stain protective, fragrance encapsulating and can resist dust,
mite and bacteria are increasingly in demand.
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Page 11 of 50
THE HOUSEHOLD AND FURNISHING TEXTILES MARKET IN THE EU
As mentioned above, the demand for household and furnishing textiles is principally
determined by demographic criteria, developments on the housing market and socio-economic
developments. Other aspects are the prices of household textile goods relative to other
products competing for consumer expenditure, consumer preferences for individual fibres and
the influence of brands and fashion on textiles, interior trends and others. Many of these
factors are basic criteria for market segmentation and will be discussed below.
During the last years, the EU population has grown from over 456 million (2004) to 491 million
(2008). In 2008, Germany had the largest population in the EU with 17% of the total, followed
by France, the United Kingdom and Italy with roughly 12% each. These four countries together
comprise 54% of the total population.
The number of households in the EU, which is now more than 200 million, is expected to grow
further in the coming years to 205 million in 2010. Low birth rates, a declining propensity to
get married and an increased number of divorces are affecting the size of households, which
have shown a decreasing tendency in recent years. Households of five or more people have
become rare while the number of one-person households is continually growing. There is an
above average number of one-person households in the EU in countries such as Germany,
Scandinavian countries and the Netherlands. More than two person households account for the
largest share in Italy and Spain.
For the coming years, total construction output of the EU will decline. Although the outlook was
positive, the economic crisis has altered this positive picture. Table 1.7 shows the expected
developments in the European housing market.
Eastern Europe
In general, it seems that the construction market in Eastern European countries will be least
affected by the economic crisis. For 2009, Poland, Romania and the Czech Republic forecast
good construction activity growth of around 6.0%, 11% and 5.0% respectively. The forecasts
for Hungary and Bulgaria are less positive. However, Eastern European countries are likely to
be affected by the credit constraint, as these countries rely heavily on credit from Western
European banks.
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THE HOUSEHOLD AND FURNISHING TEXTILES MARKET IN THE EU
Disposable income and the readiness of consumers to spend on the interior of their homes are
significant influences on the household and furnishing textiles market. Spending on furniture
and carpets is closely linked to developments in the housing market. Spending on household
and furnishing textiles is also related to the purchase of houses, but is less cyclical than the
furniture and carpet markets. The purchasing power of young people has significantly
increased over the years.
Low interest rates in the EU in the last few years have acted as a boost to the housing market,
which has in turn encouraged spending on furnishing textiles. However, in the second half of
2008 the housing market collapsed and so did consumer confidence.
Character, ideas and attitude to life will be emphasised by the ambiance that consumers give
to their home interiors. Just as is the case with other fashion items such as clothing, a home
interior serves as the means of expressing one’s personality. Personalisation is a vitally
important characteristic when it comes to new offerings, and that is the strongest stimulus for
new purchases. The home sector is decreasingly dependent on the need to replace.
Consumers set priorities in their pattern of expenditure according to their life style. The
increasingly individualistic nature of society will bring about a rise in demand for goods with an
expressive value. People are more willing to spend their money on such goods, while for
products with a lower priority, a low price is the main criterion.
In the world of fashion, there are some important concepts. One of them is fashion mentality.
It means the degree of rapid acceptance of new fashion trends by consumers. Using this
concept, one can divide fashion products into: avant-garde, innovative, current, well-known
and classical or conservative. Another important concept regarding fashion consciousness is
'conception of culture'. It is the attitude of a consumer to the patterns of culture. A consumer
can choose to conform to the dominating culture or he/she can choose just the opposite
(opposition to traditional culture). In general, judging what is beautiful or ugly is currently not
so much determined by macro-economic factors, such as age, income, profession and/or
region, but much more by factors such as fashion consciousness and culture.
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THE HOUSEHOLD AND FURNISHING TEXTILES MARKET IN THE EU
Materials vary across the different segments of the market. Certain materials feature more
predominantly in the high end of the market (e.g. silk) than in the mid to low end. However,
cotton is the most popular material overall.
1.3 Trends
Some trends that influence the demand for household and furnishing textiles in the EU are:
• Continuing interest in more fashionable textiles. There is a continuing interest in
more fashionable household and furnishing textiles, especially by younger age groups and
encouraged by foreign multiples in several EU countries. This has partly been encouraged
by (glossy) home magazines and interior design programmes on television. Consumers in
several new EU member states have become more aspiring and ‘western’ in their home
interiors as prosperity increases. The latest developments and forecasts in fashion can be
derived from the websites of trade fairs, such as Heimtextil
(http://heimtextil.messefrankfurt.com) or in trade magazines, such as Textile Wirtschaft
(http://www.twnetwork.de) or Journal du Textiles (http://www.journaldutextile.com).
• Growing demand for natural fibres. There is a high demand for natural fibres, mainly
cotton and blends with cotton at the expense of man-made fibres in the household linen
sector, while synthetics play a less dominating role in the furnishing sector, in particular in
the case of curtains. However, in the UK and some other countries with British influences
other preferences are valid.
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Page 14 of 50
THE HOUSEHOLD AND FURNISHING TEXTILES MARKET IN THE EU
Sustainability
Sustainable consumption is one of the main consumer trends in Europe. Most European citizens take into
consideration the environmental impact of the products that they buy, as well as social matters such as
working conditions and child labour. Key words are ecology, reuse of fibres, long-lasting textiles and
sustainable manufacturing. Therefore, companies in the sector need to use ‘green technologies’ and
monitor every part of the value chain in order to avoid corporate scandals that could harm their brand;
for example, children working with dangerous chemicals to produce textiles. Corporate Social
Responsibility (CSR) and ethical sourcing are thus becoming vital elements of business strategies in the
textiles sector. A range of initiatives aim to ensure that companies avoid such scandals. The Business
Social Compliance Initiative (BSCI) is one example in this regard: it is a business-driven platform with
the aim of improving compliance with socially responsible acting in all supplier countries and for all
consumer goods.
USAID has developed a toolkit and guide on sustainable production for home furnishing companies. This
guide and toolkit can be accessed at http://sustainable-production.ecoexotic.net. Please refer to the CBI
market information database on market access requirements for more information on BSCI and other
initiatives – go to http://www.cbi.eu/marketinfo.
Trends and market developments offer opportunities and threats to exporters. A given trend
can be a threat to some and an opportunity to others at the same time. The following trends
should, therefore, always be analysed in relation to your specific circumstances. Refer to
Chapter 7 for more information on opportunities and threats.
+ Due to economic developments, consumers are continuing to seek low-priced household
and furnishing textiles. On the other hand, the size of the market and the polarisation in
incomes offer huge markets for quality and comfort, designer labels etc.
± From 2004 to 2008, EU demand for household textiles slightly decreased, whereas
demand for furnishing textiles increased.
± European consumers are expected to respond to the difficult economic climate by
postponing purchases and making do with existing household and furnishing textiles. At
the same time, however, people desire to remain at home during uncertain times and
focus their attention on products that transform their houses to places of comfort and
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Page 15 of 50
THE HOUSEHOLD AND FURNISHING TEXTILES MARKET IN THE EU
safety.
- Due to the economic crisis, consumer confidence is decreasing in Europe. This will lead
to more savings instead of spending money on household and furnishing textiles.
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Page 16 of 50
THE HOUSEHOLD AND FURNISHING TEXTILES MARKET IN THE EU
2 Production
The value of EU production of household textiles annually decreased by 8.2% in the period
2004-2008, to an output of € 2.6 billion in 2008 (see Table 2.1). Production of household
textiles in the EU is dominated by Italy, accounting for more than 20% of total production
output of household textiles in the EU. The top four production countries – consisting of Italy,
Portugal, Germany and France – accounted for more than 60% of total EU production. All
European countries saw a decrease in production, with the exception of Lithuania and Finland
where production remained virtually stable. Declining production is mainly due to European
companies outsourcing to low-cost countries.
The value of EU production of furnishing textiles annually increased by 3.9% in the period
2004-2008, to an output of € 3.2 billion in 2008 (see Table 2.2). The production of furnishing
textiles in the EU is dominated by the UK, accounting for almost 30% of total production
output. The top four production countries – consisting of the UK, Italy, Slovenia and Spain –
accounted for almost 60% of total EU production.
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THE HOUSEHOLD AND FURNISHING TEXTILES MARKET IN THE EU
As can be seen from Table 2.3, most product groups showed a decrease in production between
2004-2008 with only curtains and other furnishing articles showing an increase.
The European home textile sector is regarded as being technologically well advanced.
Manufacturers in the EU focus on high value products with a high design content; they export
on a global scale by supplying to the higher segments of the market and they source basic
products in lower-cost countries. Their strategies have led to an increase in efficiency and
broadening of assortment. Although the level of imports of textiles has always been high, more
and more retailers are sourcing products overseas. Manufacturers are increasingly looking to
move facilities to countries where production costs are lower.
Please refer to Table 2.4 for a SWOT analysis of the European textiles sector. As can be seen,
the weaknesses and threats of the European textiles sector are the strengths and opportunities
for DC producers of household and furnishing textiles and vice versa. For example, the high
labour costs are a weakness of the European textiles sector. As labour costs in DCs are much
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Page 18 of 50
THE HOUSEHOLD AND FURNISHING TEXTILES MARKET IN THE EU
lower than in the EU, DC suppliers can take advantage of this. At the same time, the demand
for higher value added goods are a threat for DC suppliers, as this is much more difficult to
realise.
The decision to locate production outside the country of origin will often be based on an
assessment of comparative factors, such as labour costs and productivity, capital investment
and other factors such as transport, insurance and other related costs. Access to markets and
inputs, such as workers (human capital and skills), suppliers and business and market
knowledge and their availability also influence location decisions. Companies are also likely to
take external factors into account, such as current and expected political stability, regulations,
exchange rates, taxation, quotas and tariffs and freedom from restrictive legislation.
Companies prefer to locate their business activities where the market is established and people
with adequate skills can be found.
The supply chain is increasingly organised as an integrated production network, within which
production is divided into specialised activities. Activity is located where it can contribute most
to the value of the end product. The lower the level of value added and the less tacit
knowledge the activity requires, the more likely it is that delocalisation will take place.
The globalisation of the supply chain also entails certain risks for European companies, as they
are required to monitor working conditions and manufacturing practices in all parts of the
value chain, including those of subcontracting companies. If a company or its subcontractors
do not comply with regulations or ethical standards, the image of the company can be
damaged.
The relocation of production activities has led to intensive trade relations between the ‘old’ 15
EU member states and Eastern European countries. As a result, Eastern European countries as
well as those of North Africa and Turkey have been among the top suppliers of home textiles
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THE HOUSEHOLD AND FURNISHING TEXTILES MARKET IN THE EU
produced for Western Europe. With the liberalisation of the textiles trade in 2005, the textiles
industry, in particular that of Eastern European countries, faces increased competitive pressure
from lower-cost countries and regions.
2.2 Trends
Some trends that influence the production for household and furnishing textiles in the EU are:
• Economic crisis. Textile manufacturers in Europe are facing a considerable drop in
demand for their products in Europe, while the cost of production and employment is
increasing and competition from Low Cost Countries is stronger than ever.
• Relocation of textile production. The restructuring policy of many manufacturing
companies in the EU during the last two decades has led to a relocation of the textiles
production, mainly based on labour cost comparisons.
• Increasing price competition. Price competition among suppliers has intensified,
resulting in a very slow growth in prices. This is causing concern among EU producers, who
are finding it increasingly difficult to match low import prices.
• Increasing internationalisation. EU textile manufacturing and retail companies are
expanding their activities intensively and their products are becoming increasingly available
in many European countries.
• High degree of integration in the value chain. Several producers have opened their
own chain(s) and many suppliers have started close and long-term co-operation with
distribution channels, thereby increasing the entry barriers for new suppliers.
• Increasing concentration. The number of suppliers has decreased and many suppliers
have merged or have taken over other suppliers.
• Specialisation. Several manufacturers of household and furnishing textiles have
specialised themselves in specific functions (such as design) or in specific markets (such as
the contract market), while other manufacturers have shifted from manufacturing for
private labels to introducing their own brands.
Trends and market developments offer opportunities and threats to exporters. A given trend
can be a threat to some and an opportunity to others at the same time. The following trends
should, therefore, always be analysed in relation to your specific circumstances.
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THE HOUSEHOLD AND FURNISHING TEXTILES MARKET IN THE EU
+ The further sourcing of products in LCCs has led to a decrease in production (with the
exception of curtains and other furnishing articles) in the major EU countries, including
products with a higher design content. This offers interesting opportunities for DC
exporters of household and furnishing textiles.
+ Advantages of the new EU member states in terms of lower wages and shorter routes
will largely disappear.
± Manufacturers in the major EU countries have built up a comparative advantage by
specialising in design and other functions, such as preparation of samples, logistics and
marketing, while simple production operations are increasingly taking place in other
countries. As time goes by, even the functions mentioned first will leave these EU
countries.
- In order to meet the increasing requirements of the EU, exporters in DCs will be forced
to meet the increased demands for higher quality and requirements concerning
environment and sociability.
For examples of interesting players in individual EU countries, please refer to the CBI market
surveys covering the household and furnishing market in individual EU countries.
European Technology Platform for the future of textiles and clothing - http://textile-platform.eu
The European Technology Platform for the future of textiles and clothing was launched in 2004. The
technology platform is a forum which brings together the European textiles and clothing industry, its
research and education community, representatives of related industry sectors and scientific disciplines,
as well as public authorities. The aim of the platform is to develop and implement long-term industry
visions and a ‘Strategic research agenda’ to improve innovation, competitiveness and the growth
potential for this key industry sector in Europe. Source: http://www.eurofound.europa.eu (2009)
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THE HOUSEHOLD AND FURNISHING TEXTILES MARKET IN THE EU
Figure 3.1 displays the most common distribution channels in the industry, which are:
1) Retailers
2) Importers
3) Wholesalers
4) Domestic manufacturers
5) Sales agents
6) Purchasing agents
The trade channel for DC exporters in the EU is generally the same as for EU exporters. As the
thickness of the arrows emphasises, retailers, wholesalers and importers are by far the most
important trade channels for the DC exporter. Please note that the three trade channels are
not strictly isolated. For instance, manufacturers, agents and retailers may also function as
importers, while wholesalers may also be manufacturers (vertical integration).
Figure 3.1 Distribution pattern for household and furnishing textile in the EU
DC exporter
Purchasing agents
Retailers
Department and variety stores; multiple furniture and/or furnishing stores; interior department
stores; buying/selling organisations; independent specialists shops; value retailers; discounters;
hyper- and supermarkets; home shopping; DIY stores, street market, etc.
Consumers
Source: Facts Figures Future (2009)
Ad 1) Retailers
Retailers constitute the final stage before products reach the consumer. A criterion for dividing
the market is the composition of the total assortment: wholly or partly specialised in selling
household or furnishing textiles. About two thirds of all stores within the total group of
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Page 22 of 50
THE HOUSEHOLD AND FURNISHING TEXTILES MARKET IN THE EU
furnishing shops sell carpets, curtains and other soft furnishings. Bed and bedding specialists
sell beds but also mattresses, pillows and bed linen. Home furniture and furnishings, including
all kinds of accessories, form the assortment in interior department stores. Non-specialists
means stores with an assortment from various branches, such as department stores, discount
stores, DIY stores, mail-order houses, grocery hyper- and supermarkets and street markets.
Ad 2) Importers
Importers purchase products from manufacturers abroad and generally add a 30-40% mark-
up to cover commissions, credit risk, after-sales service and the cost of carrying a local
inventory to meet small orders. In contrast to the agent, these importers hold their own stocks
at their own risk.
Ad 3) Wholesalers
Wholesalers cater to specialist shops as well as to department stores and home shopping
companies. In contrast to the agent, wholesalers hold their stocks at their own risk. This non-
importing distributor purchases from domestic manufacturers and importers. The mark-up of
wholesalers is approximately 20-30%. Large retail companies are increasingly purchasing
abroad, thereby bypassing this intermediary.
Ad 4) Importing manufacturers
Retailers are increasingly taking part in earlier stages of the supply chain (vertical integration)
and have their own designers to give their collections a more unique look. Manufacturers are
trying to compete by placing a greater emphasis on their own product development. They can
then offer exclusivity to retailers, which gives them a competitive advantage. Although it
occurs to a lesser degree than, for instance, in the clothing sector, manufacturers penetrate
retail business by operating through their own shops, franchising or concessions. This gives
them control over their output and margins, such as Christy (UK) and Descamps (France). The
many forms of foreign policies from EU manufacturers are discussed in chapter 2 of this
survey.
Ad 5) Sales agents
Sales agents are independent intermediaries between the (foreign) manufacturer and the
retailer or retail organisation, receiving a commission from the former. Most sales agents work
on a 8-15% commission based on FOB prices. The sales agent does not take title to the
merchandise, but is limited to presenting samples to potential clients, obtaining orders, and
forwarding these to the exporter. The role of the (sales) agent in household and furnishing
textiles is very limited. Sales agents are only of use if the exporter has a totally
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Page 23 of 50
THE HOUSEHOLD AND FURNISHING TEXTILES MARKET IN THE EU
merchandisable product i.e. a suitable design, made by the exporter, of relevant quality and
price. While his mark-up is much less than the importer’s, the agent will require a much higher
input from the exporter. It is, therefore, a distinct development, but can only be achieved
through a high degree of resourcefulness on the part of manufacturers.
Ad 6) Purchasing agents
Purchasing agents are widely used by retailers and wholesalers in EU countries due to their
wide network of contacts and knowledge of foreign markets. They do not carry their own
stock, but purchase solely on the request of their customers. Most purchasing agents work on
a 4-5.0% commission based on FOB prices.
Trends
Trends that influence trade practices in the EU are:
• Diminishing market shares of independent retailers to the advantage of specialised chains
(including interior department stores) and non-specialists such as super- and
hypermarkets.
• Intensified integration and growing internationalisation or cross-border activities, of which
the main examples are Ikea, Ka International and Zara Home.
• As is the case on the manufacturer’s level, increasing concentration is applicable to
wholesale and retail organisations.
• In general, the powerful groups of chains have reduced their number of supplying
manufacturers. This has given them a stronger position in negotiations on e.g. price and
delivery conditions and in some cases organisations have taken over the functions of
suppliers in order to improve competitiveness (vertical integration). Increasing integration
in the value chain decreases the number of suppliers on the market and forces them into
close and long-term cooperation with the distribution channels.
• Margins are under continuous pressure in the major EU countries. Consumer expectations
with regard to lower prices, as well as tough competition, have resulted in retailer needs
for lower inventories, less out-of-stock situations and lower markdowns.
• Clothing multiples have expanded their assortment by introducing household textiles, such
as Esprit, H&M, Next, Zara, Mexx and Benetton.
• All opportunities enabling reduced costs are eagerly pursued. Purchasers of textiles are
sourcing for lower purchase prices abroad, thereby minimising costs in the home country.
The necessity to reduce costs has provided the main driving force behind the development
of sourcing markets from importing countries. As a result, production has migrated to a
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Page 24 of 50
THE HOUSEHOLD AND FURNISHING TEXTILES MARKET IN THE EU
growing number of DCs, because buyers have sought and are still seeking ever-lower cost
locations. In practice, it is not a question of looking for the lowest wages, but looking for
manufacturers with the lowest overall manufacturing costs.
• Minimising purchasing costs implies that many buyers are trying to limit the number of
supplying countries and the number of individual manufacturers with whom they deal.
E-commerce
Today’s consumers shop more and more online. This trend provides an opportunity for DC companies to
introduce new business models which allow them to sell their products directly to customers, thereby
limiting the influence of retailers on business decisions. Furthermore, companies also use the business-
to-consumer (B2C) e-commerce interaction as a tool to gather information and data on consumer trends
and market developments. B2C e-commerce also helps companies to develop a closer relationship with
customers in order to gain their loyalty. In relation to the textiles sector, consumer preferences to ‘feel
the fabric’ before buying them could be considered a barrier to the use of B2C tools. Nonetheless, the
technological advances in terms of advanced computer-aided design (CAD) and personalised avatars
could provide a solution to this challenge. In addition, ‘business to business’ (B2B) solutions facilitate the
use of digital transactions which are cheaper and less time consuming than traditional ways of buying
and selling products to other businesses.
Source: http://www.eurofound.europa.eu (2008)
The margins at the various levels of distribution are influenced by six factors and are different
for each product/market combination. These factors are:
• Degree of risk (new fashion/design or ‘me-too’ product, new or known source etc.);
• Volume of business;
• Functions or marketing services rendered;
• General economic conditions (booming or depressed business);
• Existence/availability of competitive products and,
• Exclusiveness of the product.
It is impossible to draw up a schedule of actual margins for each and every product/market
combination. Even within the same type of combination, different importers employ different
margins, due to variation in economic conditions. The various retailing stores differ in the sales
formula they apply, i.e. their assortment and the consumer group targeted, as well as in the
way they differentiate themselves from competitors. As an aid to understanding the market,
one can distinguish between ‘service retailing’, where the retailer offers the consumer
substantial added value (such as quality, service, fashionability and choice), and ‘low-margin
retailing’, where the price-conscious consumer is offered low prices, at the expense of quality,
service and so forth. We refer to the overview in Section 1.2 for the various segments in the
household and furnishing textiles market. Differences between major countries are influenced
by several factors, such as a country’s retail structure.
A detailed overview of the trade structure and market shares of retailers with household and
furnishing textiles in their assortment are discussed in the CBI sector surveys covering the
market in individual EU countries. The effect of the market position, often indicated as low,
medium and high, results in different margins on consumer end price, based on one CIF (cost,
insurance and freight) price for three different market segments. A multiplier of between 2.2
and 3.4 on the manufacturer’s price should be used to calculate an appropriate final consumer
price. Elimination of the wholesaler, for instance in the case of multiples, department and
variety stores and home-shopping companies, does not always lead to a lower multiplier.
Import duties * * *
Charges on CIF basis:
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Page 25 of 50
THE HOUSEHOLD AND FURNISHING TEXTILES MARKET IN THE EU
Although the levels of wholesaler and retailer costs often shock suppliers, these intermediaries
do not generate excessive profits. While purchase costs have fallen since manufacturing in
LCCs started to gather pace, other costs have risen and increasing competitive pressures have
kept profitability down. Bargain sales are growing in importance in all segments of the market
and in all major EU countries. As a rule, importers who import from DCs are looking for low-
priced merchandise.
There are many ways of finding potential trading partners in the EU. Besides options such as
meeting prospects at trade fairs, the Internet is a highly valuable source. Relevant country-
specific sources to find prospects in the EU are:
• Europages – http://www.europages.com - you can click on ‘Textiles and Clothing’, but it is
also possible to search for a specific product.
• European Association of National Organisations of Fashion Retailers (AEDT) -
http://www.aedt.org
• Kellysearch - http://www.kellysearch.com – you can click on ‘Furniture & Textiles’, but it is
also possible to search for a specific product.
• Kompass – http://www.kompass.com - the free part is useful in finding manufacturers of
specific products; the website of the company is also listed.
• Exhibitors at trade fairs, such as Heimtextil (http://heimtextil.messefrankfurt.com) - see
the exhibitor list to find company details.
• The European Apparel and Textile Association - http://www.euratex.org
For more names and websites of associations, intermediaries and manufacturers per country,
refer to the CBI surveys covering the household and furnishing market in individual EU
countries. Another option may be to make use of sources in your own country:
• The Economic Affairs departments of the official representative (Embassy or Consulate) of
a specific EU country. Find the specific country’s embassy in your country at
http://www.embassyworld.com. Another suggestion may be to contact the consul of your
own country in the country of your choice.
• Public and private trade promotion bodies.
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Before we take a look at the figures on the imports of household and furnishing textiles in the
EU, it should be noted that all data presented in this chapter are official trade figures provided
by Eurostat. These official statistics are not always all-embracing and they should be
interpreted with care. Appendix A of this survey includes more information on statistics.
EU countries can be classified by developments in the value of imports during the period 2004-
2008, into:
• Booming imports (more than 40%) in Romania;
• Strongly growing imports (between 20% and 40%) in Bulgaria, Latvia, Slovakia, Lithuania,
Poland and Estonia;
• Considerably growing imports (between 8% and 20%) in Slovenia, the Czech Republic and
Denmark;
• Slightly above average growing imports (between 3.0% and 8.0%) in Cyprus, Malta,
Finland, Spain, Portugal, Greece, Italy and the Netherlands;
• Average growing imports (around 3.0%) in France, Belgium, Sweden and Austria;
• Slowly growing imports (0-2.5%) in Hungary;
• Slowly decreasing imports (-0% - -5.0%) in Germany, the UK, Ireland and Luxembourg.
Combining the statistics on consumption, production and trade presented in this survey, it can
be said that imports continued to constitute a larger share in EU demand in the period under
review. Imports grew considerably, mainly at the cost of local production, which was
increasingly relocated to other countries. Additionally, exports also declined.
EU countries can be classified by developments in the value of imports during the period 2004-
2008, into:
• Booming imports (more than 40%) in Slovenia, Bulgaria and Slovakia;
• Strongly growing imports (between 20% and 40%) in Latvia, Lithuania and Romania;
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Page 27 of 50
THE HOUSEHOLD AND FURNISHING TEXTILES MARKET IN THE EU
• Considerably growing imports (between 8.0% and 20%) in Denmark, Portugal, Estonia,
Poland and the Czech Republic;
• Average growing imports (between 4.0% and 8.0%) in Spain, Finland, Austria, Hungary
and Cyprus;
• Slowly growing imports (0 - 2.5%) in the Netherland, Germany, Italy, Greece, Belgium and
Malta;
• Decreasing imports (-0% - -5.0%) in the UK, Ireland and Luxembourg.
Combining the statistics on consumption, production and trade presented in this survey, it can
be said that growing demand in local and in export markets both stimulated local production
and imports.
In this section, EU imports are discussed by product group. For information on imports per
product group in individual member states, please refer to the CBI sector surveys covering the
household and furnishing textiles market in individual EU countries. Unfortunately, the value of
re-exports of the product groups cannot be given by means of Eurostat.
Blankets and travelling rugs that saw the largest growth between 2004-2008, were:
1) Knitted, made of other materials,
2) Knitted, made of synthetics,
3) Knitted, made of wool and hair,
4) Knitted, made of cotton.
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Page 28 of 50
THE HOUSEHOLD AND FURNISHING TEXTILES MARKET IN THE EU
Table 4.2 Leading suppliers of blankets and travelling rugs to the EU, 2004- 2008,
share in % of value
Product 2004 2006 2008 Leading suppliers in 2008 Share
€ mln € mln € mln (share in %) (%)
Blankets and 152 139 159 Intra EU Germany (8.9), Spain (3.4), Belgium 37
travelling rugs (2.9), Portugal (2.8), Italy (2.7)
7 5 6 Extra EU ex DC Hong Kong (0.4), USA (0.2), South Korea 1.3
(0.2), Switzerland (0.2), Norway (0.1)
198 271 270 DC China (51), India (5.7), Turkey (3), 62
Thailand (0.6), Pakistan (0.6), Croatia
(0.3), Peru (0.2), Vietnam (0.1), Egypt
(0.1), South Africa (0.1)
Source: Eurostat (2009)
Bed linen
Between 2004 and 2008, EU-imports annually increased in value by an average of 3.3%. The
largest importers in 2008 were Germany, the UK and France, accounting for 52% of total EU
imports. Imports to Romania (+49%), Bulgaria (+44%) and Latvia (+40%) accounted for the
largest growth figures. The top three leading suppliers were Pakistan, China and Turkey. Total
intra-EU supply and extra EU supply remained virtually stable between 2004 and 2008 and
total DC supply grew by 5.7%.
Bed linen that saw the largest growth between 2004-2008, were:
1) Woven/printed, made of cotton,
2) Woven/not printed of cotton,
3) Knitted,
4) Woven/not printed, made of flax or ramie
Table 4.3 Leading suppliers of bed linen to the EU, 2004- 2008,
share in % of value
Product 2004 2006 2008 Leading suppliers in 2008 Share
€ mln € mln € mln (share in %) (%)
Bed linen 897 908 894 Intra EU Portugal (5.3), Germany (4.7), Belgium 36
(4), Spain (2.9), France (2.8)
49 57 51 Extra EU ex DC Switzerland (0.8), Israel (0.7), UAE (0.1), 2.1
Canada (0.1), USA (0.1)
1,214 1,377 1,516 DC Pakistan (21), China (11), Turkey (11), 62
Bangladesh (6.4), India (5.9), Egypt
(1.6), Moldova (1.2), Tunisia (1.1),
Indonesia (0.4), Vietnam (0.3)
Source: Eurostat (2009)
Table linen
Between 2004 and 2008, EU imports remained virtually stable on an annual basis. The largest
importers in 2008 were Germany, France and Italy, accounting for 51% of total EU imports.
Imports to Romania (+33%), Latvia (+30%) and Poland (+27%) accounted for the largest
growth figures. The top three leading suppliers were China, India and Turkey. Total intra-EU
supply and extra EU supply decreased by 2.6% and 6.3% respectively, while total DC supply
remained virtually stable.
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Page 29 of 50
THE HOUSEHOLD AND FURNISHING TEXTILES MARKET IN THE EU
Table linen that saw the largest growth between 2004-2008, were:
1) Woven, made of cotton,
2) Made of textile materials (excl. cotton, flax or man made fibres, knitted or crocheted)
3) Made of flax.
Table 4.4 Leading suppliers of table linen to the EU, 2004- 2008,
share in % of value
Product 2004 2006 2008 Leading suppliers in 2008 Share
€ mln € mln € mln (share in %) (%)
Table linen 192 173 172 Intra EU Germany (7.1), Belgium (5.3), Poland 38
(3.3), Italy (2.9), Portugal (2.6)
7 8 6 Extra EU ex DC Russia (0.5), Switzerland (0.3), USA 1.2
(0.2), Taiwan (0.1), Hong Kong (0.1)
270 270 277 DC China (22), India (20), Turkey (7.2), 61
Tunisia (3.1), Pakistan (2.4), Egypt (1.9),
Belarus (0.9), Croatia (0.7), Vietnam
(0.7), Bangladesh (0.4)
Source: Eurostat (2009)
Bathroom and kitchen linen that saw the largest growth between 2004-2008, were:
1) Woven, made of cotton (other than towelling)
2) Made of textile materials (excl. of cotton, flax or man-made fibres, floor cloths,
polishing cloths, dishcloths and dusters)
3) Woven, made of flax
Table 4.5 Leading suppliers of bathroom and kitchen linen to the EU, 2004- 2008,
share in % of value
Product 2004 2006 2008 Leading suppliers in 2008 Share
€ mln € mln € mln (share in %) (%)
Bathroom and 519 504 521 Intra EU Portugal (8.6), Belgium (6.7), Germany 35
kitchen linen (4.1), the Netherlands (3.5), France (1.7)
33 39 35 Extra EU ex DC Israel (1.2), Switzerland (0.3), South 2.3
Korea (0.2), Russia (0.1), Taiwan (0.1)
767 865 945 DC Turkey (24), China (13), Pakistan (9.4), 63
India (7.7), Egypt (3.6), Bangladesh
(1.5), Brazil (1.1), Indonesia (0.8),
Colombia (0.5), Tunisia (0.2)
Source: Eurostat (2009)
Curtains
Between 2004 and 2008, EU imports annually increased in value by an average of 3.3%. The
largest importers in 2008 were Germany, the UK and France, accounting for 50% of total EU
imports. Imports to Romania (+45%), Lithuania (+40%) and Bulgaria (+34%) accounted for
the largest growth figures. The top three leading suppliers were China, Turkey and Germany.
Total intra-EU supply grew by 1.6% in value per year between 2004 and 2008, extra EU supply
declined by 4.1% and total DC supply grew by 5.2%.
Source: CBI Market Information Database • URL: www.cbi.eu • Contact: marketinfo@cbi.eu • www.cbi.eu/disclaimer
Page 30 of 50
THE HOUSEHOLD AND FURNISHING TEXTILES MARKET IN THE EU
Bedspreads
Between 2004 and 2008, EU imports annually declined in value by an average of 2.8%. The
largest importers in 2008 were France, Spain and the UK, accounting for 47% of total EU
imports. Imports to Slovakia (+53%), Romania (+41%) and Slovenia (+40%) accounted for
the largest growth figures. The top three leading suppliers were India, China and Portugal.
Total intra-EU supply and total DC supply decreased in value per year by 5.4% and 1.5%
respectively between 2004 and 2008, while extra EU supply remained virtually stable.
Bed spreads that saw the largest growth between 2004-2008, were:
1) Knitted,
2) Woven, made of cotton.
Table 4.7 Leading suppliers of bed spreads to the EU, 2004- 2008,
share in % of value
Product 2004 2006 2008 Leading suppliers in 2008 Share
€ mln € mln € mln (share in %) (%)
Bed spreads 59 53 47 Intra EU Portugal (7.8), Spain (4.2), Belgium (2.7), 32
Germany (2.7), France (2.4)
1 1 1 Extra EU ex DC USA (0.1), Hong Kong (0.1), Switzerland 0.4
(<0.05), Israel (<0.05), Taiwan (<0.05)
107 119 101 DC India (34), China (26), Turkey (2.5), 68
Pakistan (2.1), Moldova (0.6), Egypt
(0.5), Brazil (0.3), Bosnia and
Herzegovina (0.3), Vietnam (0.3), Mexico
(0.2)
Source: Eurostat (2009)
Source: CBI Market Information Database • URL: www.cbi.eu • Contact: marketinfo@cbi.eu • www.cbi.eu/disclaimer
Page 31 of 50
THE HOUSEHOLD AND FURNISHING TEXTILES MARKET IN THE EU
the largest growth figures. The top three leading suppliers were China, India and Germany.
Total intra-EU supply increased by 2.8% in value per year between 2004 and 2008, extra EU
supply declined by 6.9% and total DC supply grew by 5.8%.
Other furnishing articles that saw the largest growth between 2004-2008, were:
1) Knitted,
2) Woven, made of synthetics.
Table 4.8 Leading suppliers of other furnishing articles to the EU, 2004- 2008,
share in % of value
Product 2004 2006 2008 Leading suppliers in 2008 Share
€ mln € mln € mln (share in %) (%)
Other furnishing 232 244 258 Intra EU Germany (11), Belgium (4.1), Poland (4), 38
articles Portugal (3.2), Romania (2.1)
7 10 5 Extra EU ex DC USA (0.2), Switzerland (0.1), Norway 0.8
(0.1), Taiwan (0.1), Hong Kong (0.1)
336 387 420 DC China (28), India (11), Tunisia (6.4), 61
Turkey (5.4), Morocco (4.8), Vietnam (2),
Pakistan (1.6), Croatia (0.4), Ukraine
(0.4), Serbia (0.4)
Source: Eurostat (2009)
In this section, the role of DCs is discussed. For information on imports per product group in
individual member states, please refer to the CBI market surveys covering the household and
furnishing textiles market in individual EU countries.
Household textiles
Table 4.9 shows that EU imports of household textiles from DCs grew at an average annual
rate of 5.3% in value in the period 2004-2008, which is faster than the average annual growth
of 3.0% for total EU imports. DCs realised an increasing share in EU imports, from 57% in
2004 to 62% in 2008.
Germany, the UK, France, the Netherlands, Italy and Spain together account for more than
75% of total DC imports. Latvia (+63%) saw the largest growth in DC imports, followed by
Romania (+46%), Slovakia and Estonia (+42%). The countries that saw the largest growth in
the DC share of total imports were Latvia, Estonia and Austria. Countries that saw a decrease
in the DC share of total imports were Ireland, Luxembourg, Lithuania, Hungary and Slovenia.
As can be seen in Table 4.9, CEE countries imported far fewer household textiles from DCs
than Western European countries, but did show the largest annual growth. The share of DCs in
total imports was the largest in total bed linen (31%).
Source: CBI Market Information Database • URL: www.cbi.eu • Contact: marketinfo@cbi.eu • www.cbi.eu/disclaimer
Page 32 of 50
THE HOUSEHOLD AND FURNISHING TEXTILES MARKET IN THE EU
Furnishing textiles
Table 4.10 shows that EU imports of furnishing textiles from DCs grew at an annual rate of
4.7% in value in the period 2004-2008, which is larger than the average annual growth rate of
3.2% for total EU imports. DCs realised an increasing share in EU imports, from 55% in 2004
to 59% in 2008. The UK, Germany and France together accounted for almost 55% of total DC
imports. Slovakia (+91%) saw the largest growth in DC imports, followed by Slovenia (+82%)
and Latvia (+74%). The countries that saw the largest growth in the DC share of total imports
were Latvia, Slovakia and Lithuania. Countries that saw a decrease in the DC share of total
imports were Ireland, Portugal, Luxembourg, Estonia, Hungary and Cyprus. As can be seen in
Table 4.10, CEE countries imported far fewer furnishing textiles from DCs than Western
European countries, but these countries did show the largest annual growth. The share of DCs
in total imports was the largest in total curtains (32%).
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Page 33 of 50
THE HOUSEHOLD AND FURNISHING TEXTILES MARKET IN THE EU
The product with the highest growth of DC share in EU imports was curtains; non-woven,
made of synthetics (+255%). No other products showed a comparable growth in DC share.
4.4 Exports
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Page 34 of 50
THE HOUSEHOLD AND FURNISHING TEXTILES MARKET IN THE EU
• Bathroom and kitchen linen: 28% of total. Annual decrease in export value of 1.2%.
EU27 ran trade deficits (more imports than exports) in all product groups: blankets and
travelling rugs (€ 185 million), bed linen (€ 1.1 billion), table linen (€ 188 million) and
bathroom and kitchen linen (€ 780 million).
Portugal was by far the largest exporter, accounting for more than 17% of total EU exports,
followed by Belgium (13%), Germany (11%) and Italy (10%). With the exception of Poland,
the Czech Republic and Romania, CEE countries were only small exporters of household
textiles with most countries accounting for just 1.0% of total EU exports.
The EU27 also ran trade deficits in all product groups: in curtains (€ 486 million), bedspreads
(€ 66 million) and other furnishing articles (€ 297 million).
Germany was by far the largest exporter, accounting for 19% of total EU exports, followed by
Poland (13%) and Belgium and France (both 8.0%). Of the CEE countries, Poland and the
Czech Republic were particularly important exporters, accounting for 13% and 5.0%
respectively of total EU exports.
The statistics clearly show that producers in CEE countries have a stronger foothold on the EU
export market for furnishing textiles than on the EU export market for household textiles.
Unfortunately, the exact value of re-exports cannot be given by means of Eurostat.
Trends and market developments offer opportunities and threats to exporters. A given trend
can be a threat to some and an opportunity to others at the same time. The following trends
should, therefore, always be analysed in relation to your specific circumstances.
+ EU demand clearly exceeds EU production and, therefore, depends on imports from
outside the EU to meet this demand. This offers good opportunities for DCs.
+ Although EU demand for household textiles slightly decreased, EU imports of household
textiles increased on average by 3.0%. Imports from DCs grew even faster, by 5.3%
per year.
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Page 35 of 50
THE HOUSEHOLD AND FURNISHING TEXTILES MARKET IN THE EU
+ EU imports of furnishing textiles from DCs grew by 4.7% per year. This is larger than
the average annual growth rate of 3.2% for total EU imports of furnishing textiles and
also larger than the growth rate of EU demand (4.0%).
+ DCs realised an increasing share in EU imports of household textiles (from 57% in 2004
to 62% in 2008) and in EU imports of furnishing textiles (55% in 2004 to 59% in 2008).
+ Imports of household and furnishing textiles in most CEE countries showed a large
increase.
+ China’s leading position is expected to decrease due to increasing production costs.
+ It is expected that imports from DCs will grow faster than total imports in the coming
years, mainly to the detriment of other (EU and non-EU) countries.
± China, India, Turkey and Pakistan are important suppliers for all product groups and
other countries face tough competition from these countries when targeting the EU
market.
With the help of the following links it is possible to make your own tailor-made query:
• EU Expanding Exports Helpdesk - http://exporthelp.europa.eu Î go to: trade statistics
• Eurostat - official statistical office of the EU - http://epp.eurostat.ec.europa.eu Î go to
‘themes’ on the left side of the home page Î go to ‘external trade’ Î go to ‘data - full
view’ Î go to ‘external trade - detailed data’.
• Understanding Eurostat: Quick guide to easy comext Î
http://epp.eurostat.ec.europa.eu/newxtweb/assets/User_guide_Easy_Comext_20080117.p
df
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Page 36 of 50
THE HOUSEHOLD AND FURNISHING TEXTILES MARKET IN THE EU
5 Price developments
Several factors influence price setting in the household and furnishing textiles market:
• First, it depends on the product. Is the product different from other products, does the
product have innovative characteristics? Is the product a high value product with high
design characteristics? High value products sell at a higher price than mainstream
products.
• The US$:€ exchange rate may influence price settings in the EU.
• Increasing supply and global sourcing of household and furnishing textiles put pressure on
manufacturers and margins throughout the value chain.
• Cost prices in the manufacturing industry are constantly rising and there is an oversupply
situation for some product groups because markets in the EU are growing at a slower pace
or, in some cases, even decreasing.
The market for household and furnishing textiles in EU countries is intensively competitive and
prices vary widely according to the product and type of outlet. EU household and furnishing
textiles retail prices grow more slowly than overall prices. Due to the diversity in products, it is
not possible to focus on the prices of individual products. Table 5.1 gives an overview of the
developments of consumer prices of household textiles between 2004 and 2008 and import
prices in the individual EU countries.
Table 5.1 Inflation rate and import prices of household and furnishing textiles
in the EU, 2004-2008
Price developments
CAGR Import prices
consumer Prices CAGR Prices CAGR
prices Household Household Furnishing Furnishing
Household textiles textiles textiles textiles
textiles* (’08) (’04-’08) (’08) (’04-’08)
(’04-’08) (in € per (in %) (in € per (in %)
(in %) kg) kg)
EU27 stable 5,00 -4.6 7,20 -1.6
Austria +1.0 7,40 +1.0 10,40 -4.7
Belgium +1.8 5,70 -2.7 11,50 +6.9
Bulgaria +1.8 4,80 +11 5,00 +9.5
Cyprus Stable 5,20 -2.6 5,70 -2.4
Denmark +1.0 6,00 -1.5 7,00 -3.7
Estonia +3.9 7,80 +52 8,40 +4.2
Finland +1.0 7,40 -2.0 9,00 -2.1
France Stable 6,60 -1.3 9,80 +3.1
Germany Stable 5,90 -2.0 7,40 -4.5
Greece +1.7 4,80 -2.1 5,20 -8.9
Hungary +1.0 5,10 +25 7,60 +3.8
Ireland - 7,70 stable 12,50 -1.0
Italy +1.0 4,80 stable 5,90 -3.1
Latvia +1.0 5,00 -2.2 7,70 +1.7
Lithuania Stable 5,20 +1.3 9,30 -1.1
Luxembourg +1.0 n/a n/a n/a n/a
Malta Stable 5,30 -15 6,90 -5.4
Poland Stable 4,30 +1.0 7,00 -3.2
Portugal Stable 6,10 -5.0 7,10 -5.8
Romania +3.4 1,80 +18 4,00 +13
Slovakia Stable 1,40 +5.6 2,60 +2.0
Slovenia +2.0 7,00 stable 12,00 +1.3
Spain +2.3 5,30 -4.7 7,20 stable
Sweden -4.6 5,30 -4.3 7,20 -1.2
The Czech Republic Stable 5,20 +2.0 14,90 +14
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Page 37 of 50
THE HOUSEHOLD AND FURNISHING TEXTILES MARKET IN THE EU
Price developments
CAGR Import prices
consumer Prices CAGR Prices CAGR
prices Household Household Furnishing Furnishing
Household textiles textiles textiles textiles
textiles* (’08) (’04-’08) (’08) (’04-’08)
(’04-’08) (in € per (in %) (in € per (in %)
(in %) kg) kg)
The Netherlands +1.0 2,40 -20 8,30 stable
The UK -3.4 4,60 -7.1 5,00 -3.8
* Consumer prices of furnishing textiles are not available.
Source: Eurostat (2009)
Although price is not the only marketing tool for exporting household and furnishing textiles to
EU markets, it is certainly a very important one. Concentration of buying power, increasing
supply and global sourcing of textiles put pressure on processes and margins throughout the
value chain. Exporters should:
• Have a clear insight into their cost prices for exports to EU markets in order to set a
minimum selling price. At least all variable costs and part of the fixed costs should be
covered by the selling price. If the market price is lower than the minimum selling price,
money could easily be lost. Although this could be acceptable for individual orders in order
to prevent larger losses (stock losses), this situation would undermine the financial stability
of the company in the longer term.
• Try to ensure efficiencies in operations in order to decrease cost prices, for example:
reduction of stocks, more efficient production runs, negotiate lower purchase prices for raw
materials and packing materials.
There are a number of ways of obtaining information on the prices of household and furnishing
textiles in the EU, depending on whether you want to find out about manufacturer prices,
wholesale or retail prices:
• To see how the same product compares across different EU countries, you may be best
served by looking at the websites or catalogues of retailers (who are also sometimes
manufacturers) who have a presence in a number of EU countries, and by visiting the
individual country sites. An example of this is shown in Appendix C. This Appendix gives an
overview of the differences in prices in individual EU countries of household and furnishing
textiles at Ikea (2009). Addresses of retailers can be found in the CBI market surveys
covering the household and furnishing textiles market in individual countries.
• A good way of obtaining information on prices and price levels in the EU is by visiting one
of the major trade fairs or trade centres. You can find out about manufacturer or wholesale
prices by contacting a manufacturer or a wholesaler. They may not always be prepared to
discuss prices openly, but looking at both sets of prices will also give you an idea of
margins. However, you should always ensure that you are comparing the same thing.
Some products may appear to be similar, but there may well be very sound reasons why
their prices differ.
• Shopping in the prospective market place at several retail shops is another good way of
obtaining information on prices at retail or consumer level, but also on fashion, colours and
qualities.
• Alternatively, an impression of average prices in EU countries can be formed by browsing
through the catalogues of home shopping companies on the internet, for instance
• http://www.neckermann.de; http://www.wehkamp.nl; http://www.otto.de and
http://www.laredoute.fr. All prices in these catalogues are given in Euros (€).
• E-marketplaces for home furnishings show the prices of competitive manufacturers -
http://www.textilefurnishings.com or http://www.teonline.com.
• Prices charged by competitors can be found by browsing their Internet sites or looking for
general sites such as http://www.globalsources.com or http://www.alibaba.com.
• Trade press (refer to ‘From survey to success – export guidelines’).
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Page 38 of 50
THE HOUSEHOLD AND FURNISHING TEXTILES MARKET IN THE EU
There is no official quality standard for household and furnishing textiles in the European
Union. Despite EU harmonisation, which enables free trade between EU member states,
individual markets have different requirements regarding quality, types of fabric, sizes and
colours. Accurate information is best obtained from national importers. Most importers
(manufacturers, wholesalers, retail organisations etc.) work with certain minimum
requirements. In this respect, they have formulated and stipulated minimum quality
requirements, relating to both materials and make. In general, a distinction can be made
between:
• Characteristics of fabrics, which are detectable by an experienced person, with or without
the aid of instruments in general use. It is considered to be a fault if an irregularity is
evident in the fabrics of the final product;
• Characteristics of fabrics, which can only be noted with the aid of suitable equipment. Each
characteristic described comprises: definition, method of testing and minimum quality
standards and, as far as it occurs: possible allowable tolerances compared with the values
of the sample and eventual commercial implications.
Methods of testing fabrics and/or ready-made products are mainly based on ISO standards and
otherwise on European norms (EN) or national standards (DIN, NEN or BS, for
Germany, the Netherlands and the UK respectively), such as:
• Care labelling (ISO 3758);
• Dimensional stability aspects, such as washing/tumbling (ISO 3759, 5077 and 6330), dry
cleaning (ISO 3175);
• Mechanical and physical properties such as tensile strength strip (ISO 5081), tensile
strength grab (ISO 5082), tear strength (ISO 9290), abrasion resistance (EN 22313),
crease tendency/recovery (ISO 9867), pilling tendency (BS 5811) and fibre penetration
(SIS 650047).
• Colour fastness to several aspects, such as washing, light and water (ISO 105).
Packaging
Information on packaging legislation is included in the CBI market information database.
Additional information on packaging can be found on the ITC website under export packaging:
http://www.intracen.org/ep/packaging/packit.htm.
Care must be given to the packaging of products if one intends to export to EU countries. It is
obvious that the packaging must be travel-steady. As required, products should also be
protected against the elements, changes in temperature and rough handling. Besides these
basics of travel- and handle-durability, some importers may have specific demands concerning
packaging, such as information concerning the order printed on the boxes (order number, box
number, name department or contact person etc.). In all cases, exporters in DCs are advised
to contact importers on the methods of packing preferred in the country of import and should
anticipate including the cost of special packaging into their price.
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Page 39 of 50
THE HOUSEHOLD AND FURNISHING TEXTILES MARKET IN THE EU
Labelling
There are two kinds of requirements in the EU: mandatory and voluntary. The mandatory
requirement for all EU countries concerns the fibre content and care-labelling.
Care-labelling/washing instructions
An international textiles care-labelling programme was updated in April 2005 according to ISO
3758 and is valid worldwide. The programme makes use of basic symbols which are colour-
coded; the symbols relate to washing processes, the properties of colour fastness, dimensional
stability, effect of retained chlorine (bleach), maximum safe ironing temperatures and certain
other properties. Symbols as published by Ginetex are obligatory in the EU
(http://www.sartex.ch/en/textilkennzeichnung/pflegekennzeichnung/pflegesymbole).
In general, import tariffs vary between 0 and 12% (refer to Table 3.1). Information on tariffs
and quotas can be found at http://exporthelp.europa.eu.
For more information, please refer to the CBI document ‘Packaging, size marking and labelling:
household and furnishing textiles’. This can be downloaded from
http://www.cbi.eu/marketinfo.
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Page 40 of 50
THE HOUSEHOLD AND FURNISHING TEXTILES MARKET IN THE EU
7 Opportunity or threat?
An overview of the general opportunities and threats was given at the end of the previous
chapters: Demand (Chapter 1), Production (Chapter 2) and Trade (Chapter 4) in this EU
survey. Specific opportunities in each national EU market can be found in Chapters 1 and 3 of
the CBI sector surveys for household and furnishing textiles. However, to make the
opportunities more realistic, it is important to know the trends, in particular in the household
and furnishing textiles industry. Once the trend is clear, it is important to know which target
group in which country is involved.
Remember that a given trend may offer opportunities to one company, but is a threat to
another. Exporters should therefore analyse if the trends discussed provide opportunities or
threats. The outcome of this analysis depends on an exporter’s specific situation. For example,
there is a growing demand for natural fibres in the household textiles sector. This offers an
interesting opportunity for DC producers of household textiles made of natural fibres. At the
same time, this is a threat for DC producers of household textiles who are not able to offer
household textiles made of natural fibres.
Furthermore, you should be aware that not everybody follows trends. For every trend there is
a counter trend which presents untapped growth opportunities, as well as potential threats. It
is important to know that trends are firstly picked up in Western and Northern EU countries.
The twelve new member states lag behind the others in terms of the adoption of new trends or
developments. However their integration into the EU has meant that this process will be
speeded up, encouraged by media and by internationally operating chains.
Market intelligence is one aspect, but on the other hand, it is important to know the
capabilities, strengths and weaknesses of your company. For more information on how to
become a successful exporter to the EU, refer to the CBI’s ‘From survey to success. Guidelines
for exporting household and furnishing textiles to the EU’
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Page 41 of 50
THE HOUSEHOLD AND FURNISHING TEXTILES MARKET IN THE EU
Product groups
Large quantities, and a huge variety, of textiles are used in an interior environment (home,
office, hotel, etc.). In most publications, a distinction is made between household and home or
interior textiles. The term home textiles is much broader, and besides household and
furnishing textiles, also includes floor-covering textiles, filling materials used in duvets, quilts,
pillows, sleeping bags and mattresses. However, these products are not discussed in this
survey. The following classification is used in this survey:
Although reference will be made to the contracting sector (household and furnishing textiles
for hotels, offices, hotels, public buildings, sport and holiday accommodation etc.) the main
focus of this survey is textiles bought by consumers.
Blankets
Most blankets and travelling rugs used as a covering for warmth, especially on a bed, are
woven but other production methods which can provide comparable insulation at lower costs
are also popular. These are: raschel knit or thermal blankets, needle punched non-wovens
(finished by napping) and flocked blankets. Small blankets (also indicated as throws) with
typical sizes of 50x60 inches or 130x160 centimetres are used for both decorative and
functional purposes. Popular fleece blankets of these sizes are offered in not-printed, printed,
embroidered etc.
Bed linen
In terms of value, this is certainly the most important market for household textiles. The
functions of bed linen are to protect the bedding, to enhance "sleeping pleasure" and an
aesthetic appeal. The most important development concerning bedroom linen in recent
decades has been the introduction of the eiderdown also referred to as duvet, or quilt
(together with the quilt cover). Quilt covers have replaced the upper sheets in most Western
European homes. The quilt cover has much more potential for fashion expression than sheets.
An exporter wishing to compete in this category must also be prepared to compete in fashion
terms. Pure cotton fabric is mainly preferred for all types and categories of bed linen;
polyester-cotton is considerably less popular, although its advantage is its shrink resistance
and durable qualities.
Other textile fabrics such as silk account for a minor percentage of the total market. In
decreasing degree of importance, the following types can be distinguished:
• Flat (non-raised) bed linen. Main characteristics are: light in weight; feels fresh and clean;
feels cool and has little volume in a washing machine. Flat types can be made of sheeting,
shirting, poplins, batist, satin and damask. Demand of normal/traditional sheets has
decreased sharply (with the exception of hospitals and hotels). Stretch-fitted undersheets
have replaced traditional types.
• Terry bed linen: mainly single jersey terry, knitted on circular knitting machines. Terry bed
linen mostly has 80% cotton for the piles and 20% synthetics for the back. Characteristics
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Page 42 of 50
THE HOUSEHOLD AND FURNISHING TEXTILES MARKET IN THE EU
are: absorbent and "airy"; easy care (no ironing); as a knitted product, it is elastic
(stretch) so that it can be used for fitted sheets suitable for different sizes of mattresses.
• Jersey bed linen is made on a single jersey circular knitting machine. Compared to terry
bed linen, the jersey bed linen has no loops. Characteristics: very supple; absorbent and
"airy"; very easy to care and looks elegant.
• Flannelette (flannel), brushed or raised bed linen made of bulky yarns and brushed on both
sides, giving a raised surface. Main characteristics are: gives warmth and easy care (no
ironing).
• Seersucker bed linen is a special weaving technique and gives an irregular surface texture -
no ironing is necessary. The irregular seersucker effects can also be obtained by printing
techniques. This cotton bed linen is lightweight and suitable for warmer seasons or heated
bedrooms.
The sizes of bed linen depend on the sizes of the beds (children’s beds, single beds, ‘king size’
single beds, double beds and twin beds) and the mattresses on the beds. The development in
the heights of mattresses in the last decade is an important point. Heights of 12 cm are
increasingly being replaced by heights of 15 cm and even 20 cm. The average height for fitted
sheets in the middle market (and higher) is 18 cm. In the higher segments of the market, the
length of bed linen has increased from the standard sizes 200 and 220 to 240 cm.
Bathroom linen
The most common bathroom textile product is a terry towel. Types of towels and mostly used
sizes in centimetres are: face (30x30), guest (30x50), hand (50x90 or 60x100), bath
(70x140) and bath or beach sheet (100x150). The most important differences are based on
end-use, which dictates the different sizes. Other bath products are washing gloves, bath rugs
and bath mats. Towels are mainly made of terry cloth (non-cut loops). Terry is absorbent, has
a light massage effect, is strong, durable and easy to wash. In recent years, the quantity of
high-quality terry material in the market has constantly increased. The trend is in the direction
of more and heavier, voluminous and softer qualities.
Bath towels and towels for other purposes are made of cotton. New developments include
blends of cotton with other fibres to obtain softer feeling, faster drying and more brilliance.
Besides households, hotels and hospitals are the main consumers. The necessity of regular
washing makes quality and colour fastness vitally important.
Kitchen linen
A decrease in the use of tea towels has been greatly influenced by the fact that increasingly
more households are using automatic dishwashers, so that hand-drying is no longer necessary.
In the kitchen, two types of towels are used: kitchen towels, made of terry or flat woven and
dish or tea towels, only flat woven. Dish or tea towels are made of cotton. Check patterns are
still the most popular for tea towels.
Table linen
Belonging to the group of table linen are: tablecloths, table-covers, table-centres, table
runners and napkins. The tablecloth has two functions: protection of the table and decoration
(aesthetic appeal). It is difficult to get hold of accurate figures on table napkins separately, as
they are almost always sold in a set matching the tablecloth, particularly in the case of
expensive quality. White, with or without self-print and single coloured plain, with or without
self-print are most commonly used for table linen. It is important for exporters to follow
changes in taste, colour, material and texture.
There is a definite decline in the daily use of the textile tablecloth, but an increase in attractive
kitchen items, such as dish towels, terry towels, warmers, place mats etc. Very often, the
textile napkin is being replaced by a cellulose one, increasing the possibility of colour variations
in combination with the tablecloth, the table top and/or the candles, thereby decreasing the
laundry duty.
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THE HOUSEHOLD AND FURNISHING TEXTILES MARKET IN THE EU
There is an enormous offer as to types, sizes, forms, materials, colours and designs. Materials
can be flat, structured, printed, dobby, jacquard, embroidered, damask with all kinds of
adornments and decorations. Table linen is mostly made of cotton. Material other than cotton,
are 100% polyester (easy to launder/wash) and 50% polyester/50% cotton or viscose and the
more luxurious textile fibres such as silk. The market share of pure cotton has so far remained
relatively stable.
Window coverings
The function of window coverings is various: provide privacy, eliminate (sun-) light, insulation
purposes (thermal, acoustic), aesthetic effects etc. The more open the fabric construction, like
net or lace curtains, the greater the visibility of outside view and light penetration, but there is
less privacy. In this case, the decorative function has the highest priority.
Textiles for indoor window coverings can be divided into the following categories:
• Draperies, which are generally made of heavy fabrics, such as velvet, satin, opaque and
jacquard. They usually have a lining and are hung from hooks.
• Curtains are relatively sheer and lightweight and are in most cases hung without linings.
• Lace or net curtains adorn the window frame in houses. The major fibre used for net
curtains is polyester filament. Other fibres are polyester staple and acrylic staple.
• Shades are a soft covering, take less space than curtain and draperies and come in fabric
and a variety of other materials.
• Blinds are similar to shades and are generally made of vinyl, fabric or wood. They can be
either horizontal or vertical and can be adjusted to regulate the amount of light during the
day and give privacy during the night.
Curtains are largely sold ready-made in lengths which fit the standard window sizes and
several heights. However, buying curtain fabrics to sew one's own curtains or letting an
interior decoration firm make them up is not uncommon - usually this applies to expensive
materials (e.g. for offices).
Curtains and draperies are made from all types of fibres and fabric constructions, however,
most curtains are made of synthetic fabrics. This is because cotton curtains require ironing
after washing, they are heavy and thus inconvenient in handling. There is also a market for
expensive fibres such as silks, but it is fairly limited because of pricing and handling
restrictions.
There is still a market for curtain fabrics for home sewing besides curtains sewn and fitted by
professional curtain makers. The latter are often employed by home furnishing retailers or
interior decorating firms.
Bedspreads
A bedspread may be defined as an outer covering, mainly woven cotton (for example: waffle
throw or rib), from blends (poly-cotton 50/50), but can also be made of synthetic materials.
Excessively stiff fabrics should be avoided, since they do not drape well over a bed.
The first set is derived from Prodcom. The term Prodcom is derived from PRODucts of the
European COMmunity. This is a survey based on products whose definitions are standardised
across the EU to allow comparability between the member countries’ data. Prodcom covers
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THE HOUSEHOLD AND FURNISHING TEXTILES MARKET IN THE EU
some 4,800 products which are assigned to some 250 industries (subclasses) as defined by the
Standard Industrial Classification (SIC). Prodcom data contain production statistics.
The second set is the trade data based on the Combined Nomenclature (CN) and contains the
goods classification prescribed by the EU for international trade statistics. The CN is an 8-digit
classification consisting of a further specification of the 6-digit Harmonised System (HS). HS
was developed by the World Customs Organisation (WCO). The system covers about 5,000
commodity groups, each identified by a six-digit code. More than 179 countries and economies
use the system.
Based on the above data, apparent demand can be calculated as follows: apparent demand =
production + imports – exports.
In the case of intra-EU trade, statistical surveying is only compulsory for exporting and
importing firms whose trade exceeds a certain annual value. The threshold varies considerably
from country to country, but it is typically about € 100,000. As a consequence, although
figures for trade between the EU and the rest of the world are accurately represented, trade
within the EU is generally underestimated. Furthermore, the information used in CBI market
surveys is obtained from a variety of sources. Therefore, extreme care must be taken in the
qualitative use and interpretation of quantitative data, it puts limitations on in-depth
interpretation of relations between demand, production and trade figures within one country
and between different countries.
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Page 45 of 50
THE HOUSEHOLD AND FURNISHING TEXTILES MARKET IN THE EU
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THE HOUSEHOLD AND FURNISHING TEXTILES MARKET IN THE EU
The European Union (EU) is the current name for the former European Community. In
January 1995 the EU consisted of 15 member states. Ten new countries joined the EU in May
2004. In January 2007 two more countries – Bulgaria and Romania - joined the EU.
Negotiations are in progress with a number of other candidate member states. In this survey,
the EU is referred to as the EU27, unless otherwise stated.
Cultural awareness is a critical skill in securing success as an exporter. The enlargement of the
EU has increased the size of the EU, and also significantly increased its complexity. With more
people from culturally diverse backgrounds, effective communication is necessary. Be aware of
differences in respect of meeting and greeting people (use of names, body language etc.) and
of building relationships. There are also differences in dealings with hierarchy, presentations,
negotiating, decision making and handling conflicts. More information on cultural differences
can be found in Chapter 3 of CBI’s export manual ‘Exporting to the EU (2006)’.
In CBI market surveys, the Euro (€) is the basic currency unit used to indicate value.
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THE HOUSEHOLD AND FURNISHING TEXTILES MARKET IN THE EU
Table 4.2 Overview of retail prices, including VAT, of some selected products of household and furnishing textiles at Ikea
in Europe (in €*), 2009
product product price Germany price the price the UK price France price Belgium price Spain price price Italy
group Netherlands Sweden
bath linen towel 0.99 – 16.99 1.00 – 9.99 3.49 – 16.33 1.99 - 14.95 1.50 – 6.99 1.50 – 15.95 0.97– 9.61 0.69 – 8.99
bed linen bedspread 3.99 – 35.00 7.99 - 29.95 4.19 – 40.84 4.99 – 39.00 4.99 – 29.95 4.50 – 29.95 3.79 – 33.88 5.99 – 37.95
plaid 1.49 – 29.99 4.00 - 39.95 1.97 – 46.68 2.50 – 29.00 1.99 – 49.95 3.99 – 49.95 1.46 – 29.03 3.99 – 24.95
table linen table 9.00 – 22.00 4.99 – 19.95 5.82 – 26.84 4.99 – 9.99 5.99 – 24.95 5.99 – 24.95 5.73 – 25.14 1.99 – 24.95
cloth
kitchen tea towel 2.00 – 6.00 1.99 - 5.99 1.86 – 5.36 2.99 – 5.99 2.99 – 5.99 1.99 – 5.99 2.82 – 5.73 2.99 – 5.99
linen
furnishings curtains 3.99 – 69.00 3.99 – 69.95 4.66 – 75.87 3.99 – 65.00 3.99 – 59.90 4.99 – 69.90 3.79 – 63.00 4.99 – 65.00
(set of 2)
Source: http://www.ikea.com (2009)
* Used conversion rates are 1£ = 1.17€ and 1kr = 0.10€
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THE HOUSEHOLD AND FURNISHING TEXTILES MARKET IN THE EU
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THE HOUSEHOLD AND FURNISHING TEXTILES MARKET IN THE EU
CBI supports exporters in the following Asian, African, Latin American and European (Balkan)
countries:
Afghanistan
Albania
Armenia
Bangladesh
Benin
Bolivia
Bosnia-Herzegovina
Burkina Faso
Burundi
Colombia
Ecuador
Egypt
El Salvador
Ethiopia
Georgia
Ghana
Guatemala
Honduras
India
Indonesia
Jordan
Kenya
Kosovo
Macedonia
Madagascar
Mali
Moldova
Montenegro
Morocco
Mozambique
Nepal
Nicaragua
Pakistan
Peru
Philippines
Rwanda
Senegal
Serbia
South Africa
Sri Lanka
Suriname
Tanzania
Thailand
Tunisia
Uganda
Vietnam
Zambia
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Page 50 of 50