2009 20EU20survey20Woven20outerwear1

CBI MARKET SURVEY:
THE WOVEN OUTERWEAR MARKET IN THE EUROPEAN UNION
THE WOVEN OUTERWEAR

MARKET IN THE EU
October 2009
CONTENTS
REPORT SUMMARY ..................................................................................................... 2

INTRODUCTION.......................................................................................................... 4
1 CONSUMPTION ..................................................................................................... 5
2 PRODUCTION ..................................................................................................... 12
3 TRADE CHANNELS FOR MARKET ENTRY .............................................................. 15
4 TRADE: IMPORTS AND EXPORTS ........................................................................ 21
5 PRICE DEVELOPMENTS ....................................................................................... 30
6 MARKET ACCESS REQUIREMENTS ....................................................................... 32
7 OPPORTUNITY OR THREAT? ............................................................................... 37
APPENDIX A PRODUCT CHARACTERISTICS............................................................ 39

APPENDIX B INTRODUCTION TO THE EU MARKET ................................................. 48
APPENDIX C LIST OF DEVELOPING COUNTRIES .................................................... 49
This survey was compiled for CBI by Fashion Research & Trends
Disclaimer CBI market information tools: http://www.cbi.eu/disclaimer
Source: CBI Market Information Database • URL: www.cbi.eu • Contact: marketinfo@cbi.eu • www.cbi.eu/disclaimer
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Report summary
This survey profiles the EU market for woven outerwear for men, women and children.
Market size
• The EU market for woven outerwear achieved an annual growth of 1.7% during the period
2004-2008 and reached € 143 billion in 2008, which was 55% of total outerwear
consumption.
• Germany is still the most important country in woven outerwear consumption in the EU,
despite a very small growth in the period 2004-2008. The difference between Germany and
the UK and Italy has become smaller again. Five countries (Germany, UK, Italy, France and
Spain) accounted for 74% of EU woven outerwear consumption.
• Consumers in Austria and the UK are the biggest spenders on outerwear in the EU, while
per capita consumption in the new EU member states was far below the EU average of
€ 290.
• The woven outerwear market is not insulated from the international financial and economic
crisis and recession in several EU countries. In most of the EU countries (except in Poland
and Romania) consumer spending on woven outerwear is forecasted to fall in 2009.
• Generally spoken, growth in volume of woven outerwear will be higher than growth in
terms of value. Lower prices will be the result of increasing market shares of discounters,
value chains, hyper- and supermarkets, but also of increased price competition and further
expansion by specialized chains.
Production
• According to Eurostat/Prodcom, output in the EU woven outerwear industry decreased by
an average 1.4% per year in the period 2004-2008 and amounted to an estimated € 18.2
billion in 2008.
• Italy is the dominant woven outerwear producer in the EU accounting for 46% of total EU
turnover in 2008, followed by Spain, Romania, the UK and Portugal. 84% of the EU woven
outerwear industry is concentrated in these five countries.
• Most of the EU manufacturers have developed an outsourcing policy.
Trade structure
• Developments in the retail sector, such as a growing concentration at retail level, expansion
by internationalisation and growing competition, lead to an increased demand for
fashionable products against low prices.
• Growth of clothing multiple chains and franchised outlets and increased sales by non-
specialized retailers (hyper- and supermarkets etc.) led to the decline of the formerly
strong independents’ sector. This trend will be continued in the coming years.
• The fast-changing demand in the clothing market is a significant factor. Because of the
higher dynamics of the clothing markets in terms of more rapidly changing consumer
preferences and more seasons per year, there is a general tendency in the clothing branch
to demand shorter delivery times and smaller volumes of series and orders.
• The role of importing wholesalers and importers remains relatively important but will
decline slightly, while the role of clothing multiples and, to a lesser degree, buying groups
or franchise formula, will increase in the coming years. Parallel to the trend for suppliers to
make their clothing abroad is a trend for retailers or wholesalers to bypass the local
industry totally, by means of direct imports.
Imports
• EU imports of woven outerwear increased on average 4.4% per annum during 2004-2008
and reached € 48.0 billion in 2008. Imports decreased 0.9% in 2008 compared to 2007.
This fall was mainly caused by diminished intra-EU trade.
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• Germany remained the leading importer with a share of 20% in imported value. Germany
was followed by the UK and France (each country 14%), Italy (10%), Spain (9%) and
Belgium (6%). The Netherlands ranked sixth, followed by Austria and Denmark.
• DCs accounted for 52% of total EU imports of woven outerwear in 2008 (49% in 2006).
• China remained by far the major woven outerwear supplier to the EU, 25% of total imports
came from this country. China was followed by Germany, Italy, Turkey, Belgium and India.
The imported value from China for woven outerwear was 9% higher in 2008 than in 2007.
Of all DCs, accounting for substantial exports to the EU, only imports from Egypt (+33%),
Mexico (+11%) and Vietnam (+10%) increased to a higher degree than China.
Exports
• The EU exported 683 thousand tonnes of woven outerwear with a value of € 34.7 billion in
2008, representing an annual increase in value of 3.1% in 2004-2008.
• The leading EU exporter of woven outerwear remained Italy (24% of total exported value),
followed by Germany, France, Belgium, Spain, The Netherlands and Romania.
• A slightly decreasing share of 26% went to countries outside the EU, mainly Switzerland,
Russia, the USA, Japan, Hong Kong and Norway.
Opportunities for developing country exporters

• The decrease of production in the major EU countries has led to a further sourcing of
products in low-cost countries and, probably, of products with a higher design content.
Besides the traditional lower range market segment, the largest middle range market
segment may also offer good opportunities for exporters in DCs.
• Importers in the major EU countries have built up a comparative advantage by specialising
themselves in design and other functions, like preparation of samples, logistics, marketing
etc., while simple production operations take place increasingly in other countries. As time
goes by, even more of the first-mentioned functions are leaving these EU countries too.
• The focus on casual and leisurewear will be continued for the coming years, but to a much
lesser degree. Besides this trend, there is a tendency to use more natural fibres, mainly
cotton and blends with cotton, at the expense of man-made fibres.
• Caused by economic developments, many consumers on lower incomes will continue to seek
low priced clothes.
• It should be noted that exporters in DCs will be faced with demands for high quality and
environmentally friendly products.
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Introduction
This CBI market survey profiles the woven outerwear market in the EU. The emphasis of this
survey lies on those products, which are of importance to developing country suppliers. The
role of, and opportunities for, developing countries (DCs) are highlighted.
The broad definition of woven outerwear means that, in addition to this report, the CBI market
surveys ‘Knitted Outerwear’, 'Bodywear’ (covering underwear, nightwear, swimwear and
hosiery), ‘Leather garments’ and ‘Personal Protective Equipment’ (including workwear)
facilitate a complete view of all types of clothing.
Product groups
The survey covers the woven product groups: coats and raincoats; outdoor jackets; suits and
ensembles; indoor jackets; dresses and skirts; trousers and shorts; shirts and blouses;
sportswear; babies’ garments; and, clothing accessories (scarves, shawls, gloves, ties etc.).
Besides this product classification, used for trade statistics, the classification (based on
demographical criteria) woven outerwear for women, men and children is used for consumption
statistics.
For detailed information on the selected product groups please consult appendix A. More
information about the EU can be found in appendix B.
In this survey, EU means the EU-27 unless otherwise indicated.
CBI market surveys covering the market in specific EU member states, 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 the CBI market surveys and other CBI market
information, please consult ‘From survey to success - Guidelines for exporting woven
outerwear to the EU’. 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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1 Consumption
1.1 Market size
The global market for woven outerwear can be estimated at € 460 billion in 2008, of which the
EU accounted for 31%, North America (including the USA) 29%, Asia Pacific (including Japan)
28%, Latin America 7% and other regions 7%.
Consumption of woven outerwear in the EU followed an annual growth of 1.7% during the
period 2004-2008 and reached € 143 billion in 2008, which was 55% of total outerwear
consumption.
Germany is still the most important country in woven outerwear consumption in the EU,
despite a very small growth in the period 2004-2008. The difference between Germany and the
UK and Italy has become smaller again. Five countries (Germany, UK, Italy, France and Spain)
accounted for 74% of EU woven outerwear consumption.
Table 1.1 Woven outerwear consumption in the EU countries, 2004-2009, in € million

2004 2006 2008 Av. annual 2009 Per capita
change forecasts 2008- in €
Germany 27,626 27,872 27,880 0.2% 26,100 339
UK 22,757 24,305 25,134 2.6% 24,370 412
Italy 21,901 22,152 22,717 0.9% 21,500 385
France 18,567 19,436 19,106 0.7% 18,350 309
Spain 10,093 10,795 10,969 2.2% 10,340 243
Netherlands 4,843 5,038 5,173 1.7% 5,100 316
Belgium 3,735 3,826 4,031 2.0% 3,890 380
Poland 3,011 3,190 3,727 5.9% 3,780 98
Austria 3,373 3,394 3,505 1.0% 3,340 420
Sweden 2,963 3,203 3,312 2.9% 3,200 362
Greece 2,943 3112 3,226 2.4% 3,190 267
Portugal 2,264 2,332 2,435 1.9% 2,350 229
Denmark 1,743 1,941 2,029 4.1% 1,955 371
Finland 1,433 1,546 1,683 4.4% 1,590 317
Romania 1,434 1,547 1,667 4.1% 1,680 78
Ireland 1,296 1,347 1,358 1.2% 1,210 316
Czech Rep. 1,023 1,156 1,306 6.9% 1,255 127
Hungary 823 885 929 3.2% 870 93
Slovakia 606 726 789 7.5% 755 146
Bulgaria 495 555 652 7.9% 630 86
Lithuania 265 404 469 19.2% 430 139
Slovenia 392 424 465 4.7% 460 231
Latvia 174 222 322 21.3% 300 142
Estonia 125 160 219 18.8% 200 164
Cyprus 189 209 210 2.8% 205 244
Luxembourg 187 190 195 1.1% 195 411
Malta 93 98 102 2.4% 100 251
EU 134,354 140,065 143,619 1.7% 137,345 290
Sources: Eurostat (2009), Euromonitor (2009) and trade estimates
Consumers in Austria and the UK are the biggest spenders on woven outerwear in the EU.
Looking at the other major EU countries, consumption per capita in Italy was the highest,
followed by Belgium and Germany. Spanish consumption was less than the EU average
consumption of woven outerwear. Per capita consumption in the ten EU member states, which
joined the EU in 2004, was in the range of € 98 (Poland) to € 251 (Malta). The two most recent
members of the EU, Romania and Bulgaria, accounted for € 78 and € 86 per capita.
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There have been significant differences between the rates of growth of different member
states. For example, the highest growth rates have been enjoyed by the three Baltic States,
Latvia, Lithuania and Estonia. Conversely, below average growth has been experienced over
the period by several of the major EU member states, especially in Germany.
Forecasts
Forecasts on consumer expenditure of woven outerwear are € 137 billion for 2009, which
would be 4.4% lower than in 2008.
The woven outerwear market is not insulated from the international financial and economic
crisis and recession in several EU countries. In most of the EU countries (except in Poland and
Romania) consumer spending on woven outerwear is forecasted to fall in 2009, as mentioned
in table 1.1 and discussed in the individual country surveys.
Generally spoken growth in volume of woven outerwear will be higher than growth in terms of
value. Lower prices will be the result of increasing market shares of discounters, value chains,
hyper and super-markets but also of increased price-competition and further expansion by
specialized chains.
In terms of future potential, it is clear that the new EU member states, in particular Slovakia,
the Czech Republic, Slovenia and Poland, offer greater scope for market growth as incomes and
spending patterns approach European norms, although this may still be some years away. Also
of interest are Spain, Portugal and Greece, which have surprisingly low levels of woven
outerwear spending per capita. These forecasts are based on historic data and, therefore, must
be viewed as no more than an indication of a broad trend.
Type of product
Women’s woven outerwear is the leading sector in all individual EU markets surveyed. In 2008,
the share of the total value of women’s woven outerwear sales in the major EU countries
exceeded 50%. Women are considered to be more sensitive to fashion and buy more
impulsively, than men. In many EU countries, the demand for formal wear declined in favour of
casual and leisurewear, which implies higher increasing sales in terms of volume, rather than in
terms of value. Since the economic crisis for many EU countries started in September 2008,
consumer expenditure on clothing, including woven outerwear, decreased considerably.
Value market shares for woven outerwear in 2008 were trousers and shorts 35%; coats and
outdoor jackets 16%; shirts and blouses 15%; dresses 9%; skirts 5%; indoor jackets 5% and
other products 15%.
Increased demand for woven products like jeans, other cotton trousers, shorts, sportswear,
outdoor jackets etc. illustrates the popularity of casual wear, too. The dominating role of casual
and leisure clothing can be derived from the high shares of: jeans (424 million units sold in
2008 against € 34); other cotton trousers (711 million units at € 25) and cotton shorts (127
million units at € 17). These three products covered 70% of total sales in this product group.
Bought by a population of 494 million, it indicates that on average 85% of all men, women and
children living in the EU bought one pair of jeans in 2008. Total jeans consumption in the EU
concerned for 45% men’s jeans, 31% women’s jeans and 24% children’s jeans. Blue jeans are
still an unchanged part of the leisure and casual wardrobe of the majority of the EU population.
Even jeans in the classical function as work wear are still important.
Cotton and man-made fibre outdoor jackets sales reached respectively 81 and 194 million units
in 2008 against an average price of almost € 42.
An estimated 350 million cotton shirts for men at € 21 and 255 million cotton blouses at € 18
for women covered 60% of total sales in this product group.
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1.2 Market segmentation
Criteria for market segmentation of woven outerwear are:

• demographic factors, such as age (babies’ and children’s wear and adults, the latter often
being divided into age groups in several ways, for instance 15-24, 25-49, 50-64 and 65+)
and gender (men/boys and women/girls);
• by type of activity resulting in specific clothing behaviour, like formal, casual, leisure and
active sports dress;
• attitude of consumers towards fashion and developments in fashion;
• specific circumstances (like maternity wear) or special events (weddings, parties, first
communion etc.);
• economic factors, such as income and spending power;
• geographic factors, climate and environment.
Most of these criteria will be applied by trading partners in the EU.
Segmentation by demographic factors

The size and age structure of the population is one of the basic determinants of which products
will be bought and how much will be spent on clothing. Although this may appear to be a rough
method for categorising the market, it is interesting because:
• Generally speaking, different age categories have different clothing behaviour, and
• Developments within the various age categories can be followed, by comparing results with
projections.
The EU population increased 1.5% in the period 2004-2008 to reach 494.1 million people. The
EU has an ageing population and the category below 15 years has decreased. The categories
50 and older have increased substantially. In 2004, 34.4% of the total population was older
than 50 compared to 35.4% in 2008.
The population growth is expected to slow down in the EU. Another important demographic
development is the strong increase of one- and two-person households. The persons in such
households do not have many household or family obligations, so they have a lot of leisure
time. Besides that many of these households have rather high disposable incomes. Both factors
are stimulating clothing consumption.
Table 1.2 Population in the EU by age classes, 2004-2008 (in %)

Age (years) 2004 2006 2008
0-14 16.3 15.9 15.7
15-24 12.8 12.7 12.5
25-49 36.5 36.5 36.4
50-65 18.0 18.2 18.4
65+ 16.4 16.7 17.0
Total 100.0 100.0 100.0
Source: Euromonitor (2009)
Clothing buying process by age groups

Children (0-15)
The buyer of children’s wear, certainly for the younger age groups, is an adult, mostly the
mother. Her fashion consciousness and general buying behaviour have a long-lasting
dominating influence on the purchase of clothes for the child. The social position of the child's
family also plays a role in these decisions. The trend of more working women, smaller family
sizes and older parenthood mean that, in many households, there is a higher level of per capita
spending on children than in any previous period. This segment is helped by indulgent gift
buying, especially for newborn babies, as clothes are a popular gift.
As they grow up, boys and girls are increasingly vocal as to how they want to be dressed. This
development takes place in phases, with varying influences from the outside. Fashion
awareness of clothing is increasing among the younger children. Almost all designers and top
fashion retailers launch their own children’s couture. The main buying force comes from 9-14
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year-olds, who are more financially independent (i.e. they have a clothing allowance) and
fashion-conscious, and are heavily influenced by pop celebrities and their favourite sport icons.
Men (15+)
In terms of consumer targeting, the market for men (15+) can be divided into two broad
groups: younger buyers, who tend to be more concerned with image and fashion, and older
buyers, who are concerned more with quality, value, practicality and durability. However, the
dividing line between these two groups in terms of age is not easy to draw. Fashion is
important to many consumers in their 30 to 40s and quality has become an increasingly
important criterion for younger consumers.
Women (15+)
The women’s clothing market is generally fast-moving and volatile, particularly so amongst the
crucial younger age groups, for whom fashion is the key driver. The women’s wear market is
not only much larger than the men’s wear market, but is also more dynamic and enjoys growth
in most of the EU countries. Fundamentally, women spend far more on clothes than men do
and they spend more consistently throughout their lives.
The 15-24 age segment of the female population tends to be made up of fashionable
consumers of woven outerwear. This segment spends a lot of money on their personal
adornment and is likely to look for new style and designs. Female consumers in the 50-65 ages
are modern in their thinking and demands. They are no longer associated with ‘granny’ styling
and seek stylish garments, quality and comfort.
Segmentation by type of activity

The outerwear market can be divided into several segments based on type of product
combined with type of activity, resulting in a specific clothing behaviour. The following
categories can be distinguished: formal clothing, casual wear, basic leisurewear and active
sportswear. The active sports segment in the EU influences the leisure and casual segments.
‘Smart casual’ will be further influenced by the workplace.
Segmentation by attitude of consumers towards fashion

Elements of fashion are: colour, design, fabric, exclusivity and style. The present consumer in
Western Europe wants to be seen as an individual, who has his/her own life style. Especially in
the higher priced fashion segment, clothing products have an individualising function.
Therefore the demand by the consumer has become more specific. Another trend is that people
buy different clothes for different activities and occasions.
Consumer behaviour is unpredictable and influenced by short term demands. The consequence
of the above is that the consumer expects retailers to present a clear image. In order to meet
these consumer demands, many clothing stores and suppliers broadened their non-clothing
product ranges, in particular by adding accessories, shoes, sunglasses and similar products. On
the other side, value retailers and clothing discounters start or maintain their operating at a
low-price level based on the principle that value for money is still a very important purchase
criterion for most consumers, in particular when confronted with declining budgets.
The major purchase criteria as based on segmentation by attitude towards fashion, value for
money principle are given in the overviews below. The low-to-middle price segment, with a
market share of 40%, continues to dominate. This and more information about the retail and
other distribution channels will be discussed in more detail in chapter 3 ‘Trade channels for
market entry’.
PRODUCT CRITERIA Examples of FASHION CRITERIA

BRAND NAMES
High price luxury Limited collections, made with Dolce & Gabbana, High fashionable
segment special care; sometimes Prada, Girbaud, collections.
handmade, high quality Georgio Armani, Exclusively designed
materials Donna Karan materials and artworks
Designer/ brand name stands Trend-setting in fashion
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PRODUCT CRITERIA Examples of FASHION CRITERIA

BRAND NAMES
for exclusivity and fashionable
Market share 5% clothes
Upper middle Collections are produced after Max Mara, Large variety of styles
price segment pre-sale; extra attention to Hugo Boss, and of materials
fitting and accessories Blumarine, Styling and fitting are
Brand-name goods; good Marni, Strenesse, vitally important
quality materials; broad range Marc Cain Product in line with the
Market share 15% in design latest fashion trends
Middle price Collections are produced after French Connection, Good fitting is important
segment pre-sale; good to medium In-wear, Benetton, Recognisable by brand-
quality materials S. Oliver, Esprit, name visible on outside
Trend-following or classic Mexx , Jackpot
assortment; brand-name
Market share 30% goods
Low to middle Produced in larger quantities Private labels, like Collections with a view
price segment to lower the price; basic C&A, Promod, WE, to current fashions
styles, less changes to Marks & Spencer,
patterns, basic fitting Hema, Etam,
Medium quality Vögele
materials/lower fashionable
element
Produced in large quantities to Private labels, like High fashionable, close
lower the price; less attention Hennes & Mauritz, to trends
to fitting and patterns Zara, Mango,
Market share 40% Basic quality/high fashionable Topshop
Low or very low Basic or low quality No brands Standard products
price segment Special sales/ offers without particular
Inexpensive products fashion requirements
Market share 10% Produced in large quantities
Source: Fashion & Vision (2008)
More information about price levels and price structures will be discussed in chapters 3 and 5.
Climate
Generally spoken, weather has an impact on the timing of expenditure, which tends to be
highly seasonal. Unexpected weather changes influence consumers in their purchasing
decisions. Consumers in warm, dry climates tend to purchase less durable, cheaper clothing,
which influences the share of clothing expenditure. Because of the warmer climate in Southern
Europe, the difference in seasons is limited.
Owing to its cold and wet winters, a comparatively high proportion in value is spent on heavy
garments such as winter coats and jackets in Nordic countries (like Sweden and Finland),
Germany and Austria. Companies intending to export clothes to these countries should be
aware of the temperate climate, which requires casual garments which are comfortable, robust
and preferably wind- and waterproof.
Trends
General trends
• Eco-fashion has become a segment in its own right within the clothing industry. This trend
is increasingly significant in many markets, in particular the UK, Germany, The Netherlands
and the Scandinavian countries. People tend to place more emphasis on this development.
One of the consequences of eco-fashion is that consumers have to pay a higher price for a
product. However, it should be noted that consumers are less concerned about ethical
aspects when spending power decreases.
• A polarisation of brand leadership also appears likely in Europe. Retailers in Germany, UK,
France and other EU countries are clearly aiming to replace manufacturer brands with their
own identities in the middle market, leaving the upper market to designer brands.
• Value for money is still the most important purchase criterion for most consumers.
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• Younger people are more and more interested in brand name clothing, especially in casual
and leisure wear (street wear). Influence by media such as Internet, (fashion-) magazines
and TV inspires youth to follow fashion trends and they are willing to spend more for
(mainly) European brands. Consumers also combine a high-priced luxury product with a
cheap private label product to lower the costs.
• A stronger fashionability across the retail section will be achieved by a wider distribution
and the appeal of designer labels and exclusive collections. Some well-known examples of
this were Karl Lagerfeld and Stella Mc Cartney for H&M.
• In most of the major EU countries, people have become larger in length and width, which is
valid for men and women, as well as in the younger age groups.
• Decreasing brand loyalty; consumers can combine a high-priced luxury product with a
cheap private label product.
• Increasing individualisation; consumers are more difficult to influnce and also less
predictable. The trends are changing at a greater speed and this makes segmentation of
the market difficult. However, mass fashion will still exist within different subcultures.
Fashion trends
• Women’s wear follows the broad trend toward more casual and sporty garments. Several
fashion forecasts announced that collections will be more feminine and will have fewer
casual details. Other forecasts are:
o a-symmetrical openings and several layers will become popular. Several lengths can be
created in one garment or in a combination of several garments, like skirt with long
tunic or blouse and short waistcoat or short jacket on a top.
o Accents on the waist by large belts or accents on the neck by wide scarves in bright
colours.
o Skirts remain popular in all types and kind of lengths. In Southern European countries,
the narrow knee-length skirt will be worn combined with a voluminous poplin blouse
with puffed sleeves and voluminous collar.
• The children’s wear market is increasingly driven by fashion, with children becoming ‘older
younger’ and with older girls tending to buy young adult designer wear. Several women’s
brands offer the same garments in smaller sizes for girls.
• Babies’ wear is still classic and follows the trends of adult clothing to a lesser degree.
Newborn collections are mainly plain or have childlike decorations and are less influenced
by the casual trends as seen in adult fashion.
• The following more detailed trends are signalized:
o materials: linen-wool mixtures, blends of cotton and linen, the increasing use of elastic
fibres (varying from 2% to 30-35% for super-stretch), light-weight and stretch
polyamides and luxury looking fabrics. Tulle will be used in combination with woven
fabrics, herewith volume can be created in a simple way and will give garments a
theatrical effect.
o finishing techniques: wax coatings for protection (outdoor jackets) or to achieve a shiny
leather look (jeans). Destructive techniques are used to obtain a vintage look or ripped
jeans.
o prints: symmetrical and graphic; regular and irregular stripes; (inspired by the
eighties) pied de poules and colour-blocking. Floral and animal prints remain popular
although tone on tone with less contrast, just like lumberjacks: two tones in all sizes.
For current and detailed fashion information on colours and styles, we refer to the CBI Fashion
Forecasts.
The same development or trend can be an opportunity for one exporter and a threat to
another. Exporters should therefore analyse if the developments and trends discussed in this
survey provide opportunities or threats. The outcome of this analysis depends on each
exporter’s specific circumstances.
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1.4 Opportunities and threats
+ Expectations for consumer expenditure on outerwear for the period 2008-2010 are
moderately optimistic in the major EU countries:
o the number of garments purchased per capita will rise, while consumer prices will be
under pressure;
o continuing interest in more fashionable outerwear;
o demographic developments, society has become more multi-ethnic and the average age
is increasing. This will lead to new demands and consumer behaviour. The birth rate will
decrease, which will moderate the growth of the babies’ wear market.
+ Experts forecast that clothing expenditure in several of the new EU member states will
continue to see robust growth in the period to 2010:
o boosted by the entry of more foreign, particularly European, formula (or fascia) into the
market, consumers will become more aspiring and ‘western’ in their outlook as
prosperity increases and foreign investment in the country grows;
o popularity of second-hand clothing declined in favour of buying clothing at hyper- and
supermarkets and from home-shopping companies.
+ The focus on casual and leisurewear will be continued for the coming years, but to a much
lesser degree. Besides this trend, there is a tendency to more natural fibres, mainly cotton
and blends with cotton at the expense of man-made fibres.
± The fast changing demand in the clothing market is a significant factor. Because of the
higher dynamics of the clothing markets in terms of more rapidly changing consumer
preferences and more seasons per year, there is a general tendency in the clothing branch
to demand shorter delivery times and smaller volumes of series and orders.
± Caused by economic developments, many consumers on lower incomes will continue to seek
low-priced clothes. On the other hand, the size of the market and the polarisation in
incomes offer huge markets for quality and convenience, designer labels, (global) sports
brands etc.
± It should be noted that exporters in DCs will be faced with demands for high quality and
environmentally friendly products.
1.5 Useful sources:
• Euratex (http://www.euratex.org) including links to national trade associations

• Trade fairs (for yarns, fabrics, colours etc.), like Expofil in Paris, France -
http://www.expofil.com ; Pitti Filati in Florence, Italy – http://www.pittimmagine.com ;
Premiere Vision in Paris, France – http://www.premierevision.com ; Munich Fabric Start in
Munich Germany - http://munichfabricstart.de
• Outerwear fairs, like CPD Woman/Man in Dűsseldorf, Germany - http://www.cpd.de ; Bread
and Butter in Berlin, Germany - http://www.breadandbutter.com ; Prêt-à-Porter in Paris,
France (http://www.pretparis.com ; Intersélection in Paris, France -
http://www.interselection.net and SIMM in Madrid, Spain -
http://www.semanamoda.ifema.es. For other outerwear trade fairs we refer to the
individual EU countries.
• Trend magazines, like Collezioni Trends – http://www.logos.info ; View Textile –
http://www.view-publications.com ; Denimology - http://www.denimology.co.uk.
• Trade magazines, like Textil Wirtschaft - http://www.twnetwork.de ; Textiles Outlook
International - http://www.textilesintelligence.com ; Journal du Textile -
http://www.journaldutextile.com/intro_en.htm and Sportswear International magazine.
• http://www.sportswearnet.com. For other trade magazines we refer to the individual EU
countries.
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2 Production
2.1 Size of production
According to Eurostat/Prodcom, output in the EU woven outerwear industry decreased by an
average 1.4% per year in the period 2004-2008 and amounted to an estimated € 18.2 billion
in 2008. Two remarks should be made:
• Achieved turnover of the industry is much higher, because when an EU company lowers its
production, it can still achieve a higher turnover through relocating some of its
manufacturing to low-cost countries. The turnovers will then include the invoicing linked to
the relocation units.
• Based on national statistics and export statistics, production in several countries should be
much higher than recorded in Eurostat statistics. One of the reasons may be the very high
share of SMEs in those countries. Their production is not recorded in the statistics, because
it is lower than the minimum amount required for recording in statistics.
Italy is the dominant woven outerwear producer in the EU accounting for 46% of total EU
turnover in 2008, followed by Spain, Romania, the UK and Portugal. 84% of the EU woven
outerwear industry is concentrated in these five countries.
Table 2.1 Woven outerwear production in the EU countries, 2004-2008 in € million

2004 2006 2008 Av. annual Share in %
estimates change 2008
Italy 8,683 8,083 8,370 -0.9% 45.9
Spain 3,512 3,193 2,815 -5.0% 15.4
Romania 945 2,540 2,312 36.2% 12.7
UK 1,094 994 1,025 -1.6% 5.6
Portugal 911 775 792 -3.3% 4.3
Germany 1,286 749 640 -12.6% 3.5
Poland 550 547 567 2.4% 3.1
France 544 482 440 -4.8% 2.4
Slovakia 221 206 203 -2.0% 1.1
Austria 253 199 188 -6.4% 1.0
Bulgaria 102 120 152 12.2% 0.8
Hungary 241 159 147 -9.8% 0.8
Baltic countries 209 173 134 -9.0% 0.7
Greece 207 134 122 -10.2% 0.7
Belgium 109 108 96 -2.9% 0.5
Denmark 188 107 79 -14.5% 0.4
Other countries (9) 282 192 157 -11.1% 0.9
EU 19,337 18,761 18,239 -1.4% 100.0
Source: Eurostat/Prodcom (2009)
Forecasts for domestic woven outerwear production in the EU remained depressed. Several
member states registered a two-digit decrease in production, sometimes from already very low
production levels. The activity of the EU clothing sector will decrease furthermore due to the
growing penetration rate of Asian imports and the exchange rate of the euro, which is
unfavourable to EU exporters.
Clothing manufacturers in the EU can be divided into:

• Manufacturers which have access to the end consumer, using own retail structures
(vertically integrated companies),
• Manufacturers which are developing own design/brands, and
• Manufacturers which are working only as subcontractors (mostly on cut/make/trim or CMT
basis).
Most EU manufacturers have developed an outsourcing policy which may include:

• Small, rush-orders in their own factory using modern technologies;
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• Specialist products and products with a reasonable profit margin are subcontracted at short
distance;
• Series of bulk products are sub-contracted in low-wage countries.
Some small apparel sectors will remain in Western Europe to guarantee speed and flexibility. In
some sub-sectors, which should be capable of automatisation or production of a relative high
value added, there is room for production capacity. So the West European clothing sector will
further specialise in market segments which offer a high added value.
2.2 Trends in production
The restructuring policy of many manufacturing companies in the EU during the last two
decades led to relocation of the clothing production, mainly based on labour cost comparisons.
However, even though cost may play an important role in defining the ideal location, it is only
one of the elements to take into account. For example: a well-organised, highly productive
factory in country A can offer better prices than a poorly organised, low-efficient factory in
country B, despite lower labour costs in country B.
The foreign policy of clothing manufacturing companies takes many forms:

• Most of the largest companies have established their own factories abroad or entered into
joint ventures in low-cost countries.
• Besides these forms of ownership structure, subcontracting forms an important part of the
activities of the EU clothing industry. The basic concepts of subcontracting are Cut, Make
and Trim (CMT) and Free on Board (FOB).
• Another possibility for manufacturing companies is sourcing abroad, mainly for additional
products to their own product range.
Under CMT, the entire manual production is relocated, although the material purchase is held
on to for efficiency and quality reasons. The quality control is relocated, too, and is typically
managed by travelling controllers.
Under FOB, suppliers abroad receive complete specifications for the design, quality of the fabric
or yarns, accessories and other materials etc. Subsequently, the suppliers manage the
purchase of the materials themselves. This form is most usual for importers/wholesalers and
importing retail organisations, but only for a minority of the manufacturing companies.
The relocation policy of EU manufacturers gives them the possibility to maintain control over
the management and quality of the outsourcing operations and to respond quickly to changing
market demands.
Other trends are:

• Price competition among suppliers has intensified, resulting in a slow growth in production
prices. This is causing concern among EU producers, who are finding it increasingly difficult
to match low import prices.
• Increasing internationalisation by EU manufacturing and/or retail companies through
expanding their activities intensively, making their products available in many European
countries and even outside Europe.
• High degree of vertical integration in the value chain; several producers opened their own
chain(s) and many suppliers started a close and long-term co-operation with distribution
channels, which increases the entry barriers to new suppliers.
• Increasing concentration; the number of suppliers decreased and many suppliers have
merged or have taken over other suppliers.
• The growing complexity of sourcing is leading to an acceleration of the shift from CMT to
FOB sourcing, according to a recent KSA report published in 2009.
• CSI (Corporate Sustainable Issues) are becoming more important.
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+ The further sourcing of products in low-cost countries has led to decrease in production in
the major EU countries, including products with higher design content. Besides the
traditional lower range market segment, the largest middle range market segment may
also offer good opportunities for exporters in DCs.
+ Importers in the major EU countries have built up a comparative advantage by specialising
goes by, even the first-mentioned functions are leaving these EU countries too.
+ Advantages of the new EU states in terms of lower wages and shorter routes will largely be
eroded, due to the alignment of the wage structure and the fact that the clothing industry
will no longer be competitive there. This already happened in the regions of the ‘old’ EU
states. An entire sector will disappear in Eastern Europe and only niche suppliers or quality
producers will be able to survive.
± To satisfy the requirements of importing companies in the EU, exporters in DCs will be
faced with increased demands for higher quality and requirements concerning environment
and sociability.
2.4 Useful sources:
• Euratex (http://www.euratex.org) including links to national trade associations.

• Eurostat (http://epp.eurostat.ec.europa.eu).
• Trade fairs (for yarns, colours etc.), like Expofil in Paris, France - http://www.expofil.com ;
Pitti Filati in Florence, Italy – http://www.pittimmagine.com ; Premiere Vision in Paris,
France – http://www.premierevision.com
• Trend magazines, like Collezioni Trends – http://www.logos.info ; View Textile –
http://www.view-publications.com
• Trade magazines, like Textil Wirtschaft - http://www.twnetwork.de ; Textiles Outlook
International - http://www.textilesintelligence.com and Journal du Textile -
http://www.journaldutextile.com/intro_en.htm
• Outerwear trade fairs, like CPD Woman/Man in Dűsseldorf, Germany - http://www.cpd.de ;
Bread and Butter in Berlin, Germany - http://www.breadandbutter.com ; Prêt-à-Porter in
Paris, France (http://www.pretparis.com ; Intersélection in Paris, France -
http://www.interselection.net and SIMM in Madrid, Spain -
http://www.semanamoda.ifema.es. For other outerwear trade fairs we refer to the
Names and websites of interesting players on the woven outerwear market are given in the
country surveys.
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3 Trade channels for market entry

3.1 Trade channels
Figure 3.1 shows the basic trade channels (exporting manufacturers and traders, agents,
importing manufacturers, wholesalers and retailers). Depending on its position in the market,
the functions of a particular channel will be linked with up- or downstream channels which have
the same kind of specialisation. It is also possible for a given channel to take over (some of)
the functions of the latter, in order to improve competitiveness (vertical integration). For
instance, manufacturers, agents and retailers may also function as importers, while
wholesalers may also be manufacturers (vertical integration). Each of these groups has a
different approach to business and the market, with its own specific interpretation of the
marketing mix.
Theoretically, importing is a function which can be done by manufacturers, wholesalers or

retailers as given in figure 3.1. However, in some countries and/or branches a distinction is
made between importing wholesalers and importers. In that case, the importer purchases at
his own risk, handles Customs clearance and sells mainly to retail organisations, like multiples,
department stores and buying organisations and other wholesalers, while wholesalers purchase
at own risk from local or EU manufacturers and from importers.
Figure 3.1 Trade and distribution channels for outerwear in the EU
Exporting manufacturers
Importing wholesalers Importing manufacturers Agents
Importing retailers
Department Clothing Home Selling and/or Other

and variety multiples shopping buying retailers
stores companies organisations
Non-importing retailers
Trade channels
Different sales intermediaries have their position between industry and retail, for instance:
Importing wholesalers: by buying on his own account, the importer/wholesaler takes title to
the goods and is responsible for their further sale and distribution in his country and/or in other
EU markets. He is familiar with local markets and can supply considerable information and
guidance to the exporter, in addition to the primary business of buying and selling, such as
administration of import/export procedures and holding of stock. The development of a
successful working relationship between exporting manufacturers in DCs and an
importing/wholesaler or importer can lead to a high level of co-operation with regard to
appropriate designs for the market, new trends, use of materials and quality requirements.
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Most outerwear and/or sportswear wholesalers cater both to the specialist shops and to the
department stores and multiple chains. Contrary to the agent, the wholesaler purchases from
manufacturers and holds his stocks at own risk. The mark-up of a wholesaler is approximately
20-30%. An increasing number of importers/wholesalers today act as agents. The fact that
many independent retailers, as well as purchasing combinations and multiple stores, are
becoming more cautious about pre-ordering, preferring to sell from stock, is reinforcing the
position of the wholesaler. On the other side, large retail companies are increasingly
purchasing abroad, thereby passing the intermediaries. In the case of importers, the mark-up
is approximately 40-50%, which covers a range of activities, such as design, stock-forming,
distribution, marketing etc. as mentioned above. .
Importing manufacturers: the many forms of production strategies of EU manufacturers are

discussed in chapter 5 of this survey. Retailers are increasingly taking part in stages before
them in the sector (vertical integration) and have their own designers to give their own
collections a more unique look. Clothing manufacturers penetrate the retail business by
operating through own shops or through franchising. This gives them control over their output
and margins. Producers can also try to compete through a greater emphasis on their own
product development. They can then offer exclusivity to the retailers and give the latter a
competitive advantage.
Agents: the sales agent is an independent intermediary between the (foreign) manufacturer
and the retailer or retail organisation, receiving a commission from the former.
The agent (or sales representative) covers a limited geographical area. The level of the
commission depends on a number of factors, including the turnover rate of the product
concerned, but it averages an estimated 8-12% of turnover.
Most agents represent more than one manufacturer, although competition is avoided. More and
more agents are starting to sell from stock, to meet their clients' short-term demands. Stock
forming is often on a consignment basis. If the agent builds up his own stock, he is in fact
functioning as an importer/wholesaler. The role of agent as described above is often indicated
as selling agent. Another type of agency is the so-called buying agent. The buying agent is
located in the supplying country and settles business on the instructions of his principals, which
are mainly retail organisations, and works on commission basis, too. The development
described above - an increasing number of importer/wholesalers acting as agent - is also true
in reverse: many agents today act as importers/wholesalers.
Capital requirements are limited because this cooperation is based upon commission; however,
agents mainly work with brand names and are therefore less interesting for most exporters in
DCs.
Importing retailers: the bigger retail organisations (multiples with more than 20 outlets,
department and variety stores, buying organisations, home-shopping companies) import
through their own buyers. These buyers at clothing multiples, home shopping companies and
variety stores, which have mainly or exclusively private labels in their assortment, divide their
budgets between the purchase of finished products via direct imports (sourcing ready-made
products) from low-wage countries and sourcing products made according to their own design.
Home-shopping companies are keener than other retail distributors about the re-order facility.
They will want to start with small orders to test the market and make a firm, but not final, bulk
commitment a few months later. If an item sells well, they expect subsequent supply of maybe
three times that number at short notice, simply because the catalogue cannot on any account
disappoint the customer by saying ‘sold out’.
Many major retail organisations use buying agents or set up their own buying organisations in
low labour-cost countries. This means that retailers are able to bypass domestic wholesalers
and/or manufacturers and can reduce costs.
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A difference has to be made in the segments distinguished: super- and hypermarket chains,
textile and other discounters operate mainly at the lower end of the market, so the lowest
purchasing prices are the main buying criteria.
Generally spoken, variety stores and clothing multiples are interested in more criteria than
price, like service by the producer, technological capacity, quick response etc.
Contacts with sales intermediaries can be made in several ways, such as consulting trade
representatives’ associations, chambers of commerce, fashion centres, trade publications,
trade directories etc. In this survey and in the surveys on specific EU countries, websites of
potential trading partners are mentioned and otherwise websites of associations, including links
to their members (manufacturers, wholesalers or retailers), lists of exhibitors on trade fairs
etc.
Retail trade
Retailers constitute the final stage before products reach the consumer. In this survey and in
the surveys covering individual countries, a distinction is made between specialised retailers
(independent (clothing specialty) retailers and clothing multiple stores) and non-specialised
retailers, like department and /or variety stores, textile supermarkets or discount stores, value
retailers, home-shopping companies, sport speciality stores, (grocery) super- and
hypermarkets, street markets, wholesalers (selling to consumers), factory outlets etc.
A detailed overview of the retail structure and market shares of retailers which have clothing in
their assortment are discussed in the surveys on specific EU countries.
Distribution channels differ greatly across the EU member states. Some characteristics are:
• The UK has a high concentration of distribution, which is reflected in the relatively low
market share of independent retailers.
• The southern and eastern EU member states have high market shares for independent
retailers. These retailers buy mainly from manufacturers and wholesalers/importers.
• In Germany, The Netherlands and Scandinavian countries, many independent retailers are
members of buying co-operations.
• In southern and eastern EU countries franchise formula are more popular.
Unorganised independent retailers, which have decreasing but still important market shares in
most of the EU countries, buy directly from local or near-by manufacturers or agents
representing these manufacturers, as well as from wholesalers/importers. These retailers do
not import by themselves and are therefore not interesting for developing country exporters.
Franchise or selling formula and buying groups can be considered as multiple stores or chains,
including their buying policy. The original function of the buying groups was reduction in costs
by centralising of buying and logistics. More and more selling formula for the members have
been developed and the successful ones have been exploited as franchising activities. The
website of the European Association of National Organisations of textile retailers (AEDT):
http://www.aedt.org gives information about independent retailers and links to national
organisations.
Trends in retail trade

• A high degree of integration in the value chain: more and more manufacturers open their
own (international) brand stores.
• The EU market has witnessed the relentless growth of clothing multiple chains and
franchised outlets, leading to the decline of the formerly strong independents’ sector. This
trend will be continued in the coming years.
• The hypermarket format, with its strong non-food component and international character,
plays an increasingly important role in outerwear sales in Western as well as in Eastern EU
countries.
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• Most of the retail chains have expanded their foreign activities; some of them even operate
globally. The main examples are Hennes & Mauritz (Sweden; http://hm.com), Inditex
(Spain; http://www.inditex.com) and C&A (Netherlands/Germany; http://www.c-and-
a.com). The number of stores and turnover of these companies can be found at the
websites mentioned. Zara is the most important chain of the vertically organized Inditex.
• Tough market conditions have favoured those retailers who can respond to consumer
demand more quickly and at lower cost. A handful of specialty retailers, such as H&M and
Zara, continue to defy the global economic downturn. These companies are particularly
adept at understanding what consumers buy - and want to buy - in real time and
responding quickly to sales trends and customer feedback. The explosive growth of these
chains is, besides international expansion, also driven by diversification. As a growth
strategy, they are capitalising on the heightened interest in their brands by extending them
into new product areas, new customer segments, and new formats.
• Minimising purchasing costs implies that many buyers try to limit the number of supplying
countries and the number of individual manufacturers they deal with.
• Sourcing policies are made on two levels, country level and company level. On country level
aspects like duty rates, ethical aspects, wage structure, distance, local infrastructure,
economic and political stability play a role. Other aspects like fast reaction, speed to
market, logistics management, quality, production facilities, design capacity, availability of
raw materials, are not country-specific. They can vary considerably within individual
countries.
More specified information concerning distribution in the EU countries is given in the CBI
surveys covering individual countries.
3.2 Price structure

The margins at the various different levels of distribution are influenced by several factors like
degree of risk; volume of business; functions or marketing services rendered; competition and
exclusiveness; and are different for each product/market combination. 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 apply 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 discriminate between "service
retailing", where the retailer offers the consumer substantial added value (quality, service,
fashionability, choice etc.), 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
chapter 1.2 for the various segments in the outerwear market.
The effect of low, medium and high margins on consumer end price, based on one CFR (cost
and freight) price for three different products, is shown in table 3.1 below. This shows that a
multiplier of between 2.2 and 3.0 on the manufacturer’s price should be used to calculate an
appropriate final consumer price. Caused by factors like increasing competition at all levels in
the distribution column, further concentration and integration, the factor has decreased in the
last decade. Elimination of the wholesaler, for instance, can lead to a lower multiplier used by
clothing multiples, department and variety stores and mail-order companies.
Most of the major retail organisations set up their own buying organisations in low-labour-cost
countries. This means that retailers are able to bypass domestic wholesalers and/or
manufacturers.
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Table 3.1 Calculation schedule: margins

Low Medium High
CFR Rotterdam/Amsterdam 100 100 100
Import duties * * *
Charges on CFR basis:
- handling charges, transport insurance, banking services 7 7 7
107 107 107
Wholesaler's margin (20/30/40%) 21 32 43
128 139 150
Retailer's margin (45/55/65%) 64 76 98
- net selling price 186 215 248
Value Added Tax: 19% of net selling price **) 36 41 47
- gross selling or consumer price 221 256 295
RATIO CIF/CONSUMER PRICE: 2.2 2.6 3.0

*) import tariffs vary from 0 up to 12.0% of CFR value
**) In this calculation, the VAT tariff valid for The Netherlands is used, but note that this tariff varies
per EU country (see country surveys).
The average outerwear retailer marks goods up by 80-110% of his buying price, while some
selected goods retail up to 165% higher than buying prices. However, a large part of the
assortment will have been reduced in price, caused by heavier markdowns, like discounts off
the original full price or promotional actions such as ‘buy one, get one free’.
Although levels of wholesaler and retailer costs often shock suppliers, these intermediaries do
not generate excessive profits. While purchase costs have fallen since manufacturing in low
cost countries 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 clothing market and in all major EU countries. Bargain sales generally threaten margins
but are considered as inevitable, because of the growing dynamics of the clothing market.
Rapidly changing fashion quickly makes clothing assortments "out-fashioned". Bargain sales
are then the only means to recover a part of the purchase price, even if garments are sold
below the usual retail price.
Opportunities for exporters in DCs when choosing their distribution channels, depends on
external (demand and requirements of importers/buyers) and internal factors. The latter is
discussed in CBI’s survey ‘From survey to success - Guidelines for exporting woven outerwear
to the EU’. The foreign strategies of EU manufacturers are discussed in chapter 2.
+ For starting and/or SME exporters, selling to wholesalers and importers has the most
advantages. Disadvantages are the missing of direct contacts with retail organisations and
the lower margins.
± Importers in the major EU countries have built up a comparative advantage by specialising
goes by, even the first-mentioned functions are leaving these EU countries too.
± Because of the spreading of buying of clothes over the whole year and because of
increasing product differentiation, there is a growing shift in power positions of the retail
chains. These developments include opportunities for the group of ‘privileged/short
distance’ supplying countries and tough competition for other countries.
+ As mentioned above, exporters of outerwear are confronted with many aspects like quality,
sizing, packaging, environmental aspects, resulting in a lot of technical requirements,
added to which are aspects of design, fashionability, market developments etc. For that
reason, co-operation in a variety of forms between importer and exporter can be necessary,
the more further-reaching forms of potential co-operation being joint ventures and co-
makership agreements.
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± The EU apparel market is complex and sophisticated. The movement away from cheap
products (with low relation to fashion and comfort) to mid-price segments, including
products of higher quality and more individual clothes, offer interesting opportunities to
exporters. In this segment, European as well as foreign retailers operate with their own
private labels, sometimes combined with branded products (for an increasing part sourced
outside the EU) as well as with non-branded or fancy branded items.
3.4 Useful sources:
• European Association of National Organisations of textile retailers (AEDT):

http://www.aedt.org and includes a link to Fashion United.
• Contacts with sales intermediaries can be made in several ways like consulting trade
representatives’ associations, chambers of commerce, fashion centres, trade publications,
trade directories etc. We refer to the CBI surveys covering individual countries for
addresses and other information.
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4 Trade: imports and exports

Trade statistics in this chapter are taken from Eurostat. Eurostat bases its statistics on
information from the Customs and EU companies, which is given on a voluntary basis. Not all
transactions are registered, particularly intra-EU trade such as those by smaller countries and
transactions from non-EU sources. Consequently intra-EU trade tends to be understated. On
the other hand, figures for trade between the EU and the rest of the world (extra-EU) are
accurately registered, and therefore more precisely presented in these statistics. Nevertheless
they must be treated with extreme caution and are only intended to give an indication of trade
flows in the international woven outerwear market.
4.1 Total EU imports
The EU member states imported 2.4 million tonnes of woven outerwear with a value of € 48.0
billion in 2008. Total imports increased on average 4.4% per annum, however it should be
noted that imports decreased 0.9% in 2008 compared to 2007. This fall was mainly caused by
decreased intra-EU trade.
Total imports of woven outerwear increased, while production for the EU market decreased,
which indicates growth of the import share in the slightly increasing consumer market.
The average import price (in units) fell 0.2% in the period 2004-2006 and fell 14.4% in the
period 2006-2008, of which 4.1% in 2008 compared to 2007.
Germany remained the leading importer with a share of 20% in imported value. Germany was
followed by the UK (14%), France (14%), Italy (10%), Spain (9%) and Belgium (6%). The
Netherlands (5%) ranked sixth, followed by Austria (4%) and Denmark (3%).
Table 4.1 EU imports of woven outerwear 2004-2008, in € million/1,000 tonnes

2004 2006 2008 Av. annual
€ million 1,000 € million 1,000 € million 1,000 change
tonnes tonnes tonnes in value
Total EU 40,823 2,431 46,632 2,307 48,024 2,373 +4.4%
of which from:
Intra-EU 20,799 977 21,782 557 21,807 563 +1.2%
Extra-EU 20,024 1,454 24,850 1,750 26,217 1,810 +7.7%
DCs 17,861 1,340 22,967 1,648 25,147 1,776 +10.2%
Source: Eurostat (2009), revised
Developments in imports of woven outerwear vary strongly per EU country. This depends on
several factors like size and structure of domestic production of woven outerwear, the
opportunities for and volume of re-exports, developments in demand as described in Chapter
1.
EU countries can be divided, by developments in value of imports during the period 2006-
2008, into:
• Booming imports (more than 50%) in Poland, Slovakia, Lithuania and Romania;
• Considerably growing imports (between 25 and 50%) in Slovenia, Estonia, the Czech
Republic and Greece;
• Strongly growing imports (between 10 and 25%) in Cyprus, Latvia, Bulgaria and Spain;
• Slowly growing imports (between 5 and 10%) in Denmark, Finland, Sweden, Austria and
Portugal;
• Very slowly increasing imports (between 0 and 5%) in France, Ireland, Belgium and
Germany;
• Very slowly decreasing imports (between 0 and -3%) in Italy, The Netherlands and
Luxembourg;
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• Slowly decreasing imports (between -3 and -10%) in Malta and United Kingdom;
• Considerably decreasing imports (more than 10%) in Hungary.
4.2 EU imports per product group
DCs accounted for 52% of total EU imports of woven outerwear in 2008 (49% in 2006). In
2008, EU imports of woven outerwear came for 46% from other EU countries (47% in 2006).
China remained by far the major woven outerwear supplier to the EU (25% of total imports),
before the EU countries Germany (8%) and Italy (7%), followed by Turkey (6%), Belgium and
India (each country 4%).
The imported value from China for woven outerwear was 9% higher in 2008 than in 2007. Of
all DCs, accounting for substantial exports to the EU, only imports from Egypt (+33%), Mexico
(+11%) and Vietnam (+10%) increased to a higher degree. Imports from India (+3%),
Bangladesh (+1%) and Tunisia (+3%) increased to a lower degree, while imports from
Pakistan stabilized and imports from Turkey (-10%), Morocco (-4%), Ukraine (-6%) and
Thailand (-4%) decreased. Imports from Greater China (including China, Hong Kong and
Macao) were 8% higher in 2008 than in 2007. It is likely that imports from Hong Kong and
Macao partly concerned transhipments of Chinese products, in order to avoid Chinese quotas.
The agreement in mid-2005 between the EU and China led to a limitation of Chinese exports
until 2008 and covered the woven outerwear product groups trousers, blouses and dresses.
The European Commission decided not to extend quotas on EU (textile and) clothing imports
from China when current arrangements came to an end on December 31, 2007.
A further expansion of China’s dominance in the EU outerwear imports is forecasted by several
experts, however, it should be noted that the following factors influencing a decrease in growth
of Chinese exports were mentioned by a recent (2007) KSA survey: risks of stock-outs;
increasing wage costs; lack of workforce; increasing costs caused by changes to the law based
on social and ecological standards; longer lead times compared to manufacturing locations
nearer to the EU; lack of quality and too-high minimum order limits. These criteria mean the
relative advantage of China over other countries, such as Turkey, Bangladesh, India, Sri Lanka,
Vietnam etc., is decreasing.
The continuing appreciation of the euro against the US dollar made exporting to the EU
relatively more profitable for foreign suppliers, especially those in Asia. The full impact of the
appreciation of the euro has probably not yet been felt, because it takes time for many buyers
to adjust their sourcing patterns or to negotiate new deals, because they are bound by
contracts.
With regard to factors like cost levels and distances, the following competitive categories in
woven outerwear can be distinguished:
Low-cost, long-distance countries: these countries specialise in low-priced, high-volume,
low and medium fashion and standard types of products with a fair quality. These products are
mainly made to buyers' specifications in countries in the Far East (China, Hong Kong and
Macao) and South East Asia (Bangladesh, India, Indonesia, Vietnam, Pakistan Sri Lanka and
Thailand).
Low-cost, medium-distance countries: these countries supply medium fashion products,
sometimes made as CMT. The main sources are Mediterranean countries like Tunisia, Morocco,
Egypt, Croatia, Albania and EU countries Romania, Hungary, Bulgaria, Poland and Slovakia.
Medium-cost, medium-distance countries: these countries supply medium to high fashion
products of high quality and sometimes made of sophisticated fabrics: like Turkey and EU
countries Portugal and Greece.
High-cost countries: these countries supply quality fashion characterized by frequent
deliveries, small quantities and sophisticated fabrics, which are difficult to obtain in low-cost
countries. Western Europe (Italy, Germany, Belgium, Austria and UK), Israel and USA belong
to this category.
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CBI MARKET SURVEY:
Table 4.2 EU imports and leading suppliers of woven outerwear 2004-2008, share in
% of value
2004 2006 2008 Leading suppliers in 2008 Share
€ mln € mln € mln (share in % of total imports) (%)
Total 40,823 46,632 48,024 100
Intra-EU: 20,799 21,782 21,807 Germany (8), Italy (7), Belgium (4), 46
France (4), Netherlands (4), Spain (3),
Romania (3), UK (2), Poland (2),
Denmark (2).
Extra-EU ex. DCs: 2,163 1,883 1,070 Switzerland (1), Hong Kong (1), USA 2
(<1), Macao (<1), U.A. Emirates (<1).
DCs: 17,861 22,967 25,147 China (25), Turkey (6), India (4), 52
Bangladesh (3), Morocco (3), Tunisia (3),
Vietnam (2), Indonesia (1), Pakistan (1),
Sri Lanka (1), Macedonia (1).
Trousers etc. 16,088 17,520 17,755 100
Netherlands (4), France (3), Spain (3),
Romania (3), Poland (2), UK (2),
Denmark (2).
Extra-EU ex. DCs: 984 1,044 348 Hong Kong (1), USA (<1), Switzerland 2
(<1), Macao (<1), UA Emirates (<1).
DCs: 6,831 8,240 9,470 China (19), Turkey (9), Bangladesh (5), 53
Tunisia (5), Morocco (3), Pakistan (2),
India (2), Vietnam (1), Sri Lanka (1),
Indonesia (1).
Shirts/blouses 6,257 7,325 7,958 100
Intra-EU: 3,001 3,270 3,416 Germany (8), Italy (6), Romania (4), 43
France (3), Spain (3), Netherlands (3),
UK (3), Belgium (2), Portugal (2),
Denmark (2).
Extra-EU ex. DCs: 397 212 120 Hong Kong (1), Switzerland (<1), USA 2
(<1), UA Emirates (<1), Macao (<1).
DCs: 2,859 3,843 4,422 China (18), India (10), Turkey (7), 55
Bangladesh (5), Morocco (4), Tunisia (2),
Indonesia (2), Macedonia (2), Vietnam
(2), Sri Lanka (1).
Coats/outdoor 6,161 7,163 7,883 100
jackets
Netherlands (4), France (3), Spain (3),
Romania (3), UK (2), Denmark (2),
Poland (2).
Extra-EU ex. DCs: 198 117 107 Switzerland (1), Hong Kong (<1), USA 1
(<1), South Korea (<1), Canada (<1).
DCs: 3,210 3,970 4,305 China (42), Vietnam (3), Morocco (1), 55
Indonesia (1), Turkey (1), Ukraine (1),
Tunisia (1), Bangladesh (1), India (<1),
Myanmar (<1).
Dresses/skirts 3,550 4,791 4,835
Intra-EU: 1,777 2,144 2,214 Italy (7), Germany (7), France (5), Spain 46
(4), Romania (4), Belgium (3), UK (3),
Netherlands (2), Denmark (2), Poland
(2).
Extra-EU ex. DCs: 141 151 131 Hong Kong (1), Switzerland (1), USA (1), 3
South Korea (<1).
Morocco (5), Tunisia (2), Sri Lanka (1),
Bangladesh (1), Indonesia (1), Macedonia
(1), Vietnam (1).
Indoor jackets 2,243 2,611 2,493 100
Intra-EU: 1,482 1,589 1,350 Germany (10), Italy (7), Romania (5), 54
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CBI MARKET SURVEY:
2004 2006 2008 Leading suppliers in 2008 Share

€ mln € mln € mln (share in % of total imports) (%)
Bulgaria (4), France (4), Spain (3),
Netherlands (3), Portugal (3), Poland (2),
UK (2).
Extra-EU ex. DCs: 115 95 108 Switzerland (3), Hong Kong (<1), USA 4
(<1), Japan (<1).
DCs: 646 927 1,035 China (22), Turkey (5), Morocco (3), 42
Tunisia (2), Ukraine (2), Macedonia (1),
Croatia (1), Vietnam (1), Egypt (1), India
(1).
Other products 6,524 7,222 7,101 100
Intra-EU: 3,514 3,467 3,420 Italy (9), Germany (9), Belgium (5), 48
France (4), Netherlands (3), UK (2),
Spain (2), Romania (2), Portugal (1),
Bulgaria (1).
Extra-EU ex. DCs: 327 263 257 Switzerland (2), Hong Kong (1), USA (1), 4
Canada (<1), Taiwan (<1).
Vietnam (2), Tunisia (1), Morocco (1),
Bangladesh (1), Indonesia (1), Thailand
(1), Pakistan (<1).
Source: Eurostat (2009)
EU imports of the product group woven trousers, shorts and bib & braces for men and
women increased 8% in volume to 2,369 million units in 2008, at an average import price of
€ 7.49 against € 7.34 in 2006. The important products within the product group woven
trousers for both sexes are cotton trousers other than denim, jeans and synthetic fibre
trousers.
EU imports of cotton trousers (other than denim), including casual trousers like chinos,
workers, cargos etc. increased considerably from 1,013 million units in 2006 to 1,154 million in
2008. Imports of jeans increased to 650 million units, of which 54% for men. Average import
prices for men’s jeans amounted to € 10.12 in 2008 (€ 10.36 in 2006) and for women’s jeans
€ 8.65 (€ 8.78 in 2006).
Imports of the total product group (trousers, shorts, bib & braces) concerned 45% men’s and
55% women’s in 2008, which was almost equal to the ratio in 2006.
The role of cotton trousers became more important: 76% of total imports was cotton made in
2008 against 72% in 2006.
Table 4.3 EU imports of woven trousers etc. by materials used, 2006-2008,

in million units
2006 2007 2008 2008
men women
Trousers 1,937 1,996 2,066 932 1,134
Shorts 229 307 284 126 158
Bib & braces 26 28 19 11 8
Total 2,192 2,331 2,369 1,069 1,300
of which:
- wool 29 28 30 20 10
- cotton denim 560 584 650 350 300
- other cotton 1,013 1,131 1,154 513 641
- synthetics 430 424 400 150 250
- artificial 30 30 30 9 21
- other 130 134 105 27 78
The import share (in value) for jeans from other EU countries accounted for 50% in 2008 (52%
in 2006), while imports from DCs increased from 42% in 2006 to 48% in 2008.
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CBI MARKET SURVEY:
The leading exporting countries in 2008 were: China (13% of total EU imports in value),
Turkey (12%), Italy (10%), Germany (8%), Belgium (7%), Tunisia (6%), The Netherlands
(5%), Bangladesh (5%), Pakistan (4%), Spain (3%) and the Czech Republic (3%. Almost all
supplying countries, including the leading suppliers in DCs, gained from the renewed popularity
of jeans, but imports from Italy, Bangladesh and Morocco decreased compared with 2006.
Fast-growing imports (>16% during whole period 2006-2008) came from China (+152%),
Germany (+26%), Tunisia (+21%), The Netherlands (+32%), Pakistan (+25%), Spain
(+88%) and India (+27%).
Average prices of imported jeans varied strongly from € 27.21 (Italy) to € 12.78 (Turkey) and
to € 4.57 (China).
EU imports of cotton trousers (other than denim) increased strongly in the period 2006-2008 in
volume (+11% to 966 million units) but fell in value (-43% to € 6.6 billion), which indicates an
average import price of € 6.88 in 2008 against € 7.90 in 2006. A major part of EU imports
came from DCs, namely 70% in terms of volume and 59% in value, against respectively 29%
and 39% from other EU countries.
Leading suppliers were China (284 million units at € 5.06), Turkey (53 million at € 10.66),
Germany (52 million units at € 10.84), Belgium (32 million at € 7.31), Tunisia (35 million at
€ 12.79), The Netherlands (15 million at € 12.61) and Bangladesh (125 million at € 3.77),
followed by Italy, Pakistan, Spain, Czech Republic and Poland. Imports from China boomed in
the period under review: +135% in volume to 284 million units against 20% lower prices,
namely € 5.06 in 2008. Average import prices also varied strongly in this product group,
namely from € 24.36 (Italy) to € 12.79 (Tunisia), to € 10.66 (Turkey), to € 4.83 (Pakistan) and
to € 3.77(Bangladesh).
EU imports of synthetic trousers decreased in the period 2006-2008 in volume (-10% to 293
million units) and in value (-15% to € 2.0 billion), of which 71% in volume and 54% in value
came from DCs in 2008. Leading suppliers were China (81 million units at € 4.45), Germany
(17 million units at € 10.63), Belgium (13 million at € 9.49) and Turkey (13 million at € 8.31).
Other important EU suppliers were Vietnam, Romania, Morocco, The Netherlands and Tunisia.
Imports of woven shirts and blouses increased in volume (+16%) and in value (+9%) in the
whole period 2006-2008. This growth was mainly caused by increased imports of cotton shirts
(and blouses) for men and women and of shirts (and blouses) of man-made fibres for women.
80% of men’s shirts imported in 2008 was made of cotton and 16% of man-made fibres, while in
2006 these percentages were respectively 76 and 19. Imports of women's blouses were for 56%
made of cotton in 2008, 34% of man-made fibres and 3% of linen. Imports of cotton blouses and
shirts, as well as of man-made fibres, increased to the detriment of blouses and shirts of other
textiles.
DCs played a more important role in EU imports of woven shirts for men (57% of total
imported value in 2008 against 56% in 2006) than for shirts and blouses for women (54% in
2008 and 49% in 2006).
The leading supplier of men’s shirts was China (209 million shirts at € 3.60 or 19% of total
value of EU imports), followed by Germany (8%), India (7%), Bangladesh (7%), Turkey (7%),
Italy (7%) and The Netherlands (4%) in 2008. The leading supplier of women’s shirts and
blouses was China (138 million shirts at € 4.78 or 17% of total value of EU imports), followed
by India (13%), Turkey (8%), Germany (8%), Italy (6%), Morocco (5%) and Romania (5%) in
2008.
Imports of woven outdoor jackets, such as anoraks, ski jackets etc. decreased from 403
million units in 2006 to 388 million in 2008. Average import prices increased from € 11.31 in
2006 to € 12.25 in 2008. Almost 68% of imported woven anoraks was made of man-made
fibres and 28% made of cotton in 2008, against respectively 69 and 27% in 2006.
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CBI MARKET SURVEY:
Table 4.4 EU imports of woven coats, anoraks etc., 2006-2008, in million units
2006 2007 2008 2008
o.w. men women
Over- and raincoats 164 176 182 56 126
Anoraks etc. 403 401 388 169 219
Total 567 577 570 225 345
of which:
- wool 23 30 38 10 28
- cotton 164 174 164 63 101
- man-made fibres 370 361 358 148 210
- other 10 12 10 4 6
EU imports from DCs fell considerably: from 319 million at € 8.65 in 2006 to 299 million
jackets at € 9.30 in 2008, respectively 84 and 85% of total imports came from China.
Export volume in this product group by China reached 255 million jackets in 2008. Average
import prices from China were 8% higher in 2008 than in 2006, respectively € 8.75 and
€ 8.11. Intra-EU trade increased in volume (+8%) during the same period to almost 86.0
million units but against higher prices, namely € 22.24 in 2008 against € 21.79 in 2006. Of the
ten most important suppliers, besides China, The Netherlands, Italy, Vietnam, Romania and
Indonesia were all confronted with lower exports to the EU, while exports by Germany,
Belgium, Denmark, France and Spain increased.
4.3 The role of DCs
Total EU imports from DCs increased in terms of volume (+41%) and value (+43%) in the
period 2004-2008, which indicates that average import prices grew by 1.5%. During the period
2006-2008, imports from DCs increased 10% in value. The different regions showed varied
patterns during the period 2006-2008:
• Imports from leading supplier China increased by 24% to reach an import share of 25% of
total EU imports in 2008, or 48% of total imports from DCs.
• Imports from Asian countries (excluding China) decreased 3%. Falling imports came from
Bangladesh (-10%), Indonesia (-8%), Thailand (-9%) and Myanmar (-16%). Rising
imports came from Vietnam (+22%), Pakistan (+2%) and Sri Lanka (+2%). Imports from
India stabilized. Imports from Asian DCs (excluding China) accounted for 12% of total
imports from DCs.
• Imports from Mediterranean countries increased by 3% in the review period. It should be
noted that exports to the EU grew during 2006-2008: by Turkey (+1%), Tunisia (+8%),
Macedonia (+16%), Egypt (+22%) and Albania (+25%). Imports fell from Morocco (-2%),
and Croatia (-22%). Mediterranean countries accounted for 14% of total imports.
• Imports from CEECs decreased 16% to € 270 million or less than 1% of total EU imports.
Imports fell from Ukraine (-17%), Moldova (-2%), Belarus (-16%) and Tajikistan (-23%).
• Imports of woven outerwear from ACP countries increased by 2% during 2006-2008 to
€ 166 million in 2008. 91% of ACP exports came from two countries: Mauritius (+13%)
and Madagascar (+8%).
• Imports from South American DCs fell 13% in the period under review to € 75 million in
2008, coming mainly from Mexico (+13%), Colombia (-26%), Brazil (-35%) and Peru (-
20%).
Table 4.5 Imports of outerwear from developing countries, 2004-2008

2004 2006 2008 Av.
€ 1,000 € 1,000 € 1,000 annual
million tonnes million tonnes million tonnes change
in value
Total EU 17,861 1340.1 22,967 1647.6 25,147 1775.5 10.2%
of which:
Germany 4,389 290.9 5,339 344.7 6,040 399.6 9.4%
United Kingdom 3,655 242.0 4,523 301.0 4,636 336.0 6.7%
France 2,334 134.3 2,809 161.4 2,948 176.6 6.6%
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CBI MARKET SURVEY:
2004 2006 2008 Av.

€ 1,000 € 1,000 € 1,000 annual
million tonnes million tonnes million tonnes change
in value
Italy 1,925 157.4 2,750 193.9 2,914 151.1 12.8%
Spain 1,341 102.1 2,190 153.5 2,671 186.0 24.8%
Belgium 1,172 93.0 1,433 113.6 1,516 114.9 7.3%
Netherlands 1,216 99.4 1,507 102.6 1,516 110.0 6.2%
Denmark 520 35.2 677 42.1 792 48.9 13.1%
Sweden 337 21.7 434 26.5 512 30.3 13.0%
Austria 169 9.0 232 21.4 268 24.0 14.6%
Poland 167 35.3 175 40.1 250 27.7 12.4%
Greece 113 9.6 158 12.5 242 32.4 28.5%
Czech Rep. 85 21.5 129 43.0 161 33.4 22.4%
Finland 77 5.4 125 8.4 145 9.2 22.1%
Ireland 68 4.7 116 8.8 127 11.1 21.7%
Romania 44 40.7 102 32.3 96 31.0 29.5%
Slovakia 23 6.5 49 13.9 92 29.9 75.0%
Portugal 32 2.8 34 2.7 45 3.8 10.2%
Slovenia 28 1.7 23 1.3 30 2.0 1.8%
Bulgaria 30 8.7 34 7.8 29 5.7 -0.8%
Hungary 47 8.2 43 5.2 27 2.7 -10.6%
Luxembourg 27 4.7 31 5.2 25 4.4 -1.9%
Lithuania 12 1.3 17 1.4 22 1.4 20.8%
Latvia 10 1.3 13 1.6 12 1.2 5.0%
Estonia 12 1.2 8 0.8 12 0.7 0.0%
Malta 10 0.8 8 1.0 10 0.6 0.0%
Cyprus 18 0.7 8 0.9 9 0.9 -12.5%
As can be derived from table 4.6 the share of DCs in EU imports of total woven products
increased. However, the role of DCs in EU imported woven outerwear products varied strongly,
for example: two thirds of total imports of woven and knitted garments for babies came from
DCs, against 36% of total imported woven suits and ensembles.
Table 4.6 EU imports of woven outerwear and DC share by products,

2004-2008, in € million
2004 2006 2008
€ DC share € DC share € DC share
million in % million in % million in %
Overcoats for men 733 38 906 44 955 47
Overcoats for women 1,360 38 1,700 48 2,182 49
Outdoor jackets for men 1,936 58 2,212 59 2,297 59
Outdoor jackets for women 2,133 61 2,345 62 2,450 58
Suits/ensembles for men 1,495 29 1,455 37 1,505 36
Suits/ensembles for women 605 41 497 45 371 36
Indoor jackets for men 1,068 28 1,436 33 1,379 39
Indoor jackets for women 1,175 30 1,175 38 1,114 44
Trousers etc. for men 7,708 41 8,449 46 8,977 53
Trousers etc. for women 8,381 43 9,071 48 8,778 54
Dresses 1,243 44 1,788 50 2,931 51
Skirts 2,307 47 3,003 54 1,904 52
Shirts for men 3,393 49 3,836 56 3,977 57
Shirts/blouses for women 2,864 41 3,488 49 3,981 54
Babies‘ garments 723 64 885 67 871 67
Active sportswear 848 46 796 48 723 49
Clothing accessories 1,134 40 1,288 49 1,308 44
Other 1,717 41 2,302 45 2,321 49
Total 40,823 44 46,632 49 48,024 52
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CBI MARKET SURVEY:
4.4 Exports
The EU member states exported 683 thousand tonnes of woven outerwear with a value of
€ 34.7 billion in 2008, representing an annual increase in value of 3.1% in 2004-2008. As
described in the previous chapters, EU exporters suffered, during the review period, because of
the appreciation of the euro against the US dollar.
Export activities by EU countries vary strongly. The leading EU exporter of woven outerwear
was Italy (24% of total EU exported value), followed by Germany (17%), France (8%),
Belgium (8%), Spain (6%), The Netherlands and Romania (each country 5%).
An overview of exports of woven outerwear by the EU countries (in volume and value) is given
in the table below.
Table 4.7 EU exports of woven outerwear, 2004-2008, in volume and in value

2004 2006 2008 Av. annual
€ 1,000 € 1,000 € 1,000 change
million tonnes million tonnes million tonnes in value
Total EU 30,844 851.9 33,467 732.1 34,657 683.4 +3.1%
of which:
Italy 7,145 132.8 7,893 70.6 8,445 53.2 +4.5%
Germany 4,831 121.0 5,401 146.9 6,034 173.8 +6.2%
France 2,315 55.9 2,640 23.2 2,917 25.2 +6.5%
Belgium 2,407 23.1 2,541 23.2 2,793 21.8 +4.0%
Spain 1,483 14.3 1,919 18.1 2,070 19.5 +9.9%
Netherlands 1,706 27.6 1,827 29.8 1,842 30.1 +2.0%
Romania 2,517 111.0 2,343 87.5 1,814 60.2 -7.0%
United Kingdom 1,670 120.6 1,809 89.8 1,781 76.9 +1.7%
Denmark 925 27.9 1,141 33.8 1,269 34.1 +9.3%
Poland 1,090 42.9 1,041 34.5 1,188 37.3 +2.2%
Bulgaria 722 39.9 761 35.7 693 27.9 -1.0%
Austria 491 11.2 670 15.6 686 15.2 +9.9%
Portugal 747 19.1 663 17.2 614 13.4 -4.5%
Czech Rep. 432 12.1 536 12.1 502 12.2 +4.1%
Sweden 284 7.9 397 8.7 419 9.3 +11.9%
Slovakia 342 12.1 322 22.8 334 33.5 -0.6%
Hungary 459 14.7 350 16.7 227 9.2 -12.6%
Lithuania 337 15.6 307 10.7 223 6.1 -8.5%
Greece 145 6.5 189 7.4 173 6.2 +4.8%
Slovenia 151 2.6 155 2.8 157 3.0 +1.0%
Finland 105 2.0 118 2.6 126 3.0 +5.0%
Estonia 120 4.6 104 2.9 102 2.2 -3.8%
Luxembourg 88 5.0 107 5.3 99 4.8 +3.1%
Latvia 85 3.4 75 2.6 69 2.1 -4.7%
Ireland 138 14.3 102 8.2 57 2.5 -14.7%
Malta 98 3.4 49 3.3 16 0.6 -20.9%
Cyprus 11 0.4 7 0.1 7 0.1 -9.1%
A declining share went to countries outside the EU in the period under review: 27% in 2004
and in 2006 and 26% in 2008. The main destinations outside the EU were Switzerland (5% of
total EU exports and 20% of non-EU exports), Russia (4% of total exports), the USA (3%),
Japan (2%), Hong Kong, Norway, Turkey and Ukraine (each country 1%).
Re-exports
Exports by major EU countries as described above include so-called re-exports: imported
products, which are exported to other (mainly other EU) countries. The volume of re-exports
can be estimated when national production statistics are available and the destination of
production can be divided into domestic sales and exports by industry. For instance: available
production figures in The Netherlands are rather limited and include production abroad by
manufacturers. For that reason, re-exports by The Netherlands cannot be determined,
Page 28 of 50
CBI MARKET SURVEY:
however, it can be assumed that between 35% of Netherlands woven outerwear imports is re-
exported. Besides The Netherlands, re-exports by Germany (35%), Denmark (35%), France
(30%) and Austria (25%) are significant, while re-exports in the other major EU countries are
more limited, but growing. Highest re-exports came from Belgium, of which the function of
transit trade country increased considerably in recent years and can be estimated at 50%.
± An increasing share of EU imports of woven outerwear came from DCs: 52% of total
imports in 2008, against 49% in 2006.
± Import shares from DCs were higher than average for outdoor jackets for men (59%) and
women (58%), trousers for women (54%), shirts for men (57%) and blouses for women
(54%) and babies’ garments (67%).
Import shares were lower than average for overcoats for men (47%) and women (49%),
suits and ensembles for men and for women (each 36%), indoor jackets for men (39%)
and women (44%), active sportswear (49%) and clothing accessories (44%).
Imports of other product groups were around the average.
± The agreement between the EU and China (10-06-05) to limit Chinese exports to the EU of,
among others, men’s trousers, women’s blouses and dresses ended on December 31, 2007.
+ Many factors like, among others, increasing costs, lack of workforce and quality and longer
lead times limit the growth of Chinese exports. These criteria mean the relative advantage
of China over other countries, such as Bangladesh, Vietnam etc., is decreasing in the longer
term.
+ Imports from DCs will grow faster than total imports in the coming years, mainly to the
detriment of other (EU and non-EU) countries.
+ Import prices will be under pressure and the decrease in average import prices will exert
further pressure on EU producers. In particular, the effect on the elimination of quotas will
probably lead to a fall in prices.
± To satisfy the requirements of importing European companies, exporters in DCs will be
faced with increased demands for higher quality and environmentally friendly products.
More information concerning environmental aspects can be found in CBI’s website. As long
as exporters apply the right strategy and a carefully thought out development plan, there is
no reason why these challenges cannot be met.
4.6 Useful sources
• 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
• Euratex bulletins - http://www.euratex.org
Page 29 of 50
CBI MARKET SURVEY:
5 Price developments
5.1 Price developments
The clothing market in the EU countries is intensively competitive and prices vary widely
according to the product and type of outlet. A rough indication of differences in price levels by
types of outlets has been given in chapter 2. EU woven outerwear retail prices grow more
slowly than overall prices.
According to a study by Eurostat on comparative clothing price indices, there were five clusters
of countries where prices are higher or lower than the average (100) in 2008:
• In descending order from the highest, Finland (121), Luxembourg (118), Sweden (115),
Austria (112), Lithuania (113), Latvia (113) and Italy (111).
• Countries with above average prices were Belgium (110), Estonia (109), The Netherlands
(109), Greece (108), Denmark (108), Spain (103), Cyprus (103) and Malta (103).
• Countries on the EU average were Germany (100) and Slovakia (100).
• Countries with below average prices were Ireland (93), Czech Rep. (93), Hungary (91),
France (91), Portugal (91) and UK (91).
• At the other end of the spectrum, those with the lowest prices were Slovenia (85), Poland
(85), Romania (65) and Bulgaria (58).
Some markets in the EU shrank, while most others are growing at a slower pace. This
development has placed pressure on price levels. Due to the diversity in products, it is not
possible to focus on prices for individual products.
Table 5.1 gives an overview of consumer and import prices in the individual EU countries during
the period 2006-2008.
Table 5.1 Changes in clothing consumer prices in the EU, 2006-2008

2005-06 2006-07 2007-08
Austria -0.2% +2.2% +4.8%
Belgium -0.3% +0.4% +1.3%
Bulgaria +3.8% +7.0% +3.7%
Cyprus -4.3% -0.6% -6.9%
Czech Republic -6.3% -0.6% -3.9%
Denmark -1.9% -1.7% +1.2%
Estonia +3.5% +4.1% +1.6%
Finland -2.0% +0.3% +0.7%
France +0.2% +0.7% +3.5%
Germany -0.8% +0.9% +1.4%
Greece +2.3% +3.2% +3.9%
Hungary -0.7% +1.0% +2.5%
Ireland -1.9% -3.3% -13.2%
Italy +1.2% +0.7% -0.4%
Latvia 0.0% +2.3% -5.7%
Luxembourg +0.1% +0.5% +0.4%
Malta -1.8% +0.4% -2.5%
Netherlands -0.2% +2.2% +4.8%
Poland -6.9% -7.2% -7.6%
Portugal +0.5% +2.2% -2.4%
Romania +3.9% +3.3% +2.5%
Slovakia -0.1% +0.8% -1.1%
Slovenia -0.5% +1.6% -1.8%
Spain +1.2% +1.1% -2.2%
Sweden +2.0% +2.4% +2.0%
United Kingdom -4.0% -3.7% -8.2%
EU -0.5% 0.0% -1.0%
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CBI MARKET SURVEY:
In some EU countries, the drop in import prices stimulated a reduction in consumer prices and
a corresponding growth in volume of retail sales. Consumer prices in the EU decreased less in
the review period than import prices. Without entering into a polemic, it is worthwile to stress
that recent studies confirmed that there is a correlation between the type of retail structure in
the clothing market and the changes in consumer prices. However, several other elements
pollute the way in which each market reacts to the import price drop.
Although the definition of a pair of jeans is relatively straightforward (it is given in appendix A),
the pricing of jeans is anything but straightforward. One pair of jeans, looking as though it has
styling similar to another and made from similar denim can vary considerably.
An acceptable CIF price for a basic 5 pocket-1x washed-unbranded jeans starts from € 8-10.
Higher prices depend on quality of fabric (weight, composition etc.), country of origin of denim,
finishing, accessories (label, zipper, buttons etc.), sizes etc.
An overview of prices for the various segments is given in table 5.2 of this survey.
Table 5.2 Examples of structure in costing price of jeans in euro (€)

Discount Private Branded Designer
jeans label jeans jeans jeans
Retail price 20.00 30.00 55.00 120.00
CIF price 9.00 11.00 18.00 40.00
Materials 4.50 5.50 7.50 10.00

Labour 1.80 2.50 3.50 10.00
Overhead 1.80 2.00 5.00 16.00
Profit 0.90 1.00 2.00 4.00
Total 9.00 11.00 18.00 40.00
Source: Aroq denim jeans wear, 2nd edition
The average metre of denim per jeans can be estimated at 1.87 square metres, composed of
jeans for men (2.10 m²), for women (1.95 m²) and for kids (1.42 m²).
For average consumer and import prices in the major EU countries, we refer to the individual
country surveys.
5.2 Useful sources

There is a number of ways to find out about EU outerwear prices, depending on whether you
want to find out about manufacture, wholesale or retail prices. A good way to obtain
information about prices and price levels in the EU is by visiting one of the major trade fairs or
trade centres or 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
garments may appear to be similar, but there may well be very sound reasons why their prices
differ.
Shopping in the prospective target country, at several retail shops is another good way of
obtaining information about prices at retail or consumer level, but also about fashion, colours
and qualities. You can find prices in mail order catalogues, but the main source now is Internet.
There are many Internet websites providing retail prices. Many of them are country-specific
and mentioned in the surveys covering individual countries. To see how the same product
compares across different EU countries, you may best be served by looking at websites of
retailers (which are sometimes also manufacturers) which have a presence in a number of EU
countries, and by visiting the individual country sites.
A good link to wholesalers and their prices in the UK is the UK Wholesale Suppliers Directory
http://www.thewholesaler.co.uk/trade/distributor/Clothing_and_fashion_UK_wholesale_directo
ry
Prices charged by competitors can be found by browsing their Internet sites or looking for
general sites like http://www.globalsources.com or http://www.alibaba.com.
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CBI MARKET SURVEY:
6 Market access requirements

As a manufacturer in a DC preparing to access EU markets, you should be aware of the market
access requirements of your trading partners and the EU governments. Requirements are
demanded through legislation and through labels, codes and management systems. These
requirements are based on environmental, consumer health and safety and social concerns.
You need to comply with EU legislation and have to be aware of the additional non-legislative
requirements which your trading partners in the EU might request.
For information on legislative and non-legislative requirements, go to ‘Search CBI database’ at

http://www.cbi.eu/marketinfo, select outerwear and the EU in the category search, click on the
search button and click on market access requirements.
There is no EU quality standard for outerwear, sportswear and clothing accessories. Most of the
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. The technical committee of the European
Clothing Association (ECLA) published an example of recommendations concerning
characteristics and faults in woven fabrics intended to be used for clothing, in which a distinction
is made between:
• recommendations, limited to the characteristics of fabrics, which are detectable, by an
experienced person with or without the aid of instruments in general use. A fault is
considered to exist if the irregularity is evident in the fabrics as delivered or is detrimental to
the final garment;
• recommendations, limited to the characteristics of fabrics, which can only be detected with
the aid of suitable equipment. Each characteristic described comprises: definition, method of
testing and minimum quality standards and as far it occurs: possible allowable tolerances
compared with the values of the sample and eventual commercial implications.
Methods of testing fabrics and/or garments are mainly based on ISO standards
(http://www.iso.org) and otherwise on European norms (EN) or national standards (DIN, NEN
or BS, respectively for Germany, The Netherlands and UK), like:
• care labelling (ISO 3758);
• dimensional stability aspects, like steaming (DIN 53894), fusing (DIN 54311),
washing/tumbling (ISO 3759, 5077 and 6330), dry cleaning (ISO 3175);
• mechanical and physical properties like tensile strength strip (ISO 5081), tensile strength
grab (ISO 5082), tear strength (ISO 9290), seam slippage (BS 3320), abrasion resistance
(ISO 2313), crease tendency/recovery (ISO 9867), fibre penetration (SIS 650047), spray
test (ISO 4920) etc.;
• colour fastness related to several aspects like washing, light, water etc. (ISO 105).
The minimum standard and the test method are described for fabrics and yarns. For example:
a tolerance of +/- 5% in weight (according to ISO 6348), or a maximum shrinkage of 3% and
maximum elongation of 3% for 100% cotton (ISO 3759, 5077 and 3175).
For example, a description of manufacturing requirements can include, among others:
minimum seam allowances for pressed open seams (1.0 cm), for closed seams (0.7 cm) and
for waistbands (1.0 cm); leg, seat and yoke seams must be sewn with a lapped seam which is
sewn with two needles producing double chain stitch, or a safety stitch which may be stitched
flat with a double chain stitch. Criteria for sewing of fastenings, pockets, waistbands, usage of
yarns (monofilament is not allowed) can be part of the requirements.
Despite EU harmonisation, which enables free trade between EU member states, individual
markets have different requirements regarding garment types, sizes, colours etc.
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For more information on non-legislative requirements applicable to outerwear go to the CBI

website at http://www.cbi.eu/marketinfo, select your market sector and the EU in the category
search, click on the search button and click on your subject of interest under non-legislative
requirements for an overview of all documents on the subject concerned.
Packaging
Information on packaging legislation is included in the CBI market information database.
Additional information on packaging can be found at the website of ITC on export packaging:
http://www.intracen.org/ep/packaging/packit.htm.
For example: Jeans and other cotton trousers are normally purchased container-wise and are
packed in boxes, depending on the buyer’s wishes, of 25-30 units in a box and 10-12 pairs of
trousers in a recyclable or biodegradable plastic bag. Total weight per box may not exceed 25
kg. Other instructions from the importer on packaging must be followed accurately.
Size marking
The following body measurements are used in the EU: body length, chest, waist and hip size.
These four basic measurements determine the fitting of the garments. The measurements in
the tables below are an indication and averages of the size tables used by home shopping
companies and international clothing chains. The following sizes are generally used in the EU
(note that, for all sizes, the body length of women is 168 cm and for men 176 cm):
Table 6.1 Size table for women's outerwear (body sizes) in cm

Character sizes XS S M L XL XXL
figure sizes 34 36 38 40 42 44 46 48 50
Chest width 80 84 88 92 96 100 104 110 116
Waist size 61 64 68 72 76 81 86 91 97
Hip girth 86 90 94 98 102 106 110 114 118
Table 6.2 Size table for men's outerwear (body sizes) in cm, except trousers/jeans
Character XS S M L XL XXL
sizes
figure sizes 42 44 46 48 50 52 54 56 58 60
Chest width 84 88 92 96 100 104 108 112 116 120
Table 6.3 Size table for men's trousers (garment sizes) in cm:
figure sizes 40 41 42 43 44 45 46 47 48 49
Waistband width 68 68 72 72 76 76 80 80 84 84
side length 100 108 102 110 104 111 104 112 106 112
figure sizes 50 51 52 53 54 55 56 58 60 62
Waistband width 88 88 92 92 97 97 102 108 114 120
side length 106 113 108 114 108 114 111 111 111 111
In the major EU countries, except the UK and Ireland, the same figure sizes are used, although
the actual sizes are not equal. For instance: for a woman with a bust of about 88 cm, a waist of
about 68 cm and hips of about 94 cm, her dress size at the moment is 38 in Germany,
Denmark and The Netherlands, C38 in Sweden and Finland, 40 in Belgium and France, 44 in
Italy, 44/46 in Spain and Portugal. As mentioned above, the UK uses a different sizing system:
figure size 36 in Germany (and some other EU countries) is indicated in the UK (and Ireland)
as 8, 38 as 10 etc.
International clothing size comparisons can be found at several websites, such as:
http://en.wikipedia.org/wiki/Clothing_sizes or
http://www.brightonarea.co.uk/ebay/conversion.html
Because of e-commerce and internationalisation of retail shops (for instance: H&M), one can
say that the above size table is used as a standard in all EU countries. In some cases a
garment will have an indication for all different countries with their own size, as mentioned
above.
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Jeans sizes
Jeans are sold internationally in inch-sizes. They are read as follows: the first number refers to
the girth of the waist and the second to the inside leg seam (inseam). Both are expressed in
inches.
Table 6.4 Conversion table for women’s sizes:

Inches 26 27 28 29 30 31 32 33 34 35 36
Sizes 34 - 36 38 - 40 42 - 44 - 46
In the table below, jeans sizes are compared with the usual size marking for outerwear.
WW (horizontal) means: waistband width in inches and SL (vertically) means: side length
(in-seam) in inches.
Table 6.5 Conversion table for men’s sizes:

WW 27 28 29 30 31 32 33 34 35 36 38 40 42
SL: 32 - - - - - - - 24 - 25 26 - -
34 84 86 88 44 - 46 48 50 - 52 54 56 58
36 - - - - 90 94 - 98 - 102 106 - -
Size marking for babies’ and children’s wear
The following groups are those mainly distinguished:
Years groups
0- 2 babies Infants
2- 6 toddlers
6 – 12 middle group/school
12 – 14 preteens
14 – 16 teenagers
For the purposes of the sizing of clothes, children are best grouped into infants (younger than
7 years), boys and girls. Infants also constitute a group of their own, because their garments
are usually not 'fit-critical'.
Infants’ wear (body sizes)

The Swedish 'Centilong' system based on height values is used in most of the EU countries.
The size range varies from 50-104 cm with an intersize of 6 cm. There is one standard for all
these sizes and they can be ranked as follows:
Table 6.6 Infants’ wear (body sizes/heights) in cm

Height (in cm) 50 56 62 68 74 80 86 92 98 104
Chest 40 42 44 46 48 50 52 54 55 56
Waist 40 42 44 46 48 49 50 51 52 53
Hips 41 43 45 47 49 51 53 55 57 59
Arm length 18 20 22 24 26 28 30 32.3 34.6 36.9
Inside leg length 16 19 22 25 28 31 34 37 40.6 44.2
Other children’s wear

Depending on the garment concerned, the following dimensions are used for boys’ and girls’
wear:
Table 6.7 Boys' wear (body sizes/heights) in cm.

Height 110 116 122 128 134 140 146 152 158 164 170 176 182 188 194
Chest 58.0 59.0 60.0 62.0 64.0 67.0 70.0 73.0 77.0 81.0 85.0 88.0 91.0 94.0 97.0
Waist 54.0 55.0 56.0 57.0 59.0 61.0 63.0 65.0 68.0 71.0 74.0 77.0 80.0 83.0 86.0
Hips 59.0 61.0 63.0 65.0 68.0 71.0 74.0 77.0 81.0 85.0 89.0 92.0 95.0 98.0 101.0
Arm length 39.1 41.4 43.7 46.0 48.3 50.6 52.5 55.3 57.5 60.0 62.5 65.0 67.0 69.0 71.0
Inside leg length 47.5 51.0 54.5 58.0 61.5 65.0 68.0 71.0 74.0 77.0 80.0 83.0 86.0 89.0 92.0
Neck girth 28.0 28.5 29.5 30.5 31.5 32.5 33.5 34.5 35.5 36.5 37.5 38.0 38.5 39.0 39.5
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Table 6.8 Girls' wear (body sizes/heights) in cm.

Height 110 116 122 128 134 140 146 152 158 164 170 176 182 188
Chest 58.0 59.0 60.0 62.0 64.0 67.0 71.0 75.0 79.0 83.0 86.0 89.0 92.0 95.0
Waist 54.0 55.0 56.0 57.0 59.0 61.0 63.0 65.0 67.0 69.0 71.0 73.0 75.0 77.0
Hips 61.0 63.0 65.0 67.0 70.0 73.0 77.0 81.0 85.0 89.0 93.0 96.0 99.0 102.0
Arm length 39.1 41.4 43.7 46.0 48.3 50.6 52.8 55.0 57.3 59.5 61.5 63.5 65.5 67.5
Inside leg length 47.5 51.0 55.0 59.0 63.0 67.0 70.0 72.5 75.0 77.5 80.0 82.5 85.0 87.5
Neck girth 28.0 28.5 29.0 29.5 30.0 30.7 31.5 32.2 33.3 33.7 34.5 35.5 36.5 37.5
Shirts and blouses

Sizes for men’s shirts are based on neck girth in cm or inches. They vary respectively from 37-
48 cm and from 15-19 inches and can be extended with other measurements, of which arm
length is the most important. The sizes XS-XXL are also used for leisure or sport shirts,
whether or not in combination with the usual shirt size. The standard outerwear sizes are used
for women’s and children’s wear.
Gloves
Gloves are the only clothing item for which there has been a reasonably consistent sizing
system, applicable internationally, the so-called French sizing system. Normal sizes for
women’s gloves are in inches.
Table 6.9 Women’s gloves sizes in inches

6 6¼ 6½ 6¾ 7 7¼ 7½ 7¾ 8 for leather
6 6½ 7 7½ 7¾ 8 for cotton and nylon
The introduction of stretch nylon yarns has resulted in one-sized gloves which fit any hand
from size 6 to size 8. Popular sizes for men have been 7½ - 11½ and for women 6-8½, both
with ½ -inch steps between sizes.
It should be noted that different interpretations by manufacturers, wholesalers and retail

organizations can occur regarding sizing! Different interpretations are also possible
between different countries. Exporters should discuss this in detail with (potential) clients,
to obtain clear information.
Labelling
There are two kinds of requirements in the EU: mandatory and voluntary. The mandatory
requirement for all EU countries is the fibre content or the composition of the textiles used.
With regard to fibre content: the indication 100% or pure can be used within a margin of 2
percent of the weight of the final product. Other fibres with a weight of less than 10 percent of
the weight of the final products can be mentioned. In that case all (eventual) other fibres have
to be mentioned. The official language of the country has to be used on the labels.
Optional requirements are:
• Care-labelling/washing instructions. An international care-labelling programme, patterned
after similar programmes, is in use in many countries including countries outside the EU.
The programme makes use of five basic symbols which are colour-coded; the symbols
relate to the properties of colour fastness, dimensional stability, effect of retained chlorine
(bleach), maximum safe ironing temperatures and certain other properties. In the EU
symbols as published by Ginetex (http://www.ginetex.net) are obligatory.
• Origin marking: the name of the country of origin should be mentioned. It is not permitted
to mention the name of a country other than the country of origin.
• Other possibilities are: size, brand or product name and other consumer information. There
is an increasing awareness of the need to keep the consumer informed about his/her
prospective and current purchases.
Regarding Austria and Italy, care-labelling/washing instructions are mandatory requirements,

while in Spain the complete address of the exporter (otherwise the importing company) has to
be mentioned on a label. Countries with mandatory requirements other than mentioned above
are discussed in the relevant survey.
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The place of the label in garments varies (mostly neck or side-seam) and can be part of the
importer’s requirements.
Tariffs and quotas

Up-to-date information on import tariffs and an updated list of least-developed countries
(LDCs) can be obtained from the Customs authorities in Rotterdam, The Netherlands, through
their on-line system, known as the Integrated Tariff of the European Communities (TARIC) at
http://www.douane.nl. Click on ‘Business’ and on ‘Imports’ where you will have to mention the
HS code of the clothing product concerned; a detailed list of HS codes can be found in
Appendix A of this survey. Other sources of information: the EU export helpdesk at
http://exporthelp.europa.eu.
The agreement between the EU and China (June 2005) to limit Chinese exports to the EU of,
among others, pullovers, men’s trousers, blouses, T-shirts, dresses etc., came to an end on
December 31, 2007. The European Commission decided not to continue imposing quotas on EU
imports from China. More information can be found on http://trade.ec.europa.eu/sigl or
http://exporthelp.europa.eu.
Anti-dumping measures
Anti-dumping implies that, under WTO regulations, exporters are expected to sell their
products at a fair market value, at a price above cost and without imposing higher domestic
prices for the same product that would, in effect, subsidize their lower export prices. In the
event of predatory pricing by a particular company or country, the importing country is allowed
to impose a duty surcharge on the imported product, to bring the final price up to fair market
value. The latest information on anti-dumping can be found at http://exporthelp.europa.eu.
Anti-fraud investigations and actions

The EU is stepping up anti-fraud investigations and actions against fraud, designed to:
• circumvent trade policy measures, such as anti-dumping measures;
• benefit illegally from preferential treatment such as that under RGSP;
• cheat consumers (claiming EU origin for products produced elsewhere);
• combat counterfeiting and piracy (copying exclusive designs and models without permission
of the owner).
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CBI MARKET SURVEY:
7 Opportunity or threat?
An overview of the general opportunities and threats has been given at the end of the previous
chapters: Consumption (chapter 1), Production 2 and Trade (3 and 4) in this EU survey.
Specific opportunities in each EU market can be found in Chapters 1 and 3 of the CBI market
surveys on individual countries. However, to define the opportunities more realistically, it is
necessary to know the trends, in particular in the fashion industry, like outerwear. Once the
trend is clear, it is important to know which target group is involved and in which country.
Knowing the trends

• There is plenty of information available on trends and you can find some of the main trends
in this survey as well as seasonal trends in CBI fashion forecasts
(http://www.cbi.eu/marketinfo), also in several magazines as mentioned in the surveys of
individual countries.
• In order to understand the trends, i.e. where they come from and how long they are likely
to last, try to recognize the underlying demographic changes and consumer life styles. Try
to identify a trend which may be suitable for your product, for example: women are
becoming larger and heavier, which has led to a marked increase in demand for bigger
sizes.
• 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. For
example, while there is a rapid increase in the number of people who choose fashionable
outerwear as a part of their life style, there is another growing group of people who prefer
quality and comfortable outerwear, which they can use for a long time.
• 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 clothing
chains.
Approach to the EU market

• The EU and, generally spoken, all major EU countries and other Western and Northern EU
countries have a high share of DC imports in the woven outerwear sector, which indicates
that most EU countries are receptive to imports from DCs.
• Most EU companies have willingly sourced in cheaper labour countries (mostly DCs) and
manufacturers have even shifted their operations to those countries.
• Try to find out which EU countries really offer an export opportunity. Both in terms of
consumption (and production) and imports, a few countries have the biggest share, but
these big countries generally have lower rates of growth. The smaller countries have shown
bigger rates of growth, but the starting volumes are somewhat smaller. You can assess this
and determine whether it could be favourable for you to start submitting offers to one
group or the other - or in one country belonging to the first group, or in a country
belonging to the second group.
• Furthermore, all product groups seem to move in particular and different ways in each of
the countries. Place your offer in the country in question according to these movements
and the different volumes of imports (i.e. jeans in Spain, cotton shirts in CEECs, etc.).
Generally, it will be easier for exporters in DCs to stay out of big producing countries and
concentrate on medium-sized markets, where good price-quality ratios can facilitate entry.
• Another important issue is the variation in average import prices. The most sustainable and
enduring way for DCs to enter the outerwear sector in the EU is by placing their offer in
product and country markets where average import prices are increasing and, hence, value
is being enhanced and not eroded. Decreasing average import prices indicate erosion, while
increasing average import prices indicate value enhancement. Product groups, which have
increasing average import prices at EU level are, among others: denim trousers, cotton
trousers other than denim, shirts and blouses. This analysis can be done for each of the
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• Instead of just focusing on a few large EU markets, it would be better to summarise all
opportunities and threats you have found in the outerwear surveys on matters such as:
market development, your target group, market niches, trends in fashion, design,
production trends, outerwear trade flows, price developments, market access requirements.
Once you have recognised your opportunities, you will have an idea as to which are the
best EU countries to approach.
Identify your strengths and weaknesses

• The result of this analysis depends on your specific situation e.g. proximity to the EU
market, small or large company, flexibility, overhead costs, knowledge of your export
market etc.
• The next step is to examine your own strengths and weaknesses. Try to determine which
type of exporter you are (CMT producer, FOB producer, producer of private labels or
producer of own design, mainly using brand trademarks). Topics to be assessed are
described in ‘Guidelines for exporting woven outerwear to the EU’.
• For example, if you are trying to enter the Spanish market at the top or middle segments of
the market, your own capabilities are crucial for success. Design is highly valued in Spain
so, as a new supplier, you must be able to provide your customer with access to a quality
design team, which understands the rapidly changing trends and styles. This is as
important as production skills and capacity.
• If you are able to do this, you have a good opportunity. However, as Spanish fashion
changes rapidly, buyers are not always loyal to particular overseas suppliers, so you may
lose out to another supplier in your own country or a neighbouring country. This is a major
threat, especially when you already have made some initial investment.
So, try to optimise your strengths and see how to overcome weaknesses in the future, as well
as how to deal with threats in the marketplace. This analysis will be crucial for your decision on
whether or not to start exporting to the EU.
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CBI MARKET SURVEY:
APPENDIX A Product characteristics

A-1 Product groups and types of products
This survey ‘The woven outerwear market in the EU’ includes coats and raincoats; outdoor
jackets; suits and ensembles; indoor jackets; dresses and skirts; trousers and shorts; shirts and
blouses; sportswear; babies’ garments; and, clothing accessories (scarves, shawls, gloves, ties
etc.). Besides this product classification (mainly used for trade statistics), the segments women’s
outerwear, men’s outerwear and children’s outerwear are included (used for consumption
statistics).
The broad definition of woven outerwear means that, in addition to this report, the CBI market
surveys ‘Knitted outerwear’, 'Bodywear’ (covering underwear, nightwear, swimwear and
hosiery) and Personal Protective Equipment (including workwear) facilitate a complete view of
all types of clothing made of textiles.
Short descriptions of the main (textile) products under review are given below.
• Jeans. Jeans can be defined as ankle length trouser, most probably, but not exclusively,
with five pockets (the five-pocket Western jean), made from cotton woven as a 3/1 warp-
faced twill fabric, with a yarn dyed warp and an un-dyed weft yarn; traditionally (and still
most usually), the warp is indigo dyed.
Jeans were originally worn by farmers and workmen. The pants were styled with
topstitching, two patch pockets, two swing pockets, a V-shaped yoke in back and rivets
reinforcing points of strain. In the 1960s, adapted as a general fashion with flared legs in
same cut, but made of many fabrics including denim, bleached denim, printed fabrics,
corduroy and even velvet. The introduction of the watch-pocket (on the right side in front)
added to carry money led to the classical five pocket jeans. The most common material
used is 100% cotton.
Styles in jeans do not change frequently. Developments in fashion are often small details
like fashion forward seams and usage of (new) techniques of washing and/or finishing.
The cut of jeans varies in width, rise and thigh. Most popular styles in width are illustrated
below.
Skinny Straight or latter Boot Flare Wide
Revival of the Basic Jeans Revival of the 70s

80s
Tight fit Maintains its Breaks on Breaks on average Full in width
Decreasing width width from the average 2 to 4 4 to 7 inches from from the tight
from the knee to knee to the leg inches from the the knee to the leg to the leg
the leg opening opening knee to the leg opening opening, or
opening even have a
wider hem
Leg opening: Leg opening: Leg opening: Leg opening: Leg opening:
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10-14 inches in 14-17 inches in 17-20 inches in 20-23 inches in 22 inches or

circumference circumference circumference circumference more in
circumference
Source: http://www.truejeans.com
The straight (basic jeans) is the most popular nowadays and in the coming seasons,
because it suits a large target group without any age limit.
• Trousers other than jeans In particular, the popularity of casual trousers (chinos) and
leisure trousers (workers, combat trousers) is high. These trousers are made of 100%
cotton, of which corduroy represents a small part of the market. Fabrics of wool and
polyester/wool are used for formal trousers for men. Shorts also increased in popularity. It
is difficult to tell where a short ends and a trouser begins.
• Coats and raincoats. Coats can be described as hip-length to full-length outerwear, with
sleeves designed to be worn over other clothing for protection against cold/wet. Besides
various lengths, there are variations in general use: fitted, straight or full (swing back)
silhouette, buttoned (single- or double-breasted) or wrapped, with varying hem lengths and
design details. Types of coats are overcoat or topcoat, car coats, capes, cloaks etc. Under
the raincoat category come, among others: all-weather coat (waterproofed or water-
repellent coat sometimes made with zip-in linings (usually of acrylic pile), to adapt to
various temperatures); trench coat and rain cape. It should be noted that coat types like
Burberry and London Fog are based on registered trademarks.
• Outdoor jackets (anoraks etc.); in statistics, in the trade and among consumers, outdoor
jackets are referred to under various different names, like anoraks, wind-cheaters, wind-
jackets, ski-jackets, blouson jackets, bomber jackets etc. Casual jackets generally come in
two lengths: full length jackets or the shorter (waist-length) blousons or bomber jackets.
Outdoor jackets come in a wide range of materials: textile fabrics as well as leather/suede
(see below). Textile fabrics cover common fabrics like cotton, polyester, wool and several
mixtures and high-performance fabrics and/or finishes such as Sympatex, Gore-Tex,
Aquatex, Polartec, Isotex, Teflon etc.
• Suits and ensembles include combinations of jacket and trousers and, possibly,
vests/waistcoats for men designed to be worn together, either in matching fabrics and/or
colours (suits eventually with vest/waistcoat) or contrasting fabrics (ensembles). For
women, the combination can be extended to jackets and/or trousers, dresses and/or
jackets, jackets and/or skirts and dresses and coats.
• Indoor jackets are short coats worn by men and women. These can be single-breasted,
double-breasted, zippered or wrapped; dressy, casual or functional depending upon design
and fabrics used. Another name used for an indoor jacket is blazer.
• Dresses are made of lighter weight fabrics, synonymous with robe, frock or gown. Current
fashions include among others: A-line, blouson, coatdress, jumper (one-piece dress without
sleeves and with lower neckline), wrap, cardigan dress, shirtdress, step-in dress and the
princess (classic-styled dress with vertical panels that fit the body and flare in the skirt).
• Skirts, current skirt styles include among others: A-line (with flare, wider at hem than at
hip), straight line (fitting the waist and hip), culotte (a skirt-pant variation), wrap and
circle.
• Shirts. Traditionally the shirt market covers two main categories: conventional or dress
shirts and casual or leisure shirts, the latter also being referred to as sports shirts.
Generally spoken, dress shirts are worn with a tie under a suit or indoor (tailored) jacket or
blazer in office locations and on more formal social occasions. This type of shirts is mostly
long-sleeved of woven cotton or cotton/polyester, having a collar for a tie and buttons
down the front. Leisure shirts, as their name implies, are likely to be worn in less formal
situations in the home, and for leisure activities. This type of shirt can be long- or short-
sleeved.
• Babies’ garments include outerwear for babies (0-2 years and a body height not
exceeding 86 cm) such as jackets, coats, one and two piece suits, trousers, dresses,
blouses, caps, sets, gloves and socks. Products like blankets, sheets, tights etc. are not
covered in this survey.
• Active sportswear includes items such as track suits and jogging suits, of which the
variety in materials and styling of track suits is wide. Other items are sports dresses, sports
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CBI MARKET SURVEY:
skirts and sports trousers, for instance footless maillots/leggings, cyclist pants and special
sports suits, for instance surf suits, sail suits, ski overalls, gymnastics and fitness/aerobics
suits. Skiwear consists of padded, waterproof jackets and stretchable pants or salopettes.
Active sportswear does not include swimwear in this survey.
• Clothing accessories include the following main products: gloves, mittens and mitts, woven
from wool, cotton or synthetic fibres (mainly acryl). It also includes scarves, mufflers, man-
tillas, veils and the like, woven from silk, wool, synthetic fibres, artificial fibres or blends. In
the higher-price segments, silk and wool are often used; acryl is mainly used in the low-priced
segments. Woven ties, bow ties and cravats are mainly made of silk, man-made fibres
(polyester) or blends.
Classification on clothing behaviour

Besides by gender, the demand side of the outerwear market can also be divided into
consumer clothing behaviour, mainly based on activities. Herewith the following product
categories are considered:
• Formal clothing, besides formal gowns (like evening dress, dinner dress, wedding gowns,
communion dresses, cocktail dresses etc.), this category includes coats and raincoats, suits
and ensembles, indoor jackets, (other than cotton) trousers, dresses, skirts and blouses;
• Casual wear, like outdoor jackets, shirts and cotton trousers other than denim;
• Basic leisurewear, like tops and bodies, shorts/bermudas, jeans and jackets;
• Active sportswear, like tracksuits, ski-suits, shorts etc.
A-2 Statistical product classification of woven outerwear
Combined nomenclature and Prodcom

Two different sets of statistical data are used in this survey. Both sets have been provided by
Eurostat, the statistical body of the EU.
The first 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.
The second 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
some 4,800 products which are assigned to some 250 industries (subclasses) as defined by the
Standard Industrial Classification (SIC). Prodcom data contain production, imports and exports.
Based on these data, apparent consumption can be calculated as follows: apparent
consumption=production+imports-/-exports.
Statistical data: limitations

Trade figures quoted in CBI market surveys must be interpreted and used with extreme caution.
The Prodcom data, used in Chapter 2, are less reliable than the import and export statistics
used in Chapter 4, as Prodcom figures are not part of official data collection for Customs.
Companies only have to send in their data on an annual or quarterly basis. The figures
sometimes show a discrepancy between years, e.g. a substantial fall or extraordinary growth.
These problems are caused by inaccurate, inconsistent and untimely reporting by companies.
However, Prodcom data are the only official source for production in the different EU markets.
When it comes to decision making, however, these figures are not accurate enough and should
be used in conjunction with, and supported by, further market research.
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
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CBI MARKET SURVEY:
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, because it puts limitations on in-depth interpretation of relations between consumption,
production and trade figures within one country and between different countries.
Detailed classification of outerwear by CN codes

Notes:
Chapter 62 applies only to made-up articles of any textile fabric other than wadding, excluding
knitted or crocheted articles.
HS Code Description
62.01. Men's or boys' overcoats, car-coats, capes, cloaks, anoraks (including ski-
jackets), windcheaters, wind-jackets and similar articles, other than those of
heading no. 62.03:
- Overcoats, raincoats, car coats, capes and cloaks and similar articles:
11.00 -- Of wool or fine animal hair
-- Of cotton:
12.10 --- Of a weight, per garment, not exceeding 1 kg
12.90 --- Of a weight, per garment, exceeding 1 kg
-- Of man-made fibres:
19.00 -- Of other textile materials
- Anoraks (including ski-jackets, windcheaters, wind-jackets and similar articles):
92.00 -- Of cotton
93.00 -- Of man-made fibres
62.02. Women's or girls' overcoats, car-coats, capes, cloaks, anoraks (including ski-jackets),
windcheaters, wind-jackets and similar articles, other than those of heading no.
62.04:
- Overcoats, raincoats and similar articles:
11 .00 -- Of wool or fine animal hair
-- Of cotton:
-- Of man-made fibres:
- Anoraks (including ski-jackets, wind-cheaters, wind-jackets and similar articles):
92.00 -- Of cotton
93.00 -- Of man-made fibres
62.03. Men's or boys' suits, ensembles, jackets, blazers, trousers, bib and brace overalls,
breeches and shorts (other than swimwear)
- Suits:
12.00 -- Of synthetic fibres
19.10 -- Of cotton
19.30 -- Of artificial fibres
- Ensembles:
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22.80 -- Of cotton
29.18 -- Of artificial fibres:
- Jackets and blazers:
32.90 -- Of cotton
- Trousers, bib and brace overalls, breeches and shorts:
-- Of wool or fine animal hair
41.10 --- Trousers and breeches
41.30 --- Bib and brace overalls
41.90 --- Shorts
-- Of cotton
42.31 --- Of denim
42.33 --- Of cut corduroy
42.35 --- Other cotton
42.90 --- Shorts
-- Of synthetic fibres
43.90 --- Shorts
-- Of artificial fibres
49.50 --- Shorts
49.90 -- Trousers, bib and brace overalls, breeches and shorts of other textile materials
62.04. Women's or girls' suits, ensembles, jackets, dresses, skirts, divided skirts, trousers,
bib and brace overalls, breeches and shorts (other than swimwear):
- Suits:
12.00 -- Of cotton
- Ensembles:
22.80 -- Of cotton
29.18 -- Of artificial fibres:
- Jackets and blazers:
32.90 -- Of cotton
- Dresses:
42.00 -- Of cotton
49.10 -- Of silk or silk waste
- Skirts and divided skirts:
52.00 -- Of cotton
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- Trousers, bib and brace overalls, breeches and shorts:

-- Of wool or fine animal hair
61.10 --- Trousers
61.90 --- Shorts
-- Of cotton:
--- Trousers and breeches:
62.31 ---- Of denim
62.33 ---- Of cut corduroy
62.39 ---- Other cotton
62.90 --- Shorts
-- Of synthetic fibres
63.39 --- Bib and brace overalls:
63.90 --- Shorts
--- Of artificial fibres:
69.18 ---- Trousers and breeches
69.39 ---- Bib and brace overalls:
69.50 ---- Shorts
69.90 -- Trousers, bib and brace overalls, breeches and shorts of other textile materials
62.05. Men's or boys' shirts:

10.00 - Of wool or fine animal hair
20.00 - Of cotton
30.00 - Of man-made fibres
90.10 - Of flax or ramie
90.90 - Of other textile materials
62.06. Women's or girls' blouses, shirts and shirt-blouses:

10.00 - Of silk or silk waste
30.00 - Of cotton
90.10 - Of flax or ramie
62.09. Babies' garments and clothing accessories:

20.00 - Of cotton
30.00 - Of synthetic fibres
62.10. Garments made up of felt or non-wovens, whether or not impregnated, coated,

covered or laminated:
10.10 - Of felt:
10.99 - Of nonwovens
20.00 - Overcoats for men or boys rubberised or impregnated etc.
30.00 - Overcoats for women or girls rubberised or impregnated etc.
40.00 - Other garments for men or boys
50.00 - Other garments for women or girls
62.11. Track suits and ski suits:

20.00 - Ski suits
- Men's or boys track suits:
31.00 - Track suits of wool
32.31 -- Lined track suits of cotton with an outer shell of a single identical fabric
32.41 -- Lined track suit tops of cotton
32.42 -- Lined track suit bottoms of cotton
32.90 -- Other cotton garments
33.31 -- Lined track suits of man-made fibres with an outer shell of a single identical fabric
33.41 -- Lined track suit tops of man-made fibres
33.42 -- Lined track suit bottoms of man-made fibres
33.90 -- Other garments of man-made fibres
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39.00 -- Track suits of other textile materials

- Women's or girls track suits:
41.00 -- Track suits of wool
42.31 -- Lined track suits of cotton with an outer shell of a single identical fabric
42.41 -- Lined track suit tops of cotton
42.42 -- Lined track suit bottoms of cotton
42.90 -- Other cotton garments
43.31 -- Lined track suits of man-made fibres with an outer shell of a single identical fabric
43.41 -- Lined track suit tops of man-made fibres
43.42 -- Lined track suit bottoms of man-made fibres
43.90 -- Other garments of man-made fibres
49.00 -- Track suits of other textile materials
62.14. Shawls, scarves, mufflers, mantillas, veils and the like:

30.00 - Of synthetic fibres
40.00 - Of artificial fibres
90.10 - Of cotton
62.15. Ties, bow ties and cravats

62.16.00.00 Gloves, mittens and mitts
62.17. Other made-up clothing accessories and parts of garments

10.00 Other made-up clothing accessories
90.00 Parts of garments
Detailed classification of woven outerwear by Prodcom codes
1822.2111 Men’s or boys’ raincoats of cotton.

1822.2114 Men’s or boys’ overcoats, car-coats, capes and similar articles of cotton.
1822.2115 Men’s or boys’ raincoats of man-made fibres.
1822.2119 Men’s or boys’ overcoats, car-coats, capes, cloaks and similar articles of man-made fibres.
1822.2125 Men’s or boys’ anoraks, wind-jackets and similar articles of man-made fibres.
1822.2129 Men’s or boys’ anoraks, wind-jackets and similar articles of other materials.
1822.2211 Men’s or boys’ suits of cotton.

1822.2214 Men’s or boys’ suits of wool.
1822.2219 Men’s or boys’ suits of other textiles.
1822.2221 Men’s or boys’ ensembles of cotton.
1822.2224 Men’s or boys’ ensembles of wool.
1822.2229 Men’s or boys’ ensembles of other textiles.
1822.2331 Men’s or boys’ jackets and blazers of cotton.

1822.2334 Men’s or boys’ jackets and blazers of wool.
1822.2339 Men’s or boys’ jackets and blazers of other textiles.
1822.2441 Men’s or boys’ trousers and breeches of cut corduroy.

1822.2442 Men’s or boys’ trousers and breeches of denim.
1822.2443 Other cotton trousers and breeches for men or boys.
1822.2444 Men’s or boys’ trousers, breeches and shorts, of wool or fine animal hair.
1822.2445 Men’s or boys’ trousers and breeches of man-made fibres.
1822.2446 Men’s or boys’ trousers and breeches of synthetic fibres.
1822.2447 Men’s or boys’ trousers and breeches of artificial fibres.
1822.2449 Men’s or boys’ trousers, breeches, shorts, bib and brace overalls of other textiles.
1822.2451 Men’s or boys’ bib and brace overalls of cotton.
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1822.2459 Men’s or boys’ bib and brace overalls of other textiles.

1822.2461 Men’s or boys’ shorts of cotton.
1822.2463 Men’s or boys’ shorts of man-made fibres.
1822.2466 Men’s or boys’ shorts of synthetic fibres.
1822.2467 Men’s or boys’ shorts of artificial fibres.
1822.3111 Women’s or girls’ raincoats of cotton.

1822.3114 Women’s or girls’ overcoats and similar articles of wool.
1822.3115 Women’s or girls’ raincoats of man-made fibres.
1822.3119 Women’s or girls’ overcoats and similar articles of other textiles.
1822.3121 Women’s or girls’ anoraks, wind-jackets and similar articles of cotton.
1822.3125 Women’s or girls’ anoraks, wind-jackets and similar articles of man-made fibres.
1822.3129 Women’s or girls’ anoraks, wind-jackets and similar articles of other materials.
1822.3211 Women’s or girls’ suits of cotton.

1822.3214 Women’s or girls’ suits of wool.
1822.3219 Women’s or girls’ suits of other textiles.
1822.3221 Women’s or girls’ ensembles of cotton.
1822.3224 Women’s or girls’ ensembles of wool.
1822.3229 Women’s or girls’ ensembles of other textiles.
1822.3331 Women’s or girls’ jackets and blazers of cotton.

1822.3334 Women’s or girls’ jackets and blazers of wool.
1822.3339 Women’s or girls’ jackets and blazers of other textiles.
1822.3371 Women’s or girls’ dresses of cotton.

1822.3374 Women’s or girls’ dresses of wool.
1822.3375 Women’s or girls’ dresses of man-made fibres.
1822.3376 Women’s or girls’ dresses of synthetic fibres.
1822.3377 Women’s or girls’ dresses of artificial fibres.
1822.3378 Women’s or girls’ dresses of silk fibres.
1822.3379 Women’s or girls’ dresses of other textiles.
1822.3481 Women’s or girls’ skirts and divided skirts of cotton.

1822.3384 Women’s or girls’ skirts and divided skirts of wool.
1822.3385 Women’s or girls’ skirts and divided skirts of man-made fibres.
1822.3386 Women’s or girls’ skirts and divided skirts of synthetic fibres.
1822.3387 Women’s or girls’ skirts and divided skirts of artificial fibres.
1822.3388 Women’s or girls’ skirts and divided skirts of silk fibres.
1822.3389 Women’s or girls’ skirts and divided skirts of other textiles.
1822.3541 Women’s or girls’ trousers and breeches of cut corduroy.

1822.3542 Women’s or girls’ trousers and breeches of denim.
1822.3543 Other cotton trousers and breeches for women or girls.
1822.3544 Women’s or girls’ trousers, breeches and shorts, of wool or fine animal hair.
1822.3546 Women’s or girls’ trousers and breeches of synthetic fibres.
1822.3547 Women’s or girls’ trousers and breeches of artificial fibres.
1822.3549 Women’s or girls’ trousers, breeches, shorts, bib and brace overalls of other textiles.
1822.3551 Women’s or girls’ bib and brace overalls of cotton.
1822.3559 Women’s or girls’ bib and brace overalls of other textiles.
1822.3561 Women’s or girls’ shorts of cotton.
1822.3564 Women’s or girls’ shorts of wool or fine animal hair.
1822.3565 Women’s or girls’ shorts of man-made fibres.
1822.3566 Women’s or girls’ shorts of synthetic fibres.
1822.3567 Women’s or girls’ shorts of artificial fibres.
1822.3569 Women’s or girls’ trousers, breeches, bib and brace overalls of other textiles.
1824.2230 Ski-suits.
1824.2311 Handkerchiefs of cotton

1824.2319 Handkerchiefs of other textiles
1824.2334 Shawls, scarves, mufflers, mantillas, veils etc. of wool or fine animal hair
1824.2338 Shawls, scarves, mufflers, mantillas, veils etc. of silk or silk waste
1824.2339 Shawls, scarves, mufflers, mantillas, veils etc. of other textiles
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1824.2355 Ties, bow ties and cravats of man-made fibres.

1824.2358 Ties, bow ties and cravats of silk or silk waste.
1824.2359 Ties, bow ties and cravats of other textiles.
1824.2370 Gloves, mittens and mitts
1824.2395 Other clothing accessories and parts thereof.
1824.3233 Garments made up of felt.
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Appendix B Introduction to the EU market

The European Union (EU) is the current name for the former European Community. As from
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, but also significantly increased its complexity. Because
there are 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 dealing 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’.
General information on the EU can also be found on the official EU website

http://europa.eu/abc/governments/index_en.htm or the free encyclopaedia Wikipedia
http://en.wikipedia.org/wiki/Portal:Europe.
Monetary unit: Euro

On 1 January 1999, the Euro became the legal currency within eleven EU member states:
Austria, Belgium, Finland, France, Germany, Italy, Ireland, Luxembourg, The Netherlands, Spain,
and Portugal. Greece became the 12th member state to adopt the Euro on January 1, 2001.
Slovenia adopted the Euro in 2007, while Cyprus and Malta adopted the Euro in 2008. Slovakia
adopted the euro currency on 1 January 2009 as the 16th member of the Euro zone.
Denmark, United Kingdom and Sweden have decided not to participate in the Euro.
In CBI market surveys, the Euro (€) is the basic currency unit used to indicate value.
Table B-1 Exchange rates of EU currencies in €, average interbank rate

Country Name Code Year July 2009 July 2009
2008 1 euro =
Bulgaria Lev BGN 0.51203 0.51150 1.95504 LEV
Czech Republic Crown CZK 0.04015 0.03915 25.54250 CZK
Denmark Crown DKK 0.13413 0.13430 7.44582 DKK
Estonia Crown EEK 0.06404 0.06391 15.64660 EEK
Hungary Forint HUF 0.00400 0.00373 267.855 HUF
Latvia Lats LVL 1.43825 1.42059 0.70393 LVL
Lithuania Litas LTL 0.29176 0.28969 3.45191 LTL
Poland Zloty PLN 0.28641 0.23945 4.17627 PLN
Romania Lei ROL 0.0300* 0.0237* 42,214.7 ROL
Sweden Crown SEK 0.10418 0.09451 10.58125 SEK
United Kingdom Pound GBP 1.25968 1.15666 0.86456 GBP
*) in ‘000 lei
Source: Oanda - http://www.oanda.com (July 2009)
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Appendix C List of developing countries

OECD DAC list - January 2006
When referring to developing countries in the CBI market surveys, reference is made to the
group of countries on this OECD DAC list of January 2006.
Afghanistan Gabon Nepal Uruguay

Albania Gambia Nicaragua Uzbekistan
Algeria Georgia Niger Vanuatu
Angola Ghana Nigeria Venezuela
Anguilla Grenada Niue Vietnam
Antigua and Barbuda Guatemala Oman Wallis & Futuna
Argentina Guinea Pakistan Yemen
Armenia Guinea-Bissau Palau Zambia
Azerbaijan Guyana Palestinian Admin. Areas Zimbabwe
Bangladesh Haiti Panama
Barbados Honduras Papua New Guinea
Belarus India Paraguay
Belize Indonesia Peru
Benin Iran Philippines
Bhutan Iraq Rwanda
Bolivia Jamaica Samoa
Bosnia & Herzegovina Jordan Sao Tome & Principe
Botswana Kazakhstan Saudi Arabia
Brazil Kenya Senegal
Burkina Faso Kiribati Serbia
Burundi Korea Rep. of Seychelles
Cambodia Kyrgyz Rep. Sierra Leone
Cameroon Laos Solomon Islands
Cape Verde Lebanon Somalia
Central African Rep. Liberia South Africa
Chad Libya Sri Lanka
Chile Macedonia St. Helena
China Madagascar St. Kitts Nevis
Colombia Malawi St. Lucia
Comoros Malaysia St. Vincent & Grenadines
Congo Democratic Rep. Maldives Sudan
Congo Rep. Mali Suriname
Cook Islands Marshall Islands Swaziland
Costa Rica Mauritania Syria
Cote d’Ivoire Mauritius Tajikistan
Croatia Mayetta Tanzania
Cuba Mexico Thailand
Djibouti Micronesia, Fed. States Timor-Leste
Dominica Moldova Togo
Dominican Republic Mongolia Trinidad & Tobago
Ecuador Montenegro Tunisia
Egypt Montserrat Turkey
El Salvador Morocco Turkmenistan
Equatorial Guinea Mozambique Turks & Caicos Islands
Eritrea Myanmar Tuvalu
Ethiopia Namibia Uganda
Fiji Nauru Ukraine
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CBI countries – January 2007:
CBI supports exporters in the following Asian, African, Latin American and European (Balkan)
countries:
* Albania
* Armenia
Bangladesh
Benin
Bolivia
* Bosnia-Herzegovina
Burkina Faso
Colombia
* Ecuador
Egypt
* El Salvador
Ethiopia
Georgia
Ghana
Guatemala
* Honduras
* India
Indonesia
* Jordan
Kenya
* 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
* Assistance to these countries will be phased out in the coming four years, but Dem. Rep. of
Congo, Jemen, Mongolia, Sudan and Palestinian Territories will be added.
Page 50 of 50

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CBI MARKET SURVEY:

THE WOVEN OUTERWEAR MARKET IN THE EUROPEAN UNION

THE WOVEN OUTERWEAR

REPORT SUMMARY ..................................................................................................... 2

APPENDIX A PRODUCT CHARACTERISTICS............................................................ 39

Disclaimer CBI market information tools: http://www.cbi.eu/disclaimer

Opportunities for developing country exporters

In this survey, EU means the EU-27 unless otherwise indicated.

Table 1.1 Woven outerwear consumption in the EU countries, 2004-2009, in € million

1.2 Market segmentation

Criteria for market segmentation of woven outerwear are:

Most of these criteria will be applied by trading partners in the EU.

Segmentation by demographic factors

Table 1.2 Population in the EU by age classes, 2004-2008 (in %)

Clothing buying process by age groups

Segmentation by type of activity

Segmentation by attitude of consumers towards fashion

PRODUCT CRITERIA Examples of FASHION CRITERIA

PRODUCT CRITERIA Examples of FASHION CRITERIA

1.4 Opportunities and threats

1.5 Useful sources:

• Euratex (http://www.euratex.org) including links to national trade associations

Table 2.1 Woven outerwear production in the EU countries, 2004-2008 in € million

Clothing manufacturers in the EU can be divided into:

Most EU manufacturers have developed an outsourcing policy which may include:

2.2 Trends in production

The foreign policy of clothing manufacturing companies takes many forms:

Other trends are:

2.3 Opportunities and threats

2.4 Useful sources:

• Euratex (http://www.euratex.org) including links to national trade associations.

3 Trade channels for market entry

Theoretically, importing is a function which can be done by manufacturers, wholesalers or

Figure 3.1 Trade and distribution channels for outerwear in the EU

Importing wholesalers Importing manufacturers Agents

Department Clothing Home Selling and/or Other

Importing manufacturers: the many forms of production strategies of EU manufacturers are

Trends in retail trade

3.2 Price structure

Table 3.1 Calculation schedule: margins

RATIO CIF/CONSUMER PRICE: 2.2 2.6 3.0

3.3 Opportunities and threats

3.4 Useful sources:

• European Association of National Organisations of textile retailers (AEDT):

4 Trade: imports and exports

4.1 Total EU imports

Table 4.1 EU imports of woven outerwear 2004-2008, in € million/1,000 tonnes

4.2 EU imports per product group

2004 2006 2008 Leading suppliers in 2008 Share

Table 4.3 EU imports of woven trousers etc. by materials used, 2006-2008,

4.3 The role of DCs

Table 4.5 Imports of outerwear from developing countries, 2004-2008

2004 2006 2008 Av.

Table 4.6 EU imports of woven outerwear and DC share by products,

Table 4.7 EU exports of woven outerwear, 2004-2008, in volume and in value

4.5 Opportunities and threats

4.6 Useful sources

• EU Expanding Exports Helpdesk - http://exporthelp.europa.eu Î go to: trade statistics

Table 5.1 Changes in clothing consumer prices in the EU, 2006-2008

Table 5.2 Examples of structure in costing price of jeans in euro (€)

Materials 4.50 5.50 7.50 10.00

5.2 Useful sources