EU MARKET SURVEY 2003

EU MARKET SURVEY 2003

BODYWEAR

BODYWEAR

Mailing address: P.O. Box 30009, 3001 DA Rotterdam, The Netherlands

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CENTRE FOR THE PROMOTION OF IMPORTS FROM DEVELOPING COUNTRIES
Office: WTC-Beursbuilding, 5th floor
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EU MARKET SURVEY 2003

BODYWEAR

Compiled for CBI by:

Drs. Jan P. Servaas

May 2003
DISCLAIMER
The information provided in this market survey is believed to be accurate at the time of writing. It is, however, passed
on to the reader without any responsibility on the part of CBI or the authors and it does not release the reader from the
obligation to comply with all applicable legislation.

Neither CBI nor the authors of this publication make any warranty, expressed or implied, concerning the accuracy of
the information presented, and will not be liable for injury or claims pertaining to the use of this publication or the
information contained therein.

No obligation is assumed for updating or amending this publication for any reason, be it new or contrary information
or changes in legislation, regulations or jurisdiction.
New CBI publication with updated contents replacing CBI’s EU Market Survey 2002 ‘Bodywear’ and CBI’s EU
Strategic Marketing Guide 2002 ‘Bodywear’ (published in January 2002).
Photo courtesy:

Hunnink & van den Broek

CONTENTS

REPORT SUMMARY 7

INTRODUCTION 10

PART A: EU MARKET INFORMATION

1 PRODUCT CHARACTERISTICS 15
1.1 Product groups 15
1.2 Customs/statistical product classification 16

2 INTRODUCTION TO THE EU MARKET 18

3 CONSUMPTION OF BODYWEAR 20
3.1 Market size 20
3.2 Market segmentation 27
3.3 Consumption patterns and trends 30

4 PRODUCTION 32
4.1 Production of bodywear in the EU 32
4.2 Delocalisation of clothing production 33

5 IMPORTS OF BODYWEAR 35
5.1 Total EU imports 35
5.2 Imports by product group 45
5.3 The role of developing countries 49

6 EXPORTS OF BODYWEAR 51

7 TRADE STRUCTURE 54
7.1 EU trade channels 54
7.1.1 Sales intermediaries 54
7.1.2 Retailers of bodywear 55
7.1.3 Buying policy of intermediaries 63
7.2 Distribution channels for developing country exporters 63

8 OPPORTUNITIES AND THREATS FOR DEVELOPING COUNTRY EXPORTERS 65

PART B: MARKET ACCESS REQUIREMENTS

9 DOING BUSINESS WITH THE EU: REQUIREMENTS FOR ACCESS 69

9.1 Non-tariff trade barriers 69
9.1.1 Quality and standards for bodywear 69
9.1.2 Trade-related environmental, social and health & safety issues 69
9.1.3 Packaging, size marking and labelling 70
9.2 Tariffs and quota 73

PART C: EXPORT MARKETING GUIDELINES: ANALYSIS AND STRATEGY

10 EXTERNAL ANALYSIS 81
10.1 Market developments and opportunities for bodywear 81
10.2 Competitive analysis 82
10.3 Sales channel assessment 82
10.4 Prices and margins 83
10.4.1 Trade margins and prices 83
10.4.2 Payment and delivery terms 85
10.5 Product profiles 85

5
11 INTERNAL ANALYSIS 93
11.1 Manufacturing 93
11.2 Logistics 94
11.3 Design 95
11.4 Marketing and sales 95
11.5 Financing 96
11.6 Capabilities 96
11.7 Recapitulation of the internal analysis 96

12 DECISION MAKING 98

13 MARKETING TOOLS 99
13.1 Matching products and the product range 99
13.2 Building up a relationship with a suitable trading partner 99
13.3 Drawing up an offer 100
13.4 Handling the contract 100
13.5 Sales organisation and promotion 101

APPENDICES 103

6
REPORT SUMMARY

This EU Market Survey ‘Bodywear’ is intended to percent in 2002. Per capita spending on bodywear in the
serve as a basis for further market research: after you EU amounted to € 80 in 2001.
have read this survey it is important to further research Germany is the most important EU market (in absolute
your target markets, sales channels and potential figures) for bodywear as well as in total clothing
customers. consumption in the EU, however, the difference
Market research depends on secondary data (data that compared to other major countries, like UK and Italy,
have been compiled and published earlier) and primary has become much smaller. Four countries (Germany,
data (information that you collect yourself). This EU UK, France and Italy) account for two thirds of EU
Market Survey is an example of secondary data. bodywear consumption.
Primary data are needed when secondary data fall short Belgian and Austrian consumers are the biggest
of your needs, for example when researching your spenders per capita on bodywear in the EU. Looking at
specific type of consumer about the acceptance of your the major EU countries, Italian and UK consumption
specific product. Sources of information are among was the highest followed by France and Spain. German
others (statistical) databanks, newspapers and and Netherlands consumption was less than the EU
magazines, market reports, (annual) reports from average consumption of bodywear.
branch associations, but also shops in target countries, Underwear is the leading sector of the bodywear market
products or catalogues from your competitors, and in all markets surveyed. In the period under review,
conversations with suppliers, specialists, colleagues and foundation wear and especially bras showed the biggest
even competitors. After you have received/collected increase caused by popular types of underwired bras
your information you should analyse it. In order to (push-up), while expenditure on briefs grew slightly,
judge the attractiveness of the market, sales channel or despite the popularity among younger age groups of the
customer you should use/develop a classification or string. After many years of decline, the hosiery market
score system. levelled off encouraged among other factors by fashion
For more detailed information on market research, developments on the outerwear market. Nightwear and
reference is made to CBI’s Export Planner (2000) and homewear expenditure remained weak, while the
CBI’s new manual on market research (2003). A fairly market for swimwear fluctuated, mainly caused by
complete overview on packaging, environmental climatological influences. Share of bodywear in the
aspects etc. is published in CBI’s AccessGuide. total value of clothing sales ranged from 11.9 percent in
Seasonal fashion information can be obtained from Germany to 17.0 percent in Spain.
CBI’s Fashion Forecasts. These sources of information
are also available on the CBI web site. Production
Production volume of bodywear in the EU decreased in
Product groups the period 2000-2001 by 2 percent, while for 2002-
The survey ‘Bodywear’ includes the following 2004, a further decrease is expected. Detailed figures
segments: concerning production were not available at the time of
Underwear: briefs or knickers, slips, bodies, teddies writing.
and french knickers for women and girls; pants or Italy is the largest producer of knitted items accounting
briefs, boxer shorts for men and, (under-) vests and T- for around 30 percent of EU production, followed by
shirts for men and women; Germany, France, UK, Spain and Portugal.
Foundation wear: bras, corselettes, corsets, girdles World wide, the bodywear industry is dominated by
etc.; some big concerns, like the multinationals Sara Lee
Nightwear: nightdresses, pyjamas and negligées for (with many daughter companies in the EU) and the
women; nightshirts and pyjamas for men; Warnaco Group, both from the USA, and Triumph from
Home wear or loungewear: dressing gowns, Switzerland.
housecoats and bathrobes; Manufacturers of brand names met strong competition
Swim- and beachwear: one and two-piece (bikinis) from retail chains with own private labels (like Marks
bathing suits for women, and swimming trunks and & Spencer, Zara, Hennes & Mauritz, Etam, C&A etc.)
bermudas for men; but also from (general) clothing brands (like Esprit,
Hosiery: pantyhose, tights, stockings and, ankle- and Mexx, Ralph Lauren, Diesel etc.), fashion designer
knee-length socks. brands (like Chanel, Gucci etc.) and from sport brands
(Nike, Adidas, Fila etc.). Sara Lee has dominated the
Consumption hosiery sector for many years. Most of the EU hosiery
Consumption of bodywear in the EU showed a manufacturers operate on the underwear market and
moderate growth of 1.5 percent on 2001 when it some of them on the swimwear market too.
reached € 30.4 billion, followed by an estimated 1.0 There is a tendency in the whole bodywear sector

7
towards further concentration through many take-overs The growth in imports from developing countries in the
and mergers. period 2000-2001 was limited to 5 percent, however
The restructuring policy of many manufacturing this was much more favourable than developments in
companies in the EU during the last two decades led to imports from other countries outside the EU (- 2.7%)
relocation of the clothing production, mainly based on and intra-EU trade (-3.6%). Reasons for developments
labour cost comparisons. The foreign policy of clothing mentioned were the weak consumer market for
companies takes many forms; most of the largest bodywear, increasing competition on retail level and the
companies entered into joint ventures in low-cost deflationary spiral of prices.
countries or have built up their own factories abroad. Imports from Mediterranean countries (Morocco,
Besides these forms of ownership structure, Turkey, Tunisia) grew more than the leading Asian
subcontracting forms an important part of activities of suppliers (China, Bangladesh).
the EU clothing industry. It is possible to identify three With regard to factors like cost levels and distances, the
basic concepts of subcontracting: Outward Processing following competitive categories in bodywear can be
Trade (OPT), Cut, Make and Trim (CMT) and Free on distinguished:
Board (FOB). Another possibility for manufacturing Low-cost, long-distance countries: countries in the Far
companies is sourcing abroad, mainly for additional East (China, Hong Kong and Macao) and South East
products to their own product range. Asia (Bangladesh, India, Indonesia, Sri Lanka, Thailand
Strategies of clothing manufacturers in the EU reveal and Pakistan).
the following developments: a decrease in domestic Low-cost, short-distance countries: the main sources
production, a stabilisation in subcontracting in the EU are Mediterranean countries like Morocco, Tunisia,
(mainly Portugal) and an increase in subcontracting to Egypt, Croatia and Albania and CEECs like Romania,
countries outside the EU (Central and East European Hungary, Bulgaria, Poland and Slovakia
countries and Mediterranean countries) and in direct Medium-cost, short-distance countries: like Turkey and
sourcing (mainly Asian countries). EU countries Portugal and Greece.
High-cost countries: Western Europe (Italy, Germany,
Imports Belgium, Austria and UK), Israel and USA belong to
Total EU imports of bodywear amounted to almost this category.
€ 17.0 billion in 2001. Germany remained the leading A strong position in EU imports is taken in by
importer, with an import share of 25 percent in terms of Mediterranean countries like Turkey, Morocco and
value, followed by the UK, France, Italy and The Tunisia and CEECs (Romania, Poland, Hungary etc.),
Netherlands. Belgium ranked sixth, followed by Spain because the importers’ desired time between buying and
and Austria. Bodywear imports into Germany and The selling has to be as short as possible. This shorter lead-
Netherlands grew less than the EU average during the time is the result of making design and purchase
period under review, while imports into UK, Italy and decisions as late as possible, to avoid mark-down
Spain boomed. prices.
EU imports of bodywear increased 18 percent in the
period 1999-2001, but only 0.6 percent in the period Exports
2000-2001. The EU’s leading suppliers of bodywear in EU exports of bodywear amounted to € 9.9 billion in
terms of value were: Turkey, China, and Italy. 2001, of which 72 percent was intra-EU trade. The most
The growth in imports from developing countries in the important destination outside the EU remained
period 1999-2001 can be ascribed to the following Switzerland, followed by Russia and USA. Exports to
categories: Russia more than doubled in the period 1999-2001,
• Asian low price suppliers (+36%), like China, while exports to USA increased almost 35 percent in
Bangladesh, India, Indonesia, Sri Lanka, Thailand, 2000 but fell 3.5 percent in 2001. Other destinations
Vietnam, Cambodia and Myanmar increased their were Tunisia, Romania, Hungary, Norway, Poland,
exports to the EU. These countries operate mainly in Japan and Bulgaria. Exports to all destinations
price sensitive segments. China continued its leading mentioned increased in 2000, with the exception of
position in shipments to the EU, in all categories of Poland. Exports to all destinations mentioned increased
bodywear except T-shirts and hosiery, but imports again in 2001 with the exception of Switzerland and
from the other countries mentioned increased to a Norway.
much higher degree. 23 percent of total EU exports was accounted for by
• Mediterranean countries (+32%), mainly Turkey, Italy, 13 percent each by Germany and France and 9
Morocco, Albania, Bosnia-Herzegovina and to a percent each by Portugal and Belgium.
lesser degree Tunisia and Egypt. Imports under the
OPT regime was limited to the countries Morocco, Trade structure
Tunisia and Albania, these imports decreased in Manufacturers of bodywear brands sell directly (via
favour of direct imports. sales representatives, sales offices or showrooms) to the
• ACP countries (+ 15%), the leading country remained retail trade or indirectly via agents or wholesalers.
Mauritius, with a rising share in exports to the EU.

8
Looking for lower production costs led to the trend production is being moved from Asia to some CEECs
where suppliers have their bodywear made abroad. and countries in the Mediterranean, i.e. to locations
Parallel to this development, there is a trend for retailers where relatively faster reactions to new fashions and
or wholesalers to bypass the local industry totally by sudden changes in retailer demand can more easily be
means of direct imports. made. This trend is likely to accelerate, as and when
The role of wholesalers/importers will slightly decline, these countries join the EU. This move can also be seen
while the role of clothing and specialised bodywear against the background of the continuing shortening of
multiples and, to a lesser degree, buying groups or the ordering period and the reduction in size of the
franchise formula will increase in the coming years. average order.
In many European countries, the distribution of Parallel to the trend for suppliers to make their clothing
bodywear is dominated by a small number of retail abroad there is a trend for retailers or wholesalers to
organisations. On the one side, specialty multiple stores bypass the local industry totally, by means of direct
(like Hunkemöller) operate while, on the other side, imports. The role of importing wholesalers and
more generally oriented department and variety stores importers remained rather important but will slightly
(Hema, Marks & Spencer), clothing multiples (Hennes decline, while the role of clothing and specialised
& Mauritz, Zara, C&A) and hypermarkets bodywear multiples and, to a lesser degree, buying
(Hypermarchés) are active. This also means increasing groups or franchise formula will increase in the coming
competition between branded labels and private labels. years. The buying policies of super- and hypermarkets
Most of the major retail organisations have set up their vary from direct imports by the international operating
own buying organisations in low-labour-cost countries. chains to buying from wholesalers/importers.
This means that retailers are able to bypass domestic
wholesalers and/or manufacturers. Strategic choices for exporters
It is important for an exporter to analyse target markets,
Opportunities for exporters in developing countries sales channels and potential customers in order to
Germany is still the greatest market for bodywear in the formulate marketing and product strategies. This survey
EU, but consumer expenditure decreased just like in aims to assist (potential) exporters in developing
France. The highest growth rates are in Italy, Spain and countries in their export-decision-making process. In
The Netherlands, while the UK showed a moderate this survey, a distinction has been made between the
growth. following types of bodywear manufacturing exporters:
Demand for bodywear in the EU will continue to CMT or OPT producers; FOB producers; producers of
increase slightly in the coming years. The number of private labels and producers of own design, mainly
garments purchased per head of population will using brand trademarks.
continue to rise but prices will not follow this growth The exporter will have to assess the external and
rate. internal environment to determine whether there are
To satisfy the requirements of importing European interesting export markets for his company. In fact, by
companies, the exporters in developing countries will matching external opportunities and internal
be faced with increased demands for higher quality and capabilities, the exporter should be able to identify
environmentally friendly products. suitable target countries; market segments and target
In recent years, regarding women’s outerwear product(s) within these countries, and possible trade
consumption, there has been a shift from dresses to channels to export the selected products. Marketing
trousers/jeans, resulting in a renewed popularity for tools are also described and these can be used to build
hosiery. up successful business relationships.
Products with the strongest growing demand in the
period under review were push-up bras, strings and
corrective briefs/tights for women
Imports from developing countries are important and
still rising in almost all product groups. Imports from
developing countries of T-shirts, bras and to a lesser
degree knitted briefs/tights for women showed the
biggest growth.
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
times goes on, even the first-mentioned functions are
leaving these EU countries too.
Recent import developments give slight indications that

9
INTRODUCTION

This CBI survey consists of three parts: EU market

information (Part A), EU market access requirements
(Part B) and export marketing guidelines (Part C).

Market Survey

Part A Part B
EU Market Information EU Market Access Requirements
(Chapter 1-8) (Chapter 9)

Product characteristics Quality and grading standards

Introduction to the EU market Environmental, social and health & safety issues
Consumption and production Packaging, marking and labelling
Imports and exports Tariffs and quotas
Trade structure
Opportunities for exporters

Part C
Export Marketing Guidelines: Analysis and Strategy

External Analysis Internal Analysis

(Chapter10) (Chapter 11)

Decision Making
(Chapter 12)

Target markets and segments

Positioning and improving competitiveness
Suitable trade channels and business partners
Critical conditions and success factors

Marketing Tools
(Chapter 13)

Matching products and product range

Building up a trade relationship
Drawing up an offer
Handling the contract
Sales promotion

Chapters 1 to 8 (Part A) profile the EU market for Whereas Part A provides EU market information,
bodywear. The emphasis of the survey lies on those Chapter 9 (Part B) describes the requirements, which
products, which are of importance to developing have to be fulfilled in order to gain market access for
country suppliers. The major national markets within bodywear. It is of vital importance that exporters
the EU for those products are highlighted and are comply with the requirements of the EU market in
placed in ranking of consumption: Germany, UK, Italy, terms of product quality, sizing, packaging, labelling
France, Spain and The Netherlands. These countries are and social, health & safety and environmental
all major importers of bodywear in the EU. standards. These issues are therefore covered in Part B.
The survey includes contact details for trade
associations and other relevant organisations. After having read Parts A and B, it is important for an
Furthermore, statistical market information on exporter to analyse target markets, sales channels and
consumption, production and trade, and information on potential customers in order to formulate marketing and
trade structure and opportunities for exporters is product strategies. Part C subsequently aims to assist
provided.

10
(potential) exporters in developing countries in their
export-decision-making process.
After having assessed the external (Chapter 10) and
internal environment (Chapter 11), the (potential)
exporter should be able to determine whether there are
interesting export markets for his company.
In fact, by matching external opportunities and internal
capabilities, the exporter should be able to identify
suitable target countries, market segments and target
product(s) within these countries, and possible trade
channels to export the selected products (Chapter 12).
Chapter 13 subsequently describes which marketing
tools can be used to build up successful business
relationships.
The survey is interesting for starting exporters as well
as for exporters already engaged in exporting (to the
EU market). Part C is especially interesting for more
experienced exporters starting to export to the EU and
exporters looking for new EU markets, sales channels
or customers. Starting exporters are advised to read this
publication together with the CBI’s Export Planner, a
guide that shows systematically how to set up export
activities.

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12
Part A
EU market information

A
14
1 PRODUCT CHARACTERISTICS

1.1 Product groups teddy and made in panty style without garters for
hose. The body is made of lightweight stretch fabric.
This report includes the following segments: • camisoles and slips
• Underwear: (under-) pants, knickers or briefs, vests, Camisoles are tops, with straps over the shoulder,
petticoats, underskirts or slips (full and half), bodies, that either hang free or have an elastic waistline.
teddies (all-in-one camisoles and knickers) and Slips start above the bust and are usually held in
french knickers for women; pants or briefs, boxer place with shoulder strips. They can be long or short
shorts for men and, (under-) vests and T-shirts for according to the type of dress or skirt they are
men and women; intended to be worn under.
• Foundation wear: bras (short for brassieres), • T-shirts
corselettes, corsets, girdles and suspender-belts; T-shirts or vests for both sexes are mostly classified
• Nightwear: nightdresses, pyjamas and negligees for as underwear. It has been noted that these garments
women; nightshirts and pyjamas for men; can be used for many purposes. Functions vary from
• Home wear or loungewear: dressing gowns, use as outerwear, especially in summer months, to
housecoats and bathrobes; use as underwear especially in winter months, to use
• Swim- and beachwear: one and two-piece (bikinis) as sports- and nightwear. About 90 percent of T-shirts
swimsuits for women, and swimming trunks and is made of cotton. Most bodywear analyses do not
bermudas for men; include T-shirts or vests worn as underwear, because
• Hosiery: pantyhose, tights, stockings and, ankle- and these garments are purchased specifically to be worn
knee-length socks. as outerwear. In some EU countries, like The
Netherlands, distinctions are made in bodywear
Underwear statistics and a part of T-shirts consumption is
Underwear is indicated as daily underwear too, as considered to be underwear.
opposed to nightwear (including home wear) and
foundation wear. The term lingerie is used for women’s Foundation wear
underwear. Foundation wear includes bras, corsets and other under-
• briefs garments, which give the body shape.
The range of styles for briefs is wide and determined • bras
by the cut. The major styles for women are: mini, The three major criteria for bra styles are
midi, maxi, string, tanga, rio, bikini, culotte or underwiring, décolleté (normal, V-shape or balcony),
boxerstring, high-cut or French briefs and thongs. and support, which ranges from light control, to firm
The major styles for men are Y-fronts, tight fitting control, to sport bras and maternity bras.
briefs, and boxer shorts with a looser fit and longer Materials used for bras are polyamide, mostly
cut. Briefs for males are mostly cotton-made, while combined with elastan (in proportions of 90/10,
for females cotton is very popular too, but also other 85/15, 80/20) and cotton, also in combinations with
materials are used. Competition from man-made polyamide and/or elastan.
fibres, based on advanced techniques and marketed A majority of bras consumption concerned framed
by multinationals with brands like Lycra, Tactel, bras including push-ups, however, the market share
Dorlastan etc. have led to underwear with improved of framed bras decreased in favour of seamless bras.
aspects in wearing properties during sport activities Other types of bras are 2/3 cup, strapless bras (both
or give a more luxury look. However, cotton types either or not underwired) and, less popular, the
remained by far the most popular material. long bras, tops and bustiers. The convertible bra has
In continental countries like Germany, France and straps, which can be worn in six different
The Netherlands the term ‘slips’ is used for a type of configurations: convential, halter, one shoulder, off-
underpants, rather than in the (English) sense of an the-shoulder, criss-crossed, and strapless.
underskirt or petticoat. • other foundations
The control brief is designed to flatten the tummy Foundation garments, other than bras, include
and give support while providing a smooth corsetry, like:
silhouette. - Corsets, a support undergarment that is boned and
• bodies and teddies close fitting. It is almost always hooked and laced,
Women’s bodies and teddies, include all women’s begins either above or just below the bust and
undergarments that are neither supportive (such as extends down to the waist or below the hips.
foundations) nor just bottoms. The teddy is a Usually garters are attached at its base.
camisole and panty combined into one piece. It can - Corselet or corselette, a support undergarment that
be fitted to the body or loose, has a low-cut front and combines a girdle with a bra.
back, and high-cut legs. The body is based on the

15
 - Girdles. The name given to any undergarment that Hosiery and socks
is close fitting, often boned and usually The men’s hosiery and socks sector can be divided into
elasticised, that extends from the waist to below two categories, as follows:
the hips. Also indicated with the word shaper or • knee-high and ankle-length socks, both of which are
shapewear. made of wool, wool-acrylic blends and other man-
made fibre knits; and
Nightwear • tights, which have been developed recently for men,
Nightwear can be divided into pyjamas and nightshirts. and are made from an opaque cotton velvet.
Pyjamas are generally two-piece items. Among the most The women’s hosiery and socks sector can be divided as
popular versions are: follows:
• the tunic pyjama, which has a long overblouse top; • stockings, which are made of sheer nylon and
and elastane (also known as spandex);
• the T-shirt pyjama, which is made of knitted fabric. • tights, which are made of sheer nylon and are
Women’s nightshirts can be divided into four basic opaque;
categories, as follows: • knee-highs and ankle-lengths, which are both made
• the ‘baby doll’ or ‘shorty’styles, with short puffed from convential nylon; and
sleeves and matching bloomers; • knitted knee-high and ankle-length socks.
• the high-necked, long sleeved and full-length
‘granny’ nightdress with ruffle-trimmed yoke; 1.2 Customs/statistical product
• the above-the-knee ‘dorm shirt’, made of knitted classification
fabric and styled like a T-shirt; and
• the nightshift or nightshirt, made for both genders, Products are specified by the Harmonized Commodity
mainly in man’s shirt style or in a T-shirt style. Description and Coding System (HS). These numbers
are used for both Customs and statistical purposes in
Home wear or loungewear EU member countries. The number clearly identifies a
Robes or gowns are items of informal clothing, can be specific product; it is possible to see whether the
worn over nightwear, at the beach or during leisure time garments concerned are for men or women and how
at home. they are made. Referring to the code number can
Home wear versions for women are: therefore facilitate communication and eliminate
• the bathrobe dress, a wraparound dress without misunderstanding about the type of bodywear.
buttons, but with a shawl collar and with the front Knitted bodywear can be found in chapter 61 and
lapped over and held in place with a sash; woven bodywear in chapter 62 of the Harmonised
• the negligee, a flowing robe of delicate fabric with System. These chapters are given below, while appendix
lace trimmings, worn over a matching nightgown; 1 of this report gives the most detailed numbers.
• the kimono, made in a scenic or floral print fabric
reminiscent of Japan. The HS classification given in 1.2 sometimes differs
from the product groups and products mentioned in 1.1.
and for men: This limits in-depth interpretation of figures and of the
• the bathrobe, which is usually made of terry cloth; and possible relationships between import and export
• the dressing gown, which is styled like the bathrobe figures on the one hand, and production and
but may be made of cotton, silk, wool or man-made consumption figures on the other hand.
fibre.

Home suits and leisure suits are based on sports

clothing. The most common type is the sweat suit, a
two-piece cotton or cotton-mix knitted suit with a
cotton fleece lining. The pants have a drawstring or an
elasticised waist, and have legs gathered into ribbing or
elastic at the ankles. Other fabrics and styles in leisure
suits have recently been introduced.

Swimwear and beachwear

The swimwear and beachwear sector comprises the
following garment categories:
• women’s swimsuits and bathing suits (one-piece);
• women’s bikinis (two-piece);
• men’s swim trunks; and
• men’s swim/surf/beach shorts, which are swim trunks
with thigh-length legs and an elasticised waistband.

16
Table 1.1 HS code classification of bodywear

Knitted or crocheted

6107.10 Men’s or boys’ underwear

6107.20 Men’s or boys’ nightwear
6107.90 Men’s or boys’ home wear
6108.10 Women’s or girls’ slips and petticoats
6108.20 Women’s or girls’ briefs and panties
6108.30 Women’s or girls’ nightwear
6108.90 Women’s or girls’ home wear
6109.00 T-shirts, singlets and other vests
6112.30 Men’s or boys’ swimwear
6112.40 Women’s or girls’ swimwear
6115 Hosiery

Woven

6207.10 Men’s or boys’ underpants and briefs

6207.20 Men’s or boys’ nightwear
6207.90 Men’s or boys’ home wear
6208.11 Women’s or girls’ underwear
6208.21 Women’s or girls’ nightwear
6208.90 Women’s or girls’ home wear
6211.11 Men’s or boys’ swimwear
6211.12 Women’s or girls’ swimwear
6212 Foundation wear

17
2 INTRODUCTION TO THE EU MARKET

The European Union (EU) is the current name for the regulations visit AccessGuide, CBI’s database on non-
former European Community. Since 1 January 1995 the tariff trade barriers at www.cbi.nl/accessguide
EU has consisted of 15 member states. Ten new
countries will join the European Union in 2004. Monetary unit: Euro
Negotiations are in progress with a number of other On 1 January 1999, the euro became the legal currency
candidate member states. within twelve EU member states: Austria, Belgium,
Finland, France, Germany, Greece, Italy, Ireland,
In 2002, the size of the EU population totalled 379.4 Luxembourg, The Netherlands, Spain, and Portugal. In
million; the average GDP per capita amounted to 2002 circulation of euro coins and banknotes replaced
approximately € 21,023 in 2002. national currency in these countries. Denmark, United
Kingdom and Sweden have decided not yet to
Within Western Europe – covering 15 EU member participate in the euro.
countries, plus Iceland, Liechtenstein, Norway and
Switzerland – more than 20 million enterprises are The most recent Eurostat trade statistics quoted in this
active. Small and medium-sized enterprises (SMEs) survey are from the year 2001. The € is the basic
accounted for the lion’s share. In 2000, the average currency unit used to indicate value in this market
turnover per enterprise of SMEs and large enterprises survey.
amounted to € 600 thousand and € 255 million
respectively. Trade figures quoted in this survey must be interpreted
and used with extreme caution. The collection of data
EU Harmonisation regarding trade flows has become more difficult since
The most important aspect of the process of unification the establishment of the single market on 1 January
(of the former EC countries), which affects trade, is the 1993. Until that date, trade was registered by means of
harmonisation of rules in the EU countries. As the compulsory Customs procedures at border crossings,
unification allows free movement of capital, goods, but, since the removal of the intra-EU borders, this is no
services and people, the internal borders have been longer the case. Statistical bodies like Eurostat cannot
removed. Goods produced in or imported into one now depend on the automatic generation of trade
member state can be moved around between the other figures. In the case of intra-EU trade, statistical
member states without restrictions. A precondition for reporting is only compulsory for exporting and
this free movement is uniformity in the rules and importing firms whose trade exceeds a certain annual
regulations concerning locally produced or imported value. The threshold varies considerably from country
products. Although the European Union is already a to country, but it is typically about € 100,000. As a
fact, not all the regulations have yet been harmonised. consequence, although figures for trade between the EU
Work is in progress in the fields of environmental and the rest of the world are accurately represented,
pollution, health, safety, quality and education. For trade within the EU is generally underestimated.
more information about harmonisation of the

Overview 15 EU countries, 2002 Population and GDP of selected EU countries, 2002

Population 379.4 million Countries/category Population Age GDP

in millions 15-64 (€ billion)
Area 31,443,000 km2
Germany 83.3 68% 2,206
Density 83 people per km2
France 59.8 65% 1,556
Languages 15 (excl. dialects)
UK 59.8 66% 1,485
GDP/capita € 21,023
Italy 57.7 67% 1,416
Currencies €, UK£, DKr., SKr.
Spain 40.1 68% 836
Exchange € 1 = US$ 0.99
The Netherlands 16.0 68% 417
Source: The World Factbook 2002

18
Furthermore, the information used in this market survey
has been obtained from a variety of different sources.
Therefore, extreme care must be taken in the qualitative
use and interpretation of quantitative data, both in the
summary and throughout the text, just as in
comparisons of different EU countries with regard to
market approach, distribution structure, etc.

For more information on the EU market, please refer to

the CBI manual Exporting to the European Union.

Table 2.1 Exchange rates of EU currencies in US$, 1998-2002

Country Currency 1998 1999 2000 2001 Mid

2002

European Union € - 1.065 0.922 0.900 0.982

Denmark Dkr 0.15 0.14 0.12 0.12 0.13
Sweden Skr 0.13 0.12 0.10 0.10 0.10
United Kingdom GB£ 1.66 1.62 1.51 1.45 1.53

Source: CBS Statline (July 2002)

19
3 CONSUMPTION OF BODYWEAR

3.1 Market size spending on bodywear in the major EU countries is

given in the related paragraphs.
EU Germany is still the most important EU market for
Total EU consumption of bodywear amounted to € 30.4 bodywear, as can be derived from table 3.1, as well as
billion in 2001. Consumption rose by 1.5 percent in in total clothing consumption in the EU. However, the
2001 followed by a very small growth of 1 percent in difference with other major countries, like the UK, and
2002 (mostly based on 9- and 10-months figures for Italy has become much smaller. Four countries
individual countries). Per capita spending in the EU (Germany, UK, France and Italy) account for two thirds
amounted to € 80 in 2001. An overview of consumer of EU bodywear consumption.

Table 3.1 Consumer expenditure on bodywear (in € million) by EU countries, 1999-2002

1999 2000 2001 2002 Expenditure per product category

(estimated) in 2001
Under- and Hosiery Swim-
nightwear wear

Germany 6,125 6,157 6,039 5,971 4,018 1,535 486

United Kingdom 4,864 4,849 4,966 5,080 3,282 1,316 368
France 4,805 4,780 4,868 4,792 3,379 963 526
Italy 4,615 4,670 4,798 4,862 2,943 1,252 603
Spain 2,964 3,068 3,174 3,295 2,178 634 362
The Netherlands 1,012 1,104 1,146 1,206 725 271 150
Belgium 1,125 1,105 1,129 1,144 721 301 107
Austria 810 800 806 804 451 309 46
Portugal 700 710 724 732 489 158 77
Sweden 690 705 715 717 465 178 72
Greece 670 670 684 690 470 129 85
Denmark 520 535 545 583 380 126 39
Finland 405 410 423 439 304 93 26
Ireland 290 300 306 334 175 105 26
Luxembourg 45 45 46 46 35 9 2

EU (15) 29,640 29,908 30,369 30,695 20,015 7,379 2,975

Sources: several national statistics and Euromonitor

Table 3.2 Value sales of bodywear by sector in major countries, 2001 (in %)

EU Germany UK Italy France Spain Nether-

lands

Underwear 29 31 30 29 27 27 31
Foundation wear 21 18 19 18 26 27 20
Nightwear 10 12 10 9 9 9 8
Home wear 6 6 6 5 7 6 4
Swimwear 10 8 8 13 11 11 13
Hosiery 24 25 27 26 20 20 24

Total 100 100 100 100 100 100 100

Source: several national statistics

20
Belgian and Austrian consumers are the biggest during 2002 by a fall of an estimated 1.5 percent. This
spenders per capita on bodywear in the EU. Looking at contrasted with the 2.6 percent fall registered for overall
the major EU countries, Italian and UK consumption clothing consumption in 2001 and a growth of 1.0
was the highest followed by France and Spain. German percent in 2002.
and Netherlands consumption was less than the EU The German economy is suffering from a prolonged
average consumption of bodywear. downturn in the economy with consequent high
unemployment, which slows down consumption. In
Underwear is the leading sector of the bodywear market 2001, the GDP rose by 0.6 per cent and private
in all markets surveyed. In the period under review, consumption by 1.1 per cent. Forecasts for the German
foundation wear and especially bras showed the biggest economy remain restrained. The GDP was predicted to
increase caused by popular types of underwired bras grow by 0.6 percent during 2002 and 2.0 per cent
(push-up), while expenditure on briefs grew slightly, during 2003. Private consumption is expected to have
despite the popularity among younger age groups of the remained unchanged during 2002 and to fall by 1.8 per
string. After many years of decline, the hosiery market cent during 2003.
levelled off, encouraged among other factors by fashion Despite the developments described above, Germany is
developments on the outerwear market. Nightwear and an attractive market for producers of bodywear. In 2001
homewear expenditure remained weak, while the the German bodywear market was 22 percent larger
market for swimwear fluctuated, mainly caused by than the UK bodywear market and around 25 percent
climatological influences. The share of bodywear in the larger than the French and Italian markets, which
total value of clothing sales ranged from 11.9 percent in ranked after Germany in order of size. It should be
Germany to 17.0 percent in Spain. noted that the German bodywear market was much
larger than the three markets mentioned in previous
Germany years. German consumers are not big per capita
Germany is the largest clothing market in the EU, spenders on bodywear in the EU. Bodywear expenditure
because of its large population (82.1 million); is estimated at € 80 in the EU, while German
consumption of bodywear fell to less than € 6 billion in consumers spent € 73 in 2001.
2002, accounting for around 11.5 percent of total The German bodywear market declined over the period
clothing expenditure. Sales of bodywear fell by 1.6 per 1999-2001, both in terms of volume and value.
cent during 2001 and continued their weak development

Table 3.3 Consumption of bodywear in Germany in volume and value, 1999-2002

1999 2000 2001 2002

(estimated)
million € mln million € mln million € mln million € mln
units units units units

Underwear for:
- women and girls 236 894 234 886 235 874 232 861
- men and boys 193 1,008 190 990 191 976 190 971
Foundation wear 71 1,074 71 1,066 73 1,081 74 1,086
Nightwear 36 740 38 768 36 736 35 712
Home wear 15 374 15 376 14 351 14 338
Total under- and nightwear 551 4,090 548 4,086 549 4,018 552 3,968

Swimwear for women and girls 10 318 11 326 10 311 11 325

Swimwear for men and boys 7 163 7 168 7 175 7 167
Total swimwear 17 481 18 494 17 486 18 492

Pantyhose and tights 312 636 300 615 292 602 296 587
Women’s socks and stockings 149 382 145 378 150 390 152 380
Men’s socks 274 536 268 527 266 543 268 544
Total hosiery 735 1,554 713 1,520 708 1,535 716 1,511

Total bodywear 1,303 6,125 1,279 6,157 1,274 6,039 1,279 5,971

Sources: Gfk and BTE

21
Sales of most items in the underwear sector declined, 85B (7%); other B-sizes (5%). Cup C accounted for 31
while sales of other items were stagnant. In volume percent, of which major sizes are 85C (11%) and 80C
terms, sales of women’s briefs and pants are estimated (8%), cup D: 13 percent, cup A: 8 percent and cup E:
at 140 million pieces i.e. 4 items per person. 4 percent.
The average consumer price varied strongly with a Nightwear and home wear sales for both sexes declined
growing upmarket sector; however, the average price is after 2000 to the same degree. Beach and bathing wear
around € 4.05. Waist and hip high styles take 32 performed well in 2000 and 2002, after stagnant results
percent each; minis take 14 percent, and tangas and jazz in the previous years, helped by relatively good weather.
pants 9 and 6 percent respectively. White is the The stocking and pantyhose sector has long been
favourite colour, followed at a distance by black, and performing very badly; since 1992 the sector has
beige (skin colour) for women’s underwear. declined by some 50 percent in volume terms.
In volume terms, sales of men’s briefs and underpants Designer labels, and retailers’ own brands and private
amounted to an unchanged 3.5 items per person, mainly labels (which are often direct imports), have been
in white and black. The average price is somewhat gaining market share from the big two traditional
lower than € 5.00: briefs almost € 4, retro-pants and brands Schiesser and Triumph in the women’s
boxer shorts about € 6. underwear sector. Other popular manufacturer’s brands
Foundation garments have been relatively stable since in women’s underwear are: Playtex, Naturana, Mey,
1992. Sales of bras come to 2.2 items per person at an BeeDees, Passionata, Chantelle, Sloggi and Wonderbra.
average price of € 14 in 2001. Wired bras, including The most popular private label is H&M. In men’s
push-up bras, performed well for many years, while the underwear, Schiesser is at a distance followed by
market share of seamless bras showed the biggest Trigema, Boss, Jockey, Calvin Klein, Hom, Mey etc.
increase in particular in smaller cups, followed by push- Vatter is the overall leader for hosiery, ahead of Kunert;
up bras. The market share of the latter increased from 9 Falke ranks third. The Kunert brand is the clear leader
percent in volume in 1998 to 12 percent in 2001. in terms of sales within the specialist retailer sub-sector
Expectations for increasing sales in seamless molded of the market; Vatter enjoys a similar predominance in
bras for bigger cups are positive for the coming years. the grocery sub-sector. Together they have half of the
According to Textil-Wirtschaft, cup B is bought by 37 market.
percent of German women, divided into the following The German market for bodywear remained weak in the
under-breast measurements: 75B (15%); 80B (10%); period 1999-2001; based on preliminary figures, a

Table 3.4 Consumption of bodywear in UK in volume and value, 1999-2002

1999 2000 2001 2002

(estimated)
million € mln million € mln million € mln million € mln
units units units units

Underwear for:
- women and girls 185 932 198 1,004 211 1,074 216 1,104
- men and boys 95 374 94 402 97 413 98 416
Foundation wear 52 842 53 892 55 958 57 991
Nightwear 32 528 31 513 31 521 30 524
Home wear 13 311 14 318 14 316 14 322
Total under- and nightwear 377 2,987 390 3,129 408 3,282 415 3,357

Swimwear for women and girls 9 239 9 235 10 240 11 251

Swimwear for men and boys 6 133 6 130 6 128 6 127
Total swimwear 15 372 15 365 16 368 17 378

Pantyhose and tights 328 705 325 673 314 635 317 647
Women’s socks 80 193 89 199 94 211 96 220
Men’s socks 188 507 192 483 189 470 191 478
Total hosiery 596 1,405 606 1,355 597 1,316 604 1,345

Total bodywear 988 4,864 1011 4,849 1021 4,966 1034 5,080

Sources: ONS and TNSFT

22
further and stronger decrease in 2002 and 2003 is garment, which indicated a large consumption of
expected. Outerwear fashion influences will stimulate garments in terms of volume.
the women’s underwear sector, while the outlook for the Clothing and bodywear spending will be further
nightwear sector remains uncertain. The hosiery sector affected by changes in the UK demographic profile
is expected to perform little better. over the next few years. Sales of underwear are
expected to increase by 3 percent annually between
United Kingdom 2003 and 2005. Nightwear sales will stabilise during
The UK remained the second biggest clothing market in the same period, while sales of hosiery and socks will
the EU and is also the second largest bodywear market decline by about 2 percent annually.
in the EU, after Germany. Total retail sales of bodywear
amounted to almost € 5 billion in 2001, 16 percent of France
the total EU consumption. French consumption of bodywear amounted to € 4.9
The UK bodywear market grew 2.1 percent in value in billion in 2001, making France the third largest market
the period 1999-2001, while in terms of volume the for bodywear in the EU with 16 percent of total EU
market growth was 3.3 percent in the same period, consumption, while France ranked fourth in the EU in
which indicates a fall in average consumer prices of 1.2 clothing consumption after Germany, Italy and the UK.
percent. Developments in the product groups Consumption of bodywear in France grew very slightly
distinguished, however, varied considerably. Women by 1.3 percent in the period 1999-2001, including a
expenditure on lingerie and foundations grew decrease in 2000. In total, men’s and boys bodywear
respectively by 15 and 14 percent, men’s expenditure on valued € 1.1 billion, women’s and girls’ bodywear
underwear increased by 10 percent, while purchases of amounted to € 3.7 billion. Consumption of women’s
swimwear (beach and bathing wear) decreased in 2000 lingerie increased, while consumption of men’s
and recovered in 2001 (- 1% during the whole period) underwear stabilised but bodywear and swimwear
and hosiery performed badly (- 6%), mainly caused by decreased.
pantyhose and tights. The French bodywear market increased in the period
under review in terms of volume. Sales of most items in
In volume terms, consumption of women’s briefs and daily underwear for women increased, while sales of
pants grew to about 5.5 garments per person, with an other items were stagnant, except the hosiery sector.
average price of € 4.35, influenced by the popularity of Consumption of pantyhose and tights fell, while
G-strings. In volume terms, purchases of men’s briefs consumption of socks grew.
and underpants are estimated at 2.4 items per person, at
a rather low average price of € 3.75. In volume terms, consumption of women’s
The share of foundation garments (bras, corsets and briefs/panties is estimated at 5 items per person. The
other under-garments which give the body shape) average price varied strongly with a growing upmarket
increased considerably since 1997. Bras covered 92 sector; however, the average price is around € 4.20. G-
percent of total value of consumption in this product strings took 23 percent of the market in 2001; briefs
group. Wired bras including push-up bras performed took 35 percent; mini-briefs 15 percent, and panties 27
well for many years. According to Key Note, the rise in percent. The market was sustained by strong increases
bra sales has been linked to the trend among younger in sales of briefs and strings. In volume terms,
women to combine bras with sheer outer garments. consumption of men’s briefs and underpants is
Greater consumer awareness of the benefits of wearing estimated at 3.2 items per person. The average price is
the right bra has also boosted sales. around € 4.75.
Nightwear and home wear consumption did worse than Women’s purchases of foundation garments (bras,
underwear in 2001, except home wear mainly for corsets and other under-garments which give the body
women. Beach and bathing wear continued its recovery shape) increased in 2001. Wired bras including push-up
of 2001; growth in volume and value is estimated for bras have performed well for many years. Push-up bras
2002. have gained market share, from 11 percent in volume in
Leading brands in women’s under- and nightwear are: 1999 to 14 percent in 2001. In total, underwired bras
Playtex, Lovable, Sloggi, Aristoc, Triumph, Gossard, accounted for 45 percent of the market, followed by
Imago, Contesa and Pretty Polly, besides a variety of sling-strapped (34%), wireless (18%) and strapless
private labels. The most popular private labels are the (3%). The average price of bras is € 18.40. White is the
brands (private label) of Marks and Spencer, like St. most popular bra colour (40% market share), followed
Michael and Bhs. Examples of upscaled brands are La by printed bras (25%), black (7%) and flesh-colour
Perla and Agent Provocateur. (7%).
UK citizens were amongst the higher average spenders Consumption of nightwear and home wear for both
per capita on bodywear in the EU. The UK bodywear sexes stabilised in the period 1999-2001. Purchases of
market is dominated by private label merchandise and men’s pyjamas came to some 9 million pairs annually,
final consumers are offered relatively low prices per while women buy twice as many nightdresses, pyjamas

23
Table 3.5 Consumption of bodywear in France in volume and value, 1999-2002

1999 2000 2001 2002

(estimated)
million € mln million € mln million € mln million € mln
units units units units

Underwear for:
- women and girls 232 950 236 985 239 1,003 238 984
- men and boys 63 316 62 311 62 314 62 303
Foundation wear 76 1,245 75 1,207 77 1,281 78 1,292
Nightwear 27 460 27 448 26 443 26 414
Home wear 12 338 13 345 12 338 12 316
Total under- and nightwear 410 3,309 413 3,296 416 3,379 418 3,309

Swimwear for women and girls 12 336 14 345 13 332 14 339

Swimwear for men and boys 11 212 12 207 11 194 11 201
Total swimwear 23 548 26 552 23 526 25 539

Pantyhose and tights 272 606 268 580 263 576 264 581
Socks and stockings 149 341 151 342 160 387 156 363
Total hosiery 421 947 419 932 423 963 420 944

Total bodywear 856 4,805 857 4,780 862 4,868 863 4,792

Source: FFIVM

Table 3.6 Consumption of bodywear in Italy in volume and value, 1999-2002

1999 2000 2001 2002

(estimated)
million € mln million € mln million € mln million € mln
units units units units

Underwear for:
- women and girls 185 876 189 917 192 983 191 990
- men and boys 89 341 90 353 92 396 91 401
Foundation wear 50 814 52 862 54 884 55 902
Nightwear 25 439 25 426 25 438 24 431
Home wear 9 246 10 247 9 242 10 243
Total under- and nightwear 358 2,716 366 2,805 372 2,943 371 2,967

Swimwear for women and girls 15 393 14 395 13 376 14 409

Swimwear for men and boys 11 228 12 230 11 227 11 222
Total swimwear 26 621 26 625 24 603 25 631

Women’s hosiery *) 216 595 210 561 207 568 211 576
Men’s and women’s socks 332 683 324 679 330 684 329 688
Total hosiery 548 1,278 534 1,240 537 1,252 540 1,264

Total bodywear 932 4,615 926 4,670 933 4,798 936 4,862

*) includes stockings, tights and knee-highs

Source: Sistema Moda Italia

24
etc. The return of femininity and seduction is leading to important, with a market share of around 8 percent.
a considerable increase in demand for nightgowns to This percentage is much higher than in countries like
the detriment of the pyjama. Germany and The Netherlands.
Beach and swimwear performed well in 2000, helped
by relatively good weather, but fell slightly in 2001. Consumption (in terms of volume) of all items in the
French women prefer one-piece swimsuits as opposed under- and foundation wear sector increased, in
to bikinis. Over the period 1999-2001, sales in volume particular, daily underwear (briefs and bras) for women
of one-piece swimsuits were almost unchanged at in 2001. Consumption of women’s briefs and pants is
around 7.6 million units. estimated at 144 million pieces in 2001, with an
According to trade figures, total consumption of average price of € 4.60. Sales of men’s briefs and
women’s pantyhose came to some 263 million pairs in underpants are estimated at 3.8 items per person, with
2001, about 62 percent of the total hosiery market. The an average price of € 4.90.
share of pantyhose decreased in favour of knee-highs. Consumption of bras increased almost 4 percent in
Purchases of women’s socks increased due to the fact volume and over 9 percent in value in the period 1999-
that women more and more wear trousers. 2001, while purchases of other foundation garments
Leading brands in women’s briefs are: Dim, Sloggi and (corsets and other under-garments which give the body
several private labels and for bras (in order of shape) declined 11 percent in terms of value. Market
importance): Playtex, Dim, Triumph, Chantelle and also growth of bras is due to the fact that wired bras
private labels. The most popular private label is Etam, including push-up bras have performed well for many
followed by Princes tam tam and Darjeeling. The years. Nightwear and home wear consumption
leading brands in men’s underwear are Dim, Athena, stabilised in the period under review, but selling at
Eminence and Jil, however, private labels and much lower prices.
unbranded or ‘no labels’ products have each a 25-30 Beach and swimwear performed well until 2000 and fell
percent market share. back in 2001. Preliminary figures for 2002, however,
The two leading brands of pantyhose are Dim and Well. show a much higher expenditure in this product group
Other (less) popular brands are Golden Lady, Le also caused by the increased popularity of products like
Bourget and Chesterfield. Private labels became more triangle and push-up bikinis and accessories like pareos.
important. Leading brands in the men’s socks sector The stocking and pantyhose sector has been performing
are: Olympia, Kindy, Well and Dim. The role of private badly for many years, however, women’s hosiery
labels and ‘no brands’ is even more important than in recovered slightly since 2001. The high expenditure
the men’s underwear sector. share of women’s hosiery compared with other major
EU countries is the result of the very high share of
Italy formal wear in clothing behaviour.
Italy is the fourth largest bodywear market in the EU, Leading brands in women’s lingerie are Lovable, La
after Germany, UK and France, with a value of € 4.8 Perla, and Triumph. The leading brand of pantyhose is
billion in 2001, almost 16 percent of total EU Golden Lady. Other brands are Filodoro, Franzoni,
consumption. Preliminary figures indicated that Italian Omsa, Sanpellegrino, Oroblu, Omero and Gossard.
bodywear consumption exceeded the French one in Leading brands in the men’s socks sector are: Imec,
2002. Rede Mohar and Malerba.
Consumption of bodywear increased 2.7 percent in
2001, after a much smaller increase (+1.2%) in 2000, Spain
but growth was faster for bodywear than for clothing in Spain is the fifth largest bodywear market in the EU,
total. Herewith, the share of bodywear in total clothing after Germany, UK, Italy and France, with a value of
expenditure reached to a level of 12.5 percent. € 3.2 billion in 2001, 10 percent of total EU consumption.
Spending per person on bodywear is high and above the Consumption of bodywear increased 3.5 percent in
EU average with € 84 per head, of which 56 percent for 2000 as well as in 2001. Consumer spending on
under- and nightwear. Expenditure on hosiery of € 22 bodywear is just under the EU average with € 79 per
per capita is much higher than Germany (€ 19) and head, and below the Italian per capita rate of € 84 or the
France (€ 16). € 81 for France. In volume terms, the Spanish
In volume terms, the Italian bodywear market grew in bodywear market grew in size from 608 million
size from 872 million garments in 1999 to 874 million garments in 1999 to 630 million garments in 2001. The
garments in 2001. The main reason for the growth was main reason for the growth was increased consumption
increased consumption of underwear for both sexes, and of women’s under- and foundation wear.
foundation wear.
The Italian consumer is very much brand oriented and Consumption (in terms of volume) of most items in the
can be considered as stylish, and having good taste under- and nightwear sector increased, in particular,
compared with other EU consumers. The role of daily underwear (briefs and bras) for women in 2001.
designers (high priced) clothing is decreasing but still Consumption of women’s briefs and pants are estimated

25
Table 3.7 Consumption of bodywear in Spain in volume and value, 1999-2002

1999 2000 2001 2002

(estimated)
million € mln million € mln million € mln million € mln
units units units units

Underwear for:
- women and girls 144 571 149 589 157 632 162 661
- men and boys 58 186 62 196 63 211 63 223
Foundation wear 47 761 49 798 51 836 52 892
Nightwear 18 302 19 306 18 301 19 314
Home wear 9 204 9 208 8 198 8 203
Total under- and nightwear 276 2,024 288 2,097 297 2,178 304 2,293

Swimwear for women and girls 9 214 9 222 10 227 10 231

Swimwear for men and boys 7 119 7 128 7 135 7 133
Total swimwear 16 333 16 350 17 362 17 364

Pantyhose and tights 142 273 134 271 131 268 132 270
Socks and stockings 174 334 181 350 185 366 183 368
Total hosiery 316 607 315 621 316 634 315 638

Total bodywear 608 2,964 619 3,068 630 3,174 636 3,295

Table 3.8 Consumption of bodywear in The Netherlands in volume and value, 1999-2002

1999 2000 2001 2002

(estimated)
million € mln million € mln million € mln million € mln
units units units units

Underwear for:
- women and girls 44 189 47 204 46 214 47 219
- men and boys 28 124 30 143 29 146 31 153
Foundation wear 13 186 14 207 15 228 16 241
Nightwear 6 93 6 99 5 96 5 98
Home wear 2 47 1 44 1 41 1 40
Total under- and nightwear 93 639 98 697 96 725 100 751

Swimwear for women and girls 4 104 4 104 4 112 5 126

Swimwear for men and boys 3 37 3 36 3 38 3 42
Total swimwear 7 141 7 140 7 150 8 168

Pantyhose and tights 48 118 46 133 44 131 45 136

Women’s socks and stockings 23 48 26 63 28 66 30 73
Men’s socks 39 66 41 71 42 74 40 78
Total hosiery 110 232 113 267 114 271 115 287

Total bodywear 210 1,012 218 1,104 217 1,146 223 1,206

Sources: Gfk and CBS

26
at 120 million units in 2001, with an average price of waist styles and also hip-high styles. The string is in
€ 4.08. Sales of men’s briefs and underpants are estimated particular popular with younger women (and older
at 3.4 items per person, with an average price of € 4.80. girls). The tricot boxer short became another popular
Just like in other major EU countries mainly caused by item; this style reached a share of 6 percent.
the increasing popularity of push-up and seamless bras Popular among men’s underwear were the Y-front (white
and the string, these products are often bought as and patterned) and boxer short in summer and sport slip
additional and less as replacement items. Consumption and tricot boxer short in winter.
of bras increased in volume and in value in the period Women bought on average 3.2 bras in 2001 for, in total,
1999-2001, while purchases of other foundation almost € 45.60. Purchases of the seamless bra increased
garments declined. Nightwear and home wear for the second year (+ 8%) and the wired bra remained
consumption in 2000 grew very slightly against some very popular. The market share of wired bras accounted
higher prices. for 70 percent of total expenditure on bras, of which 12
Beach and swimwear consumption stabilised in terms percent for push-up bras.
of volume against 2.5 percent higher prices during the Women and girls accounted for 72 percent of nightwear
period under review, just like hosiery but against 4 expenditure; men and boys for the remaining 28
percent higher prices. percent. Pyjamas remained popular: share in
The Spanish consumer prefers national brands slightly expenditure was 56 percent, expenditure on nightshirts
above foreign brands. However, a broad range of increased from 25 to 32 percent while sleepshirts
international brands (Playtex, Dim, Triumph, Chantelle covered 12 percent.
etc.) is available on the Spanish bodywear market Sales of beach and swimwear grew strongly; the market
besides the brands of Spanish manufacturers (Punto share of bikinis rose by 4 percent at cost of swimsuits.
Blanco, Gisela, Marie Claire, Garel, Airell, Selmark, Besides swimsuits and bikinis, more total collections
Platino, Kler etc.). are offered, which includes products like pareos, beach
dresses etc.
The Netherlands Leading brands in women’s briefs are: Ten Cate, Bon
The clothing market in The Netherlands amounted to Giorno and Sloggi and several private labels, like
€ 8.5 billion at consumer prices in 2001, of which 14.2 Hema, Hunkemöller etc. and for bras: Triumph, Sloggi,
percent was bodywear. Consumption of bodywear in Pastunette, Warner, Lovable, Chantelle and the private
The Netherlands has increased since 1997, of which labels mentioned previously.
2000 showed the biggest growth (+10%). There was a In men’s underwear the leading brands are Bon Giorno,
further but somewhat smaller growth in 2001 (+4%) Schiesser, Sloggi, Beeren and Koala, however, private
and 2002 (+5%) and for the coming years a small labels have 40 percent and unbranded or ‘no labels’
growth is also expected. products have a 15 percent market share.
The growth in bodywear expenditure is stronger than Popular (manufacturer) brands of pantyhose are Dim,
the increase in clothing consumption in The Hudson, Kunert, Falke, Oroblue and Golden Lady.
Netherlands, which indicated that the share of bodywear Private labels (Hema, V&D etc.) are very important and
in total clothing expenditure increased from 13 percent dominate in the men’s socks sector. The role of private
in 1999 to 14 percent in 2002. Spending per person on labels and ‘no brands’ is very important in men’s
bodywear is rather low at € 72 per head and below the underwear and nightwear, too. In the middle and higher
EU average. segments of the market brands like Hom, Jockey,
Calvin Klein etc. operate.
Under- and nightwear consumption in terms of volume Bodywear spending will be further affected by changes
decreased by 2.0 percent in 2001 and increased by 4.2 in the demographic profile over the next few years.
percent in 2002. This means that consumers bought Sales of bodywear are expected to increase by 4 percent
more items, but also spent more money per product annually between 2003 and 2005.
than they previously did.
Detailed trade figures for consumption of hosiery and 3.2 Market segmentation
socks were not available. It can be assumed that the
trend, valid for all major EU countries, is valid for the The general criteria for market segmentation of
Netherlands market too. There was further decrease of bodywear are:
women’s pantyhose and a growing market share for • by age - children’s wear and adults, in this report
knee-highs and ankle socks. (unless otherwise mentioned) the criterion used is 15+;
• by gender - women/girls and men/boys;
Analysis of the data on domestic consumption of major • by type of product;
product groups gives the following picture, with respect • by attitude towards fashion and life style; and,
to the various individual clothing items. • by product/quality ratio.
Regarding women’s briefs, the popularity of the string Other criteria are based on special activities (sports etc.)
was growing, resulting in a share of 22 percent, equal to or other circumstances, like maternity wear.

27
Segmentation by age and gender interesting target group for lingerie. They often live
The size and age structure of the population is one of with their parents and enjoy a considerable clothing
the basic determinants of how much will be spent on budget. In fact, they generate 20 percent of the sector’s
clothing including bodywear. Although this may appear revenues, while representing only 15 percent in number.
to be a rough method for categorising the market, it is Particularly in daytime lingerie, their budget is
interesting because: significantly higher than that of the other consumers.
• generally speaking, different age categories have They buy for the pleasure of it more than out of
different clothing behaviour, and necessity, however, the size of this age group is likely to
• developments within the various age categories can decrease slightly.
be followed, by comparing results with projections. The spending on bodywear rises to age 64. The age
group 50-64 has the highest average expenditure,
The EU population has a declining birth rate and an followed by the age group 25-34. The former group is
ageing population. In the selected EU countries, the looking for quality and supporting bodywear and has a
category below 20 years decreased. The categories 40 growing share of available disposable income. The latter
and older increased substantially. In 2000 about 40% of age group is enjoying increased income, which
the total population was older than 45. As the “baby stimulates their consumer appetites; their budget is
boom” generation becomes older, we see the population above the total average and only 5 percent lower than
as a whole becoming “greyer”, apparent in the number the younger age group. Globally, the group of the age
of senior citizens above 55 years of age. Population 65 and over spends less on bodywear.
growth is expected to slow in the EU countries selected All age groups buy nightwear and more or less the
for this survey. same situation applies to bathrobes.

Children’s bodywear Segmentation by type of product

The buyer of children’s bodywear, certainly for the The bodywear market can be divided into several
younger age groups, is an adult, mostly the mother. Her segments based on type of product combined with type
fashion-consciousness and general buying behaviour of activity, resulting in a specific clothing behaviour. As
have a long-lasting dominating influence on the mentioned in chapter 1, the following categories are
purchase of clothes for the child. The social position of distinguished:
the child’s family also plays a role in these decisions. • women’s underwear, comprising the categories briefs,
However, as they grow up, boys and girls increasingly bodies and teddies, camisoles and slips and
raise their voices as to how they want to be dressed. eventually T-shirts;
This development takes place in phases, with varying • women’s foundation wear, comprising bras, corsets,
influences from the outside. Fashion awareness for corselettes and girdles;
outerwear, but also for bodywear, is increasing among • women’s nightwear, comprising nightshirts and
the younger children. pyjamas,
• women’s home or loungewear, comprising: negligées,
Men’s bodywear dressing gowns, home suits and leisure suits;
In terms of consumer targeting, the bodywear market • women’s swimwear, like swimsuits, bathing suits and
for men (15+) can be divided into two broad groups: bikinis;
younger buyers, who tend to be more concerned with • women’s hosiery, like stockings, tights, knee-highs
image and fashion, and older buyers, who are and ankle-lengths;
concerned more with quality, value, practicality and • men’s underwear, comprising underpants or briefs
durability. However, the dividing line between these two and vests;
groups in terms of age is not easy to draw. Fashion is • men’s nightwear, comprising nightshirts and
important to many consumers in their 30 to 40s and pyjamas;
quality has become an increasingly important criterion • men’s loungewear, comprising dressing gowns, home
to younger consumers. suits and leisure suits;
All age groups buy nightwear and more or less the • men’s swimwear, like swim trunks and
same situation applies to bathrobes. The percentages per swim/surf/beach shorts; and
age group are increasing for older groups. Mainly men • men’s hosiery, like knee-high and ankle-length socks
older than 40 years buy nightwear while younger people and tights.
prefer boxer shorts and T-shirts, instead of pyjamas or
nightshirts. Segmentation by attitude towards fashion and life
style.
Women’s bodywear Elements of fashion are: colour, design, exclusivity and
The bodywear market for women shows another style. The present consumer in Western Europe wants to
pattern: be seen as an individual with his/her own life style.
women in the age category 15-24 year are in fact a very Especially in the fashion segment (higher price ranges),

28
clothing products have an individualising function. region, but much more by factors like fashion
Therefore the demand by the consumer has become consciousness and culture.
more specific. The variety in life styles and sub-cultures has led to an
Character, ideas and attitude to life will be emphasised increase in the fragmentation of the clothing market as
by the way a person dresses. Clothing serves as the well as the bodywear market. It has also become rather
means of expression of personality. Combination difficult to predict the buying behaviour of the clothing
fashion is eminently suited to expressing a personal consumer.
style. Consumers set priorities in their pattern of The consequence of the above is that:
expenditure according to their life style. The • the consumer expects retailers to have a clear image.
increasingly individualistic nature of society will bring In order to meet these consumer demands, many
about a rise in demand for goods with an expressive clothing stores are going in for upgrading, while on
value. People do not mind spending their money on the other side value retailers and clothing discounters
such goods, while for products with a lower priority, a start or maintain their operating on low-price level;
low price is the main criterion. • most brands in body fashion differentiate and
There are some important concepts in the world of subdivide their collection into groups like
fashion. One of them is fashion mentality. It means the fashionable or trendy, luxury, sporty, comfortable etc.
degree of rapid acceptance of new fashion trends by The consumer can choose from different styles: basic
consumers. This concept helps to divide clothing as well sportive as luxury, chique or sexy, and
products in: avant-garde, innovative, current, well expects retailers to have a clear image.
known and out-dated. Both will be discussed in more detail in chapter 7
Another important concept regarding fashion ‘Trade structure’.
consciousness is ‘conception of culture’. It is the
attitude of a consumer on patterns of culture. A Segmentation by price/quality ratio
consumer can choose for conforming to the dominating In the bodywear sector the trend towards looking for
culture or he/she can choose just the opposite higher quality and more expensive products has
(opposition to traditional culture). Using this concept, increased in recent years. The consumer remains price-
one can distinguish the following kind of clothing conscious, but to an ever greater extent looks for
products: extreme, different, funny, neat, chique. higher-quality materials as well as fashionable trends.
In general the judgement about what is beautiful or ugly This makes product quality the most important
is currently not so much determined by macro- purchase criterion, followed by design and appearance.
economic factors like age, income, profession and/or Although this trend is growing, the middle price

PURCHASE CRITERIA STORE CHOICES

Luxury segment
(market share approx. 5-10 percent)
Exclusive luxury and designer brands Exclusive retail stores
High quality materials Boutiques
Brand-name goods with image effect Manufacturer’s direct stores
Embroidery and appliqués Special departments in department stores
Upper-middle price segment
(market share approx. 20-25 percent)
Brand-name goods Independent speciality shops
High quality materials Bodywear specialty multiples
Fashion themes Department stores
Specialised mail order
Middle price segment
(market share approx. 40-50 percent)
Good quality Clothing multiples
Broad range in colours and design Variety stores
Fashionable Mail order
Mass consumer price segment
(market share approx. 20-25 percent)
Inexpensive products Variety stores
Special sales/offers Clothing and textile discounters
Basic quality Super- and hypermarkets
Street markets

29
segment with a market share of 40-50 percent continues belong. Belonging to a group or a community of some
to dominate. kind provides us with an identity that says something
about how we perceive ourselves and how others should
This will be discussed in more detail in chapter 7 perceive us. Brands are important because:
‘Trade structure’. • In the purchase decision, they give consumers
confidence about the product that goes beyond pure
3.3 Consumption patterns and trends quality assurance. They know they will not be
disappointed and that they can be sure of a product’s
Demand for clothing is a function determined by durability and workmanship.
factors like demographics and life styles, as discussed • Only some brand attributes are related to the product.
above. Other factors are among others: income and Consumers feel it is important that a brand should
spending power, priorities in consumer choices, not only guarantee quality but should also project the
developments in fashion, brand awareness and image that relates to their life style.
preferences, climate and environment. • In Europe and the USA, the majority of consumers
clearly look to well known brands for better quality
Income and spending power and claim that they will pay more for a brand that
Economic growth has slowed across much of Western they like and which fits their image and life style.
Europe since the turn of the millennium, with the • Consumers do not distinguish between supplier and
softness in the economy driven in large part by cyclical retailer brands. Either can reach the consumer with a
factors such as reduced exports amid global weakness. branded proposition. Suppliers are opening their own
However, in countries such as Germany and Italy, the stores (such as Oysho, Women’s Secret, Darjeeling,
economy also suffers from structural barriers to growth, Palmer etc.); retailers are offering their own products
such as rigid labour market and a strict regulatory (such as Zara, H&M, C&A, Etam etc.).
environment. • A polarisation of brand leadership also appears likely
Reduced consumer confidence and growth in in Europe. Retailers in Germany, UK, France and
unemployment were, among others, the main factors other EU countries are clearly aiming to replace
leading to a smaller growth in total consumer spending. manufacturer brands with their own identities in the
The income elasticity of clothing is about equal to one. middle market, leaving the upper market to designer
So when consumer incomes rise by 1 percent the brands.
demand for clothing will rise by 1 percent too.
However, this elasticity is higher for rising incomes Some of the broadly distributed bodywear brand names
than for declining incomes. are:
• Hanes, Playtex, L’eggs, Dim, Unno, Wonderbra,
Priorities in consumer choices Lovable, Gossard, Champion, Pretty Polly, Ocean,
There are significant differences in consumption habits Nur Die all distributed by Sara Lee (USA);
in the varying EU countries, due to differences in • Nautica, Polo, Anne Cole, Calvin Klein and own
culture, traditions and tastes. According to Retail brand Warners by the Warnaco Group (USA);
Forward, a growing trend for ageing consumers to • Triumph, Sloggi, Bee Dees, Valisère, Hom by The
spend cash on homes, personal care, savings or leisure Triumph Group (Switzerland);
time, means apparel retailing in the EU is going • Jockey, Hanro Huber and Skiny by Huber Holding
through major structural change. (Austria);
Clothing in total accounted for 5.4 percent (bodywear • Chantelle, Passionate, Darjeeling by Chantelle S.A.
for 0.7 percent) of household expenditure in the EU in (France);
2001, while this percentage was still more than 6 • Rösch, Louis Feraud, Daniel Hechter by Gerhard
percent ten years ago. In 2001, spending on bodywear Rösch (Germany);
was higher than the EU average in Italy, Germany and • Ten Cate, Free and Easy, Pastunette, Koala, Tweka by
the UK, while it was lower than the EU average in Van Heek-Tweka (The Netherlands);
France, The Netherlands and Spain. Italian consumers • La Perla, Joelle, Malizia, Occhiverdi, Grigioperla by
devoted the highest share of expenditure on clothing, at Gruppo La Perla (Italy);
7.1 percent in 2000. The UK showed a remarkable • Imec, Silvia Mategna, Peach Tree by Imec (Italy)
growth in the last decade in spending on clothing, but • San Pellegrino, Oroblu, Lepel, Starway, Le Bourget
household expenditure on clothing declined in the by CSP (Italy)
review period, just like in most other countries • Marie Jo, Marie Jo l’Aventure, Prima Donna by Van
de Velde (Belgium);
Brands • Brands from Spain are among others: Punta Blanco,
In a world of change and insecurity, brands provide an Marie Claire and Kler. Other French brands are
ideological home. All humans face a fundamental among others: Eminence, Aubade and Barbara; other
conflict between wanting to be different and needing to German brands are among others: Mey, Naturana,

30
 Falke, Bruno Banani; other brands from The The CBI fashion forecasts can be consulted for more
Netherlands are: Beeren, Boobs & Bloomers, Duet. detailed and up-to-date fashion information.

Manufacturers of brand names met strong competition Climate

from retail chains which have their own private labels Generally spoken, weather has an impact on the timing
(like Marks & Spencer, Zara, Hennes & Mauritz, Etam, of expenditure, which tends to be highly seasonal.
Hema, Hunkemöller, C&A etc.) but also from (general) Unexpected weather changes influence consumers in
clothing brands (like Esprit, Mexx, Ralph Lauren, their purchasing decisions. Seasonal influences are most
Diesel etc.), fashion designer brands (like Chanel, noticeable in type of fabrics. Another direct relation can
Gucci etc.) and from sport brands (Nike, Adidas, Fila be found in the purchase of large amounts of swimwear.
etc.).

Fashion developments
• The increasing trend in demand for plainer, more
comfortable underwear resulted in the fact that sheer,
seamless lingerie and ‘bare-look’ tights have come
into favour. Increasing use of micro fibres in all
bodywear segments, varying from bras to (slimming)
bathing suits. Micro fibres are still selling very well,
helped by the fact that garments made of these fibres
remain invisible even under the slightest and tightest
outerwear.
• Cotton and cotton/elastane materials for knitted
underwear are popular and will remain popular in the
coming years, in particular for men’s underwear.
• Trends in women’s underwear are derived from those
in outerwear fashions. For the coming years, tight
and well fitting jerseys, trousers and skirts will
remain fashionable, which means that underwear
items will be differentiated and minimal. Another
continuing trend in lingerie and foundation garments
is the increasing demand for more luxurious products
with multi-coloured lace and embroidery, to wear
under luxury outerwear. It is expected that women
will choose for both possibilities.
• Foundation garments are not strictly for figure
correction, but slimmer women also wear them
today, because they are considered feminine and
chic. Bras with push-up effects and briefs
strengthened for stomach correction remained
popular. Filling of the push-up bra can be made of
several materials from cheap to expensive (micro
fibres), textiles and non-textiles (silicones, water, air
etc.).
• Trends in sports garments have particularly
influenced underwear designers, as can be seen in
the popularity of bustiers and seamless items.
• In men’s underwear, underpants with Y-fronts, mini-
slips, boxer shorts and retro pants (clinging short
style) remain popular. The string is becoming more
popular, but the market share for men’s underwear is
lower than for women’s underwear.
• Women in particular in countries like UK, Germany,
The Netherlands and the Scandinavian countries, are
generally becoming larger and heavier, which has led
to a marked increase in demand for fuller bra cup
sizes and minimiser bras.

31
4 PRODUCTION

4.1 Production of bodywear in the EU World-wide, the bodywear industry is dominated by

some big concerns, like the multinationals Sara Lee
The number of employees in the apparel sector fell by (division Intimates & Underwear, operating with many
almost 9 percent in the period 1999-2001 to 1.5 million, daughter companies in the EU), the Warnaco Group,
of which around a third is active in the knitwear sector. both from the USA and Triumph from Switzerland.
The number of enterprises decreased too. Major EU producers of under-, night- and in some
The EU clothing industry is dominated by a large cases also swimwear are:
number of small and medium-sized enterprises, the Chantelle, SNC Guichard, Promiles, Eminence, Lejaby
average company having 20 employees in 2001. SAS, VF Diffusion SNC from France;
After a decline of 3 percent in the EU’s turnover in Huber Holding and Palmer from Austria, Van de Velde
clothing and in knitting production in 1999, the value of from Belgium, Gerhard Rösch, Mey, Naturana/Dölker
production increased in 2000 by respectively 3.6 from Germany, Gruppo La Perla, Emmeci, Imec,
percent, despite the fall in production volume, but fell Trucco Tessile, Randi, Garda and Gagliardi from Italy;
again in 2001 by 2 percent. C.I. Vals, Giro and Basi from Spain, Van Heek/Tweka,
Timpa, Engelvaart, Lybeert from The Netherlands,

Table 4.1 EU clothing and knitting production structure, 1997-2001

1997 1999 2001 % change % change

2001/2000 2001/1997
Knitting
Total employment (‘000) 591.5 534.7 499.5 - 3.9 - 15.6
Number of enterprises 34,543 32,448 30,601 - 3.0 - 11.4
Investment (€ billion), current prices 1) 6.10 5.42 5.17 - 10.4 - 15.2
Turnover (€ billion), current prices 29.1 29.4 - 4.0 - 20.6

Clothing
Total employment (‘000) 1135.9 1056.3 961.6 - 3.8 - 15.3
Number of enterprises 55,933 52,015 48,538 - 3.5 - 13.2
Investment (€ billion), current prices 1.20 1.08 1.17 + 6.4 - 2.5
Turnover (€ billion), current prices 70.0 68.5 70.3 - 1.1 + 4.3

1
) including textile industry
Source: Euratex and L’Observatoire Européen du Textile et de l’Habillement (OETH)

Table 4.2 Production of bodywear in volume in the EU, 1996-2001

Volume 1996 1998 2000 2001

Knitted:
T-shirts mln units 407 396 390 385
Underpants, briefs etc. mln units 790 754 750 744
Stockings, tights, pantyhose mln pairs 2,264 2,160 2,030 1,949
Nightwear mln units 69 65 60 58
Swimwear mln units 90 86 80 81

Woven:
Night- and underwear tons 26,103 25,060 24,640 24,850
Swimwear mln units 9 9 9 9
Bras mln units 102 100 98 97
Other foundations mln units 22 20 20 19

Source: CITH and industry estimates

32
Courtaulds, Charnos, Martin Emprex International (part 4.2 Delocalisation of clothing production
of Martin International), Adria, Bairdwear, Bentwood
and Delta Textiles from the UK The restructuring policy of many manufacturing
In the swimwear market, a difference can be made companies in the EU during the last two decades led to
between manufacturers, active in the competition relocation of the clothing production, mainly based on
segments and/or in the keep-fit, recreation and pleasure labour cost comparisons. The foreign policy of clothing
segments. In the competition segments, Speedo companies takes many forms; most of the largest
(originating in Australia and now headquarters in the companies entered into joint ventures in low-cost
UK) dominates worldwide besides USA manufacturers countries or have built up their own factories abroad.
like Quiksilver, Jantzen, Hind, Tyr Sport and Arena. All Besides these forms of ownership structure,
brands from the above-mentioned manufacturers subcontracting forms an important part of activities of
compete on the non-competition market with sport the EU clothing industry. It is possible to identify three
giants like Nike and Adidas, as well as with the basic concepts of subcontracting: Outward Processing
competing parties as mentioned under underwear. Trade (OPT), Cut, Make and Trim (CMT) and Free on
Sara Lee (USA) has dominated the hosiery sector for Board (FOB). Another possibility for manufacturing
many years. Important manufacturers in the EU are companies is sourcing abroad, mainly for additional
Kunert and the Falke Group (all from Germany), products to their own product range.
Golden Lady and CSP International (both from Italy)
and Wolford and the Ergee Group from Austria. Most In the case of OPT, the most labour intensive
of these hosiery manufacturers operate on the piecework such as sewing and packing has been
underwear market and some of them on the swimwear relocated. For the sake of quality control, the whole
market too. There is a tendency in the whole bodywear handling of fabrics or leather, including dyeing and
sector towards further concentration through many take- printing, is retained in the EU home country. The same
overs and mergers. goes for the quality control and the distribution to the
customer. Basically spoken, EU fabrics, cuttings or
Production volume of bodywear in the EU decreased in semi-finished garments are exported to low-wage
the period 2000-2001 by 2 percent, while for 2002- countries, which make them up into finished garments
2004, a further decrease is expected. Detailed figures for re-import into the EU.
concerning production were not available at the time of The EU’s OPT for bodywear decreased steadily in the
writing. Italy is the largest producer of knitted items period 1999-2001 to € 587 million. OPT appeared to
accounting for around 30 percent of EU production, constitute 5.6 percent of EU bodywear imports from
followed by Germany, France, UK, Spain and Portugal. outside the EU in 2001, while it had accounted for
some 8 percent in 1997. This change is mainly due to
the facts that, since 1 January 1998, all textile and
clothing imports from the CEECs have been liberalised,
and OPT is no longer necessarily statistically recorded

Table 4.3 OPT in bodywear by EU countries in terms of volume and value, 1999-2001

1999 2000 2001

mln units € mln mln units € mln mln units € mln

Germany 74 135 67 144 67 149

Italy 60 86 83 103 72 102
United Kingdom 18 69 122 92 27 100
Austria 49 74 57 72 39 79
Greece 35 44 46 64 77 65
Denmark 19 39 24 50 19 36
France 96 156 16 45 10 31
Belgium 3 19 4 21 3 13
The Netherlands 6 15 7 9 4 7
Other (6) 3 7 3 8 2 5

EU (15) 363 644 429 608 320 587

Source: Eurostat

33
as such, while the policy of EU manufacturers changed Suppliers abroad receive complete specifications for the
to other ways of delocalisation, like CMT and FOB. design, quality of the fabric, accessories and other
materials etc. Subsequently, the suppliers manage the
60 percent of total OPT came from CEECs in 2001, of purchase of the materials themselves. This form is most
which most important, besides the four leading partners usual to importers/wholesalers and importing retail
(Hungary, Poland, Bulgaria and Romania) were organisations, but only a minority of the manufacturing
Ukraine, Belarus and Lithuania. OPT trade from these companies. This often concerns additional products
countries into the EU decreased from 65 percent in (accessories) or basic products like shirts, jeans, T-shirts
1999, mainly caused by lesser trade with Poland, etc. to complete a manufacturer’s product range.
Romania and Lithuania and despite increased trade with
Hungary, Bulgaria, Ukraine, Belarus, and Latvia. The The form of CMT is frequently employed in an
most important OPT country from outside Europe estimated 50 percent of the clothing companies in
remained Sri Lanka. OPT with Asian developing countries like Sweden, Denmark, The Netherlands and
countries increased to 18 percent in 2001, mainly from Germany; the OPT form (mainly with CEECs) is used
Sri Lanka and China. Mediterranean developing by 30 percent and FOB accounts for about 20 percent
countries accounted for 17 percent in 2001; the main of companies in the clothing industry in the four
trading partners were Morocco, Tunisia and Albania. countries mentioned. The foreign policy gives EU
manufacturers the possibility to maintain control over
EU’s OPT for bodywear accounted for 31 percent the management and quality of the outsourcing
knitted under- and nightwear, 24 percent T-shirts and 26 operations and to respond quickly to changing market
percent foundations in 2001. OPT in hosiery, knitted demands.
and woven swimwear, woven night and underwear was When products from foreign production, subcontracting
limited. Imports of knitted under- and nightwear into and sourcing are imported, this occurs under a regime
the EU via OPT amounted to 180 million in 2001 and of direct imports with trade restrictions. The garments
came from Hungary (28%), Sri Lanka (15%) and produced under OPT restrictions are re-imported
Poland (6%). T-shirts imports via OPT amounted to exempted from all quotas and tariffs for imports into
140 million and came from Bulgaria (17%), Poland the EU for the countries in question.
(15%) and Hungary (8%). Imports of foundations into
the EU by OPT amounted to 154 million in 2001 and
came from Hungary for 25 percent, followed by Belarus
(9%), Poland (9%) and Morocco (7%).

CMT indicates a further step in the relocation. Here the

whole manual production has been relocated, although
the material purchase is held on to for efficiency and
quality reasons. The quality control has been relocated
too and is typically managed by travelling controllers.

The next step in relocation is often called FOB.

Table 4.4 Developments in OPT in bodywear in total and by trade partners, 2001

€ mln Leading trade partners in 2001:

EU 587 Hungary (18%), Sri Lanka (12%), Poland (9%), Bulgaria (9%), Romania (7%)
Germany 149 Hungary (29%), Poland (9%), Ukraine (9%), Romania (9%), Sri Lanka (8%), Belarus (8%)
Italy 102 Romania (13%), Poland (12%), Albania (9%), Sri Lanka (8%), Belarus (7%)
UK 100 Sri Lanka (54%), Morocco (18%), Hong Kong (13%)
Austria 79 Hungary (67%), Romania (13%), Slovakia (7%)
Greece 65 Bulgaria (76%), Albania (15%)
Denmark 36 Poland (46%), Lithuania (30%), Latvia (12%)
France 31 Tunisia (31%), Poland (26%), Morocco (12%), Bulgaria (6%)
Belgium 13 China (47%), Tunisia (17%), Hong Kong (15%)
The Netherlands 7 Moldova (45%), Hungary (30%), Serbia Montenegro (7%)
Other (6) 5 Estonia (43%), Latvia (37%)

Source: Eurostat

34
5 IMPORTS OF BODYWEAR

5.1 Total EU imports a fall in 2001) and resulting in a growth lower than
EU average during the whole period in Germany,
Before we take a look at the import figures for The Netherlands and Belgium;
bodywear into the EU, it should be noted that all data • Strongly growing imports (equal to the EU average)
presented in this chapter are official trade figures in France;
provided by Eurostat. We therefore refer to the remarks • Booming imports (between 27 and 54 percent) in
in chapter 1, explaining that official statistics are not UK, Ireland, Italy and Spain.
always all-embracing and should be interpreted with
care. Developments in imports of bodywear vary strongly per
EU country. This depends on several factors like the
EU size and structure of domestic production of bodywear,
Total EU (15) imports of bodywear amounted to almost the possibilities and volume of re-exports, and
€ 17.0 billion in 2001. Germany remained the leading developments in demand as described in Chapter 3.1.
importer, with an import share of 25 percent in terms of
value, followed by the UK (17%), France (16%), Italy EU imports by area of origin
(7%) and The Netherlands (almost 7%). Belgium (6%) The role of developing countries increased considerably,
ranked sixth, followed by Spain (5%) and Austria in particular in 2000. The difference between imports
(almost 5%). from these countries and intra-EU trade became much
bigger: 42 percent of the value of EU bodywear imports
EU imports of bodywear increased 18 percent in the came from developing countries in 1999 and 48 percent
period 1999-2001. EU countries can be divided, by in 2001. Import shares from EU countries fell from 43
developments in value of imports during this period, percent in 1999 to 38 percent in 2001.
into: Imports from developing countries grew almost 27
• Slowly increasing imports (less than EU average) in percent in 2000, followed by a much smaller growth of
Austria, Denmark, Sweden, Portugal, Greece, 5 percent in 2001. Imports from ACP countries (mainly
Finland and Luxembourg; two countries: Mauritius and Madagscar) increased but
• Fluctuations in imports (growth in 2000 followed by remained far under the average growth of total

Figure 5.1 EU imports of bodywear by EU member states in value, 1999-2001

Luxemburg
2001
Finland 2000
Greece 1999
Portugal
Ireland
Sweden
Denmark
Austria
Spain
Belgium
Netherlands
Italy
France
UK
Germany

0 500 1000 1500 2000 2500 3000 3500 4000 4500 € millions

Source: derived from Eurostat 2002

35
developing countries. The biggest increase was for India (8%) and Turkey (7%), followed by Germany,
Asian developing countries, followed by Mediterranean Morocco, Portugal and Romania. Knitted under- and
countries during the period 1999-2001. Imports of nightwear for women and girls came from China (16%),
bodywear from other areas were very limited. Turkey (9%) and India (6%), followed by Austria,
Imports from ‘other countries’ showed an average Germany, France and Tunisia. T-shirts came mainly
growth of 16 percent in 2000 followed by a fall of 3 from Turkey (16%), Bangladesh (8%) and Portugal
percent in 2001. Imports from CEECs like Romania, (6%) followed by Greece, Germany and Belgium.
Hungary, Poland, Czech Republic and Bulgaria Knitted swimwear came mainly from China (30%)
increased, while imports from Asian countries like followed at a distance by Germany, France and Italy. 54
Hong Kong and South Korea decreased. percent of hosiery came from other EU countries,
mainly Italy (23 percent of total hosiery imports),
The EU’s leading suppliers of bodywear in terms of Germany and Portugal. Turkey ranked 2nd after Italy
value were: Turkey (11.4% in 2001 and 10.8% in 2000), and was the leading supplier from outside the EU,
China (9.9% in 2001 and 10.1% in 2000) and Italy followed at a distance by South Korea.
(6.2% in 2001 and 6.5% in 2000). Three EU countries China was the leading exporter to the EU of all woven
followed the top three: Germany, France and Portugal. product categories: men’s under- and nightwear,
Bangladesh became EU’s 7th supplier of bodywear and women’s under- and nightwear, swimwear and
passed Belgium (8th); India became EU 9th supplier and foundations. Turkey ranked second in under- and
passed The Netherlands. Other sources of imports nightwear for men and women. Other important
inside the EU were Greece (12th), Austria (14th) and the suppliers to the EU in men’s woven under and
UK (15th). Other sources of imports from outside the nightwear after China and Turkey were Tunisia, India
EU were Tunisia (11th), Morocco (13th), Romania, Hong and Pakistan; in women’s under- and nightwear: India,
Kong, Indonesia, Hungary, Mauritius, Sri Lanka and France and Sri Lanka. Imports of woven swimwear
Thailand. came from Tunisia, Italy and France, while foundations
came, besides China, from France, Tunisia, Austria,
Leading supplying countries in the specific product Indonesia and Hong Kong.
groups in 2001 were as follows: knitted under- and
nightwear for men and boys came from China (20%), Table 5.2 gives an overview of the 20 leading supplying

Table 5.1 Imports of bodywear into the EU by area of origin, 1999-2001

(in € million)

1999 2000 2001 Change in % Change in %

€ million € million € million 2001/2000 2001/1999

Total imports 14,388 16,849 16,958 + 0.6% + 17.9%

of which from:
Other EU countries 6,235 6,742 6,500 - 3.6% + 4.3%

Developing countries:
- ACP 268 308 309 + 0.3% + 15.3%
- Mediterranean 2,563 3,121 3,375 + 8.1% + 31.7%
- Asia 3,212 4,210 4,371 + 3.8% + 36.1%
- Central & South America 51 88 81 - 8.0% + 58.8%
- other developing countries 6 8 13 + 62.5% + 116.5%

Total developing countries 6,100 7,735 8,149 + 5.4% + 33.6%

Other countries:
- Western Europe 130 137 120 - 12.4% - 7.6%
- Central & Eastern Europe 1,087 1,260 1,429 + 13.4% + 31.5%
- North America 111 126 114 - 9.5% + 2.7%
- Asia 722 845 642 - 24.0% - 11.1%
- other 3 4 4 + 2.6% + 23.3%

Total other countries 2,053 2,372 2,309 - 2.7% + 12.5%

Source: Eurostat 2002

36
 Table 5.2 Leading (20) extra-EU suppliers of bodywear to the EU in terms of value, 1999-2001

1999 2000 2001

€ mln € mln € mln Product groups (% of value):

Extra-EU imports 8,153 10,107 10,458 42% T-shirts; 12% bras; 10% hosiery; 9% women’s & 6% men’s knitted briefs
of which from:
Turkey 1,469 1,783 1,937 58% T-shirts; 17% hosiery; 5% women’s knitted nightwear
China 1,381 1,662 1,673 19% T-shirts; 15% women’s and 11% men’s knitted briefs;14% bras;10%
women’s knitted swimwear
Bangladesh 418 634 670 90% T-shirts; 3% bras
India 416 519 599 45% T-shirts; 21% women’s knitted and 6% women’s woven nightwear
Tunisia 397 483 517 26% bras; 25% T-shirts; 16% women’s knitted briefs
Morocco 310 385 469 46% T-shirts; 15% bras; 10% women’s and 9% men’s knitted briefs
Romania 216 282 364 26% T-shirts; 19% hosiery; 16% women’s knitted briefs; 14% bras
Hong Kong 390 493 355 39% T-shirts; 25% bras; 16% women’s knitted briefs
Indonesia 193 282 323 34% bras; 29% T-shirts; 18% hosiery
Hungary 294 296 315 23% women’s knitted briefs; 23% T-shirts; 20% bras;10% hosiery
Mauritius 199 226 233 88% T-shirts; 6% bras
Sri Lanka 126 180 221 29% T-shirts; 15% women’s and 7% men’s knitted briefs; 10% hosiery
Thailand 136 183 204 31% T-shirts; 29% bras; 10% women’s knitted briefs
Poland 152 160 186 35% T-shirts; 15% hosiery; 14% bras; 11% women’s knitted briefs
South Korea 144 175 166 66% hosiery; 24% T-shirts
Egypt 113 159 137 56% T-shirts; 18% men’s and 17% women’s knitted briefs
Israel 202 190 137 30% hosiery; 16% bras; 14% women’s knitted swimwear and 13% briefs
Pakistan 126 137 130 37% T-shirts; 12% hosiery; 12% women’s knitted nightwear
Czech Republic 107 119 124 26% hosiery; 18% T-shirts; 10% bras; 9% men’s & 9% women’s knitted briefs
Bulgaria 71 106 124 42% T-shirts; 12% women’s knitted briefs; 8% bras
Other countries 1,293 1,653 1,574

Source: Eurostat

countries from outside the EU during the period 1999- whole period, the imported value of the following
2001. The two leading countries, Turkey and China, products performed better than the average: knitted
accounted for over 34 percent of total imports (in value) briefs and pants (for both sexes) of man-made fibres to
from outside the EU. The leading 20 countries the detriment of cotton pants, cotton T-shirts, bras and
contributed 85 percent. Of these 20 countries, only 5 other foundations. Imports of synthetic pantyhose and
countries (Hong Kong, South Korea, Egypt, Israel and tights, knee-length and full-length hosiery (all products
Pakistan) had lower exports (in terms of value) to the measuring < 67 decitex per single yarn) fell.
EU in 2001 compared with 2000.
The ten leading suppliers of bodywear to Germany in
Germany 2001 were: Turkey, China, Italy, Greece, The
Germany is the largest EU importer of bodywear and Netherlands, Bangladesh, Portugal, Hungary, France
accounted for 25 percent in terms of value in 2001. In and India.
that year, Germany imported knitted bodywear with a The main supplier of T-shirts to Germany was Turkey
value of € 3.5 billion and woven bodywear € 0.7 with 27 percent of total imports in 2001 in terms of
billion, of which respectively 68 and 71 percent was value, followed by Greece (11%), Bangladesh (7%),
sourced outside the EU. Of the total bodywear imports, The Netherlands (5%), Portugal (4%), Italy (4%) and
52 percent came from developing countries in 2001, India (3%). Knitted under- and nightwear came from
while this percentage was 49 percent in 1999. Turkey (19%), followed by China (18%), Hungary
German imports increased by 16 percent in terms of (5%), India (5%), Greece (4%), Switzerland (4%) and
value in 2000 and decreased by 7 percent in 2001. Italy (4%). Knitted swimwear came mainly from China
(40%), at a distance followed by Italy (8%), Hungary,
Imports in terms of volume increased 4 percent in 2000 Slovenia and Austria (each country 5%). The main
and fell almost 6 percent in 2001, which indicates suppliers of hosiery to Germany were: Italy (20%),
higher import prices (+11%) in 2000 and very slightly Turkey (18%), South Korea, Austria and Portugal (each
diminished import prices (-0.5%) in 2001. During the country 7%).

37
 Figure 5.2 German imports of bodywear by product categories, 1999-2001

€ million

2000
1999
1800
2001
1600

1400

1200

1000

800

600

400

200

T-shirts knitted knitted hosiery woven woven foundation

under- and swimwear under-and swimwear
nightwear nightwear

Table 5.3 Imports of bodywear into Germany by area of origin, 1999-2001

1999 2000 2001 % change

€ million € million € million 2001/2000

Total imports 3,871 4,472 4,180 - 6.5%

Of which from:
Other EU countries 1,387 1,557 1,321 - 15.2%
Developing countries: 1,905 2,205 2,174 - 1.4%
- ACP 21 24 24 + 0.1%
- Mediterranean 963 1,102 1,113 + 0.1%
- Asia 910 1,065 1,025 - 3.8%
- Central & South America 11 14 10 - 28.6%
- other 0 0 2 + 54.5%
Other countries: 579 710 685 - 3.5%
- Western Europe 57 75 4 - 12.0%
- Central & Eastern Europe 359 422 455 + 7.8%
- North America 23 28 24 - 14.3
- Asia 139 184 140 - 23.9%
- other 1 1 2 +45.2%

Source: Eurostat 2002

In the same year, most German imports of woven with 14 percent of the total value of imports in 2001,
under- and nightwear came from China (28%), Turkey followed by France (8%), Hungary (8%), Indonesia
(22%), India (4%), Macao, Pakistan, Bangladesh and (6%), The Netherlands (6%) and Austria (5%).
Poland (each country 3%). Woven swimwear came
mainly from Italy (38%) and China (23%). The main
supplier of foundation wear to Germany was China

38
 United Kingdom More than average growth (in terms of value) was
The UK is the second largest EU importer in terms of shown by the following product groups: knitted man-
value and accounted for 17.5 percent of EU total made slips and petticoats, man-made briefs and pants
imports of bodywear in 2001. Imports of knitted for women, cotton and man-made pyjamas for women,
bodywear amounted to € 2.3 billion and woven bathrobes and dressing gowns for women, T-shirts of
bodywear to € 0.7 billion. British importers sourced man-made fibres, cotton stockings and socks, men’s
around 82 percent of bodywear in non-EU countries. woven cotton underpants, also bras. Imports of some
Almost 70 percent of the total imports came from products decreased like: woven negligées and bathrobes
developing countries in 2001, against 53 percent in for women and sets containing bra and brief.
1999. The UK was one of the four EU countries with
booming growth of imported value of bodywear in the Turkey, China, Sri Lanka, Hong Kong, India, Morocco
period 1999-2001 (+27%). Imported volumes grew to a and Bangladesh were the leading bodywear suppliers to
much lesser degree (+7%). the UK market, followed by Italy, Indonesia and France.

Figure 5.4 UK imports of bodywear by product categories, 1999-2001

€ million

1400
1999
1200
2001
1000

800

600

400

200

T-shirts knitted knitted hosiery woven woven foundation

under- and swimwear under-and swimwear
nightwear nightwear

Table 5.4 Imports of bodywear into UK by area of origin, 1999-2001

1999 2000 2001 % change

€ million € million € million 2001/2000

Total imports 2,332 2,782 2,960 + 6.4%

Of which from:
Other EU countries 741 580 540 - 6.9%
Developing countries: 1,235 1,779 2,059 + 15.7%
- ACP 73 93 89 - 4.3%
- Mediterranean 424 609 721 + 18.4%
- Asia 731 1,065 1,229 + 15.4%
- Central & South America 7 12 20 + 65.0%
Other countries: 356 423 361 - 14.7%
- Western Europe 18 17 14 - 17.6%
- Central & Eastern Europe 35 43 50 + 16.3%
- North America 36 42 45 + 14.1%
- Asia 266 319 251 - 21.3%
- other 1 2 1 - 20.9%

Source: Eurostat 2002

39
In total € 1,178 million of T-shirts was imported in Turkey (14%), India (13%) and Morocco (5%). Woven
2001 into the UK, of which 21 percent came from the swimwear came mainly from China (36%), Italy (16%),
main supplier Turkey. Other suppliers were China Morocco (8%) and Israel (4%).The main supplier of
(10%), Bangladesh (8%), Morocco (5%), Mauritius foundation wear to the UK was China with 19 percent
(5%), Hong Kong (5%), Sri Lanka (4%) and India of the total value of imports in 2001, followed by
(4%). Knitted under- and nightwear came from China Morocco (11%), Hong Kong (8%), Indonesia (7%),
(21%), Turkey (10%), Sri Lanka (9%), India (8%), Austria (7%) and Tunisia (6%).
Morocco (7%), Egypt (6%) and Hong Kong (5%).
Knitted swimwear came mainly from China (51%), France
followed at a distance by Hong Kong (9%) and France accounted for 16 percent of EU imports of
Thailand (7%). The main suppliers of hosiery to UK bodywear in 2001. Around 55 percent of French
were: Turkey (33%), Italy (15%), Portugal (7%), Israel imports was sourced outside the EU, while 45 percent
and South Korea (each country 4%). came from developing countries.
In the same year, most UK imports of woven under- and French imports of bodywear rose by 18 percent in value
nightwear came from China (18%), Sri Lanka (14%), terms between 1999 and 2001. Imports into France

Figure 5.2 French imports of bodywear by product categories, 1999-2001

€ million

1200
1999
1000
2001
800

600

400

200

T-shirts knitted knitted hosiery woven woven foundation

under- and swimwear under-and swimwear
nightwear nightwear

Table 5.6 Imports of bodywear into France by area of origin, 1999-2001

1999 2000 2001 % change

€ million € million € million 2001/2000

Total imports 2,342 2,674 2,773 + 3.7%

of which from:
Other EU countries 1,140 1,249 1,241 - 0.6%
Developing countries: 986 1,168 1,260 + 7.9%
- ACP 110 121 130 + 7.7%
- Mediterranean 473 542 617 + 13.8%
- Asia 398 501 508 + 1.4%
- Central & South America 5 4 5 + 22.2%
Other countries: 216 257 272 + 5.8%
- Western Europe 14 10 8 - 18.9%
- Central & Eastern Europe 162 185 214 + 15.7%
- North America 8 10 9 - 8.2%
- Asia 32 52 41 - 21.1%

Source: Eurostat

40
increased strongly (+10%) in terms of volume in 2000 by China (11%), Austria (9%) Italy, Romania and Spain
and stabilized in 2001, which indicates a fall in average (each country 5%).
import prices of 3 percent in 2001 and an increase of 4
percent in 2001. Italy
Products with more than average growth in French In 2001, Italy imported bodywear for € 1.26 billion, of
imports were: knitted briefs and pants for both sexes in which 71 percent was sourced outside the EU and 48
particular made of man-made fibres, knitted swimwear percent came from developing countries. After Spain,
for women, T-shirts of cotton and man-made fibres, Italy was the second fast growing importer of bodywear
knee-length stockings of synthetic fibres, cotton socks of the EU countries.
and bras. A fall in imports was valid for synthetic Imports rose in terms of value by 28 percent in 2000
pantyhose and tights and full-length stockings, woven and 9 percent in 2001. Two products, T-shirts and bras,
cotton nightwear for both sexes and sets containing a accounted for respectively 33 and 11 percent of total
bra and a brief. imports in 2001. Imports of these products increased in
the period under review by respectively 36 and 72
In 2001, most French imports of bodywear came from percent. Imports of product groups, which also showed
the other EU members: Belgium (10%) and Italy (9%). more than average growth were: knitted briefs and
The leading non-EU suppliers were Tunisia (8%), underpants for women made of cotton as well of man-
Turkey (8%), China (7%) and Morocco (6%). Other made fibres, synthetic pantyhose and tights and cotton
suppliers to France were Portugal, Germany, Romania, terry bathrobes.
Austria and Mauritius.
The leading supplier of T-shirts to France was Belgium Leading suppliers of bodywear to Italy in 2001 were:
with 13 percent in 2001, followed by Turkey and Tunisia, Romania, China, France, India, Turkey,
Morocco (each country 9%), Portugal, Mauritius and Germany, Belgium, Austria and Bangladesh.
Bangladesh (each country 8%), Italy, Germany and The leading supplier of T-shirts to Italy was Tunisia
Tunisia (each country 5%). Knitted under- and with 9 percent in 2001, followed by Bangladesh and
nightwear came from China ( 13%), Belgium (10%), Belgium (each country 8%), France, Turkey, China and
Austria (9%), Tunisia (7%), India (6%) and Romania Romania (each country 7%) and Portugal (6%). Knitted
(6%). Knitted swimwear came from Tunisia (22%), under- and nightwear came from Romania (14%),
China (13%), Italy (12%) and UK (8%). The main Tunisia (13%), India (12%), China (10%), Austria (8%)
suppliers of hosiery to France were: Italy (34%), and France (5%). Knitted swimwear came from France
Romania (14%), Belgium (10%), Turkey (8%), Portugal (19%), China (11%) and Romania (9%). The main
(8%) and Germany (5%). suppliers of hosiery to Italy were: Hungary (15%),
French imports of woven under- and nightwear came Poland (11%), Romania and Germany (each country
from Tunisia (16%), China (13%), Turkey (13%), 8%), Slovenia, France and Spain (each country 6%) and
Belgium (9%), Morocco (7%) and India (6%). Woven Turkey (5%).
swimwear came mainly from Tunisia (29%), Belgium Italian imports of woven under- and nightwear came
(21%), Italy (9%) and Turkey (5%).The main supplier from China (17%), Tunisia (12%), Pakistan (11%),
of foundation wear to France was Tunisia with 19 Turkey (11%), and Romania (6%). Woven swimwear
percent of the total value of imports in 2001, followed came mainly from Tunisia (28%), China (25%) and

Figure 5.2 Italian imports of bodywear by product categories, 1999-2001

€ million

600
1999
500
2001
400

300

200

100

T-shirts knitted knitted hosiery woven woven foundation

under- and swimwear under-and swimwear
nightwear nightwear

41
 Table 5.7 Imports of bodywear into Italy by area of origin, 1999-2001

1999 2000 2001 % change

€ million € million € million 2001/2000

Total imports 903 1,157 1,260 + 8.9%

Of which from:
Other EU countries 305 362 369 + 1.9%
Developing countries: 444 579 609 + 5.2%
- ACP 14 20 20 +1.2%
- Central & Eastern Europe 2 4 7 + 60.6%
- Mediterranean 213 268 281 + 4.9%
- Asia 208 279 294 + 6.5%
- Central & South America 7 8 7 - 14.8%
Other countries: 154 216 282 + 30.6%
- Western Europe 6 6 6 + 7.5%
- Central & Eastern Europe 135 187 253 + 35.3%
- North America 6 6 6 - 6.8%
- Asia 7 17 17 + 0.2%

Source: Eurostat 2002

Croatia (12%). The main suppliers of foundation wear higher in 2001 than in 1999. During this period under
to Italy were France and Tunisia each with 10 percent of review, imports increased in terms of volume by 5
the total value of imports in 2001, followed by Romania percent.
and Austria (each country 9%),Indonesia and China During the whole period, the imported value of cotton
(each 6%). T-shirts rose more than average. Imports of the
following products fell strongly: knitted cotton
The Netherlands nightwear for both sexes, knitted briefs and underpants
The Netherlands ranked fifth as EU importer of for both sexes, synthetic tights to the detriment of other
bodywear, having been passed by Italy in 2001. materials (mainly cotton), synthetic full-length
Netherlands import value amounted to € 1.2 billion in stockings, woven nightwear and bathrobes for both
2001, of which 65 percent came from non-EU sources sexes. Imported value of bras showed the strongest
and 51 percent from developing countries. fluctuation, while imported value of other foundations
Between 1999 and 2001, Netherlands imports increased decreased during the period under review.
by 17 percent in terms of value in 2000 and decreased 4
percent in 2001. Imports in 2001 were 13 percent Turkey, Germany, China, Bangladesh, India, Italy, Hong

Figure 5.2 Netherlands imports of bodywear by product categories, 1999-2001

€ million

600
1999
500
2001
400

300

200

100

T-shirts knitted knitted hosiery woven woven foundation

under- and swimwear under-and swimwear
nightwear nightwear

42
 Table 5.5 Imports of bodywear into The Netherlands by area of origin, 1999-2001

1999 2000 2001 % change

€ million € million € million 2001/2000

Total imports 1,052 1,231 1,185 - 3.7%

of which from:
Other EU countries 352 404 414 + 2.5%
Developing countries: 463 615 610 - 0.8%
- ACP 8 11 10 - 10.7%
- Mediterranean 184 215 191 - 11.2%
- Asia 263 380 399 + 5.0%
- Central & South America 5 6 6 - 1.2%
- other 3 3 4 + 1.8%
Other countries: 237 212 161 - 24.1%
- Western Europe 5 4 3 - 25.4%
- Central & Eastern Europe 56 57 64 + 12.3%
- North America 16 19 12 - 36.8%
- Asia 160 132 82 - 37.6%

Source: Eurostat

Kong, France, Indonesia and Belgium were the ten with the fastest growing imported value of bodywear in
leading suppliers of bodywear (ranked in terms of the period 1999-2001 (+54%). Imported volumes grew
value) in 2001. to a much lesser degree (+6%).
The leading supplier of T-shirts to The Netherlands was Nearly all product groups showed a growth in imports
Turkey which accounted for € 81 million or 15 percent in the period under review, excepted knitted slips and
in 2001, followed by Bangladesh (12%), Germany petticoats, swimwear, pantyhose and tights, stockings
(11%), India (7%), Greece (7%), Portugal (6%) and and socks other than those made of cotton, cotton terry
China (5%). Knitted under- and nightwear came mainly bathrobes and girdles. More than average growth (in
from China (22%), followed by India (10%), France terms of value) was shown by knitted cotton briefs and
(9%), Hong Kong, Turkey, Germany (each country 8%) pants for women, cotton T-shirts, cotton stockings and
and Hungary (5%). Knitted swimwear came from China socks.
(28%), followed by Germany (15%) and Tunisia (9%).
The main suppliers of hosiery to The Netherlands were: In 2001, most Spanish imports of bodywear came from
Italy (22%), Turkey(15%), Germany (13%), South the other EU members: Portugal (17%), Italy (12%) and
Korea (8%) and Belgium (5%). France (10%). The leading non-EU suppliers were
In the same year, most Netherlands imports of woven Morocco (9%) and China (9%). Other suppliers to
under- and nightwear came from Tunisia (26%), China France were Germany, Belgium, UK and Bangladesh.
(21%), Germany (10%), Turkey (10%) and India (5%). The leading supplier of T-shirts to Spain was Portugal
Woven swimwear came mainly from China (48%), with 28 percent in 2001, followed by Morocco (9%),
followed by Tunisia (9%) and Thailand (8%). France (7%), Italy, Belgium and Bangladesh (each
The main suppliers of foundation wear to The country 6%) and China (5%). Knitted under- and
Netherlands were China and Hong Kong, each country nightwear came from Morocco (24%), China (18%),
13 percent of the total value of imports in 2001, Portugal, France and Italy (each country 8%), and
followed by France and Germany (each country 12%), Tunisia (7%). Knitted swimwear came from China (23%),
Indonesia (8%), Tunisia (7%) and Thailand (5%). France (19%), Italy and Germany (each 11%). The main
suppliers of hosiery to Spain were: Italy (51%), Belgium
Spain (8%), Portugal (8%) and Germany (6%).
Spain is the seventh largest EU importer in terms of Spanish imports of woven under- and nightwear came
value and accounted for 5 percent of EU total imports from France (20%), China (16%), Portugal (13%),
of bodywear in 2001. Imports of knitted bodywear Pakistan (9%) and India (8%). Woven swimwear came
amounted to € 686 million and woven bodywear to mainly from Italy (26%), China (22%), Morocco (11%)
€ 175 million. Spanish importers sourced 43 percent of and Portugal (7%).The main supplier of foundation wear
bodywear in non-EU countries and 43 percent of the to Spain was France with 24 percent of the total value of
total imports came from developing countries in 2001, imports in 2001, followed by Tunisia (12%), Italy (11%),
against 32 percent in 1999. Spain was the EU country Germany (9%), China (7%) and Indonesia (4%).

43
 Figure 5.2 Spanish imports of bodywear by product categories, 1999-2001

€ million

450
1999
400
2001
350

300

250

200

150

100

50

T-shirts knitted knitted hosiery woven woven foundation

under- and swimwear under-and swimwear
nightwear nightwear

Table 5.8 Imports of bodywear into Spain by area of origin, 1999-2001

1999 2000 2001 % change

€ million € million € million 2001/2000

Total imports 560 777 861 + 10.8%

Of which from:
Other EU countries 354 488 491 + 0.6%
Developing countries: 179 252 330 + 31.0%
- ACP 6 6 6 - 2.8%
- Mediterranean 56 90 133 + 47.8%
- Asia 108 144 177 + 22.9%
- Central & South America 9 12 14 +16.7%
Other countries: 27 37 40 + 8.1%
- Western Europe 1 1 1 + 67.5%
- Central & Eastern Europe 3 7 11 + 57.0%
- North America 5 5 5 - 6.8%
- Asia 18 24 23 - 5.2%

Source: Eurostat 2002

Sources of EU imports India, Indonesia, Sri Lanka, Thailand and Pakistan).

With regard to factors like cost levels and distances, the Low-cost, medium-distance countries: these countries
following competitive categories in bodywear can be supply medium fashion products, sometimes made as
distinguished: OPT. The main sources are Mediterranean countries
Low-cost, long-distance countries: these countries like Morocco, Tunisia, Egypt, Croatia and Albania and
specialise in low-priced, high-volume, low and medium CEECs like Romania, Hungary, Bulgaria, Poland and
fashion and standard types of products with a fair Slovakia
quality. These products are mainly made to buyers’ Medium-cost, medium-distance countries: these
specifications in countries in the Far East (China, Hong countries supply medium to high fashion products of
Kong and Macao) and South East Asia (Bangladesh, high quality and sometimes made of sophisticated

44
fabrics: like Turkey and EU countries Portugal and briefs (596 mln) in 2001, 65 percent came from
Greece. developing countries. Three years earlier this percentage
High-cost countries: these countries supply quality was 63 percent. During the period 1999-2001, the
fashion characterized by frequent deliveries, small leading supplier to the EU market was China, however,
quantities and sophisticated fabrics, which are difficult imports from China decreased from 209 million pieces
to obtain in low-cost countries. Western Europe (Italy, in 1999 to 177 million in 2001. India remained the
Germany, Belgium, Austria and UK), Israel and USA second supplier with 58 million pieces (+18%) followed
belong to this category. by Turkey with 31 million (+15%) and Hong Kong 27
million (- 4%). Other (less) important non-EU suppliers
A strong position in EU imports is taken by were Morocco, Romania, Bangladesh, Hungary,
Mediterranean countries like Turkey, Morocco and Thailand and Bulgaria. The most important suppliers
Tunisia and CEECs (Romania, Poland, Hungary etc.), from inside the EU were Portugal (almost 20 million
because the importers’ desired time between buying and pieces in 2001), Germany, Belgium, Italy and Austria.
selling has to be as short as possible. This shorter lead- 45 percent of imports from developing countries came
time is the result of making design and purchase from China, followed by India (15%), Turkey (8%),
decisions as late as possible to avoid mark down prices. Morocco, Bangladesh, Thailand, Tunisia, Sri Lanka and
This partly explains the increasing imports from the Egypt. Imports from all countries mentioned increased
countries mentioned, besides aspects like historical in the period 1999-2001, excepted China, Hong Kong
connections between specific EU countries and the and Italy. Imports from Bangladesh showed by far the
countries mentioned. biggest growth.
Average import prices in 2001 of cotton-made briefs
5.2 Imports by product group were € 1.32. Average prices for some important
supplying countries were: Bangladesh € 0.62, India
In 2001, 80 percent of total EU imports (in value) was € 0.70, China € 0.99, Turkey € 1.10, Portugal € 1.35
knitted bodywear and in terms of volume even 91 percent. and Germany € 2.31.
In the period 1999-2001 imports increased 10 percent in Almost 91 percent of men’s knitted nightwear imports
volume and 18 percent in value, which indicates that was cotton-made. India and China were the leading
average import prices rose by 7 percent. This was caused suppliers of this product group, followed by Turkey,
mainly by a 15 percent increase in the volume of imports Pakistan, Belgium, Germany, Tunisia, Bangladesh and
of bras at prices up-rated by 23 percent and, to a lesser Bulgaria. India and China together covered 42 percent
extent, increased imports of T-shirts (+21% in volume) of total EU imports. 73 percent of the in total 55
against 4.5 percent higher prices. million imported pieces came from developing
countries. Average import prices of men’s cotton
Imports of knitted briefs and underpants for men nightwear from developing countries varied from € 3.42
were for 94 percent cotton-made. Of the total imported (Pakistan) to € 4.81 (China).

Table 5.9 EU imports of bodywear in volume and value, 1999-2001

1999 2000 2001

Volume Value Volume Value Volume Value
mln units € mln mln units € mln mln units € mln
Knitted:
- under- and nightwear 1,821 3,152 2,050 3,638 2,116 3,599
- swimwear 105 537 133 655 134 666
- T-shirts 1,828 5,674 2,022 6,911 2,205 7,153
- hosiery 2,873 2,181 2,961 2,276 2,860 2,231
Woven:
- under- and nightwear 138 922 251 1,028 210 943
- swimwear 63 113 47 150 45 162
- foundations 490 1,809 489 2,191 510 2,204
Total imports 7,318 14,388 7,953 16,849 8,080 16,958
of which from:
EU countries 2,706 6,235 2,707 6,742 2,756 6,500
Developing countries 3,474 6,100 3,942 7,735 3,978 8,149
Other countries 1,138 2,053 1,304 2,372 1,346 2,309

Source: Eurostat 2002

45
Imports of knitted briefs and underpants for women China, followed by Malaysia (15%), Vietnam (13%)
were for 66 percent cotton-made and 33 percent of and Turkey (6%).
man-made fibres in 2001, while these percentages were
respectively 73 and 26 in 1999, because of an EU imports of knitted swimwear were mainly made of
increasing popularity of man-made fibres. synthetic fibres: the percentage stabilised at 96 percent
Imports of knitted briefs and panties for women and of the total between 1999 and 2001. Average import
girls increased by 13 percent in 2000 and by 3 percent prices of synthetic swimwear for men fell from € 2.97
in 2001 to 1,175 million pieces. Imports of briefs and in 1999 to 2.61 in 2001. Import prices of synthetic
panties made of cotton grew from 736 million pieces in swimwear for women fell from € 6.24 in 1999 to
1999 to 789 million in 2000 and fell to 776 million in € 6.00 in 2001. 60 percent of imports of knitted
2001. The most important supplier of cotton briefs swimwear came from developing countries: 52 percent
remained China (23% in terms of volume), followed by from Asian countries, mainly China (91% of Asian
Turkey, Hong Kong, Austria, Hungary, India, Tunisia, imports) and Thailand (6% of Asian imports) and
Portugal, Romania and Sri Lanka. Average import 9 percent from the Mediterranean, mainly Tunisia.
prices of cotton briefs for women varied from € 0.61 Imports from the area mentioned remained stable
(Hong Kong) to € 0.66 (Turkey), to € 0.69 (China), to except for growing exports from the Mediterranean.
€ 0.91 (Portugal), to € 1.21 (Hungary) and to € 2.17 25 percent of imports came from other EU countries
(Austria). The average price of total imports was € 1.03 (Italy, France, Germany and The Netherlands). Another
in 2001, the same price as in 1999. important supplier from outside the EU was Hong Kong.
The most important supplier of briefs of man-made
fibres remained China, followed by Ireland, Tunisia, EU imports of knitted T-shirts rose almost 21 percent
The Netherlands, Italy, Germany, Hong Kong, Turkey in volume and 26 percent in value in the period 1999-
and Romania, with a total average import price of € 1.81. 2001. Average import prices during this period
fluctuated from € 3.10 in 1999 to € 3.41 in 2000 and to
43 percent of imports of knitted nightwear for women € 3.24 in 2001.
consisted of nightshirts and 56 percent of pyjamas in About 70 percent of the 2.2 billion imported T-shirts
2001, which indicated a slightly increasing popularity came from outside the Union in 2001, with an
of pyjamas for women and girls. This ratio was 47/53 in increasing share of developing countries: 58 percent of
1999. Cotton is by far the most popular fabric for total EU imports and 84 percent of extra-EU imports in
women’s nightwear with 85 percent of the total imports 2001.
in 2001, however, this percentage was 87 in 1999. Inside the EU, Germany, Greece, Portugal, Belgium,
74 percent of the volume of total imports of nightshirts Sweden and The Netherlands were the leading
and pyjamas came from developing countries in 2001. exporting countries of T-shirts. Imports from these
India remained the leading exporter of nightwear to the countries varied in size: imports from Germany,
EU: 27 percent of total imports in volume. Imports Portugal and Sweden increased, imports from Greece
from other EU countries were limited: Belgium is the and The Netherlands more or less stabilized and
leading intra-EU exporter with around 7 million pieces imports from Belgium decreased. Imports from
in 2001 or 4 percent of total EU imports. developing countries increased to 1,277 million items
31 percent of cotton nightwear imports came from or 58 percent of total imports in 2001, of which
India, while other important suppliers from outside the Bangladesh (387 million units with an average price of
EU were Turkey (15%), China (14%) and Pakistan € 1.55) is by far the most important. This means that
(4%). About 22 million synthetic nightdresses and 25 percent of imports from outside the EU came from
pyjamas were imported of which 21 percent came from Bangladesh. The next leading suppliers were Turkey

Table 5.10 EU imports of T-shirts by used materials, 1999-2001

Volume (million units) Average price in €

1999 2000 2001 1999 2000 2001

Total 1,828 2,022 2,205 3.10 3.41 3.35

of which:
- cotton 1,538 1,682 1,875 2.73 3.02 3.02
- wool 6 6 5 6.26 6.90 6.80
- man-made fibres 245 309 302 5.29 5.30 5.36
- other 39 25 23 3.35 6.04 6.25

Source: Eurostat

46
(200 million units), India (127 million) and Morocco review from € 0.72 to € 0.67 per pair. The opposite
(104 million), followed by 4 EU countries: Belgium, situation applied to import prices of cotton socks and
Greece, Portugal and Belgium. Other major exporters to stockings: a rise from € 0.74 to € 0.86.
the EU were China Mauritius, Tunisia, Egypt and Three quarters of imported socks and stockings were
Pakistan, just like Romania, Hungary and Bulgaria. made of cotton, 18 percent of synthetic fibres and
An increasing share (85 percent in terms of volume) in 7 percent other materials. The shares of cotton and
2001 of imported T-shirts was made of cotton at the synthetic fibres hardly changed in the period under
cost of other materials but especially of man-made review.
fibres, as is illustrated in table 5.10. 41 percent of the volume of imports of cotton socks
and stockings came from other EU countries in 2001,
Imports of hosiery (pantyhose, tights, stockings and while this was still 44 percent in 1999. Portugal
socks) into the EU in volume terms increased 3.1 remained the leading exporter to EU countries (16% of
percent in 2000, decreased 3.4 percent in 2001 and total EU imports), while exports from Italy (EU 4th
reached the lowest level in the last four years. supplier) decreased considerably (-20%) in 2001. The
In the period 1999-2001, imports from EU countries import share of other than developing countries
(mainly Italy and Portugal) fell from 1,461million to decreased too, from 13 percent in 1999 to 10 percent in
1,347 million pairs in favour of imports from Asian 2001; imports from Israel, Poland and Romania showed
developing countries (Indonesia, China and South the biggest falls. This means that imports from
Korea) and CEECs (Czech Republic, Romania, Serbia developing countries grew from 542 million pairs in
Montenegro and Slovakia). Imports from these areas 1999 to 616 million in 2001. Almost half of the import
rose respectively from 371 to 503 million pairs and volume came from developing countries, mainly from
from 306 million to 424 million. Strongly increased Turkey (15% of total imports ), South Korea (13%),
imports of bodywear came also from developing Indonesia (7%), Pakistan (3%) and India (2%).
countries in Central and South America, like Colombia, Significantly growing imports came from Sri Lanka and
Costa Rica and Panama, however, the size of these the Philippines, while imports from Pakistan and China
imports was much less: 2.9 million pairs in 1999 and fell considerably.
6.4 million in 2001. A strongly decreasing part of imports of pantyhose
and tights of synthetic fibres less than 67 decitex came
Two product groups in the hosiery sector: cotton from other EU countries. In 1999 the intra-EU share
stockings and socks and, pantyhose and tights of was 62 percent of total imports, while in 2001 this
synthetic fibres (<67 decitex) accounted for 69 percent share was 56 percent. Imports from Italy, the leading
in terms of volume and 70 percent in terms of value of exporter to other EU countries, fell from 318 million
total EU imports. pairs in 1999 to 290 million pairs in 2001. Imports
Import prices of pantyhose fell in the period under from other major EU countries (Portugal, Germany,

Table 5.11 Imports of hosiery into the EU in mln pairs, 1999-2001

Volume (million units) Average price (€ per pair)

1999 2000 2001 1999 2000 2001

Pantyhose and tights 851 845 823 0.82 0.78 0.77

- synth. fibres (< 67 decitex) 722 725 707 0.72 0.68 0.67
- synth. fibres (> =67 decitex) 69 61 56 1.25 1.27 1.16
- other textile materials 60 59 60 1.50 1.56 1.58
Hosiery of synth. fibres (<67 decitex) 324 320 358 0.45 0.45 0.42
- Knee-length 245 241 251 0.33 0.34 0.35
- Full-length 72 70 94 0.81 0.81 0.58
- Knee/full-length of other materials 7 9 13 0.83 0.77 0.50
Stocking and socks 1,697 1,795 1,679 0.77 0.82 0.86
- wool 60 54 44 1.39 1.41 1.39
- cotton 1,299 1,366 1,261 0.74 0.79 0.86
- synthetic 284 301 305 0.88 0.87 0.80
- other materials 54 74 69 0.74 0.76 0.83

Total 2,872 2,960 2,860 0.76 0.77 0.78

Source: Eurostat

47
France, Spain and The Netherlands) decreased countries were: Tunisia € 1.54 and China € 1.77.
considerably, except Austria. Imports from developing EU imports of men’s woven nightwear was dominated
countries fell by 16 percent in the period 1999-2001, by developing countries Almost 94 percent of men’s
imports from the major supplying developing countries woven nightwear imports was cotton-made. China was
all decreased: Turkey, Slovenia, Sri Lanka and the leading supplier of this product group, followed by
Morocco, while imports from China increased. Imports India, Bangladesh, Turkey and Pakistan. China covered
from CEECs other than developing countries increased 36 percent of total EU imports. 77 percent of the in
strongly from 102 million pairs in 1999 to 169 million total 1,855 million imported pieces came from
in 2001, mainly imports from countries like: Serbia developing countries. Average import prices of cotton
Montenegro (1999: 30 million pairs and 2001: 47 mln), nightwear for men was € 5.83 and varied from € 2.70
Czech Republic (respectively 21 and 43 mln), Slovakia (China) to € 4.79 (India) and to € 6.49 (Turkey).
( resp. 10 and 34 mln), Romania (resp. 31 and 29) and EU imports of women’s woven nightwear were also
Poland (resp. 7 and 21 million). dominated by developing countries. Compared with
Socks and stockings of synthetic fibres is the third imports of men’s nightwear the role of cotton was less
product category in order of import significance (in dominating: 44 percent of women’s woven nightwear
volume). Imports from EU countries increased from imports were cotton-made. Leading supplier China
139 million pairs (54% of total imports) in 1999 to 151 covered 34 percent of total EU imports and was
million (49%) in 2001. Imports from the leading followed by India, Sri Lanka, Turkey and Pakistan.
supplying country Italy increased considerably by 38 India was the leading EU supplier of cotton nightwear
percent to 84 million pairs. Imports from other EU for women, followed by China. 80 percent of the in
countries like Portugal and Germany decreased. total 54 million imported pieces came from developing
Indonesia ranked 3rd after Italy and Portugal, followed countries. Average import prices of cotton nightwear for
by Turkey, China and Czech Republic. Imports from women was € 5.76 and was for the leading suppliers:
Indonesia decreased from 29 million pairs in 1999 to 20 € 5.48 (India) and € 5.19 (China).
million pairs in 2001, while imports from Turkey
decreased 14 percent to 20 million pairs in 2001. 57 percent of imports (in terms of volume) of woven
Imports from China grew from 8 to 18 million in 2001 swimwear came from developing countries: China
and imports from Czech Republic from 7 to 15 million. (33% of total EU imports) and Tunisia (13%). 34
The fourth most important product group in EU imports percent of imports came from other EU countries:
is knee-length hosiery of synthetic fibres of less than Germany (12% of total imports) and Italy (5%).
67 decitex. The key suppliers in order of importance (in Another important supplier from outside the EU was
volume) in 2001 were Italy, Romania, Serbia Romania (4%).
Montenegro, Czech Republic, Portugal, Austria, and
Slovakia. Imports from these countries increased with Bras are the most important item in the product group
the exception of Portugal. Import prices increased in the of foundation wear. Total imports of bras increased by
period 1999-2001, from € 0.33 in 1999 to 0.35 in 2001. 15 percent in the period 1999-2001 to 407 million
Average prices varied between € 0.09 (Serbia pieces in 2001. 51 percent of imports of bras came from
Montenegro) to € 0.11 (Czech Republic), to € 0.41 developing countries, like China (14%), Indonesia
(Italy) and to € 0.59 (Romania) in 2001. (8%), Tunisia (6%), Thailand (4%), Morocco (4%) and
Turkey (3%). Imports from some of these countries
Imports of woven under- and nightwear are very limited fluctuated in the period under review: a strong growth
compared with knitted items and hosiery. Imports of in 2000 and a fall in 2001 (China, Tunisia) or imports
woven briefs and underpants for men were for 86 grew during the whole period (Indonesia, Thailand,
percent cotton-made. Of the total imported briefs (56 Morocco and Turkey). Hong Kong ranked 3rd after
mln) in 2001, 77 percent came from developing China and Indonesia, Bulgaria (6th) and Romania (8th).
countries. In 1999, this percentage was 71 percent. The most important EU supplier of bras was Austria
During the period 1999-2001, the leading supplier to (5th) at distance followed by The Netherlands (10th),
the EU market was China. Imports from China France, Germany and Italy. The average price per bra of
increased from 6.8 million pieces in 1999 to 10.8 total imports was € 4.32 in 2000 and € 4.18 in 2001,
million in 2001. Tunisia became the second supplier in while average import prices from developing countries
2001 with 8.4 million pieces (+18%) and passed India were respectively € 3.64 and € 3.60. The average
(5.8 mln). Sri Lanka, Turkey, UK, Germany and import prices of bras varied from € 2.73 (Indonesia) to
Bangladesh followed India. Imports from all countries € 3.35 (Hong Kong), to € 3.80 (China), to € 4.60
mentioned increased in the period 1999-2001, except (Tunisia) and to € 6.78 (Austria) in 2001.
India and Germany. Imports from China and (Panty-) girdles came for 50 percent from China,
Bangladesh showed by far the biggest growth. followed by The Netherlands (7%), Germany (5%),
Average import prices in 2001 of cotton-made briefs Indonesia (4%) and The Philippines (3%). Corselettes
were € 2.14. Average prices for the leading supplying came for 38 percent from China, followed by Hungary

48
 Table 5.12 EU imports of foundation wear in mln units, 1999-2001

Volume (million units) Average price (€ per pair)

1999 2000 2001 1999 2000 2001

Bras 353 379 407 3.41 4.32 4.18

Sets of bra with brief 95 67 62 3.54 3.86 3.55
Girdles and panty girdles 33 34 32 2.93 2.96 2.77
Corselettes 9 9 9 9.54 8.16 7.30

Source: Eurostat

(6%), Poland (5%) and Austria (5%). In the product between € 20 and 100 million and more than the
group corsets etc. the dominance of China is lesser than average growth of 34 percent in the period 1999-2001
for other foundation wear. The import share of this are: Vietnam, Cambodia, Myanmar, Albania, South
product group was 17 percent. Other important Africa and Brazil. In the category developing countries
suppliers are Italy (10%), Germany (9%) and Tunisia with exports valued less than € 20 million in 2001 and
(9%). showing considerable growth in the period 1999-2001
are, among others: Bosnia-Herzegovina, Maldives,
5.3 The role of developing countries People Dem. Lao, Honduras, Cambodia, Moldova,
Armenia, Botswana, El Salvador and Guatemala.
Turkey and China dominate the supply of bodywear It has to be noted that the growth in the period 1999-
from developing countries (in tables below indicated as 2001 of 34 percent can be divided into an increase of
DC). In 2001, they together accounted for 44 percent of 27 percent in 2000 and 5 percent in 2001, as mentioned
supplies to the EU from developing countries. In the in table 5.1 of this chapter.
past few years, Bangladesh and India have become
important suppliers. Other major developing countries The growth in imports from developing countries in the
with remarkable growth in exports to the EU are Sri period 1999-2001 can be ascribed to the following
Lanka, Indonesia, Morocco and Thailand. Examples of categories:
countries, exporting bodywear to the EU valued

Table 5.13 Bodywear supplies of developing countries to the EU in € million, 1995-2001

1995 1997 1999 2001 % change % change

2001/1999 2001/2000

Total from DCs 3,788 4,837 6,099 8,149 + 34% + 5%

Turkey 821 1,097 1,468 1,937 + 32% + 8%

China 791 1,070 1,381 1,673 + 21% + 0%
Bangladesh 202 296 418 670 + 60% + 4%
India 254 326 416 599 + 44% + 15%
Tunisia 275 321 397 517 + 30% + 7%
Morocco 171 223 310 469 + 51% + 22%
Indonesia 142 188 193 323 + 67%
Mauritius 120 150 199 233 + 17% + 3%
Sri Lanka 79 96 126 221 + 75% + 23%
Thailand 95 93 136 204 +50% + 11%
South Korea 100 121 144 166 + 15% - 6%
Egypt 60 77 113 137 + 21% - 14%
Pakistan 108 114 126 130 + 3% - 5%
Macao 75 105 88 112 + 27% - 20%
Other DCs 495 560 584 758 + 30% + 6%

Source: Eurostat 2002

49
• Asian low price suppliers (+36%), like China, substantial exports (less than € 1 million) to the EU.
Bangladesh, India, Indonesia, Sri Lanka, Thailand, • Central & South American countries (+59%, but
Vietnam, Cambodia and Myanmar increased their imports were limited) like Brazil, Peru, Honduras,
exports to the EU. These countries operate mainly in Colombia and Mexico.
price sensitive segments. China continued its leading • Other developing countries (+117%, but very limited
position in shipments to the EU, in all categories of imports), include CEECs like Moldova and Armenia.
bodywear except T-shirts and hosiery, but imports
from the other countries mentioned increased to a The growth in imports from developing countries in the
much higher degree. period 2000-2001 was limited to 5 percent, however
• Mediterranean countries (+32%), mainly Turkey, this was much more favourable than developments in
Morocco, Albania, Bosnia-Herzegovina and to a imports from other countries outside the EU (-2.7%)
lesser degree Tunisia and Egypt. Imports under the and intra-EU trade (-3.6%). Reasons for the
OPT regime were limited to the countries Morocco, developments were the weak consumer market for
Tunisia and Albania; these imports decreased in bodywear, increasing competition on retail level and the
favour of direct imports. deflationary spiral of prices.
• ACP countries (+ 15%), the leading country Mediterranean countries (Morocco, Turkey, Tunisia)
remained Mauritius, showing a rising share in performed better than the leading Asian suppliers
exports to the EU. This share was 75 percent of total (China, Bangladesh).
ACP countries in 2001. France and the UK were the
leading destinations, at distance followed by Italy Import statistics for total woven and knitted bodywear
and Germany. Madagascar ranked second by 11 supplies by developing countries to the EU can be
percent (mainly exporting to France), followed by found in Appendix 2. The role of developing countries
South Africa (8%), Botswana (1%), Dominican in EU imports for individual product groups is given in
Republic (1%), Tanzania (1% in 2001 and Zimbabwe table 5.14 below.
and Mozambique. Other ACP countries had no

Table 5.14 EU imports from developing countries (DC) by product group, 2001

Knitted under- T-shirts Knitted Hosiery Woven under- Woven Foundation

and nightwear swimwear and nightwear swimwear wear

DC € 1,855 mln DC € 3,627 mln DC € 295 mln DC € 677 mln DC € 635 mln DC € 84 mln DC € 976 mln
of which from:
China (33%) Turkey (31%) China (68%) Turkey (48%) China (29%) China (49%) China (30%)
Turkey (17%) Bangladesh (17%) Tunisia (12%) Sth Korea (16%) Turkey (19%) Tunisia (25%) Tunisia (16%)
India (13%) China (9%) Thailand (5%) Indonesia (8%) India (11%) Croatia (6%) Indonesia (11%)
Morocco (7%) India (7%) Slovenia (3%) China (3%) Tunisia (8%) Morocco (6%) Morocco (9%)
Tunisia (6%) Morocco (7%) Morocco (2%) Sri Lanka (3%) Sri Lanka (7%) Turkey (3%) Thailand (6%)
Sri Lanka (4%) Mauritius (6%) Turkey (2%) Slovenia (3%) Pakistan (6%) India ( 1%) Turkey (5%)
Egypt (3%) Tunisia (4%) Sth Africa (1%) India (2%) Morocco (4%) Sri Lanka (1%) Macao (3%)
Indonesia (3%) Indonesia (3%) Mexico (1%) Pakistan (2%) Macao (3%) Indonesia (1%) Malaysia (2%)
Thailand (2%) Egypt (2%) Croatia (1%) Philippines (2%) Bangladesh (2%) Thailand (1%) Philippines (2%)

Source: derived from Eurostat

50
6 EXPORTS OF BODYWEAR

EU exports of bodywear amounted to € 9.9 billion in 2000 and fell 3.5 percent in 2001. Other destinations
2001, of which 72 percent went to intra-EU trade. The were Tunisia, Romania, Hungary, Norway, Poland,
most important destination outside the EU remained Japan and Bulgaria. Exports to all of them increased in
Switzerland with 13 percent of total extra-EU exports, 2000, except Poland. Exports to all mentioned
followed by Russia (9 %) and USA (8%). Exports to destinations increased again in 2001, except
Russia more than doubled in the period 1999-2001, Switzerland and Norway.
while exports to USA increased almost 35 percent in 23 percent of total EU exports was accounted for by

Figure 6.1 EU exports of bodywear by EU member states in value, 1999-2001

Luxemburg
2001
Finland 2000
Ireland 1999
Sweden
Denmark
Spain
Greece
Netherlands
Austria
UK
Belgium
Portugal
France
Germany
Italy

0 500 1000 1500 2000 2500 € millions

Source: derived from Eurostat 2002

Table 6.1 EU exports of bodywear in volume and value, 1999-2001

1999 2000 2001

Volume Value Volume Value Volume Value
mln units € mln mln units € mln mln units € mln
Knitted:
- under- and nightwear 784 1,692 805 1,706 817 1,700
- swimwear 59 365 56 411 58 441
- T-shirts 761 3,306 842 3,850 814 3,897
- hosiery 2,187 1,823 2,408 1,903 2,316 1,914
Woven:
- under- and nightwear 44 393 49 451 45 386
- swimwear 14 76 18 100 19 103
- foundations 214 1,290 231 1,411 292 1,475
Total exports 4,063 8,945 4,409 9,832 4,361 9,916

Source: Eurostat 2002

51
Italy, 13 percent each by Germany and France, EU countries. Leading destination countries in the EU
9 percent each by Portugal and Belgium. An overview are Austria (17 percent of total German exports) and
of exports by all EU countries is given in figure 6.1 and The Netherlands (15 percent). German manufacturers’
appendix 2.4. brands are market leaders in both countries. Other key
destinations in the EU are France (9%), Belgium (6%)
The most important EU export product groups in 2001 and UK (4%). The leading country of destination
were T-shirts (39 percent of total exports in terms of outside the EU is Switzerland (9%) followed by
value), hosiery (19 percent), knitted under- and Hungary (5%), the Czech Republic (3%), Poland and
nightwear (17 percent) and foundations (15 percent). Russia (each country 2%). The leading destination
outside Europe is the USA: exports to the USA almost
Italy doubled in the period under review to € 16.5 million in
Exports of bodywear have been rising consistently: 2001. Exports to the main EU destinations (Austria,
13 percent in value in 2000 and 7 percent in 2001 to The Netherlands, France, Belgium, UK and Italy)
€ 2.2 billion. More than 43 percent of these exports increased in 2000 and fell to a much smaller degree in
concerned hosiery in 2001 (47 percent in 1999), of 2001, of which exports to UK showed the biggest fall.
which 64 percent was pantyhose and tights.
The principal destinations for Italian exports of France
bodywear are other EU countries, which, together took French exports of bodywear increased in value by
56 percent of the total in value in 2001. Note that this 8 percent in the period 1999-2001 to € 1,263 million.
percentage was only 66 in 1999.Germany took 68 percent of bodywear exports (in value) went to other
14 percent of exports but exports to this country fell by EU countries mainly Belgium (14% of the total),
8 percent in the period 1999-2001 € 324 million in Germany (12%) and Spain (10%) in 2001. The leading
2001. The sluggish demand for clothing in Germany countries of destination outside the EU are Romania
was the main reason for lower exports to this country. (6%), Tunisia (6%), Switzerland (4%), and USA (2%).
Exports to other EU countries like France, Spain, UK Exports of bodywear to the major destinations Belgium
and The Netherlands increased, while exports to Austria and Germany fell by respectively 6 and 3 percent in the
and Belgium fell. Exports to other EU countries period 1999-2001, while exports to other EU countries,
concerned hosiery for 41 percent of total exports, like Spain, Italy and The Netherlands increased.
although the percentage was even 44 for exports to Exports to Romania (mainly hosiery), Switzerland,
countries outside the EU. About 66 percent of exports USA and Japan increased slightly, while exports to
to Russia concerned hosiery. Poland decreased.
Exports to important destinations outside the EU Exports to other EU countries included the product
showed different patterns. Russia ranked third in Italian groups T-shirts (36% of intra-EU trade) and bras (20%
export destinations (after Germany and France) with a of intra-EU trade). Exports to countries outside the EU
share of 9 percent and grew to € 197 million in 2001. included the product groups bras and other foundations
Exports to the USA increased 72 percent in 2000 and (38% of extra-EU trade), T-shirts (16%), hosiery (13%,
fell 9 percent to € 102 million in 2001. Other non-EU mainly tights) and briefs for women and girls (11%).
countries importing Italian bodywear in the period
1999-2001 were Switzerland (+8% to € 77 million), United Kingdom
Romania (+105 percent to € 72 million), Japan (+175 The UK’s exports of bodywear increased by 5 percent
percent to € 57 million), Hungary (+77% to € 52 in value in 2000 and decreased by 3 percent in 2001 to
million) and Tunisia (+98 percent to € 50 million). € 691 million caused by the expensive pound sterling.
A substantial proportion of exports consists of products, Exports of most product groups were lower in 2001
which have been made with the brand names of other than in the previous years, excepted T-shirts and bras.
EU producers and distributors. This type of trade is Ireland has traditionally been and still is the UK’s
particularly strong with Germany. leading export market. Exports to Ireland grew from
22 percent of UK total bodywear exports in 1999 to
Germany 24 percent in 2001. More than 70 percent of bodywear
German exports of bodywear increased 18 percent in exports (in value) goes to other EU countries.
2000 and fell slightly (1.6%) in 2001. 2000 showed an The most important destinations besides Ireland were
increase in exports of all major product groups. Higher Germany (13% of total exports) and France (9%), at a
than average growth was registered for exports of T- distance followed by Spain (5%) and The Netherlands
shirts and bras. The growth in T-shirts exports was (4%). Exports to Ireland and Germany grew, while
particularly dramatic at 34 percent, reaching a total exports to France and Spain showed the biggest fall.
level in 2000 of € 533 million; it fell slightly (-1.4%) in The leading destinations outside the EU were USA
2001. Exports of knitted under- and nightwear for (exports fell from € 38 million in 1999 to 27 million in
women and girls were under pressure. 2001), Hong Kong (increased from € 9 million in 1999
Two thirds of bodywear exports (in value) goes to other to 21 million in 2001), UA Emirates (slight increase to

52
€ 16 million) and Turkey (increased from
€ 6 million in 1999 to € 15 million in 2001).

The Netherlands
Total exports of bodywear from The Netherlands
showed a decrease of 4 percent in 2000, followed by a
growth of 3 percent to € 638 million in 2001. This
growth was mainly caused by increased exports of
T-shirts, while exports of bras and other foundations
showed the biggest decrease.
In terms of value, 90 percent of Netherlands bodywear
exports go to EU countries, mainly Germany (28% in
2001), Belgium (22%), France (16%) and the UK
(12%).
Lower exports to major destinations Germany and
Belgium was compensated by growing exports to
France and the UK. Exports to destinations outside the
EU were very limited: Tunisia (3%) and Switzerland
(1%) were the leading destinations.

Spain
After a strong growth of 30 percent in 2000, Spanish
exports of bodywear (in terms of value) grew by a
limited 4 percent in 2001. Exports of all items of
bodywear increased in the period under review, of
which knitted under- and nightwear for both sexes,
T-shirts and swimwear (knitted as well as woven) for
women showed the biggest increase.
In terms of value, almost 61 percent of Spanish exports
goes to EU countries. Leading destinations were
neighbour countries Portugal (19%) and France (17%)
followed by Italy (6%), Tunisia (6%), Germany (5%)
and Morocco (5%). Other destinations outside the EU
were Mexico, USA, Saudi Arabia, Israel, Poland and
Switzerland.

Re-exports
Exports by major EU countries as described above
include the so-called re-exports: imported products,
which are exported to other (mainly other EU)
countries. The volume of re-exports can be calculated
when national production statistics are available and the
destination of the 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, however, it can be
assumed that about 40 percent of Netherlands bodywear
imports is re-exported or about 85 percent of exports of
bodywear consists of re-exports. Besides The
Netherlands, re-exports by Germany are important,
while re-exports in the other major EU countries are
more limited, but growing.

53
7 TRADE STRUCTURE

7.1 EU trade channels 7.1.1 Sales intermediaries

Different sales intermediaries have their place between
Figure 7.1 shows the basic functions of the various industry in export countries and consumers in EU
kinds of exporting manufacturers and traders, agents, countries, for instance:
importing manufacturers, wholesalers and retailers. • Agents: the sales agent is an independent
Depending on its position in the market, the functions intermediary between the (foreign) manufacturer and
of a particular distribution organisation will be linked the retailer or retail organisation, receiving a
with up- or downstream organisations with the same commission from the former. The agent (or sales
kind of specialisation. It is also possible for a given representative) covers a limited geographical area.
organisation to take over (some of) the functions of the The level of the commission depends on a number of
latter, in order to improve competitiveness (vertical factors, including the turnover rate of the product
integration). For instance, manufacturers, agents and concerned, but it averages an estimated 8-12 percent
retailers may also function as importers, while of turnover. Most agents represent more than one
wholesalers may also be manufacturers (vertical manufacturer, although competition is avoided. More
integration). Each of these groups has a different and more agents are starting to sell from stock, to
approach to business and the market, with its own meet their clients’ short-term demands. Stock
specific interpretation of the marketing mix. forming is often on a consignment basis. If the agent
Converting means that the main activities necessary for builds up his own stock, he is in fact functioning as
the realisation of the product have been carried out on an importing wholesaler. The role of agent as
order by other organisations, according to the described above is often indicated as selling agent.
requirements of the principal. Another type of agency is the so-called buying agent.
The role of converter is not pinpointed specifically in The buying agent is located in the supplying country
this scheme because converting is an activity, which has and settles business on the instructions of his
been undertaken by an importing manufacturer, principals, mainly retail organisations and works on
wholesaler or retail organisation. commission basis, too.
Theoretically, importing is a function that can be done • Importing wholesalers: most bodywear wholesalers
by manufacturers, wholesalers or retailers as given in cater to the specialist shops as well as to the
figure 7.1. However, in some countries and/or branches department stores and multiple chains. Contrary to
a distinction is made between importing wholesalers the agent, the wholesaler purchases from
and importers. In that case, the importer purchases at manufacturers and holds his stocks at own risk. The
own risk, handles Customs clearance and sells mainly mark-up of wholesalers is approximately 20-30
to retail organisations, like multiples, department stores percent. The development described above - an
and buying organisations and other wholesalers, while increasing number of agents acting as
wholesalers purchase at own risk from local or EU importer/wholesaler- is also true in reverse: many
manufacturers and from importers. importers/wholesalers today act as agents. The fact

Figure 7.1 Trade and distribution channels for bodywear in the EU

Exporting manufacturers

Importing wholesalers Importing manufacturers Agents

Importing retailers

Department Clothing Mail-order Selling and/or Other stores

and variety multiples houses buying
stores organisations

Non-importing retailers

54
 that many independent retailers as well as purchasing trade publications, trade directories etc. We refer to the
combinations and multiple stores are becoming more appendices of this survey for addresses and other
cautious about pre-ordering, preferring to sell from information.
stock, is reinforcing the position of the wholesaler.
On the other side, large retail companies are 7.1.2 Retailers of bodywear
increasingly purchasing abroad, thereby passing the Retailers in general
intermediaries. In the case of importers, as Retailers constitute the final stage before products
mentioned above, the mark-up is approximately reach the consumer. In this survey, a distinction is made
40-50%. between department stores, clothing multiple stores,
• Importing retailers: the bigger retail organisations multiple stores specialised in bodyfashion, textile
(multiples with more than 20 outlets, department and supermarkets or discount stores, mail-order houses and
variety stores, buying organisations, mail-order independent retailers (clothing specialty stores,
houses) import by themselves as will be described in bodyfashion speciality stores etc.). Other categories are
chapter 7.1.2. grocery supermarkets, street markets etc..
• Importing manufacturers; the many forms of Distribution channels differ greatly across the EU
foreign policy of EU manufacturers are discussed in member states. The UK has a high concentration of
chapter 4 of this survey. Retailers are increasingly distribution, which is reflected in the relatively low
taking part in stages before them in the sector market share of independent retailers. The southern
(vertical integration) and have their own designers to member states, Portugal, Italy and Spain, however, have
give their own collections a more unique outlook. high market shares for independent retailers. These
Clothing and/or bodywear manufacturers penetrate retailers buy mainly from manufacturers and
retail business by operating through their own shops wholesalers/importers, contrary to Germany and The
or through franchising. This gives them control over Netherlands for instance, where many independent
their output and margins. Producers can also try to retailers are members of buying co-operations. The
compete through a greater emphasis on their own table below gives an overview of the relative
product development. Then they can offer exclusivity importance of different retail stores in the sales of
to the retailers, which gives them a competitive bodywear in EU member states.
advantage. The various retailing stores differ in the sales formula
they apply, i.e. their assortment and the targeted
Contacts with sales intermediaries can be made in consumer group, as well as in the way they differentiate
several ways like consulting trade representatives’ themselves from competitors. As an aid to
associations, chambers of commerce, fashion centres, understanding the market, one can discriminate between

Table 7.1 Market shares in bodywear by types of retail channels in the EU, 2001
(in % of value)

Specialists/ Indepen- Department/ Mail- Super/hyper- Others**) Total

multiples *) dents variety stores order markets

Austria 26 37 9 8 8 12 100
Belgium/Lux. 25 38 20 5 5 7 100
Denmark 24 35 16 5 16 4 100
Finland 15 41 18 4 12 10 100
France 23 23 9 10 25 10 100
Germany 30 22 25 13 6 4 100
Greece 17 56 12 0 6 9 100
Ireland 23 31 26 6 8 6 100
Italy 19 50 10 1 8 12 100
Netherlands 45 8 27 6 2 12 100
Portugal 19 50 12 2 9 8 100
Spain 12 45 16 1 13 13 100
Sweden 32 38 11 6 6 7 100
UK 27 17 30 8 8 10 100

EU (15) 26 33 18 6 8 9 100

*) including discounters **) including street markets

Source: trade estimates

55
“service retailing”, where the retailer offers the recently been started or will soon start in Germany:
consumer substantial added value (quality, service, Women’s Secret (Spain), Izka (USA), Etam Lingerie,
fashionability, choice etc.), and “low-margin retailing”, Orcanta and Darjeeling (all from France).
where the price-conscious consumer is offered low Another interesting development on the German
prices, at the expense of quality, service and so forth. clothing and bodywear market is the rising power of
Stores of the first kind are often referred to as being at retailers of which clothing belong to the periphery
the “upper end” of the market, the latter at the “lower assortment, like super- and hypermarkets, discounters,
end” of the market; intermediate-type stores may be variety stores but also the coffee shop chain Tchibo and
termed “mid-market”. the drugstore chain DM.
The intensive and growing competition on the slightly
In many European countries, the distribution of decreasing market for bodywear led to a decreasing
bodywear is dominated by a small number of retail number of independent stores.
organisations. On one side there are the specialty
multiple stores (like Hunkemöller) and on the other side Important general clothing multiples with bodywear in
more generally oriented department and variety stores their assortment are C&A (185 stores), Hennes &
(Marks & Spencer, Hema), clothing multiples (Hennes Mauritz (206) and Vögele (333) with buying
& Mauritz, Zara, Etam, C&A), textile discounters and departments in respectively Belgium/Germany, Sweden
value retailers (Zeeman, Natalan, Peacock), hypermar- and Switzerland. Other multiples are Sinn Leffers (part
kets (Hypermarchés) and supermarkets (Aldi, Lidl, of Karstadt/Quelle; 48 stores), Wöhrl (39) and Hettlage
Tesco) are active. This also means increasing (46). Ladies’ wear multiples including bodywear are
competition between branded labels, private labels and Jean Pascale (98 JP stores, 35 Camera stores and 42
even non-branded products. shops in shop); Bonita Mode (350) and Ulla Popken
Most of the major retail organisations set up their own (276). There are few men’s clothing multiples in
buying organisations in low-labour-cost countries. This Germany of which can be mentioned: Pohland (12) and
means that retailers are able to bypass domestic Nicolas Scholz (16). Sport (clothing) chains are:
wholesalers and/or manufacturers. More specified Runners Point (part of Karstadt/Quelle; 111 stores) and
information concerning distribution in the major EU Sport Voswinkel (35). Most of the sport shops are
countries is given below. organisations of independent retailers (see below under
independent specialised retailers). The number of
Germany German bodywear chains is rather limited. Major
Developments in retail, like cross-border activities or bodywear chains in Germany come from abroad, like
internationalisation and concentrations are valid in Hunkemöller (260 stores of which 53 in Germany) from
Germany for outerwear as well as for bodywear. Over The Netherlands; Lindex (400 stores in four countries,
80 foreign owned clothing retailers are active on the of which 33 in Germany); more expensive bodywear is
German market, of which the most important in sold by Palmer from Austria through 431 stores (partly
outerwear as well as in bodywear are: Hennes & franchise) of which 55 stores and 16 shop in shops in
Mauritz from Sweden, Charles Vögele from Germany.
Switzerland and Oviesse (owned by the Italian Coin Around 40 percent of the independent retailers are
Group). Bodywear specialised chains are Hunkemöller members of a buying corporation. In no other European
from The Netherlands, Palmers from Austria and, country, with the exception of The Netherlands, do the
Lindex from Sweden. The following chains have buying organisations play such a significant role for

Table 7.2 Market shares for retail distribution of bodywear in Germany, 1999-2001

(in % of value) 1999 2000 2001

Specialised stores:
- clothing and bodywear multiples 22 22 24
- independents 25 24 22
Non-specialised stores:
Department stores 15 15 14
Variety stores and discounters 18 18 17
Mail-order companies 12 12 13
Hyper- and supermarkets 5 5 6
Other 3 4 4
Total 100 100 100

Source: Textil Wirtschaft and Gfk

56
specialised independent retailers as they do in Germany. many others belong to the Karstadt Quelle Group.
The most important buying corporations are KMT with Other (independent) mail-order companies are Bader
350 members; Ardek is specialized in babies and and Walbusch. Most of the mail-order companies
children’s products including clothing and has 500 mentioned have stores; on the other side, several
members with 600 stores, Katag-abz operates through clothing multiples started mailing activities and have
800 stores. Other buying groups are Unitex with 500 their own catalogue.
members and Sütegro (women’s wear) with 134 Clothing articles, in particular underwear, nightwear,
members. Important channels for sportswear (including socks, panties etc. can be found increasingly in super-
swimwear and sports underwear) are the sport speciality and hypermarkets, like: Metro (chains: Real, Extra
shops. Most of the sport shops are organisations of and Kaufhof), Aldi, Edeka/AVA, Tengelmann (Plus-
independent retailers, many of them being organised in Markt), Schwarz (including Lidl) and Rewe. In the
(international) co-operations like Intersport (1,400 hosiery sector, grocery shops are selling own-label
stores) and Sport 2000 (1,100 stores). brands as well as leading producers’ brands. The
Leading department stores are Karstadt and Kaufhof. category ‘Other’, includes among others, Tchibo,
Karstadt (118 stores, including Wertheim, KaDeWe operating with about 850 coffee shops, including retail
and Alsterhaus) is part of Karstadt/Quelle; Kaufhof activities on clothing and textiles.
(133 stores) is part of Metro. Another department
store is Breuninger with 13 stores. The leading variety United Kingdom
store is Woolworth (360 stores in Germany and The structure of clothing retailing in the UK is one of
Austria). the most concentrated in the world. The largest
Discounters are NKD (765 stores in Germany and proportion of expenditure on bodywear is spent in
Austria), Ernsting’s Family (920), KiK (part of clothing chains including value and discount retailers.
Tengelmann; 908 stores in Germany and Austria), During 2000, the discount and value clothing retailers
Adler (102) and Zeeman (165). Discounters sells grew by almost 15 percent at the expense of mid-
family clothing, sportswear, underwear, nightwear, market retailers (such as the variety stores, clothing
hosiery but also household textiles and beds; they buy multiples) and profited from the withdrawal of C&A,
in large quantities and avoid middlemen, in order to formerly one of the top clothing retailers in the UK.
get low-priced goods in the shops quickly. The market share of variety stores (including market
Mail-order companies occupy a significant position in leader Marks and Spencer) increased slightly in 2001.
the German retail market. Leading companies are Independent specialist stores have a share of only 13%,
Quelle, Neckermann (both from Karstadt/Quelle), Otto which is rather low compared with other major EU
Versand and Klingel. The Otto Group is the world’s countries.
biggest mail-order house, due to its many foreign Supermarkets are estimated to account for over
activities. Otto includes for instance Schwab-Gruppe 40 percent of sales in the hosiery sector, pharmacies
(Schwab, Witt) and Heine-Gruppe (Heine, Sport claim around 10 percent, while department stores
Scheck, Alba Moda and Eddie Bauer). Besides accounted for around 8 percent.
Neckermann and Quelle, mail-order companies like Just like in other European countries, the mid-market
Atelier Goldner Schnitt, Peter Hahn, Madeleine and global fashion brands of the foreign companies H&M,

Table 7.3 Market shares for retail distribution of bodywear in UK, 1999-2001

(in % of value) 1999 2000 2001

Specialised stores:
Clothing multiple stores *) 24 26 27
Independent retailers 14 14 13
Sport shops 4 3 4
Non-specialised stores
Department stores 11 11 10
Variety stores 21 19 20
Mail-order companies 8 8 8
Hyper- and supermarkets 8 8 8
Street markets 5 5 5
Other 5 6 5
Total 100 100 100

*) including discounters or value-retailers

Source: ONS

57
Zara and Mango are strengthening their hold on the UK bodywear besides outerwear, food and homeware. A
market. new strategy led to closure of almost all stores on the
European Continent in 2001. Other variety chains
The number of independent clothing retailers can be selling bodywear are BhS (160), active in adults wear
estimated at 10,000 in the UK, operating with 14,000 and even more important in children’s wear, Littlewoods
outlets. More than half of the independent sport shops (115) and Woolworth (almost 800).
in the UK has joined a buying group. The three major Department store Debenham (90) is the UK’s third
buying groups are: Intersport, the largest with 288 largest clothing retailer and the leading department
stores, Southern Traders Alliance Group (STAG) with store in selling clothing. Other department stores,
200 stores and Sport UK with 129 stores. selling bodywear are: House of Fraser (50), Allders (37)
The Arcadia Group operates with just over 2,000 and the John LewisPartnerhip (25).
clothing multiple stores and include chains for Some companies active in the mail-order sector
women’s wear like Top Shop (270 stores), Dorothy (catalogue-based but also direct-mail operations) are
Perkins (540), Wallis (250), Miss Selfridge (120) and Great Universal Stores (GUS) selling to several target
Evans (350 stores), chains for men’s wear like Top Man groups through several large catalogues and Littlewoods
(160) and Burton Menswear (370) and home service Home Shopping. The German mail-order giant Otto
activities. The role of bodywear has become much more Versand owns Grattan and Freemans, while French PRP
important, however, bodywear assortment in both men’s owns Empire Stores. Many retail organisations (Next,
clothing chains is rather limited. General clothing M & S, Debenhams, Selfridges and others) operate also
multiples selling bodywear are Next (379 stores) and via mail-order and home-shopping.
Hennes & Mauritz (68 stores in the UK) . Women’s The two major retailers of clothing in the supermarket
clothing stores, selling bodywear too, are (in ranking of sector, ASDA (part of American Wal-Mart) and Tesco
sales): Mothercare (including children’s and maternity sell outerwear, underwear and hosiery in their outlets
wear via 257 stores, Mothercare Direct with mail-order and have gained an 10 percent share of sales by volume
and internet activities), Etam (215), New Look (514 of but only 4 percent by value.
which 483 in the UK), Alexon (783) and Monsoon The category ‘Other’ includes among others the
(257). pharmacy chain Boots the Chemist selling own-brand
In the UK clothing retail sector a distiction is made hosiery.
between discount retailers, which sell branded clothing
at below recommended prices and value retailers, Italy
which sell own label clothes at low prices. Examples of Traditional specialist retail outlets remain the principal
value retailers are: Matalan (161 stores selling general channel for the distribution of bodywear. Major
clothing and homewares); Peacock (300 clothing, developments in the Italian bodywear retail trade in the
footwear and household goods stores); Primark (110 period under review were growth in sales by super- and
stores in clothing, footwear and household textiles and hypermarkets and by clothing chains, to the detriment
part of Associated British Foods); Ethel Austin (200 of independent retailers. It is expected that this
general clothing and household goods stores); Mackays development will be continued in the coming years.
(280 women and children’s wear stores); and QS (186 Wholesalers play an important role in distribution,
general clothing stores). Examples of discount chains accounting for 50-60% of the purchases of retailers.
are: TK Maxx (123 stores in fashion and giftware and Wholesalers are generally used by manufacturers of
owned by TJX Companies,USA); The Officers Club cheaper, mass market and standardised products.
(180 men’s wear stores); and Brown & Jackson Manufacturers of classic and exclusive, higher-priced
(operating with 600 Poundstretcher, What Everyone clothing sell mainly directly to retailers or through own
Wants and Your More Store formula). The market share stores - either fully owned or franchised. The important
of these retailers, in particular value retailers, increased role of independent specialist stores and specific
strongly since 2000 and included outerwear as well as business practices, like terms of payment, make the
bodywear. intermediation of an agent or wholesaler necessary for
Examples of specialty stores are: Knickerbox (55 effective distribution of bodywear in the Italian market.
stores), a lingerie retail chain with pantyhose also in the
assortment and Sock Shop (62 stores), a hosiery chain Specialists account for two thirds of bodywear sales,
with lingerie and swimwear also in the assortment. specialised independent retailers still dominate the
Important (sports) multiples are, besides the market Italian bodywear retail sector The decreasing but still
leader JJB Sports, Blacks Leisure (Blacks Outdoor, important market share of independent retailers was
Active Ventur and First Sport), JD Sports and Allsports. realised by around 36,000 companies.
All these multiples are general sports chains, except the Calzedonia is a manufacturer of bodywear and also
two first mentioned Blacks fascia. trader through two chains, selling hosiery, underwear
The most important variety chain is Marks & Spencer and swimwear for men, women and children:
(M&S) with some 300 stores nationwide and selling Calzedonia (807 stores, of which 583 in Italy) and

58
Intimissimi (496, of which 377 in Italy). There are more The Italian mail-order market remains relatively
than 200 stores aboad, mainly Spain and Greece . undeveloped, primarily due to problems with
General clothing multiples with own production distribution and the generally poor postal delivery
facilities and underwear in their assortment are service. The leading mail-order company with sales in
Benetton (5,000 stores world wide and also operating clothing besides general goods is Postalmarket.
with brands like Sisley, Playlife and Killerloop) and Hypermarkets grew in number, as did the clothing
Stefanel (1,200 stores world wide). One of the largest sales by these channels. The most important
distributors not owned by a clothing producer is Gruppo supermarket chain is Rinascente. Hypermarket chains
Coin which owns Oviesse 273 stores (of which 201 in are Citta Mercato, Rinascente and Joyland. Increased
Italy) in the mid and lower price segments, and the sales in bodywear are expected via super- and
children’s wear chains Bimbus and Kids Planet with hypermarkets in the coming years, of which much can
respectively 61 and 18 stores. be ascribed to foreign supermarkt chains like Auchan,
The leading babies’ and maternity wear chain is Carrefour and Metro.
Prénatal (175), owned by the Chicco Artsana Group.
Sports chains are Giacomelli Sport (100), Cisalfa (45) France
and, from France, Déclathon (23). One of the major developments in the French bodywear
The number of foreign companies operating on the retail trade in the period under review was the
Italian market is limited, compared with the other major continuing growth in the sales of multiples, to the
EU countries. detriment of independent retailers. Hyper- and
The major department stores in Italy are Coin (77, supermarkets constitute the leading distribution channel
owned by Grupo Coin) and La Rinascenta (16, owned accounting for a quarter of sales in value in 2001. The
by Gruppo Rinascenta). Gruppo Rinascenta covers market share of specialists versus non-specialists
variety store Upim (370). remained rather stable.

Table 7.4 Market shares for retail distribution of bodywear in Italy, 1999-2001

(in % of value) 1999 2000 2001

Specialised stores:
Clothing multiple stores 16 17 19
Independent retailers 49 49 47
Non-specialised stores
Department and variety stores 11 10 10
Mail-order companies 2 2 3
Hyper- and supermarkets 9 9 10
Street markets 7 7 6
Other channels 6 6 5
Total 100 100 100

Sources: ISTAT and trade estimates

Table 7.5 Market shares for retail distribution of bodywear in France, 1999-2001

(in % of value) 1999 2000 2001

Specialists:
- Independent retailers 26 23 23
- Clothing and specialised multiples 20 22 23
Non-specialists
- Department/variety stores 9 9 9
- Hyper- and supermarkets 25 26 25
- Mail-order companies 9 10 10
- Street markets 5 5 5
- Other channels 6 5 5
Total 100 100 100

Source: Journal de Textile

59
Important bodywear specialised multiples in France Redoute). Nearly all French branches of Marks &
are Etam Lingerie and 1.2.3. Lingerie both part of the Spencer stores were closed in 2001.
Etam Group. Etam Lingerie operates with 228 stores in The major variety store is Monoprix (284 stores)
the middle to lower price range while the 1.2.3. owned by Galerie Lafayette. Major hyper- and
Lingerie format is focussed on older women aged 35-45 supermarket chains include Leclerc (370
in its 195 stores. Other specialists chains are Princesse hypermarkets, 130 supermarkets while family clothing
Tam Tam (61 stores) and Delta Lingerie. Delta Lingerie is sold by 35 stand-alone Leclerc Vêtements stores),
was launched by the lingerie manufacturer Chantelle Auchan (309 hypermarkets and 601 supermarkets),
and has 53 stores. Orcanta Lingerie (owned by Pinault- Carrefour (around 4,000 stores in France) and
Printemps-Redoute, 53 stores) and Canelle (owned by Intermarché almost 4,000 stores of which 3,600 in
Groupe Phildar, 51 stores), Sarny Lingerie and Baiser France including the hyper- and supermarket formula
Sauvage. Some foreign companies have entered the Intermarché.
French market recently, like Oysho and Women’s Secret La Redoute and 3 Suisses are well-known mail-order
from Spain, Hunkemöller from The Netherlands and companies, both of which operate internationally. La
Everywear from Belgium. Redoute owned by Pinault Printemps Redoute (PPR) is
General clothing multiples with bodywear in their market leader in clothing sales by mail-order
assortment are C&A with 54 stores, Kiabi (100, of companies and includes stores, among which Orcanta
which 93 in France and owned by Auchan Mulliez) and (see above).
Hennes & Mauritz (42). Discount formula are La Halle
aux Vêtements (283, owned by Vivarte) and Vêtimarché Spain
(117, owned by ITM). The size and structure of the Spanish market make it
Men’s chain stores including bodywear are Brice (101) necessary to apply a regional market approach.
and Armand Thiery (170). The major sport chain is Barcelona is the base for the Catalan market and
Décathlon (319, of which 213 in France). Other Madrid is the base for the market of Central and
important sport formula are voluntary buying groups Southern Spain. The important role of independent
and are mentioned below under independent retailers. specialist stores and specific business practises, like
In France there are about 25,000 stores of independent terms of payment, makes the intermediation of an agent
clothing retailers which have less than 5 active stores. or wholesaler necessary for effective distribution of
The number of independent retailers, specialised in bodywear in the Spanish market. Wholesalers play an
bodywear is not published. With the exception of the important role in imports and distribution, accounting
sports goods branch, the number of important buying for approx. 40-50 percent of the purchases of
organisations is limited. There are many franchise independent retailers. Manufacturers of branded
organisations in particular in the women’s and children’s garments sell directly to retailers or indirectly through
wear market. Important buying organisations in sports agents.
goods are Intersport (462 stores in France), Groupe Go Historically, the Spanish clothing market was
with the formula Courir (171), Go Sport (125) and dominated by small family-owned businesses which
Moviesport (9) and Sport 2000 (405). controlled two thirds of all clothing sales. However, the
The major department store chain in France is Galerie situation is changing with the development of large
Lafayette (80 stores), also operating under the name shopping centres, modern hypermarkets and the success
Nouvelles Galeries. Another important department store and rapid expansions of specialist multiple chains.
is Printemps (30) owned by PPR (Pinault-Printemps- Vertically integrated groups controlling both production

Table 7.6 Market shares for retail distribution of bodywear in Spain, 1999-2001

(in % of value) 1999 2000 2001

Specialised stores:
- Independent retailers 47 45 45
- Clothing and specialised multiples 11 12 12
Non-specialists
- Department/variety stores 16 17 16
- Hyper- and supermarkets 12 12 13
- Mail-order companies 0 1 1
- Street markets 9 8 8
- Other channels 5 5 5
Total 100 100 100

Source: Trade estimates

60
and distribution have played a key part in this sales by these channels. Important supermarket chains
development. are Superco/Maxor/Maxim, El Arbol, Caprabo,
Mercadona Gadisa, Supersol etc. Hypermarket chains
Specialised retailers dominate the Spanish bodywear are Continente, Pryca, Eroski/Maxi, Alcampo and
retail sector and account for 57 percent of total sales, Hipercor. Increased sales in clothing including
of which independent retailers accounted for 45 percent bodywear are expected via super- and hypermarkets in
in 2001. The decreasing but still important market share the coming years, of which much can be ascribed to the
of independent retailers was realised by around 44,000 influence of foreign supermarket chains like Auchan,
companies. The number of independent retailers Carrefour and Metro.
specialised in bodywear is not available.
There are four main vertically integrated distribution The Netherlands
groups in Spain including clothing multiples: Inditex, Deliveries by wholesalers/importers and foreign
Cortefiel, Punto Group and Induyco. Inditex operates manufacturers via agents are increasing. The number of
with the formula Zara, Pull & Bear, Massimi Dutti and sales points where bodywear is sold in The Netherlands
Bershka/Stradivarius. The major chain Zara covers 500 was estimated to be 15,500 in 2002. This number
stores of which 217 in Spain and includes bodywear. A includes all stores where lingerie, underwear, hosiery,
lingerie chain named Oysho has been planned for 25 nightwear and beachwear for men, women and children
stores across Europe. Cortefiel operates under its own are sold. The number of shops that sell exclusively
name with 166 stores, with the formula Springfield foundation and underwear is considerably lower and can
(222) and the lingerie chain Women’s Secret (114 be estimated at about 800, of which 58 percent is small
stores, of which 90 in Spain), the Punto Group with enterprises.
Mango (192) and Induyco besides department store El
Corte Ingles (45) with the franchise chains Amitié, The main operations of independent retailers are in
Cedosce, Sintesis and Tintoretto. the middle and upper sections of the market. Between
These Spanish organisations compete with multiple 50-60 percent of Netherlands’ independent retailers
chains including franchise formula from abroad like have become members of central buying organisations
C&A (26), Prenatal (110), Hennes and Mauritz (19) and franchise organisations. The leading buying
and many others. organisations are Euretco and Intres. Euretco Fashion is
The sector department stores in Spain is dominated by the owner of several clothing multiples, among which
El Corte Ingles (45), especially after its takeover of formula such as for bodywear: Lin-Chérie (35 stores)
Galeria Preciados. In 2003, the variety stores of Marks and for sportswear: Sportpoint (130) and Sport 2000
& Spencer (UK) were sold to El Corte Ingles. (114). Intres has the following formula for bodywear:
Mail-order activities are relatively weak in Spain. The Livera (135 stores) and Lindessa (27); for hosiery:
major German and French players are present in Spain Jambelle (25) and for sportswear: Intersport (117) and
but their progress has been slow. Spanish leading mail- Gos Sport (127).
order companies with sales in clothing besides general Other (smaller) buying organisations have no or limited
goods are Venca (part of Otto Versand), Distribucion bodywear in their assortment.
Quelle and La Redoute Catalogo. Sports specialty chains with beachwear, swimwear and
Hypermarkets grew in number, as did the clothing sports underwear in their assortment are Perry Sport (40

Table 7.7 Market shares for retail distribution of bodywear in The Netherlands, 1999-2001

(in % of value) 1999 2000 2001

Specialists:
- Lingerie/foundation chains 27 27 26
- Independent retailers 8 8 8
- Clothing multiples 7 7 8
Non-specialists
- Department and variety stores 26 27 27
- Textile discounters 12 11 11
- Supermarkets 2 2 2
- Mail-order companies 5 6 6
- Street markets 5 5 4
- Other 8 7 8
Total 100 100 100

Source: Gfk and Retailmonitor

61
stores and part of Vendex/KBB), Coach Sport (55) and market share than most other EU countries. Mail-order
Aktie Sport (75). Le Papillon (17) is specialised in houses operate mainly in the middle ranges as regards
ballet and aerobics. price, quality and fashion. The most important
In the field of lingerie and foundations, Hunkemöller companies are Wehkamp, Otto Nederland (part of Otto
(part of Vendex International) and Livera (a formula of Versand from Germany), Neckermann Postorders,
the buying organisation Intres) are the major bodywear Quelle (both part of the German Karstadt/Quelle) and
speciality chains in The Netherlands. Both companies La Redoute (from France).
are partly franchised. Hunkemöller operates with 260 The main activities of grocery supermarkets are in the
stores, of which 121 are in The Netherlands, 60 in provisions sector. Super- and hypermarkets therefore
Belgium and 54 in Germany. The assortment consists mainly have very low priced clothing in their
for 80 percent of private labels. 135 stores in The assortment. Clothing including bodywear can be found
Netherlands use the Livera formula. The assortment is increasingly in grocery supermarkets due to their high
more or less the same as that of Hunkemöller, except rate of stock turnover and good profit margins,
that Livera represents more manufacturers’ labels. compared with the other product groups. Pantyhose and
The major department stores in The Netherlands are tights are important products for this retail channel.
V&D and De Bijenkorf, which just like variety store Supermarket chains are, for instance, Albert Heijn,
Hema are part of the holding company Vendex/KBB. Aldi, Vomar, and Edah. Direct imports of clothing by
The variety store Hema has 281 sales stores, of which these companies are very limited. Wholesalers and
255 in The Netherlands. Hema is market leader (in service merchandising are the usual distribution
terms of volume) in such articles as bras and baby channels.
clothing. All articles are sold under private label. De An important part of the category ‘Other’ is taken by
Bijenkorf has 11 stores and stocks high-quality, stylish the Makro (wholesaler with retail activities). Other
and appropriately priced products. In developing and retail selling stores are “factory door” sales. Companies
buying its fashionable own-brand labels, De Bijenkorf in this category (with the exception of the Makro) are
cooperates with foreign department stores, like not themselves involved in importing.
Breuninger (Germany), Globus (Switzerland), Magazin In volume terms, the most important distribution
du Nord (Denmark) and Stockmann (Finland). V&D channels for women’s and girls under- and nightwear
operates in the middle of the market with 70 stores. are variety and department stores (27%), lingerie and
Clothing multiple stores play a major role in the foundations speciality chains (21%) and textile
textile trade, accounting for more than a third of the discounters (22%). Variety stores, department stores and
market in outerwear and a limited but increasing market textile discounters are the chief stores for men’s and
share in bodywear. General clothing stores, selling boys’ underwear, accounting for 63 percent of total
bodywear are C&A (81 stores), Hennes & Mauritz (59), sales (in volume).
Vögele (103), Marca (33 stores and part of C&A). The With regard to market shares in sales of bras, lingerie
major suppliers in the ladies’ apparel market with and foundations speciality stores account for 33 percent
women’s bodywear in their assortment are M&S-Mode and variety and department stores for 30 percent. These
(130 stores, part of Vendex/KBB) and Miss Etam (126 percentages remained rather stable, while the market
stores). Suppliers of men’s clothing include We for men share of clothing multiples increased to about 9 percent.
(104 stores, former name Hij). Hosiery distribution at retail level is dominated by
Discounters in textiles are often referred to as textile variety stores in the medium price ranges, department
supermarkets. In total, there are more than 800 textile stores in the higher and textile discounters and street
supermarkets in The Netherlands. A major part of them markets in the lower price ranges. The role of
belongs to the Zeeman Group, which operates in several supermarkets is significant in that their prices are not
countries under the name Zeeman Textielsupers (685 much lower than average hosiery prices. They sell
stores, of which 403 in The Netherlands). Other mainly pantyhose and tights, but also socks and
discounters in textiles are Wibra (233 stores, of which stockings, by means of service merchandisers and
188 in The Netherlands), Hans Textiel & Mode (140), wholesalers.
Bentex (50) and Henk ten Hoor Textiel (55). Most No specific figures for market shares are available for
products under review in this survey are part of the beach- and swimwear. It can be estimated that sport
assortment of the above-mentioned textile discounters. speciality stores and lingerie and foundations speciality
Discounters, which originally only sold footwear like stores each have a market share of 22 percent in terms
Scapino (200 stores, part of Vendex/KBB) and Bristol of volume. Compared to their shares in other bodywear
(88), have expanded their assortment to include categories, mail-order companies have a high share of
outerwear, sportswear and bodywear. This example has beach- and swimwear sales, at about 16 percent of total
been followed by other footwear discounters, like retail sales. Department stores have 12 percent of this
Schoenenreus (172) and Massa Schoen en Mode (44). market, while the other retail types have limited shares,
Due to the extended network of retail shops in The varying from 1-8 percent.
Netherlands, mail-order companies have a much lower

62
7.1.3 Buying policy of intermediaries materials are not country-specific. They may vary
Margins are under continuous pressure in the major EU considerably within individual countries and will be
countries. Consumer expectations with regard to lower discussed in chapter 11.
prices, in particular, as well as tough competition have
resulted in the retailer’s needs for lower inventories, less 7.2 Distribution channels for developing
out of stock and lower markdowns. Consequences for country exporters
the buying policy are:
• fewer pre-seasonal orders; The EU apparel market is complex and sophisticated.
• more collections per season; Major apparel brands from EU countries (Italy,
• investment in seasonal planning and control; Germany and France) including premiere collections
• co-operation with suppliers (quick and more affordable brands compete in the high-price
response/electronic data interchange), and segments with famous names from the USA,
• fewer suppliers. Switzerland and in the case of swimwear from
Australia. Cheap, mass-produced items from low-cost
Successful formula are based upon permanent regions such as China, Southern Asia, Mediterranaen
replenishment and fast-moving goods. H&M and Zara and CEECs compete in the low-price segments. The
are examples of the competitive advantages and movement away from cheap products (with low relation
benefits of greater speed to market. The secret to their to fashion and comfort) to mid-price segments
success is the ability to provide the latest fashion trends including products of higher quality and more
to their customers. Zara, seen to be more at the cutting individual clothes, offer interesting possibilities to
edge of fashion than H&M, has maintained a lead in its exporters. In this segment, European as well as foreign
ability to respond rapidly to fashion trends. It puts retailers (clothing chains, buying and selling
fashion ranges together in 7-30 days and can replenish organisations, mail-order companies, department stores)
bestsellers in the stores in five days, while H&M can operate with their own private labels, sometimes
respond in 30-60 days. This compares to as much as combined with branded products (for an increasing part
40-50 weeks from design to delivery for a typical sourced outside the EU) and also with non-branded or
clothing retailer. fancy branded items. A polarisation of brand leadership
also appears likely in Europe: retailers in Germany, UK,
All opportunities enabling reduced costs are eagerly France and other EU countries are clearly aiming to
pursued. Buyers of clothing importing companies are replace manufacturer brands with their own identities in
looking for lower purchase prices and minimising costs the middle market, leaving the upper market to designer
in the buyer’s home country. The need to reduce costs brands.
has provided the main driving force behind the The opportunities for developing country exporters to
development of foreign garment sourcing for the choose their distribution channels depends on external
markets of importing countries. As a result, production (demand and requirements of importers/buyers) and
has migrated to a growing number of developing internal factors. The latter will be discussed in part C of
countries, as buyers have sought and are still seeking this survey. The foreign strategies of EU manufacturers
for ever lower-cost locations. In practice, it is not a are discussed in chapter 4.
question of looking for the lowest wages but looking for
manufacturers with the lowest overall manufacturing Wholesalers
costs. The best value is not necessarily created in By buying on his own account, the importer/wholesaler
countries where labour costs are lowest. Instead, it tends takes title to the goods and is responsible for their
to be generated in factories where management are best further sale and distribution in his country and/or in
able to manage costs and productivity and where other EU markets. He is familiar with local markets and
technology is used cost effectively. In other words, the can supply considerable information and guidance to
skill and circumstances which contribute to achieving the exporter in addition to the primary business of
the best value are factory-specific rather than country- buying and selling, such as administration of
specific. import/export procedures and holding of stock. The
Minimising purchasing costs implies that many buyers development of a successful working relationship
try to limit the number of supplying countries and the between exporting manufacturer in developing
number of individual manufacturers they deal with. countries and importer/wholesaler or importer can lead
Sourcing policies are made on two levels, country level to a high level of co-operation with regard to
and company level. On country level, aspects like appropriate designs for the market, new trends, use of
quota, duty rates, ethical aspects, wage structure, materials and quality requirements.
distance, local infrastructure, economic and political The missing of direct contacts with retailers, as well as
stability play a role. Other aspects like fast reaction, lower margins than in the case of direct selling to
speed to market, logistics management, quality, retailers, represent possible disadvantages. However,
production facilities, design capacity, availability of raw especially for starting and/or SME exporters advantages
are of more importance than disadvantages!

63
Retail organisations Which trading partner is the most suitable depends on
Buyers at clothing multiples, mail-order companies and external and internal factors. This will be discussed in
variety stores, which have mainly or exclusively private part C.
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 from own design.
Mail-order companies are keener than other retail
distributors about 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, 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.
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.

Independent retailers
Unorganised independent retailers, with 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.
Many independent retailers are organised via franchise,
selling formula or buying groups. These organisations,
including their buying policy, can be considered as
multiple stores or chains. 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. In
particular in Germany and The Netherlands, buying
groups play a significant role for specialised
independent retailers, while franchising is more
important in France, Italy and Spain.

Agents
Agents are intermediaries between manufacturer and
retailer, receiving a commission from the former.
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 from developing
countries.

64
8 OPPORTUNITIES AND THREATS FOR DEVELOPING COUNTRY
EXPORTERS
Opportunities Distribution
• Parallel to the trend for suppliers to make their
Consumer market clothing abroad is a trend for retailers or wholesalers
• Germany is still the greatest market for bodywear in to bypass the local industry totally, by means of
the EU, but consumer expenditure decreased just like direct imports. The role of importing wholesalers and
in France. The highest growth rates are in Italy, Spain importers remained rather important but will slightly
and The Netherlands, while the UK showed a decline, while the role of clothing and specialised
moderate growth. bodywear multiples and, to a lesser degree, buying
• Demand for bodywear in the EU will continue to groups or franchise formula will increase in the
increase slightly in the coming years. The number of coming years. The buying policies of super- and
garments purchased per head of population will hypermarkets vary from direct imports by the
continue to rise but prices will not follow this growth international operating chains to buying from
rate. To satisfy the requirements of importing wholesalers/importers.
European companies, the exporters in developing
countries will be faced with increased demands for Threats
higher quality and environmentally friendly products.
For more information concerning environmental • The fast changing demand in the clothing and
aspects, we refer to CBI’s AccessGuide. With the bodywear market is an important factor. Because of
right strategy and a carefully thought out the higher dynamics of the clothing markets in terms
development plan, there is no reason why these of quicker changing consumer preferences, there is a
challenges cannot be met. general tendency in the clothing branch to demand
• Regarding women’s outerwear consumption, a recent shorter delivery times and smaller volumes of series
shift from dresses to trousers/jeans has resulted in a and orders. Shorter distribution lines mean saving of
renewed popularity for hosiery. Products with the time in the logistics process, less problems with rush
strongest growing demand in the period under reviw orders, better determination/fixing of order volumes,
were were push-up bras, strings and corrective more possibilities for post-ordering, less danger of
briefs/tights for women. over-ordering, over-supply and big stocks. Because
of the spreading of buying of clothes over the whole
Imports year and because of increasing product
• Imports from developing countries are important and differentiation, there is a growing shift in power
still rising in almost all product groups in particular positions to the retail chains. These developments
for the following product groups, of which imports include opportunities for the group of
from developing countries increased more than ‘priviliged/short distance’ supplying countries (as
15 percent in volume in the period 1999-2001: described in chapter 9.2) and tough competition for
- a product group with a very high import share from other countries.
developing countries, growing 21 percent in volume • Recent import developments give slight indications
against 4.5 percent higher prices, during this period that production is being moved from Asia to Central
is T-shirts. Despite the high number of supplying and East European countries, i.e. to locations where
countries several newcomers were registered as relatively faster reactions to new fashions and sudden
exporting countries to the EU; changes in retailer demand can more easily be made.
- imports of bras (in volume) increased 15 percent in This trend is likely to accelerate as and when these
the same period; countries join the EU. This move can also be seen
- imports of knitted briefs/tights for women increased against the background of the continuing shortening
slightly; cotton remained the favourite material but of the ordering period and the reduction in size of
the import share of cotton items decreased in favour the average order.
of briefs made of man-made fibres. • Ten new nations join the EU in 2004, then two more
• Importers in the major EU countries have built up a by 2007. Although the new members are relatively
comparative advantage by specialising themselves in small, all of them are net exporters of clothing.
design and other functions, like preparation of Turkey, the second biggest clothing supplier to the
samples, logistics, marketing etc., while simple EU, is likely to join the EU.
production operations take place increasingly in • The effect on the elimination of quotas per 01-01-
other countries. As times goes on, even the first 2005 will be for prices to fall, as companies will no
mentioned functions, are leaving these EU countries longer be required to purchase quota before shipping
too. garments to the EU. Products likely to see the

65
 biggest price reductions are those manufactured in
Asian countries which are currently subject to higher
tariffs than those levied on products from the EU
neighbours in the CEECs and the Mediterranean
Rim. Tariffs and trade barriers other than quota will
become more important.

Exporting bodywear to EU countries requires in-depth

understanding of markets: market size and growth,
import penetration, nature and characteristics of
demand, distribution and flows in the channels,
consumer psychographics and demographics, fashion
developments etc., of which a sound basis can be
derived from part A of this survey. However, exporters
in the bodywear sector are also confronted with
technical or production aspects, sizing, packaging,
environmental aspects etc. resulting in a lot of technical
requirements, which will be discussed in part B.
This variety of requirements can be the reason that co-
operation between importer and exporter, in whatever
form it takes place, can be necessary. Exporters have to
ensure that quality requirements are strictly met, for
instance by using the services of laboratories.
Possibilities for exporters in developing countries still
depend on an increased attention to quality and
reliability in deliveries.
The exporter has to be familiar with the domestic
market of the target countries. The consumers in these
countries match the products from other sources to their
culture-bound, learning-bound requirements. Thus, in
international marketing, the process taking place is the
product-market match process and, at the entry level,
this is of critical importance.

66
Part B
Market access requirements

B
68
9 DOING BUSINESS WITH THE EU: REQUIREMENTS FOR ACCESS

9.1 Non-tariff trade barriers 9.1.2 Trade-related environmental, social and

health & safety issues
9.1.1 Quality and standards for bodywear The following paragraphs, concerning environmental,
There is no EU quality standard for bodywear. Most of social and health & safety issues are derived from
the importers (manufacturers, wholesalers, retail AccessGuide, CBI’s on-line database on non-tariff trade
organisations etc.) work with certain minimum barriers at http://www.cbi.nl/accessguide.
requirements. In this respect they have formulated and
stipulated minimum quality requirements, relating to Product legislation
both materials and make. The technical committee of At the moment, the most important environmental and
the European Clothing Association (ECLA) published health issue in clothing trade is product legislation.
an example of recommendations concerning EU product legislation on environmental and consumer
characteristics and faults in woven and knitted fabrics to health and safety issues is compulsory, therefore of
be used for clothing, in which a distinction is made utmost importance. For instance, legal requirements on
between: dangerous substances such as certain azo dyes splitting
• recommendations limited to the characteristics of off carcinogenic amines. In AccessGuide you will find
fabrics, which are detectable by an experienced an analysis of all necessary EU requirements,
person with or without the aid of instruments in applicable in all EU member states, including: azo dyes
general use. A fault is considered if the irregularity is in garments, nickel, flame retardants, cadmium,
evident in the fabrics as delivered or is detrimental to PCB/PCT and asbestos. In addition, legislative
the final garment; requirements in Germany (azo dyes, formaldehyde,
• recommendations limited to the characteristics of PCP, covenant on children’s clothing, chromium,
fabrics, which can only be detected with the aid of disperse dyes, dioxins and furans), the UK (regulations
suitable equipment. Each characteristic described on flammability) and The Netherlands (azo dyes,
comprises: definition, method of testing and formaldehyde in textiles with skin contact, PCP) are
minimum quality standards and as far it occurs: outlined when they are additional to EU legislation.
possible allowable tolerances compared with the These three countries are chosen, because they are
values of the sample and eventual commercial relatively pro-active in their legislation. Please note this
implications. does not imply that there is no additional relevant
legislation in other EU countries.
Methods of testing fabrics and/or garments are mainly Most of the EU legislation mentioned is directly
based on ISO standards and otherwise on European applicable to foreign firms supplying products to a
norms (EN) or national standards (DIN, NEN or BS, European country, for instance through their own
respectively for Germany, The Netherlands and UK), like: foreign sales outlet. However, products are often put on
• care labelling (ISO 3758); the market indirectly, through importers. In most cases
• dimensional stability aspects, like steaming (DIN this makes the importer responsible for the product.
53894), fusing (DIN 54311), washing/tumbling (ISO Importers might therefore encourage or even force
3759, 5077 and 6330), dry cleaning (ISO 3175); foreign suppliers to meet certain standards, for example
• mechanical and physical properties like tensile through legally binding guarantees.
strength strip (ISO 5081), tensile strength grab (ISO
5082), tear strength (ISO 9290), seam slippage (BS Social requirements (labels, codes and management
3320), abrasion resistance (EN 22313), crease systems)
tendency/recovery (ISO 9867), pilling tendency (BS Besides legal requirements of own governments,
5811), fibre penetration (SIS 650047), spray test (EN exporters might be confronted with social requirements
24920) etc.; that are requested by EU buyers. More and more
• colour fastness to several aspects like washing, light, companies have laid down minimum standards in so-
water etc. (ISO 105). called codes of conducts, or use labels and management
systems to guarantee labour conditions. These social
Despite EU harmonisation, which enables free trade requirements are gaining importance on European
between EU member states, individual markets have markets and are becoming a precondition for
different requirements regarding garment types, sizes, international trade.
colours etc. In AccessGuide you can find the most important
requirements, including an indication of their market
impacts by typing in the keyword search: international
social standards for textile and garments; ILO
Conventions; SA8000 (International social management
system).

69
Occupational health and safety (OHS) treatment of packaging waste, consisting of quantitative
Standards and methods are developed because of the objectives to be achieved by each of the EU member
growing concern in Europe about the local social states. The member states have the responsibility to
conditions in which products are manufactured. OHS or translate the Directive into national legislation.
labour conditions are an important issue when looking It is becoming increasingly difficult and expensive to
at the social standards that are more and more required dispose of waste in Europe. In principle, the importer is
on EU markets. Especially in textiles, occupational held responsible for disposal of the packaging waste for
health and safety is an important issue. More all goods from outside the EU. It is therefore crucial,
information can be found in AccessGuide. when planning exports to the EU, to take the packaging
of your products (both sales packaging and transport
Environmental and consumer health and safety packaging) into consideration. To fulfil the
requirements (ESP, labels, codes and management requirements of the target market, good communication
systems) with the importer about packaging is necessary.
The environmental impact of textile production is More detailed information about packaging techniques
considerable. This impact starts with the use of and the use of packaging materials can be found on the
pesticides during the cultivation of plants from which website of ITC.
natural fibres are obtained, the erosion caused by sheep
farming or the emissions during the production of Size marking
synthetic fibres. From that moment on, a number of
processes is applied, using thousands of different Under- and nightwear
chemicals. Particularly issues related to water are highly The following body measurements can be used in the
relevant to the textile industry. Several measures can be product groups under- and nightwear: breast, waist and
taken to reduce the environmental impact. hip size and for women also the underbreast size. Note
Environmental sound production (ESP) measures in the that for all sizes the body length of women is 168 cm
production process are not legally compulsory such as and for men 176 cm. These basic measurements
EU product legislation, but you might be confronted determine the fit of the garments.
with these requirements that are requested by EU
buyers. There are many instruments such as labels, The standard clothing sizes 36-46 are used for women,
hallmarks, management systems and codes of conduct. while the sizes S, M, L and XL are used for very elastic
Especially the textile sector is famous for its high articles. In addition to these standard sizes, wider ranges
number of ecolabels. Some labels have a small market are used like 34-60, just like XXS, XS and XXL.
impact, for instance EKO labels for organic textile or
national labelling schemes. A label with a growing Children’s sizes are based on body height and vary from
market impact is the Oko-Tex 100 label based on 92 to 164 (cm.). Because of the elasticity of the
environmental as well as health and safety aspects. You materials used, sizes expand 12 cm instead of 6 cm, the
can find information on these requirements in latter being the case for outerwear.
AccessGuide.
The sizing system in the EU countries Germany, The
9.1.3 Packaging, size marking and labelling Netherlands and Austria are similar, just like the
Packaging systems in France and Belgium, and the system in
Care must be given to the packaging of products if one Spain and Portugal. Italy and the UK have each their
intends to export to the EU countries. It is obvious that own different system. In EU countries, except the UK,
the packaging must be travel-steady. As required, the same figure sizes are used, but sizes are not equal.
products should also be protected against the elements, For instance: women’s figure size 38 in Germany and
changes of temperature, rough handling and theft. The Netherlands is indicated in France/Belgium as 40,
Besides these basics of travel- and handle-durability, in Italy as 44 and in Spain/Portugal as 44/46.
some importers may have specific demands concerning As mentioned above the UK uses a different system
packaging, like information concerning the order based on inches and not on centimetres. Women’s figure
printed on the boxes (order number, box number, name size 38 in Germany and The Netherlands is indicated in
department or contact person etc.). the UK as 12, figure size 40 as 14 etc.
For environmental reasons packaging made from
materials like PVC etc. is less popular with consumers Foundations
and in some cases is or will be forbidden by A number and a character indicate sizes of brassieres.
government. Exporters in developing countries should The number indicates the girth of the bra and the
be prepared to discuss this issue with potential clients character the cup depth. The under-breast measurement
and should anticipate building the cost of special and breast measurement also have to be given because
packaging into their price, if required. the cup depth is the difference between breast
The European Directive on Packaging and Packaging measurement and under breast measurement.
Waste (94/62/EC) establishes overall legislation for the

70
 Women’s sizes

Figure sizes 36 38 40 42 44 46 48 50 52

Chest width in cm 84 88 92 96 100 104 110 116 122

Underbreast in cm 65 70 75 80 85 90 95 100 105
Waist size in cm 68 72 76 80 84 88 94.5 101 107.5
Hip girth in cm 94 97 100 103 106 109 114 119 124

Men’s sizes

Underwear sizes 4 5 6 7 8
Figure sizes 48 50 52 54 56
Character sizes S M L XL XXL
Chest width in cm 96 100 104 108 112
Waist size in cm 82 86 90 94 98
Hip girth in cm 104 108 112 116 119

Sizes of bras in numbers:

Germany 60 65 70 75 80 85 90 95 100 105 110 115 120 centimetres

France 75 80 85 90 95 100 105 110 115 120 125 130 centimetres
Italy 60 65 70/I 75/II 80/III 85/IV 90/V 95 100 105 110 115 120 centimetres
UK 28 30 32 34 36 38 40 42 44 46 48 50 inches

The same sizes as in Germany are used in The in the UK: 80B in Germany = 32B in the UK; 85C =
Netherlands, Austria and the Scandinavian countries. 34C and 90B = 36B.

Characters to indicate the cup depth: Hip articles

Waist measurement and hip measurement are indicators
for the size of hip foundations. Waist measurement
Cup depth in Cup type determine the size, while this size can be influenced by
centimetres the hip measurement (when the difference between
waist and hip measurement is more than 28
10 - 12 AA cup centimetres).
12 - 14 A cup
14 - 16 B cup
16 - 18 C cup Sizes:
18 - 20 D cup
20 - 22 E cup 60 65 70 75 80 85 90
22 - 24 F cup
24 - 26 G cup XXS XS S M L XL XXL
28 - 30 H cup
30 - 32 I cup
32 - 34 J cup
Swimwear
Standard clothing sizes are usually used for women’s
Standard sizes are A,B,C; B, C,D; and B,C,D,E. Sizes swimwear (36-50) and sometimes also a cup size. Girls’
F, G, H, I and J can be considered as special sizes just swimwear is usually indicated by height sizes.
like AA. In some cases a broad range can be required, The sizes of swimwear for men and boys are indicated
like AA to E. by clothing sizes 46, 48 etc. or underwear sizes 4, 5 etc.
The 5 cm intervals in Germany etc. are 2 inch intervals Sizes XS until XL are also used in some cases.

71
Hosiery the symbols relate to the properties of colour fastness,
The sizing for full-length stockings is based on foot dimensional stability, effect of retained chlorine
length and inside leg length, while for all other types of (bleach), maximum safe ironing temperatures and
hosiery, except pantyhose and tights, foot length is certain other properties.
clearly the principal and only measurement, just as it is
for shoes. However, for pantyhose there is a wide voluntary requirements like origin marking, brand or
divergence of opinions and sizing systems used, mainly product name and other consumer information. There is
because of their high stretch properties. The systems are an increasing awareness of the need to keep the
based on hip/girth/height and height/mass (or weight). consumer informed about his prospective and current
purchases. Origin marking means that the name of the

The following sizes are used for hosiery:

International shoe size comparison

Europe *) 35 351/2 36 361/2 37 371/2 38 381/2 39 391/2 40 401/2 41

UK 21/2 3 31/2 4 41/2 5 51/2 6 61/2 7 71/2 8 81/2

USA 4 41/2 5 51/2 6 61/2 7 71/2 8 81/2 9 91/2 10

*) continental Europe (excluding the UK)

Size tables for men’s shoes are used for men’s socks country of origin should be mentioned. It is not allowed
(men’s stockings are seldom bought, except in the to mention the name of a country other than the country
active sports sector): 39; 40; 41; 42; 43; 44; 45; 46 of origin.
The elasticity of some products makes it possible to use
one size 36/41, which covers the complete range of The increasing market share of self-service stores, like
women’s shoe sizes. The sizes 39/42 and 43/46 are grocers’ supermarkets and variety stores in hosiery and
often used for men’s socks. some other items of bodywear, have enforced the
Size tables for women’s wear (body sizes) are used for inclusion of information on packaging or on the product
pantyhose or tights in the following ranges: itself. The placing of the label in garments varies and
36/38; 40/42; 44/46; 48/50; 52/54 can be part of the importer’s requirements.
Other sizing systems for pantyhose are for instance 0 to
6, however, this sizes correspond to the range above, 9.2 Tariffs and quota
based on shoe sizes.
It should be noted that different interpretations by The impediments to international economic transactions
manufacturers, wholesalers and retail organizations are include:
possible regarding sizing! Different interpretations are • Traditional tariffs
also possible between different countries. Exporters All EU countries apply common Customs tariffs to
should discuss this in detail with (potential) clients, to imports from outside the Union. If there is no special
obtain clear information. trade agreement in force, the general import tariff
applies. Some kind of preferential trade agreement in
Labelling the field of tariffs, or reductions of EU duty levels
There are two kinds of requirements in the EU: may apply to many developing countries, according
mandatory requirements like size (discussed above), to the commitments in the Uruguay Round, until
fibre content and care-labelling/washing instructions. 2005. Most of the developing countries have been
With regard to fibre content: the indication 100% or granted special trade preferences; these countries
pure can be used within a margin of 2 percent of the usually benefit from zero duties through preferential
weight of the final product. Other fibres with a weight treatment under the Renewed Generalised System of
of less than 10 percent of the weight of the final Preferences (RGSP) or under the 4th Lomé
products can be mentioned. In that case all (eventual) Convention for the African, Caribbean and Pacific
other fibres have to be mentioned. (ACP) countries.
An international care-labelling programme, patterned - RGSP
after similar programmes, is in use in many countries This agreement allows products originating in the
including countries outside the EU. The programme countries concerned to be imported at preferential
makes use of five basic symbols that are colour-coded;

72
INTERNATIONAL CARE LABELLING SYMBOLS

Washing
(wash tub)
normal mild normal mild mild normal mild very mild hand do not
process process process process process process process process wash wash

The numbers in the washing tub specify the maximum temperature in 0C with must not be exeeded.
The bar untherneath the wsh tub characterizes a milder cycle with reduced mechanical action especially
for easy care articles.

Chlorine-based
bleaching (triangle)

chlorine-based bleaching allowed do not use

chlorine-based bleach

Ironing
(hand iron)

iron at high iron at medium iron at a low do not iron

sole-plate temerture sole-plate temerture sole-plate temerture
The number of dots indicates the temperature level of the hand iron.

Dry cleaning
(circle)
self-service self-service self-service do not dry clean
cleaning alsow allowed cleaning with restrictions cleaning not allowed

The letters within the circel specify the solvents that can be used.
The bar under the circle indicates that certain limitations in the dry cleaning process are required.
These may concern mechanicval action and/or drying temperature and/or water addition in the solvent.
- No self-service cleaning allowed

Tumble drying
(circle in a square)
Normal drying Drying at a lower temperature Do not tumble dry

The number of dots indicates the severity as regards to temperature of the tumble drying treatment.

Care labelling recommendations:

Washing
• all garments worn close to the skin should preferably be washable at 60º C., normal mechanical agitation.
• all other garments should be washable at 40º C., normal mechanical agitation.
• the bar under the washtub should only be used in the case of delicate fabrics. The bar indicates that the mechanical
agitation should be reduced.
• the broken bar should only be used in the case of machine-washable wool and machine-washable silk. The broken bar
indicates that the mechanical agitation should be much reduced.
• the hand-wash symbol should only be used for articles which cannot be washed in the washing machine.

Bleaching
• normally the symbol is crossed out. However, some articles may be exposed to chlorine based bleaches e.g. white
underwear, swimwear. continued

73
 Care labelling recommendations: continue

Ironing
• three dots for cotton and linen.
• two dots for acetate, metallised fibres, polyamide, polyester, tri-acetate, viscose, wool, angora and silk.
• one dot for acrylic, mod acrylic, elastane.
• the symbol should be crossed out for chlorofibres and polypropylene.

Dry cleaning
• only use the symbol P. The bar under the symbol only to be used for delicate fabrics, especially those made from angora.

Tumble drying
• two dots for all cotton and linen articles.
• one dot for all other compositions.
• care should be taken that articles are finished properly to prevent excessive shrinkage. This should be tested.

Note: the “weakest” fibre determines the selection of the symbols in blended materials.

tariffs or, for the least developed countries, duty-free. clothing. The latter include Bangladesh, Brazil,
A “Certificate of Origin Form A” has to be filled in China, Egypt, Hong Kong, Indonesia, India,
by the exporter and issued by the competent Cambodia, South Korea, Laos, Sri Lanka, Moldavia,
authorities. Tariff contingents and tariff ceilings do Macedonia, Macao, Malaysia, Nepal, the Philippines,
not exist anymore. Pakistan, Russia, Singapore, Thailand, Taiwan,
- Lomé Convention United Arab Emirates, White Russia, Ukraine,
Products originating in the ACP countries can be Uzbekistan and Vietnam. Some clothing products,
imported without duties, when a “Movement like T-shirts, are considered as belonging to a
Certificate EUR.1” is filled in by the exporter and “sensitive” category; their importation into the EU
issued by Customs in the country of export. from these countries is subject to quantitative limits.
It has to be noted that there have been no quantitative
The EU common external import tariffs for bodywear limits on clothing from Turkey since 1996.
(as a percentage of CIF value, without duties and VAT) Furthermore, garments are imported free of Customs
are given in table 9.1. duty when garments are made from fabrics produced
• Other barriers in the EU, or raw materials originating in the country
Examples of barriers other than tariffs are anti- of manufacture. Besides Turkey this treatment has
dumping measures and quota restrictions. been granted to several East European countries,
- Anti-dumping measures North African countries (like Morocco and Tunisia),
Anti-dumping implies, that under WTO regulations, least-developed ACP countries (signatiories to the
exporters are expected to sell their products at fair Lomé convention), Bangladesh and several Latin
market value, at a price above cost and without America countries.
imposing higher domestic prices for the same Since 1998, there have been no quotas for
product that would in effect subsidize their lower Central/East European countries. For some countries,
export prices. In the event of predatory pricing by a notably India and China, quota utilisation
particular company or country, the importing country approached and even exceeded 100 percent, while
is allowed to impose a duty surcharge on the for others, including Brazil, utilisation was very low.
imported product, to bring the final price up to fair Information on the up-to-date status of the
market value. management of quotas is available on the Systeme
- Quota restrictions Integre de Gestion de Licences (SIGL) at website
The most important form of non-tariff barriers http://sigl.cec.eu.int/ and
regarding clothing is quota restrictions. Since 1995, http://sigl.cec.eu.int/sigl/sigl.pl
the Multi Fibre Arrangement (MFA) has been The certificate of origin, mentioned above, is
superseded by the WTO Agreement on Textiles and intended to ensure that the EU quantitative levels are
Clothing (ATC). The ATC calls for import not contravened, for example, by transhipment of
restrictions on textile and clothing to be lifted in four goods through a third country from a source country
distinct phases spreading over a period of 10 years: whose quota has already been filled. These
16 percent of imports by volume in 1995, 17 percent certificates are obtained in the supplying countries
in 1998, 18 percent in 2002 and the rest in 2005. from authorities that are empowered to issue
Under the Arrangement, the EU has bilateral certificates of origin and the required stamps.
agreements with the major exporters of textile and

74
 Table 9.1 Import tariffs for bodywear, as a percentage of CIF value, without duties and VAT

HS code Product category Tariff in %

general RGSP 1)

Knitted or crocheted:
6107 Men’s or boys’ underpants, briefs, nightshirts and pyjamas 12.0 9.6
Men’s or boys’ bathrobes, dressing gowns and similar articles 12.2 9.7
6108 Women’s or girls’ slips, petticoats, briefs, panties, nightdresses, pyjamas 12.0 9.6
Women’s or girls’ bathrobes, dressing gowns and similar articles 12.2 9.7
6109 T-shirts, singlets and other vests, knitted 12.0 9.6
6112 Men’s or boys’ swimwear, containing by weight 5% or more of rubber thread 8.0 6.4
Other 12.2 9.7
Women’s or girls’ swimwear, containing by weight 5% or more of rubber thread 8.0 6.4
Other 12.2 9.7
6115 Pantyhose and tights 12.0 9.6
Women’s full- or knee-length hosiery 12.0 9.6
Stockings for varicose veins, of synthetic fibres 8.0 6.4
Woven:
6207 Men’s or boys’ underpants, briefs, nightshirts and pyjamas 12.0 9.6
Men’s or boys’ bathrobes, dressing gowns and similar articles 12.2 9.7
6208 Women’s or girls’ slips, petticoats, briefs, panties, night-dresses, pyjamas 12.0 9.6
Women’s or girls’ bathrobes, dressing gowns and similar articles 12.2 9.7
6211 Swimwear 12.2 9.7
6212 Brassieres, girdles, corsets, braces, suspenders, garters and similar articles 6.5 5.2

1
) preferences are not valid for China, Macao, Moldova and Myanmar

Developments after elimination of quota per • Priviliged/short-distance supplying countries:

01-01-2005 quota free imports came from CEECs and non-EU
Despite the emergence of new players, the world Mediterranean countries. When EU, domestic or
apparel manufacturing industry remains concentrated in “neighbour” country fabrics are used, imports are
about 50 countries, most of them mentioned in chapter durty-free. Important supplying countries are Turkey,
5. Almost all of these countries have strong competitive Morocco, Tunisia, Croatia, Slovenia, Macedonia,
advantages because they have developed skills and Albania, Bulgaria, Romania, Poland, Latvia, Estonia,
resources to meet the rapidly changing demands of the Israel, Lithuania, Bosnia-Herzegovina, Serbia,
EU, as well as those of the USA and Japan. It is Jordan, Hungary, Czech Republic, Slovakia, Cyprus,
expected that the skills gap between the dominant Malta, Syria and Egypt. Turkey is one of the few
suppliers and the rest will widen. The dominant countries with important fabric manufacturing
suppliers will continue to improve their quality and facilities.
value, especially in 2005 and beyond when quota • Priviliged/long-distance supplying countries: quota
elimination will drive down prices in those countries and duty free imports came from ACP countries and
still further. According to predictions of ten years ago, some other LDCs (least developed countries). In
this has been confirmed by developments in clothing practice the only countries within the ACP group
imports of the USA in 2002. USA imports from China with substantial exports (valued more than € 1.5
more than doubled against 35 percent lower prices in million in 2001) to the EU are Mauritius, Madagscar,
that year, while imports from Mexico and the Jamaica, Botswana, Zimbabwe, Domincan Republic,
Caribbean, respectively hardly grew or fell, despite Lesotho, Cape Verde, Fiji, Tanzania and Kenya.
these countries being granted more favourable Preferences are also valid for the LDCs: Bangladesh,
treatment. Cambodia, Laos, Maldives, South Africa, Bolivia,
In analysing the impact of quota elimination on Colombia, Costa Rica, Ecuador, El Salvador,
garment imports from outside the EU, supplying Guatemala, Honduras, Panama and Peru.
countries can be classified as follows: • Long-distance countries with high constraints:
quota for this group of countries (China, Hong Kong,
Macao, Taiwan, South Korea, India, Pakistan (no
tariff temporarily), Malaysia, Thailand, Indonesia and
Vietnam) are fully or almost fully utilised. These

75
 countries are also subject to the least favourable duty Part A considered the EU market for bodywear and Part
rates. B the accessibility for exporters to this market. The
• Long-distance countries with low constraints: very purpose of Part C is twofold: chapters 10,11 and 12 aim
low or no quota utilisation is valid for other non- at assisting the exporter in the decision-making process:
mentioned GSP countries like Argentina, Brazil, whether or not to export by combining the external and
Uruguay, Russia, Belarus, Saudi Arabia, Sri Lanka internal analysis with critical conditions and success
(no quota), Turkmenistan, UAE etc. factors. The last chapter informs the exporter, after he
has made a positive decision, of the actions he has to
The effect on the elimination of quotas per 01-01-2005 undertake to successfully penetrate the EU market for
will be for prices to fall. Products likely to see the his sector.
biggest price reductions are those manufactured in
Asian countries which are currently subject to higher To obtain up-to-date information on trade regulations,
tariffs than those levied on products from the EU refer to the list of useful addresses in appendix 3.6 of
neighbours in the CEECs and the Mediterranean Rim. the EU Market Survey ‘Bodywear’.
Tariffs and trade barriers other than quota will become
more important.

76
Part C
Export marketing:
analysis and strategy

C
78
After having read Parts A and B, it is important for an service, normal service and 0-service factories. Full
exporter to analyse target markets, sales channels and service can be compared more or less with the private
potential customers in order to formulate marketing and label supplier; the normal service factory with the FOB
product strategies. Part C subsequently aims to assist producer and the 0-service factory is most likely
(potential) exporters in developing countries in their working on a CM or CMT basis.
export-decision-making process.
Chapter 10 describes the analyses of the external CMT (or OPT) producers
environment resulting in opportunities and threats, Characteristics of the CMT or OPT factory are:
while chapter 11 describes how to analyse the internal • often unable to produce more than a limited number
environment, which results in strength and weakness of of orders at one time (averages five or fewer styles
exporter’s company: the so-called SWOT analysis. The per month);
essence of the SWOT analysis is to find a market • the capacity is filled by a limited number of
segment, where there is an opportunity that matches the customers;
strength and where the threats have a minimum impact • customer supplies fabric and trim;
on the vulnerable side, the weakness of the company. In • efficicieny is high when producing a basic product;
fact, by matching external opportunities and internal • cannot deal with changes in order (colour or size
capabilities, the exporter should be able to identify assoirtment) or design modifications.
suitable target countries, market segments and target Little investment is made in capital equipment and the
product(s) within these countries, as well as possible factory operates using semi-skilled or unskilled
trade channels to export the selected products (chapter workers. Situated at a long distance from the EU, the
12). Chapter 13 subsequently describes which factory enjoys a direct-cost advantage only from labour
marketing tools can be used to build up successful cost.
business relationships.

There are several reasons like growth, continuity and Case Study Marks & Spencer *)
competitiveness which support the decision to export.
In any case, the decision should always be taken after No one pays a lower CMT price than the British retailer
export market research has been carried out and if Marks & Spencer. At the same time, M&S’s level of
customers have been identified, who sufficiently quality is one of the highest in the industry, as is their
appreciate some elements of a company’s product to mark up.
consider buying it. Yet factories stand in line to take M&S work. To work for
The total value of garments consists of material Marks & Spencer is more than a lifetime commitment -
(fabrics, trim etc.) + design + production (sewing, it is a commitment you can pass on to your
knitting, finishing etc.) + logistics + marketing. Profits grandchildren. The rules are very simple. M&S
can be obtained wherever value is added to the chain. inspectors come into your plant and check it from top to
So the position in that chain has to be observed. bottom. What sort of quality do you produce? How old
Finding out where the highest added value is, can be are your machines? How are they maintained? Number
determined by answering questions like: of workers per lavatory? How clean are the lavatories?
Does the company have: How do you treat your workers? In short, are you the
• easy and economic access to fabrics and trim? type of factory Marks & Spencer wants to associate
• a design department? with?
• efficient production facilities and low labour costs? Provided you pass, they will give you a style, you make a
• logistical advantages to reach markets? sample and quote a price. They come back with a
• a brand identity? counteroffer so low it appears ridiculous. Then they show
you how you can make that style at their price and still
Depending on the answers, clothing producer can be make a profit. Perhaps you need new techniques; they
classified as follows: will teach you. Perhaps you need new equipment; they
• CMT or OPT producers will advise you, and in some instances even lend you the
• FOB producers money to buy the required machinery.
• Producers of private labels Once you are an accepted supplier, provided you keep
• Producer of own design, mainly using brand the faith, you can go on forever. To have Marks &
trademarks Spencer as a customer it is to have guaranteed profit.

A short description of these various producer types is *) derived form David Birnbaum: Global Guide, March
given below. Another classification used for producers, 2000)
besides producing own branded products is: full

79
FOB producers Producers of own design (brand trademarks)
These factories are able to operate with short lead times In higher segments or selected parts of the clothing
and operate best when specialising in simple products market brand trademarks are an important sales
such as casual pants, shirts and blouses. These factories argument. Branding promises a special design, quality
are capable of producing a decent sample after the first and exclusivity and appeals to the consumer’s personal
or second attempt. Depending on the relative abilities of style. Branding can also help differentiate products,
buyer and factory and the style’s degree of difficulty, establish consumer loyalty and secure a price premium
the buyer provides either a sample with pattern or a for products. Producers who want to work with their
detailed sketch with a spec sheet (giving size own brand have to fulfil several requirements. They
measurements) and tech sheet (giving seam types, need a technological knowledge of designing, pattern-
allowances etc.). As a rule, better organised importers making, grading of fabrics, distribution and should be
will provide patterns to less sophisticated factories, able to produce constantly high quality clothing. It may
unless the orders involve staple goods. be appropriate for producers to employ designers,
sometimes they may work with free-lance designers.
Private label producers They need to be up-to-date on fashion developments. A
The private label producer needs thorough technological high level of marketing expertise is necessary and
expertise, production experience and the ability to acquiring this expertise is essential for building and
access special trim or machinery, also grading of maintaining brands successfully.
fabrics. The greatest scheduling advantage offered by
this type of factory is flexibilty: in lead times, in In the next chapters, a distinction will be made between
production (modular teams), in minimum orders (for the several types of exporting manufacturers in
important customers); the customer can make changes developing countries as classified above. Eventually,
not only in size assortments, but even from one style to based on the internal analysis (chapter 11) exporters
another, up to the moment the fabric has physically can recognize which type they are representing. Unless
been spread on the cutting table. otherwise mentioned, the information in the next
The number of orders produced is limited only by the chapters is valid for all kinds of manufacturers in
size of the operation. A large factory is capable of sustaining their export activities. Of course, gathering
producing over 50-400 styles per month. information and knowledge is required for companies
intending to develop themselves, for instance from
CMT to FOB producer or from FOB to private label
producer, etc.

80
10 EXTERNAL ANALYSIS

Europe is a continent and not one market, but a (www.KeyNote.co.uk) and publishers like Textiles
patchwork of markets with different characteristics. For Intelligence, Retail Intelligence, Textil Wirtschaft and
that reason a selection has to be made. The general way Journal de Textile (see appendix 3.5). These statistics
is to choose for two countries: a primary and a and publications are rather expensive, availability and
secondary target country. For bodywear, a comparison costs can be found on the referred sites. It has to be
has to made based on the following factors: noted that official trade statistics can vary considerably
1 Economic stability: developments in gross domestic in products or product groups, in volume denominators
product, trade, labour force and unemployment, (weight and/or units), or absence of figures (secrecy)
wages, income, exchange rates etc. for competitive reasons.
2 Cultural and political climate, including language Another means to obtain insights into a market is
3 Geographical factors and climate measuring on production level. The local market
4 Demographic developments (total, by age groups, situation (apparent consumption) in a country is equal
by gender, number of households etc.) to production (at invoice value) plus imports minus
5 Size and developments of the market for bodywear, exports and eventually plus or minus changes in stocks.
if possible divided into segments or product groups The availability of production figures concerning
6 Development in total imports per country, per products or product groups is very limited and varies
product or product group, and area of origin. Import considerably per country.
penetration of total market size Another vital piece of information, besides knowing the
7 Characteristics of consumer demand size of the market, is the projected market development
8 Local distribution and trade for the coming years. In general can be said that
9 Customer needs and desires growing markets offer more possibilities and decreasing
10 Type and extent of the competition, competitive markets offer a limited profit potential. Much of the
offerings initial information about market size and developments
11 Market access, limitations on trade can further be gathered by using websites of:
• Trade fair organisers, in particular the site of the
The market information described in part A and B of German CPD: http://www.cpd.de and the two French
this market survey can be very useful as a starting point fairs in Paris (www.lingerie-paris.com) and Lyon
for your export market research. Where applicable, the (www.lyonmodecity.com), for other sites see
sources for this market information are also mentioned appendix 3.4.
in the specific chapters. • Trade press; to gather information about fashion
For more general information, the website of the EU shows, fabrics, designs etc. and to obtain inspiration,
statistics bureau Eurostat can be used: in particular by designers refer to
www.europa.eu.int/comm/eurostat Other sites for http://www.modeparis.com The website of Textil
general information are among many others: Wirtschaft http://www.TW-network.de is
www.odci.gov/cia, www.tradeport.org and recommended for international business and
www.worldchambers.com For a list of the European marketing information of clothing industry and trade.
national trade statistics bureaus, please refer to the More references on appendix 3.5.
Eurostat site. • Standards organisations (appendix 3.1) and trade
For more information about the bodywear market in the organisations (appendix 3.3).
EU, refer to websites mentioned in the following • Some providers of general information also have
paragraphs and appendices. specific descriptions of bodywear markets in some
EU countries, like www.tradeport.org
10.1 Market developments and opportunities • Finally, limited but essential information gathered
for bodywear from world-wide publications is delivered free by
http://www.just-style.com and
The size of the market is generally measured on http://bharattextile.com, while paid membership
consumer level (retail prices including VAT) and on gives even more information.
production level. An overview of clothing consumption
in the EU countries and more detailed figures for the Aspects to be considered for exporters of bodywear to
six major countries is given in chapter 3 of this survey. an EU country are:
These figures have been derived from national statistics 1 Selecting a target country is primarily based on
as far as available and from databanks supplied by factors as mentioned above, of which special
research institutes like Gfk, active in several EU attention has to be given to differences in total
countries (www.gfk.com), Mintel (www.mintel.co.uk), population, area, language, business practices etc.
Verdict (www.verdict.co.uk) and Key Note 2 Size of the clothing market and developments in the

81
 sectors per country or region. In general can be said Step 1: Prepare a list of your key competitors
that women’s bodywear (lingerie, foundations and Prepare a list of all the competition and then
hosiery) is the largest sector. Also, the women’s highlight who your main competitors are. To
bodywear market has been subject to the severest learn more about competition, you can do a
price competition as the mass middle market secondary research study of your industry and
becomes overcrowded. The growth will be modest ask customers and suppliers for their opinions.
for the coming five years.
3 Sizing systems vary per country or clusters of Step 2: Analyse the main competitors
countries. Sizes between some clusters of EU Ask customers about your competitors. If
countries vary: Germany, The Netherlands and possible, visit competitors’ companies to learn
Austria, France and Belgium, Spain and Portugal and how products are priced and distributed. You
the Scandinavian countries have their own systems, can prepare a list of your main competitors
just like in some individual EU countries: Italy and strengths and weaknesses.
the UK. Internationally operating countries mention
different sizes valid for different countries on a label Step 3: Assess whether new competition is likely to
and eventually on packaging. enter your market
4 In all major EU countries, market can be divided into Despite the enormous competition, the clothing
high, middle and low market segments with their industry is open to new entrants encouraged by
own specific distribution channels. However, the low threshold caused by relatively low
environmental, health and safety aspects, just like investments and quick-to-learn skills.
other requirements for market access, are valid for Constantly check with customers, suppliers and
all segments. your competition to see if they have heard of
5 New developments in fabrics resulting in any new businesses, which represent
introduction of new finishes, fabric types and fabric competition.
weights and new techniques and new materials In particular, attention has to be given to the
applied in bodywear products and new production consequences of the elimination of quota in
techniques. 2005 as described in chapter 9.2.

Some of these items are not relevant (3 and 4) or are Step 4: Discover where and how the competition is
partly relevant (2 and 5) for CMT or OPT producers. selling their products
You need to find out which trade channels are
After desk research, like studying all CBI and other used by your competitors, and why.
information on the subject, field research can be
planned in the form of an orientation visit to Europe. Step 5: Observe activities in the bodywear branch
This visit will have to include a leading trade fair, Of course, trade fairs, shows, seminars etc. can
fashion trade centres, shopping centres, and a number be helpful to get in contact with new customers
of appropriate prospective buyers (after making specific and learn about market developments. It can
appointments in advance). however also be used to find out more about
competition. If you sell bodywear, take the time
10.2 Competitive analysis to attend trade fairs to see what your
competition is like.
Opportunities for all types of exporters in developing
countries still remain, in particular as long as increased All steps can be considered, varying from brief (for
attention is given to quality and reliability in deliveries. CMT/OPT producers) to extended (for own brand
Effective competition by developing countries requires producers). However, for all types of companies
knowledge of the legal, technical, quality and fashion information about competition on country level (as
requirements. In addition, they must make resources discussed in chapters 4, 5 and 9) as well as on company
available, not only to monitor and understand level (own research) is important.
developments in the target countries, but also to call in
test laboratories to ensure that quality requirements are 10.3 Sales channel assessment
strictly met.
In general, it can be said those companies, which are Having assessed the prospective markets and market
continually adapting new technologies and have the segments, it is now also important to understand the
advantage of low production costs, have definite trade structure and supply chains supplying these
advantages. Another advantage applies to exporters market segments. After the assessment of the exporter’s
from economically and politically stable developing capabilities, the exporter is able to determine the most
countries. suitable sales channel.
Below, we give a step-wise approach to leaming more
about your competitive environment.

82
Foreign market entry strategies can be divided into networks have become specialised logistic service
production and marketing entry strategies. The various suppliers.
forms of production entry strategies are described in
chapter 4.2 of this survey. Marketing based entry The choice of an importing retailer for a specific
strategies can be divided into contacts with foreign supplier depends on:
distributors, whether or not via agents and looking for • purchase price;
co-operation with trade partners or organisations in • technological capacity;
your home country. Trade channels in the target country • distribution costs;
are discussed in chapter 7 of this survey, while the type • reliability regarding just-in-time deliveries;
of exporting manufacturers is described in the • service by the producer;
introduction of this part C. • quick response.
Intermediaries on the bodywear market and their
foreign policy: In the matrix below, a selection is made of the most
• Importing manufacturers are looking for relocation common choices of trading partners for each kind of
of the most labour intensive piecework (OPT or (potential) exporting company:
CMT) or relocate total production including material
purchasing (FOB) or sourcing additional products. Small, inexperienced exporters, who merely
• Agents are intermediaries between manufacturer and manufacture as their core business may prefer to deal
retailer, receiving a commission from the former. with a domestic partner for their exporting or to join
Capital requirements are limited because this other exporters. In any case advantages (e.g. lower
cooperation is based upon commission; however, risks, export experience) and disadvantages (e.g.
agents mainly work with brand names and are dependency, lower profits) have to be considered
therefore less interesting for most exporters in carefully.
developing countries.
• Wholesalers import garments, made according to 10.4 Prices and margins
their specifications, either or not provided with
private labels, or buy ready-made garments. 10.4.1 Trade margins and prices
Cooperation with an established wholesaler can The margins at the various different levels of
ensure better contact with the distribution channels distribution are influenced by six factors and are
on the export market. The wholesaler has a thorough different for each product/market combination. These
knowledge of the market, follows the market closely factors are: degree of risk; volume of business;
and has, via his salesmen, close contact with the functions or marketing services rendered; general
distribution channels. The capital requirements are economic conditions (booming or depressed business);
limited because the wholesaler holds his own stock competition and exclusiveness.
at his own risks. Disadvantages are the missing of High-risk, low-volume, service-intensive products
direct contacts with the retailers (contacts go through require different margins to low-risk, high-volume
the wholesaler) and possible lower margins for the standard products. It is impossible to draw up a
exporter. schedule of actual margins for each and every pro-
• Big retail organisations are the dominant force in the duct/market combination. Even within the same type of
clothing business. Just like wholesalers, retail combination, different importers employ different
organisations import garments, made according to margins, due to variation in economic conditions.
their specifications either or not provided with The effect of low, medium and high margins on
private labels or buy ready-made garments. They consumer end price, based on one CFR (cost and
control their own stocks daily, amongst others by freight) price for three different products, will be shown
using barcode systems; this means a tendency to in table 10.1. A multiplier of between 2.1 and 2.7 on the
integration of production, buying, distribution and manufacturer’s or importer’s price should be used to
selling. They want to diminish the time used in the calculate an appropriate final consumer price. Caused
clothing column, from production to selling. The by factors like increasing competition at all levels in the
retailers in fact reduce the number of distribution distribution column, further concentration and
networks available to the producers. The remaining integration, the factor has decreased in the last decade.

Possible trading partner: Manufacturer Wholesaler Retailer Agent

Exporting company:
CMT producer X - - -
FOB producer X X X -
Private label producer - X X -
Own design (brand trademarks) producer - - X X

83
 Table 10.1 Calculation schedule: margins

Low Medium High

CFR Rotterdam/Amsterdam 100 100 100
Import duties * * *
Charges on CFR basis:
- handling charges, transport/
insurance and banking services 7 7 7
107 107 107
Wholesaler’s margin (20/25/30%) 21 27 32
128 134 139
Retailer’s margin (50/60/70%) 51 67 90
- net selling price 179 201 229
Value Added Tax (VAT)
(19% of net selling price **) 34 38 44
- gross selling price (consumer price) 213 239 273

RATIO CFR/CONSUMER PRICE: 2.1 2.4 2.7

*) import tariffs vary from 0 to 12.2 percent of CFR value (see table 9.1)
**) In practice, garment retailers calculate a 90-120% mark-up, incl. VAT. In practice, an important part of the assortment has been
priced-off. In this calculation, the VAT tariff valid for The Netherlands is used, but note that this tariff varies per EU country.

Elimination of the wholesaler, for instance, can lead to are given for spring/summer 2003. The assortment of
a lower multiplier used by clothing multiples, discounters (Hans’ Textiel, Zeeman) is limited; specialty
department and variety stores and mail-order stores, like Livera and Hunkemöller, have more
companies. extensive ranges with respectively more and lesser
(higher-priced) branded goods. Variety stores (Hema)
This means that exporters’ CFR prices should be in the limited assortment, excepted bras and hosiery.
range of 30-40 percent of the final consumer price
including import duties. In absolute terms, it is more Price is an important selling factor, especially in the
attractive for an exporter to operate in the medium and lower segments of the clothing market. In the higher
high market. Thus the average bodywear retailer marks segments (higher added value) factors like quality and
goods up by 90-120 percent of his buying price, with fashion are more important than price. In the lower
selected goods retailing up to 150 percent higher than segments of the clothing market, retailers have little
buying prices. room to manipulate prices because competition is very
fierce and margins are low.
Although levels of wholesaler and retailer costs often
shock suppliers, these intermediaries do not generate A good way to obtain information about prices and
excessive profits. While purchase costs have fallen price levels in the EU is by visiting one of the major
since manufacturing in low cost countries started to trade fairs or trade centres. Prices of competitors can be
gather pace, other costs have risen and increasing found by browsing their Internet sites or looking for
competitive pressures have kept profitability down. general sites like http://www.globalsources.com or
Bargain sales are growing in importance in all segments http://www.alibaba.com
of the clothing market and in all major EU countries. Window-shopping in the prospective market place, at
Bargain sales generally threaten margins but are several retail shops is another good way of getting
considered as inevitable because of the growing information about prices at retail or consumer level, but
dynamics of the clothing market. Rapidly changing also about fashion, colours and qualities.
fashion makes clothing assortments “out-fashioned”. Alternatively, an impression of average prices in EU
Bargain sales are then the only means to get back a part countries can be formed by browsing through the
of the purchase price even if they are sold below the catalogues of mail-order houses on Internet and on sites
usual retail price. of specialty chains, like Hunkemöller (for addresses
see appendix 3.2). Comparisons can also be found in
The market is intensively competitive and prices vary the prices given in catalogues from large department
widely according to the product and type of outlet. stores or on company web sites.
Below, an overview is given of (average) retail prices in
The Netherlands. Retail prices include VAT (19%) and

84
 Table 10.2 Average retail prices for some selected bodywear items in The Netherlands, spring/summer 2003

Average Remarks
price in €
Men’s underwear
Underpants, briefs *) 4.05 Discounters 2.80; Variety stores 4.90; Mail-order 3.30; Specialty 9.50 (Sloggi)
Boxer shorts 7.10 Discounters 3.90; Variety stores 9.20; Mail-order 6.00; Specialty 12.50 (Schiesser)
Undervests 5.60 Discounters 4.20; Variety stores 4.70; Mail-order 6.20; Specialty 10.10 (Sloggi)
Pyjamas 19.00 Discounters 11.90; Variety stores 14.90; Mail-order 19.00; Specialty 29.50 (Sloggi)
Swimwear/short 19.70 Discounters 12.00; Variety stores 18.50; Mail-order 22.00; Specialty 25.00 (Adidas)
Bathrobes 30.50 Discounters 21.00; Variety stores 29.00; Mail-order 31.00; Specialty 69.90 (Seahorse)
T-shirts 6.90 Discounters 4.80; Variety stores 7.00; Mail-order 6.10; Specialty 13.50 (Sloggi)
*) excl. boxer shorts

Women’s underwear
Briefs 3.70 Discounters 3.15; Variety stores 5.50; Mail-order 3.30; Specialty 7.00 (Sloggi)
Undervests/singlets 6.30 Discounters 5.90; Variety stores 6.90; Mail-order 6.40; Specialty 13.90 (Sloggi)
Underwired bras 12.50 Discounters 8.00; Variety stores 11.50; Mail-order 12.60; Specialty 14.50 (Sloggi)
Seamless bras 9.90 Discounters 7.00; Variety stores 8.20; Mail-order 9.00; Specialty 13.50 (Sloggi)
Set (bra+brief) 15.80 Discounters 10.00; Variety stores 15.40; Mail-order 16.00; Specialty 21.00 (Sloggi)
Bathrobe (terry) 25.50 Discounters 20.00; Variety stores 23.00; Mail-order 22.00; Specialty 69.90 (Seahorse)
Nightshirt 16.50 Discounters 11.00; Variety stores 13.50; Mail-order 16.00; Specialty 24.95 (Esprit)
Pyjama 19.00 Discounters 12.50; Variety stores 17.00; Mail-order 14.00; Specialty 39.95 (Esprit)
Swimsuit 31.50 Discounters 15.00; Variety stores 22.00; Mail-order 30.00; Specialty 34.95 (Esprit)
Bikini 26.70 Discounters 13.00; Variety stores 21.00; Mail-order 25.50; Specialty 42.95 (Esprit)

10.4.2 Payment and delivery terms 10.5 Product profiles

The contract is the starting point of trade, also for
international business transactions. Around the contract The profiles of a limited selection of products highly
revolves a series of connecting but distinct relevant for exporters in developing countries are
relationships, including transport arrangements, cargo elaborated in this section. The products concerned are
insurance, Customs formalities and payment swimwear, T-shirts and bras. These product profiles
procedures. For a description of methods of delivery stand model for the product profiles the exporter should
and payment, we refer to Incoterms 2000 (published by develop for his own (prospective) export products. By
the World Chamber of Commerce) and CBI’s Export constructing an overview of the most important
Planner. products, exporters are better able to determine which
Letters of credit, which offer basic protection to a products to export to the EU.
developing country exporter, and bills of lading, which In next product profile, swimwear will be restricted to
serve as documents of title, a contract of carriage and a the leisure segment (recreation and pleasure)). This
receipt of goods, are all universally used in the clothing means that segments like active sports and the related
trade. In other cases, it has to be noticed that terms of developments in fabrics, high-tec swimsuits etc. will
payment vary per country and are around 90 days or not be discussed. However, there is a trend in the
longer in Italy and Spain, which is much more lengthy swimwear market that high performance fabrics, which
than in other major EU countries. were originally designed for competitive swimmers,
In many cases, the importation of clothing products is will be adopted for use in the manufacture of
carried out on a CFR (cost and freight) basis. Under recreational swimwear.
these terms, the seller or exporter clears the goods for
export, pays the freight charges and delivers the goods
on board ship. The risk passes to the buyer when the
goods cross the ship’s rails in the port of departure. The
seller undertakes to provide the buyer with a negotiable
bill of lading that can be endorsed to transfer ownership
of the goods or pledge them to a financing bank. The
insurance component is handled by the importer in the
EU, primarily to facilitate payment in the event of a
claim. Other conditions in use for ready-made garments
are CIF (cost, insurance and freight) and FOB (free on
board).

85
Product profile: SWIMWEAR

Naming
Swimwear for women includes: swimsuits and bathing suits (one-piece) and bikinis (two-piece). Swimwear for men includes
swim trunks (short legs) and swim/surf/beach shorts (longer in length).

Market requirements
Just like for other bodywear articles, there are no general (EU) standards for swimwear. Most of the importers work with
certain minimum requirements relating to materials and manufacturing. The minimum standard and the test methods are
described for fabrics and threads.

For example: maximum shrinkage of woven and warp-knitted materials 2% and for 100% cotton, linen, ramie or viscose 3%
and max. elongation of 2% respectively 3% and for weft-knitted materials a max. shrinkage of 6% and max. elongation 2%; the
sum of width and length shrinkage must not exceed 8% (ISO 3759, 5077 and 6330). There will also be additional requirements
concerning colour fastness to light (ISO 105 B02), sea water (ISO 105 E02) and chlorinated water (ISO 105 E03).
For example a description of manufacturing requirements can include among others: a minimum seam allowance for closed
seams in woven fabrics 0.7 cm. For closed seams in stretch materials 0.4 cm; a minimum stitch density for woven fabrics 4
stitches per cm. Minimum stitch density for knitted fabrics is 5 stitches per cm.
For swimming purposes the following requirements are valid: a small absorptive capacity (quick drying after usage); close-
fitting; durable elasticity; masking power (unless otherwise required) and as mentioned above colour fastness to light,
chlorinated water and seawater.

Styling requirements Materials Main suppliers in order of

Bikinis have bandeau or strap tops, Current styles contain polyamide importance
several kinds of bikini tops, like the (nylon), elastane (spandex) and The 10 leading countries supplying
push-up, halter, triangle (of which the polyester. Because of their stretch EU imports (in terms of volume)
cups can be replaced), and the under- (several times their own length) were in 2001: China, Tunisia,
wired one have remained popular. resistance, elastane fibres have largely Germany, Italy, France, Hong Kong,
The bikini bottom has usually a high- replaced natural and synthetic rubber Belgium, The Netherlands, Romania
cut leg line and can be anything from fibres. Polyamide yarns are sold under and Thailand. Belgium and The
a string to a thicker side panel but also brand names such as Tactel, Supplex Netherlands play an important role
with short legs. and Antron. Elastane fibres include because of their transit-trade
Besides one-piece or two-pieces Lycra, Numa, Spandelle and Vyrene. function. More detailed information
swimsuits there is the tankini, a bikini Mostly used are the blends polyamide/ can be found in chapter 5 of this
bottom with a camisole top and elastane 90/10 and 80/20, but also market survey.
eventually a bikini top. It offers the cotton/polyamide 90/10.
look of a one-piece or two-piece suit, Knitted swimwear accounts for 75 Brand names
depending on the length of the top and percent of total sold items, the World-wide operating swimwear
how it is worn. remaining 25 percent is woven. brands come from manufacturers
Matching accessories like pareo, like Speedo, Arena, Adidas, Tyr,
blouses, wrap-around skirts etc. have Maintenance and durability Nike, (not exhaustive)
become more popular. Wash and care instructions are Fila etc. General clothing suppliers
One-piece bathing suits may include required as well as the label indicating with swimwear in their assortment
correction of the belly and support for the country of origin. Most claims are Mexx, Diesel, Esprit, etc. and
the breasts. arise from the incorrect appliance of this is valid too for bodywear
Solid colours continue to be more the wash care instructions. suppliers like Triumph, Schiesser,
popular than prints. Metallic colours, It is advisable to indicate in your care Björn Borg, Van Laack, Punto
stripes and florals remain strong. label only low temperatures for Blanco, Hom, Mey, Wolford etc.
Another “not new, but now hot” idea is washing (hand wash only) in order to Private labels are among others:
selling tops and bottoms separately. It avoid claim discussions. Hennes & Mauritz, Zara, C&A,
favours women without uniform sizes Marks & Spencer, Etam etc.
and it offers the opportunity to mix
and match colours and patterns.

continued

86
continue swimwear

Wearing properties Applications Packing

Polyamide yarns create fabrics, which Swimwear is used in different Swimwear units are normally
are lightweight, durable and quick circumstances, like indoor swimming packed in a recyclable or
drying. When combined with stretch where water often contains chlorine biodegradable plastic bag per unit;
fibres such as elastane they provide a and outdoor swimming in salt seawater 36 bags in an inner-box and 4 inner-
comfortable fit, as well as shape or in lakes, rivers etc. boxes in an export carton box.
retention and freedom of movement. The competition swimmer (amateur or Sometimes 10 units are packed in a
Body corrective aspects require very professional) requires the latest plastic bag, but other variations can
tight swimwear. techniques, while the recreational also be required by the importer.
swimmer is more oriented on aspects The packing bag should be marked
Sizes like design, style and fashion. with the green dot label for
Standard clothing sizes are usually Germany.
used for women’s swimwear (36-50) Market structure Note: German buyers have the right,
and sometimes also a cup size. Girls’ There used to be a division between according to domestic law, to claim
swimwear is usually indicated by the casual wearer, who bought mainly back a certain % of the FOB value
height sizes. for design, style and fashion and if swimwear is not supplied in this
The sizes of swimwear for men and tended to purchase in the pre-summer way.
boys are indicated by clothing sizes period, and the serious amateur Prices
46, 48 etc. or underwear sizes 4, 5 etc. swimmer who purchased all year The enormous variety in swimwear
In some cases also sizes XS to XXL round. makes it impossible to give an
are used. Consumption as well as imports acceptable price for manufacturers,
fluctuated because consumer buying because it depends on so many
Labelling behaviour is influenced by weather factors. A rough indication can be
Labelling indicating care instructions circumstances and to a lesser degree derived by backward pricing.
have to be affixed according to the by fashion influences. Competition is
international symbols. strong, many globally operating
Maximum washing temperature in ºC, manufacturers of swimwear have to
do not use chlorine-based bleach, compete with each other and in the
ironing at desired sole-plate recreational or leisure sector with
temperature, dry cleaning circle and underwear, outerwear and sportswear
tumble drying have to be mentioned manufacturers, too. Many retail
on a label, as well as size and fibre organisations have private labels
content. and/or manufacturer’s brands in their
assortment.
The biggest consumption markets are
Italy, France, Germany, UK, Spain and
The Netherlands.

continued

87
continue swimwear

Environmental influences
These influences are strongly increasing due to the awareness of buyers, end consumers, company regulations and domestic
legislation.
Make sure, when your products are supplied to your importer, that they are accompanied by an “AZO safe” declaration. This
means that the dyes used for the fabrics have been tested by an accredited test institute and that no hazardous substances
according to the Commodity Acts in Germany, The Netherlands and France, were found in the dyes.
According to the criteria of EC Directives 67/548 and their updates, several dyestuffs are classified as carcinogenic, sensitive or
allergy causing and are forbidden. Press buttons, zip fasteners etc., which come into contact with the human skin for a longer
period must not release more than 0.5 µg nickel per cm2 per week.

How to improve quality

All seams in knitted fabrics must be sewn with at least a 3-thread overlocker and all seams must be finished off securely. Needles,
machine settings and yarn count must be such that damage to the material and seams does not occur.

Product profile: T-SHIRTS

Naming
The traditional cotton T-shirt derived its name from the form of the shirt including the (short) set-in sleeves and high round
neck forming a T-shape. The fabrics used were (weft) jerseys or single knits.

Market requirements
Just like for other bodywear articles, there are no general (EU) standards for T-shirts. Most of the importers work with certain
minimum requirements relating to materials and manufacturing. The minimum standard and the test method are described for
fabrics and threads. For example: maximum shrinkage of 6% and max. elongation of 2% (ISO 3759, 5077 and 6330), just like
colour fastness to light, washing etc. as well as eventually to rubbing printed materials.For example, a description of
manufacturing requirements can include among others: a minimum stitch density 5 stitches per cm. A special factor can be the
minimum neck opening (stretched): up to and including size 92: 54 cm; from size 92 up to and including 140: 56 cm; larger
sizes: 60 cm. Neck openings can be reduced by using Lycra ribbing.

Styling requirements Maintenance and durability Brand names

The basic T-shirt in uni-colour, with or Wash and care instructions are Manufacturer’s brands from the
without pocket, is still one of the required as well as the label indicating sector jeans: Levi’s, Diesel;
popular items, thanks to its the country of origin. Most claims bodyfashion: Schiesser, Hanes;
multifunctionality. arise from the incorrect appliance of outerwear: (not exhaustive)
Varieties in necks are besides the high the wash care instructions. It is Mexx, Benneton, Esprit; sportswear:
round neck among others V-neck, (low advisable to indicate on your care Nike, Adidas; designers : Calvin
round) boot neck, turtleneck, polo label only 60º C for washing of white Klein, DKNY; private labels:
neck or slit neckline with buttons. and 40º C for washing of colours, in Hennes & Mauritz, C&A, Marks &
Short or long sleeves or without order to avoid claim discussions. Spencer, Zara.
sleeves (singlets). Besides a variety in
uni-colours, also printed (including
slogan, cartoon portraits, names etc.)
or embroidered shirts are required, just
like horizontal stripes in various
widths (bi-coloured or multi-
coloured).

continued

88
continue t-shirts

Wearing properties Applications Main suppliers in order of

For many purposes, oversized T-shirts T-shirts can be used for many importance
are preferred by European importers purposes. Functions vary from The 10 leading countries supplying
and consumers with the exception of outerwear especially in summer EU imports (in terms of volume)
the fashionable fitted T-shirt for young months, underwear especially in were in 2001: Bangladesh, Turkey,
people and underwear. winter months, part of a sport-outfit, Germany, India, Morocco, Greece,
to nightwear. Promotional aspects are Portugal, Belgium, China and
Sizes also important from high (image wear) Mauritius. Imports from Turkey,
In general the sizes XS, S, M, X , XL to low (usage for one event) quality. Belgium and China fell compared
and XXL are used for men and for with 1999, while imports from the
women, whether or not combined with Market structure other countries mentioned increased
the corresponding standard outerwear Consumption as well as imports has considerably. Belgium and The
sizes. For children’s T-shirts, standard increased. T-shirts are supplied all year Netherlands (11th) play an
outerwear sizes are used. round. Competition is strong, almost important role because of their
all manufacturers of underwear, transit-trade function. Newcomers
Labelling outerwear and sportswear have T-shirts were Djibouti, Lesotho and Cape
Labelling indicating care instructions in their assortment and retail Verde. Fast growing imports came
has to be affixed according to the organisations have private labels as from Romania, Pakistan, Sri Lanka,
international symbols. Maximum well as manufacturer’s brands in their Thailand, Lithuania, Myanmar,
washing temperature in ºC, do not use assortment. The biggest consumption Vietnam, Philippines, Albania,
chlorine-based bleach, ironing at markets are Germany, UK, France, Slovakia, Macedonia, Brazil,
desired sole-plate temperature, dry Italy, Spain and The Netherlands. Honduras, South Africa, Mexico, El
cleaning circle and tumble drying have Salvador, Brunei and Haiti.
to be mentioned on a label, besides
size and fibre content. Packing
T-shirts are normally purchased
Materials container-wise and are packed in
The knitted fabrics cover, besides the boxes depending on the buyer’s
single jersey, also fine rib, interlock wishes of 150 shirts in a box and 30
and heavy-jersey. Cotton is still most shirts in a recyclable or
popular, however, many other fibres biodegradable plastic bag. Total
(mainly man-made fibres and to a weight per box may not exceed 25
much lesser degree wool and silk) are kg. The packing bag should be
used including blends of marked with the green dot label for
cotton/polyester. Stretch ability can be Germany. Note: German buyers
increased strongly by the usage of 5- have the right according to domestic
8% Lycra. The quality of materials law to claim back a certain % of the
depends on: weight of fabric (125-130 FOB value if T-shirts are not
gr/m2 is a reasonable quality); carded supplied in this way.
or combed; tube or seamed.
Prices
An acceptable CFR price for a white
T-shirt, small sized, cotton 120/140
gr-m2, single knit, tube/combed and
rib Lycra neckline is approx. € 2-3.

89
continue t-shirts

Environmental influences
These influences are strongly increasing due to the awareness of buyers, end consumers, company
regulations and domestic legislation. According to the criteria of EC Directives 67/548 and 76/769 and their updates, several
dyestuffs are classified as carcinogenic, sensitive or allergy causing and are forbidden. Press buttons, zip fasteners etc., which
come into contact with the human skin for a longer period must not release more than 0.5 µg nickel per cm2 per week. CBI’s
AccessGuide can provide detailed information.

How to improve quality

The requirements for T-shirts are minimum requirements. Advice for stitching: to avoid puckering, avoid
blunt needles, apply the correct thread tension on the operating machines, avoid leakage of machinery. Stay in close contact
with the fabric supplier to avoid use of wrong fabrics. Laying of fabrics: make sure the patterns are laid in one direction to
avoid colour differences. Cutting: to avoid delay and quality decrease in production, make sure patterns are perfect. The origin
of many problems (shrinking etc.) are caused by too great tension on knitting machines and on sewing machines, but can be
avoided by relaxed layering.

Product profile: WOMEN’S BRA’S

Naming
Bras (short for brassieres) are defined as a close-fitting support for the breasts. Bras consist of two cups and in most cases are
held in place with straps over the shoulders and elastic across the back.
The major criteria for bras style are the following aspects:
fronts, which goes from full breast cover to demi or partial cover, and to plunge with a deep front opening;
underwire, with a curved wire under the breasts for added support and to keep the breasts in place;
support, which goes from light control to firmer control. Sport bras and maternity bras are examples of firm control;
padded, additional fibrefill or other materials or techniques (water/gel/air/foam) added to the cups give more fullness to the
wearer;
seamed or seamless, respectively with seams running through the cup (gives more support) and cups that have been molded
into a permanent shape and fit (gives a smooth and almost transparent look under clothing).

Market requirements
Just like for other bodywear articles, there are no general (EU) standards for bras. Most of the importers work with certain
minimum requirements relating to materials and manufacturing. The minimum standard and the test method are described for
fabrics and threads.
For example: maximum shrinkage of 6% and max. elongation of 2% (ISO 3759, 5077 and 6330), just like colour fastness to
light, washing etc. as well as eventually to rubbing printed materials. For example a description of manufacturing requirements
can include among others: a minimum stitch density 5 stitches per cm.

Styling requirements Labelling Main suppliers in order of

The various styles at the moment are Labelling indicating care instructions importance
(not exhaustive): underwired bra, has to be affixed according to the The 12 leading countries supplying
push-up bra, décolleté bra, balconette international symbols. EU imports (in terms of volume)
or shelf bra (other words for demi cup Maximum washing temperature in ºC, were in 2001: China, Indonesia,
bra), racer backs (with straps meeting do not use chlorine-based bleach, Tunisia, Hong Kong, Turkey,
in a V-shape on the back between the ironing at desired sole-plate Austria, Thailand, Bulgaria,
shoulder blades), strapless etc. temperature and tumble drying have to Morocco, France, Romania and The
Lace and embroidery are used to give be mentioned on a label besides size Netherlands.
a more luxurous character to the bra. and fibre content. The Netherlands plays an important
Additional straps gives the possibility role because of its transit-trade
to change the bra in several styles like function. More detailed information
strass, stans, crossed, halter and can be found in chapter 5 of this
crossed over besides strapless, while survey.

continued

90
continue bras

transparent straps can give a strapless Maintenance and durability Brand names
effect. Wash and care instructions are Well-known manufacturer’s brands
required as well as the label indicating are: Playtex, Triumph, Schiesser,
Sizes the country of origin. Most claims Dim, Chantelle, Barbara, Warner’s,
A number and a character indicate arise from the incorrect appliance of (not exhaustive)
sizes of brassieres. The number the wash care instructions. Lovable, Pastunette, Marie Jo etc.
indicates the girth of the bra and the It is advisable to indicate in your care Private labels are among others:
character the cup depth. The under label only 60º C for washing of white Etam, Hennes & Mauritz, C&A,
breast size and breast size also have to and 40º C for washing of colours, in Marks & Spencer, Hema, Zara,
be given. order to avoid claim discussions. Hunkemöller.
Characters varies from AA until H, of
which A until E are most common. Applications Packing
The numbers vary per country and are General applications of the bra are: Bras with a brief in a set are packed
mentioned in chapter 9.1.3 of this support, correction and styling aspects in a recyclable or biodegradable
survey. like colour and material. plastic bag; 50 sets or bags are
Specific bra types are chosen for packed in a carton box. In case of a
Materials special occasions, like sports bra, lower value per set (for instance less
Besides 100 percent cotton we see a maternity bra, nursing bra etc. than € 4.50) 2x50 sets are put in a
variety of blends in several weaves box.
(sateen, velours etc.) or crocheted Market structure Bras (not part of a set) are often
(lace). For instance: cotton/elastane Competition is strong, many collected in a bundle of six by an
95/5, cotton/polyamide/ elastane manufacturers of underwear and elastic band and packed in a plastic
83/10/7 or polyamide/elastane 88/12, sportswear and to a much lesser bag.
90/10, 92/8, 95/5 etc. Lace bras can be degree general clothing brands have Higher priced (brands) products are
made of polyester/ polyamide/elastane bras in their assortment. Retail often put on a brace or individually
60/34/6 or polyamide, elastane/ organisations have private labels as packed whether or not in a set.
rayon/cotton in several compositions well as manufacturer’s brands in their The way of packing can vary
between the margins 66-80/ 10-12/ 9- assortment. strongly and depends on buyer’s
18 and 2-4. The biggest consumption markets are wishes.
Germany, UK, France, Italy, Spain and
The Netherlands. Prices
An acceptable CIF price for a basic
underwired bra is approx. € 2.75.

continued

91
continue bras

Environmental influences
These influences are strongly increasing due to the awareness of buyers, end consumers, company
regulations and domestic legislation.
Make sure, when your products are supplied to your importer, that they are accompanied by an “AZO safe” declaration. This
means that the dyes used for the fabrics have been tested by an accredited test institute and that no hazardous substances were
found in the dyes.
According to the criteria of EC Directives 67/548 and their updates, several dyestuffs are classified as carcinogenic, sensitive or
allergy causing and are forbidden. Press buttons, zip fasteners etc., which come into contact with the human skin for a longer
period must not release more than 0.5 µg nickel per cm2 per week.
CBI’s AccessGuide can provide detailed information.

How to improve quality

The requirements for bras are minimum requirements. Advice for stitching: avoid puckering, avoid blunt
needles, apply the correct thread tension on the operating machines and avoid leakage of machinery. Advice for cutting: avoid
delay and quality decrease in production, make sure patterns are perfect.
Bra cups and stiffeners must be smooth-edged, and must be securely attached in the correct position. Embroideries, lace and
fancy stitchings must be compatible with the shell material and must be securely attached.

92
11 INTERNAL ANALYSIS: COMPANY ASSESSMENT

It is one thing to discover attractive opportunities in the 11.1 Manufacturing

EU; it is another to possess the necessary competencies
to succeed in converting these opportunities into Elements to be assessed include product characteristics,
business. production facilities, production process, production
A (potential) customer analysis, a competitor analysis capacity, production flexibility, quality and service.
and a (company) self analysis have to be made. The These aspects have to be compared with major
internal or self-analysis is an internally focused competitors.
examination of a manufacturer’s strengths and
weaknesses. Production facilities
These strengths and weaknesses indicate how well the Important differences in equipment exist for
company can seize opportunities and avoid harm from manufacturing woven garments and for knitwear (flat or
threats in the environment. The competitive strength of circular knitted), while special equipment can
the company has to be measured in relation to the other sometimes be needed for specific products or
suppliers on the market, just like customers’ attitude to treatments (printing, dyeing, molding, finishing etc.).
the company and to the other suppliers, as can be Sometimes, the customer will send a buyer or a
illustrated below. Competitors and customers (buyers) representative to the supplier to visit the mill where the
have to be considered in the internal analysis because a products in question are or may be manufactured, in
manufacturer’s strengths and weaknesses are defined as order to undertake a supplier’s audit and/or a quality
its capabilities relative to them. control audit. In a supplier’s audit, a description is given
of the type of products, number, type and age of the
knitting, cutting and sewing machines. A quality control
audit implies a description of the control procedures
Company including employees, laboratory, system, packing and
storage.
Most buyers demand certain minimum standards, which
also guarantee an acceptable quality level. Buyers in the
Competitors Customers
woven sector and in the flat knitting sector are more
interested in the technical infrastructure of their
suppliers than in the circular knitted sector. In the latter
case, buyers are more concerned about the continuity
and fastness of the dyeing process and the competence
The most critical aspect of the internal analysis for a of the technicians. It has to be noted that the latest high-
bodywear manufacturer is to determine his unique tech equipment is not necessarily a guarantee for
capabilities. With a thorough understanding of its flexibility and quality.
unique capabilities, the company can invest in
opportunities that exploit its strength and avoid those Production process
that emphasize its weaknesses. These analyses are This process starts at the availability of clothing fabrics
focused on the strategic direction that competitors and and of linings, haberdashery, trimmings etc. (except
customers are likely to pursue and on their ability to when manufacturing is limited to CMT activities) and
successfully implement their strategy. By understanding ends with special treatments after manufacturing. The
competitors in depth, a manufacturer can develop a production process consists of several operations, for
strategy to compete effectively against them now and instance for a bra: cutting (15-25 percent of work),
improve his ability to anticipate competitors’ future laminating (5-15 percent), molding (15-25 percent) and
actions. Understanding of customer requirements sewing (40-60 percent). Sewing requires the most
derived from customer strategy is of great significance, labour time, while molding requires little skill.
not only with respect to the present order but also and Buying of fabrics abroad by producers, who are
more particularly to any future purchase. exporting on other than a CMT basis, can sometimes be
confronted with long distances, minimum order sizes,
Each (potential) exporting company needs to review its the risk of delay in delivery times etc., while lead times
manufacturing, logistical, marketing, financial and are shrinking world-wide in the clothing market.
organisational competencies. This assessment gives an Design, fabric and colour changes are being made
overview of its strengths and weaknesses, of which can frequently. The majority of orders placed is urgent. This
be derived a distinctive and, more important, a provides an opportunity for manufacturers who can
competitive advantage. meet market demands for short lead times, short runs,
quick response and flexible manufacturing. Quick

93
response capabilities also provide opportunities further and all that with a minimum of costs. Particularly for
upstream. Bodywear manufacturers able to offer quick fashion articles, that is of the upmost importance, just
response will themselves need a flexible and responsive like regularity in deliveries and there certainly may not
service from their fabric, yarn and other component be any delays.
suppliers and dyers and finishers. The clothing chain goes from yarn to weaving to textile
finishing to clothing production and to distribution and
Production capacity selling. This whole cycle (theoretically) lasts 66 weeks
Selling a product internationally (as well as (waiting for orders, waiting for production schemes and
domestically) requires the capacity to produce or waiting times between stages of manufacturing
manufacture the product. The company has to possess included). The consequences of such a long cycle are:
the space and equipment needed to manufacture for the too many products and capital bound in stocks, the
specific countries to which it is selling (they have their possibility of price decreases in the meantime and the
own product standards and regulations) and will missing of sales because the right products are not
eventually require a minimum order from the available.
customer(s). The cycle in fact consists of only 11 weeks of
If the company is already selling domestically, it is production; the rest of the time is reserved for
necessary to investigate if the production capacity to storing/waiting/transport. By shortening this cycle, for
handle and store additional orders is available. instance by a faster exchange of information, it should
Expanding into the international marketplace will result be possible to follow trends more quickly.
in a higher number of units to manufacture. The
exporter has to ask himself if this increase in Retailers in clothing are often confronted with variation
production will affect quality of output. in clothing behaviour and with rapidly changing trends
in fashion. Therefore retailers demand shorter delivery
Quality times from the clothing producers, so that especially for
The buyers prescribe the functional and intrinsic quality high-fashion products this is essential. In general, the
of the products. ISO 9000 norms or other quality retailers in the clothing branch try to shift the risks of
standards of the specific countries need to be adopted market fluctuations to the producers by ordering small
by the manufacturer for long-term growth in the series. Because of the tendency to order smaller series,
market. There are many dyes, metals and other the order frequency is increasing and retailers tend to
substances in fabrics, buttons etc., which are banned (or use more than one supplier. The retailers also tend to
allowed to a certain amount) in the EU and are directly have a greater influence on production and transport
linked to the parameters of performance and functional and mostly have their own designers. The number of
quality. Quality is an essential prerequisite being taken rush orders is also increasing.
for granted. Without ensuring quality, there is no
likelihood of entry or acceptance on the market(s). That requires more flexibility and a well-organised
logistic organisation from the side of the producers.
Technology Automatisation is one of the answers for production
An efficient information technology system is one of firms to fulfil the requirements of the logistic process.
the important features for suppliers when the variety of It especially takes place in activities with a relatively
products and the need for communication increase. The high know-how content (like designing, cutting, etc.).
link between the design department and the production There is not so much automatisation in the more simple
unit has become extremely important (Computer Aided activities. Most of these activities concern sewing and
Design systems). the moving of materials/products. Introduction of new
A production plant, which is not properly equipped and technologies in the clothing industry is a slow process
does not have well-trained and skilled middle and does not take place in a great number of
management, will be unacceptable in the future. companies. Besides, new technologies and working
methods should be accomplished by new marketing
Service concepts.
To an importer, service aspects mean communication, Usage of barcode systems by retail organisations gives
reliability, product development support, business quick sales information and is accompanied by
ethics, ease of dealing, quick settlement of claims and electronic order systems, Just-In-Time (JIT) methods
speed. Very often, a much valued service aspect is and direct product profitability (DPP). DPP means
uninterrupted and factually correct information flows. direct calculation of all retailing costs, amongst which
alternative costs (costs which are caused by untimely
11.2 Logistics delivery of articles, costs because of marking down and
sales bargains, etc.).
The logistic concepts aim at having the right goods at
the right time, in the right volumes at the right place Any developing country factory entering the export

94
market must not only estimate costs accurately before the language of the target market. Ideally, he or she
entering into a contract, but also ensure that the will have a profound technical knowledge of, and
shipping facilities at its disposal can guarantee delivery practical experience with, the various qualities of
within contractual time requirements. This tends to pose clothing items. He/she must also be conversant with
few problems for countries with access to ports which the technical implications of provisions in trade
have well-established shipping channels to the EU. contracts, and should also be able to negotiate
However, it is a problem for many exporters in Africa, confirmed contracts swiftly on behalf of the exporter
for example, who, in addition to needing to move goods and should have access to rapid communication
overland to a port, must deal with shipping services that facilities.
are often unreliable and infrequent. A reliable shipping • Exporters able to make firm contracts rapidly have
agent is essential for these exporters. an unquestioned advantage on the market.
Packaging poses an associated problem. While there is Alternatively, a number of manufacturers could share
an increasing worldwide trend for consignments to be the services of a similarly qualified individual or a
container packed at the factory, this can be done only in manufacturing company could hire a local agent on
countries equipped to handle container ships in the the market place. Although these alternatives would
docks of embarkation. Again, few deep-water ports with be cheaper, their impact on the market would be
such facilities currently exist in Africa. weaker.
• Established exporters also find it productive to
11.3 Design arrange visits to the market by a team, usually
comprising a senior technical and a commercial
Good design and product innovation can help executive. Whether the objective is to strengthen
differentiate products, establish consumer loyalty and existing contacts with customers, or to seek new
trust and, in many cases, allow products to command a ones, careful research should be undertaken before
price premium. Design is the biggest element of value the schedules for such visits are set; these schedules
addition. Design cannot originate in a vacuum. Poor or should be confirmed in advance with the contacts
inadequate designs in export policy, can make or mar concerned.
the process of succesful marketing. Lack of sufficient • Some developing countries use the commercial
understanding of physiognomy, body sizes, life styles, section of their embassies in the main importing
activities and climatic conditions result in incomplete countries to circulate lists of offers. While such
design appreciation. Designers need considerable activities are productive in many ways, they can be
exposure to the target market before the design process converted into sales only if an inquiry can be swiftly
can succeed. The customer-design interface is a matter responded to. Furthermore, although containing
of deep understanding of the country and the people. some data on prices and quality aspects, these lists
Another area is using the aspect of design capabilities do not provide sufficient information, nor do they
and creativity to explore product development as an give a strong enough basis for an importer to
extra unique selling point (USP), which results in long- confirm a contract unless successful business
term relationships and differential advantage. dealings with a listed company have already been
There is a lot of brand and design imitation, especially established.
for mass products like T-shirts, bras, briefs etc. • Yarn, fabric and apparel fairs are held in many EU
However, one of the results of the GATT Uraguay countries (see appendix 3.4), their role is limited in
Round Agreement was the Trade Related Aspects of the case of booking direct orders, but more and more
Intellectual Property Rights. The objectives of this fairs are an excellent way to orient on material and
agreement, called TRIPS, are to implement standards of fashion developments and to make contacts with
protection for patents, trademarks, copyrights and trade potential buyers. Individual participation in
secrets, including enforcement measures and dispute international trade fairs may be a useful sales
settlement provisions. promotion tool, but besides a heavy financial
involvement it is a complex operation.
11.4 Marketing and sales • Product/company press releases and direct mail are
all used effectively in trade promotion by exporters.
Perhaps the most exacting aspect of exporting, even for For the new market entrant, however, specialist
the established exporting company, is that of ensuring advice is often necessary to ensure that the
optimal exposure to, and communication with, information to be delivered is complete, that the
decision-making personnel in a client company, often media chosen are the most cost effective means of
thousands of miles away. reaching the target audience, and that the timing of
• The best method of achieving this objective is, the promotional effort is correct. Above all, it is
unquestionably, to have an able company essential that promotion induced inquiries be
representative in the country or geographical area immediately dealt with locally by a representative.
concerned. Such an individual must be proficient in Refer to appendix 3.5 of this survey for a list of

95
 leading trade magazines in the textiles and clothing by exporting - not only in dealing with orders but also
sector. with processing Customs and shipping documentation.
• As an additional aid to marketing, documents sent by If this type of infrastructure is limited, then it is a
direct mail can be accompanied by knitted yarn and weakness in developing sustained export activities.
fabric samples. Mailing of this kind to prospective
customers, well before a proposed visit from a senior Export experiences
selling team, can be highly effective. While not a It is important to learn from past experiences. If the
complete guarantee of quality, the sample, if it is of company has tried but failed to penetrate an export
good quality, will inspire confidence in prospective market previously, this can be analysed to determine
buyers. It can also be useful in weeding out where things went wrong.
merchants who are simply not in the market for those
products or those qualities. In fact, generally, no Language skills
personal sales visit should be attempted without an Besides knowing about export rules and regulations, it
adequate sample on offer. would help your company if your employees were also
knowledgeable of your target market’s language and
11.5 Financing culture. Though English is accepted as the language of
business, having the ability to communicate in a
The following aspects can be considered when the customer’s native language will give you an advantage
financial capabilities of an exporting company can be over your competitors. Although most trade partners of
analysed: capital investment, the stage of the production European companies will not be native speakers
process and complementary activities, and the financial themselves, the vast majority speaks English fluently. In
settlement of the contract. almost all cases, foreign language skills, particularly
Some parts of the clothing industry are capital intensive English, are essential when entering the European
and regular investment in new equipment is required to market.
ensure competitiveness. This is particularly the case in On the few occasions when correspondence and
those parts of the industry, which are highly automated documents in English will not suffice, exporters can
and produce long runs of relatively undifferentiated usually find sources of translation capabilities for the
products. Investment levels are high in the knitwear more popular European languages. Language capability
sector, particularly in the case of complete garment can be advantageous, since it facilitates cultural and
knitting technology. social relationships.
Minimal investments are required for exporters in the
case of OPT and CMT. In this case, financing is limited Training
to the production process because the importer supplies Human resources development of top and medium-
the material to be processed. The next stage in the management level can be necessary to optimise the
manufacturing company’s production process is export marketing policy of a company. The following
subcontracting. Herewith, investment is extended aspects can be considered if additional training is
because the importer instructs the subcontractor to desirable:
source (and finance) the material itself. • product development, product improvement,
The next stage can be reached when design and efficiency and/or effective measures in production
marketing at either end of the production process can be and communication with buyers regarding all
delegated to the subcontractor, while maximal technical aspects, including quality control aspects;
investments are required in the case of exploiting and • know-how (including costs aspects) about the
exporting a collection under an international brand name. required Customs formalities, shipping facilities and
Penalties for late deliveries may be included in the packaging to guarantee delivery within contractual
contracts for all types of exporting manufacturers. time requirements;
• financial capabilities including contract parts like
11.6 Capabilities delivery and payment procedures;
• export market orientation and export marketing
Commitment to export know-how;
It is important to consider whether the company has • communication tools, including control of the
staff who are able to sell and develop an international language as desired by the buyer, by middle and top
business. Having in-house staff with international management.
experience can facilitate your entry into the
international marketplace. If you do not have such a 11.7 Recapitulation of the internal analysis
person, you can either hire one or train present staff to
assume the responsibilities. The company should be The lowest mode in the added value chain is CMT or
able to generate the physical and administrative OPT. The client, often an EU manufacturer provides
infrastructure to deal with increased activities generated fabrics and trim to the manufacturer and for a certain

96
fee the producer make garments according to the This helps to determine which type of strategic alliance
requirements. For that reason, the added value is rather may be required. Look for partners who complement
limited. Producing an own collection with an own brand your company’s core competence. For instance: if ample
name is the highest mode in the added value chain. production capacity is available, then look for a partner
Other possibilities are to be only a sub-contractor to a with a good product to manufacture. If the added value
clothing chain or department store e.g. and produce in design is low, because there is no design capacity,
private labels or produce partly for such a store and also look for a creative partner. If added value in logistics is
produce - on a contract basis- for a fashion house. low, look for a partner with a good distribution
Other combinations are also possible. infrastructure. The process of decision making, based
on external and internal analyses, will be discussed in
Depending on the value that a company and product the next chapter.
adds to the chain, the choice can be made for one of the
market entry modes. Differences between each mode
related to added value are given in the matrix below.

CMT or OPT FOB Private label Own brand

producer producer producer producer

Manufacturing High High High High

Materials Low Medium High High
Logistics Low Medium Medium High
Design Low Low Medium High
Marketing and sales Low Low Low High
Financing Low Medium Medium High
Capabilities Low Medium Medium High

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12 DECISION MAKING

By means of conducting the external and internal Formulating an export marketing strategy based upon
analysis (Chapters10 and 11), the company is now able sound information and its proper assessment increases
to come to a decision on whether or not to export. the chances that the best options will be selected,
resources will be utilised effectively, and efforts will
• Products suitable for export development are consequently be carried through to completion.
identified. Also known is what modifications, if any, For assistance in writing an EMP, please refer to CBI’s
must be made to adapt them to an overseas market. “Export Planner”.
• Countries and market segments are targeted for sales
development and/or cooperation agreements. A start, which involves limited risks and is chosen by
• The best sales channel is identified. the majority of starting exporters in developing
• Which special challenges pertain to the selected countries, is to try to acquire fixed orders for products
markets (competition, cultural differences, import specified by the client. The latter is at home in his
controls etc.) and what strategies will be used to market and knows all the “ins and outs” of his
address them. permanently changing market place.
Exporters in the bodywear sector are confronted with
Once a company has determined that it has exportable many aspects like sizing, packaging, environmental
products, it must still consider whether or not the aspects, resulting in a lot of technical requirements,
development of an export business adheres to the added to which are aspects of design, fashionability,
company objectives. In order to arrive at this conclusion comfort and market developments etc. For that reason,
the management should ask itself the following co-operation in a variety of forms between importer and
questions: exporter can be necessary. The most important
• What does the company want to gain from determining factors for exporters operating on this basis
exporting? are the combination of price, product quality and
• Is the goal of exporting consistent with other reliability of deliveries and delivery times.
company goals?
• Are the benefits worth the costs, or would company
resources be better spent developing new domestic
business?

Companies can waste a lot of time and money

attempting to enter markets which do not have potential
or for which their product is not suitable. To be
successful in export marketing, exporters need to focus
on specific products and markets and be prepared for
all the consequences.

External
Analysis
Market
Decision entry Export
making strategy marketingplan

Internal
Analysis

If you have come to the decision to export, the next

phase of the export marketing process is to draw up an
Export Marketing Plan (EMP) which defines a
marketing strategy stating how the company is going to
penetrate the identified market. The marketing strategy
is designed around the information collected in the
internal and external analysis and the marketing tools
will be described in the following chapter.

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13 MARKETING TOOLS

This chapter will discuss which marketing tools product range and production capacity; it must include
(product, price and promotion) can be used to build up minimum order quantity and the possibility for
successful business relationships, according to the additional orders.
following scheme. The reviews must always be kept up-to-date. The
• Matching products and the product range (specifying products and the range should be flexible so that
range, width and depth, specifying the product adjustment and adaptation can be executed according to
characteristics, packaging design and seasonal buyers’ wishes.
influences) CMT/OPT and FOB producers make a description of
• Building up a relationship with a suitable trading the type of products, number, the type and age of the
partner knitting, cutting and sewing machines, the number and
• Drawing up a general or a specific offer skills level of employees etc.
• Handling the contract, divided into contract terms
and contract fulfilment Packaging design
• Sales promotion advertising and communication, The protective functions of packaging for shipment
sales organisation and participation in trade fairs. which require the packaging to ensure minimal
environmental damage have been described briefly in
13.1 Matching products and the product chapter 9.1.3 (including the references to CBI’s
range AccessGuide and to ITC) and are valid for all types of
producers.
A product range of a private label or own brand Another aspect of packaging per item or items in the
producer consists of several product groups (range case of multi-packs includes an attractive and sales
width), each with several different product items (range promotion design but is only valid for own brand
depth). One product can consist of several executions. producers.

13.2 Building up a relationship with a suitable

Example: trading partner

A knitwear product group consists of T-shirts (range Among the many potential customers, you must
width). The products for sale have long sleeves or short identify those who match your own company profile
sleeves, round necks or V-necks or boat necks or polo and product range and are therefore most suitable for
necks with or without hood etc. (range depth). The building up a relationship. At the end of the
executions consist of different materials in weight and identification phase, the supplier should have selected
quality of the items, several sizes, one or more colours, the names and addresses of suitable trading partners.
prints etc.
Sources of information to contact are in the
producer’s country:
A manufacturer/supplier can only select a suitable • the country of destination’s Chamber of Commerce
business partner if he/she is fully aware of exactly what for Foreign Trade, and/or
range he/she can offer and the opposite is also valid: an • the Economic Affairs departments of the country of
importing business partner has to know which products destination’s official representative (Embassy or
or services are offered in order to select a business Consulate).
partner.
The product range of a CMT/OPT producer includes Sources of information to contact in the country of
the services which can be derived from the available destination are:
production facilities, production process, production • Business Support Organisations (former Import
capacity, production flexibility and the possibilities to Promotion Organisations)
buy fabrics, trims etc. according to the requirements of • Trade Associations (see appendix 3.3)
the business partner. • own country’s public and private trade promotion
bodies
Specifying the product characteristics • own country’s diplomatic and consulate
Private label producers have to make a review of all the representatives
products they make, stating the minimum requirements • Chambers of Commerce
to which they are related, production capacity and • trade fair organisers, through printed catalogues or
packaging method. The reviews must enable potential websites (see appendix 3.4)
customers to make a brief appraisal of the complete • trade directories, like http://www.kompass.com or
http://www.europages.com (see appendix 3.6);

99
• consulting trade press (see appendix 3.5). confidence in prospective buyers. It can also be useful
in weeding out merchants who are simply not in the
It has to be noted that many sources of information only market for those products or those qualities.
answer written inquiries, while a detailed inquiry • Product samples must correspond exactly to the
improves the chances of precise identification. goods available for delivery. If they do not,
this may cause a lasting negative effect on business
Evaluate the received names and addresses, using the relations;
following criteria: • State the treatment methods used, if possible provide
• Is the importer active in the country you have a copy of your internationally acknowledged
selected? inspection organisation.
• Does the importer focus his activities on the
corresponding, i.e. your, product groups? Recommendable action for both kinds of offers:
• In which market segment is the importer active? • Send in advance a copy of the AWB # (Air Way Bill
• Names of other suppliers to the importers? number) to the contact person.
• Enough sound information about the reliability of • Make a telephone check (the human voice, if master
this partner? of the language, is the best means of
• Check your potential buyers’ financial status communication) to ask whether the offer (and the
credibility if possible, for instance credit rating samples, if applicable) has/have arrived.
reports by Dunn and Bradstreet • Send samples free of charge, but it is common
(http://www.dnb.com), otherwise always demand a practice to ask for a reasonable amount for size
LC (letter of credit). ranges and/or salesmen’s samples.
• An invitation to visit the company.
Using these criteria, draw up a priority list of the • A proposal could be made to visit the country of
contact addresses you have received. destination. In that case (if necessary) an interpreter
can be hired and your own consulate or other
13.3 Drawing up an offer intermediaries can be asked for assistance.

There are two kinds of offers: general and specific Communication by e-mail is an excellent tool,
offers. The purpose of drawing up a general offer is to especially when a reaction will be executed within 24
make the first contact with potential trading partners hours. This is a very positive sustaining element
with whom you, the supplier, are not yet personally towards buyers, making a reliable impression and
acquainted. A general offer consists of sending a short instilling confidence.
profile of your company and a summary of your The most exacting aspect of exporting clothing, even
product range. In some cases it might be helpful to send for the established exporting company, is that of
a reference list of existing customers (in countries other ensuring optimal exposure to, and communication with,
than the possible customer’s one!). Write a personal decision-making personnel in a client company. The
letter, briefly introducing your company and what you best method of achieving this objective is to have an
have to offer. able company representative in the country concerned.
A specific order is legally binding for a certain period Such an individual must be proficient in the language
of time. You must therefore be capable of fulfilling the of the target market. Ideally, he or she will have
terms of contract. A specific offer only should be made thorough technical knowledge of the implications of
up when the business partner is known personally or provisions in trade contracts and should have access to
after the initial contact has been made. A specific offer rapid communication facilities. A personal sales visit
should consist of two parts: a written offer and/or should be attempted, accompanied by an adequate
product samples. The written offer includes: sample of the garments on offer.
• Name of the person responsible in your company
• Exact description of the goods offered (referring to 13.4 Handling the contract
requirements)
• Price of the goods in the agreed currency offered in When handling the contract, you should consider the
accordance with Incoterms terms and the fulfilment:
• Possible delivery date and terms of delivery and the Contract terms:
validity date of the offer. Conclude the delivery terms according to the
international guidelines (e.g. Incoterms).
A written offer can be accompanied by product Particularly when delivering for the first time, it is
samples, otherwise the offer is formed by sending usual to deliver the goods on CFR or CIF basis as
product samples or yarns (in the case of knitwear) and agreed and payment by L/C. In the case of CFR, the
fabric samples. While not a complete guarantee of insurance component is handled by the importer in the
quality, the sample, if it is of good quality, will inspire EU, primarily to facilitate payment in the event of a
claim.

100
Suppliers should be aware that failure to meet the Sales promotion measures develop and expand
specified delivery will usually result in cancellation of customer relations, which obligate the selling company
the order negotiations based on claims for too late to take good care of existing customers (continuity).
delivery. The same procedure can be expected in the This includes for example expressions of thanks to
case that products are not up to the stipulated standards business partners, regular update on the product range;
of quality. Penalties for late deliveries may be included supplying brochures of the product range may be useful
in the contracts for all types of exporting for promoting sales just like keeping business partners
manufacturers, just like in some cases exclusivity up-to-date on recent product developments. The
claims. consequences for production capacity can be that, in
some cases, the production capacity has to be increased
Contract fulfilment: for existing customers, or the product range should be
Procure the delivery documents on time. guided by demand and changes to the product range
Comply strictly with all parts of the supply agreement. may become necessary.
If you cannot comply with any part of the agreement
(e.g. delivery delays or quality problems), inform the Advertising and communication
customer clearly and in good time. Advertising refers to communication measures with the
Co-operate on a partnership basis and seek a common aim of increasing the sales of your products. The
solution, even if conflicts arise. prerequisites for successful communication measures
Fulfilling the contract should have a high priority, are a clearly defined target group (“Who buys my
particularly when delivering for the first time. product?”) and a well-formulated message (”What do I
want to tell my customer?”)
13.5 Sales organisation and promotion The following parameters are used to measure the costs
of any communication action:
The term “sales organisation” refers to the Cost per contact
organisational system that carries out the sales of the > The costs to convey the message to one target
company’s products. A sales organisation consists of person.
desk sales force (office staff) and a field force (front Total costs
liners). The scheme below gives a rather extended > The costs of the whole campaign.
overview, which is however not representative for Dispersion losses
CMT/OPT or FOB producers and not even for SMEs, > The costs for messages that do not reach the right
which offer more services to their customers. addressee (waste).

Activities of the desk sales force include: Field force includes:

• selling; • selling;
• handling correspondence; • visiting customers;
• handling offers and orders; • presenting new products;
• issuing forwarding instructions; • discussing and implementing campaigns;
• issuing and checking invoices; • discussing listings;
• checking schedules; • holding periodical reviews with customers;
• keeping customers records; • implementing selling prices, and
• expediting product samples; • checking competitor’s edges
• keeping sales statistics;
• evaluating markets;
• updating on standards, and
• intermediary for implementing.

Criteria Target group Cost per Total Dispersion

contact costs losses
Standard printed matter Existing customers + + +
Telephone and mailing campaigns Existing and potential customers (known by name) ++ ++ ++
Website Existing and potential customers (partly unknown) + ++ +
Advertising in trade journal Existing and potential customers (partly unknown) ++ ++ ++
Participating in trade fairs Existing and potential customers (partly unknown) +++ +++ +

+++ = high ++ = medium + = low

101
Standard printed matter participation requires advance knowledge and a detailed
It is advisable to commence with communication survey because of its complex nature. A detailed
methods, which require only a small amount of description of the several stages from selection to
planning and co-ordination, such as revising the preparation, to participation in EU trade fairs, including
company’s standard printed matter (letterheads, the follow-up can be found in CBI’s ‘Your Show
business cards, fax form, etc.). Prepare long-term sales Master’.
documentation (company brochure, product range
review, etc.) and product-specific sales folders.
Constant, prompt and reliable communication is a vital
prerequisite for maintaining a long-term business
relationship with a customer. The fast changing
collections make it necessary to develop a flexible
promo-kit: keep the costs low, ensure maximum
flexibility of the promotional materials.

Telephone or mailing campaigns

Once the on-going business (continuity) with customers
has been established, the business is concluded by the
modern means of communication: phone, fax and e-
mail. A well functioning desk sales force and excellent
communication skills are consequently an absolute
prerequisite for successful market consolidation.
The essential tool used by the sales department is a
detailed and up-to-date customer database. The
customer database contains: basic data on the customer
(e.g. long-term data such as name, address, telephone
etc.); changing data resulting from contacts with the
customer (such as phone calls, offers, sales statistics,
etc.) and, the customer’s specialisation in relation to his
assortment.
The customer’s database gives a desk sales person (or
front liner) a quick review of the most important
customer data when planning a telephone call, a direct
mail (or a visit).
If possible, the customer database should be
computerised, because this simplifies changes,
updating, sorting and selection procedures, etc. If
computerisation is not possible, the customer data
should be kept on file cards.

Advertising in trade magazines

The number of important trade magazines with
possiblities for advertising is rather limited. Only one or
two magazines can be mentioned for each major EU
country, like Textil Wirttschaft and Textil Mitteilungen
in Germany, Textilia in The Netherlands, Journal de
Textile in France etc. Developing an original campaign
is rather expensive and the effect of unrepeated
advertisements is limited. A list of trade magazines is
given in appendix 3.5 of this survey.

Participation in trade fairs

Participation in national and international trade fairs
may be a useful sales promotion tool in the bodywear
sector. A list of trade fairs is given in appendix 3.4 of
this survey, of which the German CPD fair is the
leading one and has visitors (and exhibitors) from many
other countries. Besides a heavy financial involvement
(travelling, accommodation, sampling etc.), trade fair

102
Appendices
104
APPENDIX 1 DETAILED CLASSIFICATION OF BODYWEAR BY
HARMONIZED SYSTEM CODE
Notes:
Chapter 61 applies only to made-up knitted or crocheted articles. Chapter 62 applies only to made-up articles of any
textile fabric other than wadding, excluding knitted or crocheted articles.

HS Code Description
61.07 Men’s or boys’ underpants, briefs, nightshirts, pyjamas, bathrobes, dressing gowns and
similar articles, knitted or crocheted:
- Underpants and briefs:
11.000 — Of cotton
12.000 — Of man-made fibres
19.000 — Of other textile materials
- Nightshirts and pyjamas:
21.000 — Of cotton
22.000 — Of man-made fibres
29.000 — Of other textile materials
- Bathrobes, dressing gowns etc.:
91.100 — Of terry towelling cotton
91.900 — Of other cotton
92.000 — Of man-made fibres
99.000 — Of other textile materials

61.08 Women’s or girls’ slips, petticoats, briefs, panties, nightdresses, pyjamas, negligées, bathrobes,
dressing gowns and similar articles, knitted or crocheted:
- Slips and petticoats:
11.000 — Of man-made fibres
19.000 — Of other textile materials
- Briefs and panties:
21.000 — Of cotton
22.000 — Of man-made fibres
29.000 — Of other textile materials
- Nightdresses and pyjamas:
31.100 — nightdresses of cotton
31.900 — pyjamas of cotton
32.110 — nightdresses of man-made fibres
32.190 — pyjamas of man-made fibres
32.900 — nightdresses and pyjamas of artificial fibres
39.000 — nightdresses and pyjamas of other textile materials
- Bathrobes, dressing gowns etc.:
91.000 — Of cotton
92.000 — Of man-made fibres
99.100 — Of wool or fine animal hair
99.900 — Of other textile materials

61.09 T-shirts, singlets and other vests, knitted or crocheted:

10.000 - Of cotton
- Of other textile materials
90.100 — Of wool or fine animal hair
90.300 — Of man-made fibres
90.900 — Other

61.12 Men’s or boys’ swimwear

- Of synthetic fibres
31.100 — Containing by weight 5% or more of rubber thread
31.900 — Other

105
 - Of other textile materials
39.100 — Containing by weight 5% or more of rubber thread
39.900 — Other
Women’s or girls’ swimwear:
- Of synthetic fibres
41.100 — Containing by weight 5% or more of rubber thread
41.900 — Other
- Of other textile materials
49.100 — Containing by weight 5% or more of rubber thread
49.900 — Other

61.15 Pantyhose, tights, stockings, socks and other hosiery, incl. stockings for varicose veins and
footwear, without applied soles, knitted or crocheted
- Pantyhose and tights:
11.000 — Of synthetic fibres, measuring per single yarn < 67 decitex
12.000 — Of synthetic fibres, measuring per single yarn >= 67 decitex
19.000 — Of other textile materials:
- Women’s full-length or knee-length hosiery, measuring per single yarn < 67 decitex:
— Of synthetic fibres:
20.110 —- Knee-length stockings
20.190 —- Full-length stockings
20.900 — Of other materials
- Other full-length or knee-length stockings, socks and other hosiery excl. pantyhose, tights and hosiery
< 67 dectitex
91.000 — Of wool or fine animal hair
92.000 — Of cotton
— Of synthetic fibres:
93.100 —- Stockings for varicose veins
93.300 —- Knee-length stockings (other than stockings for varicose veins)
93.910 —- Other women’s stockings
93.990 —- Other full length stockings, socks and other hosiery
99.000 — Of other textile materials

62.07 Men’s or boys’ singlets and other vests, underpants, briefs, nightshirts, pyjamas, bathrobes,
dressing gowns and similar articles:
- Underpants and briefs:
11.000 — Of cotton
19.000 — Of other textile materials
- Nightshirts and pyjamas:
21.000 — Of cotton
22.000 — Of man-made fibres
29.000 — Of other textile materials
- Bathrobes, dressing gowns etc.:
91.100 — Of terry towelling cotton
91.900 — Of other cotton
92.000 — Of man-made fibres
99.000 — Of other textile materials

62.08 Women’s or girls’ singlets and other vests, slips, petticoats, briefs, panties, nightdresses, pyjamas,
negligées, bathrobes, dressing gowns and similar articles:
- Slips and petticoats:
11.000 — Of man-made fibres
— Of other textile materials
19.100 — Of cotton
19.900 — Of other
- Nightdresses and pyjamas:
21.000 — Of cotton
22.000 — Of man-made fibres

106
 29.000 — Of other textile materials
- Negligées, bathrobes, dressing gowns and similar articles:
91.100 — Of terry towelling cotton
91.900 — Of other cotton
91.900 - Vests, briefs, panties and similar articles of cotton
— Of man-made fibres
92.100 - Negligées, bathrobes, dressing gowns and similar articles
92.900 - Vests, briefs, panties and similar articles
99.000 — Of other textile materials

62.11 Swimwear:
11.000 — Men’s or boys’
12.000 — Women’s or girls’

62.12 Brassières, girdles, corsets, braces, suspenders, garters, and similar articles and parts thereof,
whether or not knitted or crocheted
10.100 - Brassières in a set made up for retail-sale containing a brassière and a brief
10.900 - Brassières
20.000 - Girdles and panty-girdles
30.000 - Corselettes
90.000 - Other

107
APPENDIX 2 SPECIFICATION OF IMPORTS AND EXPORTS OF
BODYWEAR BY PRODUCT TYPE AND AREA OF
ORIGIN INTO THE EU, 1999-2001

Table 2.1 Imports of bodywear into the EU (15) in volume and value, 1999-2001

1999 2000 2001

Volume Value Volume Value Volume Value
mln units mln € mln units mln € mln units mln €
KNITTED BODYWEAR
For men & boys
Underpants and briefs 566 720 609 819 596 827
Nightshirts and pyjamas 53 249 59 279 55 265
Bathrobes etc. 6 44 7 45 6 44
Swimwear 31 91 41 113 38 106
For women & girls
Slips and petticoats 9 33 22 42 24 46
Briefs and panties 1,007 1,263 1,140 1,494 1,176 1,508
Nightdresses and pyjamas 149 659 171 751 161 697
Bathrobes etc. 31 184 42 208 48 212
Swimwear 74 446 92 542 96 560
Pantyhose and tights 851 696 845 663 823 634
For both sexes
T-shirts 1,828 5,674 2,022 6,911 2,205 7,153
Hosiery (excl. pantyhose etc) 2,022 1,485 2,116 1,613 2,037 1,597
Total knitted bodywear 6,627 11,544 7,166 13,480 7,265 13,649
of which from:
Outside the EU 4,171 6,435 4,630 7,961 4,714 8,264
Developing countries 3,126 4,775 3,444 6,084 3,499 6,453

WOVEN BODYWEAR
For men & boys
Underpants and briefs 42 91 50 112 56 119
Nightshirts and pyjamas 19 113 20 118 18 105
Bathrobes etc. 6 84 7 96 6 88
Swimwear 16 54 23 81 24 83
For women & girls
Slips and petticoats 6 32 8 37 8 33
Nightdresses and pyjamas 56 304 61 347 54 312
Bathrobes etc. 9 298 9 318 9 286
Brassières 448 1,540 446 1,895 469 1,922
(Panty-) Girdles 33 97 34 102 32 88
Corselettes 9 83 9 77 9 68
Corsets, suspenders etc.*) 2,469 89 2,604 117 2,830 126
Swimwear 47 59 24 69 21 79
Total woven bodywear 691 2,844 691 3,369 706 3,309
of which from:
Outside the EU 441 1,718 520 2,146 551 2,194
Developing countries 348 1,325 402 1,651 420 1,696

Total bodywear 7,318 14,388 7,857 16,849 7,971 16,958

of which from:
Outside the EU 4,612 8,153 5,149 10,107 5,265 10,458
Developing countries 3,474 6,100 3,846 7,735 3,919 8,149

*) volume in tons (not included in total)

Source: Eurostat

108
Table 2.2 EU (15) imports of bodywear by country, 1999-2001

1999 2000 2001

Volume Value Volume Value Volume Value
mln units mln € mln units mln € mln units mln €

Germany 2,103 3,871 2,188 4,472 2,061 4,180

United Kingdom 1,121 2,332 1,261 2,782 1,136 2,960
France 1,198 2,342 1,321 2,674 1,320 2,773
Italy 403 903 560 1,157 615 1,260
Netherlands 603 1,052 548 1,231 634 1,185
Belgium 435 928 483 1,073 450 1,000
Spain 332 560 315 777 353 861
Austria 283 683 320 708 330 776
Denmark 219 442 223 494 230 501
Sweden 240 418 269 517 246 477
Ireland 76 238 80 304 84 308
Portugal 113 198 97 210 223 219
Greece 103 202 103 206 195 209
Finland 79 172 78 190 83 195
Luxembourg 10 47 11 54 11 54

EU (15) 7,318 14,388 7,857 16,849 7,971 16,958

Source: Eurostat

Table 2.3 EU (15) exports of bodywear in volume and value, 1999-2001

1999 2000 2001

Volume Value Volume Value Volume Value
mln units mln € mln units mln € mln units mln €
KNITTED BODYWEAR
For men & boys
Underpants and briefs 363 197 358 205 370
Nightshirts and pyjamas 16 106 15 100 15 99
Bathrobes etc. 7 29 5 24 3 19
Swimwear 13 67 17 79 15 82
Total 236 565 234 561 238 570
Of which outside the EU 88 152 95 158 105 167

For women & girls

Slips and petticoats 5 27 3 20 3 20
Briefs and panties 500 803 525 830 529 818
Nightdresses and pyjamas 37 246 41 262 39 257
Bathrobes etc. 19 118 19 111 22 117
Swimwear 46 298 40 333 43 360
Pantyhose and tights 835 824 994 856 950 849
Total 1,442 2,316 1,622 2,412 1,586 2,421
Of which outside the EU 661 739 802 863 810 936

For both sexes

T-shirts 761 3,306 842 3,850 954 3,897
Hosiery (excl. pantyhose etc) 1,351 1,000 1,413 1,046 1,366 1,065
Total 2,112 4,306 2,255 4,896 2,320 4,962
Of which outside the EU 339 693 383 825 432 912

continued

109
continue

WOVEN BODYWEAR
For men & boys
Underpants and briefs 18 42 18 46 20 42
Nightshirts and pyjamas 3 29 5 43 4 32
Bathrobes etc. 3 45 3 52 2 42
Swimwear 6 28 8 41 9 39
Total 30 144 34 182 35 155
Of which outside the EU 9 36 12 57 14 47

For women & girls

Slips and petticoats 5 23 5 26 5 23
Nightdresses and pyjamas 14 105 15 114 12 94
Bathrobes etc. 2 149 2 170 3 152
Brassières 191 1,009 214 1,117 276 1,111
(Panty-) Girdles 18 64 13 55 11 49
Corselettes 5 66 5 58 5 56
Corsets, suspenders etc.*) 2,668 150 3,460 182 5,252 259
Swimwear 8 48 10 59 11 64
Total 243 1,614 264 1,781 323 1,808
Of which outside the EU 101 534 117 642 107 721

Total bodywear 4,063 8,945 4,409 9,832 4,361 9,916

Of which outside the EU 1,198 2,154 1,409 2,545 1,468 2,783

*) volume in tons (not included in total)

Source: Eurostat 2002

Table 2.4 EU (15) exports of bodywear by country, 1999-2001

1999 2000 2001

Volume Value Volume Value Volume Value
mln units mln € mln units mln € mln units mln €

Italy 1,355 1,861 1,553 2,096 1,583 2,240

Germany 448 1,112 489 1,311 487 1,290
France 313 1,169 309 1,222 302 1,263
Portugal 614 859 618 960 532 916
Belgium 231 720 254 831 250 851
United Kingdom 174 679 174 711 168 691
Austria 185 584 249 613 242 638
Netherlands 218 569 213 546 229 564
Greece 182 519 176 510 173 441
Spain 122 310 159 404 172 422
Denmark 100 305 116 365 117 345
Sweden 39 129 46 153 47 147
Ireland 72 95 42 71 48 64
Finland 7 25 7 27 8 29
Luxembourg 3 9 4 12 3 15

EU (15) 4,063 8,945 4,409 9,832 4,361 9,916

Source: Eurostat 2002

110
APPENDIX 3 USEFUL ADDRESSES

3.1 Standards organisations Prices of competitors can be found by browsing their Internet
sites or looking for general sites like
ECLA (European Clothing Association) http://www.globalsources.com or
E-mail: [email protected] http://www.alibaba.com
Internet: http://www.euratex.org
Note: for ECLA recommendations we refer to 3.3 Trade associations
http://www.belgianfashion.be or http://westworld.dmu.ac.uk
Associations in the clothing industry
ISO (International Standard Organisation)
E-mail: [email protected] EU:
Internet: http://www.iso.org
Euratex (The European Apparel & Textile Organisation)
Information concerning textile care labelling in EU countries E-mail: [email protected]
can be obtained from: Internet: http://www.euratex.org

GINETEX (Groupement international d’etiquetage pour FRANCE:

l’entretien des textiles)
E-mail: [email protected] UFIH (Union Francaise des Industries de l’Habillement)
Internet: http://www.gintex.org E-mail: [email protected]
Internet: http://www.lamodefrancaise.org
3.2 Sources of price information
GERMANY:
An overview of consumer prices can be obtained by:
• window-shopping in the prospective market place, at Bundesverband Bekleidungsindustrie e.V.
several retail shops is another good way of gaining E-mail: [email protected]
information about prices at retail or consumer level, but Internet: http://www.bekleidungsindustrie.de
also about fashion, colours and qualities.
• browsing through the catalogues of brand-stores or ITALY:
bodywear speciality chains, like:
Schiesser: Sistema Moda Italia (SMI)
http://www.waescheshopping.de/europe/schiesser.html E-mail: [email protected]
Hunkemöller: http://www.hunkemuller.nl Internet: http://www.sistemamodaitalia.it
• browsing through the catalogues of mail-order houses on
Internet. NETHERLANDS:
For instance sites in The Netherlands, like
Neckermann Nederland: http://www.neckerman.nl Modint
Wehkamp: http://www.wehkamp.nl E-mail: [email protected]
or similar sites in Germany like Internet: http://www.modint.nl
Neckermann: http://www.neckermann.de
Quelle: http://www.quelle.de SPAIN:
Otto: http://www.otto.de
or in France, like Consejo Intertextil Espanol
La Redoute: http://www.redoute.fr E-mail: [email protected]
or in the English language in the UK, like: Internet: http://www.aitpa.es
GUS/Argos: http://www.gusplc.co.uk with links to many
daughter companies like http://www.argos.uk, UK:
http://www.choiceshopping.com and others,
Littlewoods Home Shopping: British Apparel & Textile Confederation (BATC)
http://www.littlewoods.co.uk E-mail: [email protected]
Grattan: http://www.lookagain.co.uk Internet: http://www.batc.co.uk
Freemans and Empire Stores:
http://www.empirestores.co.uk
• Comparisons can also be found in the prices given in
catalogues from large department stores or from company
web sites.

111
Associations of wholesalers, agents etc. in apparel trade Frequency: Twice a year (February and September)
Internet: http://www.bolognafiera.it
NETHERLANDS:
THE NETHERLANDS:
FTGB (Federatie Textiel Groothandelsbonden)
E-mail: [email protected] Bodyfashion Trade Fair
Internet: http://www.ftgb.nl Segments: Lingerie, foundations, swimwear and hosiery
Frequency: Twice a year (February and August
NVKT (Nederlandse Vereniging van Kleding- en Textiel- Internet: http://www.bodyfahiontradefair.nl
Agenten/Importeurs)
E-mail: [email protected] SPAIN:
Internet: http://www.vnt.org
Intimoda (International Dessous and Underwear
3.4 Trade fair organisers Exhibition)
Segments: Underwear and home wear for men and
FRANCE: women
Frequency: Annual (January)
Salon International de la Lingerie Paris (International Internet: http://www.moda-barcelona.com
Exhibition of Lingerie and Corsetry)
Segments: Lingerie, foundation, swimwear and hosiery Intima Moda-Bano (Swimwear, corestry, lingerie and
Frequency: Annual (January/February) Hosiery fair)
Internet: http://www.lingerie-paris.com Segments: Swimwear, lingerie, hosiery, nightwear and
E-mail: [email protected] beachwear
Frequency: Annual (September)
Lyon Mode City (International Lingerie and Bathing Organisation: IFEMA, Casilla 67067, 28080 Madrid, Spain
Fashion Trade Fair) Phone: +34 (0) 91 722 5000
Segments: Lingerie, foundation, hosiery, home- and Fax: +34 91 722 5801
nightwear, swim- and beachwear including E-Mail: [email protected]
yarns and fabrics
Frequency: Annual (September)
Internet: http://www.lyonmodecity.com 3.5 Trade press

GERMANY: International fashion magazines for bodywear

CPD Body & Beach (International Fair for Lingerie, Linea Intima Italia
Home wear and Beachwear) Publisher: Pisani Editori, Via Guintellino 26, 20143
Segments: Lingerie, foundation, night- and home wear, Milano, Italy
swimwear and hosiery Phone: +39 (0) 2 8915 9373
Frequency: Twice a year, together with CPD (February Fax: +39 (0) 2 8915 9349
and August) E-mail: [email protected]
Internet: http://www.igedo.com Frequency: 6 issues per year
E-mail: [email protected] Content: Intimate apparel, beachwear, hosiery and
textile
ISPO (International trade fair for sports equipment Language: Italian and English
and active sportswear) Other publications of the same editor are: Linea Intima France
Segments: Active sportswear, fashion sport and sporting and Linea Intima Asia
goods
Frequency: Twice a year, February (ISPO Winter) and Intima Piu Mare
August (ISPO Summer) Publisher: Zanfi Editori S.r.l.
E-mail : [email protected] Address: P.O. Box 70, 41100 Modena CPO, Italy
Internet: http://www.ispo.com Phone: +39 (0) 59 891700
Fax: +39 (0) 59 891701
ITALY: E-mail: [email protected]
Frequency: 9 times a year
Intimare (International Exhibition of Underwear, Lingerie Content: Underwear and swimwear
and Swimwear) Language: Italian
Segments: Underwear, corsetry, lingerie, hosiery,
nightwear and swim- and beachwear

112
Die Linie International magazines giving information about production
Publisher: Rudolf Heber Verlag GmbH, and trade on textiles and clothing
Stadtwaldgurtel 46, D-50931 Koln, Germany
Phone: +49 (0) 2 212 033 166 Textile Outlook International
Fax: +49 (0) 2 219 405 3316 Frequency: 6 issues a year
Frequency: 4 issues per year Language: English
Content: Bodywear Content: Business and market analyses for the textile
Language: German with summaries in English and and clothing industry
French E-mail: [email protected]
Internet: http://www.textilesintelligence.com
Bodywear Directions
Frequency: 10 issues a year Knitting International
Language: English Frequency: 11 issues a year
E-mail: [email protected] Language: English
Internet: http://www.itbd.co.uk Content: Information about production technologies
Content: Information about fashion developments, and fashion (trends, fairs etc) information
fabrics, trade fairs etc. in bodywear. concerning knitwear
E-mail: info@world-textilenet
International Textiles Internet: http://www.world-textile.net
Frequency: 10 issues a year
Language: English Textil Mitteilungen (TM)
Content: Information about colours, fabrics, styling, Frequency: Weekly
haute couture etc. Language: German
E-mail: [email protected] Content: Production, trade and fashion information on
Internet: http://www.itbd.co.uk textiles and clothing
E-mail: [email protected]
Textile View Magazine Internet: http://www.tm-fashion-portal.de
Frequency: Quarterly
Language: English Textil Wirtschaft (TW)
Content: Developments in fashion and technology for Frequency: Weekly
yarns, fabrics etc. Language: German
E-mail: [email protected] Content: Production, trade and fashion information on
Internet: http://www.view-publications.com textiles and clothing
E-mail: [email protected]
Sportswear International Internet: http://www.twnetwork.de
Publisher: Deutscher Fachverlag GmbH,
Mainzer Landstrasse 251, D-60326 Textilia
Frankfurt am Main,Germany Frequency: Weekly
Phone: +49 (0) 69 7595 1987 Language: Dutch
Fax: +49 (0) 69 7595 12200 Content: Trade magazine for clothing and textiles
Frequency: 6 times a year E-mail: [email protected]
Language: English Internet: http://www.textilia.nl
Content: International fashion trends in jeanswear,
leisurewear, accessories etc. Texpress
Frequency: Weekly
Language: Dutch
Content: Magazine for textiles industry and trade in
Belgium and The Netherlands
E-mail: [email protected]

113
3.6 Other useful addresses Important addresses for environmental issues
Information concerning environmental aspects is provided by
Quota, import duties, import licences business support organisations like CBI, GTZ, Norimpod and
Contact your national Customs, embassy or Customs in the Sida (for addresses see CBI’s website)
target country. The following organisations can also supply
useful information on quota, import duties, import licences AccessGuide, CBI’s database on European non-tariff trade
and other trade regulations. barriers
E-mail: [email protected]
World Customs Organisation Internet: http://www.cbi.nl/accessguide
E-mail: [email protected]
Internet: http://www.wcoomd.org Commission of the European Communities, DG XI-A-2,
contact point EU ECO-label
THE NETHERLANDS E-mail: dgxiweb@dg11,cec.be
Internet: http://www.europa.eu.int/comm/dg11
Netherlands Customs Directorate,
information on import duties Öko-Tex, contact point for the Öko-Tex hallmark
E-mail: [email protected] E-mail: [email protected]
Internet: http://www.douane.nl Internet: http://www.oeko-tex.com

Ministry of Finance, Department for Tariffs and Quota, TÜV, contact point for the SG (Schadstoffgeprüft Zeichen)
information on import duties, tariffs, taxes and regulations hallmark, including worldwide addresses of affiliates
E-mail: [email protected] E-mail: [email protected]
Internet: http://www.minfin.nl Internet: http://www.de.tuv.com

Central Services for Import & Export, information on International Chamber of Commerce, information
import licences, certificates, procedures: about contracts and arbitration, including Incoterms 2000
Internet: http://www.belastingdienst.nl International Chamber of Commerce
E-mail: [email protected]
Market and other general information Internet: http://www.iccwbo.org
EU
E-mail: see mailboxes
Internet: http://www.europa.eu.int

THE NETHERLANDS

Netherlands Foreign Trade Agency, part of the Ministry of

Economic Affairs
E-mail: [email protected]
Internet: http://www.evd.nl

Trade directories
Available without charge for various European countries in
different languages
Kompass
E-mail: [email protected]
Internet: http://www.kompass.nl

ABC of trade and industry

E-mail: [email protected]
Internet: http://www.abc-d.nl

Europages
E-mail: [email protected]
Internet: http://www.europages.com

114
APPENDIX 4 LIST OF DEVELOPING COUNTRIES
Please note that the OECD list of developing countries, as applied in this market survey, may include countries that are
usually not considered as developing countries (e.g. South Korea).

Afghanistan Guatemala Pakistan

Albania Guinea Palau Islands
Algeria Guinea-Bissau Palestinian Admin. Areas
Angola Guyana Panama
Anguilla Haiti Papua New Guinea
Antigua and Barbuda Honduras Paraguay
Argentina India Peru
Armenia Indonesia Philippines
Aruba Iran Rwanda
Azerbaijan Iraq São Tomé & Principe
Bahrain Jamaica Saudi Arabia
Bangladesh Jordan Senegal
Barbados Kazakhstan Seychelles
Belize Kenya Sierra Leone
Benin Kiribati Slovenia
Bhutan Korea, Rep. of Solomon Islands
Bolivia Korea, South Somalia
Bosnia & Herzegovina Kyrgyz Rep. South Africa
Botswana Laos Sri Lanka
Brazi Lebanon St. Helena
Burkina Faso Lesotho St. Kitts-Nevis
Burundi Liberia St. Lucia
Cambodia Libya St. Vincent and Grenadines
Cameroon Macao Sudan
Cape Verde Macedonia Surinam
Central African rep. Madagascar Swaziland
Chad Malawi Syria
Chile Malaysia Tajikistan
China Maldives Tanzania
Colombia Mali Thailand
Comoros Malta Timor
Congo Marshall Islands Togo
Cook Islands Mauritania Tokelau
Costa Rica Mauritius Tonga
Côte d’Ivoire Mayotte Trinidad & Tobago
Croatia Mexico Tunisia
Cuba Micronesia, Fed. States Turkey
Djibouti Moldova Turkmenistan
Dominica Mongolia Turks & Caicos Islands
Dominican republic Montserrat Tuvalu
Ecuador Morocco Uganda
Egypt Mozambique Uruguay
El Salvador Myanmar Uzbekistan
Equatorial Guinea Namibia Vanuatu
Eritrea Nauru Venezuela
Ethiopia Nepal Vietnam
Fiji Netherlands Antilles Virgin Islands (UK)
French Polynesia New Caledonia Wallis & Futuna
Gabon Nicaragua Western Samoa
Gambia Niger Yemen
Georgia Nigeria Yugoslavia, Fed. Rep.
Ghana Niue Zaire
Gibraltar Northern Marianas Zambia
Grenada Oman Zimbabwe

January 2000 115

In this survey the developing countries mentioned above can be classified according to the following scheme:

ACP countries Solomon Islands Peru

Angola Somalia Turks & Caicos Islands
Antigua and Barbuda St. Kitts-Nevis Uruguay
Bahamas St. Lucia Venezuela
Barbados St. Vincent and Grenadines Virgin Islands
Belize South Africa
Benin Sudan Asian countries
Botswana Surinam Afghanistan
Burkina Faso Swaziland Bahrain
Burundi Tanzania Bangladesh
Cameroon Togo Bhutan
Cape Verde Tonga Cambodia
Central African Rep. Trinidad & Tobago China
Chad Tuvalu India
Comoros Uganda Indonesia
Congo Vanuatu Iran
Cook Islands Western Samoa Iraq
Djibouti Zambia Korea, Rep. of
Dominica Zimbabwe Korea, South
Dominican Rep. Laos
Equatorial Guinea Mediterranean countries Macao
Eritrea Albania Malaysia
Ethiopia Algeria Maldives
Fiji Bosnia & Herzegovina Mongolia
Gabon Croatia Myanmar
Gambia Egypt Nepal
Ghana Gibraltar Oman
Grenada Jordan Pakistan
Guinea Lebanon Philippines
Guinea-Bissau Libya Saudi Arabia
Guyana Macedonia Sri Lanka
Haiti Malta Thailand
Ivory Coast Morocco Timor
Jamaica Slovenia Vietnam
Kenya Syria Yemen
Kiribati Tunisia
Lesotho Turkey CEEC
Liberia Armenia
Madagascar Central & South American ctrs *) Azerbaijan
Malawi Anguilla Georgia
Mali Argentina Kazakhstan
Marshall Islands Aruba Kyrgyz Rep.
Mauritania Bolivia Moldova
Mauritius Brazil Tajikistan
Micronesia, Fed. States Chile Turkmenistan
Mozambique Colombia Uzbekistan
Namibia Costa Rica
Nauru Cuba African countries *)
Niger Ecuador Mayotte
Nigeria El Salvador Saint Helena
Niue Guatemala
Palau Islands Honduras Other Oceanian countries *)
Papua New Guinea Mexico French Polynesia
Rwanda Montserrat New Caledonia
São Tomé & Principe Netherlands Antilles Northern Marianas
Senegal Nicaragua Tokelau
Seychelles Panama
Sierra Leone Paraguay *) other than ACP countries

116
APPENDIX 5 REFERENCES

1 European Yarn and Fabric Fairs for Autumn/Winter

2003/04 – Textile Outlook International
November/December 2002
2 Global Apparel Sourcing: Options for the future- Textile
Outlook International, July 2001
3 Major markets for cotton T-shirts- International Trade
Centre 2001
4 Eurostat CD Rom 2001 Comext
5 Textiles and Clothing, an introduction to quality
requirements in selected markets, International
Trade Centre Unctad/Gatt 1994
6 Export Planner, CBI 2000
7 Euratex Bulletins, 2002-1,2 and 4
8 Consumer Europe-Marketing data 2002

117
APPENDIX 6 USEFUL INTERNET SITES

Here are useful websites besides those mentioned in this http://sigl.cec.eu.int

survey and including interesting sites of the publishers The SIGL database contains information on the EU utilisation
http://www.world-textile.net and http://TWnetwork.de, of level of quota for clothing and textile items. Direct Import and
trade fair organisers, associations for the clothing industry, Outward Processing Trade (OPT) + information on EU
trade organisations and many other useful addresses. The commercial policy on textiles and clothing.
following portals focussed on clothing trade may be useful Access: free
(portals are usually one-stop gateways covering ‘all aspects’ Search: selection by country and/or by product
in a field of study or a line of business): category (MFA/ATC nomenclature)
Language: English + 11 other EU languages
http://www.apparel.net/index.cgi Note: search facilities do not refer to SIGL,
Apparel Net describes itself as: “The Online Guide for the but to the entire EU portal-site http://www.
Apparel Industry: centralised location for over 2,000 links to europa.eu.int
apparel-related resources on the internet/web, trade events,
media, news, press releases and reference library, surveys and http://mkaccdb.eu.int
statistics database format and search device, Interactive Market Access database, EU database covering import/export
Clearinghouse of Information”. restrictions (tariffs and other barriers) with non-EU countries :
Access: free • Applied Tariffs database (free access world-wide)
Search: by category or by words used in the • Sectoral and Trade Barriers database
annotation. • WTO Bound Tariffs database
Language: English. • Exporters’ Guide to Import Formalities
Note: all links are annotated. Access: restricted to users in EU countries only
Search: each feature has a separate search engine
http://www.just-style.com Language: English
Just-Style.com apparel & textile industry portal contains news
articles and searchable archive, events calendar and resources Sites of clothing organisations are:
(annotated industry links). The feature <Knowledge Store > http://www.aedt.org
includes reports from leading (UK) sources such as Mintel, The AEDT (European Association of National Organisations
Key Note etc. of Textiles retailers) site gives information on this
Access: free organisation and its activities.
Search: extensive search engine to search the site full- Main features:
text. < Information & Statistics > key figures on AEDT members
Language: English or associated European countries. This information is
Note: free subscription to < just-style news >, presented in the same ‘AEDT format’ for each country. It also
an e-mail newsletter has a directory of the national organisations of
Language: English. textiles/clothing retailers.
< Calendar of Fashion Fairs >
Sites concerning international trade are: < Ariadne’s Web > European database of fashion brand names
http://www.wcoomd.org Access: free
The World Customs Organisation website contains full text Search: mendriven navigation
documents on international trade policy topics related to Language: English
customs (e.g. GATT, Harmonized System, Rules of Origin
etc.), as well as < Links to Member Administrations >, i.e. http://www.iafnet.org
national customs organisations and < Links to International The IAF site (Interantional Apparel Federation) gives
organisations >, i.e. global and regional intergovernmental information on this organisation and its activities.
organisations. Main features :
Access: free. < Papers and Presentations > of the annual IAF World
Search: search facilities available Apparel Convention are available in full text.
Language: English and French (bilingual). < News > is an on-line quarterly newsletter.
< Member Associations > addresses and websites.
Access: free
Search: mendriven navigation only (the site is
relatively small)
Language: English

118
CBI: YOUR EUROPEAN PARTNER FOR THE EUROPEAN MARKET business-to-business activities and general export market entry support.
Key elements usually include technical assistance in fields such as
The CBI (Centre for the Promotion of Imports from developing countries) is an product adaptation, improving production, implementing regulations and
agency of the Dutch Ministry of Foreign Affairs. The CBI was established in 1971. standards and export marketing and management assistance.
The CBI’s mission is to contribute to the economic development of developing
countries by strengthening the competitiveness of companies from these countries Training programmes
on the EU market. The CBI considers social values and compliance with the most Training programmes for exporters and BSOs on, among others, general
relevant environmental requirements to be an integral part of its policy and export marketing and management; trade promotion; management of
activities. international trade fair participations and developing client-oriented
market information systems. The duration of the training programmes vary
CBI offers various programmes and services to its target groups: between two days and two weeks and are organized in Rotterdam or on
location in developing countries.
Market information
A wide variety of tools to keep exporters and Business Support Organisations BSO development programme
(BSOs) in developing countries in step with the very latest development on the EU Institutional support for capacity building for selected business support
market. organisations.
These include market surveys and strategic marketing guides for more than 40 The programme is tailored to the specific needs of participating BSOs and
product groups, manuals on export planning and other topics, fashion and interior can include train-the-trainer assistance, market information systems
forecasts and the CBI News Bulletin, a bi-monthly magazine. This information can support and staff training. CBI’s role is advisory and facilitative.
also be obtained from our website at www.cbi.nl For all information on non-tariff
trade barriers in the EU CBI has a special database, AccessGuide, at Please write to us in English, the working language of the CBI.
www.cbi.nl/accessguide
And finally CBI’s Business Centre is offering free office facilities, including Centre for the Promotion of Imports from developing countries
telephones, computers, internet and copiers for eligible exporters and BSOs. Centrum tot Bevordering van de Import uit de ontwikkelingslanden
Market reports, international trade magazines, cd-roms and much more can be
consulted in the information section of the business centre. Mailing address:
CBI
Company matching P.O. Box 30009
The company matching programme links well-versed suppliers in developing 3001 DA Rotterdam
countries to reliable importing companies in the EU and vice versa. The online Phone +31 (0) 10 201 34 34
matching database contains profiles of hundreds of CBI-audited and assisted Fax +31 (0) 10 411 40 81
exporters in developing countries that are ready to enter into various forms of E-mail [email protected]
business relationships with companies in the EU, as well as many EU companies Internet www.cbi.nl
interested in importing or other forms of partnerships such as subcontracting or
private labelling. Office:
WTC-Beursbuilding, 5th Floor
Export development programmes (EDPs) 37 Beursplein, Rotterdam, The Netherlands.
EDPs are designed to assist entrepreneurs in developing countries in entering and
succeeding on the EU market and/or in consolidating or expanding their existing
market share. Selected participants receive individual support over a number of No part of this publication may be sold, reproduced in any form or by any
years by means of on site consultancy, training schemes, trade fair participation, means without the prior permission of CBI
 EU MARKET SURVEY 2003
EU MARKET SURVEY 2003

BODYWEAR

BODYWEAR

Mailing address: P.O. Box 30009, 3001 DA Rotterdam, The Netherlands

Phone: +31 10 201 34 34 Fax: +31 10 411 40 81
E-mail: [email protected] Internet: http://www.cbi.nl
CENTRE FOR THE PROMOTION OF IMPORTS FROM DEVELOPING COUNTRIES
Office: WTC-Beursbuilding, 5th floor
37 Beursplein, Rotterdam, The Netherlands