CHILDRENSWEAR in DENMARK 16 Apr 2014 HEADLINES

CHILDRENSWEAR IN DENMARK 16 Apr 2014 HEADLINES

Current retail value declines marginally by less than -1% in 2013 to reach DKr4.1 billion Decreasing fertility rates and export-oriented focus by domestic companies impede value sales Domestic players, with the Danish giant Bestseller the leading player in 2013, compete intensely with H&M Hennes & Mauritz and other high-status players Childrenswear is expected to remain negative throughout the forecast period with a constant value CAGR of -2%, falling to DKr3.8 billion in 2018

COMPETITIVE LANDSCAPE

The two companies that led the overall apparel and footwear industry in Denmark, namely Bestseller A/S and H&M Hennes & Mauritz A/S, were also the same players who dominated value sales of childrenswear in 2013 with a combined share of 24%. Both companies are known for having a wide distribution network with several retail stores spread out geographically in Denmark along with having a strong online presence. Bestseller with its Name It brand and H&M are furthermore both well-known among Danish consumers for offering trendy clothing with good quality at reasonable prices. In 2013, Bestseller’s Name brand It enjoyed a stronger position with a 15% value share compared to H&M’s 9%. Several companies recorded dynamic growth in 2013 such as H&M, Bestseller, Zara and Kabooki, but the most significant gain in value sales in 2013 was by the highly dynamic domestic company DK Co A/S, who with its Creamie brand boosted sales significantly, with almost 70% value growth. The main reason for the strong performance was the Creamie brand being introduced in 2012 as an extension of its popular Cream womenswear brand. Creamie acquired a large portion of its sales from Fransa Kids which was discontinued by DK Co after being acquired from BTX Group A/S the same year. DK Co furthermore sold several of its small childrenswear brands such as Tiny Minymo, Minymo and Gaia & Ko to Brands4children in 2012, opting to consolidate and focus on its new main childrenswear brand Creamie.

NATIONAL BRAND OWNERS AND THEIR BRANDS

Company Name (NBO) Brand (GBO) Active Sportswear International A/S Color Kids (Active Sportswear International A/S) adidas Danmark A/S adidas (adidas Group) BabySam A/S Bekids (Private Label) Benetton Denmark ApS United Colors of Benetton (Benetton Group SpA) Bestseller A/S Name It (Bestseller A/S) Björn Borg AB Björn Borg (Björn Borg AB) Claire Group A/S Hust & Claire (Claire Group A/S) Dansk Supermarked A/S Mads & Mette (Private Label) DK Company A/S Creamie (DK Company A/S) Esprit de Corp Danmark A/S Esprit (Esprit Holdings Ltd) Fritidsagenten A/S The North Face (VF Corp) H&M Hennes & Mauritz A/S H&M (H&M Hennes & Mauritz AB) HTM Group ApS Mini A Ture (HTM Group ApS) Hugo Boss Nordic ApS Hugo Boss (Hugo Boss AG) Hummel International Sport & Leisure A/S Hummel (Hummel International Sport & Leisure A/S) Intersport Denmark A/S McKinley (IIC-Intersport International Corp) Jens Schirmer A/S Gant (Maus Frères SA) Kabooki A/S LEGO Wear (Kabooki A/S) Katvig ApS Katvig (Katvig ApS) Nike Denmark ApS Nike (Nike Inc) Noa Noa ApS Noa Noa Miniature (Noa Noa ApS) Puma Danmark A/S Puma (Kering SA) Queenz ApS Freeze (Queenz ApS) Småfolk I/S Småfolk (Småfolk I/S) Tommy Hilfiger Group Tommy Hilfiger (PVH Corp) Zara Danmark A/S Zara (Inditex, Industria de Diseño Textil SA) Source: Passport by Euromonitor International

FORECAST

DEFINITIONS AND METHODOLOGY

Childrenswear This is the aggregation of baby and toddler wear, boys' clothing and girls' clothing.

Methodology This report is derived from Euromonitor International’s Passport information system. Industry research is carried out by a global team of more than 600 in-country analysts and is based on a core set of research techniques: National-level desk research, company research and analysis, store checking, trade interviewing with national players and market analysis International-level desk research, multinational company research and analysis, trade interviewing with international players and market analysis