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EU Bodywear Survey CBI MARKET SURVEY: THE BODYWEAR MARKET IN THE EU CBI MARKET SURVEY THE BODYWEAR MARKET IN THE EU Publication date: May 2007 CONTENTS REPORT SUMMARY ..................................................................................................... 2 INTRODUCTION.......................................................................................................... 4 1 CONSUMPTION ..................................................................................................... 5 2 PRODUCTION ..................................................................................................... 14 3 TRADE CHANNELS FOR MARKET ENTRY .............................................................. 18 4 TRADE: IMPORTS AND EXPORTS ........................................................................ 22 5 PRICE DEVELOPMENTS ....................................................................................... 28 6 MARKET ACCESS REQUIREMENTS....................................................................... 30 7 OPPORTUNITY OR THREAT ? .............................................................................. 33 APPENDIX A PRODUCT CHARACTERISTICS............................................................ 35 APPENDIX B INTRODUCTION TO THE EU MARKET ................................................. 42 APPENDIX C LIST OF DEVELOPING COUNTRIES .................................................... 43 APPENDIX D REFERENCES ..................................................................................... 45 This survey was compiled for CBI by Fashion Research & Trends Disclaimer CBI market information tools: http://www.cbi.eu/disclaimer Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer Page 1 of 45 CBI MARKET SURVEY: THE BODYWEAR MARKET IN THE EU Report summary This survey profiles the EU market for bodywear and includes the product groups: daily underwear, foundation wear, night- and home wear, swim- and beachwear, hosiery and socks and T-shirts. Consumption Total EU consumption of bodywear amounted to € 36.6 billion in 2006. Germany is still the most important market for bodywear, however, the difference compared with other major countries, like the UK, Italy and France has become much smaller. Seven countries (Germany, UK, Italy, France, Spain, The Netherlands and Belgium), indicated in this survey as the major EU countries, accounted for 78% of EU bodywear consumption. Consumption rose by 6.4% in the period 2001-2005, which implies an annual average increase of 1.6%. Consumption of bodywear in Germany and The Netherlands was in 2005 lower than in 2001, while consumption in the UK showed the biggest growth (+8%) of the major countries, followed by Spain (+7%). Production Production value of bodywear in the EU decreased in the period 2001-2005 by 27% to € 10.6 billion. The 2006 forecasts remained very depressed. Italy remained by far the largest producer of bodywear accounting for 35% of EU production, followed by Spain, Portugal, France and Germany. Major developments in the EU bodywear market are: intensification of price competition among suppliers; increasing internationalisation; high degree of integration in the value chain; and increasing concentration. Trade The EU market has witnessed the relentless growth of specialised bodywear as well as general clothing multiple chains and franchised outlets, leading to the decline of the formerly strong independents’ sector. This trend will be continued in the coming years. The hypermarket format, with its strong non-food component and international character, plays an increasingly important role in bodywear sales in Western as well as in Eastern EU countries. Imports The EU member states imported almost 1.4 million tonnes of bodywear with a value of € 21.8 billion in 2005, of which 51% came from DCs. This percentage was higher in the following product groups: underwear (53%), T-shirts (54%) and night & home wear (68%) and lower for the product groups: hosiery (35%), swimwear and foundations (each 47%). Total imports of bodywear increased, while production for the EU market decreased, which indicates that the import share in the slightly increasing consumer market grew. The average import price fell by 13% in the period 2001-2005, caused by factors like an intensified price competition among suppliers and a cheaper US dollar. Germany remained the leading importer despite a fall in imports of 5% in the period 2003- 2005. It had an import share of 20% in terms of value, followed by the UK (18%), France (15%), Italy (9%), Spain (7%) and Belgium (6%). The Netherlands ranked seventh, followed by Austria and Denmark. Total EU imports from DCs increased in terms of volume (+61%) and value (+ 38%) in the period 2001-2005, which indicates that average import prices fell by 14%. The different areas showed varied patterns during the period 2003-2005: 57% of total imports from DCs came from Asia, growing imports came from China (+ 69%), India (+ 56%), Bangladesh (+ 32%), Cambodia (+39%), Sri Lanka (+21%) and Thailand (+20%), while imports from Pakistan (-13%) and Indonesia (-9%) decreased. 40% of imports from DCs came from the Mediterranean, mainly from Turkey, Morocco and Tunisia. Turkish exports to the EU grew 15% during 2003-2005, while exports by Morocco and Tunisia decreased respectively 18 and 11%. Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer Page 2 of 45 CBI MARKET SURVEY: THE BODYWEAR MARKET IN THE EU Exports The 25 EU member states exported 0.85 million tonnes of bodywear with a value of € 12.6 billion in 2005, representing an increase in value of 14% in 2001-2005. Export activities by the EU countries vary strongly. The leading EU exporter of bodywear in 2005 was Italy (18% of total EU exported value), followed by Germany (15%), France (11%), Belgium (9%) and Portugal (7%). Opportunities for exporters in developing countries Expectations for consumer expenditure on bodywear in the EU-27 for the period 2007-2009 are optimistic: 6.6% increase is forecasted, following a growth of 6.5% in 2005-2007. EU countries remained strong and attractive markets for exporters. The number of garments purchased per head of population will continue to rise, but prices will not follow this growth rate. Experts forecast that bodywear expenditure in several of the ten EU member states, i.e. those which became members in May 2004, will continue to see robust growth in the period to 2009. To satisfy the requirements of importing European companies, the exporters in DCs will be faced with increased demands for higher quality and environmentally friendly products. Imports from DCs are important and still rising in almost all product groups. There is a tendency to use more natural fibres, mainly cotton and blends with cotton, at the expense of man-made fibres. However, in countries like among others Italy and the UK, lingerie of man-made fibres takes a much higher share than the EU average Growth in the market is being depressed through strong price competition, in particular for basic products. However, despite the devaluation of the market, quality remains important. Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer Page 3 of 45 CBI MARKET SURVEY: THE BODYWEAR MARKET IN THE EU Introduction This CBI market survey profiles the bodywear market in the EU. The emphasis of this survey lies on those products, which are of importance to developing country suppliers. The role of, and opportunities for, developing countries (DCs) are highlighted. This market survey discusses the following product groups: • Underwear for women/girls: (under-) pants, knickers or briefs, vests, petticoats, underskirts or slips (full and half), bodies, teddies (all-in-one camisoles and knickers) and French knickers for women; • Underwear for men/boys: (under-) pants or briefs, boxer shorts for men and, (under-) vests; • T-shirts for men and women. As described in appendix A of this survey, T-shirts have a multi-functional character in clothing behaviour. For that reason, T-shirts are not included in statistics about consumer expenditure but are mentioned separately; • Foundation wear: bras (short for brassieres), corselettes, corsets, girdles and suspender-belts; • Night- and homewear. Nightwear includes nightdresses, pyjamas and negligees for women and nightshirts and pyjamas for men. Home or loungewear covers dressing gowns, housecoats and bathrobes; • Swim- and beachwear: one and two-piece (bikinis) swimsuits for women, and swimming trunks and bermudas for men; • Hosiery: pantyhose, tights, stockings and, ankle- and knee-length socks. For detailed information on the selected product groups please consult appendix A. More information about the EU can be found in appendix B. In this survey, EU means the EU-25 unless otherwise indicated. Bulgaria and Romania joined the EU on January 1, 2007. For that reason, these countries have been added to some specific tables and country surveys are also available for these new EU member states. CBI market surveys covering the market in specific EU member states, specific product (group)s or documents on market access requirements can be downloaded from the CBI website. For information on how to make optimal use of the CBI market surveys and other CBI market information, please consult ‘From survey to success - export guidelines’. All information can be downloaded from http://www.cbi.eu/marketinfo, go
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