Professional Documents
Culture Documents
GERMANY
2 GERMANY
50
2.2 THE MARKET FOR 2.2.2 Market characteristics
OUTERWEAR
The present situation of the outer-
2.2.1 Market size wear market in Germany can be
characterised by the following
Although the general economic brief statements:
situation at the beginning of 2005
was disappointing, Germany still Clothing items from the outerwear
represents by far the largest sin- segment can be characterised by
gle market within the EU, with an a permanent price decrease. The
estimated total sales volume in main reason for this is the produc-
clothing of 55.6 billion € in 2004 tion of garments from low-wage
(Statistics BTE Cologne 2005, countries. Product imitation has
amounts at retail prices including become easier through global
VAT). production, easy communication
by Internet / e-mail and liberalised
In 2004, annual clothing sales trade.
(including outerwear) shrank in
comparison with other consumer Renowned market research insti-
expenditures (they decreased by tutes have stated that the ‘middle
2.3% in comparison to 2003). The market segment’, (which is cha-
year was dominated by a signifi- racterised by quality conscious-
cant decrease of all sales which ness and ‘brand orientation’) has
amounted to approximately 2 billi- become much smaller in recent
on €. There is no real change visi- years. The outerwear and clothing
ble at the moment as there will be market are moving in two directi-
no growth in 2005. The negative ons: (a) value/price and (b)
retail trends must also be seen in trend/fashion, whilst the middle
the light that private household segment is decreasing.
expenditures have increased by
3.5% in the years 2001-2004.
Nevertheless, clothing consumpti-
on fell constantly during recent
years so that only 5.40 € out of
100 € disposable are being spent
on clothing.
51
2.2.3 Demographic characteristics The younger generation under
25 is comparatively small, e.g.
Figure 2-1 shows that the major the age group between 20 and
population segment by age 24 represents only approx. 4.5
group is between 40 and 44 million Germans (5.5% of the
years of age (approximately 7.5 whole population). The smallest
million – male and female), follo- potential ‘target group’, apart
wed by those in the 35-39 brak- from those over 70, is the seg-
ket (approximately 7 million ment under 10 years of age. The
people). In other words, consequences of this for clothing
Germans in their early forties manufacturers from foreign
represent the largest target countries are evident.
group (in numbers only).
Germany: 2005
100+
95-99
90-94
male 85-89
female
80-84
75-79
70-74
65-69
60-64
55-59
50-54
45-49
40-44
35-39
30-34
25-29
20-24
15-19
10-14
5-9
0-4
4,0 3,5 3,0 2,5 2,0 1,5 1,0 0,5 0,0 0,0 0,5 1,0 1,5 2,0 2,5 3,0 3,5 4,0
Population (in millions)
52
2.2.4 Retail sales by product category There are several ways of seg-
menting the clothing market.
Table 2-1 shows that, in terms Table 2-1 provides an overview of
of turnover development, the the turnover development in the
womenswear market increased major product segments, in per-
by 5% between 2002 and 2005, centages, covering the main
while the menswear market highly items of ladies’, men’s and chil-
increased by 10%; the negative dren’s outerwear analysed by this
turnover in 2002 had been trans- survey.
formed into a positive value of 2%
in the first half of 2005. The chil- All three major segments (ladies,
drenswear market increased by men, children) see a turnover
9%. 'boom' during the years 2003 to
Table 2-1: Outerwear turnover 2004, where all turnover values
development in % by sex and pro- increased highly and nearly turned
duct categories, 2002 - 2005 into positive figures.
Ladieswear -6 -5 -2 -1
coats -10 -8 -5 15
suits -12 1 4 -1
jackets/blazers 2 -8 0 3
dresses -18 -7 -5 -9
trousers -4 3 2 -3
jeanswear -4 -2 3 8
Menswear -8 -4 0 2
coats -14 -5 1 10
suits -8 2 8 5
blazers -12 -9 -3 -2
jackets -6 -6 -3 4
trousers -9 -3 2 -1
jeanswear -2 -3 3 2
Childrenswear -9 -10 -1 0
54
Table 2-2: Clothing retail channels by market share, 2000 - 2004
Specialists 56 55 54
independent retailers 28 27 25
Clothing multiples 28 28 29
Non-specialists 44 45 46
Department/variety stores 13 13 12
Sports shops 3 3 3
Other 9 9 9
55
Table 2-3: Consumer patterns with regard to interest in fashion, purchase
timing, brand awareness and bargains by sex, 2005
Ladies Men
Interest in Fashion
I am interested in the latest fashion trends 82.0% 18.0%
I often talk about fashion 87.9% 12.1%
Purchase Timing
I often buy fashion at the beginning of the season, 68.2% 31.8%
when the new range comes into the shops
I often buy fashion at the end of the season, 59.0% 41.0%
when prices have already been reduced in many places
of which:
57
Table 2-6 shows average retail
prices of consumer expenditures
per clothing article.
Trousers (classic) 84 89
Trousers (leisure) 71 73
Jeans 76 76
Sweatshirt 76 71
Shirt 46 44
Polo shirt 28 28
Tie 32 30
Table 2-7: Clothing price index relative to national consumer price index,
2003 - 2005
59
Table 2-8: Imports of knitted outerwear by sex and product categories, 2002 - 2004
Shirts (61.05) 9 928 198 832 10 015 178 286 7 783 198 762
Total 15 337 320 717 16 494 297 104 20 238 327 874
Total extra EU 11 152 182 344 12 745 178 017 14 693 188 529
Coats, raincoats, ano- 4 227 98 497 7 243 130 088 7 454 121 718
raks etc. (61.02)
Suits, outfits, jackets, dres- 33 380 607 051 40 439 633 234 40 497 605 092
ses, skirts, trousers (61.04)
Blouses and shirt blou- 11 018 281 790 11 714 271 419 12 623 288 580
ses (6106)
Total 48 625 987 338 59 396 1 034 740 60 573 1 015 389
Total extra EU 37 876 640 097 47 727 706 289 48 027 695 522
T-shirts,singlets etc.(61.09) 111 146 1 960 769 132 170 2 127 672 146 863 2 308 693
Jerseys, pullovers, 135 128 2 933 571 151 718 2 866 040 146 076 2 718 103
cardigans, waistcoats
etc. (61.10)
Babies garments (61.11) 9 540 190 681 11 357 196 367 13 935 193 907
Total 258 174 5 132 878 296 222 5 209 250 307 675 5 235 979
Total extra EU 201 734 3 300 627 238 761 3 548 496 251 423 3 692 544
Active Sportswear
Track suits, ski suits and 7 736 221 841 9 948 238 659 12 617 247 627
swimwear (61.12)
Other sportswear (61.14) 3 196 109 395 3 266 99 921 4 358 119 792
Total 10 932 331 237 13 241 338 580 16 974 367 419
Total extra EU 8 112 206 288 10 284 219 616 13 002 236 840
Source: Office of National Statistics (ONS): Consumer Trends, 2005 – deflators.
60
Table 2-9 shows that the share of share of non-EU countries was
non-EU countries in total imports also at a very high level of 70.5%
for woven outerwear items is (year 2004 - value terms). As for
even higher than for knitted items. knitted outerwear, there was a
78.8% of men’s and boys’ outer- general upswing in imports of
wear in 2004, for example, origi- woven outerwear between 2003
nated from non-EU countries. For and 2004.
women’s or girls’ outerwear the
Table 2-9: Imports of woven outerwear by sex and product categories, 2002 - 2004
Coats, anoraks, windcheaters 25 038 577 659 28 390 523 800 31 545 486 597
etc. (62.01)
SuitSuits, jackets, outfits, trou- 119 318 2 650 541 126 953 2 592 882 141 808 2 669 557
sers, shorts etc. (62.03)
Shirts (62.05) 36 916 777 378 40 592 755 845 39 776 725 981
Total 181 272 4 005 578 195 934 2 990 221 213 128 3 882 136
Total extra EU 151 938 3 041 561 165 056 3 872 528 181 305 3 059 571
Coats, capes, anoraks, wind 38 207 860 435 44 605 834 477 53 056 853 193
jackets etc. (62.02)
SuSuits, outfits, jackets, dres- 137 961 3 571 079 140 328 3 321 803 155 043 3 410 037
ses, skirts, trousers (6204)
Blouses and shirt blouses 28 905 913 740 27 619 806 313 25 292 691 315
(6206)
Total 205 072 4 005 578 195 934 3 872 528 307 675 5 235 979
Total extra EU 172 674 3 041 651 165 056 2 990 221 251 423 3 692 544
Other incl. Impregnated (62.10) 15 396 350 263 16 683 298 629 17 227 266 162
Total 19 711 429 233 21 938 378 469 23 430 349 036
Total extra EU 14 030 315 286 15 026 266 538 15 409 246 329
13 Israel 0 0 71
20 Maldives 0 0 14
62
2.3.3 Largest suppliers of outerwear
63
Table 2-11: Largest supplying countries of outerwear, 2002 - 2004
64
2.4 TRADE STRUCTURE New outlets whose main business
is not clothing, such as Tchibo
2.4.1 Developments in the retail trade (coffee sales with over 1000 own
shops) and Aldi (supermarkets)
The major developments in have gained importance and
German clothing retail structure become the ‘winners’ over the
are as follows: last 2-3 years. Large cash-and-
carry markets have extended
The clothing retailers were more their sales area including the texti-
or less forced to continue their le range, and also have gained
‘trading down policy’, or in other importance.
words have not managed to
increase prices. Known brands Retailers tend to work with fewer
are sold at reduced prices and but more efficient clothing sup-
‘cheap’ trade brands have been pliers with faster deliveries and
created. The higher segment EDP support. Four out of five
shows price increases but this is companies would like to work with
of absolutely minor importance. fewer suppliers. 69% of all retailers
Expansion of price aggressive want to buy on a more short-term
retail outlets – in the clothing sec- basis.
tor mainly represented by ‘vertical
chains’ such H&M, MANGO, The internationalisation of the
ZARA, Vero Moda, Tally Weijl etc. German market with increasing
Other retailers mainly suffer from market share by chains such as
decreasing turnover, less profit, H&M Sweden, GAP USA, Auchan
lower frequency in the shops and France (ORSAY, PIMKE), Inditex
increased costs. (ZARA) and MANGO Spain etc.
continued in 2004/2005, and it
Changes in the size structure of can be expected that the vertical
outlets – the tendency for larger chains with their fast delivery
units has decreased. Even larger rhythms will continue their expan-
clothing retailers have lost their sion strategy in the future.
market share or had to leave the
market (such as BOECKER, C&A). In the future, textiles and clothing
The tendency for more outlets shopping will be more combined
continues – the so called ‘vertical with lifestyle and entertainment in
retailers’, who manage the whole the German cities, e.g. in the form
scale from collection develop- of ‘Urban Entertainment Centres’
ment, production (outsourcing) such as Stilwerk or SEVENS in
and sales via their own shops, Düsseldorf or the COLONADEN in
dominate the best shopping Hamburg.
areas beyond Germany’s largest
cities.
65
2.4.2 Leading retailers German textile retailers. This ana-
lysis was carried out by the
Table 2-12 gives an excellent renowned trade magazine Textil-
overview of the structure and the wirtschaft/Frankfurt on an annual
development of the largest basis.
Table 2-12: Major specialised clothing, sports chains and discounters in Germany,
2004/2005
Hennes & Mauritz Hennes & Mauritz (Sweden) General clothing 282 1,800
Peek & Cloppenburg Peek & Cloppenburg West General clothing 78 1,360
Peek & Cloppenburg Peek & Cloppenburg Nord General clothing 26 342
Mister + Lady Jeans Western Store Beran Leisure wear 193 119
66
Retail chain Parent company Sector Outlets Turnover
2003 inm.
1) turnover in textiles and clothing 2) mentioned discounters are textile and/or clothing discounters
a), b) and c) only consolidated figures are given
67
Table 2-13 and Table 2-14 give a customers. For the members of
good overview of the ‘winners’ the losers list, it can be assumed
and ‘losers’ among clothing retai- that they are not really looking for
lers in Germany. It may be a good new suppliers as they are trying to
idea for clothing exporters from manage the decrease in sales
abroad to include the best-perfor- and perhaps even cut down the
ming retailers in their list of target list of suppliers.
68
2.4.3 Distribution channels
Specialists 56 55 54
Independent retailers 28 27 25
Clothing multiples 28 28 29
Non-specialists 44 45 46
Department/variety stores 13 13 12
Sports shops 3 3 3
Other 9 9 9
69
2.4.3.1.2 Clothing multiples 2.4.3.1.4 Mail-order houses
70
2.4.3.1.5 Textile discounters 2.4.3.1.7 Others
71
Due to its proximity to Eastern Some buying associations had to
European countries, Germany close down or had serious pro-
was the ‘pioneer’ country in out- blems (such as Sütex, Kaufring).
sourcing production in the The leading associations are
neighbouring countries to the Katag/abz in Bielefeld, KMT in
East. The clothing industry has Cologne and Unitex in Neu-Ulm.
been shrinking since the begin- Some, such as Ardek in
ning of the nineties, to the point Hofheim/Wallau specialise in chil-
where now only the ‘fittest’ have drenswear, or Intersport in Munich
survived. There are over 500 specialising in active sports- and
reputable clothing companies in hardware. The German buying
Germany. They can be contacted associations also have members
through the German Clothing from the Netherlands, Belgium,
Manufacturers Association (BBI) in Austria and Switzerland.
Cologne.
2.4.3.2.3 Sales agents
Larger companies such as TOM
TAILOR, CARLO COLUCCI, S. OLI- Sales agents for clothing in
VER, STREET ONE and so on Germany play a major role in the
(also) sell through their own out- market, especially for the
lets. These brands are normally renowned clothing brands. The
positioned in the mid- to upper more reputable agents are mem-
market segment. The tendency bers of the Central Association of
towards self-retailing by clothing German Sales Agents (CDH) in
brands/manufacturers has increa- Cologne. They often have their
sed and taken on different forms own showrooms in fashion cen-
such as concessions, shop-wit- tres of major German cities such
hin-the-shop, sales corners in as Neuss/Düsseldorf, Frankfurt,
department stores and own Hamburg, Munich and so on. Only
mono-brand shops. strong manufacturers from non-
European countries with a market
2.4.3.2.2 Central buying associations oriented range and an excellent
service might find the right partner
55% of all independent clothing in the CDH News published
retailers in Germany are members monthly.
of a buying association. These
figures underline the significant
role of buying associations for the
majority of specialised indepen-
dent retailers. The buying policy is
similar to that of multiple stores
(buying directly or through buying
agents abroad). They operate in
the mid- to upper market seg-
ment.
72
2.4.3.2.4 Importers/wholesalers called ‘Global Fashion’ (a fair within
the fair) of the CPD in Düsseldorf is
It is estimated that there are over generally a good choice, since
1,000 importers/wholesalers for many buyers from Germany,
clothing in Germany. They range Belgium, Luxemburg, Netherlands
from very small units run by the as well as to a certain extent from
owner, up to larger companies Austria and Switzerland tend to
with more than 100 employees visit this fair when they look for
worldwide such as Miles, Jebsen new suppliers.
& Jessen, Nickel etc. They often
operate through their buying Leading fashion fairs have suffe-
offices in the Far East, which take red from the market develop-
over the order and control functi- ments. Nevertheless, for ‘main-
on on the ‘sourcing spot’. The stream’ fashion manufacturers
importers/wholesalers have an from developing countries, the
important role, they have excel- German clothing fairs are still a
lent know-how about worldwide very good choice (from a com-
sourcing and supply directly to all mercial point of view).
kinds of retailers in Germany and
the neighbouring countries. The For the active sportswear market
most reputable importers are (including footwear and sports
members of the Association of equipment), which is partially
non-food importers (VFI) in Ham- covered by the products specified
burg. for this study, the ISPO Fair
in Munich plays a leading role
2.5 GERMAN FASHION TRADE for Germany and Europe.
FAIRS Approximately 1,600 exhibitors
from more than 40 countries
For womenswear, the main event show their products in February
not only for Europe but also and July each year. The ISPO
worldwide is the CPD Fashion Fair management has split up the fair
in Düsseldorf, which is organised into 14 ‘special fairs’ such as
twice per year (February and July) Teamsport ISPO, Fitness ISPO,
by the IGEDO company. Wellness ISPO, etc.
Approximately 44,000 visitors and
around 1,500 international exhibi- There have been tremendous
tors attend per event. The fair changes and challenges for the
organisers have grouped the fair German textile and clothing fairs
in different ‘theme worlds’ (CPD since 2000 and this trend can be
Show, Gallery Show, CPD White expected to continue in the next
Show, New Discovery Fashion). few years. The shift in the ‘classi-
cal’ menswear segment from
For manufacturers from emerging Cologne to Düsseldorf was the
or developing countries the so initial factor.
73
Some two years back many repu- In most clothing segments, from a
ted jeans and sportswear brands commercial point of view, the
moved to the ‘Bread and Butter’ in German fairs still have the leading
Berlin. The fair organisers are per- position within Europe although
manently working on developing some other fairs (particularly in
the fair structure and services: the Italy) have taken over the ‘fashion
idea being that the visitor should leadership’. Among German retai-
have the most efficient and conve- lers, the fairs mentioned above
nient way to become informed are regarded as ‘information plat-
about fashion trends and to buy form No. 1’ to a very large extent.
the clothing they require.
BREAD & BUTTER BERLIN tradeshow for selected brands 27.–29.1.2006 Berlin
BREAD & BUTTER BERLIN tradeshow for selected brands July 2006 Berlin
74
Trade fair Date Location
Further details to fairs (e.g. number of exhibitors, product range and visitors) can be
reviewed on the website www.auma.de.
75
2.6 LIST OF MAJOR BUYERS OF LADIES’, MEN’S AND
CHILDREN’S WEAR IN GERMANY
77
Peek & Cloppenburg KG Product range: Ladies men’s and
Berliner Allee 2 childrenswear
D - 40212 Düsseldorf Price segment: Upper level
Tel.: +49 – 211 – 3662 – 0 Number of outlets: 70
Fax: +49 – 211 – 3662 – 605
dialog@peekundcloppenburg.de
www.peekundcloppenburg.de
78
Charles Vögele Deutschland Product range: Ladies’, men’s and
GmbH childrenswear
Zeppelinstrasse 2-8 Price segment: Lower to mid level
72488 Sigmaringen Number of outlets: 352
Tel.: +49 – 7571 723 111
Fax +49 – 7571 723 171
www.voegele-mode.de
79
Karstadt/Quelle AG Product range: Ladies’, men’s,
Theodor-Althoff-Str. 2 childrenswear and sportswear
D - 45133 Essen Price segment: Mid to upper level
Tel.: +49 – 201 – 727 – 1 Number of outlets: 122
Fax: +49 – 201 – 727 – 5216
www.karstadtquelle.de
80
Clothing Manufacturers (importing) and Wholesalers/Importers:
81
F.W. Brinkmann GmbH Manufacturer of classic men’s and
Waltgeristr. 1-5 sportswear (mainly CMT business –
D - 32049 Herford brand orientated)
Tel.: +49 – 5221 – 884 – 0
Fax: +49 – 5221 – 884 – 281
www.bugatti.de
82
HUCKE AG Multi Brand manufacturer of ladies’,
Ravensberger Str. 41 men’s and childrenswear (full import
D - 32312 Lübbecke and CMT)
Tel.: +49 – 5741 – 364 – 0
Fax: +49 – 5741 – 364 – 414
www.hucke.de
83
HEINRICH HEINE GMBH Products: Home textiles, furniture,
Windeckstr. 15 accessories, ladies’, menswear
D - 76135 Karlsruhe Price segment: Mid to upper level
Tel.: +49 – 721 – 9910 Note: more classic styles
Fax: +49 – 721 – 9911886
www.heine.de
84
Jeans-, Sportswear and Young Fashion
85
VF GERMANY TEXTILHAN- Product range: Jeans
DELS GMBH H.I.S. Division Price segment : Mid to upper level
Daimler Str. 15 Note: Manufacturer + clothing chain
D - 85748 Garching/ München
Tel.: +49 – 89 – 329070
Fax: +49 – 89 – 32907108
www.his-jeans.de
MUSTANG, Bekleidungs-
werke GmbH & Co.KG Product range: Jeans and sports-
Austraße 10 wear
D - 74653 Künzelsau Price segment : Mid to upper level
Tel.: +49 – 7940 – 125 – 0 Note: Manufacturer + clothing chain
Fax: +49 – 7940 – 125 – 102
www.mustang.de
Buying Associations
ARDEK EG
Robert Bosch Str. 9 Product range: Products for children,
D - 65719 Hofheim-Wallau childrenswear
Tel.: +49 – 6122 – 72 – 0 Price segment: Mid to upper level
Fax: +49 – 6122 – 72338 Member companies: 408
www.ardek.de
INTERSPORT
DEUTSCHLAND EG Product range: (Active) sportswear
Wannenäckerstr. 50 Price segment: Mid to upper level
D - 74078 Heilbronn Member companies: 1,450
Tel.: +49 – 7131 – 288 – 0 Note: Market leader for active
Fax: +49 – 7131 – 21257 sportswear
www.intersport.de
KATAG AG
Stralsunder Str. 5 Product range: Men’s, ladies’ and
D - 33605 Bielefeld childrenswear
Tel.: +49 – 521 – 292 – 800 Price segment: Mid to upper level
Fax: +49 – 521 – 292 – 810 Member companies: 700
www.katag.de
86
KURTENBACH GMBH & CO. Product range: All kinds of garments
KG G TEXTILGROßHANDEL Price segment: Lower level
Offheimer Weg 45 Member companies: 2000
D - 65549 Limburg
Tel.: +49 – 6431 – 503 – 0
Fax: +49 – 6431 – 503 – 201
87