Consumption


Total EU consumption of body wear amounted to Euro 36.6billion in 2006. Germany is still the most important market for body wear.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 body wear consumption. Consumption rose by6.4% in the period 2001-2005, which implies an annual average increase of 1.6%.Consumption of body wear 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 body wear in the EU decreased in the period 20012005 by 27% to Euro 10.6 billion. The 2006 forecasts remained very depressed. Italy remained by far the largest producer of body wear accounting for 35% of EU production, followed by Spain, Portugal, France and Germany. Major developments in the EU body wear market are: intensification of price competition among suppliers; increasing internationalization; high degree of integration in the value chain; and increasing concentration.


Trade


The EU market has witnessed the relentless growth of specialized body wear 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 body wear sales in Western as well as in Eastern EU countries.


Imports


The EU member states imported almost 1.4 million tonnes of body wear with a value of Euro 21.8 billion in 2005, of which 51 % came from DCs. This percentage was higher in the following product groups: underwear(53%), Tshirts (54%) and night & home wear (68%) and lower for the product groups: hosiery (35%), swimwear and foundations (each 47%). Total imports of body wear 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 period2001-2005, 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 20012005, which indicates that average import prices fell by 14%.


The different areas showed varied patterns during the period2003-2005: 57% of total imports from DCs came from Asia, growing imports came from China ( 69%), India ( 56%), Bangladesh ( 32%), Cambodia ( 39%), SriLanka ( 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 by 15%during 2003-2005, while exports by Morocco and Tunisia decreased respectively18 and 11%.

 

Exports


The 25 EU member states exported 0.85 million tonnes of body wear with a value of Euro 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 body wear 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 body wear in the EU27 for the period 2007-2009 are optimistic: 6.6% increase is foretasted, 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 body wear 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 manmade 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.


Market Size


The global market for bodywear can be estimated at Euro 120 billion in 2005, of which the EU covered 30%, North America (including the USA) 28%, Asia Pacific (including Japan) 25%, Latin America (8%) and other regions 9%. Total EU consumption of bodywear amounted to Euro 35.5 billion in 2005 and to Euro 36.6 billion in 2006 (partly estimated). Germany is still the most important market for bodywear, as can be derived from the table below, as well as for total clothing consumption in the EU. 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 in 2005. The ranking of Poland (8) was mainly caused by the size of the population and despite a rather low per capita spending on bodywear. Consumption rose by 6.3% in the period 2001-2005, which implies an annual average increase of 1.6%. Consumption of bodywear in Germany and The Netherlands in 2005 was lower than in 2001, while consumption in the UK showed the biggest growth ( 8.2%) of the major countries, followed by Spain ( 6.9%).


 

Consumer expenditure on bodywear (in Euro million) by EU countries, 2001-2009


Sources: Euromonitor, Eurostat and national statistics

Per capita spending in the EU amounted to Euro 80 in 2005. Consumers in Denmark and Austria are the biggest spenders per capita on bodywear in the EU. Looking at the major EU countries, consumption in Belgium (Euro 102), the UK (Euro 95) and Italy (Euro 90) was the highest followed by France (Euro 86) and Germany (Euro 84). Spanish (Euro 79) and Netherlands (Euro 78) consumption were less than the EU average consumption of bodywear.


Bodywear expenditure in the two new accessing countries (Bulgaria and Romania) is much lower than the EU average and amounted to respectively Euro 24 and Euro 26 per capita. Per capita bodywear expenditure in Central and East European countries (CEECs) was much lower than in Western Europe. In terms of future potential, it is clear that the Czech Republic, Slovakia, Slovenia, Poland and Hungary offer greater scope for market growth as incomes and spending patterns approach European norms, although this may still be some years away.


The EU market for women's lingerie - comprising briefs and other products such as vests, knickers, camisoles, teddies, bodies, night dresses, negligees and dressing gowns - was worth an estimated Euro 10.6 billion at retail level (including sales tax) in 2005. Germany has the largest national lingerie market in the EU region, followed by the UK, Italy, France and Spain. The EU market for foundations or women's corsetry comprising bras, corsets, corselettes and girdles - amounted to Euro 8.5 billion. Bras accounted for 41 % of the total value of the lingerie and foundations market in 2005 while the market for briefs represented 24%. However, the high value share of bras reflects the fact that their average price, at Euro 16.15 per item, was several times that of briefs, at Euro 3.30. In volume terms, briefs dominate the market.

 

For the future, the prospects for brands in the bra business appear reasonable. However, the briefs market is becoming intensely competitive as sales of multi-packs in super-and hypermarkets exert downward price pressure on suppliers and other retailers. The prospects for the briefs category would therefore appear to be tough.


The swimwear market in the EU comprises swimsuits and two-piece bikinis for women and girls, and swim trunks for men and boys. The market was estimated to be worth Euro 3.7 billion in 2005, of which women's and girls' expenditure was two times higher than for men and boys; expenditure. Germany is also the most important market for swimwear in the EU followed by Italy. Italy had the highest average prices and the biggest consumption per capita.


The EU market for women's hosiery - comprising nylon tights (pantyhose), stockings and holdups, knee-highs, and ankle-highs amounts to Euro 7.9 billion at retail level (including sales tax) in 2005. The average unit value per pair can be estimated at Euro 2.00 per pair although stockings are more expensive than tights while knee highs and ankle-highs are less so. The largest national market within the EU is Germany, followed by Italy, the UK and France.


Production


Size of Production


Global production of bodywear can be estimated at about Euro 63 billion, however, neither detailed figures nor production figures by area have been encountered.


Development in clothing production by the EU member states can be derived from the table above. Around a third of employees is active in the knitting sector. The EU clothing industry is dominated by a large number of small and medium-sized enterprises; the average company had 10.9 employees in 2005.


Source: Euratex, 2005


According to Prodcom, turnover in the bodywear sector accounted for 12.7% of turnover in clothing production.


Production value of bodywear in the EU decreased in the period 2001-2005 by 27% to Euro 10.6 billion. The declining competitive position caused by increased production costs explain why the total turnover in the EU bodywear sector declined. Preliminary figures for 2006 indicate that production is decreasing again. According to Prodcom, Italy remained by far the largest producer of bodywear accounting for 35% of EU-25 production, followed by Spain, Portugal, France and Germany. All major EU countries recorded setbacks, while Poland registered an increase in bodywear production. The Czech Rep. and Slovakia managed to cope with the situation.


 

Trends


The 2006 forecasts remained very depressed. Several member states registered a two-digit decrease in production, sometimes from already very low production levels.


v      For whole 2005 and following years, the activity of the EU clothing sector will decrease furthermore by:


-          the growing penetration rate of Asian imports linked to changes in the EU quota policy.

-          the exchange rate of the euro, which is unfavorable to exporters.


Sources: Prodcom and Euratex


v      Price competition among suppliers has intensified, resulting in a very slow growth in production prices. This is causing concern among EU producers, who are finding it increasingly difficult to match low import prices.


v      Increasing internationalization; EU companies expand their activities intensively and their products are available in many European countries.


v      High degree of integration in the value chain; several producers opened their own chain(s) and many suppliers started a close and long-term co-operation with distribution channels, which increases the entry barriers for new suppliers.


v      Increasing concentration; the number of suppliers decreased and many suppliers have merged or have taken over other suppliers.


Trade: Imports and Exports Total EU Imports


Total EU Imports

The EU member states imported almost 1.4 million tonnes of bodywear with a value of Euro 21.8 billion in 2005, of which 51 % came from DCs. 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 12.5% in the period 2001-2005, caused by factors like 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 (6%) ranked seventh, followed by Austria (4%) and Denmark (2%).

 

Developments in imports of bodywear vary strongly per EU country. This depends on several factors like size and structure of domestic production of bodywear, the possibilities and volume of re-exports, developments in demand. EU countries can be divided, by developments in value of imports during the period 2003-2005, into:


v      Booming imports in Estonia ( 120%), the Czech Republic ( 66%) and Slovakia ( 63%).

v      Considerably growing imports (between 20 and 30%) in Italy, Spain, Ireland, Greece and Latvia.


v      Strongly growing imports (between 10 and 20%) in United Kingdom, Belgium, Malta and Cyprus.


v      Growing imports, above the EU average of 5.4% and below 10%, in France, Austria, Finland, Poland and Slovenia.


v      Slowly increasing imports (between o and 5.4%) in Denmark.


v      Slowly decreasing imports (between o and 10%) in Germany, The Netherlands, Sweden, Portugal, Luxembourg and Lithuania.


v      Sharply decreasing imports (between 10 and 20%) in Hungary.

Source: Eurostat (2006)


China and Turkey remained the EU's major bodywear sup'pliers, before the EU countries Germany, Italy and France. Imports from China increased considerably: 87% in the period 2001-2005 and 69% in the period 2003-2005. In 2001, 10% of EU imports came from China and in 2005; 14%. Imports from Turkey increased 54% in the period 2001-2005 and 15% in the period 2003-2005. The role of DCs increased strongly in the period 2001-2005 from 45% in 2001 to 51 % in 2005. Imports from DCs rose by 22% in the period 2003-2005 and intra-EU trade by 13%. However, while imports from countries outside the EU (excluding DCs) fell dramatically by 45% during the same period, mainly caused by far East countries like Hong Kong, South Korea and Taiwan.


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 CBl website. For information on how to make optimal use of the CBI market surveys and other CBl market information. please consult 'From survey to success - export guidelines'. All information can be downloaded from http://www.cbi.eu/marketinfo, go to 'Search CBI database' and select your market sector and the EU .

 

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