Denmark's fourth largest export business is the textile and clothingindustry. Due to continuing in the textile and clothing market as a whole,textile and clothing imports are expected to increase. Export is highest amongcountries closest to Denmark particularly through Scandinavia.
Denmark is good test market for an Indian exporter wishing to dobusiness in North Europe because of the country's small size as well as its lowbarriers to entry. While there are many Danish designers who create viable, innovativeand unique clothes for children and adults, there remains a strong market forIndian imports.
Denmark is one of the fastest growing markets for Indian MMFTextile exports. From Rs.12.63 crores exports in 2003-04 Indian MMF exports havegrown by over 107% to reach Rs.25.86 crores in 2007-08, an average cumulativeannual growth rate (CAGR) of nearly 20%, year-on-year. Exports of Made-ups dominateInda's total exports of MMF textiles to Denmark with 81% share (Rs.20.89crores) of the total exports followed by fabrics 9.24% (Rs.2.39 crores), yarn 8.93%(Rs.2.31 crores) and Fibre 1.04% (Rs.27 lakhs) Presently, the main items of IndiasMMF textile exports to Denmark consist of Shawls/Scarves (Rs.5.42 crores) OtherMade-ups (Rs.4.18 cores), Net/Fishing Net (Rs.2.12 crores). Muffler (Rs.1.94crores), Bed Linen/ Spreads/sheets (Rs.1.51crores). Bed Linen/ Spreads/sheets (Rs.1.51 crores Rope (Rs.72 lakhs), Curtains/ Furnishing Articles (Rs.41.94lakhs), Dishcloths/Dusters (Rs.22.60 lakhs), polyester wool fabrics (Rs.75lakhs), Polyester Viscose Fabrics (Rs.40 lakhs), polyester filament fabrics(Rs.23lakhs), Polyester Cotton Fabrics (Rs.22 lakhs), Viscose Spun Yarn(Rs.1.44 Crores), Partially Oriented yarn (Rs.61 lakhs) and Viscose FilamentYarn (Rs.31 lakhs)
Denmark
Denmark's overall textile and clothing imports amounted to US$4.76billion (Rs.20, 463 crores) during 2006, Apparels, Made-ups and MMF textiles coveredunder chapter 61,62,63,54 and 55constitute the majority (86%) of the totaltextile and clothing Imports.
Denmark is the 9th largest importer of outerwear in the EU- 27,behind The Netherlands (7th) and Austria, and accounted for 2.7%ofEU total imports in 2006. Imports of knitted outwear consisted of T-shirts (33%0)jerseys, pullovers etc. (32%), blouses and shirts (12%), sportswear (6%) andtrousers, shorts etc. (5%).
Textile & Clothing Imports
In 2002 Denmark's imports of MMF textiles including made-ups amounted to US$455 million In 2006 they exceeded US$606 million; imports of MMF textiles and made-ups registered a growth of MMF textiles and made-ups registered a growth of over 33%compared to what they were 5 years ago. Most of Denmarks MMF Textile imports come from Germany, Italy, Netherlands, Austria, Belgium, UK, China and France. Indias percentage share in this market is below.2% Denmarks population is rather stable;5.3 million in 1999 and 5.4 million in 2006 In 2010 the population is however, set to fall to 4.9 million and is projected to fall further by 2050 to 4.7 million.
Imports of MMF Textiles & Made-Ups By Denmark
The disposable income of Danish citizens has increased in recent years, making consumers more likely to spend a greater proportion of their income on designer clothing, brand-name fashion, and lower priced fashion items. A greater availability of low cost clothing and the higher disposable income has shifted Danish consumers from repairing older clothing items to purchasing more new items. The Danes are concerned with social responsibility and exhibit concern for where and how goods are produced, including both raw materials and labor conditions. The demand for organic clothing is growing especially for children's wear. Denmark has a leading market position within childrens fashion and has a number of children's clothing designers. Scandinavian childrens wear tends to be more trendy or innovative than in other European countries. The success of the Danish childrens wear market reflects the amount of money spent on children's clothing by families with children, who are spending an increasing amount of disposable income on children. According to Denmarks Statistics, a household of two adults without children spends approximately US$2,400 on clothing, while a household with at least one child spends approximately US$4,200 per year. Following the greater trend for mens cosmetics and fashion, man is also spending a greater proportion of their income on clothing.
Imports of MMF Textiles Into Denmark
Denmark enjoys a strong design reputation. However, Danish designers do not occupy the highest rungs of the fashion industry and do not compete with well-known international luxury brands. The Danish apparel industry excels at retailing and creating mid-priced clothing. High spending Danish consumers look to foreign brands for luxury goods and high fashion for both adults and children, Additionally, the market for organic clothing is growing quickly and has high demand in womens mens and childrens fashion.
Imports of Made-Ups (Chapter63) By
The Danes are known for being quite fashionable and purchase new clothes frequently. For everyday wear, Danes are casually dressed, but they dress up for special occasions and for going out to restaurants and bars. Danish consumers are less likely to purchase clothing from catalogues or online; they prefer to see and try the clothing first.
Exports
In 2006 Denmark exported outerwear valued at 2,292 million consisting of 986 million of knitted outerwear, 1,236 million of woven outerwear and 70million of leather garments. Denmark is the 9th largest exporter of outerwear in the EU-27, behind Romania (7th) and The Netherlands, and accounted for 3.9%of EU total exports in 2006. Total outerwear exports grew 29% during the period 2004-2006 of which woven outerwear the biggest increase. The destinations were mainly (85%in value) other EU countries, like Germany, Sweden, The Netherlands and Finland. The leading destination outside the EU was Norway. Exports by Denmark include the so-called re-exports: imported products, which are exported to other countries. It can be assumed that about 30-35%of Danish outerwear imports were re-exported. Textile and clothing industry is the fourth largest export business of Denmark. The biggest export markets in 2006 for Denmark. Were Germany were Germany, Sweden, Norway, The Netherlands, U.K., Finland and Spain, all countries geographically close to Denmark. The largest Danish exporters are Bestseller, BTX Group and IC Company. Together, these three companies account for about 50%of all clothing exports.
Made-ups
Other Made-ups Rs.6.21 crores
Shawi/Scarves Rs.3.85 crores
Muffler Rs.1.14 crores
Dress-Material Rs.0.97
crores
Yarn
Viscose Spun Yarn Rs.1.44 crores
Partially Oriented Yarn Rs.-0.61 crores
Viscose Filament Yarn Rs-0.31 crores
Fibre
Acrylic Staple Fibre Rs.0.01 crores
Trends
Increasing individualization; consumers are more difficult to control and also less predictable. The trends are changing at a greater speed and this makes segmentation of the market difficult. However, mass fashion will still exist within different subcultures. Decreasing brand loyalty; consumers can combine a high priced luxury product with a cheap private label product. Increasing concentration; the number of suppliers decreased from around 700 in 1987 to 350 in 2006. Many suppliers have merged or have acquired other suppliers. Most of the Danish suppliers can be found on http://www.Textile.dk.This website includes an online directory of the members of the Danish branch organization DTB.
Tips to Exporters
Outerwear products should be well finished, made precisely according to importers quality requirements and other specifications as agreed. Production capacity, keen pricing and fast delivery are needed to establish reliable relationships with importers or other buyers. Good communication and flexibility are vital. The fast changing demand in the clothing market is a significant factor. Because of the higher dynamics of the clothing markets in terms of quicker changing consumer preferences and more seasons per year, there is a general tendency in the clothing branch to demand shorter delivery times and smaller volumes of series and orders.
Market Entry
Establishing a business contact with a company familiar with the Danish clothing and textile industry is recommended, Danish importers and agents are interested in having long-term relationships with committed suppliers to ensure precise delivers and quality of the products. Being a relatively small country, Denmark is a good test market for an Indian exporter wishing to do business in Northern Europe.
Furthermore, the entry barriers are very low on the Danish textile and clothing market. To oblige the demand for short delivery time it is a good idled to establish a presence in Denmark. This can be done via an appointment with a Danish distribution partner and representative.
There is also the possibility of a joint venture with a Danish company or an Indian company with the same product range in order to share distribution channels. It is recommended to visiting fashion fairs and exhibits in Denmark in order to gain an education about the market. The Danish Fashion Institute, a newly founded network organization created by and for the Danish fashion industry, organizes Copenhagen Fashion week.
The purpose is to develop an extensive network of industry professionals to promote market and drive Danish fashion forward. In close cooperation with trade fairs, interest organizations, national organizations, event agencies and media partners, Copenhagen Fashion week is an important player in positioning Copenhagen as a fashion destination on the international arena... CIFF is one of the biggest fashion fairs in Europe with more then 30,000 visitors, exhibitors and brands. It provides a good location and it is an excellent way to meet future business partners and potential customers.
Distribution Channels
Smaller Danish buyers most often use an agent. The agents usually purchase on the request of their customers. Wholesalers import ready made garments and garments manufactured according to given design specifications. Normally, they will have international brands as well as their own branded apparel.
Import Duty
When exporting to any EU country, including Denmark, suppliers from non preferential counties must pay the following tariff rates;
- Raw material; 0 percent
- For fibers and yarn; 4 percent
- Fabrics and made-up products; 8 percent
- Garments; 12 percent
In Denmark, the VAT (value-added tax) is fixed on all clothing and textile products at 25%. There are several legislations regarding garments in Denmark to control:
- The amount of nickel in buttons, zippers etc. is regulated.
- Chemicals that are dangerous to health are not allowed in the manufacture of garments.
- The materials/fibers used for the product must be declared on the garment in Danish.
Opportunities
The real growth in the Danish economy fell below 1%in the period 20001-20003, as both domestic demand and net exports weakened. The recovery began in 2004 driven by improving domestic demand string the need in 2005.Expectations for consumer expenditure on outerwear for the period 2008-2009 are moderately optimistic. The largest middle range market segment may offer good opportunities for exporters in developing countries. The fast changing demand in the clothing market is a significant factor... Because of the higher dynamics of the clothing markets in terms of quicker changing consumer preferences and more seasons per year, there is a general tendency in the clothing branch to demand shorter delivery times smaller volumes of series and orders.
Source: SRTEPC
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