5_ EU Retail Chains

8/10/2019 5_ EU Retail Chains

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EU Retail Chains

Dhyana van der Pols


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EU Retail chains


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EU Retail distribution

We have talked about consumption in EU outerwear

Population per countryFormal-basic-sports spending

Segmentation: demographic, lifestyle, age

Dependability on accounts, distribution

Gross marginDistribution structure

Needed Competences CMT/FOB/private label


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EU Retail stores
http://images.google.nl/imgres?imgurl=http://www.euroesprit.org/content/delta2/EU%20Flag.gif&imgrefurl=http://www.digg.com/tech_news/Airbus_A380_makes_1st_flight_to_America&h=2647&w=3970&sz=4429&hl=nl&start=1&tbnid=LQ0USu0eNBzjRM:&tbnh=100&tbnw=150&prev=/images?q=eu&gbv=2&svnum=10&hl=nl&sa=G


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I= Identify ( ICP process)

Some of the EU retail stores per countryUK

River Island, Topman, Burton,Next, Topshop, MissSelfridges,New Look, Evans, JJBSports, Marks &Spencer

France

Kiabi, Auchan, Groupe Andre, Armand Thierry,promod, Camaieu, Caroll, Xanaka, HAV, Etam,Brice, Pimkie, Orsay

Spain

Zara, INditex, Massimo Duti,Mango,Stradivarius,Springfield,Induyco

Holland

C&A, Vendex, Duthler, Wegroup,Promiss, Coltex Group, Steps,Didi, Vet, Score, Perry

GermanyC&A, P&C, K+L Ruppert,Takko, NKD, Adler,JeansFritz,Bonita, New Yorker, Adessa

Italy

Pinko,Brums, Terranova,Bennetton, Chicco

AustriaSchops, NKD,Adessa,Takko, Vogele,Orsay

Greece

Inditex,Marks&Spencer,Spider,

Varda, Glou,

Belg

ium

JBC, E-5 Mode, Promo fashion,Cassis,Etam, Pecotex,Primosports


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456,8 MLN

CONSUMERS


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Market Potential & Size


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Market Potential & Size: Facts & FiguresValue sales of outerwear in major EU countries in %

Womens outerwear Mens outerwear Childrens outerwear

Germany 57,0 29,7 13,3

UK

54,0 31,0 15,0

Italy 52,0 33,7 14,3

France 51,3 30,2 18,5

Spain 52,1 33,1 14,8

Netherlands 52,2 33,5 14,0

Belgium 55,2 30,9 13,9


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Market Potential & Size: Fact & Figures

Imports

Developments in imports of outerwear varied strongly per EU country

during the period 2002-2004

China remained the leading outerwear supplier to the EU, followed by

Turkey, Germany, Italy and Bangladesh. In 2000, 9% of EU imports came

from China and in 2004 almost 13%.


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Market Potential & Size RETAIL

Most EU countries have mainstream retail operations divided over:

Independent retailersClothing multiples: more labels/ brands

Variety stores

Department stores

Sports shops

Retail chain groups: own labels. Private label also brandsHome shopping companies: direct mail, internet, catalogue

Super-Hyper markets


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Market Potential & Size RETAIL

EU demographic trends

Major EU countries birth rate figures are rather stable or drop; 1,2-1,8 kids per family

EU population is aging; the category below 20 years decrease, thecategory over 40 years increase substantially

In 2010 a large part of EU population will be over 65 years old

Demographic development: increase of single households- one ortwo persons. No family obligations

Stimulating consumption


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EU retail stores per country: UK

Next PLC: 380 outlets

Monsoon: 300 outlets

Arcadia Group: Topman, Burton,

Dorothy Perkins, Evans, Wallis,Topshop, Miss Selfridge: 2560

outlets

Etam chain: 213 outlets

JJB sports: 430 outlets

Marks & Spencer: 400 outlets

M&S: 150 outlets
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The retail clothing trade structure of the UK is the most dense in the

world, with the Arcadia group as biggest player.

Other players are Marks& Spencer, Etam, M&S, Littlewoods, Next

Group.

Trade channels are dominated by importing wholesalers, they have

taken over the function of smaller retailers.


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Opportunities/ potential trade channels for developing countries

exporters are:

Importing wholesalersImporting manufacturers

Retail chain groups

Terms of payment& delivery in UK mostly are FOB( free on board)

or CIF ( Cost insurance freight) at payment on LC of 60 days


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EU retail stores per country: France

French markets is less concentrated then UK: more players andmore clothing multiples; more work- variety

Import prices under pressure due to price awareness andmanufacturing history: Morocco, Tunisia

Knitted market highly developed: babies, ladies dresses, T shirts

Casual market less developed; formal & sports market

Importing trading companies are main focus for exporters ,

importing manufacturers

Fairs: Premiere Vision, Texworld, Interselection

Terms of Payment & Delivery: FOB/ CIF; 60-90 days net


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EU retail stores per country: SpainZara: Inditex Group 263 outlets

Pull & Bear: 276 outlets

Massimo Duti: 210

Bershka: 212Mango: 228

Amitie: Induyco Group: 94

Springfield: 206

El Corte Ingles

Supercor

Supermercados

INtersport: 330

Sport 2000: 410
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EU retail stores per country: SpainHistorically market dominated by small family owned business,controlled 2/3 of clothing sales.

Changed due to development large shopping centers.

Vertically integrated groups controlling both production anddistribution - 4 integrated distribution groups: Inditex, Cortefiel,Punto Group, Induyco

Specialized retailers dominate the retail chain clothing sector

Grow of clothing multiples and franchise concepts

Most retail chains expanded abroad


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EU retail stores per country: SpainMarket is intensively competitive

Awareness high due to history of combination production/ distribution

Trading partners can be wholesalers, importing manufacturers,clothing multiples, non specialized chains

Fairs: SIMM , Bread & ButterTerms of delivery FOB or CIF at 60 days


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EU retail stores per country: BelgiumJBC: 210

Damart: 55

Primo sports: 42

E 5 mode: 78

Promo Fashion: 44

We : 120 (dutch)

Cassis:45

Pecotex: 35

Delhaize: 43 ( 728 EU)

Colruyt: 170

Zeeman

Wibra

Hema
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EU retail stores per country: Belgium9200 clothing shops

Specialized retailers account for 70% clothing sales

Independent retailers 30%

Specialized chain groups; a lot form surrounding EU countries like: WEgroup, Mango, Zara, Hema, Etam,

Belgium people are price- quality conscious

Less brand conscious over the years

More interest in private labels

Smart casuals wear is popular, jeans, suits and combinations

Hype of casual and leisure over the top

Baby and children's wear susceptible to fashion adult trendsBig outerwear consumption form China, Cambodia, Bangladesh,

Mauritius, Romania


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EU retail stores per country: Belgium

Trade partners can best be found in retailers that import themselves:JBC, Pecotex

Important Fairs: Brussel Fashion Fair, Kids Fashion/ Mode Enfantine

Wholesalers/ importers and agents

Belgium is smallest retail market in EU: however on sending amongstthe highest

Foreign groups dominated retail structure: Zara, Mango, Hema,Zeeman,

Terms of delivery and payment FOB, CNF 60-90 days

CAD- open account- DLP


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EU retail stores per country: HollandC&A: 108Duthler: 35

WE Men/ Women: 160

Shoeby Fashion: 100

Cool Cat: 77

The StingDidi: 101

Mexx

M&S Mode: 134 Vendex

Promiss: 59

Steps: 139

Vet: 45

Score: 101

Aktie Sport: 117

Bijenkorf, Hema, V&D

Maxeda
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25/55

EU retail stores per country: HollandImportant buying groups/ brands are WE Fashion Groups, Secon

group, Coltex group: Didi, SPS,VET, Score Group, Vendex/ KBB

Discounters like Hans Textiel, Zeeman, Wibra, Scapino

Dutch market is casual, sports oriented at mid level pricing

Very fashionable

Mainly organized through central buying organizations ( 45%)

Euretco buying organization

Many Dutch retail operation also set abroad

About 3000 wholesalers of which 900 of considerable importanceactive in imports: FTGB, www.nvg.nlor www.nvkt.nl
http://www.nvg.nl/http://www.nvkt.nl/http://www.nvkt.nl/http://www.nvg.nl/


26/55

EU retail stores per country: HollandMany multiple chains

Specialists have little competition

Wholesalers/ importers selling to retailers

Retailers that import themselves

Big price differences over various distribution typesFairs: Amsterdam Fashion Week

NO kidding kids fair

Terms of delivery and payment: CNF, CAD, DAP, LC at sight or 30days


27/55

EU retail stores per country: GermanyC&A: 247

P&C: 105

Esprit:800

Adessa: 450

Pimkie/ Orsay: 500

New Yorker: 360Kaufhoff

Vogele: 300

Takko: 748

Ernstings family: 1100

Kik: 1900Aldi/ Lidl

NKD: 850

Ulla Popken: 300

Bonita: 548

Karstadt
http://images.google.nl/imgres?imgurl=http://members.ams.chello.nl/pvanscha/fotos/esprit1a.jpg&imgrefurl=http://patvs.web-log.nl/patvs/2004/08/long_story_azia.html&h=644&w=500&sz=42&hl=nl&start=7&tbnid=VYs76HhAvtmr-M:&tbnh=137&tbnw=106&prev=/images?q=esprit&gbv=2&svnum=10&hl=nlhttp://images.google.nl/imgres?imgurl=http://www.pvda.be/images/solidair2004/sol3804/Vogele0015.jpg&imgrefurl=http://www.ptb.be/scripts/article.phtml?section=A1AAAABA&obid=24998&h=375&w=500&sz=20&hl=nl&start=11&tbnid=2lridaA4sjspDM:&tbnh=98&tbnw=130&prev=/images?q=+vogele&gbv=2&svnum=10&hl=nlhttp://images.google.nl/imgres?imgurl=http://www.lindaupark.de/uploads/pics/shops_pimkie_bild.jpg&imgrefurl=http://www.lindaupark.de/index.php?id=71&h=180&w=215&sz=16&hl=nl&start=1&tbnid=5ADpb--Y-a4YWM:&tbnh=89&tbnw=106&prev=/images?q=pimkie&gbv=2&svnum=10&hl=nlhttp://images.google.nl/imgres?imgurl=http://217.160.88.9/hosting/ernstings/ernstings_ecards/ecards/nur-mal_gr.jpg&imgrefurl=http://www.kwick.de/profil/loewe1999/gb&h=243&w=243&sz=24&hl=nl&start=16&tbnid=Oo-mNzvZ3Wx5LM:&tbnh=110&tbnw=110&prev=/images?q=ERNSTINGS&gbv=2&svnum=10&hl=nlhttp://images.google.nl/imgres?imgurl=http://www.lehmann-thermoformung.de/bilder/ernstings%20.jpg&imgrefurl=http://www.lehmann-thermoformung.de/werbe.html&h=510&w=800&sz=38&hl=nl&start=3&tbnid=moVXGFKVAqueoM:&tbnh=91&tbnw=143&prev=/images?q=ERNSTINGS&gbv=2&svnum=10&hl=nlhttp://images.google.nl/imgres?imgurl=http://www.mittelbayerische.de/newsbilder/afpbilder/2007/03/29/CPS.CFN31.290307130015.photo00.photo.default-358x512.jpg&imgrefurl=http://www.mittelbayerische.de/SID_ed88434c1e56b75127fb269563f44662/nachrichten/wirtschaft/meldung.shtml?rubrik=afp&id=342547&h=512&w=358&sz=48&hl=nl&start=14&tbnid=KZdOF7-iGbvAiM:&tbnh=131&tbnw=92&prev=/images?q=KARSTADT&gbv=2&svnum=10&hl=nlhttp://images.google.nl/imgres?imgurl=http://www.plussizeclothingapparel.com/images/store/dress_ulla_popken.jpg&imgrefurl=http://www.plussizeclothingapparel.com/ullapopkenclothing.html&h=250&w=250&sz=23&hl=nl&start=1&tbnid=8zZxb5hxhm6fRM:&tbnh=111&tbnw=111&prev=/images?q=ULLA+POPKEN&gbv=2&svnum=10&hl=nlhttp://images.google.nl/imgres?imgurl=http://www.elsterpassage.de/003_MH/html/mieter/mieter_img/nkd_logo.png&imgrefurl=http://www.elsterpassage.de/003_MH/html/mieter/NKD.html&h=153&w=150&sz=7&hl=nl&start=8&tbnid=RFMtbbz3dc2jJM:&tbnh=96&tbnw=94&prev=/images?q=nkd&gbv=2&svnum=10&hl=nlhttp://images.google.nl/imgres?imgurl=http://www.wisoveg.de/sindorf/logos/kik.jpg&imgrefurl=http://vicc.es/?start=6927&h=340&w=335&sz=35&hl=nl&start=1&tbnid=tDZS8dd5J1AV7M:&tbnh=119&tbnw=117&prev=/images?q=kik&gbv=2&svnum=10&hl=nlhttp://images.google.nl/imgres?imgurl=http://www.ulemiste.ee/pildid/340_2.jpg&imgrefurl=http://www.ulemiste.ee/?page=sk&toode=63&marx=uudised_sisu&h=267&w=326&sz=35&hl=nl&start=2&tbnid=N3dOo0nSxRz2GM:&tbnh=97&tbnw=118&prev=/images?q=takko&gbv=2&svnum=10&hl=nlhttp://images.google.nl/imgres?imgurl=http://www1.cs.columbia.edu/~sedwards/photos/kyle200403/kyle200403-Images/9.jpg&imgrefurl=http://www1.cs.columbia.edu/~sedwards/photos/kyle200403/kyle200403-Pages/Image9.html&h=800&w=1032&sz=248&hl=nl&start=1&tbnid=SMEQ-GLYEr4rXM:&tbnh=116&tbnw=150&prev=/images?q=new+yorker&gbv=2&svnum=10&hl=nlhttp://images.google.nl/imgres?imgurl=http://www.sahinlerholding.com.tr/images/R42_1.jpg&imgrefurl=http://www.sahinlerholding.com.tr/TR/frm-AdessaModenSuisse.asp&h=309&w=230&sz=39&hl=nl&start=5&tbnid=toTA3ob_CFj7_M:&tbnh=117&tbnw=87&prev=/images?q=adessa&gbv=2&svnum=10&hl=nlhttp://images.google.nl/imgres?imgurl=http://www.caterweb.pl/e4/att/000/001/071/Sklep-PEEK-&-CLOPPENBURG-Ga.jpg&imgrefurl=http://www.caterweb.pl/e4/app/template/company,gallery-img.vm/attid/1071;jsessionid=394FA1F57EEC0801490C0A2162C83598&h=400&w=600&sz=29&hl=nl&start=13&tbnid=U-CZDzNoMS_LiM:&tbnh=90&tbnw=135&prev=/images?q=peek+en+cloppenburg&gbv=2&svnum=10&hl=nl&sa=Xhttp://images.google.nl/imgres?imgurl=http://www.tucoo.com/logo/logo_eps086/images/Adessa.png&imgrefurl=http://www.tucoo.com/logo/logo_eps086/html/image5.htm&h=550&w=550&sz=33&hl=nl&start=1&tbnid=MfzslkwnmD8KUM:&tbnh=133&tbnw=133&prev=/images?q=adessa&gbv=2&svnum=10&hl=nl


28/55

EU retail stores per country: GermanyConcentrated market in comparison to Holland fi.; 20 companies

dominate 50% of the market

A lot of foreign groups

40% of independent retailer part of buying organization: Katag,

Unitex,KMT2ndranked after Italy on imports

52% of outerwear bought from developing countries

China main supplier to Germany followed by Pakistan, India,Bangladesh, Turkey

Import structure by buying groups and importing manufacturers


29/55

EU retail stores per country: GermanyTrade partners likely to be importing wholesalers of manufacturers,

retail chain groups direct are best options

High demanding customers with strong negotiation skills, business

ethics and accuracy of main importanceFairs: CPD, Interjeans

Fixed mark ups and calculating standards

Terms of delivery and payment vary a lot; FOB, DDP, LC 90 days


30/55

EU retail stores per country: ItalyBenetton/ Sisley: 2200

Oviesse: gruppo Coin: 255

Pinko:300

Original Marines:400Terranova: 407

Stefanel:400

Chicco:378

Brums:228

Giacomelli Sports:75

Burani Group
http://images.google.nl/imgres?imgurl=http://www.verycool.it/wp-content/uploads/2006/12/pinko-bag.jpg&imgrefurl=http://www.verycool.it/categorie/fashion/borse/page/3/&h=393&w=350&sz=19&hl=nl&start=15&tbnid=8eyLbmTRU6NO8M:&tbnh=124&tbnw=110&prev=/images?q=pinko+fashion&gbv=2&svnum=10&hl=nlhttp://images.google.nl/imgres?imgurl=http://www.chiccorussia.ru/images/CHICCO.gif&imgrefurl=http://www.chiccorussia.ru/&h=496&w=496&sz=128&hl=nl&start=4&tbnid=tnM0zMeZA4NFpM:&tbnh=130&tbnw=130&prev=/images?q=chicco&gbv=2&svnum=10&hl=nlhttp://images.google.nl/imgres?imgurl=http://www.brumm.it/brums/immagini/100/lamiaprimabrums.jpg&imgrefurl=http://www.brumm.it/brums/&h=165&w=320&sz=56&hl=nl&start=7&tbnid=kVlmTBjL7KUAWM:&tbnh=61&tbnw=118&prev=/images?q=brums&gbv=2&svnum=10&hl=nlhttp://images.google.nl/imgres?imgurl=http://www.tucoo.com/logo/logo_eps075/s/Stefanels.png&imgrefurl=http://www.tucoo.com/logo/logo_eps075/index.htm&h=158&w=158&sz=4&hl=nl&start=4&tbnid=ryXd_xf0FDFyHM:&tbnh=97&tbnw=97&prev=/images?q=stefanel&gbv=2&svnum=10&hl=nlhttp://images.google.nl/imgres?imgurl=http://www.bellcommons.co.jp/img/shop_guide/fashion/icon_stefanel.jpg&imgrefurl=http://www.bellcommons.co.jp/shop_guide/shop_guide_fashion.html&h=149&w=149&sz=12&hl=nl&start=11&tbnid=lFlMrzEcNRnf8M:&tbnh=95&tbnw=95&prev=/images?q=stefanel&gbv=2&svnum=10&hl=nlhttp://images.google.nl/imgres?imgurl=http://www.egoxmass.com/moda1/admin/my_documents/my_pictures/slike2005/33A1D_1.BURANI.05_06.jpg&imgrefurl=http://www.egoxmass.com/moda1/default.asp?ItemID=77&cid=2&h=418&w=270&sz=12&hl=nl&start=8&tbnid=GBcXwvzigHlwbM:&tbnh=125&tbnw=81&prev=/images?q=burani&gbv=2&svnum=10&hl=nlhttp://images.google.nl/imgres?imgurl=http://www.om.equinvest.cz/obrazy/marines_index_r2_c9.jpg&imgrefurl=http://www.om.equinvest.cz/&h=274&w=503&sz=37&hl=nl&start=5&tbnid=Or0S1zguru29qM:&tbnh=71&tbnw=130&prev=/images?q=original+marines&gbv=2&svnum=10&hl=nlhttp://images.google.nl/imgres?imgurl=http://www.polycenter.it/images/loghi/originalmarines_logo3.jpg&imgrefurl=http://www.polycenter.it/shop/originalmarines.htm&h=200&w=250&sz=16&hl=nl&start=2&tbnid=bUARXqZn-KEh-M:&tbnh=89&tbnw=111&prev=/images?q=original+marines&gbv=2&svnum=10&hl=nlhttp://images.google.nl/imgres?imgurl=http://static.diary.ru/userdir/2/0/9/9/209961/7928983.jpg&imgrefurl=http://www.diary.ru/~S-n-f-BALTIC/&h=446&w=517&sz=176&hl=nl&start=3&tbnid=3Z7FjXzTHJd7dM:&tbnh=113&tbnw=131&prev=/images?q=terranova+fashion&gbv=2&svnum=10&hl=nlhttp://images.google.nl/imgres?imgurl=http://www.sharjahmegamall.com/site/images/logo-terranova.gif&imgrefurl=http://www.sharjahmegamall.com/site/news3.htm&h=55&w=150&sz=3&hl=nl&start=2&tbnid=dqhaVfcRxEIcrM:&tbnh=35&tbnw=96&prev=/images?q=terranova+fashion&gbv=2&svnum=10&hl=nlhttp://images.google.nl/imgres?imgurl=http://www.varesenews.it/immagini/economia/aziende/oviesse/oviesse18-5/oviesse.jpg&imgrefurl=http://www.varesenews.it/articoli/2000/luglio/economia/specialestanda.htm&h=179&w=198&sz=16&hl=nl&start=1&tbnid=ZBboDrDR4QPeyM:&tbnh=94&tbnw=104&prev=/images?q=oviesse&gbv=2&svnum=10&hl=nlhttp://images.google.nl/imgres?imgurl=http://www.piercemattie.com/blogs/143307_962_1134657950656-benetton.jpg&imgrefurl=http://www.piercemattie.com/blogs/2006/08/asian_americansthe_biggest_sho_1.html&h=278&w=394&sz=83&hl=nl&start=2&tbnid=2Yzm1I3KPMSNVM:&tbnh=87&tbnw=124&prev=/images?q=benetton&gbv=2&svnum=10&hl=nl


31/55

EU retail stores per country: ItalyMajor group in Italy is Gruppo Coin; has many foreign buying houses

Terranova and Brums group are major players a well as Stefanel andGruppo Artsana

Italian clothing market is highly fragmented

Small independent players still play a big role; 68% of spending onclothing through specialist channel

South Italy less developed; independents strong presence

Specialist account for 2/3 of total clothing sales

Wholesalers dominate 50-60% of purchases; importers and agents willask for exclusivity for Italy as a whole

Domestic manufacturersRetailers import themselves as well


32/55

EU retail stores per country: ItalyFairs: Pitti Bimbo/ Uomo

Milano fashion week

Pitti Filati

Selling is best through wholesalers importers as distributors

High demanding customers in terms of quality and delivery terms,small series at high speed

Fashion collections and difficult items in trimmings/ accessories

Terms of delivery and payment: Rapporti bacari, CAD, open account


33/55

EU retail stores per country: DenmarkVero Moda: Bestseller group: 214

Jack & Jones: 800

Only: 1200

IC Companys

CottonfieldPart Two

Jackpot

InWear/ Matinique

Mr.:110

Dress Partners: 84

Barntex: 55 kis

Eksperto: 120

Noa Noa
http://images.google.nl/imgres?imgurl=http://www.fashiontrendsetter.com/press/press_releases/images/part_two_02.jpg&imgrefurl=http://www.fashiontrendsetter.com/press/press_releases/part_two.html&h=306&w=319&sz=21&hl=nl&start=2&tbnid=BqyvFn7xmRNNWM:&tbnh=113&tbnw=118&prev=/images?q=part+two&gbv=2&svnum=10&hl=nlhttp://images.google.nl/imgres?imgurl=http://www.matinique.com/NR/rdonlyres/46FA55AA-4C2F-4FDF-8BCB-D2FABDD98653/0/IC_0509_FS_649.jpg&imgrefurl=http://www.matinique.com/Menu/Sponsorships/Arts+and+Culture.htm&h=300&w=243&sz=10&hl=nl&start=16&tbnid=uXiV5-hYFnHRlM:&tbnh=116&tbnw=94&prev=/images?q=matinique&gbv=2&svnum=10&hl=nlhttp://images.google.nl/imgres?imgurl=http://www.corstiaensmarcussen.com/images/inwear.gif&imgrefurl=http://www.corstiaensmarcussen.com/references.html&h=271&w=398&sz=7&hl=nl&start=1&tbnid=q4jmzL_fF3Dm6M:&tbnh=84&tbnw=124&prev=/images?q=inwear&gbv=2&svnum=10&hl=nlhttp://images.google.nl/imgres?imgurl=http://www.metropole.cz/gfx/loga/jackpot_a_cottonfield.gif&imgrefurl=http://www.metropole.cz/en/directory-list.php?alfa=i&h=60&w=100&sz=4&hl=nl&start=11&tbnid=RnQWDJD7PBb_lM:&tbnh=49&tbnw=82&prev=/images?q=cottonfield+fashion&gbv=2&svnum=10&hl=nlhttp://images.google.nl/imgres?imgurl=http://www.look4fashion.dk/butikker_forhandlere/butik_login/billeder/3818.jpg&imgrefurl=http://www.look4fashion.dk/kunde_db/kunde_db.php?brugernavn=cotclaus&type=BUTIKKER&h=300&w=300&sz=61&hl=nl&start=2&tbnid=koxl1Jh9mGD0ZM:&tbnh=116&tbnw=116&prev=/images?q=cottonfield+fashion&gbv=2&svnum=10&hl=nlhttp://images.google.nl/imgres?imgurl=http://www.fashionsolution.nl/imgs/refs/sm/cottonfield.gif&imgrefurl=http://www.fashionsolution.nl/index2.php?page=fashionSolution&sub=refs&lang=EN&h=97&w=171&sz=5&hl=nl&start=4&tbnid=xbkzyvQv2MzZkM:&tbnh=57&tbnw=100&prev=/images?q=cottonfield+fashion&gbv=2&svnum=10&hl=nlhttp://images.google.nl/imgres?imgurl=http://img208.imageshack.us/img208/7268/bela011wb.jpg&imgrefurl=http://only-fashion.blog.onet.pl/&h=989&w=1000&sz=144&hl=nl&start=1&tbnid=ExueqZl15PbzEM:&tbnh=147&tbnw=149&prev=/images?q=only+fashion&gbv=2&svnum=10&hl=nlhttp://images.google.nl/imgres?imgurl=http://www.rathausgalerien.at/images/shops/vero_moda.jpg&imgrefurl=http://www.rathausgalerien.at/veromoda.php&h=365&w=310&sz=61&hl=nl&start=1&tbnid=R58dRIZltM9rcM:&tbnh=121&tbnw=103&prev=/images?q=vero+moda&gbv=2&svnum=10&hl=nlhttp://images.google.nl/imgres?imgurl=http://www.storsenter.no/prod_images/doc_40.jpg&imgrefurl=http://www.storsenter.no/?menu=7&id=40&h=183&w=200&sz=16&hl=nl&start=8&tbnid=XSZdsA8ZhQOJjM:&tbnh=95&tbnw=104&prev=/images?q=vero+moda&gbv=2&svnum=10&hl=nlhttp://images.google.nl/imgres?imgurl=http://www.wfj.com.cn/Wfj/UpLoadFile/Label/2006328112326Malabel.jpg&imgrefurl=http://www.wfj.com.cn/index/shop_newcommodt.aspx?id=1&labelID=1753&h=567&w=788&sz=103&hl=nl&start=7&tbnid=0MXwjDXKYkJ04M:&tbnh=103&tbnw=143&prev=/images?q=jack&jones&gbv=2&svnum=10&hl=nlhttp://images.google.nl/imgres?imgurl=http://edu.people.com.cn/mediafile/200602/15/F200602151521301322230231.jpg&imgrefurl=http://edu.people.com.cn/GB/4108262.html&h=394&w=492&sz=43&hl=nl&start=1&tbnid=vY3-IBkgau4zYM:&tbnh=104&tbnw=130&prev=/images?q=jack&jones&gbv=2&svnum=10&hl=nl


34/55

EU retail stores per country: DenmarkIncreasing internationalization: Danish clothing companies expand

their activities worldwide; all products are highly available at EUmarkets

High degree of integration in the value chain: several producersopened their own chains: IC Companys, Brandtex,

Increasing concentration: IC companys, Bestseller Group

Focus on causal and leisure wear

Danish fashion designers take a big role

Importers from China,Turkey, Sweden and EU countries Italy, Germany


35/55

EU retail stores per country: Denmark

Outerwear products should be well finished, pricely according to

importers/ buyer requirements

ILO standards under discussion continuously

CSR

Production capacity, keen pricing and fast delivery is key

Trading by contacting groups directly or through importers


36/55

EU retail stores per country: Sweden

Peak Performance

Melka

Oscar Jacobson

H&M: 140

KappAhl: 125Carlings: 54

JC: 207

RNB retail and Brands: 104

INdiska: 72

Gina Tricot: 60

Varner gruppen:400
http://images.google.nl/imgres?imgurl=http://www.fashionunited.nl/gfx/nieuws2006/Peak-Performance.jpg&imgrefurl=http://www.fashionunited.nl/nieuws/icc.htm&h=300&w=219&sz=11&hl=nl&start=3&tbnid=5KM8WvyT0S32RM:&tbnh=116&tbnw=85&prev=/images?q=peak+performance+fashion&gbv=2&svnum=10&hl=nl&sa=Xhttp://images.google.nl/imgres?imgurl=http://www.248am.com/images/hm.gif&imgrefurl=http://www.248am.com/mark/fashion/hm/&h=200&w=200&sz=3&hl=nl&start=3&tbnid=gf3pff2rhgcQLM:&tbnh=104&tbnw=104&prev=/images?q=h&m&gbv=2&svnum=10&hl=nlhttp://images.google.nl/imgres?imgurl=http://absolutefashionista.blogg.se/images/gina_tricot_1140044819.png&imgrefurl=http://absolutefashionista.blogg.se/&h=301&w=200&sz=79&hl=nl&start=1&tbnid=8nK0PQjsNVd41M:&tbnh=116&tbnw=77&prev=/images?q=gina+tricot&gbv=2&svnum=10&hl=nlhttp://images.google.nl/imgres?imgurl=http://www.sello.fi/shop/liikekuvat/indiska_2.jpg&imgrefurl=http://www.sello.fi/shop/indiska.htm&h=360&w=270&sz=91&hl=nl&start=1&tbnid=HYChdQAlpxsYyM:&tbnh=121&tbnw=91&prev=/images?q=indiska&gbv=2&svnum=10&hl=nlhttp://images.google.nl/imgres?imgurl=http://logo.coop.no/coop_logo/vedlegg/gif/kappahl.gif&imgrefurl=http://logo.coop.no/coop_logo/faghandel/index.htm&h=351&w=800&sz=8&hl=nl&start=4&tbnid=lIowQkiM3VYyEM:&tbnh=63&tbnw=143&prev=/images?q=KappAhl&gbv=2&svnum=10&hl=nlhttp://images.google.nl/imgres?imgurl=http://www.jakobsbergscentrum.se/images/500_cfcd208495_DSC07133.JPG&imgrefurl=http://www.jakobsbergscentrum.se/main.html?&sid_id=2003&&expand=51&showbutik=60&h=375&w=500&sz=40&hl=nl&start=9&tbnid=XB70qN0jOwZNkM:&tbnh=98&tbnw=130&prev=/images?q=KappAhl&gbv=2&svnum=10&hl=nlhttp://images.google.nl/imgres?imgurl=http://www.burlovcenter.com/pictures/loggor/kappahl.jpg&imgrefurl=http://www.burlovcenter.com/kappahl.shtml&h=145&w=259&sz=4&hl=nl&start=2&tbnid=vL43YofTAtIN3M:&tbnh=63&tbnw=112&prev=/images?q=KappAhl&gbv=2&svnum=10&hl=nlhttp://images.google.nl/imgres?imgurl=http://www.sello.fi/shop/liikekuvat/carlings_3a.jpg&imgrefurl=http://www.sello.fi/shop/carlings.htm&h=270&w=360&sz=85&hl=nl&start=1&tbnid=5N_jcRj61AXIUM:&tbnh=91&tbnw=121&prev=/images?q=carlings&gbv=2&svnum=10&hl=nlhttp://images.google.nl/imgres?imgurl=http://www.mtowner.com/images/melka.gif&imgrefurl=http://www.mtowner.com/&h=193&w=183&sz=25&hl=nl&start=7&tbnid=ebOFNYoCB45yCM:&tbnh=103&tbnw=98&prev=/images?q=melka+men+fashion&gbv=2&svnum=10&hl=nlhttp://images.google.nl/imgres?imgurl=http://www.linternaute.com/imprimer/femmes/forme/0605-randonnee/images/peak-performance-4.jpg&imgrefurl=http://www.linternaute.com/imprimer/femmes/forme/0605-randonnee/4.shtml&h=300&w=250&sz=7&hl=nl&start=1&tbnid=fE9MYhksgGSqZM:&tbnh=116&tbnw=97&prev=/images?q=peak+performance&gbv=2&svnum=10&hl=nl


37/55

EU retail stores per country: SwedenLeading supplier to Sweden has former been Denmark, now passed by

China

Other important suppliers are Turkey, Bangladesh, India, Pakistan,Indonesia

54% of imports came from EU and 39% from developing countriesExperts forecast a growth of 11% in clothing expenditure in 2005-2007

Manufacturing companies strategies include further intensification ofoutsourcing

Sweden customers are both demanding and aware!!!!!!


38/55

EU retail stores per country: SwedenKnowledge of materials, care and the environment impact as well as

social requirements are extremely good

Sweden is in the forefront of debates concerning environmental andsocial aspects on clothing products

Also see the code of conduct H&M and the corporate report on CSR inproduction

Intending to export to Sweden means full compliance!!!!

Sweden is world most stringent in requirements regarding care andfinish of garments

Sweden climate changes a lot and people spend a lot of time outdoors;

sports and leisure wear, active and comfortable sports wear are fhigh importance

Quality sports clothes


39/55

Segmentation:

Type of product, lifestyle

FormalCasualLeisure

Active Sports


40/55

Casual


41/55

Leisure


42/55

Sports


43/55

EU Retail trendsHigh demanding fragmented market with different focus pointsImporting wholesalers and manufacturing importers are important

Import prices under pressure

Great knowledge on outsourcing abroad

Fast changing demand a significant factorHigher dynamics in clothing market in terms of quicker changingconsumer preferences and more seasons per year

General tendency to demand shorter delivery terms and smallervolumes of series and orders

Opportunity if you can respond, a threat if you cannot

Fast deciders once convinced: be aware!!!!!!!!!!!!!!


44/55

EU Retail trendsHigh standards on product safety, consumer safety

High standards on environmental issues and social aspects

ILO compliance/ access requirements

Small series, fast track deliveries

Up to 8 seasons per yearOTB budgets and in season planning's

Division in causal, sports, formal, leisure depending on country andhistory

Aging population

High awareness of international sourcing potential


45/55

EU Retail trendsThe focus on casual and leisurewear will be continued for the coming

years

Trend: there is a tendency to use more natural fibres, mainly cottonand blends with cotton

Caused by economic developments, many consumers on lowerincomes will continue to seek low priced clothes.

Exporters in developing countries will be faced with demands for highquality and environmentally friendly products


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EU Trade Structure Model:

Distribution channels

Exporting manufacturers

Non importing retailers

Importing Wholesalers Importing Manufacturers Agents

Importing Retailers

DepartmentStores

Clothingmultiples

HomeShoppingcompanies

Sellingand/orbuying

houses

Otherretailers


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Distribution structure:

Direct- indirect

In direct salesno third parties are involved

The exporting company is in full control of entering the target markets

Methods:

Own sales force- person/ representativemanufacturer

Sales office in target country

Foreign sales office

Fair participation

buyer


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Distribution structure:

Direct- indirect

Asia Invest: Buyerseller mission:

Direct customer contact: importing manufacturers, retail chain groups,

wholesalers- Modint- consultants

Showroom presentations on tree locations in Europe

manufacturer

buyer


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Where are you placed?

Which transition can be made?Most common choices in trading partners

Manufacturer Import

trading

company

Retail

organisation

Agent

CMT producer X - - -

FOB producer X X X -

Private label producer - X X -

Own design producer - - X X

Exporting

company

Possible Trading

partner


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Needed Competences

CMT producer FOB producer Private label

producer

Own brand producer

manufacturing high high high high

materials low medium high high

logistics low medium medium high

design low low medium high

marketing/sales low low low high

financing low medium medium high

capabilities low medium medium high


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Trade Channels: mark up

Own agent: salesperson: base salary+ bonus on sales- 10-15 %

Independent agent: 5-10%

Importing manufacturer: 1,4-1,7 x

Importing wholesaler:1,7x

Wholesaler: mark up 3-5 x

Importing retailers: maximum price elasticity: depends on positioning in store:2-5 x


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Retail trade:

Volumes and order sequence in EU marketsDiscounters: 3000- 5000 pcs per style. Branches: + 150

Private Labels: 800-1500 pieces per style; Branches: 50-100

Retail chain group: 1000 pieces per style, Branches: +50

Retail fashion groups: multiples: 1000-3000 per style, Branches: + 200

Brands; best performing styles: 2000 pcs; selling in seasons
http://images.google.nl/imgres?imgurl=http://www.lindaupark.de/uploads/pics/shops_pimkie_bild.jpg&imgrefurl=http://www.lindaupark.de/index.php?id=71&h=180&w=215&sz=16&hl=nl&start=1&tbnid=5ADpb--Y-a4YWM:&tbnh=89&tbnw=106&prev=/images?q=pimkie&gbv=2&svnum=10&hl=nlhttp://images.google.nl/imgres?imgurl=http://edu.people.com.cn/mediafile/200602/15/F200602151521301322230231.jpg&imgrefurl=http://edu.people.com.cn/GB/4108262.html&h=394&w=492&sz=43&hl=nl&start=1&tbnid=vY3-IBkgau4zYM:&tbnh=104&tbnw=130&prev=/images?q=jack&jones&gbv=2&svnum=10&hl=nlhttp://images.google.nl/imgres?imgurl=http://www.tucoo.com/logo/logo_eps086/s/Adessas.png&imgrefurl=http://www.tucoo.com/logo/logo_eps086/index.htm&h=158&w=158&sz=8&hl=nl&start=2&tbnid=_0zqXLFBHTi6aM:&tbnh=97&tbnw=97&prev=/images?q=adessa&gbv=2&svnum=10&hl=nl


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Retail trade:

Volumes and order sequence in EU markets

Most private labels and retailers have at least 4 buying periods a year

Retail chain groups need constant merchandise flow; one concept

Multiple chain groups buy mostly 2-3 seasons and are good NOS

potential


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Distribution channel assessment : Distribution Split

How is your current sales organized?

agents

importers

retail chaingroups direct

domestic

importingmanufacturers

importingwholesalers


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AssignmentWhat will be your first new distribution steps?

Documents

5_ EU Retail Chains