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CBI | Market Intelligence Product Factsheet Cloves in Germany | 1
CBI Product Factsheet:
Christmas articles in Europe
CBI | Market Intelligence Product Factsheet Christmas articles in Europe | 2
Introduction
Imports of Christmas articles from developing countries are on the rise again, offering interesting opportunities for
developing country suppliers. China is Europe’s largest supplier of Christmas articles and, with its large scale of production
and low price, dominates the mid-market. This means that a niche market has to be reached in order to compete against
Chinese imports. If you can offer higher quality or more unique products, the higher market segments are available, but as
yet quite scarce.
Product description
Product Theme HS codes PRODCOM codes
Christmas
articles
Celebrating
Refer to CBI’s Market
Intelligence Trend Mapping
for more information on
this theme.
9505 10 10:
Christmas articles, of glass
(excl. Electric lighting sets)
9505 10 90:
Christmas articles (excl. glass,
candles and electric lighting
sets, natural Christmas trees
and Christmas tree stands)
32.99.51.30:
Articles for Christmas
festivities (excluding electric
garlands, natural Christmas
trees, Christmas tree
stands, candles, statuettes,
statues and the like used for
decorating places of
worship)
Christmas articles may consist of Christmas baubles, tree toppers, figurines made of
glass, wood, ceramics, textile, etc. and other Christmas (table) decorations.
As Christmas articles vary greatly, production methods and materials differ significantly,
ranging from wood, plastic, cotton, etc.
Product
Categories
and
Consumer
Needs
Christmas brings forward a number of consumer needs that are also important for Home
Decoration as a whole. Consumers see this part of the year as an important shopping moment,
and sales in home decoration reach their annual peak between August and December.
Christmas shopping can be quite impulsive. During this time the consumer tends to drop his or
her price sensitivity. As a result, a few clear needs can be seen as underlying Christmas sales in
our industry. Decorating is an important buying motive at this time of the year. The consumer
has a tendency to decorate both the inside and the outside of the home with accessories
expressing the sentiment of the season, ranging from sheer joy to a sense of spirituality. Also,
Christmas, for many, is related to giving: presents are exchanged within a family setting and/or
the circle of close friends. Along the same lines, the sharing of good will and positive feelings
amongst the inner circle takes place in the form of lavish dining. Christmas items within home
decoration can, therefore, be classified as:
specific shopping goods rather than everyday commodities
decorative accessories bringing forward the typical associations and character
of Christmas
gifts
goods related to cooking and eating.
This fact sheet will discuss decorative accessories for the home, and mostly those for inside.
Christmas
Decoration
– main
product
groups
This fact sheet focuses on those product groups that contribute to the
decoration of the home – especially the living room – during Christmas, with a
low-tech, hand-made and natural character. Christmas tree decoration is the
main focus, which includes articles like baubles, bells, angels, figurines, etc.
In line with technological developments in society as a whole, Christmas has
become increasingly hi-tech, 3D, mechanised, animated and ‘plugged in’. This
report will not touch upon this group.
Lighting is of vital importance to express the joy of Christmas – it incorporates
Christmas tree lights and the increasing tendency to decorate the outside of
the home with lighting too, as well as candle lighting to create atmosphere.
Both product groups are outside the scope of this report (for candles, refer to
Product Fact Sheet ‘Candles’ (2014)).
Dinnerware is a prime product group for Christmas, too, and consumers
consider this an occasion for lavishly decking out the table. For dinnerware and
glassware, as well as cutlery, refer to Product Fact Sheets 2014. The greeting
card industry also reaches its peak during Christmas, although the electronic
media are increasingly playing a role. This will also not be dealt with in this
report.
CBI | Market Intelligence Product Factsheet Christmas articles in Europe | 3
Christmas
Decoration
– themes
and
motives
As mentioned in Trend Mapping, the driver behind Christmas decoration is the consumer’s need
to create an ambience, a feeling of cosiness in the home, a warm and inviting atmosphere, with
a touch of spirituality. This ambience is created through a number of influences:
Religion/spiritual (e.g. angels, bells, nativities)
Santa Clause / Father Christmas story (reindeers, sleigh, socks)
Winter season (snowflakes, snow on trees, starry nights)
All that contributes to a sense of going back to the innocence of one’s
childhood or to peace and tranquillity in general (novels by Dickens, a famous
British writer, or Disney)
Romance (consumers want to huddle up with their close ones during the
festive season – so hearts and other love tokens are very much part of the
Christmas vocabulary)
To stay within these themes is important for developing country exporters, but to add to it is
equally important as consumers want to see familiar themes in a new translation every
Christmas, to allow them to shop, give and decorate again to their heart’s content.
Quality Christmas items are seasonal and trendy: in most cases, consumers want to ‘update’ their
Christmas ‘look’ every year, and much of the collection of Christmas accessories is, therefore,
replaced by the latest on offer. Durability is, therefore, a less prominent quality norm than
usually in home decoration. Also, because of the emphasis on atmosphere in the home, the
product quality of individual items receives less focus than how such items fit into the theme.
As a consumer event, Christmas is a mass market and essentially a mid-market in terms of its
consumer values. This means that prices and designs need to be accessible to the majority of
consumers. As consumers want choice, Christmas articles come in different sizes, shapes,
colours and materials, but within the themes and styles described above. They are often offered
in convenient collections and sets, to reduce consumers’ choice anxiety. In the more premium
niches, product and aesthetic quality are both of prime importance.
Labelling Your label on the outer box should include information concerning the product such as the
material, quantity, size, volume, producer (logo), consignee, country of origin and caution
signs. Moreover, it should show the number of pieces, bale/box identification and total number
of bales or boxes, and net and gross weight. Information on the carton should correspond to
the packing list sent to the importer. On the product label, EAN/Barcodes are widely used within
Europe.
For all glassware and porcelain articles it is strongly recommended that you label all boxes with
warning notices such as “FRAGILE!” or “Handle with care!”.
Fragile! This side up!
Please note, your buyer will specify what information they need on product labels or on the item
itself (logos, 'made in..'). This forms part of the order specifications. Use the English language
for labelling of the outer packing to facilitate transportation handling. Use the language of the
destination market for the consumer packaging. That is, unless your buyer has indicated
otherwise.
Packing
and
packaging
product
Christmas articles should be packed in accordance with the importer’s instructions. Every
importer will have their own specific requirements related to the use of packaging materials, the
filling of cartons, palletisation, and the stowing of containers. Always ask for the importer’s
specifications as part of the order specifications. The balance is between using maximum
protection and avoiding excess materials (waste removal is a cost to buyers) or shipping ‘air’.
Proper packing minimises the risk of damage due to fluctuations in humidity and especially
shocks. Packaging usually consists of plastic wrapping to protect the fabric from water and
staining. Packaging dimensions and weight should make it easy to handle. Ideally, it should be
possible to place the boxes or bales together on pallets.
At retail level, Christmas articles are often sold as loose items, allowing consumers to create
their own collection, although often within one theme or style. Consumer packaging is,
therefore, not very relevant, and seasonal wrapping is done at point of sale. In the lower
segments, ‘more for less’ is an important selling point, and here pre-packaged sets are offered
in basic, functional packaging. The retailer wants to add their branding to the final gift at point
of sale, and sometimes the supplier is asked to print tags or labels, although it is usually part of
the retailer’s own marketing communication and produced in Europe.
CBI | Market Intelligence Product Factsheet Christmas articles in Europe | 4
Illustration Low end: ‘more for less’
Source: Wenzhiu Baisheng
Handicrafts
Mid end: ‘atmosphere’
Source: Braxton Home
High end: ‘craftsmanship,
brand’
Source: Alessi
What is the demand for Christmas articles in Europe?
The United Kingdom is by far the largest importer of Christmas articles in Europe, with a strong presence of developing
country suppliers. This makes the United Kingdom an especially interesting focus market. Another promising market is the
Netherlands, as the main importer-exporter of Christmas items into Europe. To avoid competition from leading supplier
China, focus on more premium, niche segments.
Figure 1: European imports of Christmas articles by main origin, € million
Source: Trademap
0
100
200
300
400
500
600
700
2010 2011 2012 2013 2014
Intra EU Developing Countries Rest of the world
CBI | Market Intelligence Product Factsheet Christmas articles in Europe | 5
Figure 2: Main European importers of Christmas articles by main origin, 2014, € million
Source: Trademap
Figure 3: Absolute developing country import growth 2010-2014 (€ million) (countries in range of largest importers)
Source: Trademap
Imports from developing countries are growing, but are dominated by China’s supplies
Between 2010 and 2014, European imports of Christmas articles increased with an average annual growth rate of 2.4%
from €848 million to €931 million. After a dip between 2011 and 2013, this increase is mainly due to impressive growth in
2014, at 16%. These imports are expected to continue to increase moderately.
Similarly, as developing countries are Europe’s main source of Christmas articles, European imports of Christmas articles
from developing countries rose from €594 million in 2010 to €648 million in 2014, with 15% growth in 2014. This growth
trend is also expected to continue.
With €222 million, the United Kingdom is Europe’s main importer of Christmas articles, followed by Germany with
€120 million and the Netherlands with €100 million. The United Kingdom is also the leading importer of Christmas articles
from developing countries, with €204 million. This is 92% of its total imports of Christmas articles!
The strong performance of developing country suppliers of Christmas articles in the United Kingdom is evidenced further
by its increase of €50 million between 2010 and 2014. In the Netherlands imports from developing countries also
increased significantly, by €27 million, while in Germany they stayed level between 2010 and 2014.
European imports of Christmas articles are dominated by China with €612 million. Other leading suppliers from developing
countries are Thailand (€13 million) and India (€10 million).
While in the United Kingdom imports from Indonesia are also performing well, in Germany and the Netherlands Ukraine is
among the leading suppliers.
0
50
100
150
200
250
Intra EU Developing Countries Rest of the world
-30
-20
-10
0
10
20
30
40
50
60
CBI | Market Intelligence Product Factsheet Christmas articles in Europe | 6
The Netherlands ranked second as leading suppliers; this mainly concerns re-exports (supplied principally by China) as
Dutch production of Christmas articles is insignificant.
It is expected that China’s share of imports will remain stable. However, if production costs (labour, transport, raw
material) increase, and more attention is paid to sustainable or environment-friendly production, opportunities will exist for
other developing countries like Vietnam and India.
Figure 4: European exports of Christmas articles by main destination, € million
Source: Trademap
0
50
100
150
200
250
300
350
400
2010 2011 2012 2013 2014
Intra EU Developing Countries Rest of the world
Tips:
The United Kingdom is by far the largest importer of Christmas articles in Europe. Its strong presence
of developing country suppliers makes the United Kingdom an especially interesting focus market for
you to consider.
Consider sourcing your new partners in distribution in the Netherlands, as they are the main importer-
exporters of Christmas items into Europe.
Benchmark your products against the competition from China, Thailand, India and Taiwan. Several
factors can be taken into account, such as market segments served, perceived price and quality level
and countries served. One source that could be used to find exporters in each country is ITC
Trademap.
Monitor developments in Chinese production, a major competitor to (other) developing country
suppliers. It may be that increasing costs of production and a growing internal market in China may
lead to a loss of market share in Europe that could become available to other suppliers from
developing countries.
As China is dominating the lower and mid markets, developing country suppliers are advised to focus
on more premium, niche segments with the help of supreme craftsmanship, origin or any such
differentiating values.
Invest in long-term relationships with your buyers, giving them less incentive to switch to a
competitor.
CBI | Market Intelligence Product Factsheet Christmas articles in Europe | 7
Figure 5: Main European exporters of Christmas articles by main destination, 2014, € million
Source: Trademap
The Netherlands as important entry point for export to surrounding markets
With an average annual growth rate of 6.5%, European exports of Christmas articles increased from €332 million in 2010
to €428 million in 2014. This trend is expected to continue.
European exports of Christmas articles consist mainly of trade within Europe.
Europe’s leading exporter of Christmas articles are the Netherlands with €169 million, followed at a long distance by
Germany with €52 million and Belgium with €48 million.
The Netherlands is expected to remain the main player in the market for Christmas articles due to consolidation.
Figure 6: European production of Christmas articles, 2009-2013, € million
Source: Prodcom
0
20
40
60
80
100
120
140
160
180
Intra EU Developing Countries Rest of the world
0
50
100
150
200
250
300
350
400
2009 2010 2011 2012 2013
Tip:
As the Netherlands mainly supplies to surrounding European countries, consider it as a possible entry
point to reach surrounding markets, including BRICS market Russia.
CBI | Market Intelligence Product Factsheet Christmas articles in Europe | 8
Figure 7: Apparent European consumption of Christmas articles, 2009-2013, € million
Source: Prodcom
Production of Christmas articles peaked in 2012
European production of Christmas articles increased between 2009 (€260 million) and 2013 (€329 million), with a peak in
2012 (€342 million), resulting in an average annual growth rate of 6.0%.
Europe’s consumption of Christmas articles fluctuated slightly between 2009 (€662 million) and 2013 (€729 million),
resulting in an average annual growth rate of 2.4%. This makes European demand for Christmas articles much higher than
European production.
With €170 million, the Netherlands is responsible for 52% of European Christmas article production, followed by the United
Kingdom (€68 million) and Italy (€27 million).
Figure 8: Real GDP, 2014-2016, % change from previous year
Source: Eurostat (2015)
0
100
200
300
400
500
600
700
800
900
2009 2010 2011 2012 2013
-1,0
0,0
1,0
2,0
3,0
4,0
5,0
2014 2015 2016
Tip:
Consumption remains high, offering opportunities for developing country suppliers. Follow the big
players (retailers, importer-wholesalers, brands) on the European market to study market trends and
requirements.
CBI | Market Intelligence Product Factsheet Christmas articles in Europe | 9
Figure 9: Real private consumption expenditure, 2014-2016, % change from previous year
Source: Eurostat (2015)
Economic indicators are promising
Predictions of GDP and private consumption expenditure are important indicators for the European market for Christmas
articles. The sector is closely linked to economic conditions. When there is room in their disposable income, consumers
increase their spending on non-essential luxury products like Christmas articles.
Between 2014 and 2016, European GDP and private consumption expenditures are expected to increase. This means that
consumption of luxury and decorative products is likely to rise. Especially in emerging markets, an increase in GDP creates
room for this type of spending. Due to saturation, growth in consumption will be moderate for mature markets.
What trends offer opportunities on the European market for Christmas articles?
New trends offer opportunities for developing country suppliers. In emerging markets, demand for Christmas accessories
will increase and diversify with rising disposable incomes.
Christmas is a relatively conservative market, especially in terms of its colour palette and larger themes (See ‘Product
Specifications’). Within these parameters, lifecycles of product lines or collections can be extremely short, some lasting one
season only.
On the other hand, an increasing consumer trend in the celebrating theme is collecting. Instead of replacing previous
years’ collection, there are also consumers who are stimulated into buying additions to previously-issued Christmas articles
to complete or add on to their existing sets.
Where emerging markets deviate from established markets in Europe – more attention devoted to religious and less to
ethnic or hand-made influences – this can be expected to converge even more in the coming years. A major factor is the
increasing presence and marketing power of Western European or global players, such as Carrefour, IKEA or Metro, driving
the available Christmas concepts even more towards a unified look and feel. Magazines, internet blogs, TV and other
influences on consumer behaviour will further stimulate consumers’ awareness of and desire for what is available
throughout Europe.
Also visible in Figure 4 and according to industry experts, intra-European trade of Christmas articles is expected to
increase. European countries are becoming more important as Christmas article suppliers because of their ´greater
service´ (e.g. specific requirements can more easily be supplied by European countries than China for logistical reasons),
and also rising costs (wages) in the major Christmas articles supplier China.
-1,0
0,0
1,0
2,0
3,0
4,0
5,0
2014 2015 2016
Tip:
Monitor GDP and private consumption expenditure, because when these are positive, expenditure on
Christmas articles is expected to increase.
CBI | Market Intelligence Product Factsheet Christmas articles in Europe | 10
The sustainability trend is pressuring suppliers to source for more ethical and sustainable products. Specific certification
(e.g. fair trade, organic or rainforest alliance) may be necessary to supply certain buyers and to enter certain
(niche/premium) markets. Moreover, certification adds value to a product and increases its competitiveness.
In emerging markets, with rising disposable incomes and the entry of retailers into the upper-mid and premium segments,
the landscape of Christmas accessories will slowly become more diversified. The emergence of consumer needs, based on
such typical home decoration values as ‘natural’, ‘hand-made’, ‘designer’ and ‘green’ and their related price differentials,
will slowly emerge here too.
The Christmas market, like home decoration in general, is becoming more ‘lifestyle’. This means it will involve even more
product categories: the fragrance industry is entering, personal accessories, home textiles, even furniture are getting a
Christmas twist; and all are responding to similar trends. Trade fairs (e.g. Christmasworld in Germany) are now seen to
combine festive sales with general home and garden.
Convenience is an important trend in this market. Importers have a preference for ‘one-stop-shopping’: finding everything
at one supplier, such as a tree, its decorations and the lighting, but perhaps also non-Christmas-related home decorations.
With so much pressure on costs and efficiency, importers also look for exporters offering complete concepts, large variety
and flexibility in product development.
Professional buyers in emerging markets - in Eastern Europe or the Baltic states – appreciate branded products perhaps a
bit more than elsewhere in Europe, as brands are considered providing status to the collection and to the consumer, and
are seen as offering superior quality and service.
Please refer to CBI Trend mapping for Home Decoration & Textiles for more information on general trends in home
decoration, and the celebration theme specifically.
Tips:
In targeting the middle segments of the European market for Christmas decoration, developing
country exporters are first and foremost advised to work from the accepted look and feel, e.g. from
the Christmas tree as the centre piece, and green, red, silver and gold as the eternal colours of
Christmas; balls, stars and angels, etc. Such basic premises will not change, as they are part of the
consumer’s identification with the Christmas season.
The almost total annual renewal of collections, demands supreme flexibility from suppliers. This annual
innovation takes the form of ‘restyling’, or adding new colours and decorations to existing forms or
items.
New entrants into the European market for Christmas decoration may differentiate on materials (new,
local materials) or material combinations rather than ethnicity.
The fair trade movement traditionally has been a market segment offering religious and Christmas-
related collections that may be interesting for developing country exporters, especially for those with
more local culture in their styles.
The more niche the segment, the greater the freedom for suppliers to develop their own style or go
beyond the normal associations dominating Christmas collections. In premium segments, Christmas
items are often sidelines, rather than rigid concepts; humour or even minimalist styles may go here;
green values, natural concepts – in brief: deviation from the norm is accepted in niche segments.
Developing country exporters who are already marketing in mid markets in home decoration may find
it relatively easy to develop the festive market as well, as they are already used to manufacturing
nostalgic or romantic products.
Developing country exporters wishing to market Christmas accessories need to offer opportunities for
‘one-stop-shopping’ – a broad set of categories, materials and techniques and great flexibility in
product development. If you can also fill in the Buyer’s non-festive collections, your position may be
even stronger.
To help the importer build and maintain a brand (e.g. Black Box Trees by Edelman; Dansk by Lennox),
suppliers offering background stories (e.g. of making and makers) and excellent service (e.g. extra
spare parts, pre-stocking) will add a meaningful contribution.
Besides it being a growth market, also consider entering the Christmas segment as a way of learning
about range development. Quite often, the larger importers will start their development more than 18
months in advance, tackling the process step by step from mood board creation to sampling and trade
fair promotion. Exporters, who are part of this process, will end up being professional suppliers by any
standards.
Developing country exporters with strong identities, based on special techniques and materials, or with
an ability to create atmosphere, may approach distributors in Western Europe about pioneering their
possible entry into prospective upper markets for Christmas articles in emerging European markets.
CBI | Market Intelligence Product Factsheet Christmas articles in Europe | 11
What requirements should Christmas articles comply with to be allowed on the
European market?
Musts
Product safety and Liability
The General Product Safety Directive (GPSD), which applies to all consumer products, states that all products
marketed in Europe should be safe. The purpose of the legislation is to ensure consumer safety.
The Liability Directive states that the European importer is liable for the products put on the European market. The
importer, however, can in principle pass on a claim to the producer/exporter.
Packaging
European packaging and packaging waste legislation restricts the use of certain heavy metals, among other
requirements.
The European Union sets requirements for wood packaging materials used for transport (WPM) such as packing
cases, boxes, crates, drums, pallets, box pallets and dunnage (wood used to wedge and support non-wood cargo).
Wood preservatives
The European Union has restricted the use of arsenic and creosotes as wood preservatives. Although these preservatives
are not very commonly used anymore (especially not in consumer goods), you have to make sure that your products do
not contain these hazardous substances.
Tip:
Consider implementing a management system or code of conduct in order to show your buyer that you
have taken appropriate safety measures.
Tip:
Make sure your products are safe, to avoid product liability claims for defective products.
Tips:
Reduce the amount and diversity of your packing materials by:
o partitioning inside the cartons with the help of folded cardboard,
o matching inner boxes and outer cartons better and standardising the sizes of each,
o considering packing and logistical requirements at the design stage of the products,
o asking your buyer for alternatives.
Consider using biodegradable materials which may form a market opportunity or even a demand from
your buyer.
Tips:
Avoid wooden crating and packing. They are increasingly banned by importers because of their high
cost of disposal, and because they are often unsustainable and costly. Investigate and source
alternative packing materials that are economical and sustainable.
If you do need to export products wrapped with or supported by wood packaging materials during
transport, you have to make sure that your WPM complies with requirements.
Tips:
As wood treated with creosote or arsenic compounds may not be placed on the European market, use
safer alternatives for wood preservation (such as using heat or vacuum treatments).
Link up with companies that are specialised in wood preservation.
CBI | Market Intelligence Product Factsheet Christmas articles in Europe | 12
CITES
The Convention on International Trade in Endangered Species (CITES) lays down provisions for international trade of
endangered species. The European Union has set additional import restrictions.
Additional requirements
Sustainability
Consumers are increasingly aware of social and environmental circumstances during production. As a consequence,
requirements regarding sustainability and certification are increasingly important to buyers.
Implementing a management system (or using sustainably produced materials) may give a competitive advantage.
Codes of conduct
European buyers may expect you to comply with their supplier codes of conduct. This can be the importer’s own code of
conduct or a code of conduct as part of an initiative in which the importer is participating (e.g. BSCI).
The following are examples of initiatives regarding sustainability, which may be relevant if you want to export to Europe:
The Business Social Compliance Initiative (BSCI) has been developed by European retailers to improve social conditions in
sourcing countries. Suppliers of BSCI participants are expected to comply with the BSCI Code of conduct. To prove
compliance, your production process can be audited at the request of the importer. Once a company is audited, it will be
included in a database that can be used by all BSCI participants.
ISO 14001 is a certification scheme that provides generic requirements for an organisation's environmental policy.
SA 8000 is a certification standard by Social Accountability International (SAI) for the improvement of working conditions.
Tip:
Before exporting your products to Europe, you should check with the CITES management authority of
destination, or with your importer, whether there is any restriction that may impact the import into
Europe.
Tip:
Think about sustainable production methods and consider certification because this adds value to your
products. This is useful when targeting the higher market segments.
Tip:
Since more and more European importers are participating in BSCI, you can expect that complying
with the BSCI code of conduct will be seen as a basic requirement. Because it can harm your position
on the market if you are far from complying with this initiative, you are advised to anticipate by
performing a self-assessment, which is available at the website of BSCI.
Tip:
This standard can be used to reduce the cost of waste management, reduce distribution costs and
improve your corporate image. Therefore, consider ISO 14001 certification which may form a market
opportunity or even a demand from your buyer.
Tip:
Consider SAI certification which may form a market opportunity or even a demand from your buyer.
CBI | Market Intelligence Product Factsheet Christmas articles in Europe | 13
Besides the social and environmental aspect of production, Fair Trade certification also covers a fair wage for labourers
involved in the production of Christmas articles
FSC certification ensures environmentally appropriate use of the forest.
What competition do I face on the European Christmas articles market?
Please refer to CBI Competition for Home Decoration & Home Textiles and CBI Top 10 Tips for Doing Business with
European Buyers, because Christmas article competitiveness does not differ significantly from this general overview. A
special ritual of Christmas is that consumers are making their own decorations, either for themselves or as a gift. This
substitution is a tiny threat for developing country exporters. However, suppliers can deal with this by offering semi-
finished items or items that consumers can use to decorate themselves.
What do the trade channels and interesting market segments look like in Europe for
Christmas articles?
Please refer to CBI Market Channels and Segments for Home Decoration, because Christmas articles channels and
segments do not differ significantly from this general overview. The following considerations for action should be taken into
account for the Christmas articles market:
The market for Christmas decoration is a mid-market in terms of its mass appeal of friendly-priced goods with accessible
designs in a number of set styles and ‘atmospheres’. In line with the mid-market consumer’s need for convenience,
Christmas accessories can be found almost anywhere, from department stores to garden centres, off- and online.
In emerging markets, supermarkets and hypermarkets owned by international or national groups are important outlets for
price-sensitive Christmas shopping. Malls and department stores sell Christmas items with a little more differentiation at a
slightly higher price, including branded offers. As yet, this segment is limited in size.
As opposed to the normal market for home decoration, premium niches in mature markets offering high design, limited
editions and branding are relatively small.
Segments based on sustainable values are smaller than in home decoration generally, but are expected to grow.
Tip:
Acquire fair-trade certification to enter the fair trade segment. Compliance with fair trade norms will
also make it easier to acquire other social and environmental norms, as it is the most integrated
system for sustainability.
Tip:
FSC or similar norms for the sustainable management of wood or other raw materials will increasingly
adopt a legal character or become a way to influence consumer choice. Exporters should build such
values into their offer, even at the stage when they are optional in the trade, to anticipate future
demand.
Tip:
Know your market: the main distributors and brands, trade fairs, consumer needs and apply your
knowledge to drive innovation in production, market development, pricing strategies, investment in
packaging and communication, etc.
CBI | Market Intelligence Product Factsheet Christmas articles in Europe | 14
A special character of the Christmas market is its seasonality. Exporters opting for this segment must be aware that
Christmas sales have a limited time slot in the sales calendar.
E-commerce is also important in the market for Christmas accessories and is expected to grow, in both mature and
emerging markets.
Some European countries have a lively culture of ‘making your own’: consumers are encouraged to make their own
Christmas decorations and Christmas gifts. This is fed by suppliers of raw materials (anything from ribbons to twigs),
retailers and sites for hobby and DIY activities, and supported by magazines and TV. Part of this trend feeds into the
recycling theme, as retro or just last year’s Christmas items can be upgraded to serve another Christmas. To some extent,
this can be a threat to the market for ready-made Christmas decorations.
Useful Sources
Trade fairs are still the most important way to meet new clients within the home decoration sector. Therefore, your best
options to meet potential European buyers are:
Ambiente: http://ambiente.messefrankfurt.com
Christmasworld: http://christmasworld.messefrankfurt.com
Maison et Objet: http://www.maison-objet.com/
Tips:
Consider going niche, based on your craftsmanship, special materials or stories, but be aware that it
may be a smaller market than normally in mature markets. They may, however, be quite profitable.
Niches can include fair trade, ‘designer’ or branded offers.
A seasonal market such as Christmas can be attractive for a concept where other festive occasions are
also considered (Valentine’s Day, weddings, Easter, birthdays, etc.), or where the exporter already has
a footing in the regular mid-market for home decoration.
Tips:
E-commerce is growing in importance. Consider targeting online retailers, in order to reach a broader
range of customers. This means, however, supplying small batches/individually packed items, being
prepared to pre-stock and offering more just-in-time supply concepts. Since e-commerce is expected
to grow explosively in the coming years, this is a strategy for exporters with the possibility of scaling
up over a short span of time.
In sourcing e-tailers, exporters can consider several options: brick and-mortar retailers adding e-
commerce to their concept; wholesalers developing an on-line platform; e-tailers in other sectors
(books, music) moving into home decoration. Keep an eye on these developments.
Developing country exporters may offer Christmas items that leave something to the imagination of
consumers who are keen to make their own decorations, by offering semi-finished items or items that
can be decorated by the consumer (e.g. wooden Christmas trees that can be painted or decorated).
CBI Market Intelligence
P.O. Box 93144
2509 AC The Hague
The Netherlands
www.cbi.eu/market-information
This survey was compiled for CBI by Globally Cool :: creative solutions for sustainable business
in collaboration with CBI sector expert Kees Bronk (GO! GoodOpportunity)
Disclaimer CBI market information tools: http://www.cbi.eu/disclaimer
December 2015
