200920-20household20and20furnishing20textiles20-20eu1

THE HOUSEHOLD AND FURNISHING TEXTILES MARKET IN THE EU

CBI MARKET SURVEY

THE HOUSEHOLD AND FURNISHING TEXTILES MARKET

IN THE EU

Publication date: October, 2009

Report summary...................................................................................................... 2 Introduction ............................................................................................................ 3 1 Demand............................................................................................................ 4 2 Production...................................................................................................... 17 3 Trade channels for market entry .................................................................... 22 4 Trade: imports and exports ............................................................................ 27 5 Price developments ........................................................................................ 37 6 Market access requirements........................................................................... 39 7 Opportunity or threat? ................................................................................... 41 Appendix A Product characteristics ..................................................................... 42 Appendix B Introduction to the EU market .......................................................... 47 Appendix C Overview of retail prices of household and furnishing textiles.......... 48 Appendix D List of developing countries .............................................................. 49

This survey was compiled for CBI by Facts Figures Future.

Disclaimer CBI market information tools: http://www.cbi.eu/disclaimer

Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer

of 50

http://www.cbi.eu/disclaimer


Report summary This CBI market survey profiles the household and furnishing market in the EU. Seven product groups have been included: blankets and travelling rugs, bed linen, table linen, bathroom and kitchen linen, curtains, bedspreads and other furnishing articles. The first four product groups belong to the group household textiles. The last three belong to the group furnishing textiles. The household and furnishing market in EU countries is discussed in the CBI market surveys covering the market in individual countries. Demand Between 2004 and 2008, demand for household textiles in the EU annually decreased by an average of 1.8% to reach € 4.9 billion. The top five countries – consisting of Germany, France, the UK, Italy and Spain – accounted for 70% of total demand in the EU. Demand for furnishing textiles in the EU increased by an average of 4.0% annually to € 4.0 billion in 2008. The UK, Italy, Germany, Spain and France accounted for 70% of total demand in the EU. The product groups bed linen and curtains were the most important product groups. Consumers are expected to respond to the difficult economic climate by postponing purchases and making do with existing household and furnishing textiles. At the same time, however, people desire to remain at home during uncertain times and focus their attention on products that transform their houses to places of comfort and safety. Production The value of EU production of household textiles annually decreased by an average of 8.2% in the period 2004-2008 to reach an output of € 2.6 billion in 2008. The production of household textiles in the EU is dominated by Italy, accounting for more than 20% of total production output of household textiles in the EU. The restructuring policy of many manufacturing companies in the EU has led to the relocation of the production of textiles, mainly to low cost countries. As a result, most Central and Eastern European countries saw a large increase in production output. The value of EU production of furnishing textiles increased in the same period by 3.9% to reach an output of € 3.2 billion in 2008. The production of furnishing textiles in the EU is dominated by the UK, accounting for almost 30% of total production output of furnishing textiles in the EU. Trade channels The choice of market entry strategy depends on the resources available and the priority given to the different European markets. However, wholesalers/importers and retailers are, in general, the most interesting trade channel for exporters from developing countries. Imports Total EU imports of household and furnishing textiles grew by an annual average of 3.0% and 3.2% to € 4.9 billion and € 2 billion respectively between 2004 and 2008. Imports from developing countries (DCs) increased even faster (an average of 5.3% and 4.7% respectively per year). DCs have a strong foothold on the market and were responsible for 62% of household textiles and 59% of furnishing textiles imports. Import prices seemed to decrease during the period under review, while the average consumer prices for household textiles remained stable. Opportunities for DC exporters The role of DCs is expected to increase in the future. A large proportion of household and furnishing textiles is already being imported from and outsourced to DCs, such as China, India, Pakistan and Turkey. Moreover, there are signals that the increasing prices of Chinese products will make EU customers look for outsourcing possibilities in other DCs.


of 50


Introduction This CBI market survey profiles the household and furnishing textiles market in the EU. The emphasis of this survey lies in those products which are of importance to developing country suppliers. The role of and opportunities for developing countries (DCs) are highlighted. This market survey discusses the following product groups: • Household textiles, which includes blankets (including travelling rugs but excluding electric

blankets), bedspreads, bed linen (sheets, coversheets, pillowcases and quilt covers), bath linen (towels and wash gloves), table linen (tablecloths and napkins) and kitchen linen (tea towels and glass cloths).

• Furnishing textiles, which includes window coverings (net or lace curtains, heavy curtains and draperies) and other furnishing textiles (decorative pillowcases, throw rugs etc.).

Products not covered by this survey are floor-covering textiles, filling materials used in duvets, quilts, pillows, sleeping bags, mattresses. For detailed information on the selected product groups please consult appendix A. More information about the EU can be found in appendix B. CBI market surveys covering the market in specific EU countries, specific product(group)s or documents on market access requirements can be downloaded from the CBI website. For information on how to make optimal use of CBI market surveys and other CBI 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.


of 50

http://www.cbi.nl/marketinfo


1 Demand In this Chapter, data from the Prodcom (production) database and CN (imports and exports) database as supplied by Eurostat is used to indicate apparent demand. Apparent demand is the sum of production and imports minus exports. Variations in inventory have not been taken into account. Two problems occur: sometimes negative demand is calculated, this is the case when exports are higher than production and imports combined. In that case figures are treated as not available. Furthermore, figures sometimes show a discrepancy between years, e.g., a large fall or extraordinary growth. These figures are therefore not accurate enough to be able to make a good decision and they should be used in conjunction with further market research. 1.1 Market size The market for household and furnishing textiles can be divided into a consumer segment and a commercial/contract segment. Both markets have their own market structure and market characteristics and differ considerably in size. As there is almost no information available on the commercial/contract segment in the individual countries, we will only discuss the consumer segment in this chapter. In the other chapters and in the CBI country surveys for household and furnishing textiles, no attention will be paid to the commercial/contract segment. World demand In the coming years demand is expected to grow by only 2.0% per annum on average in both Europe and the Americas. Asia, however, is expected to show a larger increase in demand across each segment between 2008 and 2010, reaching a growth of 4.6% per annum. However, the current uncertainty and volatility of the short-term economic climate makes it extremely difficult to make any forecasts. 1.1.1 Consumer market Table 1.1 shows that apparent demand for household textiles in the EU annually decreased by an average of 1.8% to € 4.9 billion in 2008. The top five – consisting of Germany, France, Italy, the UK and Spain – accounted for more than 70% of total demand in the EU. In some Western European countries demand decreased (Germany, Italy, the UK, Spain and Austria) or slightly increased (France, Belgium, Sweden, Ireland and Denmark). However, in most Eastern European countries demand grew, with Romania, Latvia, Lithuania and Slovakia even showing growths of 56%, 25%, 22% and 20% respectively. Table 1.1 Apparent demand of household textiles in the EU, by country, 2004-2008, € million 2004 2005 2006 2007 2008 CAGR* EU 5,281 5,233 5,241 5,215 4,901 -1.8% Germany 1,112 1,010 995 989 974 -3.3% France 816 864 811 841 820 0.1% Italy 859 898 859 662 663 -6.3% United Kingdom 833 701 745 742 636 -6.5% Spain 409 443 456 437 387 -1.4% Netherlands 187 207 202 211 211 3.0% Belgium 172 183 188 271 173 0.2% Austria 171 181 162 166 169 -0.3% Sweden 108 108 117 114 110 0.5% Greece 99 88 87 105 109 2.4% Poland 62 72 76 94 87 8.9% Finland 67 71 74 89 84 5.9% Ireland 79 86 92 104 81 0.6% Denmark 75 73 83 82 77 0.7% Portugal 43 52 32 50 62 9.3%


of 50



of 50

2004 2005 2006 2007 2008 CAGR* Romania 9 15 23 32 52 56% Czech Republic 27 33 45 35 35 6.7% Hungary 31 31 31 31 33 1.1% Slovakia 15 12 35 20 30 20% Slovenia 18 17 20 22 22 5.8% Lithuania 9 11 18 15 20 22% Bulgaria 11 11 13 16 15 8.8% Cyprus 12 12 12 14 15 5.4% Latvia 5 7 10 8 12 25% Estonia 38 30 40 49 11 -26% Luxemburg 12 11 10 11 10 -3.7% Malta 4 4 4 4 4 5.4% Source: Eurostat (2009) * Compound Annual Growth Rate Table 1.2 shows that apparent demand for furnishing textiles in the EU annually increased by an average of 4.0% to € 4.0 billion in 2008. The top five – consisting of the UK, Italy, Germany, Spain and France - accounted for more than 70% of total demand in the EU. While demand for furnishing textiles increased in most Western European countries, the UK and Belgium saw declining demand. In particular, Eastern-European countries saw a huge growth in demand for furnishing textiles, showing a growth percentage ranging from 20% in the Czech Republic to even 60% in Romania. Slovenia is a large producer of car components, including car seats. The Prevent Group headquartered in Slovenia is one of the largest European producers of car seat covers. This explains the enormous demand for and imports of the product group ‘other furnishing articles’, which includes furnishing covers for car seats, in Slovenia. Table 1.2 Apparent demand of furnishing textiles in the EU, by country, 2004-2008, € million 2004 2005 2006 2007 2008 CAGR* EU27 3,437 3,863 4,048 4,419 4,021 4.0% United Kingdom 1,219 1,214 1,325 1,321 1,102 -2.5% Italy 313 380 362 430 480 11% Germany 364 379 380 402 398 2.3% Spain 334 386 382 403 363 2.1% France 240 253 271 343 338 9.0% Slovenia 205 470 409 451 271 7.3% Netherlands 163 147 174 192 222 8.1% Poland 38 51 78 118 150 41% Belgium 203 179 186 198 139 -9.1% Ireland 58 57 72 83 93 13% Sweden 63 64 75 82 71 3.2% Austria 55 56 71 53 58 1.5% Denmark 21 30 49 65 55 28% Greece 49 49 49 54 55 2.9% Czech Republic 22 33 36 45 51 23% Portugal 19 28 26 33 38 20% Romania 6 12 14 28 37 60% Finland 24 30 30 30 32 6.9% Slovakia 4 4 8 16 17 45% Lithuania 10 11 6 9 11 1.8% Latvia 5 7 7 10 11 21% Hungary 11 9 10 7 9 -3.1% Bulgaria 2 3 5 9 6 26% Cyprus 3 3 4 4 4 8.7% Estonia 3 3 14 26 4 3.2% Luxemburg 4 4 3 3 3 -2.4% Malta 1 2 1 1 1 2.7% Source: Eurostat (2009) * Compound Annual Growth Rate


As can be seen from Table 1.3, demand within the individual product groups of household textiles decreased while demand within the individual product groups of furnishing textiles increased between 2004 and 2008. Demand for household textiles has been virtually stable for many years. However, there was a sharp decrease between 2007 and 2008. Demand for furnishing textiles has continuously increased in the last years, but 2008 was the first year to show a decline. These changes in patterns can be explained as a result of the economic crisis. Table 1.3 Indication of EU demand of household and furnishing textiles, by product group, 2004-2008, € million 2004 2005 2006 2007 2008 CAGR Total household textiles 5,281 5,233 5,241 5,215 4,901 -1.8% Blankets and travelling rugs 554 549 606 526 443 -5.4% Bed linen 2,734 2,682 2,630 2,736 2,577 -1.5% Table linen 595 609 541 545 490 -4.7% Bathroom and kitchen linen 1,398 1,392 1,464 1,408 1,391 -0.1% Total furnishing textiles 3,437 3,863 4,048 4,419 4,021 4.0% Curtains 2,072 2,075 2,321 2,575 2,392 3.7% Bed spreads 191 211 205 212 205 1.8% Other furnishing articles 1,173 1,577 1,522 1,633 1,424 5.0% Source: Eurostat (2009) Per capita expenditure Table 1.4 shows the per capita expenditure in the EU. As can be seen, the largest growth figures were realised in CEE countries. Although over the period 2004-2008, large changes in consumer expenditure did not occur, many countries (especially Western European countries) showed a decline in consumer expenditure between 2007 and 2008. This is most likely a result of the economic crisis, which started in 2008. Table 1.4 Consumer expenditure of household and furnishing textiles in the EU,

in €, 2004-2008 2004 2005 2006 2007 2008 CAGR Annual

growth '07-'08

EU27 17,44 18,20 18,59 19,28 17,85 0,6% -7,4% Slovenia* 109,50 239,78 210,85 232,83 144,52 7,2% -38% Ireland 30,65 32,18 36,86 41,85 38,95 6,2% -6,9% Belgium 34,86 33,60 34,74 43,62 28,98 -4,5% -34% United Kingdom 33,30 31,07 33,60 33,47 28,21 -4,1% -16% Luxemburg 31,70 29,39 26,56 28,99 27,58 -3,4% -4,9% Austria 27,05 28,38 27,88 26,20 27,19 0,1% 3,8% Netherlands 21,20 21,50 22,85 24,45 26,24 5,5% 7,3% Denmark 17.46 18.79 24.20 26.82 24.17 8.5% -0.1% Finland 17,07 18,99 19,44 22,33 21,70 6,2% -2,8% Sweden 18,42 18,60 20,77 21,21 19,58 1,5% -7,7% Italy 19,52 21,29 20,34 18,19 19,04 -0,6% 4,6% France 16,41 17,35 16,81 18,40 18,00 2,3% -2,2% Germany 17,99 16,92 16,76 16,94 16,72 -1,8% -1,3% Spain 16,22 18,08 18,28 18,33 16,37 0,2% -11% Czech Republic 8,86 12,03 14,69 14,56 15,66 15,3% 7,6% Greece 13,11 12,18 12,08 14,08 14,51 2,6% 3,1% Malta 11,78 13,94 12,19 12,87 14,15 4,7% 10% Latvia 4,32 5,94 7,58 7,99 9,88 22,9% 24% Portugal 5,84 7,51 5,50 7,78 9,41 12,7% 21% Lithuania 5,63 6,52 7,08 7,34 9,07 12,7% 24% Slovakia 3,39 2,97 7,91 6,71 8,68 26,5% 29% Cyprus 6,53 6,64 6,98 8,11 8,25 6,0% 1,7% Poland 2,61 3,24 4,06 5,57 6,20 24,1% 11% Hungary 4,19 3,97 4,08 3,82 4,20 0,1% 10% Romania 0,67 1,24 1,71 2,82 4,16 57,6% 47% Estonia 9,17 7,57 12,06 16,84 n/a n/a n/a


of 50



of 50

2004 2005 2006 2007 2008 CAGR Annual growth '07-'08

Bulgaria 1,72 1,83 2,42 3,35 2,76 12,6% -18% Source: Eurostat (2009) * As mentioned before, the large expenditure in Slovenia can be explained by the fact that Slovenia is a large producer of car seats, which fall under the category furnishing articles. The household and furnishing textiles market in the EU countries has experienced a non-stop, but slow growth for many years. Demand patterns of households vary substantially across Europe, due to differences in culture, traditions and tastes. Germany has been the largest market for household textiles for many years, despite declining demand, followed by France. Other important markets in the EU are the UK, Italy, Spain and Belgium. The UK has been the largest market for furnishing textiles in previous years, followed by Italy, Spain and Germany. The sizes of national markets for household and furnishing textiles reflect, among others: • Demographic factors (size of population and number of households); • Developments in the housing market (housing stock, new dwellings); • Levels of income, in particular disposable income, derived from economic developments,

such as unemployment, consumer confidence, inflation etc.; • Fashion developments in home furnishings, including household and furnishing textiles; • Consumer preference for specific fibre types and brands; • Importance of home textiles in household purchasing decisions. The bulk of household and furnishing textiles purchased in the EU during any particular year is for replacement purposes rather than constituting a primary purchase. New dwellings account for a relatively small number of purchases. Most purchases of household and furnishing textiles are made to replace old, worn or unfashionable textiles. These purchases can be deferred in most cases, depending upon the economic circumstances at the time. Fashion trends Fashion trends in household and furnishing textiles are related to fashion developments in general, and must therefore be in harmony with those of furniture, kitchen equipment, beds etc. Fashion requires substantial investment in creativity, such as highly skilled designing, the right colours and materials. Fashion in household textiles does not change quickly and trends used to last for 3 to 4 years. However, furnishing lifecycles have reduced considerably to approximately two years for soft furnishings and five years for carpets. Bed, bath, table and kitchen linen are no longer considered to be just plain utility items. Fashion has entered into the production and promotion of these textiles in a big way. There are distinct seasonal preferences, and there is also a tendency to maintain or create a design scheme affinity between the various fabrics and house decoration in general. Colour trends are more or less uniform in EU countries. Generally speaking, design trends have become more and more individual and no major single trend can be seen, as was the case in previous years. Instead, several distinct trends are moving side by side forming a composite fashion flow. The trend in furniture has moved increasingly away from ‘traditional’ heavy furniture towards modern lighter designs, frequently sold by large outlets in kit form for DIY assembly. These outlets also have household textiles in their assortment of which colour and design are in harmony with e.g. furniture, kitchen and beds. Fashion trends or inspirations for the coming years can be derived from the website of the leading EU trade fair Heimtextil (http://www.heimtextil.de) in Germany. Other trade fairs and trade magazines publish fashion trends and can be sources of inspiration as well. Colour, design and style

http://www.heimtextil.de/


It is particularly important for producers of household and furnishing textiles to understand colour, design and style in their particular target market, as this is a major decision-making factor for most buyers. These trends change rapidly and it is therefore important to keep knowledge up to date. Source: http://www.capecraftanddesign.org.za Brands In the household textile sector, brand awareness among consumers is limited, as can be derived from the high market shares for interior department stores (Ikea, Habitat), speciality chains (Descamps) and variety chains (Marks & Spencer, Hema) operating with their own private label and textile discounters, while super- and hypermarkets sell unknown or fancy brand names. Operating at the top of the market are designers such as Ralph Lauren, Armani, Kenzo, Christian Dior and Joop!, all of them well-known internationally. Other examples of widespread licensed brands are for children (Pokemon, Teletubbies etc.) or for teenagers (Chipie etc.). Examples of brand names (mainly operating in the higher segments) in the household sector are Zucchi, Bassetti, Frette, Descamps, Marzotto, Santens, Clarysse, Cinderella, Irisette, Van Dijck, Pretti, Zambaiti etc. Well-known brands of curtains are Ado, Gardisette and Cordima, while manufacturer names of other furnishings are, among others, Sodahl, Le Jacquard Francais and Graziano. A brand’s personality generally appeals to a certain customer group. Product extensions are an attempt to find other ways to appeal to the same customer. Benetton, Esprit, Mexx, Zara, H&M, Schiesser and many other clothing chains have introduced household textiles in their assortment (for example Zara Home). Promotion and presentation Although new furnishings chosen by households are increasingly a matter of individual choice and taste, consumers are heavily influenced in the orientation phase by different sorts of promotion, such as: • Media: interior magazines, women’s magazines and glossy magazines all exert a

continuous passive influence on their readers; the increasing number of television programmes featuring creative ideas for interiors, home improvement suggestions and instructions is also a source of inspiration. For example, in the Netherlands consumers are being led in buying home accessories by magazines (27%), acquaintances (27%), store leaflets (35%), store assortment (29%) and the advice of the salesman (24%).

• The catalogues of big interior store groups, such as Ikea and Habitat and of mail-order houses, such as Neckerman, Otto and La Redoute are important reference sources, just as the house-to-house brochures and leaflets distributed by major chains, member shops of buying groups and discount chains, all of which give consumers comparative information especially with regard to competitive prices;

• Internet provides consumers located anywhere in the world with instant access to information on a wide range of products, wherever those products are made and sold;

• Consumer fairs for home and garden. These types of fairs are organised in nearly all EU countries with different themes, sizes, frequency and with a regional or national character. The fairs serve as sources of inspiration for consumers.

Regional variations in climate The climate of a country is an important factor influencing demand for bed linen, furnishing and floor-covering textiles. The colder climate of Northern Europe in contrast to more southern regions is a factor which strongly contributes to the high per capita demand of carpets and curtains in Scandinavian countries, the Netherlands and other major market areas like Germany, the UK and Northern France. In warmer climates, such as in Southern Europe, blinds and shutters are often preferred to curtains. Demand for warm bedding is also lower in warmer climates. Furthermore, the climate in a certain year also influences demand for household and furnishing textiles. A mild autumn or winter has a negative influence on the demand for household and furnishing textiles, while a cold or rainy spring or summer has a positive influence. Short term economic forecast


of 50

http://www.capecraftanddesign.org.za/


Consumers are expected to respond to the difficult economic climate by postponing purchases and making do with existing furnishing fabrics and linen. Decreasing consumer confidence has only spurred this development. Consumers have become increasingly cautious and are thinking twice about where and what they will spend their money on. At the same time, however, people tend to remain at home during uncertain times and focus their attention on products that transform their houses to places of comfort and safety. Retailers are increasingly focusing on lower price and better value products. It is expected that retailers will plan tighter inventories and will rely more and more on suppliers to bear the inventory burdens. The longer term prospects for the market are more optimistic with moderate growth forecast for 2010-2012 when the economy is expected to regain momentum. The disposable incomes of European consumers are expected to increase as is demand for household and furnishing textiles. However, the current uncertainty and volatility of the short term economic climate makes it extremely difficult to forecast in the medium term. Consumer confidence As mentioned above, declining consumer confidence has its effect on the demand for household and furnishing textiles. Table 1.5 shows the Nielsen Global Consumer Confidence Index for most European countries and the change in the 1st half of 2009 in comparison to the 2nd half of 2008. Please note that this index resembles the general trend in consumer confidence and is not specifically aimed at consumers of household and furnishing textiles. Unfortunately, not all European countries have been researched. Table 1.5 Nielsen Global Consumer Confidence Index Country Global

Consumer Confidence

Index

Change 1h’09 vs.

2h ‘08

Global average 77 -7 EU average 67 -8 Denmark 102 -10 The Netherlands 96 -3 Poland 82 -16 Austria 79 -6 Finland 78 -15 Belgium 78 -5 Sweden 75 -13 Czech Republic 74 -11 Germany 73 -2 Spain 72 -4 Greece 70 -3 Italy 70 -3 The UK 65 -9 Estonia 64 -9 Ireland 63 -14 France 60 -1 Hungary 52 -19 Latvia 48 -17 Portugal 48 -2 Source: Nielsen (2009) The Nielsen research showed that in the 1st half of 2009, 22% of the consumers researched were spending spare cash on home improvements and decorating, down from 25% in the 2nd half of 2008. To save on household expenses, 70% of consumers had changed their spending habits. 34% of respondents had delayed the replacement of major household items and 10% were planning to continue to save on household items when economic conditions improve.


of 50


1.1.2 The commercial or contract market in the EU The commercial or contract market has a completely different market structure from the consumer market. It can be divided into governmental organisations (defence, health and hospitals etc.) and commercial organisations. Governmental institutes buy mainly via tenders, while other organisations buy directly through manufacturers, wholesalers, or rent/lease via textile service (laundry) companies. Textile service companies operate on the commercial market with products such as work-wear, household textiles (towels, bed linen and table linen), industrial wipers and mats. The total turnover of the textile rental market was estimated at € 8-9 billion in 2006 (more recent figures are not available), of which the health sector (35%), trade and industry (45%) and hotels and restaurants (20%) are the most important customers. Information on the market size, apart from activities through textile service companies, is not available. For this reason, we will not focus attention on the commercial or contract market in the rest of this survey. Distribution of household textiles on the institutional and industrial market is in the hands of internationally operating companies, such as: • Bardusch - http://www.bardusch.de • Berendsen - http://www.berendsen.com • Elis - http://www.elis.com • HTS Industrial, part of Haniel - http://www.hts.com • Johnson - http://www.johnsonplc.com and including http://www.stalbridge-linen.com • Mewa - http://www.mewa.de • Rentokil/Initial - http://www.rentokil-initial.com Other suppliers in the textile service sector can be found on the website of the European Textile Services Association (http://www.etsa-europe.org/Etsa-Europe.org/members/pdf/ETSAMemberslist.pdf) and in the general trade directories. Table 1.6 gives an overview of total textile demand by the several categories of service industries in the EU in 2002-2006. Unfortunately, more recent figures are not available. The total expenditure of € 16 billion can be divided into expenditure on clothing (35%), textile floor coverings (25%) and household and furnishing textiles (40%). This means that total expenditure on household and furnishing textiles in the contract sector amounted to € 6.4 billion or 22% of consumer expenditure. Table 1.6 Textile demand by service industries in the EU, 2002-2006,

in € million 2002 2004 2006 Total Market 15,000 15,700 16,100 Of which: Wholesale and retail services (except goods for re-sale) 4,400 4,600 4,700 Business and personal services (banking, rental laundries etc 3,500 3,600 3,600 Public services (army, police, fire service and other public services) 1,900 2,000 2,000 Hospitality services (hotels, restaurants and catering suppliers) 1,800 1,900 2,000 Health services (hospitals, veterinary services etc.) 1,400 1,400 1,500 Transport and communication services (railways, airlines etc.) 1,200 1,300 1,400 Culture, education and leisure (theatres, sport clubs, libraries etc.) 800 900 900 Source: Fashion Research and Trends (2007) Just as is the situation on the consumer market, Germany, the United Kingdom, France, Italy and Spain are the major contract markets and covered an estimated 70% of the total EU market. The situation on the market for office buildings, the health and the hotel sector led to decreased investments and a related fall in textile demand in EU countries such as Germany, Belgium and the Netherlands. In the previous years, the contract sector in most of the new EU states had shown positive


of 50

http://www.bardusch.de/

http://www.berendsen.com/

http://www.elis.com/

http://www.hts.com/

http://www.johnsonplc.com/

http://www.stalbridge-linen.com/

http://www.mewa.de/

http://www.rentokil-initial.com/

http://www.etsa-europe.org/Etsa-Europe.org/members/pdf/ETSAMemberslist.pdf


growth. The tourist industry had been growing apace, not only in urban but in rural and coastal areas as well. New hotels were built, restaurants were opened and existing hotels and guesthouses renovated and refurbished. Furthermore, construction on office buildings and trade centres was also booming. However, the economic crisis has altered this positive picture as Eastern European countries are being hit very hard by the economic crisis. Carpets, on the business to business (B2B) market or contract sector, is the biggest product group in textile demand by service industries, with destinations such as offices, hotels, public buildings, hospitals and sport and holiday accommodations. It is followed by bed linen of which rental laundries, hospitals and hotels are the main customers. Other major product groups are curtains/upholstery and towelling. There are important differences in the residential/consumer market for household and furnishing textiles: • Different products required • Safety features like flame retardant • Hygiene features such as washing standards • Higher quality standards (abrasion, colour fastness, colour shades, and so on) • Duration of range • Other specific functional features An important characteristic of the contract market is the role of the advisor, in most cases an (interior-) architect or a contract furnishing specialist. However, they often source products from a few suppliers with whom they are familiar when it comes to ordering a specific project. Building up a new and sustainable relationship costs a considerable amount of time and is almost impossible in some cases. Technical product requirements are reflected in guidelines and certificates. Certified and audited production is often necessary. The Association for Contract Textiles mentions voluntary performance guidelines to label textiles (upholstery, drapery, wall covering, wrapped panels) performing up to contract standards. Increased attention has been paid to the contract sector in magazines and at trade fairs. Nearly all trade fairs for home furnishings have been focusing attention, including trend information, on participants in the contract sector, such as interior designers, planners and decision makers for hotel and office equipment. However, there are also trade fairs specifically for the contract market, such as: • Contract Creations, Heimtextil - http://www.contact-contract.com – targeted at planners,

hotel operators, interior designers and architects – part of the trade fair Heimtextil – Frankfurt – January - annually

• Equip Hotel – http://www.equiphotel.com – targeted at hotel buyers in Europe - Paris – November – biannually

• Euroshop – http://www.euroshop.de – targeted at shop buyers – Düsseldorf - February – biannually

• Expo Detergo – http://www.expodetergo.com – targeted at laundry buyers in Italy – Milan – November – once every four years

• Orgatec – http://www.orgatec.de – targeted at office buyers – Cologne – October – annually

• Texcare – http://www.texcare.com – targeted at laundry buyers in Germany – Frankfurt – October – once every three years

An important trend in the commercial or contract market is the demand for performance apparel technologies, such as moisture management technology, integrated into the production of bed sheets and other home textile products. Functional fabrics which are stretchable, thermally adaptive, stain protective, fragrance encapsulating and can resist dust, mite and bacteria are increasingly in demand.


of 50

http://www.contact-contract.com/

http://www.equiphotel.com/

http://www.euroshop.de/

http://www.expodetergo.com/

http://www.orgatec.de/

http://www.texcare.com/


1.2 Market segmentation As mentioned above, the demand for household and furnishing textiles is principally determined by demographic criteria, developments on the housing market and socio-economic developments. Other aspects are the prices of household textile goods relative to other products competing for consumer expenditure, consumer preferences for individual fibres and the influence of brands and fashion on textiles, interior trends and others. Many of these factors are basic criteria for market segmentation and will be discussed below. Segmentation based on demographic criteria The size and age structure of the population and, more significantly, the number and life stage of households are basic determinants of the levels of expenditure on all household and furnishing textiles. During the last years, the EU population has grown from over 456 million (2004) to 491 million (2008). In 2008, Germany had the largest population in the EU with 17% of the total, followed by France, the United Kingdom and Italy with roughly 12% each. These four countries together comprise 54% of the total population. The number of households in the EU, which is now more than 200 million, is expected to grow further in the coming years to 205 million in 2010. Low birth rates, a declining propensity to get married and an increased number of divorces are affecting the size of households, which have shown a decreasing tendency in recent years. Households of five or more people have become rare while the number of one-person households is continually growing. There is an above average number of one-person households in the EU in countries such as Germany, Scandinavian countries and the Netherlands. More than two person households account for the largest share in Italy and Spain. Developments at the housing market New housing starts and the house moving level affect the sales of household and furnishing textiles, as homes are generally redecorated after a move. A significant difference in buying behaviour for household and furnishing textiles is valid for home ownership versus home rentals. The number of home owners in the EU is increasing (approximately 60% of families own the house in which they live), but remains relatively low in Germany and the Netherlands (approximately 50%). For the coming years, total construction output of the EU will decline. Although the outlook was positive, the economic crisis has altered this positive picture. Table 1.7 shows the expected developments in the European housing market. Table 1.7 Developments in the European housing market, 2006-2011, x1,000 2006 2007 2008 2009* 2010* 2011* New houses completed 2.469 2.613 2.361 1.825 1.747 1.799 Annual change in complements - 5,8% -9,6% -23% -4,3% 3,0% Source: Bundesverband Baustoffe (2009) * forecast Eastern Europe In general, it seems that the construction market in Eastern European countries will be least affected by the economic crisis. For 2009, Poland, Romania and the Czech Republic forecast good construction activity growth of around 6.0%, 11% and 5.0% respectively. The forecasts for Hungary and Bulgaria are less positive. However, Eastern European countries are likely to be affected by the credit constraint, as these countries rely heavily on credit from Western European banks. Segmentation based on socio-economic criteria


of 50


Disposable income and the readiness of consumers to spend on the interior of their homes are significant influences on the household and furnishing textiles market. Spending on furniture and carpets is closely linked to developments in the housing market. Spending on household and furnishing textiles is also related to the purchase of houses, but is less cyclical than the furniture and carpet markets. The purchasing power of young people has significantly increased over the years. Low interest rates in the EU in the last few years have acted as a boost to the housing market, which has in turn encouraged spending on furnishing textiles. However, in the second half of 2008 the housing market collapsed and so did consumer confidence. Segmentation by attitude toward fashion and life style Important elements of fashion are: colour, design, exclusivity and life style. The present consumer in Western Europe wants to be seen as an individual with his/her own lifestyle. Household and furnishing textiles have an individualising function, especially in the fashion and design segment (higher price ranges). Therefore, consumer demand has become more specific. Character, ideas and attitude to life will be emphasised by the ambiance that consumers give to their home interiors. Just as is the case with other fashion items such as clothing, a home interior serves as the means of expressing one’s personality. Personalisation is a vitally important characteristic when it comes to new offerings, and that is the strongest stimulus for new purchases. The home sector is decreasingly dependent on the need to replace. Consumers set priorities in their pattern of expenditure according to their life style. The increasingly individualistic nature of society will bring about a rise in demand for goods with an expressive value. People are more willing to spend their money on such goods, while for products with a lower priority, a low price is the main criterion. In the world of fashion, there are some important concepts. One of them is fashion mentality. It means the degree of rapid acceptance of new fashion trends by consumers. Using this concept, one can divide fashion products into: avant-garde, innovative, current, well-known and classical or conservative. Another important concept regarding fashion consciousness is 'conception of culture'. It is the attitude of a consumer to the patterns of culture. A consumer can choose to conform to the dominating culture or he/she can choose just the opposite (opposition to traditional culture). In general, judging what is beautiful or ugly is currently not so much determined by macro-economic factors, such as age, income, profession and/or region, but much more by factors such as fashion consciousness and culture. Segmentation by price/quality ratio Quality is an essential requirement for the higher segments of the household and furnishing textiles market. There are several aspects: quality must be reliable, may not change with time, is closely connected to service, and products have their own brand and/or design. The trend towards looking for higher quality has increased in recent years, but an even more important trend is the price-conscious consumer who is looking for fashionable trends as well as good quality materials. Value for money is an important purchasing criterion for most consumers. This has become even more important due to the economic crisis. The major purchase criteria and the consequences for the store choices are given in the table below. The size of the segments varies per country. Table 1.8 Segmentation by price/quality ratio Product

criteria Store choices Brand names Fashion

criteria Price Criteria

High price luxury segment market share

Exclusive luxury High quality materials (Designer-)

Excusive retail store Designer stores Special departments

Donna Karan, Nicole Farhi, Georgio Armani, Joop!

Fashionable colours Changes every season Special designs

Price less important


of 50



of 50

Product criteria

Store choices Brand names Fashion criteria

Price Criteria

5-10% brand-name Goods with image effect

in department stores Special mail-order companies

and exclusive artworks

Upper middle price segment market share 15-20%

Brand-name goods High quality materials Fashionable collections Broad range in design Trend setters

Independent shops Shop in shops Manufacturer’s direct stores Department Stores

Zucchi, Bassetti, Van Dijck, Vossen, Freyte, Esprit, Mexx

Many colours available Exclusive designs, but with fewer colours than the luxury segment

Acceptance of price for fashionable collections and consumer brands

Middle to high price segment market share 20-25%

Good quality Trend-following or classical assortment Brand-name goods

Independent shops Department stores Mail-order Interior department stores

Cinderella Irisette Habitat

Standard colours and each season some fashionable colours Common designs

Price thresholds must be observed

Low to middle price segment market share 35-40%

Basic quality Limited range of colours and designs Fashionable

Interior department stores Variety stores Value retailers

Private labels like Ikea, Marks & Spencer, Hema

Standard collections with fewer variations per season Limited number of designs

Price important

Low or very low price segment market share 15-20%

Basic or low quality Special sales/ offers Inexpensive products

Variety stores Discounters Super-and hypermarkets Street market

No brands Standard products without particular fashion requirements

Special (low) prices, price is decisive

Source: Fashion Research and Trends (2007) and Facts Figures Future (2009) Materials vary across the different segments of the market. Certain materials feature more predominantly in the high end of the market (e.g. silk) than in the mid to low end. However, cotton is the most popular material overall. 1.3 Trends Some trends that influence the demand for household and furnishing textiles in the EU are: • Continuing interest in more fashionable textiles. There is a continuing interest in

more fashionable household and furnishing textiles, especially by younger age groups and encouraged by foreign multiples in several EU countries. This has partly been encouraged by (glossy) home magazines and interior design programmes on television. Consumers in several new EU member states have become more aspiring and ‘western’ in their home interiors as prosperity increases. The latest developments and forecasts in fashion can be derived from the websites of trade fairs, such as Heimtextil (http://heimtextil.messefrankfurt.com) or in trade magazines, such as Textile Wirtschaft (http://www.twnetwork.de) or Journal du Textiles (http://www.journaldutextile.com).

• Growing demand for natural fibres. There is a high demand for natural fibres, mainly cotton and blends with cotton at the expense of man-made fibres in the household linen sector, while synthetics play a less dominating role in the furnishing sector, in particular in the case of curtains. However, in the UK and some other countries with British influences other preferences are valid.

http://heimtextil.messefrankfurt.com/

http://www.twnetwork.de/

http://www.journaldutextile.com/


• Increasing price consciousness. Consumers in many EU countries have become more price-conscious in recent years. Textiles sold through discounters, variety stores and hypermarkets have won ground and it is expected that this growth will continue. Although consumers have become more price-sensitive, they are looking for higher quality at the same time.

• More critical about design. An increasing group of consumers is more critical of design and is looking for a better (greater) choice of collections.

• Green consumers on the increase. There has been interest for some time in products that reflect care and concern for the environment. This is reflected in the materials used in manufacture and in the social conditions under which a product is made. This is particularly the case in the UK, Scandinavia, Germany and the Netherlands. This is no longer an issue of short term interest. It constitutes a fundamental change in how consumers are thinking about their relationship with the world around them. This issue is not incompatible with fashion. Fashion designers are increasingly using eco-friendly materials such as natural fibres and recycled materials.

• Developments in technical household and furnishing textiles. There have been a number of significant developments in household and furnishing textiles over recent years, including anti-microbial fabrics (increased demand by sufferers of asthma and allergies), flame retardant materials, environmental-friendly textiles, stain protective treatments and other functional materials, such as Lycra stretch fabrics.

Sustainability Sustainable consumption is one of the main consumer trends in Europe. Most European citizens take into consideration the environmental impact of the products that they buy, as well as social matters such as working conditions and child labour. Key words are ecology, reuse of fibres, long-lasting textiles and sustainable manufacturing. Therefore, companies in the sector need to use ‘green technologies’ and monitor every part of the value chain in order to avoid corporate scandals that could harm their brand; for example, children working with dangerous chemicals to produce textiles. Corporate Social Responsibility (CSR) and ethical sourcing are thus becoming vital elements of business strategies in the textiles sector. A range of initiatives aim to ensure that companies avoid such scandals. The Business Social Compliance Initiative (BSCI) is one example in this regard: it is a business-driven platform with the aim of improving compliance with socially responsible acting in all supplier countries and for all consumer goods. USAID has developed a toolkit and guide on sustainable production for home furnishing companies. This guide and toolkit can be accessed at http://sustainable-production.ecoexotic.net. Please refer to the CBI market information database on market access requirements for more information on BSCI and other initiatives – go to http://www.cbi.eu/marketinfo. Ecotextile - http://www.ecotextile.com – is a magazine on sustainable textile and clothing. The website provides useful information on sustainable textiles. Source: http://www.eurofound.europa.eu (2009) 1.4 Opportunities and threats Trends and market developments offer opportunities and threats to exporters. A given trend can be a threat to some and an opportunity to others at the same time. The following trends should, therefore, always be analysed in relation to your specific circumstances. Refer to Chapter 7 for more information on opportunities and threats. + Due to economic developments, consumers are continuing to seek low-priced household

and furnishing textiles. On the other hand, the size of the market and the polarisation in incomes offer huge markets for quality and comfort, designer labels etc.

± From 2004 to 2008, EU demand for household textiles slightly decreased, whereas demand for furnishing textiles increased.

± European consumers are expected to respond to the difficult economic climate by postponing purchases and making do with existing household and furnishing textiles. At the same time, however, people desire to remain at home during uncertain times and focus their attention on products that transform their houses to places of comfort and


of 50

http://sustainable-production.ecoexotic.net/

http://www.cbi.eu/marketinfo

http://www.ecotextile.com/

http://www.eurofound.europa.eu/


safety. - Due to the economic crisis, consumer confidence is decreasing in Europe. This will lead

to more savings instead of spending money on household and furnishing textiles. Key success factors If the company has an effective R&D department, it can come up with new designs, colour schemes or innovative packaging. This will increase sales and also help in building a high quality image of the product. The following factors can help DC exporters of home textiles to succeed on the European market: • Assurance of high consistent quality: ensure good quality at all costs. A quality certification can be

very helpful in marketing the quality of the products. • On-time product delivery; • Competitive rates; • Cost efficiency through better managerial techniques; • Be active and quickly respond to customer demands: being flexible with buyers regarding their

requests and requirements can help to develop mutual understanding with them. • Better services to customers, e.g. claim settlement. • Participation at trade fairs: this is very helpful in getting to know customers’ requirements, getting a

feeling for the EU market and obtaining orders. Source: http://www.smeda.org (2008) 1.5 Useful sources • Bundesverband Baustoffe – http://www.bvbaustoffe.de • Euratex - http://www.euratex.org including links to national trade associations • European Textile Services Association - http://www.etsa-europe.org • Eurostat – http://epp.eurostat.ec.europa.eu • Heimtextil - http://www.heimtextil.de • Several trade magazines, such as: Textil Wirtschaft - http://www.twnetwork.de; Textiles

Outlook International - http://www.textilesintelligence.com and Journal du Textile - http://www.journaldutextile.com

• Trendease International - http://www.trendease.com – online design and fashion publication


of 50

http://www.smeda.org/

http://www.bvbaustoffe.de/

http://www.euratex.org/

http://www.etsa-europe.org/

http://epp.eurostat.ec.europa.eu/

http://www.heimtextil.de/


http://www.textilesintelligence.com/

http://www.journaldutextile.com/

http://www.trendease.com/


2 Production 2.1 Size of production The value of EU production of household textiles annually decreased by 8.2% in the period 2004-2008, to an output of € 2.6 billion in 2008 (see Table 2.1). Production of household textiles in the EU is dominated by Italy, accounting for more than 20% of total production output of household textiles in the EU. The top four production countries – consisting of Italy, Portugal, Germany and France – accounted for more than 60% of total EU production. All European countries saw a decrease in production, with the exception of Lithuania and Finland where production remained virtually stable. Declining production is mainly due to European companies outsourcing to low-cost countries. Table 2.1 Production of household textiles in the EU, by country, 2004-2008, € million 2004 2005 2006 2007 2008 CAGR EU27 3,663 3,470 3,246 3,005 2,605 -8.2% Italy 857 853 802 565 574 -9.5% Portugal 605 548 511 486 452 -7.0% Germany 330 287 293 303 291 -3.1% France 389 409 330 302 270 -8.7% Spain 275 274 255 244 206 -7.0% Belgium 196 204 208 282 175 -2.7% Poland 175 176 154 148 111 -11% Romania 70 71 77 69 74 1.4% Austria 69 72 79 75 58 -4.4% Netherlands 39 48 58 71 57 9.8% Czech Republic 92 79 85 60 49 -15% Greece 69 61 47 45 39 -14% United Kingdom 188 118 55 55 35 -34% Lithuania 30 34 40 35 30 stable Bulgaria 32 29 29 34 26 -4.8% Slovakia 29 24 22 27 24 -4.8% Hungary 25 27 28 22 23 -2.0% Estonia 62 49 58 64 23 -22% Slovenia 18 14 16 16 17 -1.0% Denmark 36 22 27 29 17 -17% Ireland 17 16 14 21 16 -1.9% Finland 15 14 15 16 15 stable Latvia 20 19 19 15 13 -10% Sweden 23 24 24 23 12 -16% Cyprus - - - - - - Luxemburg 1 - - - - - Malta - - - - - - Source: Eurostat (2009) The value of EU production of furnishing textiles annually increased by 3.9% in the period 2004-2008, to an output of € 3.2 billion in 2008 (see Table 2.2). The production of furnishing textiles in the EU is dominated by the UK, accounting for almost 30% of total production output. The top four production countries – consisting of the UK, Italy, Slovenia and Spain – accounted for almost 60% of total EU production. Table 2.2 Production of furnishing textiles in the EU, by country, 2004-2008, € million 2004 2005 2006 2007 2008 CAGR EU27 2,718 3,112 3,260 3,493 3,171 3.9% United Kingdom 939 963 1,055 1,046 857 -2.3% Italy 295 332 311 368 430 9.9% Slovenia 206 470 411 484 298 9.7%


of 50



of 50

2004 2005 2006 2007 2008 CAGR Spain 279 298 316 323 293 1.3% Germany 182 185 214 245 259 9.2% Poland 106 129 169 205 238 22% Netherlands 99 100 117 126 156 12% France 67 80 88 103 129 18% Belgium 174 155 146 160 95 -14% Czech Republic 55 60 62 73 73 7.1% Ireland 28 25 34 44 67 24% Portugal 61 60 47 56 54 -3.0% Romania 60 86 88 51 53 -2.9% Denmark 28 29 41 46 35 5.0% Austria 34 36 51 28 28 -4.7% Lithuania 30 34 23 26 27 -2.7% Sweden 25 23 29 28 24 -1.0% Slovakia 4 2 4 13 12 34% Finland 10 12 14 13 12 3.4% Latvia 4 5 6 8 10 24% Hungary 5 6 4 5 9 13% Estonia 13 14 21 30 7 -14% Greece 5 4 3 4 3 -8.1% Bulgaria 8 4 5 8 3 -21% Cyprus - - - - - - Luxembourg - - - - - - Malta - - - - - - Source: Eurostat (2009) As can be seen from Table 2.3, most product groups showed a decrease in production between 2004-2008 with only curtains and other furnishing articles showing an increase. Table 2.3 Indication of EU production of household and furnishing textiles, by product group, 2004-2008, € million 2004 2005 2006 2007 2008 CAGR* Total household textiles 3,663 3,470 3,246 3,005 2,605 -8.2% Blankets and travelling rugs 454 416 422 357 258 -13% Bed linen 1,949 1,853 1,697 1,636 1,441 -7.3% Table linen 423 420 370 361 302 -8.1% Bathroom and kitchen linen 838 782 758 651 605 -7.8% Total furnishing textiles 2,718 3,112 3,260 3,493 3,171 3.9% Curtains 1,673 1,682 1,875 2,007 1,906 3.3% Bed spreads 139 130 124 131 138 -0.2% Other furnishing articles 905 1,301 1,261 1,355 1,127 5.6% Source: Eurostat (2009) Due to various pressures for change as a result of consumer developments, technological advances, changes in production costs, growth in retailers’ purchasing power and environmental issues, the European household and furnishing textiles industry is characterised as being in a state of continuous restructuring and modernisation. The European home textile sector is regarded as being technologically well advanced. Manufacturers in the EU focus on high value products with a high design content; they export on a global scale by supplying to the higher segments of the market and they source basic products in lower-cost countries. Their strategies have led to an increase in efficiency and broadening of assortment. Although the level of imports of textiles has always been high, more and more retailers are sourcing products overseas. Manufacturers are increasingly looking to move facilities to countries where production costs are lower. Please refer to Table 2.4 for a SWOT analysis of the European textiles sector. As can be seen, the weaknesses and threats of the European textiles sector are the strengths and opportunities for DC producers of household and furnishing textiles and vice versa. For example, the high labour costs are a weakness of the European textiles sector. As labour costs in DCs are much


lower than in the EU, DC suppliers can take advantage of this. At the same time, the demand for higher value added goods are a threat for DC suppliers, as this is much more difficult to realise. Table 2.4 SWOT analysis European textiles sector Strengths Opportunities Strong European brands, such as ‘Made in Italy’. High level of creativity in the design phase.

Converging technologies. Demand for higher value added goods, such as innovative technical textiles.

Weaknesses Threats High labour costs. Skills needs and global competition for skilled and

creative professionals – risk of ‘brain drain’. Extensive regulations impose administrative burden. Increasing competition from countries outside the EU. Trade barriers in important export markets. Shortage of qualified human resources with higher education, such as professionals in textiles engineering. Illegal copying of design and brands.

Source: http://www.eurofound.europa.eu (2008) Outsourcing and foreign policy Global developments create new challenges as well as strategic options for companies in the European textiles sector, not least by making it possible for companies to move their activities to locations that offer them the best possible combination of benefits and costs. The industrial restructuring process has led to significant changes in the location of production activities in the home textiles sector. In the last two decades, many Western European home textiles companies have moved manufacturing activities to Low Cost Countries (LCCs) in Eastern Europe or to non-European countries (e.g. India and China). European home textiles companies are responding to pressures for change by pursuing the following two business strategies: • Relocation of production and activities to LCCs. • Development of added-value activities in the higher end of the value chain. The decision to locate production outside the country of origin will often be based on an assessment of comparative factors, such as labour costs and productivity, capital investment and other factors such as transport, insurance and other related costs. Access to markets and inputs, such as workers (human capital and skills), suppliers and business and market knowledge and their availability also influence location decisions. Companies are also likely to take external factors into account, such as current and expected political stability, regulations, exchange rates, taxation, quotas and tariffs and freedom from restrictive legislation. Companies prefer to locate their business activities where the market is established and people with adequate skills can be found. The supply chain is increasingly organised as an integrated production network, within which production is divided into specialised activities. Activity is located where it can contribute most to the value of the end product. The lower the level of value added and the less tacit knowledge the activity requires, the more likely it is that delocalisation will take place. The globalisation of the supply chain also entails certain risks for European companies, as they are required to monitor working conditions and manufacturing practices in all parts of the value chain, including those of subcontracting companies. If a company or its subcontractors do not comply with regulations or ethical standards, the image of the company can be damaged. The relocation of production activities has led to intensive trade relations between the ‘old’ 15 EU member states and Eastern European countries. As a result, Eastern European countries as well as those of North Africa and Turkey have been among the top suppliers of home textiles


of 50



produced for Western Europe. With the liberalisation of the textiles trade in 2005, the textiles industry, in particular that of Eastern European countries, faces increased competitive pressure from lower-cost countries and regions. The foreign policy of home textiles companies takes many forms: • Forms of ownership: most of the largest companies have entered into joint ventures in

LCCs or have established their own factories abroad. • Forms of subcontracting: Cut, Make and Trim (CMT), Free on Board (FOB) or Outward

Processing Trade (OPT). In the case of CMT, manual production has been relocated, although material (fabric + trims) purchase has been held on to for efficiency and quality reasons. Quality control has been relocated too, and is typically managed by travelling controllers. In the case of FOB, supplying manufacturers abroad receive complete specifications for the design, quality of the fabric, accessories and other materials. Subsequently, manufacturing suppliers manage the purchase of the materials themselves. This form is most common for importers/wholesalers and importing retail organisations, but only for a minority of the EU manufacturing companies. In the case of OPT, the most labour-intensive piecework, such as sewing and packing, has been relocated to low-cost countries. For the sake of quality control, the handling of fabrics, including dyeing and printing, has been retained in the EU home country. The same goes for quality control and distribution to the customer. Basically, EU fabrics or cuttings are exported to low-wage countries, which make them up into finished products for re-import into the EU. OPT import duties are only calculated on the value added by outward processing. OPT for household and furnishing textiles by the EU has steadily decreased in the last few years.

• Sourcing abroad: In some cases entire products are sourced from foreign companies. This mainly concerns products which extend a company’s existing product line.

2.2 Trends Some trends that influence the production for household and furnishing textiles in the EU are: • Economic crisis. Textile manufacturers in Europe are facing a considerable drop in

demand for their products in Europe, while the cost of production and employment is increasing and competition from Low Cost Countries is stronger than ever.

• Relocation of textile production. The restructuring policy of many manufacturing companies in the EU during the last two decades has led to a relocation of the textiles production, mainly based on labour cost comparisons.

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

• Increasing internationalisation. EU textile manufacturing and retail companies are expanding their activities intensively and their products are becoming increasingly available in many European countries.

• High degree of integration in the value chain. Several producers have opened their own chain(s) and many suppliers have started close and long-term co-operation with distribution channels, thereby increasing the entry barriers for new suppliers.

• Increasing concentration. The number of suppliers has decreased and many suppliers have merged or have taken over other suppliers.

• Specialisation. Several manufacturers of household and furnishing textiles have specialised themselves in specific functions (such as design) or in specific markets (such as the contract market), while other manufacturers have shifted from manufacturing for private labels to introducing their own brands.

2.3 Opportunities and threats Trends and market developments offer opportunities and threats to exporters. A given trend can be a threat to some and an opportunity to others at the same time. The following trends should, therefore, always be analysed in relation to your specific circumstances.


of 50


+ The further sourcing of products in LCCs has led to a decrease in production (with the exception of curtains and other furnishing articles) in the major EU countries, including products with a higher design content. This offers interesting opportunities for DC exporters of household and furnishing textiles.

+ Advantages of the new EU member states in terms of lower wages and shorter routes will largely disappear.

± Manufacturers in the major EU countries have built up a comparative advantage by specialising in design and other functions, such as preparation of samples, logistics and marketing, while simple production operations are increasingly taking place in other countries. As time goes by, even the functions mentioned first will leave these EU countries.

- In order to meet the increasing requirements of the EU, exporters in DCs will be forced to meet the increased demands for higher quality and requirements concerning environment and sociability.

2.4 Useful sources • Euratex - http://www.euratex.org including links to national trade associations • Eurostat - http://epp.eurostat.ec.europa.eu/newxtweb • Trade magazines, like:

o Textil Wirtschaft - http://www.twnetwork.de o Textiles Outlook International - http://www.textilesintelligence.com and o Journal du Textile - http://www.journaldutextile.com/intro_en.htm

For examples of interesting players in individual EU countries, please refer to the CBI market surveys covering the household and furnishing market in individual EU countries.

European Technology Platform for the future of textiles and clothing - http://textile-platform.eu The European Technology Platform for the future of textiles and clothing was launched in 2004. The technology platform is a forum which brings together the European textiles and clothing industry, its research and education community, representatives of related industry sectors and scientific disciplines, as well as public authorities. The aim of the platform is to develop and implement long-term industry visions and a ‘Strategic research agenda’ to improve innovation, competitiveness and the growth potential for this key industry sector in Europe. Source: http://www.eurofound.europa.eu (2009)


of 50


http://epp.eurostat.ec.europa.eu/newxtweb


http://www.textilesintelligence.com/

http://www.journaldutextile.com/intro_en.htm

http://textile-platform.eu/



3 Trade channels for market entry 3.1 Trade channels Figure 3.1 displays the most common distribution channels in the industry, which are: 1) Retailers 2) Importers 3) Wholesalers 4) Domestic manufacturers 5) Sales agents 6) Purchasing agents The trade channel for DC exporters in the EU is generally the same as for EU exporters. As the thickness of the arrows emphasises, retailers, wholesalers and importers are by far the most important trade channels for the DC exporter. Please note that the three trade channels are not strictly isolated. For instance, manufacturers, agents and retailers may also function as importers, while wholesalers may also be manufacturers (vertical integration). Theoretically, importing is a function which can be done by manufacturers, wholesalers or retailers as given in Figure 3.1. However, in some countries and/or branches a distinction is made between importing wholesalers and importers. In that case, the importer purchases at their own risk, handles Customs Clearance and sells mainly to retail organisations, such as multiples, department stores and buying organisations and other wholesalers, while wholesalers purchase at their own risk from local or EU manufacturers and from importers. Figure 3.1 Distribution pattern for household and furnishing textile in the EU

Source: Facts Figures Future (2009)

Purchasing agents

Importers Domestic (importing) manufacturers

Sales agents Wholesaler

Retailers Department and variety stores; multiple furniture and/or furnishing stores; interior department stores; buying/selling organisations; independent specialists shops; value retailers; discounters;

hyper- and supermarkets; home shopping; DIY stores, street market, etc.

Consumers

DC exporter

Ad 1) Retailers Retailers constitute the final stage before products reach the consumer. A criterion for dividing the market is the composition of the total assortment: wholly or partly specialised in selling household or furnishing textiles. About two thirds of all stores within the total group of


of 50


furnishing shops sell carpets, curtains and other soft furnishings. Bed and bedding specialists sell beds but also mattresses, pillows and bed linen. Home furniture and furnishings, including all kinds of accessories, form the assortment in interior department stores. Non-specialists means stores with an assortment from various branches, such as department stores, discount stores, DIY stores, mail-order houses, grocery hyper- and supermarkets and street markets. Another classification between retailers can be made by the function of importing: • Importing retailers i.e. the bigger retail organisations (interior and general department

stores, variety stores, multiples, buying organisations, home shopping companies, textile discounters etc.) import through their own buying agents. These buying agents have mainly or exclusively private labels in their assortment, divide their budgets between the purchase of finished products via direct imports (sourcing ready-made products) from low-wage countries and sourcing from their own design. Many major retail organisations use buying agents or set up their own buying organisations in LCCs. This means that retailers are able to bypass domestic wholesalers and/or manufacturers and can reduce costs. There is a clear difference between the distinct segments: super- and hypermarket chains, textile and other discounters operate mainly at the lower end of the market and the main buying criteria is the lowest purchasing price. Generally speaking, other retail organisations are interested in more criteria than price, such as quick response, after sales service and technological capacity.

• Unorganised independent retailers (mainly not more than five outlets) are confronted with decreasing, but still important market shares in most of the EU countries. They buy directly from local or near-by manufacturers or agents representing these manufacturers, as well as from wholesalers/importers. These retailers do not import by themselves and are therefore not interesting for DC exporters.

Ad 2) Importers Importers purchase products from manufacturers abroad and generally add a 30-40% mark-up to cover commissions, credit risk, after-sales service and the cost of carrying a local inventory to meet small orders. In contrast to the agent, these importers hold their own stocks at their own risk. Ad 3) Wholesalers Wholesalers cater to specialist shops as well as to department stores and home shopping companies. In contrast to the agent, wholesalers hold their stocks at their own risk. This non-importing distributor purchases from domestic manufacturers and importers. The mark-up of wholesalers is approximately 20-30%. Large retail companies are increasingly purchasing abroad, thereby bypassing this intermediary. Ad 4) Importing manufacturers Retailers are increasingly taking part in earlier stages of the supply chain (vertical integration) and have their own designers to give their collections a more unique look. Manufacturers are trying to compete by placing a greater emphasis on their own product development. They can then offer exclusivity to retailers, which gives them a competitive advantage. Although it occurs to a lesser degree than, for instance, in the clothing sector, manufacturers penetrate retail business by operating through their own shops, franchising or concessions. This gives them control over their output and margins, such as Christy (UK) and Descamps (France). The many forms of foreign policies from EU manufacturers are discussed in chapter 2 of this survey. Ad 5) Sales agents Sales agents are independent intermediaries between the (foreign) manufacturer and the retailer or retail organisation, receiving a commission from the former. Most sales agents work on a 8-15% commission based on FOB prices. The sales agent does not take title to the merchandise, but is limited to presenting samples to potential clients, obtaining orders, and forwarding these to the exporter. The role of the (sales) agent in household and furnishing textiles is very limited. Sales agents are only of use if the exporter has a totally


of 50


merchandisable product i.e. a suitable design, made by the exporter, of relevant quality and price. While his mark-up is much less than the importer’s, the agent will require a much higher input from the exporter. It is, therefore, a distinct development, but can only be achieved through a high degree of resourcefulness on the part of manufacturers. Ad 6) Purchasing agents Purchasing agents are widely used by retailers and wholesalers in EU countries due to their wide network of contacts and knowledge of foreign markets. They do not carry their own stock, but purchase solely on the request of their customers. Most purchasing agents work on a 4-5.0% commission based on FOB prices.

The hospitality sector is becoming a consumer-direct channel The hospitality sector is increasingly becoming a consumer-direct channel for home textiles. The major hotel chains are expanding their merchandise offerings to hotel guests. These companies are featuring their home textile and furnishing lines on their websites, often with expanded product offerings in every category. Sheets, duvet covers, comforters, bed pillows, mattress pads and throws are the biggest category. Bath, spa items and decorative accessories are featured along with towel selections, and a broader range of bathrobes. Shower curtains and rods are occasionally featured. Source: Industry experts and Facts Figures Future (2009)

Differences between EU countries The use of trade channels generally mentioned applies to all major EU countries. However, some differences should be mentioned. • Southern and Eastern EU member states have high market shares for independent

retailers. These retailers mainly buy from manufacturers and wholesalers/importers. In these countries, street markets or bazaars still play an important role.

• In Germany, the Netherlands and Scandinavian countries, many independent retailers are members of buying co-operations.

• The UK has a relatively low market share of independent retailers. • In Southern and Eastern EU countries franchise formulas are more popular. • The presence of foreign chains with a specific assortment, fashion/design, an attractive

price/value relation, such as the Swedish interior department store Ikea, has influenced the market structure in several countries.

Trends Trends that influence trade practices in the EU are: • Diminishing market shares of independent retailers to the advantage of specialised chains

(including interior department stores) and non-specialists such as super- and hypermarkets.

• Intensified integration and growing internationalisation or cross-border activities, of which the main examples are Ikea, Ka International and Zara Home.

• As is the case on the manufacturer’s level, increasing concentration is applicable to wholesale and retail organisations.

• In general, the powerful groups of chains have reduced their number of supplying manufacturers. This has given them a stronger position in negotiations on e.g. price and delivery conditions and in some cases organisations have taken over the functions of suppliers in order to improve competitiveness (vertical integration). Increasing integration in the value chain decreases the number of suppliers on the market and forces them into close and long-term cooperation with the distribution channels.

• Margins are under continuous pressure in the major EU countries. Consumer expectations with regard to lower prices, as well as tough competition, have resulted in retailer needs for lower inventories, less out-of-stock situations and lower markdowns.

• Clothing multiples have expanded their assortment by introducing household textiles, such as Esprit, H&M, Next, Zara, Mexx and Benetton.

• All opportunities enabling reduced costs are eagerly pursued. Purchasers of textiles are sourcing for lower purchase prices abroad, thereby minimising costs in the home country. The necessity to reduce costs has provided the main driving force behind the development of sourcing markets from importing countries. As a result, production has migrated to a


of 50


growing number of DCs, because buyers have sought and are still seeking ever-lower cost locations. In practice, it is not a question of looking for the lowest wages, but looking for manufacturers with the lowest overall manufacturing costs.

• Minimising purchasing costs implies that many buyers are trying to limit the number of supplying countries and the number of individual manufacturers with whom they deal.

E-commerce Today’s consumers shop more and more online. This trend provides an opportunity for DC companies to introduce new business models which allow them to sell their products directly to customers, thereby limiting the influence of retailers on business decisions. Furthermore, companies also use the business-to-consumer (B2C) e-commerce interaction as a tool to gather information and data on consumer trends and market developments. B2C e-commerce also helps companies to develop a closer relationship with customers in order to gain their loyalty. In relation to the textiles sector, consumer preferences to ‘feel the fabric’ before buying them could be considered a barrier to the use of B2C tools. Nonetheless, the technological advances in terms of advanced computer-aided design (CAD) and personalised avatars could provide a solution to this challenge. In addition, ‘business to business’ (B2B) solutions facilitate the use of digital transactions which are cheaper and less time consuming than traditional ways of buying and selling products to other businesses. Source: http://www.eurofound.europa.eu (2008)

3.2 Price structure The margins at the various levels of distribution are influenced by six factors and are different for each product/market combination. These factors are: • Degree of risk (new fashion/design or ‘me-too’ product, new or known source etc.); • Volume of business; • Functions or marketing services rendered; • General economic conditions (booming or depressed business); • Existence/availability of competitive products and, • Exclusiveness of the product. It is impossible to draw up a schedule of actual margins for each and every product/market combination. Even within the same type of combination, different importers employ different margins, due to variation in economic conditions. The various retailing stores differ in the sales formula they apply, i.e. their assortment and the consumer group targeted, as well as in the way they differentiate themselves from competitors. As an aid to understanding the market, one can distinguish between ‘service retailing’, where the retailer offers the consumer substantial added value (such as quality, service, fashionability and choice), and ‘low-margin retailing’, where the price-conscious consumer is offered low prices, at the expense of quality, service and so forth. We refer to the overview in Section 1.2 for the various segments in the household and furnishing textiles market. Differences between major countries are influenced by several factors, such as a country’s retail structure. A detailed overview of the trade structure and market shares of retailers with household and furnishing textiles in their assortment are discussed in the CBI sector surveys covering the market in individual EU countries. The effect of the market position, often indicated as low, medium and high, results in different margins on consumer end price, based on one CIF (cost, insurance and freight) price for three different market segments. A multiplier of between 2.2 and 3.4 on the manufacturer’s price should be used to calculate an appropriate final consumer price. Elimination of the wholesaler, for instance in the case of multiples, department and variety stores and home-shopping companies, does not always lead to a lower multiplier. Table 3.1 Calculation schedule: margins Low Medium High CIF Rotterdam/Amsterdam 100 100 100

Import duties * * * Charges on CIF basis:


of 50




of 50

Low Medium High - handling charges, transport/insurance, banking services 8 8 8 Wholesaler's margin (25/33/50%) 27 36 54 Retailer's margin (40/60/75%) 54 86 122 - net selling price 189 230 284 Value Added Tax: 19% of net selling price **) 36 44 54 - gross selling or consumer price 225 274 338 RATIO CIF/CONSUMER PRICE 2.2 2.7 3.4 Source: Fashion Research and Trends (2007) and Facts Figures Future (2009) *) Import tariffs vary from 0.0 up to 12.0% of CIF value **) The VAT tariff valid for the Netherlands is used, but note that this tariff varies per EU country. Although the levels of wholesaler and retailer costs often shock suppliers, these intermediaries do not generate excessive profits. While purchase costs have fallen since manufacturing in LCCs started to gather pace, other costs have risen and increasing competitive pressures have kept profitability down. Bargain sales are growing in importance in all segments of the market and in all major EU countries. As a rule, importers who import from DCs are looking for low-priced merchandise. Price is not the only important factor! European home textile importers often stress the combination of price and quality. This, however, does not mean that a low price is the most important factor for the purchasing decision; a reasonable price combined with a product of good quality is just as important. Moreover, due to the use of design specifications, it is also extremely important for the foreign exporter that he is able to follow these design specifications and instructions to the letter. Source: http://www.dipp.eu (2008) 3.3 Useful sources There are many ways of finding potential trading partners in the EU. Besides options such as meeting prospects at trade fairs, the Internet is a highly valuable source. Relevant country-specific sources to find prospects in the EU are: • Europages – http://www.europages.com - you can click on ‘Textiles and Clothing’, but it is

also possible to search for a specific product. • European Association of National Organisations of Fashion Retailers (AEDT) -

http://www.aedt.org • Kellysearch - http://www.kellysearch.com – you can click on ‘Furniture & Textiles’, but it is

also possible to search for a specific product. • Kompass – http://www.kompass.com - the free part is useful in finding manufacturers of

specific products; the website of the company is also listed. • Exhibitors at trade fairs, such as Heimtextil (http://heimtextil.messefrankfurt.com) - see

the exhibitor list to find company details. • The European Apparel and Textile Association - http://www.euratex.org

For more names and websites of associations, intermediaries and manufacturers per country, refer to the CBI surveys covering the household and furnishing market in individual EU countries. Another option may be to make use of sources in your own country: • The Economic Affairs departments of the official representative (Embassy or Consulate) of

a specific EU country. Find the specific country’s embassy in your country at http://www.embassyworld.com. Another suggestion may be to contact the consul of your own country in the country of your choice.

• Public and private trade promotion bodies.

Marketing and communication is very important! A strong marketing and communication effort in the DC country of the exporter is also recommended, as importers of home textiles travel widely in order to look for new trends in the market and to locate new partners. In order to gain the attention of European importers, it is important that the exporter is able to actively and professionally communicate what its competencies are. A well-designed company brochure containing photos of home textiles as well as product descriptions is of importance. Furthermore, if the exporter is quality certified (for example ISO certification) this should be mentioned as well. This type of communication will help the professional and qualified exporter to stand out from the crowd. Source: http://www.dipp.eu (2008)

http://www.dipp.eu/

http://www.europages.com/

http://www.aedt.org/

http://www.kellysearch.com/

http://www.kompass.com/

http://heimtextil.messefrankfurt.com/


http://www.embassyworld.com/

http://www.dipp.eu/


4 Trade: imports and exports Before we take a look at the figures on the imports of household and furnishing textiles in the EU, it should be noted that all data presented in this chapter are official trade figures provided by Eurostat. These official statistics are not always all-embracing and they should be interpreted with care. Appendix A of this survey includes more information on statistics. 4.1 Total EU imports Total household textiles Table 4.1 shows that total EU imports of household textiles annually grew by an average of 3.0% in value in the period 2004-2008, of which 62% came from DCs. Extra-EU imports decreased by an annual average of 24% in value in the period 2004-2008. Two conclusions can be drawn: supplies from DC sources won market share, partly at the cost of developed non-EU (Extra-EU) supplies, but supplies from European sources also increased. The largest growth was recorded by DC supplies, which increased at an average annual growth rate of 5.3%. This reflects the increasing (out)sourcing to LCCs. Germany remained the largest import market in the EU, followed by France and the UK. Almost all EU countries, except for Germany, the UK, Ireland and Luxembourg, showed a growth in imports, with most CEE countries showing the largest growth. Of these countries, Romania and Bulgaria were in the forefront with an annual average growth rate of 41% and 37% respectively. EU countries can be classified by developments in the value of imports during the period 2004-2008, into: • Booming imports (more than 40%) in Romania; • Strongly growing imports (between 20% and 40%) in Bulgaria, Latvia, Slovakia, Lithuania,

Poland and Estonia; • Considerably growing imports (between 8% and 20%) in Slovenia, the Czech Republic and

Denmark; • Slightly above average growing imports (between 3.0% and 8.0%) in Cyprus, Malta,

Finland, Spain, Portugal, Greece, Italy and the Netherlands; • Average growing imports (around 3.0%) in France, Belgium, Sweden and Austria; • Slowly growing imports (0-2.5%) in Hungary; • Slowly decreasing imports (-0% - -5.0%) in Germany, the UK, Ireland and Luxembourg. Combining the statistics on consumption, production and trade presented in this survey, it can be said that imports continued to constitute a larger share in EU demand in the period under review. Imports grew considerably, mainly at the cost of local production, which was increasingly relocated to other countries. Additionally, exports also declined. Total furnishing textiles Table 4.1 also shows that total EU imports of furnishing textiles annually grew by an average of 3.2% in value in the period 2004-2008, of which 59% came from DCs. Extra-EU imports decreased by an annual average of 29% in value in the period 2004-2008. Two possible conclusions can be drawn: supplies from DC sources won market share, at the cost of extra-EU supplies, but supplies from European sources also increased. The largest growth was recorded by DC supplies, which increased at an average growth rate of 4.7%. This is confirmation of increasing (out)sourcing to LCCs. Germany remained the largest import market in the EU, followed by France and the UK. The UK and Luxembourg showed a decrease in imports of furnishing textiles (-4.0% and -3.6% respectively). All other EU countries showed a growth in imports, with most CEE countries showing the largest growth. Of these countries, Slovenia and Bulgaria were in the forefront with an annual growth rate of 67% and 45% respectively. EU countries can be classified by developments in the value of imports during the period 2004-2008, into: • Booming imports (more than 40%) in Slovenia, Bulgaria and Slovakia; • Strongly growing imports (between 20% and 40%) in Latvia, Lithuania and Romania;


of 50


• Considerably growing imports (between 8.0% and 20%) in Denmark, Portugal, Estonia, Poland and the Czech Republic;

• Average growing imports (between 4.0% and 8.0%) in Spain, Finland, Austria, Hungary and Cyprus;

• Slowly growing imports (0 - 2.5%) in the Netherland, Germany, Italy, Greece, Belgium and Malta;

• Decreasing imports (-0% - -5.0%) in the UK, Ireland and Luxembourg. Combining the statistics on consumption, production and trade presented in this survey, it can be said that growing demand in local and in export markets both stimulated local production and imports. Table 4.1 EU imports of household and furnishing textiles,

in value, 2004-2008, € million 2004 2006 2008 CAGR

’04-‘08 Household textiles Total EU, 4,308 4,703 4,853 3.0% of which from Intra-EU 1,565 1,717 1,747 2.8% Extra-EU ex. DC 293 200 97 -24% DC 2,450 2,787 3,009 5.3% Furnishing textiles Total EU, 1,737 1,881 1,967 3.2% of which from Intra-EU 624 691 772 5.4% Extra-EU ex. DC 151 82 39 -29% DC 961 1,108 1,156 4.7% Source: Eurostat (2009) 4.2 EU imports per product group In this section, EU imports are discussed by product group. For information on imports per product group in individual member states, please refer to the CBI sector surveys covering the household and furnishing textiles market in individual EU countries. Unfortunately, the value of re-exports of the product groups cannot be given by means of Eurostat. Blankets and travelling rugs Between 2004 and 2008, EU-imports annually increased in value by an average of 5.0%. The largest importers in 2008 were Germany, the UK and France, accounting for 44% of total EU imports. Imports to Bulgaria (+51%), Lithuania and Estonia (both +37%) accounted for the largest growth figures. The top three leading suppliers were China, Germany and India. Total intra-EU supply grew by 1.0% in value per year between 2004 and 2008, extra EU supply decreased by 6.2% and total DC supply grew by 8.1%. In 2008, the blankets and travelling rugs most imported, were:

1) Woven, made of synthetics, 2) Knitted, made of synthetics, 3) Woven, made of cotton, 4) Woven, made of wool and hair 5) Woven, made of other materials.

Blankets and travelling rugs that saw the largest growth between 2004-2008, were:

1) Knitted, made of other materials, 2) Knitted, made of synthetics, 3) Knitted, made of wool and hair, 4) Knitted, made of cotton.


of 50


Table 4.2 Leading suppliers of blankets and travelling rugs to the EU, 2004- 2008, share in % of value

Product 2004 € mln

2006 € mln

2008 € mln

Leading suppliers in 2008 (share in %)

Share (%)

Blankets and travelling rugs

152 139 159 Intra EU Germany (8.9), Spain (3.4), Belgium (2.9), Portugal (2.8), Italy (2.7)

37

7 5 6 Extra EU ex DC Hong Kong (0.4), USA (0.2), South Korea (0.2), Switzerland (0.2), Norway (0.1)

1.3

198 271 270 DC China (51), India (5.7), Turkey (3), Thailand (0.6), Pakistan (0.6), Croatia (0.3), Peru (0.2), Vietnam (0.1), Egypt (0.1), South Africa (0.1)

62

Source: Eurostat (2009) Bed linen Between 2004 and 2008, EU-imports annually increased in value by an average of 3.3%. The largest importers in 2008 were Germany, the UK and France, accounting for 52% of total EU imports. Imports to Romania (+49%), Bulgaria (+44%) and Latvia (+40%) accounted for the largest growth figures. The top three leading suppliers were Pakistan, China and Turkey. Total intra-EU supply and extra EU supply remained virtually stable between 2004 and 2008 and total DC supply grew by 5.7%. In 2008, the bed linen most imported, were:

1) Woven/printed, made of cotton, 2) Woven/not printed, made of cotton 3) Knitted, 4) Woven/printed, made of synthetics, 5) Woven/not printed, made of synthetics.

Bed linen that saw the largest growth between 2004-2008, were:

1) Woven/printed, made of cotton, 2) Woven/not printed of cotton, 3) Knitted, 4) Woven/not printed, made of flax or ramie

Table 4.3 Leading suppliers of bed linen to the EU, 2004- 2008,

share in % of value Product 2004

€ mln 2006 € mln

2008 € mln


Share (%)

Bed linen 897 908 894 Intra EU Portugal (5.3), Germany (4.7), Belgium (4), Spain (2.9), France (2.8)

36

49 57 51 Extra EU ex DC Switzerland (0.8), Israel (0.7), UAE (0.1), Canada (0.1), USA (0.1)

2.1

1,214 1,377 1,516 DC Pakistan (21), China (11), Turkey (11), Bangladesh (6.4), India (5.9), Egypt (1.6), Moldova (1.2), Tunisia (1.1), Indonesia (0.4), Vietnam (0.3)

62

Source: Eurostat (2009) Table linen Between 2004 and 2008, EU imports remained virtually stable on an annual basis. The largest importers in 2008 were Germany, France and Italy, accounting for 51% of total EU imports. Imports to Romania (+33%), Latvia (+30%) and Poland (+27%) accounted for the largest growth figures. The top three leading suppliers were China, India and Turkey. Total intra-EU supply and extra EU supply decreased by 2.6% and 6.3% respectively, while total DC supply remained virtually stable. In 2008, the table linen most imported, were:

1) Woven, made of cotton, 2) Woven, made of synthetics, 3) Knitted


of 50


Table linen that saw the largest growth between 2004-2008, were: 1) Woven, made of cotton, 2) Made of textile materials (excl. cotton, flax or man made fibres, knitted or crocheted) 3) Made of flax.

Table 4.4 Leading suppliers of table linen to the EU, 2004- 2008,


€ mln 2006 € mln

2008 € mln


Share (%)

Table linen 192 173 172 Intra EU Germany (7.1), Belgium (5.3), Poland (3.3), Italy (2.9), Portugal (2.6)

38

7 8 6 Extra EU ex DC Russia (0.5), Switzerland (0.3), USA (0.2), Taiwan (0.1), Hong Kong (0.1)

1.2

270 270 277 DC China (22), India (20), Turkey (7.2), Tunisia (3.1), Pakistan (2.4), Egypt (1.9), Belarus (0.9), Croatia (0.7), Vietnam (0.7), Bangladesh (0.4)

61

Source: Eurostat (2009) Bathroom and kitchen linen Between 2004 and 2008, EU imports annually increased in value by an average of 3.3%. The largest importers in 2008 were Germany, France and the UK accounting for 47% of total EU imports. Imports to Bulgaria (+41%), Romania (+37%) and Slovakia (+36%) accounted for the largest growth figures. The top three leading suppliers were Turkey, China and Pakistan. Total intra-EU supply remained virtually stable between 2004 and 2008, extra EU supply increased by 1.5% and total DC supply grew by 5.4%. In 2008, the bathroom and kitchen linen most imported, were:

1) Towelling, made of cotton, 2) Woven, made of cotton (other than towelling), 3) Woven, made of other materials.

Bathroom and kitchen linen that saw the largest growth between 2004-2008, were:

1) Woven, made of cotton (other than towelling) 2) Made of textile materials (excl. of cotton, flax or man-made fibres, floor cloths,

polishing cloths, dishcloths and dusters) 3) Woven, made of flax

Table 4.5 Leading suppliers of bathroom and kitchen linen to the EU, 2004- 2008,


€ mln 2006 € mln

2008 € mln


Share (%)

Bathroom and kitchen linen

519 504 521 Intra EU Portugal (8.6), Belgium (6.7), Germany (4.1), the Netherlands (3.5), France (1.7)

35

33 39 35 Extra EU ex DC Israel (1.2), Switzerland (0.3), South Korea (0.2), Russia (0.1), Taiwan (0.1)

2.3

767 865 945 DC Turkey (24), China (13), Pakistan (9.4), India (7.7), Egypt (3.6), Bangladesh (1.5), Brazil (1.1), Indonesia (0.8), Colombia (0.5), Tunisia (0.2)

63

Source: Eurostat (2009) Curtains Between 2004 and 2008, EU imports annually increased in value by an average of 3.3%. The largest importers in 2008 were Germany, the UK and France, accounting for 50% of total EU imports. Imports to Romania (+45%), Lithuania (+40%) and Bulgaria (+34%) accounted for the largest growth figures. The top three leading suppliers were China, Turkey and Germany. Total intra-EU supply grew by 1.6% in value per year between 2004 and 2008, extra EU supply declined by 4.1% and total DC supply grew by 5.2%.


of 50


In 2008, the curtains most imported, were: 1) Non-woven, made of other materials, 2) Knitted, made of other materials, 3) Woven, made of synthetics, 4) Woven, made of other materials.

Curtains that saw the largest growth between 2004-2008, were:

1) Non-woven, made of other materials, 2) Knitted, made of other materials, 3) Woven, made of synthetics, 4) Woven, made of other materials.

Table 4.6 Leading suppliers of curtains to the EU, 2004- 2008,


€ mln 2006 € mln

2008 € mln


Share (%)

Curtains 438 428 466 Intra EU Germany (10), Poland (5), the Netherlands (4), Belgium (3.3), Czech Republic (3)

41

39 39 33 Extra EU ex DC Taiwan (1), Switzerland (0.8), Russia (0.3), USA (0.2), Israel (0.2)

2.9

518 602 635 DC China (29), Turkey (10), India (7), Pakistan (4.9), Tunisia (1.3), Bangladesh (1.3), Ukraine (0.5), Vietnam (0.3), Ethiopia (0.2), Thailand (0.1)

56

Source: Eurostat (2009) Bedspreads Between 2004 and 2008, EU imports annually declined in value by an average of 2.8%. The largest importers in 2008 were France, Spain and the UK, accounting for 47% of total EU imports. Imports to Slovakia (+53%), Romania (+41%) and Slovenia (+40%) accounted for the largest growth figures. The top three leading suppliers were India, China and Portugal. Total intra-EU supply and total DC supply decreased in value per year by 5.4% and 1.5% respectively between 2004 and 2008, while extra EU supply remained virtually stable. In 2008, the bed spreads most imported, were:

1) Woven, made of cotton, 2) Woven, made of other materials.

Bed spreads that saw the largest growth between 2004-2008, were:

1) Knitted, 2) Woven, made of cotton.

Table 4.7 Leading suppliers of bed spreads to the EU, 2004- 2008,


€ mln 2006 € mln

2008 € mln


Share (%)

Bed spreads 59 53 47 Intra EU Portugal (7.8), Spain (4.2), Belgium (2.7), Germany (2.7), France (2.4)

32

1 1 1 Extra EU ex DC USA (0.1), Hong Kong (0.1), Switzerland (<0.05), Israel (<0.05), Taiwan (<0.05)

0.4

107 119 101 DC India (34), China (26), Turkey (2.5), Pakistan (2.1), Moldova (0.6), Egypt (0.5), Brazil (0.3), Bosnia and Herzegovina (0.3), Vietnam (0.3), Mexico (0.2)

68

Source: Eurostat (2009) Other furnishing articles Between 2004 and 2008, EU imports annually increased in value by an average of 4.4%. The largest importers in 2008 were Germany, France and the UK accounting for 44% of total EU imports. Imports to Slovenia (+117%), Bulgaria (+76%) and Slovakia (+63%) accounted for


of 50


the largest growth figures. The top three leading suppliers were China, India and Germany. Total intra-EU supply increased by 2.8% in value per year between 2004 and 2008, extra EU supply declined by 6.9% and total DC supply grew by 5.8%. In 2008, other furnishing articles most imported, were:

1) Woven, made of synthetics, 2) Woven, made of cotton.

Other furnishing articles that saw the largest growth between 2004-2008, were:

1) Knitted, 2) Woven, made of synthetics.

Table 4.8 Leading suppliers of other furnishing articles to the EU, 2004- 2008,


€ mln 2006 € mln

2008 € mln


Share (%)

Other furnishing articles

232 244 258 Intra EU Germany (11), Belgium (4.1), Poland (4), Portugal (3.2), Romania (2.1)

38

7 10 5 Extra EU ex DC USA (0.2), Switzerland (0.1), Norway (0.1), Taiwan (0.1), Hong Kong (0.1)

0.8

336 387 420 DC China (28), India (11), Tunisia (6.4), Turkey (5.4), Morocco (4.8), Vietnam (2), Pakistan (1.6), Croatia (0.4), Ukraine (0.4), Serbia (0.4)

61

Source: Eurostat (2009) 4.3 The role of developing countries In this section, the role of DCs is discussed. For information on imports per product group in individual member states, please refer to the CBI market surveys covering the household and furnishing textiles market in individual EU countries. Household textiles Table 4.9 shows that EU imports of household textiles from DCs grew at an average annual rate of 5.3% in value in the period 2004-2008, which is faster than the average annual growth of 3.0% for total EU imports. DCs realised an increasing share in EU imports, from 57% in 2004 to 62% in 2008. Germany, the UK, France, the Netherlands, Italy and Spain together account for more than 75% of total DC imports. Latvia (+63%) saw the largest growth in DC imports, followed by Romania (+46%), Slovakia and Estonia (+42%). The countries that saw the largest growth in the DC share of total imports were Latvia, Estonia and Austria. Countries that saw a decrease in the DC share of total imports were Ireland, Luxembourg, Lithuania, Hungary and Slovenia. As can be seen in Table 4.9, CEE countries imported far fewer household textiles from DCs than Western European countries, but did show the largest annual growth. The share of DCs in total imports was the largest in total bed linen (31%). The products with more than 62% share of DC imports were: • Blankets and travelling rugs; knitted; other materials • Bed linen, woven/printed; synthetics • Bed linen, woven/not printed; synthetics • Blankets, knitted; synthetics • Blankets, woven; synthetics • Bed linen, flax or ramie • Bathroom and kitchen linen, cotton • Blankets, knitted; cotton • Table linen, man-made fibres • Bathroom and kitchen linen, terry towelling or similar terry fabrics of cotton • Bed linen, woven/not printed, cotton


of 50


• Table linen, cotton • Bed linen, knitted The products with the highest growth of DC share in EU imports were: • Bed linen; woven/printed; other materials (+92%) • Bathroom and kitchen linen, non-woven; synthetics (+75%) • Bed linen, non-woven/printed; synthetics (+71%) Table 4.9 Imports of household textiles from developing countries,

2004-2008, € million 2004 2005 2006 2007 2008 CAGR* EU27 2,450 2,560 2,787 3,020 3,009 5.3% Germany 659 670 685 702 686 1.0% the UK 577 517 637 629 574 -0.1% France 261 270 295 288 320 5.2% Italy 181 209 221 249 262 9.7% The Netherlands 159 181 174 191 222 8.7% Spain 126 151 185 214 199 12% Belgium 139 152 166 194 192 8.4% Sweden 91 99 112 119 110 4.9% Greece 48 43 48 67 71 10% Denmark 43 48 57 59 71 13% Poland 21 33 36 55 67 34% Austria 34 49 44 58 62 16% Romania 6 12 17 22 27 46% The Czech Republic 12 11 13 23 25 20% Ireland 26 29 34 38 23 -3.0% Finland 16 16 19 24 23 9.5% Slovakia 3 1 3 6 12 41% Portugal 7 8 8 11 11 12% Lithuania 3 3 4 5 8 28% Hungary 13 11 12 9 7 -14% Slovenia 4 6 7 7 7 15% Cyprus 5 7 6 6 7 8.8% Latvia 1 2 3 4 7 63% Bulgaria 2 3 4 4 6 32% Estonia 1 1 1 1 4 41% Malta 2 3 3 2 3 11% Source: Eurostat (2009) * Compound Annual Growth Rate Furnishing textiles Table 4.10 shows that EU imports of furnishing textiles from DCs grew at an annual rate of 4.7% in value in the period 2004-2008, which is larger than the average annual growth rate of 3.2% for total EU imports. DCs realised an increasing share in EU imports, from 55% in 2004 to 59% in 2008. The UK, Germany and France together accounted for almost 55% of total DC imports. Slovakia (+91%) saw the largest growth in DC imports, followed by Slovenia (+82%) and Latvia (+74%). The countries that saw the largest growth in the DC share of total imports were Latvia, Slovakia and Lithuania. Countries that saw a decrease in the DC share of total imports were Ireland, Portugal, Luxembourg, Estonia, Hungary and Cyprus. As can be seen in Table 4.10, CEE countries imported far fewer furnishing textiles from DCs than Western European countries, but these countries did show the largest annual growth. The share of DCs in total imports was the largest in total curtains (32%). The products with more than 59% share of DC imports were: • Bed spreads, woven; flax or ramie • Bed spreads, knitted • Bed spreads, woven; cotton • Other furnishing articles, woven; synthetics • Other furnishing articles, woven; cotton


of 50


• Bed spreads, woven; other materials • Curtains, woven; other materials • Curtains, woven; synthetics • Curtains, non-woven; cotton The product with the highest growth of DC share in EU imports was curtains; non-woven, made of synthetics (+255%). No other products showed a comparable growth in DC share. Table 4.10 Imports of furnishing textiles from developing countries,

2004-2008, € million 2004 2005 2006 2007 2008 CAGR* EU27 961 1,027 1,108 1,245 1,156 4.7% the UK 288 261 277 284 244 -4.1% Germany 166 208 206 233 223 7.6% France 119 132 140 171 159 7.5% Spain 53 62 80 98 90 14% the Netherlands 54 52 63 69 74 8.2% Italy 69 81 90 86 73 1.4% Belgium 66 64 68 85 73 2.4% Sweden 41 46 51 54 47 3.8% Greece 38 40 40 42 44 3.5% Poland 13 16 17 29 30 23% Austria 12 13 13 15 21 15% Denmark 12 17 17 21 21 15% Romania 2 5 9 12 14 54% Portugal 7 8 8 10 9 6.7% Finland 4 6 7 7 9 18% Slovakia 0 0 1 5 6 - the Czech Republic 2 2 2 4 5 19% Ireland 6 7 9 10 3 -14% Slovenia 0 0 0 1 2 - Bulgaria 0 0 1 1 2 - Hungary 4 3 3 2 2 -16% Cyprus 1 2 2 2 2 5.8% Latvia 0 0 1 1 2 - Lithuania 0 0 1 1 1 - Malta 0 1 0 1 1 - Estonia 1 0 0 0 0 - Luxembourg 0 0 0 0 0 - Source: Eurostat (2009) *Compound Annual Growth Rate Leading position of China is decreasing China’s leading position on competitive production countries is becoming smaller. The reason for this is the increasing production costs in China. Labour costs in China are increasing fast. Furthermore, the Chinese government has decreased the tax advantage on exports and it has become more difficult for companies to arrange their financing, as the credit limit has been lowered. Moreover, the regulation on labour conditions and environment has been sharpened. All this had led to a weakening in China’s leading position. According to the Danish Federation of Textile and Clothing, China itself is in the process of acting proactively to the new situation, among others by moving some textile production to African countries. Source: http://www.fashionunited.nl & http://www.dipp.eu (2009) 4.4 Exports Exports of household textiles As shown by Table 4.11, in the period 2004-2008 total EU export value annually decreased by 1.1% to € 2.6 billion in 2008. The product group shares were as follows: • Blankets and travelling rugs: 9.7% of total. Export value remained virtually stable. • Bed linen: 52% of total. Export value remained virtually stable. • Table linen: 10% of total. Annual decrease in export value of 2.6%.


of 50

http://www.fashionunited.nl/

http://www.dipp.eu/


• Bathroom and kitchen linen: 28% of total. Annual decrease in export value of 1.2%. EU27 ran trade deficits (more imports than exports) in all product groups: blankets and travelling rugs (€ 185 million), bed linen (€ 1.1 billion), table linen (€ 188 million) and bathroom and kitchen linen (€ 780 million). Table 4.11 EU exports of household textiles, 2004-2008, € million 2004 2005 2006 2007 2008 CAGR Total, of which from

2,687 2,675 2,703 2,750 2,569 -1.1%

Intra EU 1,983 2,042 2,046 2,131 1,989 0.1% Extra EU ex. DC 592 518 536 493 447 -6.8% DC 112 115 121 126 133 4.5% Source: Eurostat (2009) Portugal was by far the largest exporter, accounting for more than 17% of total EU exports, followed by Belgium (13%), Germany (11%) and Italy (10%). With the exception of Poland, the Czech Republic and Romania, CEE countries were only small exporters of household textiles with most countries accounting for just 1.0% of total EU exports. Exports of furnishing textiles As shown by Table 4.12, in the period 2004-2008, total EU export value annually increased by 2.4% to € 1.1 billion in 2008. The product group shares were as follows: • Curtains: 58% of total. Annual increase in export value of 2.1%. • Bedspreads: 7.4% of total. Annual decrease in export value of 8.0%. • Other furnishing articles: 35% of total. Annual increase in export value of 6.0%. The EU27 also ran trade deficits in all product groups: in curtains (€ 486 million), bedspreads (€ 66 million) and other furnishing articles (€ 297 million). Table 4.12 EU exports of furnishing textiles, 2004-2008, € million 2004 2005 2006 2007 2008 CAGR Total, of which from

1,018 1,064 1,094 1,199 1,118 2.4%

Intra EU 791 845 859 959 891 3.0% Extra EU ex. DC 173 162 172 170 155 -2.7% DC 55 56 63 70 71 7.0% Source: Eurostat (2009) Germany was by far the largest exporter, accounting for 19% of total EU exports, followed by Poland (13%) and Belgium and France (both 8.0%). Of the CEE countries, Poland and the Czech Republic were particularly important exporters, accounting for 13% and 5.0% respectively of total EU exports. The statistics clearly show that producers in CEE countries have a stronger foothold on the EU export market for furnishing textiles than on the EU export market for household textiles. Unfortunately, the exact value of re-exports cannot be given by means of Eurostat. 4.5 Opportunities and threats Trends and market developments offer opportunities and threats to exporters. A given trend can be a threat to some and an opportunity to others at the same time. The following trends should, therefore, always be analysed in relation to your specific circumstances. + EU demand clearly exceeds EU production and, therefore, depends on imports from

outside the EU to meet this demand. This offers good opportunities for DCs. + Although EU demand for household textiles slightly decreased, EU imports of household

textiles increased on average by 3.0%. Imports from DCs grew even faster, by 5.3% per year.


of 50


+ EU imports of furnishing textiles from DCs grew by 4.7% per year. This is larger than the average annual growth rate of 3.2% for total EU imports of furnishing textiles and also larger than the growth rate of EU demand (4.0%).

+ DCs realised an increasing share in EU imports of household textiles (from 57% in 2004 to 62% in 2008) and in EU imports of furnishing textiles (55% in 2004 to 59% in 2008).

+ Imports of household and furnishing textiles in most CEE countries showed a large increase.

+ China’s leading position is expected to decrease due to increasing production costs. + It is expected that imports from DCs will grow faster than total imports in the coming

years, mainly to the detriment of other (EU and non-EU) countries. ± China, India, Turkey and Pakistan are important suppliers for all product groups and

other countries face tough competition from these countries when targeting the EU market.

4.6 Useful sources With the help of the following links it is possible to make your own tailor-made query: • EU Expanding Exports Helpdesk - http://exporthelp.europa.eu go to: trade statistics • Eurostat - official statistical office of the EU - http://epp.eurostat.ec.europa.eu go to

‘themes’ on the left side of the home page go to ‘external trade’ go to ‘data - full view’ go to ‘external trade - detailed data’.

• Understanding Eurostat: Quick guide to easy comext http://epp.eurostat.ec.europa.eu/newxtweb/assets/User_guide_Easy_Comext_20080117.pdf


of 50

http://exporthelp.europa.eu/

http://epp.eurostat.ec.europa.eu/

http://epp.eurostat.ec.europa.eu/newxtweb/assets/User_guide_Easy_Comext_20080117.pdf

http://epp.eurostat.ec.europa.eu/newxtweb/assets/User_guide_Easy_Comext_20080117.pdf


5 Price developments 5.1 Price developments Several factors influence price setting in the household and furnishing textiles market: • First, it depends on the product. Is the product different from other products, does the

product have innovative characteristics? Is the product a high value product with high design characteristics? High value products sell at a higher price than mainstream products.

• The US$:€ exchange rate may influence price settings in the EU. • Increasing supply and global sourcing of household and furnishing textiles put pressure on

manufacturers and margins throughout the value chain. • Cost prices in the manufacturing industry are constantly rising and there is an oversupply

situation for some product groups because markets in the EU are growing at a slower pace or, in some cases, even decreasing.

The market for household and furnishing textiles in EU countries is intensively competitive and prices vary widely according to the product and type of outlet. EU household and furnishing textiles retail prices grow more slowly than overall prices. Due to the diversity in products, it is not possible to focus on the prices of individual products. Table 5.1 gives an overview of the developments of consumer prices of household textiles between 2004 and 2008 and import prices in the individual EU countries. Table 5.1 Inflation rate and import prices of household and furnishing textiles

in the EU, 2004-2008 Price developments

Import prices

CAGR consumer

prices Household textiles* (’04-’08) (in %)

Prices Household

textiles (’08)

(in € per kg)

CAGR Household

textiles (’04-’08) (in %)

Prices Furnishing

textiles (’08)

(in € per kg)

CAGR Furnishing


EU27 stable 5,00 -4.6 7,20 -1.6 Austria +1.0 7,40 +1.0 10,40 -4.7 Belgium +1.8 5,70 -2.7 11,50 +6.9 Bulgaria +1.8 4,80 +11 5,00 +9.5 Cyprus Stable 5,20 -2.6 5,70 -2.4 Denmark +1.0 6,00 -1.5 7,00 -3.7 Estonia +3.9 7,80 +52 8,40 +4.2 Finland +1.0 7,40 -2.0 9,00 -2.1 France Stable 6,60 -1.3 9,80 +3.1 Germany Stable 5,90 -2.0 7,40 -4.5 Greece +1.7 4,80 -2.1 5,20 -8.9 Hungary +1.0 5,10 +25 7,60 +3.8 Ireland - 7,70 stable 12,50 -1.0 Italy +1.0 4,80 stable 5,90 -3.1 Latvia +1.0 5,00 -2.2 7,70 +1.7 Lithuania Stable 5,20 +1.3 9,30 -1.1 Luxembourg +1.0 n/a n/a n/a n/a Malta Stable 5,30 -15 6,90 -5.4 Poland Stable 4,30 +1.0 7,00 -3.2 Portugal Stable 6,10 -5.0 7,10 -5.8 Romania +3.4 1,80 +18 4,00 +13 Slovakia Stable 1,40 +5.6 2,60 +2.0 Slovenia +2.0 7,00 stable 12,00 +1.3 Spain +2.3 5,30 -4.7 7,20 stable Sweden -4.6 5,30 -4.3 7,20 -1.2 The Czech Republic Stable 5,20 +2.0 14,90 +14


of 50



of 50

Price developments Import prices

CAGR

consumer prices

Household textiles* (’04-’08) (in %)

Prices Household

textiles (’08)

(in € per kg)

CAGR Household


Prices Furnishing

textiles (’08)

(in € per kg)

CAGR Furnishing


The Netherlands +1.0 2,40 -20 8,30 stable The UK -3.4 4,60 -7.1 5,00 -3.8 * Consumer prices of furnishing textiles are not available. Source: Eurostat (2009) Although price is not the only marketing tool for exporting household and furnishing textiles to EU markets, it is certainly a very important one. Concentration of buying power, increasing supply and global sourcing of textiles put pressure on processes and margins throughout the value chain. Exporters should: • Have a clear insight into their cost prices for exports to EU markets in order to set a

minimum selling price. At least all variable costs and part of the fixed costs should be covered by the selling price. If the market price is lower than the minimum selling price, money could easily be lost. Although this could be acceptable for individual orders in order to prevent larger losses (stock losses), this situation would undermine the financial stability of the company in the longer term.

• Try to ensure efficiencies in operations in order to decrease cost prices, for example: reduction of stocks, more efficient production runs, negotiate lower purchase prices for raw materials and packing materials.

5.2 Useful sources There are a number of ways of obtaining information on the prices of household and furnishing textiles in the EU, depending on whether you want to find out about manufacturer prices, wholesale or retail prices: • To see how the same product compares across different EU countries, you may be best

served by looking at the websites or catalogues of retailers (who are also sometimes manufacturers) who have a presence in a number of EU countries, and by visiting the individual country sites. An example of this is shown in Appendix C. This Appendix gives an overview of the differences in prices in individual EU countries of household and furnishing textiles at Ikea (2009). Addresses of retailers can be found in the CBI market surveys covering the household and furnishing textiles market in individual countries.

• A good way of obtaining information on prices and price levels in the EU is by visiting one of the major trade fairs or trade centres. You can find out about manufacturer or wholesale prices by contacting a manufacturer or a wholesaler. They may not always be prepared to discuss prices openly, but looking at both sets of prices will also give you an idea of margins. However, you should always ensure that you are comparing the same thing. Some products may appear to be similar, but there may well be very sound reasons why their prices differ.

• Shopping in the prospective market place at several retail shops is another good way of obtaining information on prices at retail or consumer level, but also on fashion, colours and qualities.

• Alternatively, an impression of average prices in EU countries can be formed by browsing through the catalogues of home shopping companies on the internet, for instance

• http://www.neckermann.de; http://www.wehkamp.nl; http://www.otto.de and http://www.laredoute.fr. All prices in these catalogues are given in Euros (€).

• E-marketplaces for home furnishings show the prices of competitive manufacturers - http://www.textilefurnishings.com or http://www.teonline.com.

• Prices charged by competitors can be found by browsing their Internet sites or looking for general sites such as http://www.globalsources.com or http://www.alibaba.com.

• Trade press (refer to ‘From survey to success – export guidelines’).

http://www.neckermann.de/

http://www.wehkamp.nl/

http://www.otto.de/

http://www.laredoute.fr/

http://www.textilefurnishings.com/

http://www.teonline.com/

http://www.globalsources.com/

http://www.alibaba.com/


6 Market access requirements As a manufacturer in a DC preparing to access EU markets, you should be aware of the market access requirements of your trading partners and the EU governments. Requirements are demanded on legislation and on labels, codes and management systems. These requirements are based on environmental, consumer health and safety and social concerns. You need to comply with EU legislation and have to be aware of the additional non-legislative requirements which your trading partners in the EU might request. There is no official quality standard for household and furnishing textiles in the European Union. Despite EU harmonisation, which enables free trade between EU member states, individual markets have different requirements regarding quality, types of fabric, sizes and colours. Accurate information is best obtained from national importers. Most importers (manufacturers, wholesalers, retail organisations etc.) work with certain minimum requirements. In this respect, they have formulated and stipulated minimum quality requirements, relating to both materials and make. In general, a distinction can be made between: • Characteristics of fabrics, which are detectable by an experienced person, with or without

the aid of instruments in general use. It is considered to be a fault if an irregularity is evident in the fabrics of the final product;

• Characteristics of fabrics, which can only be noted with the aid of suitable equipment. Each characteristic described comprises: definition, method of testing and minimum quality standards and, as far as it occurs: possible allowable tolerances compared with the values of the sample and eventual commercial implications.

Methods of testing fabrics and/or ready-made products are mainly based on ISO standards and otherwise on European norms (EN) or national standards (DIN, NEN or BS, for Germany, the Netherlands and the UK respectively), such as: • Care labelling (ISO 3758); • Dimensional stability aspects, such as washing/tumbling (ISO 3759, 5077 and 6330), dry

cleaning (ISO 3175); • Mechanical and physical properties such as tensile strength strip (ISO 5081), tensile

strength grab (ISO 5082), tear strength (ISO 9290), abrasion resistance (EN 22313), crease tendency/recovery (ISO 9867), pilling tendency (BS 5811) and fibre penetration (SIS 650047).

• Colour fastness to several aspects, such as washing, light and water (ISO 105). For more information on legislative and non-legislative requirements applicable to household and furnishing textiles, go to ‘Search CBI database’ at http://www.cbi.eu/marketinfo, select your market sector and the EU country of interest in the category search, click on the search button and click on your subject of interest under non-legislative requirements for an overview of all documents on the subject concerned. Packaging Information on packaging legislation is included in the CBI market information database. Additional information on packaging can be found on the ITC website under export packaging: http://www.intracen.org/ep/packaging/packit.htm. Care must be given to the packaging of products if one intends to export to EU countries. It is obvious that the packaging must be travel-steady. As required, products should also be protected against the elements, changes in temperature and rough handling. Besides these basics of travel- and handle-durability, some importers may have specific demands concerning packaging, such as information concerning the order printed on the boxes (order number, box number, name department or contact person etc.). In all cases, exporters in DCs are advised to contact importers on the methods of packing preferred in the country of import and should anticipate including the cost of special packaging into their price.


of 50


http://www.intracen.org/ep/packaging/packit.htm


Labelling There are two kinds of requirements in the EU: mandatory and voluntary. The mandatory requirement for all EU countries concerns the fibre content and care-labelling. The fibre content or the composition of the textiles used With regard to fibre content: the indication 100% or pure can be used within a margin of 2.0% of the weight of the final product. Other fibres with a weight of less than 10% of the weight of the final products can be mentioned. In that case, all (eventual) other fibres have to be mentioned. The official language of the country has to be used on the labels. Care-labelling/washing instructions An international textiles care-labelling programme was updated in April 2005 according to ISO 3758 and is valid worldwide. The programme makes use of basic symbols which are colour-coded; the symbols relate to washing processes, the properties of colour fastness, dimensional stability, effect of retained chlorine (bleach), maximum safe ironing temperatures and certain other properties. Symbols as published by Ginetex are obligatory in the EU (http://www.sartex.ch/en/textilkennzeichnung/pflegekennzeichnung/pflegesymbole). Optional requirements are: • Origin marking, the name of the country of origin could be mentioned. Mentioning the

name of a country other than the country of origin is not allowed. • Other possibilities are: size, brand or product name and other consumer information. There

is an increasing awareness of the need to keep the consumer informed of their prospective and current purchases.

Tariffs and quotas The agreement between the EU and China (June 2005) to limit Chinese exports to the EU of, among others, woven bed, table, bathroom and kitchen linen, came to an end on December 31, 2007. The European Commission has decided not to continue imposing quotas on EU imports from China. For more information on quota levels on imports, please refer to http://trade.ec.europa.eu/sigl - click on textiles. In general, import tariffs vary between 0 and 12% (refer to Table 3.1). Information on tariffs and quotas can be found at http://exporthelp.europa.eu. For more information, please refer to the CBI document ‘Packaging, size marking and labelling: household and furnishing textiles’. This can be downloaded from http://www.cbi.eu/marketinfo. Fairtrade Labelling Scheme An increasing number of European stores are offering fair trade home textile products labelled according to the Fairtrade labelling scheme. When buying Fairtrade products, consumers are guaranteed that the producers and workers are getting a fair price for their products. Please refer to Fairtrade Labelling Organisations (http://www.fairtrade.net) for more information on fair trade certification. For an overview of labels on organic cotton, please download the CBI document ‘Overview of labels for organic cotton’ at the CBI market access database (http://www.cbi.eu/marketaccess).


of 50

http://www.sartex.ch/en/textilkennzeichnung/pflegekennzeichnung/pflegesymbole/

http://trade.ec.europa.eu/sigl

http://exporthelp.europa.eu/


http://www.fairtrade.net/

http://www.cbi.eu/marketaccess


7 Opportunity or threat? An overview of the general opportunities and threats was given at the end of the previous chapters: Demand (Chapter 1), Production (Chapter 2) and Trade (Chapter 4) in this EU survey. Specific opportunities in each national EU market can be found in Chapters 1 and 3 of the CBI sector surveys for household and furnishing textiles. However, to make the opportunities more realistic, it is important to know the trends, in particular in the household and furnishing textiles industry. Once the trend is clear, it is important to know which target group in which country is involved. Remember that a given trend may offer opportunities to one company, but is a threat to another. Exporters should therefore analyse if the trends discussed provide opportunities or threats. The outcome of this analysis depends on an exporter’s specific situation. For example, there is a growing demand for natural fibres in the household textiles sector. This offers an interesting opportunity for DC producers of household textiles made of natural fibres. At the same time, this is a threat for DC producers of household textiles who are not able to offer household textiles made of natural fibres. Furthermore, you should be aware that not everybody follows trends. For every trend there is a counter trend which presents untapped growth opportunities, as well as potential threats. It is important to know that trends are firstly picked up in Western and Northern EU countries. The twelve new member states lag behind the others in terms of the adoption of new trends or developments. However their integration into the EU has meant that this process will be speeded up, encouraged by media and by internationally operating chains. Market intelligence is one aspect, but on the other hand, it is important to know the capabilities, strengths and weaknesses of your company. For more information on how to become a successful exporter to the EU, refer to the CBI’s ‘From survey to success. Guidelines for exporting household and furnishing textiles to the EU’


of 50


Appendix A Product characteristics Product groups Large quantities, and a huge variety, of textiles are used in an interior environment (home, office, hotel, etc.). In most publications, a distinction is made between household and home or interior textiles. The term home textiles is much broader, and besides household and furnishing textiles, also includes floor-covering textiles, filling materials used in duvets, quilts, pillows, sleeping bags and mattresses. However, these products are not discussed in this survey. The following classification is used in this survey: Household textiles, include: • Blankets and travelling rugs, excluding electric blankets • Bed linen: (cover-) sheets, pillowcases and quilt covers • Bath linen: hand, bath and beach towels, guest towels and washing gloves • Kitchen linen: kitchen or tea towels and glass cloths • Table linen: tablecloths and napkins. Furnishing textiles, include textiles which are used for: • Window coverings: curtains including drapes, interior blinds and curtain valances or

pelmets • Bedspreads • Other furnishing textiles, like decorative pillowcases, throw rugs etc. Although reference will be made to the contracting sector (household and furnishing textiles for hotels, offices, hotels, public buildings, sport and holiday accommodation etc.) the main focus of this survey is textiles bought by consumers. Blankets Most blankets and travelling rugs used as a covering for warmth, especially on a bed, are woven but other production methods which can provide comparable insulation at lower costs are also popular. These are: raschel knit or thermal blankets, needle punched non-wovens (finished by napping) and flocked blankets. Small blankets (also indicated as throws) with typical sizes of 50x60 inches or 130x160 centimetres are used for both decorative and functional purposes. Popular fleece blankets of these sizes are offered in not-printed, printed, embroidered etc. Bed linen In terms of value, this is certainly the most important market for household textiles. The functions of bed linen are to protect the bedding, to enhance "sleeping pleasure" and an aesthetic appeal. The most important development concerning bedroom linen in recent decades has been the introduction of the eiderdown also referred to as duvet, or quilt (together with the quilt cover). Quilt covers have replaced the upper sheets in most Western European homes. The quilt cover has much more potential for fashion expression than sheets. An exporter wishing to compete in this category must also be prepared to compete in fashion terms. Pure cotton fabric is mainly preferred for all types and categories of bed linen; polyester-cotton is considerably less popular, although its advantage is its shrink resistance and durable qualities. Other textile fabrics such as silk account for a minor percentage of the total market. In decreasing degree of importance, the following types can be distinguished: • Flat (non-raised) bed linen. Main characteristics are: light in weight; feels fresh and clean;

feels cool and has little volume in a washing machine. Flat types can be made of sheeting, shirting, poplins, batist, satin and damask. Demand of normal/traditional sheets has decreased sharply (with the exception of hospitals and hotels). Stretch-fitted undersheets have replaced traditional types.

• Terry bed linen: mainly single jersey terry, knitted on circular knitting machines. Terry bed linen mostly has 80% cotton for the piles and 20% synthetics for the back. Characteristics


of 50


are: absorbent and "airy"; easy care (no ironing); as a knitted product, it is elastic (stretch) so that it can be used for fitted sheets suitable for different sizes of mattresses.

• Jersey bed linen is made on a single jersey circular knitting machine. Compared to terry bed linen, the jersey bed linen has no loops. Characteristics: very supple; absorbent and "airy"; very easy to care and looks elegant.

• Flannelette (flannel), brushed or raised bed linen made of bulky yarns and brushed on both sides, giving a raised surface. Main characteristics are: gives warmth and easy care (no ironing).

• Seersucker bed linen is a special weaving technique and gives an irregular surface texture -no ironing is necessary. The irregular seersucker effects can also be obtained by printing techniques. This cotton bed linen is lightweight and suitable for warmer seasons or heated bedrooms.

The sizes of bed linen depend on the sizes of the beds (children’s beds, single beds, ‘king size’ single beds, double beds and twin beds) and the mattresses on the beds. The development in the heights of mattresses in the last decade is an important point. Heights of 12 cm are increasingly being replaced by heights of 15 cm and even 20 cm. The average height for fitted sheets in the middle market (and higher) is 18 cm. In the higher segments of the market, the length of bed linen has increased from the standard sizes 200 and 220 to 240 cm. Bathroom linen The most common bathroom textile product is a terry towel. Types of towels and mostly used sizes in centimetres are: face (30x30), guest (30x50), hand (50x90 or 60x100), bath (70x140) and bath or beach sheet (100x150). The most important differences are based on end-use, which dictates the different sizes. Other bath products are washing gloves, bath rugs and bath mats. Towels are mainly made of terry cloth (non-cut loops). Terry is absorbent, has a light massage effect, is strong, durable and easy to wash. In recent years, the quantity of high-quality terry material in the market has constantly increased. The trend is in the direction of more and heavier, voluminous and softer qualities. Bath towels and towels for other purposes are made of cotton. New developments include blends of cotton with other fibres to obtain softer feeling, faster drying and more brilliance. Besides households, hotels and hospitals are the main consumers. The necessity of regular washing makes quality and colour fastness vitally important. Kitchen linen A decrease in the use of tea towels has been greatly influenced by the fact that increasingly more households are using automatic dishwashers, so that hand-drying is no longer necessary. In the kitchen, two types of towels are used: kitchen towels, made of terry or flat woven and dish or tea towels, only flat woven. Dish or tea towels are made of cotton. Check patterns are still the most popular for tea towels. Table linen Belonging to the group of table linen are: tablecloths, table-covers, table-centres, table runners and napkins. The tablecloth has two functions: protection of the table and decoration (aesthetic appeal). It is difficult to get hold of accurate figures on table napkins separately, as they are almost always sold in a set matching the tablecloth, particularly in the case of expensive quality. White, with or without self-print and single coloured plain, with or without self-print are most commonly used for table linen. It is important for exporters to follow changes in taste, colour, material and texture. There is a definite decline in the daily use of the textile tablecloth, but an increase in attractive kitchen items, such as dish towels, terry towels, warmers, place mats etc. Very often, the textile napkin is being replaced by a cellulose one, increasing the possibility of colour variations in combination with the tablecloth, the table top and/or the candles, thereby decreasing the laundry duty.


of 50


There is an enormous offer as to types, sizes, forms, materials, colours and designs. Materials can be flat, structured, printed, dobby, jacquard, embroidered, damask with all kinds of adornments and decorations. Table linen is mostly made of cotton. Material other than cotton, are 100% polyester (easy to launder/wash) and 50% polyester/50% cotton or viscose and the more luxurious textile fibres such as silk. The market share of pure cotton has so far remained relatively stable. Window coverings The function of window coverings is various: provide privacy, eliminate (sun-) light, insulation purposes (thermal, acoustic), aesthetic effects etc. The more open the fabric construction, like net or lace curtains, the greater the visibility of outside view and light penetration, but there is less privacy. In this case, the decorative function has the highest priority. Textiles for indoor window coverings can be divided into the following categories: • Draperies, which are generally made of heavy fabrics, such as velvet, satin, opaque and

jacquard. They usually have a lining and are hung from hooks. • Curtains are relatively sheer and lightweight and are in most cases hung without linings. • Lace or net curtains adorn the window frame in houses. The major fibre used for net

curtains is polyester filament. Other fibres are polyester staple and acrylic staple. • Shades are a soft covering, take less space than curtain and draperies and come in fabric

and a variety of other materials. • Blinds are similar to shades and are generally made of vinyl, fabric or wood. They can be

either horizontal or vertical and can be adjusted to regulate the amount of light during the day and give privacy during the night.

This CBI survey covers window coverings made of textiles. Curtains are largely sold ready-made in lengths which fit the standard window sizes and several heights. However, buying curtain fabrics to sew one's own curtains or letting an interior decoration firm make them up is not uncommon - usually this applies to expensive materials (e.g. for offices). Curtains and draperies are made from all types of fibres and fabric constructions, however, most curtains are made of synthetic fabrics. This is because cotton curtains require ironing after washing, they are heavy and thus inconvenient in handling. There is also a market for expensive fibres such as silks, but it is fairly limited because of pricing and handling restrictions. There is still a market for curtain fabrics for home sewing besides curtains sewn and fitted by professional curtain makers. The latter are often employed by home furnishing retailers or interior decorating firms. Bedspreads A bedspread may be defined as an outer covering, mainly woven cotton (for example: waffle throw or rib), from blends (poly-cotton 50/50), but can also be made of synthetic materials. Excessively stiff fabrics should be avoided, since they do not drape well over a bed. Statistical product classification of household and furnishing textiles Prodcom and combined nomenclature Two different sets of statistical data are used in this survey. Both sets have been provided by Eurostat, the statistical body of the EU. The first set is derived from Prodcom. The term Prodcom is derived from PRODucts of the European COMmunity. This is a survey based on products whose definitions are standardised across the EU to allow comparability between the member countries’ data. Prodcom covers


of 50


some 4,800 products which are assigned to some 250 industries (subclasses) as defined by the Standard Industrial Classification (SIC). Prodcom data contain production statistics. The second set is the trade data based on the Combined Nomenclature (CN) and contains the goods classification prescribed by the EU for international trade statistics. The CN is an 8-digit classification consisting of a further specification of the 6-digit Harmonised System (HS). HS was developed by the World Customs Organisation (WCO). The system covers about 5,000 commodity groups, each identified by a six-digit code. More than 179 countries and economies use the system. Based on the above data, apparent demand can be calculated as follows: apparent demand = production + imports – exports. Statistical data: limitations Trade figures quoted in CBI market surveys must be interpreted and used with extreme caution. The Prodcom data, used in Chapter 1 and 2, are less reliable than the import and export statistics used in Chapter 4, as they are not part of official data collection for Customs. Companies only have to send in their data on an annual or quarterly basis. The figures sometimes show a discrepancy between years, e.g. a substantial fall or extraordinary growth. These problems are caused by inaccurate, inconsistent and untimely reporting by companies. However, Prodcom data are the only official source for production in the different EU markets. For decision making, however, these figures are not accurate enough and should be used in conjunction with further market research. In the case of intra-EU trade, statistical surveying is only compulsory for exporting and importing firms whose trade exceeds a certain annual value. The threshold varies considerably from country to country, but it is typically about € 100,000. As a consequence, although figures for trade between the EU and the rest of the world are accurately represented, trade within the EU is generally underestimated. Furthermore, the information used in CBI market surveys is obtained from a variety of sources. Therefore, extreme care must be taken in the qualitative use and interpretation of quantitative data, it puts limitations on in-depth interpretation of relations between demand, production and trade figures within one country and between different countries. Table A Selected product groups, including all selected products, based on

Prodcom and CN nomenclature Prodcom Prodcom description CN CN description Blankets and travelling rugs 17.40.11.30 Blankets and travelling rugs

of wool or fine animal hair (excluding electric blankets)

6301.20 – 10/90/91/99

knitted; wool and hair woven; wool and hair

17.40.11.90 Blankets (excluding electric blankets) and travelling rugs of textile materials (excluding of wool or fine animal hair, of synthetic fibres)

6301.30 - 10/90, 6301.90 - 10/90

knitted; cotton and other materials, woven; cotton and other materials

17.40.11.50 Blankets and travelling rugs of synthetic fibres (excluding electric blankets)

6301.40 -10/90 knitted; synthetics woven; synthetics

Bed linen 17.40.12.30 Bed linen of knitted or

crocheted textiles 6302.10 - 00/10/90

knitted cotton and other materials

17.40.12.53 Bed linen of cotton (excluding knitted or crocheted)

63021.00, 6302.31.00/10 /90

woven/printed; cotton woven/not printed of cotton

17.40.12.70 Bed linen of non-woven man-made fibres

6302.22.10, 6302.32.10

non-woven/printed; synthetics non-woven/not printed; synthetics


of 50



of 50

Prodcom Prodcom description CN CN description (excluding knitted or crocheted)

17.40.12.59 Bed linen of woven textiles (excluding of cotton, of flax or ramie)

6302.22.90, 6302.29.90, 6302.32.90, 6302.39.90

woven/printed; synthetics and other materials woven/not printed; synthetics and other materials

17.40.12.55 Bed linen of flax or ramie (excluding knitted or crocheted)

6302.29.10, 6302.39 – 10/20/30

woven/printed; flax or ramie woven/not printed; flax or ramie

Table linen 17.40.13.30 Table linen of knitted or

crocheted textiles 6302.40.00 Knitted

17.40.13.53 Table linen of cotton (excluding knitted or crocheted)

6302.51.00/10/ 90, 6302.52.00

woven; cotton woven; cotton with flax

17.40.13.70 Table linen of non-woven man-made fibres

6302. 53.10 non-woven; synthetics

17.40.13.59 Table linen of woven man-made fibres and of other woven or non-woven textiles (excluding of cotton, of flax)

6302.53.90, 6302.59.00

woven; synthetics and other materials

Bathroom and kitchen linen 17.40.14.30 Toilet linen and kitchen

linen, of terry towelling or similar terry fabrics of cotton

6302.60.00 towelling; cotton

17.40.14.50 Woven toilet linen and kitchen linen, of textiles (excluding terry towelling or similar terry fabrics of cotton)

6302.91 –00/10/90, 6302.92.00, 6302.93.90, 6302 99.00

woven, cotton (other than towelling), flax, synthetics and other materials

17.40.14.70 Toilet linen and kitchen linen, of non-woven man-made fibres

6302.93.10 non-woven; synthetics

Curtains (including drapes, interior blinds, curtain or bed valances) 17.40.15.30 Curtains and interior blinds,

curtain or bed valances, of knitted or crocheted materials

6303.11.00, 6303.12.00, 6303.19.00

knitted; cotton, synthetics and other materials

17.40.15.50 Curtains and interior blinds, curtain or bed valances, of woven materials

6303.91.00, 6303.92.90, 6303.99.90

woven; cotton, synthetics and other materials

17.40.15.70 Curtains and interior blinds, curtain or bed valances, of non-woven materials

6303.92.10, 6303.99.10

non-woven; synthetics and other materials

Bedspreads 17.40.16.53 Bedspreads (excluding

eiderdowns) 6304.11.00 6304.19.10/30/90

Knitted woven; cotton, flax or ramie and other materials

Other furnishing articles 17.40.16.59 Furnishing articles including

furniture and cushion covers as well as cushion covers, etc for car seats (excluding blankets, travelling rugs, bed linen, table linen, toilet linen, kitchen linen, curtains, blinds, valances and bedspreads)

6304.91.00, 6304.92.00, 6304.93.00, 6304.99.00

Knitted woven; cotton, synthetics, woven and other materials



of 50

Appendix B Introduction to the EU market The European Union (EU) is the current name for the former European Community. In January 1995 the EU consisted of 15 member states. Ten new countries joined the EU in May 2004. In January 2007 two more countries – Bulgaria and Romania - joined the EU. Negotiations are in progress with a number of other candidate member states. In this survey, the EU is referred to as the EU27, unless otherwise stated. Cultural awareness is a critical skill in securing success as an exporter. The enlargement of the EU has increased the size of the EU, and also significantly increased its complexity. With more people from culturally diverse backgrounds, effective communication is necessary. Be aware of differences in respect of meeting and greeting people (use of names, body language etc.) and of building relationships. There are also differences in dealings with hierarchy, presentations, negotiating, decision making and handling conflicts. More information on cultural differences can be found in Chapter 3 of CBI’s export manual ‘Exporting to the EU (2006)’. General information on the EU can also be found at the official EU website http://europa.eu/abc/governments/index_en.htm or the free encyclopaedia Wikipedia http://en.wikipedia.org/wiki/Portal:Europe. Monetary unit: Euro On 1 January 1999, the Euro became the legal currency within twelve EU member states: Austria, Belgium, Finland, France, Germany, Italy, Ireland, Luxembourg, The Netherlands, Spain, and Portugal. Greece became the 12th member state to adopt the Euro on January 1, 2001. Slovenia adopted the Euro in 2007. Since 2002 Euro coins and banknotes replaced the national currency in these countries. Denmark, the UK and Sweden have decided not to participate in the Euro. In CBI market surveys, the Euro (€) is the basic currency unit used to indicate value.

http://europa.eu/abc/governments/index_en.htm

http://en.wikipedia.org/wiki/Portal:Europe



of 50

Appendix C Overview of retail prices of household and furnishing textiles at IKEA Table 4.2 Overview of retail prices, including VAT, of some selected products of household and furnishing textiles at Ikea

in Europe (in €*), 2009 product group

product price Germany price the Netherlands

price the UK price France price Belgium price Spain price Sweden

price Italy

bath linen towel 0.99 – 16.99 1.00 – 9.99 3.49 – 16.33 1.99 - 14.95 1.50 – 6.99 1.50 – 15.95 0.97– 9.61 0.69 – 8.99 bed linen bedspread 3.99 – 35.00 7.99 - 29.95 4.19 – 40.84 4.99 – 39.00 4.99 – 29.95 4.50 – 29.95 3.79 – 33.88 5.99 – 37.95 plaid 1.49 – 29.99 4.00 - 39.95 1.97 – 46.68 2.50 – 29.00 1.99 – 49.95 3.99 – 49.95 1.46 – 29.03 3.99 – 24.95 table linen table

cloth 9.00 – 22.00 4.99 – 19.95 5.82 – 26.84 4.99 – 9.99 5.99 – 24.95 5.99 – 24.95 5.73 – 25.14 1.99 – 24.95

kitchen linen

tea towel 2.00 – 6.00 1.99 - 5.99 1.86 – 5.36 2.99 – 5.99 2.99 – 5.99 1.99 – 5.99 2.82 – 5.73 2.99 – 5.99

furnishings curtains (set of 2)

3.99 – 69.00 3.99 – 69.95 4.66 – 75.87 3.99 – 65.00 3.99 – 59.90 4.99 – 69.90 3.79 – 63.00 4.99 – 65.00

Source: http://www.ikea.com (2009) * Used conversion rates are 1£ = 1.17€ and 1kr = 0.10€

http://www.ikea.com/


Appendix D List of developing countries OECD DAC list - January 2006 When referred to developing countries in the CBI market surveys, reference is made to the group of countries on this OECD DAC list of January 2006. Afghanistan Gabon Nepal Uruguay Albania Gambia Nicaragua Uzbekistan Algeria Georgia Niger Vanuatu Angola Ghana Nigeria Venezuela Anguilla Grenada Niue Vietnam Antigua and Barbuda Guatemala Oman Wallis & Futuna Argentina Guinea Pakistan Yemen Armenia Guinea-Bissau Palau Zambia Azerbaijan Guyana Palestinian Admin. Areas Zimbabwe Bangladesh Haiti Panama Barbados Honduras Papua New Guinea Belarus India Paraguay Belize Indonesia Peru Benin Iran Philippines Bhutan Iraq Rwanda Bolivia Jamaica Samoa Bosnia & Herzegovina Jordan Sao Tome & Principe Botswana Kazakhstan Saudi Arabia Brazil Kenya Senegal Burkina Faso Kiribati Serbia Burundi Korea Rep. of Seychelles Cambodia Kyrgyz Rep. Sierra Leone Cameroon Laos Solomon Islands Cape Verde Lebanon Somalia Central African Rep. Liberia South Africa Chad Libya Sri Lanka Chile Macedonia St. Helena China Madagascar St. Kitts Nevis Colombia Malawi St. Lucia Comoros Malaysia St. Vincent & Grenadines Congo Democratic Rep. Maldives Sudan Congo Rep. Mali Suriname Cook Islands Marshall Islands Swaziland Costa Rica Mauritania Syria Cote d’Ivoire Mauritius Tajikistan Croatia Mayotte Tanzania Cuba Mexico Thailand Djibouti Micronesia, Fed. States Timor-Leste Dominica Moldova Togo Dominican Republic Mongolia Trinidad & Tobago Ecuador Montenegro Tunisia Egypt Montserrat Turkey El Salvador Morocco Turkmenistan Equatorial Guinea Mozambique Turks & Caicos Islands Eritrea Myanmar Tuvalu Ethiopia Namibia Uganda Fiji Nauru Ukraine


of 50



of 50

CBI countries – January 2008: CBI supports exporters in the following Asian, African, Latin American and European (Balkan) countries: Afghanistan Albania Armenia Bangladesh Benin Bolivia Bosnia-Herzegovina Burkina Faso Burundi Colombia Ecuador Egypt El Salvador Ethiopia Georgia Ghana Guatemala Honduras India Indonesia Jordan Kenya Kosovo Macedonia Madagascar Mali Moldova Montenegro Morocco Mozambique Nepal Nicaragua Pakistan Peru Philippines Rwanda Senegal Serbia South Africa Sri Lanka Suriname Tanzania Thailand Tunisia Uganda Vietnam Zambia

200920-20household20and20furnishing20textiles20-20eu1

Documents