Export Marketing Survey: German Market for Textile and Clothing

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This Project is financed by the European Union Support to Export Promotion and Investment Attraction in the Republic of Moldova EuropeAid/126810/C/SER/MD This Project is implemented by a Consortium led by GFA Consulting Group 3.3 PRICES The diagram below indicates the development of Germany’s consumer price index for clothing and shoes during the last decade. 104 103 102 101 100 99 98 97 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Source: Statistisches Bundesamt Margins under constant pressure Import prices Germany has an average price level for clothing in comparison with other EU member states. Above the EU average are for instance the Scandinavian countries, the Baltic states, Austria and Italy. Whereas Ireland, UK, Czech Republic and France are below the average. The margins at various levels of distribution are influenced by several factors (e.g. volume of order, competition, product/market combination), therefore it is almost impossible to draw up a schedule of margins. Nonetheless, fact is that margins at all levels of the distribution chain are under constant pressure, due to increasing competition, integration and consumer demand for lower prices. The development of the average import prices for selected apparel products – shown in the following diagram – indicates the negative pricing development for producers. In fact import prices were 4,6% lower in 2007 than in 2005. A further decrease is expected, which will force German apparel companies to look for further low‐price sourcing opportunities abroad. 5
This Project is financed by the European Union Support to Export Promotion and Investment Attraction in the Republic of Moldova EuropeAid/126810/C/SER/MD This Project is implemented by a Consortium led by GFA Consulting Group 10,00 9,50 9,00 8,50 8,00 7,50 7,00 6,50 6,00 5,50 5,00 4,50 4,00 3,50 2005 2006 2007 Cotton shirts (men) Cotton shirts (women) Lightweight tops (women) Cotton trousers (men) Cotton trousers (women) Cotton skirts 3.4 TRADE - EXPORT and IMPORT Germany is the largest importer of clothing in the EU, importing outerwear worth 18 billion € in 2007. From 2005 to 2007 imports on average increased by 7%, with a particular strong increase of knitted outerwear (+9%). There has also been a strong increase in cotton products, rather than man‐made fibers. Basically imports account for 90% of all outerwear sold in Germany. Imports of outerwear into Germany, 2003‐2007 in million € 2003 2005 2007 Total outerwear 16,880 16,814 17,984 Knitted outerwear 6,795 6,981 7,608 Woven outerwear 9,444 9,497 10,037 Leather garments 441 336 339 Source: CBI, “The outerwear market in Germany”, 2008 67% of all imports derive from countries outside the EU. In particular imports from Asia grew by more than 20%, with China accounting for more than 60% of the growth. But also countries like India, Vietnam, Bangladesh, Pakistan and Sri Lanka increased their share. Leading exporters to Germany are China and Turkey. Leading suppliers of outerwear to Germany 2007 Total outerwear 1. China, 23% 2. Turkey, 13% 3. Bangladesh, 7% 4. Italy, 5% Woven outerwear 1. China, 28% 2. Turkey, 8% 3. Bangladesh, 5% 4. Romania, 5% Source: CBI, “The outerwear market in Germany”, 2008 Knitted outerwear 1. Turkey, 20% 2. China, 16% 3. Bangladesh, 10% 4. India, 4% German exports 6
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Export Marketing Survey: German Market for Textile and Clothing

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