Export Marketing Survey: German Market for Textile and Clothing

More documents

Recommendations

Info

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 4 MARKET ACTORS AND ENTRY The following section provides an overview of the functions of the relevant market actors in the clothing retail. Also the market access requirements – legislative and non‐legislative – are described. A list of important German market actors can be found in the annexes. 4.1 Trade Channels and Market Actors The following diagram shows the trade channel structure with the different sales intermediaries. It is possible for a sales intermediary (e.g. importing manufacturer) to take over the functions of others, in order to improve competitiveness and sales margin (vertical integration). Outerwear Trade and Distribution Channels Exporting Manufacturers ‐ inside and outside EU Importing Wholesalers Importing Manufacturers Agents Importing Retailers Department Store Clothing Multiples Home Shopping Buying Organisations Non‐importing Retailers Source: CBI „Outerwear Market in the EU“ The functions of the different sales intermediaries between industry and retails are: Importing Wholesalers • Buying on his own account, the wholesaler takes title to the goods and is responsible for their further sale and distribution • Development of a successful working relationship between exporting manufacturers and a wholesaler or importer can lead to a high level of cooperation with regard to appropriate designs for the market, new trends, use of materials and quality requirements • Wholesalers cater both to the specialist shops and to the department stores and multiple chains • The trend of retailers to avoid pre‐ordering and rather sell from stock, is 9
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 Importing Manufacturers Agents (sales representatives) Importing Retailers reinforcing the wholesalers’ position • Have their own designers, apply various production and procurement strategies (see chapter on production) • Penetrate the retail business by opening own shops (vertical integration) • An independent intermediary between manufacturer and retail • In general the agent receives a commission from the manufacturer • More and more agents sell from stock, to meet short‐term demands. Stock forming occurs on consignment basis • Agents mainly work with brands Differing from the sales agent is the buying agent. The buying agent is located in supplying countries and acts on instructions of his client, mainly retail organisations • Bigger retail organizations import via their own buying / sourcing departments, and thus cut out intermediaries • They purchase finished products via direct imports (sourcing ready‐made products) from low‐wage countries and sourcing products made according to their own design (backward integration) There is the general trend of integration in the value chain, which means: • Forward Integration: more and more manufactures open their own brand stores (mono‐label) in order to control the point of sale (higher margins, better knowledge of consumer demand) • Backward Integration: retailers set‐up their own design departments and source supply with own buying departments or agents 4.2 Retail Structure and Trends The following diagram illustrates the development of the market share of the different actors in the German apparel retail: 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 12% 18% 19% 39% 34% 32% 15% 14% 14% 10% 9% 9% 18% 16% 16% 6% 9% 10% 1999 2003 2005 Textile discounters & non specialists Independent retailers Department stores Home shopping Clothing mutiples Verticals Remarkable is the growth of textile discounters and the non‐specialists (hypermarkets with strong non‐food component) as well as the rise of verticals (mono‐label stores). Also globally operating apparel retail chains like H&M or Zara have enlarged their market share. In turn the formerly strong independent 10
Page 1 and 2: The European Union’s Tacis Progra
Page 3 and 4: This Project is financed by the Eur
Page 15: This Project is financed by the Eur
Page 21: This Project is financed by the Eur

Export Marketing Survey: German Market for Textile and Clothing

Create successful ePaper yourself

Delete template?

Save as template?