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EU MARKET SURVEY <strong>2003</strong><br />

TABLEWARE, KITCHENWARE &<br />

OTHER HOUSEHOLD ARTICLES


EU MARKET SURVEY <strong>2003</strong><br />

TABLEWARE, KITCHENWARE &<br />

OTHER HOUSEHOLD ARTICLES<br />

Compiled for CBI by:<br />

Developing Countries B.V. The Netherlands<br />

December <strong>2003</strong><br />

DISCLAIMER<br />

The information provided in this <strong>market</strong> <strong>survey</strong> is believed to be accurate at the time of writing. It<br />

is, however, passed on to the reader without any responsibility on the part of CBI or the authors<br />

and it does not release the reader from the obligation to comply with all applicable legislation.<br />

Neither CBI nor the authors of this publication make any warranty, expressed or implied,<br />

concerning the accuracy of the information presented, and will not be liable for injury or claims<br />

pertaining to the use of this publication or the information contained therein.<br />

No obligation is assumed for updating or amending this publication for any reason, be it new or<br />

contrary information or changes in legislation, regulations or jurisdiction.<br />

COPYRIGHT<br />

No part of this <strong>market</strong> <strong>survey</strong> may be sold, reproduced in any form or by any means without the<br />

prior permission of CBI.<br />

Photo courtesy: Developing Countries B.V.<br />

2


Table of Contents<br />

EU Market Survey<br />

REPORT SUMMARY 5<br />

INTRODUCTION 8<br />

PART A: EU MARKET INFORMATION 10<br />

1 PRODUCT CHARACTERISTICS 11<br />

1.1 Product Groups 11<br />

1.2 Customs/Statistical Product Classification 12<br />

2 INTRODUCTION TO THE EU MARKET 13<br />

3 CONSUMPTION / INDUSTRIAL DEMAND 15<br />

3.1 Market size 15<br />

3.2 Market segmentation 19<br />

3.2.1 Market segmentation by product 19<br />

3.2.2 Market segmentation by user 24<br />

3.3 Consumption patterns and trends 25<br />

3.3.1 Demographic trends 25<br />

3.3.2 Social & Cultural trends 26<br />

3.3.3 Technical trends 28<br />

3.3.4 Economic trends 28<br />

4 PRODUCTION 29<br />

4.1 Production per product group 30<br />

5 IMPORTS 34<br />

5.1 Total imports 34<br />

5.2 Imports by product group 40<br />

5.3 The role of the Developing Countries 48<br />

6 EXPORTS 51<br />

7 TRADE STRUCTURE 56<br />

7.1 EU trade channels 56<br />

7.2 Intermediaries 56<br />

7.3 Retailers of table- & kitchenware 58<br />

7.4 Retail channels per country 60<br />

7.5 Distribution channels for developing country exporters 64<br />

8 PRICES & MARGINS 65<br />

8.1 Price development in the table- & kitchenware <strong>market</strong> 65<br />

8.2 Price levels in the EU 65<br />

8.3 Sources of price information 66<br />

9 REQUIREMENTS FOR ACCESS 67<br />

9.1 Non-tariff trade barriers 67<br />

9.2 Tariffs and quotas 74<br />

3


PART B: EXPORT MARKETING GUIDELINES 77<br />

10 EXTERNAL ANALYSIS 78<br />

10.1 Market developments and opportunities 78<br />

10.2 Competitive analysis 80<br />

10.3 Sales channel assessment 81<br />

10.4 Organisational Structures 82<br />

10.5 Logistics 83<br />

10.6 Price Structure 84<br />

10.7 Examples: Product Profiles 86<br />

11 INTERNAL ANALYSIS 88<br />

11.1 Product standards/ quality, Production capacity, Product design 88<br />

& development and Unique Selling Points<br />

11.2 Logistics 89<br />

11.3 Marketing and sales 90<br />

11.4 Financing 91<br />

11.5 Capabilities 91<br />

12 DECISION MAKING 93<br />

12.1 SWOT and situation analysis 93<br />

12.2 Strategic options & objectives 93<br />

13 MARKETING TOOLS 94<br />

13.1 Matching products and the product range 94<br />

13.2 Building up a relationship with a suitable trading partner 95<br />

13.3 Drawing up an offer 96<br />

13.4 Handling the contract 97<br />

13.5 Sales promotion 99<br />

APPENDICES 102<br />

1 DETAILED HS CODES 102<br />

2 DETAILED IMPORT STATISTICS 106<br />

3 DETAILED EXPORT STATISTICS 110<br />

4 USEFUL ADDRESSES 113<br />

4.1 Standards organisations 113<br />

4.2 Trade associations 114<br />

4.3 Trade fair organisers 116<br />

4.4 Trade press 118<br />

4.5 Other useful addresses 120<br />

5 LIST OF DEVELOPING COUNTRIES 122<br />

6 LIST OF ACP COUNTRIES 123<br />

7 LIST OF GSP COUNTRIES 124<br />

8 LIST OF PROCESSES WHICH CAUSE HARM TO HEALTH AND SAFETY 125<br />

New CBI publication with new format and contents partly replacing CBI <strong>market</strong> <strong>survey</strong> “Tableware,<br />

Kitchenware and Household Articles of Wood, Metal, Glass and Plastic” (September 1999)<br />

4


REPORT SUMMARY<br />

This <strong>survey</strong> profiles the EU <strong>market</strong> for tableware, kitchenware & other household articles, further<br />

called table- & kitchenware. The emphasis of this <strong>survey</strong> lies on those products which are of<br />

importance to suppliers based in developing countries. The products discussed in this <strong>survey</strong><br />

include: metalware, plasticware, glassware, ceramicware, china & porcelain, cutlery and<br />

woodware. The major national <strong>market</strong>s of France, United Kingdom, Italy, Germany, Spain and<br />

the Netherlands are highlighted. Part A of this <strong>survey</strong> includes statistical <strong>market</strong> information on<br />

consumption, production, trade, trade structure and requirements for access. As an exporter, you<br />

will need this information in order to formulate your own <strong>market</strong> and product strategies. Part B of<br />

this <strong>survey</strong> contains export-<strong>market</strong>ing Guidelines, a practical handbook for exporters engaged, or<br />

wishing to engage, in exporting table- & kitchenware to the European Union.<br />

Consumption<br />

In 2002, the total value of the EU-<strong>market</strong> for table- & kitchenware was estimated to be about<br />

€ 18.3 billion, indicating a growth of 4 percent compared to the previous year. It should be noted<br />

that metalware and woodware are not included in this Figure, because statistics concerning these<br />

<strong>market</strong>s are not compiled by the research agency Euromonitor. France is by far the biggest table-<br />

& kitchenware <strong>market</strong> accounting for 27 percent of the total EU-consumption, followed by the<br />

United Kingdom (19%), Italy (16%), Germany (15%), Spain (7%) and the Netherlands (4%). In<br />

the table below you can find a more detailed overview of the countries discussed.<br />

In recent years, people’s lifestyles, and their attitudes toward their home have changed.<br />

Consumers around the world have turned towards a more casual lifestyle. This development has<br />

had a notable influence on the table- & kitchenware <strong>market</strong>. During the last decade, the <strong>market</strong><br />

has steadily shifted from a formal style, which was the traditional backbone of the industry,<br />

towards a more informal and fashionable style. This development is even noted in the more<br />

formal <strong>market</strong>s like France and Italy. According to sources on the Birmingham Autumn fair,<br />

trends in the table- & kitchenware <strong>market</strong> are expected to change significantly every twelve to<br />

eighteen months.<br />

Overview of EU tradebalance, by country in € millions (consumption figures exclusive metalware<br />

and woodware)<br />

Consumption Consumption Import Export Trade balance<br />

2001 2002 2001 2001 2001<br />

France 4,717 4,884 1,157 1,852 695<br />

United Kingdom 3,286 3,422 1,410 710 -700<br />

Italy 2,741 2,873 695 1,741 1,046<br />

Germany 2,693 2,760 1,828 1,484 -344<br />

Spain 1,166 1,232 553 377 -176<br />

The Netherlands 619 657 624 423 -201<br />

EU-total 17,612 18,342 8,368 8,605 237<br />

Sources: Eurostat & Euromonitor, 2002/<strong>2003</strong><br />

Production<br />

Over the last decade, the table- & kitchenware <strong>market</strong> is become increasingly competitive, mainly<br />

due to the pressure of low-cost imports, principally from Asia and Eastern Europe. A more<br />

expensive labour force and strict regulations in the EU countries have made it difficult for EU<br />

manufacturers to compete. To cope with the increasing competition, several EU manufacturers<br />

established manufacturing bases in Asia, where they could combine their state-of-the-art<br />

technology with a low cost base. In this way, they could maintain an efficient, high-quality<br />

production system at low cost. Another answer to the increasing competition was to achieve<br />

“economics of scale”. Mergers and acquisitions were a popular means to build the scale necessary<br />

to survive. This led to the development of large multinationals, which are present worldwide.<br />

5


Increasing rivalry in other sectors, like the food sector, also contributed to the increasing<br />

competitiveness of the table- & kitchenware <strong>market</strong>. Because of the relatively high margins and<br />

the need to create more “traffic”, retailers, like grocery multiples and discounters, started selling<br />

table- & kitchenware. They mainly sell low-priced products, often private label. This undermined<br />

the position of the EU manufacturers, which were mostly positioned in the premium-end of the<br />

<strong>market</strong>. Many manufacturers searched for ways to differentiate their products, and branding<br />

therefore became more important.<br />

Imports<br />

In 2001, the total import of table- & kitchenware was € 8.4 billion and 2.5 million tons, indicating<br />

a small decrease of 1 percent in terms of value in comparison with 2000. In the years preceding<br />

2001, EU imports showed a healthy development. In the period between 1997 and 2000, the EUimport<br />

of table- & kitchenware grew in terms of value, on average, about 5 percent annually.<br />

Apparently, the stagnation of the economy in 2001 has had its influence on the import of table- &<br />

kitchenware. Germany is the leading importer, accounting for 22 percent of the total imported<br />

value by EU member countries, followed by the United Kingdom (17%), France (14%), Italy<br />

(8%), The Netherlands (8%), and Spain (7%).<br />

The share of table- & kitchenware supplied by EU-countries is declining. In 1992, the EUmember<br />

countries still accounted for 66 percent of all imported table- & kitchenware. In 2001,<br />

this percentage dropped to 52 percent. This decrease can be explained by the increasing<br />

competition from low-priced products deriving from Asian manufacturers, mainly in China, and<br />

the outsourcing trend to Asia of many EU manufacturers.<br />

In 2001, metalware (24%) was the leading import product group, followed by plasticware (24%,<br />

glassware (22%), cutlery (11%), porcelain & china (10%), ceramicware (7%) and woodware<br />

(2%) (See Figure 5.2 for more information). Of the total import, 28 percent derives from<br />

developing countries, where China takes the largest share (see Table 5.1). In the woodware and<br />

cutlery imports, developing countries hold the strongest positions (see Table 5.1). In the<br />

glassware and plasticware imports, the position of developing countries is relatively weak. This is<br />

mainly caused by fact that the Western glassware and plasticware industry is very dominant.<br />

Export<br />

The EU is home to the largest table- & kitchenware exporters in the world, like France, Italy and<br />

Germany. In 2001, the EU-countries together exported € 8.6 billion of table- & kitchenwares.<br />

The largest exporter of table- & kitchenware in the EU was France. France accounted for 22<br />

percent of the total exported value in 2001. Other key exporting countries were Italy (20%),<br />

Germany (17%), Belgium (9%) and the United Kingdom (8%). The main products exported by<br />

EU-countries are Glassware (31% of total EU export), followed by metalware (23%), plasticware<br />

(19%), porcelain & china (11%), ceramicware (8%), cutlery (8%) and woodware (1%).<br />

Metalware became more important for EU exports, explained by the fact that, because of<br />

increasing competition, EU manufacturers turned to the more complex products like metalware.<br />

These products require high-tech production processes (See also Chapter 4).<br />

Trade balance<br />

Of the six countries discussed, France and Italy show a positive trade balance, indicating that<br />

their export is bigger than their import. The United Kingdom together with Germany, show the<br />

largest deficit, the first importing € 700 million more than they export.<br />

6


Opportunities<br />

Because of the increasing competition in the table- & kitchenware <strong>market</strong>, it is increasingly<br />

difficult for manufacturers, especially small-scale ones, to retain a profitable share of the EU<br />

<strong>market</strong>s. Although the developing countries share of EU imports is growing, it should be noted<br />

that this growth is partly due to outsourcing by Western manufacturers on the one hand and a<br />

number of large manufacturers mainly based in China and Thailand, on the other. Chinese exports<br />

make up between 37 and 82 percent of the EU imports deriving from developing countries (See<br />

Table 5.1).<br />

The shift towards more informal and casual table- & kitchenwares has led table- & kitchenwares<br />

becomes a more fashionable <strong>market</strong>, with new trends, designs and colours emerging every twelve<br />

to eighteen months. The trend towards a more fashionable <strong>market</strong> however, has some<br />

implications like, for example, shorter product life-cycles, making fast and accurate distribution<br />

indispensable. This offers chances for small-scale manufacturers to tap into specific <strong>market</strong><br />

developments. Table- & kitchenwares that are new, innovative and have a reasonable amount of<br />

quality, practicality and functionality, will be viable. Items which are highly original in terms of<br />

colour and design are promising, because they allow retailers as well as consumers to<br />

differentiate themselves. Up-to-date information on trends and developments is therefore more<br />

important than ever. Overseas companies that want to tap into the EU <strong>market</strong> have to be aware of<br />

the <strong>market</strong> developments. International and domestic trade fairs, exhibits and visits to shops in the<br />

export country offer valuable information and provide opportunities to build good relationships<br />

with importers and retailers.<br />

This <strong>survey</strong> offers you a framework for deciding whether or not to export to the European Union<br />

and, if you decide to do so, this <strong>survey</strong> provides you with leads and guidelines to assist your<br />

decision-making regarding which products and <strong>market</strong>s to focus on. For information on current<br />

CBI Programmes, training & seminars, and on how to download <strong>market</strong> information and CBI<br />

News Bulletins, please refer to CBI’s internet site www.cbi.nl.<br />

7


INTRODUCTION<br />

This CBI <strong>survey</strong> consists of two parts: EU Market Information and EU Market Access<br />

Requirements (Part A), and Export Marketing Guidelines (Part B).<br />

Market Survey<br />

Part A<br />

EU Market Information and Market Access Requirements<br />

EU Market Information (Chapters 1-8)<br />

Product characteristics<br />

Introduction to the EU <strong>market</strong><br />

Consumption and production<br />

Imports and exports<br />

Trade structure<br />

Prices<br />

EU Market Access Requirements (Chapter<br />

9)<br />

Quality and grading standards<br />

Environmental, social and health & safety<br />

issues<br />

Packaging, marking and labelling<br />

Tariffs and quotas<br />

Part B<br />

Export Marketing Guidelines: Analysis and Strategy<br />

External Analysis (<strong>market</strong> audit)<br />

(Chapter 10)<br />

Opportunities & Threats<br />

Decision<br />

Making<br />

(Chapter 12)<br />

Internal Analysis (company audit)<br />

(Chapter 11)<br />

Strengths & Weaknesses<br />

SWOT and situation analysis:<br />

Target <strong>market</strong>s and segments<br />

Positioning and improving competitiveness<br />

Suitable trade channels and business partners<br />

Other critical conditions and success factors (others than mentioned)<br />

Strategic options & objectives<br />

Export Marketing<br />

(Chapter 13)<br />

Matching products and product range<br />

Building up a trade relationship<br />

Drawing up an offer<br />

Handling the contract<br />

Sales promotion<br />

Chapters 1 to 8 of Part A profile the EU <strong>market</strong> for table- & kitchenware. The emphasis of the<br />

<strong>survey</strong> lies on those products which are of importance to developing country suppliers. The major<br />

national <strong>market</strong>s within the EU for those products are highlighted. Furthermore, statistical <strong>market</strong><br />

information on consumption, production and trade, and information on trade structure and<br />

opportunities for exporters is provided. Chapter 9 subsequently describes the requirements, which<br />

have to be fulfilled in order to get <strong>market</strong> access for the product sector concerned. It is,<br />

furthermore, of vital importance that exporters comply with the requirements of the EU <strong>market</strong> in<br />

terms of product quality, packaging, labelling and social, health & safety and environmental<br />

standards.<br />

8


After having read Part A, it is important for an exporter to analyse target <strong>market</strong>s, sales channels<br />

and potential customers in order to formulate export <strong>market</strong>ing and product strategies. Part B<br />

therefore aims to assist (potential) exporters from developing countries in their export –decisionmaking<br />

process.<br />

After having assessed the external (Chapter 10) and internal environment (Chapter 11), the<br />

(potential) exporter should be able to determine whether there are interesting export <strong>market</strong>s for<br />

his company. In fact, by matching external opportunities and internal capabilities, the exporter<br />

should be able to identify suitable target countries, <strong>market</strong> segments and target product(s) within<br />

these countries, and possible trade channels to export the selected products (Chapter 12).<br />

Chapter 13 subsequently describes <strong>market</strong>ing tools which, can be of assistance in successfully<br />

achieving the identified export objectives.<br />

The <strong>survey</strong> is interesting for both starting exporters as well as well as exporters already engaged<br />

in exporting (to the EU <strong>market</strong>). Part B is especially interesting for more experienced exporters<br />

starting to export to the EU and exporters looking for new EU <strong>market</strong>s, sales channels or<br />

customers. Starting exporters are advised to read this publication together with the CBI’s Export<br />

planner, a guide that shows systematically how to set up export activities.<br />

9


PART A<br />

EU Market Information and Market Access Requirements<br />

10


1 PRODUCT CHARACTERISTICS<br />

This <strong>survey</strong> analyses the <strong>market</strong> for table- & kitchenware and other household articles in the<br />

European Union. Naturally, the category is broad, and includes a wide range of applications from<br />

storage containers to laundry- and waste-baskets. For the purposes of this report, the EU-<strong>market</strong><br />

for table- & kitchenware is segmentated into seven categories, depending on the material it is<br />

made from. The following segments are distinguished: glassware, ceramicware, china &<br />

porcelain, cutlery, plasticware, metalware and woodware. Because of this division, there is some<br />

overlap between ceramicware and china & porcelain and between cutlery and metalware. The<br />

product sectors covered in this report are discussed in paragraph 1.1.<br />

This <strong>survey</strong> does not include small domestic electrical household appliances such as, for example,<br />

coffee makers. Related CBI <strong>survey</strong>s are the reports concerning “Gifts and decorative articles”<br />

and “Stationery items, office and school supplies”. The report concerning “Gifts and decorative<br />

articles” covers candles, artificial flowers and fruits, decorative glassware, basketwork and<br />

suchlike. The “Stationery items, office and school supplies” report covers paper products, writing<br />

and drawing instruments and other office materials.<br />

1.1 Product groups<br />

In this paragraph, we will give a short definition of the seven product groups included in this<br />

<strong>survey</strong>. Most product groups include a number of different products. However, for the ease of use<br />

and the extent of information available, the <strong>survey</strong> does not specify the different products<br />

included in product segments. It is also possible to divide the <strong>market</strong> into different functionalities,<br />

such as cookware and tableware. This, however, causes an overlap in the segmentation above.<br />

Cookware, for example, includes products of materials such as ceramic, glass and metal.<br />

Therefore, we have chosen a segmentation based on the different materials used.<br />

Plasticware<br />

Plasticware consists of storage products like cups, containers, etc. It also includes plastic<br />

tableware like plates, mugs, jars etc. Cleaning equipment such as bowls, buckets and drainers are<br />

also included in this group.<br />

Glassware<br />

The glassware segment can be divided in to three types of products, each having it own specific<br />

purpose. “Drinking glasses” is the first and one of the largest groups. It includes tumblers,<br />

crystalware and stemware. The second group is glass cookware, including glass pots, pans and<br />

heat-resident casseroles. The third group is glass tableware, which includes glass plates, serving<br />

dishes etc.<br />

Ceramicware<br />

Ceramicware includes cookware, such as casseroles and oven-to-tableware. It furthermore<br />

consists of non-china ceramics, like earthenware and stoneware. Other products, such as mugs,<br />

storage jars, jugs and pitchers are also included in this segment.<br />

China & Porcelain<br />

The china & porcelain segment is closely linked with ceramicware. This could mean that there is<br />

some overlap between these segments. China and porcelain is defined as fine semi-transparent or<br />

white earthenware. It includes dinner services and individual items of china tableware.<br />

11


Cutlery<br />

Included in the cutlery category are kitchen utensils such as knives, ladles and scissors. It also<br />

includes table cutlery like knives, forks and spoons for eating and serving. All types of materials<br />

are included, such as metal, silver, silver plate and stainless steel.<br />

Metalware<br />

The metalware segment includes all types of metals such as silver, silver-plate, stainless steel,<br />

hard-anodised steel, aluminium, etc. Metalware can be divided into five main categories:<br />

• Cookware, including pots, pans and pressure cookers;<br />

• Bakeware, including baking trays and sheets;<br />

• Tableware, including plates as well as holloware;<br />

• Gadgets, such as graters, can openers, garlic crushers and pizza wheels;<br />

• Accessories, such as bread bins, cocktail shakers and trivets.<br />

Woodware<br />

The smallest segment consists of wooden table- & kitchenwares, including products such as<br />

chopping boards, bowls, bread bins and spice racks, all made of wood. Because information on<br />

this segment is very limited, it is not possible to give accurate figures concerning the consumption<br />

of these products.<br />

1.2 Statistical products classification<br />

The nomenclature for statistics within the Europe Union does not specify table- & kitchenware as<br />

such. The trading classification systems used were unified by the introduction of a new,<br />

worldwide coding system, introduced on January 1, 1988. This system is called the Harmonized<br />

Commodity Description System (HS) and was developed by the World Customs Organisation<br />

(WCO). The system comprises about 5,000 commodity groups; each identified by a six-digit<br />

code, arranged in a legal and logical structure, and is supported by well-defined rules to achieve<br />

uniform classification. More than 177 countries and economies use the system as a basis for their<br />

customs tariffs and for the collection of international trade statistics. WCO has introduced some<br />

alterations to the HS and these are included in the combined nomenclature as of January 1, 2002.<br />

After the six-digit code, countries are free to use further subheadings. An 8-digit system is used in<br />

the trade data of Eurostat. Most codes, however, end with two zeros, i.e. effectively only using six<br />

digits. Although in some countries ten digits are occasionally used.<br />

Table 1.1 Harmonised System (HS) classification table- & kitchenware<br />

Product group<br />

Heading HS codes<br />

Plasticware 3924<br />

Woodware 4419<br />

Porcelain & China 6911<br />

Ceramicware 6912<br />

Glassware (incl. crystal) 7013<br />

Metalware 7323 / 7417 / 7418 /7615<br />

Cutlery 8211 / 8215<br />

In order to make this <strong>market</strong> <strong>survey</strong>/guide operational, the <strong>survey</strong> has been limited to describing<br />

the above selected product groups. The HS classification given in Table 1.1 differs in some<br />

extend from the classification mentioned in Paragraph 1.1, which puts limitations to in-depth<br />

interpretation of trade figures and of the possible relationships between import and export figures<br />

on the one hand and production and consumption figures on the other hand. For a more detailed<br />

list of product groups, please refer to Appendix 1.<br />

12


2 INTRODUCTION TO THE EU-MARKET<br />

The European Union (EU) is the current name for the former European Community. Since 1<br />

January 1995, the EU consists of 15 member states. Ten new countries will join the European<br />

Union in 2004; these so-called “accession countries” are Poland, Lithuania, Estonia, Latvia,<br />

Hungary, the Czech Republic, Slovenia, Slovakia, Malta and Cyprus. According to Eurostat, the<br />

EU will grow from 15 countries with 379.6 million residents to 25 countries with approximately<br />

450 million residents. Negotiations are in progress with a number of other candidate member<br />

states.<br />

Table 2.1 Population and GDP of selected EU-countries, 2002<br />

Population (<strong>2003</strong>) Age 15-64 GDP (2002) GDP (2002)<br />

(Million) (€ Billion) (Per capita in €)<br />

Germany 83.3 68% 2,206 26,200<br />

United Kingdom 59,8 66% 1,485 25,500<br />

France 59,8 65% 1,556 26,000<br />

Italy 57,7 67% 1,416 25,100<br />

Spain 40,1 68% 836 21,200<br />

The Netherlands 16,0 68% 417 27,200<br />

Sources: Eurostat & World Fact book, 2002/<strong>2003</strong><br />

Within Western Europe – covering 15 EU member countries, Iceland, Liechtenstein, Norway and<br />

Switzerland – more than 20 million enterprises are active. Small and medium-sized enterprises<br />

(SME’s) accounted for the lion’s share. In 2000, the average turnover per enterprise of SME’s<br />

and large enterprises amounted to € 600,000 and € 255 million respectively.<br />

EU Harmonisation<br />

The most important aspect of the process of unification (of<br />

the former EC countries), which affects trade, is the<br />

harmonisation of rules in the EU-countries. As unification<br />

allows free movement of capital, goods, services and<br />

people, internal borders have been removed. Goods<br />

produced or imported into one member state can be moved<br />

around between the other member states without<br />

restriction. A precondition for this free movement is<br />

uniformity in the rules and regulations concerning locally<br />

produced or imported products. Although the European<br />

Table 2.2<br />

Overview 15 EU member<br />

countries 2002<br />

Population 379.6 million<br />

Area 31,443,000 km 2<br />

Density 83 people per km 2<br />

Languages 11 (excl. dialects)<br />

GDP/capita € 21,023<br />

Currencies €, UK£, DKr., SKr.<br />

Exchange € 1 = US$ 1.26<br />

(31/12/<strong>2003</strong>)<br />

Union is already a fact, not all the regulations have yet been harmonised. Work is in progress in<br />

the fields of environmental pollution, health, safety, quality and education. For more information<br />

about harmonisation of the regulations, visit AccessGuide, CBI’s database on non-tariff trade<br />

barriers at www.cbi.nl/accessguide.<br />

Monetary unit: Euro<br />

On 1 January 1999, the <strong>eu</strong>ro became the legal currency within twelve EU member states: Austria,<br />

Belgium, Finland, France, Germany, Greece, Italy, Ireland, Luxembourg, The Netherlands, Spain,<br />

and Portugal. In 2002, circulation of Euro coins and banknotes replaced national currencies in<br />

these countries. Denmark, United Kingdom and Sweden have decided not to participate in the<br />

Euro.<br />

The most recent Eurostat trade statistics quoted in this <strong>survey</strong> are from the year 2001. In this<br />

<strong>market</strong> <strong>survey</strong>, the € is the basic currency unit used to indicate value.<br />

13


The information used in this <strong>market</strong> <strong>survey</strong> was obtained from a variety of sources. The lion’s<br />

share of information derives from research agencies, such as Euromonitor, Eurostat, Mintel and<br />

Key Note. In addition, other published information has been used, to broaden the view of the<br />

<strong>market</strong>. Other methods used to collect information were trade interviews, store checks and desk<br />

research. Because of the variety of sources used, extreme care must be taken in the qualitative use<br />

and interpretation of the quantitative data in this <strong>survey</strong>.<br />

The collection of data regarding trade flows has become more difficult since the establishment of<br />

the single European <strong>market</strong> on 1 January 1993. Until that date, trade was registered by means of<br />

compulsory customs procedures at border crossings but, since the removal of the intra-EU<br />

borders, this is no longer the case. Statistical bodies like Eurostat cannot now depend on the<br />

automatic generation of trade figures. In the case of intra-EU trade, statistical reporting is only<br />

compulsory for exporting and importing firms whose trade exceeds a certain annual value. The<br />

threshold varies considerably from country to country, but it is typically about € 100,000.<br />

Therefore, although figures for trade between the EU and the rest of the world are accurately<br />

represented, trade within the EU is generally underestimated.<br />

For more detailed information on <strong>market</strong> research, reference is made to CBI’s Export Planner<br />

(2000).<br />

This <strong>survey</strong> profiles the EU <strong>market</strong> for table- & kitchenware, in which six selected <strong>market</strong>s within<br />

the EU are highlighted. The selection is based on a quantitative and qualitative comparison of<br />

consumption, production and imports/exports of the EU member countries, as will be further<br />

explained in the following chapters of this <strong>survey</strong>. The countries selected for this <strong>survey</strong> are<br />

Germany, United Kingdom, France, Italy, The Netherlands and Spain, which are the largest<br />

consuming countries for table- & kitchenware in the EU. In 2002, these countries together<br />

accounted for nearly 86% of total EU consumption.<br />

14


3 CONSUMPTION<br />

This chapter presents a general overview of the <strong>market</strong> for table- & kitchenware in the European<br />

Union, highlighting the countries and products specified in chapter 1 and 2. The information used<br />

is largely based on the reports of Euromonitor and Mintel. Furthermore, various articles published<br />

by different institutes are used. The information from these sources can, however, include<br />

consumption data of products that are beyond the extent of this <strong>survey</strong>, whilst they exclude<br />

consumption data of articles that may be relevant. Therefore, the information in chapter is not<br />

unequivocal.<br />

It must be noted that detailed, up-to-date statistics on the segments woodware and metalware are<br />

not available. However, because of the importance of the metalware segment, we have used<br />

statistics for the year 1999, in order to present some insight in this segment and we have<br />

extrapolated the figures for consumption rates of this product segment. This extrapolation only<br />

provides an indication of the metalware <strong>market</strong>.<br />

3.1 Market size<br />

The EU retail <strong>market</strong> for table- & kitchenware is mature and stable. In 2002, the total value of the<br />

EU <strong>market</strong> for table- & kitchenware was estimated to be about € 18.3 billion, indicating a growth<br />

of 4 percent compared to the previous year. It should be noted that metalware and woodware are<br />

not included in this figure. In the last decade, the <strong>market</strong> has steadily shifted from formal table- &<br />

kitchenware to a more informal and casual style. Informal and practical products are becoming<br />

increasingly important, even in countries with a profound formal tradition like Italy and France.<br />

This trend is reflected in the popularity of plasticware, which was one of the star performers in<br />

the period 1998 to 2002. In this period, the EU consumption of plasticwares grew by almost 25<br />

percent.<br />

Figure 3.1<br />

Table- & kitchenware <strong>market</strong>: relative attractiveness (excl. metalware and woodware)<br />

based on € value<br />

8%<br />

% growth 2002<br />

7%<br />

6%<br />

5%<br />

4%<br />

3%<br />

Ireland<br />

Netherlands<br />

Denmark<br />

Sweden<br />

France Belgium<br />

Austria<br />

Greece<br />

Spain<br />

Finland<br />

Italy<br />

Portugal<br />

United Kingdom<br />

2%<br />

Germany<br />

1%<br />

0%<br />

-5% 0% 5% 10% 15% 20% 25% 30% 35% 40%<br />

% growth 1998 - 2002<br />

Source: Euromonitor, <strong>2003</strong><br />

15


France is by far the biggest table- & kitchenware <strong>market</strong>, accounting for 27 percent of the total<br />

EU consumption. At a considerable distance, we find the United Kingdom (19%) and Italy<br />

(16%), which pushed Germany out of the top three. As can be seen in Figure 3.1, the United<br />

Kingdom and Portugal represent the fastest growth in the review period (1998 to 2002). Both<br />

grew by approximately 30 percent (horizontal axis) during that period. Solely looking at 2002,<br />

Greece was the star performer, as the Greek <strong>market</strong> grew by 7 percent that year (vertical axis).<br />

The German <strong>market</strong>, which is located on the left-bottom side of Figure 3.1, remained rather<br />

stable, the <strong>market</strong> only growing by 2 percent in 2002. The countries located in the top-right<br />

corner of Figure 3.1 achieved the most growth over the review period.<br />

With a share of 32 percent, the plasticware <strong>market</strong> is the biggest table- & kitchenware <strong>market</strong>. In<br />

2002, the plasticware <strong>market</strong> represented a value of € 5.9 billion.<br />

Figure 3.2<br />

Table- & kitchenware products shares<br />

in EU, 2002, % of total value<br />

Figure 3.3<br />

Table- & kitchenware consumption by<br />

EU-member countries, 2002, % of EUtotal<br />

China &<br />

Porcelain<br />

Cutlery<br />

11.0%<br />

13.9%<br />

China &<br />

Porcelain,<br />

Ceramicware 13.0%<br />

16.8%<br />

Ceramicware<br />

, 16.8%<br />

Cutlery,<br />

11.0%<br />

Glassware<br />

27.2%<br />

Plasticware<br />

31.9%<br />

Plasticware,<br />

31.9%<br />

Netherlands,<br />

3.6%<br />

Spain, 6.7%<br />

Other EUmember<br />

countries,<br />

13.7%<br />

Germany,<br />

15.0%<br />

Italy, 15.7%<br />

France,<br />

26.6%<br />

United<br />

Kingdom,<br />

18.7%<br />

Glassware,<br />

27.2%<br />

Source: Euromonitor ‘Consumer Europe’, <strong>2003</strong>/04<br />

The French table- & kitchenware <strong>market</strong> is by far the biggest in the EU, totalling to almost € 4.9<br />

billion (excl. metalware and woodware) in 2002. That year the <strong>market</strong> grew by 3.5 percent.<br />

According to Euromonitor, France’s high ranking is due to the importance of long social meals,<br />

combined with a significant national cuisine, meaning that the French table- & kitchenware<br />

<strong>market</strong> is more formal than in other countries. This is reflected in the popularity of formal<br />

dinnerware, like glassware, china and porcelain and cutlery. However, as in the rest of the EU,<br />

the French <strong>market</strong> is steadily shifting to less formal products, such as plasticware, which are<br />

becoming increasingly important.<br />

Plasticware, the biggest segment in France amounted to € 1.7 billion in 2002, representing a 35<br />

percent share of the total French table- & kitchenware <strong>market</strong>. France’s second table- &<br />

kitchenware segment in size, glassware, continued to grow, after being down in 1999 and 2000.<br />

Ceramicware, china and porcelain together accounted for 25 percent of the table- & kitchenware<br />

consumption in 2002.<br />

Cutlery was the star performer in France’s table- & kitchenware <strong>market</strong>. Since 1998, the <strong>market</strong><br />

has grown by more than 20 percent and amounted to a value of € 757 million. The French<br />

metalware <strong>market</strong> is extrapolated at an amount of € 944 million in 2002.<br />

16


Figure 3.4<br />

Value of consumption table- & kitchenware segments per country, 2002, in € million<br />

Netherlands<br />

65<br />

86<br />

126<br />

137<br />

243<br />

Spain<br />

124<br />

180<br />

156<br />

419<br />

352<br />

Germany<br />

336<br />

587<br />

476<br />

517<br />

844<br />

Italy<br />

251<br />

247<br />

429<br />

628<br />

1,318<br />

United Kingdom<br />

172<br />

347<br />

642<br />

572<br />

1,689<br />

France<br />

540<br />

654<br />

757<br />

1,233<br />

1,700<br />

€ - € 200 € 400 € 600 € 800 €<br />

1,000<br />

€<br />

1,200<br />

€<br />

1,400<br />

€<br />

1,600<br />

Plasticware Glassware Ceramicware China & Porcelain Cutlery<br />

€<br />

1,800<br />

Source: Euromonitor, <strong>2003</strong><br />

United Kingdom<br />

The British table- & kitchenware <strong>market</strong> has shown an enormous growth. In the five-year period<br />

between 1998 and 2002, the <strong>market</strong> grew by almost 30 percent. This, however, was mainly<br />

caused by stunning growth in the late nineties. In 2002, the British <strong>market</strong> grew somewhat over 4<br />

percent, to a value of € 3.4 billion The British table- & kitchenware <strong>market</strong> is characterised by a<br />

less formal style than the French or Italian <strong>market</strong>s. The British seem to prefer practicality,<br />

durability and design rather than formal table- & kitchenwares. This is reflected in the popularity<br />

of plasticwares. In 2002, plasticwares accounted for almost 50 percent of the table- &<br />

kitchenware consumption in the UK.<br />

In 2002, the UK’s second segment, ceramicware showed a low growth for the second year in a<br />

row, growing only by 2 percent, to € 642 million. British glassware consumption grew by more<br />

than 4 percent in 2002. In comparison with the EU average, the British glassware <strong>market</strong> is<br />

relatively small in size, as the <strong>market</strong> represented a value of around € 572 million. British<br />

spending on cutlery is relatively small in comparison with other EU countries. In 2002, cutlery<br />

made up only 5 percent of the British table- & kitchenware sales. Despite this small size, cutlery<br />

is one of the best-growing product groups in the British tableware- & kitchenware <strong>market</strong>.<br />

Extrapolations indicate that British metalware consumption is the highest in the EU, amounting to<br />

approximately € 1 billion in 2002, on top of the € 3.4 billion for the other segments.<br />

17


Italy<br />

Italy is the third table- & kitchenware <strong>market</strong> in the EU, representing a value of almost € 2.9<br />

billion. The Italian table- & kitchenware <strong>market</strong>, like the British one, shows a stunning<br />

development over the reviewed period between 1998 and 2002. In that period, the <strong>market</strong> grew<br />

by almost 28 percent. Italy’s high ranking is due to the distinct maturity of Italian table- &<br />

kitchenware <strong>market</strong>. The Italian <strong>market</strong>, like the French <strong>market</strong>, is characterised by higher-priced<br />

formal items. Formal items such as glassware and china are very popular, as can be seen in Figure<br />

3.4. A long tradition of producing designed pieces of table- & kitchenware make Italy an<br />

important table- & kitchenware <strong>market</strong>.<br />

Glassware is by far the most popular product group in Italy. Because of this popularity, the Italian<br />

glassware <strong>market</strong> is the EU’s largest national glassware <strong>market</strong> representing a value of € 1.3<br />

billion in 2002. Between 1998 and 2002, the glassware <strong>market</strong> grew on average 8 percent per<br />

annum. The second segment, ceramicware, grew by 3.5 percent, to a value of € 628 million. In<br />

comparison with the EU average, the Italian plasticware <strong>market</strong> is relatively small. Despite this<br />

small size, it showed a healthy growth in the reviewed period.<br />

Italy is the EU’s second cutlery <strong>market</strong> after France. In 2002, the Italian cutlery <strong>market</strong> showed a<br />

growth for the third year in a row, rising to a value of € 251 million. China and porcelain, Italy’s<br />

smallest table- & kitchenware <strong>market</strong>, showed the highest growth of all the segments reviewed. In<br />

2002, the <strong>market</strong> grew by more than 5 percent, to € 246 million. The Italian metalware <strong>market</strong> is<br />

estimated at a value of € 274 million in 2002.<br />

Germany<br />

The German table- & kitchenware <strong>market</strong> is a major <strong>market</strong>, mainly due to the size of the German<br />

population. According to Euromonitor, the German table- & kitchenware grew in 2002 for the<br />

second year in a row, after being down between 1998 and 2000. In 2002, the <strong>market</strong> grew by<br />

more than 2.5 percent, to almost € 2.8 billion. Over a longer period of time, the German <strong>market</strong><br />

presents the lowest growth of the entire EU, as can be seen in Figure 3.1. Over the review period,<br />

between 1998 and 2002, the <strong>market</strong> grew by less than 2 percent. Like the British, the Germans<br />

consider functionality and price to be more important than decorative aspects of products,<br />

according to Euromonitor. This, together with the informality of the <strong>market</strong> partly explains the<br />

relative low expenditure of the Germans on table- & kitchenwares.<br />

Glassware, the biggest table- & kitchenware segment in Germany, continued its recovery, which<br />

started a year earlier, and in 2002 the <strong>market</strong> reached a value of € 844 million. China & porcelain<br />

is very popular in Germany. The German china & porcelain segment is the largest in the EU. In<br />

2002, this <strong>market</strong> rose to a value of more than € 587 million, putting Germany even ahead of<br />

France.<br />

As in Italy, plasticwares are less popular in Germany. Plasticwares only account for 19 percent of<br />

the total tableware- & kitchenware sales whereas, in the entire EU, plasticware accounts for a<br />

share of 32 percent. Despite its relatively small size, the German plasticware <strong>market</strong> showed a<br />

healthy growth throughout the reviewed period. Cutlery is the smallest table- & kitchenware<br />

segment in Germany, representing a value of € 336 million in 2002. The German metalware<br />

<strong>market</strong> is estimated at a value of approximately € 712 million in 2002.<br />

Spain<br />

The Spanish table- & kitchenware <strong>market</strong> showed a healthy growth in both 2001 and 2002. In<br />

2002, the Spanish table- & kitchenware grew by 5.5 percent, to a value of € 1.2 billion. As in<br />

France and Italy, dining plays an important role in Spanish social life. With a significant national<br />

cuisine, the Spanish table- & kitchenware <strong>market</strong> is more formal in than many other countries in<br />

Western Europe. However, unlike France and Italy, Spain has a no tradition in manufacturing<br />

table- & kitchenware and, perhaps as a result, premium items are less important. According to<br />

Euromonitor, Spanish people favour functionality and durability.<br />

18


Glassware is the largest table- & kitchenware segment in Spain, representing 34 percent of the<br />

total <strong>market</strong>. Spain’s second largest segment is plasticware. This segment showed a healthy<br />

development in 2002, growing by 6 percent in comparison with the preceding year, to almost €<br />

353 million. As in 2001, the Spanish china & porcelain grew by more than 6 percent in 2002, to a<br />

value of € 180 million that year.<br />

In the reviewed period, the Spanish ceramicware <strong>market</strong> showed a healthy growth. Nevertheless,<br />

it remains a relatively small segment in comparison with the EU average. Spain’s smallest table-<br />

& kitchenware segment, cutlery, made up about 10 percent of the Spanish <strong>market</strong>. In 2002, the<br />

<strong>market</strong> grew by 5 percent, to a value of € 124 million. The Spanish metalware <strong>market</strong> is estimated<br />

at a value of € 148 million in 2002.<br />

The Netherlands<br />

According to Euromonitor, the total Dutch table- & kitchenware <strong>market</strong> was worth € 657 million<br />

in 2002. Of the <strong>market</strong>s discussed in this <strong>survey</strong>, the Netherlands showed the largest growth in<br />

2002. Like the UK <strong>market</strong>, the Dutch <strong>market</strong> is characterised by the emphasis on practicality and<br />

durability, rather than formality. This is reflected in the importance of plasticwares. The<br />

plasticware <strong>market</strong> grew by 6 percent, amounting to € 243 million. Glassware, the second<br />

segment in size, is up for the second year in row, after being broadly stable between 1998 and<br />

2000. In 2002, this <strong>market</strong> also grew by 6 percent, to a value of € 137 million.<br />

China & porcelain represent 15 percent of the table- & kitchenware <strong>market</strong> and like the glassware<br />

<strong>market</strong> showed a healthy growth in 2001 and 2002. The same applies to the ceramicware. After<br />

being at a standstill between 1997 and 2000, the <strong>market</strong> grew in 2002 by 6 percent, to a value of €<br />

126 million. The smallest segment, cutlery, grew by 6 percent in 2002, to a value of € 65 million.<br />

Metalware is relatively important in the Netherlands, mainly due to the importance of cookware.<br />

In 2002, the Dutch metalware <strong>market</strong> is extrapolated at a value € 215 million.<br />

3.2 Market segmentation<br />

In this paragraph, we will highlight developments in the different product groups identified in<br />

chapter 1. We will also deal with the differences between the EU countries highlighted in this<br />

<strong>survey</strong>. Furthermore statistical information concerning the consumption per capita is given. The<br />

last part of this paragraph gives a segmentation by different users who can be distinguished in the<br />

table- & kitchenware <strong>market</strong>.<br />

Figure 3.5 Consumer expenditures on<br />

3.2.1 Market segmentation by product<br />

plasticware (per year in € per capita),<br />

in the EU, 1998-2002<br />

Plasticware<br />

Plasticware is the biggest table- &<br />

kitchenware product group in the EU,<br />

amounting to a value of € 5.9 billion in 2002.<br />

In the review period, it also represented the<br />

fastest growth. Between 1998 and 2002, the<br />

EU plasticware <strong>market</strong> grew by almost 25<br />

percent. This success is due to the advantages<br />

of plasticwares, which are cheap, lightweight,<br />

practical and fashionable. The adaptability,<br />

modern design and colours of plasticwares<br />

also attract consumers.<br />

France and the United Kingdom are the two<br />

major plasticware <strong>market</strong>s in the EU, together<br />

accounting for 58 percent of the total<br />

consumption. Figure 3.5, consumer<br />

35<br />

30<br />

25<br />

20<br />

15<br />

10<br />

5<br />

0<br />

28.64 28.34<br />

France<br />

United<br />

Kingdom<br />

15.08<br />

Netherlands<br />

Spain<br />

8.92<br />

Italy<br />

7.41<br />

1998<br />

2000<br />

2002<br />

Germany<br />

6.32<br />

Source: Euromonitor, <strong>2003</strong><br />

Source: Euromonitor, <strong>2003</strong><br />

19


expenditure per capita, reflects the importance of these two countries. As can also be seen, the<br />

southern European countries consume relatively less plasticware than the Northern European<br />

countries.<br />

Benefiting from the advantages of being lightweight and relatively cheap, plasticwares were also<br />

fashionable and suited the trend towards matching kitchen accessories. Attracted by the bright<br />

colours and modern design of plastic products, consumers often made impulse purchases, which<br />

is why a continuous launching of new ranges was essential. In the reviewed period, plasticware<br />

developed a fashionable image.<br />

According to Euromonitor, storage containers account for the largest product category in terms of<br />

value. This is due to the high value per piece and to the fact that manufacturers continue to<br />

develop new uses for their products all the time. Plastic bins and hermetically sealed food<br />

containers are the next most important products. Bin designs have developed from plain models<br />

to pedal bins and bins with flip lids and are available in many sizes and colours. This has resulted<br />

in an increase of use throughout the house, according to Euromonitor.<br />

Food storage containers are typical impulse purchases and, therefore, new models are launched<br />

frequently. The consumer expects that these containers can go from the freezer directly into the<br />

microwave oven for heating. Moreover, they need to be dishwasher-proof, and space saving is<br />

also important in storage. Therefore, manufacturers are developing new products, which are<br />

multi-functional.<br />

Glassware<br />

In 2002, the EU consumption of glassware<br />

represented a value of almost € 5 billion.<br />

Glassware consists of everyday glassware,<br />

includes drinking glasses, glass cookware and<br />

tableware. France, Italy and Germany are the<br />

most important <strong>market</strong>s in size (See Figure<br />

3.4). In per capita terms, Italy and France are<br />

the top glassware buyers in the EU. In 2002,<br />

each Italian spent € 22.80 on glassware. The<br />

German per capita expenditure dropped by 5<br />

percent in the reviewed period.<br />

Figure 3.6<br />

25<br />

20<br />

15<br />

10<br />

22.78<br />

Consumer expenditures on<br />

glassware (per year in € per capita),<br />

in the EU, 1998-2002<br />

20.78<br />

10.59 10.31<br />

9.60<br />

1998<br />

2000<br />

2002<br />

8.54<br />

Drinking glasses can be divided into two<br />

different <strong>market</strong>s: that of everyday glasses for<br />

which the main purchasing criterion is price,<br />

and that of traditional glassware, which is<br />

considered as an investment. The latter is of<br />

high quality, usually purchased as a gift<br />

(especially for weddings) and is a declining<br />

<strong>market</strong>.<br />

5<br />

0<br />

Italy<br />

France<br />

Spain<br />

Germany<br />

United<br />

Kingdom<br />

Netherlands<br />

Source: Euromonitor, <strong>2003</strong><br />

According to Euromonitor, drinking glasses account for the biggest share of the glassware <strong>market</strong><br />

in many of the EU-countries, though there are profound differences between them. In the United<br />

Kingdom, drinkware accounted for two thirds of the glassware <strong>market</strong>. In France, it accounted for<br />

54 percent of the glassware <strong>market</strong>, whereas in Germany, drinking glass only accounts for a<br />

quarter of the total glassware consumption.<br />

In recent years, people’s lifestyles, and their attitudes toward their home have changed.<br />

Consumers in the EU have turned towards a more casual lifestyle. Subsequently, changes in<br />

purchasing habits and consumer habits have also influenced the glassware <strong>market</strong>. Many<br />

consumers nowadays consider glassware a replaceable fashion product. Manufacturers and<br />

20


etailers are aggressively designing new patterns to keep up with this trend. Moreover, the <strong>market</strong><br />

for this type of glass is strongly affected by promotions from companies in the food and wine<br />

sector, who give glasses away free when consumers buy their products. This <strong>market</strong> segment is<br />

growing, because it is influenced by fashion.<br />

Ceramicware<br />

The EU ceramicware segment represented a<br />

value of more than € 3 billion in 2002. France<br />

and the United Kingdom are the leading<br />

consumers of ceramicware. Like glassware<br />

consumption, France’s and Italy’s per capita<br />

expenditure is the highest in the EU. French<br />

consumption recovered slightly in 2002, but it<br />

is still slightly down compared with 1998.<br />

Product designs of ceramic articles tend to be<br />

modern, with a broad spectrum of shapes,<br />

sizes, colours, materials, and innovative<br />

features to meet different <strong>market</strong> segments.<br />

In the EU, due to the increase in the number of<br />

working couples, consumers are inclined to<br />

buy timesaving, easy-to-handle kitchenware.<br />

Figure 3.7<br />

12<br />

10<br />

8<br />

6<br />

4<br />

2<br />

0<br />

Consumer expenditures on<br />

ceramicware (per year in € per<br />

capita), in the EU, 1998-2002<br />

11.02 10.85 10.77<br />

7.83<br />

France<br />

Italy<br />

United<br />

Kingdom<br />

Netherlands<br />

Germany<br />

5.81<br />

1998<br />

2000<br />

2002<br />

Spain<br />

3.96<br />

Source: Euromonitor, <strong>2003</strong><br />

Products that emphasise quick cleaning as well as simplifying the cooking process will be<br />

appealing to consumers. The trend in the ceramic table- & kitchenware <strong>market</strong> is toward<br />

practical, functional, and stylish. White is the dominant colour for ceramics, according to the<br />

Ambiente. It replaces natural shades, particularly in combinations with green, although orange,<br />

lilac/berry shades and ice-blue are strongly represented too. Designs are becoming straighter,<br />

extending as far as rectangular vases and bowls, with voluminous individual pieces also in<br />

fashion in this segment.<br />

China & Porcelain<br />

In 2002, The value of the EU china &<br />

porcelain segment totalled € 2.4 billion. The<br />

leading china & porcelain <strong>market</strong> in the EU is<br />

Germany, followed by France and the United<br />

Kingdom. In per capita terms, the French are<br />

the top china & porcelain buyers in the EU. As<br />

can be seen in the Figure 3.8, the per capita<br />

expenditure of the United Kingdom and Italy<br />

has risen considerably during the reviewed<br />

period. Between 1998 and 2002, their per<br />

capita consumption increased by 28 and 87<br />

percent respectively.<br />

Convenience has become one of the essential<br />

features for the modern consumer. Therefore,<br />

it is essential that manufacturers try to come<br />

up with practical solutions in their products.<br />

Products with rounded corners (easier to<br />

wash) and fewer sharp edges are important for<br />

use in the dishwasher. Moreover, consumers<br />

expect the products to be microwave-proof.<br />

Figure 3.8<br />

10<br />

9<br />

8<br />

7<br />

6<br />

5<br />

4<br />

3<br />

2<br />

1<br />

0<br />

France<br />

9.11<br />

Consumer expenditures on China &<br />

Porcelain (per year in € per capita),<br />

in the EU, 1998-2002<br />

Germany<br />

7.18<br />

5.82<br />

United<br />

Kingdom<br />

Netherlands<br />

5.32<br />

Italy<br />

1998<br />

2000<br />

2002<br />

4.26 4.55<br />

Spain<br />

Source: Euromonitor, <strong>2003</strong><br />

21


White with minimalist lines remains the distinctive feature of porcelain, according the Ambiente.<br />

At the moment, shades of green, lilac-pink and yellow are the most important colours. Luxury is<br />

also becoming more important in this segment.<br />

Cutlery<br />

The EU-cutlery <strong>market</strong> represented a value of over € 2 billion in 2002. France is the EU’s leading<br />

cutlery consumer. In 2002, France accounted for 37 percent of the total cutlery sales in the EU. At<br />

a considerable distance, we find Germany and Italy. Looking at the per capita expenditure, the<br />

French are by far the biggest consumers of cutlery. In 2002, they spent about € 12.76 per capita,<br />

almost three times as much as the Italians.<br />

There are basically two <strong>market</strong>s for cutlery, that of classic high quality cutlery, mostly sold in<br />

sets, and casual cutlery for everyday use, generally sold by piece. Everyday cutlery can itself be<br />

divided into two segments: conventional and fashion-oriented cutlery. Everyday cutlery, in<br />

general, should be inexpensive whereas fashion-oriented pieces can command somewhat higher<br />

prices. A good example of this is cutlery with fashionable coloured handles, which has been<br />

popular for several years following a trend towards matching kitchenware. This type of cutlery,<br />

although also sold by piece, is sometimes presented in simple sets of four or six on a stand. This<br />

type of novelty provides manufacturers and retailers with added-value in a generally low-value<br />

sector.<br />

High-quality cutlery can also be divided into<br />

two segments: stainless steel plated cutlery,<br />

and cutlery made of precious metals, mainly<br />

silver. The top end of the <strong>market</strong> is completely<br />

dominated by famous brands. This type of<br />

cutlery is purchased once in a lifetime and the<br />

purchases are seen as an investment. This<br />

segment however is shrinking, mainly because<br />

of reasonable quality and low prices of the<br />

first segment.<br />

A key development is the popularity of<br />

kitchen knives, which have become<br />

professional-style products. Knife-sets have<br />

become a popular item in the kitchen today.<br />

According to the Ambiente, linear and<br />

functional designs dominate the cutlery<br />

<strong>market</strong>, with stainless steel being the material<br />

of choice. New materials, like titanium are<br />

starting to be used to enhance the appeal.<br />

Figure 3.9<br />

14<br />

12<br />

10<br />

8<br />

6<br />

4<br />

2<br />

0<br />

12.76<br />

France<br />

Consumer expenditures on Cutlery<br />

(per year in € per capita), in the EU,<br />

1998-2002<br />

Italy<br />

4.34 4.1 4.05<br />

Germany<br />

Netherlands<br />

Spain<br />

1998<br />

2000<br />

2002<br />

3.15 2.89<br />

United<br />

Kingdom<br />

Source: Euromonitor, <strong>2003</strong><br />

Metalware<br />

There are no figures available concerning the consumption of metalware in the EU. In the<br />

previous paragraph, we have given some extrapolation concerning the <strong>market</strong> size in the different<br />

countries in this <strong>survey</strong>. The extrapolations indicate that North European countries (United<br />

Kingdom, Germany and the Netherlands) consume relatively more metalwares. This can be<br />

explained by the fact that metal pots and pans are the main food preparing items in these<br />

countries, whereas in Italy and Spain, people use more ceramic and glass cook- and ovenware.<br />

According to Euromonitor, the metalware <strong>market</strong> can be divided into to two segments. Firstly, it<br />

consists of metal products which are more table-orientated, like for example bread-baskets. The<br />

second segment consists of metal products which are used in the preparation of food, like cook-,<br />

oven- and bakeware. This segment accounted for more than three-quarters of the <strong>market</strong> for<br />

metallic table- & kitchenware. The way people prepare their food largely determines the<br />

22


popularity of certain products. Cooking methods using ceramic and induction hobs have<br />

increased at the expense of the traditional gas cooker. These new methods have triggered the<br />

demand for specially adapted pots and pans. In the case of ceramic hobs, which consist of a vitro<br />

ceramic surface heated by radiant or halogenic rings, a very strong heat is given off very quickly<br />

and this can damage ordinary pans. Induction hobs, however, necessitate the use of saucepans<br />

with high magnetic properties.<br />

Hence the increase in demand for pans resistant to all types of heat, and pans specially suited to<br />

vitro-ceramic or induction hobs. The metalware <strong>market</strong> is shifting towards more functional<br />

products which are for all new types of kitchen appliances (such as ceramic and induction hobs<br />

and dishwashers).<br />

In Table 3.1, the penetration of different cooking appliances is reflected. As can be seen,<br />

microwave penetration is very high in most EU-countries. Because of the success of the<br />

microwave, metallic ovenware has lost <strong>market</strong> share to ceramic and glass products which are<br />

better adapted to microwave cooking. The traditional metal kettle is rapidly being replaced by<br />

electric kettles. The advantages of the electric kettle compared to the old kettle are that it is faster,<br />

the quantity of water can be more precisely measured and it can be used in any place where you<br />

have an electric socket.<br />

Table 3.1 Household penetration of cooking appliances by country, 2002<br />

Freestanding Built-inhobs<br />

Ovens Microwaves Fridge Fridge Freezer<br />

Cookers<br />

Freezer<br />

France 50% 38% 36% 74% 96% 52% 55%<br />

Italy 75% 24% 25% 24% 81% 24% 34%<br />

Germany 58% 23% 15% 65% 20% 79% 55%<br />

United Kingdom 60% 40% 40% 77% 60% 40% 45%<br />

Spain 25% 77% 91% 56% 38% 48% 13%<br />

The Netherlands 29% 48% 77% 66% 82% 8% 65%<br />

Source: Euromonitor, 2002<br />

According to Mintel, the cookware <strong>market</strong> is polarised between high-priced premium products<br />

and budget-priced products, mainly imported from low-wage countries in Asia. The main<br />

purchase criteria are reliability, durability and versatility. Manufacturers of cookware apply the<br />

latest technology, focussing on formulating the proper metal chemistry and creating products<br />

which suit consumers’ every demand for stylish products, comfortable handles, etc.<br />

Woodware<br />

In the mid nineties, there seemed to be a growing interest in woodware, which was caused by the<br />

increasing demand for products with a natural look. In the EU, there is a tendency to replace<br />

plastics with wooden products, because of the luxurious and classical look which wood gives to<br />

products. Therefore, wooden table- & kitchenware is often positioned as a fashionable and<br />

decorative gift item. Despite this development, woodware only accounts for approximately 1 to 2<br />

percent of the total table- & kitchenware consumption, according to Euromonitor.<br />

Because of the small size of the <strong>market</strong>, the wooden table- & kitchenwares remains a niche<br />

segment. No major manufacturer is experimenting with wood. Therefore, most products sold in<br />

this segment are private labels. Retailers like Ikea are buying these products from small-scale<br />

craftsmen.<br />

23


3.2.2 Market segmentation by user<br />

In recent years, changes in lifestyle and trends have been occurring faster. Consumer behaviour<br />

has become more impulsive, especially in northern EU countries. Fashion is also an important<br />

indicator for trends in the table- & kitchenware <strong>market</strong>. Segmentation of consumers is becoming<br />

more important. Different styles and designs satisfy different groups. Below we present the major<br />

consumer groups in the table- & kitchenware sector.<br />

• Singles (young) This group consists of students and single-person households. The<br />

people in this group usually live alone; they spend more time out of their homes. They<br />

mostly perceive cooking as a chore. They mainly purchase low-priced table- &<br />

kitchenware which is functional and easy to use.<br />

• Couples (childless) This group consist of couples, where both partners are employed,<br />

resulting in higher spending power. They are increasingly sensitive to fashion and are<br />

more responsive to new and modern design trends. People in this group are important<br />

customers for premium designer table- & kitchenware.<br />

• Couples (parents) This group consist of people with young children. They are<br />

sensitive to fashion, but not as much as childless couples. The parents prefer convenience<br />

and dishwasher-safe, durable products to high-priced elegant items, which may get<br />

broken.<br />

• Older couples (middle-aged) This group consist of somewhat older people (baby<br />

boomers). In most cases, the children have left the house. These middle-aged people<br />

spend most of their leisure time at home, socialising with friends and family. They are<br />

gradually replacing and upgrading their current table- & kitchenware. The people in this<br />

group have high disposable incomes. Value-for-money and functionality are important<br />

purchase criteria’s in this group. They are less sensitive to fashion and mainly purchase<br />

the more traditional table- & kitchenware products.<br />

• Seniors (65+) This is the fastest growing consumer group in the EU-countries. It<br />

consists of retired people. In most cases these seniors move towards smaller houses.<br />

Value-for-money and functionality are important purchase criteria. These people mostly<br />

fancy traditional table- & kitchenware, which they have collected throughout their lives.<br />

• Hobbyists This growing group consists of people all ages. Because of the shift<br />

towards the convenience- and ready-made meals, consumers are freed from the laborious<br />

chore of creating family meals on a daily basis. Because of this development, gourmet<br />

cooking has become an occasional hobby for many people. They often purchase highend,<br />

expensive professional products.<br />

Catering industry<br />

According the Committee of the European Glass Industry, 28% of all glassware is sold to the<br />

catering industry (restaurants, hotels, bars). This shows how important the catering industry is to<br />

the entire table- & kitchenware sector.<br />

Because it uses table- & kitchenware extensively, the catering sector sets high demands on the<br />

quality of the products. Products need to be durable, heat-resistant, chip-resistant, microwaveand<br />

dishwasher-proof and have high hygiene standards. The more traditional table- &<br />

kitchenwares are particularly popular amongst the caterers.<br />

24


3.3 Consumption patterns and trends<br />

The demand for table- & kitchenware is influenced by a number of trends. In the macroenvironmental<br />

analyses in this paragraph, we will discuss these trends. You should, however, take<br />

into account that different developments discussed in this paragraph can relate to each other. For<br />

example, the social trend, “individualization” is closely related to the demographic trend towards<br />

smaller households. It is, therefore, important to determine to what extent these developments<br />

apply to your company and the product range you offer. This paragraph reviews the following<br />

trends:<br />

• Demographic trends<br />

• Social & cultural trends<br />

• Technical trends<br />

• Economic trends<br />

3.3.1 Demographic trends<br />

Germany with 83 million inhabitants is by far the largest country in the EU, followed by the UK<br />

(60 million), France (60 million) and Italy (58 million). Spain and the Netherlands are the two<br />

smaller countries discussed in this <strong>survey</strong> accounting for 40 and 16 million inhabitants<br />

respectively. According to Eurostat, the EU has approximately 379.6 residents. This number<br />

however will increase with the entrance of ten new countries in 2004, the so-called “accession<br />

countries”, Poland, Lithuania, Estonia, Latvia, Hungary, the Czech Republic, Slovenia, Slovakia,<br />

Malta and Cyprus. As a result of this enlargement, the EU will expand to 25 countries, with a<br />

total of 450 million residents.<br />

Structure<br />

The age structure of the population and, more significantly, the number of households, the lifestage<br />

of these households and marriage rates are basic demographic determinants of the levels of<br />

expenditure on table- & kitchenware. According to Eurostat, the EU population grew by 0.4<br />

percent to a total of 379.6 million inhabitants in 2002. The EU is expected to grow for about 20<br />

years from now, on basis of present trends in fertility, mortality and international migration. The<br />

population is likely to peak in 2025 at approximately 385 million inhabitants (excluding the<br />

“accession” countries) and then return in 2050 to a level close to the present figure.<br />

Household formation<br />

New household formation, which is an important engine for growth in the table- & kitchenware<br />

<strong>market</strong>, is not expected to rise substantially in the near future. In 2001, there were approximately<br />

153 million households in the EU. In the five-year period between 1997 and 2001, the number of<br />

households in the EU-member countries only increased by 0.8 percent annually. The composition<br />

of these households is also steadily shifting. Through developments like ‘dilution’, family<br />

households are getting smaller because of the simple fact of people are having fewer children.<br />

Also the growing divorce rates and the dropping marriage rates have a positive effect on the<br />

number of households in the EU. The average EU household is getting smaller. In 1991 a<br />

household consisted of on average 2.6 persons, in 2001, this rate dropped to 2.4 persons per<br />

household (Eurostat).<br />

Ageing population<br />

The composition of the population is changing. Europe is entering a period of accelerated<br />

population ageing. This phenomenon will extend to the majority of the EU-countries. The<br />

younger generation, the 0-24 age group, representing 31 percent of the population in 1995, will<br />

fall to 27 percent in 2015, a decline of 11 million. In some regions in Germany, Italy, Spain and<br />

France, the younger generation will represent less than 25 per cent. The retired generation (65+)<br />

will increase, significantly and unevenly throughout Europe. In 2050, we can expect 28 percent of<br />

the total European population, including Russia, to be aged 65 and over, as compared to 14<br />

percent today.<br />

25


These developments have both a negative and a positive effect on the table- & kitchenware sales.<br />

The <strong>market</strong> for basic products like pans, gadgets, etc. is growing because of the steadily<br />

increasing number of households. On the downside, these smaller households do not need the<br />

large table- & kitchenware sets often sold in the premium-end of the <strong>market</strong>.<br />

Marriage rates & timing<br />

According to Euromonitor, the number of marriages is an important sales driver in the table- &<br />

kitchenware <strong>market</strong> especially in the premium-end of the <strong>market</strong>. Traditionally table- &<br />

kitchenwares make up a substantial share of the wedding gifts given.<br />

The marriage rate in the EU is steadily dropping. Pre-marriage households are very common.<br />

According to Eurostat, the EU marriage rate dropped from an average of 6.3 marriages per 1000<br />

inhabitants in 1980, to 5.1 marriages in 2002. Many people today choose to delay their marriage<br />

until they are somewhat older. This development has some implications, especially for the<br />

premium table- & kitchenware segment, as for example crockery sets and crystalware. Because of<br />

this development, couples each tend to have well-equipped homes, making wedding gifts of<br />

table- & kitchenware redundant.<br />

3.3.2 Social & cultural trends<br />

There are significant changes in consumption habits in the varying EU-countries, due to<br />

improvement of life, and differences in culture, traditions and tastes. In this section, the main<br />

social trends which influence the consumption of table- & kitchenware will be discussed.<br />

Turning inwards<br />

According to the Ambiente, a slumbering economy turns consumers more inwards to their homes<br />

and kitchens. Consumers are spending more time on social events at home like dining, playing<br />

games, etc., with family and friends, combined with the rise of in-home entertainment systems,<br />

which are good and cheap alternatives of out-of-home possibilities. This phenomenon of<br />

”staying-in”, according to Global Information Inc., has a positive effect on table- & kitchenware<br />

sales.<br />

From formal to casual<br />

Another important development is the shift from formal to more casual everyday table- &<br />

kitchenware. According to Unity Marketing, today’s consumers more often buy this casual<br />

everyday table- & kitchenware rather than the higher-priced formal tableware which is the<br />

traditional cornerstone of the industry. Other relevant social trends are discussed below.<br />

Changing eating and cooking habits<br />

As mentioned earlier, the EU consumption of table- & kitchenware is steadily shifting away from<br />

formal products towards more practical and informal products. According to Euromonitor, the<br />

busier lifestyles, the increasing number of single-person households and a growing number of<br />

working women, lead to changing lifestyles. Family meals are being replaced by “grazing”, as<br />

consumers eat more easy-to-prepare snacks during the day rather than a formal meal. This trend is<br />

more pronounced in the Western countries of Europe. However, even in countries with a<br />

significant, traditional dining culture, like Italy and France, this trend is also evident. The<br />

tradition of long, extensive meals is being replaced by convenient, ready-made meals, which take<br />

less time to prepare.<br />

There is also a growing trend towards health and wellbeing. Today’s stressful society has a<br />

positive effect on the sales of health-related products. Fat-free or low-fat products are very<br />

popular throughout many food product ranges. In the table- & kitchenware <strong>market</strong>, this trend has<br />

a significant impact on food preparation methods. Low fat or even fat free cooking methods, like<br />

for example steaming, increasingly substitute less healthy cooking methods like frying and<br />

roasting. Low-fat cookware like grills, steamers and woks has become more popular in the<br />

reviewed period.<br />

26


Social diversity<br />

The modern consumer can no longer be clearly defined. Consumers are becoming more diverse<br />

both in social and in cultural terms. This is due to a number of developments. First, ageing and<br />

increasing life spans lead to a greater diversity of ages. Secondly, growing immigration,<br />

combined with growing tourism and the better availability of foreign spices and herbs, bring a<br />

greater variety in cooking and eating habits. According to Eurostat, migration made up three<br />

quarters of the total EU population increase in 2001. These developments are for example,<br />

reflected in the popularity of the oriental cuisine. According to Key Note, the popularity of ethnic<br />

dishes has led to increased demand for cooking and eating utensils such as woks.<br />

In the EU today, an increasing number of women have jobs of their own. This development has<br />

led to the growing importance of women as consumers. This increase, however also meant that<br />

the time to cook is often in short supply. Leisure time is too highly valued to spend on cooking,<br />

especially when the additional income can be spent on ready-made meals or on eating out. This<br />

development has also had some implications on table- & kitchenware sales, particularly on the<br />

demand for easy-to-handle utility products, which are microwave and dishwasher-proof, which<br />

have grown.<br />

Figure 3.10 Trickle-down effect design trends<br />

Fashion<br />

Because of the shift towards more casual products,<br />

table- & kitchenwares are increasingly influenced<br />

by fashion developments. According to sources at<br />

the Birmingham Autumn Fair, trends in the table-<br />

& kitchenware <strong>market</strong> are likely to change<br />

significantlly every twelve to eighteen months.<br />

According to Euromonitor, fashion has a major<br />

influence on table- & kitchenwares, especially in<br />

ceramicware, china and porcelain segments.<br />

However, the other segments are also becoming<br />

much more fashion-orientated. The increasing<br />

importance of design has been stimulated by the<br />

growing popularity of DIY and home makeover<br />

programmes, which have increased the<br />

popularity of interior design.<br />

Architecture<br />

Fashion<br />

Home textile<br />

Table- &<br />

kitchenware<br />

Lifestyle<br />

Source: Euromonitor, 2000<br />

In general, fashion in the table- & kitchenware <strong>market</strong> is influenced by several trends. In terms of<br />

colour, trends generally begin in women’s fashion and extend themselves via men’s fashion into<br />

home textiles, and into DIY products. From here, the influence impacts the table- &<br />

kitchenwares. For more information on trends and colours, please refer to CBI’s “Colour trends<br />

2004/06”.<br />

According to Euromonitor, shape is influenced by architecture, especially at the premium-end of<br />

the <strong>market</strong>. On the practical and functional side of the <strong>market</strong>, shape is influenced by lifestyle<br />

trends.<br />

The ageing society has also triggered the demand for light-weight, ergonomically designed<br />

utensils, gadgets and pan handles.<br />

27


Hobby Cooking<br />

The growing trend towards more practical and more functional table- & kitchenware does not<br />

mean that the consumer is not interested in food or food preparation. On the contrary, the<br />

popularity of TV cooking shows and interest in cooking magazines have increased, exposing<br />

consumers to a wide variety of cuisines, table- & kitchenwares and cooking techniques, and<br />

prodding them to purchase and try these new techniques and products. The number of cooking<br />

classes has also increased in recent years and consumers try to recreate the ambiance of expensive<br />

restaurants when enjoying home-cooked meals. According to Euromonitor, this was a result of<br />

the shift towards convenient and ready-made meals. Consumers were freed from the laborious<br />

chores of creating family meals on a daily basis and, because of this development, extensive<br />

cooking, for many people, has come to be seen as an hobby or leisure-time activity.<br />

Brand awareness<br />

EU consumers are generally not very familiar with the different brands of table-kitchenware.<br />

Most consumers do not believe that famous brands automatically mean better quality and the<br />

average consumer is not well-informed about the different brands of table- & kitchenware<br />

manufacturers. Brand awareness however, differs per product group. In the ceramicware, china &<br />

porcelain and metalware sectors, brand awareness is generally higher than in the other segments,<br />

mainly due to the <strong>market</strong>ing efforts of the manufacturers in these sectors.<br />

3.3.3 Technical trends<br />

The busy lifestyles and the trend away from<br />

family meals, together with the increasing<br />

popularity of microwaves and dishwashers,<br />

have triggered demand for easy-to-use<br />

products adapted for use in these appliances.<br />

In <strong>2003</strong>, around 35 percent of European<br />

households will own a microwave. Products<br />

which can be heated up at different times for<br />

individual family member are characteristic<br />

of the new eating habits. Convenience and<br />

functionality are becoming increasingly<br />

important throughout Europe. According to<br />

Key Note, the popularity of microwaves has<br />

led to the introduction of plasticwares<br />

specifically designed for microwave cooking.<br />

Table 3.2<br />

Household penetration of dishwashers<br />

and Microwaves by country, 2002<br />

Dishwasher Microwave<br />

France 45% 74%<br />

Italy 39% 24%<br />

Germany 56% 65%<br />

United Kingdom 25% 77%<br />

Spain 22% 56%<br />

Netherlands 55% 66%<br />

Source: Euromonitor, 2002<br />

New products & innovation<br />

New materials and technical innovations are also very important for table- & kitchenware sales.<br />

According to sources on the Ambiente, consumers, due to the uncertain economic climate, are<br />

more conservative in their spending. Replacement sales are not very popular in these slow<br />

economic times. However, new products with new features and designs trigger the consumers to<br />

purchase.<br />

3.4.4 Economic trends<br />

Economic growth has slowed across much of Western Europe since the turn of the millennium,<br />

with the softness in the economy driven for a large part by cyclical trends, such as reduced<br />

exports amid global weakness. Reduced consumer confidence and growth in unemployment<br />

were, among others, the main factors leading to a smaller growth in total consumer spending.<br />

However, it looks as if table- & kitchenware consumption has not been greatly affected by this<br />

development, as can be seen in paragraph 3.1. This can partly be explained by fact that, due to the<br />

slow economy, consumers have turned more inwards to their homes and kitchens (see Paragraph<br />

3.4.2) (Source: Ambiente).<br />

28


4 PRODUCTION<br />

Over the last decade, the table- & kitchenware <strong>market</strong> has become increasingly competitive,<br />

mainly due to the pressure of low-cost imports deriving from Asia and Eastern Europe. The more<br />

expensive labour force and the stricter regulations in the EU Countries, have made it difficult for<br />

EU manufacturers to compete. Because of this increasing competition, many EU manufacturers<br />

tried to position themselves at the premium-end of the <strong>market</strong>, where the margins are better<br />

(Source Euromonitor). However, because of this development, the segment became crowded.<br />

Combined with the <strong>market</strong> saturation, especially in Western Europe, and with the <strong>market</strong> shifting<br />

away from traditional formal products towards more functional, quality products, the EU table- &<br />

kitchenware <strong>market</strong> has become a highly competitive place.<br />

The increasing rivalry in other sectors, especially the food retail sector has also contributed to the<br />

increasing competition in the table- & kitchenware <strong>market</strong>. Because of the relatively high margins<br />

and the need to create more “traffic”, an increasing share of retailers, like grocery multiples and<br />

discounters started selling table- & kitchenwares, mainly low-priced products, often “privatelabel”,<br />

deriving from Asia. This development in turn undermined the position of the EU<br />

manufacturers, which were mostly located at the premium-end of the <strong>market</strong>.<br />

To cope with the increasing competition, several EU table- & kitchen manufacturers established<br />

manufacturing bases in Asia, especially in China, Taiwan and Thailand Here, they could combine<br />

their state-of-the-art technology with a low cost-base. In this way, they could maintain an<br />

efficient, high-quality production system but at low cost.<br />

Another answer to the increasing competitiveness was to achieve “economics of scale”. Mergers<br />

and acquisitions were a popular means to acquire the scale necessary to survive in the globalizing<br />

world. Small companies with insufficient production were taken over. This provided an ideal way<br />

for the bigger companies to increase their <strong>market</strong> share in the mature EU table- & kitchenware<br />

<strong>market</strong>. Outsourcing was/is also a popular means for Western manufacturers to remain<br />

competitive. Outsourcing a part of their production to cheap(er) contract manufacturers, offers the<br />

EU manufacturers the chance to focus their attention on <strong>market</strong>ing their products. As can be seen<br />

in Chapter 3, brand awareness in the table- & kitchenware <strong>market</strong> is generally low, however this<br />

is changing. Because of the increasing competition, manufacturers are searching for ways to<br />

differentiate their products from their competitors’. Branding, together with advertisement, is an<br />

important way of achieving this.<br />

Unfortunately, exact figures concerning outsourcing are not available. However, the increasing<br />

importance of especially Asia (See Paragraph 5.3), as a manufacturer of table- & kitchenwares<br />

shed some light on importance of this development. Waterford/Wegdwood an important<br />

European manufacturer of table- & kitchenwares outsources approximately one-third of its<br />

production to European and Asian contract manufacturers.<br />

Another notable development is brand extension; Waterford/Wegdwood for example extended<br />

their product line into linens, jewellery, writing instruments and other giftware.<br />

The production figures given in Table 4.1 are based on calculations made using the consumption<br />

statistics from Euromonitor and the import and export statistics from Eurostat. Therefore, extreme<br />

care must be taken in the qualitative use and interpretation of this information. These figures<br />

however, can give a useful insight in the production size of the countries listed.<br />

29


Table 4.1 Production of the table- & kitchenware segments by country in 2001, in € millions<br />

Metalware Plasticware Glassware Ceramicware China & Cutlery<br />

Porcelain<br />

France 998 1,561 1,966 594 545 718<br />

United Kingdom 734 1,437 362 690 419 58<br />

Italy 860 405 1,503 754 167 251<br />

Germany 518 261 889 414 709 294<br />

Spain 107 334 391 127 106 89<br />

Netherlands 128 30 127 73 79 29<br />

Sources: Euromonitor & Eurostat, 2002/ <strong>2003</strong><br />

4.1 Production per product segment<br />

Many manufacturers involved in the table- & kitchenware <strong>market</strong> are tightly focused on one<br />

product or material type, such as glassware, ceramicware, metalware, cutlery etc. (Source:<br />

Euromonitor). This, however, is steadily changing because of the developments mentioned<br />

earlier. Manufacturers are starting to examine <strong>market</strong>s beyond their original scope. In order to<br />

give a well-organized overview of the EU manufacturers, we have chosen to segment by product<br />

segment.<br />

Metalware<br />

The production of metalware continues to polarise between high-priced premium products and<br />

budget-priced products, mainly imported from low-wage economies in the Far East. Because the<br />

metalware <strong>market</strong>, like the other table- & kitchenware segments, is consolidating, branding has<br />

become more important. At the time of writing, large companies, like the French SEB, with wellknown<br />

brands dominate the EU metalware <strong>market</strong>, especially for metal cookware. The SEB<br />

Group is present in more than 120 countries and produces around 130 million items yearly,<br />

making it one of the world leaders in small domestic equipment. Its brand portfolio contains wellknown<br />

names like Tefal and Rowenta.<br />

Table 4.2 Main manufactures of metalware in the EU<br />

Manufacturer Brands Origin<br />

Seb group Tefal, Arno, Calor, Rowenta, Krups, Seb France<br />

Wmf Wmf, Silit Germany<br />

Le Cr<strong>eu</strong>set Le Cr<strong>eu</strong>set France<br />

Fissler gmbh Fissler, Genovis, Protectal, Magic Line, Magic Edition Germany<br />

Albert spa Albert, Broggi, Facix Italy<br />

B.V. Koninklijke van Kempen & Bk, Keltum, Gero, Q-Linair, Kempen & Begeer, Royal Vkb Netherlands<br />

Begeer<br />

As can be seen in paragraph 5.2, the EU manufacturers are increasingly coming under pressure<br />

from foreign manufacturers. However, manufacturers in France, Germany and Italy are still the<br />

main manufacturers of metalware. There are several reasons for this. First, the EU manufacturers<br />

are strong in terms of innovation and design, and have a thorough knowledge of their home<br />

<strong>market</strong>, which makes it difficult for foreign manufacturers to gain a strong position in the EU<br />

<strong>market</strong>. Secondly, producing metalware, especially cookware, requires highly skilled and<br />

complicated production processes, something which the EU manufactures have years of<br />

experience in.<br />

Plasticware<br />

The most important plasticware-producing countries in the EU are Germany, Italy, United<br />

Kingdom and France. The important position of France in Table 4.1 is highly questionable.<br />

Unlike the other table- & kitchenware segments, the EU manufactures have a strong position on<br />

the EU <strong>market</strong>, mainly because the <strong>market</strong> is dominated by a small number of manufacturers,<br />

who have retained “economics of scale”. The size and the efficiency of their production has made<br />

it possible to hold down prices. Combined with the fact that plasticwares produced by EU<br />

manufacturers or other Western manufactures are strong in terms of innovation, quality and<br />

design, therefore it is difficult for foreign manufacturers to position themselves in the EU.<br />

30


The EU plasticware <strong>market</strong> is dominated by companies like Addis and the American Newell<br />

Rubbermaid. The latter, Newell Rubbermaid, acquired Rubbermaid, a leading EU manufacturer,<br />

in 2001. Due to this takeover, Newell Rubbermaid retained a dominant position in the EU<br />

plasticware <strong>market</strong>, with an extensive product range including storage containers, drainers, boxes,<br />

etc. Newell Rubbermaid’s brand portfolio includes well-known names like Rubbermaid, Curver,<br />

Little Tikes, Graco and Century.<br />

Table 4.3 Main manufacturers of plasticware in the EU<br />

Manufacturer Brands Origin<br />

Newell-Rubbermaid Rubbermaid, Curver, Little Tikes, Graco and Century US<br />

Addis Houseware Ltd Emsa, Addis Germany<br />

Allinox International Ltd Brabantia US<br />

In 1999, the leading British supplier of plasticware, Addis, merged with the German EMSA into<br />

EMSA Holding AG. This merger created one of the biggest EU plasticware manufacturers,<br />

combining numerous household products for everyday use. Due to these takeovers and merges,<br />

the plasticware sector has become increasingly competitive. According to Euromonitor, this<br />

increasing competition will lead to a high degree of activity, in terms of new product launches<br />

and designs, and in terms of price competition.<br />

Glassware<br />

The production of glasswares for table and kitchen usages is one of the smallest sectors of the<br />

glass industry, accounting for approximately 4% of total glass output. Glassware covers the<br />

production of glass tableware, cookware and decorative items, which include drinking glasses,<br />

cups, bowls, plates, cookware, vases and ornaments. According to the Committee of the European<br />

Glass Industry, the EU manufacturers of glassware are widely distributed across the EU, with a<br />

total of 140 installations, producing 996,760 tons of glassware. 72% of glassware sales depend on<br />

private consumption. The remaining share is sold to caterers, restaurants, hotels, bars etc.<br />

The main threat to the EU glassware manufacturers is the increasing competition in the domestic<br />

<strong>market</strong>s from imports deriving from Asia and Eastern Europe, and greater competition in<br />

important export <strong>market</strong>s like Japan and the United States. This increased competition has led to<br />

severe pressure on prices and therefore restricted profitability.<br />

In general, EU glassware manufacturers are noted for their excellent styling and high product<br />

quality standards. France, EU’s most important production country, produced 477,000 tons in<br />

2002. French glassware is known throughout the world as among the finest glassware products<br />

anywhere. French glassware manufacturers have the world’s largest mass production<br />

infrastructure for both fine crystal and soda glass products. France is also home to the world<br />

leading glassware manufacturer Arc International; widely known from brands like: Luminarc,<br />

Crystal d’Arques, Salviata and Arcoroc. Arc International is <strong>market</strong> leader both in France and in<br />

the United Kingdom.<br />

Table 4.4 Main manufacturers of glassware in the EU<br />

Manufacturer Brands Origin<br />

Arc International Group Luminarc, Crystal d’Arques, Salviata, Arcoroc France<br />

Cristalleria Artistica La Piana SpA Royal Cristal Rock (RCR), Primavera di Cristallo, Da Vinci Italy<br />

Crystal and Capri Crystal<br />

F.X. Nachtmann GmbH Nachtmann, Marc Aurel, Spiegelau Germany<br />

Waterford Wedgwood Plc Waterford Crystal Ireland<br />

Glaskoch Glashütten B: Koch Leonardo, Montana<br />

Germany<br />

GmbH<br />

Italy is Europe’s second manufacturer of glassware with a production of 174,000 tons. Through<br />

the reviewed period, the Italian production of mechanically-made glassware fell, but handmade<br />

glassware however, is still significant. Italian mass-<strong>market</strong> soda glass products are known for<br />

31


their distinctive styling. Cristalleria Artistica La Piana SpA (C.A.L.P.) is the leading glassware<br />

manufacturer in Italy.<br />

Germany is Europe’s third manufacturer of glassware. In 2002, Germany produced about 145,000<br />

tons of glassware. Germany’s production mostly employs simple styling and is price-competitive.<br />

Main German manufacturers are Nachtmann, WMF, Villeroy & Boch and Glaskoch. The latter is,<br />

according to Euromonitor, <strong>market</strong> leader in Germany.<br />

Ceramicware, China & Porcelain<br />

The ceramicware and china & porcelain industries are closely related to one another. In the EU,<br />

this sector is dominated by small and medium-sized enterprises. There are, however, some large<br />

manufacturers, like for example Villeroy & Boch, Royal Doulton Limited and Waterford-<br />

Wedgwood, which is probably one of the largest manufacturers in the world. According to<br />

estimates made by Cerame-Unie, the European ceramics sector records total sales of around € 2.7<br />

billion of ceramicware, china & porcelain (this figures includes ornamental ware). Because the<br />

production of ceramics is fairly labour-intensive, the EU ceramicware sector is susceptible to the<br />

effects of competition, especially from low-wage countries in Asia and Eastern Europe. To cope<br />

with the fierce competition, many EU manufacturers have shifted their production, or part of it, to<br />

so-called low-wage countries. Despite these negative developments, EU manufacturers still<br />

dominate the ceramic <strong>market</strong>, because of their <strong>market</strong>ing efforts to create strong brands. The<br />

range of products they produce is vast; products differ greatly between manufacturers and depend<br />

to a large extent on public taste and disposable income.<br />

Table 4.5: Main manufacturers of ceramicware in the EU<br />

Manufacturer Brands Origin<br />

Waterford Wedgwood Plc Rosenthal, Wegdwood, Johnson Bros, Mason’s Ironstone Ireland<br />

Royal Doulton Limited Minton, Royal Doulton, Royal Albert and Enchantica United Kingdom<br />

Villeroy & Boch AG Villeroy & Boch Germany<br />

Royal Copenhagen Royal Copenhagen Denmark<br />

Richard Ginori 1735 Richard Ginori Italy<br />

According to Cerame-Unie, Germany, United Kingdom, France and Italy are the main producing<br />

countries. Germany is especially noted for its high technical skills of white porcelain. Important<br />

German manufacturers are Villeroy & Boch and Rosenthal, the latter majority -owned by<br />

Waterford/Wegdwood Plc. Rosenthal is <strong>market</strong> leader in Germany, Austria and Switzerland for<br />

luxury tableware and avant-garde tabletop design. The United Kingdom is the leading<br />

manufacturer of high-quality bone china and other fine ceramics. Other producing countries are<br />

France and Portugal. Especially in Portugal, production is fragmented and dominated by small<br />

manufacturers and artisans.<br />

Cutlery<br />

Within the EU, Germany, France and Italy are the leading cutlery-manufacturing countries. In the<br />

last decade, the EU cutlery sector has undergone major changes and attracted new global<br />

competitors. Famous companies disappeared, if their management did not embrace new<br />

technology and processes necessary to stay competitive. For this reason, Sheffield, England, is no<br />

longer a leading cutlery centre. Most EU manufacturers underwent massive modernization to<br />

keep up with the increasing competition from Asian countries. EU production is increasingly<br />

focused on premium-end products, including both traditional and design-led cutlery. This<br />

however, has produced only mixed success.<br />

Table 4.6 Main manufacturers of cutlery in the EU<br />

Manufacturer Brands Origin<br />

Albert SPA Broggi, Albert, Facix Italy<br />

Fissler GmbH Magic Germany<br />

Table de France Guy Degrenne, George Butler of Sheffield France<br />

Le Cr<strong>eu</strong>set Le Cr<strong>eu</strong>set France<br />

Zwilling J.A. Henckels AG Zwilling J.A. henckels and J.A. henckels international Germany<br />

WMF WMF Germany<br />

32


In contrast to the metalware sector, brand awareness in the cutlery sector is low. Many<br />

manufacturers use the company name, which mostly acts as an umbrella brand. This low brand<br />

awareness is a major cause of the lack of success of EU manufacturers.<br />

Woodware<br />

As can be seen in the previous chapter, the woodware sector is very small segment in the EU<br />

table- & kitchenware <strong>market</strong>. At the moment, no major manufacturer is active in the production<br />

of wooden table- & kitchenwares and wooden products are generally sold under private-label<br />

brand names. Major retailers like Ikea sell wooden table- & kitchenware, for example chopping<br />

boards, under private label. These products are mostly made by small manufacturers. East<br />

European countries like Poland, Czech Republic and Hungary are also important production<br />

countries. These countries enjoy short transport distances to the EU <strong>market</strong>s, enabling them to<br />

produce at competitive prices. Furthermore, they have a suitable supply of hardwood.<br />

33


5 IMPORTS<br />

Trade statistics given in this chapter and in Chapter 6, derive from Eurostat, which bases its<br />

statistics on information from the Customs and EU companies. Especially in the case of intra-EU<br />

trade, not all transactions are registered, such as those made by smaller companies and<br />

transactions from non-EU sources (see remarks on trade statistics in Chapter 2). On the other<br />

hand, figures for trade between the EU and the rest of the world (Extra-EU) are accurately<br />

registered and are, therefore, more precisely represented in these statistics. Nevertheless, these<br />

statistics must be treated with extreme caution and are only intended to give an indication of trade<br />

flows in the international table- & kitchenware <strong>market</strong>.<br />

The statistics specify total imports, divided into volumes/values, sourced from other EU-countries<br />

(Intra-EU), non-EU-countries (extra-EU) with the values/ volumes coming from developing<br />

countries. The developing countries are defined by the OECD (Organisation for Economic Cooperation<br />

and Development) and are listed in Appendix 5. Appendix 2 lists import statistics of the<br />

EU and the selected <strong>market</strong>s within the EU, and gives a breakdown of the EU imports by product<br />

group.<br />

5.1 Total import<br />

In 2001, the total import of table- & kitchenware was € 8.4 billion, indicating a small decrease of<br />

1 percent in comparison with 2000. In the years preceding 2001, the EU import showed a healthy<br />

development. In the period between 1997 and 2000, EU imports grew in terms of value, on<br />

average, about 5 percent annually. Apparently, the stagnation of the economy in 2001 has slightly<br />

influenced the import of table- & kitchenware. The EU import of table- & kitchenware in terms<br />

of volume was estimated at about € 2.5 million tons in 2001.<br />

Figure 5.1<br />

Total imports of table- & kitchenware into the EU, 1999-2001, in € millions<br />

2,000<br />

1,800<br />

1,600<br />

1,400<br />

1,200<br />

1,829<br />

1,410<br />

1,157<br />

1999<br />

2000<br />

2001<br />

1,000<br />

800<br />

600<br />

400<br />

200<br />

695<br />

624<br />

554 548<br />

437<br />

254 238<br />

178 147 150<br />

101<br />

48<br />

-<br />

Germany<br />

United Kingdom<br />

France<br />

Italy<br />

Netherlands<br />

Spain<br />

Belgium<br />

Austria<br />

Denmark<br />

Sweden<br />

Greece<br />

Ireland<br />

Portugal<br />

Finland<br />

Luembourg<br />

Source: Eurostat, 2002<br />

34


Looking at the Eurostat statistics at a national level, we see significant differences between the<br />

EU countries. Imports by the United Kingdom grew by 8 percent in 2001, German imports, on<br />

the other hand dropped by 8 percent that same year.<br />

Germany is the largest table- & kitchenware import <strong>market</strong>, with an import value exceeding € 1.8<br />

billion in 2001, although, the German share is dropping, they still accounted for almost 22 percent<br />

of the total EU imports. The EU’s second import <strong>market</strong>, the United Kingdom is rapidly gaining<br />

importance at the expense of Germany. The British import share rose from 11 percent in 1992 to<br />

17 percent in 2001. France with a share of 14 percent is Europe’s third importer, followed by<br />

Italy (8%), The Netherlands (8%), Spain (7%) and Belgium (7%) at considerable distance.<br />

Metalware is the biggest product group<br />

imported by the EU countries. In 2001, the<br />

import of metalware totalled € 2 billion,<br />

representing almost a quarter of the total EU<br />

import. Glassware, the second import<br />

<strong>market</strong> dropped by 2 percent in value,<br />

amounting to € 1.9 billion in 2001. The third<br />

import <strong>market</strong>, plasticware, grew by 2<br />

percent in terms of value in 2001<br />

The cutlery import showed an interesting<br />

development. Between 1992 and 2001, the<br />

imported volume showed a higher growth<br />

rate than the value. This would indicate that<br />

the average product prices of cutlery are<br />

dropping.<br />

Figure 5.2<br />

Ceramicware<br />

7%<br />

Porcelain &<br />

China<br />

10%<br />

Cutlery<br />

11%<br />

Import of table- & kitchenware in the<br />

EU, in 2001 by product group, % of<br />

total value<br />

Glassware<br />

22%<br />

Woodware<br />

2%<br />

Metalware<br />

24%<br />

Plasticware<br />

24%<br />

Source: Eurostat, 2002<br />

Origin of the imports<br />

Looking at the origin of the imported table- & kitchenware, we can see that the intra-EU trade is<br />

declining. In 1992, the EU countries still accounted for 66 percent of the EU import in terms of<br />

value. In 2001, this percentage dropped to 52 percent. The main intra-EU suppliers are Italy,<br />

France, and Germany, with shares of 10%, 9% and 9% respectively in terms of value. However,<br />

the picture looks different in terms of volume: here, with a share of more than 15 percent, Italy is<br />

the undisputed <strong>market</strong> leader ahead of France (9%), followed by Germany (7%). The drop in the<br />

intra-EU trade is mainly caused by the increasing competition from cheap-labour countries in<br />

Asia and Eastern Europe. Notably, the importance of China grew explosively the last decade.<br />

35


France<br />

In 2001, the French import of table- &<br />

kitchenware remained stable, representing a<br />

value of € 1.2 billion and a volume of<br />

376,000 tons. Over the five-year period<br />

between 1997 and 2001, the import of table-<br />

& kitchenware showed a healthy growth of<br />

28 percent in terms of volume.<br />

Plasticware, the biggest product group<br />

imported by France, grew by 32 percent<br />

annually in the five-year period between<br />

1997 and 2001. In 2001, the import of the<br />

second largest product group, metalware<br />

remained rather stable both in terms of value<br />

and in terms of volume. As can be seen in<br />

Figure 5.3, the growth of glassware imports<br />

tempered in 2001 in comparison with 1999<br />

and 2000.<br />

Figure 5.3<br />

350<br />

300<br />

250<br />

200<br />

150<br />

100<br />

50<br />

-<br />

323<br />

Plasticware<br />

Imports of table- & kitchenware into<br />

France by product group, 1999-2001<br />

in € millions<br />

267<br />

Metalware<br />

223<br />

Glassware<br />

111 107 100<br />

Ceramicware<br />

Porcelain & China<br />

Cutlery<br />

1999<br />

2000<br />

2001<br />

Woodware<br />

25<br />

Source: Eurostat, 2002<br />

The import of ceramicware showed an interesting development between 1997 and 2001; the<br />

volume increased by 28 percent, but the value only grew by 10 percent. This development<br />

indicated that the average price showed a downwards tendency. The porcelain and china import<br />

remained rather stable in 2001. Over a longer period, however, this import <strong>market</strong> has shown a<br />

positive development. The French import of cutlery showed enormous fluctuations in the<br />

reviewed period. In 2000, the import grew by almost 16 percent. In 2001 however, the import<br />

dropped by 12 percent in terms of value.<br />

Of the countries discussed in this <strong>survey</strong>, France imports the most from within the EU but, like<br />

the other countries discussed in this <strong>survey</strong>, the share of intra-EU trade has slowly declined in the<br />

reviewed period. In 2001 however, the intra-EU trade slightly gained importance, that year<br />

France imported 66 percent of its imported table- & kitchenware from EU-countries. Within the<br />

EU, Italy (18%) and Austria (15%) are France’s main suppliers. Regarding the extra-EU trade<br />

China (12%), Turkey (2%) and Poland (2%) are France’s main suppliers.<br />

United Kingdom<br />

Despite the negative economic climate in<br />

2001, the British import of table- &<br />

kitchenware continued to grow. In 2001, the<br />

total import grew by 7.5 percent in terms of<br />

value and 6.5 percent in terms of volume.<br />

That year, the import of table- &<br />

kitchenware amounted to € 1.4 billion and a<br />

volume of 405,000 tons.<br />

As in Germany, metalware is the most<br />

important product group imported by the<br />

United Kingdom, accounting for 27 percent<br />

of the total import. Looking at the import<br />

statistics, there is an interesting development<br />

to note. In 2000, the imported value of<br />

metalware increased by more than 19<br />

percent, the imported volume on the other<br />

hand dropped by 17 percent. This<br />

developing could indicate that the price per<br />

Figure 5.4<br />

400<br />

350<br />

300<br />

250<br />

200<br />

150<br />

100<br />

50<br />

-<br />

Imports of table- & kitchenware into<br />

United Kingdom by product group<br />

1999-2001, in € millions<br />

377<br />

Metalware<br />

300<br />

Plasticware<br />

280<br />

Glassware<br />

162<br />

Cutlery<br />

139<br />

Ceramicware<br />

101<br />

Porcelain & China<br />

1999<br />

2000<br />

2001<br />

Woodware<br />

53<br />

Source: Eurostat, 2002<br />

36


product is rising. The import of plasticware remained stable in terms of value. The volume<br />

however, increased by more than 8 percent, totalling 102,000 tons in 2001.<br />

Britain’s third import <strong>market</strong>, glassware, showed a drop of more 70 percent in 1999, this decrease<br />

was caused by the imports of huge volumes of glassware from Germany, which amounted to 147<br />

thousand tons in 1999. This figure is highly questionable, since according to the same Eurostat<br />

source, Germany only exported 2,3 thousand tons of glassware to The United Kingdom that year.<br />

Ceramicware and woodware were the two biggest growing import <strong>market</strong>s in 2001. In terms of<br />

value, the import grew respectively 14 and 12 percent. The United Kingdom is the EU’s most<br />

important importer of woodware. In 2001, the United Kingdom accounted for 28 percent of the<br />

EU imports of woodware.<br />

In 2001, intra-EU trade accounted for 38 percent of British imports. Italy (9%) and France (8%)<br />

are the most important suppliers. For Extra-EU trade, China is the main supplier in terms of<br />

value, as China supplies more than a quarter of the British import.<br />

Italy<br />

In 2001, Italy was the fourth EU importer of table- & kitchenware, with imports amounting to<br />

€ 695 million and 186,000 tons. After years of impressive growth, the Italian import of table- &<br />

kitchenware declined by 4 percent both in terms of value as in terms of volume.<br />

Figure 5.5 Imports of table- & kitchenware into<br />

Glassware, the biggest product group<br />

Italy by product group, 1999-2001, in<br />

imported by the Italians, accounted for<br />

€ millions<br />

almost a third of the total import of table- &<br />

kitchenware. In the mid-nineties, the import<br />

250 224<br />

of glassware showed strong growth. In<br />

1999<br />

2001, the import dropped by 2 percent both 200<br />

2000<br />

in terms of value and volume. Italy’s second<br />

145<br />

product group, porcelain and china, showed 150<br />

2001<br />

quite some fluctuations in the reviewed<br />

104 99<br />

period. In terms of volume, imports grew 100<br />

80<br />

between 1997 and 2001. In that period, the<br />

50<br />

30<br />

value of the import also rose, but in 2001<br />

13<br />

there was a turning point. That year the<br />

-<br />

import value amounted € 145 million,<br />

indicating a drop of 3 percent. Between<br />

1997 and 2000, the import of metalware<br />

showed a substantial growth which,<br />

however, ended in 2001. That year, the<br />

import dropped by 6 percent in terms of<br />

value and even 14 percent in volume. Source: Eurostat, 2002<br />

After years of considerable growth, the import of plasticware dropped by 4 percent in terms of<br />

value and 13 percent in terms of volume. In comparison with other EU-countries, the Italians<br />

import relatively little plasticware. Plasticware accounts for 24 percent of the total EU import of<br />

table- & kitchenware in terms of value, whereas in Italy plasticware accounts for only 14 percent<br />

of the import. The growth in metalware imports also ended in 2001. That year the imported<br />

volume dropped by a significant 14 percent. In terms of value, the import decreased by 6 percent.<br />

As in the rest of the EU, Italian cutlery prices dropped.<br />

Although Italy’s import of table- & kitchenware fell, the share deriving from outside the EU<br />

increased. This development indicates that EU-countries lost <strong>market</strong> share. Especially, the<br />

importance of Germany dropped considerably. In 2001, the Italians imported 14 percent of their<br />

total import from Germany. Ten years earlier, Germany accounted for more than 30 percent of<br />

Glassware<br />

Porcelain & China<br />

Metalware<br />

Plasticware<br />

Cutlery<br />

Ceramicware<br />

Woodware<br />

37


Italy’s import. It was mainly China and Eastern European countries which took advantage of the<br />

declining importance of intra-EU trade and showed considerable growth.<br />

Germany<br />

As stated earlier, Germany is the largest national import <strong>market</strong> of table- & kitchenware in the<br />

EU. In 2001, the German import showed the biggest decline of all the <strong>market</strong>s discussed in this<br />

<strong>survey</strong>. Imports dropped by 7.5 percent in terms of value and 7 percent in terms of volume,<br />

totalling € 1.8 billion in terms of value and 545,000 tons in terms of volume in 2001. In the four<br />

years preceding 2001, the German import grew on average 6 percent in terms of volume annually.<br />

The Eurostat statistics reveal that, except in the porcelain & china segment, all product groups<br />

imported by Germany declined in terms of value in 2001. Between 1997 and 2001, the porcelain<br />

& china import increased by almost 20 percent, amounting to € 169 million in 2001. The import<br />

of ceramicware dropped by more than 22 percent in that same period.<br />

Germany’s most important product group,<br />

metalware, dropped both in terms of value<br />

(7.5%) and in terms of volume (9%) after<br />

two year of considerable growth. In 2001,<br />

the import of metalware stood at € 478<br />

million. Germany’s second import <strong>market</strong> is<br />

plasticware, which accounts for 25 percent<br />

of the total import and accounted for a value<br />

of € 458 million. The import value of<br />

cutlery showed a tremendous decline of<br />

almost 12 percent in 2001. In the preceding<br />

year however, this product group<br />

represented a growth of almost 20 percent.<br />

The trade flows indicate that, as in the rest<br />

of the EU, the import deriving from outside<br />

the EU is becoming more important. In<br />

2001, more than 60 percent of the German<br />

table- & kitchenware import derived from<br />

extra-EU countries.<br />

Spain<br />

After years of considerable growth, the<br />

Spanish import of table- & kitchenware<br />

showed a tremendous drop. In 2001, the<br />

import decreased by 7 percent in terms of<br />

value and more than 10 percent in terms of<br />

volume. That year, the import of table- &<br />

kitchenware represented a value of € 554<br />

million and a volume of 182,000 tons.<br />

Glassware was the only import <strong>market</strong> in<br />

Spain which showed a slight growth in<br />

2001. Because of this development, it<br />

became the largest import <strong>market</strong> at the<br />

expense of metalware, reflecting the fact<br />

that metalware imports dropped by more<br />

than 15 percent in terms of value and by<br />

more than 20 percent in terms of volume.<br />

Spain’s third import <strong>market</strong>, plasticware,<br />

Figure 5.6<br />

600<br />

500<br />

400<br />

300<br />

200<br />

100<br />

-<br />

Figure 5.7<br />

180<br />

160<br />

140<br />

120<br />

100<br />

80<br />

60<br />

40<br />

20<br />

-<br />

478<br />

Metalware<br />

Glassware<br />

Imports of table- & kitchenware into<br />

Germany by product group, 1999-<br />

2001, in € millions<br />

458<br />

Plasticware<br />

366<br />

Glassware<br />

241<br />

Cutlery<br />

169<br />

Porcelain & China<br />

Ceramicware<br />

85<br />

1999<br />

2000<br />

2001<br />

Woodware<br />

32<br />

Source: Eurostat, 2002<br />

Imports of table- & kitchenware into<br />

Spain by product group, 1999-2001, in<br />

€ millions<br />

142<br />

136<br />

Metalware<br />

Plasticware<br />

90<br />

Porcelain & China<br />

80<br />

Cutlery<br />

62<br />

Ceramicware<br />

35<br />

1999<br />

2000<br />

2001<br />

Woodware<br />

8<br />

Source: Eurostat, 2002<br />

38


showed a tremendous development in the reviewed period. In the period 1992 to 2000, the import<br />

<strong>market</strong> more than tripled in terms of volume. In 2001 however, there was a turning point, as the<br />

imported volume dropped by 8 percent in terms of value and 15 percent in terms of volume.<br />

The import statistics concerning cutlery showed that the average prices of Spanish cutlery reflect<br />

a downwards trend. The import of ceramicware dropped for the second year in a row. In 2000, the<br />

import dropped by 7 percent and a year later the import dropped by almost 10 percent.<br />

In 2001, intra-EU trade accounted for 60 percent of Spanish imports. Italy (19%), France (14%)<br />

Germany (10%) and Portugal (7%) are Spain’s main suppliers within the EU. Regarding extra-<br />

EU trade, Eastern European countries like Poland became more important. China also plays a<br />

major role in Spain’s imports, in 2001 the import deriving from China accounted for 17 percent<br />

of Spanish imports.<br />

The Netherlands<br />

In 2001, imports into the Netherlands increased by almost 4 percent in value, amounting to € 624<br />

million. In terms of volume, the import amounted to 210,000 tons. Over a longer period of time,<br />

the Dutch import had shown a positive development. Between 1997 and 2001, the import grew 20<br />

percent. A notion should be made concerning the Dutch trade. Because the Netherlands is a<br />

trading nation, a lot of the EU imports go through the Rotterdam, one of the biggest harbors in the<br />

world. This makes the figures concerning the Dutch imports and exports less meaningful.<br />

After growing significantly in the late nineties, the Dutch import volume of metalware dropped<br />

for the second year in a row. The value however slightly recovered after dropping 3 percent in<br />

2000. The second import <strong>market</strong> regarding table- & kitchenware, plasticware, showed a<br />

considerable revival in 2001. That year, the imported value grew by 5 percent, and the volume<br />

even increased by more than 12 percent, rising to 88,500 tons.<br />

The Dutch import of cutlery showed an<br />

interesting tendency. In the period between<br />

1992 and 2001, the import in terms of value<br />

grew by 5.5 percent annually. The volume<br />

however, grew by more than 11 percent<br />

annually. This development indicates that<br />

cheaper products are becoming more<br />

popular.<br />

Figure 5.8<br />

Imports of table- & kitchenware into the<br />

Netherlands by product group, 1999-<br />

2001, in € millions value<br />

Of the six countries discussed in this <strong>survey</strong>, 80<br />

60<br />

the Dutch imported the most from suppliers 60<br />

44<br />

outside the EU. In the reviewed period, the 40<br />

13<br />

import share of EU countries dropped from 20<br />

70 percent in 1992 to 45 percent in 2001.<br />

-<br />

The importance of Italy, in particular,<br />

dropped considerably. Regarding extra-EU<br />

trade there are two significant developments<br />

to note firstly, the rise of Eastern European<br />

countries like Poland and, secondly, China<br />

becoming the most important supplier of<br />

Dutch imports of table- & kitchenware. Source: Eurostat, 2002<br />

180<br />

160<br />

140<br />

120<br />

100<br />

167<br />

Metalware<br />

139<br />

Plasticware<br />

125<br />

Glassware<br />

Cutlery<br />

76<br />

Ceramicware<br />

Porcelain & China<br />

1999<br />

2000<br />

2001<br />

Woodware<br />

39


5.2 Import by product group<br />

In this paragraph we will discuss the import per<br />

product group. In the figure attached to each<br />

product group, the quantitative developments<br />

are put down. The size of the circle indicates the<br />

size of the import <strong>market</strong> in terms of value. On<br />

the vertical axe you will find the import<br />

development in value in the year 2001. The<br />

horizontal axe gives to an indication of import<br />

development between 1997 and 2001 in terms of<br />

volume. We have used volume figures instead of<br />

value figures to indicate the long term<br />

development. The main reason for using the<br />

volume figures instead of the value figures is<br />

that the value figures deriving from Eurostat are<br />

How to read the graphics in paragraph 5.2:<br />

Example: Figure 5.9 indicates that the German<br />

import of metalware is the biggest metal import<br />

<strong>market</strong> in de EU in 2001 (size of the circle). In<br />

2001, the German import decreased by almost<br />

8 percent in terms of value (vertical axe). In the<br />

period 1997 till 2001, the German import<br />

<strong>market</strong> increased by only 3 percent in terms of<br />

volume (horizontal axe).<br />

Conclusion: Apart from strong fluctuations in<br />

import figures, the German import as a whole<br />

seems to be quite stable reflected by the long<br />

term growth of only 3 percent (volume).<br />

not corrected for inflation. Because the inflation differs from country to country, using the value<br />

figures to indicate import developments especially long terms ones, could lead to wrong<br />

assumptions. Additional information can be found in Appendix 2.<br />

Metalware<br />

In 2001, metalware was the leading product group imported by the EU-countries, representing a<br />

value of € 2.0 billion and a volume of 419,000 tons. In 2001, the imported value showed a small<br />

decline of 1 percent, whereas the volume dropped by 3 percent. Over the period between 1997<br />

and 2001, the import of metalware grew by 23 percent in value and 19 percent in volume. In<br />

Figure 5.9, we can see that Germany, the biggest import <strong>market</strong>, accounting for almost a quarter<br />

of the EU imports, declined in terms of value (vertical axis) in 2001. Over the period 1997 to<br />

2001, the German import of metalware in terms of volume only grew by 3 percent (horizontal<br />

axis). In 2001, the import volume even dropped by 9 percent. The United Kingdom is becoming<br />

more important, accounting for 19 percent of the EU imports. In 2001, the United Kingdom<br />

showed the most growth, as the import of metalwares increased by 11% in terms of value and 7<br />

percent on a volume basis. Other important import <strong>market</strong>s are France (13%), the Netherlands<br />

(8%), Belgium (8%), Spain (8%), Italy (5%) and Austria (4%).<br />

Figure 5.9<br />

Relative attractiveness of EU-countries with respect to the import development of<br />

metalware<br />

20%<br />

% growth 2001 in €<br />

15%<br />

United Kingdom<br />

10%<br />

Belgium/ Luxembourg<br />

Finland<br />

5%<br />

Netherlands<br />

Sweden<br />

Denmark<br />

Ireland<br />

0%<br />

Austria<br />

France<br />

-15% -5% 5% 15% 25% 35% 45% 55%<br />

-5% Portugal<br />

Italy<br />

Greece<br />

Germany<br />

-10%<br />

-15%<br />

-20%<br />

Spain<br />

% growth 1997 - 2001 in volume<br />

Source: Eurostat, 2002<br />

40


The importance of relatively small countries like the Netherlands and Belgium can be explained<br />

by the different cooking habits (see paragraph 3.2). In terms of volume the French import was<br />

sluggish, only growing 1 percent in 2001. The Dutch import decreased by 4 percent that year. The<br />

two Southern European countries highlighted in this <strong>survey</strong>, Italy and Spain showed a gigantic<br />

drop in 2001. The first dropped by 14 percent, the latter even by more than 20 percent. The years<br />

preceding 2001, these import <strong>market</strong>s represented healthy growth figures; therefore both <strong>market</strong>s<br />

still show a positive development in Figure 5.9.<br />

Origin of imports<br />

The import deriving from EU-countries is steadily dropping, mainly in favour of China. In 1997<br />

the EU countries accounted for 53 percent of the EU import, in 2001 this percentage dropped to<br />

50 percent. Of particular note, the importance of the EU’s main supplier, Italy, dropped from 19<br />

percent in 1997 to 17% percent in 2001. Other important EU suppliers are Germany (8%), France<br />

(7%) and Belgium (6%). Notably, China increased its share. China’s exports of metalwares to the<br />

EU grew by 34 percent from 97,000 tons to 130,000 tons between 1997 and 2001, giving China<br />

an import share of 31 percent on a volume basis, and 28 percent on a value basis. Other important<br />

Asian suppliers are Taiwan (4% of EU import value), India (3%) and Turkey (2%).<br />

Plasticware<br />

Despite the negative economic climate, the import of plasticware has shown an increase. In 2001,<br />

the import increased by 2 percent, totalling € 1.96 billion. In terms of volume the import of<br />

plasticware remained relatively stable, amounting to 523,500 tons. Looking at the plasticware<br />

<strong>market</strong> on a national level, we see that even in 2001, most countries showed an increase. Of the<br />

EU countries only Germany, Italy and Spain showed a decline. In 2001, the German <strong>market</strong><br />

dropped by 8 percent in value, on a volume basis, German imports decreased by more than 11<br />

percent. The Italian and Spanish import <strong>market</strong>s both have good positions in Figure 5.10,<br />

however this is mainly due to a considerable growth in the late nineties. In 2001, the Italian and<br />

Spanish <strong>market</strong> dropped by 13 and 15 percent in terms of volume. The import of the United<br />

Kingdom together with the import of the Netherlands grew by 8 and 5 percent respectively on a<br />

volume base. The French <strong>market</strong> remained rather stable in terms of volume in 2001.<br />

Figure 5.10 Relative attractiveness of EU-countries with respect to the import development of<br />

plasticware<br />

% growth 2001 in €<br />

40%<br />

35%<br />

30%<br />

Greece<br />

25%<br />

Denmark<br />

20%<br />

15%<br />

Netherlands<br />

Finland<br />

Belgium/ Luxembourg<br />

10%<br />

Ireland<br />

Sweden<br />

United Kingdom<br />

Portugal<br />

5%<br />

France<br />

Austria<br />

0%<br />

-15% -5% 5% 25% 45% Italy 65% 85%<br />

-10%<br />

Germany<br />

Spain<br />

-15%<br />

-20%<br />

% growth 1997 - 2001 in volume<br />

Source: Eurostat, 2002<br />

41


Origin of imports<br />

Although EU manufacturers still dominate the <strong>market</strong>, their position is steadily declining. In<br />

1997, the EU manufacturers accounted for 70 percent of the EU import and, five-years later, this<br />

share had dropped to 65 percent. Despite the fierce competition, mainly from China, which is the<br />

largest EU supplier of plasticware (15% of the total EU import in value), the EU manufacturers<br />

still play a dominant role in the EU <strong>market</strong>. The dominance of the EU manufacturers is mainly<br />

due to the “economies of scale”, which enable the manufacturers to produce at low cost. (See also<br />

chapter 4). In 2001, 65 percent of the total import derived from EU-countries. The most import<br />

suppliers in the EU are Spain (14% of the total EU import in value), Italy (10%), Germany (10%),<br />

France (9%) and the Netherlands (7%). Other important non-EU suppliers are the United States<br />

(4%), Taiwan (3%) and Poland (3%).<br />

Glassware<br />

In 2001, the EU import of glassware dropped by 2 percent in value terms, to a value of € 1.85<br />

billion. The imported volume amounted to 780,000 tons, representing a drop of 9 percent in<br />

comparison with 2000. Over the period between 1997 and 2001, the glassware <strong>market</strong> shows a<br />

growth trend, as volume increased by 18 percent.<br />

Looking at a national level, we see that only a few countries show growth in 2001. Germany and<br />

France together with the United Kingdom are the leading import <strong>market</strong>s, with shares of<br />

respectively 20, 12 and 15 percent. The UK, together with Ireland, ranks amongst the highest<br />

growth <strong>market</strong>s in the EU that year. The United Kingdom, however, shows an interesting<br />

development, as the imported value increased by 7 percent, whereas the volume dropped by<br />

almost 14 percent. The Belgium/ Luxembourg import also shows in interesting development, in<br />

2000, as the import increased by 34 percent, whereas in 2001, the import dropped by 28 percent.<br />

Over a longer period of time, the Netherlands shows the highest growth, but this growth occurred<br />

mainly in the late nineties. In 2000, the Dutch import even dropped by 13 percent on a volume<br />

basis, whereas, the value grew by 10 percent. In 2001, however the imported volume increased by<br />

a mere 3 percent. France and Spain also showed a growth in terms of volume, both import<br />

<strong>market</strong>s grew by 5 percent. The import of Germany and Italy declined by 5 and 3 percent that<br />

same year.<br />

Figure 5.11 Relative attractiveness of EU-countries with respect to the import development of<br />

glassware<br />

15%<br />

% growth 2001 in €<br />

Ireland<br />

10%<br />

United Kingdom<br />

Greece<br />

5%<br />

Finland<br />

Denmark<br />

France<br />

Austria<br />

Spain 0%<br />

Sweden<br />

Netherlands<br />

-15% -5% 5% 15% 25% 35% 45% 55%<br />

-5%<br />

Italy<br />

-10%<br />

Portugal Germany<br />

-15%<br />

Belgium/ Luxembourg<br />

-20%<br />

-25%<br />

% growth 1997 - 2001 in volume<br />

Source: Eurostat, 2002<br />

42


Origin of imports<br />

In total, the EU-countries accounted for 56 percent of the EU import on value basis. France is by<br />

far the most important glassware supplier in the EU. In 2001, the French accounted for 17 percent<br />

of the total EU glassware import. Other important EU suppliers are Germany (9%), Italy (8%)<br />

and the Netherlands (5%). The EU countries are slowly losing ground, especially to Eastern<br />

European countries like Poland (6%), Czech Republic (6%), Romania (2%) and Slovakia (2%).<br />

Also, Asian countries like China (8%) and Turkey (6%) are becoming increasingly important.<br />

The decline of the EU countries has two main explanations, firstly, the low-priced products made<br />

by manufacturers in non EU-countries And, secondly, EU manufacturers, like their American<br />

counterparts, shifting production to cheap regions in Eastern Europe and Asia.<br />

Porcelain & China<br />

In 2001, EU imports remained stable in terms of value, at € 839 million. The import volume<br />

amounted to 271,000 tons, indicating a small decline of 1 percen t in comparison with the<br />

previous year. Between 1997 and 2001, the total EU import on a volume basis increased by 33<br />

percent. This percentage however, gives a distorted picture because of the enormous growth of<br />

the British import <strong>market</strong>, which grew by 123 percent between 1997 and 2001. In 2001, the two<br />

biggest import <strong>market</strong>s, Germany (20% of total EU imports), and France (13%) showed<br />

increases, the latter only marginal. The German import value grew by 6 percent in 2001, the<br />

imported volume showed a small decline of 1 percent. France’s import in terms of volume<br />

dropped by 2 percent, that same year. The United Kingdom together with Ireland showed a<br />

tremendous growth. In the period between 1997 and 2001, Spain also developed to one of the<br />

EU’s leading porcelain & china <strong>market</strong>s. In 2001, however the <strong>market</strong> dropped by 3 percent in<br />

terms of value and 26 percent in terms of volume, making it the biggest decliner in volume terms<br />

of 2001.<br />

The United Kingdom together with the Netherlands showed a stunning growth in terms of volume<br />

in 2001, the Dutch import grew by 12 percent, the United Kingdom’s import even increased by<br />

more than 18 percent. The Italian import remained rather stable only growing by 2 percent.<br />

Figure 5.12 Relative attractiveness of EU-countries with respect to the import development of<br />

porcelain & china<br />

30%<br />

25%<br />

Ireland<br />

% growth 2002 in €<br />

20%<br />

15%<br />

Germany<br />

10%<br />

United Kingdom<br />

5%<br />

Netherlands Greece<br />

Denmark<br />

France<br />

0%<br />

Portugal<br />

-30% 20% Italy 70% 120%<br />

-5%<br />

Austria<br />

-10%<br />

Finland-15%<br />

Belgium/ Luxembourg<br />

-20%<br />

Sweden<br />

% growth 1997 - 2001 in volume<br />

Spain<br />

Source: Eurostat, 2002<br />

43


Origin of imports<br />

In 2001, 70 percent on volume basis and 56 percent in terms of value derived from non-EU<br />

destinations, indicating a polarization between inexpensive products, deriving mainly from China,<br />

and premium-end products deriving from EU-countries. In general, the importance of the EU<br />

countries is declining. In 1997, the EU-countries supplied 56 percent (on value basis) of the EU<br />

total import, whereas in 2001, this percentage had dropped to 44 percent. Within the EU,<br />

Germany, with a share of 16 percent is by far the biggest supplier, followed by the United<br />

Kingdom (5%), France (5%) and Belgium (3%). On a volume basis, the picture is totally<br />

different; Germany only supplies 8 percent of the EU import, followed by Italy (5%) and the<br />

Netherlands (5%), whereas China supplies 20 percent.<br />

Also, Eastern European countries play a major role in the EU porcelain & china <strong>market</strong>, mainly<br />

Poland (10%) the Czech Republic (10%) and Romania (3%). Other important suppliers are China<br />

(10% on value basis), Turkey (3%), Indonesia (3%), Thailand (2%) and Bangladesh (2%).<br />

Ceramicware<br />

The EU import of ceramicware has remained rather stable, both in value and in volume terms.<br />

Between 1997 and 2001, the imported volume only increased by 2 percent, amounting to 273,500<br />

tons. In 2001, imports represented a value of € 585 million. Overall, it appears that ceramicware<br />

is more popular in the Northern regions of the EU, reflected by the import size of countries like<br />

the Netherlands, Belgium, France, Germany and the United Kingdom. The latter is the biggest<br />

import <strong>market</strong> in the EU, accounting for 24 percent of the total EU imports. In 2001, imports of<br />

ceramicware by the United Kingdom grew by 14 percent, amounting to € 139 million. France, the<br />

second import <strong>market</strong> in the EU, showed a small decline of 3 percent that year. However, in the<br />

reviewed period between 1997 and 2001, French imports grew by 28 percent, representing the<br />

largest growth of all the EU-countries. Germany accounted for 15 percent of the EU imports.<br />

Between 1997 and 2001, German imports fell by 12 percent.<br />

In 2001, the imported volume of the United Kingdom grew by a stunning 36 percent, whereas the<br />

Spanish, German and Italian dropped by respectively 10, 8 and 6 percent. The French import<br />

remained rather stable.<br />

Figure 5.13 Relative attractiveness of EU-countries with respect to the import development of<br />

ceramicware<br />

25%<br />

20%<br />

% growth 2001 in €<br />

15%<br />

United Kingdom<br />

Netherlands<br />

10%<br />

Ireland<br />

Greece<br />

5%<br />

-35%<br />

0%<br />

Portugal<br />

-25% -15% -5% 5% 15%<br />

Finland Spain<br />

-5%<br />

Sweden<br />

France<br />

25% 35%<br />

Denmark<br />

Germany<br />

-10%<br />

Austria<br />

Belgium/ Luxembourg<br />

-15%<br />

Italy<br />

-20%<br />

% growth 1997 - 2001 in volume<br />

Source: Eurostat, 2002<br />

44


Origin of imports<br />

Like the china & porcelain import <strong>market</strong>, Asian countries dominate the ceramicware <strong>market</strong>. In<br />

2001, the non EU-countries accounted for 59 percent of the EU import on value basis and more<br />

than 71 percent on volume basis. The major difference, however, is that China alone (13% import<br />

share on a value basis) does not dominate the imports in terms of volume. Other Asian countries,<br />

like Thailand (12%), Malaysia (3%) and Taiwan (3%) also play an important role in supplying<br />

the EU ceramicware <strong>market</strong>. The position of Eastern European countries is also less strong than<br />

in the china & porcelain <strong>market</strong>. Romania (4% <strong>market</strong> share on a value basis) is the largest<br />

Eastern Europe supplier, followed by Poland (2%).<br />

Of the EU-countries, Spain (15%) together with the United Kingdom (12%) and Italy (11%) are<br />

the leading suppliers on a value basis. If we compare these figures with the volume shares, we see<br />

that the United Kingdom supplies high-end products. The United Kingdom’s import share in<br />

terms of volume is only 5 percent whereas its import share in terms of value is almost 12 percent.<br />

Cutlery<br />

The cutlery import is very sensitive to the economic climate, reflected by the negative growth in<br />

most EU-countries in 2001. However, in the period between 1997 and 2000, the EU import on a<br />

volume basis represented an impressive growth of 47 percent. In 2001, there was a turning point,<br />

as the imported volume decreased by 3 percent, the value even dropping by 7 percent, to 115,000<br />

tons and € 940 million respectively. As can be seen in Figure 5.12, Germany, United Kingdom<br />

and France are the main import <strong>market</strong>s in the EU, accounting for respectively 26, 17 and 11<br />

percent. In 2001, the United Kingdom together with Austria and Denmark were one of the few<br />

import <strong>market</strong>s to show any growth. The UK grew by 7 percent in terms of value and even 9<br />

percent in terms of volume. Over the reviewed period, Italy showed the most growth between<br />

1997 and 2001. In 2001 however, Italian imports dropped by 3 percent in value and 12 percent in<br />

volume.<br />

In volume terms the Germany, France and Spanish import dropped by 8, 10 and 11 percent<br />

respectively. The Dutch import showed an increase in volume of 7 percent, whereas the value of<br />

this import dropped by 2 percent.<br />

Figure 5.14 Relative attractiveness of EU-countries with respect to the import development of<br />

cutlery<br />

15%<br />

% growth 2001 in €<br />

10%<br />

United Kingdom<br />

5% Austria<br />

Belgium/ Luxembourg<br />

Denmark<br />

0%<br />

-15%<br />

-5%<br />

35%<br />

Greece<br />

Netherlands<br />

85% 135% Italy 185%<br />

Sweden<br />

-10%<br />

Ireland<br />

France<br />

Spain<br />

-15% Germany<br />

Finland<br />

-20%<br />

Portugal<br />

-25%<br />

-30%<br />

% growth 1997 - 2001 in volume<br />

Source: Eurostat, 2002<br />

45


Origin of imports<br />

The EU cutlery <strong>market</strong> is polarizing between high-end products deriving from EU-countries and<br />

cheap imports deriving from China. In 2001, China accounted for 55 percent of EU imports in<br />

terms of volume but just 37 percent on a value basis. In the reviewed period between 1997 and<br />

2001, the importance of the EU countries as suppliers of cutlery dropped. In that period, the<br />

import of cutlery deriving from EU countries increased by 21 percent whereas the import deriving<br />

from non-EU-countries increased from 55,100 tons to 86,800 tons, a growth of 58 percent.<br />

In 2001, the EU-countries only accounted for 32 percent of the EU import of cutlery. Germany is<br />

by far the most important supplier, with a 10 percent share of the total EU import on value basis<br />

and only 6 percent on volume basis, followed by Italy (5% of the EU import in terms of value),<br />

France (4%) and the Netherlands (4%). As it seems, not only the EU-countries felt the<br />

competition from China, as other Asian countries <strong>market</strong>s, South Korea (7%), Thailand (3%),<br />

Japan (2%) and Taiwan (2%) were also influenced by Chinese imports.<br />

Woodware<br />

The woodware import <strong>market</strong> is by far the smallest of all the table- & kitchenware segments in<br />

this <strong>survey</strong>, representing 2 percent of total EU table- & kitchenware imports. In 2001, the EU<br />

import of woodware grew by 3 percent to a value of € 183 million. On a volume basis, the import<br />

only showed a small growth of 1 percent, to 60,200 tons. The United Kingdom accounted for 28<br />

percent of the EU imports of woodware, making it almost twice as big as the second import<br />

<strong>market</strong>, Germany. Imports to the United Kingdom also showed a positive growth of 12 percent, to<br />

a value of € 52.6 million. The German import dropped by 8 percent, but in the years preceding<br />

2001, the import grew on average more than 4 percent annually. In the period between 1997 and<br />

2001, Italy also showed a healthy growth, as the imported volume grew 53 percent.<br />

Of the six countries highlighted, only the British import grew in terms of volume (19%). The<br />

import of other countries dropped between the 3 percent for Spain and even 27 percent for the<br />

Netherlands.<br />

Figure 5.15 Relative attractiveness of EU-countries with respect to the import development of<br />

woodware<br />

45%<br />

Ireland<br />

% growth 2001 in €<br />

35%<br />

Greece<br />

Austria<br />

25%<br />

15% United Kingdom<br />

5%<br />

Belgium/ Luxembourg<br />

France<br />

Italy<br />

Spain<br />

-15% -5% 5% 25%<br />

Denmark<br />

Netherlands Sweden 45% 65% 85% 105%<br />

-15%<br />

Germany<br />

Portugal<br />

Finland<br />

-25%<br />

% growth 1997 - 2001 in volume<br />

Source: Eurostat, 2002<br />

46


Origin of imports<br />

Thailand and China dominated the EU import <strong>market</strong> of woodware, together accounting for more<br />

than half of the EU imports in terms of volume. On a value basis, China and Thailand both<br />

account for 23 percent of the EU import. Other important Asian suppliers are Taiwan (3%) and<br />

Vietnam (3%). Eastern European countries also supply an important share of the EU imports;<br />

leading Eastern European countries are Poland (5%), Slovenia (3%), the Czech Republic (1%)<br />

and Romania (1%). The EU countries only account for 26 percent of the EU imports, of which<br />

the leading EU suppliers are Germany (4%), Belgium (4%), Italy (3%) and the Netherlands (3%).<br />

47


5.3 The role of Developing Countries<br />

This paragraph discusses the role of developing countries in the table- & kitchenware <strong>market</strong> in<br />

the EU. By developing countries, we mean the countries on the OECD DAC list, which can be<br />

found in Appendix 5.<br />

The role of developing countries in EU imports of table- & kitchenware increased considerably,<br />

as can be seen in Figure 5.16. In 2001, the imports deriving from developing countries rose by 5<br />

percent, reaching € 2.3 billion. In the reviewed period between 1997 and 2001, the import share<br />

of developing countries in total EU imports rose from 25 percent in 1997 to 31 percent in 2001,<br />

whereas the import share of most EU-countries declined, as also can be seen in Figure 5.16.<br />

Figure 5.16 Trends in EU-import by leading suppliers (in 1,000 tons)<br />

500<br />

450<br />

400<br />

350<br />

)<br />

tons (in 1,000<br />

300<br />

250<br />

200<br />

150<br />

100<br />

50<br />

0<br />

1997 1998 1999 2000 2001<br />

China Italy France Germany Developing Countries (excl. China)<br />

Source: Eurostat, 2002<br />

During the reviewed period, the import deriving from developing countries increased by 58<br />

percent in terms of volume. Some emerging economies in Asia, with natural resources and low<br />

labour costs, have set up their own table- & kitchenware industry, strongly dedicated to lowpriced<br />

exports. At the same time, many EU manufacturers have shifted their production to these<br />

countries to benefit from these same advantages. They combine their efficient and high-quality<br />

production systems with the low labour costs in these countries. This development, in turn, has<br />

offered the local manufacturers in developing countries a chance to copy the new technologies<br />

and production systems. Therefore, the quality of their products has improved considerably.<br />

Especially China and, to a lesser extent, Thailand have taken advantage of these developments<br />

and therefore pose an increasing threat to EU manufacturers.<br />

48


The other developing countries (excluding China and Thailand) are currently also expanding their<br />

exports, although it will take a long time for them to obtain a significant position in the<br />

international table- & kitchenware trade, because:<br />

• Most developing countries do not have a well-established table- & kitchenware industry.<br />

Production capacity, the level of technology, product innovations and variety in design<br />

are limited.<br />

• EU manufacturers continue to sub-contract to foreign manufacturers in Eastern European<br />

countries and China, which are more flexible in terms of meeting their specific<br />

requirements and, in the case of the Eastern European countries, are closer to the sales<br />

<strong>market</strong>.<br />

Eastern European countries such as Poland, Czech Republic, Romania and Hungary, though not<br />

considered to be developing countries, have also benefited from the outsourcing by EU<br />

manufacturers. Therefore, these countries are therefore considered to be the most important<br />

competitors of the developing countries. The manufacturers in Eastern European countries<br />

distinguish themselves by offering a higher quality, since they are not able to compete with the<br />

low Asian prices.<br />

These manufacturers in Eastern European countries will also benefit from joining the EU, mainly<br />

because no import duties are levied between EU-countries.<br />

Table 5.1<br />

Main developing country suppliers (share in % of imported value supplied by<br />

developing countries, 2001)<br />

Metalware China (77%), India (8%), Turkey (6%), Thailand (3%), Vietnam (1%),<br />

Indonesia (1%), Serbia & Montenegro (1%)<br />

Plasticware China (82%), Thailand (8%), Turkey (2%) Malaysia (2%), India (2%),<br />

Indonesia (1%), Slovenia (1%)<br />

Glassware China (42%), Turkey (35%), Slovenia (8%), Thailand (3%), India (3%),<br />

Indonesia (2%), Brazil (2%), Mexico (1%)<br />

Cutlery<br />

China (80%), Indonesia (8%), Vietnam (3%), Thailand (3%), India (2%), Brazil<br />

China & Porcelain<br />

(2%), Pakistan (1%)<br />

China (37%), Turkey (12%), Indonesia (11%), Thailand (9%) Bangladesh<br />

(8%), Sri Lanka (4%), India (3%), Tunisia (3%),<br />

Ceramicware Thailand (42%), China (30%), Malaysia (7%), Indonesia (4%), Turkey (4%),<br />

Vietnam (3%), Brazil (2%), Slovenia (1%)<br />

Woodware China (40%), Thailand (40%), Slovenia (5%), Vietnam (5%), Indonesia (3%),<br />

India (2%), Malaysia (1%), South Africa (1%)<br />

The importance of the developing countries in glassware is rising, as can be seen in Figure 5.16.<br />

It should however be noted that China and Thailand account for the lion’s share of this import.<br />

Woodware and cutlery are the main product groups imported from developing countries. Of these<br />

products, the bulk is imported from China, Thailand and Indonesia. Woodware is a known<br />

product deriving from developing countries, mainly because such products do not require difficult<br />

and money-consuming production processes.<br />

49


Figure 5.17 Share of developing countries in the total import of table- & kitchenware in the EU, by<br />

product, 1997-2001, % of imported value<br />

EU-total<br />

28%<br />

Glassware<br />

Plasticware<br />

Porcelain & China<br />

19%<br />

18%<br />

26%<br />

1997<br />

1999<br />

2001<br />

Ceramicware<br />

30%<br />

Metalware<br />

36%<br />

Cutlery<br />

45%<br />

Woodware<br />

57%<br />

0% 10% 20% 30% 40% 50% 60%<br />

Source: Eurostat, 2002<br />

Of the countries discussed in this <strong>survey</strong>, the United Kingdom imports the most from developing<br />

countries. In 2001, the import deriving from developing countries amounted to € 586.3 million.<br />

This indicates that, of the total import, 42 percent derives from developing countries. However,<br />

when we exclude the share of China, this percentage drops to 16 percent, indicating that China<br />

has a dominant position in the UK imports. Germany is the second importer in size. In 2001, the<br />

Germans imported € 565 million from developing countries (€ 169 million excluding China).<br />

France imports relatively the least from developing countries, since only 27 percent of their total<br />

import derives from these countries. If we exclude China, the import from developing countries<br />

only amounts to 9 percent. The Netherlands is the fourth largest importer. Of their total import,<br />

the Dutch import approximately 36 percent from developing countries, representing a size of<br />

€ 223 million. Spain was the smallest importer in 2001, as only a quarter of their import derived<br />

from developing countries.<br />

50


6 EXPORT<br />

Total exports by the EU<br />

The EU is the leading exporter of table- & kitchenwares in the world, with France, Italy and<br />

Germany being among the world’s top ten exporting countries. Looking at the destinations of the<br />

EU export, we can see that the intra-EU trade is declining. In 1992, the EU accounted for 65<br />

percent of the export. In 2001, this percentage had dropped to 55 percent. The drop of the intra-<br />

EU trade was mainly caused by the competition from cheap-labour countries in Asia and Eastern<br />

Europe, discussed earlier.<br />

Major destinations for EU export within the EU were Germany (11%), France (9%), United<br />

Kingdom (6%), the Netherlands (5%), Spain (5%), Italy (4%) and Belgium (4%). Important non-<br />

EU destination were; USA (14%), Japan (4%), Switzerland (4%), U.A. Emirates (2%) and<br />

Norway (2%)<br />

In 2001, the EU exports of table- & kitchenware showed a slight decline after growing by more<br />

than 9 percent in 2000. The total value of exports by EU countries amounted to € 8.6 billion in<br />

2001. In terms of volume, exports amounted to 2 million tons. In the five year period, between<br />

1997 and 2001, the EU export increased by almost 7 percent in value and only 2 percent in<br />

volume. France is the EU’s largest exporter, accounting for 22 percent of the EU exports in 2001:<br />

€ 1.85 billion and 506,000 tons. France is followed by Italy (20% of EU exports in value),<br />

Germany (17%), Belgium (9%) and the United Kingdom (8%). Due to negative economic<br />

developments, exports of most EU-countries experienced a decline or remained stable in 2001.<br />

However between 1997 and 2001, the Netherlands, Ireland and Denmark increased their export.<br />

Figure 6.1<br />

Total exports of table- & kitchenware into the EU, 1999-2001, in € millions<br />

2,000<br />

1,800<br />

1,600<br />

1,852<br />

1,741<br />

1,484<br />

1999<br />

2000<br />

1,400<br />

2001<br />

1,200<br />

1,000<br />

800<br />

751<br />

710<br />

600<br />

400<br />

200<br />

423<br />

377<br />

333 315<br />

190 179<br />

129<br />

48 44 29<br />

-<br />

France<br />

Italy<br />

Germany<br />

Belgium<br />

United Kingdom<br />

Netherlands<br />

Spain<br />

Austria<br />

Portugal<br />

Sweden<br />

Denmark<br />

Ireland<br />

Luxembourg<br />

Finland<br />

Greece<br />

Source: Eurostat, 2002<br />

51


Glassware (31% of total EU export) was the most important table- & kitchenware segment<br />

exported by the EU, followed by metalware (23%), plasticware (19%), porcelain & china (11%),<br />

ceramicware (8%), cutlery (8%) and woodware (1%). In the reviewed period, metalware became<br />

more important for the EU export, explained by the fact that because of the increasing<br />

competition, EU manufacturers turned to the more complex products like metalware. These<br />

products require high-scale technical production processes (see also Chapter 4).<br />

France<br />

France, the largest EU exporter, controlled a 22% share of all table- & kitchenware exported from<br />

the EU. In 2001, the export reached a value of € 1.85 billion and a volume of 506,000 tons. In the<br />

reviewed period, extra-EU exports became increasingly important as, between 1997 and 2001, the<br />

French extra-EU export grew by 40 percent in value, whereas the intra-EU export only grew by 8<br />

percent.<br />

As can be seen in Chapter 4, France is known for its glassware, which is also reflected in the<br />

export figures. Glassware accounts for more than 50 percent of the French export of table- &<br />

kitchenware. Other important export products were metalware (19%), plasticware (13%),<br />

porcelain & china (7%), cutlery (5%), and ceramicware (4%).<br />

In 2001, around 47% of France’s total exports went to other EU countries, with Germany (10%),<br />

Italy (7%), United Kingdom (7%) and Belgium being the leading destinations within the EU. The<br />

United States (15%), U.A. Emirates (5%), Japan (5%) and Switzerland (3%) were the major non-<br />

EU destinations.<br />

United Kingdom<br />

In 2001, the United Kingdom exported 105,000 tons of table- & kitchenware with a total value of<br />

€ 710 million, or 8% of total EU exports. Between 1997 and 2001, the UK export decreased by<br />

22% in terms of value, while the volume declined by 34%, which partly can be attributed to the<br />

strength of the Pound Sterling, which made exports relatively expensive for other countries.<br />

By far the most important product groups exported by the British are ceramicware and china &<br />

porcelain, which together accounted for 55 percent of the table- & kitchenware exports. Other<br />

export products were plasticware (18%), glassware (10%), metalware (9%), cutlery (8%) and<br />

woodware (1%).<br />

In 2001, around 48% of the British exports went to other EU-countries, with Ireland (17%), the<br />

Netherlands (7%), Germany (5%) and Italy (5%) being the leading destinations within the EU. Of<br />

the non-EU destinations, the United States is by far the most important, accounting for 21 percent<br />

of the British exports. Other important non-EU destinations are Japan (9%), Canada (4%) and<br />

Australia (3%).<br />

Italy<br />

Italy is the second largest EU exporter of table- & kitchenware controlling one fifth of all table-<br />

& kitchenware exported from the EU. In 2001, the export reached a value of € 1.74 billion and a<br />

volume of 492,000 tons. In the five-year period between 1997 and 2001, Italy’s export increased<br />

by almost 7 percent in value but only 2 percent in volume. In 2001, despite the negative economic<br />

climate, the export increased by 3 percent. This was mainly caused by the positive development<br />

in the export of metalware. In the same period, the volume dropped by 2%.<br />

The most important export product was metalware, which accounted for more than 40 percent of<br />

the total exports. Other export products were glassware (23%), plasticware (16%), ceramicware<br />

(10%), cutlery (5%), porcelain & china (5%) and woodware (1%). During the reviewed period<br />

metalware and plasticware became increasingly important, especially at the expense of glassware.<br />

In 2001, around 48% of the Italian exports went to other EU-countries, with Germany (12%),<br />

France (11%), United Kingdom (6%) and Spain (6%) being the leading destinations. Of the non-<br />

52


EU destinations, the United States is by far the most important, accounting for 16 percent of the<br />

Italian export. Other important non-EU destinations are Switzerland (4%), Japan (3%), Canada<br />

(2%), Russia, (2%), Croatia (2%), U.A. Emirates (1%) and Australia (1%),<br />

Germany<br />

In 2001, Germany exported 252,000 tons of table- & kitchenware with a total value of € 1.48<br />

billion, or 17% of total EU exports. Between 1997 and 2001, German exports increased by 12%<br />

in terms of value, the volume increased by 11%. However in 2001, the German export was down,<br />

by 3 percent in value.<br />

Glassware accounted for 28 percent of the table- & kitchenware exported by Germany, followed<br />

by porcelain & china (21%), which makes Germany the leading exporter of porcelain & china in<br />

the EU. Metalware, with a share of 20 percent is the third product group in size, followed by<br />

plasticware (15%), cutlery (14%), ceramicware (2%) and woodware (1%).<br />

In 2001, around 51% of the German exports went to other EU-countries, with Austria (9%),<br />

France (8%), the Netherlands (7%), Italy (6%) and the United Kingdom (5%) being the leading<br />

destinations within the EU. Of the non-EU destinations, the United States is by far the most<br />

important, accounting for 14 percent of the German exports. Other important non-EU destinations<br />

are Switzerland (8%), Czech Republic (4%), and Japan (4%).<br />

Spain<br />

In 2001, Spain exported 144,000 tons of table- & kitchenware with a total value of € 377 million,<br />

or 4% of total EU exports. In terms of value, Spain is only the eleventh exporter in size, whereas<br />

in volume Spain is fifth exporter, just after Belgium, making Spain in terms of volume a bigger<br />

exporter than the United Kingdom and the Netherlands. Between 1997 and 2001, Spain’s exports<br />

increased by 17% in terms of value, the volume even increased by 22 percent. After a stunning<br />

growth of more than 16 percent in 2000, Spanish exports dropped by 3 percent in 2001. The<br />

export volume however showed a totally different picture as, both in 2000 as in 2001, the export<br />

in terms of volume dropped.<br />

Glassware accounted for 31 percent of the table- & kitchenware exported by Spain, followed by<br />

metalware (27%), plasticware (24%), cutlery (9%), porcelain & china (5%), ceramicware (3%)<br />

and woodware (1%).<br />

In 2001, around 59 percent of the Spanish exports went to other EU countries, with France being<br />

the leading destination, with a share of 21 percent, followed by Portugal (12%), Germany (9%)<br />

Italy (6%). Of the non-EU destinations, the United States is by far the most important, accounting<br />

for 9 percent of the Spanish export. Other important non-EU destinations are Mexico (2%), Czech<br />

Republic (1%), Cuba (1%) and Canada (1%).<br />

The Netherlands<br />

The Netherlands exported a total volume of 107,000 tons of table- & kitchenware, valued at € 423<br />

million, in 2001. Between 1997 and 2001, Dutch exports increased by 14% in value, due to the<br />

increasing importance of the glassware export. In 2001, like in most other EU-countries, there<br />

was a turning point, both the exported volume as well as the value dropped by respectively 5 and<br />

3 percent.<br />

In 2001, glassware accounted for 27% of total Dutch table- & kitchenware exports, followed by<br />

plasticware (26%), metalware (22%), cutlery (10%), porcelain & china (10%), ceramicware (3%)<br />

and woodware (1%).<br />

53


The greater part of these exports (79%) went to other EU <strong>market</strong>s; this can partly be explained by<br />

the fact that the Netherlands is a major trading nation. A lot of EU imports go through the port of<br />

Rotterdam, one of the biggest harbours in the world. This makes the figures concerning the Dutch<br />

imports and exports highly questionable.<br />

Germany accounts for more than a quarter of the Dutch exports, followed by Belgium (17%), the<br />

United Kingdom (9%) and France (9%). Of the non-EU destinations Japan with 4 percent leads,<br />

followed by the United States (3%), Switzerland (1%) and Poland (1%).<br />

54


Overview<br />

In the figure below we have presented a graphic summary of Chapters 3 to 6. The size of each<br />

circle represents the size of the <strong>market</strong> in terms of consumption. As can be seen in this figure,<br />

France together with the United Kingdom are the leading <strong>market</strong>s in terms of consumption size.<br />

On the horizontal axis, lies the trade balance, which is the difference of the export minus the<br />

import. Of the six countries discussed in this <strong>survey</strong>, only Italy and France have a positive trade<br />

balance (for accurate numbers, refer the table in the report summary). The vertical axis represents<br />

the percentage of the import deriving from developing countries. In the figure below, the<br />

horizontal axis crosses the vertical axis at 28 percent, indicating that the EU-countries on average<br />

import 28 percent of their total import from developing countries. As can be seen, the United<br />

Kingdom, together with The Netherlands and Germany, import more than the EU average from<br />

developing countries. In 2001, the United Kingdom imported 42 percent of its import from<br />

developing countries. When looking at the variables in this figure, the upper-left corner represents<br />

the most attractive table- & kitchenware <strong>market</strong>s for developing countries in terms of import<br />

share and trade balance. In the figure below, we have also mentioned the <strong>market</strong> growth of the<br />

countries reviewed. The United Kingdom together with Italy, are the star performers, growing<br />

respectively 30 and 28 between 1998 and 2002.<br />

Graphic summary Chapters 3-6: Market attractiveness on basis of <strong>market</strong> size, import share<br />

deriving from developing countries, trade balance and <strong>market</strong> growth 1998-2002<br />

United Kingdom<br />

growth 30%<br />

Germany<br />

growth 2%<br />

Trade balance in € million<br />

Netherlands<br />

growth 14%<br />

50%<br />

45%<br />

40%<br />

35%<br />

30%<br />

Italy<br />

growth 28%<br />

-1000 -800 -600 -400 -20025%<br />

0 200 400 600 800 1000 1200 1400<br />

Spain<br />

growth 16% 20%<br />

15%<br />

France<br />

growth 8%<br />

10%<br />

5%<br />

0%<br />

% of import from DC<br />

Source: Eurostat & Euromonitor, 2002/ <strong>2003</strong><br />

The attractiveness of an export <strong>market</strong> is not solely determined by the factors discussed in the<br />

overview. Factors like trade structures, consumer preferences and tastes are also very important<br />

for successful export <strong>market</strong>ing. An exporter should also note the different requirements laid<br />

down in legislation and restrictions of the export <strong>market</strong>. In Chapter 9 of this <strong>survey</strong>, the<br />

requirements of access are discussed.<br />

55


7 TRADE STRUCTURE<br />

Trade or distribution channels maybe described as the “paths goods – and title to these goods –<br />

follow from manufacturer to consumer”, according to the centre for Excellence in Financial<br />

Management. This chapter will analyse the distribution chain for the table- & kitchenware<br />

<strong>market</strong>. We will deal with the major sales intermediaries, like agents, wholesalers, etc, and their<br />

role in the distribution chain. Furthermore, the main retailers of table- & kitchenware in the EU<br />

are also discussed.<br />

7.1 EU trade channels<br />

The trade and the distribution systems in the European Union are in a permanent state of<br />

development. According to a <strong>survey</strong> of the International Trade Centre, one of the noticeable<br />

developments concerning the EU-trade channels is the shortening of the distribution chain. This is<br />

the result of vertical integration and scaling up. Intermediaries are being cut out. The main<br />

motivations are to exercise better control and cut costs. Manufacturers, like for example<br />

Waterford-Wedgwood, are selling their products through manufacturer-owned brand stores and<br />

through the internet.<br />

Another related development, which also contributes to a shortening of the chain, is the rise of<br />

private labelling. IKEA, for example, has its own range of cheap, good quality table- &<br />

kitchenware, which it sells through its own outlets. In addition, probably the most far-reaching<br />

development in the changing distribution systems is e-commerce. E-commerce companies, which<br />

are selling table- & kitchenware, tend to offer competitive prices on popular brands, making the<br />

price competition on the table- & kitchenware <strong>market</strong> more intensive. Furthermore, the internet<br />

allows consumers to compare prices of different suppliers. It is obvious that the internet prompted<br />

considerable changes in the trade and distribution systems in the world; but it will not replace the<br />

traditional systems, only add to them.<br />

7.2 Intermediaries<br />

Table- & kitchenwares are distributed through many different channels, partly because they come<br />

in so many different price ranges and functional varieties. Figure 7.1 shows the basic functions of<br />

the various kinds of sales intermediaries, agents, importers, wholesalers and retailers. The thick<br />

lines indicate the most important trade flows.<br />

In general, there are four ways in which products reach the end-consumer. First, manufacturers<br />

can directly supply the consumers. There are many variants on this theme. It could be through<br />

manufacturer-owned brand stores, like the Wedgwood stores. Also, e-commerce offers a direct<br />

link between a manufacturer and the consumer. Other variants are door-to-door selling and partyplan<br />

selling. A brand which is famous for its party-plan selling is Tupperware. Tupperware<br />

organises parties which combine a "ladies’ night out" with tips on cooking and food preparation<br />

with the selling of their products. According to Tupperware, every two seconds a Tupperware<br />

party starts somewhere in the world. These parties offer the company an ideal way to sell their<br />

products.<br />

The second way is called the manufacturer/retailer/end-consumer route. This distribution route is<br />

known as the short channel and is most common in the table- & kitchenware <strong>market</strong>. Because the<br />

retailers’ margins in the table- & kitchenware <strong>market</strong> are quite small, retailers tend to bypass the<br />

wholesalers as much as possible and import or purchase directly from the (domestic)<br />

manufacturers, regardless of whether they are independent retailers or part of a large enterprise.<br />

56


The third option is called the long channel, which implies that products go from the manufacturer<br />

through wholesalers to retailers and finally to the end-consumers. The main advantage of adding<br />

a wholesaler level is that smaller manufacturers do not have to have the resources or skills to<br />

reach a wide range of retailers. The same applies for small retailers; they can buy a diverse range<br />

of products of different brands from the wholesalers, instead of buying small quantities from<br />

different manufacturers. The wholesaler offers a focal point for both sides, by buying in bulk<br />

from manufacturers, then splitting this into manageable proportions for retailers. Wholesalers do<br />

not normally deal with end-consumers but with other intermediaries, usually retailers (see<br />

paragraph 7.3). The wholesaler purchases from manufacturers and takes legal title to the products<br />

as well as taking physical possession of them. He stocks at his own risk. The mark-up of the<br />

wholesaler is approximately 20-30 percent.<br />

In France and Italy, the wholesalers play an important role in the distribution of table- &<br />

kitchenwares. In France, wholesalers make up about one third of the table- & kitchenware sales.<br />

In Italy, there is a major difference between the north and the south, both in social and economic<br />

terms, with the North being much more affluent and brand conscious than the more priceconscious<br />

South. This makes it difficult for large retailers to centralize their purchasing.<br />

Figure 7.1<br />

Trade and distribution channels for table- & kitchenware<br />

Domestic<br />

Manufacturers<br />

Overseas<br />

Manufacturers<br />

Exporters<br />

Agents/ sales offices<br />

Importers<br />

Wholesalers<br />

Retailers (incl. department stores, independents, etc), non-store<br />

retailers (incl. Mail-order, e-commerce, TV-shopping<br />

Consumers<br />

Main distribution flow<br />

Secondary distribution flow<br />

The last variant, adds another intermediary to the distribution chain, namely the agent. This route<br />

is mostly used when a manufacturer tries to enter a relatively unknown export <strong>market</strong>. The agent<br />

is an independent intermediary between the (foreign) manufacturer and the retailer or retail<br />

organisation. The agent has the legal authority to act on behalf of the manufacturer; they do not<br />

take possession of the products. When selling products, they generally receive a commission from<br />

the manufacturer. The agent (or sales representative) covers a limited geographical area. Agents<br />

usually have a good knowledge of distribution structures and of consumer behaviour.<br />

57


The level of the commission depends on a number of factors, including the turnover rate of the<br />

product concerned, but it averages an estimated 5 to 10 percent of turnover. Most agents represent<br />

more than one manufacturer, although competition is avoided. More and more agents are starting<br />

to sell from stock, to meet their clients’ short-term demands.<br />

7.3 Retailers of table- & kitchenware<br />

In the last decade, the European table- & kitchenware retail <strong>market</strong> has undergone a lot of<br />

changes, as an increasing share of products is sold through branch-foreigners. The traditional<br />

retail formats are under pressure from new formats. Grocery multiples nowadays offer a wide<br />

range of table- & kitchenwares. Relatively new retail formats, like for example IKEA, are making<br />

their way into the table- & kitchenware <strong>market</strong>. These factors have led to an increasing<br />

competition amongst the table- & kitchenware retailers.<br />

The retail <strong>market</strong> discussed in this paragraph is<br />

broken down into five channels; grocery<br />

multiples, mixed and independent stores,<br />

department stores, mail-order and other (incl.<br />

catalogue showrooms). Because statistical<br />

information concerning the distribution is not<br />

commonly available, Euromonitor is the only<br />

research agency which collects such data.<br />

However, they do not report them on a yearly<br />

basis. The figures used in this paragraph are<br />

from a forecast made in 1997 for the year 2000.<br />

The figures are outdated; they provide a useful<br />

insight into the different retail channels.<br />

Mixed & independent stores<br />

This category contains a great variety of retail<br />

formats, including independent specialists and<br />

interior design specialists. Furthermore, also<br />

most EU furniture specialists offer a limited<br />

range of table- & kitchenware. The independent<br />

specialists are losing ground because of the<br />

intensive competition. However, in countries<br />

with an underdeveloped infrastructure, these<br />

types of retailers hold strong positions.<br />

Figure 7.2<br />

Other (incl.<br />

catalogue<br />

showrooms)<br />

14%<br />

Grocery<br />

Multiples<br />

21%<br />

Retail channels of table-&<br />

kitchenware in the EU by retail<br />

formats, 2000<br />

Mail-order<br />

4%<br />

Department<br />

St ores<br />

22%<br />

Mixed &<br />

Independent<br />

stores<br />

39%<br />

Source: Euromonitor, 2000<br />

Department stores<br />

Traditionally, department stores were one of the few retailers located in city centres which offer a<br />

wide range of table- & kitchenware. The growth of new formats, like for example IKEA, which<br />

offers an extensive range of cheap products, has put pressure on the <strong>market</strong> share of the<br />

traditional department stores. These more specialised companies have a more modern and<br />

fashionable image. Also, the internet has posed an increasing threat for department stores. Despite<br />

these negative developments, department stores still account for a substantial share of table- &<br />

kitchenware sales. Most department stores offer a wide range of both major brands and private<br />

label. They are mostly situated in the mid- and high-priced segment of the table- & kitchen<br />

<strong>market</strong>.<br />

Grocery multiples<br />

Super<strong>market</strong>s and hyper<strong>market</strong>s are increasingly tapping into the table- & kitchenware <strong>market</strong>.<br />

The influence of cheap imports from Asia and Eastern Europe have increased the possibilities for<br />

the formats like grocery multiples, to sell table- & kitchenwares in their outlets. Super<strong>market</strong>s<br />

mostly offer a limited range of table- & kitchenware, such as mugs and other small household<br />

products. Hyper<strong>market</strong>s however, sell a more comprehensive range of table- & kitchenwares.<br />

58


Both super<strong>market</strong>s and hyper<strong>market</strong>s allow more and more shelf space for non-food articles like<br />

compact discs, table linen, napkins, candles, pots and pans, tableware, cutlery and other kitchen<br />

utensils. According to an article in Tdctrade, this is mainly because non-food products offer better<br />

margins than the standard grocery lines. Furthermore, super<strong>market</strong>s and hyper<strong>market</strong>s mostly<br />

position table- & kitchenware as impulse purchases through cross merchandising with core<br />

grocery items. For example, woks are displayed next to prepared stir-fry vegetables, sauces and<br />

noodles.<br />

Mail-order<br />

This distribution channel only plays a minor role in the sales of table- & kitchenware although in<br />

countries like, for example, France, Germany and the United Kingdom, this channel of<br />

distribution shows substantial sales figures. Mail-order houses send illustrated catalogues of their<br />

merchandise to prospective customers, who can do their shopping at home, rather than visiting a<br />

store. All that has to be done is to fill out an order form and mail it or place the order by<br />

telephone or via the internet and the product(s) are sent to the customers’ home within a couple of<br />

days. Mail-order houses operate mainly in the low and middle ranges regarding price, quality and<br />

design.<br />

E-commerce<br />

In 2002, the EU online spending totalled a<br />

value of € 19.6 billion, which figure will<br />

grow explosively in the near future. The<br />

growing e-commerce <strong>market</strong> will also<br />

trigger the importance of this channel for<br />

the sales of table- & kitchenware. At the<br />

time of writing, there are profound<br />

differences within the selected EU<br />

<strong>market</strong>s. According to Euromonitor,<br />

French retailers sold more than € 50<br />

million online, making France the leading<br />

internet retailer of table- & kitchenwares.<br />

Table 7.1 Internet retail sales of table- &<br />

kitchenware, 2001-2002, in € millions<br />

(excl. cookware, bakeware, etc)<br />

2001 2002<br />

France 28,2 50.6<br />

United Kingdom 4,1 4,8<br />

Italy 0,4 0,4<br />

Germany 2,2 2,4<br />

Spain 0,4 0,8<br />

Netherlands 11,6 17,8<br />

Source: Euromonitor, <strong>2003</strong><br />

Several manufacturers like Richard Ginori and Waterford-Wedgwood are selling their products<br />

directly through the internet. Also, licensed third-parties selling through the internet, is becoming<br />

common practice in the table- & kitchenware <strong>market</strong> nowadays.<br />

Direct <strong>market</strong>ing<br />

Direct <strong>market</strong>ing is rapidly becoming an important method of distribution. A good example of<br />

direct <strong>market</strong>ing is the “selling party”, where manufacturers demonstrate their collections and<br />

where customers can buy directly from the manufacturer. One of the best examples of a brand<br />

which is sold through this method is “Tupperware”. Through the so called Tupperware parties,<br />

the products of this brand are sold. Because of the cost involved in direct <strong>market</strong>ing activities, this<br />

channel is particularly suited for the better quality and more expensive products (See also<br />

Paragraph 7.2).<br />

Others<br />

This channel includes formats like factory outlets, catalogue showrooms and discounters. A few<br />

major manufacturers sell their products through self-owned outlets. These factory outlet centres,<br />

which are already very popular in the USA and in some European countries, like France,<br />

Germany and the United Kingdom, are situated outside the city centre. Here, manufacturers of,<br />

mostly known, brands offer surplus stock, remnants, last year’s collection or products with small<br />

fabrication faults. By leaving out intermediary traders, costs can be reduced for the manufacturer.<br />

For consumers, the factory outlets offer branded table- & kitchenwares at lower prices.<br />

59


Discounters are another important format in this group. These retailers often operate from lowrent<br />

locations. Low-price with no-frills is the most important driver in this concept. This format is<br />

becoming increasingly important. The current recession has been the main trigger for the success<br />

of this type of format.<br />

7.4 Retail channels per country<br />

In this paragraph, we will discuss the different national retail <strong>market</strong>s. Furthermore, the leading<br />

retailers of table- & kitchenware per country are also discussed. This will include national as well<br />

as international companies. According to Euromonitor, the majority of the European table- &<br />

kitchenware retailers are limited to their own national <strong>market</strong> and neighbouring countries. This<br />

group includes retailers like Allders, El Corte Inglés, John Lewis and Vendex. A company which<br />

has achieved an international position is IKEA. Also, some French retailers like Carrefour and<br />

Pinault-Printemps-Redoute have built a more international position.<br />

Figure 7.3 Retail channels of table-& kitchenware in the EU-countries by retail formats, 2000<br />

100%<br />

80%<br />

30%<br />

15%<br />

25%<br />

10%<br />

40%<br />

21%<br />

60%<br />

40%<br />

20%<br />

0%<br />

44%<br />

37%<br />

10%<br />

38%<br />

47%<br />

10%<br />

14%<br />

20%<br />

38%<br />

28% 2%<br />

9%<br />

15% 3%<br />

3% 2%<br />

17%<br />

30%<br />

4%<br />

9%<br />

28%<br />

9%<br />

4%<br />

38%<br />

Hyper<strong>market</strong>s &<br />

Super<strong>market</strong>s<br />

Mixed & Independent<br />

Retailers<br />

Department Stores<br />

Mail-order<br />

Others<br />

France<br />

United<br />

Kingdom<br />

Italy<br />

Germany<br />

Spain<br />

Netherlands<br />

Source: Euromonitor, 2000<br />

France<br />

According to Mintel, France has a mature retail <strong>market</strong>, with a high level of out-of-town<br />

shopping. This is caused by the popularity of hyper<strong>market</strong>s like Carrefour, which has 214 outlets.<br />

In 2001, there were approximately 1.185 hyper<strong>market</strong>s in the whole of France with an average<br />

size of 5,733 square metres. These hyper<strong>market</strong>s are becoming more and more important as retail<br />

outlets for table- & kitchenware. As department stores cannot compete on price, manufacturers<br />

often produce special up-<strong>market</strong> ranges of table- & kitchenwares for department stores and<br />

specialists, and cheaper ranges for hyper<strong>market</strong>s. Large stores specialised in household<br />

equipment such as IKEA and Habitat, are also becoming more popular. This is mainly due to<br />

their wide range of fashionable and good-quality products at reasonable prices. In Table 7.2, you<br />

can see an overview of the most important retailers of table- & kitchenware in France.<br />

60


Table 7.2 France major retailers selling table- & kitchenware, in number of outlets, 2001/2002<br />

Department stores Outlets Furniture stores Outlets Hyper<strong>market</strong>s Outlets<br />

Galeries Lafayette/<br />

80 Conforma 135 Carrefour 214<br />

Nouvelles Galeries But 239 Centres E Leclerc 391<br />

Le Printemps 29 Ikea 12 Auchan 118<br />

Bazar de l' Hotel de Ville 19 Fly 125 Géant 109<br />

Le Bon Marche 1 Discounters<br />

Lidl<br />

959 Super<strong>market</strong>s<br />

Variety stores Aldi Marche 415 Intermarché 1,631<br />

Monoprix/ Prisunic 284 ED 459 Champion 1,003<br />

Tati 30 Leader Price 339 Super U 558<br />

Netto 286 Atac 260<br />

Le Mutant 207 Casino 433<br />

Source: LSA Atlas, 2002/ Panorama-Trade Dimensions, 2002/ Mintel Retail Intelligence, 2002/<br />

Euromonitor, 2002<br />

United Kingdom<br />

The United Kingdom retail <strong>market</strong> for table- & kitchenware is a fiercely competitive <strong>market</strong>. As<br />

in most other EU countries, mixed & independent retailers, hyper<strong>market</strong>s and super<strong>market</strong>s<br />

account for a large share of British table- & kitchenware sales. Hyper<strong>market</strong>s and super<strong>market</strong>s<br />

are prominent in the distribution of table- & kitchenware for every day use. Hyper<strong>market</strong>s and<br />

super<strong>market</strong>s are selling an increasing proportion of table- & kitchenware, like for example<br />

cookware and bakeware. Mail-order houses are also very active in the UK <strong>market</strong> especially in<br />

the sector of cookware, bakeware and the kitchen knives sector.<br />

Table 7.3 United Kingdom’s major retailers selling table- & kitchenware, in number of outlets,<br />

2001/2002<br />

Department stores Outlets Furniture stores Outlets Hyper<strong>market</strong>s Outlets<br />

John Lewis 25 Argos 472 Asda/ Asda-Wal-Mart 245<br />

Debenhams 97 Ikea 11 Tesco Extra 41<br />

House of Frazer 52 MFI Furniture 186 Savacentre 59<br />

Allders 43 Courts 100<br />

Selfridges 2 Super<strong>market</strong>s<br />

Discounters Tesco/ Tesco Metro 613<br />

Variety stores Kwik Save 734 Sainsbury's 384<br />

Marks & Spencer 303 Aldi 250 Safeway 465<br />

Big W/ Woolworths 797 Lidl 290 Morrisons 110<br />

Littlewoods 118 Netto 220 Somerfield 585<br />

Peacocks 312 Iceland 766<br />

Source: Mintel Retail Intelligence 2002/ Euromonitor, 2002<br />

Italy<br />

Italy has an obvious North-South divide in both social and economic terms, with the North being<br />

much more affluent and brand-conscious than the more price-conscious south. The retail business<br />

reflects this divide. Most modern retail developments, like for example hyper<strong>market</strong>s, are located<br />

in the Northern and central part of the country.<br />

The Italian retail <strong>market</strong> is one of the largest in Europe, accounting for more than 700,000 retail<br />

outlets in 2001. This number increased by more than 5 percent in the five-year period between<br />

1997 and 2001. The structure of Italian retail activity is highly fragmented and dominated by<br />

small independent businesses. Mixed & Independent retailers make the lion’s share of the table-<br />

& kitchenware sales. This also explains the importance of wholesalers in Italy. According to<br />

Tdctrade, the <strong>market</strong> is steadily shifting, as multiples like Kasanova, are becoming increasingly<br />

61


important at the expense of these small independent businesses, especially in the Northern part of<br />

the country.<br />

Table 7.4 Italy’s major retailers selling table- & kitchenware, in number of outlets, 2001/2002<br />

Department stores Outlets Furniture stores Outlets Hyper<strong>market</strong>s Outlets<br />

Coin 83 Divani & Divani 130 Ipercoop 52<br />

Il Gigante 8 Chateau d'ax Spa 11 Auchan/ Citta Mercato 35<br />

La Rinascente 17 Ikea 7 Carrefour/GS/Mega Fresco 37<br />

Ferri 287 Mercatone Uno 33 VeGe 50<br />

Regina 45 Super<strong>market</strong>s<br />

Discounters Coop 1,264<br />

Variety stores VeGe 803 Cri/ Sigma 1,234<br />

Upim 146 Lidl 206 Conad 1,540<br />

La Standa 200 In's 196 Carrefour/ GS 301<br />

Ld 211 Sisa 1,500<br />

Di Co 203 A & O 555<br />

Source: Mintel Retail Intelligence, 2002/ Euromonitor, 2002<br />

Germany<br />

In Germany, mixed & independent retailers and department stores make most of the table- &<br />

kitchenware sales. This is mainly because of the greater proportion of up<strong>market</strong> products, such as<br />

bridal gifts, purchased via these outlets. According to research agency Mintel, the German retail<br />

<strong>market</strong> is dominated by domestic groups. This is mainly because of the strength of domestic<br />

groups, high operational costs and restrictions and limitations on trading hours. IKEA and Wal-<br />

Mart are the only two foreign companies which have a significant <strong>market</strong> share of the German<br />

table- & kitchenware <strong>market</strong>. More than 20% of IKEA’s total turnover is earned in Germany.<br />

Germany is also home to the world’s largest mail-order company, the OTTO Trading Group (also<br />

the 2nd largest E-Tailer worldwide).<br />

Table 7.5 Germany’s major retailers selling table- & kitchenware, in number of outlets, 2001/2002<br />

Department stores Outlets Furniture stores Outlets Hyper<strong>market</strong>s Outlets<br />

Alterhaus/<br />

KaDeWe/Karstadt/<br />

350 Ikea 27 Real 277<br />

Wertheim Porta 86 Kaufland/Kaufmarkt 258<br />

Galeria Kaufhof 148 Segmuller 10 Marktkauf 108<br />

Woolworth 358 Mobel Walther 31 Extra 500<br />

Marks & Spencer 2 Super<strong>market</strong>s<br />

Variety stores<br />

Discounters 1,525<br />

HL/ Akzentra/ Minimal/<br />

Aldi 3,560 Rewe-Nahkauf/ Rewe-der<br />

Marktkauf 48 Lidl 2,048 Supermarkt<br />

Emotions/Lust for Life 5 Penny Markt 2,434 E-Aktiv markt/E-frisch/E- 1,490<br />

Kaufcenter/ Kaufhalle/ 11 Plus 2,412 N<strong>eu</strong>kauf/ Edeka Markt<br />

Multistore Norma 1,130 Spar/ Superspar 3,048<br />

Source: Mintel Retail intelligence 2002/ Euromonitor, 2002<br />

Spain<br />

Because of the financial strength and competitive pricing of other retail formats like<br />

hyper<strong>market</strong>s, many small independent retailers in Spain went out of business, which caused the<br />

total number of outlets in Spain to drop by more than 4 percent over the reviewed period. This<br />

trend is forecasted to continue. Hyper<strong>market</strong>s, such as Al Campo and Carrefour, and<br />

super<strong>market</strong>s are increasingly prominent in the distribution of table - & kitchenware for everyday<br />

use. In Spain, these distribution channels accounted for approximately 40 percent of retail sales<br />

by value.<br />

62


Table 7.6 Spain’s major retailers selling table- & kitchenware, in number of outlets, 2001/2002<br />

Department stores Outlets Furniture stores Outlets Hyper<strong>market</strong>s Outlets<br />

El Corte Ingles 50 Ikea 3 Carrefour 113<br />

Aldeasa 178 Merkamuable 3 Alcampo 43<br />

Marks & Spencer 13 Conforma 5 Hiporcor 23<br />

Galerias Tarragona 65 Eroski 33<br />

Variety stores<br />

La Rampa/ Hiper<br />

5 Discounters Super<strong>market</strong>s<br />

Andalucia Dia 2,389 Mercadona 601<br />

Lidl 290 Consum 816<br />

Plus 168 Supersol/Cobreros 623<br />

Zero 74 Caprabo 380<br />

Penny 42 Champion 167<br />

Source: Mintel Retail Intelligence 2002/ Euromonitor, 2002<br />

The Netherlands<br />

Looking at retail developments, the decreasing number of local and independent shops is<br />

significant. Especially large retail formats have pushed the independents out of the <strong>market</strong> place<br />

in favour of their various outlet brands. The main department stores also play an important role in<br />

the distribution of table- & kitchenware. The leading department stores in the Netherlands are<br />

Vroom & Dreesmann (V&D), Hema and Bijenkorf. The latter carries a more sophisticated range,<br />

while Hema sells everyday articles. By tradition, V&D takes a position in the middle; however,<br />

recently a change towards better (and thus more expensive) products can be observed.<br />

Table 7.7 The Netherlands’ major retailers selling table- & kitchenware, in number of outlets<br />

2001/2002<br />

Department stores Outlets Furniture stores Outlets Hyper-/ Super<strong>market</strong>s Outlets<br />

Hema 276 Ikea 11 Albert Heijn 686<br />

Vroom & Dreesmann 69 Leenbakker 100 C1000 509<br />

De Bijenkorf 13 Kwantum 85 Edah 313<br />

Super de Boer 403<br />

Variety stores Discounters Konmar 137<br />

Blokker 473 Aldi 370 Dirk van den Broek 85<br />

Marskramer 197 Basismarkt 187 Plus 123<br />

Xenos 79 Lidl 80 Spar 239<br />

Novalux 102 Dekamarkt 63<br />

Giraffe 36<br />

Hoyng 21<br />

Source: Hoofdbedrijfschap Detailhandel 2001/2002/ Mintel Intelligence 2002/ Euromonitor, 2002<br />

Major multiples, like Xenos, Blokker and Marskramer, also retail a wide range of table- &<br />

kitchenware. According to the Dutch HBD, florists, garden centres and pet shops are also<br />

important sales channels for table- & kitchenware, partly explaining the large share of “others” in<br />

Figure 7.3.<br />

63


7.5 Distribution channels for developing countries exporters<br />

Traditionally, exports deriving from developing countries transit through a set of intermediaries<br />

like agents and importers and in some cases stock-keeping wholesalers, discussed in paragraph<br />

7.2, who in turn <strong>market</strong> the exported products to wholesalers or retailers. These long distribution<br />

lines are mostly caused by the distance between the exporter and his export <strong>market</strong> and, in most<br />

cases, the relatively small size of the production in developing countries. Furthermore, a lack of<br />

information concerning the export <strong>market</strong> makes exporting a hazardous venture. The<br />

disadvantages of working through a large number of intermediaries include poor knowledge of<br />

<strong>market</strong> trends, inability to gain competitive advantage by adapting the product to specific<br />

customer needs and, of course, the margin lost at each stage of the distribution chain.<br />

The most important intermediaries, like agents/ sales offices, importers and retailers, will be<br />

discussed briefly in the next section of this paragraph. See also Figure 7.1, for the different trade<br />

flows.<br />

Agents/ sales offices<br />

Agents are intermediaries who do not keep stocks. The agent may serve as an intermediary<br />

between the manufacturer and the wholesaler or retailer, receiving a commission from the former.<br />

The level of commission depends on a number of factors, including the turnover rate of the<br />

product concerned; it averages an estimated 5 to 10 percent of turnover. Most agents represent<br />

more than one manufacturer. Agents usually have a good knowledge of distribution structures and<br />

consumer behaviour. Some foreign manufacturers have their own sales office in Europe or<br />

elsewhere. This is viable if a manufacturer wants to make sure that his products are properly<br />

advertised and distributed. In fact, only the larger companies, which cover a substantial part of the<br />

<strong>market</strong>, maintain their own offices. The problem of working through an agent is, however, that<br />

the manufacturer is totally dependent and has to trust the quality of the agent's knowledge,<br />

commitment and selling ability.<br />

Importers<br />

Importers are familiar with local <strong>market</strong>s and can supply considerable information and guidance<br />

to the overseas manufacturer, such as the administration of import and export procedures and<br />

holding of stock, in addition to the primary business of buying and selling. Furthermore, they<br />

have strong relationships with suppliers and buyers all over the world. These intermediaries have<br />

long-established links with their customers and are in a better position (than foreign processors)<br />

to know the requirements of the local <strong>market</strong> and of individual end-users.<br />

Retailers<br />

Some large retailers like for example IKEA, also buy table- & kitchenware directly from foreign<br />

suppliers. This may involve intermediary activity by a selling agent on behalf of the manufacturer<br />

or a buying agent on behalf of the (multiple) retailer. This method of doing business has become<br />

more popular, since it cuts out several intermediaries, thus reducing costs and enabling the retailer<br />

to offer the product at a lower end price. It is particularly significant, when a fashion trend takes<br />

hold, with a fierce competition between retailers offering lower prices. Unfortunately, this<br />

method often results in the supply of huge volumes of poorer quality, cheaper merchandise, after<br />

which the demand peaks and then falls off.<br />

Large chains have their own purchasing staff, buying from all over the world. In the country of<br />

origin, most buyers prefer the lines between manufacturer and themselves to be as short as<br />

possible. Short communication lines create a better control over production and deliveries. This<br />

reduces the risk of discrepancies between buyers’ requirements and final product.<br />

64


8 PRICES<br />

Price is an important aspect in the table- & kitchenware sector, but there is such a broad range of<br />

items, qualities, materials, raw materials and styles, that it is almost impossible and not<br />

meaningful to give typical prices. Therefore, this chapter will discuss developments which<br />

influence the price level in the table- & kitchenware <strong>market</strong>. Furthermore, differences in price<br />

levels between EU-countries are examined.<br />

8.1 Price development in the table- & kitchenware <strong>market</strong><br />

As can be seen in Chapters 3 and 4, the table- & kitchenware <strong>market</strong> is becoming increasingly<br />

competitive, due to the pressure of low cost imports from Asia and Eastern Europe. At the same<br />

time, the <strong>market</strong> is shifting away from traditional, formal and mostly high priced products,<br />

towards more casual table- & kitchenware. Manufacturers nowadays introduce new ranges of<br />

fashionable products every year. In addition, existing <strong>market</strong> prices came under pressure due to<br />

the increasing importance of mass-<strong>market</strong> outlets like grocery multiples and discounters selling<br />

low-priced popular table- & kitchenware, in order to create more “traffic”. The above<br />

developments have contributed to an intensified competitive environment. Traditionally, the<br />

table- & kitchenware <strong>market</strong> can be divided into three main price segments:<br />

• Premium-priced table- & kitchenware; consisting of high-quality, formal product brands<br />

like for example Alessi and Villeroy & Boch. These products are mostly sold through<br />

specialty retailers and department stores.<br />

• Mid-priced table- & kitchenware; most of the industry’s volume is realised in this segment.<br />

These products are mostly sold through department stores and retailers.<br />

• Low-priced table- & kitchenware; mostly deriving from Asia or Eastern Europe. These<br />

products are mostly sold through discounters and grocery multiples.<br />

According to branch experts of NPD industry however, the price levels in the table- &<br />

kitchenware <strong>market</strong> are polarizing. Consumers which traditionally shop in the mid-price segment<br />

shift towards the higher priced products called “shopping up”, as quality and specialty are very<br />

important in this segment. The opposite development is also sighted, “shopping down”, meaning<br />

consumers are shopping for lower prices. The latter is triggered by the increasing demand for<br />

low-priced fashionable table- & kitchenware which can be found for example in discounter and<br />

grocery multiples. The increasing amount of cheap products deriving from Asia and Eastern<br />

Europe drove many EU manufacturers out of the low-priced and mid-priced segment. In turn,<br />

many European manufacturers repositioned themselves at the premium end of the <strong>market</strong>, making<br />

this high-priced segment more crowded.<br />

8.2 Price levels in the EU<br />

According to a <strong>survey</strong> issued by Eurostat, concerning the price levels of table- & kitchenware in<br />

the EU, there are profound differences across the EU. The products included in this <strong>survey</strong> are<br />

glassware, ceramicware, cutlery, flatware and silverware.<br />

Figure 8.1 provides a comparison of the price levels with respect to the EU average: if the price<br />

level index is higher than 100, the country concerned is relatively expensive compared with the<br />

EU average. The figure provides an indication of the comparative order of magnitude of the price<br />

level in one country related to another. As can be seen, the price level in the United Kingdom is<br />

relatively high in comparison with the EU average.<br />

65


This can be explained by the fact that the UK is an island, making distribution more difficult and<br />

thus more expensive. In Italy and France the price level is relatively low, partly explained by the<br />

importance of domestic manufacturers and the size of the <strong>market</strong>. An interesting aspect which is<br />

not shown in Figure 8.1, is the relatively high price level of glass & tableware in the<br />

Scandinavian countries like Norway (150), Sweden (171) and Finland (138).<br />

Figure 8.1 Relative price level of table- & kitchenware in selected EU-countries, 2002, EU 15 = 100<br />

140<br />

128<br />

120<br />

100<br />

80<br />

87<br />

83<br />

111<br />

89<br />

101 100<br />

60<br />

40<br />

20<br />

0<br />

France<br />

United<br />

Kingdom<br />

Italy<br />

Germany<br />

Spain<br />

Netherlands<br />

Eu-total<br />

Source: Eurostat, 2002<br />

8.3 Sources of price information<br />

The best way to obtain information about prices and price levels in the EU is by visiting one of<br />

the major trade fairs. Alternatively, comparisons can be found in the prices given in catalogues<br />

from mail-order houses, large department stores and from the internet sites of companies.<br />

Window-shopping in the prospective <strong>market</strong> place, at several retail shops, is another good way of<br />

getting information about prices. Apart from prices, window-shopping gives you a good<br />

impression of the wide variety of products, qualities, fashions, colours and promotions. The<br />

internet is also a good source of price information, for example the IKEA online-store gives<br />

information on retail prices of IKEA products, including its table- & kitchenware.<br />

When setting your price, take into account the different mark-ups as described in paragraph 10.6,<br />

which influence the retail prices. The effect of low, medium and high margins on consumer endprices,<br />

based on one CIF price for three different products in the same category, is illustrated in<br />

Table 10.1.<br />

66


9 REQUIREMENTS FOR ACCESS<br />

9.1 Non-tariff trade barriers<br />

Legislative standards enforced through EU legislation and, possibly, through EU-member<br />

countries increasingly pose obstacles for exporters in developing countries. Although standards<br />

are imposed in order to protect consumers, or the environment, or to improve the harmonisation<br />

of the internal EU <strong>market</strong>, they are often seen as technical, non-tariff barriers to trade. Exporters<br />

must comply with such legislation and regulations in order to be able to export to the European<br />

Union. This means that they have to understand and comply with European legal restrictions.<br />

In this chapter, we will briefly discuss a number of barriers. For detailed information about nontariff<br />

trade barriers relevant to trade, we also refer to the CBI’s AccessGuide, an online database<br />

on European non-tariff trade barriers.<br />

Quality and grading standards<br />

Despite EU harmonization, which enables free trade between EU member states, individual<br />

<strong>market</strong>s have different requirements regarding quality, fabric, standards, size, etc. Accurate<br />

information concerning these requirements is best obtained from national importers. Most of<br />

these importers (manufacturers, wholesalers, retail organisations etc.) also work with certain<br />

minimum requirements. In this respect, they have formulated and stipulated minimum quality<br />

requirements, relating to both materials and manufacturer.<br />

Because this report covers a very wide range of products, it is impossible to give general<br />

guidelines on quality and grading standards for all these different kinds of articles. There are,<br />

however, restrictions on materials used for table- & kitchenware which may come into contact<br />

with food. One important norm is that all articles which come in contact with food should be free<br />

of lead and cadmium. In Table 9.1, the most important restrictions concerning table- &<br />

kitchenware are given. It is however sensible to the check the regulations and standards<br />

concerning your products. Information on regulations can be found on the site of the European<br />

Committee for Standardization. (www.cenorm.be)<br />

Trade-Related Environment, Social and Health & Safety Issues<br />

As conventional trade barriers disappear in the world economy, a new set of concerns is arising.<br />

In recent years, consumer movements in the EU have extended their concerns beyond the<br />

environment to the social impact of business practices. Furthermore, due to the increasing<br />

insistence on certification to meet health and safety standards, new standards for compliance with<br />

environmental management and labour standards are becoming commonplace in most developed<br />

countries’ <strong>market</strong>s.<br />

Environmental issues<br />

Environmental aspects of products have become a major issue in Europe. Besides governmental<br />

actions (legislation and regulation), a strong consumer movement is noticeable, especially in the<br />

northern parts of the EU (Scandinavia, Germany and the Netherlands). As a topic, “the<br />

environment” is more than a trend, it is a lasting one. Due to consumer pressure, the standards<br />

bodies of the developed countries have started the process of adopting “eco-labelling”. To<br />

qualify, manufacturers must be willing to submit their production methods for inspection and<br />

certification. There are several EU eco-labels used in the European Union. There are also a<br />

number of national labels such as the Netherlands Mili<strong>eu</strong>k<strong>eu</strong>r (www.mili<strong>eu</strong>k<strong>eu</strong>r.nl) and the<br />

German Blue angel (www.blauer-engel.de). There is also a European Eco-label called the EU<br />

flower. This is a voluntary scheme enabling European consumers including public and private<br />

purchasers to easily identify officially approved “green” products across the European Union,<br />

Norway, Liechtenstein and Iceland. At present, the EU flower can be awarded to 21 product<br />

groups. This label however does not apply at present to table- & kitchenware.<br />

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However, new products are added constantly. For more information concerning this topic, we<br />

refer to the Accesguides “Overview of social and environment product labels”<br />

Table 9.1<br />

Different Environmental labels<br />

EU-flower Dutch Mili<strong>eu</strong>k<strong>eu</strong>r German Blue Angel<br />

If a manufacturer wants to indicate to external parties that he is manufacturing in an<br />

environmentally sound way, he can comply with standards which have been developed for this<br />

purpose. A voluntary standard, with which manufacturers can comply, is called the ISO 14000<br />

series. The most important standard in this series is ISO 14001, which sets the requirement for an<br />

environment management system. For detailed information on the ISO standards, we refer to the<br />

AccessGuide “An introduction to the ISO 14000 series.”<br />

Social issues<br />

An increasing consciousness of ethical aspects, encouraged by consumer organisations, has led<br />

importers to develop codes of conduct. The use of child labour in the production of table- &<br />

kitchenware in general is a serious cause for concern in many EU-member countries. Widespread<br />

publicity has raised consumer, but also importers’, awareness of the topic. Exporters who can<br />

guarantee and prove that their products are made without child labour, will not only have a<br />

competitive advantage over other exporters, but will also have a much better chance of<br />

establishing long-term business relationships. In addition, the EU has added a “social clause” to<br />

the Generalised System of Preferences (GSP), which allows for special import tariff reductions<br />

for products that are produced in a humane way.<br />

However, it should be noted, that manufacturers and exporters in developing countries can never<br />

be subject to EU legislation regarding labour conditions. Companies in developing countries only<br />

have to comply with legislation in their home country. However, all products traded in the EU by<br />

importers, are subject to European Union legislation. Social issues are becoming increasingly<br />

important.<br />

The International Federation for Alternative Trade (IFAT) is a federation of manufacturers and<br />

Alternative Trading Organisations (ATO’s). In IFAT, manufacturers of handicrafts and food<br />

products from the developing countries come together directly with buyers and managers of<br />

ATO’s, as friends and partners in a spirit of mutual trust. They cast aside the traditional trading<br />

system of intermediaries and create an alternative way of doing business that is beneficial and<br />

fair. IFAT's objectives are two-fold:<br />

• To improve the living conditions of the poor in developing countries;<br />

• To change unfair structures of international trade.<br />

If your company complies with IFAT’s rules and regulations, you can apply to become a member<br />

of the network. The Fair Trade Organisation (FTO) Netherlands is one of the members of IFAT.<br />

The products, ranging from coffee, other food products such as tea, chocolate, honey and wine, to<br />

some 1,500 handicrafts articles, such as textiles, utensils and decorative items, are purchased<br />

from over 130 producer groups in Latin America, Africa and Asia.<br />

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In 25 years, fair trade has developed into a serious ‘business’, which is of vital importance to tens<br />

of thousands of manufacturers in Developing Countries. We also refer to the AccessGuide<br />

“Introduction to social issues”<br />

It should be noted that applying these social and environmental standards and labels on a company and<br />

its production can put a lot of strain on an organisation, while the <strong>market</strong> impact in most cases is<br />

limited. An exporter should therefore be aware of what the consequences are for his organisation, when<br />

applying to such labels and standards.<br />

Safety and health issues<br />

When trading into the EU, EU product legislation is very important. All products traded in the<br />

EU, are subject to European Union Norms. One important norm is that all articles which come in<br />

contact with food should be free of lead and cadmium. In Table 9.2, the most important<br />

legislation concerning table- & kitchenware is given. Exporters are strongly advised to check the<br />

exact content of these European norms, since this table only gives an indication of the norms that<br />

exist in this product range. For more detailed information please contact one of the national<br />

institutes for standardisation (see Appendix 4.1 for addresses). Information on these regulations<br />

and standards can also be obtained through the Internet. Useful Internet sites are www.cenorm.be of<br />

the European Committee for Standardization (CEN), and www.iso.ch of the International<br />

Organisation for Standardisation (ISO)<br />

Further information on this topic can be found in the AccessGuide “Introduction to consumer<br />

health and safety”<br />

Table 9.2 European Norms concerning table- & kitchenware<br />

Norm number Title Content<br />

NEN-EN 1900:1998 Materials and articles in<br />

contact with foodstuffs;<br />

Non-metallic tableware;<br />

Defines terms related to certain materials for non-metallic<br />

tableware in contact with foodstuffs. It only includes those<br />

articles composed of the following materials: glass, glass<br />

Terminology<br />

ceramics, porcelain, vitreous china/vitrified tableware,<br />

NEN-ISO 2747:1998<br />

NEN 3032:1966<br />

ISO 6486-1:1999<br />

ISO 6486-2:1999<br />

NEN-EN 1900:1998<br />

Vitreous and porcelain<br />

enamels; Enamelled<br />

cooking utensils;<br />

Determination of<br />

resistance to thermal<br />

shock<br />

Plastics; Specifications<br />

for plastic table ware<br />

Ceramicware, glassceramicware<br />

and glass<br />

dinnerware in contact<br />

with food; Release of<br />

lead and cadmium; Part<br />

1: Test method<br />

Ceramicware, glassceramicware<br />

and glass<br />

dinnerware in contact<br />

with food; Release of<br />

lead and cadmium; Part<br />

2: Permissible limits<br />

Materials and articles in<br />

contact with foodstuffs;<br />

Non-metallic tableware;<br />

Terminology<br />

stoneware, earthenware, common pottery or plastic.<br />

Specifies a method for determining, by successive thermal shock<br />

tests, the behaviour of vitreous and porcelain enamelled cooking<br />

utensils and similar articles under sudden changes of temperature<br />

(resistance to thermal shock).<br />

Material and performance for food and drinking articles made of<br />

plastics.<br />

Specifies a test method for the release of lead and cadmium from<br />

ceramicware, glass-ceramicware, and glass dinnerware intended<br />

to be used in contact with food, but excluding porcelain enamel<br />

articles. Is applicable to ceramicware, glass-ceramicware, and<br />

glass dinnerware which is intended to be used for the<br />

preparation, cooking, serving and storage of food and beverages,<br />

excluding articles used in food manufacturing industries or those<br />

in which food is solid.<br />

Specifies permissible limits for the release of lead and cadmium<br />

from ceramicware, glass-ceramicware and glass dinnerware<br />

intended to be used in contact with food, but excluding porcelain<br />

enamel articles. Is applicable to ceramicware, glass-ceramicware<br />

and glass dinnerware which is intended to be used for the<br />

preparation, cooking, serving and storage of food and beverages,<br />

excluding articles used in food manufacturing industries or those<br />

in which food is solid.<br />

Defines terms related to certain materials for non-metallic<br />

tableware in contact with foodstuffs. It only includes those<br />

articles composed of the following materials: glass, glass<br />

ceramics, porcelain, vitreous china/vitrified tableware,<br />

stoneware, earthenware, common pottery or plastic.<br />

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ISO 7086-1:2000<br />

ISO 7086-2:2000<br />

NEN-EN-ISO 8442-<br />

1:1998/C1:1999<br />

NEN-EN-ISO 8442-<br />

2:1998/C1:1998<br />

NEN-EN-ISO 8442-<br />

3:1998<br />

NEN-EN-ISO 8442-<br />

4:1998/C2:1999<br />

NEN-EN-ISO 8442-<br />

5:1999<br />

NEN-EN-ISO 8442-<br />

6:2001<br />

Glass holloware in<br />

contact with food;<br />

Release of lead and<br />

cadmium; Part 1: Test<br />

method<br />

Glass holloware in<br />

contact with food;<br />

Release of lead and<br />

cadmium; Part 2:<br />

Permissible limits<br />

Materials and articles in<br />

contact with foodstuffs;<br />

Cutlery and table<br />

holloware; Part 1:<br />

Requirements for cutlery<br />

for the preparation of<br />

food<br />

Materials and articles in<br />

contact with foodstuffs;<br />

Cutlery and table<br />

holloware; Part 2:<br />

Requirements for<br />

stainless steel and silverplated<br />

cutlery<br />

Materials and articles in<br />

contact with foodstuffs;<br />

Cutlery and table<br />

holloware; Part 3:<br />

Requirements for silverplated<br />

table and<br />

decorative holloware<br />

Materials and articles in<br />

contact with foodstuffs;<br />

Cutlery and table<br />

holloware; Part 4:<br />

Requirements for goldplated<br />

cutlery<br />

Materials and articles in<br />

contact with foodstuffs;<br />

Cutlery and table<br />

holloware; Part 5:<br />

Specification for<br />

sharpness and edge<br />

retention test of cutlery<br />

Materials and articles in<br />

contact with foodstuffs;<br />

Cutlery and table<br />

holloware; Part 6:<br />

Lightly silver plated<br />

table holloware protected<br />

by lacquer<br />

Specifies a test method for the release of lead and cadmium from<br />

glass holloware which is intended to be used in contact with<br />

food. Is applicable to glass holloware intended for use in the<br />

preparation, cooking, serving and storage of food and beverages,<br />

excluding glass ceramicware, glass flatware, and all articles used<br />

in food manufacturing industries or those in which food is sold.<br />

Specifies permissible limits for the release of lead and cadmium<br />

from glass holloware which is intended to be used in contact<br />

with food. Is applicable to glass holloware intended for use in the<br />

preparation, cooking, serving and storage of food and beverages,<br />

excluding glass ceramicware, glass flatware, and all articles used<br />

in food manufacturing industries or those in which food is sold.<br />

Specifies material and performance requirements and test<br />

methods for metal cutlery and related implements intended for<br />

use in the preparation of food. Two grades of cutlery are<br />

specified: - a normal grade with corrosion resistant blades or<br />

prongs capable of withstanding dishwasher cleaning procedures;<br />

- a special grade with corrosion resistant blades capable of<br />

withstanding dishwasher cleaning procedures and sterilization<br />

processes.<br />

Specifies material, performance requirements and test methods<br />

for table cutlery (knives, forks, spoons, carving sets, ladles,<br />

children's cutlery and other serving pieces). This standard is<br />

applicable to stainless steel cutlery and to silver-plated nickel<br />

silver, or silver-plated stainless steel, cutlery. It does not cover<br />

cutlery made wholly of precious metals, aluminium, nonstainless<br />

steel or that made entirely of nickel silver, nor does it<br />

cover gold-plated or chromium-plated cutlery. Three minimum<br />

thicknesses of silver are specified for silver-plated cutlery.<br />

Specifies material, performance requirements and test methods<br />

for silver-plated table and decorative holloware made principally<br />

from metals, and intended for use at or upon the dining table.<br />

Composition limits are specified for the basic metals for<br />

fabrication of the holloware prior to silver-plating.<br />

Specifies the following requirements for gold plated cutlery: a)<br />

performance requirements for table cutlery (for example, knives,<br />

forks, spoons, carving sets, ladles, and other serving pieces); b)<br />

composition limits for base metals for cutlery; c) tests for<br />

resistance to permanent deformation, firmness of handle<br />

attachment, hardness of blades, resistance to corrosion and the<br />

thickness and adhesion of gold coatings; d) three minimum<br />

thicknesses of gold plating: a first class, a second class, and a<br />

third class. Specifies the method of defining gold deposits for<br />

each and every item and also test methods. Does not apply to<br />

table cutlery which has only small areas of gold plate as inlays in<br />

non gold plated decoration.<br />

Specifies the sharpness and edge retention of knives which are<br />

produced for professional and domestic use in the preparation of<br />

food of all kinds, specifically those knives intended for hand use<br />

Specifies material and performance requirements for table and<br />

decorative holloware, and cast attachments, made from metals<br />

which are lightly silver-plated and protected by lacquer. Is<br />

applicable to such items as jugs, dishes, wine coolers, tea- and<br />

coffee-pots, trays and tureens, and includes decorative items such<br />

as vases, trophies, and candlesticks. Requirements are specified<br />

for brass, copper, nickel-silver, pewter and stainless steel<br />

holloware with a light silver-platting and a lacquered coating.<br />

Composition limits are specified for the basic metals for<br />

fabrication of the holloware prior to silver-plating and<br />

lacquering.<br />

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NEN-EN-ISO 8442-<br />

7:2001<br />

NEN-EN-ISO 8442-<br />

8:2001<br />

NEN-EN 12156:1995<br />

NEN-EN 12983-<br />

1:2000<br />

NVN-ENV<br />

13834:2000<br />

Materials and articles in<br />

contact with foodstuffs;<br />

Cutlery and table<br />

holloware; Part 7:<br />

Specification for table<br />

cutlery made of silver,<br />

other precious materials<br />

and their alloys<br />

Materials and articles in<br />

contact with foodstuffs;<br />

Cutlery and table<br />

holloware; Part 8:<br />

Specifications for silver<br />

table and decorative<br />

holloware<br />

Materials and articles in<br />

contact with foodstuffs;<br />

Cutlery and table<br />

holloware; Lacquered<br />

lightly silver-plated table<br />

and decorative holloware<br />

Cookware; Domestic<br />

cookware for use on top<br />

of a stove, cooker or hob;<br />

Part 1: General<br />

requirements<br />

Cookware; Ovenware for<br />

use in conventional<br />

domestic ovens<br />

Specifies material and performance requirements for table,<br />

cutlery made of precious metals and their alloys, esp. silver<br />

(knives forks, spoons, carving sets, ladies and other pieces).<br />

Specifies material, performance and marking requirements for<br />

silver table and decorative holloware, intended for use at or upon<br />

the dining table. This standard extends to decorative items such<br />

as vases, candlesticks and trophies and includes such items as<br />

jugs, dishes, tea- and coffee-pots, trays and tureens, wine-coolers<br />

etc.<br />

Specifies material and performance requirements for table and<br />

decorative holloware, and cast attachments, made from metals<br />

which are lightly silver-plated and protected by lacquer. This<br />

standard is applicable to such items as jugs, dishes, wine collers,<br />

tea- and coffee-pots, trays and tueens, and includes decorative<br />

items such as vases, trophies, candlesticks. Requirements are<br />

specified for brass, copper, nickel-silver, pewter and stainless<br />

steel holloware with a light silver-plating and a lacquered<br />

coating. The standard does not cover holloware made entirely of<br />

precious metals, brass, nickel-silver, stainless steel or made from<br />

ceramics or glass or non-stainless steel or zinc-based die cast.<br />

Composition limits are specified for the basic metals for<br />

fabrication of the holloware prior to silver-plating and<br />

lacquering. The standard does not include requirements for<br />

design, size or any other characteristics which are matters of<br />

personal choice or which can be readily assessed by the<br />

purchaser at the point of sale.<br />

Specifies safety and performance requirements for items of<br />

cookware for domestic use on top of a stove, cooker or hob. Is<br />

applicable to all cookware regardless of material or method of<br />

manufacture with the exceptions of those mentioned below. Is<br />

also applicable to cookware intended for use both "on top" and<br />

"in oven". Is not applicable to glass, ceramic and glass ceramic<br />

articles. The applicability of this standard and possible additional<br />

requirements and test procedures for these products are under<br />

consideration and are intended to be incorporated in a<br />

complementary standard. This standard is not applicable to<br />

pressure cookers, stove-top water kettles and coffee makers.<br />

Requirements and test procedures for resistance to pull of<br />

furniture, non stick coatings, suitability for various heat sources<br />

and suitability for use in automatic dishwasher are under study<br />

and will be covered by a complementary standard.<br />

Specifies safety and performance requirements for items of<br />

ovenware for use in domestic ovens. It is applicable to all<br />

ovenware regardless of material or method of manufacture. It is<br />

applicable to products intended for use both 'on top of the stove'<br />

and 'in oven'.<br />

Source: N.E.N., <strong>2003</strong><br />

Working circumstances<br />

Information on labour conditions can be obtained from the International Labour Organisation<br />

(ILO) which is the UN organisation dealing with all aspects of work; the internet site can be<br />

found in Appendix 4.5. To give an idea of the implications of occupational health and safety we<br />

refer to Appendix 8<br />

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Packaging<br />

According to the CBI export planner, packaging serves three basics functions:<br />

• It protects your product during transportation<br />

• It breaks down your product to sellable units (e.g. transforming staple goods into<br />

consumer units), or simply makes the product easily accessible to consumers<br />

• It conveys a message to the buyer/consumer (marking and labelling)<br />

Products deriving from developing countries generally have a long distance to travel before<br />

reaching their destinations in the EU. Therefore, it is very important that close attention is paid to<br />

packaging of products. Good packaging protects products from, for example, the fluctuations and<br />

extremes of temperature, relative humidity, vibration and shock, impact, getting wet, theft and<br />

getting lost.<br />

Depending on the choice of distribution channel, both the outer and the consumer packing should<br />

be adapted to the demands of the importers/retailers and the consumer. Most distributors place<br />

strong emphasis on attractive, easy-to-handle, and self-promoting packing materials. Packing in<br />

sturdy corrugated boxes with dimensions enabling easy handling and weight (not exceeding 25 kg<br />

per carton) is recommended. Wherever possible, the outer cartons should be placed together on<br />

pallets, to further avoid the risks of damage during transit.<br />

Attractive consumer packing is important, especially for articles in the middle and higher price<br />

bracket. The exclusiveness of higher priced items of original value can be underlined by special<br />

packing - in elegant display boxes - in style with the design of the product. The consumer packing<br />

should attract attention, clearly show the contents - either by picture or by see-through packing -<br />

and contains information on the use of the product. In other words, the packing should match the<br />

design, image, quality and price of the product. Attractive consumer packing is definitely a sales<br />

argument.<br />

Packing of china, porcelain, ceramicware and glassware<br />

Products made of such materials are prone to damage. Careless packing can result in breakage<br />

and chipping. To minimise such risks, these articles ought to be carton-packed. The pre-packed<br />

articles should then be put in corrugated boxes. Cushioning for protection is advisable.<br />

Packing of metalware<br />

Usually these products can be shipped and transported in carton boxes without great risks of<br />

damage. Even though these articles are not very liable to break, they do run a risk of becoming<br />

dented or scratched. This may be easily avoided by wrapping each individual article in soft paper<br />

or by giving it a layer of cushioning material.<br />

Packing of woodware and plasticware<br />

Like metalware, these items are prone to scratches. To prevent scratches as much as possible, it is<br />

recommended to wrap every article in soft paper or any other cushioning material.<br />

EU standards for packaging and packaging waste<br />

To harmonise the different forms of legislation on packaging and packaging waste in EU<br />

countries, the EU has issued the directive 94/62/EC, which regulates minimum standards. With<br />

effect from August 1, 2001, these minimum standards will require a recovery quota of 50-65<br />

percent for packaging materials brought into the <strong>market</strong> and will regulate the presence of four<br />

heavy metals (mercury, lead, cadmium and hexavalent chromium). EU-member countries have a<br />

certain freedom in how to comply with the recovery rate but at least 25-45 percent of the material<br />

brought on to the <strong>market</strong> must be recycled, with a minimum of 15 percent for each material. The<br />

maximum available sum of concentrations of lead, mercury and hexavalent chromium in<br />

packaging is 100 parts per million.<br />

72


These standards have been implemented by the EU-member countries since 1996 and are now in<br />

force in most of them. Each country reserves the right to apply additional standards, as long as<br />

these do not hamper trade between countries. For more detailed information on packaging we<br />

refer to the different CBI’s AccessGuides.<br />

Marking and labelling<br />

Marking and labelling serves two major purposes. First, it is critical for smooth distribution<br />

through the transport system. The labels should state the originating and destination addresses, as<br />

well as contact names and telephone numbers. Secondly, marking and labelling gives information<br />

concerning the product.<br />

Appropriate labels should be attached to indicate, for example, that items are fragile and that they<br />

need to be kept upright. Without attaching these labels, the people handling the objects and crates<br />

will not be aware they have to be careful. It is important to label individual parcels and packages<br />

within crates as well. Large warehouses, department stores and super<strong>market</strong>s in Europe do not<br />

have the time to open each individual package to check the contents. Each package should<br />

therefore be properly labelled with codes, stating both the contents and the article code of the<br />

buyer/distributor. More than elsewhere, the use of the pictorial marking “FRAGILE” seems<br />

appropriate for china & porcelain, glassware and ceramicware. In Table 9.3, a number of labels<br />

which apply to table- & kitchenware are given.<br />

Table 9.3<br />

Different labels which can apply for table- & kitchenware<br />

Keep dry This way up Fragile<br />

The second reason for marking and labelling is to inform the consumers about the product.<br />

Today’s consumer wants to know exactly what he or she buys. Therefore, it is important to mark<br />

the product’s brand name, special materials, name/sign of the artisan and guarantee of originality,<br />

according to the <strong>market</strong> segment for which the product is intended. A label on the article has to<br />

provide the necessary data in a language comprehensible for the target <strong>market</strong>. In general, the<br />

label should state material(s) used, qualities, country of origin and, if applicable, size in<br />

centimetres or volume in litres, instructions for use. Moreover, labels and package can both be<br />

used for sales promotion of other articles of the manufacturer in the same category. Positive sales<br />

arguments, which should be indicated on the product if applicable, are environmentally friendly,<br />

produced from recyclable material, food-safe.<br />

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Sometimes symbols are used to indicate the qualities of the product, such as food-safe,<br />

recyclability, dishwasher-safe, microwave-safe, etc. The essential data can be printed on the<br />

underside of the product. On, for example, porcelain or ceramicware you should mark whether or<br />

not it is safe to put the product in the dishwasher and / or microwave.<br />

Barcodes<br />

Below in this table, you will see a barcode, which helps importers and<br />

wholesalers to enter the information concerning products in their<br />

computer automatically. Information concerning products is put down<br />

on a label in a number of thick and thin lines. In addition, the barcode<br />

shows a number of digits consisting of four groups. The first two<br />

numbers indicate the country of the manufacturer. The second group of<br />

digits stand for the manufacturer. The third group matches the product<br />

number. The last number is for control, it helps prevent mistakes<br />

occurring. It is not compulsory to use barcodes, nevertheless an<br />

increasing share of producers make use of these codes, making it easier<br />

to keep information concerning your stock. Secondly, it helps to trace<br />

your products.<br />

9.2 Tariffs and quota<br />

All EU-countries apply common customs tariffs to imports from outside the Union. If there is no<br />

special trade agreement in force, the general import tariff applies, as shown in Table 9.5. Some<br />

kind of preferential trade agreement in the field of tariffs and reductions of EU duty levels may<br />

apply to many developing countries, according to the commitments in the Uruguay Round, until<br />

2005. Most of the developing countries are granted special trade preferences; these countries<br />

usually benefit from zero duties through preferential treatment under the Generalised System of<br />

Preferences (GSP) or under the fourth Lomé Convention for the African, Caribbean and Pacific<br />

(ACP) countries.<br />

Both Lomé and GSP are preferential trade regimes, which provide benefits to developing nations<br />

under certain conditions. In the case of manufactured goods, the products must meet specified<br />

criteria concerning adding value or processing in the exporting nation, in order to receive<br />

preferential treatment. If these conditions are not met, the preferential trade regime will not apply<br />

to the particular export.<br />

Generalised System of Preferences<br />

This agreement allows products originating from<br />

the countries concerned to be imported at<br />

preferential tariffs or duty-free for the least<br />

developed countries. A “Certificate of Origin<br />

Form A” has to be filled in by the exporter and<br />

issued by the competent authorities. Tariff<br />

contingents and tariff ceilings do not exist<br />

anymore. The GSP does not apply to countries<br />

producing table- & kitchenwares in large<br />

quantities, like for example China and Thailand.<br />

A list of countries falling under the GSP is<br />

found in Appendix 7.<br />

To obtain an exemption from import duties, the<br />

goods must be accompanied by an original<br />

Certificate of Origin, issued by the assigned<br />

authority in the country of origin.<br />

• For ACP countries, this has to be the EUR.<br />

1 Certificate.<br />

• For countries under the Generalised<br />

System of Tariff Preferences, this has to be<br />

a Form A certificate.<br />

Furthermore, the condition has been imposed<br />

that the products come directly from the<br />

country of origin.<br />

74


Lomé Convention<br />

Products originating from ACP countries can be imported without duties, when a “Movement<br />

Certificate EUR. 1” is filled in by the exporter and issued by Customs in the country of export. A<br />

list of countries falling under the Lomé Convention is found in Appendix 6.<br />

TARIC: Information concerning custom tariffs can be found in the Taric database at<br />

www.<strong>eu</strong>ropa.<strong>eu</strong>.int/comm/taxation_customs/. TARIC is an acronym for Tarif Intégré de la<br />

Communauté created at the same time as the Combined Nomenclature (CN). The TARIC contains a<br />

nomenclature in 11 official languages. It shows all third country and preferential duty rates actually<br />

applicable as well as commercial policy measures.<br />

Value added taxes<br />

Member countries of the European<br />

Union levy their own tax from<br />

consumers. These Value Added Taxes<br />

(VAT) rates differ and are shown in<br />

Table 9.4. Rates within the EU will<br />

gradually be harmonized. Between EU<br />

members there is free movement of<br />

goods. With the single European<br />

<strong>market</strong>, no VAT is levied on trade<br />

between EU member countries.<br />

Table 9.4 VAT Tariffs EU-member countries<br />

Country VAT-rate Country VAT-rate<br />

Austria 20% Italy 20%<br />

Belgium 21% Luxembourg 15%<br />

Denmark 25% The Netherlands 19%<br />

Finland 22% Portugal 19%<br />

France 19,6% Spain 16%<br />

Germany 16% Sweden 25%<br />

Greece 18% United Kingdom 17,5%<br />

Ireland 21%<br />

Source: EVD (2002)<br />

Up-to-date information on import tariffs can be obtained from the TARIC database of the<br />

European Union (www.<strong>eu</strong>rope.<strong>eu</strong>.int). The HS code of the product concerned must be always<br />

mentioned; a detailed list of HS codes can be found in Appendix 1 of this <strong>survey</strong> as well. Other<br />

information sources are the European Commission, trade associations and importers.<br />

Table 9.5 Import duties on table- & kitchenware, 01-01-2004<br />

General Developing Least Excluded from<br />

Tariffs Countries Developed preferences<br />

Countries<br />

Plasticware 39241000 6.5 0 0 China (3.2)<br />

39249090 6.5 0 0 China (3.2)<br />

39249019 6.5 0 0 China (3.2)<br />

Woodware 44190000 0 0 0<br />

44190010 0 0 0<br />

44190090 0 0 0<br />

China & Porcelain 66111000 12.0 8.4 0 ex. Myanmar, China<br />

69119000 12.0 8.4 0 ex. Myanmar, China<br />

Ceramicware 69120010 5.2 1.5 0 ex. Myanmar, China<br />

691<strong>2003</strong>0 5.5 2.5 0 ex. Myanmar, China<br />

69120050 9 5.5 0 ex. Myanmar, China<br />

69120090 7 3.5 0 ex. Myanmar, China<br />

Glassware 70131000 11 7.5 0 ex. Myanmar, China<br />

70132111 11 7.5 0 ex. Myanmar, China<br />

70132119 11 7.5 0 ex. Myanmar, China<br />

70132191 6.5 0 0 China (3.2)<br />

70132199 11 7.5 0 ex. Myanmar, China<br />

70132910 11 7.5 0 ex. Myanmar, China<br />

70132951 11 7.5 0 ex. Myanmar, China<br />

70132991 11 7.5 0 ex. Myanmar, China<br />

70132999 11 7.5 0 ex. Myanmar, China<br />

70133110 11 7.5 0 ex. Myanmar, China<br />

70133190 11 7.5 0 ex. Myanmar, China<br />

70133200 11 7.5 0 ex. Myanmar, China<br />

75


70133910 11 7.5 0 ex. Myanmar, China<br />

70133991 11 7.5 0 ex. Myanmar, China<br />

70133999 11 7.5 0 ex. Myanmar, China<br />

70139110 11 7.5 0 ex. Myanmar, China<br />

70139190 11 7.5 0 ex. Myanmar, China<br />

70139900 11 7.5 0 ex. Myanmar, China<br />

70139910 11 7.5 0 ex. Myanmar, China<br />

70139990 11 7.5 0 ex. Myanmar, China<br />

Metalware 73239100 3.2 0 0 ex. China<br />

73239200 3.2 0 0 ex. China<br />

73239310 3.2 0 0 ex. China<br />

73239410 3.2 0 0 ex. China<br />

73239490 3.2 0 0 ex. China<br />

73239910 3.2 0 0 ex. China<br />

73239991 3.2 0 0 ex. China<br />

73239999 3.2 0 0 ex. China<br />

74170000 4 0 0 ex. China<br />

74181900 3 0 0 ex. China<br />

76151910 6 2.5 0 ex. Myanmar, China<br />

76151990 6 2.5 0 ex. Myanmar, China<br />

Cutlery 82111000 8.5 2.9 0 ex. Myanmar, China<br />

82119130 8.5 2.9 0 ex. Myanmar, China<br />

82119180 8.5 2.9 0 ex. Myanmar, China<br />

82119190 8.5 2.9 0 ex. Myanmar, China<br />

82119200 8.5 2.9 0 ex. Myanmar, China<br />

82119290 8.5 2.9 0 ex. Myanmar, China<br />

82119300 8.5 2.9 0 ex. Myanmar, China<br />

82119390 8.5 2.9 0 ex. Myanmar, China<br />

82119400 6.7 2.3 0 ex. Myanmar, China<br />

82151010 4.7 1.2 0 ex. Myanmar, China<br />

82151020 4.7 1.2 0 ex. Myanmar, China<br />

82151030 8.5 2.9 0 ex. Myanmar, China<br />

82151080 4.7 1.2 0 ex. Myanmar, China<br />

82151090 4.7 1.2 0 ex. Myanmar, China<br />

82152010 8.5 2.9 0 ex. Myanmar, China<br />

82152090 4.7 1.2 0 ex. Myanmar, China<br />

82159100 4.7 1.2 0 ex. Myanmar, China<br />

82159910 8.5 2.9 0 ex. Myanmar, China<br />

82159990 4.7 1.2 0 ex. Myanmar, China<br />

Source: TARIC database, EU<br />

After having read Part A of this <strong>survey</strong>, it is important for an exporter to analyze the target<br />

<strong>market</strong>s, sales channels and potential customers in order to formulate <strong>market</strong>ing and product<br />

strategies. Part B subsequently aims to assist (potential) exporters from developing countries in<br />

their export-decision-making process.<br />

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PART B<br />

EXPORT MARKETING GUIDELINES: ANALYSIS AND<br />

STRATEGY<br />

77


10 EXTERNAL ANALYSIS<br />

How do you get involved in the international <strong>market</strong>place How much time and money will it<br />

take Should you make exporting part of your business plan These are common concerns of<br />

manufacturers who are aware of the importance of international trade, but have made no decision<br />

yet whether to start exporting. Part B of this <strong>market</strong> <strong>survey</strong>, helps you evaluate whether to get<br />

involved in international business.<br />

Chapters 10 and 11 aims to assist potential exporters in the decision-making process about<br />

whether or not to export. In Chapter 10, the external analysis will assist you to identify suitable<br />

export products, target countries, <strong>market</strong> segments, and possible trade channels. In Chapter 11,<br />

the internal analysis will assist you to assess, to which extent your company is capable of taking<br />

advantage of the opportunities identified in the external analysis. By matching opportunities with<br />

the company’s capabilities, the exporter will obtain a first impression of the potential of the<br />

<strong>market</strong> initially chosen. This will be handled in Chapter 12. Subsequently, Chapter 13 describes<br />

the <strong>market</strong>ing tools, which can be used to build a successful business relationship. The<br />

information provided in the previous parts of this <strong>survey</strong> is an essential ingredient in conducting<br />

the analysis and formulating a well-defined export strategy. Where applicable, reference will be<br />

made to the relevant sections in Parts A and B.<br />

For general information on export <strong>market</strong>ing and how to conduct <strong>market</strong> research, please refer to<br />

CBI's “Export Planner” and CBI's “Your guide to <strong>market</strong> research”.<br />

10.1 Market developments and opportunities<br />

As a first step towards the identification of the most suitable export <strong>market</strong>s, the exporter needs to<br />

research the importance of potential <strong>market</strong>s and understand the ongoing developments that shape<br />

the EU table- & kitchenware <strong>market</strong>. The <strong>market</strong> information described in part A of this <strong>market</strong><br />

<strong>survey</strong> can be very useful as a starting point for your export <strong>market</strong> research. Part A of this<br />

<strong>market</strong> <strong>survey</strong> gives you insight in the different EU-<strong>market</strong>s. Information is given concerning the<br />

following topics: <strong>market</strong> growth, competitors, import, export and distribution channels.<br />

Questions an exporter should pose:<br />

• Market size/ development: What is the (estimated) <strong>market</strong> size for your potential export<br />

products Is there a positive or a negative development, in terms of expenditure per capita, margins<br />

etc. (See Chapter 3)<br />

• Trends: What sorts of products are selling well What colours are in fashion What new designs<br />

are popular If there is no information on your specific product varieties, then try to obtain<br />

information on the development of <strong>market</strong>s for related products (See Chapter 3)<br />

• Imports: How have imports developed during the last 3-5 years (See Chapter 5)<br />

• Which sales channel is most suitable for your range of products (See Chapter 7 and 10.3)<br />

• What standards or requirements apply to the quality of your product and are these standards<br />

compulsory (See Chapter 9)<br />

• What standards apply to the quality of your company’s management and production (ISO)<br />

• Are there any labels (e.g. ECO labels, etc.) which create a competitive advantage (See Chapter 9)<br />

• Are there environmental regulations or requirements on the use of dangerous substances for<br />

your product(s) (See Chapter 9)<br />

• What special legislation must be complied with regarding health and safety issues (e.g. CE<br />

norms)<br />

• Which import tariffs & VAT duties apply to your export products (See Chapter 9)<br />

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In Chapter 9, the requirements for accessing the EU-<strong>market</strong> are discussed, including packaging,<br />

quality, non-tariff barriers, environmental and social issues. As Chapter 9 of this <strong>survey</strong> has<br />

already shown, the European <strong>market</strong> (department stores, specialized shops, etc.) sets high<br />

demands on quality. Furthermore, a wide array of non-tariff barriers that could be applicable to<br />

exporters of table- & kitchenware were described in that same section. It is important to<br />

determine which standards and regulations apply to your situation. For example, when you are<br />

producing utilities which come in to contact with food, you are also subject to European Union<br />

Health & Safety Norms. Keep in mind that regulations and standards are continuously changing.<br />

Therefore, it is recommended to check the up-to-date situation with importers or the relevant<br />

organisations.<br />

Doing research<br />

Conducting a systematic <strong>market</strong> search takes time, but normally pays off in the long run.<br />

Consideration at the outset of the factors involved with exporting, will help to save you from<br />

misfortunes and unexpected costs later on. The two types of <strong>market</strong> research most businesses<br />

conduct are primary and secondary <strong>market</strong> research. In conducting primary <strong>market</strong> research,<br />

businesses collect data directly from the foreign <strong>market</strong>place, initiating phone interviews and<br />

<strong>survey</strong>s, and directly contacting potential customers and representatives. Because it is tailored to<br />

a specific company and product, primary <strong>market</strong> research is time-consuming and expensive. As a<br />

result, most small businesses begin researching their <strong>market</strong>s using secondary <strong>market</strong><br />

information. Secondary <strong>market</strong> research entails the collection of data from a number of resources<br />

including:<br />

• International news reports (televised, in print and on-line)<br />

• Trade associations, for websites see Appendix 4.2<br />

• Trade journals (like for example ‘Tableware International’, a leading journal on<br />

international table- & kitchenwares.<br />

• Trade press, providing a good indication of products which are in fashion; for websites<br />

see Appendix 4.4.<br />

• Research agencies, national and international: Euromonitor and Mintel, two important<br />

European research agencies; for websites see Appendix 4.5<br />

• Trade Agencies, like for example the Dutch CBI, the German GTZ and ITC; for<br />

websites see Appendix 4.5<br />

• Trade fair organisers, good indicators for new trends and developments; for websites<br />

see Appendix 4.3.<br />

• Trend-setting international companies like for example Alessi and Villeroy & Boch.<br />

Furthermore, important fashion companies like DKNY and Benetton give a good insight<br />

in new colour trends.<br />

• The CBI’s “Colour trends 2004/06”, giving an indication of coming trends and colours.<br />

Generally, exporters use all of these resources, and conclude by confirming and gathering<br />

additional information from specialists at the above agencies. The internet is one of the most<br />

important ways in which an exporter can obtain <strong>market</strong> information. Buying or commissioning<br />

<strong>market</strong> research reports can be (prohibitively) expensive. For a fraction of the cost and, in many<br />

cases, free of charge, much of the same information can be gathered from the Internet. The<br />

volume of relevant international <strong>market</strong>ing information available on the Web is too extensive to<br />

describe in detail in this <strong>survey</strong>. However, through search engines like, for example, Google<br />

(www.google.com) and Yahoo (www. yahoo.com), useful information on different topics can be<br />

acquired. Sites of the different trade fair organisers offer extensive information on coming trends<br />

in the table- & kitchenware sector. Furthermore you can browse the sites of different competitors<br />

for a good indication of the <strong>market</strong> (See Chapter 4).<br />

79


Successful companies start with:<br />

• searching the <strong>market</strong>;<br />

• checking <strong>market</strong> requirements;<br />

and produce thereafter, instead of the other way round. This advice can save you a lot of trial and error<br />

and, in short, prevent you from wasting money and time!<br />

Unfortunately, most manufacturers start exporting by trying to sell what they have. They adapt their<br />

products and <strong>market</strong> approaches only after they have found out certain defects and/or problems.<br />

Matching your products and <strong>market</strong>ing approaches with the <strong>market</strong>’s needs and wants beforehand, can<br />

give you a flying start!<br />

10.2 Competitive analysis<br />

After having identified a potentially interesting<br />

export <strong>market</strong>, it is important to know whether<br />

your company and its products can compete<br />

with the other suppliers in that <strong>market</strong>.<br />

Competitors and their pricing will have a direct<br />

effect on the potential success of your trade<br />

opportunities. To learn more about your<br />

competitors, research is very important. This<br />

<strong>survey</strong> offers you a good start. Chapter 4 of this<br />

<strong>market</strong> <strong>survey</strong> gives some insights in important<br />

manufacturers per product group. In Chapter 5,<br />

the main suppliers of the EU-member countries<br />

are discussed. Also take note of the import<br />

statistics in Appendix 2.<br />

Questions an exporter should pose:<br />

• Who are the raw materials suppliers and<br />

manufacturers in your primary <strong>market</strong>s<br />

(Check Chapters 4 and 5)<br />

• Is there much competition in these<br />

<strong>market</strong>s<br />

• What sort of competitive products are on<br />

offer<br />

• What are the strengths and weaknesses of<br />

your main competitors<br />

• How many competitors from your own<br />

country are active in the target <strong>market</strong><br />

When looking at the potential <strong>market</strong>, the following questions should be kept in mind.<br />

A. What products compete with yours<br />

Prepare a list of all the competition and then highlight who your main competitors (national and<br />

international) are. To learn more about competition, you can do a secondary research study<br />

regarding your industry and ask customers and suppliers for their opinions.<br />

B. Who are the suppliers or manufacturers of those products<br />

In most European countries, the products must carry the name of the manufacturer or importer.<br />

Register the names. What do you know about them Are they small or do they belong to a<br />

multinational If possible, visit competing companies at trade fairs to learn how products are<br />

priced and distributed. You can prepare a list of your main competitor’s strengths and<br />

weaknesses.<br />

C. Assess the competitors’ prices<br />

Price is one of the main motives for buying - next to design, uniqueness and quality. You will<br />

find that your potential buyers will force you into price-fighting with competing suppliers.<br />

Consequently, your price-setting largely depends on the competitors’ prices.<br />

D. Discover where and how the competition is selling their products<br />

You need to find out which trade channels are used by your competitors, and why. Trade fairs are<br />

a useful place to get to know information about your competitors and their products.<br />

80


E. Observe activities in the branch<br />

Several activities like trade fairs, congresses and seminars can be helpful for making contact with<br />

new customers and/or learning about <strong>market</strong> developments. It can also be used to find out more<br />

about your competition.<br />

Looking at your competitors’ products is just the first step into understanding their strong and<br />

weak points. Now you should try to understand their <strong>market</strong> position in order to predict how they<br />

will react on your <strong>market</strong> approach.<br />

10.3 Sales channel assessment<br />

Distribution - the mechanism through which your goods eventually reach the buyer – can be<br />

distinguished in the physical as well as the non-physical sense. Physical distribution describes the<br />

actual transportation of the goods from your factory or warehouse via the intermediaries to the<br />

end users. In that respect, transportation costs, packaging and carriers are relevant. As such,<br />

physical distribution is the downstream element of the art of logistics, which describes the flow of<br />

goods from its natural sources through the processing stage in your factory all the way down to<br />

the end-consumer. This part will be discussed in paragraph 10.5.<br />

In this paragraph, the non-physical (indirect)<br />

distribution is described, explaining which sales<br />

channels (importers, wholesalers, retailers,<br />

department stores, super<strong>market</strong>s etc.) to choose.<br />

Sales channel selection is a typical consumer<br />

<strong>market</strong>ing subject and as such a very important<br />

one. As discussed in Chapter 7, most exporters<br />

from developing countries make use of<br />

intermediaries when trading with far-away<br />

<strong>market</strong>s. The reasons are clear: the multitude of<br />

<strong>market</strong>s and their complexity, the numerous and<br />

tedious tasks of exporting, the regulations and<br />

risks involved, relatively small-scale production<br />

which makes exporting on your own too<br />

expensive and time-consuming, all such aspects<br />

make exporting very difficult. The intermediary,<br />

who is to become your trade partner, may have a<br />

simple task of just getting the goods to the other<br />

side of the border. However, he also may have a<br />

Questions an exporter should pose:<br />

• What is the typical <strong>market</strong> structure for<br />

your products or sector in each country<br />

(See Chapter 7)<br />

• Which potential sales channels exist for<br />

your products in the target <strong>market</strong><br />

• What are the supply lines - are certain<br />

importers/ wholesaler controlling the<br />

<strong>market</strong><br />

• How many intermediaries are there in the<br />

chain (See Chapter 7)<br />

• Who are the main players in the <strong>market</strong><br />

• What are the prices and margins at each<br />

distribution level Discount structures<br />

• What are the most important requirements<br />

of the identified sales channels (quality,<br />

packaging, etc)<br />

demanding job: finding buyers for you and making sure those prospects will be happy with your<br />

products. In practice, your success will largely depend on him. It is, however, also possible to<br />

bypass intermediaries. This will depend on a number of factors, such as the <strong>market</strong> conditions,<br />

size of the company, export experience etc. There are different types of intermediaries; we will<br />

describe the most important ones.<br />

• The importer is an independent company, specialized in importing a certain range of<br />

goods from abroad. Such an organisation buys directly from the exporter and thus<br />

becomes the rightful owner (‘takes title’) of the goods. In turn, he will try to sell them to<br />

wholesalers.<br />

• The (importing) wholesaler is a company that not only imports but also operates<br />

facilities to forward the goods into the distribution channels by means of promotional<br />

support.<br />

• The (commission) agent is an independent person or company, merely intermediating<br />

(bringing the exporter/seller and the importer/buyer together). His services are paid<br />

(usually by the exporter) in the form of a commission, which is a percentage of the (CIF)<br />

value of the goods imported.<br />

81


• The trading house is an independent company that specialises in trading certain range(s)<br />

of goods. Usually it covers a wide field of goods, sometimes even competing. A trading<br />

house or -company buys and sells for its own account and risk, and decides on its own<br />

export assortment; if your product happens to be renowned and outstanding, they will not<br />

wait for you but will come and look you up on their own initiative. Trading houses<br />

usually have a strong commercial acumen and professionalism.<br />

• The retailers are more and more involved in importing products themselves. This is<br />

mostly from a cost-saving point of view.<br />

E-commerce<br />

The internet has very quickly developed into a highly popular medium for business, not only for<br />

consumers but especially for industrial buyers and suppliers, allowing them ‘virtual´ shopping,<br />

fast communication, payment and low-cost promotion. The internet can also be very useful for<br />

contacting partners in a quick and economic way. The UK Institute of Development Studies<br />

(IDS) summarizes their briefing on E-commerce for development:<br />

“E-commerce holds out enormous promises for manufacturers in poor countries: easier access to the<br />

<strong>market</strong>s of rich countries and higher incomes resulting from these new trading opportunities. Many<br />

studies and policy documents, however, have underestimated the obstacles to reaping these benefits. It<br />

is not just a matter of bridging the 'digital divide' that arises from poor telecom infrastructure and lack<br />

of computer-related skills. Only with improvements in the transport of material goods and in the<br />

institutional arrangements that facilitate trust can e-commerce accelerate economic development.”<br />

This statement implies that exporter should be realistic about the opportunities of E-commerce; it<br />

is not a miraculous remedy for bridging the export difficulties which apply to international trade.<br />

Launching or exploiting a website successfully costs a substantial amount of money, time and<br />

expertise (See also Paragraph 13.5).<br />

10.4 Organisational Structures<br />

According to the International Trade Centre,<br />

one of the weaknesses often cited as a<br />

contributor to the lack of success in<br />

international <strong>market</strong>s of exporters in<br />

developing countries is the small size of their<br />

production. With limited funding, it is difficult<br />

to develop economies of scale. In view of the<br />

complicated and demanding nature of<br />

Questions an exporter should pose:<br />

• What volumes and quality is required by<br />

your clients and can you fulfil these<br />

requirements on your own<br />

• Are you financially and organisationally<br />

strong enough to export on your own or not<br />

exporting, you may conclude your company is simply not strong enough to export on its own. In<br />

that case, you may consider joining other (potential or established) exporters in order to meet the<br />

scale required by the international <strong>market</strong>.<br />

Join venture<br />

A joint venture can be described as a relationship which arises from an agreement between two or<br />

more companies to undertake some common objective for their mutual benefit.<br />

Cooperative<br />

According to the International Trade Centre, a cooperative is owned and financed by the people it<br />

serves, and exists for the benefit of its members. Cooperatives practise democratic decisionmaking,<br />

open membership, the sharing of profits and pooled purchasing to reduce the costs of<br />

goods and services. Products are pooled for sale and members have one vote regardless of the<br />

amount of stock they own, Members share responsibility, risks and profits.<br />

82


Partnership<br />

According to the International Trade Centre, a partnership is formed by two or more people coowning<br />

a business. Partners share resources and experience; however the goal and liabilities must<br />

be clearly defined and understood from the start. While partnerships are more flexible and easier<br />

to form than cooperatives, there are also some disadvantages; the partners are mutually liable and<br />

benefit from fewer tax advantages than a cooperative.<br />

Subcontracting<br />

According to the International Trade Centre, subcontracting provides a vehicle for small<br />

manufacturers to accept parts of orders, the totality of which is beyond their individual production<br />

capacities. The main contract is often entered into by the buyer and a non-producing exporter who<br />

then subcontracts production to several manufacturers. These types of arrangements enable the<br />

small manufacturers to meet <strong>market</strong> demand without having to make major financial investments<br />

upfront.<br />

Contract Manufacturing<br />

Chapter 4 describes that more and more European manufacturers in the table- & kitchenware<br />

sector are shifting their production to the so-called low-wage countries, mainly from a financial<br />

point of few. This development offers opportunities for manufacturers in developing countries.<br />

Increasing shares of manufacturers in developing countries are producing so called OEM<br />

products. These products are designed by Western companies and produced in low-wage<br />

countries. Manufactures can produce either the entire product or parts of the product. Asian<br />

countries like China and Taiwan are very successful in this <strong>market</strong> segment as many European<br />

companies ship their production plants to these countries.<br />

The OEM production described above requires organisational abilities and production skills to<br />

successfully manufacture foreign-designed products in the required volumes. Furthermore, it is<br />

important to obtain a constant level of quality, because EU-importers demand high quality<br />

standards concerning these products.<br />

10.5 Logistics<br />

As can be seen in paragraph 10.3, there are<br />

two types of logistics. We can make a<br />

distinction between the materials management<br />

and physical distribution. Materials<br />

management includes all the activities which<br />

are conducted to ensure that raw materials and<br />

semi-finished products run smoothly through<br />

the production process (see paragraph 11.2).<br />

The physical distribution aims at having the<br />

right goods at the right time in the right<br />

volumes at the right place and with a<br />

minimum of costs.<br />

Questions an exporter should pose:<br />

• What is the average delivery time in your<br />

line of business<br />

• What type of transportation is mostly used by<br />

your competitors<br />

• When are the seasonal sell-out periods<br />

(throughout the whole year or with peaks)<br />

• What type of packing is appropriate for your<br />

range of products in the target <strong>market</strong>s (See<br />

also Chapter 9)<br />

In case of the table- & kitchenware, the cycle from production to distribution and selling takes<br />

about 3 or 4 months, depending on product and country of origin. The consequences of such a<br />

long cycle are possibly: too many products and capital tied up in inventory, the possibility of<br />

price decreases in the meantime and missing of sales because the right products are not quickly<br />

available.<br />

Delivery times are becoming more important, as the table- & kitchenware <strong>market</strong> is increasingly<br />

becoming a fashion-sensitive industry and in some cases very seasonal. A product may be<br />

perfectly crafted and sold at competitive prices; however, if a retailer cannot rely on the shipment<br />

arriving as scheduled, there will be no <strong>market</strong>. This applies mostly to the more fashionable<br />

products in the <strong>market</strong>.<br />

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Retailers are often confronted with variation in consumer behaviour and with rapidly changing<br />

trends in fashion. As cited in Chapter 3, the table- & kitchenware <strong>market</strong> trends change every<br />

twelve to eighteen months. Retailers therefore demand shorter delivery times from manufacturers.<br />

In general, the retailers in the table- & kitchenware <strong>market</strong>, as in many other <strong>market</strong>s, try to shift<br />

the risks of <strong>market</strong> fluctuations to the manufacturers by ordering only small production runs. We<br />

should however note that these so-called “small” production runs can reach substantial sizes.<br />

When large chain stores or garden centres decide to purchase a product, their order can reach to a<br />

full 40-foot container or more.<br />

Because of the tendency to order smaller<br />

series, order frequency is increasing and<br />

retailers tend to use more than one supplier.<br />

This requires more flexibility, and a wellorganised<br />

logistics organisation from the side<br />

of the manufacturers. Automation is one of the<br />

answers for production firms to fulfil the<br />

When shipping your product, you need a customs<br />

declaration. Furthermore, if you want to obtain an<br />

exemption from import duties, the goods must be<br />

accompanied by an original Certificate of Origin,<br />

issued by the assigned authority in the country of<br />

origin. (See also Chapter 9.2)<br />

requirements of the logistics process. Usage of barcode systems (See Paragraph 9.2) by retail<br />

organisations gives quick sales information and is accompanied by electronic order systems, Just-<br />

In-Time (JIT) methods and direct product profitability (DPP). DPP means direct calculation of all<br />

retailing costs, amongst which alternative costs (costs which are caused by untimely delivery of<br />

articles, costs because of marking-down and sales bargains, etc.).<br />

Any developing country manufacturer entering the export <strong>market</strong> must not only estimate costs<br />

accurately before entering into a contract, but must also ensure that the shipping facilities at his<br />

disposal can guarantee delivery within the contractual time requirements. This tends to pose few<br />

problems for countries with access to ports with well-established shipping channels to the EU.<br />

However, it is a problem for many exporters in Africa, for example, who in addition to needing to<br />

move goods overland to a port, must deal with shipping services. A reliable shipping agent is<br />

essential for these exporters. Packaging poses an associated problem. While there is an increasing<br />

worldwide trend for consignments to be container packed at the factory, this can be done only in<br />

countries equipped to handle container ships in the docks of embarkation.<br />

10.6 Price Structure<br />

According to the International Trade Centre, pricing is the process of determining the amount of<br />

money for which your product will sell, based on the costs of producing and <strong>market</strong>ing your<br />

product, balanced against what the <strong>market</strong> will bear. Costs for raw materials, labour costs and<br />

overhead determine the price of your products. The overhead includes all the costs which cannot<br />

be allocated to a product individually, like for example electricity and heating, maintenance,<br />

insurance, <strong>market</strong>ing costs, etc.<br />

As we described in Chapter 7, most products<br />

deriving from developing countries go through<br />

a number of intermediaries. Each intermediary<br />

in the distribution channel has distinct<br />

responsibilities. There are however costs<br />

associated with them. A good knowledge of<br />

the costs per link in the export chain is very<br />

important to determining your retail price. A<br />

good knowledge of different retail prices in<br />

the <strong>market</strong> is also very important. If your price<br />

is too high, you can not compete with other<br />

manufacturers.<br />

Questions an exporter should pose:<br />

• What are the price developments on the<br />

<strong>market</strong> regarding your product(s)<br />

• Are there standard <strong>market</strong> prices for your<br />

products<br />

• How price sensitive are your clients<br />

• How competitive is my pricing compared<br />

with my main competitors<br />

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If your price is too low, it mostly will affect your profitability. Furthermore it is possible you will<br />

receive more orders than you are able to fill, according to the International Trade Centre.<br />

In Table 10.1, we describe three different mark ups, low, medium and high. It is impossible to<br />

draw up a schedule of actual margins for each product/<strong>market</strong> combination. Even within the same<br />

type of combination, different importers use different margins. This variation is due to the factors<br />

described in the following section.<br />

Table 10.1 Calculation schedule: Prices & Margins<br />

Low Medium High<br />

FOB Manila 90.00 90.00 90.00<br />

C&F Rotterdam / Amsterdam 100.00 100.00 100.00<br />

• Import duties charges on C&F basis* pm* pm* pm*<br />

• Handling charges, transport, insurance and<br />

6.00 6.00 6.00<br />

bank service<br />

Subtotal: 106.00 106.00 106.00<br />

• Importer/wholesaler's margin (20 / 30 / 21.20 31.80 42.40<br />

40%)<br />

Subtotal: 127.20 137.80 148.40<br />

• Retailer's margin (40 / 50 / 60%) 50.90 68.90 89.00<br />

Net selling price 178.10 206.70 237.40<br />

• Value Added Tax (VAT) 19% of net selling 33.80 39.30 45.10<br />

price**<br />

Gross selling price (consumer price) 211.90 246.00 282.50<br />

ratio consumer price/FOB 2.35 2.73 3,14<br />

ratio consumer price/C&F 2.12 2.46 2.83<br />

* Between 0 and 11% of C&F value (see Chapter 9, Table 9.1 of this <strong>market</strong> <strong>survey</strong> for the import duties<br />

on table- & kitchenware)<br />

** In practice, retailers calculate a 90 – 125 percentage mark-up, including VAT. The VAT rates vary per<br />

country in the EU. For information on the VAT rates see Table 9.2<br />

The effect of low, medium and high margins on the retail price, based on the same CFR for three<br />

different products, is shown in Table 10.1. A multiplier of between 2.12 and 3.14 on the<br />

manufacturer’s or importer’s price should be used to calculate an appropriate final consumer<br />

price. The height of this multiplier is influenced by seven factors:<br />

• Degree of risk (highly innovative, new brand, etc.)<br />

• Volume of business (turnover)<br />

• Functions or <strong>market</strong>ing services rendered (advertising, etc.)<br />

• General economic conditions (booming or depressed business)<br />

• Competition<br />

• Exclusiveness<br />

• Velocity of stock turnover<br />

The multiplier has decreased in the last decade, caused by factors like increasing competition at<br />

all levels in the distribution chain, further retail concentration and sales chain integration.<br />

Elimination of the wholesaler, for instance, can lead to a lower multiplier used by multiples,<br />

department, variety stores and mail-order companies. For more information on pricing and price<br />

structures, we refer to the “Product Costing and Pricing Training Module” issued by the<br />

International Trade Centre. Also check the CBI’s “Export planner”.<br />

85


10.7 Product profiles<br />

The product profiles below summarise the main issues which are of interest to a potential<br />

exporter, like <strong>market</strong> requirements, structure and main suppliers. In addition, the product profiles<br />

provide some ideas on how to improve the quality of the product. Two examples are given, one<br />

concerns plates, another mugs.<br />

PRODUCT PROFILE: PLATES<br />

Market requirements Product characteristics<br />

The quality standards / regulations:<br />

The regulations are discussed in<br />

Chapter 9. This chapter also<br />

discusses the eco-label. Besides<br />

the restrictions, it is also important<br />

to contact your business partner<br />

about the quality of your products<br />

(see § 11.1). The following<br />

regulations apply to plates (Check<br />

also Table 9.2):<br />

• NEN-EN 1900:1998<br />

• ISO 6486-1:1999<br />

• ISO 6486-2:1999<br />

Packaging<br />

• Protect the products from<br />

breaking<br />

• A nice packaging has a sales<br />

promoting effect.<br />

• It should give information<br />

about the product (See<br />

marking & labelling in § 9.1)<br />

For more information please read<br />

Chapter 9 and the packing manual,<br />

which can be obtained from CBI<br />

Marking & Labelling<br />

• Identification (name and<br />

address) of the exporter.<br />

Name of the product and<br />

variety.<br />

• Origin and nature of the<br />

product.<br />

• Mark if content is fragile (See<br />

§ 9.1).<br />

• Information about property of<br />

products (for example,<br />

disherwasher-safe)<br />

Import regulations<br />

For information about import<br />

regulations we refer to § 9.2.<br />

Relevant documents are:<br />

• AWB or Bill op loading<br />

• EUR 1 for ACP countries<br />

• Form A<br />

Chapter 9 of this <strong>survey</strong> gives you<br />

a good indication of requirements<br />

concerning dinnerware<br />

Materials used<br />

In most cases, dinner plates are made<br />

of the following materials:<br />

• Porcelain<br />

• Ceramic<br />

• Glass<br />

• Metal<br />

• Plastic<br />

Size<br />

The diameter and height of a plate<br />

depends on it functionality, the<br />

diameter varies from approximately 8<br />

– 40 centimetres. The height varies<br />

from 1 – 4/5 centimetres<br />

Function<br />

diameter Function<br />

8 -13 cm Coffee-dish, sold mostly<br />

in combination with a<br />

coffee-cup<br />

13-15 cm Cake-dish<br />

20-25 cm Small dinner plate<br />

25-35 cm Medium dinner plate<br />

35-45 cm Large dinner plate<br />

Other variations are for example deep<br />

plates to serve soup.<br />

Price<br />

The retail price varies depending on<br />

the size, quality and brand of de<br />

product. The price can vary from<br />

€ 2.00 to more than € 20.00. In<br />

general we can define three segments<br />

(see also Chapter 8): The lower price<br />

segment from € 2.00 to € 6.00. The<br />

medium segment from € 6.00 to €<br />

12.00. The premium segment ranging<br />

from € 12.00 to more than € 20.00<br />

per plate.<br />

Trends<br />

The <strong>market</strong> is becoming more<br />

fashionable, this having implications<br />

for the lifespan of your product<br />

range. It is therefore important to take<br />

notice of new developments, colours,<br />

etc. (See also § 10.1)<br />

Market characteristics<br />

Main <strong>market</strong>s<br />

The main <strong>market</strong>s in the EU, are France<br />

and Italy you should however note that<br />

both these countries have a notable<br />

table- & kitchenware production<br />

themselves (See also Chapter 3 and 4).<br />

Sales channels<br />

The main sales channels through which<br />

plates are sold are mixed & independent<br />

retailers, department stores and grocery<br />

multiples. The discounter however is<br />

gaining ground.<br />

Market developments<br />

As noted, the table- & kitchenware<br />

<strong>market</strong> is becoming more informal.<br />

Practical and durable products are<br />

popular at the moment. They need to be<br />

microwave- and dishwasher-proof.<br />

Margins<br />

The margins on table- & kitchenware<br />

are generally low (See also Chapter 4).<br />

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PRODUCT PROFILE: MUGS<br />

Market requirements Product characteristics<br />

Market characteristics<br />

The quality standards / regulations:<br />

The regulations are discussed in<br />

Chapter 9. This chapter also<br />

discusses the eco-label. Besides<br />

the restriction, it is also important<br />

to contact your business partner<br />

about the quality of your products<br />

(see § 11.1). The following<br />

regulations apply to plates (Check<br />

also Table 9.2):<br />

• NEN-EN 1900:1998<br />

• ISO 6486-1:1999<br />

• ISO 6486-2:1999<br />

Packaging<br />

• Protect the products from, for<br />

example, breaking<br />

• A nice packaging has a sales<br />

promoting effect.<br />

• It should give information<br />

about the product (See<br />

marking & labelling in § 9.2)<br />

For more information please read<br />

Chapter 9 and the packing manual,<br />

which can be obtained from CBI<br />

Marking & Labelling<br />

• Identification (name and<br />

address) of the exporter.<br />

Name of the product and<br />

variety.<br />

• Origin and nature of the<br />

product.<br />

• Mark if content is fragile (see<br />

§ 9.1).<br />

• Information about property of<br />

products (for example,<br />

dishwasher safe)<br />

Import regulations<br />

For information about import<br />

regulations we refer to § 9.2.<br />

Relevant documents are:<br />

• AWB or Bill op loading<br />

• EUR 1 for ACP countries<br />

• Form A<br />

Chapter 9 of this <strong>survey</strong> gives you<br />

a good indication of requirements<br />

concerning dinnerware<br />

Materials used<br />

In most cases, dinner plates are made<br />

of the following materials:<br />

• Porcelain<br />

• Ceramic<br />

• Glass<br />

• Plastic<br />

• Metal<br />

Size<br />

The diameter and height of a mug<br />

depends on its functionality and<br />

design, the diameter varies from<br />

approximately 6 – 9 centimetres. The<br />

height varies from 7 – 10 centimetres.<br />

Exceptions are however possible.<br />

Price<br />

The prices vary from € 1.00 to more<br />

than € 20.00. As with plates, there are<br />

roughly three segments. The lower<br />

price segment from € 1.00 to € 4.00.<br />

The medium segment from € 4.00 to<br />

€ 8.00. The premium segment<br />

ranging from € 8.00 to more than €<br />

20.00 per mug.<br />

Trends<br />

The <strong>market</strong> is becoming more<br />

fashionable, this having implications<br />

for the lifespan of your product<br />

range. It is therefore important to take<br />

notice of new developments, colours,<br />

etc. (See also § 10.1)<br />

Main <strong>market</strong>s<br />

The main <strong>market</strong> in the EU, are France,<br />

Germany and Italy. However, note that<br />

all these countries have a notable table-<br />

& kitchenware production themselves<br />

(See also Chapter 3 and 4).<br />

Sales channels<br />

The main sales channels through which<br />

plates are sold, are mixed &<br />

independent retailers, department stores<br />

and grocery multiples. The discounter<br />

however is gaining ground.<br />

Market developments<br />

As noted, the table- & kitchenware<br />

<strong>market</strong> is becoming more informal.<br />

Practical and durable products are<br />

popular at the moment. They need to be<br />

microwave- and dishwasher-proof.<br />

Mugs with funny prints are often sold as<br />

giftware in the EU<br />

Margins<br />

The margins on table- & kitchenware<br />

are generally low (See also Chapter 4).<br />

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11<br />

INTERNAL ANALYSES<br />

The internal analysis is a review of a company's strength and weaknesses in terms of all company<br />

resources, such as export <strong>market</strong>ing capabilities, finance, personnel, internal organisation,<br />

management, infrastructure, etc. As a result of this internal analysis, you will be able to assess to<br />

what extent your company is able to take advantage of the opportunities identified in the former<br />

chapter. Furthermore, with a thorough understanding of your company's unique capabilities, you<br />

are able to invest in opportunities that exploit your strengths.<br />

11.1 Product standards/ quality, Production capacity, Product design & development<br />

and Unique selling points<br />

Product standards/ quality<br />

As can be seen in Chapter 9, the product<br />

legislation in the EU is very strict. Products<br />

which come into contact with food must meet<br />

stringent quality standards in the EU. In<br />

Chapter 9, the most important EU legislation<br />

regarding consumer safety is discussed.<br />

Besides the official legislation laid down by<br />

the EU, products for the table- & kitchenware<br />

<strong>market</strong> generally, must meet stringent quality<br />

standards. It is however difficult to define<br />

precisely the concept “product quality”. Every<br />

importer, wholesaler, retailer etc. applies its<br />

own standards. It is therefore important to<br />

conclude clear agreements on the quality level<br />

of the products to be supplied.<br />

Product design & development<br />

The design of your product is very important,<br />

as can be seen in paragraph 3.2. Good design<br />

and product innovation help to differentiate<br />

products, to establish consumer loyalty and<br />

trust and, in many cases, allow products to<br />

command a price-premium. Design is the<br />

biggest element of value addition. Design<br />

cannot originate in a vacuum. Poor or<br />

inadequate designs can make or mar the<br />

process of successful export <strong>market</strong>ing. Lack<br />

of sufficient understanding of customer needs,<br />

fashion, trends, and lifestyles can result in<br />

incomplete design appreciation. Designers<br />

need considerable exposure to the target<br />

<strong>market</strong> before the design process can succeed.<br />

The customer-design interface is a matter of<br />

deep understanding of the target <strong>market</strong>.<br />

Consistent product development gives your<br />

company a unique selling point (USP).<br />

Questions an exporter should pose:<br />

• What management quality standards does<br />

your company fulfil (ISO)<br />

• What is the general level of your product<br />

quality compared to other products in the<br />

identified <strong>market</strong><br />

• In case labelling significantly improves the<br />

competitiveness of your export product,<br />

which one is the most interesting for your<br />

product-<strong>market</strong> combinations<br />

Questions an exporter should pose:<br />

• What quantities do you produce<br />

• How is the present capacity being used<br />

• What quality level can you maintain for a<br />

longer period of time<br />

• How many different products can you<br />

produce in a given time<br />

• What is the influence of the new export<br />

activity on your domestic sales<br />

• What will be the cost of setting up additional<br />

production capacity and is that possible at<br />

all<br />

• What cycles of production apply to your<br />

products Is there a seasonal emphasis and<br />

how does this match up to the demand in the<br />

target <strong>market</strong><br />

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Production capacity<br />

Although some foreign buyers are looking for a 'spot' purchase, most importers are searching for<br />

suppliers who produce a quality product at a fair price with continued availability. If you are<br />

merely looking to <strong>market</strong> your sporadic surplus capacity, then entry into the European <strong>market</strong><br />

will probably be a disappointment. On the other hand, if your company is willing to devote even<br />

10 percent of its production capacity to foreign <strong>market</strong>s and the servicing of these accounts, then<br />

an exporter can reasonably expect to build substantial, permanent trade in those <strong>market</strong>s suited to<br />

its products. However, keep in mind that, often, the volume of the product <strong>market</strong>ed is not as<br />

important as the consistent and reliable supply of the product.<br />

Unique selling points<br />

A means to assess your company's potential in<br />

exporting is by examining the unique or<br />

important features of your company and<br />

products. If those features are hard to<br />

duplicate abroad, then it is more likely that<br />

you will be successful overseas. A unique<br />

selling proposition (USP) defines what makes<br />

your business unique from every other<br />

competitor in the field. It spells out the precise<br />

niche you seek to fill, and how you aim to fill<br />

it.<br />

Questions an exporter should pose:<br />

• What is the speciality of your company In<br />

terms of for example skills, production,<br />

design, price, delivery.<br />

• In what respect is your company outstanding<br />

or unique in this speciality<br />

• How can you explain your unique selling<br />

point (USP) to a buyer<br />

The competitive analysis in Paragraph 10.2 will help you identifying your strong points in<br />

comparison with the strengths and weaknesses of your competitors<br />

11.2 Logistics<br />

As stated in paragraph 10.4, material management includes all the activities which are conducted<br />

to ensure that raw materials and semi-finished goods run smoothly through the production<br />

process. This also includes planning your production process in an efficient manner. Controlling<br />

your supply of raw materials and personnel can improve your flexibility, prevent delay and<br />

failures and cut production times. However, the most important thing is that it can reduce your<br />

costs.<br />

The production process starts with obtaining<br />

raw materials, this includes finding suppliers<br />

of raw materials, closing deals (contracts),<br />

determining the quantity and, maybe,<br />

spreading your purchases amongst different<br />

suppliers. The latter is very important, as it<br />

will spread your risk and prevent you from<br />

becoming too dependent on just one supplier.<br />

Hiring personnel is also an important aspect of<br />

the production process. Make sure that the<br />

amount of personnel matches the work which<br />

is available. When talking about personnel, we<br />

often speak of “Human resources”, which<br />

includes, for example, drafting contracts,<br />

training, motivating, hiring and salary<br />

systems.<br />

Questions an exporter should pose:<br />

• Do you have reliable suppliers, which offer a<br />

constant level of quality<br />

• Are you able to meet required delivery terms<br />

in time/ quality<br />

• Do you have more than one raw material<br />

supplier This with the aim to minimise your<br />

supply risks.<br />

• Do you have skilled workers – are they easy<br />

obtainable<br />

• How is your organisational ability to cope<br />

with peak periods<br />

The internal logistical and production process is very important for the competitive position of<br />

your company. Reviewing your production processes regularly can help you to improve the<br />

product quality, shorten production times and save costs. When doing so, it is very useful to learn<br />

about “new” production techniques.<br />

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11.3 Marketing & Sales<br />

One of the most difficult aspects of exporting, even for established exporting companies, is that<br />

of ensuring optimal exposure to, and communication with, decision-making personnel in a client<br />

company, often thousands of miles away. For an exporter, it is very important to know the “ins<br />

and outs” of the export <strong>market</strong>. The best method of achieving this objective is, unquestionably, to<br />

have an able company representative in the country or geographical area concerned. Such an<br />

individual must be proficient in the language of the target <strong>market</strong>. Ideally, he or she will have a<br />

profound technical knowledge of, and practical experience with the various table- &<br />

kitchenwares. He/she must also be conversant with the technical implications of provisions in<br />

trade contracts, and should also be able to negotiate confirmed contracts swiftly on behalf of the<br />

exporter and should have access to rapid communication facilities (See also Paragraph 10.3 sales<br />

channel assessment). A big disadvantage of a company representative in the country concerned is<br />

the high costs involved.<br />

Other methods of keeping in contact with your business relations and their <strong>market</strong> are E-mail<br />

and/or telephone. These are also excellent communication and sales tools which only cost a<br />

fraction of a sales representative. We should however point out that an occasional visit to your<br />

business relations and their country can help you to get to know the <strong>market</strong> and the preferences of<br />

consumers there. Visiting and attending trade fairs in the export <strong>market</strong> can also provide you with<br />

interesting <strong>market</strong> knowledge (See also Paragraph 13.4).<br />

Marketing<br />

Marketing is about adapting the product, price,<br />

promotion and distribution to the <strong>market</strong><br />

requirements. This makes the <strong>market</strong>ing<br />

department a vital part of the organisation.<br />

The effects of <strong>market</strong>ing on your management<br />

are two-fold. First, it should inspire all<br />

corporate activities to be concentrated on the<br />

main goal: to satisfy the needs and wants of<br />

your customers. Your customer deserves all<br />

your attention since he (or she) is the source of<br />

your income. In this sense, <strong>market</strong>ing<br />

An important decision an exporter should make,<br />

is whether to export on its own or rethink other<br />

possibilities like for example contract<br />

manufacturing (See Paragraph 10.4 and Chapter<br />

4) Marketing efforts in the case of contract<br />

manufacturing will be focussed on fewer parties,<br />

than general export <strong>market</strong>ing. On the other hand,<br />

contract manufacturing possibly requires extra<br />

investments in order to fulfil the volume and<br />

quality standards of the customer.<br />

describes an attitude of all people involved. Secondly, the <strong>market</strong>ing concept also includes the<br />

techniques and methods required to ‘bring the right product to the right consumer at the right time<br />

and place’. In general, <strong>market</strong>ing will keep your organisation in touch with <strong>market</strong> requirements<br />

and changing <strong>market</strong> trends. This, of course, is crucial to your success as an exporter (See also<br />

Chapter 3).<br />

In most cases, manufacturers in the table- & kitchenware <strong>market</strong> make use of two types of<br />

<strong>market</strong>ing: consumer <strong>market</strong>ing to your end-consumers often called business-to-consumer<br />

<strong>market</strong>ing (mainly persons, seldom organisations), and industrial <strong>market</strong>ing to your intermediate<br />

buyers and trade partners, often called business-to-business <strong>market</strong>ing. For further information<br />

about this topic, we refer to the CBI’s “Export Planner”.<br />

Sales<br />

An efficient telephone sales department is also an important prerequisite for successful <strong>market</strong><br />

participation. The essential tool used in the telephone sales department is a detailed up-to-date<br />

customer database. The customer database contains the following information:<br />

• Basic data on the customer (long-term data, such as name, address, telephone number,<br />

etc.).<br />

• Changing data on customers (data resulting from business with the customer, such as<br />

telephone calls, offers, sales statistics, etc.).<br />

90


11.4 Financing<br />

Obtaining financial resources is one of the most difficult tasks for exporters in developing<br />

countries. In general, exporting consumes a lot of financial resources. A company should<br />

therefore assess its financial position. This largely determines your exporting prospects. It is no<br />

good developing five new <strong>market</strong>s if the company only has the money to develop one.<br />

The following aspects should be considered when the financial capabilities of an exporting<br />

company are being analysed: capital investment, the stage of the production process and<br />

complementary activities, and the financial settlement of the contract. Some parts of the table- &<br />

kitchenware <strong>market</strong> are capital intensive and regular investment in new equipment is required to<br />

ensure competitiveness. This is particularly the case in those parts of the industry which are<br />

highly automated and produce long runs of relatively undifferentiated products.<br />

The most likely source of export financing is earlier retained earnings. Other sources of finances<br />

are private funds and your commercial overdraft facility (line of credit) with your bank.<br />

According to the ITC, the most common method of financing in developed countries is an<br />

operating line of credit. This resource, however, is not always available to exporters in<br />

developing countries. Because of the lack of these financial resources, many manufacturers in<br />

developing countries ask for an advance. An exporter could for example ask the buyer to pay 1/3<br />

of the total order at the time when the order is placed, 1/3 at the time of shipment (when the<br />

goods have been produced) and 1/3 at the time of delivery to the importer/ retailer, etc. This<br />

provides you with enough financial resources to make the expenditure and investments required<br />

throughout the production process.<br />

If your country has an export development bank or International Financial Institutions (IFI’s), you<br />

can explore what terms they can offer you, for example loan terms, subsidy, etc. According to the<br />

International Trade Centre, these multilateral development banks, or International Financial<br />

Institutions (IFI’s), award contracts worth approximately $30 billion each year. Note that the<br />

IFI’s can have certain regulations, with which you have to comply in order the get support.<br />

Also, check paragraph 13.4, concerning the different types of payment conditions. Further<br />

information concerning this topic is to be found on the website of the International trade Centre<br />

publication, www.intracen.org.<br />

11.5 Capabilities<br />

You should consider the fact that exporting will put an extra strain on all your people and your<br />

other corporate resources. In fact, you are effectively considering starting-up an additional<br />

commercial operation, parallel to your domestic one. The main question should be whether you<br />

think the organisation is strong enough to cope with the extra challenge and workload of the<br />

exporting venture. This is an extremely important decision, since the very existence of the<br />

company may be at stake. The competition in Western <strong>market</strong>s is severe. Many entrepren<strong>eu</strong>rs<br />

before you have tried to penetrate these <strong>market</strong>s and failed. It is therefore important to<br />

acknowledge the issues below.<br />

Commitment to export<br />

It is important to consider whether the company employs people who are able to sell and develop<br />

an international business. The company should be able to generate the physical and administrative<br />

infrastructure to deal with increased activities due to exporting - not only in dealing with orders<br />

but also with processing customs and shipping documentation. If this type of infrastructure is<br />

limited, it will be a weak spot in developing sustained export activities.<br />

Your export <strong>market</strong>ing efforts will need a sizeable budget in order to succeed. Contacting and<br />

maintaining clients, printing brochures, attending fairs, etc could cost a substantial amount of<br />

your financial resources.<br />

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Export experience<br />

There is a consensus that <strong>market</strong>-specific know-how can create a form of distinctive competence<br />

in key <strong>market</strong>s, on for example cultural issues, organisational routines, structure and controls.<br />

Furthermore, institutional knowledge concerning regulations, finance and economics are very<br />

beneficial when conducting trade.<br />

Language skills<br />

It is essential for an exporter that contacts are handled in a professional manner in order for the<br />

cooperation to flourish. Communication is vital when dealing with clients. In the EU, most people<br />

speak English. When language differences arise, an exporter should take precautionary measures,<br />

like hiring an interpreter, to ensure smooth handling of communication.<br />

Trading practises<br />

Be honest and direct concerning quality, capacity, and delivery times. For example, in case of<br />

delays, inform the importer in good time and state the reason for the delay. This will increase<br />

your credibility as an exporter.<br />

Design & research capabilities<br />

The needs and wants of <strong>market</strong>s abroad will almost certainly differ from those of your home<br />

customers. That means that you may have to change your (product) design to adapt it to the<br />

foreign customers’ wishes. In <strong>market</strong>ing terms you will have to match your product with the<br />

<strong>market</strong>’s needs and wants. Good research and design capabilities are indispensable if you want to<br />

successfully export to the European Union.<br />

Innovation is another important capability. Products in the table- & kitchenware <strong>market</strong> have a<br />

limited life-time. They become old-fashioned or outdated rather quickly. The underlying reason is<br />

that the consumers’ preferences are constantly evolving and changing, even to the point of<br />

unpredictability.<br />

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12 DECISION MAKING<br />

12.1 SWOT and situation analysis<br />

After assessing the external <strong>market</strong> environment in the Chapters 1 to 10, you will be able to<br />

identify specific <strong>market</strong> opportunities and threats, related to your line of business. Chapter 11<br />

describes the position of the producing company in relation to the <strong>market</strong>. This internal analysis<br />

identifies strengths and weakness of the exporter’s company. Combining, the external and<br />

internal analyses results in the so-called SWOT analysis (strengths, weaknesses, opportunities,<br />

threats). In the SWOT, the most important strong and weak points and the important opportunities<br />

and threats are ranked in order of importance. The purpose of this analysis is, to clearly show the<br />

position of the company in the <strong>market</strong>. The essence of the SWOT analysis is to find a <strong>market</strong><br />

segment where there is an opportunity that<br />

matches the strengths and where the threats have a<br />

minimum impact on the vulnerable side, the<br />

Strengths<br />

Weaknesses<br />

weaknesses of the company. In fact, by matching<br />

external opportunities and internal capabilities, the<br />

exporter should be able to identify suitable target<br />

countries, <strong>market</strong> segments and target product(s)<br />

within these countries.<br />

Opportunities<br />

Threats<br />

12.2 Strategic options & objectives<br />

After assessing suitable target <strong>market</strong>s, the company is now able to conclude on whether or not to<br />

export. When you have decided to go ahead with your export preparations, your first step is to<br />

prepare the <strong>market</strong>ing mix, the instruments for export <strong>market</strong>ing. You have finished the analytical<br />

work; now you should start with the constructive part - also called synthesis - of the job. It<br />

requires a different mindset, which will complicate things. Designing the <strong>market</strong>ing mix implies<br />

that all the tools and methods you need for exporting will be made fit for that purpose. Important<br />

items in this process of preparation are decisions on ‘what, when, where, why and how’:<br />

• what product<br />

• offered at what price to the target <strong>market</strong>,<br />

• through which sales channel (where),<br />

• at which period of the year to approach the sales channel (when);<br />

• how the customer is informed about your product<br />

• why the customer will respond to your offer and, finally,<br />

• how to handle aspects of manufacturing and quality in reaction to the consumers’<br />

response.<br />

The next phase of the export <strong>market</strong>ing process is to draw up an Export Marketing Plan (EMP),<br />

which defines a <strong>market</strong>ing strategy and an operational plan, stating how the company is going to<br />

penetrate the identified <strong>market</strong>. The <strong>market</strong>ing strategy is designed on the basis of the information<br />

collected in the internal and external analysis. The <strong>market</strong>ing tools will be described in the<br />

following chapter (Chapter 13). Formulating an export <strong>market</strong>ing strategy, based upon sound<br />

information and its proper assessment, increases the chances that the best options will be selected,<br />

that resources will be utilized effectively, and that efforts will consequently be carried through to<br />

completion. For assistance in writing an EMP, please refer to the CBI's "Export Planner".<br />

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13 MARKETING TOOLS<br />

Now that you have decided to go ahead with your export preparations, your first step is to prepare<br />

the <strong>market</strong>ing tools (product, price and promotion, place), the instruments for export <strong>market</strong>ing.<br />

Which <strong>market</strong>ing tools can you use to successfully build your export business This chapter will<br />

provide you insight and give tips how to make use of your <strong>market</strong>ing tools to promote the sales of<br />

your products and to build a favourable trade relationship. This chapter deals with the following<br />

subjects:<br />

• Matching products and the product range (specifying range, width and depth,<br />

specifying the product characteristics, packaging design and seasonal influences)<br />

• Building up a relationship with a suitable trading partner<br />

• Drawing up a general or a specific offer<br />

• Handling the contract, divided into contract terms and contract fulfilment<br />

• Sales promotion advertising and communication, sales organisation and participation<br />

in trade fairs.<br />

13.1 Matching products and the product range<br />

Most table- & kitchenware is sold in sets (crockery sets, cutlery sets, etc.) it is therefore important<br />

that the manufacturers of these products offer a consistent range of different products (product<br />

range depth). This range can include matching mugs, plates, bowls, teapots, etc. Some<br />

manufacturers even offer crockery sets consisting of more than 50 items. Figure 13.1 gives<br />

examples of different ranges. Most table- & kitchenware manufacturers offer different product<br />

ranges (product range width). These product ranges vary in price, design and width (number of<br />

products included). Most sets sold are sets for either 4, 6 or 8 persons. Most EU manufacturers<br />

offer different product ranges, each range designed for a specific <strong>market</strong> segment. The price and<br />

quality are also adapted to these different segments<br />

Figure 13.1 Different set of table- & kitchenware<br />

Crockery set Cooking set Cutlery set<br />

Product design<br />

Chapter 3.3 described that the table- & kitchenware <strong>market</strong> is shifting from traditional to more<br />

fashionable. This development means that, according to sources at the Birmingham Autumn Fair,<br />

trends in the table- & kitchenware <strong>market</strong> change totally every twelve to eighteen months.<br />

Product design has become of increasing importance. In Chapter 3.2, developments concering the<br />

different product groups were discussed.<br />

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Presentation of product characteristics<br />

An importer can only select you as a suitable business partner if he/she knows exactly what range<br />

you can offer. A precise review of the product range, therefore, aims at identifying the most<br />

suitable candidate(s) out of the many potential customers. A product range consists of several<br />

product groups (range width), each with several different products (range depth). One product can<br />

have several variations, as described earlier in this paragraph.<br />

It is therefore wise to compose a list all the products you produce, together with their varieties.<br />

Furthermore, state their colour, size, the period in which you are able to supply them and the<br />

packaging method. This enables potential customers to make an appraisal of your complete<br />

product range. It is very important to keep the list up-to-date. The presentation of your products<br />

and its range should be flexible, so that adjustments and changes can be made, if the need arises.<br />

Packing your product<br />

Besides a protective function, packaging is also very important for the <strong>market</strong>ing of the product.<br />

An attractive package design can have a sales promoting effect. Today’s consumers want to know<br />

what they are buying. Therefore, it is important, as a minimum, to state the product brand name,<br />

special materials used in the production, the name or logo of the manufacturer and country of<br />

origin. The label on the article has to provide these data in a language comprehensible in the<br />

target <strong>market</strong>. For more information, check also paragraph 9.4.<br />

13.2 Building up a relationship with a suitable trading partner<br />

Among the many potential customers, you must identify those who match your own company<br />

profile and product range and are therefore most suitable for building up a relationship. Check<br />

your potential trade partners’ financial status, credibility, and reliability. A good source for<br />

information about your (potential) trading partners is Dunn & Bradstreet (www.dnb.com). This<br />

company specialises in sourcing reliable, consistent and objective credit information about<br />

potential trading partners.<br />

At the end of the identification phase, the supplier should have selected the names and addresses<br />

of suitable trading partners. Check the following sources of information to find information on<br />

your trade partners. Note that many sources of information only answer written inquiries!<br />

Generally, a concise but detailed inquiry improves the chances of precise identification.<br />

• The foreign–trade Chamber of Commerce of the country of destination.<br />

• The Economic Affairs department of the official representative (Embassy or Consulate)<br />

of the country of destination.<br />

• Import promotion organisations<br />

• Trade associations<br />

• Own company’s public and private trade promotion bodies<br />

• Own country’s diplomatic and consular representatives<br />

• Chambers of commerce<br />

• Trade fair organisers (see Appendix 4.3)<br />

Evaluate the received names and addresses, using the following criteria:<br />

• Is the importer active in the country you have selected<br />

• Does the importer focus his activities on corresponding (i.e. your) product groups<br />

• In which <strong>market</strong> segment is the importer active<br />

• Names of other suppliers to the importer<br />

• Were you supplied with enough and sound information about the reliability of this<br />

partner<br />

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13.3 Drawing up an offer<br />

There are two different kinds of offers: general and specific. The purpose of a general offer is to<br />

make the first contact with potential trading partners with whom the supplier is not yet personally<br />

acquainted. A general offer consists of sending a short profile of your own company and a<br />

summary of your product range. Furthermore, it might help to send a reference list of existing<br />

customers. Write a personal letter, briefly introduce your company and tell what you have to<br />

offer. A specific offer is legally binding for a certain period. You must therefore be capable of<br />

fulfilling the terms of contract. You should make up a specific offer only when you know the<br />

business partner personally or after you have made the initial contact. A specific offer should<br />

consist of two parts: a written offer and/ or product sample. The written offer should include:<br />

• Name of the person responsible in your company.<br />

• Exact description of the goods offered (preferably using an internationally valid quality<br />

standard specification).<br />

• Price of the goods offered in accordance with the Incoterms (ICC publication; if<br />

applicable, split up by delivery quantities or quality).<br />

• Possible delivery date and terms of delivery and the validity date of the offer<br />

A written offer can be accompanied by product samples. The sample, if it is of good quality, will<br />

inspire confidence in prospective buyers. Product samples must correspond to the goods available<br />

for delivery; if they do not, this can have a lasting negative effect on the business relation. Define<br />

the quality of the product if possible, provide quality certificates from an internationally<br />

recognised inspection organisation and send a reference list of existing customers.<br />

When making an offer, the price of the products is very important. The height of the offered price<br />

is one of the determining factors for whether the importer wants to order your products (check<br />

Chapter 10.4). Recommendable action for both general and specific offers:<br />

• A telephone call to ask whether the offer and the samples, if applicable has/ have arrived.<br />

• An invitation to visit your company.<br />

• Possibly, propose a visit to the country of destination. In that case, if necessary, hire an<br />

interpreter, ask your own consulate or other intermediaries for assistance.<br />

Communication by e-mail is an excellent tool, especially when a rapid reaction is needed, e.g.<br />

within 24 hours. This is a very positive, sustaining element towards buyers, making a reliable<br />

impression and instilling confidence. The most exacting aspect of exporting, even for the<br />

established exporting company, is that of ensuring optimal exposure to, and communication with,<br />

decision-making personnel in a client company. The best method of achieving this objective is to<br />

have an able company representative in the country concerned. Such an individual must be<br />

proficient in the language of the target <strong>market</strong>. Ideally, he or she will have thorough technical<br />

knowledge of the implications of provisions in trade contracts and should have access to rapid<br />

communication facilities. A personal sales visit should be attempted, accompanied by an adequate<br />

sample of the product on offer.<br />

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13.4 Handling the contract<br />

Differing customs, habits and traditions can cause problems in business relationships, even after<br />

both partners have carried out sound preliminary investigations. To prevent problems, many<br />

companies make use of a contract. This written settlement of an agreement is common practice in<br />

most Western countries. Many partners would be satisfied with a simple letter of agreement,<br />

some even with verbal arrangements (which are legally binding for the parties). But the safest<br />

way is to write a contract. It will avoid misunderstandings which could trouble the co-operation.<br />

In writing a contract, pay particular attention to the official protection that his country’s laws<br />

provide for the trade partner. Although the European Union tries to harmonise regulations on this<br />

aspect, some differences still exist. Most national Chambers of Commerce and Industry have a<br />

standard format for an agency- or importer’s contract, as will the International Chamber of<br />

Commerce (ICC) in Paris, France. Ask your (prospective) trade partner to provide you with a<br />

copy. Always have the final draft of the contract checked by your legal advisers. As it binds the<br />

company, the managing director should approve it. He may ask you - as a company representative<br />

- to sign it.<br />

The terms of the transaction describe to which extent the buyer and the seller have divided the<br />

costs and the risks of the transaction between them. The seller’s task is to make the goods<br />

available; to that task the ‘terms of delivery’ pertain. The buyer should pay, which will be<br />

specified in the “terms of payment”. The terms of delivery describe in detail at what moment the<br />

legal possession (‘title’) of the goods changes hands and at what moment the risk burden shifts to<br />

the buyer. These terms are universally accepted and indicated as “Incoterms” (See CBI’s “Export<br />

Planner”). The Incoterms are also available at the International Chamber of Commerce website<br />

at www.iccwbo.org. The terms of payment describe how and when the money is transferred to the<br />

seller. When contracts are used, the following terms should be considered:<br />

Contract terms:<br />

• Conclude the delivery conditions according to Incoterms.<br />

• When delivering for the first time, it is common to deliver the goods free of commission and<br />

freight-paid.<br />

Contract fulfilment:<br />

• Procure the delivery documents in good time.<br />

• If there is a supply agreement, comply strictly with all parts.<br />

• If you cannot comply with any part of the agreement (e.g. delivery delays or quality<br />

problems), inform the customer clearly and in good time.<br />

• Co-operate on a partnership basis and seek a common solution if conflicts arise.<br />

• Fulfilling the contract should have a high priority, particularly when delivering for the first<br />

time.<br />

Trade relations between exporter and importer are based on trust and can only be built up by<br />

meeting the high expectations of the importer. If an importer finds that the product does not meet<br />

his expectations, this will immediately backfire on the business relationship with the exporter.<br />

Terms of payment<br />

The determination of payment conditions for a regular export transaction is part of the package of<br />

negotiations between seller and buyer. However, they have more or less opposing interests. The<br />

seller wants to have the largest possible guarantee of financial coverage for the goods he has to<br />

supply according to his sales contract. The buyer wants to be sure about availability, quantity and<br />

quality of the goods he buys, before he pays the agreed price.<br />

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Payment methods vary according to the extent to which the business relationship is developed<br />

and to the availability and popularity of the product offered. The most popular payment method<br />

for beginner traders is to make use of an irrevocable Letter of Credit (L/C) and then, later on, to<br />

trade on the basis of “documents against the payment” (D/P). The L/C is an often-used method of<br />

payment. On the whole, payment takes place on 30 days after the products have been delivered. If<br />

a product is not so popular, or in a starting business relation, payments may take from 60 to 90<br />

days. For popular products, product against payment (P/P) is used more often. Companies having<br />

subsidiaries in third countries generally use clean payments. However, clean payments are often a<br />

starting point for friction, if the importer is not totally trustworthy.<br />

General methods and terms of payment are:<br />

• Clean payment; this method is used when both parties know each other well. The process<br />

is fast and reliable, depending on the credit worthiness of the importer. The bank carries<br />

out the transactions through the Swift electronic data system and the transfer costs are not<br />

very high.<br />

• Documents against payment (D/P): Also known as cash against documents (CAD). The<br />

buyer takes possession of the goods only after payment. Although this method is not very<br />

popular, it is very safe and the costs amount to about 0.1%. One can also make use of a<br />

“documents against acceptance of a bill of exchange.” The Bill of Exchange is not<br />

commonly used in the European Union and it does not guarantee that the bill will be paid;<br />

it is less secure than the D/P.<br />

• The letter of Credit (L/C); is very often used in the beginning of a business relationship<br />

when the importer and exporter do not know each other very well. The LC is irrevocable<br />

and will always be paid. The costs are higher when compared to the D/P method, namely<br />

0.5%. This method is widely used in the European Union when dealing with exporters<br />

from outside Europe.<br />

• Bank guarantee; The buyer’s bank will present a bank guarantee for the amount of the<br />

invoice<br />

• Cheques; Bank guaranteed cheques are generally no problem, though cashing may take<br />

some time, up to six weeks. Not all personal cheques are accepted.<br />

The most commonly used trade terms are:<br />

• CIF (Cost, Insurance, and Freight): Under this condition, for shipments to a designated<br />

overseas port of import, the seller quotes a price for the goods, including insurance costs<br />

and all transportation charges, to the point of disembarkation from the vessel or aircraft.<br />

The seller pays for the cost of unloading cargo at the port of destination, to the extent that<br />

they are included in the freight charges. If the charges are separate then the buyer is<br />

responsible for them.<br />

• FOB (Free on Board): Under this term, the seller quotes a price for goods that includes<br />

the cost of loading at the port of departure. The buyer arranges for transportation and<br />

insurance.<br />

• CFR (Cost and Freight): For shipments to a designated overseas port of import, the seller<br />

quotes a price for the goods that includes the cost of transportation to the named point of<br />

debarkation. The buyer is responsible for the cost of insurance. This is referred to as<br />

“C&F” in the old Incoterms. The seller pays for the cost of unloading the cargo at the<br />

port of destination, to the extent that they are included in the freight charges. If the<br />

charges are separate then they fall to the account of the buyer.<br />

It is recommended that quotations to new European customers should be made on a CIF basis.<br />

However, supplier and importer are free to negotiate any other condition. For further information<br />

concerning this topic we refer to the CBI’s export planner.<br />

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13.5 Sales promotion<br />

One of the major critical success factors for<br />

exporters of table- & kitchenware to the<br />

European Union is sales promotion. The<br />

objective of sales promotion is to increase<br />

sales. Methods of sales promotion include<br />

giving free samples, discounts, coupons,<br />

special ad items, etc. Sales promotion<br />

measures develop and expand customer<br />

relations, which obligate the selling company<br />

to take good care of existing customers (continuity). This includes, for example, expressions of<br />

thanks to business partners and regular updates on the product range. Supplying brochures of the<br />

product range may be useful for promoting sales, just like keeping business partners up-to-date on<br />

recent product developments. The consequences for production capacity can be that, in some<br />

cases, the production capacity has to be increased in order to service both existing and new<br />

customers.<br />

Advertising and communication<br />

Advertising refers to communication channels<br />

with the aim of increasing the sales of your<br />

products. The prerequisites for successful<br />

communication measures are a clearly defined<br />

target group (“Who buys my product”) and a<br />

well-formulated message (”What do I want to<br />

tell my customer”). Keep in mind that some<br />

communication tools are more suited to<br />

reaching a certain target group than others. For<br />

example, when you want to reach seniors the<br />

internet is probably not the most suitable<br />

communication channel. Timing is also very<br />

important when you want to successfully<br />

advertise your products. In the EU, most<br />

retailers decide twice a year on what products<br />

to sell in the coming season. January/<br />

When contacting your contact in Europe keep in<br />

mind the following:<br />

• Working hours in Europe are usually<br />

between 8:30 –17:30 from Monday till<br />

Friday.<br />

• The difference in time, between your country<br />

and the country of your contact.<br />

It is advisable to commence with communication<br />

measures, which require only a small amount of<br />

planning and co-ordination, such as revising the<br />

company’s standard printed matter.<br />

• Standardise all printed-paper used outside the<br />

company (letterheads, business cards, fax<br />

form, etc.).<br />

• Prepare long-term sales documentation<br />

(company brochure, product range review,<br />

etc.).<br />

• Prepare product-specific sales leaflets.<br />

Make sure your promotion material is up-to-date<br />

February and July/August are the two most important sourcing periods in the year. For example,<br />

in August most retailers are on the look out for Christmas products. Introductions of new<br />

collections as well as advertising should be adapted to these cycles!<br />

When looking at the different advertising and communication possibilities it is important to take<br />

certain factors into account, like the price and the amount of planning the medium requires. These<br />

are important aspects when determining the most suited medium for your product. In Table 13.1,<br />

we have given a number of parameters which can be used to measure the costs of any<br />

communication action. It should be noted that degrees given in Table 13.1 are only approximate.<br />

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Table 13.1 Parameter to measure the costs of a communication action<br />

Criteria 4 Target group Amount of<br />

planning<br />

Cost per<br />

contact<br />

Total costs Dispersion<br />

losses<br />

Measures 6<br />

and cooperation<br />

Standard printed Existing & + +/++ +/++ +/++<br />

Matter<br />

Potential customers<br />

Phone & mail Existing & ++ ++ ++ +<br />

Campaigns Potential customers<br />

Advertising Existing & ++ ++ ++ ++<br />

in trade journals Potential customers<br />

(Partially unknown)<br />

Internet & E- Existing & +++ + ++ +<br />

commerce<br />

Potential customers<br />

CD-rom Existing & ++ + + +<br />

Catalogues Potential customers<br />

Radio & TV Consumers +++ + +++ +++<br />

Advertising<br />

Promotion to the Consumers +++ +++ +++ ++<br />

Retail trade<br />

+ = low ++ = average +++ = high<br />

Internet & E-commerce<br />

As stated earlier, the Internet is a popular medium for business, not only for consumers but also,<br />

and especially, for industrial buyers and suppliers. For exporters, this medium offers a lot of<br />

business opportunities. The British Department for International Development (DFID)<br />

distinguishes the following applications:<br />

• Online catalogues/ webshop: Despite the fact that sales of table- & kitchenware via online<br />

catalogues to individual consumers are generally low, web-based catalogues can be a<br />

helpful enhancement when dealing with wholesale and retail buyers (business-to-business<br />

or B2B).<br />

• Telling stories: A website can be used to tell the story of your company. Furthermore, a<br />

historical and cultural background of products and fabrication processes can be given.<br />

• Email is by far the most important application for a manufacturer in developing countries.<br />

• Market information; the Internet is an ideal medium for finding information about<br />

European <strong>market</strong>s. E.g. it allows manufacturers to see what table- & kitchenwares are<br />

currently on sale in stores in the EU-countries.<br />

You should however be realistic about using the Internet as a sales medium. At this moment, only<br />

a few companies employ the Internet successfully. According to the <strong>survey</strong> of the British<br />

Department for International Development (DFID), internet sales of table- & kitchenware, like<br />

many other products, are quite small. Furthermore, developing and maintaining an interesting, upto-date<br />

website can cost a substantial amount of money, time and expertise.<br />

If you decide to develop a website, is it very important to register the website at different search<br />

engines. Search engines, such as Google, Yahoo, Alta Vista etc., are still the commonest way<br />

people use to find websites and information sources on-line. If you sell e.g. table- &<br />

kitchenwares, you will have to submit so called ‘key words’ like “tableware” to the search<br />

engines. Secondly you should create clickable ‘links’ on your website with other companies’<br />

websites, which, in return, place links on their website to yours. This approach enhances the socalled<br />

ranking of your website in the different search engines’ results.<br />

100


A ‘ranking strategy’ is very important, but increasingly hard to achieve, since every company<br />

wants to realize high listings. Creating an attractive ranking for your website has therefore more<br />

and more become a specialist’s job.<br />

Participation in trade fairs<br />

Once the final decision is made that your<br />

company will focus on exporting for the years<br />

to come, remember: “Exporting is a long-term<br />

business” and the decision to start exporting<br />

Think of the language problem and the physical<br />

presentation of the front liners!<br />

must be a very well considered. Participation in national and international trade fairs may be a<br />

useful sales promotion tool in the table- & kitchenware sector. However, besides a heavy<br />

financial involvement (participation fees, travelling, accommodation, sampling etc.), trade fair<br />

participation requires advance knowledge and a detailed <strong>survey</strong> because of its complex nature:<br />

• Selection of a suitable trade fair (See Appendix 4.3)<br />

• Preparations for participation, design and lay-out of the stand, which includes lighting,<br />

furniture, wall and floor coverings, decorations, drinks (coffee, tea etc.) etc. Skilled staff<br />

(office and frontliners) is necessary.<br />

• Follow-up activities.<br />

Pre-fair activities:<br />

• Update your collections (try to be up-to-date)<br />

• Update your customer files.<br />

• Prepare all documentation (business cards, company brochures, leaflets).<br />

• Make use, if possible, of a business-related consultant.<br />

• Make a preparatory mailing, informing your present and potential clients of your exact<br />

booth location at the fair and invite them to visit you and/or propose to visit them (i.e. the<br />

existing clients).<br />

.<br />

Running fair activities:<br />

• Register all contacts<br />

• List them under different priority levels, i.e.: “High”, “Medium” and “Low”.<br />

• Be a perfect host! Bear in mind that most visitors have travelled a long way and come<br />

with great expectations!<br />

Post-fair activities:<br />

• Enter all your contacts in a database or file them.<br />

• Fulfil your promises in time, concerning sending samples, leaflets, brochures, price lists,<br />

quotations etc.<br />

• Send the contacts a “Thank you” letter for visiting your booth.<br />

• Make a second mailing several months after the first one, to remind your contact that you<br />

are at his disposal to answer any inquiry. Eventually make the contact a “special offer”!<br />

Import Promotion Organisations, Branch Organisations, Test Institutes, Commercial Departments<br />

of Embassies, Consulates, and related business consultants of the table- & kitchenware sector<br />

may be of help in providing information about relevant trade fairs. A detailed list of trade fairs is<br />

given in Appendix 4.3 of this <strong>market</strong> <strong>survey</strong>. Some of these organisations and/or persons may<br />

also advise and/or assist the exporter in his participation in a trade fair. For further information,<br />

we also refer to the International Trade Centre publication “International Craft Trade Fairs: A<br />

Practical Guide”. The guide can be obtained on their site www.intracen.org. Also check the<br />

CBI’s export manual “Your Image Builder”.<br />

101


APPENDIX 1<br />

HS NOMENCLATURE<br />

The list of developing countries as applied in this <strong>market</strong> <strong>survey</strong>, is the OECD DAC list of<br />

countries receiving Official Development Assistance (Part I). The list used is the one as at<br />

1/1/<strong>2003</strong>.<br />

PLASTICWARE<br />

Hs code Description<br />

3924 1000 Tableware and kitchenware, of plastics<br />

9090 Household articles and toilet articles, of plastics other than regenerated cellulose (excl.<br />

Tableware, kitchenware, baths, shower-baths, wash-basins, bidets, lavatory pans, seats<br />

and covers, flushing cisterns and similar sanitary ware)<br />

9019 Household articles and toilet articles, of regenerated cellulose (excl. Tableware,<br />

kitchenware, baths, shower-baths, wash-basins, bidets, lavatory pans, seats and covers,<br />

flushing cisterns and similar sanitary ware)<br />

WOODWARE<br />

Hs code Description<br />

4419 0000 Tableware and kitchenware, of wood (excl. Interior fittings, ornaments, cooperage<br />

products, tableware and kitchenware components of wood, brushes, brooms and hand<br />

sieves)<br />

0010 Tableware and kitchenware, of tropical wood as specified in additional note 2 to this<br />

chapter<br />

0090 Tableware and kitchenware, of wood (excl. 4419.00-10)<br />

CHINA & PORCELAIN<br />

Hs code Description<br />

6911 1000 Tableware and kitchenware, of porcelain or china (excl. Ornamental articles, pots, jars,<br />

carboys and similar receptacles for the conveyance or packing of goods, and coffee<br />

grinders and spice mills with receptacles made of ceramics and working parts<br />

9000 Household and toilet articles, of porcelain or china (excl. Tableware and kitchenware,<br />

baths, bidets, sinks and similar sanitary fixtures, statuettes and other ornamental articles,<br />

pots, jars, carboys and similar receptacles for the conveyance or pac<br />

CERAMICWARE<br />

Hs code Description<br />

6912 0010 Tableware, kitchenware, other household articles and toilet articles, of common pottery<br />

(excl. Statuettes and other ornamental articles, pots, jars, carboys and similar receptacles<br />

for the conveyance or packing of goods, and coffee grinders and spice<br />

0030 Tableware, kitchenware, other household articles and toilet articles, of stoneware (excl.<br />

Baths, bidets, sinks and similar sanitary fixtures, statuettes and other ornamental articles,<br />

pots, jars, carboys and similar receptacles for the conveyance or<br />

0050 Tableware, kitchenware, other household articles and toilet articles, of earthenware or<br />

fine pottery (excl. Baths, bidets, sinks and similar sanitary fixtures, statuettes and other<br />

ornamental articles, pots, jars, carboys and similar receptacles for<br />

0090 Ceramic tableware, kitchenware, other household articles and toilet articles (excl. Sinks,<br />

baths, bidets and similar sanitary fixtures; statuettes and other ornamental articles; pots,<br />

jars, etc. For the conveyance or packing of goods; household mills<br />

102


GLASSWARE<br />

Hs code Description<br />

7013 1000 Glassware of a kind used for table, kitchen, toilet, office, indoor decoration or similar<br />

purposes (excl. Goods of heading 7018, cooking hobs, leaded lights and the like, lighting<br />

fittings and parts thereof, atomizers for perfume and the like)<br />

2111 Drinking glasses of lead crystal, gathered by hand, cut or otherwise decorated<br />

2119 Drinking glasses of lead crystal, gathered by hand (excl. Cut or otherwise decorated)<br />

2191 Drinking glasses of lead crystal, gathered mechanically, cut or otherwise decorated<br />

2199 Drinking glasses of lead crystal, gathered mechanically (excl. Cut or otherwise<br />

decorated)<br />

2910 Drinking glasses of toughened glass (excl. Glasses of glass-ceramics or of lead crystal)<br />

2951 Drinking glasses, gathered by hand, cut or otherwise decorated (excl. Glasses of glassceramics,<br />

lead crystal or toughened glass)<br />

2959 Drinking glasses, gathered by hand (excl. Glasses cut or otherwise decorated, or of glassceramics,<br />

lead crystal or toughened glass)<br />

2991 Drinking glasses, gathered mechanically, cut or otherwise decorated (excl. Glasses of<br />

glass-ceramics, lead crystal or toughened glass)<br />

2999 Drinking glasses, gathered mechanically (excl. Glasses cut or otherwise decorated, or of<br />

glass-ceramics, lead crystal or toughened glass)<br />

3110 Glassware of lead crystal, of a kind used for table or kitchen purposes, gathered by hand<br />

(excl. Articles of heading 7018, drinking glasses, glass preserving jars, sterilizing jars ,<br />

vacuum flasks and other vacuum vessels)<br />

3190 Glassware of lead crystal, of a kind used for table or kitchen purposes, gathered<br />

mechanically (excl. Articles of heading 7018, drinking glasses, glass preserving jars<br />

sterilizing jars , vacuum flasks and other vacuum vessels)<br />

3200 Glassware for table or kitchen purposes of glass having a linear coefficient of expansion<br />

=< 5 x 10 -6 per kelvin within a temperature range of 0 to 300. C (excl. Glassware of<br />

glass-ceramics or lead crystal, articles of heading 7018, drinking glasses)<br />

3910 Glassware for table or kitchen purposes, of toughened glass (excl. Glass having a linear<br />

coefficient of expansion =< 5 x 10 -6 per kelvin within a temperature range of 0 to 300.<br />

C, glassware of glass-ceramics or lead crystal, articles of heading 7018)<br />

3991 Glassware of a kind used for table or kitchen purposes, gathered by hand (excl.<br />

Toughened glass and glass having a linear coefficient of expansion =< 5 x 10 -6 per<br />

kelvin within a temperature range of 0 to 300. C, glassware of glass-ceramics or lead)<br />

3999 Glassware of a kind used for table or kitchen purposes, gathered mechanically (excl.<br />

Toughened glass and glass having a linear coefficient of expansion =< 5 x 10 -6 per<br />

kelvin within a temperature range of 0 to 300. C, glassware of glass-ceramics or lead)<br />

9110 Glassware, of lead crystal, of a kind used for toilet, office, indoor decoration or similar<br />

purposes, gathered by hand (excl. Glassware of a kind used for table or kitchen purposes,<br />

glassware of glass-ceramics or lead crystal, articles of heading 701)<br />

9190 Glassware, of lead crystal, of a kind used for toilet, office, indoor decoration or similar<br />

purposes, gathered mechanically (excl. Glassware of a kind used for table or kitchen<br />

purposes, articles of heading 7018, mirrors, leaded lights and the like)<br />

9900 Glassware of a kind used for toilet, office, indoor decoration or similar purposes (excl.<br />

Glassware of lead crystal or of a kind used for table or kitchen purposes, articles of<br />

heading 7018, mirrors, leaded lights and the like, lighting fittings and the like)<br />

9910 Glassware of a kind used for toilet, office, indoor decoration or similar purposes,<br />

gathered by hand (excl. Glassware of lead crystal or of a kind used for table or kitchen<br />

purposes, articles of heading 7018, mirrors, leaded lights and the like)<br />

9990 Glassware of a kind used for toilet, office, indoor decoration or similar purposes,<br />

gathered mechanically (excl. Glassware of lead crystal or of a kind used for table or<br />

kitchen purposes, articles of heading 7018, mirrors, leaded lights and the like)<br />

103


METALWARE<br />

Hs code Description<br />

7323 9100 Table, kitchen or other household articles, and parts thereof, of cast iron, not enamelled<br />

(excl. Cans, boxes and similar containers of heading 7310; waste baskets; shovels,<br />

corkscrews and other articles of the nature of a work implement; articles of<br />

9200 Table, kitchen or other household articles, and parts thereof, of cast iron, enamelled<br />

(excl. Cans, boxes and similar containers of heading 7310; waste baskets; shovels,<br />

corkscrews and other articles of the nature of a work implement; articles of cut<br />

9310 Articles for table use, of stainless steel (excl. Cans, boxes and similar containers of<br />

heading 7310; corkscrews, nutcrackers and other articles of the nature of a work<br />

implement; articles of cutlery, spoons, ladles, forks etc. Of headings 8211 to 82<br />

9390 Table, kitchen or other household articles, and parts thereof, of stainless steel (excl.<br />

Cans, boxes and similar containers of heading 7310; waste baskets; shovels, corkscrews<br />

and other articles of the nature of a work implement; articles of cutlery,<br />

9410 Articles for table use, of iron other than cast iron or steel, enamelled, spoons, ladles,<br />

forks etc. Of headings 8211 to 8215; ornamental articles (excl. Cans, boxes and similar<br />

containers of heading 7310; spoons, ladles etc. Of heading 8215; ornament)<br />

9490 Table, kitchen or other household articles, and parts thereof, of iron other than cast iron<br />

or steel, enamelled (excl. Cans, boxes and similar containers of heading 7310; waste<br />

baskets; shovels and other articles of the nature of a work implement; sp<br />

9910 Articles for table use, of iron other than cast iron or steel (excl. Enamelled articles; cans,<br />

boxes and similar containers of heading 7310; corkscrews, nutcrackers and other articles<br />

of the nature of a work implement; articles of cutlery, spoons, ladles, forks etc. Of<br />

headings 8211 to 8215)<br />

9991 Table, kitchen or other household articles, and parts thereof, of iron other than cast iron<br />

or steel, varnished or painted (excl. Cans, boxes and similar containers of heading 7310;<br />

waste baskets; shovels and other articles of the nature of a work implement; articles of<br />

cutlery, spoons, ladles, forks etc. Of headings 8211 to 8215)<br />

9999 Table, kitchen or other household articles and parts thereof, of iron, other than cast iron,<br />

or steel (excl. Enamelled, painted or varnished articles; cans, boxes and similar<br />

containers in heading 7310; waste baskets; shovels, corkscrews, waffle iron<br />

7417 0000 Cooking or heating apparatus of a kind used for domestic purposes, non-electric, and<br />

parts thereof, of copper (excl. Hot water heaters and geysers)<br />

7418 1000 Table, kitchen or other household articles, parts thereof, of copper, including pot scourers<br />

and scouring or polishing pads, gloves and the like, of copper (excl. Cooking and heating<br />

appliances of heading 7417, cans, boxes and similar containers)<br />

1900 Table, kitchen or other household articles, parts thereof, of copper (excl. Pot scourers and<br />

scouring or polishing pads, gloves and the like, cooking and heating appliances of<br />

heading no 7417, cans, boxes and similar containers of heading no 7419, ar<br />

7615 1910 Table, kitchen or other household articles, parts thereof, of aluminium, cast (excl. Cans,<br />

boxes and similar containers of heading 7612, articles of the nature of a work implement,<br />

spoons, ladles and other articles of headings 8211 to 8215, ornamental<br />

1990 Table, kitchen or other household articles, parts thereof, of aluminium, uncast (excl. Pot<br />

scourers and scouring or polishing pads, gloves and the like, of aluminium, cans, boxes<br />

and similar containers of heading no 7612, articles of the nature of a work implement;<br />

articles of cutlery, spoons, ladles, forks etc. Of headings 8211 to 8215)<br />

CUTLERY<br />

Hs code Description<br />

8211 1000 Sets of assorted articles of knives of heading no 8211; sets in which there is a higher<br />

number of knives of heading no 8211 than of any other article<br />

9130 Table knives with handle and fixed blade, of stainless steel<br />

9180 Table knives with fixed blade, of base metal (not with handle and blade of stainless steel<br />

and excl. Butter knives and fish knives)<br />

9190 Table knives with fixed blades of base metal (excl. Butter knives and fish knives)<br />

9200 Knives with fixed blades of base metal, incl. Handles (excl. Straw knives, machetes,<br />

knives and cutting blades for machines or mechanical appliances, table knives, fish<br />

knives, butter knives, razors and razor blades and knives of heading no 8214)<br />

104


9290 Knives with fixed blades of base metal (excl. Hay knives, machetes, knives and cutting<br />

blades for machines or mechanical appliances, table knives, fish knives, butter knives,<br />

razors and razor blades and knives of heading no 8214)<br />

9300 Knives having other than fixed blades, of base metal, incl. Handles (excl. Razors)<br />

9390 Knives having other than fixed blades, of base metal (excl. Razors)<br />

9400 Blades of base metal for table knives, pocket knives and other knives of heading no 8211<br />

8215 1010 4sets of spoons, forks or other articles of heading no 8215, incl. Those with up to an<br />

equal number of knives, of stainless steel, containing at least one article plated with<br />

precious metal<br />

1020 Sets of spoons, forks or other articles of heading 8215, which may also contain up to an<br />

equivalent number of knives, of base metal, containing only articles plated with precious<br />

metal<br />

1030 Sets of spoons, forks or other articles of heading 8215, which may also contain up to an<br />

equivalent number of knives, of stainless steel, containing at least one article plated with<br />

precious metal<br />

1080 Sets of spoons, forks or other articles of heading 8215, which may also contain up to an<br />

equivalent number of knives, of base metal other than stainless steel, containing at least<br />

one article plated with precious metal<br />

1090 4sets of spoons, forks or other articles of heading no 8215, incl. Those with up to an<br />

equal number of knives, of base metals other than stainless steel, containing at least one<br />

article plated with precious metal<br />

2010 Sets of spoons, forks or other articles of heading no 8215, incl. Those with up to an equal<br />

number of knives, of stainless steel, containing no articles plated with precious metal<br />

2090 Sets of spoons, forks or other articles of heading no 8215, incl. Those with up to an equal<br />

number of knives, of base metals other than stainless steel, containing no articles plated<br />

with precious metal<br />

9100 Spoons, forks, ladles, skimmers, cake-servers, fish-knives, butter-knives, sugar tongs and<br />

similar kitchen or tableware of base metal, plated with precious metal (excl. Sets of<br />

articles such as lobster cutters and poultry shears)<br />

9910 Spoons, forks, ladles, skimmers, cake-servers, fish-knives, butter-knives, sugar tongs and<br />

similar kitchen or tableware of stainless steel, not plated with precious metal (excl. Sets<br />

of articles such as lobster cutters and poultry shears)<br />

9990 Spoons, forks, ladles, skimmers, cake-servers, fish-knives, butter-knives, sugar tongs and<br />

similar kitchen or tableware of base metals other than stainless steel, not plated with<br />

precious metal (excl. Sets of articles such as lobster cutters and poultry shears)<br />

105


APPENDIX 2<br />

DETAILED IMPORT STATISTICS<br />

The source of the data presented below is Eurostat COMEXT 2002<br />

Import of table- & kitchenware by The EU, 1999-2001 value thousand €/ tons<br />

1999 2000 2001<br />

value € volume value € volume value € volume<br />

Total import 7,663,500 2,624,300 8,466,100 2,481,000 8,368,000 2,539,700<br />

Extra-EU 3,356,000 1,132,900 3,989,200 1,229,800 4,016,300 1,270,800<br />

Developing countries 1,773,500 682,100 2,231,000 747,600 2,330,600 797,900<br />

Plasticware 1,754,500 492,700 1,930,800 518,200 1,963,600 523,500<br />

Woodware 155,600 53,300 183,700 59,900 188,300 60,200<br />

Porcelain & China 769,400 249,500 838,800 275,100 839,000 271,200<br />

Ceramicware 549,500 261,600 588,500 265,900 584,800 273,500<br />

Glassware 1,803,900 1,044,800 1,885,700 810,200 1,852,000 779,900<br />

Metalware 1,797,700 421,800 2,026,900 433,400 2,000,500 419,300<br />

Cutlery 832,900 100,500 1,011,700 118,400 939,800 114,900<br />

Import of table- & kitchenware by the EU, per EU country, 1999-2001 value thousand €/ tons<br />

1999 2000 2001<br />

value € volume value € volume value € volume<br />

EU-total 7,663,500 2,624,300 8,466,100 2,481,000 8,368,000 2,539,700<br />

Germany 1,766,700 552,600 1,977,300 585,100 1,828,700 544,900<br />

United Kingdom 1,107,800 635,000 1,311,300 380,100 1,410,400 404,800<br />

France 1,062,100 354,400 1,156,900 374,300 1,156,600 376,100<br />

Italy 680,300 185,500 724,500 194,800 695,100 186,000<br />

The Netherlands 575,000 220,000 601,600 204,500 623,700 210,500<br />

Spain 523,600 177,500 596,600 204,000 553,500 182,200<br />

Belgium 510,100 146,900 574,300 160,700 547,700 143,000<br />

Austria 435,300 70,900 441,700 73,300 436,600 72,800<br />

Denmark 190,100 51,500 239,300 59,800 254,300 69,000<br />

Sweden 219,300 58,700 246,100 61,800 237,600 65,000<br />

Greece 188,200 63,200 168,100 80,700 178,100 179,900<br />

Portugal 161,800 50,300 158,400 46,200 149,500 44,800<br />

Ireland 123,900 32,400 137,100 28,000 146,700 28,900<br />

Finland 91,000 20,500 100,000 21,300 101,400 20,800<br />

Luxembourg 28,300 4,700 32,800 6,400 48,000 11,000<br />

106


Leading EU suppliers, per EU country, 1999-2001 value thousand €/ tons<br />

1999 2000 2001<br />

value € volume value € volume value € volume<br />

China 1,138,400 386,000 1,458,200 416,400 1,501,700 439,900<br />

Italy 776,600 329,400 843,800 291,200 823,300 385,200<br />

Germany 761,300 295,600 805,500 181,400 779,200 168,500<br />

France 800,000 273,900 795,100 247,200 730,100 216,300<br />

Belgium 494,300 101,600 506,700 115,400 520,800 101,400<br />

Netherlands 401,500 175,000 380,100 106,400 390,700 101,300<br />

Poland 219,200 107,000 260,000 123,600 290,300 130,100<br />

Portugal 240,100 87,800 254,600 84,800 262,900 98,600<br />

United Kingdom 284,400 78,700 294,200 75,300 262,700 50,600<br />

Taiwan 241,400 69,100 275,200 68,500 231,300 56,800<br />

Czech Republic 195,700 73,000 204,200 74,300 220,700 78,000<br />

Thailand 163,000 64,900 218,300 75,300 209,400 72,200<br />

Turkey 138,300 99,000 164,900 120,100 201,400 137,100<br />

Spain 202,400 84,900 198,500 78,700 190,600 76,200<br />

Switzerland 164,300 18,900 184,300 18,800 175,300 16,900<br />

United States 137,400 24,200 148,200 24,300 145,900 23,500<br />

Leading EU Developing Countries suppliers, per EU country, 1999-2001 value thousand €/ tons<br />

1999 2000 2001<br />

value € volume value € volume value € volume<br />

China 1,138,400 386,000 1,458,200 416,400 1,501,700 439,900<br />

Thailand 163,000 64,900 218,300 75,300 209,400 72,200<br />

Turkey 138,300 99,000 164,900 120,100 201,400 137,100<br />

India 54,100 13,200 76,500 17,100 90,500 20,600<br />

Indonesia 80,700 30,800 84,700 24,400 81,000 26,100<br />

Slovenia 33,500 16,300 38,500 18,200 41,700 18,000<br />

Vietnam 15,300 6,300 22,700 7,300 34,500 9,900<br />

Malaysia 19,300 11,200 25,500 14,300 31,900 20,700<br />

Brasil 23,600 13,900 23,400 12,500 21,200 10,200<br />

Bangladesh 8,100 2,800 14,200 3,400 17,700 4,200<br />

Philippines 19,000 6,200 17,700 5,600 12,500 4,400<br />

Tunisia 10,300 3,100 10,600 3,500 10,600 3,600<br />

Serb Mont. 5,900 3,100 6,700 4,700 9,200 6,600<br />

Sri Lanka 8,300 2,500 10,000 2,600 9,900 2,800<br />

South Africa 7,300 1,800 9,600 2,300 8,900 2,100<br />

Mexico 12,300 5,300 10,000 3,800 8,400 3,200<br />

107


Import of table- & kitchenware by France, 1999-2001 value thousand €/ tons<br />

1999 2000 2001<br />

value € volume value € volume value € volume<br />

Total import 1,062,100 354,400 1,156,900 374,300 1,156,600 376,100<br />

Extra-EU 337,700 125,200 406,700 141,200 391,300 135,900<br />

Developing countries 192,000 77,700 242,600 87,400 242,900 88,800<br />

Plasticware 294,600 94,000 313,700 98,200 323,100 96,900<br />

Woodware 22,200 7,700 25,000 8,400 25,000 7,600<br />

Porcelain & China 97,500 32,900 106,600 36,000 106,900 35,400<br />

Ceramicware 109,300 52,900 114,200 55,300 110,800 55,300<br />

Glassware 199,700 99,800 216,600 103,400 223,300 108,800<br />

Metalware 240,200 55,100 266,800 59,400 267,200 59,900<br />

Cutlery 98,600 12,200 114,100 13,600 100,300 12,300<br />

Import of table- & kitchenware by The United Kingdom, 1999-2001 value €/ thousand tons<br />

1999 2000 2001<br />

value € volume value € volume value € volume<br />

Total import 1,107,800 635,000 1,311,300 380,100 1,410,400 404,800<br />

Extra-EU 641,000 189,700 810,600 216,100 869,500 247,500<br />

Developing countries 388,300 128,100 513,700 150,100 586,300 184,700<br />

Plasticware 253,400 83,700 299,600 93,900 300,200 101,700<br />

Woodware 36,000 11,500 47,000 13,900 52,600 16,500<br />

Porcelain & China 70,800 19,300 92,600 26,300 100,900 31,400<br />

Ceramicware 107,700 51,500 121,600 50,200 138,700 67,700<br />

Glassware 236,000 372,400 261,200 109,700 279,600 94,800<br />

Metalware 283,000 78,200 338,000 64,600 376,600 69,300<br />

Cutlery 120,900 18,400 151,300 21,600 161,800 23,500<br />

Import of table- & kitchenware by Italy, 1999-2001 value thousand €/ tons<br />

1999 2000 2001<br />

value € volume value € volume value € volume<br />

Total import 680,300 185,500 724,500 194,800 695,100 186,000<br />

Extra-EU 278,600 97,000 323,000 105,800 337,000 112,200<br />

Developing countries 190,000 65,900 186,500 73,300 190,000 76,200<br />

Plasticware 92,600 21,600 103,600 21,500 98,900 18,800<br />

Woodware 12,500 4,200 13,100 4,500 13,300 4,200<br />

Porcelain & China 145,600 36,500 149,500 38,100 145,000 39,000<br />

Ceramicware 38,700 15,600 35,500 13,800 30,000 13,000<br />

Glassware 225,200 79,600 229,100 84,900 223,600 83,200<br />

Metalware 100,100 20,500 110,700 21,400 104,100 18,500<br />

Cutlery 65,600 7,600 83,000 10,500 80,200 9,300<br />

108


Import of table- & kitchenware by Germany, 1999-2001 value thousand €/ tons<br />

1999 2000 2001<br />

value € volume value € volume value € volume<br />

Total import 1,766,700 552,600 1,977,300 585,100 1,828,700 544,900<br />

Extra-EU 977,400 327,700 1,160,400 356,000 1,103,500 343,900<br />

Developing countries 477,300 165,200 592,800 179,300 564,800 170,600<br />

Plasticware 455,500 117,200 500,100 120,100 458,200 106,600<br />

Woodware 31,400 12,500 34,400 12,800 31,800 12,200<br />

Porcelain & China 147,000 50,500 159,500 54,900 168,500 54,100<br />

Ceramicware 87,400 48,900 93,600 51,400 85,300 47,300<br />

Glassware 384,300 193,000 400,100 204,200 366,200 195,100<br />

Metalware 433,300 104,900 516,500 113,000 477,600 103,200<br />

Cutlery 227,800 25,600 273,200 28,700 241,300 26,400<br />

Import of table- & kitchenware by Spain, 1999-2001 value thousand €/ thousand tons<br />

1999 2000 2001<br />

value € volume value € volume value € volume<br />

Total import 523,600 177,500 596,600 204,000 553,500 182,200<br />

Extra-EU 193,200 83,000 209,700 78,600 219,200 79,300<br />

Developing countries 111,700 55,400 122,900 50,200 139,100 52,900<br />

Plasticware 76,300 26,900 98,100 33,600 90,400 28,700<br />

Woodware 5,900 1,900 8,100 2,600 7,700 2,600<br />

Porcelain & China 63,400 24,200 81,900 37,400 80,200 27,500<br />

Ceramicware 39,100 20,400 36,700 19,000 34,900 17,200<br />

Glassware 142,600 64,600 140,900 65,700 142,200 68,900<br />

Metalware 140,600 31,900 160,800 36,200 135,600 28,900<br />

Cutlery 55,700 7,500 70,100 9,500 62,400 8,500<br />

Import of table- & kitchenware by The Netherlands, 1999-2001 value thousand €/ tons<br />

1999 2000 2001<br />

value € volume value € volume value € volume<br />

Total import 575,000 220,000 601,600 204,500 623,700 210,500<br />

Extra-EU 296,300 112,600 328,300 118,700 341,400 128,500<br />

Developing countries 147,100 63,600 201,000 73,400 222,500 82,600<br />

Plasticware 126,300 41,200 123,700 36,600 139,300 38,500<br />

Woodware 10,400 4,700 13,200 5,800 12,900 4,200<br />

Porcelain & China 44,700 22,900 41,400 21,900 43,600 24,500<br />

Ceramicware 35,600 18,900 54,200 21,700 60,300 23,700<br />

Glassware 114,800 79,400 126,400 68,800 125,400 70,700<br />

Metalware 170,100 42,800 165,700 39,400 166,600 37,600<br />

Cutlery 73,200 10,200 77,000 10,300 75,600 11,100<br />

109


APPENDIX 3<br />

DETAILED EXPORT STATISTICS<br />

The source of the data presented below is Eurostat COMEXT 2002<br />

Export of table- & kitchenware by The EU, 1999-2001 value thousand €/ tons<br />

1999 2000 2001<br />

value € volume value € volume value € volume<br />

Total export 7,938,100 2,243,600 8,648,700 2,320,100 8,604,700 2,013,700<br />

Intra-EU 4,581,000 1,509,100 4,581,000 1,504,700 4,581,000 1,203,000<br />

Extra-EU 3,357,100 734,500 4,067,800 815,400 4,023,700 810,700<br />

Plasticware 1,490,800 375,600 1,579,200 373,100 1,647,500 370,100<br />

Woodware 69,200 16,100 81,700 17,900 74,700 15,200<br />

Porcelain & China 832,400 195,700 930,800 278,000 899,100 126,100<br />

Ceramicware 653,600 265,400 706,300 299,000 670,700 240,500<br />

Glassware 2,553,100 1,032,200 2,748,000 957,300 2,681,200 868,800<br />

Metalware 1,746,200 314,000 1,946,200 343,600 1,986,100 342,700<br />

Cutlery 592,800 44,600 656,700 51,200 645,300 50,500<br />

Export of table- & kitchenware by the EU, per EU country, 1999-2001 value thousand €/ tons<br />

1999 2000 2001<br />

value € volume value € volume value € volume<br />

EU 7,938,100 2,243,600 8,648,700 2,320,100 8,604,700 2,013,700<br />

France 1,736,300 494,300 1,847,600 518,800 1,851,900 506,300<br />

Italy 1,526,600 472,500 1,691,700 502,200 1,741,400 492,300<br />

Germany 1,407,600 240,100 1,536,200 262,900 1,484,000 251,700<br />

Belgium 675,300 158,100 754,000 170,200 751,400 160,400<br />

United Kingdom 725,200 354,100 767,900 136,100 709,600 105,100<br />

Netherlands 416,200 117,600 434,300 111,900 422,900 106,700<br />

Spain 333,100 200,000 388,200 148,600 377,000 143,700<br />

Austria 292,700 32,400 332,300 40,700 333,400 43,000<br />

Portugal 286,000 99,900 312,500 114,000 314,900 115,700<br />

Sweden 179,500 35,400 200,000 36,200 189,700 38,100<br />

Denmark 133,100 15,000 177,800 255,200 178,600 20,000<br />

Ireland 131,200 5,800 114,600 4,200 129,000 5,800<br />

Luxembourg 17,000 2,000 15,500 2,300 48,000 8,300<br />

Finland 41,400 6,100 46,000 6,300 44,300 6,300<br />

Greece 36,900 10,300 30,200 10,600 28,600 10,300<br />

110


Export of table- & kitchenware by France, 1999-2001 value thousand €/ tons<br />

1999 2000 2001<br />

value € volume value € volume value € volume<br />

Total export 1,736,300 494,300 1,847,600 518,800 1,851,900 506,300<br />

Intra-EU 884,100 264,100 867,500 263,500 869,700 251,700<br />

Extra-EU 852,100 230,200 980,100 255,300 982,200 254,500<br />

Plasticware 216,500 35,100 237,700 37,200 247,100 37,600<br />

Woodware 6,600 1,400 7,700 1,500 8,000 1,500<br />

Porcelain & China 117,800 12,800 127,600 12,500 129,500 11,200<br />

Ceramicware 51,500 11,500 59,100 13,300 69,100 15,300<br />

Glassware 921,900 382,500 961,400 400,600 956,400 389,300<br />

Metalware 330,600 46,400 363,700 49,100 353,800 47,200<br />

Cutlery 91,300 4,600 90,500 4,400 88,000 4,200<br />

Export of table- & kitchenware by The United Kingdom, 1999-2001 value thousand €/ tons<br />

1999 2000 2001<br />

value € volume value € volume value € volume<br />

Total export 725,200 354,100 767,900 136,100 709,600 105,100<br />

Intra-EU 378,100 312,100 371,300 90,800 338,300 64,800<br />

Extra-EU 347,100 42,000 396,600 45,300 371,300 40,300<br />

Plasticware 134,100 35,600 125,600 26,300 124,300 25,200<br />

Woodware 11,600 3,800 13,100 2,900 9,600 1,400<br />

Porcelain & China 153,700 10,400 179,800 10,700 188,600 11,700<br />

Ceramicware 227,900 45,700 239,300 38,400 200,900 30,300<br />

Glassware 94,900 235,000 97,800 41,600 69,500 17,000<br />

Metalware 53,000 14,300 56,500 10,200 62,000 8,700<br />

Cutlery 50,100 9,400 55,700 6,000 54,800 10,900<br />

Export of table- & kitchenware by Italy, 1999-2001 value thousand €/ tons<br />

1999 2000 2001<br />

value € volume value € volume value € volume<br />

Total export 1,526,600 472,500 1,691,700 502,200 1,741,400 492,300<br />

Intra-EU 831,200 254,800 853,200 260,700 832,400 252,700<br />

Extra-EU 695,400 217,700 838,500 241,500 909,000 239,600<br />

Plasticware 233,900 82,100 263,800 91,300 275,000 92,400<br />

Woodware 11,400 1,400 11,800 2,000 9,600 1,300<br />

Porcelain & China 61,500 16,800 76,400 22,100 78,200 20,200<br />

Ceramicware 168,300 118,700 183,000 110,700 177,500 96,100<br />

Glassware 369,100 131,300 396,000 142,400 408,000 146,000<br />

Metalware 597,600 115,700 666,800 126,100 703,300 129,100<br />

Cutlery 84,700 6,400 93,900 7,600 89,900 7,200<br />

111


Export of table- & kitchenware by Germany, 1999-2001 value thousand €/ tons<br />

1999 2000 2001<br />

value € volume value € volume value € volume<br />

Total export 1,407,600 240,100 1,536,200 262,900 1,484,000 251,700<br />

Intra-EU 755,400 136,500 801,100 150,700 753,900 139,900<br />

Extra-EU 652,200 103,600 735,100 112,200 730,100 111,800<br />

Plasticware 205,300 50,100 217,800 51,500 215,700 46,300<br />

Woodware 8,200 1,800 9,000 2,100 10,100 2,100<br />

Porcelain & China 312,600 42,200 336,600 41,900 304,200 38,100<br />

Ceramicware 32,500 8,100 34,800 9,900 33,600 9,000<br />

Glassware 399,300 92,800 434,400 108,600 411,200 108,200<br />

Metalware 262,200 38,000 301,700 41,700 301,200 40,000<br />

Cutlery 187,400 7,200 201,900 7,300 208,000 7,900<br />

Export of table- & kitchenware by Spain, 1999-2001 value thousand €/ tons<br />

1999 2000 2001<br />

value € volume value € volume value € volume<br />

Total export 333,100 200,000 388,200 148,600 377,000 143,700<br />

Intra-EU 217,600 163,400 250,800 105,100 223,900 95,200<br />

Extra-EU 115,500 36,600 137,400 43,500 153,200 48,500<br />

Plasticware 66,900 21,800 93,100 28,600 92,100 29,600<br />

Woodware 4,500 1,000 5,700 1,300 4,300 1,100<br />

Porcelain & China 17,400 72,900 16,000 4,800 16,900 6,000<br />

Ceramicware 11,000 5,800 13,300 7,100 12,900 6,600<br />

Glassware 109,500 73,800 120,800 79,700 114,800 73,400<br />

Metalware 95,200 22,900 105,000 24,800 103,300 24,800<br />

Cutlery 28,700 1,800 34,400 2,200 32,800 2,200<br />

Export of table- & kitchenware by The Netherlands, 1999-2001 value thousand €/ tons<br />

1999 2000 2001<br />

value € volume value € volume value € volume<br />

Total export 416,200 117,600 434,300 111,900 422,900 106,700<br />

Intra-EU 337,600 103,800 338,900 95,800 334,100 90,900<br />

Extra-EU 78,600 13,900 95,500 16,100 88,800 15,800<br />

Plasticware 128,500 40,500 118,600 33,300 112,000 29,400<br />

Woodware 4,400 1,000 4,700 1,100 4,900 1,200<br />

Porcelain & China 41,100 15,700 42,300 14,500 41,500 14,600<br />

Ceramicware 15,200 10,000 15,900 10,000 14,200 8,200<br />

Glassware 93,200 24,500 112,100 25,100 114,900 26,700<br />

Metalware 91,000 20,600 95,800 22,300 92,000 21,100<br />

Cutlery 42,800 5,500 44,800 5,500 43,400 5,600<br />

112


APPENDIX 4.1<br />

STANDARDS ORGANISATIONS<br />

INTERNATIONAL<br />

International Organisation for Standardization (ISO)<br />

E-mail: central@iso.org<br />

Internet: www.iso.org<br />

EUROPEAN UNION<br />

Comité Européen de Normalisation (CEN)<br />

European Normalisation Committee<br />

E-mail: infodesk@cenorm.be<br />

Internet: www.cenorm.be<br />

SGS Société Générale de Surveillance (SA)<br />

E-mail: enquiries@sgs.com<br />

Internet: www.sgs.com<br />

GERMANY<br />

D<strong>eu</strong>tsches Institut für Normung (DIN)<br />

E-mail: directorate.international@din.de<br />

Internet: www.din.de<br />

RAL D<strong>eu</strong>tsches Institut für Gütesicherung & Kennzeichnung<br />

E-mail: RAL-Institut@t-online.de<br />

Internet: www.ral.de<br />

UNITED KINGDOM<br />

British Standards Institution (BSI)<br />

E-mail: standards.international@ bsi-global.com<br />

Internet: www.bsi-global.com<br />

FRANCE<br />

Association Française de Normalisation (AFNOR)<br />

E-mail: uari@afnor.fr<br />

Internet: www.afnor.fr<br />

ITALY<br />

Ente Nazionale Italiano di Unificazione (UNI)<br />

E-mail: uni@uni.com<br />

Internet: www.uni.com<br />

THE NETHERLANDS<br />

Nederlands Normalisatie Instituut (NEN)<br />

E-mail: info@nen.nl<br />

Internet: www.nen.nl<br />

SPAIN<br />

Asocianión Española de Normalización y certification (AENOR)<br />

E-mail: aenor@aenor.es<br />

Internet: www.aenor.es<br />

113


APPENDIX 4.2<br />

TRADE ASSOCIATIONS<br />

EUROPEAN UNION<br />

Federation of the European Cutlery, Flatware, Holloware and Cookware industries (FEC)<br />

E-mail: unitam@mail.fimeca.com<br />

E-mail: info@ivsh.de<br />

Internet: www.fecinfo.org<br />

Fédération Européenne. des Industries de Porcelaine et de Faience de Table et d’Ornamentation<br />

(European Federation for Table- and Ornamentalware)<br />

E-mail: sec@ceram<strong>eu</strong>nie.net<br />

Internet: www.fepf.web.at.it<br />

Standing Committee of the European Glass Industries Comité<br />

E-mail: info@cpivglass.be<br />

Internet: www.cpivglass.be<br />

FRANCE<br />

Syndicat National de la Porcelaine Française<br />

Telephone: N.A.<br />

Fax :<br />

N.A.<br />

E-mail : carreau@ceramique.org<br />

GERMANY<br />

German Association of Cutlery, Flatware and houseware Industry (IVSH)<br />

E-mail: info@ivsh.de<br />

Internet: www.ivsh.de<br />

Verband der Keramische n Industrie e.V. (VKI)<br />

(Association of German manufactures in the German Industry)<br />

E-mail: infor@keramverband.de<br />

Internet: www.keramverbaende.de/vki<br />

ITALY<br />

Federceramica Associazione Nationale Imprese Della Ceramica E Degli Abrasivi<br />

(The European Abrasives Producers’ Federation)<br />

E-mail federceramica@federchimica.it<br />

Internet: www.federceramica.federchimica.it<br />

Associazione Nazionale degli Industriali del Vetro (ASSOVETRO)<br />

(Association of Italian glass manufacturers)<br />

Telephone: +39-06 488 09 47<br />

Fax: +39-06 420 11 162<br />

E-Mail: Assovetro@tin.it<br />

UNITED KINGDOM<br />

British Hardware & Housewares Manufacturers’ Association<br />

E-mail: bhhma@brookehouse.co.uk<br />

Internet: www.bhhma.com<br />

British Cutlery and Silverware Association (BCSA)<br />

E-mail: cathysteele@secas.co.uk<br />

Internet: www.bja.org.uk/jewellery_in_britain/<br />

British Ceramic Gift and Tableware Manufacturers Association<br />

E-mail: bcc@ceramfed.co.uk<br />

Internet: www.ceramfed.co.uk<br />

114


British Glass Manufacturers Association - BGMA<br />

E-Mail: info@britglass.co.uk<br />

Internet: www.britglass.co.uk<br />

THE NETHERLANDS<br />

Gemengde Branche – Gebra<br />

(Mixed Branch Association)<br />

E-mail: info@gebra.nl<br />

Internet: http://www.gebra.nl<br />

Vereniging van Nederlandse Glasfabrikanten (VNG)<br />

Telephone: +31 (0)59 8313211<br />

Fax: +31 (0)598 39 96 49<br />

E-Mail: Vanderwoude@ppg.com<br />

Algemene vereniging voor de Nederlandse Aardewerk-Industrie<br />

Telephone: +31(0)26 442 82 22<br />

Fax +31(0)26 445 45 39<br />

E-mail: sko@bart.nl<br />

115


APPENDIX 4.3<br />

TRADE FAIR ORGANISERS<br />

GERMANY<br />

Ambiente<br />

Location:<br />

Organisation:<br />

E-mail:<br />

Internet:<br />

Sector:<br />

Tendence<br />

Location:<br />

Organisation:<br />

E-mail:<br />

Internet:<br />

Sector:<br />

(February)<br />

Frankfurt am Main, Germany<br />

Messe Frankfurt GmbH<br />

ambiente@messefrankfurt.com, www.ambiente.messefrankurt.com<br />

www.ambiente-frankfurt.de<br />

Table art, table- & kitchenwares, gourmet shop, table decoration and accessories, interior<br />

design, giftware, jewellery, paper ware, perfume, accessories.<br />

(August)<br />

Frankfurt am Main, Germany<br />

Messe Frankfurt GmbH<br />

tendence@messefrankfurt.com<br />

www.tendence-lifestyle.messefrankfurt.de<br />

Table art, table- & kitchenwares, gourmet shop, table decoration and accessories, interior<br />

design, giftware, jewellery, paper ware, perfume, accessories.<br />

UNITED KINGDOM<br />

Harrogate Home & Gift (July)<br />

Location: Harrogate, United Kingdom<br />

Organisation: Clarion Event<br />

E-mail: homeandgift@eco.co.uk<br />

Internet: www.homeandgift.co.uk<br />

Sector: giftware, jewellery, greeting cards, gift stationery, pictures and prints, home accessories,<br />

china, ceramics, glass and gardenware<br />

Spring Fair Birmingham (February)<br />

Location: Birmingham, United Kingdom<br />

Organisation: Trade Promotion Services Ltd<br />

E-mail: info@emap.com<br />

Internet: www.springfair.com<br />

Sector: General giftware, jewellery, watches, china and glass, fashion accessories, leather, frames<br />

and fine art.<br />

FRANCE<br />

Maison & Objet (September and January)<br />

Location: Paris Nord-Villepinte, France<br />

Organisation: SAFI<br />

E-mail: info@maison-objet.com<br />

Internet: www.maison-objet.com<br />

Sector: International home decoration, and textiles, fragrances, arts and crafts, games, and<br />

stationery.<br />

ITALY<br />

Florence Gift Market (April/ Mai)<br />

Location: Florence, Italy<br />

Organisation: Florence Mart S.R.L.<br />

E-mail: florencemart@florencemart.it<br />

Internet: www.florencemart.it<br />

Sector: International handicraft fair: home furnishing, textile and metal articles, costume<br />

jewellery, ceramics, leather and fur articles.<br />

116


MACEF (September and January/February)<br />

Location: Milan, Italy<br />

Organisation: FMI - Fiera Milano International S.p.a.<br />

E-mail: macef@fmi.it<br />

Internet: www.macefautunno.biz<br />

Sector: Tableware, kitchenware, glass, artificial flowers and plants, wickerwork, candles, gifts,<br />

home decoration, cermamics, porcelain, pictures, frames and home textiles<br />

THE NETHERLANDS<br />

Huishoudb<strong>eu</strong>rs (March)<br />

Organisation: RAI<br />

Location: Amsterdam, The Netherlands<br />

E-mail: huishoudb<strong>eu</strong>rsinfo@rai.nl<br />

Internet: www.huishoudb<strong>eu</strong>rs.rai.nl<br />

Sector: Home decoration, fashion and accessories, table- and kitchenware<br />

SPAIN<br />

Expohogar Regalo oño (September)<br />

Location: Barcelona, Spain<br />

Organisation: Fira Barcelona<br />

E-mail: www.servifira@firabcn.es<br />

Internet: www.expohogar.com<br />

Sector: International trade fair for gifts, house and home: gifts, arts, crafts, crystal, glass, china,<br />

pottery, tableware, furnishings, lighting and household appliances.<br />

117


APPENDIX 4.4<br />

TRADE PRESS<br />

GERMANY<br />

Schöner Wohnen<br />

Telephone: +49 (0)40 3703 4041<br />

Internet: www.livingathome.de<br />

Content: Living and interior decoration<br />

Publication: Monthly<br />

Stil & Markt<br />

E-mail:<br />

Internet:<br />

Content:<br />

Publication:<br />

stilundmarkt@meisenbach.de<br />

www.meisenbach.de<br />

gifts, table- and houseware, lifestyle<br />

Monthly<br />

Das Haus<br />

interior decoration<br />

E-mail: service1@dashaus.burda.com<br />

Internet: www.haus.de<br />

Content: interior decoration, garden<br />

Publication: Monthly<br />

Wohnidee - Wohnen und Leben<br />

E-mail: info@wohnidee.de<br />

Internet: www.wohnidee.de<br />

Content: interior decoration, gifts<br />

Publication: Monthly<br />

Elle Decoration<br />

E-mail:<br />

Internet:<br />

Content:<br />

Publication:<br />

service@burdadirect.de<br />

www.elle.de<br />

Fashion, cultur<br />

Monthly<br />

UNITED KINGDOM<br />

Tableware International<br />

Internet: www. www.dmgworldmedia.com<br />

Content: houseware, tableware, gifts<br />

Publication: Monthly<br />

English Homes<br />

E-mail:<br />

Internet:<br />

Content:<br />

Publication:<br />

info@international-homes.com<br />

www.international-homes.com<br />

Home and lifestyle<br />

Monthly<br />

The English home<br />

Telephone: +20 (0)7751 4800<br />

Internet: www.theenglishhome.co.uk<br />

Content: Interior design and decoration, furnishing<br />

Publication: Monthly<br />

118


FRANCE<br />

Art & Decoration<br />

Internet: www.art-decoration.fr<br />

Content: decoration, hobby and art<br />

Publication: Monthly<br />

Cuisines & Bains<br />

E-mail: contact@homeconfort.com<br />

Internet: www.cuisinebain.com<br />

Content: Kitchen and bathing<br />

Publication: Monthly<br />

Elle Decoration France<br />

E-mail: ellemagazine@hfp.fr<br />

Internet: www.elle.fr<br />

Content: Fashion, beauty, interior decoration, home<br />

Publication: Monthly<br />

ITALY<br />

Elle decor<br />

E-mail:<br />

Internet:<br />

Content:<br />

Publication:<br />

Spazio Casa<br />

E-mail:<br />

Internet:<br />

Content:<br />

Publication:<br />

www.elle.it<br />

vendite.milano@rusconi.it<br />

Fashion, beauty, interior decoration, home<br />

10 issues yearly<br />

www.spazio-casa.it<br />

info@spazio-casa.it<br />

style, interior decoration, home<br />

quarterly<br />

THE NETHERLANDS<br />

Eigen huis & interi<strong>eu</strong>r<br />

E-mail: redactie@vtwonen.nl<br />

Internet : www.vtwonen.nl<br />

Content: Living, home decoration<br />

Publication: Monthly<br />

Ariadne at home<br />

Telephone: ariande@sanoma-uitgevers.nl<br />

Internet: www.ariandeathome.com<br />

Content: Living, home decoration<br />

Publication: Monthly<br />

Home and garden<br />

E-mail: homeandgarden@sanorma-uitgevers.nl<br />

Internet: www.homeandgarden.nl<br />

Content: Garden and home decoration<br />

Publication: Monthly<br />

SPAIN<br />

Casa diez<br />

E-mail:<br />

Internet:<br />

Content:<br />

Publication:<br />

casadieze@hachette.es<br />

www.casadiez.navegalia.es<br />

Home decoration<br />

Monthly<br />

119


APPENDIX 4.5<br />

OTHER USEFUL ADDRESSES<br />

INTERNATIONAL<br />

Euromonitor International<br />

E-mail: info@<strong>eu</strong>romonitor<br />

Internet: www.<strong>eu</strong>romonitor.com<br />

International Chamber of Commerce<br />

E-mail: webmaster@iccwbo.org<br />

Internet: www.iccwbo.org<br />

International Trade Centre UNCTAD/ WTO<br />

E-mail: tirc@intracen.org<br />

Internet: www.intracen.org<br />

International Labour Organisation<br />

E-mail: ilo@ilo.org<br />

Internet: www.ilo.org<br />

Mintel International Group Ltd,<br />

E-mail: info@mintel.com<br />

Internet: www.mintel.com<br />

Marketing Directions, Inc.<br />

E-mail: info@trendcurve.com<br />

Internet: www.trendcurve.com<br />

SKAL<br />

Internationally operating inspecting and certifying organisation)<br />

E-mail: info@skal.nl<br />

Internet: www.skal.com<br />

EUROPE<br />

Commission of the European Communities<br />

E-mail: ecolabel@cec.<strong>eu</strong>.int<br />

Internet: www.<strong>eu</strong>ropa.<strong>eu</strong>.int/ecolabel<br />

Trend Trendhub Ltd,<br />

E-mail: consultancy@trendhub.com<br />

Internet: www.trendhub.com<br />

GERMANY<br />

D<strong>eu</strong>tsche Gesellschaft für Technische Zusammenarbeit (GTZ) GmbH<br />

E-mail: Internet-Team@gtz.de<br />

Internet: www.gtz.de<br />

THE NETHERLANDS<br />

CBI/AccessGuide<br />

(CBI’s database on European non-tariff trade barriers)<br />

E-mail: accessguide@cbi.nl<br />

Internet: www.cbi.nl/accessguide<br />

Netherlands Ecolabel enquiry point<br />

E-mail: mili<strong>eu</strong>k<strong>eu</strong>r@mili<strong>eu</strong>k<strong>eu</strong>r.nl<br />

Internet: www.mili<strong>eu</strong>k<strong>eu</strong>r.nl<br />

120


Verwey Chemical Laboratory<br />

(Testing of products)<br />

E-mail: info@drverwey.nl<br />

Internet: www.drverwey.nl<br />

www.dmgworldmedia.com<br />

Dmg world media is the name behind over 260 of the biggest public shows and trade exhibitions worldwide<br />

and a diverse mix of conferences, publications and on-line services. Dmg world media offers <strong>market</strong><br />

reports and other publications serving regional and international <strong>market</strong> sectors around the world.<br />

www.tradeport.org<br />

This site is designed to be an easy-to-use tool offering one place to go for comprehensive trade information,<br />

trade leads, and company databases worldwide. The site contains comprehensive trade directories offering<br />

company search, <strong>market</strong> reports on many countries / sectors and much ore information.<br />

www.<strong>market</strong>file.com<br />

On this site you will find details on Market Tracking International's (MTI) range of <strong>market</strong> research and<br />

consultancy services. Market Tracking International can supply <strong>market</strong> data as printed reports, CD-ROMs,<br />

e-mail attachments, and offers several comprehensive on-line database services, under the MarketFile<br />

brand.<br />

www.housewares.org<br />

This is the official site of the National Housewares Manufacturers Association. This site is more intended<br />

for American manufacturers, although there are also addresses mentioned for European Associations for<br />

Housewares and European traders.<br />

www.gourmetretailer.com<br />

This site is specially created for retailers in the specialty food and housewares industries. On our site, you<br />

will find the latest industry news, trade show dates and information, links to industry associations, webexclusive<br />

articles, and a searchable archive of hundreds of articles from The Gourmet Retailer print edition.<br />

www.dmg.co.uk/tableware<br />

dmg.co.uk/tableware is an internet site with information about the magazine “Tableware International”.<br />

Here you will find news, brands new products, trade exhibitions and subscription details.<br />

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APPENDIX 5<br />

LIST OF DEVELOPING COUNTRIES<br />

The list of developing countries as applied in this <strong>market</strong> <strong>survey</strong>, is the OECD DAC list of<br />

countries receiving Official Development Assistance (Part I), The list used is the one as at<br />

1/1/<strong>2003</strong>.<br />

Africa Senegal Papua New Guinea Ecuador<br />

Algeria Seychelles Philippines El Salvador<br />

Angola Sierra Leone Saudi Arabia Grenada<br />

Benin Somalia Sri Lanka Guatemala<br />

Botswana South Africa Syria Guyana<br />

Burkina Faso St, Helena Tajikistan Haiti<br />

Burundi Sudan Thailand Honduras<br />

Cameroon Swaziland Turkey Jamaica<br />

Cape Verde Tanzania Turkmenistan Mexico<br />

Central African rep, Togo Uzbekistan Montserrat<br />

Chad Tunisia Vietnam Nicaragua<br />

Comoros Uganda Yemen Panama<br />

Congo, Dem, Rep Zambia Paraguay<br />

Congo, Rep, Zimbabwe Europe<br />

Côte d'Ivoire Albania Peru<br />

Djibouti Asia Armenia St, Kitts-Nevis<br />

Egypt Afghanistan Azerbaijan St, Lucia<br />

Equatorial Guinea Bahrain Bosnia & Herzegovina St, Vincent and Grenadines<br />

Eritrea Bangladesh Croatia Surinam<br />

Ethiopia Bhutan Georgia Trinidad & Tobago<br />

Gabon Cambodia Macedonia Turks & Caicos Islands<br />

Gambia China Malta Uruguay<br />

Ghana East Timor Moldova Venezuela<br />

Guinea India Slovenia<br />

Guinea-Bissau Indonesia Serbia & Montenegro Oceania<br />

Kenya Iran Yugoslavia, Fed, Rep, Cook Islands<br />

Lesotho Iraq Fiji<br />

Liberia Jordan Latin America Kiribati<br />

Madagascar Kazakhstan Anguilla Marshall Islands<br />

Malawi Korea, Rep. of Antigua and Barbuda Micronesia, Fed, States<br />

Mali Kyrghyz Rep. Argentina Nauru<br />

Mauritania Laos Barbados Niue<br />

Mauritius Lebanon Belize Palau Islands<br />

Mayotte Malaysia Bolivia Solomon Islands<br />

Morocco Maldives Brazil Tokelau<br />

Mozambique Mongolia Chile Tonga<br />

Namibia Myanmar Colombia Tuvalu<br />

Niger Nepal Costa Rica Vanuatu<br />

Nigeria Oman Cuba Wallis & Futuna<br />

Rwanda Pakistan Dominica Western Samoa<br />

São Tomé & Principe Palestinian Admin, Areas Dominican republic<br />

122


APPENDIX 6<br />

LIST OF ACP COUNTRIES<br />

The list used is the one as at 1/1/2000<br />

Angola<br />

Antigua And Barbuda<br />

Bahamas<br />

Barbados<br />

Belize<br />

Benin<br />

Botswana<br />

Burkina Faso<br />

Burundi<br />

Cape Verde<br />

Cameroon<br />

Comoros<br />

Congo<br />

Congo Democratic Republic<br />

Cook Islands<br />

Côte D'ivoire<br />

Djibouti<br />

Dominica<br />

Eritrea<br />

Ethiopia<br />

Fiji<br />

Gabon<br />

Gambia, The<br />

Ghana<br />

Grenada<br />

Guinea<br />

Guinea Equatorial<br />

Guinea-Bissau<br />

Guyana<br />

Haiti<br />

Jamaica<br />

Kenya<br />

Kiribati<br />

Lesotho<br />

Liberia<br />

Madagascar<br />

Malawi<br />

Mali<br />

Marshall Islands<br />

Mauritania<br />

Mauritius<br />

Micronesia (Federated States Of)<br />

Mozambique<br />

Namibia<br />

Nauru<br />

Niger<br />

Nigeria<br />

Niue<br />

Palau<br />

Papua New Guinea<br />

Republic Dominican<br />

Central Africa. Rep.<br />

Rwanda<br />

Sao Tome E Principe<br />

Senegal<br />

Seychelles<br />

Sierra Leone<br />

Solomon Islands<br />

Somalia<br />

South Africa<br />

St Kitts And Nevis<br />

St Lucia<br />

St Vincent And The Grenadines<br />

Sudan<br />

Suriname<br />

Swaziland<br />

Tanzania<br />

Chad<br />

Togo<br />

Tonga<br />

Trinidad And Tobago<br />

Tuvalu<br />

Uganda<br />

Vanuatu<br />

Western Samoa<br />

Zambia<br />

Zimbabwe<br />

123


APPENDIX 7<br />

LIST OF GSP COUNTRIES<br />

The following countries, territories and associations of countries eligible for treatment as one<br />

country are designated beneficiary developing countries for the purposes of the Generalized<br />

System of Preferences.<br />

Independent Estonia Oman Zimbabwe<br />

countries<br />

Albania Ethiopia Pakistan<br />

Non-Independent Countries<br />

Angola Fiji Panama<br />

and Territories<br />

Antigua and Barbuda Gabon Papua New Guinea Anguilla<br />

Argentina Gambia Paraguay British Indian Ocean Territory<br />

Armenia Georgia Peru Christmas Island (Australia)<br />

Bahrain Ghana Philippines Cocos (Keeling) Islands<br />

Bangladesh Grenada Poland Cook Islands<br />

Barbados Guatemala Romania Falkland Islands (Islas<br />

Malvinas)<br />

Belize Guinea Russia Gibraltar<br />

Benin Guinea-Bissau Rwanda Heard Island and McDonald<br />

Islands<br />

Bhutan Guyana St. Kitts and Nevis Montserrat<br />

Bolivia Haiti Saint Lucia Niue<br />

Bosnia and<br />

Honduras<br />

Saint Vincent and the Norfolk Island<br />

Hercegovina<br />

Grenadines<br />

Botswana Hungary Samoa Pitcairn Islands<br />

Brazil India Sao Tomé and Principe Saint Helena<br />

Bulgaria Indonesia Senegal Tokelau<br />

Burkina Faso Jamaica Seychelles Turks and Caicos Islands<br />

Burundi Jordan Sierra Leone Virgin Islands, British<br />

Cambodia Kazakhstan Slovakia Wallis and Futuna<br />

Cameroon Kenya Solomon Islands West Bank and Gaza Strip<br />

Cape Verde Kiribati Somalia Western Sahara<br />

Central African Kyrgyzstan South Africa<br />

Republic<br />

Chad Latvia Sri Lanka<br />

Chile Lebanon Suriname<br />

Colombia Lesotho Swaziland<br />

Comoros Lithuania Tanzania<br />

Congo (Brazzaville) Macedonia, Former Thailand<br />

Yugoslav Republic<br />

Congo (Kinshasa) Madagascar Togo<br />

Costa Rica Malawi Tonga<br />

Côte d'Ivoire Mali Trinidad and Tobago<br />

Croatia Mauritania Tunisia<br />

Czech Republic Mauritius Turkey<br />

Djibouti Moldova Tuvalu<br />

Dominica Mongolia Uganda<br />

Dominican Republic Morocco Uruguay<br />

Ecuador Mozambique Uzbekistan<br />

Egypt Namibia Vanuatu<br />

El Salvador Nepal Venezuela<br />

Equatorial Guinea Niger Republic of Yemen<br />

Eritrea Nigeria Zambia<br />

124


APPENDIX 8<br />

LIST OF PROCESSES WHICH CAUSE HARM TO<br />

HEALTH AND SAFETY<br />

To give an idea of the health and safety risks, regarding the processing or handling material like:<br />

Wood:<br />

• Noise, for example when sawing timber, that can be reduced by wearing ear-protection<br />

(safety headphones) and cushioning of equipment are required when using motorised<br />

saws.<br />

• Dust, adequate suction underneath the saws and ventilation of the workplace is essential.<br />

Wetting the work floor can prevent whirling dust. Accumulated dust can be removed<br />

through hoovering (not sweeping!). Mouth filters and goggles are necessary to protect<br />

workers from wood dust.<br />

• Light (especially when working with motorised cutting equipment), sufficient lighting<br />

and protection from glare is required.<br />

• Safety of machinery and equipment, sawing and cutting requires special attention to hand<br />

safety.<br />

• Direct contact with dangerous substances (such as exhaust gases, timber dust and toxic<br />

chemicals), measures to protect the respiratory system and the eyes are required;<br />

accumulated timber dust should be removed and filters replaced regularly.<br />

• Toxic vapours from additives such as wood preservatives, emissions shall be minimised,<br />

air quality should be monitored periodically.<br />

Metal:<br />

• Dust, in foundries, one of the greatest risks to health is the exposure to dust, which can<br />

cause respiratory problems and damage the lungs and other vital organs. In the short<br />

term, respiratory illness can mean severe discomfort, with consequent loss of<br />

productivity, disruption and other overheads. Long-term effects are more serious.<br />

• Gases, vapours and other contaminants, the air in foundries may contain the potential<br />

irritants formaldehyde, furfuryl alcohol, isocyanates, various amines and phenol. These<br />

contaminants are generated primarily by the core making and moulding processes, and<br />

may irritate the eyes and the respiratory tract.<br />

• Heat and heat stress, radiant heat is the major contributor to the heat load imposed on the<br />

worker.<br />

• Physical injuries, serious burns may result from splashes of molten in the melting and<br />

pouring areas of foundries.<br />

Ceramics:<br />

• Dust; during the dry grinding of raw materials for the production of ceramics, dust may<br />

form.<br />

• Adequate ventilation and dust removal is required for this reason, Mouth filters and<br />

goggles are necessary to protect workers from dust.<br />

• Exposure to chemicals, glazing should only be performed in closed sites (automatically)<br />

or in well-ventilated areas (spray-cabins), Protective masks should be worn by people<br />

working with the glazes.<br />

Plastics:<br />

• Direct contact with (hazardous) chemicals, including the inhalation of solvents, toxic<br />

vapours and dusts. People working with chemicals should use protective clothing.<br />

• Safety of machinery and equipment, including exposure to noise and vibrations should be<br />

avoided.<br />

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