2009-woven outerwear -Belgium
CBI MARKET SURVEY: THE WOVEN OUTERWEAR MARKET IN BELGIUM
CBI MARKET SURVEY
The woven outerwear market in Belgium Publication date: October 2009
Report summary This CBI market survey discusses, amongst others, the following highlights for the woven outerwear market in Belgium: • The Belgians remained among the higher EU spenders per capita on woven outerwear, although the size of the population limited the woven outerwear market to € 4.0 billion in 2008. • Suppliers on the woven outerwear market in Belgium, which are the most interesting trade channels for exporters in DCs, are domestic manufacturers (mostly with production activities abroad), importers/wholesalers and retail organizations, like clothing multiples. • Belgium ranked sixth in imports of woven outerwear, behind Germany, UK, France, Italy and Spain. Woven outerwear imports by Belgium grew 3.7% annually during 2004-2008 to € 3.2 billion in 2008. • 49% of Belgium’s imports came from DCs in 2008, against 44% in 2004. China remained by far the leading supplier of woven outerwear to Belgium, at distance followed by France. During the period 2006-2008, imports from DCs grew 5%. Imports from China increased 13% to a market share of 25% of total imports; imports from other Asian DCs reached a share of 13% and Mediterranean DCs of 10%. • It should be noted that almost 50% of Belgian exports concerned re-exports. This survey provides exporters of woven outerwear with sector-specific market information related to gaining access to Belgium including Luxembourg; unless otherwise indicated Belgium included Luxembourg. By focusing on a specific country, the survey provides additional information, complementary to the more general information and data provided in the CBI market survey ‘The woven outerwear market in the EU’, which covers the EU in general. That survey also contains an overview and explanation of the selected products dealt with, some general remarks on the statistics used, as well as information on other available documents for this sector. It can be downloaded from http://www.cbi.eu/marketinfo. 1.
Market description: consumption and production
Consumption The share of clothing in total consumer spending in Belgium was high and the Belgians remained among the highest spenders per capita (€ 380) on woven outerwear. Despite the high spending per consumer, the clothing market was limited by the number of 10.6 million inhabitants. Belgium was the seventh largest woven outerwear market in the EU behind the six other major EU countries, of which Spain ranked 5th and The Netherlands 6th. Belgium accounted for 2.8% of total EU consumption. The woven outerwear market in Belgium increased to € 4.0 billion in 2008 in consumer prices (including VAT), which was 47% of total clothing consumption. Volume of consumption increased annually by 1.8% during the period 2004-2008, which indicates that consumer prices increased very slightly. Table 1.1 Consumption of woven outerwear in Belgium, 2004-2009, in € million 2004
2006
2008
7,833 +3.6%
8,332 +3.3%
8,617 +2.6%
Total outerwear 6,816 7,203 Woven outerwear 3,735 3,826 Sources: Eurostat (2009) and Euromonitor (2009)
7,409 4,031
Total clothing Annual change in %
Av. annual change +2.5%
2009 forecasts 8,320 -3.4%
+2.2% +2.0%
7,160 3,890
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CBI MARKET SURVEY: THE WOVEN OUTERWEAR MARKET IN BELGIUM
Economic developments will lead to a fall in woven outerwear spending of between 3 and 4% in 2009, but after this fall experts forecast a small increase in 2010. Type of product groups Market shares (in terms of value) for woven outerwear in 2008 were trousers and shorts (33%), outdoor jackets (7%), indoor jackets (6%), shirts and blouses (15%), dresses (8%) and skirts (7%). Total products mentioned in table 1.2 covered 76% of total woven outerwear consumption in Belgium in 2008. Market shares for other product groups were among others: active sportswear (5%), coats (3%), suits and ensembles (3%) and babies’ garments (3%). Table 1.2 Consumption of woven outerwear in Belgium, 2008 Million units Denim trousers - for men and boys - for women and girls Other cotton trousers - for men and boys - for women and girls Synthetic trousers - for men and boys - for women and girls Shorts Outdoor jackets: -for men and boys -for women and girls Indoor jackets -for men and boys -for women and girls Shirts for men Blouses for women and girls Dresses Skirts Sources: Derived from Eurostat (2009)
Average price in €
Av. units per capita
6.3 4.7
36.80 32.15
1.2 0.9
9.6 11.9
31.00 23.10
1.8 2.2
2.3 4.2 5.0
18.75 24.45 21.60
0.4 0.8 0.5
2.9 4.1
42.70 35.80
0.6 0.8
1.5 72.15 2.6 56.55 13.0 23.60 13.3 23.15 9.3 33.70 10.5 27.20 and Euromonitor (2009)
0.3 0.5 2.5 2.5 1.7 1.9
Increased demand for products like jeans, other cotton trousers, shorts, sportswear and outdoor jackets, illustrates the popularity of casual wear. The role of cotton is dominating in products like trousers (84%), shirts for men and boys (88%); less dominant in woven outerwear for women and girls, such as blouses (70% cotton and 27% synthetics), skirts (69% cotton and 19% synthetics) and dresses (46% cotton and 28% synthetics). The role of man-made fibres and cotton are almost equal for outdoor jackets for men and boys (49% man-made fibres and 51% cotton) and for women and girls (54% manmade fibres and 46% cotton). Market segmentation Segmentation by demography, type of activity, attitude of consumers towards fashion and geography for Belgium will be discussed below. For more detailed information about these and other criteria, and their consequences for the woven outerwear market, we refer to chapter 2 of the CBI market survey ‘The woven outerwear market in the EU’. Demographic segmentation The size and age structure of the population is one of the basic determinants of which products will be bought and how much will be spent on woven outerwear. The Belgian population increased from 10.2 million in 2000 to 10.6 million in 2008. The population in Belgium has shown a steady growth rate over the last few years. A rising birth rate along with a declining death rate has contributed to this, although net migration has also helped through the arrivals of immigrants from other EU countries and from Africa.
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CBI MARKET SURVEY: THE WOVEN OUTERWEAR MARKET IN BELGIUM
Just like in other major EU countries, the category below 15 years has decreased in Belgium, while the categories 50 and older have increased substantially. In 2004, 17.1% of the total population was older than 65, following the trend in other European countries of an ageing population; 17.3% of the Belgian population will be 65 or over in 2010. The share of people younger than 15 years in total population decreased from 17.3% in 2004 to 16.9% in 2008. Table 1.3 Population of Belgium by age group and sex in 2004-2010, in thousands Males Females Total Age groups (in %) 0-14 15-24 25-49 50-65 65+ Total
2004
2006
2008
5,087 5,309 10,396
5,144 5,367 10,511
5,199 5,419 10,618
2010 forecasts 5,240 5,460 10,700
17.3 12.1 36.0 17.5 17.1 100.0
17.1 12.1 35.6 18.1 17.1 100.0
16.9 12.1 35.0 18.9 17.1 100.0
16.9 12.0 34.3 19.5 17.3 100.0
Source: Eurostat (2009) Another demographic development is the increase of one- and two-person households. The persons in such households do not have many household or family obligations, so they have a lot of leisure time. Besides that, the two-person households have rather high incomes. Both factors are stimulating clothing consumption. Table 1.4 Belgian woven outerwear consumption by gender, 2004-2009, in € million Woven outerwear for: -- women -- men -- children of which for: -- girls -- boys -- babies Total woven outerwear Sources: Euromonitor (2009) and
2004
2006
2008
Av. annual 2009 change forecasts
1,984 1,203 548
2,038 1,221 567
2,157 1,292 582
2.2 1.9 1.6
2,080 1,250 560
257 268 192 196 99 103 3,735 3,826 Eurostat (2009)
275 202 105 4,031
1.8 1.3 1.5 +2.0%
265 195 100 3,890
The Belgian market for women’s woven outerwear grew annually by 2.2% in the period 20042008, to reach a value of € 2.2 billion. The share of women’s woven outerwear in total woven outerwear expenditure increased in the period under review to 53.5% in 2008. Per capita expenditure for women amounted to € 479 in 2008 in Belgium, which was much higher than in neighbouring country France (€ 400). Children’s wear, in particular boys’ (+1.3%) and babies’ (+1.5%) woven outerwear posted the lowest growth rates in value terms in this period. The available range of clothing on the men’s woven outerwear market in Belgium became more attractive in recent years and young men have become more fashion-conscious. This resulted in an annual 2.9% higher consumption during the period 2006-2008, against 0.8% during 20042006. Per capita expenditure for men amounted to € 299 in 2008. In the children’s sector, of which 10/14 years was the largest sector in value terms, the per capita spending on children’s clothing (including sportswear and clothing accessories), amounted to an average of € 363 per girl and € 255 per boy aged 3-14 years. Belgium has a high consumption of babies’ woven garments in the EU with € 105 million in 2008, an average spending of € 432 per child.
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CBI MARKET SURVEY: THE WOVEN OUTERWEAR MARKET IN BELGIUM
The Belgian birth rate increased and will probably continue to increase in the period 20092010; this will stimulate the growth of the baby wear market, and should result in a growth in sales of older children’s wear. Segmentation by type of activity In general, the outerwear market can be divided into several segments, based on type of product combined with type of activity, resulting in a specific clothing behaviour, such as formal, (smart) casual, leisure and active sports segments. Purchases in volume of women’s formal clothing decreased in the period 2006-2008, caused by fewer purchases of suits, ensembles and indoor jackets, while purchases of women’s casual and leisurewear (outdoor jackets, cotton trousers, shorts) increased in the review period and purchases of active sportswear stabilised. Purchases in volume of men’s formal woven outerwear stabilized; casual and leisurewear dominate in men’s expenditure. Jeans for women and girls increased more in volume than in value, while expenditure on trousers (other than jeans) stabilized. Purchases of jeans for men and boys increased in volume and in value. Leisure and casual items such as cotton trousers, shorts and outdoor jackets remained rather popular among children. Expenditure on active sportswear in the children’s sector had a market share of 14% in 2008. The hype of casual and leisure wear came over the top and smart casual becomes more popular. Formal wear will lose out to these sectors but ‘smart casual’ will be further influenced by the workplace. Belgian consumers spend more on outerwear and pay more attention to clothing for special occasions (wedding, first communion etc) than in other EU countries, for all members of the family, which explains the high share of formal clothing. The opinion of some experts is that the move in clothing behaviour by men and children, from formal to casual and from leisure to casual by women, will not or only slightly, be continued in the coming years. Attitude of consumers towards fashion Just like in Italy, there is a relatively big market for luxury products, including knitwear. There is still a market among more affluent Belgian consumers for luxury items. Middle-class consumers, however, are expected to buy fewer of these products (or at least less expensive products) over the forecast period, particularly in light of the economic slowdown. Belgian designers play an important role in the fashion shows in Paris, for woven outerwear especially Ann Demeulemeester, Dries van Noten and Dirk Bikkembergs can be mentioned. They have a different style compared to the Italian or French designers. The Belgian collections are successfully sold worldwide and will also influence the lower price range collections. In addition to being price and quality-conscious, Belgian consumers are also brand-conscious. However, branded clothing is more and more combined with private labels of H&M, Zara or other retail chains. Geographic segmentation Geographic segmentation is one of the most common bases for market segmentation in Belgium. This is due to the two different languages spoken in the two main areas of the country. The Dutch-speaking Flanders area tends to be more affluent. It also incorporates the capital Brussels, which has a very affluent, international population. The Flanders region would be more likely to have greater numbers of purchases of fashionable clothing. Higher levels of disposable income and more young people in this region make it the part of Belgium most likely to attract investment, new fashion trends and a wider variety of clothing styles. On the other hand, the French speaking Wallonia is more rural. Tastes tend to be more conservative, the population is older on average and income levels are lower. This could suggest that low-priced woven outerwear may be in demand here.
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CBI MARKET SURVEY: THE WOVEN OUTERWEAR MARKET IN BELGIUM
Economic developments Real GDP growth in Belgium increased until 3.0% in 2006, fell to 2.6% in 2007 and to 1.1% in 2008. GDP growth is expected to decelerate to an average of -4.2% in 2009 and -0.6% in 2010. Private consumption growth in 2007 (+2.0%) was followed by a much lower growth in 2008 (+0.8%), is expected to contract by 1.3% in 2009 and to remain stagnant in 2010. Consumer demand will be constrained by low consumer confidence and rising unemployment rates. Trends in consumption • Like in other major EU countries, people have become larger, in length and width, which is valid for men and women and for the younger age groups, too. • Consumers become more aware of sustainability issues. • Women’s wear followed the broad trend toward more casual and sporty garments. However, several fashion forecasts announced that collections will be more feminine and will have fewer casual details. Some forecasts in women’s wear are: o a-symmetrical openings and several layers will become popular. Several lengths can be created in one garment or in a combination of several garments, like skirt with long tunic or blouse and short waistcoat or short jacket on a top. o Accents on the waist by large belts or accents on the neck by wide scarves in accent colours. o Skirts remain popular in all types and kind of lengths. • Men have an increasing affinity with fashion in clothing as well as in cosmetics. • The children’s wear market is increasingly driven by fashion, with children becoming ‘older younger’ and with older girls tending to buy young adult designer wear. Several women’s brands offer the same garments in smaller sizes for girls. • Babies’ wear is still classic and follows the trends of adult clothing to a lesser degree. Newborn collections are mainly plain or have childlike decorations and are less influenced by the casual trends as seen in adult fashion. More general trends and fashion trends related to woven outerwear can be found in chapter 1 of the CBI market survey ‘The woven outerwear market in the EU’. Production The structural decline in the production of woven outerwear continued in Belgium. The number of employees in clothing manufacturing decreased 2.6% in 2008 to 17,000; 95% of the 800 companies employed less than 50 workers. According to Eurostat/Prodcom, production of woven outerwear amounted to € 96 million in 2008, of which dresses and skirt accounted for 58% of total value. Table 1.5 Woven outerwear production in Belgium, 2004-2008, in € million Coats and outdoor jackets Indoor jackets Trousers and shorts Dresses and skirts Shirts and blouses Clothing accessories Other Total Source: Eurostat/Prodcom (2009)
2004
2006
7.1 18.4 23.7 37.8 11.1 1.2 9.6 108.9
7.6 14.1 16.8 54.4 9.2 0.6 4.9 107.6
2008 estimates 3.9 9.5 14.6 55.5 7.9 0.4 4.5 96.3
Av. annual change -11.3% -12.1% -9.6% +11.7% -7.2% -16.5% -13.3% -2.9%
Major players • In the jeans sector: Levi Strauss Europe (http://www.levi.com) and Vijverman (http://www.threestarsjeans.be). • In women’s wear: Andres (http://www.andres.be), Wesco (http://www.wesco.be) and Mayerline (http://www.mayerline.be). • In sports (outdoor) sector: Seyntex (http://www.seyntex.com).
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CBI MARKET SURVEY: THE WOVEN OUTERWEAR MARKET IN BELGIUM
•
Most of the Belgian clothing and apparel producers, classified by sector, can be found on the website of Creamode: http://www.belgianfashion.be.
Producers of woven outerwear (also knitwear and textiles) can be found at http://www.febeltex.be. Trends in production • Nearly all production has been relocated to lower cost countries. Many manufacturers in Belgium have developed an outsourcing policy. • According to Creamoda, unfair competition, such as dumping and counterfeiting, mainly ascribed to China, are complicating the situation for the Belgian industry. • CSI (Corporate Sustainable Issues) are becoming more important. More trends about production of woven outerwear can be found in chapter 2 of the CBI market survey ‘The woven outerwear market in the EU’. Opportunities and threats + Belgium can be considered as a pilot market for companies intending to expand their export activities in the EU to countries like France, The Netherlands or Germany. + Strong competition on the Belgian clothing market and rising labour costs have led to a further sourcing of products in low-cost countries, even for products with high design content. The largest middle range market segment may offer good opportunities for exporters in DCs. ± To satisfy the requirements of importing companies in Belgium and other EU countries, exporters in DCs will be faced with increased demands for higher quality and environmentally friendly products. - Although domestic production has been in decline and there has been a focus on exporting, Belgian consumers are quite loyal to their own products. The same development or trend can be an opportunity for one exporter and a threat to another. Exporters should therefore analyse if the developments and trends discussed in this survey provide opportunities or threats. The outcome of this analysis depends on each exporter’s specific circumstances. See chapter 7 of the CBI survey ‘The woven outerwear market in the EU’ for more information on opportunities and threats. Useful sources • Euratex Bulletins - http://www.euratex.org • Febeltex - http://www.febeltex.be • Creamode - http://www.belgianfashion.be • National statistics - http://www.statbel.fgov.be
2.
Trade channels for market entry
Trade channels Suppliers on the woven outerwear market in Belgium, which are the most interesting trade channels for exporters in DCs, are: • Domestic manufacturers; • Importers/wholesalers; • Retail organizations, like clothing multiples and non-specialised chains, like hypermarkets and sports chains. Which channel will be chosen, depends on factors like (among others): • Which type of woven outerwear producer (CMT, FOB, private label or own brand producer) tends to export to Belgium. These types of producer are described in chapter 1 and 2 of the CBI survey ‘Guidelines for exporting woven outerwear to the EU’.
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CBI MARKET SURVEY: THE WOVEN OUTERWEAR MARKET IN BELGIUM
•
The resources available and the priority given to the Belgian market.
Manufacturers Production has been discussed in chapter 1 of this survey. A short list has been given of manufacturers that might possibly be interested in any form of co-operation. Most of them have production activities abroad. Opportunities exist for exporters who are interested in forming relationships or partnerships with Belgian producers. There are around 260 active clothing manufacturers in Belgium, of which many SMEs. In addition, several brand agencies are expanding their activities to different branches, especially in the case of distributors of sportswear. More general information can be found in chapter 2 of the CBI market survey ‘The woven outerwear market in the EU’. Importers/wholesalers A list of wholesalers of clothing can be found on http://www.bsearch. be ; search for ‘groothandel kleding’ or for specific products or in a company database, like http://www.kompass.com (use keyword). Retail trade Belgium is the smallest retail market for woven outerwear of the seven major EU countries in terms of consumer expenditure. In terms of sales per inhabitant, on the other hand, the Belgian figure is among the highest in the EU. The influence of foreign countries is important in the distribution on retail level, for example: clothing multiples like C&A, H&M, Zara, Etam, M&S Mode, We (a detailed overview is given below), discounters like Zeeman and Wibra, variety store Hema and supermarkets like Aldi and Lidl. Influences from abroad will be expanded further by activities by, among others, Aktie Sport from The Netherlands, New Yorker (Germany), Mim (France/UK) and the Spanish Cortefiel, all of which have opened one or more (pilot) shops in Belgium. Table 2.1 Market shares of retail distribution of woven outerwear in Belgium, 2004-2008, in % of value 2004 Specialists 71 - Clothing multiples 29 - Independent retailers 42 Non-specialists 29 - Sports shops 3 - Home shopping companies 4 - Hyper- and supermarkets 4 - Department/variety stores 8 - Textile discounters 3 - Other 7 Total 100 Source: Euromonitor (2009) and trade estimates
2006 70 30 40 30 3 5 4 9 3 6 100
2008 69 31 38 31 3 4 5 9 3 7 100
In 2007, about 9,000 clothing shops were active in Belgium. Specialised retailers dominate the Belgian clothing retail sector and account for 69% of clothing sales, of which independent retailers account for a decreasing 40%. The growth of the market share of the specialized chains is important and is detrimental to the independent retailers (which have less than five stores) and a decreasing market share in (woven) outerwear. Except in the sports branch, there are no important buying groups active in the Belgian clothing sector. In the sports sector, a part of the independent sport shops has joined a buying group, of which the most important are mentioned in table 2.2.
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CBI MARKET SURVEY: THE WOVEN OUTERWEAR MARKET IN BELGIUM
Table 2.2 Major clothing multiples in Belgium, 2008-2009 Retail chain Family clothing C&A H&M JBC Zara Damart Promo Fashion Vögele E-5 Mode WE Men/women Esprit Men’s clothing WE Men Springfields Jack & Jones Women’s clothing WE Women M&S Mode Lola & Liza Claudia Sträter Didi Fashion Vero Moda Object Sports Intersport Primo Maternity and children’s wear Prémaman Discounters Zeeman Wibra
Parent company
Number of outlets
More information on:
108 56 101 25 62 62 46 72 11 20
http://www.c-and-a.com http://www.hm.com http://www.jbc.be http://www.zara.com http://www.damart.com http://www.promofashion.be http://www.charles-voegele.be http://www.e5-mode.be http://www.wefashion.com
WE Group (Netherlands) Cortefiel (Spain) Bestseller (Denmark)
15 25 17
http://www.wefashion.com http://www.grupocortefiel.com http://www.bestseller.com
WE Group (Netherlands Maxeda (Netherlands) Blue Stores NV Maxeda (Netherlands) Coltex (Netherlands) Bestseller (Denmark) Bestseller (Denmark)
10 72 50 17 17 27 24
http ://www.wefashion.com http://www.msmode.com http://www.lola-liza.com http://www.claudiastrater. http://www.didi.nl http://www.bestseller.com http://www.bestseller.com
Intersport International Euro Shoe Unie
30 33
http://www.intersport.com
128/300**
http://www.premaman.com
202 84
http://www.zeeman.com http://www.wibra.nl
C&A (Germany) Hennes & Mauritz (Sweden) JBC NV (Belgium) Inditex (Spain) Damart T.S.D. (France) Fabrimode NV Charles Vögele (Switzerland) SCF WE Group (Netherlands) Esprit Europe (Germany)
Prémaman Zeeman Group (Netherlands) Wibra (Netherlands)
http://www.primo.be
The leading department store is Inno (15 stores, and part of the German Kaufhof, http://www.inno.be). An important variety store is Hema from The Netherlands with 60 stores. International home-shopping organisations, active in Belgium are among others: La Redoute (http://www.redoute.be), Les 3 Suisses (http://www.3suisses.be), Damart (http://www.damart.be), Quelle (http://www.quelle.be) and Bonprix (http://www.bonprix.be). Dominant hyper- and supermarkets in Belgium are: • Carrefour Belgium: sells textiles under the brand name TEX in its 56 Carrefour Hypermarkets (http://www.hypercarrefour.be) and 372 GB supermarkets. • Delhaize Group operating with 738 stores under a variety of banners all over Europe. Under the name Delhaize (http://www.delhaizegroup.com), 43 stores are active in Belgium. • Colruyt (http://www.colruyt.be) operates with 240 outlets including clothing under the same name • Group Louis Delhaize (http://www.delhaize.be) is besides its international activities (Hungary, among others), active in Belgium through 671 stores and includes Match supermarkets and Cora hypermarkets. Textile discounters like Zeeman and Wibra (both from The Netherlands) operate in a lower (price/quality) segment just like the German-based food discounters Aldi (421 stores) and Lidl (270 stores), the latter two chains offer clothing items, though not a regular basis. Factory outlets, market stalls and cash’n carry wholesaler Makro/Metro (10 stores, part of the German Metro Group) are classified under ‘Other’ in table 2.1.
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CBI MARKET SURVEY: THE WOVEN OUTERWEAR MARKET IN BELGIUM
Nearly all of the above-mentioned retail organisations are active in the mid-market and/or lower-market segments. Trends • Foreign retailers dominate the marketplace in the outerwear sector and their role will become even more important in the future. • Clothing multiples and sports chains will grow to the detriment of independent retailers, while in the lower priced segments the role of (textile) discounters and hypermarkets will become more important. Price structure Margins have been falling in Belgium in recent years, as a result of intense competition in the supply chain and an intensification of competition between retailers. There are now signs that margins are stabilising and prices are slowly starting to increase again. Although there are some national differences, woven outerwear is a global business and margins tend to be similar in most markets. Different margins and prices apply in each trade channel, with a total mark-up (including VAT) of 2.4 up to 3.1 of the export (CIF) price. Table 2.3 Overview of margins in outerwear in Belgium Low Importers/wholesalers' margins Agents' margins Retailers' margins Mark-up Export (CIF) price - Consumer price
30% 10% 40% 2.4
High 40% 15% 75% 3.1
These margins will vary depending on which market segment is being approached. Price is an important selling factor, especially in the lower segments of the clothing market (hyper- and supermarkets and discounters), whereas in the higher segments (higher added value) factors like quality and fashion are more important than price. In the lower segments of the clothing market, retailers have little room to manipulate prices because competition is very fierce and margins are low. The market is intensively competitive and prices vary widely, according to the product and type of outlet. An indication of differences in price levels by types of outlets has been given in chapter 1 of ‘The woven outerwear market in the EU’ and an overview of margins valid for the levels distinguished in the outerwear market can be found in chapter 3 of the same survey. Finding a suitable trading partner In relation to how you find a trading partner, the usual trade sources are an important point of contact. The Belgian trade association Creamoda Belgian Fashion can be reached at http://www.creamoda.be. The best place to meet potential trading partners is at a trade fair. However, an international clothing trade fair has not been encountered in Belgium. For more details about national trade fairs in Belgium, contact http://www.bff.be. Another possibility for finding potential trading partners is an orientation on Internet and/or consulting the general trade directories. More information can be found in the CBI manuals ‘EU marketing guidelines for woven outerwear’ and ‘Export Planner’. Useful sources: The Federation of Belgian Distributors - http://www.fedis.be Belgian Chambers of Commerce and Industry - http://www.cci.be
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CBI MARKET SURVEY: THE WOVEN OUTERWEAR MARKET IN BELGIUM
3.
Trade: imports and exports
Imports During the period 2004-2008, woven outerwear imports by Belgium fell on average 3.8% per year in terms of volume to 127.6 thousand tonnes, but grew 3.7% annually in terms of value to € 3,151 million. Belgium ranked sixth in imports of woven outerwear, behind Germany, UK, France, Italy and Spain. An increasing part of Belgian woven outerwear consumption concerned imported products. Average import prices fluctuated during the period 2006-2008: a fall of 4.5% in 2007 and an increase of 2.6% in 2008, mainly caused by the intensive competition, both at trade level and at suppliers’ level. Sources of imports China remained by far the leading supplier of woven outerwear to Belgium accounting for 25% of total imports, at distance followed by France (12%), Germany and The Netherlands (each country 10%). 57% of total imports came from these four countries in 2008. Imports from the EU countries mentioned concerned re-exports for an important part. However, the source of these re-exports cannot be derived from trade statistics. The function of Belgium as transit trade country increased considerably during the review period. An increasing proportion of Belgian imports came from DCs: 49% of total imported value in 2008, against 47% in 2006 and 44% in 2004. Main developments in the area of origin of woven outerwear imports by Belgium in the period 2006-2008 were: • Imports from DCs grew 5% to the detriment of imports from other non-EU countries (48%) and to a lesser degree from other EU countries (+2%); • Imports from leading supplier China increased by 13% to an import share of 25% of total imports or 50% of total imports from DCs; • Imports from Asian DCs (except China) grew by 19% to a share of 13%; higher imports came from India (+10%), Vietnam (+44%), Indonesia (+10%) and Thailand (+9%), while imports from Bangladesh (-18%) and Pakistan (-7%) decreased; • Imports from Mediterranean DCs decreased by 4% to a share of 10%, caused by strongly reduced imports from Tunisia (-18%) and Morocco (-16%) and despite higher imports from Turkey (+33%); • Imports from Central & South America fell 43% (mainly Honduras) to € 2.5 million in 2008; • Imports from ACP countries grew by 19%, caused by increased imports from Mauritius (+34%) and despite decreased imports from Madagascar (-35%) to € 20 million in 2008. Imports from Mauritius covered 86% of total imports from ACP countries. Table 3.1 Imports of woven outerwear by and leading suppliers to Belgium in 2004-2008, share in % of value Total
2004 2006 2008 Leading suppliers in 2008 € mln € mln € mln (share in % of total imports) 2,741 3,085 3,151
Intra-EU:
1,484
1,535
58
86
1,199
1,464
Extra-EU ex. DCs: DCs:
Trousers Intra-EU: Extra-EU ex. DCs: DCs:
1,083 1,196 615 612 35 433
67 517
1,564 France (12); Germany (11); Netherlands (10); Italy (5); Spain (2); Poland (2); Belgium (1). 45 USA (1); Switzerland (
CBI MARKET SURVEY
The woven outerwear market in Belgium Publication date: October 2009
Report summary This CBI market survey discusses, amongst others, the following highlights for the woven outerwear market in Belgium: • The Belgians remained among the higher EU spenders per capita on woven outerwear, although the size of the population limited the woven outerwear market to € 4.0 billion in 2008. • Suppliers on the woven outerwear market in Belgium, which are the most interesting trade channels for exporters in DCs, are domestic manufacturers (mostly with production activities abroad), importers/wholesalers and retail organizations, like clothing multiples. • Belgium ranked sixth in imports of woven outerwear, behind Germany, UK, France, Italy and Spain. Woven outerwear imports by Belgium grew 3.7% annually during 2004-2008 to € 3.2 billion in 2008. • 49% of Belgium’s imports came from DCs in 2008, against 44% in 2004. China remained by far the leading supplier of woven outerwear to Belgium, at distance followed by France. During the period 2006-2008, imports from DCs grew 5%. Imports from China increased 13% to a market share of 25% of total imports; imports from other Asian DCs reached a share of 13% and Mediterranean DCs of 10%. • It should be noted that almost 50% of Belgian exports concerned re-exports. This survey provides exporters of woven outerwear with sector-specific market information related to gaining access to Belgium including Luxembourg; unless otherwise indicated Belgium included Luxembourg. By focusing on a specific country, the survey provides additional information, complementary to the more general information and data provided in the CBI market survey ‘The woven outerwear market in the EU’, which covers the EU in general. That survey also contains an overview and explanation of the selected products dealt with, some general remarks on the statistics used, as well as information on other available documents for this sector. It can be downloaded from http://www.cbi.eu/marketinfo. 1.
Market description: consumption and production
Consumption The share of clothing in total consumer spending in Belgium was high and the Belgians remained among the highest spenders per capita (€ 380) on woven outerwear. Despite the high spending per consumer, the clothing market was limited by the number of 10.6 million inhabitants. Belgium was the seventh largest woven outerwear market in the EU behind the six other major EU countries, of which Spain ranked 5th and The Netherlands 6th. Belgium accounted for 2.8% of total EU consumption. The woven outerwear market in Belgium increased to € 4.0 billion in 2008 in consumer prices (including VAT), which was 47% of total clothing consumption. Volume of consumption increased annually by 1.8% during the period 2004-2008, which indicates that consumer prices increased very slightly. Table 1.1 Consumption of woven outerwear in Belgium, 2004-2009, in € million 2004
2006
2008
7,833 +3.6%
8,332 +3.3%
8,617 +2.6%
Total outerwear 6,816 7,203 Woven outerwear 3,735 3,826 Sources: Eurostat (2009) and Euromonitor (2009)
7,409 4,031
Total clothing Annual change in %
Av. annual change +2.5%
2009 forecasts 8,320 -3.4%
+2.2% +2.0%
7,160 3,890
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CBI MARKET SURVEY: THE WOVEN OUTERWEAR MARKET IN BELGIUM
Economic developments will lead to a fall in woven outerwear spending of between 3 and 4% in 2009, but after this fall experts forecast a small increase in 2010. Type of product groups Market shares (in terms of value) for woven outerwear in 2008 were trousers and shorts (33%), outdoor jackets (7%), indoor jackets (6%), shirts and blouses (15%), dresses (8%) and skirts (7%). Total products mentioned in table 1.2 covered 76% of total woven outerwear consumption in Belgium in 2008. Market shares for other product groups were among others: active sportswear (5%), coats (3%), suits and ensembles (3%) and babies’ garments (3%). Table 1.2 Consumption of woven outerwear in Belgium, 2008 Million units Denim trousers - for men and boys - for women and girls Other cotton trousers - for men and boys - for women and girls Synthetic trousers - for men and boys - for women and girls Shorts Outdoor jackets: -for men and boys -for women and girls Indoor jackets -for men and boys -for women and girls Shirts for men Blouses for women and girls Dresses Skirts Sources: Derived from Eurostat (2009)
Average price in €
Av. units per capita
6.3 4.7
36.80 32.15
1.2 0.9
9.6 11.9
31.00 23.10
1.8 2.2
2.3 4.2 5.0
18.75 24.45 21.60
0.4 0.8 0.5
2.9 4.1
42.70 35.80
0.6 0.8
1.5 72.15 2.6 56.55 13.0 23.60 13.3 23.15 9.3 33.70 10.5 27.20 and Euromonitor (2009)
0.3 0.5 2.5 2.5 1.7 1.9
Increased demand for products like jeans, other cotton trousers, shorts, sportswear and outdoor jackets, illustrates the popularity of casual wear. The role of cotton is dominating in products like trousers (84%), shirts for men and boys (88%); less dominant in woven outerwear for women and girls, such as blouses (70% cotton and 27% synthetics), skirts (69% cotton and 19% synthetics) and dresses (46% cotton and 28% synthetics). The role of man-made fibres and cotton are almost equal for outdoor jackets for men and boys (49% man-made fibres and 51% cotton) and for women and girls (54% manmade fibres and 46% cotton). Market segmentation Segmentation by demography, type of activity, attitude of consumers towards fashion and geography for Belgium will be discussed below. For more detailed information about these and other criteria, and their consequences for the woven outerwear market, we refer to chapter 2 of the CBI market survey ‘The woven outerwear market in the EU’. Demographic segmentation The size and age structure of the population is one of the basic determinants of which products will be bought and how much will be spent on woven outerwear. The Belgian population increased from 10.2 million in 2000 to 10.6 million in 2008. The population in Belgium has shown a steady growth rate over the last few years. A rising birth rate along with a declining death rate has contributed to this, although net migration has also helped through the arrivals of immigrants from other EU countries and from Africa.
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CBI MARKET SURVEY: THE WOVEN OUTERWEAR MARKET IN BELGIUM
Just like in other major EU countries, the category below 15 years has decreased in Belgium, while the categories 50 and older have increased substantially. In 2004, 17.1% of the total population was older than 65, following the trend in other European countries of an ageing population; 17.3% of the Belgian population will be 65 or over in 2010. The share of people younger than 15 years in total population decreased from 17.3% in 2004 to 16.9% in 2008. Table 1.3 Population of Belgium by age group and sex in 2004-2010, in thousands Males Females Total Age groups (in %) 0-14 15-24 25-49 50-65 65+ Total
2004
2006
2008
5,087 5,309 10,396
5,144 5,367 10,511
5,199 5,419 10,618
2010 forecasts 5,240 5,460 10,700
17.3 12.1 36.0 17.5 17.1 100.0
17.1 12.1 35.6 18.1 17.1 100.0
16.9 12.1 35.0 18.9 17.1 100.0
16.9 12.0 34.3 19.5 17.3 100.0
Source: Eurostat (2009) Another demographic development is the increase of one- and two-person households. The persons in such households do not have many household or family obligations, so they have a lot of leisure time. Besides that, the two-person households have rather high incomes. Both factors are stimulating clothing consumption. Table 1.4 Belgian woven outerwear consumption by gender, 2004-2009, in € million Woven outerwear for: -- women -- men -- children of which for: -- girls -- boys -- babies Total woven outerwear Sources: Euromonitor (2009) and
2004
2006
2008
Av. annual 2009 change forecasts
1,984 1,203 548
2,038 1,221 567
2,157 1,292 582
2.2 1.9 1.6
2,080 1,250 560
257 268 192 196 99 103 3,735 3,826 Eurostat (2009)
275 202 105 4,031
1.8 1.3 1.5 +2.0%
265 195 100 3,890
The Belgian market for women’s woven outerwear grew annually by 2.2% in the period 20042008, to reach a value of € 2.2 billion. The share of women’s woven outerwear in total woven outerwear expenditure increased in the period under review to 53.5% in 2008. Per capita expenditure for women amounted to € 479 in 2008 in Belgium, which was much higher than in neighbouring country France (€ 400). Children’s wear, in particular boys’ (+1.3%) and babies’ (+1.5%) woven outerwear posted the lowest growth rates in value terms in this period. The available range of clothing on the men’s woven outerwear market in Belgium became more attractive in recent years and young men have become more fashion-conscious. This resulted in an annual 2.9% higher consumption during the period 2006-2008, against 0.8% during 20042006. Per capita expenditure for men amounted to € 299 in 2008. In the children’s sector, of which 10/14 years was the largest sector in value terms, the per capita spending on children’s clothing (including sportswear and clothing accessories), amounted to an average of € 363 per girl and € 255 per boy aged 3-14 years. Belgium has a high consumption of babies’ woven garments in the EU with € 105 million in 2008, an average spending of € 432 per child.
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CBI MARKET SURVEY: THE WOVEN OUTERWEAR MARKET IN BELGIUM
The Belgian birth rate increased and will probably continue to increase in the period 20092010; this will stimulate the growth of the baby wear market, and should result in a growth in sales of older children’s wear. Segmentation by type of activity In general, the outerwear market can be divided into several segments, based on type of product combined with type of activity, resulting in a specific clothing behaviour, such as formal, (smart) casual, leisure and active sports segments. Purchases in volume of women’s formal clothing decreased in the period 2006-2008, caused by fewer purchases of suits, ensembles and indoor jackets, while purchases of women’s casual and leisurewear (outdoor jackets, cotton trousers, shorts) increased in the review period and purchases of active sportswear stabilised. Purchases in volume of men’s formal woven outerwear stabilized; casual and leisurewear dominate in men’s expenditure. Jeans for women and girls increased more in volume than in value, while expenditure on trousers (other than jeans) stabilized. Purchases of jeans for men and boys increased in volume and in value. Leisure and casual items such as cotton trousers, shorts and outdoor jackets remained rather popular among children. Expenditure on active sportswear in the children’s sector had a market share of 14% in 2008. The hype of casual and leisure wear came over the top and smart casual becomes more popular. Formal wear will lose out to these sectors but ‘smart casual’ will be further influenced by the workplace. Belgian consumers spend more on outerwear and pay more attention to clothing for special occasions (wedding, first communion etc) than in other EU countries, for all members of the family, which explains the high share of formal clothing. The opinion of some experts is that the move in clothing behaviour by men and children, from formal to casual and from leisure to casual by women, will not or only slightly, be continued in the coming years. Attitude of consumers towards fashion Just like in Italy, there is a relatively big market for luxury products, including knitwear. There is still a market among more affluent Belgian consumers for luxury items. Middle-class consumers, however, are expected to buy fewer of these products (or at least less expensive products) over the forecast period, particularly in light of the economic slowdown. Belgian designers play an important role in the fashion shows in Paris, for woven outerwear especially Ann Demeulemeester, Dries van Noten and Dirk Bikkembergs can be mentioned. They have a different style compared to the Italian or French designers. The Belgian collections are successfully sold worldwide and will also influence the lower price range collections. In addition to being price and quality-conscious, Belgian consumers are also brand-conscious. However, branded clothing is more and more combined with private labels of H&M, Zara or other retail chains. Geographic segmentation Geographic segmentation is one of the most common bases for market segmentation in Belgium. This is due to the two different languages spoken in the two main areas of the country. The Dutch-speaking Flanders area tends to be more affluent. It also incorporates the capital Brussels, which has a very affluent, international population. The Flanders region would be more likely to have greater numbers of purchases of fashionable clothing. Higher levels of disposable income and more young people in this region make it the part of Belgium most likely to attract investment, new fashion trends and a wider variety of clothing styles. On the other hand, the French speaking Wallonia is more rural. Tastes tend to be more conservative, the population is older on average and income levels are lower. This could suggest that low-priced woven outerwear may be in demand here.
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CBI MARKET SURVEY: THE WOVEN OUTERWEAR MARKET IN BELGIUM
Economic developments Real GDP growth in Belgium increased until 3.0% in 2006, fell to 2.6% in 2007 and to 1.1% in 2008. GDP growth is expected to decelerate to an average of -4.2% in 2009 and -0.6% in 2010. Private consumption growth in 2007 (+2.0%) was followed by a much lower growth in 2008 (+0.8%), is expected to contract by 1.3% in 2009 and to remain stagnant in 2010. Consumer demand will be constrained by low consumer confidence and rising unemployment rates. Trends in consumption • Like in other major EU countries, people have become larger, in length and width, which is valid for men and women and for the younger age groups, too. • Consumers become more aware of sustainability issues. • Women’s wear followed the broad trend toward more casual and sporty garments. However, several fashion forecasts announced that collections will be more feminine and will have fewer casual details. Some forecasts in women’s wear are: o a-symmetrical openings and several layers will become popular. Several lengths can be created in one garment or in a combination of several garments, like skirt with long tunic or blouse and short waistcoat or short jacket on a top. o Accents on the waist by large belts or accents on the neck by wide scarves in accent colours. o Skirts remain popular in all types and kind of lengths. • Men have an increasing affinity with fashion in clothing as well as in cosmetics. • The children’s wear market is increasingly driven by fashion, with children becoming ‘older younger’ and with older girls tending to buy young adult designer wear. Several women’s brands offer the same garments in smaller sizes for girls. • Babies’ wear is still classic and follows the trends of adult clothing to a lesser degree. Newborn collections are mainly plain or have childlike decorations and are less influenced by the casual trends as seen in adult fashion. More general trends and fashion trends related to woven outerwear can be found in chapter 1 of the CBI market survey ‘The woven outerwear market in the EU’. Production The structural decline in the production of woven outerwear continued in Belgium. The number of employees in clothing manufacturing decreased 2.6% in 2008 to 17,000; 95% of the 800 companies employed less than 50 workers. According to Eurostat/Prodcom, production of woven outerwear amounted to € 96 million in 2008, of which dresses and skirt accounted for 58% of total value. Table 1.5 Woven outerwear production in Belgium, 2004-2008, in € million Coats and outdoor jackets Indoor jackets Trousers and shorts Dresses and skirts Shirts and blouses Clothing accessories Other Total Source: Eurostat/Prodcom (2009)
2004
2006
7.1 18.4 23.7 37.8 11.1 1.2 9.6 108.9
7.6 14.1 16.8 54.4 9.2 0.6 4.9 107.6
2008 estimates 3.9 9.5 14.6 55.5 7.9 0.4 4.5 96.3
Av. annual change -11.3% -12.1% -9.6% +11.7% -7.2% -16.5% -13.3% -2.9%
Major players • In the jeans sector: Levi Strauss Europe (http://www.levi.com) and Vijverman (http://www.threestarsjeans.be). • In women’s wear: Andres (http://www.andres.be), Wesco (http://www.wesco.be) and Mayerline (http://www.mayerline.be). • In sports (outdoor) sector: Seyntex (http://www.seyntex.com).
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CBI MARKET SURVEY: THE WOVEN OUTERWEAR MARKET IN BELGIUM
•
Most of the Belgian clothing and apparel producers, classified by sector, can be found on the website of Creamode: http://www.belgianfashion.be.
Producers of woven outerwear (also knitwear and textiles) can be found at http://www.febeltex.be. Trends in production • Nearly all production has been relocated to lower cost countries. Many manufacturers in Belgium have developed an outsourcing policy. • According to Creamoda, unfair competition, such as dumping and counterfeiting, mainly ascribed to China, are complicating the situation for the Belgian industry. • CSI (Corporate Sustainable Issues) are becoming more important. More trends about production of woven outerwear can be found in chapter 2 of the CBI market survey ‘The woven outerwear market in the EU’. Opportunities and threats + Belgium can be considered as a pilot market for companies intending to expand their export activities in the EU to countries like France, The Netherlands or Germany. + Strong competition on the Belgian clothing market and rising labour costs have led to a further sourcing of products in low-cost countries, even for products with high design content. The largest middle range market segment may offer good opportunities for exporters in DCs. ± To satisfy the requirements of importing companies in Belgium and other EU countries, exporters in DCs will be faced with increased demands for higher quality and environmentally friendly products. - Although domestic production has been in decline and there has been a focus on exporting, Belgian consumers are quite loyal to their own products. The same development or trend can be an opportunity for one exporter and a threat to another. Exporters should therefore analyse if the developments and trends discussed in this survey provide opportunities or threats. The outcome of this analysis depends on each exporter’s specific circumstances. See chapter 7 of the CBI survey ‘The woven outerwear market in the EU’ for more information on opportunities and threats. Useful sources • Euratex Bulletins - http://www.euratex.org • Febeltex - http://www.febeltex.be • Creamode - http://www.belgianfashion.be • National statistics - http://www.statbel.fgov.be
2.
Trade channels for market entry
Trade channels Suppliers on the woven outerwear market in Belgium, which are the most interesting trade channels for exporters in DCs, are: • Domestic manufacturers; • Importers/wholesalers; • Retail organizations, like clothing multiples and non-specialised chains, like hypermarkets and sports chains. Which channel will be chosen, depends on factors like (among others): • Which type of woven outerwear producer (CMT, FOB, private label or own brand producer) tends to export to Belgium. These types of producer are described in chapter 1 and 2 of the CBI survey ‘Guidelines for exporting woven outerwear to the EU’.
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CBI MARKET SURVEY: THE WOVEN OUTERWEAR MARKET IN BELGIUM
•
The resources available and the priority given to the Belgian market.
Manufacturers Production has been discussed in chapter 1 of this survey. A short list has been given of manufacturers that might possibly be interested in any form of co-operation. Most of them have production activities abroad. Opportunities exist for exporters who are interested in forming relationships or partnerships with Belgian producers. There are around 260 active clothing manufacturers in Belgium, of which many SMEs. In addition, several brand agencies are expanding their activities to different branches, especially in the case of distributors of sportswear. More general information can be found in chapter 2 of the CBI market survey ‘The woven outerwear market in the EU’. Importers/wholesalers A list of wholesalers of clothing can be found on http://www.bsearch. be ; search for ‘groothandel kleding’ or for specific products or in a company database, like http://www.kompass.com (use keyword). Retail trade Belgium is the smallest retail market for woven outerwear of the seven major EU countries in terms of consumer expenditure. In terms of sales per inhabitant, on the other hand, the Belgian figure is among the highest in the EU. The influence of foreign countries is important in the distribution on retail level, for example: clothing multiples like C&A, H&M, Zara, Etam, M&S Mode, We (a detailed overview is given below), discounters like Zeeman and Wibra, variety store Hema and supermarkets like Aldi and Lidl. Influences from abroad will be expanded further by activities by, among others, Aktie Sport from The Netherlands, New Yorker (Germany), Mim (France/UK) and the Spanish Cortefiel, all of which have opened one or more (pilot) shops in Belgium. Table 2.1 Market shares of retail distribution of woven outerwear in Belgium, 2004-2008, in % of value 2004 Specialists 71 - Clothing multiples 29 - Independent retailers 42 Non-specialists 29 - Sports shops 3 - Home shopping companies 4 - Hyper- and supermarkets 4 - Department/variety stores 8 - Textile discounters 3 - Other 7 Total 100 Source: Euromonitor (2009) and trade estimates
2006 70 30 40 30 3 5 4 9 3 6 100
2008 69 31 38 31 3 4 5 9 3 7 100
In 2007, about 9,000 clothing shops were active in Belgium. Specialised retailers dominate the Belgian clothing retail sector and account for 69% of clothing sales, of which independent retailers account for a decreasing 40%. The growth of the market share of the specialized chains is important and is detrimental to the independent retailers (which have less than five stores) and a decreasing market share in (woven) outerwear. Except in the sports branch, there are no important buying groups active in the Belgian clothing sector. In the sports sector, a part of the independent sport shops has joined a buying group, of which the most important are mentioned in table 2.2.
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CBI MARKET SURVEY: THE WOVEN OUTERWEAR MARKET IN BELGIUM
Table 2.2 Major clothing multiples in Belgium, 2008-2009 Retail chain Family clothing C&A H&M JBC Zara Damart Promo Fashion Vögele E-5 Mode WE Men/women Esprit Men’s clothing WE Men Springfields Jack & Jones Women’s clothing WE Women M&S Mode Lola & Liza Claudia Sträter Didi Fashion Vero Moda Object Sports Intersport Primo Maternity and children’s wear Prémaman Discounters Zeeman Wibra
Parent company
Number of outlets
More information on:
108 56 101 25 62 62 46 72 11 20
http://www.c-and-a.com http://www.hm.com http://www.jbc.be http://www.zara.com http://www.damart.com http://www.promofashion.be http://www.charles-voegele.be http://www.e5-mode.be http://www.wefashion.com
WE Group (Netherlands) Cortefiel (Spain) Bestseller (Denmark)
15 25 17
http://www.wefashion.com http://www.grupocortefiel.com http://www.bestseller.com
WE Group (Netherlands Maxeda (Netherlands) Blue Stores NV Maxeda (Netherlands) Coltex (Netherlands) Bestseller (Denmark) Bestseller (Denmark)
10 72 50 17 17 27 24
http ://www.wefashion.com http://www.msmode.com http://www.lola-liza.com http://www.claudiastrater. http://www.didi.nl http://www.bestseller.com http://www.bestseller.com
Intersport International Euro Shoe Unie
30 33
http://www.intersport.com
128/300**
http://www.premaman.com
202 84
http://www.zeeman.com http://www.wibra.nl
C&A (Germany) Hennes & Mauritz (Sweden) JBC NV (Belgium) Inditex (Spain) Damart T.S.D. (France) Fabrimode NV Charles Vögele (Switzerland) SCF WE Group (Netherlands) Esprit Europe (Germany)
Prémaman Zeeman Group (Netherlands) Wibra (Netherlands)
http://www.primo.be
The leading department store is Inno (15 stores, and part of the German Kaufhof, http://www.inno.be). An important variety store is Hema from The Netherlands with 60 stores. International home-shopping organisations, active in Belgium are among others: La Redoute (http://www.redoute.be), Les 3 Suisses (http://www.3suisses.be), Damart (http://www.damart.be), Quelle (http://www.quelle.be) and Bonprix (http://www.bonprix.be). Dominant hyper- and supermarkets in Belgium are: • Carrefour Belgium: sells textiles under the brand name TEX in its 56 Carrefour Hypermarkets (http://www.hypercarrefour.be) and 372 GB supermarkets. • Delhaize Group operating with 738 stores under a variety of banners all over Europe. Under the name Delhaize (http://www.delhaizegroup.com), 43 stores are active in Belgium. • Colruyt (http://www.colruyt.be) operates with 240 outlets including clothing under the same name • Group Louis Delhaize (http://www.delhaize.be) is besides its international activities (Hungary, among others), active in Belgium through 671 stores and includes Match supermarkets and Cora hypermarkets. Textile discounters like Zeeman and Wibra (both from The Netherlands) operate in a lower (price/quality) segment just like the German-based food discounters Aldi (421 stores) and Lidl (270 stores), the latter two chains offer clothing items, though not a regular basis. Factory outlets, market stalls and cash’n carry wholesaler Makro/Metro (10 stores, part of the German Metro Group) are classified under ‘Other’ in table 2.1.
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CBI MARKET SURVEY: THE WOVEN OUTERWEAR MARKET IN BELGIUM
Nearly all of the above-mentioned retail organisations are active in the mid-market and/or lower-market segments. Trends • Foreign retailers dominate the marketplace in the outerwear sector and their role will become even more important in the future. • Clothing multiples and sports chains will grow to the detriment of independent retailers, while in the lower priced segments the role of (textile) discounters and hypermarkets will become more important. Price structure Margins have been falling in Belgium in recent years, as a result of intense competition in the supply chain and an intensification of competition between retailers. There are now signs that margins are stabilising and prices are slowly starting to increase again. Although there are some national differences, woven outerwear is a global business and margins tend to be similar in most markets. Different margins and prices apply in each trade channel, with a total mark-up (including VAT) of 2.4 up to 3.1 of the export (CIF) price. Table 2.3 Overview of margins in outerwear in Belgium Low Importers/wholesalers' margins Agents' margins Retailers' margins Mark-up Export (CIF) price - Consumer price
30% 10% 40% 2.4
High 40% 15% 75% 3.1
These margins will vary depending on which market segment is being approached. Price is an important selling factor, especially in the lower segments of the clothing market (hyper- and supermarkets and discounters), whereas in the higher segments (higher added value) factors like quality and fashion are more important than price. In the lower segments of the clothing market, retailers have little room to manipulate prices because competition is very fierce and margins are low. The market is intensively competitive and prices vary widely, according to the product and type of outlet. An indication of differences in price levels by types of outlets has been given in chapter 1 of ‘The woven outerwear market in the EU’ and an overview of margins valid for the levels distinguished in the outerwear market can be found in chapter 3 of the same survey. Finding a suitable trading partner In relation to how you find a trading partner, the usual trade sources are an important point of contact. The Belgian trade association Creamoda Belgian Fashion can be reached at http://www.creamoda.be. The best place to meet potential trading partners is at a trade fair. However, an international clothing trade fair has not been encountered in Belgium. For more details about national trade fairs in Belgium, contact http://www.bff.be. Another possibility for finding potential trading partners is an orientation on Internet and/or consulting the general trade directories. More information can be found in the CBI manuals ‘EU marketing guidelines for woven outerwear’ and ‘Export Planner’. Useful sources: The Federation of Belgian Distributors - http://www.fedis.be Belgian Chambers of Commerce and Industry - http://www.cci.be
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CBI MARKET SURVEY: THE WOVEN OUTERWEAR MARKET IN BELGIUM
3.
Trade: imports and exports
Imports During the period 2004-2008, woven outerwear imports by Belgium fell on average 3.8% per year in terms of volume to 127.6 thousand tonnes, but grew 3.7% annually in terms of value to € 3,151 million. Belgium ranked sixth in imports of woven outerwear, behind Germany, UK, France, Italy and Spain. An increasing part of Belgian woven outerwear consumption concerned imported products. Average import prices fluctuated during the period 2006-2008: a fall of 4.5% in 2007 and an increase of 2.6% in 2008, mainly caused by the intensive competition, both at trade level and at suppliers’ level. Sources of imports China remained by far the leading supplier of woven outerwear to Belgium accounting for 25% of total imports, at distance followed by France (12%), Germany and The Netherlands (each country 10%). 57% of total imports came from these four countries in 2008. Imports from the EU countries mentioned concerned re-exports for an important part. However, the source of these re-exports cannot be derived from trade statistics. The function of Belgium as transit trade country increased considerably during the review period. An increasing proportion of Belgian imports came from DCs: 49% of total imported value in 2008, against 47% in 2006 and 44% in 2004. Main developments in the area of origin of woven outerwear imports by Belgium in the period 2006-2008 were: • Imports from DCs grew 5% to the detriment of imports from other non-EU countries (48%) and to a lesser degree from other EU countries (+2%); • Imports from leading supplier China increased by 13% to an import share of 25% of total imports or 50% of total imports from DCs; • Imports from Asian DCs (except China) grew by 19% to a share of 13%; higher imports came from India (+10%), Vietnam (+44%), Indonesia (+10%) and Thailand (+9%), while imports from Bangladesh (-18%) and Pakistan (-7%) decreased; • Imports from Mediterranean DCs decreased by 4% to a share of 10%, caused by strongly reduced imports from Tunisia (-18%) and Morocco (-16%) and despite higher imports from Turkey (+33%); • Imports from Central & South America fell 43% (mainly Honduras) to € 2.5 million in 2008; • Imports from ACP countries grew by 19%, caused by increased imports from Mauritius (+34%) and despite decreased imports from Madagascar (-35%) to € 20 million in 2008. Imports from Mauritius covered 86% of total imports from ACP countries. Table 3.1 Imports of woven outerwear by and leading suppliers to Belgium in 2004-2008, share in % of value Total
2004 2006 2008 Leading suppliers in 2008 € mln € mln € mln (share in % of total imports) 2,741 3,085 3,151
Intra-EU:
1,484
1,535
58
86
1,199
1,464
Extra-EU ex. DCs: DCs:
Trousers Intra-EU: Extra-EU ex. DCs: DCs:
1,083 1,196 615 612 35 433
67 517
1,564 France (12); Germany (11); Netherlands (10); Italy (5); Spain (2); Poland (2); Belgium (1). 45 USA (1); Switzerland (
