cbi product fact sheet apparel for 50+ consumers in ... · pdf filecbi product fact sheet...
TRANSCRIPT
Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer
CBI Product Fact Sheet Apparel for 50+ consumers in Scandinavia
‘Practical Market Insights into your Product’
This product fact sheet provides you with information that is
relevant if you plan to enter the Scandinavian apparel market
for 50+ consumers. In this report Scandinavia includes
Denmark, Sweden and Finland (EU) and Norway (non-EU).
Mature shoppers in Scandinavia are somewhat neglected by
clothing retailers, who usually focus on younger shoppers. This
group has hardly been targeted at all, although it offers
interesting opportunities. On average, Scandinavian 50+
consumers have higher disposable incomes than younger
Scandinavians. DC exporters could consider targeting the
segment for plus size/oversize clothing.
Product Definition
Apparel for 50+ consumers is a broad group of products which encompasses the
following categories:
Knitted and woven clothing
Bodywear
Sports clothing
Leather clothing
Fashion accessories
All HS codes under chapters 61 and 62 may be relevant for this target group.
Product Specifications
Quality
The climate in Scandinavia allows for greater knitwear consumption and for
stronger focus on quality fibres, which are robust and preferably wind and
waterproof. Nordic 50+ consumers have relatively high disposable incomes. This
target group has an increasingly positive attitude towards luxury products,
including fashion and accessories. These consumers are very interested in high
quality products and materials which have a natural feel. Sustainability is a key
concern in the Scandinavian apparel industry, both on the demand and on the
supply side. Examples of this trend are an increased interest and investment in
organic cotton, the introduction of fair trade labels as well as sustainable
production methods (please see Market Trends for more information).
C BI Product Factsheet A pparel for 50+ in Scandinavia
Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer
The different quality segments and related market shares for Scandinavia are
illustrated below in Table 1:
Table 1: Apparel quality segments and market shares in Scandinavia
Product criteria Brand names Fashion criteria
High price luxury
segment
Market share 5%
Limited collections, made with
special care; sometimes hand-
made, high quality materials.
Designer / brand name stands
for exclusivity and fashionable
clothes.
Day Birger & Keld Mikkelsen,
Baum und Pferdgarten,
Marimekko, Asplund
Highly fashionable collections.
Exclusively designed materials
and artworks.
Trend-setting in fashion.
Upper middle price
segment
Market share 30%
Collections are produced after
pre-sale; extra attention to
fitting and accessories.
Branded products, good quality
materials, broad range of
designs.
Mosdtrom, Bruuns Bazaar,
Gudrun & Gudrun, Mads
Norgaard, Bite Kai rand
Large variety of styles and
materials.
Styles and fitting are vitally
important.
Products in line with the latest
fashion trends.
Middle price
segment
Market share 40%
Collections are produced after
pre-sale; good to medium
quality materials.
Trend-following or classical
assortment; branded products.
IC Companies: Inwear,
Matinique, Jackpot, Part Two,
Indiska, Gina tricot
Good fitting is important.
Recognisable by brand-name,
visible on outside.
Low to middle price
segment (including
discount segment)
Market share 25%
Produced in larger quantities to
lower the price; basic styles,
fewer changes to patterns, basic
fitting.
Medium quality materials, lower
less fashionable.
H&M
Bestseller: Vero Moda, Only,
Jack& Jones
Collections with a view to the
current fashions trends.
Less fashionable, close to
trends.
Disclaimer: Company and brand names have been included as examples only and do not necessarily give a complete
overview.
Older consumers in Scandinavia are caught between a desire to remain young
and trendy and a need for clothing that fits their changing body shape and
covers up more than the garments designed for younger audiences.
Older consumers in Scandinavia are caught between a desire to remain young
and trendy and a need for clothing that fits their changing body shape. Their
changing body shape may mean that they want to cover up more than younger
consumers. Therefore, clothing designed for this group needs to have a different
fit than regular clothing.
Consumers aged 50+ in Scandinavia have a preference for comfortable, natural
feeling materials. They purchase casual, comfortable clothes, professional wear
and elegant clothes. Classic shapes like shirtdresses, trench coats, pea jackets,
car coats, jean jackets and jeans are popular among this group.
Organic cotton is becoming more popular. Cotton shortage and the great waste
of (water) resources in growing regular cotton, stimulates preferences for
alternative materials. The focus is on blends with cotton (e.g. luxury blends with
silk and new varieties with rami and hemp).
The target group of 50+ is very diverse and not homogenous. Fashion-
consciousness and perceptions of what is fashionable may vary with age. For
more information about general fashion trends, refer to: CBI Fashion Forecast.
Labelling
The following information will generally be found on the label in clothes:
Care symbols (see examples on the right)
Composition (Fibre content (percentages of fibres used))
Size
Country of origin (Made in)
C BI Product Factsheet A pparel for 50+ in Scandinavia
Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer
Further information, such as eco labels, labels for sustainable cotton
(see examples on the right), etc.
In Denmark the names of the fibres and materials must be declared in Danish.
In Sweden the names of the fibres and materials must be declared in Swedish.
In Finland the names of the fibres and materials must be declared in Finnish and
Swedish.
Care labels:
Many European countries, including Denmark and Finland, use the international
care labelling code GINETEX. The European trademark GINETEX care labelling
system is a voluntary service to consumers offered by the textile and apparel
industry. To control the correct application, the care labelling code was protected
by an international trademark. The ownership of this international trademark
belongs to GINETEX.
According to GINETEX standards, labels should include (see example on the
right):
general care and warnings
washing
drying
ironing
professional textile care (dry-cleaning)
For all the GINETEX labels see GINETEX website.
Packaging
Packaging in Scandinavia needs to meet all EU requirements. Also Norway, a
non-EU country, generally follows EU legislation. These requirements aim to
prevent the production of packaging waste, to promote the reuse of packaging
and so to reduce the final disposal of such waste. Retailers are mostly
responsible in the way their products are packed for sale in shops and can ask
suppliers to do this for them. Each individual garment is wrapped in plastic with
a sticker providing information on brand, size, and kind of garment. Similar
items could be packed in boxes.
Images
C BI Product Factsheet A pparel for 50+ in Scandinavia
Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer
Legislative requirements
When exporting to the EU you need to take into account various requirements
regarding labelling, dangerous substances, product safety and liability. Products
that fail to meet the legal requirements are not allowed into the EU market.
Norway is not a member of the EU, but participates in the European Economic
Area (EEA), which implies it generally follows EU legislation. Be aware of the fact
that Norway has sometimes implemented different legislation than EU countries.
Labelling
In order to ensure that consumers are given
accurate information on the fibre composition of
the products they are buying, the EU has
harmonised legislation regarding the names,
composition and labelling of textile products.
Dangerous substances
The EU has restricted the use of several
chemicals in textile products because they pose
a health risk for consumers. Examples of
restricted substances are: TRIS, TEPA and PBB
(flame retardants), Azo dyes, Nonyl Phenol
Ethoxylates, Dioctyltin (DOT) compounds and
nickel (e.g. in zippers and buttons).
In addition to the harmonised EU legislation,
Scandinavian countries have set additional
requirements regarding e.g. Formaldehyde and
PCP. Scandinavian countries are known for their
focus on ecological production and focus on
organic products. They have the most extended
legislation on this of all EU countries.
Product safety and liability
Products placed on the EU market should be safe
when used as intended. The EU has regulated
product safety in the General Product Safety
Directive (GSPD), which applies to all consumer
products marketed in the EU. The Directive on
liability for defective products provides that
companies placing products on the EU market
can be held responsible for damage caused by
defective products. In principle, it is your EU
buyer who can be held responsible for damage
caused by defects in your products. However,
possible claims may be passed on to suppliers.
Considerations for action
Make sure that your products comply with
labelling requirements. This means that you
need to indicate the fibre content using
prescribed fibre names.
Refer to the document EU Legislation:
Labelling of Textile Products (Including
Garments) on the CBI website for more
information on the labelling requirements.
To avoid the risk of using restricted
substances, it is advisable to keep an up-to-
date inventory of the chemicals used in your
products.
For more information on prohibited
substances, their uses and possible
alternatives, refer to the following
documents:
EU legislation: Azo dyes in textiles
and leather products.
EU legislation: Flame retardants in
textiles.
EU legislation: Nonyl phenols and
ethoxylates.
EU legislation: Nickel in clothing,
jewellery and accessories.
EU legislation: Organotin
compounds
Danish legislation:
Pentachlorophenol (PCP) in
products.
Finnish legislation: Formaldehyde
in textiles.
See the documents EU legislation: Liability
for defective products and EU legislation:
Product safety (consumer products) for
more information on these requirements.
C BI Product Factsheet A pparel for 50+ in Scandinavia
Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer
Non-legislative requirements
Sizing
The sizing of clothes sold on the EU market tends
to vary from country to country and even from
store to store. This can be very confusing and,
therefore, the textile industry in the EU is urging
the EU to lay down legislation on standard sizing.
At the moment the situation is precarious and it
is not sure if or when the EC will begin
discussions on the matter.
Sustainability on the rise
Consumers are increasingly aware of the social
and environmental circumstances during
production. As a consequence, requirements
regarding sustainability and certification are
increasingly important to buyers. In particular,
social aspects such as basic labour rights are
major issues in the garments industry.
Implementing a management system (e.g. ISO
14000 on environmental aspects, SA 8000 on
social conditions or, OHSAS 18001 on
occupational health and safety) or using
sustainably produced (e.g. organic) materials is
often required or may otherwise be a competitive
advantage.
Codes of conduct
EU buyers may expect you to comply with their
supplier codes of conduct. This can be the
importer’s own code of conduct or a code of
conduct as part of an initiative in which the
importer is participating (e.g. BSCI, Fair Wear
and the Clean Clothes Campaign).
Consumer labels
Consumer labels are labels used on the final
product to show consumers that the products
they are buying are produced in a socially
responsible or environmentally friendly way. To
be allowed to carry the label, producers must
meet certain standards and are often audited by
independent auditors.
Consumer labels can focus on one issue (e.g.
Fair Trade for social conditions or the EU Ecolabel
on environmental issues or on social and
environmental issues, such as MADE-BY).
Examples of consumer labels that could be
relevant are: Fair Trade, EU Ecolabel, GOTS and
Naturland for organic textile or Naturleder for
leather products.
Considerations for action
As long there is no legislation on sizing, it is
recommended that you use a recognised
standard on clothes sizing
Depending on your target market (segment)
certification or otherwise participating in an
initiative addressing sustainability issues can
give you a competitive advantage. Assess what
is actually interesting and feasible by asking
yourself the following questions:
What is my main market and who are my
main clients?
What is their demand with regard to my
sustainability performance and how may
this demand change in the future?
What sustainability initiative is potentially
the most suitable for me?
What do I need to invest to become certified
and what revenues can I expect in return?
What support can I get to become certified
(e.g. training)?
In case participating in a specific initiative is not
desirable and/or feasible for your business,
assess whether you can still benefit from the
general trend towards sustainability. You may
consider the following steps:
Implement practical measures aimed at
avoiding or minimising any negative
sustainability impacts of your operations.
Use the criteria of certification systems and
your clients’ codes of conduct as a source of
information and inspiration.
Refer to the documents Labels and
Standards: Sustainability for Apparel and
Management systems supporting
sustainable development, for more
information on relevant standards, labels
and other initiatives.
Specific regulations for Norway are listed below:
Norwegian legislation: Liability for
defective products.
Norwegian legislation: Endangered
species (CITES).
Norwegian legislation: Product safety.
Norwegian legislation: Packaging and
packaging waste.
Norwegian legislation: Wood packaging
materials.
C BI Product Factsheet A pparel for 50+ in Scandinavia
Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer
Another important label is OEKO-TEX. The
OEKO-TEX Standard consists of three types of
certification for textiles. These address the
effects of textile production processes on
humans and the environment, and the effects of
the textiles themselves, including the chemicals,
on the health and well-being of consumers.
Norwegian initiatives on sustainability.
Norwegian legislation: Footwear
labelling.
Norwegian legislation: Textile labelling.
Norwegian legislation: Persistent organic
pollutants (POPs).
Norwegian legislation: PCBs and their
replacements in products.
Norwegian legislation: Organotin
compounds.
Norwegian legislation: Cadmium in
several products.
Norwegian legislation: Nonyl phenols,
octyl phenols and ethoxylates.
Norwegian legislation: Perfluorooctane
sulfonates (PFOS).
Norwegian legislation: Azo dyes in textile
and leather products.
Norwegian legislation: PentaBDE,
OctaBDE and DecaBDE in products.
Norwegian legislation: Short Chained
Chlorinated Paraffins (SCCPs).
Norwegian legislation: Pentachlorophenol
(PCP) in textile and leather.
Norwegian legislation: Formaldehyde in
textile products.
Norwegian legislation: Flame retardants
in textiles and garments.
Norwegian legislation: Nickel in
piercings, ornaments and clothing
accessories.
Norwegian social code of conduct: Ethical
Trading Initiative
Trade and Macro-Economic Statistics
The 50+ Population in Scandinavia
Population ageing is undoubtedly going to be a key challenge over the next fifty
years in many Nordic countries. Its implications for socio-economic systems,
such as public pension programmes, health care or kinship structures, may be
considerable. For DC exporters to Scandinavia the ageing population forms an
interesting target group with healthy prospects for growth.
Sweden
In Sweden life expectancy is well above the EU average. Current life expectancy
in Sweden is 84 years for women and 80 years for men. Sweden will experience
a slow pattern of ageing with a moderately old to older population. The Swedish
population will increase to 10 million people in 2017. Source: Statistics Sweden,
2013
Denmark
In 2012 the Danish population amounted to 5.58 million people, of whom 23.6%
were 60 years or older. Today’s average life expectancy in Denmark is 81.6
years for women and 77.3 years for men. Source: Statistics Denmark, 2013
C BI Product Factsheet A pparel for 50+ in Scandinavia
Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer
Finland
Finland had a population of 5.4 million people in 2010, of whom 17.5% was 65
years or older. Current life expectancy in Finland is 83.5 years for women and
77.2 years for men.
Source: Statistics Finland, 2013
Norway
In Norway today’s average life expectancy is 83.4 years for women and 79.4
years for men. In 2013 Norway had a population of 5.0 million, of whom 15.6%
was 65 years or older. The rapid growth of the population will probably continue
for some time before it slows down.
Source: Statistics Norway, 2013
Fashion for 50+ consumers as an opportunity in apparel
Most people aged 50-60 in Scandinavia are still working and are relatively
wealthy. This group could be an opportunity for value growth for apparel
manufacturers, yet this group remains relatively neglected by fashion retailers
and fashion brands in particular, who continue to focus much of their efforts on
younger target groups. Lack of interest in older consumers has sometimes been
attributed to the negative stereotypes associated with ageing. But today’s
elderly are generally active, interested in appearance, and enthusiastic
consumers with the means and willingness to buy many goods and services. In
fact, older consumers often are the best target for luxury products.
Given the difficult economic environment in which high street fashion retailers
are currently operating, it is perhaps surprising that retailers have been
relatively slow in targeting a group that offers a definite opportunity. Catering to
this age group does, however, bring its challenges, and it is perhaps the risk of
failure that has stifled development. Rather than a limitation that prescribes and
defines a person's actions and attitudes, age is increasingly perceived as
arbitrary, with a person's mental outlook playing a bigger role.
Developing the right concepts for each stage of life is a very current challenge
for apparel retailers, many of whom have to rethink their strategies to meet
consumers' changing needs. However, with regard to 50+ consumers, there are
many opportunities in this segment, as there are very few retailers currently
focusing on this segment. Apparel retailers are very cautious in addressing
elders with specific marketing, as this could be counterproductive, as nobody
wants to feel old.
Source: International Journal of Consumer Studies
Apparel Market in Scandinavia
Many Nordic countries have experienced very weak growth in recent years. The
following paragraphs will highlight the apparel markets in Denmark, Sweden,
Finland and Norway.
Denmark
Denmark is considered as the “Gateway” to Scandinavia. This is not only due to
its geographical position intertwining with the rest of the EU and the continent.
They are also leading in the Nordic apparel industry. The Danish market can act
as a bridgehead to the rest of the Scandinavian region.
The Danish apparel industry had a turnover of € 5.2 billion in 2012. Today, the
industry employs 9,600 people. The value of apparel (HS codes 61 and 62)
exported from Denmark was € 2.8 billion.
The value of apparel imported into Denmark amounted to € 3.1 billion in 2012.
China was the biggest apparel exporter to Denmark with a value of more than €
1 billion in 2012. The top 5 countries that export apparel to Denmark in 2012
are shown in the table below:
C BI Product Factsheet A pparel for 50+ in Scandinavia
Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer
Table 2: Top 5 apparel exporting countries to Denmark, 2012* (HS codes 61 and
62)
Exporting
country
Value of imports (€ thousands)
HS Code
61
HS Code 62 Country totals
China 405,865 640,728 1,046,593
Turkey 221,324 156,785 378,109
Bangladesh 212,225 71,329 283,554
Germany 119,685 110,307 229,992
India 41,441 155,815 197,256
Total imports
(world)
1,436,523 1,698,927 3,135,450
* Forecast
Source: Trade Map, 2013; DMOG, 2013
The apparel retail industry in Denmark decreased by 2% in 2012 to reach a level
of € 4.3 billion. The compound annual growth rate (CAGR) of the industry in the
period 2008-2012 was -0.3%.
Denmark accounts for 1.4% of European apparel retail industry value.
Women’s wear is the largest segment of the apparel retail industry in Denmark,
accounting for 52.4% of the industry's total value. The men’s wear segment
accounts for a further 29.7% of the industry.
Figure 1: Denmark apparel retail industry value, € billion, 2008 – 2017*
Source: Market Line, February 2013; * Forecast
Looking at the years ahead, the Danish apparel retail industry is predicted to
have a value of € 4.7 billion in 2017, an increase of 10.2% since 2012. The
CAGR of the industry in the period 2012-2017 is forecast to be 2%.
Sweden
The Swedish apparel industry had a turnover of € 24 billion in 2012. The value
of apparel (HS codes 61 and 62) exported from Sweden was € 1.3 billion. The
value of apparel imported to Sweden amounted to over € 3 billion in 2012.
China was the biggest apparel exporter to Sweden with a value of almost € 0.7
billion in 2012. The top 5 countries that export apparel to Sweden in 2012 are
shown in the table below:
0,0
0,5
1,0
1,5
2,0
2,5
3,0
3,5
4,0
4,5
5,0
2008 2009 2010 2011 2012* 2013* 2014* 2015* 2016* 2017*
€ B
illio
n
C BI Product Factsheet A pparel for 50+ in Scandinavia
Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer
Table 3: Top 5 apparel exporting countries to Sweden, 2012* (HS codes 61 and
62)
Exporting
country
Value of imports (€ thousands)
HS Code
61
HS Code 62 Country
totals
China 286,802 385,877 672,679
Bangladesh 149,673 80,656 230,329
Turkey 134,508 62,889 197,397
Denmark 110,033 183,978 294,011
Hong Kong 110,033 103,961 213,994
Total imports
(world)
1,400,800 1,610,357 3,011,157
* Forecast
Source: Trade Map, 2013; Volante, 2013
The apparel retail industry in Sweden grew by 2.5% in 2012 to reach a level of €
7 billion. The compound annual growth rate (CAGR) of the industry in the period
2008-2012 was 2%.
Sweden accounts for 9.7% of the European apparel retail industry value.
Women’s wear is the largest segment of the apparel retail industry in Sweden,
accounting for 54.3% of the industry's total value. The men’s wear segment
accounts for a further 31.4% of the industry, while children’s wear forms the
remaining share.
Figure 2: Sweden apparel retail industry value, € billion, 2008 – 2017*
Source: Market Line, February 2013; * Forecast
Looking at the years ahead, the Swedish apparel retail industry is predicted to
have a value of € 7.9 billion in 2017, an increase of 13.4% since 2012. The
CAGR of the industry in the period 2012-2017 is forecast to be 2.5%.
Finland
The value of apparel (HS codes 61 and 62) exported from Finland was € 318
million. The value of apparel imported to Finland amounted to € 1.4 billion in
2012. Sweden was the biggest apparel exporter to Finland with a value of €319
million in 2012. Both import and export seem to be growing. The top 5 countries
that export apparel to Finland in 2012 are shown in the table below:
0,0
1,0
2,0
3,0
4,0
5,0
6,0
7,0
8,0
2008 2009 2010 2011 2012* 2013* 2014* 2015* 2016* 2017*
€ B
illio
n
C BI Product Factsheet A pparel for 50+ in Scandinavia
Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer
Table 4: Top 5 apparel exporting countries to Finland, 2012* (HS codes 61 and 62)
Exporting
country
Value of imports (€ thousands)
HS Code
61
HS Code 62 Country
totals
Sweden 165,851 153,051 318,902
China 92,223 161,751 253,974
Denmark 70,241 87,928 158,169
Germany 66,692 85,117 151,809
Estonia 16,972 60,650 77,622
Total imports
(world)
619,307 749,820 1,369,127
* Forecast
Source: Trade Map, 2013
For the Finnish apparel market, there is less specific information available.
Figures from Finatex, the Finish apparel association, show that the overall
production of apparel is shrinking. In 2011 Finland produced less than € 1
million worth of clothing and textiles. The consumption of clothing on the other
hand seems to be growing again since 2009.
Norway
The value of apparel (HS codes 61 and 62) exported from Norway was € 83
million. The value of apparel imported to Norway amounted to € 1.9 billion in
2012. China was the biggest apparel exporter to Norway with a value of more
than € 900 million in 2012. The top 5 countries that export apparel to Norway in
2012 are shown in the table below:
Table 5: Top 5 apparel exporting countries to Norway, 2012* (HS codes 61 and
62)
Exporting
country
Value of imports (€ thousands)
HS Code
61
HS Code 62 Country totals
China 406,691 506,122 912,813
Turkey 95,215 74,712 169,927
Bangladesh 67,848 43,545 111,393
India 20,341 63,539 83,880
Italy 36,805 42,074 78,879
Total imports
(world)
874,280 1,044,831 1,919,111
* Forecast
Source: Trade Map, 2013
There are no recent apparel production data available for the Norwegian market.
The apparel retail industry in Norway grew by 3.2% in 2012 to reach a level of €
4.7 billion. The compound annual growth rate (CAGR) of the industry in the
period 2008-2012 was 2.7%.
Norway accounts for 1.5% of the European apparel retail industry value.
Women’s wear is the largest segment of the apparel retail industry in Norway,
accounting for 53.9% of the industry's total value. The men’s wear segment
accounts for a further 32.1% of the industry, while children’s wear forms the
remaining share.
C BI Product Factsheet A pparel for 50+ in Scandinavia
Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer
Figure 3: Norway apparel retail industry value, € billion, 2008 – 2017*
Source: Market Line, February 2013; * Forecast
Looking at the years ahead, the Norwegian apparel retail industry is predicted to
have a value of € 5.3 billion in 2017, an increase of 10.6% since 2012. The
CAGR of the industry in the period 2012-2017 is forecast to be 2.1%.
Specific trade data for the 50+ segment are not available. For further
information, see the CBI Trade Watch Apparel.
Market Channels and Segments
Clothes for 50+ are mainly sold via the physical shops of retailers. Web shops
are also gaining popularity among this consumer group, but the physical shops
will remain the largest channel. The market channels for apparel in Scandinavia
are illustrated in Figure 4 below.
Figure 4: Market channels EU/EFTA apparel market in Scandinavia
For further information, see the CBI Market Channels and Segments Apparel.
0,0
1,0
2,0
3,0
4,0
5,0
6,0
2008 2009 2010 2011 2012* 2013* 2014* 2015* 2016* 2017*
€ B
illio
n
Developing
Country
European
market Customers
Main distribution flow
Secondary distribution flow
Developing
Country
exporters
Importers/
Wholesaler/
distributors
European
manufacturers
Retailers
Agents/
Brokers/
Buying
Houses
Retailers
Designer shops
Independent shops
Clothing chains
Department stores
Hyper/supermarkets
Factory Outlets/
Discounters
Mail-order
companies
Webshops
Street markets
(stalls)
C BI Product Factsheet A pparel for 50+ in Scandinavia
Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer
Market Trends
Most important developments Considerations for action
Sustainability
More and more buyers in Scandinavia will
include sustainability issues in their
purchasing policies. 50+ consumers in
Scandinavia are very eco conscious. The
main environmental issues are:
1. Water use and pollution
2. Energy use
3. Chemical use
Mature shoppers
Mature shoppers in Scandinavia are often
neglected by clothing retailers, with many
new entrants focusing on younger shoppers.
Some new entrants on the Scandinavian
market have been focusing on younger
shoppers. However, with a growing group of
older consumers, clothing retailers need to
cater to these shoppers or risk losing sales
to competitors that do.
Source: Research and Markets, 15-05-2013
Oversized clothing 50+ market
The demand for plus size / oversize clothing is
expected to increase in the coming years. For
many years now the average body
measurements of the general population have
been showing a tendency towards larger sizes.
Communicating your company’s
performance on responsible water use,
energy consumption and chemicals may
give you a competitive advantage.
Scandinavian countries have initiated many
forums and seminars within this industry
that are aimed at “sustainable fashion” and
“sustainable production”. The focus on
Corporate Social Responsibility (CSR) is a
key factor for Scandinavian fashion
managers and is top of mind when choosing
new sourcing destinations. When aiming to
export to Scandinavia consideration of these
factors is the key to success.
For marketing or pitching your advertising,
use figureheads to show dynamic life, young
look and spirit including above 50, though
any association exclusively with elders
might reduce this group’s interest. Focus on
good quality items that can be sold in the
middle high segment.
Focus on 'shape appropriate' clothes instead
of 'age appropriate'.
Create clothes that flatter while remaining
stylish and trendy with a good cut and of
good quality.
Country trends and attitudes
Although Scandinavia is usually referred to as a uniform group of countries,
there are of course differences in culture and attitudes relating to fashion. This
should be taken into account when exporting to Scandinavian countries. The
most important characteristics for Denmark, Sweden, Finland and Norway are
described below.
Denmark
Danes are fashion conscious and stylish; this leads to an interest and desire for
new and innovative styles of clothing. Organic garments are emerging although
this is still a niche market. The focus on casual and leisure wear will continue
with a tendency to use more natural fibres. Consumers in Denmark pay
increasing attention to the ethical conduct of business. Foreign suppliers are
expected to have environmentally and socially accountable production facilities.
C BI Product Factsheet A pparel for 50+ in Scandinavia
Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer
Sweden
Swedes are aware of their outward appearance and follow trends, sometimes
even to extremes. Women have a better fashion sense than men and their
expenditure is higher. Swedish consumers are demanding, their knowledge of
materials, care and environmental impact and social requirements is generally
good. The Swedish climate can be extremely cold in winter. Casual garments
have to be comfortable, robust and preferably wind and waterproof. Swedes are
fond of outdoor activities and spend a great deal of their time in the countryside.
Finland
Companies selling into Finland have to be aware of the climate: winters can be
extremely cold and wet which requires garments that are comfortable, robust,
preferably wind and waterproof. Consumers have become more price conscious.
Clothing sold through discounters won ground. Consumers are becoming more
aware of sustainability issues but not as much as in Sweden.
Norway
Norway has a similar climate to Finland and Sweden. Half the nation's families
have access to nearby ski huts, cabins, or boats, and many people engage in
outdoor pursuits such as hiking, skiing and boating. A recent poll shows that
globally a majority of shoppers is willing to pay a bit more for clothes to help
improve conditions in apparel factories in developing countries. But there is
scepticism among shoppers that paying more for so-called ethical clothing
makes a difference for workers. Only 19% of Norwegians were confident that
extra money was used to improve worker conditions.
Other trends
While China’s economy is growing rapidly, Europe is passing through a difficult
economic situation, which has had an impact on private consumption and
spending. The largest apparel retail companies Inditex (from Spain) and Hennes
& Mauritz (from Sweden) are switching their focus away from their European
home territories towards Asia. Inditex only gets about two-thirds of its revenue
from Europe, thanks to an aggressive expansion in Asia, including 400 stores in
China. Inditex is still building stores at a frantic pace in Asia, with plans to add
80 to 100 a year in China.
For further information on market trends, see the CBI Trend Mapping Apparel.
Market Competitiveness
The Scandinavian apparel retail industry is rather fragmented and this,
combined with moderate growth in recent years, has resulted in an increased
level of competition. The competitive landscape for the Scandinavian apparel
market is comparable to the situation at a European level. For more insights into
market competiveness and considerations for actions related to the apparel
market in Scandinavia, see the CBI Competitiveness Apparel.
Useful Sources
International Textile and Apparel Association, http://www.itaaonline.org
Market Access Database, http://madb.europa.eu/madb/indexPubli.htm
Nordic Fashion Association (NFA),
http://www.nordicfashionassociation.com
Denmark
Danida, http://www.um.dk
Danish chamber of commerce, http://www.danskerhverv.com
Dansk Fashion and Textile, http://www.dmogt.dk
C BI Product Factsheet A pparel for 50+ in Scandinavia
Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer
Finland
Central Chamber of Commerce in Finland,
http://www.keskuskauppakamari.fi
Finatex, http://www.finatex.fi
Finnpartnership, http://www.finnpartnership.fi
Norway
Norad, http://www.norad.no
Nordic Ecolabel, http://www.nordic-ecolabel.org
TBL Teko, http://www.tbl.no (website only in Norwegian)
VIRKE – The Enterprise Federation of Norway, Department of
International Trade Cooperation (DITC),
http://www.virke.no/omvirke/aboutvirke
Sweden
The Swedish Association of Agents, http://www.agenturforetagen.se
Invest Sweden, http://www.investsweden.se
Open Trade Gate Sweden, http://www.opentradegate.se
Sida, Swedish International Development Cooperation Agency,
http://www.sida.se/English
Swedish Chambers of Commerce, http://www.swedishchambers.se
Swedish National Board of Trade, http://www.kommers.se/In-English
Swedish Trade Federation, http://www.svenskhandel.se
Swedish Trade Promotion Office, http://www.cci.se/trade
TEKO/Sveriges Textil and Modefoeretag, http://www.teko.se
Textile Importers' Association of Sweden,
http://www.textileimporters.se/eng/home.php
Trade Fairs
CIFF: Copenhagen International Fashion Fair, once a year.
Copenhagen Fashion Week
Vision Copenhagen: International Fashion Fair.
Fashion + Beauty Finland: New stylish fashion event.
The Gallery: International fashion fair for fashion and accessories held
twice a year.
In Fashion Munich (IFM): one of the largest fashion exhibitions in
Germany. Yearly event.
InNaTex: the only natural textile fair worldwide, which offers clothing
sector and accessories.
Premium Order Munich: International fashion trade show on women’s
wear, men’s wear, denim, accessories and shoes.
Ethical Fashion Show: Trade show, organized in Paris (France) and
Berlin (Germany).
This survey was compiled for CBI by GIA
in collaboration with CBI sector expert Dhyana van der Pols.
Disclaimer CBI market information tools: http://www.cbi.eu/disclaimer