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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).

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Page 1: CBI Product Fact Sheet Apparel for 50+ consumers in ... · PDF fileCBI Product Fact Sheet Apparel for 50+ ... Examples of this trend are an increased interest and investment in

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).

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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)

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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

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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.

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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.

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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

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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:

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C BI Product Factsheet A pparel for 50+ in Scandinavia

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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

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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

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C BI Product Factsheet A pparel for 50+ in Scandinavia

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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.

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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)

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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.

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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

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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