Successful Sales of Fabrics in Europeexport.textiles.org.tw/doc/Successful Sales of Fabrics...

SUCCESUCCE$$FUL SALES $$FUL SALES OF FABRICS IN OF FABRICS IN EUROPE EUROPE SEMINAR ON 12. MARCH 2014

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SUCCESSFULSUCCESSFUL SALES OF FABRICS IN SALES OF FABRICS IN EUROPEEUROPE

• Geographical markets• Enduses

• Targets groups

• Market trends

• Material preferences

• Tactics

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GEOGRAPHICAL MARKETSGEOGRAPHICAL MARKETS• 26% Germany

• 13% UK & Ireland

• 12% France

• 6% Italy

• 6% Switzerland

• 6% Russia

• 5% Austria

• 4% Norway

• 4% Sweden

• 18% others

* source: EOG Market Research 2012

OUTDOOR WHOLESA

LE

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GEOGRAPHICAL MARKETS GEOGRAPHICAL MARKETS --GERMANYGERMANY• 80 mio population

• Highest volume

• Relatively high spending power

• Attractive for export

• Leading sport trade shows

• Solid basis of• Sports brands

• Retail chains

• Discounters

• Price volume pyramid

High price

Middle price

Low price

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GEOGRAPHICAL MARKETS GEOGRAPHICAL MARKETS --SCANDINAVIASCANDINAVIA• 20 mio population

• High spending power

• High importance of functional clothing

• Successful export

• Several market-leading brands

• High price level

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GEOGRAPHICAL MARKETS GEOGRAPHICAL MARKETS -- RUSSIARUSSIA• 144 mio population

• Low spending power

• Higher in Moscow and St. Petersburg

• Low percentage of „active“ people

• High market share of imported brands

• Complicated import procedures

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GEOGRAPHICAL MARKETS GEOGRAPHICAL MARKETS -- RUSSIARUSSIA

Source: Alexey Gusmanov, BASK

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Weather conditions are tough.

Most areas have continental climate with hot summers and extreme cold winters.

Therefore outdoor clothing is often also in daily use, like on the way to work.

Due to similar climatic conditions consumers’ expectations are like in Scandinavia.


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• As the USSR was a closed country the internal tourism plays an important role.

• Consumers expect high quality of outdoor as protection against bad weather conditions

• Russian citizens enjoy outdoor activities very much.

• The infrastructure for outdoor activities is poor.


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• Current Outdoor market in Russia started in the 1990s.

• Rapid development of outdoor clothing market due to • country’s overall economic growth• change in people’s consciousness• more free time and recreation• higher personal income


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Characteristics to be considered

• Large geography

• Variety of climatic conditions

• Inequality of income

• Different consumer culture


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Perspectives

• Great growth potential

• Increasing share of Russian brands

• Increasing demand for technical features

• Better governmental support


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GEOGRAPHICAL MARKETS GEOGRAPHICAL MARKETS -- RUSSIARUSSIAImportant brands

• Sportmaster – retail chain (350 stores) with own brand (Moscow)

• Red Fox – leading outdoor brand with “Western” level (St. Petersburg)

• BASK – outdoor brand (Moscow)

• NOVATOUR – outdoor brand (Moscow)

• SPLAV – outdoor and military equipment (Moscow)

• Sivera – outdoor brand (Ryazan)

• Otmir – outdoor brand (Moscow)


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Requirements for sales in Russia

• Language barrier

• Special culture of communication

• Local agent/representative recommendable

• - but difficult to find

• No relevant international trade show for fabrics

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SUCCESSFULSUCCESSFUL SALES OF FABRICS IN SALES OF FABRICS IN EUROPEEUROPE• Geographical markets

• Enduses• Targets groups

• Market trends


• Tactics

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ENDUSESENDUSES• Sports

• Outdoor

• Snow

• Running + Biking

• Others

• Casual fashion

• Workwear

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ENDUSE SEGMENTATION ENDUSE SEGMENTATION -- OUTDOOROUTDOOR• 53% apparel

• 2% sleepingbags

• 3% tents

• 6% backpacks

• 36% hard goods


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ENDUSE SEGMENTATION ENDUSE SEGMENTATION –– OUTDOOR OUTDOOR APPARELAPPARELWholesale volume € 2476 million

•42% Outerwear Top

•12% Outerwear Bottom

•20 % Midlayer Top

•11% Primary Layer Top

•6% Primary Layer Bottom

•7% Accessories


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ENDUSES ENDUSES –– SPORT OUTDOORSPORT OUTDOOR• Leading brands

• Jack Wolfskin (D)

• Schöffel (D)

• VauDe (D)

• Mammut (CH)

• Maier (D)

• Fjällräven (S)

• Haglöfs (S)

• Norröna (N)

• Bergans (N)

• Helly Hansen (N)

• Salewa (I)

• Berghaus (UK)

• Regatta (UK)

• Trespass (UK)

• Cragghoppers (UK)

• Northland (A)

• Millet (F)

• Salomon (F)

• Aigle (F)

• Lafuma (F)

• Didrikssons (S)

• 8848 (S)

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ENDUSES ENDUSES –– SPORT SNOWSPORT SNOW• Leading brands (without

Outdoor)

• Ziener (D)

• Bogner (D)

• Sportalm (A)

• Kaipa (D)

• Reusch (I)

• Colmar (I)

• Kjus (CH)

• Degré 7 (F)

• Killy (F)

• Rossignol (F)

• Sun Valley (F)

• Dare2Be (UK)

• Quiksilver (F)

• Ripcurl (F)

• Billabong (F)

• Zimtstern (CH)

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ENDUSES ENDUSES –– SPORT RUNNING & SPORT RUNNING & BIKINGBIKING• Leading brands

• Odlo (CH)

• Gore (D)

• Rono (D)

• Gonso (D)

• Craft (S)

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ENDUSES ENDUSES –– SPORT OTHERSSPORT OTHERS• Leading brands

• Adidas (D)

• Puma (D)

• Nike (NL)

• Reebok (D)

• Hummel (DK)

• Jako (D)

• Uhlsport (D)

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ENDUSES ENDUSES –– CASUAL FASHIONCASUAL FASHION• Leading brands

• Hugo Boss (D)

• Bugatti (D)

• Gil Bret (D)

• Esprit (D)

• S. Oliver (D)

• Tom Tailor (D)

• Pierre Cardin (D)

• Moncler (I)

• Stone Island (I)

• Belstaff (I)

• GEOX (I)

• Napapirij (I)

• Gant (S)

• Bench (UK)

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ENDUSES ENDUSES –– WORKWEARWORKWEAR• Leading brands

• Kwintett (S)

• Lion (D)

• Berendsen (UK/S)

• UVEX (D)

• Mewa (D)

• Engelbert Strauss (D)

• Boco (D)

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• Enduses

• Targets groups• Market trends


• Tactics

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TARGET GROUPSTARGET GROUPS• Brands

• Retailers

• Vendors

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TARGET GROUPS TARGET GROUPS -- RETAILERSRETAILERS• Sports

Hypermarkets

• Décathlon (F)

• Sports Direct (UK)

• Sport Scheck (D)

• Go Sport (F)

• Athleticum (CH)

• Stadium (S)

• Sportmaster (RU)

• Outdoor Specialists

• Globetrotter (D)

• Blacks (UK)

• Rohan (UK)

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TARGET GROUPS TARGET GROUPS -- RETAILERSRETAILERS• Sports Buying

Groups

• Intersport

• Sport 2000

• Euro Family

• The role of buying groups

• Consolidating buying power

• Negotiating conditions with brands

• Clearing

• Marketing support

• Privat labels (exclusive brands) for members

• Voluntary

• Obligatory

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TARGET GROUPS TARGET GROUPS -- RETAILERSRETAILERS

• Handling of Discounters

• Vendors

• Europe

• Asia

• Often only purchasing of ready goods

• Discounters

• Tchibo (D)

• Lidl (D)

• Aldi (D)

• C & A (D)

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TARGET GROUPS MANAGEMENT TARGET GROUPS MANAGEMENT LEVELSLEVELS• Product managers

• Designers

• Material experts

• Purchasing department

• Marketing department

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• Enduses

• Targets groups

• Market trends• Material preferences

• Tactics

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MARKET TRENDSMARKET TRENDS• Growth of multiples

• Higher capital power

• Higher buying power

• „dying“ of independent retailers

• Brand stores

• Stronger influence of buying groups

• Sports goes fashion – fashion goes sport

• Fast growing online retail

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• Enduses

• Targets groups

• Market trends

• Material preferences• Tactics

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MATERIAL PREFERENCESMATERIAL PREFERENCESSport brands

• Highly technical

• Stretch

• Breathable

• Waterproofs

• Additives

• Sweat absorbence

• Carbon-free waterrepellence

• Anti-odour

• Anti-mosquito

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MATERIAL PREFERENCESMATERIAL PREFERENCESSport retailers

• Specialists – same as sport brands but on lower price level

• Discounters – basic performance but low price with high volume

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MATERIAL PREFERENCESMATERIAL PREFERENCESCasual Fashion

• Low to middle technical (mainly water-resistant)

• Soft and noiseless

• Aesthetic features

• Oil and wax finish

• Micro-peach

• Luster

• Drape

• Prefer Japanese and Korean fabrics

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MATERIAL PREFERENCESMATERIAL PREFERENCESWorkwear

• CI clothing

• Similar to sports

• Protective clothing

• Leasing

• EN and ISO norms

• Heat and flame protection

• High visibility

• Cold protection

• Protection from harmful substances

• Industrial washing

• Tensile strength

• Abrasion resistance (60.000 r. Martindale)

• High product liability

• Tests in EU institutes obligatory

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• Enduses

• Targets groups

• Market trends


• Tactics

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TACTICSTACTICSHow to approach the market?

• Trade shows

• in Europe

• ISPO

• Outdoor

• Performance Days

• Fabric shows in Munich, Milan and Paris

• in Asia

• Intertextile

• TITAS

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TACTICSTACTICSHow to approach the market?

• Agent

• Knowledgeable

• Personal network

• Free capacity

• Readiness to invest time and money

• No financial risk

• Commitment?

• Sales manager

• Qualification same as agent

• Financial risk

• Higher commitment

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TACTICSTACTICS1. Find your strengths

2. Do not pretend to be good in everything

3. Analyse your potential customer and listen to the needs

4. Show the customer what he needs

5. Deliver complete data (composition, weight, width, price, special properties)

6. Be quick in sending out samples

7. Be quick in response – even if you do not yet have the result

8. Be clear and reliable in lead times

9. Bulk production has to be like sms

10. Communicate difficulties as early as possible

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Peter MüggeBDMBusiness Development Muegge GmbHIn der Ley 5D- 45549 Sprockhövel Tel. [email protected]

Successful Sales of Fabrics in Europeexport.textiles.org.tw/doc/Successful Sales of Fabrics...

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