20household20and20furnishing20textiles20 20EU1

THE HOUSEHOLD AND FURNISHING TEXTILES MARKET IN THE EU
CBI MARKET SURVEY
THE HOUSEHOLD AND

FURNISHING TEXTILES MARKET
IN THE EU
Publication date: October, 2009
Report summary...................................................................................................... 2
Introduction ............................................................................................................ 3
1 Demand ............................................................................................................ 4
2 Production...................................................................................................... 17
3 Trade channels for market entry .................................................................... 22
4 Trade: imports and exports ............................................................................ 27
5 Price developments ........................................................................................ 37
6 Market access requirements........................................................................... 39
7 Opportunity or threat? ................................................................................... 41
Appendix A Product characteristics ..................................................................... 42

Appendix B Introduction to the EU market .......................................................... 47
Appendix C Overview of retail prices of household and furnishing textiles .......... 48
Appendix D List of developing countries .............................................................. 49
This survey was compiled for CBI by Facts Figures Future.
Disclaimer CBI market information tools: http://www.cbi.eu/disclaimer
Source: CBI Market Information Database • URL: www.cbi.eu • Contact: marketinfo@cbi.eu • www.cbi.eu/disclaimer
Page 1 of 50
Report summary
This CBI market survey profiles the household and furnishing market in the EU. Seven product
groups have been included: blankets and travelling rugs, bed linen, table linen, bathroom and
kitchen linen, curtains, bedspreads and other furnishing articles. The first four product groups
belong to the group household textiles. The last three belong to the group furnishing textiles.
The household and furnishing market in EU countries is discussed in the CBI market surveys
covering the market in individual countries.
Demand
Between 2004 and 2008, demand for household textiles in the EU annually decreased by an
average of 1.8% to reach € 4.9 billion. The top five countries – consisting of Germany, France,
the UK, Italy and Spain – accounted for 70% of total demand in the EU. Demand for furnishing
textiles in the EU increased by an average of 4.0% annually to € 4.0 billion in 2008. The UK,
Italy, Germany, Spain and France accounted for 70% of total demand in the EU. The product
groups bed linen and curtains were the most important product groups.
Consumers are expected to respond to the difficult economic climate by postponing purchases
and making do with existing household and furnishing textiles. At the same time, however,
people desire to remain at home during uncertain times and focus their attention on products
that transform their houses to places of comfort and safety.
Production
The value of EU production of household textiles annually decreased by an average of 8.2% in
the period 2004-2008 to reach an output of € 2.6 billion in 2008. The production of household
textiles in the EU is dominated by Italy, accounting for more than 20% of total production
output of household textiles in the EU. The restructuring policy of many manufacturing
companies in the EU has led to the relocation of the production of textiles, mainly to low cost
countries. As a result, most Central and Eastern European countries saw a large increase in
production output. The value of EU production of furnishing textiles increased in the same
period by 3.9% to reach an output of € 3.2 billion in 2008. The production of furnishing textiles
in the EU is dominated by the UK, accounting for almost 30% of total production output of
furnishing textiles in the EU.
Trade channels
The choice of market entry strategy depends on the resources available and the priority given
to the different European markets. However, wholesalers/importers and retailers are, in
general, the most interesting trade channel for exporters from developing countries.
Imports
Total EU imports of household and furnishing textiles grew by an annual average of 3.0% and
3.2% to € 4.9 billion and € 2 billion respectively between 2004 and 2008. Imports from
developing countries (DCs) increased even faster (an average of 5.3% and 4.7% respectively
per year). DCs have a strong foothold on the market and were responsible for 62% of
household textiles and 59% of furnishing textiles imports. Import prices seemed to decrease
during the period under review, while the average consumer prices for household textiles
remained stable.
Opportunities for DC exporters

The role of DCs is expected to increase in the future. A large proportion of household and
furnishing textiles is already being imported from and outsourced to DCs, such as China, India,
Pakistan and Turkey. Moreover, there are signals that the increasing prices of Chinese
products will make EU customers look for outsourcing possibilities in other DCs.
Page 2 of 50
Introduction
This CBI market survey profiles the household and furnishing textiles market in the EU. The
emphasis of this survey lies in those products which are of importance to developing country
suppliers. The role of and opportunities for developing countries (DCs) are highlighted.
This market survey discusses the following product groups:

• Household textiles, which includes blankets (including travelling rugs but excluding electric
blankets), bedspreads, bed linen (sheets, coversheets, pillowcases and quilt covers), bath
linen (towels and wash gloves), table linen (tablecloths and napkins) and kitchen linen (tea
towels and glass cloths).
• Furnishing textiles, which includes window coverings (net or lace curtains, heavy curtains
and draperies) and other furnishing textiles (decorative pillowcases, throw rugs etc.).
Products not covered by this survey are floor-covering textiles, filling materials used in duvets,
quilts, pillows, sleeping bags, mattresses.
For detailed information on the selected product groups please consult appendix A. More
information about the EU can be found in appendix B.
CBI market surveys covering the market in specific EU countries, specific product(group)s or
documents on market access requirements can be downloaded from the CBI website. For
information on how to make optimal use of CBI market surveys and other CBI market
information, please consult ‘From survey to success - export guidelines’. All information can be
downloaded from http://www.cbi.eu/marketinfo Go to ‘Search CBI database’ and select your
market sector and the EU.
Page 3 of 50
1 Demand
In this Chapter, data from the Prodcom (production) database and CN (imports and exports)
database as supplied by Eurostat is used to indicate apparent demand. Apparent demand is
the sum of production and imports minus exports. Variations in inventory have not been taken
into account. Two problems occur: sometimes negative demand is calculated, this is the case
when exports are higher than production and imports combined. In that case figures are
treated as not available. Furthermore, figures sometimes show a discrepancy between years,
e.g., a large fall or extraordinary growth. These figures are therefore not accurate enough to
be able to make a good decision and they should be used in conjunction with further market
research.
1.1 Market size
The market for household and furnishing textiles can be divided into a consumer segment and
a commercial/contract segment. Both markets have their own market structure and market
characteristics and differ considerably in size. As there is almost no information available on
the commercial/contract segment in the individual countries, we will only discuss the consumer
segment in this chapter. In the other chapters and in the CBI country surveys for household
and furnishing textiles, no attention will be paid to the commercial/contract segment.
World demand
In the coming years demand is expected to grow by only 2.0% per annum on average in both
Europe and the Americas. Asia, however, is expected to show a larger increase in demand
across each segment between 2008 and 2010, reaching a growth of 4.6% per annum.
However, the current uncertainty and volatility of the short-term economic climate makes it
extremely difficult to make any forecasts.
1.1.1 Consumer market
Table 1.1 shows that apparent demand for household textiles in the EU annually decreased by
an average of 1.8% to € 4.9 billion in 2008. The top five – consisting of Germany, France,
Italy, the UK and Spain – accounted for more than 70% of total demand in the EU. In some
Western European countries demand decreased (Germany, Italy, the UK, Spain and Austria) or
slightly increased (France, Belgium, Sweden, Ireland and Denmark). However, in most Eastern
European countries demand grew, with Romania, Latvia, Lithuania and Slovakia even showing
growths of 56%, 25%, 22% and 20% respectively.
Table 1.1 Apparent demand of household textiles in the EU,

by country, 2004-2008, € million
2004 2005 2006 2007 2008 CAGR*
EU 5,281 5,233 5,241 5,215 4,901 -1.8%
Germany 1,112 1,010 995 989 974 -3.3%
France 816 864 811 841 820 0.1%
Italy 859 898 859 662 663 -6.3%
United Kingdom 833 701 745 742 636 -6.5%
Spain 409 443 456 437 387 -1.4%
Netherlands 187 207 202 211 211 3.0%
Belgium 172 183 188 271 173 0.2%
Austria 171 181 162 166 169 -0.3%
Sweden 108 108 117 114 110 0.5%
Greece 99 88 87 105 109 2.4%
Poland 62 72 76 94 87 8.9%
Finland 67 71 74 89 84 5.9%
Ireland 79 86 92 104 81 0.6%
Denmark 75 73 83 82 77 0.7%
Portugal 43 52 32 50 62 9.3%
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2004 2005 2006 2007 2008 CAGR*

Romania 9 15 23 32 52 56%
Czech Republic 27 33 45 35 35 6.7%
Hungary 31 31 31 31 33 1.1%
Slovakia 15 12 35 20 30 20%
Slovenia 18 17 20 22 22 5.8%
Lithuania 9 11 18 15 20 22%
Bulgaria 11 11 13 16 15 8.8%
Cyprus 12 12 12 14 15 5.4%
Latvia 5 7 10 8 12 25%
Estonia 38 30 40 49 11 -26%
Luxemburg 12 11 10 11 10 -3.7%
Malta 4 4 4 4 4 5.4%
Source: Eurostat (2009)
* Compound Annual Growth Rate
Table 1.2 shows that apparent demand for furnishing textiles in the EU annually increased by
an average of 4.0% to € 4.0 billion in 2008. The top five – consisting of the UK, Italy,
Germany, Spain and France - accounted for more than 70% of total demand in the EU. While
demand for furnishing textiles increased in most Western European countries, the UK and
Belgium saw declining demand. In particular, Eastern-European countries saw a huge growth
in demand for furnishing textiles, showing a growth percentage ranging from 20% in the Czech
Republic to even 60% in Romania.
Slovenia is a large producer of car components, including car seats. The Prevent Group
headquartered in Slovenia is one of the largest European producers of car seat covers. This
explains the enormous demand for and imports of the product group ‘other furnishing articles’,
which includes furnishing covers for car seats, in Slovenia.
Table 1.2 Apparent demand of furnishing textiles in the EU,

2004 2005 2006 2007 2008 CAGR*
EU27 3,437 3,863 4,048 4,419 4,021 4.0%
United Kingdom 1,219 1,214 1,325 1,321 1,102 -2.5%
Italy 313 380 362 430 480 11%
Germany 364 379 380 402 398 2.3%
Spain 334 386 382 403 363 2.1%
France 240 253 271 343 338 9.0%
Slovenia 205 470 409 451 271 7.3%
Netherlands 163 147 174 192 222 8.1%
Poland 38 51 78 118 150 41%
Belgium 203 179 186 198 139 -9.1%
Ireland 58 57 72 83 93 13%
Sweden 63 64 75 82 71 3.2%
Austria 55 56 71 53 58 1.5%
Denmark 21 30 49 65 55 28%
Greece 49 49 49 54 55 2.9%
Czech Republic 22 33 36 45 51 23%
Portugal 19 28 26 33 38 20%
Romania 6 12 14 28 37 60%
Finland 24 30 30 30 32 6.9%
Slovakia 4 4 8 16 17 45%
Lithuania 10 11 6 9 11 1.8%
Latvia 5 7 7 10 11 21%
Hungary 11 9 10 7 9 -3.1%
Bulgaria 2 3 5 9 6 26%
Cyprus 3 3 4 4 4 8.7%
Estonia 3 3 14 26 4 3.2%
Luxemburg 4 4 3 3 3 -2.4%
Malta 1 2 1 1 1 2.7%
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As can be seen from Table 1.3, demand within the individual product groups of household
textiles decreased while demand within the individual product groups of furnishing textiles
increased between 2004 and 2008. Demand for household textiles has been virtually stable for
many years. However, there was a sharp decrease between 2007 and 2008. Demand for
furnishing textiles has continuously increased in the last years, but 2008 was the first year to
show a decline. These changes in patterns can be explained as a result of the economic crisis.
Table 1.3 Indication of EU demand of household and furnishing

textiles, by product group, 2004-2008, € million
2004 2005 2006 2007 2008 CAGR
Total household textiles 5,281 5,233 5,241 5,215 4,901 -1.8%
Blankets and travelling rugs 554 549 606 526 443 -5.4%
Bed linen 2,734 2,682 2,630 2,736 2,577 -1.5%
Table linen 595 609 541 545 490 -4.7%
Bathroom and kitchen linen 1,398 1,392 1,464 1,408 1,391 -0.1%
Total furnishing textiles 3,437 3,863 4,048 4,419 4,021 4.0%
Curtains 2,072 2,075 2,321 2,575 2,392 3.7%
Bed spreads 191 211 205 212 205 1.8%
Other furnishing articles 1,173 1,577 1,522 1,633 1,424 5.0%
Per capita expenditure

Table 1.4 shows the per capita expenditure in the EU. As can be seen, the largest growth
figures were realised in CEE countries. Although over the period 2004-2008, large changes in
consumer expenditure did not occur, many countries (especially Western European countries)
showed a decline in consumer expenditure between 2007 and 2008. This is most likely a result
of the economic crisis, which started in 2008.
Table 1.4 Consumer expenditure of household and furnishing textiles in the EU,
in €, 2004-2008
2004 2005 2006 2007 2008 CAGR Annual
growth
'07-'08
EU27 17,44 18,20 18,59 19,28 17,85 0,6% -7,4%
Slovenia* 109,50 239,78 210,85 232,83 144,52 7,2% -38%
Ireland 30,65 32,18 36,86 41,85 38,95 6,2% -6,9%
Belgium 34,86 33,60 34,74 43,62 28,98 -4,5% -34%
United Kingdom 33,30 31,07 33,60 33,47 28,21 -4,1% -16%
Luxemburg 31,70 29,39 26,56 28,99 27,58 -3,4% -4,9%
Austria 27,05 28,38 27,88 26,20 27,19 0,1% 3,8%
Netherlands 21,20 21,50 22,85 24,45 26,24 5,5% 7,3%
Denmark 17.46 18.79 24.20 26.82 24.17 8.5% -0.1%
Finland 17,07 18,99 19,44 22,33 21,70 6,2% -2,8%
Sweden 18,42 18,60 20,77 21,21 19,58 1,5% -7,7%
Italy 19,52 21,29 20,34 18,19 19,04 -0,6% 4,6%
France 16,41 17,35 16,81 18,40 18,00 2,3% -2,2%
Germany 17,99 16,92 16,76 16,94 16,72 -1,8% -1,3%
Spain 16,22 18,08 18,28 18,33 16,37 0,2% -11%
Czech Republic 8,86 12,03 14,69 14,56 15,66 15,3% 7,6%
Greece 13,11 12,18 12,08 14,08 14,51 2,6% 3,1%
Malta 11,78 13,94 12,19 12,87 14,15 4,7% 10%
Latvia 4,32 5,94 7,58 7,99 9,88 22,9% 24%
Portugal 5,84 7,51 5,50 7,78 9,41 12,7% 21%
Lithuania 5,63 6,52 7,08 7,34 9,07 12,7% 24%
Slovakia 3,39 2,97 7,91 6,71 8,68 26,5% 29%
Cyprus 6,53 6,64 6,98 8,11 8,25 6,0% 1,7%
Poland 2,61 3,24 4,06 5,57 6,20 24,1% 11%
Hungary 4,19 3,97 4,08 3,82 4,20 0,1% 10%
Romania 0,67 1,24 1,71 2,82 4,16 57,6% 47%
Estonia 9,17 7,57 12,06 16,84 n/a n/a n/a
Page 6 of 50
2004 2005 2006 2007 2008 CAGR Annual

growth
'07-'08
Bulgaria 1,72 1,83 2,42 3,35 2,76 12,6% -18%
* As mentioned before, the large expenditure in Slovenia can be explained by the fact that Slovenia is a
large producer of car seats, which fall under the category furnishing articles.
The household and furnishing textiles market in the EU countries has experienced a non-stop,
but slow growth for many years. Demand patterns of households vary substantially across
Europe, due to differences in culture, traditions and tastes. Germany has been the largest
market for household textiles for many years, despite declining demand, followed by France.
Other important markets in the EU are the UK, Italy, Spain and Belgium. The UK has been the
largest market for furnishing textiles in previous years, followed by Italy, Spain and Germany.
The sizes of national markets for household and furnishing textiles reflect, among others:
• Demographic factors (size of population and number of households);
• Developments in the housing market (housing stock, new dwellings);
• Levels of income, in particular disposable income, derived from economic developments,
such as unemployment, consumer confidence, inflation etc.;
• Fashion developments in home furnishings, including household and furnishing textiles;
• Consumer preference for specific fibre types and brands;
• Importance of home textiles in household purchasing decisions.
The bulk of household and furnishing textiles purchased in the EU during any particular year is
for replacement purposes rather than constituting a primary purchase. New dwellings account
for a relatively small number of purchases. Most purchases of household and furnishing textiles
are made to replace old, worn or unfashionable textiles. These purchases can be deferred in
most cases, depending upon the economic circumstances at the time.
Fashion trends
Fashion trends in household and furnishing textiles are related to fashion developments in
general, and must therefore be in harmony with those of furniture, kitchen equipment, beds
etc. Fashion requires substantial investment in creativity, such as highly skilled designing, the
right colours and materials. Fashion in household textiles does not change quickly and trends
used to last for 3 to 4 years. However, furnishing lifecycles have reduced considerably to
approximately two years for soft furnishings and five years for carpets. Bed, bath, table and
kitchen linen are no longer considered to be just plain utility items. Fashion has entered into
the production and promotion of these textiles in a big way.
There are distinct seasonal preferences, and there is also a tendency to maintain or create a
design scheme affinity between the various fabrics and house decoration in general. Colour
trends are more or less uniform in EU countries. Generally speaking, design trends have
become more and more individual and no major single trend can be seen, as was the case in
previous years. Instead, several distinct trends are moving side by side forming a composite
fashion flow.
The trend in furniture has moved increasingly away from ‘traditional’ heavy furniture towards
modern lighter designs, frequently sold by large outlets in kit form for DIY assembly. These
outlets also have household textiles in their assortment of which colour and design are in
harmony with e.g. furniture, kitchen and beds.
Fashion trends or inspirations for the coming years can be derived from the website of the
leading EU trade fair Heimtextil (http://www.heimtextil.de) in Germany. Other trade fairs and
trade magazines publish fashion trends and can be sources of inspiration as well.
Colour, design and style
Page 7 of 50
It is particularly important for producers of household and furnishing textiles to understand colour,
design and style in their particular target market, as this is a major decision-making factor for most
buyers. These trends change rapidly and it is therefore important to keep knowledge up to date.
Source: http://www.capecraftanddesign.org.za
Brands
In the household textile sector, brand awareness among consumers is limited, as can be
derived from the high market shares for interior department stores (Ikea, Habitat), speciality
chains (Descamps) and variety chains (Marks & Spencer, Hema) operating with their own
private label and textile discounters, while super- and hypermarkets sell unknown or fancy
brand names. Operating at the top of the market are designers such as Ralph Lauren, Armani,
Kenzo, Christian Dior and Joop!, all of them well-known internationally. Other examples of
widespread licensed brands are for children (Pokemon, Teletubbies etc.) or for teenagers
(Chipie etc.). Examples of brand names (mainly operating in the higher segments) in the
household sector are Zucchi, Bassetti, Frette, Descamps, Marzotto, Santens, Clarysse,
Cinderella, Irisette, Van Dijck, Pretti, Zambaiti etc. Well-known brands of curtains are Ado,
Gardisette and Cordima, while manufacturer names of other furnishings are, among others,
Sodahl, Le Jacquard Francais and Graziano.
A brand’s personality generally appeals to a certain customer group. Product extensions are an
attempt to find other ways to appeal to the same customer. Benetton, Esprit, Mexx, Zara,
H&M, Schiesser and many other clothing chains have introduced household textiles in their
assortment (for example Zara Home).
Promotion and presentation

Although new furnishings chosen by households are increasingly a matter of individual choice
and taste, consumers are heavily influenced in the orientation phase by different sorts of
promotion, such as:
• Media: interior magazines, women’s magazines and glossy magazines all exert a
continuous passive influence on their readers; the increasing number of television
programmes featuring creative ideas for interiors, home improvement suggestions and
instructions is also a source of inspiration. For example, in the Netherlands consumers are
being led in buying home accessories by magazines (27%), acquaintances (27%), store
leaflets (35%), store assortment (29%) and the advice of the salesman (24%).
• The catalogues of big interior store groups, such as Ikea and Habitat and of mail-order
houses, such as Neckerman, Otto and La Redoute are important reference sources, just as
the house-to-house brochures and leaflets distributed by major chains, member shops of
buying groups and discount chains, all of which give consumers comparative information
especially with regard to competitive prices;
• Internet provides consumers located anywhere in the world with instant access to
information on a wide range of products, wherever those products are made and sold;
• Consumer fairs for home and garden. These types of fairs are organised in nearly all EU
countries with different themes, sizes, frequency and with a regional or national character.
The fairs serve as sources of inspiration for consumers.
Regional variations in climate

The climate of a country is an important factor influencing demand for bed linen, furnishing
and floor-covering textiles. The colder climate of Northern Europe in contrast to more southern
regions is a factor which strongly contributes to the high per capita demand of carpets and
curtains in Scandinavian countries, the Netherlands and other major market areas like
Germany, the UK and Northern France. In warmer climates, such as in Southern Europe, blinds
and shutters are often preferred to curtains. Demand for warm bedding is also lower in warmer
climates. Furthermore, the climate in a certain year also influences demand for household and
furnishing textiles. A mild autumn or winter has a negative influence on the demand for
household and furnishing textiles, while a cold or rainy spring or summer has a positive
influence.
Short term economic forecast
Page 8 of 50
Consumers are expected to respond to the difficult economic climate by postponing purchases
and making do with existing furnishing fabrics and linen. Decreasing consumer confidence has
only spurred this development. Consumers have become increasingly cautious and are thinking
twice about where and what they will spend their money on. At the same time, however,
people tend to remain at home during uncertain times and focus their attention on products
that transform their houses to places of comfort and safety.
Retailers are increasingly focusing on lower price and better value products. It is expected that
retailers will plan tighter inventories and will rely more and more on suppliers to bear the
inventory burdens.
The longer term prospects for the market are more optimistic with moderate growth forecast
for 2010-2012 when the economy is expected to regain momentum. The disposable incomes of
European consumers are expected to increase as is demand for household and furnishing
textiles. However, the current uncertainty and volatility of the short term economic climate
makes it extremely difficult to forecast in the medium term.
Consumer confidence
As mentioned above, declining consumer confidence has its effect on the demand for
household and furnishing textiles. Table 1.5 shows the Nielsen Global Consumer Confidence
Index for most European countries and the change in the 1st half of 2009 in comparison to the
2nd half of 2008. Please note that this index resembles the general trend in consumer
confidence and is not specifically aimed at consumers of household and furnishing textiles.
Unfortunately, not all European countries have been researched.
Table 1.5 Nielsen Global Consumer Confidence Index

Country Global Change
Consumer 1h’09 vs.
Confidence 2h ‘08
Index
Global average 77 -7
EU average 67 -8
Denmark 102 -10
The Netherlands 96 -3
Poland 82 -16
Austria 79 -6
Finland 78 -15
Belgium 78 -5
Sweden 75 -13
Czech Republic 74 -11
Germany 73 -2
Spain 72 -4
Greece 70 -3
Italy 70 -3
The UK 65 -9
Estonia 64 -9
Ireland 63 -14
France 60 -1
Hungary 52 -19
Latvia 48 -17
Portugal 48 -2
Source: Nielsen (2009)
The Nielsen research showed that in the 1st half of 2009, 22% of the consumers researched
were spending spare cash on home improvements and decorating, down from 25% in the 2nd
half of 2008. To save on household expenses, 70% of consumers had changed their spending
habits. 34% of respondents had delayed the replacement of major household items and 10%
were planning to continue to save on household items when economic conditions improve.
Page 9 of 50
1.1.2 The commercial or contract market in the EU
The commercial or contract market has a completely different market structure from the
consumer market. It can be divided into governmental organisations (defence, health and
hospitals etc.) and commercial organisations. Governmental institutes buy mainly via tenders,
while other organisations buy directly through manufacturers, wholesalers, or rent/lease via
textile service (laundry) companies. Textile service companies operate on the commercial
market with products such as work-wear, household textiles (towels, bed linen and table
linen), industrial wipers and mats. The total turnover of the textile rental market was
estimated at € 8-9 billion in 2006 (more recent figures are not available), of which the health
sector (35%), trade and industry (45%) and hotels and restaurants (20%) are the most
important customers. Information on the market size, apart from activities through textile
service companies, is not available. For this reason, we will not focus attention on the
commercial or contract market in the rest of this survey. Distribution of household textiles on
the institutional and industrial market is in the hands of internationally operating companies,
such as:
• Bardusch - http://www.bardusch.de
• Berendsen - http://www.berendsen.com
• Elis - http://www.elis.com
• HTS Industrial, part of Haniel - http://www.hts.com
• Johnson - http://www.johnsonplc.com and including http://www.stalbridge-linen.com
• Mewa - http://www.mewa.de
• Rentokil/Initial - http://www.rentokil-initial.com
Other suppliers in the textile service sector can be found on the website of the European
Textile Services Association
(http://www.etsa-europe.org/Etsa-Europe.org/members/pdf/ETSAMemberslist.pdf) and in the
general trade directories.
Table 1.6 gives an overview of total textile demand by the several categories of service
industries in the EU in 2002-2006. Unfortunately, more recent figures are not available. The
total expenditure of € 16 billion can be divided into expenditure on clothing (35%), textile floor
coverings (25%) and household and furnishing textiles (40%). This means that total
expenditure on household and furnishing textiles in the contract sector amounted to € 6.4
billion or 22% of consumer expenditure.
Table 1.6 Textile demand by service industries in the EU, 2002-2006,

in € million
2002 2004 2006
Total Market 15,000 15,700 16,100
Of which:
Wholesale and retail services (except goods for re-sale) 4,400 4,600 4,700
Business and personal services (banking, rental laundries etc 3,500 3,600 3,600
Public services (army, police, fire service and other public services) 1,900 2,000 2,000
Hospitality services (hotels, restaurants and catering suppliers) 1,800 1,900 2,000
Health services (hospitals, veterinary services etc.) 1,400 1,400 1,500
Transport and communication services (railways, airlines etc.) 1,200 1,300 1,400
Culture, education and leisure (theatres, sport clubs, libraries etc.) 800 900 900
Source: Fashion Research and Trends (2007)
Just as is the situation on the consumer market, Germany, the United Kingdom, France, Italy
and Spain are the major contract markets and covered an estimated 70% of the total EU
market. The situation on the market for office buildings, the health and the hotel sector led to
decreased investments and a related fall in textile demand in EU countries such as Germany,
Belgium and the Netherlands.
In the previous years, the contract sector in most of the new EU states had shown positive
Page 10 of 50
growth. The tourist industry had been growing apace, not only in urban but in rural and coastal
areas as well. New hotels were built, restaurants were opened and existing hotels and
guesthouses renovated and refurbished. Furthermore, construction on office buildings and
trade centres was also booming. However, the economic crisis has altered this positive picture
as Eastern European countries are being hit very hard by the economic crisis.
Carpets, on the business to business (B2B) market or contract sector, is the biggest product
group in textile demand by service industries, with destinations such as offices, hotels, public
buildings, hospitals and sport and holiday accommodations. It is followed by bed linen of which
rental laundries, hospitals and hotels are the main customers. Other major product groups are
curtains/upholstery and towelling.
There are important differences in the residential/consumer market for household and
furnishing textiles:
• Different products required
• Safety features like flame retardant
• Hygiene features such as washing standards
• Higher quality standards (abrasion, colour fastness, colour shades, and so on)
• Duration of range
• Other specific functional features
An important characteristic of the contract market is the role of the advisor, in most cases an
(interior-) architect or a contract furnishing specialist. However, they often source products
from a few suppliers with whom they are familiar when it comes to ordering a specific project.
Building up a new and sustainable relationship costs a considerable amount of time and is
almost impossible in some cases.
Technical product requirements are reflected in guidelines and certificates. Certified and
audited production is often necessary. The Association for Contract Textiles mentions voluntary
performance guidelines to label textiles (upholstery, drapery, wall covering, wrapped panels)
performing up to contract standards.
Increased attention has been paid to the contract sector in magazines and at trade fairs.
Nearly all trade fairs for home furnishings have been focusing attention, including trend
information, on participants in the contract sector, such as interior designers, planners and
decision makers for hotel and office equipment. However, there are also trade fairs specifically
for the contract market, such as:
• Contract Creations, Heimtextil - http://www.contact-contract.com – targeted at planners,
hotel operators, interior designers and architects – part of the trade fair Heimtextil –
Frankfurt – January - annually
• Equip Hotel – http://www.equiphotel.com – targeted at hotel buyers in Europe - Paris –
November – biannually
• Euroshop – http://www.euroshop.de – targeted at shop buyers – Düsseldorf - February –
biannually
• Expo Detergo – http://www.expodetergo.com – targeted at laundry buyers in Italy – Milan
– November – once every four years
• Orgatec – http://www.orgatec.de – targeted at office buyers – Cologne – October –
annually
• Texcare – http://www.texcare.com – targeted at laundry buyers in Germany – Frankfurt –
October – once every three years
An important trend in the commercial or contract market is the demand for performance
apparel technologies, such as moisture management technology, integrated into the
production of bed sheets and other home textile products. Functional fabrics which are
stretchable, thermally adaptive, stain protective, fragrance encapsulating and can resist dust,
mite and bacteria are increasingly in demand.
Page 11 of 50
1.2 Market segmentation
As mentioned above, the demand for household and furnishing textiles is principally
determined by demographic criteria, developments on the housing market and socio-economic
developments. Other aspects are the prices of household textile goods relative to other
products competing for consumer expenditure, consumer preferences for individual fibres and
the influence of brands and fashion on textiles, interior trends and others. Many of these
factors are basic criteria for market segmentation and will be discussed below.
Segmentation based on demographic criteria

The size and age structure of the population and, more significantly, the number and life stage
of households are basic determinants of the levels of expenditure on all household and
furnishing textiles.
During the last years, the EU population has grown from over 456 million (2004) to 491 million
(2008). In 2008, Germany had the largest population in the EU with 17% of the total, followed
by France, the United Kingdom and Italy with roughly 12% each. These four countries together
comprise 54% of the total population.
The number of households in the EU, which is now more than 200 million, is expected to grow
further in the coming years to 205 million in 2010. Low birth rates, a declining propensity to
get married and an increased number of divorces are affecting the size of households, which
have shown a decreasing tendency in recent years. Households of five or more people have
become rare while the number of one-person households is continually growing. There is an
above average number of one-person households in the EU in countries such as Germany,
Scandinavian countries and the Netherlands. More than two person households account for the
largest share in Italy and Spain.
Developments at the housing market

New housing starts and the house moving level affect the sales of household and furnishing
textiles, as homes are generally redecorated after a move. A significant difference in buying
behaviour for household and furnishing textiles is valid for home ownership versus home
rentals. The number of home owners in the EU is increasing (approximately 60% of families
own the house in which they live), but remains relatively low in Germany and the Netherlands
(approximately 50%).
For the coming years, total construction output of the EU will decline. Although the outlook was
positive, the economic crisis has altered this positive picture. Table 1.7 shows the expected
developments in the European housing market.
Table 1.7 Developments in the European housing market, 2006-2011, x1,000

2006 2007 2008 2009* 2010* 2011*
New houses completed 2.469 2.613 2.361 1.825 1.747 1.799
Annual change in complements - 5,8% -9,6% -23% -4,3% 3,0%
Source: Bundesverband Baustoffe (2009)
* forecast
Eastern Europe
In general, it seems that the construction market in Eastern European countries will be least
affected by the economic crisis. For 2009, Poland, Romania and the Czech Republic forecast
good construction activity growth of around 6.0%, 11% and 5.0% respectively. The forecasts
for Hungary and Bulgaria are less positive. However, Eastern European countries are likely to
be affected by the credit constraint, as these countries rely heavily on credit from Western
European banks.
Segmentation based on socio-economic criteria
Page 12 of 50
Disposable income and the readiness of consumers to spend on the interior of their homes are
significant influences on the household and furnishing textiles market. Spending on furniture
and carpets is closely linked to developments in the housing market. Spending on household
and furnishing textiles is also related to the purchase of houses, but is less cyclical than the
furniture and carpet markets. The purchasing power of young people has significantly
increased over the years.
Low interest rates in the EU in the last few years have acted as a boost to the housing market,
which has in turn encouraged spending on furnishing textiles. However, in the second half of
2008 the housing market collapsed and so did consumer confidence.
Segmentation by attitude toward fashion and life style

Important elements of fashion are: colour, design, exclusivity and life style. The present
consumer in Western Europe wants to be seen as an individual with his/her own lifestyle.
Household and furnishing textiles have an individualising function, especially in the fashion and
design segment (higher price ranges). Therefore, consumer demand has become more
specific.
Character, ideas and attitude to life will be emphasised by the ambiance that consumers give
to their home interiors. Just as is the case with other fashion items such as clothing, a home
interior serves as the means of expressing one’s personality. Personalisation is a vitally
important characteristic when it comes to new offerings, and that is the strongest stimulus for
new purchases. The home sector is decreasingly dependent on the need to replace.
Consumers set priorities in their pattern of expenditure according to their life style. The
increasingly individualistic nature of society will bring about a rise in demand for goods with an
expressive value. People are more willing to spend their money on such goods, while for
products with a lower priority, a low price is the main criterion.
In the world of fashion, there are some important concepts. One of them is fashion mentality.
It means the degree of rapid acceptance of new fashion trends by consumers. Using this
concept, one can divide fashion products into: avant-garde, innovative, current, well-known
and classical or conservative. Another important concept regarding fashion consciousness is
'conception of culture'. It is the attitude of a consumer to the patterns of culture. A consumer
can choose to conform to the dominating culture or he/she can choose just the opposite
(opposition to traditional culture). In general, judging what is beautiful or ugly is currently not
so much determined by macro-economic factors, such as age, income, profession and/or
region, but much more by factors such as fashion consciousness and culture.
Segmentation by price/quality ratio

Quality is an essential requirement for the higher segments of the household and furnishing
textiles market. There are several aspects: quality must be reliable, may not change with time,
is closely connected to service, and products have their own brand and/or design. The trend
towards looking for higher quality has increased in recent years, but an even more important
trend is the price-conscious consumer who is looking for fashionable trends as well as good
quality materials. Value for money is an important purchasing criterion for most consumers.
This has become even more important due to the economic crisis. The major purchase criteria
and the consequences for the store choices are given in the table below. The size of the
segments varies per country.
Table 1.8 Segmentation by price/quality ratio

Product Store choices Brand names Fashion Price Criteria
criteria criteria
High price Exclusive Excusive retail Donna Karan, Fashionable Price less
luxury luxury store Nicole Farhi, colours important
segment High quality Designer stores Georgio Changes every
materials Special Armani, season
market share (Designer-) departments Joop! Special designs
Page 13 of 50
Product Store choices Brand names Fashion Price Criteria

criteria criteria
5-10% brand-name in department and exclusive
Goods with stores artworks
image effect Special mail-
order
companies
Upper middle Brand-name Independent Zucchi, Many colours Acceptance of
price goods shops Bassetti, available price for
segment High quality Shop in shops Van Dijck, Exclusive fashionable
materials Manufacturer’s Vossen, designs, but collections
market share Fashionable direct stores Freyte, Esprit, with fewer and consumer
15-20% collections Department Mexx colours than brands
Broad range in Stores the luxury
design segment
Trend setters
Middle to Good quality Independent Cinderella Standard Price
high Trend-following shops Irisette colours and thresholds
price or classical Department Habitat each season must be
segment assortment stores some observed
Brand-name Mail-order fashionable
market share goods Interior colours
20-25% department Common
stores designs
Low to Basic quality Interior Private labels Standard Price
middle Limited range department like Ikea, collections with important
price of colours and stores Marks & fewer
segment designs Variety storesSpencer, variations
Fashionable Value retailers
Hema per season
market share Limited number
35-40% of designs
Low or very Basic or low Variety stores No brands Standard Special (low)
low price quality Discounters products prices, price
segment Special sales/ Super-and without is decisive
offers hypermarkets particular
market share Inexpensive Street market fashion
15-20% products requirements
Source: Fashion Research and Trends (2007) and Facts Figures Future (2009)
Materials vary across the different segments of the market. Certain materials feature more
predominantly in the high end of the market (e.g. silk) than in the mid to low end. However,
cotton is the most popular material overall.
1.3 Trends
Some trends that influence the demand for household and furnishing textiles in the EU are:
• Continuing interest in more fashionable textiles. There is a continuing interest in
more fashionable household and furnishing textiles, especially by younger age groups and
encouraged by foreign multiples in several EU countries. This has partly been encouraged
by (glossy) home magazines and interior design programmes on television. Consumers in
several new EU member states have become more aspiring and ‘western’ in their home
interiors as prosperity increases. The latest developments and forecasts in fashion can be
derived from the websites of trade fairs, such as Heimtextil
(http://heimtextil.messefrankfurt.com) or in trade magazines, such as Textile Wirtschaft
(http://www.twnetwork.de) or Journal du Textiles (http://www.journaldutextile.com).
• Growing demand for natural fibres. There is a high demand for natural fibres, mainly
cotton and blends with cotton at the expense of man-made fibres in the household linen
sector, while synthetics play a less dominating role in the furnishing sector, in particular in
the case of curtains. However, in the UK and some other countries with British influences
other preferences are valid.
Page 14 of 50
• Increasing price consciousness. Consumers in many EU countries have become more

price-conscious in recent years. Textiles sold through discounters, variety stores and
hypermarkets have won ground and it is expected that this growth will continue. Although
consumers have become more price-sensitive, they are looking for higher quality at the
same time.
• More critical about design. An increasing group of consumers is more critical of design
and is looking for a better (greater) choice of collections.
• Green consumers on the increase. There has been interest for some time in products
that reflect care and concern for the environment. This is reflected in the materials used in
manufacture and in the social conditions under which a product is made. This is particularly
the case in the UK, Scandinavia, Germany and the Netherlands. This is no longer an issue
of short term interest. It constitutes a fundamental change in how consumers are thinking
about their relationship with the world around them. This issue is not incompatible with
fashion. Fashion designers are increasingly using eco-friendly materials such as natural
fibres and recycled materials.
• Developments in technical household and furnishing textiles. There have been a
number of significant developments in household and furnishing textiles over recent years,
including anti-microbial fabrics (increased demand by sufferers of asthma and allergies),
flame retardant materials, environmental-friendly textiles, stain protective treatments and
other functional materials, such as Lycra stretch fabrics.
Sustainability
Sustainable consumption is one of the main consumer trends in Europe. Most European citizens take into
consideration the environmental impact of the products that they buy, as well as social matters such as
working conditions and child labour. Key words are ecology, reuse of fibres, long-lasting textiles and
sustainable manufacturing. Therefore, companies in the sector need to use ‘green technologies’ and
monitor every part of the value chain in order to avoid corporate scandals that could harm their brand;
for example, children working with dangerous chemicals to produce textiles. Corporate Social
Responsibility (CSR) and ethical sourcing are thus becoming vital elements of business strategies in the
textiles sector. A range of initiatives aim to ensure that companies avoid such scandals. The Business
Social Compliance Initiative (BSCI) is one example in this regard: it is a business-driven platform with
the aim of improving compliance with socially responsible acting in all supplier countries and for all
consumer goods.
USAID has developed a toolkit and guide on sustainable production for home furnishing companies. This
guide and toolkit can be accessed at http://sustainable-production.ecoexotic.net. Please refer to the CBI
market information database on market access requirements for more information on BSCI and other
initiatives – go to http://www.cbi.eu/marketinfo.
Ecotextile - http://www.ecotextile.com – is a magazine on sustainable textile and clothing. The website

provides useful information on sustainable textiles.
Source: http://www.eurofound.europa.eu (2009)
1.4 Opportunities and threats
Trends and market developments offer opportunities and threats to exporters. A given trend
can be a threat to some and an opportunity to others at the same time. The following trends
should, therefore, always be analysed in relation to your specific circumstances. Refer to
Chapter 7 for more information on opportunities and threats.
+ Due to economic developments, consumers are continuing to seek low-priced household
and furnishing textiles. On the other hand, the size of the market and the polarisation in
incomes offer huge markets for quality and comfort, designer labels etc.
± From 2004 to 2008, EU demand for household textiles slightly decreased, whereas
demand for furnishing textiles increased.
± European consumers are expected to respond to the difficult economic climate by
postponing purchases and making do with existing household and furnishing textiles. At
the same time, however, people desire to remain at home during uncertain times and
focus their attention on products that transform their houses to places of comfort and
Page 15 of 50
safety.
- Due to the economic crisis, consumer confidence is decreasing in Europe. This will lead
to more savings instead of spending money on household and furnishing textiles.
Key success factors

If the company has an effective R&D department, it can come up with new designs, colour schemes or
innovative packaging. This will increase sales and also help in building a high quality image of the
product. The following factors can help DC exporters of home textiles to succeed on the European
market:
• Assurance of high consistent quality: ensure good quality at all costs. A quality certification can be
very helpful in marketing the quality of the products.
• On-time product delivery;
• Competitive rates;
• Cost efficiency through better managerial techniques;
• Be active and quickly respond to customer demands: being flexible with buyers regarding their
requests and requirements can help to develop mutual understanding with them.
• Better services to customers, e.g. claim settlement.
• Participation at trade fairs: this is very helpful in getting to know customers’ requirements, getting a
feeling for the EU market and obtaining orders.
Source: http://www.smeda.org (2008)
1.5 Useful sources
• Bundesverband Baustoffe – http://www.bvbaustoffe.de

• Euratex - http://www.euratex.org including links to national trade associations
• European Textile Services Association - http://www.etsa-europe.org
• Eurostat – http://epp.eurostat.ec.europa.eu
• Heimtextil - http://www.heimtextil.de
• Several trade magazines, such as: Textil Wirtschaft - http://www.twnetwork.de; Textiles
Outlook International - http://www.textilesintelligence.com and Journal du Textile -
http://www.journaldutextile.com
• Trendease International - http://www.trendease.com – online design and fashion
publication
Page 16 of 50
2 Production
2.1 Size of production
The value of EU production of household textiles annually decreased by 8.2% in the period
2004-2008, to an output of € 2.6 billion in 2008 (see Table 2.1). Production of household
textiles in the EU is dominated by Italy, accounting for more than 20% of total production
output of household textiles in the EU. The top four production countries – consisting of Italy,
Portugal, Germany and France – accounted for more than 60% of total EU production. All
European countries saw a decrease in production, with the exception of Lithuania and Finland
where production remained virtually stable. Declining production is mainly due to European
companies outsourcing to low-cost countries.
Table 2.1 Production of household textiles in the EU,

2004 2005 2006 2007 2008 CAGR
EU27 3,663 3,470 3,246 3,005 2,605 -8.2%
Italy 857 853 802 565 574 -9.5%
Portugal 605 548 511 486 452 -7.0%
Germany 330 287 293 303 291 -3.1%
France 389 409 330 302 270 -8.7%
Spain 275 274 255 244 206 -7.0%
Belgium 196 204 208 282 175 -2.7%
Poland 175 176 154 148 111 -11%
Romania 70 71 77 69 74 1.4%
Austria 69 72 79 75 58 -4.4%
Netherlands 39 48 58 71 57 9.8%
Czech Republic 92 79 85 60 49 -15%
Greece 69 61 47 45 39 -14%
United Kingdom 188 118 55 55 35 -34%
Lithuania 30 34 40 35 30 stable
Bulgaria 32 29 29 34 26 -4.8%
Slovakia 29 24 22 27 24 -4.8%
Hungary 25 27 28 22 23 -2.0%
Estonia 62 49 58 64 23 -22%
Slovenia 18 14 16 16 17 -1.0%
Denmark 36 22 27 29 17 -17%
Ireland 17 16 14 21 16 -1.9%
Finland 15 14 15 16 15 stable
Latvia 20 19 19 15 13 -10%
Sweden 23 24 24 23 12 -16%
Cyprus - - - - - -
Luxemburg 1 - - - - -
Malta - - - - - -
The value of EU production of furnishing textiles annually increased by 3.9% in the period
2004-2008, to an output of € 3.2 billion in 2008 (see Table 2.2). The production of furnishing
textiles in the EU is dominated by the UK, accounting for almost 30% of total production
output. The top four production countries – consisting of the UK, Italy, Slovenia and Spain –
accounted for almost 60% of total EU production.
Table 2.2 Production of furnishing textiles in the EU,

2004 2005 2006 2007 2008 CAGR
EU27 2,718 3,112 3,260 3,493 3,171 3.9%
United Kingdom 939 963 1,055 1,046 857 -2.3%
Italy 295 332 311 368 430 9.9%
Slovenia 206 470 411 484 298 9.7%
Page 17 of 50
2004 2005 2006 2007 2008 CAGR

Spain 279 298 316 323 293 1.3%
Germany 182 185 214 245 259 9.2%
Poland 106 129 169 205 238 22%
Netherlands 99 100 117 126 156 12%
France 67 80 88 103 129 18%
Belgium 174 155 146 160 95 -14%
Czech Republic 55 60 62 73 73 7.1%
Ireland 28 25 34 44 67 24%
Portugal 61 60 47 56 54 -3.0%
Romania 60 86 88 51 53 -2.9%
Denmark 28 29 41 46 35 5.0%
Austria 34 36 51 28 28 -4.7%
Lithuania 30 34 23 26 27 -2.7%
Sweden 25 23 29 28 24 -1.0%
Slovakia 4 2 4 13 12 34%
Finland 10 12 14 13 12 3.4%
Latvia 4 5 6 8 10 24%
Hungary 5 6 4 5 9 13%
Estonia 13 14 21 30 7 -14%
Greece 5 4 3 4 3 -8.1%
Bulgaria 8 4 5 8 3 -21%
Cyprus - - - - - -
Luxembourg - - - - - -
Malta - - - - - -
As can be seen from Table 2.3, most product groups showed a decrease in production between
2004-2008 with only curtains and other furnishing articles showing an increase.
Table 2.3 Indication of EU production of household and furnishing

textiles, by product group, 2004-2008, € million
2004 2005 2006 2007 2008 CAGR*
Total household textiles 3,663 3,470 3,246 3,005 2,605 -8.2%
Blankets and travelling rugs 454 416 422 357 258 -13%
Bed linen 1,949 1,853 1,697 1,636 1,441 -7.3%
Table linen 423 420 370 361 302 -8.1%
Bathroom and kitchen linen 838 782 758 651 605 -7.8%
Total furnishing textiles 2,718 3,112 3,260 3,493 3,171 3.9%
Curtains 1,673 1,682 1,875 2,007 1,906 3.3%
Bed spreads 139 130 124 131 138 -0.2%
Other furnishing articles 905 1,301 1,261 1,355 1,127 5.6%
Due to various pressures for change as a result of consumer developments, technological

advances, changes in production costs, growth in retailers’ purchasing power and
environmental issues, the European household and furnishing textiles industry is characterised
as being in a state of continuous restructuring and modernisation.
The European home textile sector is regarded as being technologically well advanced.
Manufacturers in the EU focus on high value products with a high design content; they export
on a global scale by supplying to the higher segments of the market and they source basic
products in lower-cost countries. Their strategies have led to an increase in efficiency and
broadening of assortment. Although the level of imports of textiles has always been high, more
and more retailers are sourcing products overseas. Manufacturers are increasingly looking to
move facilities to countries where production costs are lower.
Please refer to Table 2.4 for a SWOT analysis of the European textiles sector. As can be seen,
the weaknesses and threats of the European textiles sector are the strengths and opportunities
for DC producers of household and furnishing textiles and vice versa. For example, the high
labour costs are a weakness of the European textiles sector. As labour costs in DCs are much
Page 18 of 50
lower than in the EU, DC suppliers can take advantage of this. At the same time, the demand
for higher value added goods are a threat for DC suppliers, as this is much more difficult to
realise.
Table 2.4 SWOT analysis European textiles sector

Strengths Opportunities
Strong European brands, such as ‘Made in Italy’. Converging technologies.
High level of creativity in the design phase. Demand for higher value added goods, such as
innovative technical textiles.
Weaknesses Threats
High labour costs. Skills needs and global competition for skilled and
creative professionals – risk of ‘brain drain’.
Extensive regulations impose administrative
burden.
Increasing competition from countries outside the
EU.
Trade barriers in important export markets.
Shortage of qualified human resources with higher
education, such as professionals in textiles
engineering.
Illegal copying of design and brands.
Outsourcing and foreign policy

Global developments create new challenges as well as strategic options for companies in the
European textiles sector, not least by making it possible for companies to move their activities
to locations that offer them the best possible combination of benefits and costs. The industrial
restructuring process has led to significant changes in the location of production activities in
the home textiles sector. In the last two decades, many Western European home textiles
companies have moved manufacturing activities to Low Cost Countries (LCCs) in Eastern
Europe or to non-European countries (e.g. India and China). European home textiles
companies are responding to pressures for change by pursuing the following two business
strategies:
• Relocation of production and activities to LCCs.
• Development of added-value activities in the higher end of the value chain.
The decision to locate production outside the country of origin will often be based on an
assessment of comparative factors, such as labour costs and productivity, capital investment
and other factors such as transport, insurance and other related costs. Access to markets and
inputs, such as workers (human capital and skills), suppliers and business and market
knowledge and their availability also influence location decisions. Companies are also likely to
take external factors into account, such as current and expected political stability, regulations,
exchange rates, taxation, quotas and tariffs and freedom from restrictive legislation.
Companies prefer to locate their business activities where the market is established and people
with adequate skills can be found.
The supply chain is increasingly organised as an integrated production network, within which
production is divided into specialised activities. Activity is located where it can contribute most
to the value of the end product. The lower the level of value added and the less tacit
knowledge the activity requires, the more likely it is that delocalisation will take place.
The globalisation of the supply chain also entails certain risks for European companies, as they
are required to monitor working conditions and manufacturing practices in all parts of the
value chain, including those of subcontracting companies. If a company or its subcontractors
do not comply with regulations or ethical standards, the image of the company can be
damaged.
The relocation of production activities has led to intensive trade relations between the ‘old’ 15
EU member states and Eastern European countries. As a result, Eastern European countries as
well as those of North Africa and Turkey have been among the top suppliers of home textiles
Page 19 of 50
produced for Western Europe. With the liberalisation of the textiles trade in 2005, the textiles
industry, in particular that of Eastern European countries, faces increased competitive pressure
from lower-cost countries and regions.
The foreign policy of home textiles companies takes many forms:

• Forms of ownership: most of the largest companies have entered into joint ventures in
LCCs or have established their own factories abroad.
• Forms of subcontracting: Cut, Make and Trim (CMT), Free on Board (FOB) or Outward
Processing Trade (OPT). In the case of CMT, manual production has been relocated,
although material (fabric + trims) purchase has been held on to for efficiency and quality
reasons. Quality control has been relocated too, and is typically managed by travelling
controllers. In the case of FOB, supplying manufacturers abroad receive complete
specifications for the design, quality of the fabric, accessories and other materials.
Subsequently, manufacturing suppliers manage the purchase of the materials themselves.
This form is most common for importers/wholesalers and importing retail organisations,
but only for a minority of the EU manufacturing companies. In the case of OPT, the most
labour-intensive piecework, such as sewing and packing, has been relocated to low-cost
countries. For the sake of quality control, the handling of fabrics, including dyeing and
printing, has been retained in the EU home country. The same goes for quality control and
distribution to the customer. Basically, EU fabrics or cuttings are exported to low-wage
countries, which make them up into finished products for re-import into the EU. OPT import
duties are only calculated on the value added by outward processing. OPT for household
and furnishing textiles by the EU has steadily decreased in the last few years.
• Sourcing abroad: In some cases entire products are sourced from foreign companies. This
mainly concerns products which extend a company’s existing product line.
2.2 Trends
Some trends that influence the production for household and furnishing textiles in the EU are:
• Economic crisis. Textile manufacturers in Europe are facing a considerable drop in
demand for their products in Europe, while the cost of production and employment is
increasing and competition from Low Cost Countries is stronger than ever.
• Relocation of textile production. The restructuring policy of many manufacturing
companies in the EU during the last two decades has led to a relocation of the textiles
production, mainly based on labour cost comparisons.
• Increasing price competition. Price competition among suppliers has intensified,
resulting in a very slow growth in prices. This is causing concern among EU producers, who
are finding it increasingly difficult to match low import prices.
• Increasing internationalisation. EU textile manufacturing and retail companies are
expanding their activities intensively and their products are becoming increasingly available
in many European countries.
• High degree of integration in the value chain. Several producers have opened their
own chain(s) and many suppliers have started close and long-term co-operation with
distribution channels, thereby increasing the entry barriers for new suppliers.
• Increasing concentration. The number of suppliers has decreased and many suppliers
have merged or have taken over other suppliers.
• Specialisation. Several manufacturers of household and furnishing textiles have
specialised themselves in specific functions (such as design) or in specific markets (such as
the contract market), while other manufacturers have shifted from manufacturing for
private labels to introducing their own brands.
should, therefore, always be analysed in relation to your specific circumstances.
Page 20 of 50
+ The further sourcing of products in LCCs has led to a decrease in production (with the
exception of curtains and other furnishing articles) in the major EU countries, including
products with a higher design content. This offers interesting opportunities for DC
exporters of household and furnishing textiles.
+ Advantages of the new EU member states in terms of lower wages and shorter routes
will largely disappear.
± Manufacturers in the major EU countries have built up a comparative advantage by
specialising in design and other functions, such as preparation of samples, logistics and
marketing, while simple production operations are increasingly taking place in other
countries. As time goes by, even the functions mentioned first will leave these EU
countries.
- In order to meet the increasing requirements of the EU, exporters in DCs will be forced
to meet the increased demands for higher quality and requirements concerning
environment and sociability.
2.4 Useful sources
• Euratex - http://www.euratex.org including links to national trade associations

• Eurostat - http://epp.eurostat.ec.europa.eu/newxtweb
• Trade magazines, like:
o Textil Wirtschaft - http://www.twnetwork.de
o Textiles Outlook International - http://www.textilesintelligence.com and
o Journal du Textile - http://www.journaldutextile.com/intro_en.htm
For examples of interesting players in individual EU countries, please refer to the CBI market
surveys covering the household and furnishing market in individual EU countries.
European Technology Platform for the future of textiles and clothing - http://textile-platform.eu
The European Technology Platform for the future of textiles and clothing was launched in 2004. The
technology platform is a forum which brings together the European textiles and clothing industry, its
research and education community, representatives of related industry sectors and scientific disciplines,
as well as public authorities. The aim of the platform is to develop and implement long-term industry
visions and a ‘Strategic research agenda’ to improve innovation, competitiveness and the growth
potential for this key industry sector in Europe. Source: http://www.eurofound.europa.eu (2009)
Page 21 of 50
3 Trade channels for market entry

3.1 Trade channels
Figure 3.1 displays the most common distribution channels in the industry, which are:
1) Retailers
2) Importers
3) Wholesalers
4) Domestic manufacturers
5) Sales agents
6) Purchasing agents
The trade channel for DC exporters in the EU is generally the same as for EU exporters. As the
thickness of the arrows emphasises, retailers, wholesalers and importers are by far the most
important trade channels for the DC exporter. Please note that the three trade channels are
not strictly isolated. For instance, manufacturers, agents and retailers may also function as
importers, while wholesalers may also be manufacturers (vertical integration).
Theoretically, importing is a function which can be done by manufacturers, wholesalers or

retailers as given in Figure 3.1. However, in some countries and/or branches a distinction is
made between importing wholesalers and importers. In that case, the importer purchases at
their own risk, handles Customs Clearance and sells mainly to retail organisations, such as
multiples, department stores and buying organisations and other wholesalers, while
wholesalers purchase at their own risk from local or EU manufacturers and from importers.
Figure 3.1 Distribution pattern for household and furnishing textile in the EU
DC exporter
Purchasing agents
Importers Domestic (importing)

manufacturers
Wholesaler Sales agents
Retailers
Department and variety stores; multiple furniture and/or furnishing stores; interior department
stores; buying/selling organisations; independent specialists shops; value retailers; discounters;
hyper- and supermarkets; home shopping; DIY stores, street market, etc.
Consumers
Source: Facts Figures Future (2009)
Ad 1) Retailers
Retailers constitute the final stage before products reach the consumer. A criterion for dividing
the market is the composition of the total assortment: wholly or partly specialised in selling
household or furnishing textiles. About two thirds of all stores within the total group of
Page 22 of 50
furnishing shops sell carpets, curtains and other soft furnishings. Bed and bedding specialists
sell beds but also mattresses, pillows and bed linen. Home furniture and furnishings, including
all kinds of accessories, form the assortment in interior department stores. Non-specialists
means stores with an assortment from various branches, such as department stores, discount
stores, DIY stores, mail-order houses, grocery hyper- and supermarkets and street markets.
Another classification between retailers can be made by the function of importing:

• Importing retailers i.e. the bigger retail organisations (interior and general department
stores, variety stores, multiples, buying organisations, home shopping companies, textile
discounters etc.) import through their own buying agents. These buying agents have
mainly or exclusively private labels in their assortment, divide their budgets between the
purchase of finished products via direct imports (sourcing ready-made products) from low-
wage countries and sourcing from their own design. Many major retail organisations use
buying agents or set up their own buying organisations in LCCs. This means that retailers
are able to bypass domestic wholesalers and/or manufacturers and can reduce costs. There
is a clear difference between the distinct segments: super- and hypermarket chains, textile
and other discounters operate mainly at the lower end of the market and the main buying
criteria is the lowest purchasing price. Generally speaking, other retail organisations are
interested in more criteria than price, such as quick response, after sales service and
technological capacity.
• Unorganised independent retailers (mainly not more than five outlets) are confronted with
decreasing, but still important market shares in most of the EU countries. They buy directly
from local or near-by manufacturers or agents representing these manufacturers, as well
as from wholesalers/importers. These retailers do not import by themselves and are
therefore not interesting for DC exporters.
Ad 2) Importers
Importers purchase products from manufacturers abroad and generally add a 30-40% mark-
up to cover commissions, credit risk, after-sales service and the cost of carrying a local
inventory to meet small orders. In contrast to the agent, these importers hold their own stocks
at their own risk.
Ad 3) Wholesalers
Wholesalers cater to specialist shops as well as to department stores and home shopping
companies. In contrast to the agent, wholesalers hold their stocks at their own risk. This non-
importing distributor purchases from domestic manufacturers and importers. The mark-up of
wholesalers is approximately 20-30%. Large retail companies are increasingly purchasing
abroad, thereby bypassing this intermediary.
Ad 4) Importing manufacturers
Retailers are increasingly taking part in earlier stages of the supply chain (vertical integration)
and have their own designers to give their collections a more unique look. Manufacturers are
trying to compete by placing a greater emphasis on their own product development. They can
then offer exclusivity to retailers, which gives them a competitive advantage. Although it
occurs to a lesser degree than, for instance, in the clothing sector, manufacturers penetrate
retail business by operating through their own shops, franchising or concessions. This gives
them control over their output and margins, such as Christy (UK) and Descamps (France). The
many forms of foreign policies from EU manufacturers are discussed in chapter 2 of this
survey.
Ad 5) Sales agents
Sales agents are independent intermediaries between the (foreign) manufacturer and the
retailer or retail organisation, receiving a commission from the former. Most sales agents work
on a 8-15% commission based on FOB prices. The sales agent does not take title to the
merchandise, but is limited to presenting samples to potential clients, obtaining orders, and
forwarding these to the exporter. The role of the (sales) agent in household and furnishing
textiles is very limited. Sales agents are only of use if the exporter has a totally
Page 23 of 50
merchandisable product i.e. a suitable design, made by the exporter, of relevant quality and
price. While his mark-up is much less than the importer’s, the agent will require a much higher
input from the exporter. It is, therefore, a distinct development, but can only be achieved
through a high degree of resourcefulness on the part of manufacturers.
Ad 6) Purchasing agents
Purchasing agents are widely used by retailers and wholesalers in EU countries due to their
wide network of contacts and knowledge of foreign markets. They do not carry their own
stock, but purchase solely on the request of their customers. Most purchasing agents work on
a 4-5.0% commission based on FOB prices.
The hospitality sector is becoming a consumer-direct channel

The hospitality sector is increasingly becoming a consumer-direct channel for home textiles. The major
hotel chains are expanding their merchandise offerings to hotel guests. These companies are featuring
their home textile and furnishing lines on their websites, often with expanded product offerings in every
category. Sheets, duvet covers, comforters, bed pillows, mattress pads and throws are the biggest
category. Bath, spa items and decorative accessories are featured along with towel selections, and a
broader range of bathrobes. Shower curtains and rods are occasionally featured.
Source: Industry experts and Facts Figures Future (2009)
Differences between EU countries

The use of trade channels generally mentioned applies to all major EU countries. However,
some differences should be mentioned.
• Southern and Eastern EU member states have high market shares for independent
retailers. These retailers mainly buy from manufacturers and wholesalers/importers. In
these countries, street markets or bazaars still play an important role.
• In Germany, the Netherlands and Scandinavian countries, many independent retailers are
members of buying co-operations.
• The UK has a relatively low market share of independent retailers.
• In Southern and Eastern EU countries franchise formulas are more popular.
• The presence of foreign chains with a specific assortment, fashion/design, an attractive
price/value relation, such as the Swedish interior department store Ikea, has influenced the
market structure in several countries.
Trends
Trends that influence trade practices in the EU are:
• Diminishing market shares of independent retailers to the advantage of specialised chains
(including interior department stores) and non-specialists such as super- and
hypermarkets.
• Intensified integration and growing internationalisation or cross-border activities, of which
the main examples are Ikea, Ka International and Zara Home.
• As is the case on the manufacturer’s level, increasing concentration is applicable to
wholesale and retail organisations.
• In general, the powerful groups of chains have reduced their number of supplying
manufacturers. This has given them a stronger position in negotiations on e.g. price and
delivery conditions and in some cases organisations have taken over the functions of
suppliers in order to improve competitiveness (vertical integration). Increasing integration
in the value chain decreases the number of suppliers on the market and forces them into
close and long-term cooperation with the distribution channels.
• Margins are under continuous pressure in the major EU countries. Consumer expectations
with regard to lower prices, as well as tough competition, have resulted in retailer needs
for lower inventories, less out-of-stock situations and lower markdowns.
• Clothing multiples have expanded their assortment by introducing household textiles, such
as Esprit, H&M, Next, Zara, Mexx and Benetton.
• All opportunities enabling reduced costs are eagerly pursued. Purchasers of textiles are
sourcing for lower purchase prices abroad, thereby minimising costs in the home country.
The necessity to reduce costs has provided the main driving force behind the development
of sourcing markets from importing countries. As a result, production has migrated to a
Page 24 of 50
growing number of DCs, because buyers have sought and are still seeking ever-lower cost
locations. In practice, it is not a question of looking for the lowest wages, but looking for
manufacturers with the lowest overall manufacturing costs.
• Minimising purchasing costs implies that many buyers are trying to limit the number of
supplying countries and the number of individual manufacturers with whom they deal.
E-commerce
Today’s consumers shop more and more online. This trend provides an opportunity for DC companies to
introduce new business models which allow them to sell their products directly to customers, thereby
limiting the influence of retailers on business decisions. Furthermore, companies also use the business-
to-consumer (B2C) e-commerce interaction as a tool to gather information and data on consumer trends
and market developments. B2C e-commerce also helps companies to develop a closer relationship with
customers in order to gain their loyalty. In relation to the textiles sector, consumer preferences to ‘feel
the fabric’ before buying them could be considered a barrier to the use of B2C tools. Nonetheless, the
technological advances in terms of advanced computer-aided design (CAD) and personalised avatars
could provide a solution to this challenge. In addition, ‘business to business’ (B2B) solutions facilitate the
use of digital transactions which are cheaper and less time consuming than traditional ways of buying
and selling products to other businesses.
3.2 Price structure
The margins at the various levels of distribution are influenced by six factors and are different
for each product/market combination. These factors are:
• Degree of risk (new fashion/design or ‘me-too’ product, new or known source etc.);
• Volume of business;
• Functions or marketing services rendered;
• General economic conditions (booming or depressed business);
• Existence/availability of competitive products and,
• Exclusiveness of the product.
It is impossible to draw up a schedule of actual margins for each and every product/market
combination. Even within the same type of combination, different importers employ different
margins, due to variation in economic conditions. The various retailing stores differ in the sales
formula they apply, i.e. their assortment and the consumer group targeted, as well as in the
way they differentiate themselves from competitors. As an aid to understanding the market,
one can distinguish between ‘service retailing’, where the retailer offers the consumer
substantial added value (such as quality, service, fashionability and choice), and ‘low-margin
retailing’, where the price-conscious consumer is offered low prices, at the expense of quality,
service and so forth. We refer to the overview in Section 1.2 for the various segments in the
household and furnishing textiles market. Differences between major countries are influenced
by several factors, such as a country’s retail structure.
A detailed overview of the trade structure and market shares of retailers with household and
furnishing textiles in their assortment are discussed in the CBI sector surveys covering the
market in individual EU countries. The effect of the market position, often indicated as low,
medium and high, results in different margins on consumer end price, based on one CIF (cost,
insurance and freight) price for three different market segments. A multiplier of between 2.2
and 3.4 on the manufacturer’s price should be used to calculate an appropriate final consumer
price. Elimination of the wholesaler, for instance in the case of multiples, department and
variety stores and home-shopping companies, does not always lead to a lower multiplier.
Table 3.1 Calculation schedule: margins

Low Medium High
CIF Rotterdam/Amsterdam 100 100 100
Import duties * * *
Charges on CIF basis:
Page 25 of 50
Low Medium High

- handling charges, transport/insurance, banking services 8 8 8
Wholesaler's margin (25/33/50%) 27 36 54
Retailer's margin (40/60/75%) 54 86 122
- net selling price 189 230 284
Value Added Tax: 19% of net selling price **) 36 44 54
- gross selling or consumer price 225 274 338
RATIO CIF/CONSUMER PRICE 2.2 2.7 3.4
Source: Fashion Research and Trends (2007) and Facts Figures Future (2009)
*) Import tariffs vary from 0.0 up to 12.0% of CIF value
**) The VAT tariff valid for the Netherlands is used, but note that this tariff varies per EU country.
Although the levels of wholesaler and retailer costs often shock suppliers, these intermediaries
do not generate excessive profits. While purchase costs have fallen since manufacturing in
LCCs started to gather pace, other costs have risen and increasing competitive pressures have
kept profitability down. Bargain sales are growing in importance in all segments of the market
and in all major EU countries. As a rule, importers who import from DCs are looking for low-
priced merchandise.
Price is not the only important factor!

European home textile importers often stress the combination of price and quality. This, however, does
not mean that a low price is the most important factor for the purchasing decision; a reasonable price
combined with a product of good quality is just as important. Moreover, due to the use of design
specifications, it is also extremely important for the foreign exporter that he is able to follow these
design specifications and instructions to the letter.
Source: http://www.dipp.eu (2008)
3.3 Useful sources
There are many ways of finding potential trading partners in the EU. Besides options such as
meeting prospects at trade fairs, the Internet is a highly valuable source. Relevant country-
specific sources to find prospects in the EU are:
• Europages – http://www.europages.com - you can click on ‘Textiles and Clothing’, but it is
also possible to search for a specific product.
• European Association of National Organisations of Fashion Retailers (AEDT) -
http://www.aedt.org
• Kellysearch - http://www.kellysearch.com – you can click on ‘Furniture & Textiles’, but it is
also possible to search for a specific product.
• Kompass – http://www.kompass.com - the free part is useful in finding manufacturers of
specific products; the website of the company is also listed.
• Exhibitors at trade fairs, such as Heimtextil (http://heimtextil.messefrankfurt.com) - see
the exhibitor list to find company details.
• The European Apparel and Textile Association - http://www.euratex.org
For more names and websites of associations, intermediaries and manufacturers per country,
refer to the CBI surveys covering the household and furnishing market in individual EU
countries. Another option may be to make use of sources in your own country:
• The Economic Affairs departments of the official representative (Embassy or Consulate) of
a specific EU country. Find the specific country’s embassy in your country at
http://www.embassyworld.com. Another suggestion may be to contact the consul of your
own country in the country of your choice.
• Public and private trade promotion bodies.
Marketing and communication is very important!

A strong marketing and communication effort in the DC country of the exporter is also recommended, as
importers of home textiles travel widely in order to look for new trends in the market and to locate new
partners. In order to gain the attention of European importers, it is important that the exporter is able to
actively and professionally communicate what its competencies are. A well-designed company brochure
containing photos of home textiles as well as product descriptions is of importance. Furthermore, if the
exporter is quality certified (for example ISO certification) this should be mentioned as well. This type of
communication will help the professional and qualified exporter to stand out from the crowd.
Source: http://www.dipp.eu (2008)
Page 26 of 50
4 Trade: imports and exports
Before we take a look at the figures on the imports of household and furnishing textiles in the
EU, it should be noted that all data presented in this chapter are official trade figures provided
by Eurostat. These official statistics are not always all-embracing and they should be
interpreted with care. Appendix A of this survey includes more information on statistics.
4.1 Total EU imports
Total household textiles

Table 4.1 shows that total EU imports of household textiles annually grew by an average of
3.0% in value in the period 2004-2008, of which 62% came from DCs. Extra-EU imports
decreased by an annual average of 24% in value in the period 2004-2008. Two conclusions
can be drawn: supplies from DC sources won market share, partly at the cost of developed
non-EU (Extra-EU) supplies, but supplies from European sources also increased. The largest
growth was recorded by DC supplies, which increased at an average annual growth rate of
5.3%. This reflects the increasing (out)sourcing to LCCs. Germany remained the largest import
market in the EU, followed by France and the UK. Almost all EU countries, except for Germany,
the UK, Ireland and Luxembourg, showed a growth in imports, with most CEE countries
showing the largest growth. Of these countries, Romania and Bulgaria were in the forefront
with an annual average growth rate of 41% and 37% respectively.
EU countries can be classified by developments in the value of imports during the period 2004-
2008, into:
• Booming imports (more than 40%) in Romania;
• Strongly growing imports (between 20% and 40%) in Bulgaria, Latvia, Slovakia, Lithuania,
Poland and Estonia;
• Considerably growing imports (between 8% and 20%) in Slovenia, the Czech Republic and
Denmark;
• Slightly above average growing imports (between 3.0% and 8.0%) in Cyprus, Malta,
Finland, Spain, Portugal, Greece, Italy and the Netherlands;
• Average growing imports (around 3.0%) in France, Belgium, Sweden and Austria;
• Slowly growing imports (0-2.5%) in Hungary;
• Slowly decreasing imports (-0% - -5.0%) in Germany, the UK, Ireland and Luxembourg.
Combining the statistics on consumption, production and trade presented in this survey, it can
be said that imports continued to constitute a larger share in EU demand in the period under
review. Imports grew considerably, mainly at the cost of local production, which was
increasingly relocated to other countries. Additionally, exports also declined.
Total furnishing textiles

Table 4.1 also shows that total EU imports of furnishing textiles annually grew by an average
of 3.2% in value in the period 2004-2008, of which 59% came from DCs. Extra-EU imports
decreased by an annual average of 29% in value in the period 2004-2008. Two possible
conclusions can be drawn: supplies from DC sources won market share, at the cost of extra-EU
supplies, but supplies from European sources also increased. The largest growth was recorded
by DC supplies, which increased at an average growth rate of 4.7%. This is confirmation of
increasing (out)sourcing to LCCs. Germany remained the largest import market in the EU,
followed by France and the UK. The UK and Luxembourg showed a decrease in imports of
furnishing textiles (-4.0% and -3.6% respectively). All other EU countries showed a growth in
imports, with most CEE countries showing the largest growth. Of these countries, Slovenia and
Bulgaria were in the forefront with an annual growth rate of 67% and 45% respectively.
EU countries can be classified by developments in the value of imports during the period 2004-
2008, into:
• Booming imports (more than 40%) in Slovenia, Bulgaria and Slovakia;
• Strongly growing imports (between 20% and 40%) in Latvia, Lithuania and Romania;
Page 27 of 50
• Considerably growing imports (between 8.0% and 20%) in Denmark, Portugal, Estonia,
Poland and the Czech Republic;
• Average growing imports (between 4.0% and 8.0%) in Spain, Finland, Austria, Hungary
and Cyprus;
• Slowly growing imports (0 - 2.5%) in the Netherland, Germany, Italy, Greece, Belgium and
Malta;
• Decreasing imports (-0% - -5.0%) in the UK, Ireland and Luxembourg.
Combining the statistics on consumption, production and trade presented in this survey, it can
be said that growing demand in local and in export markets both stimulated local production
and imports.
Table 4.1 EU imports of household and furnishing textiles,

in value, 2004-2008, € million
2004 2006 2008 CAGR
’04-‘08
Household textiles
Total EU, 4,308 4,703 4,853 3.0%
of which from
Intra-EU 1,565 1,717 1,747 2.8%
Extra-EU ex. DC 293 200 97 -24%
DC 2,450 2,787 3,009 5.3%
Furnishing textiles
Total EU, 1,737 1,881 1,967 3.2%
of which from
Intra-EU 624 691 772 5.4%
Extra-EU ex. DC 151 82 39 -29%
DC 961 1,108 1,156 4.7%
4.2 EU imports per product group
In this section, EU imports are discussed by product group. For information on imports per
product group in individual member states, please refer to the CBI sector surveys covering the
household and furnishing textiles market in individual EU countries. Unfortunately, the value of
re-exports of the product groups cannot be given by means of Eurostat.
Blankets and travelling rugs

Between 2004 and 2008, EU-imports annually increased in value by an average of 5.0%. The
largest importers in 2008 were Germany, the UK and France, accounting for 44% of total EU
imports. Imports to Bulgaria (+51%), Lithuania and Estonia (both +37%) accounted for the
largest growth figures. The top three leading suppliers were China, Germany and India. Total
intra-EU supply grew by 1.0% in value per year between 2004 and 2008, extra EU supply
decreased by 6.2% and total DC supply grew by 8.1%.
In 2008, the blankets and travelling rugs most imported, were:

1) Woven, made of synthetics,
2) Knitted, made of synthetics,
3) Woven, made of cotton,
4) Woven, made of wool and hair
5) Woven, made of other materials.
Blankets and travelling rugs that saw the largest growth between 2004-2008, were:
1) Knitted, made of other materials,
2) Knitted, made of synthetics,
3) Knitted, made of wool and hair,
4) Knitted, made of cotton.
Page 28 of 50
Table 4.2 Leading suppliers of blankets and travelling rugs to the EU, 2004- 2008,
share in % of value
Product 2004 2006 2008 Leading suppliers in 2008 Share
€ mln € mln € mln (share in %) (%)
Blankets and 152 139 159 Intra EU Germany (8.9), Spain (3.4), Belgium 37
travelling rugs (2.9), Portugal (2.8), Italy (2.7)
7 5 6 Extra EU ex DC Hong Kong (0.4), USA (0.2), South Korea 1.3
(0.2), Switzerland (0.2), Norway (0.1)
198 271 270 DC China (51), India (5.7), Turkey (3), 62
Thailand (0.6), Pakistan (0.6), Croatia
(0.3), Peru (0.2), Vietnam (0.1), Egypt
(0.1), South Africa (0.1)
Bed linen
Between 2004 and 2008, EU-imports annually increased in value by an average of 3.3%. The
imports. Imports to Romania (+49%), Bulgaria (+44%) and Latvia (+40%) accounted for the
largest growth figures. The top three leading suppliers were Pakistan, China and Turkey. Total
intra-EU supply and extra EU supply remained virtually stable between 2004 and 2008 and
total DC supply grew by 5.7%.
In 2008, the bed linen most imported, were:

1) Woven/printed, made of cotton,
2) Woven/not printed, made of cotton
3) Knitted,
4) Woven/printed, made of synthetics,
5) Woven/not printed, made of synthetics.
Bed linen that saw the largest growth between 2004-2008, were:
1) Woven/printed, made of cotton,
2) Woven/not printed of cotton,
3) Knitted,
4) Woven/not printed, made of flax or ramie
Table 4.3 Leading suppliers of bed linen to the EU, 2004- 2008,
share in % of value
Bed linen 897 908 894 Intra EU Portugal (5.3), Germany (4.7), Belgium 36
(4), Spain (2.9), France (2.8)
49 57 51 Extra EU ex DC Switzerland (0.8), Israel (0.7), UAE (0.1), 2.1
Canada (0.1), USA (0.1)
1,214 1,377 1,516 DC Pakistan (21), China (11), Turkey (11), 62
Bangladesh (6.4), India (5.9), Egypt
(1.6), Moldova (1.2), Tunisia (1.1),
Indonesia (0.4), Vietnam (0.3)
Table linen
Between 2004 and 2008, EU imports remained virtually stable on an annual basis. The largest
importers in 2008 were Germany, France and Italy, accounting for 51% of total EU imports.
Imports to Romania (+33%), Latvia (+30%) and Poland (+27%) accounted for the largest
growth figures. The top three leading suppliers were China, India and Turkey. Total intra-EU
supply and extra EU supply decreased by 2.6% and 6.3% respectively, while total DC supply
remained virtually stable.
In 2008, the table linen most imported, were:

3) Knitted
Page 29 of 50
Table linen that saw the largest growth between 2004-2008, were:
2) Made of textile materials (excl. cotton, flax or man made fibres, knitted or crocheted)
3) Made of flax.
Table 4.4 Leading suppliers of table linen to the EU, 2004- 2008,
share in % of value
Table linen 192 173 172 Intra EU Germany (7.1), Belgium (5.3), Poland 38
(3.3), Italy (2.9), Portugal (2.6)
7 8 6 Extra EU ex DC Russia (0.5), Switzerland (0.3), USA 1.2
(0.2), Taiwan (0.1), Hong Kong (0.1)
270 270 277 DC China (22), India (20), Turkey (7.2), 61
Tunisia (3.1), Pakistan (2.4), Egypt (1.9),
Belarus (0.9), Croatia (0.7), Vietnam
(0.7), Bangladesh (0.4)
Bathroom and kitchen linen

Between 2004 and 2008, EU imports annually increased in value by an average of 3.3%. The
largest importers in 2008 were Germany, France and the UK accounting for 47% of total EU
imports. Imports to Bulgaria (+41%), Romania (+37%) and Slovakia (+36%) accounted for
the largest growth figures. The top three leading suppliers were Turkey, China and Pakistan.
Total intra-EU supply remained virtually stable between 2004 and 2008, extra EU supply
increased by 1.5% and total DC supply grew by 5.4%.
In 2008, the bathroom and kitchen linen most imported, were:

1) Towelling, made of cotton,
2) Woven, made of cotton (other than towelling),
Bathroom and kitchen linen that saw the largest growth between 2004-2008, were:
1) Woven, made of cotton (other than towelling)
2) Made of textile materials (excl. of cotton, flax or man-made fibres, floor cloths,
polishing cloths, dishcloths and dusters)
3) Woven, made of flax
Table 4.5 Leading suppliers of bathroom and kitchen linen to the EU, 2004- 2008,
share in % of value
Bathroom and 519 504 521 Intra EU Portugal (8.6), Belgium (6.7), Germany 35
kitchen linen (4.1), the Netherlands (3.5), France (1.7)
33 39 35 Extra EU ex DC Israel (1.2), Switzerland (0.3), South 2.3
Korea (0.2), Russia (0.1), Taiwan (0.1)
767 865 945 DC Turkey (24), China (13), Pakistan (9.4), 63
India (7.7), Egypt (3.6), Bangladesh
(1.5), Brazil (1.1), Indonesia (0.8),
Colombia (0.5), Tunisia (0.2)
Curtains
imports. Imports to Romania (+45%), Lithuania (+40%) and Bulgaria (+34%) accounted for
the largest growth figures. The top three leading suppliers were China, Turkey and Germany.
Total intra-EU supply grew by 1.6% in value per year between 2004 and 2008, extra EU supply
declined by 4.1% and total DC supply grew by 5.2%.
Page 30 of 50
In 2008, the curtains most imported, were:

1) Non-woven, made of other materials,
Curtains that saw the largest growth between 2004-2008, were:

1) Non-woven, made of other materials,
Table 4.6 Leading suppliers of curtains to the EU, 2004- 2008,

share in % of value
Curtains 438 428 466 Intra EU Germany (10), Poland (5), the 41
Netherlands (4), Belgium (3.3), Czech
Republic (3)
39 39 33 Extra EU ex DC Taiwan (1), Switzerland (0.8), Russia 2.9
(0.3), USA (0.2), Israel (0.2)
518 602 635 DC China (29), Turkey (10), India (7), 56
Pakistan (4.9), Tunisia (1.3), Bangladesh
(1.3), Ukraine (0.5), Vietnam (0.3),
Ethiopia (0.2), Thailand (0.1)
Bedspreads
Between 2004 and 2008, EU imports annually declined in value by an average of 2.8%. The
largest importers in 2008 were France, Spain and the UK, accounting for 47% of total EU
imports. Imports to Slovakia (+53%), Romania (+41%) and Slovenia (+40%) accounted for
the largest growth figures. The top three leading suppliers were India, China and Portugal.
Total intra-EU supply and total DC supply decreased in value per year by 5.4% and 1.5%
respectively between 2004 and 2008, while extra EU supply remained virtually stable.
In 2008, the bed spreads most imported, were:

Bed spreads that saw the largest growth between 2004-2008, were:
1) Knitted,
2) Woven, made of cotton.
Table 4.7 Leading suppliers of bed spreads to the EU, 2004- 2008,
share in % of value
Bed spreads 59 53 47 Intra EU Portugal (7.8), Spain (4.2), Belgium (2.7), 32
Germany (2.7), France (2.4)
1 1 1 Extra EU ex DC USA (0.1), Hong Kong (0.1), Switzerland 0.4
(<0.05), Israel (<0.05), Taiwan (<0.05)
107 119 101 DC India (34), China (26), Turkey (2.5), 68
Pakistan (2.1), Moldova (0.6), Egypt
(0.5), Brazil (0.3), Bosnia and
Herzegovina (0.3), Vietnam (0.3), Mexico
(0.2)
Other furnishing articles

largest importers in 2008 were Germany, France and the UK accounting for 44% of total EU
imports. Imports to Slovenia (+117%), Bulgaria (+76%) and Slovakia (+63%) accounted for
Page 31 of 50
the largest growth figures. The top three leading suppliers were China, India and Germany.
Total intra-EU supply increased by 2.8% in value per year between 2004 and 2008, extra EU
supply declined by 6.9% and total DC supply grew by 5.8%.
In 2008, other furnishing articles most imported, were:

2) Woven, made of cotton.
Other furnishing articles that saw the largest growth between 2004-2008, were:
1) Knitted,
2) Woven, made of synthetics.
Table 4.8 Leading suppliers of other furnishing articles to the EU, 2004- 2008,
share in % of value
Other furnishing 232 244 258 Intra EU Germany (11), Belgium (4.1), Poland (4), 38
articles Portugal (3.2), Romania (2.1)
7 10 5 Extra EU ex DC USA (0.2), Switzerland (0.1), Norway 0.8
(0.1), Taiwan (0.1), Hong Kong (0.1)
336 387 420 DC China (28), India (11), Tunisia (6.4), 61
Turkey (5.4), Morocco (4.8), Vietnam (2),
Pakistan (1.6), Croatia (0.4), Ukraine
(0.4), Serbia (0.4)
4.3 The role of developing countries
In this section, the role of DCs is discussed. For information on imports per product group in
individual member states, please refer to the CBI market surveys covering the household and
furnishing textiles market in individual EU countries.
Household textiles
Table 4.9 shows that EU imports of household textiles from DCs grew at an average annual
rate of 5.3% in value in the period 2004-2008, which is faster than the average annual growth
of 3.0% for total EU imports. DCs realised an increasing share in EU imports, from 57% in
2004 to 62% in 2008.
Germany, the UK, France, the Netherlands, Italy and Spain together account for more than
75% of total DC imports. Latvia (+63%) saw the largest growth in DC imports, followed by
Romania (+46%), Slovakia and Estonia (+42%). The countries that saw the largest growth in
the DC share of total imports were Latvia, Estonia and Austria. Countries that saw a decrease
in the DC share of total imports were Ireland, Luxembourg, Lithuania, Hungary and Slovenia.
As can be seen in Table 4.9, CEE countries imported far fewer household textiles from DCs
than Western European countries, but did show the largest annual growth. The share of DCs in
total imports was the largest in total bed linen (31%).
The products with more than 62% share of DC imports were:

• Blankets and travelling rugs; knitted; other materials
• Bed linen, woven/printed; synthetics
• Bed linen, woven/not printed; synthetics
• Blankets, knitted; synthetics
• Blankets, woven; synthetics
• Bed linen, flax or ramie
• Bathroom and kitchen linen, cotton
• Blankets, knitted; cotton
• Table linen, man-made fibres
• Bathroom and kitchen linen, terry towelling or similar terry fabrics of cotton
• Bed linen, woven/not printed, cotton
Page 32 of 50
• Table linen, cotton

• Bed linen, knitted
The products with the highest growth of DC share in EU imports were:

• Bed linen; woven/printed; other materials (+92%)
• Bathroom and kitchen linen, non-woven; synthetics (+75%)
• Bed linen, non-woven/printed; synthetics (+71%)
Table 4.9 Imports of household textiles from developing countries,

2004-2008, € million
2004 2005 2006 2007 2008 CAGR*
EU27 2,450 2,560 2,787 3,020 3,009 5.3%
Germany 659 670 685 702 686 1.0%
the UK 577 517 637 629 574 -0.1%
France 261 270 295 288 320 5.2%
Italy 181 209 221 249 262 9.7%
The Netherlands 159 181 174 191 222 8.7%
Spain 126 151 185 214 199 12%
Belgium 139 152 166 194 192 8.4%
Sweden 91 99 112 119 110 4.9%
Greece 48 43 48 67 71 10%
Denmark 43 48 57 59 71 13%
Poland 21 33 36 55 67 34%
Austria 34 49 44 58 62 16%
Romania 6 12 17 22 27 46%
The Czech Republic 12 11 13 23 25 20%
Ireland 26 29 34 38 23 -3.0%
Finland 16 16 19 24 23 9.5%
Slovakia 3 1 3 6 12 41%
Portugal 7 8 8 11 11 12%
Lithuania 3 3 4 5 8 28%
Hungary 13 11 12 9 7 -14%
Slovenia 4 6 7 7 7 15%
Cyprus 5 7 6 6 7 8.8%
Latvia 1 2 3 4 7 63%
Bulgaria 2 3 4 4 6 32%
Estonia 1 1 1 1 4 41%
Malta 2 3 3 2 3 11%
Furnishing textiles
Table 4.10 shows that EU imports of furnishing textiles from DCs grew at an annual rate of
4.7% in value in the period 2004-2008, which is larger than the average annual growth rate of
3.2% for total EU imports. DCs realised an increasing share in EU imports, from 55% in 2004
to 59% in 2008. The UK, Germany and France together accounted for almost 55% of total DC
imports. Slovakia (+91%) saw the largest growth in DC imports, followed by Slovenia (+82%)
and Latvia (+74%). The countries that saw the largest growth in the DC share of total imports
were Latvia, Slovakia and Lithuania. Countries that saw a decrease in the DC share of total
imports were Ireland, Portugal, Luxembourg, Estonia, Hungary and Cyprus. As can be seen in
Table 4.10, CEE countries imported far fewer furnishing textiles from DCs than Western
European countries, but these countries did show the largest annual growth. The share of DCs
in total imports was the largest in total curtains (32%).
The products with more than 59% share of DC imports were:

• Bed spreads, woven; flax or ramie
• Bed spreads, knitted
• Bed spreads, woven; cotton
• Other furnishing articles, woven; synthetics
• Other furnishing articles, woven; cotton
Page 33 of 50
• Bed spreads, woven; other materials

• Curtains, woven; other materials
• Curtains, woven; synthetics
• Curtains, non-woven; cotton
The product with the highest growth of DC share in EU imports was curtains; non-woven,
made of synthetics (+255%). No other products showed a comparable growth in DC share.
Table 4.10 Imports of furnishing textiles from developing countries,

2004-2008, € million
2004 2005 2006 2007 2008 CAGR*
EU27 961 1,027 1,108 1,245 1,156 4.7%
the UK 288 261 277 284 244 -4.1%
Germany 166 208 206 233 223 7.6%
France 119 132 140 171 159 7.5%
Spain 53 62 80 98 90 14%
the Netherlands 54 52 63 69 74 8.2%
Italy 69 81 90 86 73 1.4%
Belgium 66 64 68 85 73 2.4%
Sweden 41 46 51 54 47 3.8%
Greece 38 40 40 42 44 3.5%
Poland 13 16 17 29 30 23%
Austria 12 13 13 15 21 15%
Denmark 12 17 17 21 21 15%
Romania 2 5 9 12 14 54%
Portugal 7 8 8 10 9 6.7%
Finland 4 6 7 7 9 18%
Slovakia 0 0 1 5 6 -
the Czech Republic 2 2 2 4 5 19%
Ireland 6 7 9 10 3 -14%
Slovenia 0 0 0 1 2 -
Bulgaria 0 0 1 1 2 -
Hungary 4 3 3 2 2 -16%
Cyprus 1 2 2 2 2 5.8%
Latvia 0 0 1 1 2 -
Lithuania 0 0 1 1 1 -
Malta 0 1 0 1 1 -
Estonia 1 0 0 0 0 -
Luxembourg 0 0 0 0 0 -
*Compound Annual Growth Rate
Leading position of China is decreasing

China’s leading position on competitive production countries is becoming smaller. The reason for this is
the increasing production costs in China. Labour costs in China are increasing fast. Furthermore, the
Chinese government has decreased the tax advantage on exports and it has become more difficult for
companies to arrange their financing, as the credit limit has been lowered. Moreover, the regulation on
labour conditions and environment has been sharpened. All this had led to a weakening in China’s
leading position. According to the Danish Federation of Textile and Clothing, China itself is in the process
of acting proactively to the new situation, among others by moving some textile production to African
countries.
Source: http://www.fashionunited.nl & http://www.dipp.eu (2009)
4.4 Exports
Exports of household textiles

As shown by Table 4.11, in the period 2004-2008 total EU export value annually decreased by
1.1% to € 2.6 billion in 2008. The product group shares were as follows:
• Blankets and travelling rugs: 9.7% of total. Export value remained virtually stable.
• Bed linen: 52% of total. Export value remained virtually stable.
• Table linen: 10% of total. Annual decrease in export value of 2.6%.
Page 34 of 50
• Bathroom and kitchen linen: 28% of total. Annual decrease in export value of 1.2%.
EU27 ran trade deficits (more imports than exports) in all product groups: blankets and
travelling rugs (€ 185 million), bed linen (€ 1.1 billion), table linen (€ 188 million) and
bathroom and kitchen linen (€ 780 million).
Table 4.11 EU exports of household textiles, 2004-2008, € million

2004 2005 2006 2007 2008 CAGR
Total, 2,687 2,675 2,703 2,750 2,569 -1.1%
of which from
Intra EU 1,983 2,042 2,046 2,131 1,989 0.1%
Extra EU ex. DC 592 518 536 493 447 -6.8%
DC 112 115 121 126 133 4.5%
Portugal was by far the largest exporter, accounting for more than 17% of total EU exports,
followed by Belgium (13%), Germany (11%) and Italy (10%). With the exception of Poland,
the Czech Republic and Romania, CEE countries were only small exporters of household
textiles with most countries accounting for just 1.0% of total EU exports.
Exports of furnishing textiles

As shown by Table 4.12, in the period 2004-2008, total EU export value annually increased by
2.4% to € 1.1 billion in 2008. The product group shares were as follows:
• Curtains: 58% of total. Annual increase in export value of 2.1%.
• Bedspreads: 7.4% of total. Annual decrease in export value of 8.0%.
• Other furnishing articles: 35% of total. Annual increase in export value of 6.0%.
The EU27 also ran trade deficits in all product groups: in curtains (€ 486 million), bedspreads
(€ 66 million) and other furnishing articles (€ 297 million).
Table 4.12 EU exports of furnishing textiles, 2004-2008, € million

2004 2005 2006 2007 2008 CAGR
Total, 1,018 1,064 1,094 1,199 1,118 2.4%
of which from
Intra EU 791 845 859 959 891 3.0%
Extra EU ex. DC 173 162 172 170 155 -2.7%
DC 55 56 63 70 71 7.0%
Germany was by far the largest exporter, accounting for 19% of total EU exports, followed by
Poland (13%) and Belgium and France (both 8.0%). Of the CEE countries, Poland and the
Czech Republic were particularly important exporters, accounting for 13% and 5.0%
respectively of total EU exports.
The statistics clearly show that producers in CEE countries have a stronger foothold on the EU
export market for furnishing textiles than on the EU export market for household textiles.
Unfortunately, the exact value of re-exports cannot be given by means of Eurostat.
should, therefore, always be analysed in relation to your specific circumstances.
+ EU demand clearly exceeds EU production and, therefore, depends on imports from
outside the EU to meet this demand. This offers good opportunities for DCs.
+ Although EU demand for household textiles slightly decreased, EU imports of household
textiles increased on average by 3.0%. Imports from DCs grew even faster, by 5.3%
per year.
Page 35 of 50
+ EU imports of furnishing textiles from DCs grew by 4.7% per year. This is larger than
the average annual growth rate of 3.2% for total EU imports of furnishing textiles and
also larger than the growth rate of EU demand (4.0%).
+ DCs realised an increasing share in EU imports of household textiles (from 57% in 2004
to 62% in 2008) and in EU imports of furnishing textiles (55% in 2004 to 59% in 2008).
+ Imports of household and furnishing textiles in most CEE countries showed a large
increase.
+ China’s leading position is expected to decrease due to increasing production costs.
+ It is expected that imports from DCs will grow faster than total imports in the coming
years, mainly to the detriment of other (EU and non-EU) countries.
± China, India, Turkey and Pakistan are important suppliers for all product groups and
other countries face tough competition from these countries when targeting the EU
market.
4.6 Useful sources
With the help of the following links it is possible to make your own tailor-made query:
• EU Expanding Exports Helpdesk - http://exporthelp.europa.eu Î go to: trade statistics
• Eurostat - official statistical office of the EU - http://epp.eurostat.ec.europa.eu Î go to
‘themes’ on the left side of the home page Î go to ‘external trade’ Î go to ‘data - full
view’ Î go to ‘external trade - detailed data’.
• Understanding Eurostat: Quick guide to easy comext Î
http://epp.eurostat.ec.europa.eu/newxtweb/assets/User_guide_Easy_Comext_20080117.p
df
Page 36 of 50
5 Price developments
5.1 Price developments
Several factors influence price setting in the household and furnishing textiles market:
• First, it depends on the product. Is the product different from other products, does the
product have innovative characteristics? Is the product a high value product with high
design characteristics? High value products sell at a higher price than mainstream
products.
• The US$:€ exchange rate may influence price settings in the EU.
• Increasing supply and global sourcing of household and furnishing textiles put pressure on
manufacturers and margins throughout the value chain.
• Cost prices in the manufacturing industry are constantly rising and there is an oversupply
situation for some product groups because markets in the EU are growing at a slower pace
or, in some cases, even decreasing.
The market for household and furnishing textiles in EU countries is intensively competitive and
prices vary widely according to the product and type of outlet. EU household and furnishing
textiles retail prices grow more slowly than overall prices. Due to the diversity in products, it is
not possible to focus on the prices of individual products. Table 5.1 gives an overview of the
developments of consumer prices of household textiles between 2004 and 2008 and import
prices in the individual EU countries.
Table 5.1 Inflation rate and import prices of household and furnishing textiles
in the EU, 2004-2008
Price developments
CAGR Import prices
consumer Prices CAGR Prices CAGR
prices Household Household Furnishing Furnishing
Household textiles textiles textiles textiles
textiles* (’08) (’04-’08) (’08) (’04-’08)
(’04-’08) (in € per (in %) (in € per (in %)
(in %) kg) kg)
EU27 stable 5,00 -4.6 7,20 -1.6
Austria +1.0 7,40 +1.0 10,40 -4.7
Belgium +1.8 5,70 -2.7 11,50 +6.9
Bulgaria +1.8 4,80 +11 5,00 +9.5
Cyprus Stable 5,20 -2.6 5,70 -2.4
Denmark +1.0 6,00 -1.5 7,00 -3.7
Estonia +3.9 7,80 +52 8,40 +4.2
Finland +1.0 7,40 -2.0 9,00 -2.1
France Stable 6,60 -1.3 9,80 +3.1
Germany Stable 5,90 -2.0 7,40 -4.5
Greece +1.7 4,80 -2.1 5,20 -8.9
Hungary +1.0 5,10 +25 7,60 +3.8
Ireland - 7,70 stable 12,50 -1.0
Italy +1.0 4,80 stable 5,90 -3.1
Latvia +1.0 5,00 -2.2 7,70 +1.7
Lithuania Stable 5,20 +1.3 9,30 -1.1
Luxembourg +1.0 n/a n/a n/a n/a
Malta Stable 5,30 -15 6,90 -5.4
Poland Stable 4,30 +1.0 7,00 -3.2
Portugal Stable 6,10 -5.0 7,10 -5.8
Romania +3.4 1,80 +18 4,00 +13
Slovakia Stable 1,40 +5.6 2,60 +2.0
Slovenia +2.0 7,00 stable 12,00 +1.3
Spain +2.3 5,30 -4.7 7,20 stable
Sweden -4.6 5,30 -4.3 7,20 -1.2
The Czech Republic Stable 5,20 +2.0 14,90 +14
Page 37 of 50
Price developments
CAGR Import prices
consumer Prices CAGR Prices CAGR
prices Household Household Furnishing Furnishing
Household textiles textiles textiles textiles
textiles* (’08) (’04-’08) (’08) (’04-’08)
(’04-’08) (in € per (in %) (in € per (in %)
(in %) kg) kg)
The Netherlands +1.0 2,40 -20 8,30 stable
The UK -3.4 4,60 -7.1 5,00 -3.8
* Consumer prices of furnishing textiles are not available.
Although price is not the only marketing tool for exporting household and furnishing textiles to
EU markets, it is certainly a very important one. Concentration of buying power, increasing
supply and global sourcing of textiles put pressure on processes and margins throughout the
value chain. Exporters should:
• Have a clear insight into their cost prices for exports to EU markets in order to set a
minimum selling price. At least all variable costs and part of the fixed costs should be
covered by the selling price. If the market price is lower than the minimum selling price,
money could easily be lost. Although this could be acceptable for individual orders in order
to prevent larger losses (stock losses), this situation would undermine the financial stability
of the company in the longer term.
• Try to ensure efficiencies in operations in order to decrease cost prices, for example:
reduction of stocks, more efficient production runs, negotiate lower purchase prices for raw
materials and packing materials.
5.2 Useful sources
There are a number of ways of obtaining information on the prices of household and furnishing
textiles in the EU, depending on whether you want to find out about manufacturer prices,
wholesale or retail prices:
• To see how the same product compares across different EU countries, you may be best
served by looking at the websites or catalogues of retailers (who are also sometimes
manufacturers) who have a presence in a number of EU countries, and by visiting the
individual country sites. An example of this is shown in Appendix C. This Appendix gives an
overview of the differences in prices in individual EU countries of household and furnishing
textiles at Ikea (2009). Addresses of retailers can be found in the CBI market surveys
covering the household and furnishing textiles market in individual countries.
• A good way of obtaining information on prices and price levels in the EU is by visiting one
of the major trade fairs or trade centres. You can find out about manufacturer or wholesale
prices by contacting a manufacturer or a wholesaler. They may not always be prepared to
discuss prices openly, but looking at both sets of prices will also give you an idea of
margins. However, you should always ensure that you are comparing the same thing.
Some products may appear to be similar, but there may well be very sound reasons why
their prices differ.
• Shopping in the prospective market place at several retail shops is another good way of
obtaining information on prices at retail or consumer level, but also on fashion, colours and
qualities.
• Alternatively, an impression of average prices in EU countries can be formed by browsing
through the catalogues of home shopping companies on the internet, for instance
• http://www.neckermann.de; http://www.wehkamp.nl; http://www.otto.de and
http://www.laredoute.fr. All prices in these catalogues are given in Euros (€).
• E-marketplaces for home furnishings show the prices of competitive manufacturers -
http://www.textilefurnishings.com or http://www.teonline.com.
• Prices charged by competitors can be found by browsing their Internet sites or looking for
general sites such as http://www.globalsources.com or http://www.alibaba.com.
• Trade press (refer to ‘From survey to success – export guidelines’).
Page 38 of 50
6 Market access requirements
As a manufacturer in a DC preparing to access EU markets, you should be aware of the market

access requirements of your trading partners and the EU governments. Requirements are
demanded on legislation and on labels, codes and management systems. These requirements
are based on environmental, consumer health and safety and social concerns. You need to
comply with EU legislation and have to be aware of the additional non-legislative requirements
which your trading partners in the EU might request.
There is no official quality standard for household and furnishing textiles in the European
Union. Despite EU harmonisation, which enables free trade between EU member states,
individual markets have different requirements regarding quality, types of fabric, sizes and
colours. Accurate information is best obtained from national importers. Most importers
(manufacturers, wholesalers, retail organisations etc.) work with certain minimum
requirements. In this respect, they have formulated and stipulated minimum quality
requirements, relating to both materials and make. In general, a distinction can be made
between:
• Characteristics of fabrics, which are detectable by an experienced person, with or without
the aid of instruments in general use. It is considered to be a fault if an irregularity is
evident in the fabrics of the final product;
• Characteristics of fabrics, which can only be noted with the aid of suitable equipment. Each
characteristic described comprises: definition, method of testing and minimum quality
standards and, as far as it occurs: possible allowable tolerances compared with the values
of the sample and eventual commercial implications.
Methods of testing fabrics and/or ready-made products are mainly based on ISO standards and
otherwise on European norms (EN) or national standards (DIN, NEN or BS, for
Germany, the Netherlands and the UK respectively), such as:
• Care labelling (ISO 3758);
• Dimensional stability aspects, such as washing/tumbling (ISO 3759, 5077 and 6330), dry
cleaning (ISO 3175);
• Mechanical and physical properties such as tensile strength strip (ISO 5081), tensile
strength grab (ISO 5082), tear strength (ISO 9290), abrasion resistance (EN 22313),
crease tendency/recovery (ISO 9867), pilling tendency (BS 5811) and fibre penetration
(SIS 650047).
• Colour fastness to several aspects, such as washing, light and water (ISO 105).
For more information on legislative and non-legislative requirements applicable to household

and furnishing textiles, go to ‘Search CBI database’ at http://www.cbi.eu/marketinfo, select
your market sector and the EU country of interest in the category search, click on the search
button and click on your subject of interest under non-legislative requirements for an overview
of all documents on the subject concerned.
Packaging
Information on packaging legislation is included in the CBI market information database.
Additional information on packaging can be found on the ITC website under export packaging:
http://www.intracen.org/ep/packaging/packit.htm.
Care must be given to the packaging of products if one intends to export to EU countries. It is
obvious that the packaging must be travel-steady. As required, products should also be
protected against the elements, changes in temperature and rough handling. Besides these
basics of travel- and handle-durability, some importers may have specific demands concerning
packaging, such as information concerning the order printed on the boxes (order number, box
number, name department or contact person etc.). In all cases, exporters in DCs are advised
to contact importers on the methods of packing preferred in the country of import and should
anticipate including the cost of special packaging into their price.
Page 39 of 50
Labelling
There are two kinds of requirements in the EU: mandatory and voluntary. The mandatory
requirement for all EU countries concerns the fibre content and care-labelling.
The fibre content or the composition of the textiles used

With regard to fibre content: the indication 100% or pure can be used within a margin of 2.0%
of the weight of the final product. Other fibres with a weight of less than 10% of the weight of
the final products can be mentioned. In that case, all (eventual) other fibres have to be
mentioned. The official language of the country has to be used on the labels.
Care-labelling/washing instructions
An international textiles care-labelling programme was updated in April 2005 according to ISO
3758 and is valid worldwide. The programme makes use of basic symbols which are colour-
coded; the symbols relate to washing processes, the properties of colour fastness, dimensional
stability, effect of retained chlorine (bleach), maximum safe ironing temperatures and certain
other properties. Symbols as published by Ginetex are obligatory in the EU
(http://www.sartex.ch/en/textilkennzeichnung/pflegekennzeichnung/pflegesymbole).
Optional requirements are:

• Origin marking, the name of the country of origin could be mentioned. Mentioning the
name of a country other than the country of origin is not allowed.
• Other possibilities are: size, brand or product name and other consumer information. There
is an increasing awareness of the need to keep the consumer informed of their prospective
and current purchases.
Tariffs and quotas

The agreement between the EU and China (June 2005) to limit Chinese exports to the EU of,
among others, woven bed, table, bathroom and kitchen linen, came to an end on December
31, 2007. The European Commission has decided not to continue imposing quotas on EU
imports from China. For more information on quota levels on imports, please refer to
http://trade.ec.europa.eu/sigl - click on textiles.
In general, import tariffs vary between 0 and 12% (refer to Table 3.1). Information on tariffs
and quotas can be found at http://exporthelp.europa.eu.
For more information, please refer to the CBI document ‘Packaging, size marking and labelling:
household and furnishing textiles’. This can be downloaded from
http://www.cbi.eu/marketinfo.
Fairtrade Labelling Scheme

An increasing number of European stores are offering fair trade home textile products labelled according
to the Fairtrade labelling scheme. When buying Fairtrade products, consumers are guaranteed that the
producers and workers are getting a fair price for their products. Please refer to Fairtrade Labelling
Organisations (http://www.fairtrade.net) for more information on fair trade certification. For an overview
of labels on organic cotton, please download the CBI document ‘Overview of labels for organic cotton’ at
the CBI market access database (http://www.cbi.eu/marketaccess).
Page 40 of 50
7 Opportunity or threat?
An overview of the general opportunities and threats was given at the end of the previous
chapters: Demand (Chapter 1), Production (Chapter 2) and Trade (Chapter 4) in this EU
survey. Specific opportunities in each national EU market can be found in Chapters 1 and 3 of
the CBI sector surveys for household and furnishing textiles. However, to make the
opportunities more realistic, it is important to know the trends, in particular in the household
and furnishing textiles industry. Once the trend is clear, it is important to know which target
group in which country is involved.
Remember that a given trend may offer opportunities to one company, but is a threat to
another. Exporters should therefore analyse if the trends discussed provide opportunities or
threats. The outcome of this analysis depends on an exporter’s specific situation. For example,
there is a growing demand for natural fibres in the household textiles sector. This offers an
interesting opportunity for DC producers of household textiles made of natural fibres. At the
same time, this is a threat for DC producers of household textiles who are not able to offer
household textiles made of natural fibres.
Furthermore, you should be aware that not everybody follows trends. For every trend there is
a counter trend which presents untapped growth opportunities, as well as potential threats. It
is important to know that trends are firstly picked up in Western and Northern EU countries.
The twelve new member states lag behind the others in terms of the adoption of new trends or
developments. However their integration into the EU has meant that this process will be
speeded up, encouraged by media and by internationally operating chains.
Market intelligence is one aspect, but on the other hand, it is important to know the
capabilities, strengths and weaknesses of your company. For more information on how to
become a successful exporter to the EU, refer to the CBI’s ‘From survey to success. Guidelines
for exporting household and furnishing textiles to the EU’
Page 41 of 50
Appendix A Product characteristics
Product groups
Large quantities, and a huge variety, of textiles are used in an interior environment (home,
office, hotel, etc.). In most publications, a distinction is made between household and home or
interior textiles. The term home textiles is much broader, and besides household and
furnishing textiles, also includes floor-covering textiles, filling materials used in duvets, quilts,
pillows, sleeping bags and mattresses. However, these products are not discussed in this
survey. The following classification is used in this survey:
Household textiles, include:

• Blankets and travelling rugs, excluding electric blankets
• Bed linen: (cover-) sheets, pillowcases and quilt covers
• Bath linen: hand, bath and beach towels, guest towels and washing gloves
• Kitchen linen: kitchen or tea towels and glass cloths
• Table linen: tablecloths and napkins.
Furnishing textiles, include textiles which are used for:

• Window coverings: curtains including drapes, interior blinds and curtain valances or
pelmets
• Bedspreads
• Other furnishing textiles, like decorative pillowcases, throw rugs etc.
Although reference will be made to the contracting sector (household and furnishing textiles
for hotels, offices, hotels, public buildings, sport and holiday accommodation etc.) the main
focus of this survey is textiles bought by consumers.
Blankets
Most blankets and travelling rugs used as a covering for warmth, especially on a bed, are
woven but other production methods which can provide comparable insulation at lower costs
are also popular. These are: raschel knit or thermal blankets, needle punched non-wovens
(finished by napping) and flocked blankets. Small blankets (also indicated as throws) with
typical sizes of 50x60 inches or 130x160 centimetres are used for both decorative and
functional purposes. Popular fleece blankets of these sizes are offered in not-printed, printed,
embroidered etc.
Bed linen
In terms of value, this is certainly the most important market for household textiles. The
functions of bed linen are to protect the bedding, to enhance "sleeping pleasure" and an
aesthetic appeal. The most important development concerning bedroom linen in recent
decades has been the introduction of the eiderdown also referred to as duvet, or quilt
(together with the quilt cover). Quilt covers have replaced the upper sheets in most Western
European homes. The quilt cover has much more potential for fashion expression than sheets.
An exporter wishing to compete in this category must also be prepared to compete in fashion
terms. Pure cotton fabric is mainly preferred for all types and categories of bed linen;
polyester-cotton is considerably less popular, although its advantage is its shrink resistance
and durable qualities.
Other textile fabrics such as silk account for a minor percentage of the total market. In
decreasing degree of importance, the following types can be distinguished:
• Flat (non-raised) bed linen. Main characteristics are: light in weight; feels fresh and clean;
feels cool and has little volume in a washing machine. Flat types can be made of sheeting,
shirting, poplins, batist, satin and damask. Demand of normal/traditional sheets has
decreased sharply (with the exception of hospitals and hotels). Stretch-fitted undersheets
have replaced traditional types.
• Terry bed linen: mainly single jersey terry, knitted on circular knitting machines. Terry bed
linen mostly has 80% cotton for the piles and 20% synthetics for the back. Characteristics
Page 42 of 50
are: absorbent and "airy"; easy care (no ironing); as a knitted product, it is elastic
(stretch) so that it can be used for fitted sheets suitable for different sizes of mattresses.
• Jersey bed linen is made on a single jersey circular knitting machine. Compared to terry
bed linen, the jersey bed linen has no loops. Characteristics: very supple; absorbent and
"airy"; very easy to care and looks elegant.
• Flannelette (flannel), brushed or raised bed linen made of bulky yarns and brushed on both
sides, giving a raised surface. Main characteristics are: gives warmth and easy care (no
ironing).
• Seersucker bed linen is a special weaving technique and gives an irregular surface texture -
no ironing is necessary. The irregular seersucker effects can also be obtained by printing
techniques. This cotton bed linen is lightweight and suitable for warmer seasons or heated
bedrooms.
The sizes of bed linen depend on the sizes of the beds (children’s beds, single beds, ‘king size’
single beds, double beds and twin beds) and the mattresses on the beds. The development in
the heights of mattresses in the last decade is an important point. Heights of 12 cm are
increasingly being replaced by heights of 15 cm and even 20 cm. The average height for fitted
sheets in the middle market (and higher) is 18 cm. In the higher segments of the market, the
length of bed linen has increased from the standard sizes 200 and 220 to 240 cm.
Bathroom linen
The most common bathroom textile product is a terry towel. Types of towels and mostly used
sizes in centimetres are: face (30x30), guest (30x50), hand (50x90 or 60x100), bath
(70x140) and bath or beach sheet (100x150). The most important differences are based on
end-use, which dictates the different sizes. Other bath products are washing gloves, bath rugs
and bath mats. Towels are mainly made of terry cloth (non-cut loops). Terry is absorbent, has
a light massage effect, is strong, durable and easy to wash. In recent years, the quantity of
high-quality terry material in the market has constantly increased. The trend is in the direction
of more and heavier, voluminous and softer qualities.
Bath towels and towels for other purposes are made of cotton. New developments include
blends of cotton with other fibres to obtain softer feeling, faster drying and more brilliance.
Besides households, hotels and hospitals are the main consumers. The necessity of regular
washing makes quality and colour fastness vitally important.
Kitchen linen
A decrease in the use of tea towels has been greatly influenced by the fact that increasingly
more households are using automatic dishwashers, so that hand-drying is no longer necessary.
In the kitchen, two types of towels are used: kitchen towels, made of terry or flat woven and
dish or tea towels, only flat woven. Dish or tea towels are made of cotton. Check patterns are
still the most popular for tea towels.
Table linen
Belonging to the group of table linen are: tablecloths, table-covers, table-centres, table
runners and napkins. The tablecloth has two functions: protection of the table and decoration
(aesthetic appeal). It is difficult to get hold of accurate figures on table napkins separately, as
they are almost always sold in a set matching the tablecloth, particularly in the case of
expensive quality. White, with or without self-print and single coloured plain, with or without
self-print are most commonly used for table linen. It is important for exporters to follow
changes in taste, colour, material and texture.
There is a definite decline in the daily use of the textile tablecloth, but an increase in attractive
kitchen items, such as dish towels, terry towels, warmers, place mats etc. Very often, the
textile napkin is being replaced by a cellulose one, increasing the possibility of colour variations
in combination with the tablecloth, the table top and/or the candles, thereby decreasing the
laundry duty.
Page 43 of 50
There is an enormous offer as to types, sizes, forms, materials, colours and designs. Materials
can be flat, structured, printed, dobby, jacquard, embroidered, damask with all kinds of
adornments and decorations. Table linen is mostly made of cotton. Material other than cotton,
are 100% polyester (easy to launder/wash) and 50% polyester/50% cotton or viscose and the
more luxurious textile fibres such as silk. The market share of pure cotton has so far remained
relatively stable.
Window coverings
The function of window coverings is various: provide privacy, eliminate (sun-) light, insulation
purposes (thermal, acoustic), aesthetic effects etc. The more open the fabric construction, like
net or lace curtains, the greater the visibility of outside view and light penetration, but there is
less privacy. In this case, the decorative function has the highest priority.
Textiles for indoor window coverings can be divided into the following categories:
• Draperies, which are generally made of heavy fabrics, such as velvet, satin, opaque and
jacquard. They usually have a lining and are hung from hooks.
• Curtains are relatively sheer and lightweight and are in most cases hung without linings.
• Lace or net curtains adorn the window frame in houses. The major fibre used for net
curtains is polyester filament. Other fibres are polyester staple and acrylic staple.
• Shades are a soft covering, take less space than curtain and draperies and come in fabric
and a variety of other materials.
• Blinds are similar to shades and are generally made of vinyl, fabric or wood. They can be
either horizontal or vertical and can be adjusted to regulate the amount of light during the
day and give privacy during the night.
This CBI survey covers window coverings made of textiles.
Curtains are largely sold ready-made in lengths which fit the standard window sizes and
several heights. However, buying curtain fabrics to sew one's own curtains or letting an
interior decoration firm make them up is not uncommon - usually this applies to expensive
materials (e.g. for offices).
Curtains and draperies are made from all types of fibres and fabric constructions, however,
most curtains are made of synthetic fabrics. This is because cotton curtains require ironing
after washing, they are heavy and thus inconvenient in handling. There is also a market for
expensive fibres such as silks, but it is fairly limited because of pricing and handling
restrictions.
There is still a market for curtain fabrics for home sewing besides curtains sewn and fitted by
professional curtain makers. The latter are often employed by home furnishing retailers or
interior decorating firms.
Bedspreads
A bedspread may be defined as an outer covering, mainly woven cotton (for example: waffle
throw or rib), from blends (poly-cotton 50/50), but can also be made of synthetic materials.
Excessively stiff fabrics should be avoided, since they do not drape well over a bed.
Statistical product classification of household and furnishing textiles
Prodcom and combined nomenclature

Two different sets of statistical data are used in this survey. Both sets have been provided by
Eurostat, the statistical body of the EU.
The first set is derived from Prodcom. The term Prodcom is derived from PRODucts of the
European COMmunity. This is a survey based on products whose definitions are standardised
across the EU to allow comparability between the member countries’ data. Prodcom covers
Page 44 of 50
some 4,800 products which are assigned to some 250 industries (subclasses) as defined by the
Standard Industrial Classification (SIC). Prodcom data contain production statistics.
The second set is the trade data based on the Combined Nomenclature (CN) and contains the
goods classification prescribed by the EU for international trade statistics. The CN is an 8-digit
classification consisting of a further specification of the 6-digit Harmonised System (HS). HS
was developed by the World Customs Organisation (WCO). The system covers about 5,000
commodity groups, each identified by a six-digit code. More than 179 countries and economies
use the system.
Based on the above data, apparent demand can be calculated as follows: apparent demand =
production + imports – exports.
Statistical data: limitations

Trade figures quoted in CBI market surveys must be interpreted and used with extreme
caution. The Prodcom data, used in Chapter 1 and 2, are less reliable than the import and
export statistics used in Chapter 4, as they are not part of official data collection for Customs.
Companies only have to send in their data on an annual or quarterly basis. The figures
sometimes show a discrepancy between years, e.g. a substantial fall or extraordinary growth.
These problems are caused by inaccurate, inconsistent and untimely reporting by companies.
However, Prodcom data are the only official source for production in the different EU markets.
For decision making, however, these figures are not accurate enough and should be used in
conjunction with further market research.
In the case of intra-EU trade, statistical surveying is only compulsory for exporting and
importing firms whose trade exceeds a certain annual value. The threshold varies considerably
from country to country, but it is typically about € 100,000. As a consequence, although
figures for trade between the EU and the rest of the world are accurately represented, trade
within the EU is generally underestimated. Furthermore, the information used in CBI market
surveys is obtained from a variety of sources. Therefore, extreme care must be taken in the
qualitative use and interpretation of quantitative data, it puts limitations on in-depth
interpretation of relations between demand, production and trade figures within one country
and between different countries.
Table A Selected product groups, including all selected products, based on

Prodcom and CN nomenclature
Prodcom Prodcom description CN CN description
Blankets and travelling rugs
17.40.11.30 Blankets and travelling rugs 6301.20 – knitted; wool and hair
of wool or fine animal hair 10/90/91/99 woven; wool and hair
(excluding electric
blankets)
17.40.11.90 Blankets (excluding electric 6301.30 - knitted; cotton and other materials,
blankets) and travelling 10/90, woven; cotton and other materials
rugs of textile materials 6301.90 - 10/90
(excluding of wool or fine
animal hair, of synthetic
fibres)
17.40.11.50 Blankets and travelling rugs 6301.40 -10/90 knitted; synthetics
of synthetic fibres woven; synthetics
(excluding electric
blankets)
Bed linen
17.40.12.30 Bed linen of knitted or 6302.10 - knitted cotton and other materials
crocheted textiles 00/10/90
17.40.12.53 Bed linen of cotton 63021.00, woven/printed; cotton
(excluding knitted or 6302.31.00/10 woven/not printed of cotton
crocheted) /90
17.40.12.70 Bed linen of non-woven 6302.22.10, non-woven/printed; synthetics
man-made fibres 6302.32.10 non-woven/not printed; synthetics
Page 45 of 50
Prodcom Prodcom description CN CN description

(excluding knitted or
crocheted)
17.40.12.59 Bed linen of woven textiles 6302.22.90, woven/printed; synthetics and other
(excluding of cotton, of flax 6302.29.90, materials
or ramie) 6302.32.90, woven/not printed; synthetics and
6302.39.90 other materials
17.40.12.55 Bed linen of flax or ramie 6302.29.10, woven/printed; flax or ramie
(excluding knitted or 6302.39 – woven/not printed; flax or ramie
crocheted) 10/20/30
Table linen
17.40.13.30 Table linen of knitted or 6302.40.00 Knitted
crocheted textiles
17.40.13.53 Table linen of cotton 6302.51.00/10/ woven; cotton
(excluding knitted or 90, woven; cotton with flax
crocheted) 6302.52.00
17.40.13.70 Table linen of non-woven 6302. 53.10 non-woven; synthetics
man-made fibres
17.40.13.59 Table linen of woven man- 6302.53.90, woven; synthetics and other materials
made fibres and of other 6302.59.00
woven or non-woven
textiles (excluding of
cotton, of flax)
Bathroom and kitchen linen
17.40.14.30 Toilet linen and kitchen 6302.60.00 towelling; cotton
linen, of terry towelling or
similar terry fabrics of
cotton
17.40.14.50 Woven toilet linen and 6302.91 – woven, cotton (other than towelling),
kitchen linen, of textiles 00/10/90, flax, synthetics and other materials
(excluding terry towelling 6302.92.00,
or similar terry fabrics of 6302.93.90, 6302
cotton) 99.00
17.40.14.70 Toilet linen and kitchen 6302.93.10 non-woven; synthetics
linen, of non-woven man-
made fibres
Curtains (including drapes, interior blinds, curtain or bed valances)
17.40.15.30 Curtains and interior blinds, 6303.11.00, knitted; cotton, synthetics and other
curtain or bed valances, of 6303.12.00, materials
knitted or crocheted 6303.19.00
materials
17.40.15.50 Curtains and interior blinds, 6303.91.00, woven; cotton, synthetics and other
curtain or bed valances, of 6303.92.90, materials
woven materials 6303.99.90
17.40.15.70 Curtains and interior blinds, 6303.92.10, non-woven; synthetics and other
curtain or bed valances, of 6303.99.10 materials
non-woven materials
Bedspreads
17.40.16.53 Bedspreads (excluding 6304.11.00 Knitted
eiderdowns) 6304.19.10/30/90 woven; cotton, flax or ramie and other
materials
Other furnishing articles
17.40.16.59 Furnishing articles including 6304.91.00, Knitted
furniture and cushion 6304.92.00, woven; cotton, synthetics, woven and
covers as well as cushion 6304.93.00, other materials
covers, etc for car seats 6304.99.00
(excluding blankets,
travelling rugs, bed linen,
table linen, toilet linen,
kitchen linen, curtains,
blinds, valances and
bedspreads)
Page 46 of 50
Appendix B Introduction to the EU market
The European Union (EU) is the current name for the former European Community. In
January 1995 the EU consisted of 15 member states. Ten new countries joined the EU in May
2004. In January 2007 two more countries – Bulgaria and Romania - joined the EU.
Negotiations are in progress with a number of other candidate member states. In this survey,
the EU is referred to as the EU27, unless otherwise stated.
Cultural awareness is a critical skill in securing success as an exporter. The enlargement of the
EU has increased the size of the EU, and also significantly increased its complexity. With more
people from culturally diverse backgrounds, effective communication is necessary. Be aware of
differences in respect of meeting and greeting people (use of names, body language etc.) and
of building relationships. There are also differences in dealings with hierarchy, presentations,
negotiating, decision making and handling conflicts. More information on cultural differences
can be found in Chapter 3 of CBI’s export manual ‘Exporting to the EU (2006)’.
General information on the EU can also be found at the official EU website

http://europa.eu/abc/governments/index_en.htm or the free encyclopaedia Wikipedia
http://en.wikipedia.org/wiki/Portal:Europe.
Monetary unit: Euro

On 1 January 1999, the Euro became the legal currency within twelve EU member states:
Austria, Belgium, Finland, France, Germany, Italy, Ireland, Luxembourg, The Netherlands,
Spain, and Portugal. Greece became the 12th member state to adopt the Euro on January 1,
2001. Slovenia adopted the Euro in 2007. Since 2002 Euro coins and banknotes replaced the
national currency in these countries. Denmark, the UK and Sweden have decided not to
participate in the Euro.
In CBI market surveys, the Euro (€) is the basic currency unit used to indicate value.
Page 47 of 50
Appendix C Overview of retail prices of household and furnishing textiles at IKEA
Table 4.2 Overview of retail prices, including VAT, of some selected products of household and furnishing textiles at Ikea
in Europe (in €*), 2009
product product price Germany price the price the UK price France price Belgium price Spain price price Italy
group Netherlands Sweden
bath linen towel 0.99 – 16.99 1.00 – 9.99 3.49 – 16.33 1.99 - 14.95 1.50 – 6.99 1.50 – 15.95 0.97– 9.61 0.69 – 8.99
bed linen bedspread 3.99 – 35.00 7.99 - 29.95 4.19 – 40.84 4.99 – 39.00 4.99 – 29.95 4.50 – 29.95 3.79 – 33.88 5.99 – 37.95
plaid 1.49 – 29.99 4.00 - 39.95 1.97 – 46.68 2.50 – 29.00 1.99 – 49.95 3.99 – 49.95 1.46 – 29.03 3.99 – 24.95
table linen table 9.00 – 22.00 4.99 – 19.95 5.82 – 26.84 4.99 – 9.99 5.99 – 24.95 5.99 – 24.95 5.73 – 25.14 1.99 – 24.95
cloth
kitchen tea towel 2.00 – 6.00 1.99 - 5.99 1.86 – 5.36 2.99 – 5.99 2.99 – 5.99 1.99 – 5.99 2.82 – 5.73 2.99 – 5.99
linen
furnishings curtains 3.99 – 69.00 3.99 – 69.95 4.66 – 75.87 3.99 – 65.00 3.99 – 59.90 4.99 – 69.90 3.79 – 63.00 4.99 – 65.00
(set of 2)
Source: http://www.ikea.com (2009)
* Used conversion rates are 1£ = 1.17€ and 1kr = 0.10€
Page 48 of 50
Appendix D List of developing countries
OECD DAC list - January 2006

When referred to developing countries in the CBI market surveys, reference is made to the
group of countries on this OECD DAC list of January 2006.
Afghanistan Gabon Nepal Uruguay

Albania Gambia Nicaragua Uzbekistan
Algeria Georgia Niger Vanuatu
Angola Ghana Nigeria Venezuela
Anguilla Grenada Niue Vietnam
Antigua and Barbuda Guatemala Oman Wallis & Futuna
Argentina Guinea Pakistan Yemen
Armenia Guinea-Bissau Palau Zambia
Azerbaijan Guyana Palestinian Admin. Areas Zimbabwe
Bangladesh Haiti Panama
Barbados Honduras Papua New Guinea
Belarus India Paraguay
Belize Indonesia Peru
Benin Iran Philippines
Bhutan Iraq Rwanda
Bolivia Jamaica Samoa
Bosnia & Herzegovina Jordan Sao Tome & Principe
Botswana Kazakhstan Saudi Arabia
Brazil Kenya Senegal
Burkina Faso Kiribati Serbia
Burundi Korea Rep. of Seychelles
Cambodia Kyrgyz Rep. Sierra Leone
Cameroon Laos Solomon Islands
Cape Verde Lebanon Somalia
Central African Rep. Liberia South Africa
Chad Libya Sri Lanka
Chile Macedonia St. Helena
China Madagascar St. Kitts Nevis
Colombia Malawi St. Lucia
Comoros Malaysia St. Vincent & Grenadines
Congo Democratic Rep. Maldives Sudan
Congo Rep. Mali Suriname
Cook Islands Marshall Islands Swaziland
Costa Rica Mauritania Syria
Cote d’Ivoire Mauritius Tajikistan
Croatia Mayotte Tanzania
Cuba Mexico Thailand
Djibouti Micronesia, Fed. States Timor-Leste
Dominica Moldova Togo
Dominican Republic Mongolia Trinidad & Tobago
Ecuador Montenegro Tunisia
Egypt Montserrat Turkey
El Salvador Morocco Turkmenistan
Equatorial Guinea Mozambique Turks & Caicos Islands
Eritrea Myanmar Tuvalu
Ethiopia Namibia Uganda
Fiji Nauru Ukraine
Page 49 of 50
CBI countries – January 2008:
CBI supports exporters in the following Asian, African, Latin American and European (Balkan)
countries:
Afghanistan
Albania
Armenia
Bangladesh
Benin
Bolivia
Bosnia-Herzegovina
Burkina Faso
Burundi
Colombia
Ecuador
Egypt
El Salvador
Ethiopia
Georgia
Ghana
Guatemala
Honduras
India
Indonesia
Jordan
Kenya
Kosovo
Macedonia
Madagascar
Mali
Moldova
Montenegro
Morocco
Mozambique
Nepal
Nicaragua
Pakistan
Peru
Philippines
Rwanda
Senegal
Serbia
South Africa
Sri Lanka
Suriname
Tanzania
Thailand
Tunisia
Uganda
Vietnam
Zambia
Page 50 of 50

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THE HOUSEHOLD AND FURNISHING TEXTILES MARKET IN THE EU

CBI MARKET SURVEY

THE HOUSEHOLD AND

Appendix A Product characteristics ..................................................................... 42

This survey was compiled for CBI by Facts Figures Future.

Disclaimer CBI market information tools: http://www.cbi.eu/disclaimer

Opportunities for DC exporters

This market survey discusses the following product groups:

1.1 Market size

1.1.1 Consumer market

Table 1.1 Apparent demand of household textiles in the EU,

2004 2005 2006 2007 2008 CAGR*

Table 1.2 Apparent demand of furnishing textiles in the EU,

Table 1.3 Indication of EU demand of household and furnishing

Per capita expenditure

2004 2005 2006 2007 2008 CAGR Annual

Colour, design and style

Promotion and presentation

Regional variations in climate

Short term economic forecast

Table 1.5 Nielsen Global Consumer Confidence Index

1.1.2 The commercial or contract market in the EU

Table 1.6 Textile demand by service industries in the EU, 2002-2006,

1.2 Market segmentation

Segmentation based on demographic criteria

Developments at the housing market

Table 1.7 Developments in the European housing market, 2006-2011, x1,000

Segmentation based on socio-economic criteria

Segmentation by attitude toward fashion and life style

Segmentation by price/quality ratio

Table 1.8 Segmentation by price/quality ratio

Product Store choices Brand names Fashion Price Criteria

• Increasing price consciousness. Consumers in many EU countries have become more

Ecotextile - http://www.ecotextile.com – is a magazine on sustainable textile and clothing. The website

Source: http://www.eurofound.europa.eu (2009)

1.4 Opportunities and threats

Key success factors

1.5 Useful sources

• Bundesverband Baustoffe – http://www.bvbaustoffe.de

2.1 Size of production

Table 2.1 Production of household textiles in the EU,

Table 2.2 Production of furnishing textiles in the EU,

2004 2005 2006 2007 2008 CAGR

Table 2.3 Indication of EU production of household and furnishing

Due to various pressures for change as a result of consumer developments, technological

Table 2.4 SWOT analysis European textiles sector

Outsourcing and foreign policy

The foreign policy of home textiles companies takes many forms:

2.3 Opportunities and threats

2.4 Useful sources

• Euratex - http://www.euratex.org including links to national trade associations

3 Trade channels for market entry

Theoretically, importing is a function which can be done by manufacturers, wholesalers or

Importers Domestic (importing)

Wholesaler Sales agents

Another classification between retailers can be made by the function of importing:

The hospitality sector is becoming a consumer-direct channel

Differences between EU countries

3.2 Price structure

Table 3.1 Calculation schedule: margins

Low Medium High

Price is not the only important factor!