Tableware, Kitchenware and Other House Articles in EU 2009

CBI MARKET SURVEY: THE TABLEWARE, KITCHENWARE AND OTHER HOUSEHOLD ARTICLES MARKET IN THE EU
CBI MARKET SURVEY
THE TABLEWARE, KITCHENWARE AND OTHER HOUSEHOLD ARTICLES MARKET IN THE EU

Publication date: November, 2009
CONTENTS REPORT SUMMARY ..................................................................................................... 2 INTRODUCTION .......................................................................................................... 4 1 2 3 4 5 6 7 CONSUMPTION ..................................................................................................... 5 PRODUCTION ..................................................................................................... 15 TRADE CHANNELS FOR MARKET ENTRY .............................................................. 19 TRADE: IMPORTS AND EXPORTS ........................................................................ 26 PRICE DEVELOPMENTS ....................................................................................... 37 MARKET ACCESS REQUIREMENTS ....................................................................... 40 OPPORTUNITY OR THREAT? ............................................................................... 41
APPENDICES ................................................................................................................. A B C D PRODUCT CHARACTERISTICS ............................................................................. 42 INTRODUCTION TO THE EU MARKET .................................................................. 49 LIST OF DEVELOPING COUNTRIES...................................................................... 50 REFERENCES ....................................................................................................... 52
This survey was compiled for CBI by ProFound Advisers In Development 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 52
REPORT SUMMARY
This market survey provides developing-country exporters of tableware, kitchenware and other household articles, with figures and information related to the European Union (EU) market. The emphasis of the survey lies on those products, which are of importance to developing country suppliers. The tableware, kitchenware and other household articles market in individual EU countries is further discussed in separate CBI market surveys, which market can be downloaded from http://www.cbi.eu/marketinfo. Consumption The market for glassware, tableware and household utensils decreased between 2001 and 2004, due to the economic crisis which hit the EU in the beginning of the 21st century. As from 2005, the market recovered to a value of almost 36 billion in 2006. Forecasts are that this market will continue to grow. However, due to the current global economic crisis, the growth in consumption will be limited again, at least in the short run. The tableware, kitchenware and other household articles market covered by this survey, is part of the market for glassware, tableware and household utensils. The largest markets are Italy, Germany, the UK, France and Spain, although these markets are rather mature. Growth markets can be found in Eastern Europe. The EU tableware, kitchenware and other household articles market is characterized by a shift in consumer preferences towards more informal tableware, kitchenware and other household articles. This is one of the reasons why the plasticware market is the largest market for tableware, kitchenware and other household articles in the EU. Besides, many EU consumers want to distinguish themselves, so products need to be unique and innovative, and according to the latest fashion trends. Furthermore, the health trend is leading to consumers increasingly buying products made of natural materials such as bamboo and wood. However, woodware is still by far the smallest product group consumed (and imported) by the EU. Production The production value of the five leading producers of table- and kitchenware in the EU amounted to 7.8 billion in 2007, and is decreasing, specifically in West-European countries. EU manufacturers of tableware, kitchenware and other household articles have faced, and still face, heavy competition, in particular from Asian manufacturers which are able to offer lowpriced products. Therefore, many EU manufacturers have outsourced their production to lowcost countries, like China, in order to keep production costs low. Other EU manufacturers have focused on improving quality and design, to be able to compete in the high end of the market. Many East-European table- and kitchenware manufacturers have profited from becoming EU members. They have gained access to the large EU market and their low labour costs give them a competitive advantage. However, this competitive advantage will disappear in the future, as the EU plans a gradual harmonisation of wages; furthermore market forces will have an effect. Moreover, several East-European producers indicated that competition is also strong in their market, partly because of lower priced products, in particular from China. Trade channels Tableware, kitchenware and other household articles are distributed through many different channels. The different actors in the channels are manufacturers, importers, agents, wholesalers, retailers and consumers. The route a product travels to the consumer can vary in length. The main distribution intermediaries for exporters in developing countries are agents / sales offices, importers/wholesalers and retailers. Retailers gained in importance as a potential trading partner, also for developing countries. By skipping intermediaries, this direct trade with retailers offers a higher margin for the exporter. However, it also involves investment in product design, and you need to have a sound
CBI MARKET SURVEY: THE TABLEWARE, KITCHENWARE AND OTHER HOUSEHOLD ARTICLES MARKET IN THE EU knowledge of the EU market and the latest trends. Current fashion trends are presented in Section 1.3 of this survey. Imports and exports In 2008, the EU imported 12 billion / 4.4 million tonnes of table- and kitchenware. Between 2004 and 2008, these imports increased significantly by 4.3% annually in terms of value, and by 4.6% annually in terms of volume. The supplies from developing countries to the EU increased at a substantial rate, higher than the supplies from intra- EU countries. Furthermore, note that the West-European suppliers also re-export products from developing countries to other EU countries. The leading EU importers are Germany, France and the United Kingdom, together accounting for 43% of the total EU imports. EU countries which showed a very large increase in their imports of table- and kitchenware in terms of value were East-European countries, such as Poland, Romania, Slovakia and Bulgaria. Also the Baltic States of Latvia and Lithuania showed a considerable increase in their imports, but these countries are still among the smallest importers in the EU. Information on specific product groups is provided in Chapter 4 of this survey. Developing countries accounted for 39% of the total supplies to the EU, while intra-EU countries accounted for 55% of the supplies. The leading developing country supplier, which is also the largest supplier of table- and kitchenware to the EU, is China, accounting for 31% of total imports. EU imports from this country increased by 16% annually, both in terms of value and volume during the review period. Other leading suppliers from developing countries were Turkey, Thailand and India, accounting for respective shares of 2.7% 1.4% and 1.3% of the total EU imports. Imports from Turkey and India increased substantially during the review period, while those from Thailand decreased. In 2008, the EU exported nearly 11 billion / 2.2 million tonnes of tableware, kitchenware and other household articles. Between 2004 and 2008, EU exports of these products increased by 2.1% annually in terms of value, but decreased by 3.4% annually in terms of volume. Germany, France and Italy are among the leading three exporting countries accounting for respective shares of 19%, 16% and 15% of the total EU exports. The largest exported product groups are glassware (29%), plasticware (24%) and metalware (23%). Opportunities and threats The current economic crisis forms a threat to the EU market for table- and kitchenware, and therefore also to exporters who aim to supply this market. Reduced consumer confidence and a rise in unemployment are, among others, the main factors leading to a decrease or at least a lower growth in consumer spending. Furthermore, the strong competition in the table- and kitchenware market forms a threat. China, as the main supplier, forms a threat to other developing country suppliers aiming to export to the EU, especially in the low-end market segment. On the other hand, EU companies have positioned themselves in the high end of the market, offering branded products. Most opportunities for developing country suppliers, therefore, can be found in the middle-high market segment, where competition from branded products and Chinese companies can be avoided. Moreover, consumer preferences changed towards more casual products, but with a unique design, i.e. the middle-high market segment. Furthermore, the trend towards the use of natural materials provides opportunities for developing country suppliers, because they are the main suppliers of woodware to the EU. Products made of bamboo, for example, also would provide opportunities.
INTRODUCTION
This CBI market survey profiles the tableware, kitchenware and other household articles market in the EU. The emphasis of the survey lies on those products, which are of importance to developing country suppliers. The role of, and opportunities for, developing countries are highlighted. This market survey discusses the following product groups: Plasticware Woodware China & porcelain Ceramicware Glassware Metalware Cutlery 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 member states, 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 the 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.
CONSUMPTION
In the individual country surveys, data from the Prodcom (production) database and CN (imports and exports) database, as supplied by Eurostat, are used to indicate apparent consumption. Apparent consumption is the sum of production and imports minus exports. Variations in inventory are not taken into account. However, negative consumption is sometimes calculated, this being the case when exports are higher than production and imports combined; in that case figures are treated as not available. The Prodcom production data, which refer to production sold, are not complete (meaning that data is not available for all product groups). Because consumption is directly derived from production, consumption data are not complete either; especially regarding the smaller EU countries, information is incomplete. This makes it difficult to present data on total EU consumption. Regarding the individual country surveys, it is made clear what data are available and what data are not. The figures are therefore not accurate enough for decisionmaking and they should be used in conjunction with further market research. As Eurostat data are not reliable for all countries, Euromonitor data on consumer expenditure on glassware, tableware and household utensils1 is used in the EU survey. This group of products includes many more products than the tableware, kitchenware and other household articles products studied in this survey. It also includes products used for the bathroom, toilet, office, indoor decoration, and different sorts of mechanical devices. However, as these data are more complete than the consumption data of tableware, kitchenware and other household articles, it gives a good indication on how the sector has developed in recent years. 1.1 Market size
Due to lack of data for table- and kitchenware, Table 1.1 deals with consumer expenditure on glassware, tableware and household utensils, which can be used as an indication for trends in the tableware, kitchenware and other household articles market studied in this survey. In addition, Table 1.2 presents data on the apparent consumption of table- and kitchenware, for the countries for which data is available. EU consumer expenditure on glassware, tableware and household utensils amounted to almost 36 billion in 2006. Between 2002 and 2006, it grew steadily by an average annual rate of 1.5%. Consumption in most countries increased, except for the UK, The Netherlands and Slovenia. The strongest growth is shown by the East-European countries Romania, Lithuania, Slovakia and Latvia, reporting double-digit growth figures. The leading markets for glassware, tableware and household utensils are Germany, the UK, France and Italy. When looking only at the table- and kitchenware products discussed in this survey (see Table 1.2), these four countries are the largest markets as well, although their ranking is different. In the case of table- and kitchenware, Italy is the largest consumer, followed by Germany, the UK, France and Spain.
1 Glassware, crystal ware, ceramic ware and china ware of the kind used for table, kitchen, bathroom, toilet, office and indoor decoration, cutlery, flatware and silverware, non-electric kitchen utensils of all materials such as saucepans, stewpots, pressure cookers, frying pans, coffee mills, pure makers, mincers, hotplates, household scales and other such mechanical devices, non-electric household articles of all materials such as containers for bread, coffee, spices, waste bins, waste-paper baskets, laundry baskets, portable money boxes and strongboxes, towel rails, bottle racks, irons and ironing boards, letter boxes, feeding bottles, thermos flasks and iceboxes, repair of such articles. Excludes: lighting equipment (consumer expenditure on furniture and furnishings, carpets and other floor coverings), electric household appliances (consumer expenditure on household appliances), cardboard tableware (consumer expenditure on household goods and domestic services), personal weighing machines and baby scales (consumer expenditure on personal care), ashtrays (consumer expenditure on jewellery, silverware, watches and clocks, travel goods and personal effects).
CBI MARKET SURVEY: THE TABLEWARE, KITCHENWARE AND OTHER HOUSEHOLD ARTICLES MARKET IN THE EU Statistics from the International Housewares Association (IHA) can be used to compare the European market to other markets in the world. According to the IHA, global sales of houseware products (including table- and kitchenware, but also many other products) amounted to 220 billion ($ 301.5 billion) in 2007; this was a decrease of 9% compared to 2005. Asia accounted for the largest share of these sales (31%), followed by the USA and Canada (29%), and Europe (27%). Within Europe, 89% of the sales were accounted for by Western Europe, and the remaining share by Eastern Europe. Smaller global markets are Latin America (4.1%) and Africa (4.0%). Table 1.1 EU consumer expenditure on glassware, tableware and household utensils 2002-2006, in million
2002 2004 2006 Average annual % change 1.5% 1.0% -2.9% 3.0% 2.3% 7.8% -3.2% 2.3% 3.9% 4.4% 9.0% 3.5% 4.5% 3.2% 7.8% 8.7% 3.1% 5.6% 14% -0.5% 19% 4.6% 8.8% 14% 18% n.a. n.a. n.a.
Total Germany UK France Italy Greece Netherlands Spain Portugal Austria Denmark Sweden Ireland Belgium Hungary Czech Rep Poland Finland Slovakia Slovenia Lithuania Bulgaria Estonia Latvia Romania Cyprus Luxemburg Malta
33,799 7,130 7,497 5,635 4,652 1,148 1,616 1,076 794 770 563 581 488 445 302 257 311 264 69 91 40 33 21 16 78 n.a. n.a. n.a.
34,332 7,150 6,836 6,062 4,753 1,358 1,543 1,130 856 852 660 608 517 481 371 288 275 296 82 82 57 33 26 16 105 n.a. n.a. n.a.
35,870 7,406 6,667 6,342 5,096 1,548 1,416 1,179 927 915 793 668 581 504 407 359 352 328 114 90 81 39 30 27 152 n.a. n.a. n.a.
Source: Euromonitor International (2007)
The East-European countries are still growth markets, while most West-European markets show signs of saturation. This is also reflected in Table 1.2, where it can be seen that the three largest markets show a decrease in consumption of table- and kitchenware between 2003 and 2007. Moreover, the other countries, although showing an overall increase in consumption, experienced a decrease in consumption between 2005 and 2007 as well. Furthermore, interesting to note is that although the value consumed in Italy decreased by 0.3% annually on average in this period, in terms of volume consumption increased by 7.8% annually on average, indicating that Italian consumers turned to cheaper products. The same development can be seen for Spain, where the consumed volume increased by 5.1% annually on average in the review period. Euromonitor (2007) explains that, due to dramatic increases in the price of houses in Spain, consumers tried to save money by buying low-cost products. However, since the beginning of the economic crisis in 2008, the housing sector in Spain collapsed, resulting in a fallen value of houses.
CBI MARKET SURVEY: THE TABLEWARE, KITCHENWARE AND OTHER HOUSEHOLD ARTICLES MARKET IN THE EU Table 1.2 EU apparent consumption of table- and kitchenware, 2003-2007, in million and thousand tonnes, for available countries
2003 value 2005 value 2007 value volume Average annual % change in value -0.3% -3.4% -3.0% n.a. 2.4% 1.4% 0.3% -13% n.a. n.a.
Italy 3,116 3,064 3,076* Germany 2,328 2,332 2,031* UK 1,873 1,849 1,660 France n.a. n.a. 1,560* Spain 994* 1,148 1,092 Poland** 204 234 216 Denmark 195 223 197 Portugal 307 370 175 Bulgaria n.a. n.a. 43* Lithuania n.a. 33 33* Source: Eurostat (2009) * estimate, based on information from previous years ** excluding woodware (the smallest product group)
2,300 n.a. n.a. 648* 540 326 62 259 53 11*
Despite the importance of tradition and elaborate social meals in some countries, the EU market has steadily shifted from formal tableware, kitchenware and other household articles to a more informal and casual style. This trend is reflected in the popularity of plasticware, which is by far the largest market in the EU. The success is due to the advantages of plasticware, which is cheap, lightweight, practical and fashionable. The adaptability, modern design and colours of plasticware also attract consumers. Although turning towards a more casual style, consumers still want to distinguish themselves and therefore appreciate a unique and innovative design. Functionality, design and costs are the most important purchase criteria for table- and kitchenware. Regarding knives and cookware, functionality and cost are the most important aspects, while for tableware (glasses and dinnerware), next to cost, design is an important purchase criterion (Housewares market watch, 2009). Because of the current economic crisis, and its effects on consumer expenditure patterns, it is expected that the table- and kitchenware market will show little or no growth in the coming period. Consumers are more careful with replacing their table- and kitchenware, and will only buy what they really need. The sales of luxury products in particular will suffer from the economic crisis, but the effects of the crisis will differ per country. On the other hand, consumers increasingly cook at home instead of going out for dinner, which increases the need for table- and kitchenware. 1.2 Market segmentation
Business segment In general, we can make a distinction between the professional (business) users and the private (consumer) users. Tableware, kitchenware and other household articles sold to professional (business) users is often referred to as restaurant or hotelware. Because tableware, kitchenware and other household articles are used intensively, the catering industry sets high demands on the quality of the products. Products need to be durable, heat-resistant, chip-resistant, microwave and dishwasher proof and have high hygiene standards. The more traditional table- and kitchenware is generally plain, durable and reasonably priced. It should also be mentioned that this market segment is sensitive to changes in fashion. Leading manufacturers in this particular segment include Steelite, Churchill, Royal Doulton, Wedgwood, Rosenthal and ARC International. Consumer segment The private users segment is far more liable to change than the relatively stable professional segment. Changes in lifestyle and trends have been occurring faster, making consumer
CBI MARKET SURVEY: THE TABLEWARE, KITCHENWARE AND OTHER HOUSEHOLD ARTICLES MARKET IN THE EU behaviour more unpredictable, especially in north-western EU countries. Segmentation of consumers is therefore becoming increasingly essential. Table- and kitchenware manufacturers nowadays offer a wide range of different styles, targeted at different market segments. Traditionally, manufacturers and retailers segment their market by using the traditional criteria, such as demographics, or disposable income. The EU encompasses a population of 497 million. Around 13% of this population concerns people of the age 15-24, 29% are people in the age category of 25-44, 25% is aged between 45-64, and 17% is 65 years or older. However, as customers are becoming more diverse, segmentations based on these criteria are becoming less conclusive. As a result, other segmentation criteria are needed / used. An example of such an alternative segmentation is proposed by the German GPK. GPK segmentation: Tischwelten 2 The segmentation proposed by the German Federal Association of Cutlery, Decoration and Houseware Retailers (http://www.gpk-online.de). This segmentation is based on a qualitative study of the German market and makes a distinction between seven different segments with regard to lifestyle and characteristic preferences regarding eating and table settings. Because of its qualitative nature, no indication of the sizes of the different segments can be given. The traditionalist Table- and kitchenware articles purchased by traditionalists are generally bought to last a number of years or even decades, and are not replaced as long as the products serve their purpose. This segment was traditionally part of the table- and kitchenware market, as its consumers are considered to be loyal and satisfied. The main problem, however, is that this segment generally consists of older people, who generally do not make large table- and kitchenware purchases anymore. The conservative well-educated The conservative well-educated segment mainly consists of couples with a higher level of education, who had professional careers, and are now enjoying their retirement. They generally live in two-person households (empty nesters) and tend to have an average-to-veryhigh disposable income. The conservative well-educated consumer considers tradition to be of importance and has a liking for unity in design and high-quality materials and workmanship. The modern ambitious The modern ambitious are more likely to be women than men, although the share of the latter is increasing. The average age of this segment is between thirty and sixty years old. This segment is generally engaged in middle and higher category occupations, with a high(er) disposable income. The kitchen and dinner table in the day-to-day situation is convenienceoriented. On special occasions, however, the modern ambitious shows great ambition, with refined cooking and a creative and exclusive table culture. The modern ambitious generally wants to be up-to date and strives for luxurious table- and kitchenware. The conventional modernist The conventional modernists include both women and men, the majority aged between thirty and fifty years. The conventional modernist generally occupies a middle position in business life and has an average disposable income. In short, the conventional modernist can be regarded as a mainstream consumer group. Regarding table- and kitchenware, the conventional modernist is sensitive to quality, attractive designs and accurate pricing. The authentical This segment includes young and average-aged men and women; they have generally attended a higher form of education, and tend to have an average-to-high disposable income. Authenticals can be regarded as critical consumers, who enjoy the fine things in life. When it comes to purchasing table- and kitchenware, they are selective and thoughtful, buying only useable, functional, and high-quality products. They reject trend products which have low life spans, extravagant prestigious brands, and superficial luxurious products.
CBI MARKET SURVEY: THE TABLEWARE, KITCHENWARE AND OTHER HOUSEHOLD ARTICLES MARKET IN THE EU The experimentalist Experimentalists include both men and women, aged between twenty and thirty-five. The experimentalists are just starting their professional career; therefore their disposable income is low to average. The experimentalist has a lot of wishes when it comes to table- and kitchenware. These wishes are, however, often deferred in favour of other purchases, like vacations, a car and furniture. They have a preference for trendy brands; however, they are sensitive to blatant plagiarism. The consumer style is impulsive and price-conscious. The hyper This segment includes more men than women. The age centre point lies between twenty and forty years old. The hyper generally lives in a single or two-person household and tends to have an average to higher disposable income. In day-to-day life, hypers can be regarded as trendsetters, since they generally have an extrovert lifestyle and tend to be very outdoororiented. The consumer preferences of the hyper are subject to rapid changes. They have a preference for individual products with classical designs. Their style can be described as retro and eclectic. Hypers generally have a low interest in prestige brands. The style, material and design are of far greater importance. Fair-Trade segment The Fair-Trade segment includes consumers/businesses willing to pay a higher price for a product when it is produced in an ethical and fair way. Fair-Trade products are estimated to account for less than 2% of the tabletop market. Tableware products, in contrast to most food products, do not carry a Fair-Trade logo. Producing organisations are usually certified (by, for example, the World Fair Trade Organisation), or are evaluated through the importer. Due to the economic crisis, sales of Fair-Trade tableware are not increasing, especially not at the retailers. The best opportunity would be to sell Fair-Trade table- and kitchenware in Christmas presents/packages. According to the World Fair Trade Organisation (WFTO), somewhat less than 10% of the total Fair-Trade sales in Europe is accounted for by handicrafts. Note that these total Fair-Trade sales also include non-certified products produced according to Fair-Trade principles. Most handicrafts are sold in the Fair Trade shops (around 3,000) in Europe. The Fair-Trade handicraft sales are growing but rather slowly. The best way to sell Fair-Trade table- and kitchenware in the EU is through an importer in the country of destination. This importer is then evaluated by a Fair-Trade organisation in the country of destination, and takes care of selling the products. Often, these importers also send a designer to visit the producer, in order to develop products which are suitable to sell on the EU market. In general, the UK is by far the leading market for Fair-Trade products in the EU, with a total retail sales value of certified products of 881 million in 2008. The British Fair-Trade market is now larger than that of the USA, and is therewith the largest market in the world. The UK sales value increased by 43% between 2007 and 2008. France and Germany are the second and third largest markets for Fair-Trade products in the EU, with retail sales values of 256 million and 213 million respectively in 2008. Sweden is the fastest growing Fair-Trade market in the world at the moment. Note that in East-European countries, there is no Fair-Trade market yet. 1.3 Trends
The demand for tableware, kitchenware and other household articles in the EU is influenced by a number of trends described in this section. The trends can be divided into demographic trends, social and cultural trends, fashion trends and technical trends.
CBI MARKET SURVEY: THE TABLEWARE, KITCHENWARE AND OTHER HOUSEHOLD ARTICLES MARKET IN THE EU Demographic trends Ageing population The population of Europe is ageing rapidly. This phenomenon extends to the majority of the EU countries, especially the West-European countries. In 2008, around 17% of the population was aged 65 and over, according to Eurostat (2009). The retired generation (65+) will increase significantly in the near future, as the post-war baby-boom generation ages. By 2030 nearly 25% of the people within the European Union will be above the age of 65.2 These developments have both a negative and a positive effect on the sales of table- and kitchenware. On the one hand, it will have a positive effect on sales of some products, like those with ergonomic designs, for example, easy-grip handles. Ekco, for example, emphasizes the good grips of their kitchen items. On the downside, the generally thrifty elderly will have a preference for timeless, classical designs over fashionable, replaceable products. They generally spend less on table- and kitchenware than other demographic categories. Household size and formation New household formation, which is an important engine for growth in the table- and kitchenware market, is not expected to rise substantially in the near future. While the absolute number of households has increased, the average household size is decreasing, as people are having fewer children, divorce rates are growing, and marriage rates are dropping. Living together has become more important in Europe, and people often already live together before getting married. The trends towards a growing number of smaller households will impact the sales of table- and kitchenware, with both a negative and a positive effect. On the negative side, the smaller households generally do not have the need for large sets of table- and kitchenware. The demand for formal tableware is also forecasted to decline, as small households generally rely on quick, convenient, ready-made meals. This development will also affect the sales of cookware and other products used while preparing dinner. On the other hand, the sales of products which are not influenced by the number of members within the household will increase, as the total number of households will increase. Examples of such products are kitchen knife sets, bins, buckets, and kitchen utensils, carving knives, salt and pepper shakers, and so on. According to Key Note, the demand for products which are microwave- and dishwasher-safe is also likely to grow. Labour-saving products will also benefit from this development. The trend towards smaller households will also encourage the sales of small(er) pack sizes and individual items. According to Euromonitor, this will offer manufacturers the opportunity to increase the unit prices. Furthermore, according to Euromonitor, the number of marriages is an important sales driver in the table- and kitchenware market, especially in the premium-end of the market, due to the importance of these products as wedding gifts. However, as marriage rates are declining, the traditional backbone of the industry is disappearing. Social & cultural trends Social diversity The modern consumer can no longer be clearly defined. Consumers are becoming more diverse, both in social and in cultural terms. This is due to a number of developments. Firstly,
Wolfgang Lutz, European Demographic Data Sheet 2006 (Vienna and Washington, DC: Vienna Institute of Demography, International Institute for Applied Systems Analysis, and Population Reference Bureau, 2006).
CBI MARKET SURVEY: THE TABLEWARE, KITCHENWARE AND OTHER HOUSEHOLD ARTICLES MARKET IN THE EU ageing and increasing life spans lead to a greater diversity of ages. Secondly, growing immigration, combined with growing tourism and the easier availability of foreign spices and herbs, generate a greater variety in cooking and eating habits. According to Key Note, the popularity of ethnic dishes has led to increased demand for cooking and eating utensils, such as woks. Besides, womens increased participation in the labour market, mostly in Northern Europe, has greatly influenced their financial independence and their disposable income. This development is due to a number a factors, such as the increased educational level of women, the gradual improvement of child care facilities and, primarily, the swiftly changing attitudes regarding women's roles, according to the Dutch Social Cultural Planning Bureau (SCP). The increase, however, also meant that the time left over for cooking is often short, resulting in an increased demand for easy-to-handle utility products, which are microwave- and dishwasher-proof. Finally, the growing social diversity is also triggered by the increasing individualization, which is one of the most significant social trends in Europe. The European consumer of today wants to distinguish him- or herself from the mass, and consumption is a means of doing so. This translates into an increased demand for unique and innovative products. Health awareness There is also a growing trend towards health and wellbeing. Todays stressful society has had a positive effect on the sales of health-related products. In the table- and kitchenware market, this trend has a significant impact on food preparation methods. Low fat or even fat-free cooking methods, for example steaming, increasingly substitute less healthy cooking methods like frying and roasting. Low-fat cookware like grills, steamers and woks, has become more popular. Hygiene is also considered to be very important, leading to increased demand for antibacterial plastics, like storage boxes and chopping boards. In addition, because of the health trend, people are replacing plasticware products by woodware products, as these are perceived to be more natural (also refer to the paragraph on fashion trends). Hobby Cooking The growing trend towards more practical and more functional tableware, kitchenware and other household articles does not mean that the consumer is not interested in food and food preparation. On the contrary, the popularity of TV cooking shows, and interest in cooking magazines, has increased. Manufacturers have latched on to this development and introduced new product lines in collaboration with these TV chefs. In the United Kingdom, for example, Jamie Oliver has designed china ovenware for Royal Worcester and a series of cookware for Tefal. The retail business also has joined this development and more and more specialised cook stores have emerged, for example Oil & Vinegar, which offers an extensive range of culinary products, in combination with a limited range of table- and kitchenware. Fashion trends One of the most noticeable trends in the tableware market is the move away from formal to casual dining. Consumers are increasingly abandoning the traditional matching sets in favour of fashion-led pieces. Because of the shift towards more casual products, table- & kitchenware are increasingly influenced by fashion developments. Manufacturers follow this trend by encouraging consumers to make frequent replacement purchases. According to sources at the Birmingham Autumn Fair, trends in the tableware, kitchenware and other household articles market are likely to change significantly every twelve to eighteen months. In general, the table- and kitchenware sector is a very trend-sensitive one, meaning that manufacturers should change their product collection quite often. In general, producers should refresh their product collection twice a year, while in very trend-sensitive markets, a product collection should be changed along with the four seasons. Colour is an important aspect which is subject to change. Note that the trend-sensitivity is higher in high-end market segments, whereas in the lower segments price is the most important aspect. So, the frequency with
CBI MARKET SURVEY: THE TABLEWARE, KITCHENWARE AND OTHER HOUSEHOLD ARTICLES MARKET IN THE EU which your product collection needs to be changed, also depends on the type of consumers which you target. According to Euromonitor, the increasing importance of design has been stimulated by the growing popularity of DIY (Do It Yourself) and home makeover programmes. In terms of colour, trends generally begin in womens fashion and extend themselves via mens fashion into home textiles, and into DIY products. From here, the influence impacts table- and kitchenware. Shape is influenced by architecture, especially at the premium-end of the market. On the practical and functional side of the market, shape is influenced by lifestyle trends. Asian influences According to Reddot online (http://en.red-dot.org/1913.html, August 2008), due to globalisation, the interest in other cultures has increased, but at the same time also regional cultural identities become more important. Asia is playing a strong role at the moment in the tableware market, and products are designed to reflect traditional Asian crafts. Colours which are used are China red, gold and black. White is also one of the dominant tones at the moment, especially for porcelain and crockery. The trend of Asian style tableware, coloured red, white and black, was also clearly present on the Maison & Objet trade fair in September 2008. Furthermore, also influenced by Asian designs, rectangular and square porcelain plates and bowls are a strong trend, in combination with soft colours like celadon green and mustard (TableWareMall, 2009). Natural materials A producer present at Maison & Objet indicated that wood and bamboo products are popular at the moment (regarding ethnic products). This was also reflected at the Tendence trade fair in July 2009. As indicated on the Tendence website, the 2009 trends are natural and bold colours. Natural products are those made out of natural materials (such as bamboo, paper and wood), but also products reflecting natural colours such as white, sand and stone. Colour Colour is an important aspect of table- and kitchenware products, and preferences often change along with the four seasons. On the Tendence website can be read, for example, that coming autumn and winter, the dominating colours will be white, beige, silver-grey and gold, in combination with accents of violet, claret and lilac. The use of bold colours is also a trend, including green, pink, lilac, as well as products with neon shades and glittering metallic surfaces. Furthermore, as described before, the trend of Asian-style products is also reflected in colours drawn from this culture. Likewise, the trend of using natural materials also leads to natural colours being in fashion. Mix and match Consumers increasingly want to create an individual style, leading to companies offering different product lines, so that consumers can combine the products in their own way. This is also reflected in the trend of combining different types of products, also referred to as mix and match. An example of this is to use conventional white plates with, on top, something more unusual, in terms of colour or material (TableWareMall.com, 2009). Technical trends The busy lifestyles and the trend away from family meals, together with the increasing popularity of microwaves and dishwashers, have triggered demand for easy-to-use products adapted for use in these appliances. According to Key Note, the popularity of microwaves has led to the introduction of plasticwares specifically designed for microwave cooking. Because the table- and kitchenware market is very mature and stable, replacement spending is one of the key triggers in the market. Manufacturers therefore try to innovate their products with new features and designs, in order to motivate consumers to buy new products.
CBI MARKET SURVEY: THE TABLEWARE, KITCHENWARE AND OTHER HOUSEHOLD ARTICLES MARKET IN THE EU 1.4 Opportunities and threats
+ The EU is a large market for table- and kitchenware. West-European countries consume particularly large quantities of table- and kitchenware products. Italy, Germany, the UK and France are the leading markets and therefore provide opportunities for developing country suppliers. However, the East-European countries, although still small, are the growth markets in the EU. Because of those countries, the EU market for table- and kitchenware is growing, even though the largest markets seem to be mature. - In the short term, the economic crisis forms a threat to the European market. Consumers are cutting back on their expenses, and tend to buy products only when really needed. Furthermore, already during the review period, consumption by the largest EU markets (especially Germany and the UK) decreased significantly. + Consumer preferences are changing towards more informal tableware, kitchenware and other household articles. This trend is most noticeable in countries which still have more formal eating and cooking traditions, like France, Italy and Spain. This offers mainly opportunities for exporters who aim to enter the middle and lower-end of the market and offer new products which tap into the trends presented. + Because of the trend towards smaller households, an opportunity for developing country exporters would be to offer smaller pack sizes and more individual items. - However, the ageing population, the smaller households, and the declining number of marriages, could lead to lower consumption in the future. + Consumers are increasingly interested in woodware products, which follows from the health trend. This is an opportunity for developing country producers, as woodware is an important product group for them. + Countries in Asia can take advantage of the trend towards Asian style table- and kitchenware, by producing products which reflect influences from their own culture. + There is an increased demand for easy-to-handle utility products which are microwave- and dishwasher proof. Developing country supplies which are able to tap into this trend can grasp opportunities in the European market. + The Fair-Trade market segment could provide opportunities for developing country suppliers. The EU is an important market for Fair-Trade products, although only WestEuropean countries. The best opportunity would be to sell Fair-Trade table- and kitchenware in Christmas presents/packages. - However, note that the market specifically for Fair-Trade handicrafts is increasing only slightly. Due to the economic crisis, retailers in particular face difficulties in selling their Fair-Trade table- and kitchenware. +/- According to an industry source, exporters in developing countries are currently too strongly focused on mass production of standard goods (especially in China). However, European consumers constantly demand new products, and new designs. So, in order to be competitive on the European market, exporters should be able to regularly offer a unique and new design. Exporters should pay attention to ongoing trends in the market. 1.5 Useful sources production data per country and product Eurostat - http://epp.eurostat.ec.europa.eu code: click on statistics, and then under the heading Industry, trade and services click on Manufactured goods (Prodcom). Euromonitor - http://www.euromonitor.com market information on many EU countries. Click on Industries and then on Housewares to get a country list. Complete reports can be bought; summaries are available on the website. Federal Association of Cutlery, Decoration and Houseware Retailers - http://www.gpkonline.de market segmentation method Tischwelten 2. CPIV - Standing Committee of the European Glass Industries - http://www.cpivglass.be information about EU glassware production, consumption and some news on price developments, as well. IHA - International Housewares Association - http://www.housewares.org gives some interesting information on houseware developments in Europe. However, there is no
CBI MARKET SURVEY: THE TABLEWARE, KITCHENWARE AND OTHER HOUSEHOLD ARTICLES MARKET IN THE EU specific information on tableware, kitchenware and other household articles; the information is broader. Villeroy and Boch at Ambiente 2009 - http://www.villeroy-boch.com/en/us/home/thecompany/press/tableware/singlenews.html?no_cache=1&tx_ttnews%5Btt_news%5D=1706&tx_ttnews%5BbackPid%5D=7 85&cHash=2d444ba414 this website presents their new products and trends.
PRODUCTION
This chapter presents a general overview of the production of tableware, kitchenware and other household articles in the EU. The production statistics used refer to production sold and are derived from the Eurostat Prodcom database. However, the Prodcom production data are not complete, especially not regarding the smaller EU countries, and should therefore be interpreted with care. 2.1 Size of production
According to the available data, presented in the table below, total EU production of tableware, kitchenware and other household articles by the five leading producers amounted approximately to 7.8 billion in 2007. The lions share of total EU production is manufactured in the original EU-15. However, production in Western Europe is decreasing steadily, while in East-European countries, manufacturing is increasing. Between 2003 and 2007, production by the four leading EU manufacturers decreased by 3.9% annually on average. In contrast, production by Poland increased by 10% annually in the same period. Over the last few decades, the tableware, kitchenware and other household articles industry has become increasingly competitive, mainly due to the pressure of low-priced imports coming from Asia and Eastern Europe. Moreover, the perception of the products changed because of retailers, like Ikea, positioning table- and kitchenware as fashionable accessories sold at competitive prices. Grocery multiples are also continuing to tap into the table- and kitchenware market. They generally also sell low-priced table- and kitchenware and, often private-label (Unity Marketing, 2006). Table 2.1 EU production of table- and kitchenware, 2003-2007, in million and thousand tonnes, for available countries
2003 value 2005 value 2007 value volume Average annual % change in value -2.3% -3.7% -3.9% -9.7% -4.0%** 10% -3.6% -4.3% 20%** -17%**
Italy 3,906 3,706 3,553 Germany 2,111 1,999 1,813* France 1,017* 877 866* UK 1,189 928 790 Spain n.a. 817 753 Poland 351 523 519 Portugal 468 500 404 Denmark 143 122 120* Bulgaria n.a. 18 26 Lithuania n.a. 4.4 3.0* Source: Eurostat (2009) * estimate, based on information from previous years ** average annual change between 2005 and 2007
2,366 n.a. 166 n.a. 296 214 212 9.7 26* 0.9*
Italy is the largest EU producer of table- and kitchenware, showing an average annual decrease of 2.3% in the review period. Production in Italy mainly consists of plasticware (51%) and metalware (30%). The production by Germany, the second largest producer, decreased at a stronger rate, of 3.7% annually on average in the review period. German production mainly consists of china & porcelain (32%), plasticware (30%) and metalware (24%). Furthermore, France mainly produces metalware, and the UKs main production group is plasticware. Next to producing plasticware, Poland also produces a significant amount of glassware, in contrast to most West-European countries. The plasticware and metalware industries however, are the most important ones within EU table- and kitchenware production. Woodware is by far the smallest product group produced in the region.
CBI MARKET SURVEY: THE TABLEWARE, KITCHENWARE AND OTHER HOUSEHOLD ARTICLES MARKET IN THE EU The newer EU countries face different challenges. Becoming an EU member means access to a large, well developed market, without any Customs burden, in which they still have a competitive advantage due to their lower labour costs. At the same time, EU membership should bring economic growth and a higher standard of living. This means that the internal markets for table- and kitchenware will grow as well. In the long run, however, the competitive advantage in labour costs will be gradually lost, due to progressive wage harmonisation within the EU. It is expected that total EU production of tableware, kitchenware and other household articles will continue to decline, because many manufacturers will be forced out of the market, because of increasing imports from low-cost countries. This is especially true for manufacturers operating in the medium and low-end market. The EU also has many manufacturers producing for the high-end market, which are world famous for their quality and design and will not easily be competed out of the market. However, to reduce costs they move production to lowcost countries. The expected increase in production in East-European countries will not be large enough to offset the transferring of production to low-cost countries. Moreover, EastEuropean countries also face competition from Asian countries like China. 2.2 Trends
The developments described above have led to a pressure on prices, making it increasingly difficult for EU manufacturers to compete in the market, and has triggered them to take action. Manufacturers were pressed into competing on prices at the middle and lower end of the market, or on quality and design at the high-end of the market. Outsourcing To cope with increasing competition, several EU manufacturers outsourced their production to Asia, especially to China, Taiwan and Thailand. There they could combine their state-of-the-art technology with a low cost-base. In this way, they could maintain an efficient, high-quality production system, but at a low cost. Outsourcing a part of their production to cheap(er) contract manufacturers, offers the EU manufacturers the chance to focus their attention on marketing their products. An example is Waterford Wedgwood, which closed two of its factories in the United Kingdom, with the loss of over 1,000 jobs, as the manufacturer shifted production of its mid-priced table- and kitchenware range to China. This relocating of production resulted in considerable declines in total UK table- and kitchenware production. However, a recent switch has caused the outsourcing to China to be partly reversed. The latest trend in production is that the production of technically more complicated products is moved back to Europe again, to countries like Hungary, Romania and Turkey. In these countries, wages are still relatively low compared to West-European countries, while the quality is generally higher than in developing countries like China. Moreover, in terms of delivery, EastEuropean countries are seen as more reliable than developing counties, and transportation time is shorter and therefore faster and cheaper. However, manufacture of products for the low-end market is still being outsourced. Target premium-end market (quality) Some EU companies have started to withdraw production from the low-cost countries, as the latter cannot deliver the high quality needed to compete at the premium-end of the market. According to Euromonitor, many EU manufacturers tried to position themselves at the premium-end of the market, where the margins are higher, especially since competition increased in the low-end segment. However, because of this development, also the high-end segment became crowded, again leading to more competition. On top of that, due to the global economic crisis, consumers spend less on luxury products. Mergers and acquisitions Achieving economies of scale was another answer to the increasing competitiveness. Mergers and acquisitions are a popular means to acquire the scale necessary to survive in the
CBI MARKET SURVEY: THE TABLEWARE, KITCHENWARE AND OTHER HOUSEHOLD ARTICLES MARKET IN THE EU globalizing world. Small companies with insufficient production were taken over. This provided an ideal way for the bigger companies to increase their market share in the mature EU tableand kitchenware market. SEB SA and Newell Rubbermaid are both examples of manufacturers which have pursued a growth by acquisition strategy for years. However, the latter has recently changed its strategic focus to organic growth, meaning that the company aims at growing in itself, fuelled by innovation behind strong brands. Brand extension Another notable development is brand extension. Waterford Wedgwood, for example, extended their product line into linens, jewellery, writing instruments and other giftware. Because of the increasing competition, manufacturers are searching for ways to differentiate their products from their competitors. Branding, together with advertisements, is an effective way of achieving this. 2.3 Opportunities and threats
+ Total EU production of table- and kitchenware is decreasing, which is the result of both increased competition due to low-priced products from Asia, and increased prices of energy which in turn raised production costs. This means that the EU increasingly imports tableand kitchenware, or outsources production to low-cost countries, indicating opportunities for developing country manufacturers and exporters. + Many developing country manufacturers are able to produce tableware, kitchenware and other household articles at much lower costs than the EU countries. As long as they can maintain the quality of their products and are reliable in their supply, this represents an opportunity for DC exporters. - In the short and medium term, East-European countries have a competitive advantage in labour costs with respect to other EU countries; they have easy access to the large EU market compared to non-EU countries and are obviously much closer to the EU market. Therefore, currently, the East-European countries are strong competitors to developing country exporters. - Moreover, at the Maison & Objet trade fair it appeared that East-European products (especially glassware) are perceived to be of a higher quality than products from for example China, stressing the strong competition from East-European countries. + In the long run, the competitive advantage of a cheap labour force in Eastern Europe will disappear, due to wage harmonisation within the EU, thereby leading to more opportunities for exporters in developing countries. However, especially for new member states, such as Romania and Bulgaria, this will take a long time. - China also forms a threat to other developing country suppliers. Already a large share of table- and kitchenware is imported from China (see Chapter 4), which is able to produce at very low costs. - The mergers and acquisitions going on in the EU table- and kitchenware market could be threatening, as larger companies will be dominating the market, making it more difficult for small-scale exporters to enter the market. - Developing country exporters who aim to enter the high-end of the EU market face serious competition from already established European manufacturers, which are constantly improving their quality and designs, and have well-known brands. As an overall conclusion: the table- and kitchenware market is highly competitive. The best opportunities at this moment would be in the middle-high market segment, which excludes the high-end branded products, and avoids competition with Chinese manufacturers which target the low-end market. However, in order to target this segment, exporters need to invest in product design and adapt their products according to the new fashion trends in the market (see chapter 1). Developing country manufacturers need to be able to make their products unique. This can also be done through Fair-Trade certification and corporate social responsibility (CSR) for example.
CBI MARKET SURVEY: THE TABLEWARE, KITCHENWARE AND OTHER HOUSEHOLD ARTICLES MARKET IN THE EU 2.4 Useful sources Eurostat - http://epp.eurostat.ec.europa.eu production data per country and product code: click on statistics, and then under the heading Industry, trade and services click on Manufactured goods (Prodcom). Euromonitor - http://www.euromonitor.com market information on many EU countries. Click on Industries and then on Housewares to get a country list. Complete reports can be bought; summaries are available on the website. Unity Marketing - http://www.researchandmarkets.com Tabletop Market Report 2006 A Consumer Insights Study of the Dinnerware, Glassware, Flatware and Tabletop Decorative Accessories Markets. about Standing Committee of the European Glass Industries - http://www.cpivglass.be the EU glassware production, consumption and some news on price developments as well.
TRADE CHANNELS FOR MARKET ENTRY
Trade or distribution channels can be described as the path of goods followed from manufacturer to consumer. As goods move from manufacturer to consumer, they may have to pass through various intermediaries. This chapter discusses the characteristics of the European tableware, kitchenware and other household articles trade channels. Note that trade structures can vary widely among different sectors. The trade channels described below do not necessarily apply to every product group. Refer to the individual country surveys covering the market, to find the most appropriate channels. 3.1 Trade channels
Tableware, kitchenware and other household articles are distributed through many different channels, partly because they come in many different price ranges and functional varieties. Figure 3.1 shows the basic links between the various kinds of sales intermediaries, agents, importers, wholesalers and retailers. The thick lines indicate the most important trade flows. Figure 3.1 Trade and distribution channels for tableware, kitchenware and other household articles
Domestic manufacturer Foreign manufacturer
Exporter
Agent
Importer
Wholesaler
Retailer
Consumer
Main distribution flow Secondary distribution flow Table- and kitchenware in the EU is distributed through a variety of different channels, as can be seen in Figure 3.1. As the market is becoming increasingly competitive, many retailers try to lower their costs and business risks by minimising inventory and shortening order lead-time, or shortening the chain through direct sourcing from the manufacturer. The shortening of the distribution chain, combined with the increasing popularity of buying groups for the better organised retailers, implies that an increasing share of the table- and kitchenware tends to go directly from the manufacturer to the retailer, and then to consumers. In this way, the profit margin of the producer also increases, as intermediaries are skipped. In the business-to-business markets, the route is somewhat different. The catering industry (i.e. restaurants and hotels) generally purchases its table- and kitchenware at specialist wholesalers, which give a high level of service and low prices, in return for a large volume of
CBI MARKET SURVEY: THE TABLEWARE, KITCHENWARE AND OTHER HOUSEHOLD ARTICLES MARKET IN THE EU business. Many large-scale table- and kitchenware manufacturers have their own sales offices in their main sales markets. ARC International has, for example, 30 sales offices around the world. Intermediaries Smaller manufacturers, which do not have the financial means to maintain sales offices in many different countries, often have agents, who have the legal authority to act on behalf of the manufacturer. The agent receives a commission from the manufacturer. The level of commission depends on a number of factors, including the turnover rate of the product concerned and commitments undertaken (e.g. participation in local trade shows, advertising and promotional activities). Roughly speaking, an agents commission generally ranges between 3% and 15% of turnover. Most agents represent more than one manufacturer, although competition is normally avoided. Agents usually have a thorough knowledge of distribution structures and consumer behaviour. An example is the Belgian wholesaler, Billiet Trading Company, which is the agent in the Benelux for different manufacturers like Aeternum and Arcos. Wholesalers are also important when it comes to distribution, especially for the (smaller) independent retailers. Their importance, however, varies per country. Most importers / wholesalers offer extensive product ranges of different brands, which can range from 15 thousand up to 20 thousand articles. The wholesaler purchases from the manufacturers. The wholesaler takes legal title to the products, as well as physical possession of them and stocks at his own risk. The mark-up of the wholesaler is approximately 20%. The main benefit of a wholesaler is that the retailer can buy different products of different brands in much lower quantities. The wholesaler therefore serves as a focal point for manufacturers as well as retailers, by buying the production in bulk then splitting it into manageable proportions. Many table- and kitchenware manufacturers also import and sell table- and kitchenware to complement their product range. Because of their function of buying and selling table- and kitchenware, as well as handling the administration of import and export procedures, wholesalers can supply considerable information and guidance to a manufacturer. So, developing a successful working relationship with your wholesaler can lead to information on appropriate designs and on the latest market trends, use of materials and quality requirements. The independent retailers are sometimes organised in buying groups. Buying groups are individual dealers/wholesalers/retailers who unite and cooperate as a single buying and marketing force. Membership of such a group by an individual company offers the opportunity to source around 50% to 90% of its requirements at a considerable discount. By becoming a member of such an organisation, the individual retailer aims to reduce his costs. The original function of the buying groups is therefore to reduce costs by centralising buying and logistics. Participating in a buying group can, however, involve a restriction of choice if the group aims at maximising the volume of the order which is placed with the manufacturers. In addition, the role of buying groups in the form of independent retailers is under pressure. An important buying group in The Netherlands is GEPEA. The EK Groeinkauf eG, which has 2,500 members, is an important buying organisation in Germany. As an example, GEPEA finds its suppliers through trade fairs in Italy, Germany and China. Note that Maison & Objet in France is more oriented to its local market. GEPEA imports either directly, or through export corporations or agents for example. They have containers in a number of places in the world, which can be filled with products from different producers in the surrounding area. Companies can also sell directly to end-consumers. There are many variations on this theme, such as through manufacturer-owned brand stores, like the Wedgwood stores and Zwilling J.A. Henkels A.G stores. The latter has 25 company-owned retail stores, 13 of which are in Germany, 6 in European countries outside Germany (Denmark, The Netherlands, Switzerland) and 6 in China. Furthermore, e-commerce offers a direct link between a manufacturer and the
CBI MARKET SURVEY: THE TABLEWARE, KITCHENWARE AND OTHER HOUSEHOLD ARTICLES MARKET IN THE EU consumer. Other variants are door-to-door selling and party-plan selling (organising a party with the aim of selling products). A manufacturer famous for its party-plan selling is Tupperware. However, this route is somewhat underdeveloped in the distribution of tableware, kitchenware and other household articles. Retailers In the last few decades, the European tableware, kitchenware and other household articles retail market has undergone many changes, as an increasing share of products is sold through branch-foreigners (foreign shops with a number of branches located in the EU countries). In addition, the traditional retail formats are under pressure from new formats. Grocery multiples, like super- and hypermarkets and new retail formats, like IKEA, made their way into the tableand kitchenware market. As a consequence, there is increasing competition amongst the retailers. The retail channels are discussed in turn below. Houseware specialists This category contains a great variety of retail formats, including independent specialists, interior design specialists, DIY (Do-It-Yourself) specialists and furniture specialists. With the exception of the independent specialists, houseware specialists are becoming increasingly important for the dynamics of the market. This is largely due to the trend towards lifestyle solutions, where consumers are presented with a package of products, rather than isolated product categories (Euromonitor, 2006). This trend is normally conducted and stimulated by interior design specialists and its development has led to the creation of different market niches, each aiming at a specific consumer group. Interior design specialists have become all-round retailers, not only selling furniture, but also the matching accessories including table- and kitchenware, especially ceramicware, china & porcelain and glassware. According to Euromonitor, these products help to enhance the main product portfolio. Furthermore, these products increase in-store traffic, encourage consumers to stay longer in the outlets and thereby boost sales. Due to their low-unit costs, these products are cheaper to stock and easy to dispose of through special offers. Formats such as Ikea, Habitat and Interio, show that market success is increasingly dependent on creating a particular lifestyle image. It will be increasingly difficult for the independent specialists to survive in this increasingly competitive environment. They are, however, still of significant importance, especially in countries with a less developed retail structure, like for example East-European countries. Department stores & variety stores Traditionally, department stores were one of the few retailers located in city centres which used to offer a wide range of table- and kitchenware. The growth of new formats, like IKEA, has put increased pressure on their market position. As a result, the department stores tried to reinvent themselves and came up with new concepts, like the store-in-store concept, whereby the shops offer space to various designers. Despite the struggle to create a new identity, department stores still account for a substantial share of table- and kitchenware sales. Most department stores offer a wide range of both major brands and private labels. They are generally situated in the mid- and high-priced segment of the market. Leading department stores in Europe are Karstadt/Quelle and Galeria Kaufhof in Germany, John Lewis and Allders in the UK, El Corte Ingls in Spain, Le Printemps in France and Bijenkorf and Vroom & Dreesman in The Netherlands. Most of these stores are restricted mainly to their country of origin. Variety stores are one of the most important formats for the sales of table- and kitchenware. Traditionally, the variety stores offer a wide range of cheap products at inner-city locations. However, due to fierce competition from supermarkets/hypermarkets and discount stores, it is no longer viable to concentrate solely on cheap products. Consequently, variety stores also need to redefine themselves. Leading variety stores in Europe include Woolworth GmbH & Co
CBI MARKET SURVEY: THE TABLEWARE, KITCHENWARE AND OTHER HOUSEHOLD ARTICLES MARKET IN THE EU and Strauss Innovation in Germany, Marks & Spencer in the United Kingdom, Monoprix/Prisunic and Tati in France, Upim and La Standa in Italy and Blokker, Marskramer, Novy, Xenos and Hoyng in The Netherlands. Note that Woolworth has gone into receivership in the UK, but not in Germany. Grocery multiples Hyper- and supermarkets are increasingly tapping into the table- and kitchenware market. They generally tend to stock low-priced basic products. There is, however, a difference between hyper- and supermarkets. Hypermarkets sell a more comprehensive range of tableand kitchenware, whereas supermarkets mostly offer a limited range, such as mugs and other small household products, which are mostly private-labelled. Both formats cater to an increasing share of shelf space for non-food articles like compact discs, table linen, napkins, candles, pots and pans, cutlery and other kitchen utensils. According to an article in TDC Trade, this is mainly because non-food products offer better margins than the standard grocery lines. Furthermore, supermarkets and hypermarkets mostly position table- and kitchenware as impulse purchases through cross-merchandising with core grocery items. For example, woks are displayed next to prepared stir-fry vegetables, sauces and noodles. It is expected that the importance of the grocery multiples will increase, as consumer lifestyles become busier and demand for convenience rises. Discounters Discounters are another important format for retailing table- and kitchenware. These retailers often operate from low-rent locations. Low-price with no-frills is the most important driver in this concept. Discounters are playing an increasingly important role. The economic downturn in the first halve of this decennium has been a significant trigger for the success of this type of format. Discounters are very popular in Germany, where Aldi and Lidl take a significant share of the retail market. According to Euromonitor, these discounters carry a limited total of 600 to 1,200 products, whereas in a hypermarket the product range can reach 30,000 products. The discounters generally have special weekly offers regarding non-food items like table- and kitchenware, sold at extremely competitive prices. Other Next to the above-mentioned formats, there is a variety of other formats selling table- and kitchenware, such as mail order, Internet sales, door-to-door selling, party plans and company-owned outlets. The market share of these formats, however, tends to be limited. Several manufacturers like Richard Ginori and Waterford-Wedgwood are selling their products directly through the Internet. Also, licensed third-parties selling through the Internet is becoming common practice. However, companies like Tupperware still sell mainly through door-to-door selling and party plans. The company became known world-wide with the socalled Tupperware parties, through which the products were sold extensively.
CBI MARKET SURVEY: THE TABLEWARE, KITCHENWARE AND OTHER HOUSEHOLD ARTICLES MARKET IN THE EU Figure 3.2 Distribution of table- and kitchenware by format
Broad
Grocery multiples Carrefour (F) Albert Heijn (NL) Kaufland (G) Alcampo (SP) Furniture stores Conforama (F) Divani & Divani (I) Porta (G) Merkamueble (SP) MFI Furniture (UK)
Department stores KarstadtQuelle (G) Galeria Kaufhof (G) John Lewis (UK) Allders (UK) El Corte Ingls (SP) Vroom & Dreesman (NL)
Product Mix
Variety stores Woolworth (G) Marks & Spencer (UK) Monoprix/Prisunic (F) Tati (F) Upim (I) Blokker (NL)
Directly-owned Waterford-Wegdwood (UK) Richard Ginori (I)
Category killer IKEA (All) Narrow
Specialists Habitat (F) Allders at Home (UK)
Mass
Premium
Source: Based on information derived from different sources, including KeyNote, Euromonitor and company sites
Distribution channels for exporters from developing countries Traditionally, exports originating in developing countries transit through a set of intermediaries like agents and importers and, in some cases, stock-keeping wholesalers, who in turn market the exported products to wholesalers or retailers. These long distribution lines are mostly caused by the distance between the exporter and his export market and, in most cases, the relatively small size of the production in developing countries. Furthermore, a lack of information concerning the export market makes exporting a hazardous venture. The disadvantages of working through a large number of intermediaries include poor knowledge of market trends, inability to gain competitive advantage by adapting the product to specific customer needs and, of course, the margin lost at each stage of the distribution chain. The most important channels for developing country exporters are discussed below. Agents / sales offices Agents usually have a good knowledge of distribution structures and consumer behaviour. Most agents represent more than one manufacturer. Some foreign manufacturers have their own sales office in Europe or elsewhere. This is advisable if a manufacturer wants to make sure that his products are properly advertised and distributed. However, only the larger companies, which cover a substantial part of the market, maintain their own offices. The
CBI MARKET SURVEY: THE TABLEWARE, KITCHENWARE AND OTHER HOUSEHOLD ARTICLES MARKET IN THE EU problem of working through an agent is, however, that the manufacturer is totally dependent on the agent and has to rely on the quality of the agent's knowledge, commitment and selling ability. Importers/wholesalers Importers/wholesalers are familiar with local markets and can supply considerable information, assistance and guidance to the overseas manufacturer, examples being the administration of import and export procedures and holding of stock, in addition to the primary business of buying and selling. Furthermore, they have strong relationships with suppliers and buyers all over the world. These intermediaries have long-established links with their customers and are in a better position (than foreign processors) to know the requirements of the local market and of individual end-users. Retailers Most large retailers, for example IKEA, buy tableware, kitchenware and other household articles directly from foreign suppliers. This may involve intermediary activity by a selling agent on behalf of the manufacturer or a buying agent on behalf of the (multiple) retailer. In the country of origin, most buyers prefer the lines between manufacturer and themselves to be as short as possible. Short communication lines create better control over production and deliveries. It is particularly significant when a fashion trend takes hold, involving fierce competition between retailers offering lower prices. According to sector specialists, retailers increasingly provide opportunities to developing country exporters. As retailers often organise themselves in buying groups, they are able to buy larger quantities. Furthermore, due to the current economic crisis, buyers demand smaller orders, so retailers also offer opportunities in this sense. However, targeting retailers directly requires investment in product design, and the ability to transport the products to Europe. A wholesaler or importer often has its own design department and an exporter can produce a tailor-made product for these players. Yet, when targeting a retailer, you have to develop and design your own product range. 3.2 Price structure
Different prices and margins apply throughout the various trade channels. Prices increase significantly along the value chain. In addition, the table- and kitchenware market consists of a wide variety of products. It includes cutleries, metalware, plasticware, woodware, glassware, ceramicware and china & porcelain. Therefore, it is not feasible to define or give advice on prices for individual products in this survey: the manufacturers will have to research the different market segments, distribution channels and criteria (i.e. brand) before attempting to access the EU market. In general, prices at the final consumer destination (i.e. wholesalers and department stores) do not vary much across Europe. Table 3.1 describes three different mark-ups, low, medium and high. The effect of low, medium and high margins on the retail price, based on the same CFR for three different products is shown in the table. A multiplier of between 2 and 3 on the manufacturers or importers price should be used to calculate an appropriate final consumer price. The height of this multiplier is influenced by several factors, among them: Degree of risk (highly innovative, new brand, etc.) Volume of business (turnover) Functions or marketing services rendered (advertising, etc.) General economic conditions (booming or depressed business) Competition Exclusiveness Velocity of stock turnover
CBI MARKET SURVEY: THE TABLEWARE, KITCHENWARE AND OTHER HOUSEHOLD ARTICLES MARKET IN THE EU Table 3.1 Calculation schedule: prices and margins
FOB Manila C&F Rotterdam/Amsterdam Import duties charges on C&F basis* Handling charges, transport, insurance and bank service Subtotal: Importers/wholesaler's margin (20/30/40%) Subtotal: Retailer's margin (40/50/60%) Net selling price Value added tax (VAT) 19% of net selling Gross selling price (consumer price) ratio consumer price/FOB ratio consumer price/C&F * Between 0 and 11% of C&F value Low Medium 90.00 90.00 100.00 100.00 pm* pm* 6.00 106.00 26.50 132.50 88.33 220.83 41.96 262.79 2.92 2.63 6.00 106.00 45.43 151.43 151.43 302.86 57.54 360.40 4.00 3.60 High 90.00 100.00 pm* 6.00 106.00 70.67 176.67 265.00 441.67 83.92 525.58 5.84 5.26
The multiplier has decreased in the last decade, caused by factors like increasing competition at all levels in the distribution chain, further retail concentration and sales chain integration. When selling directly to a retailer, the price margin for the exporter is higher than when selling to a wholesaler for example. To give an idea, when using the traditional trade channels, the producer price is around 1/5th to 1/7th of the consumer end price, whereas it is 1/3rd to 1/4th of the consumer end price when selling directly to retailers. 3.3 Useful sources Exim Info - http://www.eximinfo.com A list of European importers of houseware, kitchenware and tableware can be purchased from Exim Info. Select Houseware & Kitchenware on the left side of the screen and then choose Directory of 550 European Importers of Houseware, Kitchenware & Tableware. FEC Federation of the European Cutlery, Flatware, Holloware and Cookware Industries http://www.fecinfo.org information on key manufacturers in the EU. In order to obtain more information on the EU market, it is worth to contacting importers/wholesalers or visit their websites. Some websites are presented below. In addition, a list of trade channels is presented in the individual country surveys.
Important table- and kitchenware importers/wholesalers in the EU: ARC Distribution France - http://www.arc-intl.com Sandra Rich Gmbh - http://www.sandrarich.de Kela - http://www.kela.de Pengo Spa - http://www.pengospa.it Koopman International BV - http://www.koopmanint.com Edelman BV - http://www.edelman.nl Billiet Trading Company - http://www.billiet.be
TRADE: IMPORTS AND EXPORTS
Trade statistics given in this chapter are derived from Eurostat, which bases its statistics on information from the Customs and from EU companies. It is worth noting that, in the case of intra-EU trade, not all transactions are registered, such as those made by smaller companies and transactions from non-EU sources (see remarks on trade statistics in Appendix A). On the other hand, figures for trade between the EU and the rest of the world (Extra-EU) are accurately registered and are, therefore, more precisely represented in these statistics. Nevertheless, these statistics must be treated with extreme caution and are only intended to give an indication of trade flows in the international tableware, kitchenware and other household articles market. Please note that figures on glassware are unreliable for the years 2004 and 2006, and are therefore replaced by figures from 2003 and 2005 respectively, in order to give an accurate picture of the trend in imports and exports over the years. Furthermore, the figures on the imported and exported volume of glassware in 2008 are inconsistent or unavailable for several countries, which means that the actual volume in 2008 is likely to be higher. 4.1 Total EU imports
The EU imported 12 billion / 4.4 million tonnes of table- and kitchenware in 2008 as it can be seen in Table 4.1 below. Between 2004 and 2008, these imports increased significantly by 4.3% annually in terms of value, and by 4.6% annually in terms of volume. This increase only holds for imports from intra-EU countries and developing countries, as imports from extra-EU countries decreased by 1.7% annually on average for the same review period. The supplies from developing countries to the EU increased at a substantial rate, higher than the supplies from intra-EU countries. These developments are in line with the decreasing production of table- and kitchenware in the EU, which leads to an increase in imports, in particular from developing countries, since the latter are able to produce at relatively low costs. Furthermore, note that the West-European suppliers also re-export products from developing countries to other West-European countries. In 2008, developing countries accounted for 39% of the total supplies to the EU, while intra-EU countries accounted for 55% of the supplies. The leading developing country supplier which is also the largest supplier of table- and kitchenware to the EU is China, accounting for 31% of all imports. EU imports from this country increased by 16% annually, both in terms of value and volume during the review period. Other leading suppliers in developing countries were Turkey, Thailand and India, accounting for respective shares of 2.7% 1.4% and 1.3% of the total EU imports. Imports from Turkey and India increased substantially during the review period, by 21% and 5% respectively, while those from Thailand decreased by 4.1% annually. The second largest supplier is Germany, accounting for 11% of the total EU supplies, and showing an average annual growth rate of 8.4% in terms of value and 12% in terms of volume for the reviewed period. After Germany, other leading suppliers to the EU were Italy, France Belgium and The Netherlands, accounting for respective shares of 8.2%, 6.8%, 5.1% and 4.8%. Annual imports from all these countries increased in terms of value between 2004 and 2008, with France showing a substantial increase by 14% in terms of value and 46% in terms of volume.
CBI MARKET SURVEY: THE TABLEWARE, KITCHENWARE AND OTHER HOUSEHOLD ARTICLES MARKET IN THE EU Table 4.1 EU imports of tableware, kitchenware and other household articles 2004-2008, million / 1,000 tonnes
2004** value volume 2006*** value volume value 2008 Average Volume**** annual % change in value
Total EU, of which from Intra-EU Extra-EU ex.DC* DC*
9,886 6,061 764 3,062
3,696 2,087 162 1,446
10,926 6,327 708 3,892
3,818 11,702 1,832 6,411 146 713 1,840 4,578
4,416 2,254 159 2,003
4.3% 1.4% -1.7% 11%
Source: Eurostat (2009) *Developing countries ** Includes glassware figures from 2003 *** Includes glassware figures from 2005 ****The imported volume of 2008 is actually higher, as for some countries the imported volume of glassware is inconsistent for this year.
The leading EU importers are Germany, France and the United Kingdom, together accounting for 43% of the total EU imports. Imports by Germany and France showed an increase (in terms of value) during the review period, by annual average rates of 3.4% and 5.4% respectively, while imports by the UK decreased by 0.8% annually. EU countries which showed a very large increase in their imports of table- and kitchenware in terms of value were EastEuropean countries, such as Poland (17%), Romania (30%), Slovakia (18%) and Bulgaria (17%). Also the Baltic States (Latvia and Lithuania) showed a considerable increase in their imports, but these countries are still among the smallest importers in the EU. 4.2 EU imports per product group
This section discusses the total EU imports per product group falling under the tableware, kitchenware and other household articles covered in this survey, and developments therein. For information on imports by the individual EU member states, please refer to the CBI surveys covering the tableware, kitchenware and other household articles market in the individual EU member states. The EU imports of table- and kitchenware for 2008 consisted of, metalware (27%), plasticware (26%), glassware (19%), cutlery (10%), china & porcelain (9.7%), ceramicware (6.3%), and woodware (2.2%). Imports of all product groups increased in value terms during the review period, with the strongest increase in imports of plasticware (6.4% annually). The only decrease observed is in the imported volume of cutlery (7.0% annually). Metalware Metalware is the largest product group within table- and kitchenware products imported by the EU. The total EU imports of metalware amounted to 3.1 billion / 1.0 million tonnes in 2008. Between 2004 and 2008, these imports increased steadily by 5.0% annually in terms of value and 9.5% annually in terms of volume. China, Italy and Germany were the leading supplying countries, accounting for respective shares of 39%, 12% and 10% of total EU imports of metalware. Imports (in terms of value) from these countries increased during the review period, with China showing a significant increase of 11% annually in terms of value and 8.3% annually in terms of volume, between 2004 and 2008. Several East-European countries also saw a large increase in their annual supplies of metalware in terms of value, such as Poland, Czech Republic and Slovakia, by respective annual growth rates of 33%, 22% and 15% between 2004 and 2008.
CBI MARKET SURVEY: THE TABLEWARE, KITCHENWARE AND OTHER HOUSEHOLD ARTICLES MARKET IN THE EU Table 4.2 EU imports and leading suppliers of metalware 2004- 2008, share in % of value
2004 mln Total EU, of which from Intra-EU Extra-EU ex. DC* DC* 2,557 1,378 184 995 2006 mln 2,767 1,419 145 1,202 2008 Leading suppliers to EU in 2008 mln Share in % 3,112 1,515 Italy (12), Germany (10), France (5.6), The Netherlands (4.2), Belgium(4.0), 147 Taiwan (1.4), Switzerland (1.3), Hong Kong (0.7), USA (0.6), South Korea (0.3) 1,449 China (39), India (3.0), Turkey (1.9), Thailand (0.9), Vietnam (0.7), Ukraine (0.4), Morocco (0.2),Serbia (0.2), Brazil (0.1) Share (%)
49 4.7 47
Source: Eurostat (2009)
*Developing countries Developing countries accounted for 47% of the supplies of metalware to the EU, which was slightly lower than the share of intra-EU countries. EU imports from developing countries amounted to 1.4 billion / 421 thousand tonnes in 2008. Between 2004 and 2008, these imports increased by 9.9% annually in terms of value and 6.8% annually in terms of volume. This increase was, among other reasons, a result of a decline in imports from extra-EU countries. While supplies by developing countries were experiencing a growth, the supplies from extra-EU countries decreased by 5.4% annually in terms of value during the review period. After China, the other leading DC suppliers of metalware to the EU were India and Turkey, as shown in the table 4.2 above. Imports from India increased by 4.8% annually, while imports from Turkey decreased by 1.3% annually in the period under review. Plasticware The second largest product group imported by the EU is plasticware, of which the EU imported 3.0 billion / 919 thousand tonnes in 2008. Between 2004 and 2008, the EU imports of plasticware increased by an average annual rate of 6.4% in terms of value, and of 5.0% in terms of volume. China, Germany, Italy and Belgium were the leading suppliers of plasticware to the EU, accounting for respective shares of 20%, 11%, 10% and 9.9%. Except from Belgium, annual imports from these countries increased during the review period, with China showing a substantial increase in supply of 13% annually in terms of value. Imports from Belgium decreased by 1.0% annually, during the review period. Several East-European countries also show a large increase in their imports of plasticware, specifically Poland, the Czech Republic, Hungary and Romania. Table 4.3 EU imports and leading suppliers of plasticware 2004- 2008, share in % of value
2004 mln Total EU, of which from Intra-EU Extra-EU ex. DC* DC* 2,357 1,657 238 462 2006 mln 2,856 2,021 252 583 2008 Leading suppliers to EU in 2008 mln Share in % 3,024 2,043 Germany (11), Italy (10), Belgium (9.9), (10), France (7.2), The Netherlands (5.2) 256 Switzerland (2.0), USA (2.0), Taiwan (1.7), Israel (1.1), Hong Kong (0.7) 726 China (20), Turkey (1.6), Thailand (0.9), India (0.6), Malaysia (0.4), Vietnam (0.3), Indonesia (0.1), Morocco (0.1) Share (%)
68 8.5 24
Source: Eurostat (2009) *Developing countries
The EU countries are the dominant suppliers of the EU plasticware imports. This is largely due to the economies of scale, which enable the manufacturers to produce at comparatively low cost. In 2008, EU countries supplied 68% of the plasticware requirements. However, the share
CBI MARKET SURVEY: THE TABLEWARE, KITCHENWARE AND OTHER HOUSEHOLD ARTICLES MARKET IN THE EU of developing countries is increasing, as EU imports from developing countries increased at a higher average annual growth rate (in terms of value) than imports from intra-EU countries (12% compared to 6.4%). After China, the other leading DC suppliers of plasticware to the EU market were Turkey and Thailand. Other countries can be seen in table 4.3 above. While imports from Turkey increased substantially, by 18% annually in value and 9.8% annually in volume between 2004 and 2008, imports of plasticware from Thailand decreased by 1.1% in value and 9.6% in volume for the same review period. Emerging suppliers, which still have a low share in supplies to the EU but show a high average annual growth rate, are the Czech Republic (with a growth rate of 21%), Latvia (63%), Hong Kong (29%), Romania (38%), Bulgaria (26%), Lithuania (51%), Cyprus (48%), Hungary (15%), India (19%), and Vietnam (17%). Glassware In 2008, the EU imported 2.3 billion of glassware. Between 2003 and 2008, the imports increased by 0.9% annually on average in terms of value. As noted in the introduction of this chapter, the recorded volume of glassware is not reliable for 2008, and therefore figures on this will not be given. The leading suppliers of glassware to the EU are China (19%), France (13%) and Germany (10%). Imports from China and Germany increased, by 13% and 2.7% annually between 2003 and 2008, while imports from France decreased by 4.3% annually in this period. An emerging supplier is Bulgaria, with an average annual growth rate of 69% in the review period. Table 4.4 EU imports and leading suppliers of glassware 2003 - 2008, share in % of value
2003 mln Total EU, of which from Intra-EU 2,189 1,599 2005 mln 2,180 1,507 2008 Leading suppliers to EU in 2008 mln Share in % 2,269 1,491 France (13%), Germany (10%), Share (%)
66%
Extra-EU ex. DC*
133
121
DC*
458
551
Italy (7.1%), Poland (5.7%), Netherlands (5.3%) 127 Liechtenstein (3.0%), USA (0.7%), Switzerland (0.6%), Russia (0.5%), Taiwan (0.3%) 650 China (19%), Turkey (6.8%), India (0.7%), Thailand (0.4%), Brazil (0.4%), Indonesia (0.3%), Mexico (0.2%), Ukraine (0.1%), Belarus (0.1%), Serbia (0.1%)
5.6%
29%
Developing countries accounted for a share of 29% in the imports by the EU, although China already accounted for 19%. EU imports from developing countries increased by 9.2% annually on average during the review period, while imports from EU member states decreased slightly. Next to China, other developing country suppliers were Turkey, India, Thailand and Brazil. Imports Turkey and India increased by 1.1% and 2.0% annually respectively between 2003 and 2008, while imports from Thailand and Brazil decreased by 3.2% and 7.7% annually respectively in this period. Cutlery In 2008, the total EU imports of cutlery amounted to 1.2 billion / 178 thousand tonnes. Between 2004 and 2008, these imports increased by 5.2% annually on average in terms of value while in terms of volume imports declined by 7.0% annually, indicating an increased import price. The leading supplier of cutlery to the EU market is China, followed by Germany and The Netherlands. Annual imports from all these countries declined in terms of volume between 2004 and 2008, with the largest decrease seen in The Netherlands, by 30%.
CBI MARKET SURVEY: THE TABLEWARE, KITCHENWARE AND OTHER HOUSEHOLD ARTICLES MARKET IN THE EU However, in terms of value, the annual imports from these countries increased during the review period, by 7.1%, 5.6%, and 25% respectively. Poland, the Czech Republic and Romania also show a large increase in their imports of cutlery, though still accounting for a small share of the EU total imports. Table 4.5 EU imports and leading suppliers of cutlery 2004 - 2008, share in % of value
2004 mln Total EU, of which from Intra-EU Extra-EU ex. DC* DC* 961 364 126 471 2006 mln 1,084 406 118 559 2008 Leading suppliers to EU in 2008 mln Share in % 1,175 446 Germany (12), The Netherlands (7.8), Italy (3.3), France (3.0), Belgium (3.0) 109 Switzerland (3.8), Japan (1.9), USA (1.1), Hong Kong (1.0), Taiwan (1.0) 620 China (45), Vietnam (4.5), India (1.1), Thailand (0.8), Brazil (0.4), Indonesia (0.3), Pakistan (0.3), Turkey (0.1), Morocco (0.1) Share (%)
38 9.3 53
Developing countries played a more important role in supplying cutlery to the EU market, than the EU member states in 2008. The developing countries accounted for 53% of total EU imports, with supplies amounting to 620 million / 125 thousand tonnes. Between 2004 and 2008, these imports increased by 7.1% annually in terms of value, while they decreased by 3.8% annually in terms of volume. After China, the other leading DC suppliers of cutlery to the EU market were Vietnam and India. Other countries can be seen in table 4.5 above. Imports from both countries increased considerably in the review period, by annual average rates of 20% and 7.5% in terms of value respectively. China & porcelain Between 2004 and 2008, the EU imports of china & porcelain increased by 3.7% annually in terms of value and 6.5% annually in terms of volume, amounting to 1.1 billion / 536 thousand tonnes in 2008. Table 4.6 below shows the most important suppliers of china & porcelain to the EU. Just as with the above-discussed products, China is the leading supplier of this product group to the EU market, accounting for 40% of the total EU imports. Moreover, imports from China increased significantly, by 34% annually in terms of value and nearly 28% annually in terms of volume between 2004 and 2008. Germany, France and the UK, followed after China. Imports from all these countries increased during the review period. Table 4.6 EU imports and leading suppliers of china & porcelain 2004 - 2008, share in % of value
2004 mln Total EU, of which from Intra-EU 980 604 2006 mln 1,123 582 2008 Leading suppliers to EU in 2008 mln Share in % 1,132 532 Germany (15), France (4.0), United Kingdom (3.7), Poland (3.1), The Netherlands (2.8) 45 U.A. Emirates (0.9),Switzerland (0.7), Norway (0.6), Japan (0.5), Hong Kong (0.4) 555 China (40), Turkey (2.7), Bangladesh (1.5), Thailand (1.5%), Indonesia (1.2), Sri Lanka (0.7), Croatia (0.4) India (0.4), Tunisia (0.6), Malaysia (0.3) Share (%)
47
Extra-EU ex. DC*
45
43
4.0
DC*
331
498
49
CBI MARKET SURVEY: THE TABLEWARE, KITCHENWARE AND OTHER HOUSEHOLD ARTICLES MARKET IN THE EU Developing countries accounted for 49% of the supplies to the EU, (with China supplying 40% alone), which was slightly higher than the supplies from the EU member states. During the review period, imports of this product group from developing countries increased considerably, by 14% annually in terms of value and 12% annually in terms of volume. After China, other leading DC suppliers were Turkey, Bangladesh and Thailand, as can be seen in the table 4.6 above. Imports from Turkey and Bangladesh increased during the review period, while imports from Thailand decreased considerably, by 10% annually in value. Furthermore, imports from Poland and the Czech Republic decreased in terms of value by 10% and 15% annually respectively during the review period. Ceramicware Ceramicware accounted for 6.3% of the total EU imports of tableware, kitchenware and other household articles in 2008. In that year, the EU imported 738 million / 456 thousand tonnes of ceramicware. Between 2004 and 2008, these imports increased by 3.8% annually on average in terms of value, and by 1.8% annually on average in terms of volume. The leading supplier of ceramicware to the EU market in 2008 was China, accounting for 43% of total EU imports. Furthermore, EU imports from this country increased significantly during the review period, by 39% annually in terms of value and 33% annually in terms of volume. Portugal, Germany and Thailand were the other leading suppliers of ceramicware to the EU market. Imports from Portugal and Thailand decreased considerably in terms of value, by respective rates of 12% and 4.6% annually during the review period, while Germanys supplies increased by 7.7% in value. Some East-European countries also showed a significant average annual growth (in terms of value) in their imports of ceramicware during the review period; these were Poland (5.2%), Czech Republic (15%), Hungary (9.5%) and Slovakia (27%). Others showed a considerable decrease, such as Romania (11%), Slovenia (36%) and Bulgaria (7.8%). Table 4.7 EU imports and leading suppliers of ceramicware 2004 - 2008, share in % of value
2004 mln Total EU, of which from Intra-EU 636 374 2006 mln 694 298 2008 Leading suppliers to EU in 2008 mln Share in % 738 286 Portugal (8.2), Germany (6.5), Belgium (3.8), United Kingdom (2.9), Romania (2.8) 20 Hong Kong (0.8), Taiwan (0.5), USA (0.5), Japan (0.4), South Korea (0.2) 432 China (43), Thailand (7.6), Turkey (2.9), Indonesia (1.4), Vietnam (0.9), Colombia (0.5), Tunisia (0.4), Morocco (0.2), Malaysia (0.2), India (0.2) Share (%)
39
Extra-EU ex. DC* DC*
31 231
21 375
2.8 58
*Developing countries Developing countries accounted for a 59% share of the total imports of ceramicware by the EU. Furthermore, EU imports from developing countries increased by 17% annually in terms of value and 16% annually in terms of volume between 2004 and 2008, while imports from EU and non-EU member states decreased substantially in this period. After China and Thailand, the other leading DC suppliers of ceramicware are those presented in table 4.7 above. Woodware The woodware import market in the EU is by far the smallest of the tableware, kitchenware and other household articles market, representing 2.2% of the value of the total imports by the EU. In 2008, the EU imports of woodware reached a value of 253 million / 113 thousand tonnes. Between 2004 and 2008, these imports increased by 5.2% annually in terms of value, and by 8.3% annually in terms of volume. Table 4.8 presents the EU imports and suppliers of
CBI MARKET SURVEY: THE TABLEWARE, KITCHENWARE AND OTHER HOUSEHOLD ARTICLES MARKET IN THE EU woodware. China was the leading supplier of this product group to the EU market, accounting for 43% of the total EU imports for 2008. Furthermore, imports from China increased considerably, by 15% annually in terms of value during the review period. Germany, Thailand, Poland and Vietnam followed after China. Imports from Germany and Vietnam increased significantly in terms of value by 20% and 13% annually respectively, while from Thailand and Poland imports declined by respective rates of 18% and 1.2% annually. Furthermore, annual imports by East European countries increased during the review period such as Romania (3.9%), Czech Republic (8.6%), Bulgaria (7.0%), and Ukraine (9.1%). Table 4.8 EU imports and leading suppliers of woodware 2004 - 2008, share in % of value
2002 mln Total EU, of which from Intra-EU 207 85 2006 mln 224 94 2008 Leading suppliers to EU in 2008 mln Share in % 253 99 Germany (8.0), Poland (4.6), The Netherlands (3.2), Romania (3.0) Italy (2.8), 8 Hong Kong (0.8), USA (0.6), Taiwan (0.6), Japan (0.4), Switzerland (0.3) 146 China (43), Thailand (5.9), Vietnam (4.5), India (0.9), Tunisia (0.8), Ukraine (0.8), Indonesia (0.6), Philippines (0.4), Turkey (0.3) Albania (0.2) Share (%)
39
Extra-EU ex. DC* DC*
7 114
6.5 123
3.1 58
*Developing countries Developing countries accounted for a share of 58% in the supplies of woodware to the EU, which was higher than the total supply from the EU member countries. Furthermore, between 2004 and 2008, annual imports from developing countries increased by 6.4% annually in terms value and 4.9% annually in terms of volume, which was higher than the increase from the EU member states. A list of the leading developing country suppliers of woodware to the EU market is seen in table 4.8 above. An emerging supplier is Tunisia, with an average annual growth rate in its supplies of 23% during the review period. 4.3 The role of developing countries
This section discusses the role of developing countries in the tableware, kitchenware and other household articles market in the EU. By developing countries, we mean the countries on the OECD DAC list, which can be found in Appendix C. In 2008, developing countries accounted for 39% of the total EU imports of tableware, kitchenware and other household articles. Between 2004 and 2008, the EU imports from developing countries increased more than the imports from EU member states, indicating a growing role of importance in this market. It should, however, be noted that China accounts for the lions share of the EU tableware, kitchenware and other household articles imports. Of the imports deriving from developing countries, 79% originated in China. Table 4.9 presents the imports of the EU member states from developing countries.
CBI MARKET SURVEY: THE TABLEWARE, KITCHENWARE AND OTHER HOUSEHOLD ARTICLES MARKET IN THE EU Table 4.9 Imports of table- and kitchenware from developing countries 2004-2008, million / 1,000 tonnes
2004* 2006** value volume value volume 2008 value volume Average annual change in value Share in total imports of the country 39% 21% 17% 9.9% 9.5% 8.8% 7.7% 6.4% 3.3% 2.7% 2.5% 2.4% 1.6% 1.4% 1.2% 0.7% 0.7% 0.6% 0.6% 0.4% 0.4% 0.3% 0.2% 0.2% 0.2% 0.1% 0.1% 0.0%
Total 3,062 Germany 610 UK 669 France 287 Italy 275 The 286 Netherlands Spain 232 Belgium 152 Poland 73 Sweden 93 Denmark 61 Greece 71 Romania 23 Austria 39 Czech Rep. 46 Finland 16 Portugal 22 Ireland 19 Hungary 30 Bulgaria 13 Slovakia 9.4 Lithuania 9.0 Cyprus 7.5 Slovenia 9.2 Latvia 3.1 Estonia 4.4 Malta 2.2 Luxembourg 0.4
1,446 3,892 239 773 306 758 121 388 135 392 134 318 121 69 56 36 23 39 32 22 25 5.9 14 7.7 21 14 5,.4 6.1 3.9 4.3 1.9 2.1 0.5 0.3 322 238 103 111 95 83 42 55 47 25 24 26 24 18 5.7 12 9.6 11 5.5 2.9 2.0 0.8
1,840 302 334 173 213 152 175 108 70 44 32 48 42 29 24 8.0 16 11 16 16 4.3 7.8 5.2 4.8 3.2 1.4 1.0 0.3
4,578 957 791 454 433 401 355 294 150 124 116 109 72 64 53 33 33 28 25 21 16 15 11 11 7.1 3.1 2.3 0.3
2,003 355 341 189 204 176 176 117 81 46 34 59 64 33 27 9.1 17 12 14 17 7.5 8,2 6.2 4.4 3.6 1.2 1.2 0.4
11% 12% 4.3% 12% 12% 8.8% 11% 18% 20% 7.3% 18% 11% 33% 13% 3.7% 20% 10% 10% -4.6% 13% 14% 14% 11% 3.8% 24% -8.1% 1.8% -6.2%
Source: Eurostat (2009) * Includes glassware figures from 2003 ** Includes glassware figures from 2005
In 2008, Germany and the UK imported the largest amount of tableware, kitchenware and other household articles from developing countries, and together they accounted for 38% of the total imported value from developing countries by the EU. Imports from DCs by Germany and the UK accounted for respective shares of 45% and 57% of their individual total tableware, kitchenware and other household items, which was above the EU average. Almost all countries saw an increase in their imports from developing countries, except for some smaller EU importers, namely Hungary, Estonia and Luxembourg. The largest average annual increase was for Romania, of which the imports from DCs increased by 33% annually on average during the review period. Many emerging countries in Asia have set up their own tableware, kitchenware and other household articles industry, strongly dedicated to low-priced exports. At the same time, many EU manufacturers have shifted their production to these countries, to benefit from low production costs. They combine their efficient and high-quality production systems with the low labour costs in these countries. This development has offered the local manufacturers in developing countries a chance to copy the new technologies and production systems. Therefore, the quality of their products has improved considerably. Especially China and, to a lesser extent, Thailand have taken advantage of these developments and therefore pose an increasing threat to EU manufacturers. The other developing countries (excluding China and Thailand) are currently also expanding their exports, although it will take a long time for them
CBI MARKET SURVEY: THE TABLEWARE, KITCHENWARE AND OTHER HOUSEHOLD ARTICLES MARKET IN THE EU to gain a significant position in the international tableware, kitchenware and other household articles trade. Most developing countries do not have well-established tableware, kitchenware and other household articles industries. Production capacity, the level of technology, product innovations and variety in design are limited. Besides, EU manufacturers continue to subcontract to foreign manufacturers in East-European countries and China, which are more flexible in terms of meeting their specific requirements and, in the case of the East European countries, are closer to the sales market. In 2008, ceramicware, woodware and cutlery were the main product groups imported from developing countries, as developing countries accounted for the largest shares in imports of these product groups. On the other hand, metalware was the leading product group in terms of imported value from developing countries. Furthermore, it should be noted that, although being the smallest product group, woodware is a known product sourced in developing countries, mainly because wooden products do not require difficult and expensive production processes. Moreover, the trend of consumer interest in natural materials stimulates demand for woodware. Please note that the imports per product group by individual member states are given in the country surveys. 4.4 Exports
In 2008, the EU exported nearly 11 billion / 2.2 million tonnes of tableware, kitchenware and other household articles. Between 2004 and 2008, EU exports of these products increased by 2.1% annually in terms of value, but decreased by 3.4% annually in terms of volume. Germany, France and Italy are among the leading three exporting countries accounting for respective shares of 19%, 16% and 15% of the total EU exports. The largest exported product groups are glassware (29%), plasticware (24%) and metalware (23%). Table 4.10 EU exports of tableware, kitchenware and other household articles 2004-2008, million / 1,000 tonnes
value Total Germany France Italy Belgium The Netherlands Poland Czech Republic United Kingdom Spain Austria Portugal Denmark Sweden Hungary Slovakia Romania Slovenia Ireland Bulgaria Greece Luxembourg Finland Lithuania Latvia Estonia 2004* Volume 2,557 271 479 443 173 164 189 124 97 172 42 112 26 43 28 26 81 29 8.9 7.4 20 3.0 6.6 4.5 2.8 1.9 2006** value 10,174 1,793 1,676 1,518 833 554 519 490 556 417 320 286 225 258 90 117 118 88 102 17 58 56 49 16 8.0 8.9 volume 2,657 321 469 425 216 148 209 145 101 155 47 107 27 50 28 29 65 32 9.4 15 18 22 6.5 6.0 2.9 3.0 Value 10,555 1,961 1,670 1,533 864 637 553 543 461 441 328 307 257 218 112 103 94 91 73 71 64 60 57 28 21 9.5 2008 volume 2,224 331 257 315 163 138 205 77 88 156 42 105 28 45 27 22 50 29 6.5 83 18 10 6.5 9.2 9.0 4.2
9,698 1,583 1,682 1,530 753 472 474 425 579 429 327 324 215 249 98 86 133 79 115 11 50 16 43 9.7 5.8 7.9
2004* Volume 1.2 0.3 0.4 0.04 2006** value volume 0.9 0.1 0.3 0.02 2008 Value volume 0.6 0.7 0.2 0.04
value
Cyprus Malta Source: Eurostat (2009) * Includes glassware figures from 2003 ** Includes glassware figures from 2005
Countries which have shown a large annual average increase (in value) in their exports are Bulgaria (61%), Luxembourg (39%), Lithuania (30%) and Latvia (38%). Generally, all the EU countries saw an increase in their exports, except for France, the UK, Portugal, Sweden, Romania, Ireland, Cyprus and Malta. Most of the table, kitchenware and other household articles were exported to intra-EU countries, accounting for 65% of the total EU export. The major countries of destination were Germany (11%) and France (10%) for the EU and the USA (7.4%) for extra- EU. 4.5 Opportunities and threats
+ The total imports of tableware, kitchenware and other household articles increased during the review period, which can offer interesting opportunities for exporters in developing countries. Moreover, the share of developing countries also increased during the review period. - It should be noted that, although the share of developing countries in total imports of tableware, kitchenware and other household items into the EU is significant, the major part is accounted for by China. This means that other exporting developing countries have to compete with China, if they wish to penetrate EU markets. + Metalware is the largest product group imported by the EU. Moreover, a large share of the imports originates in developing countries, and this share increased during the review period. + Ceramicware and cutlery were also among product groups which were, for a large share, supplied by developing countries. Furthermore, annual imports of these product groups also increased during the review period. + Although it is of least value compared to other products, woodware is among the most interesting product groups in terms of market share, as about 58% of total EU woodware imports is supplied by developing countries. Furthermore, the annual imports from these countries increased during the review period, indicating the increasing role of developing countries in the EU market. + Germany and the UK import the largest amount of tableware, kitchenware and other household articles from developing countries, which makes the market more attractive for developing country suppliers. + The outsourcing development offers local producers in developing countries a chance to copy the new technologies and production systems, which in turn can bring about an improvement in the quality of their products. - All tableware, kitchenware and other household articles exported to the EU must comply with the EU legislation concerning food-contact materials, which is hardly known among the developing country manufacturers. - Delivery time and consistency in product quality are usually mentioned as bottlenecks, when trading with exporters from developing countries. 4.6 Useful sources EU Expanding Exports Helpdesk - http://exporthelp.europa.eu/ go to: trade statistics Eurostat http://epp.eurostat.ec.europa.eu - official statistical office of the EU go to themes on the left side of the home page go to external trade go to data full view
CBI MARKET SURVEY: THE TABLEWARE, KITCHENWARE AND OTHER HOUSEHOLD ARTICLES MARKET IN THE EU go to external trade - detailed data Understanding eurostat: Quick guide to easy comext http://epp.eurostat.ec.europa.eu/newxtweb/assets/User_guide_Easy_Comext_20080117.p df
PRICE DEVELOPMENTS
Price is an important aspect of the tableware, kitchenware and other household articles sector, but there is such a broad range of items, qualities, materials, and styles, that it is almost impossible, and certainly not meaningful, to give typical prices. Therefore, this chapter will discuss developments which influence the price level, and present the developments in the consumer price level in the EU. 5.1 Price developments
Table 5.1 presents the Harmonised Index of Consumer Prices (HICP) for the glassware, tableware and household utensils market in the EU. The HICP is an indicator of inflation and price stability. The primary goal of the European Central Bank is to maintain stability in the prices, implying the HICP should be around 2% for the medium term. Table 5.1 HICP for glassware, tableware and household utensils in the EU, price index (2005=100)
2004 Total EU Bulgaria Slovenia Estonia Lithuania Denmark Greece Spain Italy Finland Austria Romania Belgium France Slovakia Poland Sweden Luxembourg Hungary The Netherlands Cyprus Portugal Germany Malta Latvia Czech Republic United Kingdom Ireland Source: Eurostat (2009) 98 94 98 96 97 98 97 97 98 99 98 92 98 98 97 98 99 96 97 99 98 98 98 98 94 98 98 98 2006 102 107 103 104 104 102 103 104 102 101 102 107 102 102 104 101 102 103 104 102 102 103 102 103 107 102 102 103 2008 May 2009 109 129 112 123 122 107 111 111 108 107 107 121 109 107 110 108 107 110 119 106 109 108 107 108 135 112 109 109 108 120 120 117 114 114 113 112 112 111 111 110 110 110 109 109 109 108 107 107 106 106 106 105 104 102 104 86
As can be seen in Table 5.1, the average HICP for the EU increased between 2004 and 2008. Between 2007 and 2008, prices increased particularly strongly, which could have been the result of the economic crisis which started in the beginning of 2008. However, in the second quarter of 2009, prices decreased slightly for the first time since the economic crisis, which may be the result of the decreasing power of companies concerning prices. Different developments can be seen for the different member states. Inflation is high in several East-European countries such as Bulgaria, Slovenia and Estonia. West-European countries
CBI MARKET SURVEY: THE TABLEWARE, KITCHENWARE AND OTHER HOUSEHOLD ARTICLES MARKET IN THE EU mostly show average inflation rates. In contrast to the EU average, most of the WestEuropean countries show an increase in the HICP between 2008 and May 2009. The prices of tableware, kitchenware and other household articles fluctuate widely, depending on a variety of factors. Price levels are influenced by: Product type: prices differ between the different materials of which the products are made. Woodware products differ greatly from glassware products, for example. Brands: world-known brands are normally more expensive than simple, cheap products. Products sold by Wedgwood are backed by a tradition which IKEA products do not have. Quality factors: determined by the country of origin, by the quality of the raw material, by the art applied to the products, by tradition and by the method of manufacture. Swedish glassware as well as ceramics from Slovakia, for example, are more expensive than glassware and ceramics from other neighbouring countries, because of the tradition and quality of production. Economic factors: based on supply and demand. The trade depends on the size of the current market situation, the development and trends from previous years, stocks held by traders, processors, final users and the existence of cheaper substitutes. Furthermore, the trade channels, the distances between the manufacturer and the endconsumer, and taxes, have a great influence on the price of a product. It is important from the outset to emphasise that it is difficult to obtain information on the prices which are paid for goods in the country of origin, or even for prices in general. As for most products, no global market price exists. Brokers and traders form the main source of price information. Traditionally, the tableware, kitchenware and other household articles market can be divided into three main price segments: Premium-priced: consisting of high-quality, formal product brands, for example, Alessi and Villeroy & Boch. These products are mostly sold through specialty retailers and department stores. Mid-priced: most of the industrys volume is realised in this segment. These products are mainly sold through department stores and retailers. Low-priced: mostly deriving from Asia or Eastern Europe. These products are mainly sold through discounters and grocery multiples. According to branch experts of NPD Industry, an American research agency, the price levels in the tableware, kitchenware and other household articles market became polarized. Consumers who traditionally shopped in the mid-price segment shifted towards the higher-priced products, called shopping up, as quality and specialty are very important in this segment. The opposite development is also evident, shopping down, meaning consumers are shopping for lower prices. The increasing amount of cheap products deriving from Asia and Eastern Europe drove many EU manufacturers out of the low-priced and mid-priced segment. In turn, many European manufacturers repositioned themselves at the premium end of the market, making this high-priced segment more crowded. However, due the current economic crisis, consumers cut back their spending, in particular in the low-end market segment. Moreover, the very high market segment also faces difficulties, as consumers now buy luxurious products less frequently. According to sector experts, the middle-high market segment provides the best opportunities at this moment. Furthermore, one concern for table- and kitchenware producers at present is the increasing price of raw materials for metalware products. Besides, as a result of the crisis, the strong fluctuations in exchange rates form a threat to developing country suppliers. 5.2 Useful sources
The best way to obtain information about prices and price levels in the EU is by visiting one of the major trade fairs. Alternatively, comparisons can be found in the prices given in catalogues from mail-order houses, large department stores and from Internet sites. Window-shopping in
CBI MARKET SURVEY: THE TABLEWARE, KITCHENWARE AND OTHER HOUSEHOLD ARTICLES MARKET IN THE EU the prospective market place, at several retail shops, is another good way of gaining information about prices. The websites of table- and kitchenware producers in the EU are also useful for obtaining price information. Websites of companies and trade fairs are given in the individual country surveys. Besides, an interesting source of information for price developments is http://epp.eurostat.ec.europa.eu/portal/page/portal/hicp/introduction where information on HICP for EU countries can be found.
MARKET ACCESS REQUIREMENTS
As a manufacturer in a developing country 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 through legislation and through 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 that your trading partners in the EU might request. For information on legislative and non-legislative requirements, go to Search CBI database at http://www.cbi.eu/marketinfo, select Household utensils and the EU in the category search, click on the search button and click on market access requirements. Information on tariffs and quota can be found at http://exporthelp.europa.eu. Packaging, marking and labelling Packaging has the overall purpose to protect products during transportation. Products imported from developing countries have a long distance to travel to reach European markets. Therefore it is of the utmost importance to have your products packaged in a reliable way, to ensure their protection from extreme temperatures, humidity, vibration, shock and damage. In addition, most European distributors and retailers demand that the products are packaged in an attractive, easy-to-handle and self-promoting way. Packing in corrugated boxes with dimensions enabling easy handling and weight (not exceeding 25 kg per carton) is recommended. Wherever possible, the outer cartons should be placed together on pallets to further avoid risks associated with damage during transit. Attractive consumer packing is also very important and it should reflect the design, image, quality and price of the product. Marking and labelling have the main purpose to convey a message to distributors, buyers and consumers. The labels should include information concerning the product as well as information on the originating and destination addresses, contact names and telephone numbers. Appropriate labelling and marking can protect products from being damaged by indicating, for instance, that the item is fragile or it needs to be kept upright. It is important to label individual parcels and packages as well. In general, the label should state material(s) used, qualities, country of origin and, if applicable, size in centimetres or volume in litres, as well as instructions for use. Barcodes are widely used within Europe and it is advisable to label your products, stating both the contents and the article code of the buyer/distributor. Using barcodes is an automatic way of entering product data in the computers. It is not compulsory to use barcodes, nevertheless an increasing share of producers makes use of these codes, making it easier to keep and monitor information concerning the product stock. Check with your importer! Symbols are sometimes used to indicate the qualities of the product, such as food-safe, recyclable, dishwasher-safe, microwave-safe; for example, porcelain or ceramicware should be marked whether or not it is safe to put in the dishwasher and /or microwave. Additional information on packaging can be found at the website of ITC on export packaging: http://www.intracen.org/ep/packaging/packit.htm
OPPORTUNITY OR THREAT?
The current economic crisis, which began in the beginning of 2008, surely forms a threat to developing country exporters, as EU consumers are cutting back their spending. Moreover, they are more focused on buying products which they need, instead of luxury products. However, there are still several developments and trends in the EU market which could provide opportunities for developing country exporters. General opportunities and threats are given at the end of the chapters on consumption, production and trade. Please note that those trends or developments could offer opportunities for certain (developing country) exporters, but at the same time could pose a threat to other exporters. As an exporter, you will need to analyse if the development provides an opportunity or a threat to your business, which will depend on your specific situation. An example of this is the health trend, leading to consumers replacing plasticware by woodware. In general, this is an opportunity for developing country exporters, as woodware is an important product group for them, while they have only a minor role in plasticware trade. However, obviously, to a developing country exporter of plasticware, this would be a threat. Furthermore, the opportunities in the middle-high market segment are opportunities only for those developing country exporters who are able to develop unique and high-quality products. Exporters need to be alert on new market trends and to adapt their designs accordingly. The increased consumer interest in luxury casual products forms a threat to exporters that are currently focussed on low-priced mass production.
PRODUCT CHARACTERISTICS
Product groups This survey analyses the market for tableware, kitchenware and other household articles in the European Union. Naturally, the category is broad and includes a wide range of applications, from storage containers to laundry- and waste-baskets. For the purposes of this report, the EU-market for tableware, kitchenware and other household articles is segmented into seven categories, depending on the material from which they are made. The following segments are distinguished: glassware, ceramicware, china & porcelain, cutlery, plasticware, metalware and woodware. Because of this division, there is some overlap between ceramicware and china & porcelain and between cutlery and metalware. This survey does not include small domestic electrical household appliances such as, for example, coffee makers. A related CBI survey is the one concerning Home decoration and accessories, which covers candles, artificial flowers and fruits, decorative glassware, basketwork and suchlike. We will give a short definition of the seven product groups included in this survey. Most product groups include a number of different products. However, for ease of use and taking into account the extent of information available, the survey does not specify the different products included in each product group. The following product groups are distinguished in this survey: Plasticware Plasticware consists of storage products like cups or containers. It also includes plastic tableware like for example plates, mugs, and jars. Cleaning equipment such as bowls, buckets and drainers are also included in this group. Woodware The smallest segment consists of wooden tableware, kitchenware and other household articles, including products such as chopping boards, bowls, bread bins and spice racks, all made of wood. China & porcelain The china & porcelain segment is closely linked to ceramicware. This could mean that there is some overlap between these segments. China and porcelain is defined as fine semitransparent or white earthenware. It includes dinnerware and individual items of china tableware. Ceramicware Ceramicware includes cookware, such as casseroles and oven-to-tableware. It furthermore consists of non-china ceramics, like regular earthenware and stoneware. Other products, such as mugs, storage jars, jugs and pitchers are also included in this segment. Glassware The glassware segment can be divided into three types of products, each having its own specific purpose. Drinking glasses is the first and one of the largest groups. It includes tumblers, crystal and stemware. The second group is glass cookware, including glass pots, pans and heat-resistant casseroles. The third group is glass tableware, which includes for example glass plates and serving dishes. Metalware The metalware segment includes all types of metals such as silver, silver-plate, stainless steel, hard-anodised steel, aluminium, and so on. Metalware can be divided into four main categories: Cookware, including pots, pans and pressure cookers; Bakeware, including baking trays and sheets; Tableware, including plates as well as hollowware;
CBI MARKET SURVEY: THE TABLEWARE, KITCHENWARE AND OTHER HOUSEHOLD ARTICLES MARKET IN THE EU Accessories, such as bread bins, cocktail shakers, and trivets (three-legged iron stand).
Cutlery Included in the cutlery category are kitchen utensils such as knives, ladles and scissors. It also includes table cutlery like knives, forks and spoons for eating and serving. All types of materials are included, such as metal, silver, silver plate and stainless steel. Although the survey does not specify the different products included in each product group, the different products will be described in the next table, including the related CN codes and Prodcom codes. Table 1 Statistical classification
PLASTICWARE CN code Prodcom code 3924 1000 2524 2320 3924 9090 2524 2370
3924 9019
2524 2350
Description Tableware and kitchenware, of plastics Household articles and toilet articles, of plastics other than regenerated cellulose (excl. tableware, kitchenware, baths, shower-baths, washbasins, bidets, lavatory pans, seats and covers, flushing cisterns and similar sanitary ware) Household articles and toilet articles, of regenerated cellulose (excl. tableware, kitchenware, baths, shower-baths, wash-basins, bidets, lavatory pans, seats and covers, flushing cisterns and similar sanitary ware)
WOODWARE CN code Prodcom code 4419 0010 2051 1200 4419 0090 2051 1200
Description Tableware and kitchenware, of tropical wood as specified in additional note 2 to this chapter3 Tableware and kitchenware, of wood (excl. 4419.00-10)
CHINA & PORCELAIN CN code Prodcom code 6911 1000 2621 1130
6911 9000
2621 1150
Description Tableware and kitchenware, of porcelain or china (excl. ornamental articles, pots, jars, carboys and similar receptacles for the conveyance or packing of goods, and coffee grinders and spice mills with receptacles made of ceramics and working parts of metal) Household and toilet articles, of porcelain or china (excl. tableware and kitchenware, baths, bidets, sinks and similar sanitary fixtures, statuettes and other ornamental articles, pots, jars, carboys and similar receptacles for the conveyance or packing of goods, and coffee grinders and spice mills with receptacles made of ceramics and working parts of metal)
CERAMICWARE CN code Prodcom code 6912 0010 2621 1210
6912 0030
2621 1230
Description Tableware, kitchenware, other household articles and toilet articles, of common pottery (excl. statuettes and other ornamental articles, pots, jars, carboys and similar receptacles for the conveyance or packing of goods, and coffee grinders and spice mills with receptacles made of ceramics and working parts of metal) Tableware, kitchenware, other household articles and toilet articles, of stoneware (excl. baths, bidets, sinks and similar sanitary fixtures, statuettes and other ornamental articles, pots, jars, carboys and similar
3 Note 2: For the purposes of subheadings 44140010, 44181010, 44182010, 44190010, 44201011 and 44209091, "tropical wood" means the following tropical woods: acajou d'Afrique, alan, azob, balsa, dark red meranti, dibtou, ilomba, imbuia, iroko, jelutong, jongkong, kapur, kempas, keruing, light red meranti, limba, mahogany (Swietenia spp.), makor, mansonia, meranti bakau, merbau, obeche, okoum, palissandre de Para, palissandre de Rio, palissandre de Rose, ramin, sapelli, sipo, teak, tiama, virola, white lauan, white meranti, white seraya and yellow meranti.
receptacles for the conveyance or packing of goods, and coffee grinders and spice mills with receptacles made of ceramics and working parts of metal) Tableware, kitchenware, other household articles and toilet articles, of earthenware or fine pottery (excl. baths, bidets, sinks and similar sanitary fixtures, statuettes and other ornamental articles, pots, jars, carboys and similar receptacles for the conveyance or packing of goods, and coffee grinders and spice mills with receptacles made of ceramics and working parts of metal) Ceramic tableware, kitchenware, other household articles and toilet articles (excl. sinks, baths, bidets and similar sanitary fixtures; statuettes and other ornamental articles; pots, jars, etc. for the conveyance or packing of goods; household mills with containers of ceramics and working parts of metal; articles of porcelain or china, common pottery, stoneware, earthenware or fine pottery)
6912 0050
2621 1250
6912 0090
2621 1290
METALWARE CN code Prodcom code 7323 9100 2875 1217
7323 9200
2875 1217
7323 9310
2875 1223
7323 9390
2875 1229
7323 9410
2875 1237
7323 9490
2875 1237
7323 9910
2875 1243
7323 9991
2875 1249
7323 9999
2875 1249
7418 1100
2875 1253
Description Table, kitchen or other household articles, and parts thereof, of cast iron, not enamelled (excl. cans, boxes and similar containers of heading 7310; waste baskets; shovels, corkscrews and other articles of the nature of a work implement; articles of cutlery, spoons, ladles, forks etc. of heading 8211 to 8215; ornamental articles; sanitary ware) Table, kitchen or other household articles, and parts thereof, of cast iron, enamelled (excl. cans, boxes and similar containers of heading 7310; waste baskets; shovels, corkscrews and other articles of the nature of a work implement; articles of cutlery, spoons, ladles, forks etc. of heading 8211 to 8215; ornamental articles; sanitary ware) Articles for table use, of stainless steel (excl. cans, boxes and similar containers of heading 7310; corkscrews, nutcrackers and other articles of the nature of a work implement; articles of cutlery, spoons, ladles, forks etc. of headings 8211 to 8215; ornamental articles; sanitary ware) Table, kitchen or other household articles, and parts thereof, of stainless steel (excl. cans, boxes and similar containers of heading 7310; waste baskets; shovels, corkscrews and other articles of the nature of a work implement; articles of cutlery, spoons, ladles, forks etc. of headings 8211 to 8215; ornamental articles; sanitary ware) Articles for table use, of iron other than cast iron or steel, enamelled, spoons, ladles, forks etc. Of headings 8211 to 8215; ornamental articles (excl. cans, boxes and similar containers of heading 7310; spoons, ladles etc. of heading 8215; ornamental articles) Table, kitchen or other household articles, and parts thereof, of iron other than cast iron or steel, enamelled (excl. cans, boxes and similar containers of heading 7310; waste baskets; shovels and other articles of the nature of a work implement; spoons, ladles etc. of heading 8215; ornamental articles; sanitary ware; articles for table use) Articles for table use, of iron other than cast iron or steel (excl. enamelled articles; cans, boxes and similar containers of heading 7310; corkscrews, nutcrackers and other articles of the nature of a work implement; articles of cutlery, spoons, ladles, forks etc. of headings 8211 to 8215; ornamental articles) Kitchen or other household articles, and parts thereof, of iron other than cast iron or steel other than stainless, varnished or painted (excl. cans, boxes and similar containers of heading 7310; waste baskets; shovels and other articles of the nature of a work implement; ornamental articles; sanitary ware) Table, kitchen or other household articles and parts thereof, of iron, other than cast iron, or steel other than stainless (excl. enamelled, painted or varnished articles; cans, boxes and similar containers in heading 7310; waste baskets; shovels, corkscrews, waffle irons, etc.; articles of cutlery such as spoons, ladles, forks, etc. in heading 8211 to 8215; decorative articles; sanitary ware; articles for table use) Pot scourers and scouring or polishing pads, gloves and the like, of
copper (excl. sanitary ware) Cooking or heating apparatus of a kind used for domestic purposes, nonelectric, and parts thereof, of copper (excl. hot water heaters and geysers) Table, kitchen or other household articles, parts thereof, of copper (excl. pot scourers and scouring or polishing pads, gloves and the like, nonelectric cooking and heating appliances, cans, boxes and similar containers of heading 7419, articles of the nature of a work implement, articles of cutlery, spoons, ladles, etc., ornamental articles and sanitary ware) Pot scourers and scouring or polishing pads, gloves and the like, of aluminium (excl. sanitary ware) Table, kitchen or other household articles, parts thereof, of aluminium, cast (excl. cans, boxes and similar containers of heading 7612, articles of the nature of a work implement, spoons, ladles and other articles of headings 8211 to 8215, ornamental articles, fittings and sanitary ware) Table, kitchen or other household articles, parts thereof, of aluminium, uncast (excl. pot scourers and scouring or polishing pads, gloves and the like, of aluminium, cans, boxes and similar containers of heading 7612, articles of the nature of a work implement, spoons, ladles, forks and other articles of headings 8211 to 8215, ornamental articles, fittings and sanitary ware)
7418 1910
2875 1253
74181990
2875 1253
7615 1100 7615 1910
2875 1257 2875 1255
7615 1990
2875 1257
CUTLERY CN code 8211 1000
Prodcom code
8211 9130 8211 9180 8211 9200
2861 1113 2861 1119 2861 1120
8211 9300 8211 9400 8215 1020
2861 1130 2861 1150 2861 1470
8215 1030
2861 1470
8215 1080
2861 1470
8215 2010
2861 1440
8215 2090
2861 1440
8215 9100
2861 1470
8215 9910
2861 1440
8215 9990
2861 1440
Description Sets of assorted articles of knives of heading no 8211; sets in which there is a higher number of knives of heading no 8211 than of any other article Table knives with handle and fixed blade, of stainless steel Table knives with fixed blade, of base metal (not with handle and blade of stainless steel and excl. butter knives and fish knives) Knives with fixed blades of base metal, incl. handles (excl. straw knives, machetes, knives and cutting blades for machines or mechanical appliances, table knives, fish knives, butter knives, razors and razor blades and knives of heading no 8214) Knives having other than fixed blades, of base metal, incl. handles (excl. razors) Blades of base metal for table knives, pocket knives and other knives of heading no 8211 Sets of spoons, forks or other articles of heading 8215, which may also contain up to an equivalent number of knives, of base metal, containing only articles plated with precious metal Sets of spoons, forks or other articles of heading 8215, which may also contain up to an equivalent number of knives, of stainless steel, containing at least one article plated with precious metal Sets of spoons, forks or other articles of heading 8215, which may also contain up to an equivalent number of knives, of base metal other than stainless steel, containing at least one article plated with precious metal Sets of spoons, forks or other articles of heading no 8215, incl. those with up to an equal number of knives, of stainless steel, containing no articles plated with precious metal Sets of spoons, forks or other articles of heading no 8215, incl. those with up to an equal number of knives, of base metals other than stainless steel, containing no articles plated with precious metal Spoons, forks, ladles, skimmers, cake-servers, fish-knives, butterknives, sugar tongs and similar kitchen or tableware of base metal, plated with precious metal (excl. sets of articles such as lobster cutters and poultry shears) Spoons, forks, ladles, skimmers, cake-servers, fish-knives, butterknives, sugar tongs and similar kitchen or tableware of stainless steel, not plated with precious metal (excl. sets of articles such as lobster cutters and poultry shears) Spoons, forks, ladles, skimmers, cake-servers, fish-knives, butter-
knives, sugar tongs and similar kitchen or tableware of base metals other than stainless steel, not plated with precious metal (excl. sets of articles such as lobster cutters and poultry shears) GLASSWARE CN code Prodcom code 7013 1000 26131360
7013 2210 7013 2290 7013 2810 7013 2890 7013 3311 7013 3319 7013 3391 7013 3399 7013 3751 7013 3759
26131215 26131235 26131253 26131255 26131215 26131219 26131235 26131239 26131253 26131219
7013 3791
26131235
7013 3799
26131239
7013 3710 7013 4110
26131255 26131310
7013 4190
26131330
7013 4200
26131350
7013 4910
26131390
7013 4991
26131390
7013 4999
26131390
Description Glassware of glass ceramics, of a kind used for table, kitchen, toilet, office, indoor decoration or similar purposes (excl. goods of heading 7018, cooking hobs, leaded lights and the like, lighting fittings and parts thereof, atomizers for perfume and the like) Drinking glasses, stemware, of lead crystal, gathered by hand Drinking glasses of lead crystal, stemware, gathered mechanically Drinking glasses, stemware, gathered by hand (excl. of glass ceramics or of lead crystal) Drinking glasses, stemware, gathered mechanically (excl. of glass ceramics or of lead crystal) Drinking glasses of lead crystal, gathered by hand, cut or otherwise decorated (excl. stemware) Drinking glasses of lead crystal, gathered by hand (excl. cut or otherwise decorated and stemware) Drinking glasses of lead crystal, gathered mechanically, cut or otherwise decorated (excl. stemware) Drinking glasses of lead crystal, gathered mechanically (excl. cut or otherwise decorated and stemware) Drinking glasses, gathered by hand, cut or otherwise decorated (excl. glasses of glass ceramics, lead crystal or toughened glass and stemware) Drinking glasses, gathered by hand (excl. glasses cut or otherwise decorated, or of glass ceramics, lead crystal or toughened glass and stemware) Drinking glasses, gathered mechanically, cut or otherwise decorated (excl. glasses of glass ceramics, lead crystal or toughened glass and stemware) Drinking glasses, gathered mechanically (excl. glasses cut or otherwise decorated, or of glass ceramics, lead crystal or toughened glass and stemware) Drinking glasses of toughened glass (excl. stemware) Glassware of lead crystal, of a kind used for table or kitchen purposes, gathered by hand (excl. articles of heading 7018, drinking glasses, glass preserving jars "sterilising jars", vacuum flasks and other vacuum vessels) Glassware of lead crystal, of a kind used for table or kitchen purposes, gathered mechanically (excl. articles of heading 7018, drinking glasses, glass preserving jars "sterilising jars", vacuum flasks and other vacuum vessels) Glassware for table or kitchen purposes of glass having a linear coefficient of expansion <= 5 x 10 -6 per kelvin within a temperature range of 0C to 300C (excl. glassware of glass ceramics or lead crystal, articles of heading 7018, drinking glasses, glass preserving jars "sterilising jars", vacuum flasks and other vacuum vessels) Glassware for table or kitchen purposes, of toughened glass (excl. glass having a linear coefficient of expansion <= 5 x 10 -6 per kelvin within a temperature range of 0 to 300C, glassware of glass ceramics or lead crystal, articles of heading 7018, drinking glasses, glass preserving jars "sterilising jars", vacuum flasks and other vacuum vessels) Glassware of a kind used for table or kitchen purposes, gathered by hand (excl. toughened glass and glass having a linear coefficient of expansion <= 5 x 10 -6 per kelvin within a temperature range of 0 to 300C, glassware of glass ceramics or lead crystal, articles of heading 7018, drinking glasses, glass preserving jars "sterilising jars", vacuum flasks and other vacuum vessels) Glassware of a kind used for table or kitchen purposes, gathered mechanically (excl. toughened glass and glass having a linear coefficient
of expansion <= 5 x 10 -6 per kelvin within a temperature range of 0 to 300C, glassware of glass ceramics or lead crystal, articles of heading 7018, drinking glasses, glass preserving jars "sterilising jars", vacuum flasks and other vacuum vessels) Glassware of lead crystal, of a kind used for toilet, office, indoor decoration or similar purposes, gathered by hand (excl. glassware of a kind used for table or kitchen purposes, drinking glasses, articles of heading 7018, mirrors, leaded lights and the like, lighting fittings and parts thereof, atomizers for perfume and the like) Glassware of lead crystal, of a kind used for toilet, office, indoor decoration or similar purposes, gathered mechanically (excl. glassware of a kind used for table or kitchen purposes, articles of heading 7018, mirrors, leaded lights and the like, lighting fittings and parts thereof, atomizers for perfume and the like) Glassware of a kind used for toilet, office, indoor decoration or similar purposes (excl. glassware of lead crystal or of a kind used for table or kitchen purposes, articles of heading 7018, mirrors, leaded lights and the like, lighting fittings and parts thereof, atomizers for perfume and the like)
7013 9110
26131310
7013 9190
26131330
7013 9900
26131360
Statistical product classification Prodcom and Combined Nomenclature (CN) 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 some 4,800 products which are assigned to some 250 industries (subclasses) as defined by the Standard Industrial Classification (SIC). Prodcom data contain production, imports and exports. Prodcom data are used to indicate production in this survey. The second set is the trade data based on the Combined Nomenclature. The abbreviation CN stands for Combined Nomenclature. This Combined Nomenclature 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. In this survey CN data are used to indicate imports and exports. Based on these data, apparent consumption can be calculated as follows: apparent consumption = 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 Prodcom data 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 large 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 and apparent consumption data, displaying numbers at product group level and describing the different EU markets in detail. Therefore they are useful for obtaining an indication of size and trends within those markets. However, these figures are not accurate enough for decision making and should be used in conjunction with further market research.
CBI MARKET SURVEY: THE TABLEWARE, KITCHENWARE AND OTHER HOUSEHOLD ARTICLES MARKET IN THE EU 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, because it puts limitations to in-depth interpretation of relations between consumption, production and trade figures within one country and between different countries.
INTRODUCTION TO THE EU MARKET
The European Union (EU) is the current name for the former European Community. As from January 1995, the EU has 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 CBIs 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 eleven 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, Cyprus and Malta adopted the Euro in January 2008, and Slovakia in January 2009. Since 2002, Euro coins and banknotes replaced national currency in these countries. In CBI market surveys, the Euro () is the basic currency unit used to indicate value. For exchange rates of EU currencies in , please visit http://www.oanda.com. Table 1
Country
Exchange rates of EU currencies in , average yearly interbank rate

Name Code 2008
August 2009 Bulgaria Lev BGN 0.512 0.512 Czech Republic Crown CZK 0.040 0.039 Denmark Crown DKK 0.134 0.134 Estonia Crown EEK 0.064 0.064 Hungary Forint HUF 0.004 0.004 Latvia Lats LVL 1.438 1.433 Lithuania Litas LTL 0.292 0.290 Poland Zloty PLN 0.286 0.243 Romania New Lei RON 0.273 0.238 Slovakia Crown SKK 0.032 Sweden Crown SEK 0.104 0.098 United Kingdom Pound GBP 1.260 1.142 Source: Oanda http://www.oanda.com (September 2009)
LIST OF DEVELOPING COUNTRIES
OECD DAC list - January 2006 When referring 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 Albania Algeria Angola Anguilla Antigua and Barbuda Argentina Armenia Azerbaijan Bangladesh Barbados Belarus Belize Benin Bhutan Bolivia Bosnia & Herzegovina Botswana Brazil Burkina Faso Burundi Cambodia Cameroon Cape Verde Central African Rep. Chad Chile China Colombia Comoros Congo Democratic Rep. Congo Rep. Cook Islands Costa Rica Cote dIvoire Croatia Cuba Djibouti Dominica Dominican Republic Ecuador Egypt El Salvador Equatorial Guinea Eritrea Ethiopia Fiji Gabon Nepal Gambia Nicaragua Georgia Niger Ghana Nigeria Grenada Niue Guatemala Oman Guinea Pakistan Guinea-Bissau Palau Guyana Palestinian Admin. Areas Haiti Panama Honduras Papua New Guinea India Paraguay Indonesia Peru Iran Philippines Iraq Rwanda Jamaica Samoa Jordan Sao Tome & Principe Kazakhstan Saudi Arabia Kenya Senegal Kiribati Serbia Korea Rep. of Seychelles Kyrgyz Rep. Sierra Leone Laos Solomon Islands Lebanon Somalia Liberia South Africa Libya Sri Lanka Macedonia St. Helena Madagascar St. Kitts Nevis Malawi St. Lucia Malaysia St. Vincent & Grenadines Maldives Sudan Mali Suriname Marshall Islands Swaziland Mauritania Syria Mauritius Tajikistan Mayotte Tanzania Mexico Thailand Micronesia, Fed. States Timor-Leste Moldova Togo Mongolia Trinidad & Tobago Montenegro Tunisia Montserrat Turkey Morocco Turkmenistan Mozambique Turks & Caicos Islands Myanmar Tuvalu Namibia Uganda Nauru Ukraine Uruguay Uzbekistan Vanuatu Venezuela Vietnam Wallis & Futuna Yemen Zambia Zimbabwe
CBI MARKET SURVEY: THE TABLEWARE, KITCHENWARE AND OTHER HOUSEHOLD ARTICLES MARKET IN THE EU 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 Moldavia Montenegro Morocco Mozambique Nepal Nicaragua Pakistan Peru Philippines Rwanda Senegal Serbia South Africa Sri Lanka Suriname Tanzania Thailand Tunisia Uganda Vietnam Zambia
REFERENCES
Useful sources are included in each Chapter of this survey. In general, the following relevant sources have been consulted: CBS (Central Agency for Statistics) http://www.cbs.nl Eurostat - http://epp.eurostat.ec.europa.eu Euromonitor http://www.euromonitor.com GEPEA http://wwww,gepea.nl German Federal Association of Cutlery, Decoration and Houseware Retailers (http://www.gpk-online.de) International Housewares Association - http://www.housewares.org Tendence website http://tendence.messefrankfurt.com Trade magazines such as Stil & Markt (http://www.meisenbach.de), Digest (http://www.digest-online.de), Tableware International (www.dmg.co.uk) Unity Marketing - http://www.researchandmarkets.com - Tabletop Market Report 2006 A Consumer Insights Study of the Dinnerware, Glassware, Flatware and Tabletop Decorative Accessories Markets.

Tableware, Kitchenware and Other House Articles in EU 2009

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Tableware, Kitchenware and Other House Articles in EU 2009

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CBI MARKET SURVEY: THE TABLEWARE, KITCHENWARE AND OTHER HOUSEHOLD ARTICLES MARKET IN THE EU

CBI MARKET SURVEY

THE TABLEWARE, KITCHENWARE AND OTHER HOUSEHOLD ARTICLES MARKET IN THE EU

Source: Euromonitor International (2007)

2,300 n.a. n.a. 648* 540 326 62 259 53 11*

TRADE CHANNELS FOR MARKET ENTRY

Directly-owned Waterford-Wegdwood (UK) Richard Ginori (I)

Category killer IKEA (All) Narrow

Specialists Habitat (F) Allders at Home (UK)

TRADE: IMPORTS AND EXPORTS

Total EU, of which from Intra-EU Extra-EU ex.DC* DC*

9,886 6,061 764 3,062

3,696 2,087 162 1,446

10,926 6,327 708 3,892

3,818 11,702 1,832 6,411 146 713 1,840 4,578

4,416 2,254 159 2,003

4.3% 1.4% -1.7% 11%

Source: Eurostat (2009)

Source: Eurostat (2009) *Developing countries

Extra-EU ex. DC*

Source: Eurostat (2009) *Developing countries

Source: Eurostat (2009) *Developing countries

Extra-EU ex. DC*

Source: Eurostat (2009) *Developing countries

Extra-EU ex. DC* DC*

Source: Eurostat (2009)

Extra-EU ex. DC* DC*

Source: Eurostat (2009)

MARKET ACCESS REQUIREMENTS

CERAMICWARE CN code Prodcom code 6912 0010 2621 1210

METALWARE CN code Prodcom code 7323 9100 2875 1217

7615 1100 7615 1910

2875 1257 2875 1255

CUTLERY CN code 8211 1000

8211 9130 8211 9180 8211 9200

2861 1113 2861 1119 2861 1120

8211 9300 8211 9400 8215 1020

2861 1130 2861 1150 2861 1470

7013 3710 7013 4110

INTRODUCTION TO THE EU MARKET

Exchange rates of EU currencies in , average yearly interbank rate

LIST OF DEVELOPING COUNTRIES

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