Euro Apparel Fashion Goes Off the Rail

Across the progressively enlarging EU, per capitafifth between 2001 and 2006, from £ 6.4 bn or
spend has barely risen despite the fact that€ 9.3 bn to £ 7.7 bn or € 11.3 bn.
average earnings have increased. Europeans areAmong the major markets, Italy upholds its
finding the allure of technology (the latest TVs,reputation for style with top spend at £ 602 or
MP3 players, mobile phones and computers of€ 883 per person followed by the UK at £
various shapes and sizes) and property,556 or € 815. However, it seems Italians have
increasingly attractive. Verdict says that therevised their budget. When compared to the UK
combination of space growth, an aging populationfor example, where average spend per head has
and muted fashion trends have helped to dampenrisen by £ 38 or € 55 over the last five
the attractions of fashion: increasingly, consumersyears, in Italy the figure has actually fallen by £
are making do with what they already have in19 or € 28 from £ 622 or € 911.
their wardrobes.Slow or negative growth is evident across all the
While growth across the EU as a whole issix major EU clothing markets: Between them,
extremely unexciting, this is far from being athese countries account for £ 4 out of every
uniform picture. The biggest and most£ 5 spent on clothing in the EU, but combined
sophisticated markets of Germany, the UK,sales in these markets rose by just 3.9 % in the
France and Italy are showing some of the flattestfive years to 2006. As a result, retailers in the
demand patterns. However, a very differenttop six markets - Germany, Italy, the UK, France,
story emerges from the smaller and often moreSpain and the Netherlands, are increasingly looking
recent recruits to the EU. There is a clearabroad for new opportunities to grow.
message to the expansion-hungry fashion retailersLeading Continental retailers have already made
from the more mature markets: if you want tomajor inroads into international markets. The top
be able to move into the fast lane of retail salesfive non-UK clothing retailers in the EU: Inditex,
growth, you may well have to look to the EastH&M, C&A, Benetton and Cortefiel have
where the growing EU fashion markets are lesson average half of their EU stores in
saturated and consumer appetites have yet to benon-domestic markets.
sated.UK retailers pale in comparison to such figures.
Verdict Research reports the average spend perDespite all being large enough to rank in the Top
head on clothing in EU member states was £10 EU clothing retailers, the Top Five UK clothing
430 or € 630 in 2006, creating a total marketretailers have just 17 % of their EU stores
value of £ 199 bn or € 292 bn. But thelocated outside the UK. UK retailers have only
amount the average person spends variesrecently turned their focus onto serious
dramatically by country.investment in international operations and need to
In Slovakia, for example, average spend per headmake inroads quickly if they want to catch up
is just £ 71 (€ 104) – the lowest in thewith their Continental rivals.
EU – however this figure is growing quickly.Across the EU, the market remains highly
Since 2001, annual clothing expenditure per capitafragmented. Inditex holds the highest share of the
has risen by an extra £ 19 or € 27 perEU clothing market with just 2.5 % of the market
person – more than 25 %.value, followed by H&M. Marks &
Meanwhile combined clothing sales through the tenSpencer takes third place, but the vast majority
new member states (Cyprus, the Czech Republic,of its clothing sales are from a single market –
Estonia, Hungary, Latvia, Lithuania, Malta, Poland,the UK.
Slovakia and Slovenia), jumped by more than a