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Home Textiles
Broadcasting your trade statistics
The European home textiles market suffers in times of
economic adversity because consumers cut back their
spending on non-essential products for the home. Based on
economic indicators, the short-term outlook is looking positive
and there will be opportunities in the longer term as consumer
confidence gathers pace. The role of developing countries
(DCs) is growing, with their share in European imports on the
rise. Opportunities can be found both in Western Europe,
where production is declining and leading importers are
located, and in in the emerging markets of Eastern Europe.
Refer to the CBI Trade Statistics movie on YouTube and the
CBI website.
Consumption
The European home textiles market remains fragile and quite volatile, but
modest growth is predicted. In the short term, the positive prognosis for GDP
and new housing favours consumption, while growth markets in Eastern Europe
provide opportunities in the long term.
Figure 1: EU/EFTA consumption of home textiles, value in million*
20,000
Textile wallcoverings
18,000
Bedspreads
16,000
Bathrobes
14,000
Table linen
12,000
Blankets
10,000
8,000
Cushion covers
6,000
Curtains
4,000
Oilcloth
2,000
Bedlinen
0
2008
2009
2010
2011
2012
Carpets
Source: CBI Market Information Database URL: www.cbi.eu Contact: marketintel@cbi.eu www.cbi.eu/disclaimer
Figure 2:
Other
19%
Poland
3%
UK
21%
Netherlands
3%
Romania
4%
Germany
18%
Spain
6%
Italy
11%
3,000
UK
2,500
Germany
2,000
France
1,500
Romania
1,000
Poland
500
Hungary
France
15%
Figure 4:
Figure 5:
-5
0
2009 2010 2011 2012 2013 2014 2015
Oct/12
Nov/12
Dec/12
Jan/13
Feb/13
Mar/13
Apr/13
May/13
Jun/13
Jul/13
Aug/13
Sep/13
Oct/13
Nov/13
Dec/13
Jan/14
Feb/14
Mar/14
-10
-5
-15
GDP
-10
New
hous
ing
-15
-20
-25
-30
-20
-25
Source: CBI Market Information Database URL: www.cbi.eu Contact: marketintel@cbi.eu www.cbi.eu/disclaimer
Leading sub-sectors are carpets, bed linen, oilcloth, curtains and cushion
covers. The market for carpets showed an increase of 1.5% annually and the
market for bed linen increased by 1.0% annually during the review period.
Demand for blankets increased by a promising 2.5% annually; the only other
product group with a significant increase.
Consumer confidence has remained low in the EU. After the extreme dip in
2009, consumer confidence increased during 2011, but declined again
significantly in 2012. Consumer confidence has steadily increased since
2013, but still remains negative. Consumer confidence is expected to
increase slightly, in line with forecast growth in GDP2.
With the exception of Cyprus, European GDP forecasts are positive, boosting
demand for home textiles in the near future. The European housing market,
however, remains insecure for 2014 although an increase in new-build
housing is forecast for 2015 (except for Italy, Portugal and the Czech
Republic). This could have a positive impact on the consumption of home
textiles.
In the long term, the market is expected to pick up again, especially in the
growth markets in Eastern Europe, forming a promising target market for DC
exporters in the future. The purchasing power of Eastern Europeans is
expected to converge with Western European standards, enabling them to
spend more on non-essential items for the home.
CFA: In the longer term, consider targeting Eastern European countries, where
market growth is expected in the coming years.
Politics will also have an impact on the long term market situation in
Europe. The continuing Euro crisis, which is heavily dependent on politics,
negatively affects the future of home textiles consumption as it brings
instability to the market. Political intervention in the housing market to
stimulate home sales can have a substantial positive influence on the
demand for home textiles.
2 Gross Domestic Product: is commonly used as an indicator of the economic health of a country, as
well as to determine a country's standard of living.
Source: CBI Market Information Database URL: www.cbi.eu Contact: marketintel@cbi.eu www.cbi.eu/disclaimer
Production
Suffering from strong competition in the home textiles market, Western
European production has seen continuous decline. Eastern Europe, however, is
an emerging producer, forming a future threat to DCs.
Figure 6:
14,000
Textile wallcocerings
Bedspreads
12,000
Bath robes
10,000
Table linen
Blankets
8,000
6,000
Sleepwear
Bedlinen
4,000
Cushion covers
2,000
Curtains
Oilcloth
0
2008
2009
2010
2011
2012
Carpets
Other
28%
Germany
16%
United
Kingdom
14%
2,000
United
Kingdom
1,500
Italy
1,000
Poland
Netherlands
8%
Belgium
10%
France
11%
Italy
13%
Romania
500
Hungary
0
2008 2009 2010 2011 2012
Western European production has been declining for many years, and is
currently focused on concentration (mergers and acquisitions), outsourcing,
and specialisation (focussing on specific market segments or niche products).
The labour-intensity of the home textiles sector certainly provides
opportunities for DC suppliers to replace European production. Because the
Source: CBI Market Information Database URL: www.cbi.eu Contact: marketintel@cbi.eu www.cbi.eu/disclaimer
Imports
The share of DCs in imports continues to grow. Opportunities can be found both
in Western and Eastern European markets.
Figure 9: EU/EFTA imports per sourcing country, value in million
18,000
16,000
14,000
Other DC
12,000
Bangladesh
10,000
Pakistan
India
8,000
Turkey
6,000
China
Non DC
4,000
2,000
0
2009
2010
2011
2012
2013
Source: CBI Market Information Database URL: www.cbi.eu Contact: marketintel@cbi.eu www.cbi.eu/disclaimer
Blankets
Cushion 4%
3,500
Table
linen
3%
Other
2%
covers
5%
3,000
UK
2,500
Curtains
7%
Carpets
25%
Germany
2,000
France
Netherla
nds
Italy
1,500
1,000
500
Sleepwa
re
Bath &
kitchenli 12%
nen
10%
Bedlinen
20%
Oilcloth
12%
0
2009 2010 2011 2012 2013
Source: Eurostat 2014
In 2013, the EU/EFTA imported 14.8 billion worth of home textiles, 45%
of which was imported from DCs. China has been the leading supplier for
the past few years. After a decline in 2012, in line with the dip in consumer
confidence, imports have increased again during 2013. Textile imports
increased by 3%, from 14.5 billion to 14.8 billion. The modestly positive
forecast in consumption and the slowly increasing consumer confidence in
2014 are expected to favour imports of home textiles. When the market
recovers from the crisis, imports from DCs are expected to continue to
increase. Large product groups imported are carpets and bed linen. Carpets
showed an annual decline of 3.1% between 2009 and 2013. Product groups
where EU/EFTA imports increased significantly are blankets and bed linen.
CFA: In the short term, consider countries in Scandinavia, which have witnessed
moderate growth in imports from DCs, in line with the increase in consumer
confidence in this region. Although they are not the largest markets, they offer
stable growth opportunities.
Source: CBI Market Information Database URL: www.cbi.eu Contact: marketintel@cbi.eu www.cbi.eu/disclaimer
are doing well. It is the mid-market that is most affected, perhaps through
lack of cost advantages and differentiation. Online marketing is growing, in
line with greater consumer demand for lower prices and convenience.
CFA: Develop a keen interest in your importers situation in relation to his role
in the chain, so that you can better understand his/her considerations. The
greater the convenience the importer experiences in working with his suppliers,
the more he/she will cherish and develop the relationship. All angles of the
suppliers business are relevant when it comes to assisting a buyer under
pressure: e.g. logistical advantages, cost reduction, increasingly taking the
initiative in product development, more story (in terms of manufacture,
background of products, green values) and better communication throughout
the process.
Opportunities for DCs can be found in both mature Western European and
emerging Eastern European markets. DCs can profit from declining
production in the West and a growing demand for home textiles in the East.
Important Eastern European importers include Poland and Czech Republic.
CFA: Consider Western Europe where the leading importers from DCs can be
found: Germany, UK, France, the Netherlands, these countries are showing
modest growth in imports from DCs in value. In the longer term, consider
Eastern Europe, where growth opportunities for DC exporters are expected. The
Czech Republic, as well as Romania, Bulgaria and Lithuania have emerged as
importers of home textiles from DCs during the review period.
Exports
With West-European production facing a downward trend, the importance of reexports from trading hubs is expected to increase in the future. Future trade of
home textiles will continue to go over the traditional trade hubs, but will be reexported to other end markets in the EU/EFTA.
Figure 12: EU/EFTA home textile exports including destinations, value in million
12,000
10,000
USA
8,000
Poland
Netherlands
6,000
UK
France
4,000
Germany
Other
2,000
0
2009
2010
2011
2012
2013
Source: CBI Market Information Database URL: www.cbi.eu Contact: marketintel@cbi.eu www.cbi.eu/disclaimer
Cushion
covers
4%
2,000
Germany
1,500
Belgium
Netherlan
ds
1,000
Italy
France
500
Other
7%
Curtains
6%
Bath &
kitchenlin
en
7%
Carpets
34%
Sleepwar
e
7%
Bedlinen
14%
Oilcloth
21%
0
2009
2010
2011
2012
2013
In the same way, trading hubs can also play a more important role in the
future, meaning that imports from DCs could become more concentrated
and increasingly re-exported to other European countries. Germany, the
Netherlands and Belgium usually fulfil such a role due to their large ports.
Their imports are much higher than their domestic consumption, while
exports exceed production.
CFA: Consider trade hubs, such as the Netherlands, and, to a lesser extent,
Belgium, to reach your target market indirectly through re-exports.
Find out about the major trade hubs for your product as this can vary per
product and target country/region.
CFA: Monitor the role of China, since it can alter your position on the European
market. With European suppliers targeting China, there will be more room for
foreign suppliers on the European market. At the same time, if you target BRIC
markets as well, it could increase your bargaining power in general (also refer to
CBI Field of Competition for Home Textiles).
Source: CBI Market Information Database URL: www.cbi.eu Contact: marketintel@cbi.eu www.cbi.eu/disclaimer
Source: CBI Market Information Database URL: www.cbi.eu Contact: marketintel@cbi.eu www.cbi.eu/disclaimer