European denim imports in 2013 by Jean-Franois Limantour
Healthy recovery for European denim imports in 2013!
In 2013, the 27 member states of the European Union imported 494 million pairs of denim jeans, representing a value of 3.69 thousand million euros, destined for a population of 505 million people, of whom 430 million consumers are over the age of 14. Jeans are more than ever before an essential item of clothing for any European consumer, whatever their age or sex.
During the last six years, between 2007 and 2013, imports of jeans have experienced an exceptional rate of growth of 5.3% per annum, reaching a peak in 2013. By way of comparison, total European imports of clothing only grew by 2.2% a year during this same period. In decline in 2012 due to the crisis in the economy, European imports of jeans are back on track for growth. Indeed, in 2013 they grew by 4.4% in value and by 8.6% in volume, while average prices dropped by 3.9%.
Source: Eurostat
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In 2013, three countries clearly stood out from the mass of jeans suppliers to the European Union: Turkey, Bangladesh and China. Together they supply two thirds (62%) of jeans imports in terms of value and 69% in terms of pairs of jeans. These three suppliers are followed by Pakistan and Tunisia, then trailed by Morocco and Cambodia fairly far behind.
One of the significant differences in 2013 is that China ceded its place as prime supplier to the European Union, which it still occupied in 2012; it was overtaken not just by Turkey but also by Bangladesh. China, however, remains top-ranked in terms of numbers of pairs, with 142 million pairs of jeans exported to the European Union in 2013
Many other countries, Asian ones in particular, export jeans to the European Union. Some, like India, are on the wane while other suppliers like Cambodia or Vietnam are advancing rapidly
Generally speaking, the Mediterranean countries have seen their share of total European imports of jeans declining for some years. Turkey has fallen from 25.9% in 2007 to 21.1% in 2012; Tunisia from 11.4% to 8.1% and Morocco from 5.4% to 4.4% during the same period.
This drop suffered by the Mediterranean countries has been to the benefit of Asia. However, within the latter region, differences in this pattern of change can be observed among the suppliers which are in decline, starting with China which dropped from 31.7% to 23.3% between 2010 and 2012, while Pakistan, Vietnam, Cambodia or Sri Lanka have made significant advances over the last few years.
Changes in the performance of the main suppliers of denim jeans to the EU
In 2013, the average price of imported jeans in the European Union stood at 7.48 euros compared with 7.78 euros in 2012, meaning an average decrease of 3.9%. Let us not forget that in 2011 and 2012, the average price of jeans had increased from 6.6% and then 5.4% respectively, meaning an accumulated increase of 12.4%, as a result of the rise in the price of cotton.
The relative calm in cotton prices for many months and the continuing economic crisis contributed to the drop in the price of jeans in 2013. The price level of imported jeans is a good indicator of the suppliers' strategies. On the one hand, there are those who are working on strategies to create greater value for their jeans ranges. This primarily concerns Tunisia and Turkey. Tunisia and Turkish jeans incorporates do indeed have a higher added value (quality of materials, finishing, processing, embellishments), which is manifested in the average unit price of 16.8 euros and 13.98 euros respectively. At the other end of the scale are exporters of low to mid-range jeans, with prices lower than 10 euros per article, which is the particular case with China (4.97 euros), Bangladesh (5.50 euros), Pakistan (6.47 euros) and Cambodia (5.85 euros).
Source: Eurostat
Moreover, it is interesting to observe that the average price levels for imported jeans in Europe vary considerably from one member state to another. For instance, it is Italy that buys the most expensive jeans (15 euros per pair in 2013), followed by Austria (10.49 euros), Denmark (9.31 euros), Germany (8.77 euros) and Sweden (8.17 euros).
In contrast, the price of imported jeans in Spain (6.6 euros per pair), Great Britain (6.70 euros), France (7.26 euros) or Portugal suggests that jeans imported by these countries are noticeably more downmarket.
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Attractiveness of European jeans markets
Germany is the most attractive of the European import markets for jeans. As it is, it is the largest importer in terms of value and volume (114 million pairs of jeans imported in 2013) but also one of the markets with the strongest growth rates (+7.2% a year since 2005).
The second largest market is Great Britain (499 million euros and 74.4 million pairs of jeans in 2013, with an average annual growth rate of 2.5% for the past eight years). It is followed by Spain which, after a very high average annual growth rate since 2005 (+12.5%), has reached a size comparable with that of Great Britain in terms of value and volume.. Despite or because of the difficult economic situation, Spain remains a very attractive market for jeans.
France and Italy each have an import market for jeans that represents around one third of the value of Germanys market. Growth in these two countries since 2005 is relatively weak (average annual rate of 1.9% for France and of 1.8% for Italy). Among the other European markets that are smaller but still posting healthy growth, we should note Portugal, the Netherlands, Denmark, the Czech Republic and Sweden. In contrast, the Belgian market is in conspicuous decline: -3.4% a year on average since 2005!
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Background information on Messe Frankfurt
Messe Frankfurt is one of the world's leading trade show organisers with around 543* million euros in sales and 2,026* employees worldwide. The Messe Frankfurt Group has a global network of 28 subsidiaries and approx. 50 international Sales Partners, giving it a presence for its customers in more than 150 countries. Events made by Messe Frankfurt take place at more than 30 locations around the globe. In 2013, Messe Frankfurt organised 114* trade fairs, of which more than half took place outside Germany. Messe Frankfurts exhibition grounds, featuring 578,000 square metres, are currently home to ten exhibition halls and an adjacent Congress Center. The company is publicly owned, with the City of Frankfurt holding 60 percent and the State of Hesse 40 percent. For more information, please visit our website at: www.messefrankfurt.com * preliminary numbers (2013)