The following research report contains market research, analysis, statistics and business intelligence relating to research on Men's Wear Industry In Germany.

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ABSTRACT
This report concentrates on the men's apparel sector in Germany.
It includes coats, suits, formal wear, jackets, blazers,
trousers, men's dress and casual shirts. The size of the total
apparel market in Germany is estimated at roughly DM 24 billion
($ 13,3 billion). With a market share in 1998 of almost 21 % or
DM 5.1 billion ($ 2,83 billion), an increase of 2.5% compared
with 1997, the German menswear market is still one of the largest
European markets for American apparel. Since 1992, the slowdown
of the German economy has led to less personal consumption and
greater price consciousness among consumers. For several years
the German apparel industry suffered decreases of almost 5% each
year. Finally in 1997, the menswear industry was able to report
an increase of 11% from DM 4,60 billion
($ 3,10 billion) to DM 5.24 billion ($2.85 billion). Growth
continued in 1998 with an increase of 2.5%. No other apparel
sector was able to report a similar market growth. Although the
major factor for this increase was the growing export market,
there are also signs of a slow but steady increase in private
consumption. According to industry specialists, an increase of
3,5 % is predicted for men's wear in 1999. Best sales in 1998
were long jackets, fashionable suits, and casualwear. 25 to 30 %
of the major buyers plan to focus on these three sectors for 1999
and increase their order volumes accordingly.

The German apparel market is rather complex and sophisticated.
Most major apparel brands are represented in Germany, including
premiere collections and more affordable brands. French,
Italian, British, and Australian brands compete with famous
American names. Main competitors to U.S. labels are Italian,
German, and Asian firms. Industry specialists consider German
consumers to be very brand-conscious; clothing is used to assert
social status. Experts believe mid-price clothing represents the
most dynamic market for American companies, because there is less
competition from European brands.

New products/brands have to be launched with aggressive
advertising campaigns. Successful penetration of the German
market depends on continuity of effort, regular participation in
trade fairs, and the establishment of a sales office with
warehousing, either in Germany or another European country, in
order to meet short-term delivery requirements.

Interpersonal business relationships (especially during start-up
operations) and follow-up are important in Germany. Appointment
of sales agents is usually the first step for a successful market
entry. U.S.-made apparel exports are not handicapped by quotas,
but American manufacturers should be aware of the costs
associated with exporting, such as custom duties, value-added tax
and distributor margins which have a direct effect on the prices
of American goods and consequently on their competitiveness.

The single European market is becoming reality. The free
movement of goods, people and capital withing the European Union
presents not only competitive challenges to U.S. apparel firms
but also major opportunities. These developments will be
accelerated with the introduction of the common currency, the
Euro, in at least 11 of the 15 European member states.

A. MARKET HIGHLIGHTS & BEST PROSPECTS

-- Statistical Data

Official statistical data for this sector are not available. The
figures provided below are our best estimates based on interviews
with market experts and articles from trade publications.

(Please note: all calculations are based on German currency
values.)

The German Market for Men's Wear

TABLE 1
(DM MILLION)
Avg. Annual
Growth rate
1997(e) 1998(e) 1999(e) 2000-2001

IMPORTS 4,60 5,24 5,40 2,5 %

PRODUCTION 1,60 1,58 1,60 - 2,5 %
EXPORTS 1,70 1,84 1,90 2,0 %

TOTAL MARKET 4,50 4,98 5,10 2,0 %

IMPORTS FROM
THE U.S. Below 5 %. No other figures available

TABLE 2
(US $ MILLION)

1997(e) 1998(e) 1999(e)

IMPORTS 3,17 2,99 3,00

PRODUCTION 1,10 90 89

EXPORTS 1,17 1,05 1,06

TOTAL MARKET 3,10 2,85 2,83

IMPORTS FROM Below 5 percent
THE U.S. No other figures available

EXCHANGE RATE 1.45 1.75 1.80
($ equals DM)

Estimated Future
Inflation Rate 1.5 1.9 2.0

(e) = estimated

Receptivity Score (1-5): 3

Import Market Share 1998 for U.S. and Major Competitors:
U.S.: less than 5%; Asia 60%; EU 20% and Northern Africa 15%

NOTE: Since different Dmark/US Dollar exchange rates had to be
used for the years 1998 and previous ($1 equals DM 1.80), and
1997 ($1 equals DM 1.75) reflecting the 20% devaluation of the
Dmark, 1996/1997 and 1998 values in US Dollars are misleading.
Actual increases in Dmark values become decreases in US Dollar
values. For comparative purposes, please refer to Dmark figures.
-- Market Highlights

Overall, experts, suppliers, and retailers judge the current
market as satisfactory to good and expect a small growth of 3,6 %
for 1999. The men's wear sector is most receptive to American
products and brand names. A U.S. brand name is usually perceived
as a sign of quality and great style (both classic and casual).

-- Best prospects

The following segments, classified according to the EU Harmonized
System Code, held substantial shares in Germany's 1998 import
market; they are expected to rank high as 1999 Best Prospects:

6103/6203 Men's suits or suit jackets
Popular items include single brested suits with three buttons and
long jackets. The most popular color is black followed by dark
grey.

6110 Sweaters, sweatshirts, casualwear.
Basic styles expressing the "American lifestyle"

B. COMPETITIVE STUATION

Companies that wish to compete for the German market need to have
a strong and aggressive advertising policy to promote their image
and reinforce their position. New brands should be strongly
marketed to appeal German consumer's tastes and influence their
fashion preferences. A key point for men's wear manufacturers is
the continuing relation of comfort and fashion. Men prefer items
that are lightweight, flexible to be used for different
occasions, and made of simple, natural materials.

According to statistics compiled by the Bundesverband
Bekleidungsindustrie (Federal Association of the Apparel
Industry), domestic production of menswear in 1998 amounted to DM
1.6 billion ($ 890 million), only a slight increase compared with
1997, while the import figures rose by 2% from DM 5.24 billion
to DM 5.4 billion. Apparel is one of the few German industries
that have a trade deficit. This is why the import value is
higher than the actual market value. Export value accounts for
26 % of the total market value. The high import share results
from the relocation of most German production plants of men's
apparel (over 80%) to low-cost reagions such as North Africa,
China, South Asian, and East European countries. Assuming this
patterns will continue, domestic production of men's apparel and
apparel in general is expected to decline even further in the
future. The following are the eight major exporting countries to
the German clothing market:

China: DM 2.5 billion
Turkey: DM 2.1 billion
Poland: DM 1.9 billion
Italy: DM 1.7 billion
Hongkong: DM 1.1 billion
Romania: DM 1.1 billion
Tunisia: DM 0.8 billion
India: DM 0.7 billion

Major German manufacturers and competitors of U.S. exporters of
menswear are:

HUGO BOSS AG
Dieselstr. 12
D-72555 Metzingen
Phone: (001)(49) 7123-94-0
Fax: (001)(49) 7123-94-2014

Willy BOGNER GmbH&CoKGaA
St.-Veit-Str. 4
D-81673 Munchen
Phone: (011)(49) 89-43606-0
Fax: (011)(49) 89-43606-429

WINDSOR GmbH
Am Ellerbrocks Hof 2-6
D-33617 Bielefeld
Phone: (011)(49) 521-1453-0
Fax: (011)(49) 521-1453-216

Eduard Dressler GmbH
Babenhauser Str. 21
D-63762 Groxostheim
Phone: (011)(49) 6026-502-0
Fax: (011)(49) 6026-3540

Klaus Steilmann Gmbh & Co. KG
Feldstrasse 4
D-44867 Bochum
Phone: (011)(49) 2327-940-0
Fax: (011)(49) 2327-940550

Otto Kern GmbH & Co KG
Augustastasse 1
D-67655 Kaiserslautern
Phone: (011)(49) 631-3672-0
Fax: (011)(49) 3672-162
C. END-USER-ANALYSIS

Statistics from the annual report on the family income and
expenditure survey by the Federal Association of the German
Apparel industry show that purchases of apparel make-up 5.8 % of
the 1998 total household expenditures. The lion's share, 35.2%,
is spent on the travel and leisure sectors, followed by 24.7 %
for house, apartment and related energy costs. The survey also
shows, that a German family with an average income spends in
general DM 349 for men's clothing per year. Households with
higher income spend almost the double amount for menswear.

German men prefer casual and practical clothing. 86% of all male
consumers, regardless of age and income, dress casually; 62%
practical; followed by 48% leisurely; and 47% sportive. Older men
prefer timeless, classic styled, and soft colored clothing, while
the younger consumer is open to fashionable, shaped, and
sometimes colorful designs. Only 1.5 % are brave enough to wear
or buy haute couture or premiere fashion.

Label/Price awareness of German men:
(24 million men between 14 and 64)

5% prefer exclusive and expensive labels
24% prefer well known but not exclusive labels
35% choose the least expensive among well-known labels
34% choose by price
2% do not buy labels

Average expenditures on men's apparel (in DM)

Age 18-29 yrs 30-49 yrs 50-65 yrs

Suits DM 450 DM 371 DM 409

Jackets DM 230 DM 209 DM 223

Jackets DM 181 DM 150 DM 153
casual

Coats DM 329 DM 330 DM 349
winter

Trousers DM 139 DM 126 DM 125
formal

Trousers DM 93 DM 93 DM 102
casual

Shirts DM 39 DM 40 DM 46
formal

Shirts DM 25 DM 25 DM 30
casual

($ 1 equals DM 1,80)
Sixty percent of male customers prefer to purchase their clothing
in speciality stores; 14% purchase through department stores and
10% order their clothing via mail. Small boutiques, cash & carry
stores, and food chains that also carry apparel share the
remaining 16%.
D. MARKET ACCESS

Imports of U.S. made apparel products are unrestricted and not
subject to any numerical quotas or approval requirements.
However, import approval is required for apparel products
containing animal hides, feathers or leather from animals covered
by provisions of the Washington Convention. In addition,
counterfeit brand-name merchandise and parallel imports from
outside the EU are prohibited. (Parallel imports of original U.S.
products carrying a trademark, into Germany, i.e.imports through
a company that is not the appointed importer for Germany, are
illegal.)

Compared to most international competition, U.S. exporters face
high freight and handling costs, in addition to import duties.
Imports from within the European Union enter Germany duty-free.
With a continued market presence, including regular participation
in trade fairs, successful U.S. exporters will eventually
establish a sales office with warehousing, either in Germany or
another EU country. Commission for sales agents in this product
sector generally ranges between 7% and 16%, depending on
merchandise price levels, sales volume and customer base.
Buying cooperatives play an important role in the distribution of
apparel. Large-volume buying results in price discounts, which
are then passed on to the retail members. U.S. exporters should
quote C.I.F. prices for a German port of entry when making offers
to German companies. Producers of brand name apparel should plan
substantial market penetration cost to achieve the identification
required to produce high sales and margins. To secure a better
foothold in the European market, U.S. exporters may also consider
a joint venture or licensing agreement.

Other regulations and rules:

Transportation: Transportation costs by air, in terms of value,
are approximately 6% FOB from the U.S. East Coast, and
approximately 8% from the West Coast.

Payment: When selling to a new or small retailer/distributor, a
letter of credit is usually posted. For larger or
long-established firms, sight drafts often are appropriate. For
large concerns, e.g. department stores, mail order houses, or
buying organizations, an open account may be best. Credit checks
through a bank or the Department of Commerce are recommended.

Taxes: In addition to customs duty (7 to 15 %), an import
excise tax has to be paid. This tax is equivalent to the
domestic value added tax (Mehrwertsteuer) and is at present 16%
of the customs value.

Labeling: In accordance with the German Textile Labeling law,
which meets EU requirements, all textile products require an
indication of the fiber contents, care and washing instructions,
and size in metric measurements.

AZO dyes: Germany is the first European country to ban AZO dyes.
AZO dyes which release amines have been used all over the world.
These dyes contain small quantities of chemical compounds that
are likely carcinogenic if they come into more than temporary
contact with the human body. For further information onAZO
regulation, please contact:

Bundesverband
des Deutschen Textileinzelhandels e.V. (BTE)
(Federal Association of German Textile Retailers)
An Lyskirchen 14
D-50676 Cologne
Phone: (011) (49) 221-921509-0
Fax: (011) (49) 221-92150910
Contact: Dr. Sigfried Jacob, Manager

or

American Consulate General
Commercial Service
Kennedydamm 15-17
D-40476 Dusseldorf
Phone: (011) (49) 211-47061-34
Fax: (011) (49) 211-431431
Contact: Ms. Birgit Hesse
e-mail: Birgit.Hesse@mail.doc.gov

The following are considered key contacts to U.S. exporters of
men's wear:

Trade Associations:

Bundesverband des Deutschen Textileinzelhandels
(Federal Association of the German Textile Retail Trade)
President: Mr. Klaus J. Stange
General Manager: Mr. August Moeller
Sachsenring 69
D-50677 Cologne
Phone: (011) (49) 221-92 15 09-0
Fax: (011) (49) 221-92 15 09-10

Gesamtverband des Deutschen Textilgrosshandels
(Federal Association of German Textile Wholesalers)
President: Mr. Uwe Wagner
General Manager: Dipl.-Vw. Karl-Heinz Hauser
Neumarkt 35-37
D-50667 Cologne
Tel.: (011) (49) 221-21 70 92
Fax: (011) (49) 221-21 28 98

Verband der Herrenbekleidungsindustrie e.V.
Association of the men's wear industry
President: Dr. Guenter Roesner
Mevissenstrasse 15
D-50668 Cologne
Phone: (011)(49) 221-774 4130
Fax: (011)(49) 221-774 4137
Trade Publications:

Textil-Wirtschaft
Mainzer Landstr. 251
D-60326 Frankfurt/Main
Phone: (011) (49) 69-7595-01
Fax: (011) (49) 69-7595-1710

Frequency of Publication: Weekly
Circulation: 45,000
Die Textil-Mitteilungen/TM Branche & Business
(TM Textile News/TM Industry & Business)
Koenigsallee 70
D-40212 Dusseldorf
Phone: (011) (49) 211-132365
Fax: (011) (49) 211- 132360
Contact: Mr. Heinz Sommermeyer, Chief Editor
Frequency of Publication: Weekly
Circulation: 41,000
Department Stores

Karstadt AG
Theodor-Althoff-Strasse 2
D-45133 Essen
Phone: (011)(49) 201-727-1
Fax: (011)(49) 201-727-5216
Contact: Mr. Reinhard Koep

Kaufhof Holding AG
Leonhardt-Tietz-Strasse 1
D-50 676 Cologne
Phone: (011)(49) 221-223-0
Fax: (011)(49) 221-223-2800
Contact: Mr. H.-D. Korthas

Breuninger GmbH u. Co.
Marktstrasse 1-3
D-70173 Stuttgart
Phone: (011)(49) 711-211-0
Fax: (011)(49) 711-211-1788
Contact: Mr. Paul Bauder
Apparel chain stores

C&A Mode&Co.
Bleichstrasse 20
D-40211 Dusseldorf
Phone: (011)(49) 211-166-0
Fax: (011)(49) 211-166-2730
Contact for Europe:
Eteha Textilhandels-GmbH&Co.
Uerdinger Str.53
D-40476 Dusseldorf
Phone: (011)(49) 211-4308-0

Peek&Cloppenburg KG
Berliner Allee 2
D-40212 Dusseldorf
Phone: (011)(49) 211-366-20
Fax: (011)(49) 211-366-2697
Contact: Mr. Aribert M ller

Adler Modemarkte GmbH
Industriestrasse 1-5
D-63808 Haibach
Phone: (011)(49) 6021-633-0
Fax: (011)(49) 6021-633-299
Contact: Waldo K. Tiemann

Boecker GmbH&Co.
Markt 6
D-45127 Essen
Phone: (011)(49) 201-8125-0
Fax: (011)(49) 201-8355-385
Contact: Mr. Hans Bernd Schmitz

Hennes&Mauritz GmbH
Grosse Bleichen 30
D-20354 Hamburg
Phone: (011)(49) 40-350955-0
Fax: (011)(49) 40-352795
Contact: Mr. Hans Andersson

Tchibo Holding AG
berseering 18
D-22297 Hamburg
Phone: (011)(49) 40-6387-0
Fax: (011)(49) 40-6387-2530
Contact: Mr. H. Falkenberg

NKD VertriebsgesellschaftmbH
Buhlstrasse 5-7
D-95463 Bindlach
Phone: (011)(49) 9208-699-0
Fax: (011)(49) 9208-699-209
Contact: Mr. Burkhard

FOOD CHAIN STORES THAT CARRY APPAREL:

ALDI Einkauf GmbH&Co.oHG
Eckbergstrasse 16
D-45307 Essen-KrayPhone: (011)(49) 201-8593-0
Fax: (011)(49) 201-8593-319
Contact: Mr. Manfred Hartelt

Tengelmann Warenhandelsgesellschaft
Wisollstrasse 5-43
D-45478 Muhlheim
Phone: (011)(49) 208-5806-0
Fax: (011)(49) 208-5806-6401
Contact: TAKKO Mode MArkte: Mr. Kanbach
KiK Textilien und Non-Food GmbH: Mr. Jurgen Gordes

REWE
An der Munze 12-18
D-50668 Koln
Phone: (011)(49) 221-16041-0
Fax: (011)(49) 221-16041-80
Contact: Mr. Heinz Kressner
Mr. Alwin Ficke
Mail Order Houses

QUELLE - Gruppe
Nurnberger Strasse 91-95
D-90762 Furth
Phone: (011)(49) 911-14-0
Fax: (011)(49) 911-1424-361
Contact: Mr. Willi Harrer

OTTO Versand GmbH&Co.
Wandsbeker Strasse 3-7
D-22179 Hamburg
Phone: (011)(49) 6461-0
Fax: (011)(49) 6461-8571
Contact: Mr. Gert RietzR

Robert KLINGEL GmbH&Co.
Sachsenstrasse 23
D-75177 Pforzheim
Phone: (011)(49) 07231-305-0
Fax: (001)(49) 07231-305-1524/1516
Contact: Mr. Herbert Weidner

Grossversandhaus B. BADER GmbH&Co.
Maximilianstrasse 48
D-75172 Pforzheim
Phone: (011)(49) 7231-303-0
Fax: (011)(49) 7231-303-710
Contact: Mr. Wolfgang Bader

Major German Retailers:

ANSONS'S Herrenhaus KG
Kettwigerstr. 1
D-45127 Essen
Phone: (001)(49) 201-2013-01
Fax: (001)(49) 201-2013-260
Contact: Mr. Hendrik Cloppenburg

Hans POHLAND GmbH&CoKG
Schadowstr. 71
D-40212 Dusseldorf
Phone: (001)(49) 211-36781-0
Fax: (001)(49) 211-36781-39
Contact: Mr. Joerg Bassler:

WEINGARTEN GmbH&CoKG
Friesenplatz 19
D-50673 K/ln
Phone: (001)(49) 221-951415-0
Fax: (001)(49) 221-525781
Contact: Mr. Weingarten

German Distriburtors

GIACOMO
Phone: (001)(49)7251
B ahnhofstr. 8
D-76698 Ubstadt-Weiher
Phone: (011)(49) 7251-6909-0
Fax: (001)(49) 7251-6909-32
Contact: Mr. Brunnert

Wolfgang Fritsche
Konigsallee 28
D-40212 Dusseldorf
Phone: (001)(49) 211-133988
Fax: (001)(49) 211-329059
Contact: Mr. Fritsche

Trade promotion opportunities:

Participation in international trade fairs in Germany is an
excellent vehicle for entry into this highly competitive and
sophisticated market. the following fairs represent strong
opportunities for exposure to buyers from all over the world and
serve as international meeting places for the industry.

Event Herrenmodewoche/Interjeans
Site Cologne
Dates February 4-6,2000
August 4-6, 2000
Organizer Messe- und Ausstellungs- Gesellschaft mbH
Messeplatz 1
D-50679 Cologne
Phone: (011)(49)221-821-0
Fax: (011)(49) 221-821-2574
Contact Herrenmodewoche: Mr. Ralf Mueller
Interjeans: Mr. Claus Siemes

or, their U.S. Representative:

German American Chamber of Commerce, Inc.
Cologne Trade Fairs Department
666 Fifth Avenue
New York, NY 10103
Phone: 212-974-8830
Fax: 212-974-8867
Contact: Mr. Franz Balve

Event Mode Messe Leipzig
Site Leipzig
Dates February 2000
August 2000
Organizer Leipziger Messe GmbH
Messe Allee 1
D-04356 Leipzig
Phone (011)(49) 341-678-0
Fax (011)(49) 341-678-8762
Contact Mr. Heinz Juergen Karcisky

or, their U.S. Representative

Weidenbach & Associates Inc.
Leipziger trade Fair Agency
Suite 1104, Int'l Tower
229 Peachtree Street N.E.
Atlanta, Ga 30303
Phone: (404) 525-7030
Fax: (404) 525-6658
Contact: Mr. Bill Weidenbach

DISCLAIMER
Information in this report relies on sources including Government Publications, Opinions of industry experts and other public sources. Infomat can accept no responsibility for the accuracy or completeness of such information or for loss or damage caused by any use thereof. All prices subject to change without notice.

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Published: 2006 August
Market: Mens
Region: Germany
Industry: Apparel Textiles
Pages: 45
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