The following research report contains market research, analysis, statistics and business intelligence relating to research on Apparel Industry In Spain.

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ABSTRACT
Spain is a major producer of textiles and apparel and the country=s economy relies heavily on this sector. The sector employs more than 275,000 people, and accounts for 10.7 percent of the nation's total industrial employment.
Total market size for textile/apparel products in 1998 was US$18 billion. This value is expected to rise to US$20.2 billion in 1999 and to US$22.7 billion in the year 2000, assuming a 12 percent annual growth rate for the next two years.

The years 1995-1998 represented a recovery and consolidation period for the textile industry in Spain. The Asia crisis and the low growth of other world markets caused a strong entrance of foreign textile products into European markets. The industry is expected to grow in the next few years thanks to a prosperous economy with rising wages and increasing employment. Increased purchasing power will benefit the apparel industry especially. In sum, the textile industry in Spain has a positive future in the 21st century.

This report provides a general overview of the textile and apparel subsector and the areas that offer the best opportunities for U.S. companies interested in the sector.

The Harmonized System (HS) classification codes for these products include: HS6100 AArticles of Apparel and Clothing Accessories/ Knitted or Crocheted@ and HS6200 AArticles of Apparel and Clothing Accessories/ Not Knitted or Crocheted@
.
A. MARKET HIGHLIGHTS & BEST PROSPECTS

Market Profile
In 1998, domestic production of textiles and apparel was estimated at US$16.3 billion. This is expected to grow to US$17.1 billion in 1999 and to US$18 billion in the year 2000, maintaining an annual growth rate of eight percent for the next two years. In addition to apparel and home textiles, the textile market also provides textile products to other economic sectors, primarily the automotive and construction industries.
About 70 percent of domestic textile/apparel production is exported to the EU. Main consumers of Spanish production are France, Portugal, Italy, Germany and the United Kingdom. Spanish exports are also prominent in Mexico, Chile, Argentina, Israel, Morocco and Poland. By countries, the United States is the eighth largest importer of Spanish textile products after France, Portugal, Italy, Germany, UK, Morocco and Belgium. Spain=s apparel exports to the U.S. were US$132 million in 1998, a 5.9 percent increase from 1997.
Spanish imports of textile and apparel products in 1998 were valued at US$6.8 billion. With an annual growth rate of 12 percent over the next two years, they are expected to rise to US$7.5 billion in 1999 and to US$8.2 billion in the year 2000. Apparel accounted for 47.5 percent of the total textile imports in Spain last year. Main suppliers of these products to the Spanish market are Italy, France, Portugal and Germany. The U.S. is the 12th exporting country to the Spanish market.

Statistical Data
MARKET SIZE TABLE
(US DOLLARS MILLIONS)
Projected Average
Annual Growth Rate
for following two
1998 1999 2000 Years (2001-2002)

Import Market 6,800 7,480 8,228
12%

Local Production 16,290 17,104 17,959 8%

Exports 5,000 5,500
6,050 10%

Total Market 18,090 20,261 22,692
12%

Imports from U.S. 174.5 192 211 10%

Exchange Rates 149 155 155
Estimated Future Inflation Rate: 1.8 percent
1998 Import Market Share (Percent for U.S. and Major Competitors):
U.S. 2.6 percent; Italy 17.7 percent; France 9.8 percent; Portugal 8.8 percent

Source: @Textile/Apparel Sector Developments - 1998" Report, prepared by the Spanish Textile and Apparel Information Center and The Spanish Ministry of Industry
Best Prospects

Imports of manufactured textiles increased 9.1% in 1998.
Best prospects for U.S.-made apparel include:

Business wear (basic colors, good quality, medium-high price) for women.
High quality sportswear design segment of this market, with a casual style, but very good quality materials (mainly natural fibers) with sophisticated design styles and patterns.
Casual wear, mainly denim and cotton-made products and knitted apparel.
Spanish youth are strongly influenced by fashion trends from the U.S. thus casual wear with U.S. universities and sports teams, and casual wear in general (Gap style) are also very good prospects in this sector.

Another segment of the apparel sector where there has been a noticeable increase in the number of inquiries are Spanish importers requesting information on U.S. manufacturers of party/cocktail/night formal wear for women.
Children=s wearing apparel

These best prospects can be found under HS61 ™Articles of Apparel and Clothing Accessories/ Knitted or Crochetedš and HS62 AArticles of Apparel and Clothing Accessories/ Not Knitted or Crocheted@. B. COMPETITIVE ANALYSIS

Domestic Production

Local production of textile/apparel products totaled US$16.3 billion in 1998, increasing over two percent from 1997's figures. This value is expected to grow to US$17.2 billion in 1999 and to almost US$18 billion in the year 2000 with an annual growth rate of eight percent for the years 2001 and 2002. Local apparel production increased 3.5 percent in 1998.
The EU remains the biggest market for Spanish textiles, receiving 70 percent of total exports. The U.S. is currently the eighth biggest importer of Spanish textiles/apparel products, importing US$ 132 million in 1998.
EU: 1998 Local Production Evolution - Annual Percentage Variation
TEXTILES APPAREL
AUSTRIA 2.6 1.8
BELGIUM 9.8 -16.2
FRANCE -0.4 -7.4
GERMANY 0 -4.4 HOLLAND 3.6 7.9
ITALY -2.7 1.3
PORTUGAL -2.6 -1.6
SPAIN 0.9 2.7
UK -6.3 -9.4
EU TOTAL -1.6 -2.8

*** Source: EUROSTAT. Provisional data.
Third Country Imports

Total imports to Spain of textile/apparel products increased 9.1 percent to US$6.8 billion in 1998.
The four main European textile/apparel suppliers to Spain are Italy, France, Portugal and Germany. Italy holds 17.7 percent of market share while France comes in at 9.8 percent, Portugal at 8.8 percent and Germany at 8.5 percent.
As for non-European countries, China (seven percent) and many other Southeast Asian countries are also among the main suppliers of textile/apparel products to the Spanish market. This participation increased 1.5 percent to 25 percent of total Spanish imports in 1998 as opposed to the 20 percent held in 1996.
Total imports to Spain of wearing apparel increased 10.5 percent in 1998, amounting to almost US$3 billion. Apparel imports into Spain account for 47.5 percent of total textile product imports. Italy is also the main foreign supplier of wearing apparel (16.8 percent), followed by Portugal (14.4 percent), China (12.2 percent) and France (8.9 percent). Imports of apparel from Italy amount to US$544 million. Imports of Portuguese and Chinese apparel amount to US$465 million and US$408 million, respectively. French apparel imports to Spain amount to US$280 million. U.S. Market Position

Textile/apparel imports from the U.S. increased 3.1 percent in 1998 making the U.S. the twelfth most important supplier to Spain. During this same year, the U.S. constituted 2.6 percent of total product imports valued at US$174.5 million.
U.S. textile/apparel products imports to Spain are expected to increase by an annual rate of 10 percent for the next two years bringing import value to US$192 million in 1999 and US$211 million in the year 2000.
Total imports of wearing apparel products from the U.S. amount to US$15.2 million. C. END-USER ANALYSIS

Spanish women and label-conscious urban young people tend to be the prominent end-users in the apparel sector. Spanish consumers assign a great deal of importance to fashion and are beginning to care more and more about what they wear, giving special importance to brand names.
Modern western influence and the popularity of sports teams have taken hold among young people causing a demand for t-shirts, hats and other sports apparel with American sports team and university logos.
Natural materials, dark colors, comfortable styles and classic designs are the predominant characteristics in the clothes of professional Spanish women. Spanish women tend to prefer Spanish brand names such as Adolfo Dominguez, Sybilla, Pedro del Hierro, Antonio Miro, Oscar de la Renta, Roberto Verino, Agatha Ruiz de la Prada and Enrique Loewe. However, these brands only reach those consumers with high purchasing power because of their high prices. Because of this, the ™Asociacion de Creadores de Modaš (Association of Fashion Designers) was founded in 1999 where ten of the most important Spanish designers share a common goal: the combination of fashion and industry in order to make higher quality clothing more affordable.
Women=s spring and summer fashions tend to be similar to the casual style of the Gap and Banana Republic and can be seen in Zara Espana. Linen, cotton, wool and synthetic fibers are the main materials used in this genre of apparel.
Six out of ten Spanish women find quality to be their main motivation to buy in this sector while 30 percent feel that design is most important. Surprisingly, price is the most important factor for only 10 percent of women. A great proportion of these women (70 percent) also buy clothing for other people, mainly other family members. Almost 50 percent of men=s clothes are bought by their wives and 37.4 percent of these women also purchase clothing for their sons. This percentage is reduced to only 17.2 percent with respect to daughters. The most common shopping places for Spanish apparel consumers are shopping centers, individual stores along the street and department stores.
D. MARKET ACCESS

Import Climate

Overall, the import climate for American products is excellent. There are no restrictions on the importation of U.S.-made apparel products into Spain.
In general, there are no specific requirements for imported products to be packaged or labeled in metric units. Nevertheless, the metric system is used extensively and neither distributors nor consumers are used to other measuring systems. For import and export reasons, some companies use other measuring systems on their labels, together with the metric units, indicating also the country of origin or destination. Therefore, they only need one type of label, indicating the sizes in different metric systems. These multi-country labels, often also include the prices in different currencies, for the different countries of destination or origin.

Trademark protection in Spain favors registration. Spanish trademark law defines infringement of trademarks as unfair competition and establishes effective enforcement.
Customs duties were eliminated for trade between EU members-countries in 1993. Spain applies the current EU Common External Tariff (CXT) on imports from third countries, including the U.S. The customs duty for apparel imported from the U.S. ranges from 6.3 to 13 percent. U.S. suppliers can sometimes eliminate or reduce this disadvantage by either franchising local production to Spanish companies or by entering into joint ventures with local firms.
In general, Spanish importers prefer to import from the manufacturer directly instead of through export companies.
A Value Added Tax (IVA) of 16 percent is applied inSpain on all apparel products whether produced domestically or imported.
Clothing labels must provide the country of origin and cleaning instructions. Requirements relating to textile content, labeling, and packaging are regulated by Royal Decree 928/1987, published in the State Gazette on July 17, 1987. The decree establishes that textile and apparel products must clearly identify the manufacturer, provide the importer's tax registration number, and explicitly identify the quantity of textile materials used. The label must be written in Spanish. This regulation establishes a table on how to label specific materials and establishes specific requirements for certain apparel products.
Distribution/Business Practices

U.S. companies can sell apparel in Spain through an agent, using a distributor or by establishing a subsidiary. High quality, imported or locally produced foreign apparel is usually and more effectively sold in small, specialty chain stores. As stated above, joint ventures are often used in view of Spain=s existing industrial and trading infrastructure along with franchising which is considered an excellent means for penetrating the Spanish market.

For the most part, Spanish consumers acquire their fashion goods in specialty stores, boutiques and large department stores. The large supermarket chains attract fewer buyers of apparel products. In Spain, 60 percent of the space in shopping centers is occupied by apparel and fashion accessories boutiques. Variety and quality are the characteristics that the buyers seek in the boutiques located in the shopping centers, while higher prices are the main drawback.

There is a growing trend among manufacturers to create their own chain of distribution. Franchise has become a very common system for brand names distribution of fashion products and wearing apparel in Spain. The Spanish Franchise Association states that there are over 78 Spanish brand name franchises in the fashion sector with almost 3,000 boutiques. Eleven percent of Spanish franchises are in the wearing apparel and fashion sector.

Financing

U.S. companies should be aware that, since January 1999, the Euro was introduced as an alternative currency to the Spanish peseta. According to the main trade associations in the sector, it is not yet known how importers/distributors will decide to conduct financial transactions within the sector, but suppliers should be prepared to conduct business in both currencies.

From January 1, 1999 to January 1, 2002, the Euro will be going through a transitory phase during which only financial transactions that do not require the physical use of bills and coins -- mainly bank operations -- will begin to be done in Euro. Spain, and the other 10 EU countries that have accepted the Euro as their official currency (Denmark, Sweden and the U.K. have opted out and Greece does not meet the requirements), will also use this time period to familiarize their citizenry about this new, unified currency.

Circulation of Euro bills and coins is expected to begin on January 1, 2002. Spain, and its EU counterparts, will have a six-month transition period (from January 1, 2002 to July 1, 2002) in which both their country=s currency and the Euro will be allowed to be used simultaneously. On July 1, 2002 individual currencies will disappear and the Euro will become the official currency of these eleven countries.

There are no exchange controls or restrictions on large international cash transactions. Opening irrevocable letters of credit is a straightforward process in Spain. Payment practices are usually in 30, 60, or 90-day terms.

Key Contacts

ASSOCIATIONS:

ACOTEX - Asociacion de Comercio Textil de la Comunidad de Madrid
Alberto Aguilera 66, 1 Dcha.
28015 Madrid
Tel: (34/91) 549-2397
Fax: (34/91) 544-9256
Contact: Mr. Juan Luis Mato Rodriguez, President

Agrupacion Espanola de Fabricantes de Generos de Punto
Avda Diagonal 474, 1
Edificio Windsor
08006Barcelona
Tel: (34/93) 415-1228
Asociacion de Empresas Confeccionistas de Madrid
ASECON
c/ Princesa 47, 3C
28008 Madrid
Tel: (34/91) 541-4094
Fax: (34/91) 541-4094
Contact: Felipe Felix Ranera Sancho, President

Asociacion Espanola de Importadores y Distribuidores de Moda
ANIMODA
C/ Lagasca 27, 2A
28006 Madrid
Tel: (34/91) 435-2805
Fax: (34/91) 576-1735
Contact: Jose Miguel Occhi, President

Consejo Intertextil Espanol
Sant Pere Mes Alt 1, Pral. bis
08003 Barcelona
Tel: (34/93) 268-4258 / 268-2644

Asociacion de Investigacion de Empresas de la Confeccion
AIEC
Gran Via Corts Catalanes 670, 4
08010 Barcelona
Tel: (34/93) 317-6200

Asociacion de Investigacion de la Industria Textil
AITEX
Pza. Emilio Sala 1
03800 Alcoy (Alicante)
Tel: (34/96) 554-2200

Grupo Moda Gallega
C/ Doctor Cadaval 33, 2B
36202 Vigo
Tel: (34/986) 435-599 / 436-937

Coordinadora Textil de Cataluna
CTC
c/ Bruc 72-74, 6
08009 Barcelona
Tel: (34/93) 487-4572

Asociacion Espanola de Fabricantes de Productos para la Infancia
ASEPRI
c/ San Fernando 15, 7
46001 Valencia
Tel (34/96) 392-5151
Fax (34/96) 391-8370

Federacion Espanola de Empresas de la Confeccion
Princesa 25, planta 6, oficina 1
28008 Madrid
Tel: (34/91) 541-4094
Fax: (34/91) 542-3352
Contact: Pablo Garcia Perez, President

CITYC, aie - Centro de Informacion Textil y de la Confeccion
Rosellon 216, 5
08008 Barcelona
Tel: (34/93) 487-6057
Fax: (34/93) 487-2362

DISTRIBUTORS AND IMPORTERS:

HIPERCOR, S.A.
Hermosilla, 112
28009 Madrid
Tel: (34/91) 401-85-00
Fax: (34/91) 402-62-88

ALCAMPO, S.A.
Santiago de Compostela Sur, s/n
Edificios de Oficinas Madrid - 2
28029 Madrid
Tel: (34/91) 730-66-66
Fax: (34/91) 730-98-37

CENTROS COMERCIALES CONTINENTE, S.A.
Ctra. de Burgos km 14,500 Edificio Continente
28108 Alcobendas (Madrid)
Tel: (34/91) 663-49-00
Fax: (34/91) 663-48-09

EL CORTE INGLES, S.A.
Hermosilla, 112 Tercera Planta
28009 Madrid
Tel: (34/91) 402-81-12
Fax: (34/91) 402-58-21
Contact: Mr. Vicente Fernandez

Macro International Purchasing
Goya, 115
E-28009 Madrid
Tel: (34/91) 432-45-96
Fax: (34/91) 432-94-67

Aguirre y CIA S.A.
PS Castellana, 30, Bajos Y Segunda
28046 Madrid
Tel: (34/91) 435 5740
Fax: (34/91) 576 5021

CMM Import SA
CL Jesus Maria, 14
28012 Madrid
Tel: (34/91) 527 5696
Fax: (34/91) 527 5696

Caper International Trading SL
CL Bachiller A Lopez, 3
28100 Alcobendas (Madrid)
Tel: (34/91) 633 9234
Fax: (34/91) 633 9686

CIA Importadora de California
CL Alfonso XII, 36
28014 Madrid
Tel: (34/91) 420 2034
Fax: (34/91) 420 0907

Cortefiel SA
AV Llano Castellano, 51
28034 Madrid
Tel: (34/91) 387-34-00
Fax: (34/91) 387-38-09

Distribuidora Internacional Moda Hombres S.L. (DIMHOSA)
CL Albarracin, 35
28037 Madrid
Tel: (34/91) 754 5061
Fax: (34/91) 754 5667

Fashion Import S.A.
Duque de Alba, 9-Segunda Drcha
28012 Madrid
Tel: (34/91) 369-43-14
Fax: (34/91) 369-31-27

Hispa Trading SL
CL Alejandro Rodriguez, 26
28039 Madrid
Tel: (34/91) 571 0155
Fax: (34/91) 571 1179

Hispak Import Export SL
Av Gran Via, 69
28013 Madrid
Tel: (34/91) 548 1183
Fax: (34/91) 547 7983

Industrias y Confecciones SA
Thomas Breton, 62
28045 Madrid
Tel: (34/91) 468-03-00
Fax: (34/91) 467-87-23

Moda and Company Trading S.L.
Espanoleto, 17
28010 Madrid
Tel: (34/91) 308-69-22

Triumph Internacional S.A.
Emilio Munoz, 43
28037 Madrid
Tel: (34/91) 304-52-00
Fax: (34/91) 754-31-32

Calao Import Export S.L.
Mendez Alvaro, 59
28045 Madrid
Tel: (34/91) 528 3248
Fax: (34/91) 539 1099

Comercial Importadora Exportadora SL
CL Ramon Patuel, 3
28017 Madrid
Tel: (34/91) 356 4103
Fax: (34/91) 361 0381
Farben SA
Cl Coslada, 7
28028 Madrid
Tel: (34/91) 725 7291
Fax: (34/91) 726 4534
Trade Promotion Opportunities

Most important textile trade/fashion shows are held in the primary urban centers of Madrid, Barcelona, and Valencia.

Valencia
--------
There is one significant trade/fashion show called FIMI that is held at the FeriaMuestrario Internacional de Valencia. The Office of Textiles and Apparel (OTEXA) of the U.S. Department of Commerce in cooperation with the U.S. Commercial Service of the American Embassy in Madrid, Spain is planning to organize a U.S. pavilion at FIMI on January 14-16, 2000. FIMI is a fashion and accessories for children aged 0-16 and prenatal ladies wear show.

For more information on the U.S. pavilion, please contact:
Ms. Kim Nguyen Office of Textiles and Apparel (OTEXA)
U.S. Department of Commerce
14th & Constitution Avenue, NW
Washington D.C. 20230
Phone: (202) 482 2043 Fax: (202) 482 2859

For more information on FIMI, please contact the trade show organizer in Valencia:

Feria Muestrario Internacional de Valencia
Avda. De las Ferias, s/n
46035 Valencia, SPAIN
Mailing address:
Feria Muestrario Internacional de Valencia
Apartado Correos 476
46080 Valencia, Spain
Phone: (34-96) 386 1100
Fax: (34-96) 363 6111

Madrid
------
All Madrid trade/fashion shows are held at IFEMA, Madrid's fair
grounds and trade show authority.

IFEMA- Feria de Madrid
Parque Ferial Juan Carlos I
28067 Madrid, SPAIN
Tel: (34-91) 722-5000
Fax: (34-91) 722-5799
Mailing address:
IFEMA- Feria de Madrid
Apartado Correos
67067 Madrid, SPAIN

There are three annual trade shows in this sector that are held at IFEMA in Madrid twice a year: INMODA-ANIMODA (Women's Fashion Fair); IMAGENMODA (International Women's Fashion Fair); and, INTERMODA (Ready to Wear Fashion Fair)

Other trade/fashion shows held in the same location are:
IBERPIEL/PELETERIA (Fur and Leather Fashion Fair) and INTIMA-MODA BANO (Swimwear, Corsetery, Lingerie and Hosiery Fair)

Barcelona
---------
Trade/Fashion shows in Barcelona are all held in the Fira de Barcelona:

FIRA DE BARCELONA
Avda. Reina M Cristina, s/n
08004 Barcelona, SPAIN
Tel: (343) 233-2000
Fax: (343) 233-2001

There are two biannual trade/fashion shows in Barcelona: GAUDI-BARCELONA (Men's and Women's Clothing and Accessories) and MEDITERRANEO JEANS (Jeans Fashion and Casual Wear Trade Fair)

There are also four annual trade/fashion shows: INTIMODA (Undergarmet fashion Show); NOVIAESPANA (Fashion Exhibition of Wedding Dresses, Communion, Ceremonies, and Accessories); EUROTEXTIL (Textile Making-up Subcontracting Exhibition, Fabrics Exhibition,Trimmings and Accessories Exhibition); and INTIBANO (Swimwear Fashion).

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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For the 2008 Edition

Published: 2006 August
Market: Mens Womens Childrens
Region: Spain
Industry: Apparel
Pages: 45
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