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

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ABSTRACT
Traditionally, Finns have spent less money per capita on buying new clothing than in the other Nordic Countries. However, as a result of the current steady economic growth, people are willing to spend more money on new apparel. In 1999, the textile and clothing consumption increased about 4 percent. Imports of clothing articles increased by 2 percent to a value of FIM 5 billion (USD 806 million). The sales of men's clothing increased by 2.7 percent and the sales of women's 4 percent. The sales increase in women's clothing draws from the positive growth in sales of women's lingerie and under-ware. The sales of children's and infant clothing increased by 5 percent.
1. Economic prospects look favorable in Finland. Household confidence in domestic economy is strong and disposable income has increased. The unemployment rate has decreased, inflation is low and private consumption in growing steadily, representing a 4 percent growth in 1999. Household income is increasingly used for housing/textiles and clothing expenses.
2. Low-price imports play a major role in the Finnish clothing market. During the 1990s, the market share of low-price apparel has generally been 58 percent. This category of clothing includes imports from Portugal, Greece and all other countries outside the EU and European Free Trade Association (EFTA), with the exception of Japan, Canada and the United States. In 1999, imports of apparel increased from Sweden, Denmark, China and Estonia but decreased from Portugal, Italy and Great Britain. Imports from China covers 17 percent of the total import market. In volume terms, Japan, South Korea, Bangladesh and Vietnam increased imports to Finland. Imports from Canada and the United States decreased by 10-15 percent. Direct imports from the United States account for about 1-2 percent of the total import market. However, there are several U.S. clothing brands that are either manufactured in or imported from another country than the United States. Also, imports through other European Union (EU) countries such as the Netherlands and the United Kingdom is common.
3. Local clothing industry has gone through drastic changes during the past ten years. Output has fallen to about a fourth during that time. Domestic demand has declined as a result of low cost country imports and increasing manufacturing costs have weakened the domestic manufacturers competitiveness. Some of the major Finnish clothing manufacturers such as the P.T.A. Group Oy and Luhta Oy have re-located their manufacturing facilities to low cost countries such as Estonia and Portugal. In 1999, the local apparel industry employed some 14,000 employees and the gross value of production was FIM 3,2 billion (USD 516 million), a 4.2 percent increase from previous year. The value of exports in 1999 was FIM 1,2 billion (USD 198 million). Over half of Finland's clothing exports goes to EU countries.

4. The importance of wholesalers and department store chains in apparel distribution is increasing, while the importance of agents is decreasing. Most wholesalers want to operate directly with prospective foreign companies instead of using agents. The major local wholesalers/importers are Kesko Oy, SOK-chain and Stockmann Oy. Each company also has their own retail operations including several department stores and separate chain stores. In 1999, the share of retail sales for clothing chains, such as the Swedish owned H&M or Kesko Oy's owned Vaatehuone was 43 percent. The share of retail sales for department stores was 31 percent.
5. The Finnish import climate for U.S. -origin products is very favorable. There are no trade barriers, quotas or other major regulations to overcome. Customs duties vary between 6.3-13.4 percent and the Value-Added Tax (VAT) of 22 percent is applied to all imported goods, regardless of the origin of product.

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.

$3500 USD
For the 2008 Edition

Published: 2006 August
Market: Mens Womens Childrens
Region: Finland
Industry: Apparel
Pages: 45
Delivery: 7-12 Business Days
SKU: infre0000369