"The European apparel industry has got a boost with advent of e-commerce. European online retail sales are expected to hit €191 billion ($249 billion) in 2017, up from €112 billion ($146 billion) in 2012 led by the current back-space facing countries of Spain and Italy, according to new data published by Forrester. Also, online retailing is expected to go up a good 2 per cent from 2013 to 2017."

Despite facing challenging economic conditions, the European fashion market is popular because of its high-end fashion labels, innovations and retailers. Accounting for one third of the world’s total textile trade, annual consumer apparel sales in Europe are over $300 billion. ‘Made in Europe’ tag is a sign of uunparalleled quality and award-winning craftsmanship. The ongoing economic crisis however, has had a negative impact on fashion business. But, experts opine with lower oil prices, further monetary easing and a weaker euro, the European economy is forecasted to grow by 1.7 per cent in 2015.

Import/export market scenario

According to IFM, Europe’s apparel imports statistics in the first semester of 2015 indicates that China is a dominant player in the segment as top clothing supplier, providing €12.6 billion of goods (+13 per cent). Bangladesh holds the second position, which showcases a significant growth of over 26 per cent, reaching €6.8 billion, while Turkey declined by 1 per cent to €4.5 billion. Significant expansion was also achieved by India with 13 per cent rise, Cambodia (32 per cent), Vietnam (30 per cent), Pakistan (28 per cent) and the US (28 per cent). At the bottom of the ranking, with €146 million worth of goods, Myanmar records a 64 per cent increase.

Industry estimates suggest that while India exports apparel worth $5 billion (about Rs 27,000 crores) to EU, Bangladesh exports apparel worth $8 billion (about Rs43,400 crores) to the 27-nation bloc. Europe registered a sudden yet steady growth percentage in the fiscal 2014, claiming the half share of the world’s clothing production pie. Earlier, European brands stuck to their own selling points, however brands are now spreading their presence. Now fast-fashion labels such as, H&M and Zara along with advent of e-commerce is creating tough competition for retail biggies like M&S and Benetton.

Almost all EU countries are forecasted to witness a surge in terms of growth owing to their efforts to bounce back implementing economic reforms. Major changes are being seen in Germany which is expected to see a GDP growth of 1.57 per cent by the end of 2016. In case of France, while domestically it is doing well owing to low inflation and tax-cuts, ease in credit conditions along with government taken supportive economic strategies, export performance has been bleak and needs improvement. The United Kingdom will prove to be the best paced one in the entire Europe with a GDP of 2.23 per cent in 2016.

Apparel market analysis across Europe

Retail value sales of men’s wear saw a growth of 12 per cent in the last fiscal in Hungary, almost similar to that of the women’s wear segment both in terms of volume and value sales, owing to the overall upsurge in expenditure on apparel products by the masses. The top spot for men’s attires have been enjoyed by C&A Mode in the country whereas H&M takes up the title for the most sold in Hungary.

Portugal has seen low improvement in the national economy. However, promotional campaigns taken up as an ultimate success method by many brands including Homino Emerito and Cortefiel which offered heavy discounts to take sales and clear stocks further up led to a rise in demand. End of season sales also saw a boom, taking down average unit prices. Zara remained the most important label in the country with a 7 per cent value share in 2014.

Both home-grown and foreign labels are doing well in Austria but menswear in particular has led to menswear taking up a larger piece of cake in Austria with H&M leading the success. The stable and high levels of disposable income in Germany served as a backbone to the consumer confidence and decisions. Especially in men’s wear, a great hike in the demand for high-quality leisurewear was witnessed along with the premium casual wear.

Fashion gets an e-commerce boost

The European apparel industry has got a boost with advent of e-commerce. European online retail sales are expected to hit €191 billion ($249 billion) in 2017, up from €112 billion ($146 billion) in 2012 led by the current back-space facing countries of Spain and Italy, according to new data published by Forrester. Also, online retailing is expected to go up a good 2 per cent from 2013 to 2017.

The top most e-retailer of Europe Zalando is a 2008 established German label, which has witnessed a steady growth from being a shoe e-tailer to a clothing one in 2010 and now it has launched its own private labels as it plans to expand its reach into new geographies.

June 2000 incepted high-fashion retailer that operates via a website designed in the style of a magazine, Net-a-porter has been a success story too. The website takes up approximately 2.5 million unique visits in internet traffic to their website every month and has a series of sister and brother portals Mr Porter and Neta- Sporter. In early 2014, Net-a-Porter launched a print magazine called Porter, with an associated app and digital version of the magazine.

Several foreign fashion retailers too are exploring the European shores. South African fashion retailer Truworths for instance was recently in talks to acquire the UK’s Office Retail Group, making it the nation’s latest retailer to pursue offshore expansion. With over 650 stores in South Africa, the brand already has 23 franchise stores in the rest of Africa and the Middle East. It offers a collection of leisure wear, formal wear, evening wear, lingerie, shoes and accessories for women.