MISSION STATEMENT

U.S. WOMEN’S PLUS-SIZE APPAREL TRADE MISSION
 TO THE UNITED KINGDOM AND GERMANY

London, England, February 28 - March 1, 2005
Dusseldorf, Germany, March 3 – 4, 2005

Mission Description:

The Commerce Department’s Office of Textiles and Apparel (OTEXA) and the U.S. Commercial Service will sponsor a woman’s plus size apparel trade mission to Europe on February 28 - March 4, 2005.  

This mission is designed to provide U.S. manufacturers and suppliers of women’s plus size apparel and related textile products with a first hand opportunity to assess their market potential in England and Germany and meet key decision makers and buyers in the fashion industry.    U.S. manufacturers and suppliers offering high-quality, upscale product lines, including evening wear, are encouraged to seriously consider this highly efficient and cost-effective opportunity to enter these markets and develop a solid business platform for future growth throughout the European Union.  

Basic Schedule of the Mission:    

The U.S. Women’s Plus-Size Apparel Mission with stops in London and Dusseldorf, is scheduled with the local fashion merchandizing calendar in mind to provide participants with a timely introduction to prospective business partners, identified to match our individual mission participant’s product lines and business interests.   The one-week mission program will include in-depth market briefings presented by market industry experts, focused on local business practices in the apparel and retail sectors.   In addition, mission participants will benefit from their individually customized schedule of one-on-one business meetings and site visits. Mission members will also enjoy an opportunity to network with a broader cross section of the business community and government representatives during U.S. Embassy and Consulate Receptions organized by the U.S. Commercial Service in honor of the trade mission participants.    

Commercial Setting:

The United Kingdom

The United Kingdom is showing increasing demand for women’s plus size fashions, with 47% of UK’s female population currently at US size 14 or larger. Traditionally, the plus size category in the UK has been a low priority, “afterthought” market that has been characterized by limited product availability, very few lines and sidelined fashion trends.

More recently the combination of an aging population and expanding waste lines, has many retailers taking notice of the growing demand and need for fashionable plus size women’s apparel.    Today’s plus-size women in the UK, similar to their American counterparts, are looking for fashionable, stylish clothing that will flatter their body types.   For them the issue is no longer simply finding plus size clothing, it is a matter of finding fashionable plus size clothing that meets their needs and life styles.

Business prospects for U.S. suppliers of women’s plus size apparel have never been better in the UK, given current market demand and the strong purchasing power of the British currency.   At $30.2 billion dollars, women’s apparel accounts for 82% of the market’s total value in 2002, and the share has tended to increase since the start of the decade.   Imports into the UK are heading toward complete domination of the mainstream sectors of the clothing market as major UK manufacturing and retail groups choose to source their production, (for their own-label supply) abroad. Hong Kong is the leading supplier to the UK, and this applies to many of the women’s wear categories, such as trousers/jeans, blouses, skirts, overcoats etc.   China is increasing in importance, and Sri Lanka is the most important source from the Near East.   However, these imports tend to produce a bias towards the supposed ‘average’ woman, and not plus size.

The US exported $27.3.million dollars worth of apparel to the UK in 2003.   There are numerous opportunities for US manufacturers in this market as British woman are far from satisfied with the availability of larger size clothing. The US apparel industry has catered to this particular market for years, starting in the mid-seventies with stores like ‘The Forgotten Woman’.   In addition, well known US designers such as Liz Claiborne have catered to the plus size woman.   Claiborne developed the ‘Elizabeth’ range for this particular market.

Germany:

As in the U.K., Germany is developing rapidly into a growing market for women’s plus size fashion.   With 82.5 million inhabitants, Germany is the most populous country and the largest apparel market in Europe.   It is also home to the largest apparel trade shows in the world.   At retail, Germany’s apparel market had a turnover of about $60 billion dollars in 2002, of which approximately 52 % was for women’s clothing, or $31.2 billion dollars. In turn, the most recent estimates by industry experts put the share of plus size clothing at up to 29% of the women’s apparel market, or approximately $9 billion dollars, with trends and predictions for further increases.   Although there are no official definitions or statistics, which reflect the plus size, segment, as of 2000 approximately 29% of German women between the ages of 14 and 64, 7.44 million, wore US size 14 (German size 44) or larger.   Due to changing lifestyles and nutritional habits this percentage and the demand for fashionable plus size clothing is expected to increase.

Business prospects for U.S. suppliers of women’s plus size apparel are very good in Germany.   A number of retailers, such as Ulla Popkin, have specialized on the women’s plus segment and larger retail chains have added or are now adding plus collections also.   The textile specialty trade, comprising all companies, medium specialty stores and chain stores selling predominantly textiles, is still the primary retail outlet for all apparel, with an annual turnover of $30.7 billion and a market share of $53.9%. It is followed by another major channel in Germany, mail order business (15.2%) and then by department stores (13%) and non-textile companies (12%). Each inhabitant of the German Republic spent in 2003 more than $850 for apparel and textiles. German consumers of plus size apparel are sophisticated and demand high quality and style at good value.

Although there is some local production and exports of apparel from Germany, Germany imports almost its entire consumption needs for apparel.   Major suppliers to Germany are China, Turkey, Poland, Italy and other sources in the Far East and Eastern Europe.

The US exported $44.3 million dollars (wholesale prices) worth of apparel to Germany in 2003. With its long tradition of catering to the plus size segment and the currently favorable US dollar/Euro exchange rate, US suppliers of fashionable women’s plus sizes have an excellent opportunity at present to expand market share in this growing segment in Germany.  

As members of the European Union, the United Kingdom and Germany share common tariffs on imports from non-EU countries.   Currently the EU duty rates on non-EU imports range from 6.3% to 12.4%.   In the U.K. there is also a VAT charge of 17.5 percent while Germany’s VAT is 16%.   Both the United Kingdom and Germany have open, transparent economies and U.S. companies should not encounter any particular barriers to market entry.   Once entered into the E.U., goods may move freely throughout the entire European Union market.

Mission Goals:

This mission’s goal is to increase the mission members’ exports of women’s plus size apparel to Europe, and to secure representation agreements for mission members with pre-screened agents and distributors.

Mission Scenario:

Between ten and fifteen companies are expected to participate in this mission. The Department of Commerce reserves the right to adjust this number due to market or logistical constraints. The Department also reserves the right to select participants based on advice provided to us from consultants and the U.S. Commercial Service in London and Dusseldorf.

Appointments will take place in two cities in London, England, and Düsseldorf, Germany.   Mission participants will meet individually by appointment with buyers, agents and distributors pre-screened by the U.S. Commercial Service.   There will be a mission briefing for participants on local market conditions and selling opportunities.

The Participation Fee will depend on a number of factors, including the number of participants, cost of exhibition space and display rental, market promotion, travel and per diem. The total cost of the mission will be divided by the number of participants. We anticipate that the mission cost will be approximately (TBD) per company, excluding travel, hotel accommodation, ground transportation, and meals.

A “Fact Sheet” will be available to any interested party by November 10, 2004 containing final costs and mission details.

Mission Timetable:

Criteria for Participation and Selection:

• Relevance of a company’s product line to mission goals
• Timeliness of signed application and participation agreement by company (including a (TBD) participation fee).
• Minimum of eight, maximum of fifteen participating companies on the mission.
• Potential for business in Europe.

Mission recruitment will be conducted in an open and public manner, including publication in the Federal Register, posting on the Internet, press releases to the general and trade media, direct mail and fax, notices by industry trade associations and other multiplier groups, and at industry meetings, conferences, trade shows, etc.

A company’s products must be either produced or converted in the United States.   If manufactured or produced outside the United States, each product displayed must be marketed under the name of a U.S. firm and have U.S. content representing at least 51 percent of the value of the finished product.   Any partisan political activities (including political contributions) of an applicant are entirely irrelevant to the selection process.

Contact Information:

At OTEXA: Rachel_Alarid@ita.doc.gov telephone (202) 482-5154

At USCS London: Marcella.Marcheso@mail.doc.gov.

At USCS Dusseldorf Birgit.Hesse@mail.doc.gov

Or mail to:

U.S. Department of Commerce
1401 Constitution Ave. N.W.
Room 3100
Washington D.C. 20230