Cotton Household Textiles - Opportunities for Exporters.

Imports are playing an increasingly important role in the large

West European market for cotton household textiles, according to a new

study. Although total consumption of cotton bed linen, towels and table

linen is not growing to any great extent in these markets, the expanding

role of imports to meet the extensive demand that exists is of

particular interest to developing countries, which are among the

principal foreign sources. Over the 1980-88 period the share of demand

covered by imports rose dramatically - from 27% to 42% for bed linen,

from 48% to 62% for towels and from 39% to 56% for table linen. In 1988

developing countries accounted for 42% of total imports of bed linen

into the four leading importing countries (supplying about 27,000 tons),

35% of the towels imported (over 20,000 tons) and 57% of the table linen

(6,500 tons). Although importers do not readily switch to new suppliers,

exporters who can provide goods of consistent, specified quality

according to delivery schedules may be able to find openings.

Market trends

Imports of bed linen, table linen and towels into the four major

markets reviewed (France, Federal Republic of Germany, Italy and the

United Kingdom) increased annually between 1980 and 1988, moving from

around 84,000 tons of goods at the beginning of the decade to about

133,000 tons in 1988. This upward trend may well continue to the

advantage of developing country exporters. However overall consumption

of household textiles has been more or less stable over the last several

years. Since 1980, for example, the total market for bed linen in Italy

and France has grown slowly, while in the United Kingdom and the Federal

Republic of Germany it has remained relatively static. Demand is not

expected to grow dramatically in any of these product groups, but the

share of imports should expand within the total market.

Bed linen: Imports of bed linen into the four major West European

markets accelerated during the 1980s. Between 1980 and 1988 total

imports of bed linen rose by about 68%, from 38,100 tons to 63,800 tons.

Imports of cotton and cotton-rich bed linen increased even faster,

expanding by 97% during the same period, to 56,100 tons in 1988.

The share of imports accounted for by developing countries has

grown considerably. While in 1980 these countries supplied 30% of the

total, eight years later their share had reached 42%. In volume terms,

imports from these countries attained a record level of 27,000 tons in

1988. This compares with 16,900 tons imported in 1987 and 11,600 tons in

1980.

Of the four countries surveyed, the Federal Republic of Germany is

by far the largest import market for bed linen. In 1988 its total

foreign purchases in this category amounted to 28,100 tons, 15% higher

than in the previous year and 80% above the 1980 level. While over 98%

of these imports were classified as cotton and cotton-rich, it can be

assumed that the goods in question were almost entirely of cotton.

Developing countries accounted for around 44% of the Federal

Republic's imports in 1988, or 12,200 tons. The major suppliers

among this group were Pakistan, Turkey and India, which exported 3,935

tons, 3,311 tons and 2,057 tons respectively to the Federal Republic.

These three countries combined accounted for about three-quarters of the

total imports from developing countries. exports small quantities of bed

linen to the Federal Republic, while Indonesia has become a new source,

supplying 369 tons to this market in 1988.

Imports of bed linen into both the United Kingdom and France have

also expanded over the last several years, although from a lower level.

In the United Kingdom, of total imports of 14,300 tons in 1988,

approximately 6,900 tons were supplied by developing countries, while in

France developing country imports reached 5,100 tons that year out of

total imports of 14,400 tons. As in the Federal Republic of Germany, the

major supplying developing countries to the United Kingdom in 1988 were

Pakistan, with 3,263 tons; India, with 1,421 tons; and Turkey, with

1,022 tons. These three accounted for 83% of total imports of bed linen

from developing countries. However, unlike in the Federal Republic of

Germany where 63% of developing country supplies were of printed woven cotton bed linen, in the U.K. market the major imports were of unprinted

goods.

Imports of bed linen into France are predominantly made of woven

cotton, both printed and unprinted. A large number of countries supply

this market, each with relatively small quantities. While Pakistan,

India and Turkey are leading sources, Thailand was the major exporter of

bed linen to France in 1988 with 1,388 tons. China, Tunisia, Egypt and

Mauritius also supply small quantities to France.

Italy is the largest manufacturer of bed linen in the European

Community and is the smallest importer of this product. In 1988 its

total foreign purchases of these items reached 7,000 tons, 23% higher

than a year earlier. Nevertheless, Italian imports continued to expand

during the 1980s, and by 1988 were nearly 80% above the 1980 level.

Italy's orders from developing countries almost doubled, from 1,400

tons to 2,700 tons between 1980 and 1988, with the major suppliers being

Pakistan, Turkey and China.

Total and per capita consumption of bed linen in the major West

European countries is very large, albeit relatively stable. In 1988

consumption reached 150,800 tons. While this was almost 13% higher than

in 1987, consumption was only 5% above the 1980 figure. Since cotton is

by far the most important fibre for bed linen, shifts are likely to

occur around a stable level of consumption as cotton prices fluctuate.

Given the per capita income in the Federal Republic of Germany, it is

not surprising that consumption of bed linen is the highest there of the

four countries surveyed. The reason for the slowly changing level of

consumption in that market during the 1980s was both a low population

growth rate and a shift towards goods of a higher quality. Furthermore,

bed sizes tend to be up to 20% larger than in both France and the United

Kingdom, which would also account for a higher volume of consumption.

The ratio of imports of bed linen to total consumption increased

significantly for the four markets during the 1980s, from almost 27% in

1980 to 42% in 1988. The Federal Republic of Germany has the highest

import dependency ratio for bed linen, which in 1988 reached over 60%,

almost doubling the 1980 figure. The ratios have also increased in

France, the United Kingdom and Italy. By 1988 these stood at 41%, 46%

and 18% respectively. While these proportions are in themselves high,

large quantities of fabrics - of which the bulk is cotton - are also

imported into Western Europe to be converted into finished products. In

the case of the United Kingdom, for example, imports of cotton fabrics

account for almost 90% of total materials used in manufacturing bed

linen, while the comparable figures for France, the Federal Republic of

Germany and Italy are above 50%. An estimated 70% of the bed linen

consumed in the major markets of Western Europe is made from imported

fabrics.

Towels: In direct contrast with the unchanging level of domestic

production, the importation of made-up towels into the four markets has

shown strong growth, particularly since 1985. After changing little

during the first half of the 1980s - at about 38,000 tons - imports of

towels have risen in each successive year. Total foreign purchases

amounted to 57,800 tons in 1988, 13% above the 1987 level, which was

itself almost 19% higher than in 1986. Cotton and cotton-rich towel

imports - again almost exclusively of pure cotton - reached 56,000 tons

in 1988, 97% of the total consumed.

Imports from developing countries have shown a similar upward

movement since 1985 in terms of volume, and their share of the market

has also risen. By 1988 supplies of made-up towels from developing

countries had reached 20,100 tons, 3,800 tons higher than in 1987 and

more than double the 1985 figure. The market share of developing

countries was 35% in 1988 compared with 26% in 1985.

As with many other textile products, the United Kingdom is the

largest import market for towels. In 1988 these imports totalled 20,300

tons, 25% higher than in 1987 and three-fifths above the level at the

beginning of the decade. Almost all imports are of pure cotton, with the

bulk being of terry towelling. Supplies to the United Kingdom from

developing countries amounted to 6,300 tons in 1988, 19% higher than a

year earlier; two-thirds of these were made from terry fabrics. A large

number of developing countries supply the U.K. market. The most

significant in 1988 were Pakistan, China, Turkey and India, which

exported 1,284 tons, 1,252 tons, 1,187 tons and 901 tons respectively.

Brazil, Egypt, Indonesia and Sri Lanka and, to a lesser extent,

Mauritius and Thailand were also emerging suppliers.

While the Federal Republic of Germany ranked only second as an

importer of towels into Western Europe, it was the largest consuming

country during the period as far as developing countries are concerned.

Total imports during 1988 amounted to 17,400 tons, 6% higher than the

previous year, with terry towels accounting for three-quarters of the

total. Imports from developing countries reached 7,600 tons the same

year, registering a gain of 21% over 1987. Brazil is the leading

supplier; in 1988 its exports of made-up towels to the Federal Republic

amounted to 2,400 tons, 31% of the total. These were entirely of terry

cloth. Other major suppliers were Pakistan, Turkey and China, each

providing over 1,000 tons, while smaller amounts came from Colombia,

India, Indonesia, Mauritius and Taiwan Province (China).

Although imports of made-up towels into both France and Italy have

also expanded, by 44% and 100% respectively between 1985 and 1988, to

total 13,700 tons and 6,400 tons, neither are large markets for

developing countries. Supplies from these countries amounted to 3,300

tons for France and 2,900 tons for Italy in 1988. Imports into France

come mainly from Pakistan, China, Brazil, Cameroon, India and Sri Lanka,

while Brazil, Pakistan, India and Cuba are significant exporters of

towels to Italy.

Total and per capita consumption of made-up towels in the four

countries has shown very rapid growth since the middle of the 1980s. By

1988 consumption in the four markets combined had reached 93,300 tons,

almost 7% above the 1987 level and 15% higher than that of 1980. Cotton

made-up towels accounted for 98% of total consumption. The relatively

high proportion of heavier bath towels in the U.K. market has resulted

in that country being the largest consumer of this item in weight among

the four markets. In 1988 U.K. consumption amounted to 31,600 tons,

one-third of the total of the four. The Federal Republic of Germany was

the second largest consumer, followed by France and Italy.

Between 1980 and 1988 the proportion of imports to total

consumption in the four countries rose from 48% to 62%. For France, the

Federal Republic of Germany and the United Kingdom, the ratio was above

60%, while that for Italy was 40%. The rise in this ratio was most

apparent in the case of the Federal Republic. Between 1980 and 1988 the

proportion went from 48% to 68%, which can in part be explained by a

rise in the volume of imports. Again, since imports of terry fabrics are

used in the domestic production of made-up towels, the actual import

share in terms of fabric content is higher, possibly by an additional

ten percentage points.

Table linen: As in the cases of both bed linen and towels, in

direct contrast to the declining level of domestic manufacture, imports

of made-up table linen showed a continously rising trend during the

1980s. Between 1980 and 1988 the total volume of table linen imported

into the four markets rose by 52%, from 7,500 tons to 11,400 tons.

Imports of cotton and cotton-rich table linen is a much smaller volume

market than either towels or bed linen, but the share of developing

country imports has shown impressive growth. In 1980 developing

countries supplied almost 39% of total imports, while eight years later

their share had reached 57%. In volume terms, imports from developing

countries attained a record level of 6,500 tons in 1988. This compares

with 3,800 tons in 1987 and 2,900 tons in 1980.

Table : Imports of cotton household textiles into major West

European markets(1) 1980-88

(1) France, Federal Republic of Germany, Italy and United Kingdom.

Within the European Community, the Federal Republic of Germany is

the largest market. Approximately 4,700 tons of table linen were

imported into that country in 1988, 38% higher than in the previous

year. Nearly 60% of that was considered as being cotton and cotton-rich.

Developing countries account for 83% of all such imports into the

Federal Republic. Knitted or crocheted table linen came to 47% - 1,840

tons - of total imports from developing countries in 1988, with Turkey

being by far the most important supplier. The other 2,100 tons imported

consisted of woven table linen. China, Brazil and India were the three

major sources, providing 865 tons, 459 tons and 216 tons respectively in

1988. Smaller suppliers included the Philippines, the Republic of Korea

and Malaysia.

While France is the second largest importer of made-up table linen,

at 3,000 tons in 1988, developing countries do not have an important

market share. Since 1980 less than 1,000 tons per annum have been

supplied from these sources. The two largest developing country

suppliers are China and India.

In the case of Italy, imports of table linen continued to grow

during the 1980s, albeit from a low base. In 1988 around 2,400 tons were

purchased from foreign sources, of which over 90% were of cotton and

blends rich in cotton. Developing countries accounted for half of the

volume traded, all of which was of cotton. The major suppliers among

these were China, India, Pakistan, Turkey and Brazil, while smaller

sources included Mauritius and Laos.

The U.K. import market for table linen is extremely small, with

annual amounts only just above 1,000 tons throughout the 1980s.

Total and per capita consumption of table linen remained stable

throughout the 1980s, slightly under 20,000 tons yearly for the four

West European countries combined. Consumption has been highest in Italy

and the Federal Republic of Germany, at 7,800 tons and 7,400 tons

respectively in 1988. Together these two account for three-quarters of

total demand in the four major markets. The share of cotton and

cotton-rich table linen is higher in Italy, at 94%, than in the Federal

Republic of Germany with 64%. One reason is that more tablecloths are

made from flax in the Federal Republic than in Italy. The United Kingdom

has the lowest level of consumption of table linen. In 1988 the figure

was only 1,500 tons.

Like bed linen and towels, the import dependency ratio for table

linen has shown an upward trend during the period, from 39% in 1980 to

56% eight years later. The share for cotton and cotton-rich table linen

has shown a similar movement, rising from 35% to 51% during the same

period. Although France and the United Kingdom have the highest such

ratios, which in 1988 exceeded 80% in both cases, in volume terms these

countries have the smallest markets. In contrast, the largest market,

Italy, has the smallest proportion of imports to total consumption. In

1988 its share was ten percentage points higher than eight years

earlier. While it is expected that the ratio will continue to grow in

these markets, in terms of volume the market for made-up table linen is

one-fifth that for made-up towels and only 13% of that for bed linen.

Variations in demand

Considerable differences exist in consumer requirements for cotton

household textiles among the countries surveyed concerning quality,

fabric weight, sizes, fashion, colour, fibre, finish and price. For

suppliers approaching the West European market for the first time or

simply seeking to extend a successful operation from one European

customer to another in a different country, the variation in demand

between one geographically small area and another is frequently

frustrating. Particularly significant are differences in assortments

offered, packaging, quality and sizes. For instance, in the United

Kingdom, at least two sizes of single beds and two of double beds are in

common use (several other sizes are also available). In the Federal

Republic of Germany beds are longer, again with several different size

variations available. French beds measure yet other dimensions, with two

versions generally available for both double and single beds. Still

another situation exists in Italy, where mattress lengths are up to 8 cm

to 10 cm shorter than in other major West European markets.

Product ranges that sell successfully in one market may require

considerable modification to sell well in another. Such differences are

most marked for bed linen.

In the U.K. market bed linen is increasingly sold in ranges of

coordinated curtains, pillowcases, duvet covers and valence sheets or

divan trims. Approximately 60% of the homes in that country own duvets

requiring covers. "Divan" type beds are the most common, using

valences (divan trims) or valence-type bottom sheets. The remainder use

blankets over flat bleached or plain dyed sheets. This markets shows a

strong trend for 50% cotton/50% polyester blends for sheets, pillowcases

and duvet covers.

In the Federal Republic of Germany the requirements for bed linen

are different. Coordination of all textile features of bed linen is much

less important than in the United Kingdom. Typical items in this line

are fitted bottom sheets, top sheets and cotton quilts. Such products

are almost entirely of cotton (above 95% of the volume sold).

In France both the fitted bottom sheet and the duvet and cover have

increasingly replaced classic flat sheets and blankets. It is estimated

that at the retail level about half of the pieces sold are fitted top or

bottom sheets, 30% are flat sheets and 15% to 20% are duvet covers.

Coordination of various items of bed linen is not important in this

market. Most bed linen sold in France is of cotton. Apparent rises in

cotton's share of sheets, from 82% in 1980 to 89% in 1988, are

probably the result of the movement from blends of 67% polyester/33%

cotton to 50%/50% in recent years. The latter ratio has established

itself in all blended bed linen sold in Western Europe.

Italy is the market in which fine percale cotton flat sheets excel.

Bottom sheets, often fitted, are frequently sold in sets with top

sheets. Alongside this, however, most households have a parallel

collection of plain dyed or bleached sheets, again with the bottom

sheets fitted. The use of quilts is not extensive in Italy for climatic

reasons. As in the Federal Republic of Germany, bed linen is

predominantly made of cotton.

Import channels

The percentage of business in household textiles done by different

retailer, or retailer-type distributor categories, varies among the four

countries.

For example, in Italy 50% of the business in bed linen goes through

independents and 30% through street market traders (independent

retailers with or without permanent premises). In the United Kingdom

independents handle less than 12% of that business and street market

traders probably less. Mail-order is the most extensive in France among

the markets surveyed, with 34% of bed linen sales (24% in the United

Kingdom, 22% in the Federal Republic of Germany and only 5% to 6% in

Italy). Such differences in the retail situation necessitate different

import channels.

The primary marketing channels for exporters to the four major West

European markets are manufacturers in those markets, wholesalers,

mail-order houses, major department stores, variety chains and multiple

stores. In the four markets surveyed, the local manufacturer in the

importing country is one of the most important outlets for foreign

suppliers of cotton household textiles. Such companies either sell the

imported merchandise under their own (or a subsidiary) brand name, or

pass it on to mail-order houses, variety chain stores or other outlets

with their brand name on it.

The wholesaler/importer is also a significant marketing channel.

Wholesaling is highly developed, particularly in the Federal Republic of

Germany. In addition to importing finished goods, wholesaler/importers

also sometimes "manufacture" their own brand by using

commission finishers to finish and cut items of bed linen from imported

grey cloth. Their function in supplying the retail trade is very

diversified. For large mail-order companies, the wholesaler's role

is usually to provide goods that are short in supply. In the case of

small retail groups, the wholesaler may fill the regular requirements or

act as an agent.

Large retail groups, multiples and variety chains tend to import

direct. However the small size of their orders and the diversity in

colour and size of their requirements are likely to make business with

them rather difficult for new suppliers to the market. Their quality

specifications are generally much higher than those of mail-order

companies or wholesalers (the latter need goods at all quality levels).

Major mail-order buyers attempt to purchase as much of their

requirements as possible direct from the local manufacturers or

exporters in the supplying countries. Their ability to do this varies,

hence their need for secondary sources, mainly wholesalers, in order to

keep adequate supplies of the goods offered in their catalogues. Most

mail-order companies attempt to provide very short delivery times. In

the Federal Republic of Germany they will go to great lengths and

expense to ensure this, and are therefore more hesitant to do

long-distance business than are mail-order firms in some of the other

markets surveyed.

Voluntary buying groups are essentially supplied by wholesalers and

local manufacturers, with which they negotiate bulk purchase discounts

for their smaller retail clients. They rarely import direct.

Entry into the West European market for table linen remains to a

great extent the province of specialist importers, which should be

considered as the main target for new market entrants in most of these

lines. Such importers sell to almost all entities, including retail

groups, mail-order houses and even wholesalers who are importers of bed

linen and towels.

Possibilities for new suppliers

Buyers of household textiles are generally unwilling to change from

an existing foreign supplier to a new source without considerable

incentive. Many large distributors contacted during the survey have not

changed their main import sources for five or even ten years, and few

expressed an interest in examining new sources in countries they had not

dealt with before.

On the other hand, as wage levels rise in what have hitherto been

low-cost producers among traditional suppliers, new sources are likely

to be looked at more carefully. Some buyers have begun to visit

developing countries to survey such prospects. Buyers have expressed

particular interest in countries ready to re-equip with up-to-date

machinery, in which existing industrial and training skills are in place

to make such investment worthwhile. Firms already producing for their

own domestic or another export market are given special consideration in

this context.

D.E. Morris, P. Ruttyn and R.J. Stogdon work with the International

Institute for Cotton in Brussels. This article is based on a study that

they recently prepared for ITC, Cotton Household Textiles: A Survey of

Selected Western European Markets, covering France, Federal Republic of

Germany, Italy and the United Kingdom.

PHOTO : Developing countries are major suppliers. Left, quality

control in the United Republic of Tanzania.

PHOTO : Imports of bed linen have risen rapidly. At right,

finishing of cotton sheeting.