Abstract
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive
environment
Product coverage
Clothing; Footwear
Executive summary
New international chains change Dutch retail environment
Changes in the retail arena for clothing and footwear retail were a major
influence on the overall development of these two sectors. The arrival of Zara
and H&M was a major shock to the Dutch clothing and footwear retail
environment. The whole concept of value for money prices for fashionable
clothing and footwear was a big hit in the Dutch market. Traditional clothing
and footwear retailers such as C&A suffered as these new generation chained
store took a large share of the Dutch market. The high frequency of collection
changes is another important secret to their success. Modern clothing and
footwear retailers in the Dutch market need to change their collection much
more frequently as the consumers want to be excited and surprised by the
clothes and shoes on offer each time they shop.
Increased consumer confidence helps recovery
Consumer confidence in the economy and price sensitivity were major factors
that contributed to the price war in retail. This provided new players such as
H&M and Zara the perfect opportunity to grow. The clothing and footwear retail
sector spiralled out of control as the unit price of many clothing and
footwear items nosedived. The turnaround in consumer confidence in 2006
brought some relief for fashion retail. Despite cutthroat competition in the
lower and middle segments, the Dutch are willing to spend money again on
quality designer clothing and footwear.
Clothing sector finally shows growth
Clothing sales finally saw growth again in 2006 after a number of years of
value decline. Since 2003, the value of clothing has been under considerable
pressure. The challenging retail environment and a slump in the Dutch economy
meant that clothing manufacturers and retailers had to operate in a difficult
climate. A radical change of the sector was the result. Cheap imports from
countries such as China and the increased popularity of the internet all had a
negative impact on overall values as did the arrival of H&M and Zara.
Fortunately, improved economic conditions in 2006 meant that for the first
time in years Dutch consumers were willing to spend some extra money on their
clothing.
Positive development for footwear sales
Dutch footwear sales also recovered in 2006. Footwear retailers suffered from
the combined effect of the Dutch economic slump and low consumer confidence
and a fierce retail price war in the footwear sector. The result was that
since 2002 the footwear sector saw sales decline steadily. In 2006, things
finally changed for the better and total value of footwear sales saw
impressive growth. This trend of growing sales started in the second half of
2005 and continued all through 2006.
Economic recovery will underpin growth
There is a positive outlook for the Dutch clothing and footwear market as the
economy will be an important factor in the further recovery of these two
sectors. Continued economic growth is one of the major drivers behind the rise
in clothing and footwear sales and this growth will offer more opportunities
to manufacturers of products aimed at the higher and middle segment of the
market. Economic growth will however do little to limit the harsh retail
environment. The major footwear and clothing retailers are expected to compete
fiercely to retain or expand their share of the market in the coming years.
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