Poland... a small country in Central Europe with century-old castles, and picturesque landscapes has now become an attractive spot for textile and apparel exporters. The market still remains unexplored for Indian exporters.

Poland, with a population of 38 million, is an unconventional and vibrant market, with a well-developed fashion sector. The geographical location of the country offers good market potential for textile and apparel exporters. It is located in Central Europe, serving as an entry to Western and Eastern European countries. It is considered the 7th biggest market in the EU for bodywear, and 11th in knitwear consumption. Of the 12 European countries, in terms of market size, Poland is an important country for knitted outerwear consumption.

Market is much fragmented by local retailers, open-air markets, and other forms of informal sales. On the other hand, a gradual improvement in living standards, and increasing numbers of families with fewer children, and dual income indicate there would be a drastic transformation in this trend in the near future.

Industry analysts predict that there would be a noticeable change in the role of external wholesalers who are currently supplying to independent stores. Companies would opt to keep more margins by themselves, thereby eliminating the wholesalers.

Consumer spending on bodywear in Poland was 1,239 million during 2008. Comparing the consumption pattern during the period 2004-08, this is a positive increase of 29%.

This indicates favorable market for textile and apparels. Poland accounted for 3.2% of the total consumption of EU.

Knitwear market in Poland:

Poland imports huge quantities of fabrics, mainly for knitted garments. Consumption is dominated by demography, consumer attitudes towards fashion trends, and economic development.

There is a favorable market for knitted tops in Poland. Survey by Euromonitor reveals that knitted tops comprised of about 73% of the total knitted outerwear sales during 2008. The survey further divulges that womens wear of knit clothing saw an increase of 11%, while menswear saw an 8% increase.

Though data results exposed a decrease in the birth rates, childrens wear market was an increase of 14% on its sales. This indicates that fewer children, with an increasing double income in the families fuel the market for apparels in Poland.

Poland has potential for creating a strong market economy and foreign investments. Their GDP increased by 6-7% during 2006-07 due to private investments. Challenges facing the country are high level of unemployment and low income. Analysts predict that more young population is likely to enter the workforce in the near future. This offers good scope for clothing market, as youngsters are keen on fashion apparels.

Potential market for Indian apparel exporters:

During 2008, Poland imported 812 millions of knitted outerwear, its imports exceeding the exports. Poland ranked the 12th largest importer of knitwear, and 1.9% of the total imports from EU. Currently, Polands apparel market is dominated by exports from Germany, China, and Bangladesh. Well established firms such as KAN, LPP, and Redan have moved their operations to countries such as China, and Bangladesh where labor costs are relatively lower. The influence of Indian fabrics and garments is very less comparatively. The country offers good market potential for the Indian exporters. If the exporters keep their focus on quality commitments, and timely delivery, chances are positive, that they will get some percentage of orders that are currently executed from their counterparts.

The Polish attitude towards fashion:

Nature of the Polish consumers is not very brand loyal. They often tend to switch brands, and prefer shopping at open air markets, hyper, and super markets. Though price is a major deciding factor for apparel purchases here, market foresees a developing trend with Polish consumers seeking more design, quality, and style. This hints that, apparel market in the long run will be dominated more by trends, and fashionable styles with a reduced concern towards price tags. Two-thirds of the population is in the age group 15-24, which means they tend to spend more money on vibrant colors, bold patterns, and ultra modern apparels. They opt to dress up in an elegant style for work and special occasions, while their pick will be a free fashion during weekends, and other personal parties.

They are highly sensitive to advertising and marketing. They are getting more fashion conscious, with demand for sophisticated products. To confirm their social status, they now prefer to shop for renowned brands in boutiques. They are inclined towards European trends. With an average monthly income of 1,150 USD, the country offers a promising future for apparel exporters.

Apparel market in Poland is big, and continues to see a growth trend in the coming years as well. More opportunities will be seen among the consumers in middle income group. Current market trends indicate purchasing trends based on prices, while future trends tend to grow towards style, and quality with price as a secondary concern. Market is limited with a few domestic and foreign brands, and is still unexplored by many. Exporters can seek commercial opportunities in this niche market by giving quality merchandise at affordable prices, and keeping the deliveries on time.

References:


1.      Globaltrade.net

2.      Tradeportalofindia.com

3.      Tradingeconomics.com

4.      Cbi.eu

5.      Ethiopianchamber.com

6.      Apparel Online, Jan 1-15, 2011