Product Specifications:
Quality:
Both bed and bath linen in the Finnish market is mostly woven; however, other production methods are also possible. Bed linen may consist of cotton, bamboo fibers, or linen, but it may also be made of blended yarns or mixed fabrics. Bath linen consists mainly of cotton, but it may also be made of blend yarns or mixed fabrics. Because the products are in direct contact with people's bodies, the use of soft material is important. Besides, the fabric needs to be washable at fairly hot temperatures (60-90�C without shrinking or fading. The main quality and finishing specifications for bathrobes and dressing gowns are:
The weaving method is important because it determines the appearance and the absorbance of the robe. Common methods are:
Terry: is usually woven (sometimes knitted) of cotton with uncut loops on both sides. The longer and denser the loops are, the more absorbent the robes. 100% terry cotton bathrobes and dressing gowns are considered the best due to their absorbency.
Flannel: soft woven fabric, usually of cotton (or wool).
Velour: fabric where loops are cut used to make the bathrobes and dressing gowns softer and give them a more luxurious look. However, terry is often used on the inside because it is more water absorbent.
Waffle: is used mostly to make a more lightweight bathrobe and gives the product a grid-like appearance. 'Pique' is a type of waffle-weave in cotton, silk, or other fibers.
Durability is important because these products are soiled and need regular washing. The fabric should be washable (at 30�C or higher) without shrinking or fading.
Design aspects to take into account are whether or not to offer a hooded bathrobe, a short or a long bathrobe, and a heavy or lightweight bathrobe.
Size(s):
Sizes for bed linen can vary widely depending on the type of product. Below, you can find common standard sizes (in cm) for bed linen:
Bedding: regular sizes are 150x200 cm/240x220 cm.
Sheets: regular sizes are 150x260 cm/200x260 cm/240x260 cm.
Fitted sheets: regular sizes are 90x200 cm/140x200 cm/160x200 cm/180x200 cm.
Pillow cases: the standard size is 50x60 cm.
Sizes for bath linen can vary widely depending on the type of product. Below, you can find common standard sizes (in cm) for bath linen:
- Towels: regular sizes are 30x50 cm/50x100 cm/70x140 cm/100x150 cm/100x180 cm
- Bath mats: regular sizes are 50x80 cm/60x90 cm/70x130 cm.
Common standard sizes (in cm) for bathrobes are:
Labelling
1. Labels for transport normally include information on the producer, consignee, composition of the product and the size of the product, number of pieces, bale/box identification and total number of bales/boxes, and net and gross weight.
2. Most important information on the product or packing labels for bed and bath linen is composition, size, origin and care labelling. Most European companies use the international care labelling code GINETEX, which is a voluntary labelling service to consumers. The use of their symbols is dependent on a contract with GINETEX.
3. For more information and illustrations of product labelling, please refer to Labelling of home textiles under Legal requirements.
Packaging
The main aim of packaging is to ensure that the original quality and hygiene of the product will last until it reaches the consumer. Bed and bath linen should be packed according to the importer's instructions. Packaging usually consists of plastic wrapping to protect the fabric from water and staining. Proper packaging minimises the risk of damage due to fluctuations in humidity. Packaging dimensions and weight should make it easy to handle. Ideally, it should be possible to place the boxes or bales together on pallets.
Both bed and bath linen are usually displayed unpacked, making attractive consumer packaging not very important. In general, consumer packaging can be simple in design, but needs to be protective. However, when supplying the mid-high or high segment, it is good marketing to have consumer packaging. This should match the design, quality and price of the product sold. The exporter, however, is not always responsible for attractive consumer packaging.
Bathrobes are usually displayed and sold hanging. Therefore, if used, consumer packaging need be simple in design, but utilitarian: it needs to protect against water and staining. Illustration of bed linen, bath linen and bath robes sold in Finland are shown on the next page.
Legal requirements applicable for Finland
General product safety: The General Product Safety Directive applies to all consumer products marketed in the EU. The purpose of the legislation is to ensure consumer safety.
Control on chemical substances: REACH is the EU chemical legislation that came into force in June 2007. REACH is implementing a new, multi-phased system for existing and new substances and is setting requirements for the EU producers & EU importers of chemicals/products containing chemicals.
Azo dyes in textile articles: Azo dyes are often used in the dyeing process for several textile products. Certain azo dyes are carcinogenic and illegal for use in consumer products in the EU.
Labelling of home textiles: The EU has harmonised legislation regarding the names, composition and labelling of textile products.
Formaldehyde in textile articles: In the absence of harmonised EU legislation, Finland has introduced national legislation applicable to textile products containing formaldehyde.
Non-legal requirements in Finland
BSCl: The Business Social Compliance Initiative (BSCI) is an auditing system to monitor the social performance of suppliers. It has been developed by European retailers to improve social conditions in sourcing countries.
Global Organic Textile Standard (GOTS): GOTS is a textile processing standard for organic fibres. This quality mark can be obtained when the producer complies with standards of social responsibility.
Oeko-Tex: The Oeko-Tex Standard consists of three certifications for textiles. These address the effects of textile production processes on humans and the environment, and the effects of the textiles themselves (including the chemicals) on the health and well-being of consumers.
ISO 14001: ISO 14001 Certification scheme which provides generic requirements for an organization's environmental policy.
SA 8000: SA 8000 Certification standard by Social Accountability International (SAI) for the improvement of working conditions.
It must be noted that BSCI has become a standard requirement of many importers, while GOTS and Oeko-Tex Standard can differ for each importer.
Price:
Within the Finnish market, prices of bed and bath linen can differ substantially. The price of both bed and bath linen is based mainly on the product's size, composition and design.
Your products will be sold to Finnish consumers at a price that is many times higher than your selling price. The consumer price is approximately 4-6.5 times the FOB price in the country of origin (Table 2). The margins are divided among the different players in the trade channel. In the event that retailers trade directly with exporters, the entire margin (including the wholesaler's margin) goes to them.
Besides energy, labour and transport costs, FOB prices depend heavily on the availability and prices of the raw materials. In 2011, the prices for cotton, the main raw material for bed and bath linen made of natural fibres, saw a sharp increase. Over the course of 2012, the availability of cotton increased again, resulting in a decrease in price. In the first quarter of 2013, however, prices increased again slightly. Price increases of raw materials are not usually passed on to consumers directly but, instead, are deducted from the exporters', importers' and retailers' margins.
Promotion
Product presentation
Finnish retailers often display bed and bath linen out of its packaging and it is, therefore, often sold in simple consumer packaging. When targeting the mid-high and high segment, more attractive consumer packaging is required and can serve as a promotional fool. However, it is recommended that you communicate with your buyer about consumer packaging preferences.
Marketing:
The best opportunities in Finland for DC exporters can be mostly found in the mid-high to premium market, meaning that you have to pay special attention to design and quality.
In general, the low-end market is dominated by products from cheap mass-production areas and it will be almost impossible to compete with this. If you are able to consistently supply large quantities at low prices, large retail chains may be interesting partners to target this segment.
The influence of large chain store retailers in the value chain of bed and bath linen has increased significantly in Finland at the expense of the position of wholesalers and importers.
Nevertheless, wholesalers/importers are still an interesting option as they are specializing in terms of products, quality and design in order to cater to the middle-high market. DC exporters can supply wholesalers/importers, but they have to be able to meet the high requirements of these players in the chain. Large chain stores operating in Finland include Stockmann, Keska, S-group, lkea, H&M, Hemtex, Tokmanni group and Anttila (Kodin 1). Examples of design stores in Finland are Artek, Globe H Peroba, Nougat, Mifuko and Indiska.
1. In order to access the mid-high and premium segments, you need a promotion strategy, where you tell the story of your product. Features that can be of interest to Finnish buyers are:
Hand-made: bed and bath linen can be hand-made and is usually sold at a premium compared to mechanically produced products.
Promote health and naturalness: exporters can promote the use of natural products as a premium. Besides the use of wool as the main raw material, natural dyes are often used in this industry as well.
2. Finnish consumers are increasingly interested in products which are produced in a sustainable and ethical manner. Take notice of the importance of environmental issues and no such things as child labour issues.
3. If a DC producer of bed and bath linen wants to export modern products (in terms of design) to Finland, it is essential to partner Finnish/European buyers. They can assist with designs that are in harmony with Finnish fashion, as it is very difficult for exporters to familiarise themselves with Finnish taste within this small niche segment.
4. Trade fairs are still the most important way to meet new clients within the textile sector. When visiting a trade fair, always have samples ready that are neat, well-finished, ironed and properly labeled. These samples need to be representative of your
product's quality and must showcase your skills buyers. No important international trade fairs are held in Finland for exporters of textile products. Therefore, your best options to meet potential Finnish buyers are:
Ambiente (Frankfurt, Germany)
Tendence (Frankfurt, Germany)
Maison et Objet (Paris. France)
Domotex (Hannover, Germany)
Heimtextil (Frankfurt, Germany)
Doing business in Finland:
When intending to sell products to Finnish partners, it is advisable to learn what they value when doing business: efficient negotiations, explicit offers and terms, consistent quality, punctuality, as well as compliance with law, contracts and other specified requirements.
Be honest about the product and be realistic about your delivery times. Do not make claims which cannot be substantiated.
Respond swiftly in your communications with potential clients. Provide them with prompt and accurate information.
Ensure your product documentation is ready and up-to-date
Finland Key Indicators:
1. Apparent demand for bed and bath linen in Finland amounted to Euros 67 million in 2011 with average annual growth of 8.3% compared to 2007. Between 2009 and 2011, the market remained relatively stable.
2. Finland's GDP remained relatively stable in 2012, and it is predicted to grow by 1.2% in 2014. Consumers' confidence in the Finnish economy has weakened from a long-term average index of 12.3 to 3.8 in October 2013, and is expected to improve in the near future, which may positively affect the demand bed and bath linen.
3. Between 2007 and 2011, production of bed and bath linen in Finland decreased by 29% annually amounting to Euros 3.1 mn in 2011. This large decline was caused by decreased production of bed linen. The decrease in the domestic production of bed and bath linen is likely to be replaced by DC imports.
4. After Sweden (which has a 26.6% share of total suppliers, mainly re-exports), major suppliers to Finland are Germany (8.6%), Turkey (8.5%) and Portugal (8.3%). Imports from DCs grew by 4.0% annually in the period 2007-2011 and accounted for 35% of total imports of bed and bath linen. China is the leading DC supplier, followed closely by emerging India. Other DC suppliers which have shown a significant growth in the period 2007-2011 are Bangladesh and Egypt, whose supplies to Finland grew annually by 33.8% and 27.6% respectively.
5. Even though total imports of bed and bath linen decreased slightly by 0.4% between 2007 and 2011, due to the economic crisis, it is expected that imports will increase again in the short term. The importance of DC importers is likely to increase in the years to come as Finnish production of bed and bath linen declines.
6. Finnish exports of bed and bath linen are almost entirely to other European destinations (with a focus on surrounding countries such as Sweden, Estonia and Latvia), making Finland a possible entry point into surrounding markets.
This article was originally published in the May 2014 issue of the New Cloth Market.
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