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Luggage and leather goods
CBI MARKET SURVEY: THE EU MARKET FOR WALLETS AND PURSES
CBI MARKET SURVEY
LUGGAGE AND LEATHER GOODS
THE EU MARKET FOR WALLETS AND PURSES
Publication date: March 2010
Report summary
This CBI market survey discusses the following highlights for the EU market for wallets and
purses:
• The EU market for wallets and purses was worth almost € 1.5 billion in 2008.
Approximately 79% of this was sold in the six selected countries, of which the France was
the largest. Production of wallets and purses increased by an average of 7.1% in the EU
and was valued at € 856 million in 2008, although volumes were falling. Italy was the
largest producer and made high quality and fashionable wallets and purses.
• More than three-quarters of all wallets and purses were sold through non-specialist
outlets, especially department stores and market stalls. Specialist chain stores were still
an important channel in Italy and Spain. A growing proportion of sales were sold through
non-specialist outlets and direct (Internet).
• Imports of wallets and purses into the EU were valued at € 1.2 billion in 2008 (72 thousand
tonnes), an average annual increase of 11% since 2004. Volumes have increased by 5.8%
since 2004.
o Although EU imports from developing countries increased between 2004 and 2008, the
share of developing countries in EU imports increased only marginally from 49% (74% by
volume) in 2004 to 50% (74% by volume) in 2008. They were valued at € 611 million in
2008. Nevertheless, supplies of wallets and purses from developing countries, led by
China and India, have an important impact on the operation of the consumer market in
many EU countries.
This survey aims to provide developing-country exporters of wallets and purses with productspecific market information related to gaining access to the EU market(s). By focusing on the
EU market(s) for one product(group), this document provides additional in-depth information,
complementary to the more general information and data provided in the CBI market survey
‘The luggage and leather goods market in the EU’, which can be downloaded from
http://www.cbi.eu/marketinfo
Detailed information on the wallets and purses is given in Appendix A. This survey discusses
the EU in general and the following markets in particular: Germany, France, the United
Kingdom, Italy, Spain and the Netherlands.
1
Market description: consumption and production
Consumption
Total market size
In 2008, retail sales of wallets and purses in the EU were estimated at almost € 1.5 billion, of
which 79% was sold in the six selected countries. Between 2004 and 2008, total EU
consumption was broadly unchanged, but increases were experienced in France, the UK and
Spain, while sales fell in Italy, Germany and the Netherlands, as is shown in Table 1.1. The
market had grown up to 2007 because of a boom in credit/bank, ID and loyalty card use,
which require wallets to store these cards. However, sales have fallen back during 2008. Most
wallets and purses have separate compartments to store cards. As people carry an excess of
cards, there has been additional demand for credit card holders and larger slim-line wallets but
a shift away from purses that are not designed to easily accommodate cards.
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CBI MARKET SURVEY: THE EU MARKET FOR WALLETS AND PURSES
Table 1.1
Consumption of wallets and purses in the major EU markets in 2004 - 2008,
€ million / % change by value
Total EU
France
€ million
2004
€ million
2008
1,461
1,463
219
255
Average
ann. change
+0.0%
Population
(million)
2008
496.3
Consumption
per capita €
2008
2.95
+3.9%
63.6
4.01
United Kingdom
220
250
+3.2%
61.0
4.10
Italy
252
232
-2.0%
59.4
3.91
Germany
233
200
-3.7%
82.3
2.43
Spain
170
189
+2.7%
44.9
4.21
-3.1%
16.4
2.26
Netherlands
42
37
Source: Euromonitor, Hong Kong Trade Council, Trade estimates (2009)
Wallets and purses represented approximately 14% of sales of luggage and leather goods,
with significant variations between countries. More information can be found in Chapter 1.1 of
the CBI market survey ‘The luggage and leather goods market in the EU’.
There are no statistics available on the consumption by type of wallet or purse. However,
EU imports by material may provide an insight into breakdown by product group. In 2008, EU
imports of wallets and purses were sub-divided as follows:
• Wallets and purses of leather - 52% of the total value of EU imports (22% by volume).
• Wallets and purses of fabric - 19% of the total value (26% by volume).
• Wallets and purses of plastic sheeting - 23% of the total value (39% by volume).
• Wallets and purses of vulcanised fibre, paper or paperboard - 6% of value (13% by
volume).
Per capita consumption of wallets and purses is higher than the EU average in Spain, the UK,
France and Italy, where style and brand play a more important role. However, most
consumers in the other countries regard this as less important, because wallets and purses are
kept mainly out of sight in pockets or in bags. Generally, most people in EU countries have a
traditional taste and buy wallets and purses for practical reasons, or, when their existing one
has worn out. Nevertheless, both wallets and purses remain popular gift items for birthdays
and Christmas, especially for men.
Purses accounted for 55% of the UK small accessories market (by value) in 2006. More than
half was made of leather. However, the share of purses has declined, due to the boom in credit
cards. Many purses previously did not have space to hold credit cards. Nowadays the purse
segment has regained share by becoming more diversified. There are ‘wallet style’ purses,
which have a credit card compartment. In addition, purses are made of different materials,
which are popular among teenagers and young women.
Leather purses are most popular for women. They are soft and supple to touch, and are made
from sheep leather, cow hide, Italian leather, goat nappa etc and are available in many colours
such as maroon, saddle, black, brown, cherry, red and many other innovative colours or in
contrast. There are many other purse styles available, the most popular of which are coin
purses, cigar box purses, monogrammed purses, quilted purses, sequin purses, licensed plate
purses, photo purses and even dog purses. They tend to have the following features:
• Sleek and slim designs.
• Multiple compartments with dividers.
• Internal linings of satin, silk and velvet.
• Internal compartments with zipped or buttoned pockets.
• Outer pockets which are multi functional and numerous.
• Purses close with a central zip or flaps with magnetised buttons.
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CBI MARKET SURVEY: THE EU MARKET FOR WALLETS AND PURSES
Wallets accounted for 45% of the UK small accessories market (by value) in 2006 of which
60% were made of leather. The larger traditional style wallets remain a popular gift item for
men. The size of wallets has become smaller with less space for cards. ‘Billfolds’ with
compartments for coins and credit cards remain most popular for men.
Fashion wallets are part of fashion accessories and they can match with your outfit. There are
designs with patterns such as snakeskin and deer skin in blacks, browns, grays, maroons and
in almost all colours. The inclination is to have a wallet that includes an organiser that fits in
pockets and has the capacity to hold cash, change, bank and store cards, and even larger
items such as a cheque book. It should fold to less space than its actual size. There are two
fold and three fold wallets, and occasionally more. Many wallets and purses have a transparent
window for an ID card, bus/train pass or photo. Men generally keep change in pockets and
prefer a slim-line wallet or billfold for credit cards and banknotes.
Despite their appeal to fashion, wallets and purses are viewed as essential items. They are in
daily use and need to be replaced. The average woman owns at least three purses, although
male ownership of wallets is lower. Higher quality items are appreciated for their aesthetic
appeal as well as their practical uses, although more consumers are drawn to this segment by
lower prices and a wider choice of styles. This is particularly the case in parts of Eastern
Europe. Sales are also driven by increased population, and they may be more resiliant to the
economic downturn than other products such as luggage.
Market outlook
The market did not increase in value in 2009, and sales will also struggle in 2010. It may be
2011 before growth in the market resumes. However the products in this market are evolving
due to the growth in small electronic devices that consumers now carry with them. This will
result in more small bags that can contain both small phones, iPods as well as cash and cards.
There will continue to be a large market for higher quality small leather goods, primarily for
older consumers, but lower-priced imports will continue to make inroads into the market as
these are popular with younger people with less disposable income.
Market segmentation
The wallets and purses market can be segmented in a number of different ways.
• Demographic segmentation
This is the most basic way in which this market can be segmented. The majority of purses are
made for females, primarily women, but there is a growing market for purses for younger
teenagers and girls. There are bright, colourful purses designed specifically for younger
children in mind. Many of these products take advantage of popular licensed characters as part
of the purse’s design. According to a survey by market research specialist Mintel done in 2007,
37% of British women aged between 15-24 years bought a purse or a wallet in that year.
Men tend to buy wallets, but an increasing number of women are also buying wallets,
particularly with the greater use of credit cards, as well as the trend to more casual dress. This
means it is more practical to carry a wallet in a pocket, whereas a purse would tend to be used
in conjunction with a handbag. Men tend to spend more money on a wallet and make it last
longer, whereas women tend to own a number of different purses.
•
Segmentation by price/fashion level
There is a high correlation between the price of a wallet or purse and its fashionability. This
can provide a more detailed analysis of the market than the more straightforward genderbased segmentation as outlined above.
o Low price/fashion. In this segment imports from Asia dominate, with most non-leather
items coming from China and cheaper leather items coming from India. Leather is still
seen as a mark of quality and durability within this segment. There is a growing
demand for items made of soft leather. Younger people and those on lower incomes
would tend to purchase these products.
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CBI MARKET SURVEY: THE EU MARKET FOR WALLETS AND PURSES
o
o
Medium price/fashion. Dark colours such as black or brown remain the most popular.
Some people pay attention to brands, especially in Italy, the UK, Spain and the
Netherlands. However, the majority of items sold are unbranded or are private labels
of department stores. Discretion and practicality are key elements and women prefer a
wallet or purse with a separate zip section. For younger people style is more important
and purses or wallets should follow the seasonal fashion trends.
High price/fashion. At the higher end of the market, fashion and brand play a major
role with influences from Italian and French couturiers. Well-known international brand
names (Gucci, Hermes, Louis Vuitton) and designer names (Versace, Dolce&Gabana,
Armani, Hugo Boss,) dominate this segment. In addition, fashion magazines such as
Elle and Marie Claire have their own leather goods collections that include wallets and
purses. Items are made of high quality leather and some of them include well-designed
metal parts, zippers or clasps, while others are simple. Consumers are prepared to pay
for the best for a particular brand. In Italy, France and the UK this segment is
important, as it sets the trends in the other segments. In other EU countries, this high
price/fashion segment is smaller.
Market trends
Trends can vary between countries but they are increasingly visible across national frontiers as
most trends are now internationalised.
• More design elements are being built into wallets and purses, mirroring design
developments in handbags. Textured, embossed and printed surfaces, as well as various
hardware embellishments are being used to provide greater choice. Design styles include
the business style, mainly traditional blacks or browns; the fun style, mainly whimsical
designs, floral embellishments and pastel designs and vintage purses, sometimes beaded,
embroidered, fur trimmed and carved mother of pearl or wooden handles. Niche designs
remain popular. Novelty design elements for coin purses, key fobs and mobile phone
holders in the form of animals or fruit or similar images sell well, particularly as a
Christmas gift.
• New materials. Leather continues to be the most popular material, but the economic
slowdown, as well as new technological developments in new materials such as microfibres
are starting to challenge the dominance of leather.
• Recycled materials. This is part of the trend towards greater interest by consumers in
ethical products and environmentally-friendly products. There has been a number of
products, mainly purses, made from recycled materials that are starting to make an impact
in this sector.
• More flexibility. New products are appearing that also include straps for wallets or purses
that enable the user to attach it to the outside of your clothing or around your shoulder.
Smaller wallets are also appearing that meet the demand for travelling as light as possible.
Another related new product is designed to be worn on your wrist and be able to hold a
mobile phone, iPod, cash, credit cards and keys.
• Clear travelgoods are selling well due to travel restrictions that require liquid and
cosmetic products to be visible when passing through security checkpoints in airports.
• Increasing role of the Internet. Sales via the Internet are growing strongly as
consumers increasingly trust this medium. They also choose the Internet as it is perceived
as a lower cost sales channel than traditional retailers, as well as more convenient. This
convenience is experienced in terms of online viewing of wallets and purses. It saves time
compared with traditional shopping. Photographs of these products on websites have
significantly improved in quality, and the number of websites and blogs relating to trends is
a powerful mechanism for finding out about the latest new products.
• Data-safe wallets. A new developments in wallets has resulted in the launch of a range of
products that are designed to protect against identity theft and credit card fraud. This has
been achieved by incorporating a radio frequency blocking material into the material that
the wallets are made with.
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Page 4 of 19
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CBI MARKET SURVEY: THE EU MARKET FOR WALLETS AND PURSES
Production
Total production
Small leather goods, which mainly consists of wallets and purses, accounts for a relatively
small proportion of luggage and leather goods production in the EU. In 2008, it was valued at
€ 856 million. This figure includes the production in the major EU markets, accounting for well
over 90% of this value, as well as the production in Romania, the Czech Republic, Poland and
Portugal where wallets and purses are an important element.
In 2008, the share of small leather goods in EU production averaged 18% of the total
production value, compared with 16% in 2004. There have been the following changes to the
production in the selected countries since 2004.
• In Italy, wallets and purses production share in total EU production of wallets and purses
has increased from 16% to 17%.
• In France, wallets and purses production share has increased from 12% to 18%.
• In Spain, wallets and purses production share has decreased from 26% to 25%.
• In the UK, wallets and purses production share has decreased from 27% to 18%.
• In Germany, wallets and purses production share has remained at around 6%.
• There was no production of wallets and purses in the Netherlands.
Table 1.2
Production of wallets and purses in the major EU markets, 2004 - 2008,
€ million, % change by value
Average
ann.
change
+7.1%
2004
value
651
2004
volume
10
2008
value
856
2008
volume
9
Italy
322
6
479
4.5
+10.4%
France
131
2
180
1.7
+8.3%
Spain
108
1.2
107
0.8
-0.2%
46
0.3
29
0.3
-10.9%
0.1
10
10
0
Netherlands
0
0
Source: Eurostat, National Statistics, Trade estimates (2009)
0.1
+0.0%
0
+0.0%
Total EU
United Kingdom
Germany
Eurostat does not provide information on the material used in the production of wallets and
purses, although globally 30% of all wallets and purses are made of leather. Consequently this
share is likely to be higher in EU production. Production statistics also do not provide
information on the type of items produced. It can be assumed that much of EU production of
fashionable and high quality wallets and purses comes from Italy and France, while other EU
countries such as Germany mainly produce the traditional classic styles.
It is expected that the Italian and French industries are in a stronger position to survive
than other countries, although Spain also has a relatively strong production base. The size of
their industries, their reputation in the global market and the appeal of their brands give these
countries a distinct advantage over other countries that are less established in this industry.
Other countries will face difficulties in the future to maintain their production. In addition, the
whole luggage and leather goods sector is expected to suffer from falling exports to non-EU
destinations due to the current strong value of the Euro against other leading currencies.
Wallets and purses do not cost too much to produce and are not too difficult to make; they are
light in weight and easy to transport over long distances. This implies that production can be
done wherever labour costs are lowest, which means in Asian countries, Africa, Latin America
or in (former) Eastern EU countries.
Main and interesting players
Many manufacturers of wallets and purses act more as importers and produce their items
elsewhere. Very often, they are also involved in the manufacture/import of other small
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accessories such as belts, holders, pouches, folders and portfolios as well as handbags. In the
selected countries, in addition to the main trade associations, there are a number of companies
that may be worth contacting, either to develop business, or for market advice:
• In Italy, Tuscany Leather - http://www.tuscanyleather.it - is a company that presents
leather goods made from a range of producers in this important manufacturing area of
Italy. Giudi – http://www.giudi.it - supplies a range of quality bags and small leather goods
for men and women.
• In France, leading companies such as Louis Vuitton - http://www.louisvuitton.com - are
based here. Hermes - http://www.hermes.com - is an important producer. Goyard http://www.goyard.fr - also offers small leather goods in a classic/colonial style.
• In Spain, Gabol – http://www.gabol.es - produces small leather goods and handbags.
• In Germany, many producers supply a wide range of leather-based items. Beadbags http://www.beadbags.de - is a producer of bags and small leather goods.
• In the UK, the most well-known brand is Burberry, but a number of wallets and purses
producers are also based here, including Jane Shilton - http://www.janeshilton.co.uk and Radley – http://www.radleyandco.com.
• No further detail within the Netherlands is provided due to the very small size of their
production industry.
Trends in production
Production of wallets and purses in the EU are not significant, especially when compared to
handbags. Although production value has increased, there has been a gradual decrease in
production volume. Most production of these products have been made of leather, but
competition from low cost imports, particularly made of other materials has made it very
difficult for many producers to stay in business. There is an increasing trend of higher quality
leather items also being produced outside of the EU. Therefore, EU producers increasingly
have to specialise, or focus on the high-end of the market to survive, for example, by
working together or by working with fashion houses or with designers.
Opportunities and threats
+ Many opportunities will be found by DC exporters by considering the possibilities that have
been created by the growing demand for eco-friendly small leather goods, whether they
are made of recycled materials, or using more environmentally-friendly production
processes.
+ Opportunities are found by keeping a close eye on the latest fashion trends. For example
the children’s sector for purses is very fashion sensitive. This may involve a new colour for
a season, or a new character that has become popular from a TV programme.
+ Opportunities exist for leather goods manufacturers if they can find a partnership with a
manufacturer in an EU country who needs to find a lower cost source of production, while
opportunities exist for exporters who have access to the latest developments in new
materials and can demonstrate market advantages that derive from these new materials.
+ More opportunities appear to come from interest in this product group shown by women
rather than men. Women are more interested in changes in fashion and will find uses for
different purses on different occasions, whereas men would tend to use the same wallet
until it needs replacing.
+ The giftware segment remains an interesting channel for exporters as it is perhaps more
fragmented than the mainstream consumer market and exporters may find it easier to
reach the buyer.
The same development or trend can be an opportunity for one exporter and a threat for
another. Exporters should therefore analyse if the developments and trends discussed in this
chapter provide opportunities or threats. The outcome of this analysis depends on each
exporter’s specific circumstances.
See Chapter 7 of the EU survey ‘The luggage and leather goods market in the EU’ for more
information on opportunities and threats.
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Useful sources
• There are a number of commercial research organisations that produce reports on the
small accessories market, including wallets and purses, but these can only be obtained
at a cost. They include Mintel - http://www.mintel.co.uk - and Keynote http://www.keynote.co.uk.
• Note this market is often studied alongside the market for clothing or other fashion
accessories. There are many similarities in the supply and the distribution chain.
• Production information can be obtained from Eurostat as well as National Statistics
websites of the countries in question.
• The French Fashion Institute - http://www.ifm-paris.com - produces market reports on
fashion accessories, as well as producing a market review for Interselect http://www.interselection.net, the international fashion show for multiple retailers.
• Seasonal trends of total outfits including small accessories can be found at the fashion
forecasts that can be downloaded from the CBI site, at the sites http://www.vogue.com
and http://www.indiadesignclub.com.
2
Trade channels for market entry
Trade channels
Wallets and purses are primarily sold through department stores, variety stores, market stalls,
luggage and leather goods specialists. Purses are purchased by women, so distribution tends
to follow the pattern of department stores and womenswear retailing. Men’s wallets are sold
through the equivalent menswear channels. The most important channel to enter the wallets
and purses market is the direct channel (with retailers). Non-specialist retailers dominate
however, but this varies between countries. Some large retailers and many service companies
import direct from manufacturers overseas. See Chapter 3 of the CBI market survey ‘The
luggage and leather goods market in the EU’ for more information on trade channels.
The indirect channel, or via a wholesaler or importer, is still the most important channel to
enter the wallets and purses market in Italy and Spain. In these countries, small wholesale
and retail specialists are as important as department stores. Unlike other parts of the EU, there
are fewer specialist chains. The wholesale sector serves these small retail specialists and they
often do not require large quantities. Other important channels for wallets and purses are
service companies, such as premium companies, oil companies, airlines and credit card
companies.
The role of agents is still important in the high price/fashion segment, where exclusivity
plays a role. However, in western and northern EU countries their influence has decreased
due to the growth of large retailers. Still, wholesalers continue to be an alternative
intermediary to large retailers. Buying groups are important in some countries, particularly in
Germany and the Netherlands.
Interesting wholesalers and importers in the selected countries include:
• In Italy, La Veneziana - http://www.laveneziana.com - is an importer of fashion
accessories, including wallets and purses.
• In France, Le Site du Sentier - http://www.le-sentier-paris.com - is a wholesaler of wallets
and purses and a wide range of other accessories.
• In Spain, DCM Argentona - http://www.dcmargentona.com - is a distributor and wholesaler
of fashion accessories, including wallets, in the Barcelona region.
• In Germany, Cheema Impex - http://www.cheema-impex.de - is a wholesaler of leather
goods including wallets and purses.
• In the UK, Taurus Leather - http://www.taurus-leather.co.uk - is a major supplier of
leather goods to the UK market. Wholesalers can also be found at
http://www.thewholesaler.co.uk/trade/distributor/Leather_Goods_Wholesalers/.
• In the Netherlands, Gift House - http://www.gifthouse.nl - is a well known premium
company that imports a range of items that include wallets.
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Retail trade
In the low to middle segments, department stores remain the most important sales channel,
as is shown in Figure 2.1. They are able to update regularly the ranges to reflect changing
consumer tastes. They are also able to offer a wide range of items at various prices.
Market stalls remain a popular place by most consumers to buy wallets and purses. At each
market there is at least one stall selling a full range of wallets, purses, handbags, rucksacks
and shopping bags at low prices. It is very difficult to quantify the level of sales though this
channel, but in 2008 it was estimated at 13% of EU retail sales of wallets and purses. Recently
market stalls have to deal with competition from others, particularly from supermarkets and
hypermarkets. Retailers have been reducing lead times and improving procedures in buying
and merchandising to bring products earlier to market, especially at the peak season.
As wallets and purses are small in size, they take up little space in a shop. Other retailers
increasingly stock a limited range of items, especially clothing and shoe shops, other
shops (accessory chains, gift shops, chemists and stationery shops) which now represent a
substantial proportion of wallets and purses sales as is shown in Figure 2.1. Sales by leather
goods specialists was confined to 20%, while direct sales are expected to grow further in
the next few years.
In the middle and higher segments, celebrities exert a major influence in the wallets and
purses market, but other media influences such as magazines also strongly affect what sells.
In fact, women in particular have driven the growth of ‘fast’ fashion.
Figure 2.1
Wallets and purses distribution in the EU by different channel,
% value 2008
Super/
Hyper
market
8%
Other shops
11%
Market
stalls
13%
Direct sales
8%
Leather
goods shops
20%
Clothing/
Shoe
shops
9%
Department
stores
31%
Source: Trade Estimates (2009)
Key players in the selected markets
• In Italy, La Rinascente - http://www.rinascente.it - and Gruppo Coin are the leading
department stores - http://www.gruppocoin.it.
• In France, Galeries Lafayette - http://www.galerieslafayette.com - is the leading
department store group, Monoprix - http://www.monoprix.fr - a leading variety store, while
Carrefour - http://www.carrefour.fr - is the leading hypermarket.
• In the UK, Marks & Spencer - http://www.marksandspencer.com - and John Lewis http://www.johnlewis.com - are the leading department stores, while accessory specialists
include Accessorize - http://www.accessorize.co.uk - and Claire’s Accessories http://www.clairs.com.
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Page 8 of 19
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•
•
•
In Germany, Kaufhof - http://www.kaufhof.de - is the leading department store chain.
Goldkrone - http://www.goldkrone.de - is the leading buying group.
El Cortes Ingles - http://www.elcorteingles.es - is the leading department store chain in
Spain. Inditex - http://www.inditex.es - which includes Zara, and Cortefiel http://grupocortefiel.com - are the other two leading fashion and clothing retailers that
dominate the Spanish retail market.
In the Netherlands, Bijenkorf - http://www.bijenkorf.nl - and V&D http://www.vroomendreesmann.nl - are the leading department stores. Buying groups are
also important.
Price structure
Margins on small accessories, including wallets and purses have been falling in recent years.
This has tended to result in producer prices being squeezed. However, it is not just producers
who have been hit. Many retailers have also had to reduce their margins, sometimes to levels
they are unable to afford, in order to remain competitive. The ultimate beneficiary of these
falling margins is the consumer.
In each trade channel different margins and prices apply. If wallets and purses are imported by
a retailer who buys from a wholesaler, the multiples vary between 2.9 and 3.9 times the
export (CIF) price. Generally wholesalers’ margins range between 30–50% of the export price,
agents’ margins are between 6–12%, while retailers’ margins are between 95–120%.
Table 2.1
Overview of margins in wallets and purses
Importers/wholesalers' margins
Agents' margins
Retailers' margins
Mark-up Export (CIF) price - Consumer price
Low
High
30%
6%
95%
50%
12%
120%
2.9
3.9
VAT is included in consumer prices: Germany (19%), France (19.6%), Italy (20%), the UK
(17.5%), Spain (16%) and the Netherlands (19%).
These margins will vary depending on which market segment is being approached as well as
on the kind of retailer. Department stores, clothing and variety chains or hypermarkets ask
for large-volume discounts, which are then passed on to their affiliated stores.
More information can be found in Chapter 3.2 of the CBI market survey ‘The luggage and
leather goods market in the EU’, as well as in the CBI market surveys covering the market in
individual EU countries.
Finding a suitable trading partner
There are a number of ways to look for a suitable trading partner in the EU. The first place to
look would be to contact the main trade association(s), followed by trade fairs, which tend to
feature a list of exhibitors, many of which may be potential partners – see Chapter 6. Trade
magazines could also be a good source of contacts. Chapter 6 also features these details. The
International Trade Centre - http://www.intracen.org - is a good source of contacts. The
fashion portal Fibre to Fashion - http://www.fibre2fashion.com - features a section where you
can make contact with importers.
In addition to these sources, there are often a number of general or specific information
portals that will be useful. The following organisations may be worth looking at:
• In Italy, the portal http://www.fashionhub.it provides links to a wide range of wholesalers
in this sector, including http://www.italianmoda.it. The Italian Fashion Federation http://www.federmoda.it - represents wholesalers and retailers of leather goods. There are
many accessories agents in Italy. GruppoItalia agency - http://www.gruppoitalia.net -
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Page 9 of 19
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•
•
•
•
•
3
specialises in all areas of the fashion industry. The Italian Chamber of Commerce http://www.chamberofcommerce.it - and the Institute for Foreign Trade http://www.italtrade.com or http://www.ice.gov.it - are also good sources of information.
The main business community for doing business with Italy is
http://www.italbiz.com/italbiz_services/home/default.asp#italmail.
In France, the principle portal for leather goods can be reached at http://www.ctc.fr or
http://www.ctcgroupe.com. Here you can find links to leather goods manufacturers,
importers and retailers. The Bureau de Style des Industries Chaussure, Maroquinerie, Cuir http://www.b2styles.com - and the Federation of French Chambers of Commerce http://www.cci.fr - are also useful organisations. A directory of French companies involved
in the leather goods sector can be found at http://www.francecuir.fr. Forthac http://www.forthac.fr - is a business development organisation active in this sector.
In the UK, Leather Goods Online - http://www.leathergoods-online.com - details the major
players in the sector. Leatherwise - http://www.leatherwise.co.uk - has good links to other
leather-related sites, some of which include contacts, and UK Leather http://www.ukleather.org - is a directory designed to identify companies in the leather
sector. The British Chambers of Commerce - http://www.chamberonline.co.uk - and UK
Trade & Investment - http://www.uktradeinvest.gov.uk - help companies to do business in
the UK.
In Germany, the Association of Textile Retailers - http://www.bte.de - provides links to
suppliers, as do the portals http://www.modeinfo.com and http://www.ensuite.de. The
Association of German Chambers of Commerce and Industry - http://www.diht.de, the EHI
Retail Institute - http://www.ehi.org - and the Retail Trade Association – http://www.bag.de
- also provide advice.
In Spain, a good website to find suppliers is http://www.buscaprof.es/marroquineria. The
Spanish Fashion portal - http://www.fashionfromspain.com, http://www.pieles.com and
http://www.multiprecio.com have links to companies. Moddo - http://www.moddo.com - is
the leading electronic site for companies involved in leather goods. A blog for the fashion
leather goods sector can be accessed at http://www.ubrique.com. The Spanish Chambers of
Commerce – http://www.camaras.org - and the Spanish Institute for Foreign Trade http://www.spainbusiness.com or http://www.icex.es - are good contacts.
In the Netherlands, a good leather goods portal is http://www.leather.nl. The Association
of Intermediaries - http://www.vnt.org - is a good source of contacts for agents, importers
and brokers in a number of industries, including leather goods. This is associated with the
Dutch Association of Clothing & Textile Agents and Importers - http://www.nvkt.nl - which
includes fashion accessories. The Chambers of Commerce - http://www.kvk.nl, the Retail
Council - http://www.raadnederlandsedetailhandel.nl - and the International Development
Agency - http://www.evd.nl - are all good points of contact.
Trade: imports and exports
Imports
Imports of wallets and purses into the EU were valued at € 1.2 billion in 2008 (72 thousand
tonnes), an average annual increase of 11% since 2004 (5.8% by volume). The share of intraEU imports has decreased from 42% (19% by volume) to just under 42% (but increased to
21% by volume). Although not featured in this report, import values in 2008 to Belgium (€ 45
million) were close to the Netherlands (€ 48 million). This suggests that there may be a
considerable amount of re-exporting by both countries and many of these imports may in fact
have originated in the developing world.
EU imports from developing countries increased, as is shown in Table 3.3. However, the share
of EU imports from developing countries increased only marginally from 49% (74% by volume)
in 2004 to 50% (74% by volume) in 2008. The main reason is a substantial increase in EU
imports from other EU countries (see Table 3.1).
Within the developing countries, China was the dominant supplier. In 2008, EU imports from
China were valued at € 435 million (46 thousand tonnes), an average annual increase of 12%
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since 2004, and a 6.3% increase in volume. Supplies from India rose by 7.5% in value and by
5.6% in volume to reach € 127 million (4.9 thousand tonnes) in 2008. This may illustrate more
EU imports of lower cost items but prices (see also Chapter 4) of imported wallets and purses
from DCs starting to increase. Of the other major developing country suppliers, EU imports
from Thailand, Turkey, Vietnam, Moldova, Tunisia, Morocco and Croatia increased.
EU production of wallets and purses was valued at € 856 million in 2008, compared to € 651
million in 2004, an average annual increase of 7.1%, although production volumes were down.
Exports were approximately 28% higher than imports, and exports were increasing at an
average 8.8% per annum (lower than the rate of increases in imports). Consumption of
wallets, purses and other small leather items was increasing slowly, but even so imports are
expected to continue to account for an increasing share of the market.
By sub-product group, EU imports of wallets and purses consisted of:
• Items made of leather or patent leather (52% of value or € 637 million, 22% of volume or
16 thousand tonnes, an increasing share).
• Items made of plastic sheeting (23% of value or € 278 million, 39% of volume or 28
thousand tonnes, an increasing share).
• Items made of textile (19% of value or € 233 million, 26% of volume or 19 thousand
tonnes, a decreasing share).
• Items made of vulcanised fibre, paper or paperboard (6.2% of value or € 76 million, 13%
of volume or 9.3 thousand tonnes, a decreasing share).
Table 3.1
Product
Total EU27
Italy
France
Germany
Imports and leading suppliers of wallets and purses
2004 – 2008, share in % of value
2004
2006
2008
Leading suppliers in 2008
Share
€ mln
€ mln
€ mln
Share in %
(%)
342
410
511 Intra EU: France (9.7%), Italy (9.1%), Spain
41.8
(5.7%), Germany (5.7%), The Netherlands
(3.3%)
71
84
102 Extra EU ex. DC*: Switzerland (4.4%), Hong
8.2
Kong (3.1%), Japan (0.4%), USA (0.4%),
Taiwan (0.2%)
402
520
611 DC*: China (38.7%), India (11.3%), Thailand
50.0
(1.5%), Turkey (0.8%), Vietnam (0.5%),
Tunisia (0.4%), Moldova (0.3%), Indonesia
(0.2%), Croatia (0.2%), Morocco (0.1%)
43
52
78 Intra EU: France (19.4%), Romania (4.5%),
33.4
Germany (3.7%), UK (2.1%), Belgium
(1.2%)
22
19
15 Extra EU ex. DC*: Switzerland (3.9%), Hong
6.4
Kong (1.6%), Japan (0.2%), USA (0.2%), S
Korea (0.2%)
70
119
141 DC*: China (49.5%), India (3.5%), Tunisia
60.2
(1.5%), Turkey (1.5%), Croatia (0.7%),
Moldova (1.3%), Thailand (1.0%), Indonesia
(0.5%), Vietnam (0.3%), Brazil
102
90
118 Intra EU: Spain (22.3%), Italy (14.0%),
52.7
Belgium (6.0%), Germany (4.6%), The
Netherlands (2.9%)
8
21
40 Extra EU ex. DC*: Switzerland (14.5%),
18.0
Japan (1.6%), Hong Kong (0.9%), USA
(0.3%), S Korea (0.2%)
43
50
66 DC*: China (25.0%), India (1.9%), Morocco
29.3
(0.6%), Mauritius (0.4%), Vietnam (0.3%),
Tunisia (0.3%), Thailand (0.1%), Moldova
(0.2%), Turkey (0.2%), Mexico (0.1%)
46
61
70 Intra EU: France (10.1%), Italy (9.5%),
33.1
Czech Rep (3.6%), The Netherlands (2.7%),
Belgium (1.6%)
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Page 11 of 19
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CBI MARKET SURVEY: THE EU MARKET FOR WALLETS AND PURSES
Product
2004
€ mln
United Kingdom
Spain
The Netherlands
Source: Eurostat (2009)
*Developing Countries
11
2006
€ mln
10
2008
€ mln
13
90
109
129
45
68
75
11
16
14
73
79
97
17
25
27
3
3
2
32
44
50
5
6
6
4
6
6
28
30
35
Leading suppliers in 2008
Share
Share in %
(%)
Extra EU ex. DC*: Hong Kong (4.0%),
6.3
Switzerland (1.5%), USA (0.3%), S Korea
(0.2%), Taiwan (0.2%)
DC*: China (35.4%), India (18.9%), Thailand
60.6
(4.4%), Turkey (0.5%), Vietnam (0.4%),
Bangladesh (0.4%), Serbia (0.1%), Colombia
(0.1%), Indonesia (0.1%), Pakistan (0.1%)
Intra EU: Italy (14.1%), France (11.2%), The
40.2
Netherlands (6.9%), Germany (3.0%), Spain
(2.0%)
Extra EU ex. DC*: Hong Kong (5.2%),
7.8
Switzerland (1.2%), USA (0.7%), Taiwan
(0.3%), Japan (0.1%), UA Emirates (0.1%)
DC*: China (36.5%), India (13.9%), Turkey
52.0
(0.9%), Thailand (0.3%), Vietnam (0.1%),
Pakistan (0.1%), Indonesia (0.1%), Sri
Lanka, Bangladesh, Malaysia
Intra EU: France (12.7%), Italy (10.0%),
34.8
Germany (5.0%), Belgium (2.0%), UK
(1.7%)
Extra EU ex. DC*: Hong Kong (1.4%),
2.3
Switzerland (0.3%), Taiwan (0.3%), S Korea
(0.1%), USA (0.1%)
DC*: China (42.5%), India (17.2%), Thailand
62.9
(1.3%), Turkey (1.1%), Vietnam (0.3%),
Morocco (0.3%), Mexico, Guatemala,
Indonesia
Intra EU: Germany (4.8%), Italy (2.6%),
13.3
Belgium (1.9%), UK (1.2%), Poland (0.8%)
Extra EU ex. DC*: Hong Kong (8.9%), Taiwan
12.0
(0.9%), USA (0.8%), Switzerland (0.8%), S
Korea (0.2%),
74.7
DC*: China (49.4%), India (23.4%), Ukraine
(0.7%), Vietnam (0.4%), Indonesia (0.2%),
Turkey (0.1%), Pakistan (0.1%), Thailand
(0.1%), Guatemala (0.1%)
Meanwhile, the selected countries had varying experiences of importing wallets and purses,
over the period:
•
Italy was the largest EU importer with imports of wallets and purses valued at € 234
million in 2008 (13 thousand tonnes), an average annual increase of 15% over the period
from € 135 million since 2004 (5.2% by volume from 10.6 tonnes). Italian imports from
intra-EU sources increased from 32% to 33%. The share of developing country imports
increased from 52% to 60% by value and from 77% or 8.2 thousand tonnes to 87% or 11
thousand tonnes by volume over the period. China’s supplies increased by an annual
average 17% from € 61 to € 116 million in 2008, as supplies by India rose from
€ 4.9 to € 8.3 million over the period.
Italian imports of wallets and purses consisted of items made of leather or patent leather
(48% of value or € 113 million, 15% of volume or 1.9 thousand tonnes, an increasing
share); items made of plastic sheeting (29% of value or € 67 million, 57% of volume or 7.4
thousand tonnes, an increasing share); items made of textile (20% of value or € 47 million,
21% of volume or 2.7 thousand tonnes, a decreasing share); and items made of vulcanised
fibre, paper or paperboard (3.2% of value or € 7.5 million, 7.7% of volume or 1 thousand
tonnes, a decreasing share).
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•
France had imports valued at € 224 million in 2008 (7 thousand tonnes), an average
annual increase of 10% over the period from € 153 million (3.9% by volume from 6
thousand tonnes in 2004). The share of developing country imports increased from 28% to
29% by value and from 62% or 3.7 thousand tonnes to 63% or 4.4 thousand tonnes by
volume. China’s supplies increased by an annual average 12% to € 56 million in 2008, and
by 4.5% in volume from 3.4 to 4.1 thousand tonnes.
French imports of wallets and purses consisted of items made of leather or patent leather
(55% of value or € 124 million, 24% of volume or 1.7 thousand tonnes, an increasing
share); items made of plastic sheeting (25% of value or € 56 million, 40% of volume or 2.8
thousand tonnes, a decreasing share); items made of textile (15% of value or € 34 million,
28% of volume or 1.9 thousand tonnes, a decreasing share); and items made of vulcanised
fibre, paper or paperboard (4.3% of value or € 9.6 million, 8.8% of volume or 0.6 thousand
tonnes, a decreasing share).
•
Germany imported € 212 million in 2008 (11 thousand tonnes) an average annual
increase of 9.6% over the period from € 147 million since 2004 (5.3% by volume from 9
thousand tonnes). The share of developing country imports was unchanged at 61% by
value and increased from 75% or 6.7 thousand tonnes to 83% or 9.1 thousand tonnes by
volume over the period. By value, China’s supplies increased by an annual average 12%
from € 48 to € 75 million in 2008, while imports from India increased by 3.9% from € 33 to
€ 40 million. By volume, supplies by China rose from 5 to 7.3 thousand tonnes.
German imports of wallets, purses consisted of items made of leather or patent leather
(64% of value or € 136 million, 32% of volume or 3.6 thousand tonnes, an increasing
share); items made of plastic sheeting (16% of value or € 33 million, 29% of volume or 3.2
thousand tonnes, an increasing share); items made of textile (13% of value or € 28 million,
22% of volume or 2.4 thousand tonnes, a decreasing share); and items made of vulcanised
fibre, paper or paperboard (7% of value or € 15 million, 17% of volume or 1.8 thousand
tonnes, a decreasing share).
•
The UK had imports valued at € 186 million in 2008 (13 thousand tonnes), an average
annual increase of 9.6% over the period from € 129 million (8% by volume). UK imports
from intra-EU sources increased considerably. In comparison, the share of developing
country imports decreased from 57% to 52% by value, and from 79% or 7.3 thousand
tonnes to 73% or 9.1 thousand tonnes by volume over the period. Supplies from China
increased by an annual average of 8% from € 50 to € 68 million between 2004 and 2008,
and Chinese volume supplies rose from 6.3 to 7.8 thousand tonnes. Supplies from India
rose from € 19 to € 25 million by value and from 0.8 to 1.1 thousand tonnes by volume
over the period.
UK imports of wallets and purses consisted of items made of leather or patent leather
(52% of value or € 96 million, 27% of volume or 3.4 thousand tonnes, an increasing
share); items made of plastic sheeting (20% of value or € 36 million, 28% of volume or 3.5
thousand tonnes, an unchanged share); items made of textile (18% of value or € 34
million, 25% of volume or 3.2 thousand tonnes, a decreasing share); and items made of
vulcanised fibre, paper or paperboard (10% of value or € 19 million, 20% volume or 2.5
thousand tonnes, an increasing share).
•
Spain had imports valued at € 79 million in 2008 (6.8 thousand tonnes), an average
annual increase of 11% over the period from € 52 million (3.1% by volume from 6
thousand tonnes). The share of developing country imports was unchanged at 63% by
value, but decreased from 88% or 5.2 thousand tonnes to 83% or 5.6 thousand tonnes.
China’s supplies increased by an annual average 12% from € 21 to € 34 million in 2008 and
from 4.7 to 5 thousand tonnes. Spanish imports from India have increased from € 9 to
almost € 14 million over the period.
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Spanish imports of wallets and purses consisted of items made of leather or patent leather
(44% of value or € 35 million, 15% of volume or 1 thousand tonnes, an increasing share);
items made of plastic sheeting (25% of value or € 20 million, 50% of volume or 3.4
thousand tonnes, an increasing share); items made of textile (25% of value or € 20 million,
29% of volume or 2 thousand tonnes, a decreasing share); and items made of vulcanised
fibre, paper or paperboard (5.1% of value or € 4 million, 6.9% of volume or 0.5 thousand
tonnes, a decreasing share).
•
The Netherlands had imports valued at € 48 million in 2008 (4.6 thousand tonnes), an
average annual increase of 6.1% over the period from € 38 million (2.9% by volume from
4.1 thousand tonnes). The share of developing country imports decreased from 76% to
75% by value, and from 85% or 4.1 thousand tonnes to 79% or 3.6 thousand tonnes by
volume. China’s supplies increased by an annual average 4.9% from € 19 to reach € 23
million, while Dutch imports from India increased from € 8.4 to € 11 million in 2008.
Dutch imports of wallets and purses consisted of items made of leather or patent leather
(43% of value or € 20 million, 21% of volume or 1 thousand tonnes, an increasing share);
items made of plastic sheeting (18% of value or € 8.4 million, 26% of volume or 1.2
thousand tonnes, an unchanged share); items made of textile (30% of value or € 14
million, 37% of volume or 1.7 thousand tonnes, a decreasing share); and items made of
vulcanised fibre, paper or paperboard (9% of value or € 4.3 million, 16% volume or 0.7
thousand tonnes, an increasing share).
Exports
Exports of wallets and purses have increased over the period, as can be seen from Table 3.2.
The increase in volume is less than the increase in value, indicating increasing prices. However
as EU production of wallets and purses in 2008 was € 856 million, it would appear that over
half of all exports are in fact re-exports. Spain was the only major country to register a
decrease in exports (by value). Around 67% of all exports are wallets and purses made of
leather. Around 64% of EU exports went to extra-EU destinations led by Japan, Hong Kong,
USA, Switzerland and Singapore.
Table 3.2
Exports of wallets and purses 2004 – 2008,
€ million / thousands of tonnes
2004
value
volume
Total EU, of which from
France
Italy
Germany
Spain
United Kingdom
The Netherlands
Source: Eurostat (2009)
1,118
538
216
79
119
40
28
20
3
4
3
1
1
3
2006
value
volume
1,405
732
279
113
96
52
28
26
4
4
4
1
3
3
2008
Average
value
volume annual %
change in
value
1,568
738
384
130
98
54
44
23
3
4
3
2
1
2
8.8
8.2
15.5
13.3
-4.7
7.8
12.0
Opportunities and threats
+ The EU presents a mixed picture of opportunities and threats for exporters of wallets,
purses and other small leather goods from developing countries. It has a marginally
increasing domestic retail market, but local production volume has been falling. Imports
have been increasing consistently in recent years, particularly since 2004.
+/-The fact that the value share of imports from developing countries has increased over the
period by more than the volume share indicates that import prices may increasing more
rapidly than prices from other sources. This suggests that more opportunities can be found
in the mid to higher market segments.
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+
+
+
The larger Asian suppliers, especially China and, to a lesser extent, India continue to
dominate the market. However smaller DC exporters can find opportunities in niche
segments of this diverse market, for example products using a particular ethnic design.
The best opportunities appear to be in items made of leather, and plastic to a lesser extent.
Italy has experienced the biggest growth in imports, particularly of leather-made items
which have been offering opportunities. In fact all major importing countries, with the
exception of the Netherlands have shown increased opportunities for leather-made items.
It is also important to note that an opportunity for one developing country can also be a threat
to another. Many EU countries switch country sources purely for competitive advantage, rather
than moving supplier because of changes in demand for other reasons. Exporters should read
carefully the trends and developments outlined in other parts of this survey before establishing
whether a genuine export opportunity exists. The outcome of this analysis will depend on the
specific situation of each exporter.
See Chapter 7 of the CBI market survey ‘The luggage and leather goods market in the EU’ for
more information on opportunities and threats.
Useful sources
• EU Expanding Exports Helpdesk
  http://exporthelp.europa.eu/
  go to: trade statistics
• Eurostat – official statistical office of the EU
  http://epp.eurostat.ec.europa.eu;
  go to ‘themes’ on the left side of the home page
  go to ‘external trade’
  go to ‘data – full view’
  go to ‘external trade - detailed data’
• Understanding eurostat: Quick guide to easy comext
 http://www.eds-destatis.de/en/database/download/Handbook_Comext_Database.pdf
4
Price developments
Consumer prices
Global pressures on prices in the EU leather industry have resulted in lower priced wallets and
purses in the lower and middle segments in recent years. EU consumers are demanding and
look for good quality along with competitive prices. Special price promotions are important
elements of the marketing of wallets and purses, particularly in the summer period.
Consumers are less price sensitive to fashion-driven products, although a price-conscious
fashion segment of younger consumers for wallets and purses is developing, especially for
items made of plastic sheeting, textile and paperboard. However, in the higher segment, items
made of soft leather and the existing fashion trend are strong determinants of prices and
consumers are prepared to pay high prices for designer brands.
In the past few years, prices of wallets and purses have been polarising in most Western EU
markets between high-end products and lower priced imported products. Nevertheless, prices
have increased in some Eastern EU countries. With the internationalisation of retailing and the
existence of the same retail chains in many EU countries, it is possible to compare prices
between countries. This fact is also resulting in a convergence of prices between countries.
Import prices
When looking at import prices between 2004 and 2008, the prices of total EU imports has been
gradually increasing, as Table 4.1 indicates. However, intra-EU prices continue to narrow the
differential with developing country import prices as DC import prices increase more rapidly.
Intra-EU prices are approximately three times more expensive on average than developing
country import prices. Rising prices from developing countries suggests perhaps that the
continuing fall in consumer prices may be coming to an end. Another reason might be the
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Page 15 of 19
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reduction of imports from China that were sold at dump prices. Please note that these trends
should be interpreted with care, as changes in imports do not reflect the demand in the EU.
There are a number of reasons why prices can apparently change, for example major buyers
changing suppliers or changes in the composition of supply.
Table 4.1
Development in the EU of average import values/prices, 2004 – 2008, €
Total imports
Intra-EU
Developing countries
Source: Eurostat (2009)
2004
ave price
per item
14.25
31.67
9.55
2006
ave price
per item
15.50
33.33
10.83
2008
ave price
per item
17.11
34.53
11.53
Ave. annual
% change
4.7
2.2
4.8
The position of prices varies between countries, as Table 4.2 demonstrates. It is interesting to
note that prices rose by most in the countries that have a strong domestic production industry.
Dutch import prices are likely to be lower than their neighbouring countries due to the
Netherlands’ position as a re-exporter. Spanish import prices are almost half those of Germany
and France. This may be partly explained by the relatively high share of wallets and purses
made of leather in these countries.
Table 4.2 Developments in average import prices from developing countries
in major EU countries
Germany
United Kingdom
France
Italy
Netherlands
Spain
2004
ave price
per item
13.45
9.99
11.51
8.57
8.14
6.21
2006
ave price
per item
13.80
10.59
12.82
11.02
9.05
7.81
2008
ave price
per item
14.12
10.63
14.91
12.36
9.86
8.88
Ave. annual
% change
1.2
1.6
6.7
9.6
4.9
9.4
Source: Eurostat (2009)
Consumer price indices, including other small accessories, are published on National
Statistics websites (see individual country reports). The consumer prices of wallets and purses
differ greatly depending on the item, material, brand and design. An idea of prices can be
obtained from websites of online retailers such as:
• http://www.mywalit.com
• http://www.ciao.co.uk - select ‘fashion’ and ‘fashion accessories’
• http://www.soproma.fr – select ‘collection’
• http://www.gsell.fr
• http://www.shopwahl.de/portemonnaies_brieftaschen.htm
• http://www.speurders.nl - this is a website similar to eBay.
A good link to wholesalers and wholesale prices in Italy, for example, are the directories
http://www.italianmoda.com and http://www.forzieri.com. In Germany there is the site
http://www.lederwaren.com.
The main source now is the Internet. There are Internet websites of hypermarkets or large
department stores. For example http://www.elcorteingles.es in Spain or
http://www.karstadt.de in Germany. Websites of other department stores and other online
retailers can be found in the CBI market surveys covering the market in individual EU
countries. Mail order companies still provide good price references:
• http://www.otto.de
• http://www.wehkamp.nl
Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer
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CBI MARKET SURVEY: THE EU MARKET FOR WALLETS AND PURSES
•
•
•
•
http://www.laredoute.fr
http://www.argos.co.uk
http://www.quelle.es
http://www.laredoute.it
5
Market access requirements
As a manufacturer in a developing country preparing to access an EU country, you should be
aware of the market access requirements of your trading partners and the respective country
government. Requirements are demanded through legislation and through labels, codes and
management systems. These requirements are based on environmental, consumer health and
safety and social concerns. You need to comply with EU legislation and have to be aware of the
additional non-legislative requirements that your trading partners in the EU might request.
For information on legislative and non-legislative requirements, go to ‘Search CBI database’ at
http://www.cbi.eu/marketinfo, select luggage and leather goods and your country of interest
in the category search, click on the search button and click on market access requirements.
Specific quality demands
When exporting wallets and purses, take care of the following quality demands:
• Wallets and purses have a compartment to accommodate both small coins alongside the
big, heavy 2 Euro coins, as EU people handle a lot of coins.
• In both wallets and purses there should be at least four compartments: for bank cards,
credit cards, club-member cards, whose size is international, like American Express or
Mastercard.
• To avoid using embossed leather and stitching in contrasting colours.
• To finish the items smoothly by folding (including the skiving) instead of having cut edges.
With regards to the Euro, there are eight coins with diameters ranging from 16 to 25 mm.
Manufacturers have developed new products, such as key cases with holders for coins; talones
(a purse in the shape of a shoe heel); men's wallets with enlarged coin holders and women's
purses with bigger compartments. Euro banknotes are issued in seven values in the following
sizes:
Sizes of euro banknotes
•
•
•
•
5 euro = 120 x 62 mm
10 euro = 127 x 67 mm
20 euro = 133 x 72 mm
50 euro = 140 x 77 mm
•
•
•
100 euro = 147 x 82 mm
200 euro = 153 x 82 mm
500 euro = 160 x 82 mm
There are currently discussions in the EU parliament about a second generation of Euro
banknotes, which may be launched in 2012/2013 that may be different in size and in values.
Detailed information on packaging can be found at the website of ITC on export packaging:
http://www.intracen.org/ep/packit.htm. Information on tariffs and quota can be found at
http://exporthelp.europa.eu/.
6
Doing business
The most important ways to develop a business relationship are to either exhibit at one of the
main leather goods trade fairs, or to make a direct approach to wholesalers or major retailers.
In the EU, business people prefer a more stylish form of communication, both in the way a
presentation is put together, and in the way contact is made.
Business people are very interested in price, but it is also important to appreciate from the
outset the importance of retaining your customers through high levels of service. Many buyers
are not always loyal and it is much easier to lose a customer than to find a new one. It is also
Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer
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CBI MARKET SURVEY: THE EU MARKET FOR WALLETS AND PURSES
extremely important that you have a professionally produced website, so that potential
partners are able to independently see for themselves the type of organisation that you
represent. They may well make an evaluation of you on this basis. Your website will enable
you to contact consumers directly. See CBI’s publication ‘Website promotion - How to promote
your website in the EU’.
http://www.cbi.eu/marketinfo/cbi/docs/website_promotion_how_to_promote_your_website_in
_the_eu?via=pub
General information on doing business like approaching potential business partners, building
up a relationship, drawing up an offer, handling the contract (methods of payment, and terms
of delivery) can be found in CBI’s export manuals ‘Export Planner’ and ‘Your image builder’.
Furthermore cultural awareness is a critical skill in securing success as an exporter.
Information on cultural differences in the EU can be found in chapter 3 of CBI’s export manual
‘Exporting to the EU’. These manuals can be downloaded from http://www.cbi.eu/marketinfo go to search publications.
Trade magazines
Advertising in trade magazines can sometimes be an effective means of reaching a small
target group. See individual country reports for trade press in each major EU country.
• Leather International - http://www.leathermag.com.
• World Leather Magazine - http://www.leatherbiz.com.
Trade fairs
The leading trade fairs for the luggage and accessories industry in the EU are:
• Italy (The Bag Show in Milan – http://www.mipel.com),
• France (in Paris – http://www.ff-maroquinerie.fr/ and http://www.premiere-classe.com),
• Germany (in Offenbach - http://www.messe-offenbach.de),
• The UK (the Spring and Autumn Fairs in Birmingham – http://www.springfair.com and
http://www.autumnfair.com),
• Spain (Iberpiel in Madrid - http://www.semanapiel.ifema.es),
• The Netherlands (details can be found at http://www.schoenencentrum.nl).
See the individual country reports for more information.
Trade associations
At an EU level, ‘Euroleather’ - http://www.euroleather.com - is the main trade association for
the leather industry. Other useful contacts are:
• Online portals - http://www.leathernet.com and http://leather.tradeworlds.com.
• The Leather Connection - http://www.theleatherconnection.com.
• Shoeinfonet - http://www.shoeinfonet.com - is a portal dedicated to footwear, leather
goods and related industries.
• The European Promotional Products Association - http://www.eppa-org.eu - represents the
giftware industry.
There is no specific source for wallets and purses, but see also trade associations listed in the
CBI market surveys covering the market in individual EU countries.
This survey was compiled for CBI by Searce
Disclaimer CBI market information tools : http://www.cbi.eu/disclaimer
Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer
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CBI MARKET SURVEY: THE EU MARKET FOR WALLETS AND PURSES
Appendix A General product description
Wallets and purses fall into the product group ‘small leather goods’ and are defined as any
type of device that is capable of being carried in a pocket or in a (hand) bag. The focus in this
survey will be on wallets and purses, which form the largest part of this product group. Wallets
tend to be used primarily, but not exclusively by men, for carrying notes and credit cards.
Purses are more generally used for carrying coins, although nowadays they can also be used
for notes and cards. Women are the principal users of purses. Other small leather goods are:
key pouches, cigarette cases, toilet bags, holders for binoculars, cameras, spectacles, business
cards, phones, portable music systems (ipods), maps, gps systems or video games. In this
survey these items are included in all statistics, but are not covered in the explanations in the
Chapters 1, 4 and 5 of this survey, which primarily focus on wallets and purses.
The product groups used for this survey for imports and exports statistics are classified
according to the material used in their manufacture. They are categorized as ‘other small
accessories’ when looking at production figures, imports and exports. In 2006, around 45%
of EU imports of small accessories by value were made of leather.
Other
small
accessories
HS codes
42023100
42023210
42023290
42023900
Description
Wallets, purses, key
pouches, cigarette cases,
tobacco pouches & similar,
of leather, composition or
patent leather
Wallets, purses, key
pouches, cigarette cases,
tobacco pouches & similar,
of plastic sheeting
Wallets, purses, key
pouches, cigarette cases,
tobacco pouches & similar,
of textile
Wallets, purses, key
pouches, cigarette cases,
tobacco pouches & similar,
of vulcanised fibre, paper
or paperboard
PRODCOM
19201230
Description
Articles normally
carried in pocket or
handbag
Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer
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