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As Rogers and Gamans (1983 - page 111) quote �the London symbol of fashion was Carnaby Street,
which became synonymous with wild, exciting, avant-garde clothing; the street was filled with
boutiques carrying new young fashion by new young British designers�.
France, Uk and Italy have always been the three most important fashion centres marked by a great
influence with the international fashion base, yet they grew in a different pattern.
In France and Italy, in fact, since the mid-1970s, textile manufacturers entered into productive
relationships with fashion designers, which brought glamorous showcases for their product and
lucrative business arrangements. This was the exception rather than the rule in Britain.
In fact, the small-scale nature of the domestic industry meant that designers were not in a strong
position to specify design requirements and negotiate advantageous deals with textile manufacturers.
In the 1960s ready-to-wear clothing was introduced for the firs-time on the market by fashion houses,
in order to supplement income, because couture sales declined; along with ready-to-wear, accessory
lines were produced.
The ready-to-wear performed such a success, that it made the foundation for the ready-to-wear
industry.
In Italy it grew in size and sales throughout the 1970s; names like �Armani�, �Missoni�, �Ferragamo�
and �Fendi� became world famous.
Today the French ready-to-wear industry has an impressive list of couture members as well as ready-
to-wear designers. A couple are �Sonia Rykiel� and �Claude Montana�.
Since the early 1980s London has also enjoyed a burgeoning of young fashion talents, such as �John
Galliano� or �Georgina Godley�, who have played a key role in regenerating London�s reputation for
innovative and challenging collections.
�Among the world-wide famous designers there are �Vivienne Westwood�, �Alexander McQueen�,
all winners of the �British Designer of the Year Awards�� (De la Haye A., 1996 pages 31-32).
During the mid-1980s the international couture industry performed the highest sales since the World
war; haute couture clients numbered some 3,000-world wide in the late 1940s there had been around
15,000- but none the less this was a significant upturn in fortunes for the industry.
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1.2 Haute Couture and Ready-to-Wear
At the European level there are various Federations, which comprise European designers, in order to
protect their image of high quality brand name and to preserve their products from imitation and
falsification.
In France there is the �F�d�ration Fran�aise de la Couture du Pr�t-�-Porter des Couturiers et des
Cr�ateurs de Mode�, that defines some criteria by which a company can be defined as High Fashion
Designer:
™ The high fashion designers have to create every year new collections, which are designed and
produced according to the customer requests;
™ The firm has to employ at least twenty people in charge of the production;
™ The firm has to introduce a new collection every spring-summer and fall-winter season
™ The collections must comprehend at least fifty new models
™ The firm must introduce every new collection to the customers in the show-rooms
The wording �Haute Couture (high fashion)� and Couture Creation (fashion creation)� are protected,
thus they can be used exclusively used by companies recognised by the Commission of the French
Industry Ministry.
The new models shown are both produced by the firm and are sold to French and foreigner
manufacturers (which buy the right to produce their models).
Nowadays, fourteen companies have the right to the denomination of �Haut Couture�, some among
them are: Chanel, Christian Dior, Christian Lacoix, Givenchy, Hanae Mori, Yves Saint Laurent; some
Italian designer are comprised in the Federation as designer correspondents: Valentino and Gianni
Versace.
As concern ready-to-wear by fashion designers, it has a very high image, and the quality is close to the
�Haute Couture� production level.
The ready-to-wear designers can be organised in different patterns.
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Some of them prefer producing their own models within the establishment, whereas some others opt
just for the production of the prototypes accrediting a second time an external manufacturer for the
whole production of the articles Manufacturers, usually receive from the designer house fabrics and
yarns as raw material.
In both the two cases explained above the fashion designer ensure the distribution of the whole
production to the retailers (mono brand shops owned by the designer house, mono brand shop under
franchising contract).
Another option sees the designer house in charge of the prototypes �production and adjustment,
whereas the whole production is realised by manufacturers under the licensing contract. In this case
the designer can either distribute the products, or can allow the manufacturer to do it.
In 1973 was born the �F�d�ration du Pr�t a Porter� in Paris, which comprises some thirty-six
designers associated. Among them are various French stylists as �Sonia Rykiel, and Jean Paul
Gaultier, but there are some foreign stylists as well such as Balenciaga (Spanish), Valentino and
Cerruti 1881 (Italians) or Vivienne Westwood and John Galliano (British).
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1.3 The European Clothing and Textile Sector
According to the Report prepared by the OETH (L�Observatoire Europeen du Textile et de
l�habillement � 1997 page 2)� at the request of �Directorate General III of the European
Commission�, the European clothing and textile industry represents a major industrial sector,
employing over 2.2 million people in almost 120,000 enterprises.
As Table 1.1 shows, its total turnover amounts to some ECU 180 billion and its exports to some ECU
30 billion. It accounts for 4,2% of the value added of manufacturing industry as a whole and 7,6% of
manufacturing employment.
The EU clothing system is a very strong element in the EU economy.
It is characterised by various competitive strengths, such as the existence of a European network of
enterprises of all types and sizes, which offers a unique opportunity for co-operation and mutual
enrichment of experience.
The know how and expertise of employees and firms with a long tradition in the sector, allow a
flexibility in delivery and the fulfilling of additional orders at times of capacity constraint.
Table 1.1
European Market Key Figures (1996)
Textiles Clothing
Turnover (ECU bn)* 109.5 68.9
Imports (ECU bn)
Exports (ECU bn)
Trade Balance (ECU bn)
13.3
18.4
5.2
30.6
11.9
-18.7
Employment (000)** 1,230,3 1,017,7
Source: OETH calculations, based on OETH, Eurostat, DEBA Geie, Euratex, National Association and
European Branch Association data
.* for enterprises with 20 or more employees ** total employment, in enterprises of all sizes
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1.3.1 Trade in Clothing
The value of EU15 clothing imports has increased by 60% from ECU 19,2 billion to ECU 30,6
billion, between 1990 and 1996, while the value of exports, accounted in 1996 ECU 11,9 billion and
increased the value by over 50% since 1990.
The principal supplier countries were China, Turkey, Hong Kong, Tunisia, Morocco and Poland,
accounting in total for 50% of EU imports by value.
The main EU market for clothing imports from outside the EU is Germany, with a share of 40% by
value, followed by the UK with 15% and France with 14%. These three markets together dominate
EU clothing imports, although only the UK among them saw a strong rise in imports in 1996.
The main Member States, regarding exports of clothing to third countries, are Italy (43%), Germany
(16%) and France (15%). These cover three-quarters of EU clothing exports.
As compared with 1990, Italy has increased its share (an increase of 85% by value), while the shares
of Germany and France have declined. Other countries with increased shares since 1990 are the
Netherlands and the UK.
As regard the customer countries, some 43% go to three markets only, Switzerland, Japan and USA,
while Hong Kong and Norway take a further 10% between them.
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1.3.2 The Retail Structure
The retail structure has been characterised by a structural change throughout the 1990s. Because of the
economic recession in which the EU countries have fallen, fashion and clothing have lost their status-
symbol role.
The 1990s customer, has become more attentive to the high quality-price relation and the service
received; this change has affected the retailer choice of customers, attracted more by larger retailers,
predominantly specialised chains or department stores, able to provide a wider range of products at a
lower price.
Consequently, there has been a reduction of the sales share, on the total sales in clothing, registered by
the independent retailers.
As Figure 1.1 shows, between 1988 and 1996, the clothing retailing has concentrated especially in
three types of retailers: specialised chains, department and variety stores and supermarkets and
hypermarkets.
Over the same period independent stores lost the 7% of share, while the supermarkets & hypermarkets
and specialised chains, increased respectively by 2% and 4%.
Among European countries, Italy has one of the least concentrated retail structures UK has one of the
most concentrated textile and clothing retail structure, and France represents an intermediate case.
Figure 1.1
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The Structure of EU clothing retailing
1988 1996