According to the Federal Republic of Germany retailers in the textile sector (BTE), the German clothing market represented 57 billion Euros in 2006 of which 26 billion Euros concerning the woman's clothing market.
The 5 most important cities in Germany in terms of the number of inhabitants are Berlin, Hamburg, Munich, Cologne and Frankfurt.
The distribution in Germany
In Germany we are witnessing a process of concentration of distribution on the clothing market to the detriment of specialized independent retailers who must now differentiate themselves by products that are more exclusive and not present on the high street. It is the high quality products segment that suffers the least in clothing retail commerce in Germany.
Independant retailers remain, however, the most important distribution channel on the clothing market (35%) followed by chains (29%) and online sales which are progressing rapidly (13%).
The payment habits in Germany
Germany is considered one of Europe's good students when it comes to payment terms: payment terms that somewhat resemble those in the United Kingdom and in the Netherlands, shorter than in France and in Southern Europe.
FDI Logbox Central Europe notes that the majority of boutiques pay in 30 to 60 days, but a small number, around 10%, pay in 10 days, in order to benefit from a 4% discount.
FDI Logbox Central Europe receives 71% of payments from boutiques by transfers, 16% by checks, 8% by drafts and 5 % by direct debits.
Concerning methods of payment to privilege, we recommend operations from a centralizing account, such as transfers (SWIFT being the most used) and direct debits (debiting upon authorization, Einzugsermächtigung, is the most used):
The unpaid is impossible by transfer, and the direct debit has a due term payment.
We recommend less the use of drafts (Wechsel) and checks (Schleck): the remittance of a check not equalling a transfer of credit, the issuing bank can stop a check at any moment. So the check has poor legal value.
Important to know: stamps on drafts cost 12 Euros.
Useful Contacts for finding an agent, distributor or new lines in Germany
It is possible thanks to the FDI Logbox network!
All information on Fashion Networking
In Germany, FDI Logbox Central Europe works daily from its offices situated in Frankfurt with over 3,500 multi-brand boutiques specialized in clothing, shoes and fashion accessories, but also with all department stores.
Among these, we can mention the essential P&C, Breuninger, Engelhorn and Kadewe.
For more information on the German market, don't hesitate to contact Anke Glaser :
FDI Logbox Deutschland
Frankfurter Str. 151 a
DE - 63303 DREIEICH
Tel. : + 49 (0) 6103 37810
Fax : +44 (0) 6103 3781111
E-mail : germany@fdi-logbox.com
More information about fashion market in Germany
