There are good opportunities for exporters of blankets and throws in the mid- and higher-end segments of the European market, but competition is fierce. Added value needs to be offered through design, craftsmanship, sustainability, and storytelling. In order to be allowed to enter the European market, the European Union’s (legal) requirements must be complied with, as well as any additional or niche requirements buyers may have.
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Blankets and throws must satisfy certain requirements in order to be allowed on the European market. For a more detailed overview, see our report on buyer requirements for Home Decorations and Home Textiles (HDHT).
When exporting to Europe, you must comply with the following legal requirements:
Europe’s General Product Safety Directive (/95/EC) is a legislative framework, stating that all products marketed in the European Union (EU) must be safe to use. Unsafe products are rejected at the European border or withdrawn from the market. The EU uses the Safety Gate system to list and share information about such products.
In the European Commission adopted a proposal for a General Product Safety Regulation, to replace the current directive. This new legislation would be applied in its entirety across the EU.
The REACH regulation (EC /) lists restricted chemicals in products that are marketed in Europe.
Restricted chemicals in the production of textiles include:
The European Textile Regulation states that textile products must be labelled or marked, to ensure that consumers know what they are buying. The regulation applies to all products that contain at least 80% (by weight) of textile fibres. These products must have a label that states their full fibre composition and, if applicable, the presence of non-textile parts of animal origin. The label needs to be durable, easily legible, visible, accessible, and printed in all the official national languages of the European countries the product is sold in.
There is no EU-wide legislation on the use of symbols for washing instructions and other care aspects of textile articles. To give consumers clear information, you should follow the ISO : standard for the use of graphic symbols in care labelling.
The Packaging Directive (94/62/EC) is aimed at preventing or reducing the impact of packaging and packaging waste on the environment. Buyers may therefore ask exporters to minimise the use of packaging and/or to use sustainable (recycled) materials. The EU’s new Circular Economy Action Plan identifies packaging as one of the sectors that uses the most resources, with a high potential for circularity. All packaging on the European market should be reusable or recyclable in an economically viable way by . To help achieve this, the Packaging Directive is under review.
Europe also has requirements for wood packaging materials (WPM) used for transport, such as packing cases and pallets. The goal is to prevent organisms that are harmful to plants or plant products from entering and spreading within the EU.
Requirements with regard to social and environmental sustainability are becoming more and more common on the European market. These include requirements with regard to sustainable raw materials and production processes, as well as the impact a company has on the environment and the wellbeing of its workers and the community. These topics can be included in the “story” behind a product and company. Buyers appreciate good storytelling as it helps create an emotional connection with their customers.
The increasing importance of sustainability is reflected in a recent Maison et Objet Barometer, in which 62% of HDHT retailers said they had noticed growing interest from their customers in ethical products. They indicated that 92% of their customers think natural materials are (very) important, 77% value socially responsible production methods, and 71% care about recyclable/recycled materials.
An increasing number of European buyers prefer to work with exporters which comply with the following schemes:
Standards such as ISO and SA can be consulted to find out more about on sustainable options. However, only niche market buyers demand compliance with such standards.
Half of green claims are not supported by evidence, according to a recent screening of websites by the European Commission and national consumer authorities. With this so-called ‘greenwashing', companies pretend to be doing more for the environment than they really are. In 42% of the cases the claims were believed to be exaggerated, false or deceptive and could potentially qualify as unfair commercial practices under EU rules. Unsurprisingly, many consumers (and importers) do not trust generic sustainability claims. In a study, just 20% of Western European respondents had a great deal a lot of trust in claims about sustainable business practices.
Clearly, being honest yet effective is key. For help with communicating about sustainability performance, see the guidelines sustainability claims published by the Netherlands Authority for Consumers and Markets. The British Competition and Markets Authority’s guidance for businesses on making environmental claims also lists 6 principles which should be followed.
Organic cotton is becoming an increasingly popular sustainable option for home textiles. Although this is not (yet) a mainstream requirement, you can research your options for certification from the Global Organic Textile Standard (GOTS). The easiest way to use certified organic cotton is by sourcing certified organic yarn or fabric.
The European Commission has adopted the Circular Economy Action Plan, as a main building block of the European Green Deal. The action plan includes the intention to launch a new strategy for textiles. One goal of this strategy is to boost the European market for sustainable and circular textiles.
The information on the outer packaging of blankets and throws should correspond to the packing list sent to the importer.
External packaging labels should include:
The most important information on the product labels of blankets and throws is composition, size, origin and care labelling. The buyer will also specify what information they need on the product labels or on the item itself, such as logos or ‘made in’ information. This is part of the order specifications. In Europe EAN or barcodes are often included on the product label. For more information, please refer to the chapter on the Textile Regulation.
You should pack blankets and throws according to the importer’s instructions. They have their own specific requirements for the use of packaging materials, filling boxes, palletisation and stowing containers. Always ask for the importer’s packaging specifications, which are part of the purchase order. Packaging usually consists of plastic wrapping to protect the fabric from water, solar radiation and staining.
Proper packaging minimises the risk of damage as a result of dirt, temperature or humidity. Packaging should ensure the items inside a cardboard box stay clean. This is particularly important for textiles. The packaging should also prevent damage to the boxes when they are stacked inside the container. Packaging therefore usually consists of an outer cardboard box lined with protective material like plastic wrapping. The actual products are usually packed in polybags, either individually or in relatively small quantities, depending on the size of the product.
Packaging must be easy to handle in terms of size and weight. Standards are often related to labour regulations at the point of destination, as specified by the buyer.
Boxes are usually palletised for air or sea transport, and it is important to maximise the use of pallet space. Nesting or stacking blankets and throws inside the container reduces costs. Keep this in mind when designing your products.
While packaging has to provide maximum protection, it is essential to avoid using excess materials or shipping ‘air’. Buyers incur costs for waste removal.
You can reduce the amount and variety of packaging materials by:
Importers are increasingly banning wooden crating and packaging. Economical and sustainable packaging materials are more popular. Using biodegradable packaging materials can be a market opportunity. Some buyers may even require it.
Blankets and throws are usually displayed unpacked, making attractive consumer packaging less important. Consumer packaging generally needs to be protective but the design can be simple. In the mid-high or high-end segments, you should provide consumer packaging that matches the design, quality and price of the product. Often the buyer will often also inform the exporter about the required packaging.
Payment terms are usually agreed upon with the buyer in the order contract. They vary from buyer to buyer and are related to the volume and value of the order, the type of distribution partner, whether or not an agent is involved, and what delivery terms apply.
Delivery terms, known as Incoterms, depend on the type of distribution partner and their preferences regarding physical distribution. Importers generally prefer Free On Board (FOB) or Free Carrier (FCA) arrangements.
According to the World Economic Forum, 86% of people want significant change in order to make the world a fairer and more sustainable place after COVID-19. The concept of fair trade supports fair pricing and improved social conditions for producers and their communities. A competitive advantage can be gained with fair trade certification, especially if the production of the items is labour intensive.
Well-known fair-trade certifications are issued by the World Fair Trade Organisation (WFTO) and Fair for Life. For most fair trade-oriented buyers in Europe, however, simply complying with WFTO’s fair trade principles is enough.
While sustainability is becoming more and more common in this sector, the actual use of certification is lagging behind. However, buyers are increasingly interested in certification to “prove” their sustainability – particularly organic certification.
Some of the most popular certification processes for home textiles are:
See an example of GOTS-certified organic cotton baby blankets.
Other options include the Nordic Swan eco-label (used in the Nordic countries) and the EU Ecolabel. The Ecolabel is only awarded to products with the lowest environmental impact in a product range.
Woolmark certification provides consumers with guaranteed wool fibre content and an assurance of quality. Focusing on Australian wool, the Woolmark certification mark includes specific standards for several product groups, including blankets and throws.
The European market for blankets and throws is segmented into low-, mid- and high-end (premium) market segments. The blankets and throws are bought and sold through the traditional channels: importers/wholesalers that supply to retailers, as well as retailers that buy directly from suppliers.
Figure 1: Segmentation of the European market for blankets and throws
Source: Globally Cool, GO! Good Opportunity & Remco Kemper
In the low-end segment, simple and inexpensive blankets and throws are common. Typical retailers include Aldi and HEMA. The throws and blankets are usually made of man-made fibres such as polyester, acrylic, polyamide (nylon), or blends of these fibres such as microfibre. These may be blended with cotton, but there are no blankets or throws made of 100% natural fibres available in the low-end segment. Even in the middle-low-end segment, the selection is relatively limited.
The majority of the products on the low-end market come from China. Competing with this type of cheap mass production is almost impossible. Instead, the middle- and high-end markets hold the most opportunities for small or medium-sized enterprises (SME) from developing countries. If your production is mechanised (power looms, knitting machines, etc.) you can also target the middle-low-end market.
In the middle-end segment, there is more emphasis on design and finish, while prices are still reasonable. Zara Home is an example of a key player in this segment. To supply goods to the middle-high-end segment, you need to offer added value in terms of materials and/or craftsmanship. Sustainability is increasingly important to consumers in this segment. This makes natural and/or recycled materials an interesting option, as well as natural dyes. Fashion and trends also play a role, especially for throws.
In the high-end segment, designer quality is common and private labels are standard. The designs in this market tend to be timeless and the focus is on the quality of the material and finish. These blankets and throws can also be made with high-end materials such as silk, cashmere, other high-quality types of wool, and blends of these fibres. Luxury department stores such as Harrods play an important role in this market.
The channels through which blankets and throws are bought and sold on the market follow the traditional patterns: importation takes place via importers/wholesalers that supply to retailers. Larger retail chains often bypass the importers/wholesalers and import blankets and throws themselves, while more and more smaller retailers have also started buying directly from suppliers. In some cases, buying agents play a role.
Figure 2: Trade channels for blankets and throws in Europe
Source: Globally Cool, GO! Good Opportunity & Remco Kemper
Importers/wholesalers sell products to retailers in their own country or region, or re-export across Europe. Some European markets therefore source the products from importers/wholesalers from other European countries (intra-European trade). Supplying to buyers in the project market (such as hotels and spas) can be considered a secondary distribution flow for them.
These importers/wholesalers take care of the import procedures. They take ownership of the goods when they buy them from the exporter (as opposed to agents), taking on the risk of the onward sale of the products. Developing a long-term relationship can lead to intensive cooperation on appropriate designs for the market, new trends, the use of materials, the type of finishing and quality requirements.
Retailers come in many sizes: they can be large and part of a chain, or small and independent. Larger retail chains, in particular, often import directly from exporters in developing countries. Many even have their own buying offices in developing countries. Others, mainly the smaller independent stores, order goods in Europe from wholesalers.
There is a tendency towards consolidation in European retail. Large retail brands are becoming more widespread and more ‘lifestyle-centred’, offering home decoration items and textiles in addition to fashion accessories and furniture.
European buyers work through various types of intermediaries. In developing countries, there may be buying houses, and in Europe there are both buying agents and sales agents.
Agents and buying houses mostly work on commission. They may contact exporters directly, or a buyer may indicate they prefer using an intermediary. However, it is always best to try to work directly with the buyer. That way, no commission is charged and the buyer can be communicated with directly.
E-commerce is growing, particularly since the start of the COVID-19 pandemic. The best way to benefit from this, is to focus on finding a European importing wholesaler or retailer with a strong online presence to supply products to. For most producers, this is not a separate channel. Catering to buyers that sell online does not differ from doing business offline. Retailers often combine online and offline channels, but the way of supplying to them is the same. Companies that only sell online also need to take inventory before they can sell their products.
Selling directly to European consumers via an exporter’s own website can be complicated and costly. The exporter bears responsibility for factors like aftersales obligations and payment systems, among other things. For most exporters from developing countries this is not manageable. In addition, according to the Consumers’ Association Dutch consumers have been buying less from non-EU web shops since new EU VAT rules were rolled out in July . This makes direct online sales even less appealing.
Importers/wholesalers are the main channel between exporters in developing countries and European retailers. Working with them can be a good option if the goal is to develop a long-term relationship. These importers usually know the European market well, so they can provide valuable information and guidance on market preferences.
However, as the market becomes more and more competitive, large retailers are increasingly importing goods directly instead of through wholesale importers. Cutting out the margins of the wholesaler and reducing delivery time to the market are obvious advantages of this. In the lower-end market segments, self-importing retailers might drive a much harder bargain. However, price is less of an issue in the mid-high segment, which offers the most opportunities.
Smaller, independent European retailers continue to buy mainly from domestic wholesalers/importers. As in other sectors, independent HDHT retailers struggle to compete with retail chains. They need to differentiate themselves based on value-added service, specialised offers and authenticity. These buyers typically prefer to order small quantities of each item and small total volumes and to have the items delivered to their doorstep. Repeat orders are also less likely with these buyers. This may not be cost effective for all exporters.
The trend of direct sourcing is expected to continue and may create more opportunities for exporters in developing countries. The pool of buyers will grow if more retailers become importers, which could improve exporters’ bargaining position. Importing retailers order items for their own shops and can therefore place orders much more quickly than some importers/wholesalers, who may need to show samples to their retailers before ordering.
Europe mainly imports its blankets and throws directly from China. To avoid competing with these manufacturers, it is best to focus on the mid- to high-end market.
China is by far the leading supplier of blankets and throws to Europe, with a direct import market share of 56%. Germany trails behind at 6.8%. The remaining countries in the top 6 are India (5.3%), Poland (3.1%), Italy (3.0%) and Belgium (2.9%).
It is important to be aware of the fact that European countries play different roles in the market. Some are mainly importers and others are mainly manufacturers. Western European countries are mainly importers (and re-exporters). Most Western European importers do not just sell their products in their own country, but they also distribute them across the continent.
European production mainly takes place in Eastern Europe, mostly because of relatively low transport and labour costs. These countries can therefore be a good alternative for sourcing low- to mid-end products. Some high-end products from well-known premium brands with a long history are also produced in Western and Southern Europe.
Mass-produced blankets and throws are produced at the lower end of the market and in the most cost-effective country. It is best not to try to compete with these countries, but rather to focus on the mid- to high-end market.
With a direct import market share of more than 50%, China is Europe’s main supplier of blankets and throws. However, the country’s dominance seems to be slightly decreasing. After already declining between and , Chinese exports of blankets and throws to Europe fell by another 15% in . In they recovered to €535 million, but this is likely to have included a significant quantity of delayed shipments that carried over from .
Its low-cost workforce, availability of raw materials and efficient shipping to Europe compared to other Asian countries make China the most competitive supplier. However, the country’s rising labour costs in the last 10 years have affected its price competitiveness. In the coming years, disruptions following China’s trade war with the United States and the COVID-19 pandemic may also negatively impact the country’s trade performance. This could benefit companies from other developing countries.
Chinese producers mainly supply inexpensive products to the lower ends of the market, as product development and creativity are not their key strengths. To avoid having to compete with them in terms of cost, it is important for a company to differentiate itself and avoid selling mass-produced items.
Imports of blankets and throws from India to Europe have been fluctuating in recent years. They reached €51 million in , which amounts to average annual growth of 2.1% since .
India offers skilled labour and transport at a relatively low cost. As one of the biggest cotton producers in the world, manufacturers have direct access to high-quality cotton at relatively low prices. In addition, the Indian government’s recent efforts to reach out to the leading nations in the world have resulted in strong bilateral trade relationships.
As an Eastern-European country, Poland benefits from its proximity to the Western-European market. This enables suppliers to offer short delivery times. At the same time, labour in Poland is relatively affordable compared to Western Europe. Suppliers have a good understanding of the European consumer and have well-established and efficient production lines. In addition, products that are ‘Made in Europe’ are becoming increasingly popular.
These advantages may have helped Poland keep its blanket and throw exports to Europe fairly stable in recent years. The value of the country’s exports to Europe grew from €23 million in to €30 million in . This amounts to a market share of about 3%.
Liangliang are exported all over the world and different industries with quality first. Our belief is to provide our customers with more and better high value-added products. Let's create a better future together.
Between and Turkey’s blanket and throw exports to Europe were booming, making Turkey Europe’s second largest supplier with a value of €52 million. However, this figure fell 66% in and has yet to return to the previous level. Whereas the values of other suppliers were relatively high in , Turkey’s was just€24 million. This put them in seventh place among Europe’s leading suppliers.
Turkey offers low-cost labour and is conveniently located close to the European market, allowing for relatively easy and affordable transport. The low costs and short lead times make locations in Turkey appealing for the manufacture of blankets and throws.
Like Poland, Latvia is an Eastern European country that benefits from its proximity to the Western European market. The country’s blanket and throw supplies to Europe have been fluctuating around €11 million in recent years. This included a decline of 14% in , followed by considerable growth (31%) in . Latvia is known for its (handwoven) linen, handcrafted pieces, and skills in weaving, knitting and embroidery.
Lithuania is another Eastern European player. Because it produces its own linen, the country is home to quite a lot of suppliers of linen products. A strong selling point of linen is that it can be produced much more sustainably than cotton. This appeals to the mid- and higher-end segments, which exporters in developing countries should also focus on. Lithuanian producers also work with (imported) wool.
Like Latvia, Lithuania’s exports to Europe have been fluctuating around €11 million. It is among the few supplying countries that managed to increase its exports in , but this may be due to its relatively poor performance in .
Lao Ock Pop Tok (‘East Meets West’) brings eastern tradition together with western innovation to keep local textile traditions culturally and commercially viable. The artisan social enterprise was founded and is also run by women, and is based on fair trade and sustainable values. Its mission is clear: “to elevate the profile of Lao textiles and artisans, to increase economic opportunities for artisans, and to facilitate creative and educational collaboration in Laos and worldwide”.
Figure 4: Ock Pop Tok – Tradition to innovation: Our design journey
Source: Ock Pop Tok @ Youtube
Ock Pop Tok specialises in handmade items made of locally sourced natural and organic raw materials. Its blankets and throws are made primarily of hand-spun cotton and are coloured with natural dyes such as indigo (blue), sapaan (pink) and rosewood (brown). They are produced via the Village Weavers Project – which employs about 400 artisans from 17 different ethnic groups – and at the Living Crafts Centre. Travellers can also visit the centre to learn about the textiles and take classes.
Pueblo focuses on textiles made of alpaca wool, a typically Peruvian fibre. They mainly produce blankets and scarves/shawls in various styles. Pueblo works with various Andean communities, whose traditions serve as inspiration for the designs. The company’s dedicated “why alpaca” webpage provides information on alpaca herding/farming (the ‘story’) and highlights the benefits of the material. Pueblo emphasises its support for communities that work with the alpacas, “protecting the animal species, promoting respect for the environment and fair working conditions”.
Luxury brand Janavi produces scarves, blankets and cushion covers for the premium market. To cater to this segment, it uses high quality materials – particularly ethically sourced cashmere. Their team of artisans specialises in a range of key production processes, from weaving, dyeing and hand-painting, to knitting, crocheting and traditional hand-embroidering. See an example ofhandmade blankets.
Janavi’s finely woven or knitted blankets are made of cashmere, merino wool, or Egyptian cotton. These handmade blankets generally come in plain colours, with a woven motif such as herringbone and a (contrasting) cross-stitched rib. Their main selling point is the quality of the materials, providing “comfortable warmth, and easy breathability”. Prices range from about $250 (cotton) to $1,100 (cashmere).
Because blankets and throws have both practical and decorative purposes, most of the competition comes from products within the same group. For example, blankets and throws are in competition with bed textiles, in particular bedspreads and duvet covers, made specifically for the bedroom.
Prices for blankets and throws vary across market segments, which range from low-end to high-end. After adding in logistics costs, wholesaler and retail margins, and Value Added Tax (VAT), European consumer prices amount to about 4 to 6.5 times your selling price.
Table 1 provides an indication of the prices of blankets and throws in the low-, mid- and high-end market segments. The key word here is ‘indication’, since prices for blankets and throws vary depending on the technique, size, material, design, brand and other methods for adding value, including a strong sustainable concept.
Table 1: Indication of consumer prices of blankets and throws in Europe
Low-endMid-endHigh-end/premiumBlankets€35 - €55€60 - €200€200 or moreThrows€15 - €25€30 - €120€125 or moreConsumer prices will depend on the value perception of the product in a particular segment. This is influenced by the marketing mix.
Figure 5: Marketing mix – the 4 Ps
Source: Globally Cool, GO! Good Opportunity & Remco Kemper
The European consumer price of blankets and throws is about 4 to 6.5 times the selling (FOB) price. In addition to energy, labour and transport costs, FOB prices depend greatly on the availability and cost of raw materials. Occasional cost increases are not passed directly on to the consumer, so they squeeze the margins of exporters, importers and retailers. The recent pandemic-related disruptions have resulted in longer-term cost increases. Because of this continuing pressure, some European retailers have now decided to increase their consumer prices.
Consumer prices generally consist of:
Figure 6: Indication of price breakdown for blankets and throws in the supply chain
Source: Globally Cool, GO! Good Opportunity & Remco Kemper
For example, in Table 2 the FOB price is set at €10. Depending on the market segment the product is designed for, the consumer price will range from €41 in the low-end market to €65.50 in the high-end market.
Table 2: Example of the price breakdown by market segment
Low marginMiddle marginHigh marginFOB price€10.00€10.00€10.00Your FOB priceTransport, handling charges, transport insurance, banking services (20/15/15%)+2.00
€12.00
+1.50
€11.50
+1.50
€11.50
Landed price for the wholesale importerWholesalers' margins (50/75/90%)+6.00
€18.00
+8.60
€20.10
+10.40
€21.90
Selling price from the wholesale importer to the retailerRetailers' margins (90/110/150%)+16.20
€34.20
+22.20
€42.30
+32.70
€54.60
Selling price excluding VAT from the retailer to the end consumerSelling price incl. VAT (20%)+6.80
€41.00
+8.50
€50.80
+10.90
€65.50
Selling price including VAT from the retailer to the end consumerThe FOB price of €10 includes the margins of the producer. These margins will depend on efficiency and the way in which prices are determined. Margins in the lower-end segment, in which large volumes are sold at low prices, are generally smaller than in the middle- and higher-end segments.
The following are a few examples of prices of blankets and throws sold across Europe:
This study was carried out on behalf of CBI by Globally Cool B.V. in collaboration with Remco Kemper.
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You can only succeed in the lower segment if your core activity is increasing efficiency and reducing cost on a structural basis.
Remco Kemper, international HDHT consultant
21 January
Coral velvet is a new kind of fabric. Due to the high density between the fibers, coral-like, good coverage, like a live coral as soft body, colorful, it is called coral velvet. Coral is soft and warm, but it is easy to lose hair and accumulate dirt and other dirty things. The following is an analysis of the advantages and disadvantages of coral velvet.
What kind of fabric is coral velvet？
Coral velvet is a kind of warp knitted fabric, after dyeing, drawing, shearing, combing, printing and so on after finishing process made. It's a new kind of fabric. Knitted fabrics are generally divided into warp knitted and weft knitted fabrics. Common coral velvet is made of polyester fibers DTY150d/288f and DTY150d/144f. The filament size is fine, the bending modulus is small, so its fabric has outstanding softness.
Advantages and disadvantages of coral velvet
advantage
Coral velvet is manufactured from imported DTY microfiber. Compared with other textiles, its advantages are particularly obvious: including soft feel, delicate, no hair, easy to dye.
1, soft feel: monofilaments fine size, bending modulus is small, so its fabric has outstanding softness.
2, good coverage: due to the high density between the fibers, the specific surface area is large, so the coverage is good.
3, good use: because the fiber has a large specific surface area, so there is a high core suction effect and air permeability, comfortable wearing decontamination is good: because the fiber fabric is soft, can be closely fitted with the object to be wiped, so there is a good cleaning effect.
4, optical: Because the specific surface area of the fiber is large, the light reflection of the surface of the fiber assembly is poor, therefore, the fabric made of this fiber has a light and elegant color and is soft.
shortcoming
Easy to static electricity, due to the weaving principle there will be hair loss phenomenon, it is recommended to wash it before wearing (dry skin in winter, you can wipe moisturizer before wearing, or use electrostatic cleaning liquid when washing), because of the floating hair, it is recommended that people with allergic skin and asthma should avoid wearing the fabric.
The use of coral velvet
Coral velvet is one of the latest and best selling textile fabrics. It is characterized by soft feel, fine texture and environmental protection.
Mainly used in nightgowns, baby products, children's wear, pajamas, shoes and hats, toys, car accessories, craft products, home accessories and other fields, more and more popular in the home textile industry. A large number of coral velvet bedding has emerged on the market, gradually replacing traditional bedding. Such as coral velvet blankets, quilts, pillows, sheets, pillowcases and bedding 4-piece sets, etc., deeply trusted by consumers.
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