The State of German Fashion (and what it can teach manufacturers)

WHEN compiling a list of rope's fashion states, it's unlikely that Germany would make the top of any one's list

WHEN compiling a list of rope's fashion states, it's unlikely that Germany would make the top of any one's list. Never synonymous with style, the country nonetheless has an enormous clothing industry.

A few years ago, for example, its exports to Britain (totalling in the region of £243 million sterling) were more than double those of France - and some £26 million more than its next nearest rival, Ireland. At the same time, however, Germany offers proof that size isn't everything. German labels may enjoy wide distribution but many of them lack prestige. Of the country's many designers, only Jil Sander has achieved international recognition as an outstanding and original creative force.

Looking at the German industry, it's soon clear that the principal concerns arc commercial expertise and quality of production. And frankly, for the great majority of consumers these are the top priorities too. After all, the number of women who can afford to wear the likes of Jil Sander is always going to be relatively small whereas labels such as Steilmann, Mondi and Escada have enormous popularity worldwide. Many of these names will be familiar to the Irish consumer. Escada, the biggest German clothing company (with a turnover of 1,130.4 billion deutschmarks) also covers among its many labels Cerruti 1881 and Laurel. Then there is the Steilmann group (including KS Selection and Cruse), the Betty Barclay group (also Vera Mont and Gil Bret), the Gerry Weber group (Etienne Aigner), Joop! and Hucke. As this list indicates, German clothes can be found on sale in almost every town in Ireland. And regular purchasers of these labels know they can be confident the clothes will be well finished and long lasting, fashionable without being too high fashion and offering good value for money.

That's why the world's biggest fashion fair is held in Dusseldorf and why a week ago, some 55,000 buyers from 30 different countries were wandering around the event's 165,000 square metres. Collections Premieres Dusseldorf (CPD) has been running since 1949, organised for the past 36 years by Manfred Kronen, whose father first started the fair. Like many others involved in the German clothing industry, he is willing to speak frankly about the difficulties currently being faced by the business, many of them remarkably similar to those experienced by Irish manufacturers.

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Obviously, Germany's relatively low fashion profile outside its domestic market remains a major concern. There is a problem of image for German fashion," admits Manfred Kronen, "because it doesn't have the names and designers of other countries." Countries such as France and Italy which do have an abundance of internationally renowned designers have an advantage over their rivals when it comes to exporting clothes. Some of the prestige of the most famous names transfers to other labels from the same place of origin. Obviously that's not the case with Genany simply because the number of its fashion houses with a global reputation is much smaller.

In addition, right now throughout Europe there's a decline in the sales of clothing with markets largely stagnant and the business now over saturated; this has hit Germany as much as any other producer. German apparel exports declined by 8.9 per cent in the first month of this year, according to government statistics and overall this sector has dropped by 9 per cent in the past five years. Like the Irish, German clothing manufacturers had become overly dependent on a handful of markets and now must look for fresh opportunities, most notably south east Asia, the fastest growing economy in the world right now. Again, as with Ireland, export problems have been exacerbated by a strong currency resulting in an unpalatable increase in prices. While German clothes have traditionally represented good value for money, of late in some countries they've started to look too expensive.

The search is on for new markets not just in Asia but also closer to home and the answer is to look to the next generation. Failure to attract a younger clientele can be fatal in the fashion business. As Manfred Kronen comments: "I tell some designers they'd better have their display in the main cemetery because that's where all their clients are now.

Escada is typical in its reaction to changing circumstances. The company has kept the established main line because any major alteration to this would probably alienate a strong and well maintained customer base. But in addition, three years ago Escada started its relaxed and casual Sports Collection and now the company has introduced Elements, a line specifically aimed at younger customers who want clothes of greater Simplicity and ease. Similarly, Laurel has both its main line and a more understated Jeans collection (in which denim plays a rather small part).

Sometimes, however, it has been necessary to cut back lines rather than expand. Mondi, for example, has undertaken a radical restructuring of the business over the past couple of years, closing down five of its six divisions and focusing on a core market.

"The recession here has meant it was important to eliminate certain lines," says that the company's managing director, Fidelius Von Rehbinder. "Mondi's also typical in setting up a reorganisation of the design team here." In justification for this overhaul, he quotes his own favourite motto: "Let the customer come back and not the merchandise."

MONDI is following another widespread development by introducing more than just two collections per annum. One way to hold the market is by dividing it into smaller sections across the year. "Every three months, there'll be new fashion," proposes Manfred Kronen. "To be fast and to be new; that's the survival kit." He believes that customers do not want to look at the same merchandise for long periods of time. Whenever they return to a shop, there needs to be some fresh items on display. Those items don't have to be radically different to what they replace "buyers and consumers don't want revolution, they want evolution," according to Mr Kronen - but they mustn't look stale. Constant turnover is the only way a retailer can hold onto clientele. Accordingly, Manfred Kronen thinks that in the near future, the year may be divided into as many as eight seasons.

All of which is liable to lead to increased costs for manufacturers, so more and more German companies are looking east for production. Mondi has moved many of its plants to Poland and Slovakia where labour costs are much lower than at home and Steilmann has also transferred some production to eastern Europe.

But it's not all bad news for Germany's clothing industry. Ireland, say some companies, remains a particularly buoyant area for export. Klaus Steilmann, for example, classifies business with this country as very important "with a 4-5 per cent increase at least every year". That's another detail worth noting by businesses here at home.