overview of textile business of germany country....

1. Start a Textile Industry in
Germany
Prepared By:
Bhavin Agrawal(02) Ishani Dave(14)
Nikita Balar(04) Nitin Madhvi(28)
Malvi Bhatt(08) Kushal Mehta(31)

2. History of textile industry evolution in
Germany
• After the end of the Second World War, the German textile
and clothing industry experienced a boom.
– The reason was a high demand for textile products and clothes,
which could not be covered with imports due to financial
reasons.
• Since the mid-1960s the German textile and clothing industry
has a downside trend concerning the number of companies
and the number of workers.
– The market and competition-conditions changed deeply in the
textile industry as well as in the clothing sector. As a result of
this the degree of automation was raised

3. Geographic Location
Germany is made up of 16 different
“states”
Baden-Württemberg, Bavaria,
Berlin, Brandenburg, Bremen,
Hamburg, Hesse, Mecklenburg-
Vorpommern, Lower Saxony,
North Rhine-Westphalia,
Rhineland-Palatinate, Saarland,
Saxony, Saxony-Anhalt, Schleswig-
Holstein, Thuringia

4. Geography of Germany
• Germany has about 82 million inhabitants. It is by
far the largest country in the EU in terms of
population.
• Germany is a modern, cosmopolitan country.
• Germany has the 4th largest economy in the
world.
• It is the 2nd largest exporter and 3rd largest
importer.
• Germans have established a very high standard of
living and social security.

5. Demographic details of Germany
Particular Details
Population 80,996,685
Age structure 0-14 years: 13%
(male 5,386,525/female 5,107,336)
15-24 years: 10.6%
(male 4,367,713/female 4,188,566)
25-54 years: 41.7%
(male 17,116,346/female 16,664,995)
55-64 years: 13.6%
(male 5,463,221/female 5,574,166)
65 years and over: 21.1%
(male 7,468,552/female 9,659,265)
Urban population 73.9% of total population
Sex ratio total population: 0.97 male(s)/female
Nationality German(s)
Ethnic groups German 91.5%, Turkish 2.4%, other 6.1%
Religions Protestant 34%, Roman Catholic 34%, Muslim 3.7%,
unaffiliated or other 28.3%

6. Particular Details
Major cities - population BERLIN (capital) 3.462 million; Hamburg 1.796 million;
Munich 1.364 million; Cologne 1.006 million
Languages German (official)
http://www.indexmundi.com/germany/demographics_profile.html

7. Geographical Condition
• Initially, the industry was set up depending upon
imported cotton and most of the industries were
developed along Rhine river valley. But Ruhr
industrial region soon became a leading textile
centre.

8. Geographical Condition (Conti..)
• North-Western: Consisting of Rhine region towns like Barmen and
Elberfield, and Ems-Vechta towns like Pheine and Gronau.
• Central: Consisting of towns along the three mountain ranges which
separate Bohemia from Germany, Reichenbach, Chemnitz, Leipzig
and Dresden
• South-Western: Consisting of towns like Augsburgh, Stuttgart and
Mulhouse.
– The north-western region had the advantage of local market in
the industrial populations which also provided it with cheap
labour. The other centres had the advantage of water power,
pure water and the cheap labour of the mountain populations.

9. Major Industries
• One of the world's largest and most technologically advanced
producers of:
– Iron, steel, coal, cement, chemicals, machinery, vehicles,
machine tools, electronics, food and beverages, shipbuilding,
textiles
• Major Textile companies:
– Amann & Söhne
– J. P. Bemberg
– Biederlack
– Bremer Woll-Kämmerei
– Butonia
– Gustav Gerster
– Steilmann

10. German Consumer
• The typical German consumer rejects the idea
“discounts” shops and places value on quality
• Emphasis on safety, quality, comfort and reliability

11. Religion
• Religious freedom
• Protestant (33%), Roman Catholic (33%), Muslim
(4%), 108,000 members of Jewish communities, and
others

12. Norms & Policies
• STANDARDIZATION - The Textiles and Textile Machinery
Standards Committee (Textilnorm) is in charge of
establishing DIN standards for textiles, clothing as well
as textile machinery.
– The different DIN standards define the requirements,
dimensions, technical terminology as well as testing standards
for special areas in the textile industry. Foreign companies must
ensure that their textile products conform to all relevant
standards in Germany.

13. Norms & Policies (Conti..)
• LABELING - The German Textile Labeling Law lays the
foundation for the labeling of textiles on the market. All
textiles manufactured, imported and sold in Germany
must bear a label indicating their raw materials
composition.
– Even though care labeling symbols are not mandatory in
Germany, the National Association for Textile Care Labeling,
GINETEX, has defined an internationally recognized care labeling
system for textiles based on trademark symbols.

14. Norms & Policies (Conti..)
• According to the REACh (Registration, Evaluation,
Authorization and Restriction of chemical products)
Regulation of the European Union (1907/2006/EC),
manufacturers and importers of textiles containing potentially
dangerous chemicals must register these substances to the
European Chemicals Agency (ECHA) and ensure the
appropriate communication along the supply chain.
– The main goal of REACH is to control the safety of chemicals in
consumer products, including textiles.

15. Norms & Policies (Conti..)
• CERTIFICATION - The most widely used and recognized
certificate of quality for textiles in Germany and the EU is
the Oeko-Tex Standard 100. This voluntary certificate
provides the textile and clothing industry a uniform
standard for consumers who specifically aim to buy
textiles that are free of harmful substances. All raw
materials, intermediate and end products at all stages of
production are tested and certified for compliance with
the standard.

16. SWOT Analysis
Strengths
• Increasing consumer
consumption
• Efficient and educated work
force
• Largest European economy
Weaknesses
• High tax rates
• Slow negotiations
• Demanding employees
Opportunities
• Location
• Tax incentives
• Introduction into European
market
Threats
• Mature market
• Competition

17. PEST
Analysis:-

18. Political Factor
• Germany is a democratic republic.
• The political system functions under a system called
Grundgesetz which was published in the 1949 constitutional
document.
• The Social Democratic Party and the Christian Democratic
Union leads the political system
• The legislature, the judiciary, and the executive are the 3
wings which make up Government of Germany.

19. Economic Factor
• Germany has comparatively low raw
materials.
• It only has potash and lignite in a significant
amount.
• The service sector contributes 70% of the GDP.
Industry contributes 29.1% while agriculture
backs 0.9%
• Automobiles, metals, machinery and chemical
goods are some items they are proud of.

20. Social Factor
• The society is made up of variety of lifestyles
as it is multicultural country.
• Despite the social changes, the family remains
the most important social reference unit for
germans.
• Young people have very close bonds with their
parents

21. Technological Factors
• Germany is a very advanced country
• It is spending a lot of money on research and
development.
• There are national laboratories and also
private research companies.
• The Ministry of Science and Technology is an
organization which coordinates and decided
priorities for the national science and
technology programs in Germany.

22. Situation of the textile and clothing
industry in Germany
• In Germany more than 130 511 employees work in the textile
and clothing sector.
• The production of textiles is dominated by Western-European
countries in which Germany is at the 6th position.
• Germany is divided in West- and East-Germany
– Labour costs in the West-German textile and clothing
industry are twice as much as in East-Germany

23. • In textile sector top-selling corporate groups in
Germany are Adidas and Esprit.
• Factors behind success of textile sector in Germany are
– High quality standards, which are the trademark of the
German textile and clothing industry.
– Innovative ability of German businesses
• The demands towards the textile and clothing industry
is very dynamic
– Competition from Asia and Eastern-European-Countries
like Slovenia and Hungary.

24. Viewpoints about our Textile Business
• Competitiveness of the textile and clothing industry
can only be obtained through a stronger market
orientation in Germany
• Therefore celerity, creativity and flexibility are the
factors of success for the German textile and clothing
industry.
• Our main focus will be on providing high quality
standards at initial stage because germans are more
concern about it.
• Due to high competition our businesses will pursue a
competitive strategy of a high number of product
varieties, which in some parts are customised

25. Viewpoints about our Textile Business
• Right now, textile innovations are often created with a
reference to new technologies.
– For which Germany is very famous
– Nanotechnology or also the communication technology
• For eg. Suits with integrated MP3-Players
• New innovative developments are also made
concerning the functionality of clothes.
– For eg. Development of a special silicone-matrix having a
combination of the active substances vitamin E, aloe vera
and jojoba-oil embedded.
• Besides the manual skills of the employees in the
textile and clothing sector, widespread and
comprehensive knowledge is another factor of success
which becomes more and more relevant.

26. • At Initial stage we will use production according to
customer orders approach.
– reduction of product and production risks
– reduction of warehouse stocks and storage space
– reduction of preliminary financing and financial services
– New market opportunities are created through the individual
fabrication
• Furthermore the use of this method in the production
eases a differentiation towards trade rivals.
• In combination with a higher customer orientation this can
lead to competitive advantages and a stronger customer
loyalty
• We will not focus on the technical possibilities of industrial
made-to-measure clothing only we will also focus on
emotional components and overvalues for the customers.

27. Thank You !!