According to Dave Quadvlieg, manager of CBW-Mitex, the Dutch Retailers Association, in 2011 the overall volume of children’s fashion industry’s turnover in the Netherlands was 5.6% lower than in 2010, the fourth consecutive year that the industry experiences a decline.
Specifically, the annual decrease has varied from 3.7% in 2008 and 1.4% in 2010, but the situation has worsened in the first two quarters of 2011, with negative rates that have reached high downs of 8,7%.
The rise in manufacturing prices has a direct impact on product margins, which lowers the profits of retailers. This, coupled with the decline in sales resulting from the increasing presence of online trading and, above all, the introduction of children’s lines in major fashion chains, has made the retailers go through a delicate situation.
According to Jan Mermen, president of CBW-Mitex, “for the retailer, the combination and integration of different brands and types of products, working with different suppliers to add value to the customer, is every time more important.”