The Textile and
Clothing Sector:
Business Opportunities
in Finland
LIM/HAN
Translation: Anna-Stina Sandfors
The Textile and Clothing Sector: Business Opportunities in Finland
General information
Finland is an advanced industrial and open economy, placed among the most competitive in the world.
The country’s GDP per capita is € 34.900. Lately Finland has experienced a rapid structural change
towards an economy based on high technology, services and constant innovation. The structure of the
different sectors is divided as follows: services 65.7%, manufacturing 31.4% and 2.9% of primary
production.
The major trade partners are other EU-members (Finland joined the EU in 1995). The Nordic countries
– Sweden, Norway, Denmark and Finland – are considered to be an expansion to the domestic
market. These four economies are integrated in a very concrete way through different merges of
companies such as Nordea and Den Danske Bank (banking groups), Stora Enso (forestry) and
TeliaSonera (telecommunications).
Finland has a border, on the west with Sweden and Norway and on the east with Russia. Given its
geographical location Finland experiences a climate with very marked seasons. Temperatures range
from 30 degrees below zero in the winter to 30 above zero in the summer.
The weather conditions also affect the textile industry. In 2008 approximately 39% of sold textile
products were outdoor clothing. At the moment the total value of sales of clothing and home textiles is
about 3.4 billion Euros. Much of the production has been transferred abroad, but the design and
product development are still mostly being managed in Finland. The textile production in Finland is still
mostly composed of small and medium enterprises.
Finland has a population of about five million people, of whom about one million live in the metropolitan
area of the capital Helsinki. Other large cities are Turku, Tampere, Jyväskylä, Kuopio and Oulu. The
official languages are Finnish (91 %) and Swedish (5%).
Due to the demographic trend (average age is about 40 years) most of the purchasing power consists
of middle-aged people who are interested in fashion and quality. Women’s fashion is the biggest
segment of the textile sector and it is expected to continue to grow. Home textiles are also on the rise
due to the boom of decoration and interior design.
The importance of electronic commerce is also growing. According to a survey made by FINATEX
(Federation of the Finnish textile and clothing industry) 20 % of the respondents had purchased
women’s clothing online and about 15 % had purchased children’s clothing online. It has been
estimated that electronic commerce, within the textile industry, will increase to more than 1.4 million
Euros in 2016.
More information about the Finnish textile industry can be found on the webpage of FINATEX:
http://www.finatex.fi/index.php
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The Textile and Clothing Sector: Business Opportunities in Finland
Export of textile and clothing (million Euros) 1985-2010
Textiles
Clothing
Source: Finatex/National Center of Statistics
Export of textile and clothing (total 563 million Euros), 2011
EFTA
4%
Great Britain
3%
France
3%
Spain
3%
Netherlands
4%
Other EU
members
15 %
Russia
21%
Other european
countries
1%
United States.
5%
China
2%
Estonia
9%
Sweden
9%
Germany
14 %
Source: Finatex/National Center of Statistics
3
Other countries
7%
The Textile and Clothing Sector: Business Opportunities in Finland
Import of textile and clothing (million Euros), 1985-2010
clothing
textiles
Source: Finatex/National Center of Statistics
Import of textile and clothing (total 2 129 million Euros), 2011
EFTA
1%
Other European
Countries
1%
Turky
6%
China
33 %
Other EU
members
15 %
Denmark
3%
Italy
3%
Estonia
4%
Germany
9%
Other
Countries
Sweden
10 %
7%
Source: Finatex/National Center of Statistics
4
India
4%
Bangladesh
5%
The Textile and Clothing Sector: Business Opportunities in Finland
Production of textiles and clothing in the EU (million Euros), 2010
Total 153 billion Euros
Finland
Bulgaria
Greece
Czech Republic
Netherlands
Romania
Austria
Poland
Denmark
Portugal
Belgium
Great Britain
Spain
Germany
France
Italy
821
1335
2106
2231
3073
3190
3435
4 249
3 950
6 361
6 610
8 406
10 046
19 951
22 533
49 661
Source: Finatex/National Center of Statistics
Consumption of textile and clothing (million Euros) 1999-2010
Source: Finatex/National Center of Statistics
European Union
5
The Textile and Clothing Sector: Business Opportunities in Finland
The EU market is one very important trading partner of Vietnam. The agreement of the generalized
System of Preferences (GSP +) allows producers in developing countries to have access to European
markets through tariff reductions.
The EU legislation consists of regulations and directives that are not directly applicable and must be
incorporated into national legislation of the Member States. This means that export to a European
country, like Finland, is not only subject to European legislation, but also national legislation. If there is
interest in exporting to the European market, the requirements must be met both at an EU and at a
national level.
The Web service of the EU, Export Helpdesk (http://exporthelp.europa.eu/thdapp/index_en.html)
serves as a point of information for exporting to the EU. At the website you can find information on the
different requirements to be met, such as labeling, sanitary controls and standards etc. You can also
find various statistics about products and trade between the EU and the rest of the world.
Interested in Exporting? Planning:
In addition to European and national legislation a potential exporter should also consider other special
Finnish characteristics such as climate, quality standards and standardization. The more research and
planning that is done beforehand the better the results will be.
There are several organizations offering consulting services and support in finding potential business
partners in Finland. Finnpartnership provides matchmaking services between companies in Finland
and companies in developing countries. In addition to this Finpro trade centers that are located all over
the world provide companies, that are interested in exportation, contact services and support services.
To learn more please visit:
http://www.finnpartnership.fi/www/en/matchmaking/index.php and
http://www.finpro.fi/web/english-pages
Finnish characteristics regarding textile
1. Climate: Clothing is our second skin with the function to keep us warm. The very cool climate
of Finland really puts an emphasis on this and in Finland there really is a great demand for
textile and extensive winter outerwear. This feature can be a great advantage for exporters of
warm textile products. However, due to the heating in houses underwear and office still tend to
be light.
Textile products for winter must meet the requirements of the long and cold Finnish winter. For
example, scarves, gloves, hats and sweaters must be made with dense fabric to withstand the
cold and the piercing winds. The jackets and the winter coats have to keep heat in the 20
degrees below zero and coats with hoods and long sleeves are in high demand. The scarves
that are designed for the winter market have to be wider and longer than those targeted for the
summer collection. Keep in mind that the existing competition and that the price has to match
the quality and the complicity of the design.
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The Textile and Clothing Sector: Business Opportunities in Finland
2. Quality: Finns are accustomed to high technology and high quality. Therefore, export products
must meet expectations, especially if the goal is to sell higher priced products. Regarding home
textiles, Finns change their bedding frequently and are used to 100%cotton/satin/silk. They also
like the colors to be different and to match the four different seasons.
3.
Style: The product design must attract the relevant market and the manufacturers must take
into account that the Finnish style can be very different compared to the manufacturing country.
It is advisable to become familiar with the competitions in these markets. Manufacturers also
have to estimate for who their products are. For high brand stores or for cheaper chains? For
youth or for adults?
4. Size: The sizes of clothing or home textiles must correspond with Finnish sizes. Clothing sizes,
for example, are slightly larger in size compared to Asia. Manufacturers should be aware that
(especially with hats, gloves and belts) there is demand for larger sizes. Below you can find
some size charts compiled from different sources. However they are only estimates and may
vary from manufacturer to manufacturer.
Sizes
Finland, The Nordic
34
Countries, Germany
36
38
40
42
44
46
48
France, Spain
36
38
40
42
44
46
48
50
Italy
38/40
40/42
42/44
44/46
46/48
48/50
50/52
52/54
UK
8
10
12
14
16
18
20
22
USA
6/8
8/10
10/12
12/14
14/16
16/18
18720
20/22
Women:
Size
34
36
38
40
42
44
46
48
50
52
54
Chest
80
84
88
92
96
100
104
110
116
122
128
Waist
64
68
72
76
80
84
88
94
100
106
112
Hip
88
92
96
100
108
112
118
124
130
136
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The Textile and Clothing Sector: Business Opportunities in Finland
Men:
48
46
Size
50
52
54
56
58
60
neck: 37-38
neck: 39neck: 41-42
40
neck:43-44
Chest
92-96
96-100
100-104
104-108
108
112-116
116-120
120
Waist
78-83
83-88
88-93
93-98
98
103-108
108-113
113
Hip
96
100
104
108
112
116
120
124
Crotch
81
82
83
84
85
86
87
88
neck: 45-46 neck: 47-48
Children:
Age
2-4
4-6
6-9
9-12
1-1,5
months months months months years
1,5-2
years
3-4
years
4-5
years
6-7
years
8-9
years
10-11
years
11-12
years
13-14
years
14-15
years
Height CM 62
68
74
80
86
90
100
110
120
130
140
150
160
170
Chest
46
47,5
49
50,5
52
54
57
60
64
67/68
70/72
76/78
81/83
85/87
Waist
48
49
50
51
52
53
55
56
58
59,5/61 62/64
66/68
69/71
72/74
Hip
53
54
55
56
57
58
61
64
68
72/71
76/75
82/81
87/86
91/90
Crotch
21
24
27
30
33,5
35
41,5
47,5
54,5
60
65
71,5
76
80,5
shoes and socks:
Socks
17-18
19-21
22-24
25-27
28-30
31-33
8,5
8,5-9
9,5-10
10-11
11,5-12
Shoes
17-18
19-21
22-24
25-27
28-30
31-33
34-36
36-37
38-39
39-42
43-45
Size
XXS
XS
S
M
L
XL
XXL
outline
CM
15,2
17,8
20,3
22,9
25,4
27,9
30,5
Gloves:
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The Textile and Clothing Sector: Business Opportunities in Finland
To enter the Finnish market
The three largest retailers in the Finnish market for clothing and home textiles are S-Group
(Department stores Sokos and Prisma hypermarkets), Kesko (Anttila department stores and
hypermarkets and Kodin Ykkönen K-Citymarket) and Stockmann department stores. In addition to
these the clothing market is dominated by Swedish chains H&M, Lindex and KappAhl and Finnish
Halonen, Seppälä and Moda. Within home textiles the biggest names are Marimekko and Finlayson.
All the major chains have strict store concepts and produce their own brands alongside the purchased
collections.
Hundreds of small shops in Finland provide an opportunity for small suppliers as their order quantities
are not so big. The smaller stores probably only buy a few elements from a collection. For this reason,
every product group should have several interesting alternatives to choose from, for example a
collection of accessories with 20 pieces.
Importing Agents and Companies
Providers in developing countries can trade with their customers directly or through specialized agents
or importing companies. Direct sales require regular visits which can be challenging if the distance
between the two countries. There also a lot of work to be done in terms of finding a reseller and agree
upon a method of cooperation. It is possible that a store only buys a few items, which will make the
moving costs rise, so one would always have to evaluate the cost-benefit relationship.
When working through an agent the manufacturer pays a specialized professional who resells finished
products. Usually an agent requires at least 15 % of commission. Visit the website www.agenttiliitto.fi
members of the Finnish Federation of Agents (classified by product). There can also be some
challenges when working through an agent, for example compilation of bills can be difficult and
expensive.
In some cases a importing company can be the best and safest option. These companies would first
select and buy a few articles for their stock and then sell them to their customers. The commission
would be around 15% and the billing would be between the supplier and the importer. More information
about international payment and its risks can be found at
www.foreigntrade.com/reference/payment.cfm
If you are interested in exhibiting products at tradeshows you should consider showing your collection
at Finnish Catwalk which is for clothes (more information on www.finnishcatwalk.fi) or Habitare which is
for home products (more information on www.habitare.fi). Usually agents and importing companies are
involved in these fairs and travel Finland showing products to smaller stores.
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The Textile and Clothing Sector: Business Opportunities in Finland
Legislation of the textile sector
The legislation allows all European consumers to receive safe products and adequate information. The
product safety should always be checked before it enters the European market. This responsibility of
importers is established in the legislation. The aim is to protect the consumers and therefore the
providers must document their compliance with legal requirements. Lack of carefulness in risk
avoidance may result in withdrawal from the market. Buyers also have the right to demand financial
compensation if it can be shown that a defective product has caused damage.
The EU has established a European surveillance network, RAPEX, to monitor the safety of commercial
products. It is a system based on rapid exchange of information on products considered dangerous
(except food, pharmaceuticals and medical devices).
Exporters of textiles products to a EU member state should consider policies and chemical labeling.
Products that are made out of at least 80 % of fibers (by weight) are considered textile products. Items
that do not meet the requirements cannot be sold in the EU.
More detailed information:
www.ec.europa.eu/enterprise/textile
1) Labeling: Mandatory labeling of the Finnish textile sector includes fiber content, care
instructions and manufacturers names. Besides country of origin, name and quantity of product,
size and operating instruction requirements are voluntary. However, for example size is very
useful and important information and should be added.
Fiber content must be indicated by official names and the use of abbreviations is not allowed.
Trade names can be used only as a supplement. The fiber content has to be indicated in
Finnish and Swedish. You can find the official fiber names in Finnish, Swedish and English on
www.finatex.fi/index.php?mid=7&pid=67
Care instructions must be expressed in words (Finnish and Swedish) or symbols. Symbols
(except carpet symbols are licensed and authorized by SFS-Inspecta Oy Sertifiointi. The
instructions should clearly indicate whether any part should be removed before the treatment
process or if the product is colorfast.
The name of the manufacturer is mandatory and the name of the brand of the garment is not
always sufficient to compensate this information.
2) Chemicals: The REACH directive regulates registration, evaluation, authorization and
restriction of Chemicals in order to protect human health and the environment. If production
involves the use of chemicals it is necessary to study the EU regulation on chemicals and their
safe use. http://ec.europa.eu/environment/chemicals/reach/reach_intro.htm
In addition to this, Finland has a national legislation concerning textile products containing
formaldehyde. You can find more information on www.cbi.eu
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The Textile and Clothing Sector: Business Opportunities in Finland
This document discusses the requirements of Finland. Please keep in mind that other countries may
have different requirements.
Doing Business with Finns
Protocol and business customs: Request and schedule appointments in good time. Always arrive early
for your appointments; being punctual is a sign of respect and efficiency. Present your argument with
details since Finns usually do not ask much. To use e-mail as a means of communication is very
common.
Finnish society is built on a high level of integrity and ethics, which also reflects the corporate culture.
The rate of corruption is very low and Finnish companies have a great interest in protecting their
reputation. The Finns respect the transparency of production and usually want to know all the details of
the procedure.
Finnish partners are very specific to time and they value rules, quality, efficient negotiations, explicit
conditions and compliance with the agreements. Delays in delivery or non-compliance with legislation
may soon lead to the termination of cooperation. However, when Finnish companies find trusted
partners with good prices, quality and ethics, the business relationship is usually long lasting.
The Finns do not appreciate packages or documents that are done in an unprofessional manner.
Products, invoices and packing lists should be marked with the same codes. All documents required by
Finnish partners must be attached to invoices and shipments. Also the EU requirements for labeling
and
packaging
should
be
met.
More
information
on
packaging
requirements:
http://europa.eu/legislation_summaries
Fair Trade Certificates
Finnish buyers are increasingly paying attention to the ethical conditions for the production of a
product. For example in 2010 products with a Fair Trade certificate were sold for an estimated 93
million Euros worth, of which 7.2 million Euros came from cotton goods. Fair-trade makes up about 1
% of the market but sales of products of different ethical certification continues to grow year after year.
It is advisable to consider the possibility of joining a fair-trade network when planning to enter the
Finnish market. A certified product label always takes precedence over a non-certified product.
11
The Textile and Clothing Sector: Business Opportunities in Finland
Retail value of fair-trade products in Finland 2003-2010
93
86,9
Million Euros
54,4
34,7
22,5
13,1
2010
2009
2008
2007
2006
2005
7,7
7,5
2004
2003
The Fair Trade certification, Called Reilu Kauppa in Finnish, is the best known in Finland. Fair trade
incorporates environmental and social requirements for the products.
Other ethical certifications in the Finnish market:

Joutsenmerkki: http://www.ymparistomerkki.fi/english

EU Eco label: http://ec.europa.eu/environment/ecolabel/

GOTS: http://www.global-standard.org/

Oeke-Tex: http://www.oeko-tex.com/OekoTex100_PUBLIC/index_portal.asp?cls=05
More information
The Ministry of Foreign Affairs promotes import to Finland in accordance with the Development Policy
Programme of the Finnish Administration and Trade Policy Program. This is done by taking appropriate
measures to eliminate trade barriers and provide information services. The trading capacity of
developing countries can be strengthened through the allocation of resources for development
cooperation. The Ministry welcomes information about trade barriers observed by importers and
exporters.
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The Textile and Clothing Sector: Business Opportunities in Finland
Useful websites
Foreign Ministry:
www.formin.finland.fi/tradepolicy
Finnpartenership:
www.finnpartnership.fi
Finpro:
www.finpro.fi
Confederation of Finnish Industries:
www.wk.fi/en
Finnish Federation of Trade
www.suomenkauppa.fi/en
FINATEX (Federation of Finnish Textile and Clothing industries)
www.finatex.fi/
Finnish Customs
www.tulli.fi
Export Helpdesk
http://exporthelp.europa.eu
CBI
–
Centre
for
the
http://www.cbi.eu/marketinfo
promotion
of
Euromonitor
http://www.euromonitor.com
FairTrade:
http://www.fairtrade.net/361.0.html?&L=1
13
Imports
from
developing
Countries