Danish market in the fashion industry
An article on Fashion United, written by Vivian Hendrikssz, on Tuesday, 02 February, year 2016 (Hendriksz, 2016), stated that the Danish fashion industry, is mainly driven by exports to countries like Germany and The UK, is now bigger than it ever was before, producing profitability from exports of clothing and textiles of approximately 4.26 billion pounds, this is equivalent to approximately 42 billion Danish kroner in 2015, that is an increase of revenue of approximately 4 percent in 2014 and export increased with approximately 6 percent. Meaning that the fashion and textile industry is one of the largest export businesses in Denmark, which was according to Dansk Fashion and Textile (Hendriksz, 2016). The head of the international Affairs for Dansk Fashion and Textile stated and quote; “The UK market has really opened its eyes to Danish fashion” end quote (Hendriksz, 2016). Furthermore the literature “Fashion in the Danish experiences economy: Challenges for growth, pages 40 to 41” (Tran, Yen, 2008), stated that the entry and exit rate of startup fashion companies is very high, on the other hand it also stated that approximately 80% of startup fashion companies, doesn’t survive the first five years in the industry, even thou there were approximately, 750 VAT registered fashion companies in Denmark, in 2006 (Tran, Yen, 2008). If this is true, this could open up opportunities for MarLiq Fashion when entering the Danish market, when thinking of joining the export business, within the B2B sector.
Fashion statistics in Denmark
The following information’s are facts according to Fashion United, which is backed up by the Danish Fashion and Textile organization, is for the readers of this thesis, to see the consumer expenditure of Denmark in 2014. The statistic shows that the Danish consumer expenditure rate is 3% out of 100 percent of goods that is being purchased in Denmark. According to experts from a press release by Danish Fashion and Textile, they expect the expenditure rate within clothing and textile is to rise within the near future (DanskMode&Textile, 2010). (View appendix)
Figure 5: Statistics of the Danish consumer expenditure 2014.
Looking at these finding about the Danish market and the consumer expenditure rate of Denmark, is there a possibility for MarLiq Fashion to enter the Danish market? Briefly looking into the”The Gross Domestic Product (GDP) is a monetary measure of the market value of all final goods and services produced in a period (quarterly or yearly or time). Nominal GDP estimates are commonly used to determine the economic performance of a whole country or region, and to make an international comparison” (Kimberly Amadeo, 2017).
According to the website of the Organization for Economic Co-operation and Development (OECD), the social spending rate in Denmark is approximately 28.7%, based on the GDP ratings (view appendix). This is higher than countries, such as Sweden at 27.1%, Norway at 25.1%, but Finland is rated at approximately 30.8%, higher than the ratings of Denmark, at the social spending rate. These statistics shows how much society is spending yearly on products (OECD). (View Appendix)
“The total fertility rate in a specific year is defined as the total number of children that would be born to each woman if she were to live to the end of her child-bearing years and give birth to children in alignment with the prevailing age-specific fertility rates” (OECD). On the other hand the fertility rate according to the OECD, indicates the measurements of birth per women. Three of Scandinavian countries (Denmark, Norway and Finland) has been rated the same percentage by 1.7% of women giving birth yearly, where as Sweden is rated with the total of 1.9%, this is 2% higher than the three other countries. The reason for these numbers is so that MarLiq Fashion can get a full view of their customers statistically. Showing how high the spending rate and the fertility rate within the Scandinavia countries are. (View Appendix) This information’s is important, due to the reason of knowing the extent of MarLiq Fashions customers needs based on their spending and fertility rate.
The author must now figure out how to develop a marketing strategy that would give MarLiq Fashion the chance to explore these opportunities.