DOC

China, VR

By Sally Elliott,2014-11-21 23:19
9 views 0
The Gifts and Decoration Market in Austria HS-Codes: 34, 39, 44, 46, 67, 69, 80, 83 A report prepared by the Office of Commercial Affairs Royal Thai Embassy Vienna August 2009 The Gifts and Decoration Market in Austria 2 | P a g e ..

    The Gifts and Decoration

    Market in Austria

    HS-Codes: 34, 39, 44, 46, 67, 69, 80, 83

    A report prepared by the

    Office of Commercial Affairs

    Royal Thai Embassy Vienna

    August 2009

    C O N T E N T

    1 Market Overview Page 3 1.1 Consumption Page 3 1.2 Production Page 3 1.3 Opportunities and Threats Page 4 1.4 Useful Sources Page 4

    2 Trade Channels Page 4

    3 Imports Page 7 3.1 Statistics Page 7 3.2 Opportunities Page 8 3.3 Useful Sources Page 8

    4 Market Access Requirements Page 9 4.1 Packaging, Marking and Labelling Page 9 4.2 Tariffs Page 10

    5 Doing Business Page 10

     Appendices Page 11 A1 Product Groups Page 11 A2 HS Codes Page 13

     The Gifts and Decoration Market in Austria 2 | Page

1 Market

1.1 Consumption

    The total consumption of gifts and decorative articles in 2005 (no later data available) in Austria

    1amounted to 294 Mio USD (207 Mio EUR). Austria accounted for 2% of the EU-27 gifts and

    decorative articles consumption. Compared to the other researched markets, Austria was one of the small markets in Europe in 2005. Consumption increased by 1.8% during the period 2001-2005, or 0.9% on average annually.

    Plasticware was the largest product group sold in 2005, accounting for 26% of total consumption. The second largest product group was Candles, which amounted to 25.8% of total consumption, followed by Ceramics (17.2%), Woodware (9%), Metalware (8.8%), Paperware (4.8%), Art. Flowers and Fruits (4.6%), Wickerwork (3.7%), and Glassware (N.A.).

    Austria has one of the largest GDPs per capita for 2007 and 2008 in Europe, which enables Austrians to spend more of their disposable income on gifts and decorative articles.

According to Euromonitor, consumption is expected to increase slightly in the period 2006 2009,

    especially in the segments concerning small home furnishings and decorations. However, sales of expensive china and porcelain are expected to continue to decrease in absolute value.

    The trend of declining of loyalty among consumers in favour of the attractive price and reasonable quality of many discounted private label gifts and decorative articles continued in both 2006 and 2007. For example, Ikea private label decorative articles represented one of the leading brands in value terms.

    Demand for decorative articles will primarily stem from a continuous cycle of new generations of single householders and replacement needs, as well as more enthusiastic hobby hosts searching for premium or specialised products.

1.2 Production

    Total Austrian production of gifts and decorative articles amounted 111 Mio USD (78 Mio EUR) in 2006. Production in Austria increased by 25.8% during the period 2002 2006.

• Plasticware was Austria’s most produced product in 2006, accounting for 76.6% of total production.

    Followed by Ceramics (14.8%), Woodware (7.3%), and Candles (1.3%). Production figures for Art. Flowers and Fruits, Wickerwork, Paperware, Metalware, and Glassware are not available for Austria.

    According to Euromonitor, production of gifts and decorative articles in Austria has an uncertain future due to high manufacturing costs in the country and the general trend towards outsourcing for the lower segments of the market.

     1 Exchange rate: 1 EUR = 1.4187 USD, 1 USD = 0.7048 EUR, Source: Website of the Bank of Thailand accessed 13.08.2009

     The Gifts and Decoration Market in Austria 3 | Page

1.3 Opportunities and threats

    + Exporters from Thailand will be faced with increased demands for higher quality, environmentally and socially friendly products.

    + Many Austrian producers will continue to outsource their manufacturing to developing countries (DCs) in order to reduce their costs.

    - As less expensive Chinese imports continue to make inroads into the Austrian market, the industry will have a difficult time growing in value.

1.4 Useful sources

Euromonitor Research agency (http://www.euromonitor.com)

    Datamonitor Research agency (http://www.datamonitor.com)

    Market Research Research agency (http://www.marketresearch.com)

    Austrian Trade (http://www.austriantrade.org/austriantrade/austriantrade/en/)

    Austrian Business Agency: (http://www.aba.gv.at)

2 Trade channels for market entry

    Wholesalers, importing manufacturers, grocery multiples and non-specialised chains, like hypermarkets, discounters and do-it-your-self chains are potential trade channels for exporters in Thailand.

    Price competition in the retail sector is extremely aggressive and the retailer concentration in many retail sub-sectors is increasing. The latter trend is escalating as the giant retailer groups attempt to expand and win market share through the acquisition of small and medium-sized retailers. Gifts and decorative articles are retailed through a wide variety of different retailers. The variety stores and department stores as well as the hypermarkets are generally considered to be the leading retailers.

    As the number of actors in the export chain can differ and the quality and contents of each actor also, it is impossible to give a standard overview of costs and margins for the different phases in the process. However, there is a rule of thumb in the market for interior articles and gifts that an article with an FOB price of 1 USD will sell for around 4 to 5 USD in the shop in Europe. In the more expensive countries like the UK, Ireland and the Scandinavian countries a markup of 6 to 6.5 (instead of 5) is more common, going up to 8 for the high end of the market. The mark-up in the new east European countries will be closer to 3.5 4, although this will rise with the growing prosperity in these countries.

     The Gifts and Decoration Market in Austria 4 | Page

    Figure 2: Trade and distribution channels for gifts and decorative articles

    A good source for information about (potential) trading partners is Dun & Bradstreet (http://www.dnb.com/). This company specialises in sourcing reliable, consistent and objective credit information about potential trading partners. Also on the following sources of information on trade partners can be found: the foreigntrade Chamber of Commerce of the country of destination, the Economic Affairs department of the official representative (Embassy or Consulate) of the country of destination, Import promotion organizations, Trade associations and Trade fair organisers.

Tab. 2: Overview of margins in Austria

    Cost Structure Price in USD

    FOB price 1.00

    Plus mark-up importer/wholesaler 60-120%

    Imported in Europe (wholesale value) 2.00

    Plus mark-up retailer 100%

    In Shop (retail value) 4.00

    Plus VAT 20%

    Consumer Price 4.80

     The Gifts and Decoration Market in Austria 5 | Page

Major importers of gifts and decorative articles in Austria are:

    Present Handels GesmbH, Paul, garden decoration (http://www.paulpresent.com/)

     Contact Paul Present Handelsgesellschaft mbH

    Robert-Schumann-Gasse 61

    2380 Perchtoldsdorf

    Tel. +43(0) 1 8698173

Bremel Handelshaus GesmbH & Co.KG, a leading importer of non-perishable consumer

     goods from the Far East (http://www.bremel.at)

     Contact Bremel Handelshaus GmbH

    Petzoldstrasse 35a

    4020 Linz

    Tel. +43 (0) 732-770419

    http://www.decor-center.at) • Dekor-Center Austria Handels GesmbH, home decoration, paper gifts (

     Contact Decor-Center Austria HandelsGmbH

    Vogelweiderstrasse 33

    4600 Wels

    Austria

    Tel. +43 (0)7242 47523-0

Major retail chains in Austria are:

    Gerngross Kaufhaus Aktiengesellschaft, department store for all types of goods, including

     gifts (http://www.kaufhaus-steffl.at)

    Contact Gerngross Kaufhaus AG

    Kärntner Straße 19

    1010 Vienna

    Austria

    Tel. +43 (0)1 503 98 82-0

F.W. Woolworth Co. GmbH., home decoration (http://www.woolworth.at)

    Contact F.W. Woolworth Co. GmbH

    Industriezeile 47

    4020 Linz

    Austria

    Tel. +43 (0) 732 - 78 12 60 - 0

    Other websites:

    Furniture, decor and art by European designers (http://woka.com)

     The Gifts and Decoration Market in Austria 6 | Page

3 Imports

3.1 Statistics

    Thai customs department

    Full Year in Mio USD Jan-Jun Year to Date in Mio USD

    Share Share HS Description Change Change 2006 2007 2008 2008 2007 2008 2009 2009 08/07 09/08 [%] [%]

    Gifts and Decoration 0.41 0.56 0.75 100.0 33.5 0.21 0.39 0.17 100.0 -55.5

     830629 Statuettes and other

    ornaments 0.14 0.22 0.38 51.2 71.4 0.01 0.32 0.03 15.2 -91.8

     340600 Candles, Tapers

    And The Like 0.11 0.16 0.13 17.2 -18.3 0.05 0.01 0.04 25.6 660.3

     701391 Other Glassware,

    2Lead Crystal, Nesoi 0.01 0.02 0.09 11.9 314.4 0.01 0.00 0.01 3.7 0.0

     701399 Other Glassware,

    Not Lead Crystal,

    Nesoi 0.00 0.00 0.01 1.4 301.0 0.00 0.01 0.08 48.6 693.2

     482050 Albums For

    Samples/Collections

    Of

    Paper/Paperboard 0.05 0.00 0.01 1.3 0.0 0.00 0.01 0.01 3.7 -33.7

    Tab. 3.1.1 Austrian imports of gifts and decoration products from Thailand

    Source: Thai Customs Department

According to the Thai Customs Department in 2008, total Thai imports of gifts and decoration products

    into Austria amounted to 0.75 Mio USD in value. This figure shows an increase of 34% compared to the

    year 2007.

In the period from January to June 2009 Austrian imports decreased by 55.5% compared to the same

    period in 2008.

In relative size, Thai exports of gifts and decoration products in 2008 consisted of 3 major groups

    statuettes and other ornaments (51%), candles, tapers and the like (17%) and other glassware made of lead

    crystal (12%).

     Statuettes and other ornaments of plastic increased 2008 by 71% and decreased in the period from

    Jan Jun 2009 by 92%.

     Candles, tapers and the like decreased 2008 by 18% and increased in the period from Jan Jun 2009

    by 660%.

     Other glassware made of lead crystal increased in 2008 by 314% and in the period from Jan Jun

    2009 it totally amounted to 6,000USD compared to 0 of the same period in 2008.

2 Nesoi = not elswhere specified

     The Gifts and Decoration Market in Austria 7 | Page

Eurostat

    % % %

    Value FY Share Change Value Jan-May YTD Change Rank Country

    2006 2007 2008 2008 2008/07 2007 2008 2009 2009/08

     413.8 424.3 430.3 100.0 1.4 164.8 180.4 132.5 -26.5 World

    1 154.2 176.6 180.1 41.8 1.9 68.0 73.2 61.7 -15.7 Germany

    2 94.4 94.8 96.6 22.4 1.9 35.3 37.0 25.5 -31.0 Liechtenstein

    3 26.5 25.5 31.8 7.4 24.8 9.3 12.7 8.6 -32.3 China

    4 38.2 37.8 29.2 6.8 -22.6 14.8 15.1 7.6 -49.8 Netherlands

    5 19.5 21.0 26.3 6.1 25.4 8.1 11.6 7.8 -32.1 Italy

    22 0.8 1.0 0.8 0.2 -17.9 0.4 0.4 0.3 -20.8 Thailand

    23 1.0 0.9 0.7 0.2 -15.2 0.3 0.5 0.2 -56.1 Hong Kong

    24 0.4 0.4 0.7 0.2 97.0 0.1 0.4 0.3 -38.9 Taiwan

    33 0.2 0.3 0.2 0.0 -40.2 0.1 0.1 0.0 -75.3 South Korea

    Tab. 3.1.2 Austrian imports of gifts and decoration products worldwide

    Source: Eurostat

According to Eurostat in 2008, total imports of gifts and decoration products into Austria amounted to

    430 Mio USD in value.

    The total imports into Austria have grown over 1.4% in 2008 to 2007 and decreased in the period from Jan-May 2009 by 26.7% compared to the same period 2008.

     ndIn 2008 Thailand was ranked as the 22 biggest exporter of gifts and decoration products to Austria with rd rdan market share of 0.2% following its competitor China (3= 7.4%) but before Hong Kong (23 = 0.2%) thand Taiwan (24 = 0.2%).

3.2 Opportunities

+An increasing share, 10.2%, of gifts and decorative articles imports into Austria came from DCs in 2006.

    This percentage was significantly higher in the following product groups: Glassware, Woodware, Metalware, and Candles. The share was significantly lower for other product groups.

    + Austria will continue to depend on cheap imports from other countries in order to meet domestic demand for lower segment products.

3.3 Useful sources

EU Expanding Exports Helpdesk - http://export-help.cec.eu.int/

    Eurostat official statistical office of the EU - http://epp.eurostat.cec.eu.int

    Understanding eurostat: Quick guide to easy comext

    http://fd.comext.eurostat.cec.eu.int/xtweb/assets/guide.pdf

     The Gifts and Decoration Market in Austria 8 | Page

4 Market access requirements

    Manufacturers in Thailand that prepare to access the Austrian market should be aware of the market access requirements of their trading partners and the Austrian government. Requirements are demanded through legislation and through labels, codes and management systems. These requirements are based on environmental, consumer health and safety and social concerns. The manufacturer need to comply with Austrian legislation and has to be aware of the additional non-legislative requirements which their trading partners in Austria might request.

4.1 Packaging, marking and labelling

    Packaging is a vital part of successful export operations. Export packaging has to comply with a number of additional requirements as exporting implies longer transport, rougher handling and tougher competition than domestic trading. Consumer packaging has changed a good deal in recent years. Packaging no longer serves the purposes of distribution and protection, but plays an important role in image building, communication and environmental protection. Packaging serves three basic functions:

• It protects your product during transportation

    • It breaks down your product to sellable units (e.g. transforming bulk goods into consumer units), or

    simply makes the product easily accessible for consumers

    • It conveys a message to the buyer/consumer (marking and labelling)

    Products from Thailand have a long distance to travel before reaching their destinations in Austria. Therefore, it is very important that close attention is paid to the packaging of products. Good packaging protects products from, for example, the fluctuations and extremes of temperature, relative humidity, vibration and shock, impact, getting wet and getting lost.

    Depending on the choice of distribution channel, both the outer and the consumer packing should be adapted to the demands of the importers/retailers and the consumer. Most distributors place strong emphasis on attractive, easy-to-handle, and self-promoting packing materials. Packing in sturdy corrugated boxes with dimensions enabling easy handling and weight (not exceeding 25 kg per carton) is recommended. Wherever possible, the outer cartons should be placed together on pallets, to further avoid the risks of damage during transit.

    Attractive consumer packaging is important, especially for gifts. The consumer packaging should attract attention, clearly show the contents - either by picture or by see-through packing - and contain information on the use of the product. In other words, the packaging should match the design, image, quality and price of the product. Attractive consumer packaging is definitely a sales argument.

EU legislation for packaging and packaging waste

    To harmonise the different forms of legislation on packaging and packaging waste in EU countries, the EU has issued the directive 94/62/EC, which regulates minimum requirements. With effect from August 1, 2001, these minimum requirements will require a recovery quota of 50-65 percent for packaging materials brought into the EU and will regulate the presence of four heavy metals (mercury, lead, cadmium and hexavalent chromium). Austria has a certain freedom in how to comply with the recovery rate but at least

     The Gifts and Decoration Market in Austria 9 | Page

    25-45 percent of the material brought into the EU must be recycled, with a minimum of 15 percent for each material. The maximum available sum of concentrations of lead, mercury and hexavalent

EU legislation wooden packaging

    On March 1st, 2005, the EU introduced a set of new requirements for wood packaging materials. The rules are aimed at preventing plant viruses and the like from entering Europe. Wood packaging material is considered a plant product and is among those products that can carry harmful organisms such as insects or viruses. The EU Directive applies to all wood packaging materials imported into the EU. One of the main requirements is that wood packaging material has to go through heat treatment that involves a minimum wood core temperature of 56 degrees Celsius for a minimum of 30 minutes (heat treatment or HT). Alternatively, it may be fumigated with methyl bromide. Moreover, the treated wood must bear a mark with the two-letter ISO country code, a code identifying the producer and a code identifying the approved measure applied to the wood packaging material. To obtain the required mark after having treated your material according to the rules, exporters should contact the national plant protection organisation (NPPO).

4.2 Tariffs

    Up-to-date information on import tariffs and an updated list of least DCs can be obtained from the Customs authorities in Rotterdam, the Netherlands, through their online system, known as the Integrated Tariff of the European Communities (TARIC) at (http://www.douane.nl). A detailed list of HS codes can

    be found in Appendix A2. Other sources of information are the European Commission, trade associations and importers.

    Import duty for gifts and decoration articles range from 0% to 11%. A detailed list of respective tariffs can be found in Appendix A2. More information on tariffs and quotas can be found at

    http://exporthelp.europa.eu/index_en.html.

The VAT in Austria is currently 20%.

5. Doing business

For information on doing business in Austria, visit the following websites:

    Austrian Trade Fair Association - Up-to-date program for large trade fairs in Austria

     (http://www.messe.at/index.html?lang=E)

Trade shows in Austria (http://www.biztradeshows.com/austria/)

Austrian Exhibitions, Conferences & Trade Shows

     (http://www.eventseye.com/fairs/event_l371.html)

Domizil (magazine) (http://www.domizil.at/front_content.php)

Ecosophia (magazine) (http://www.ecosophia.at/)

     The Gifts and Decoration Market in Austria 10 | Page

Report this document

For any questions or suggestions please email
cust-service@docsford.com