Sewn of good fabric

Globalization has various consequences. One of them is that when you're on a high street or in a shopping mall in any given city, you are likely to recognize the logos of the most popular international brands. Nevertheless, if the city happens to be Warsaw, Kraków or Poznań, for example, the most popular international brands will be accompanied by the likes of Vistula, Bytom, Reserved or Top Secret – brands created in Poland and occupying a significant position on the market. This doesn’t mean that you won’t see any of these names abroad – Polish clothing is slowly, yet surely, gaining ground around the world By Kamila Wajszczuk Polish women have always aimed to be trendy, even in communist times, when getting your hands on fashionable clothing was something of an achievement. Many of them even opted to make their own clothes to ensure they looked good. This drive for a smart, fashionable look was not necessarily true for men. However, in the past few years their attitude has been changing. Euromonitor’s research shows that Polish men are spending increasing amounts on clothing. They buy consciously and are guided chiefly by the quality of clothing, but not particularly by brand. Similarly to women, working men are increasingly choosing to put together their own individual outfits, rather than relying on standard men’s suits. For leisure time, Polish men choose modern, stylish clothing in which they feel comfortable. Sportswear is also becoming an increasingly important part of men’s fashion. In 2015 the value of the men’s clothing market grew by 3 percent year-on-year to PLN 7.02 billion compared to a 3.2 percent y/y growth (to PLN 12.32 billion) recorded in the women’s clothing segment, the research firm said. “The reason for the relatively slow performance is the specific consumption patterns of Polish men, who are usually driven by the practical value of the apparel they purchase. As they are less fashion-oriented than Polish women, the scale and dynamism of their purchases are respectively at a lower level,” Euromonitor analysts wrote. Nevertheless, looking good is becoming an increasingly important aspect of personal image among men in Poland. Although these changes are occurring slowly, a rising number are paying more attention to the purchasing of their outerwear in order to make a good impression at work or at social events. “The significant driving factor is steadily rising salaries amongst a significant number of consumers, which is especially noticeable in the largest Polish cities. Moreover, the younger generation who live in the largest cities care about their image and tend to follow current fashion trends. Evidence of this trend is also the increasingly widening male client list of personal stylists,” the research firm added. Strong local standing [caption id="attachment_98580" align="alignleft" width="300"] Image: shutterstock[/caption] While Poles may have been fascinated by everything foreign – or more precisely Western – in past decades, they have also always been loyal to well-known local brands. This attitude has not just remained unchanged, it seems to be growing stronger. Crowds storm numerous events organized to promote young Polish designers and it has become trendy to wear clothes designed and produced in Poland. “‘Slow Fashion’ and other events organized in Warsaw and Łódź show that Poles, especially women, seem tired of clothing supplied by the big chains and that they are searching for an original look,” said Bogusław Słaby, president of the Lewiatan Association of Fashion Industry Entrepreneurs. Young designers may be the future, but established brands are already important players, even more so if only the men’s clothing segment is taken into account. LPP, the owner of such brands as Reserved, Cropp, Mohito, Sinsay and Tallinder, is the market leader with a more than 10 percent share in the Polish apparel market, according to the firm’s own data. The company already has 962 stores in Poland and hopes to cross the 1,000 threshold before the end of the year. It also has foreign expansion plans. Another major player is the Vistula Group, which sells clothing under the brands Vistula, Vistula Red, Vesari, Wólczanka, Lantier, Lambert and Deni Cler, and jewelry under the W. Kruk brand. In total, it has more than 320 stores around Poland, including 198 under the flagship Vistula and Wólczanka brands. Both the Vistula and Wólczanka brands were well established in Polish menswear before most foreign players had even considered entering the market. The same can be said of Bytom, taking its name from the original factory’s location, a city in Silesia in southwestern Poland. The firm now sells in almost 100 stores across Poland and its network continues to grow. Another well-established name, now undergoing a revival, is that of Próchnik, selling as Adam Feliks Próchnik and Rage Age. Known for decades as a menswear manufacturer, it has recently introduced womenswear. The company is in the process of building a sales network, which is to consist of about 50 stores in Polish shopping malls. Redan, which manages brands such as Top Secret, Troll and Drywash, targets mostly women, though its position in menswear is also strong. The company also has a budget division, Textilmarket. In each of these segments it has more than 350 stores (in Poland and abroad). Polish market leaders outperformed the general market in 2015 but their expansion is part of a more general trend. “The growth of Polish companies was in line with strengthening positions of other apparel and footwear giants (H&M, Tesco, Deichmann, Zara), as the market was becoming more concentrated,” said Povilas Sugintas, research analyst at Euromonitor International. London, Moscow, Abu Dhabi Local companies active on a saturated market are likely to look for demand elsewhere. Some Polish clothing companies have already found markets abroad. In total, Polish clothing exports may not be that impressive (only about 2.4 percent of total exports) but they are likely to grow. In 2015 their total value amounted to €4.24 billion compared to €3.37 billion a year earlier, according to data from the Ministry of Development. Market leader LPP is also a forerunner in terms of foreign presence. In January this year the company made news by opening a Reserved store in the capital of the United Arab Emirates, Abu Dhabi. Just a month earlier, it had signed a preliminary agreement to start operating on London’s prestigious Oxford Street. It is already present in 20 countries in Europe and the Middle East, and generates about 37 percent of its revenue through exports. Redan’s export sales represented only 7 percent of their total revenue in 2015, after a decline due to the unfavorable situation on East European markets, where both political and economic factors have played a part. Growth in the Czech, Slovak and Romanian markets has so far not compensated for the loss. Direct exports under Polish brands in past years had focused largely on the eastern direction, with Russia as a major market. Unfortunately the political situation has taken its toll on the sector, just like many other Polish industries, and eastbound clothing exports have declined, Słaby explained. Sewing powerhouse? An aspect that is not visible in official statistics is exports of apparel ordered in Poland by foreign companies. While many Polish companies are placing orders in Asia, prestigious brands from the West tend to manufacture in Poland. However most of them tend to use “made in the EU” labels on their apparel. Goods sold under foreign brands constitute a large part of Polish clothing exports – possibly even about 70 percent. Following a period of less activity, Poland has once again become an important spot on the clothing manufacturing map. Poland’s competitive advantages are quality and experience. The latter dates back to the earlier days when Poland was one of the few countries in Europe that offered the production of quality apparel. “The tradition has remained – western companies trust us,” said Słaby. Also, in the case of many major Polish sector firms, part of their top-notch production is being brought back to Poland. This is because Asian manufacturers are unable to meet the concurrent requirements of short deadlines, short series and high quality, Słaby added. Though big players such as LPP and Redan commission a large part of their production volume in the Far East, part of their clothing is made in Poland. Others, such as Bytom and Vistula Group, have also maintained local factories – in Tarnowskie Góry, Kraków and Ostro-wiec Świętokrzyski. According to Słaby, the small share of Polish-branded exports is not only due to the low recognition of Polish brands. “It requires major investments, not all players are in a good enough condition to enter foreign markets,” he said. [caption id="attachment_98582" align="alignleft" width="300"] Image: shutterstock[/caption] However, things may look different in a couple of years as Polish companies are preparing increasingly ambitious expansion plans. Others are still focusing on establishing their position on the domestic market, but in future years they may have to adjust their strategy in order to continue growing. In Słaby’s opinion, one of the biggest challenges the industry has to face today is the shortage of employees, as education aimed at clothing production is not sufficiently popular among young Poles. The industry is, however, working to change the situation through various means of promotion. Regardless of that fact, Słaby is convinced there is potential for further growth of Polish clothing brands – “The perspective is optimistic. The sector has prospects. The problems are being resolved but we still need time.”