· • This report includes the results of secondary market research: ... Charles Vögele (Switzerland): ... Source: Company Website, 2012; Annual Report, 2011; Garments without

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Sourcing Activities of leading Clothing Retailers in Europe 2012

Key Findings

Company and Product Information

Covering 73 European Clothing Retailers• Many European clothing companies source their products from outside of Europe, especially Asia.

• There is also an opposite trend towards location loyalty in Europe. Increasing Chinese labor costs have prompted some firms to transfer their production to other countries, including their own. A large number of companies, especially in Turkey and Russia, began manufacturing their goods in their home country. In Turkey, the government provides incentives for national manufacturers.

• More and more companies emphasize sustainable production of at least part of their goods.

• H&M cooperates with over 700 independent suppliers and factories in Europe, Middle East, Africa, Far East and South Asia.

• In 2011, Inditex produced more than 800 million garments in more than 40 countries worldwide.

• In 2011, almost 80% of Adidas’ products came from suppliers in Asia.

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The report “Sourcing Activities of leading Clothing Retailers in Europe 2012” by yStats.com is produced in a holistic approach to contain relevant information about sourcing activities of leading European clothing retailers.

• This report includes the results of secondary market research: By using various sources of information we ensure maximum objectivity for all obtained data. As a result companies get a precise and unbiased impression of the market situation.

• Cross referencing of data was conducted in order to ensure validity and reliability.

• All data used in this report was published in 2011 and up to October 2012.

• This report covers the leading European clothing retailers. It takes into account a wide definition clothing retail, including multi-channel players, Internet pure players, and physical retailers, as well as companies selling products besides clothing, as long as those other products do not represent a major share of sales.

• In total, 73 leading players are included and profiled as well as provided sourcing information for. The clothing retailers are ranked by the latest available total sales of the company. For some companies no total sales were available, resulting in the mentioning of the sales in the country. These companies, however are mostly smaller and mainly active in their own country. In the player profiles, name of company, key facts, headquarters, sales data, number of stores, sales channel, and countries of activity were listed.

• The sourcing charts include information about suppliers, production countries, factories, as well as further relevant news about the company’s sourcing strategy. Furthermore, some manufacturers were included that cooperate with the clothing retailers in certain countries. Further sourcing information such as Code of Conducts and requirements for the suppliers as well as ethical and environmental issues, are also included. For some companies, legal information and information about supplier audits is also included.


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Methodology

1.H&M (Sweden): Profile & Sourcing Activities

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2.Associated British Foods (UK): Profile & Sourcing Activities

3.Inditex (Spain): Profile & Sourcing Activities

4.Adidas (Germany): Profile & Sourcing Activities

5.Marks&Spencer (UK): Profile & Sourcing Activities

6.COFRA (Switzerland): Profile & Sourcing Activities

7.Galeries Lafayette (France): Profile & Sourcing Activities

8.Next (UK): Profile & Sourcing Activities

9.Otto Group (Germany): Profile & Sourcing Activities

10.Arcadia Group (UK): Profile & Sourcing Activities

11.Debenhams (UK): Profile & Sourcing Activities

12.Esprit (Germany): Profile & Sourcing Activities

13.Redcats (France): Profile & Sourcing Activities

14.Bestseller (Denmark): Profile & Sourcing Activities

15.Benetton Group (Italy): Profile & Sourcing Activities

16.New Look (UK): Profile & Sourcing Activities

17.Gruppo Coin (Italy): Profile & Sourcing Activities

18.Triumph (Switzerland): Profile & Sourcing Activities

19.Mothercare (UK): Profile & Sourcing Activities

20.Diesel (Italy): Profile & Sourcing Activities

21.Matalan (UK): Profile & Sourcing Activities

22.New Yorker (Germany): Profile & Sourcing Activities

23.Punto (Spain): Profile & Sourcing Activities

24.Calzedonia (Italy): Profile & Sourcing Activities

25.Peek & Cloppenburg Düsseldorf (Germany): Profile & Sourcing Activities

26.Tema Magazacilik (Turkey): Profile & Sourcing Activities

27.Varner-Gruppen (Norway): Profile & Sourcing Activities

28.Etam (France): Profile & Sourcing Activities

29.Bhs (UK): Profile & Sourcing Activities


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Table of Contents (1 of 3)

42.CentrObuv (Russia): Profile & Sourcing Activities

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43.LPP (Poland): Profile & Sourcing Activities

44.AFK Systema (Russia): Profile & Sourcing Activities

45.KappAhl Sverige (Sweden): Profile & Sourcing Activities

46.Desigual (Spain): Profile & Sourcing Activities

47.Aurora Fashion (UK): Profile & Sourcing Activities

48.Tally WEiJL (Switzerland): Profile & Sourcing Activities

49.Breuninger (Germany): Profile & Sourcing Activities

50.Peek & Cloppenburg Hamburg (Germany): Profile & Sourcing Activities

51.Hunkemöller (Netherlands): Profile & Sourcing Activities

52.Gloria Jeans (Russia): Profile & Sourcing Activities

53.Bader (Germany): Profile & Sourcing Activities

54.Wöhrl (Germany): Profile & Sourcing Activities

55.Walbusch (Germany): Profile & Sourcing Activities

32.Promod (France): Profile & Sourcing Activities

33.Grupo Cortefiel (Spain): Profile & Sourcing Activities

34.ECCO SKO (Denmark): Profile & Sourcing Activities

35.C&J Clarks (UK): Profile & Sourcing Activities

36.Dänisches Bettenlager (Germany): Profile & Sourcing Activities

37.Macintosh (Netherlands): Profile & Sourcing Activities

38.Charles Vögele (Switzerland): Profile & Sourcing Activities

39.Monsoon (UK): Profile & Sourcing Activities

40.The Peacock Group (UK): Profile & Sourcing Activities

41.Primondo Specialty Group (Germany): Profile & Sourcing Activities

30.Kiabi (France): Profile & Sourcing Activities

31.River Island Clothing (UK): Profile & Sourcing Activities


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67.Sarar (Turkey): Profile & Sourcing Activities

68.Akyiğit (Turkey): Profile & Sourcing Activities

69.Palmers (Austria): Profile & Sourcing Activities

70.Engbers (Germany): Profile & Sourcing Activities

71.Melon Fashion Group (Russia): Profile & Sourcing Activities

72.Ruveta (Finland): Profile & Sourcing Activities

73.Görgens (Germany): Profile & Sourcing Activities

62.K&L Ruppert (Germany): Profile & Sourcing Activities

63.Orsay (Germany): Profile & Sourcing Activities

64.Sela Fashion Design (Russia): Profile & Sourcing Activities

65.WE International (Netherlands): Profile & Sourcing Activities

66.Ozon (Turkey): Profile & Sourcing Activities

56.Altınyıldız (Turkey): Profile & Sourcing Activities

57.Novard Group (Russia): Profile & Sourcing Activities

58.AWG (Germany): Profile & Sourcing Activities

59.M&Co (UK): Profile & Sourcing Activities

60.August/Oodji (Russia): Profile & Sourcing Activities

61.Anson’s (Germany): Profile & Sourcing Activities


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Marks&Spencer (UK): Sourcing Activities

Marks&Spencer carries out sourcing activities on more than 1,448 sites in more than 77 countries and regional offices areoperated in China, India, Vietnam, Sri Lanka, Bangladesh, Turkey, and the UK.

In its sourcing strategy, Marks&Spencer, aims at becoming the world’s most sustainable clothing retailer by 2015.

All its sourcing partners must agree to the company’s Global Sourcing Principles. The document regulates production process andworkforce rights, which are in the spotlight, since the company has been involved in several scandals over factory work pay andworking conditions in India. According to the principles, manufacturers must make sure that all applicable working and environmentalstandards are complied with, no subcontracting of orders is allowed, and the products are labeled with their country of origin.Marks&Spencer carries out regular audits of its production facilities.

In 2008, Marks&Spencer opened its first carbon-neutral eco-factories in partnership with Sri Lanka’s largest clothing manufacturersBrandix and MAS Holdings. They are designed to be environmentally friendly with regard to energy consumption and waste. In 2011,M&S gave eco-factory status to a British West Mill hosiery factory, which produces a third of all hosiery sold at Marks&Spencer.

The company also plans to launch a new leather sourcing policy in partnership with the BLC leather technology center in 2012,and searches for eco-friendly cotton sources.

Source: Company Website, 2012; Annual Report, 2011; Garments without Guilt, 2012; The Guardian, 2010; Just Style, 2011

Marks&Spencer sources its products in Asia and the UK and aims at becoming the world’s most sustainable clothing retailer by 2015.


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Marks&Spencer focuses on the further growth of its multi-channel trade as well as its international expansion.Marks&Spencer (UK): Profile

Source: Company homepages, business reports, business and company databases, journals, company registries, news portals, industry and trade associations

Name of Company Mark&Spencer Group PLC

Key Facts

Marks&Spencer is a UK clothing retailer, selling womenswear, lingerie, menswear, and kidswear globally through a retail chain, franchises and online. Brands sold include Flatter Me, Heatgen, and Waistsculpt. In 2011, the company’s sales were up by +2% and reached GBP 9.9 billion, of which GBP 4.2 billion came from clothing. Marks&Spencer’s UK market share in the clothing segment was 11.7% in 2011. The company actively develops international and multi-channel sales. Its Online Outlet Site is visited weekly by 3.4 million people. The markets in focus for geographical expansion are China, Russia, India, and the Middle East.

Headquarters Waterside House, 35 North Wharf Road, London W2 1NW, UK

Sales Data

• Total group sales of GBP 9.9 billion, up by +2% (2011)• International sales of GBP 1.1 billion, up by +5.8% (2011)• Clothing and homeware sales of GBP 4.2 billion, down by -0.9% (2011)• Multi-channel sales of GBP 559 million, up by +18% (2011)

Number of Stores• 731 stores in the UK • 387 Stores in 43 countries in Europe (157 stores), Middle East and North Africa (122 stores), Asia (108 stores)

Sales Channel Retail chain, online shop: www.marksandspencer.com

Countries of Activity• UK is the main market• Europe, Middle East, Asia

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WE International sourced from 127 suppliers in 21 countries in 2010, with Turkey as the major country.WE International (Netherlands): Sourcing Activities

Source: WE International, 2011

India6,8%

China30,6%

Bangladesh11,8%

Turkey30,9%Thailand

5,1%

Others14,8%

Procurement of WE International by major Countries, in %, 2010

WE International had 127 suppliers at the end of 2010.

The suppliers came from the following 21 countries:Bangladesh, Belarus, Cambodia, China, India, Indonesia, Italy,Korea, Laos, Mauritius, Macedonia, Netherlands, Pakistan,Poland, Portugal, Romania, Taiwan, Thailand, Tunisia, UnitedArab Emirates and Vietnam


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WE International is a multichannel retailer of fashion products with 120 stores in the Netherlands.WE International (Netherlands): Profile

Source: Company homepages, business reports, business and company databases, journals, company registries, news portals, industry and trade associations; yStats.com

Name of Company WE International

Key Facts WE International is a multichannel retailer of fashion products in the Netherlands, Belgium, Germany, France, Luxemburg, Austria, Switzerland and China. WE International had 3000 employees and operated 250 stores worldwide in 2012.

Headquarters WE International, Reactorweg 101, 3542 AD Utrecht, the Netherlands

Sales Data Estimated sales of EUR 140 million in the Netherlands in 2011

Number of Stores• A total of 250 stores worldwide• About 120 stores in the Netherlands

Sales Channel Retail stores, online shop: www.wefashion.nl

Countries of Activity• Europe: Austria, Belgium, Germany, France, Luxemburg, Netherlands, and Switzerland• Asia: China

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Samples (2 of 2)

Documents

· • This report includes the results of secondary market research: ... Charles Vögele (Switzerland): ... Source: Company Website, 2012; Annual Report, 2011; Garments without