Entering the European market for pants and trousers

Some of the world’s most interesting apparel markets are in Europe. However, setting up a business relationship with a European buyer can be challenging. You will need to investigate the different European markets and sales channels and set realistic goals, so that you can measure your performance and success.

1. What requirements and certifications must pants and trousers meet to be allowed on the European market?

You need to comply with several legal and non-legal requirements when exporting pants to Europe. Other requirements are voluntary. Meeting them can give you a competitive advantage. Some requirements only apply to certain niches in the pants and trousers market.

What are mandatory requirements?

There are several legal requirements for exporting pants and trousers to Europe, including those concerning product safety, the use of chemicals (REACH), quality, and labelling. Check the EU Access2Markets online helpdesk for an overview. 

Follow these steps to ensure that your product complies with the relevant legal requirements:

1. Make sure your product complies with the EU’s General Product Safety Regulation (GPSR: 2023/988). If your buyer supplied the product design, it is their responsibility to guarantee it is legally safe for end-consumers to use.
2. Make sure you comply with the EU’s REACH Regulation. It restricts the use of chemicals in apparel and trims, including certain azo dyes, flame retardants, waterproofing and stain-repelling chemicals, and nickel. Test input materials before production to prevent non-compliance.
3. Pay particular attention to the following safety standard that applies to pants and trousers for children: EN 14682. It contains requirements to ensure that cords and drawstrings are placed safely on apparel for children up to age 14.
4. Specify the material composition of every item of pants and trousers that you export to the EU, in line with Regulation (EU) 1007/2011. Check the EU Access2Markets online helpdesk on how to do so.
5. Do not violate any intellectual property (IP) rights, and do not copy or share designs with other buyers. If your buyer provides the design, they will be liable if the item is found to violate a property right.

Non-legal mandatory requirements 

Buyers may confront you with additional, company-specific terms and conditions. Such requirements are usually written in a buyer manual. By signing a contract with your buyer, you confirm that you will comply with all the requirements listed in the manual. You will be held accountable in case of a problem after the delivery of an order. If a buyer does not have a manual, make sure all terms and conditions are clear and agreed upon beforehand to avoid unpleasant surprises.

The following topics may be included in a buyer manual.

Payment terms

For first-time orders, European buyers may give you a down payment via bank transfer (for instance 30%). They will pay the rest (70%) before shipment, again via bank transfer, or bank guarantee. This statement guarantees that the sum will be paid by a certain date.

Another payment method is the L/C (Letter of Credit). With an L/C, the buyer’s bank must pay the supplier when both parties meet the conditions they have agreed upon. This is the safest payment method for a manufacturer. An L/C can also be used to get finance to purchase materials. Many buyers don’t favour L/C payments, because the payable amount is blocked in their bank account to secure payment. 

For follow-up orders, most European buyers will ask for a TT (Telegraphic Transfer/Open Account) after 30, 60, 90 or sometimes even 120 days. This means that payment will be made the agreed number of days after you have handed over the shipment. You as the manufacturer take full financial risk.

Delivery terms

Free on Board (FOB) is the standard Incoterm used by buyers and sellers to agree on the delivery of goods. Some buyers may ask you to agree to Delivery Duty Paid (DDP) due to rising shipping costs. Be aware that this is the riskiest Incoterm for you as a manufacturer.

Nominated suppliers

Some buyers may require you to purchase materials from a nominated supplier. This means that you are responsible for the ordering, delivery and payment of materials. This may negatively impact your flexibility, cost, speed and liquidity. Discuss locally available solutions with your buyer to replace nominated suppliers.

Acceptance quality limit

Your buyer may set an acceptance quality limit (AQL). This refers to the worst quality level that is still acceptable. For instance, AQL 2.5 means that your buyer will reject a batch if more than 2.5% of the items are defective.

Packaging requirements

Your buyer will instruct you how to package the order. If you agree to delivering Free on Board (FOB), your buyer will clear customs in the country of import. It is their responsibility to ensure instructions on the packaging comply with EU import procedures.

Make sure to minimise unnecessary packaging materials by not packing each individual item and avoiding empty space. Use reusable packaging (reusable cardboard boxes for instance) and choose packaging containing recycled materials (such as recycled cardboard, including hangers) or biodegradable plastics (polybags). Provide clear labelling for recycling and composition.

Restricted substances

Ask your buyer if they use a Restricted Substances List (RSL). These lists are often based on the guideline on safe chemicals use from the Zero Discharge of Hazardous Chemicals (ZDHC) foundation or AFIRM.

Certification

Many European buyers require suppliers to get certified for sustainable and/or fair production or the use of sustainable materials. The most popular standards and certifications in Europe include WRAP, SA8000, Sedex, B-corp, OEKO-TEX® STeP, GOTS and Recycled Claim Standard.

Amfori provides a list of organisations that can perform an audit. Note that Amfori BSCI is almost a standard requirement for many European apparel companies.

Transparency

Supply chain transparency is key in the European apparel industry. Share information about your own operations with buyers, and help them gain as much insight as possible into your entire supply chain and the materials used.

The new Ecodesign for Sustainable Products Regulation (ESPR, 2024) will introduce a Digital Product Passport: a digital identity card for garments and materials. Information on this card can include:

• The product’s technical performance;
• Materials and their origins;
• Repair activities;
• Recycling capabilities;
• Lifecycle environmental impacts.

Worker happiness

Your buyer may require that you pay attention to diversity and inclusion in your workforce. All individuals in your company should have equal opportunities, regardless of gender, race, religion or other characteristics. Watch the CBI webinar on worker happiness for background information and tips.

Animal welfare

If you use natural protein fibres such as wool (including speciality wools such as merino, alpaca, cashmere or silk), animal welfare is an important concern. Buyers may require that you only use RWS-certified wool. If you use merino, buyers may require that you use only non-mulesing wool.

Regenerative agriculture

Regenerative agriculture is a concept focused on phasing out harmful fertilisers and pesticides and ‘regenerating’ nature. Several large European apparel retail groups have set goals in this area, including H&M and Inditex.

Carbon footprint

Many European brands have committed to climate neutrality. Calculating the CO2-footprint of an apparel item is a complicated process, which starts with carefully measuring your emissions before reducing them. Read our tips to measure and reduce your carbon emissions for more information.

Recycling

The EU is introducing new legal measures to increase circularity, including new directives on durability and ecodesign of textile products and a ‘right to repair’. The EU is also considering the introduction of an EU-wide extended producer responsibility (EPR) for apparel. This makes companies responsible for the way their products are disposed of, recycled or repaired. Some countries, including France, the Netherlands and Sweden, already have national EPR schemes. Recycling and repurposing materials helps your buyers reduce waste and save resources.

What additional requirements and certifications do buyers often have?

In addition to mandatory requirements, there are many services that buyers implicitly expect or highly appreciate if you want to do business with them. 

Product design and development

European buyers are always looking for unique designs, materials or production methods that will help them stand out in the market. For example:

• Blended fabrics, including stretch fabrics with elastane/Lycra for extra comfort;
• Different weaving and/or knitting techniques, such as mesh and houndstooth;
• Innovative finishes that improve hand-feel or improve functionality, such as quick-dry and easy ironing;
• Prints, preferably using sustainable techniques.

Popular types of pants in Europe include: casual pants (focus on comfort, in materials like cotton and polyester/cotton mixed with elastane), dress pants (originating from the suit, but nowadays sold separately, in woven materials like wool, viscose, linen and blends), smart casual pants (a mix of casual and dress pants, often in basic materials like cotton with elastane or wool), fashionable pants (richly decorated haute couture styles), and sports pants (with a focus on maximum comfort in materials like polyester, Lycra, Taslan and nylon).

Silhouettes

In Europe, wide-leg trousers and high-waisted styles continue to dominate for women. Cargo pants with a sleeker silhouette are trending for all genders. For men, tapered chinos and cropped trousers are widespread, as they are suitable for both casual and semi-formal wear. For denim styles, read the CBI study on denim trousers.

Fitting

Fitting and size-specs are a big challenge when manufacturing trousers. Sizing issues are still the main reason for high return rates in online shopping for pants. Innovative solutions such as 3D-sampling can help you optimise the fitting of your pants. Read the CBI study 9 tips to go digital for background information on 3D-sampling and other forms of digitalisation. The CBI study 8 tips on how to use AI in the apparel industry offers further information on the use of AI in design, sampling and production.

Figure 1: Pants made with comfortable, stretchy fabrics are popular in Europe

Source: Frank Flores via Unsplash

Source: Pesce Huang via Unsplash

Printing

Printed pants are often included in the collections of European fashion brands. They are mostly designed for women, but sometimes also for men. There are different printing techniques you can use: lithography (using printing plates and rollers on fabric), digital printing (inkjet and laser, allows for small production runs) and screen printing (transferring images onto fabric or garments using a fine material or mesh/film). Printing can be outsourced, but investing in printing and embroidering machines increases your flexibility.

Eco-design

Today, designers must consider the entire lifecycle of a product, not just how it looks. Many European buyers want designs that can be easily recycled, repaired or reused, made with sustainable materials. Moreover, they expect you to be able to provide information on the origins of the materials and help measure the total impact of the item. When it comes to designing for circularity, there are four main strategies in eco-design:

• Design for low waste: Reduce how much fabric is thrown away during production;
• Design for low-impact materials and processes: Use materials and production methods that have a low impact on the environment;
• Design for longevity: Use designs and materials that make products last longer;
• Design for recyclability: Make it easier to recycle parts of the product.

The Ellen MacArthur Foundation offers an overview of the basic principles of circular fashion design. Several assessment tools can help you evaluate materials, such as the Higg Materials Sustainability Index and the Preferred Fiber & Materials (PFM) Benchmark.

Communication

Smooth communication is crucial. Always reply to emails within 24 hours, even if it is just to confirm that you have received the email and will send a longer reply later. If you have a problem with a production order, immediately let the buyer know and offer a solution. Create a critical path for every order and share it with your buyer. This is a list of every single step in the production and delivery process, and the time each step takes. This will help you manage expectations and monitor progress.

Flexibility

Be prepared to accept complicated orders at first. Buyers will want to test your factory before giving you large, easy orders. Make sure from the start that a buyer will not continue to place only difficult orders with you, and convenient orders elsewhere. Expect a European buyer to require in their first order:

• High material quality and impeccable workmanship;
• Order quantities below your normal minimum order quantity (MOQ);
• A lower price level than you would normally accept for small-quantity orders.

To increase flexibility, factories can install a sample room (to produce small orders), a modular production setup (an island instead of a production line), or a U-shaped setup, where employees can control several machines at the same time.

Speed to market

European buyers try hard to minimise stock and order as late as possible. There are different ways to shorten lead times:

• Keep stock materials ready. Source from fabric suppliers that work with stock yarns. To increase efficiency and speed, make sure you have all the necessary materials, including fabrics, zippers, buttons (and other trims) and packaging materials available before you start production;
• Confirm lab dips (a small swatch of fabric to define colour and its recipe before it goes for bulk dyeing), trims and style before the final order is placed;
• Apply garment dyeing during production to increase flexibility;
• To help plan your production capacity, ask your buyers for a seasonal sales forecast and regular sales updates.

What are the requirements for niche markets? 

There are many interesting niches within the pants category. Be aware that niche buyers usually offer smaller orders and require a relatively high service level. This means you need to adjust your manufacturing and sourcing setup if you want to be profitable. 

Workwear

Pants are a basic item in many workwear sub-categories, such as hospital clothing and corporate wear. These categories offer relatively big orders and stable business, but beware of strict buyer requirements, including safety standards. Read the CBI study on workwear for more information.

Special sizes

Many European fashion brands include silhouettes in their size range for specific body types, such as plus size, petit, tall and maternity fashion. If you are a manufacturer of tubular knits, you may be required to invest in bigger machinery to make large-sized styles. 

Shapewear

More European brands are developing styles that help shape the figure. Trousers are a product category especially suited for shapewear. Fabric compositions with high percentages of Lycra or elastane can help improve the figure.

2. Through which channels can you get pants and trousers on the European market?

Before you approach European apparel buyers, you need to determine what market segment fits your company best, and through which sales channel(s) you want to sell your product.

How is the end market segmented?

European pants and trouser buyers can best be classified by price/quality level.

Table 1: Pants market segmentation

Source: FT Journalistiek

The luxury consumer

In the luxury market, European brands like Versace, Gucci and Dolce & Gabbana sell extremely fashionable, luxurious pants at a very high retail price. The trends that are born here are translated to the lower segments of the fashion industry. Because buyers have extremely high standards regarding design, workmanship, material quality and brand image, production mostly takes place in Europe.

The fashion-conscious consumer

The upper-middle market caters to fashion-conscious consumers. It is home to A-brands such as Ted Baker, Closed and French Connection. Consumers appreciate brands for their brand image, original designs and high-quality materials. Smaller brands with a distinct sustainable profile, such as Armed Angels, People Tree and KnowledgeCottonApparel, operate in this segment.

Practical consumers

Practical consumers shop in the middle market. Here you will find brands and retailers such as Zara, Only and Benetton, selling both fashionable and more functional styles. Focus is on washability, fit and medium-quality materials. Buyers may require organic fabrics. 

Price-conscious consumers

Price-conscious consumers looking for both fashionable and more basic designs shop for pants at large retail chains such as H&M (basic to fashionable), Primark (basic to fashionable), Piazza Italia (basic), HEMA (basic) and Carrefour (basic). Sustainable materials are in low demand, with notable exceptions such as C&A and Zeeman (organic cotton).

Through which channels does a product end up on the end market?

A buyer's place in the value chain determines how they will do business with you. Each buyer requires a specific approach. Always try to find out what part of the value chain your buyer is operating in, what challenges they face in the market, and how you can contribute to their sales strategy.

Figure 3: Pants market value chain

Source: FT Journalistiek

What is the most interesting channel for you?

As you move higher up the value chain, your margin will increase, and so will the service level your buyer expects from you. If you are a smaller factory with little or no experience in exporting to Europe, intermediaries and brands are the best starting point. Such companies have the largest market share and service every price/quality segment in the market. Intermediaries and brands are also used to working with suppliers in different production countries worldwide.

3. What competition do you face on the European pants and trousers market?

Manufacturing pants and trousers requires a high level of expertise. The right shape and especially fit of a 5-pocket trouser is key to its success or failure in sales. Pants with a bad fit will never sell. If you are considering manufacturing pants for the EU market, study styles and fits. If you have any doubt about your capabilities, start with manufacturing ‘easy’ styles before focusing on 5-pocket styles.

Which countries are you competing with?

Major pants manufacturing countries such as Bangladesh, Pakistan, Cambodia and Vietnam are GSP (General Scheme of Preferences: reducing or removing import duties) countries with a clear focus on volume business. China used to be solely focused on volume orders, but has developed into a design- and innovation-driven sourcing destination.

Table 2: Competing manufacturing countries in pants and trousers

Source: FT Journalistiek

Industry is moving towards nearshoring

More buyers are researching production solutions near Europe that will facilitate a higher demand for speed and flexibility, and support the need to reduce environmental impact. Your potential competition is therefore found in developing countries and countries surrounding the EU, like Tunisia, Morocco, Egypt and Türkiye.

Which companies are you competing with?

The Crystal Group is a manufacturing group with twenty factories in five countries (China, Bangladesh, Sri Lanka, Cambodia and Vietnam). Key to its success is its ‘co-creation’ business model, which focuses on building long-term relationships with leading global apparel brands and working as a proactive partner in both innovation and sustainability. The Crystal Group offers excellent service, including dedicated production teams to advise buyers on product specifications, raw materials, finishes, treatments and washings.

Son Keng is a manufacturer of fabrics and (casual) pants with its headquarters in Hong Kong, and factories in China and Cambodia. The company has its own two fabric mills for winding, warping, dyeing, weaving, mercerising and finishing fabrics. Son Keng focuses on volume orders and basic styles. It is WRAP-and BSCI-certified.

Konsey Textile in Turkey offers a wide range of knitted and woven apparel items for men, women and children. The company is known for its design input and flexibility, combined with fast delivery. Konsey specifically advertises its low minimum order quantities and its use of organic cotton and bamboo in many of its products.

Figure 4: Even more formal looking styles can now have stretch fabrics and comfortable features

Source: Vlady Nykulyak via Unsplash 

Which products are you competing with?

Pants are a staple of European wardrobes, with many European consumers owning several pairs. 

Fashion sportswear

Comfortable, sporty styles made with stretch fabrics influence almost every product group in Europe, including pants. Especially formal styles have lost ground to more comfortable pants, not just in design, but also in material use. 

Denim

Denim jeans are a staple of the European wardrobe and the market is expected to grow steadily in the next 5 years. Check the CBI study on denim trousers for more information about this category.

Second-hand fashion

The market for second-hand apparel is growing steadily in Europe, helped by convenient reselling, renting and swapping apps such as Vinted and Vestiaire Collective. This could in time threaten the import of pants into Europe. Preparing your product for the second-hand market may include adding easy repair solutions (such as a repair kit).

Sustainable alternatives

Two of the materials traditionally used to make pants, conventional cotton and wool, perform relatively badly with regard to sustainability. Considering the rising demand in Europe for sustainable apparel, try to use sustainable materials.

4. What are the prices of pants and trousers on the European market?

The factory price of your product is influenced by many factors, such as the cost of materials, the efficiency of your employees and your overhead and profit margin. For a step-by-step guide on how to calculate the FOB price of an apparel item, read the CBI study on cost price calculation.

The average cost breakdown of your FOB price (Free On Board) should look something like this:

Source: FT Journalistiek

These percentages may vary per factory, per order and in time. Some factories accept lower profit margins during the off-season, or when order volumes are high. In addition, the percentages for labour versus fabrics may differ, depending on the efficiency and wage level of the workforce and the price of materials. Higher costs due to inflation, increased taxes, sustainability requirements, lower quantities or nearshoring can also lead buyers to adopt bigger margins.

Retail pricing

The retail price of an apparel item is on average 4-8 times the FOB price (this is called ‘retail markup’). The FOB price is on average 12.5-25% of the retail price. Exceptions do occur. In the budget market, some European retail chains may only double the FOB price. Retailers mark up the FOB price by 4-8 times because they need to account for (among other things) import duties, transport, rent, marketing, overhead, stockkeeping, markdowns and VAT (15-27% in EU countries).

Source: Eurostat, 2024

Europe’s most expensive countries for apparel 

According to Eurostat’s 2024 comparison of retail prices for apparel in Europe, Denmark is the EU country with the highest price point compared to the European average (132.8), while Switzerland is the most expensive European country for apparel (143.4). Looking at Europe’s biggest importers of apparel, Italy has the highest apparel retail prices (107.8), followed by Poland (103) and Germany (101.4). Especially in Poland, retail prices have gone up in recent years.

FT Journalistiek carried out this study in partnership with Giovanni Beatrice on behalf of CBI.

Please review our market information disclaimer.