Entering the European market for childrenswear

Exporting childrenswear to the European Union (EU) offers access to a large and diverse market and opportunities for innovation and growth, but also comes with regulatory challenges and competitive pressures. There are many different markets and market players in Europe, but in general the required minimum order quantities and flexibility are not easy to meet. If you can meet buyer requirements, there is much opportunity for growth.

1. What requirements and certification must children wear comply with to be allowed on the European market?

You need to comply with several requirements when exporting Children wear to Europe. Some are mandatory (both legal and non-legal). Others are voluntary but meeting them can give you a competitive advantage. Some requirements only apply to niches in the Children wear market.

Mandatory requirements

There are many legal requirements for exporting Children wear 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 Directive (GPSD: 2001/95/EC). If your buyer supplied the product design, it is their responsibility to guarantee it is legally safe for consumers to use.
2. Pay special attention to the following safety standards that apply in the EU: EN 14682 (contains requirements to ensure that cords and drawstrings are placed safely on apparel for children up to 14 years), EN 14878 (specifies the burning behaviour of children’s nightwear).
3. Make sure you comply with the EU’s REACH Regulation. This restricts the use of chemicals in apparel and trims, including certain Azo-dyes; flame retardants; waterproofing and stain-repelling chemicals and nickel. Test the input materials before production to prevent the risk of non-compliance.
4. Specify the material composition of every item of Children wear that you export to the EU, in accordance with Regulation (EU) 1007/2011. Check the EU Access2Markets online helpdesk on how to do it.
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

In addition to the legal requirements mentioned above, your buyer may have company-specific terms and conditions. Such requirements are non-legal, but still mandatory. 

The buyer manual

When you do business with a European buyer for the first time, they will typically give you a contract and/or a manual to sign. By signing the contract, you confirm that you will comply with all the listed requirements. This means you will be held accountable in case of a problem after the delivery of an order. Especially complying with REACH can be challenging. With small orders, most European buyers will not ask for expensive testing, but if illegal chemicals are discovered after delivery, you will bear all expenses involved.

Acceptable quality limit

To guarantee product quality, your buyer may set an acceptable quality limit (AQL). This refers to the worst quality level that is still tolerable. For instance, AQL 2.5 means that your buyer will reject a batch if more than 2.5% of the whole order quantity is defective.

Packaging requirements

In most cases, your buyer will give you instructions on how to package the order. If you agree to deliver Free on Board (FOB), which is the industry standard, your buyer will clear customs in the country of import. It is their responsibility to ensure the instructions comply with EU import procedures. Always try to reduce the environmental impact (and financial cost) of the use of packaging materials.

Reducing your use of packing materials or replacing them with sustainable alternatives not only minimises the environmental impact but also lowers costs and increases your competitive advantage. Some alternatives are:

• Recycled cardboard
• Biodegradable plastics

Payment terms

For a first-time order, European buyers may agree with a down payment (for instance, 30%). They will pay the rest (70%) after the order has been completed. The safest payment method for you as a manufacturer is the LC (Letter of Credit). An LC obligates a buyer’s bank to pay the supplier when both parties meet the conditions they have agreed upon. However, many buyers no longer favour LC payments, as this will block their cash flow. Be aware that LCs do not offer financial protection against bankruptcies!

For any further orders, most European buyers will ask for a TT (Telegraphic Transfer) after 30, 60, 90 or sometimes even 120 days. This means you as a manufacturer finish the production and hand over the shipment to the buyer, including the original documents, before payment is due. The payment will be made after the number of days that you have agreed on with the buyer. This is a risky payment agreement because you are taking the full financial risk.

Transparency

Supply chain transparency is key for the European apparel industry due to ever stricter laws at EU and national levels. For instance, the EU’s new Corporate Sustainability Due Diligence Directive (CSDDD) and the Corporate Sustainability Reporting Directive (CSRD) require all larger European companies to report on how they manage social and environmental risks.

Transparency means you have to not only disclose information about your own operations to buyers, but also help them gain as much insight as possible into their (and therefore your) whole supply chain.

Restricted substances

Ask your buyer if they use a Restricted Substances List (RSL). These lists are often inspired by the guideline on safe chemicals use from the Zero Discharge of Hazardous Chemicals (ZDHC) foundation. Download the ZDHC Conformance Guidance here.

Animal welfare

If you use wool, 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

The use of organic cotton is as popular as ever amongst European fashion brands, but efforts to make cotton production more sustainable have expanded to include ‘regenerative agriculture’. This concept is about phasing out harmful fertilisers and pesticides and ‘regenerating’ nature, including biodiversity, soil health and water. Several large European apparel retail groups have set goals in this area, including H&M and Inditex. Control Union recently introduced the first certification for regenerative agriculture, called regenagri.

Carbon footprint

Many European brands have committed to climate neutrality. Calculating the CO2 footprint of an apparel item is a complicated process, but several organisations have set benchmarks for specific materials and/ or products. See the CBI study on tips to go green for more information.

Recycling

The EU is introducing new legal measures to increase circularity in textiles, including new directives for the durability of textile products and a ‘right to repair’. The EU is also considering the introduction of an EU-wide apparel EPR (extended producer responsibility). This would make companies responsible for the way their products are disposed of, recycled or repaired. Some countries have already implemented national EPR schemes. Using recycled and repurposed materials will help your buyers to reduce waste and conserve resources.

Certification

Many childrenswear companies require suppliers to get certified for sustainable and/or fair production or the use of sustainable materials. Below is an overview of the most popular standards and certifications in Europe. Note that BSCI is almost a standard requirement for many European apparel companies. For a more detailed overview of popular standards, see the CBI study on buyer requirements.

Table 1: Europe’s most popular standards

Standard	Logo	Type of compliance	Certification information
Amfori BSCI		Social	By buyer invitation. Amfori provides a list of organisations that can do an audit
WRAP		Social	Read about the WRAP certification process here
B Corp		Social, environmental	Read about the B Corp certification process here
OEKO-TEX® STeP		Social, environmental	Read about the OEKO-TEX® STeP application process here
GOTS		Social, environmental (organic production)	GOTS provides a list of organisations that can do an audit
Recycled Claim Standard		Environmental (materials recycling)	Read about how to get certified here

What additional requirements do buyers often have?

European buyers are looking for manufacturers that offer low minimal order quantities (MOQs) and flexibility and can deliver multiple product variations, including detailed designs and special decorations. However, keep in mind that prices for children's clothing are typically lower than for adult apparel. Still, prices for Children wear are far below those of adult styles. This means that you need to have a highly efficient manufacturing setup to comply with the buyers’ expectations and still make a profit.

Product design and development

European buyers are always looking for special designs, materials or production methods that will help them stand out in the market. Features that are highly appreciated by European buyers of Children wear are:

• The use of chemical-free, hypoallergenic, sustainable materials (such as organic cotton, Tencel, recycled materials or plant-based dyes);
• Ease of washing (at high temperatures);
• Resistance to staining during wear;
• Colourful coatings and prints, preferably using sustainable techniques;
• Highly comfortable fabrics (jersey, use of elastane).

Printing

Prints are highly popular in Children wear. There are different printing techniques: 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 having your own printing and embroidery machines increases your flexibility.

Communication

Smooth communication is an implicit requirement of all buyers. Always reply to every email within 24 hours, even if it is just to confirm that you have received the email and will reply in full later. If you have a problem with a production order, let your buyer know as soon as possible and try to offer a solution. Another good tip is to create a T&A (time and arrival) for every order and share it with your buyer. This file will help you to manage expectations and monitor progress and is the best guarantee of on-time delivery.

Flexibility

If you want to start a business relationship with a European buyer, be prepared to accept complicated orders first. Buyers will want to test your factory before giving you large, easy orders. Make sure at 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 price level that is lower than you would normally accept for small-quantity orders.

What are the requirements for niche markets?

The following niche categories offer opportunities for Children wear manufacturers. The required qualities, styles and quantities may differ from mainstream production.

Sustainable Children wear

Ever more European Children wear brands and retailers are using sustainable materials in their collections. For instance, check out Swedish brand Polarn O. Pyret or C&A. Buyers may focus on organic natural materials such as organic cotton or merino wool or bamboo, bio-degradable plastics and recycled fabrics such as regenerated nylon or polyester.

Figure 1: Understated designs made with sustainable materials are a growing niche

Through what channels does a product end up on the end-market?

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

• If you want to target European end consumers, try selling via platforms such as Alibaba, Wish, Amazon or Wolf & Badger for independent brands. Most online consumers can be found in countries in Europe’s northwest. You will need to invest in a web shop, stock, order management and customer service. Your biggest challenges will be return policies and a lack of brand awareness.
• The growing second-hand market in Europe is serviced by online platforms such as vestiairecollective.com, vinted.com, depop.com or national websites such as marktplaats.nl (the Netherlands).
• Online multi-brand retailers such as Zalando, Nickis and Wehkamp sell existing Children wear brands and develop their own private collections. They can detect market interest very fast and will immediately react upon sales data. Usually, such companies will place a small test order first. If the item is selling well, they will place the actual production order. Fast delivery is a must.
• Most European retail chains, department stores and supermarkets sell both adult and Children wear Especially in Northern EU countries, Children wear is mostly part of a total concept servicing children, men and women. Notable exceptions are Polarn O. Pyret, Petit Bateau and jacadi.
• Children wear brands develop their collections 6-12 months in advance. You will need a large sample room, as brands require salesman samples (SMS) of each collection style. Every sample needs to be current: meaning it must look exactly like the product will in the shop, with branded hangtags and accessories. It may take many months before orders are placed.
• Intermediaries such as agents, distributors, traders, importers and private label companies sell your product on to buyers up the value chain. They are price focused and require flexibility in quantities and qualities. Some are located near or in the production countries and primarily do sourcing and logistics, such as Li & Fung. Others, such as HVEG Fashion Group or Jolo, work from Europe and also do market research and design.