Entering the European market for picnic baskets

Restricted chemicals: REACH

The REACH regulation (EC 1907/2006) lists restricted chemicals in products marketed in Europe. For basketry, chemicals are mainly used in dyes and paints.

Intellectual property rights

When you develop products, you have to make sure you do not copy existing designs. Intellectual Property (IP) is protected in Europe, and products that violate IP rights are banned from the market. The European Commission’s IP action plan gives European companies better access to fast, effective and affordable protection tools.

Packaging legislation

The Packaging Directive (94/62/EC) aims to prevent or reduce the impact of packaging and packaging waste on the environment. Buyers may therefore ask you to minimise the use of packaging and/or use sustainable materials.

According to the Circular Economy Action Plan, all packaging on the European market should be reusable or recyclable in an economically viable way by 2030. A new Packaging and Packaging Waste Regulation (PPWR) is being drawn up to help achieve this.

Europe also has requirements for wood packaging material and dunnage (WPM) used for transport, such as packing cases and pallets. The goal is to prevent organisms that are harmful to plants or plant products from entering and spreading within the EU.

Corporate Sustainability Due Diligence Directive and Forced Labour Regulation

The Corporate Sustainability Due Diligence Directive (CSDDD) and Forced Labour Regulation (FLR) are two important pieces of upcoming Green Deal legislation. In 2022, the European Commission adopted a proposal for a CSDDD. This requires larger companies to identify and prevent, end or reduce any negative impacts of their activities on human rights and the environment, in both the company’s own operations and its value chains. This means that the new rules may apply to you indirectly through your buyers. The proposed FLR bans products made with forced labour. 

As these proposed laws still need to be finalised, their exact implications are not clear yet. Nevertheless, you should familiarise yourself with them and prepare for their rollout.

Green Claims Directive

Another upcoming law is the Green Claims Directive. In a recent European website screening, many green claims were believed to be exaggerated, false or deceptive. Companies pretend to be doing more for the environment than they really are by this ‘greenwashing’.

 In 2023, the European Commission proposed a Green Claims Directive to:

• Make green claims reliable, comparable and verifiable
• Protect consumers from greenwashing
• Contribute to a circular and green economy
• Help establish a level playing field

What additional requirements do buyers often have?

Buyers often have additional requirements on:

• sustainability
• labelling and packaging
• payment and delivery terms

Sustainability

Social and environmental sustainability are becoming more important in the European HDHT market due to buyer and consumer values and Green Deal legislation. Environmental sustainability focuses on your company’s impact on the environment, for example via raw materials and production processes. Social sustainability focuses on your company’s impact on the wellbeing of your workers and the community. Key topics include fair wages and safe working conditions.

You can highlight your sustainable activities and policies in the ‘story’ behind your product and company. Buyers appreciate good storytelling that evokes an emotional response.

In addition to legal compliance, a growing number of European buyers would like you to comply with: 

• Business Social Compliance Initiative (BSCI): an initiative of European retailers to improve social conditions in sourcing countries. They expect suppliers to follow the BSCI Code of Conduct.
• Ethical Trading Initiative (ETI): an alliance of companies, trade unions and voluntary organisations. ETI aims to improve the working conditions in global supply chains through their ETI Base Code of labour practice.
• Sedex: a membership organisation that works to improve working conditions in global sourcing chains. The Sedex platform lets you share your sustainable performance based on a self-assessment.

You can learn about sustainable options from standards like ISO 14001 and SA 8000. However, only niche market buyers demand certification.

If you adhere to such initiatives and standards, this may help your buyers comply with the proposed CSDDD and FLR, which require ‘proof’ of sustainable practices.

Labelling

The information on the outer packaging should match the packing list sent to the importer.

Outer packaging labels should include:

• Producer name
• Consignee name
• Quantity
• Size
• Volume
• Caution signs

Your buyer will specify what information they need on the product labels or on the item itself, such as logos or ‘made in’ information. This is part of the order specifications. EAN or barcodes are commonly used on product labels in Europe.

Packaging specifications

Importer specifications

You should pack picnic baskets according to the importer’s instructions. They have their own requirements for packaging materials, filling boxes, palletisation and stowing containers. Always ask for the importer’s order specifications, which are part of the purchase order.

Damage prevention

Proper packaging minimises the risk of damage caused by shocks. How items are packaged for export depends on how easily they can be damaged. Packaging should ensure that the items inside the boxes cannot damage each other. It should also prevent damage to the boxes when they are stacked inside the container. Packaging therefore usually consists of inner and outer cardboard boxes. The inner boxes are filled with protective materials or partitioned with corrugated cardboard.

Dimensions and weight

Packaging must be easy to handle in terms of size and weight. Standards are often related to labour regulations at the point of destination and must be specified by the buyer.

Cost reduction

Boxes are usually palletised for transport, and you should maximise the use of pallet space. Nesting or stacking can reduce costs. Think about this when designing your products.

Packaging must provide maximum protection, but you must also avoid using excess materials or shipping ‘air’. Waste removal is a cost for buyers.

You can reduce the amount and diversity of packing materials by following these tips: 

• Partition the boxes using folded cardboard.
• Match inner and outer boxes by using standard sizes.
• Consider packing and logistical requirements when designing your products.
• Ask your buyer for alternatives.

Material

Importers are increasingly banning wooden crating and packaging. Economical and sustainable packaging materials are more popular. Using biodegradable materials can be a market opportunity. Some buyers may even demand it.

Consumer packaging

At the retail level, picnic baskets usually come without any packaging. This allows consumers to try the items and feel the material. The baskets themselves can also function as gift packaging.

Payment and delivery terms

Payment terms are usually confirmed in the buyer’s order contract. They vary from buyer to buyer and are related to the volume and value of the order, the type of distribution partner, whether or not an agent is involved, and what delivery terms apply.

Delivery terms, known as Incoterms, depend on the type of distribution partner. HDHT importers generally prefer Free On Board (FOB) or Free Carrier (FCA) arrangements.

What are the requirements for niche markets? 

Fair-trade practices and sustainability certification are the most common niche market requirements.

Fair trade

Fair trade focuses on fair pricing and better social conditions for producers and their communities. Fair-trade certification can give you a competitive advantage, especially if the production of your items is labour-intensive. It often includes aspects of environmental sustainability too.

Common fair-trade labels are the World Fair Trade Organisation (WFTO) Guarantee System and Fair for Life certification. However, for most fair-trade oriented buyers in Europe complying with WFTO’s ten principles of fair trade is enough.

Sustainable rattan and bamboo

FSC (Forest Stewardship Council) certification is the most common label for sustainable wooden products. FSC chain of custody certification guarantees that a product’s source material comes from responsibly managed forests. These products are especially popular in Western Europe. Non-timber forest products like rattan and bamboo can also be certified.

2. Through which channels can you get picnic baskets on the European market?

Picnic baskets reach the European market through importers and wholesalers that supply to retailers, as well as retailers that buy directly from suppliers. 

How is the end market segmented?

The market consists of low, mid and high-end (premium) segments.

Figure 1: Picnic basket market segmentation in Europe

Source: Globally Cool, GO! Good Opportunity & Remco Kemper

Low-end market

The low-end segment focuses on functionality and basic designs at accessible prices. Typical retailers include hypermarkets such as Lidl and Action. If the baskets come with contents, these are often made with synthetic materials like plastic. Because this segment is dominated by low-cost and mass-produced items, opportunities are limited for smaller manufacturers like you. Instead, you should focus on the mid to high-end market.

Mid-end market

Prices are reasonable in the mid-end segment. Although design differences across market segments are limited, added value can be based on quality, materials, lining and additional tableware or functionality. Craftsmanship, natural materials, sustainable values and/or the story behind your product play a role in the mid-mid to mid-high segment. H&M Home and M&S are examples of players in the mid-end segment.

Figure 2: Picnic hampers with contents

Source: Hay Hampers @ YouTube

High-end/premium market

The high-end/premium market offers opportunities because picnicking can be associated with glamorous lifestyles. High-end picnic baskets are characterised by high-quality designs and materials, craftsmanship and brand names. They may have added functionality, such as an insulated lining that keeps contents cool. Hampers for this market often include more elaborate or luxurious tableware, and additional items like picnic blankets and thermoses. Luxury department stores like Harrods play an important role here.

Through which channels do picnic baskets end up on the end market?

Market access channels for picnic baskets mainly follow the traditional HDHT patterns. Importers and wholesalers supply to retailers. Larger retail chains often bypass the importers and wholesalers and import for themselves, while an increasing number of smaller retailers have also started buying directly from suppliers. In some cases, buying agents play a role.

Figure 3: Trade channels for picnic baskets in Europe

Source: Globally Cool, GO! Good Opportunity & Remco Kemper

Importers/wholesalers

Importers and wholesalers sell products to retailers in their own country or region, or re-export across Europe. Supplying to buyers in the project market (e.g. hotels and spas) is another distribution flow for them.

Importers and wholesalers handle the import procedures. They take ownership of the goods when they buy from you, taking on the risk of the onward sale of the products, unlike agents. Developing long-term relationships can lead to a high level of cooperation on appropriate designs, new trends, use of materials, types of finishing and quality requirements.

Importing retailers

Retailers come in many sizes: large and part of a chain, or small and independent. Larger retail chains often import from suppliers in developing countries directly. Many even have their own buying offices in developing countries. Others – mainly smaller independent stores – order from wholesalers in Europe.

There is a tendency towards consolidation in European retail. Large retail brands are becoming more widespread and more ‘lifestyle-centred’, offering home decoration, textiles and fashion accessories.

Buying agents, buying houses and sales agents

You can encounter several types of intermediaries when doing business with European buyers:

• European buying agents represent European buyers in sourcing countries but do not import products themselves. Sometimes, they have a more limited role, like checking the quality of the products. They can work individually or as part of a purchasing company. 
• Buying houses are comparable to buying agents, but they are based in your country and usually offer more services. These can range from sourcing raw materials to designing and sampling services.
• European sales agents can help you find European buyers. However, you should be careful before entering into agreements with commercial agents because European legislation protects their position.

Agents and buying houses mostly work on commission. They may approach you, or your buyer may request an intermediary. However, you should always try to work with your buyer directly. This saves on commission and allows you to communicate with your buyer directly.

What is the most interesting channel for you?

Importers and wholesalers are the main channel between exporters in developing countries and European retailers. They are interesting if you want to develop long-term relationships. These importers usually know the European market well, so they can provide you with valuable information and guidance on market preferences. They generally prefer FOB or FCA Incoterms.

Figure 4: Incoterms

Source: Globally Cool, GO! Good Opportunity & Remco Kemper

Large retailers are increasingly importing for themselves to cut out the margins involved with importers and wholesalers, reduce time to market and have more control over product design and finish. This creates opportunities. Smaller, independent retailers need to differentiate from retail chains on value-added service, specialised offers and authenticity. Buying directly from producers in developing countries is an interesting way to do so. They typically prefer small order quantities for each item, small total order volumes and delivery to their doorstep via Delivered Duty Paid (DDP) or Delivery At Place (DAP). Repeat orders are less likely.

The trend of direct sourcing is expected to continue. This may create more opportunities for you, as a growing pool of buyers could improve your bargaining position. Because importing retailers order for their own shops, they can place orders much quicker than importers and wholesalers, who may need to show their retailers samples. You need to calculate if trading with retailers directly is cost effective.

Tips:

• Consider targeting retailers directly to improve your bargaining position and potentially close deals faster. 
• Relate your offer and terms to your targeted retailer. Ask your existing buyers how they operate if you are unsure. The better informed you are, the better you will be able to set prices.
• Build a relationship based on mutual benefit by offering services like fast delivery and after-sales support.
• If you are interested in selling to small independent retailers, make sure to have a policy to present to them when you participate in international trade fairs. You must have appropriate terms of trading, like low minimum order quantities or pre-stocking.

3. What competition do you face on the European picnic basket market?

Europe’s leading supplier of basketry is China. A lot of these suppliers create mass-produced items for the lower-end segments. Instead of competing with mass-producing companies, your best opportunities are in the mid to high-end segments where you can add value.

These statistics cover basketry in general because no specific trade data are available for picnic baskets.

China is the leading basketry supplier to Europe by far, providing 36% of imports. Vietnam follows at 18%. Together, these countries supply more than half of Europe’s basketry imports. Next on the list are Indonesia (6.2%), Madagascar (5.1%), the Netherlands (4.3%) and Spain (3.9%). Interestingly, China has let its market share slip whereas that of other developing countries has grown.

Re-exporters or producers

European countries have different roles in the HDHT market. Some are mainly importers while others are mainly manufacturers. Western European countries are mainly importers. Most Western European importers are re-exporters. They do not just sell their products in their own countries but distribute them across the continent.

European production mainly takes place in Eastern Europe because of the relatively low transport and labour costs. This can make these countries a good alternative for European buyers to source low to mid-end products. Western and Southern Europe also produce some high-end products from well-known, premium brands with long histories.

Which countries are you competing with?

Source: UN Comtrade

China dominates the (low-end) market

China is the leading supplier of basketry – including picnic baskets – to Europe by far. However, its supplies dropped from a peak of €465 million in 2022 to €256 million in 2023. This translated to an average annual rate (CAGR) of -0.9% from 2019 to 2023, and a direct import market share that fell from 46% to 36%. The country mainly supplies the lower-end market. This is reflected in the fact that China accounts for about half of the basketry exports to Europe that are made from non-vegetable materials.

China benefits from its large-scale and highly mechanised production systems, low-cost workforce, the availability of raw materials and efficient shipping to Europe compared to other Asian countries. However, its rising labour costs over the last ten years have affected its competitiveness. In the coming years, China’s trade war with the United States and other disruptions may affect exports.

To avoid competition from Chinese suppliers on price, you should stay away from mass-produced basketry. Focus on handmade products, design, sustainability, natural materials and the story behind your product. Smaller European importers are increasingly looking for suppliers in other Asian countries, such as Vietnam, Indonesia, Bangladesh and India. They want to diversify their collections and become less dependent on China as a single supplier. This is also true for importers whose designs require handwork.

Vietnam is another low-cost producer

Like suppliers from China, Vietnamese manufacturers are very productive and can produce at low costs. The Vietnamese market grew from €104 million in 2019 to €126 million in 2023, at a CAGR of 51%. This included a peak of €197 million in 2022. The country’s import market share was fairly stable at about 18%. Most of these baskets are made from non-vegetable materials. At the same time, Vietnam accounts for about a fifth of the basketry exports to Europe made from non-vegetable materials.

Vietnamese suppliers generally have a good idea of what is commercial and trendy. This is because Vietnam’s HDHT sector has worked with the European market for decades. They effectively combine handmade and mechanised production and can cater to a wide range of lower and mid-end markets. As such, they have become an effective second-sourcing alternative to suppliers from China. They are also increasingly adopting socially and environmentally sustainable practices.

Indonesia is leading in rattan basketry

After peaking at €81 million in 2022, Indonesia’s basketry supplies to Europe returned to €44 million in 2023. This is comparable to the €45 million the country supplied in 2019 and 2020. About a quarter of these exports were destined for the Netherlands, a country that Indonesia has historical ties to.

Indonesia is famous for its rattan products, which make up about two-thirds of the country’s basketry exports to Europe. This makes Indonesia Europe’s leading supplier of rattan basketry, providing about 40% of all imports of these items. Indonesian basketry producers also have access to a variety of other natural materials, ranging from water hyacinth to Pandanus and several types of grass. Their ability to combine these materials is attractive to buyers.

Wages in Indonesia are relatively high for the region. This means suppliers have to target the mid to high-end markets to compete. They often offer a range of handmade home decorations made from a particular material. This allows lifestyle buyers to do convenient one-stop shopping in Indonesia and fill containers with a complete range of accessories, storage and furniture. The logistical structure and business climate in Indonesia are good, making the country accessible to European importers.

Madagascar’s basketry supplies to Europe are booming

Since 2018, Madagascar has more than quadrupled its basketry exports to Europe. They grew from €7.5 million in 2019 to €37 million in 2023 at an impressive CAGR of 49%. While most leading suppliers’ basketry supplies to Europe peaked in 2022, Madagascar’s continued growing in 2023. As a result, the country’s direct import market share grew from 1.3% to 5.1%. This made Madagascar Europe’s fourth leading supplier, after ranking tenth in 2019.

Most of Madagascar’s basketry supplies were exported to France (€13 million), Italy (€12 million) and Spain (€8.2 million). The baskets are mainly made of natural materials such as raffia, vetiver, sisal and even silk.

Which companies are you competing with?

The following companies are examples of the type of competition you will face in the European market for picnic baskets.

Keico, Vietnam

The Vietnamese family business Keico has been making handicraft products from natural materials for over 100 years. The company specialises in home decoration with a rustic style. Their products include a wide range of handwoven picnic baskets in various designs, from boxy and neutral to curved and colourful. They come in materials like rattan, bamboo, seagrass and water hyacinth. For example, their rattan picnic baskets with bottle holders have a textile lining and can be supplied with a complementary bamboo board. Their seagrass picnic basket has leather handles.

Figure 6: The Keico company story

Source: Keico @ YouTube

Keico is committed to providing its customers with good and stable quality products at competitive prices. The company defines itself as a “trustworthy, responsible, sustainable supplier”, and works with a BSCI factory. They have created jobs for female weavers in seven provinces and have trained 20 young workers in rattan home decoration and furniture production. In addition to producing its own designs, Keico also develops products for and with its customers.

Pekerti, Indonesia

Pekerti is an Indonesian WFTO Guaranteed Fair Trade supplier and social development organisation. Their range includes a rattan picnic basket. Pekerti helps artisans connect to both domestic and export markets, providing more than 50 producers with an alternative source of income. This includes a 50% downpayment before production begins, as well as access to zero and low-interest loans, insurance and scholarships for producers’ children. The organisation also engages in projects for emergency relief, housing reconstruction and long-term economic recovery via SME establishment.

Figure 7: Pekerti company profile

Source: World Fair Trade Organization – Asia @ YouTube

To increase producers’ skills and capacity, they are trained in all aspects of production, product design and market access. Pekerti also provides training on the implementation of fair-trade principles – especially gender and health and safety – and topics like copyright law and non-toxic dyes and paints. To support producers, Pekerti monitors trends and conducts regular field visits to work on product development and quality control, conduct assessments and gain feedback.

Eco Bangla Jute Ltd., Bangladesh

Eco Bangla Jute Ltd. mainly manufactures baskets and bags of renewable natural materials like jute, seagrass, sweetgrass, cane and palm fibre. As a member of ECOTA and a provisional member of WFTO, the company emphasises its “natural, eco-friendly, sustainable products” and its social and fair practices. This includes providing a healthy working environment, supporting disadvantaged people, and recruiting female workers to empower women. To further support these commitments, Eco Bangla Jute Ltd. is both BSCI and Sedex (SMETA) audited.

The company prides itself on its Creative & Design and Research & Development departments, which create and update the products. Its seagrass picnic bags come in various designs, from box to barrel-shaped, and even a backpack style. Like Keico, Eco Bangla Jute Ltd. also develops products for and with its customers.

Which products are you competing with?

Competition for picnic baskets mostly comes from within the product category itself, from ‘regular’ carrying baskets and from cooler bags. To stand out, focus on quality and functionality, craftsmanship, materials, lining, sustainable values and/or additional tableware options. For example, to compete with cooler bags, you can include an insulating pouch or lining in your picnic baskets. 

Tips:

• Compare your products and company to the competition. You can use ITC Trade Map to find exporters per country.
• Focus on design, craftsmanship, quality and the story behind your products to stand out.

4. What are the prices of picnic baskets on the European market?

Prices for picnic baskets vary across market segments. After adding logistics costs, wholesaler and retail margins, and Value Added Tax (VAT), European consumer prices are about 4 to 6.5 times your selling price.

Table 1 provides an overview of picnic basket prices across market segments. Be aware that these are just indicative because prices vary depending on technique, size, material, design, brand and other means of value addition.

Table 1: Indicative consumer prices of picnic baskets in Europe

	Low-end	Mid-end	High-end
Picnic baskets (basket only)	€10–15	€15–75	€75 or more
Picnic baskets (complete with tableware)	€15–25	€25–125	€125 or more

Consumer prices depend on the value perception of your product in a particular segment. This is influenced by your marketing mix.

Figure 8: Marketing mix: the 4 Ps

Source: Globally Cool, GO! Good Opportunity & Remco Kemper

The European consumer price of your picnic baskets is about 4 to 6.5 times your FOB price. In addition to energy, labour and transport costs, FOB prices depend heavily on the availability and cost of raw materials. Occasional cost increases are not directly passed on to the consumer, so they put pressure on margins in the supply chain. However, recent disruptions have resulted in longer-term cost increases. This continuing pressure has made many retailers raise their consumer prices. When costs drop again, consumer prices may follow.

Consumer prices generally consist of:

• Your FOB price
• Shipping, import, handling costs
• Wholesaler margins
• Retail margins
• VAT; this varies per country, about 20% on average

Figure 9: Price breakdown indication for picnic baskets in the supply chain

Source: Globally Cool, GO! Good Opportunity & Remco Kemper

For example, the FOB price in Table 2 is set at €10. Depending on the segment your product is designed for, the consumer price will range from €41 (low-end) to €65.50 (high-end).

Table 2: Example of the price breakdown per market segment

	Low margin	Middle margin	High margin
FOB price	€10.00	€10.00	€10.00	Your FOB price
Transport, handling charges, transport insurance, banking services (20/15/15%)	+2.00 €12.00	+1.50 €11.50	+1.50 €11.50	Landed price for the wholesale importer
Wholesalers' margins (50/75/90%)	+6.00 €18.00	+8.60 €20.10	+10.40 €21.90	Selling price from the wholesale importer to the retailer
Retailers' margins (90/110/150%)	+16.20 €34.20	+22.20 €42.30	+32.70 €54.60	Selling price excluding VAT from the retailer to the end consumer
Selling price including VAT (20%)	+6.80 €41.00	+8.50 €50.80	+10.90 €65.50	Selling price including VAT from the retailer to the end consumer

The FOB price of €10 includes your own margins. These depend on your efficiency and price setting. Margins in the lower segment are generally smaller than in the middle and higher segments.

Examples of consumer prices are:

• Handwoven palm leaf picnic basket, La Basketry, €69.95
• Willow wicker picnic cooler basket with multifunctional rosewood lid, Sunnylife, €90
• Handmade wicker hamper with two-person tableware, blanket and cooler bag, The Basket Company, £95 (about €112)
• Seagrass hamper with leather and gold details and four-person tableware, Anya Hindmarch, €1,410

Tips:

• Study consumer prices in your target segment to determine your price and adjust your cost accordingly. Your quality and price must match your target segment.
• Calculate your prices regularly and carefully, especially if the prices of your raw materials fluctuate. If raw material prices put pressure on your margin for a longer period, consider increasing your price or finding an alternative.
• Understand your segment. Offer a marketing mix that meets consumer expectations. Adapt your business model to your position in the market.

Globally Cool carried out this study in partnership with Remco Kemper and GO! GoodOpportunity on behalf of CBI.

Please review our market information disclaimer.