Sources: Cotton Council International and Cotton Incorporated’s Global Lifestyle Monitor Survey and External Source: Euromonitor International1Source: Cotton Council International and Cotton Incorporated’s Global Lifestyle Monitor Survey, a biennial consumer research study. In the 2016 survey, approximately 10,000 consumers (i.e., 1,000 consumers in 10 countries) were surveyed. Cotton Incorporated’s Lifestyle MonitorTM Survey, an ongoing consumer survey that interviews 6,000 U.S. consumers annually. External Source: Euromonitor International1

GLOBAL LIFESTYLE MONITOR: GERMANY

GLOBAL CONSUMER INSIGHTS

INFO: MARKETINFORMATION@COTTONINC.COM LIFESTYLEMONITOR.COTTONINC.COM © 2016 © 2016 COTTON COUNCIL INTERNATIONAL AND COTTON INCORPORATED’S GLOBAL LIFESTYLE MONITOR SURVEY

GLOBAL LIFESTYLE MONITOR: GERMANY

cotton

82%

modal

40%

tencel

26%28%

nylon

33%

rayon

36%

SEEKING SUSTAINABLE APPAREL

TOP SUSTAINABILITY/SOCIAL CONCERNSAPPAREL SPENDING

SPENDING Apparel spending in Germany is projected to grow at a moderate pace over the next 15 years.

SHOPPING German shoppers remain more impulsive and quality-conscious than their counterparts, although less so than 15 years ago.

OMNICHANNEL Providing more detailed product information can help brands win online and store-based shoppers in Germany.

SUSTAINABILITY Cotton offers German consumers the functional, emotional, and sustainable benefits they demand in their apparel purchases.

KEY TRENDS

$71.9$320.2

$275.2

CHINA +131%U.S. +28% EU +20% GERMANY +11%

While less than a third of German shoppers actively seek out sustainable apparel, two-thirds would blame the industry if they purchased clothing produced in a non-sustainable manner. Cotton remains German consumers' fiber and natural fiber of choice because it offers the functional, emotional, and sustainable benefits they are seeking in their apparel purchases.

AIR QUALITY 72%

CHILD LABOR 72%

GLOBAL WARMING 73%

ANIMAL/PLANTEXTINCTION 74%

COTTON SUSTAINABILITY FACTS

U.S. cotton farmers have reduced pesticide applications by HALF over the past 30 years.

DISCOVER WHAT COTTON CAN DOSM at CottonToday.CottonInc.com.

% SAYING THE FOLLOWING FIBERS ARE SAFE FOR THE ENVIRONMENT

COMPARED TO CLOTHING FROM MANMADE FIBERS, COTTON IS VIEWED AS THE MOST...

TOP CONCERNS REGARDING COTTON PRODUCTION

1.2.3.

Amount of chemicals & pesticides used

Amount of water used

Greenhouse gas emissions

66%

SUSTAINABILITY...

52%

32%

80%

sust

aina

ble

trust

wor

thy

78%

auth

entic

73%

com

forta

ble

relia

ble

79%70%

87% of consumers prefer cotton-rich clothing.

PROJECTED SPENDING GROWTH 2015-20301

is important in my apparel purchase.

when it’s lacking, I blame the industry.

is something I seek out in my apparel.

BILLIONS OF U.S. DOLLARS1 2015 APPAREL SPENDING

polyester

$359.6

Over the past two decades, U.S. cotton farmers have improvedwater efficiency by approximately 80%.

GLOBAL LIFESTYLE MONITOR: GERMANY

INGLOBAL CONSUMER SIGHTS GLOBAL CONSUMER INSIGHTS

INFO: MARKETINFORMATION@COTTONINC.COM LIFESTYLEMONITOR.COTTONINC.COM © 2016GLOBAL LIFESTYLE MONITOR SURVEY • CHINA • COLOMBIA • GERMANY • INDIA • ITALY • MEXICO • JAPAN • THAILAND • TURKEY • UNITED KINGDOM

SPECIALTY STORES

ONLINE

OFF-PRICE STORES

OTHER

CHAIN STORES

DEPARTMENT STORES

33%store

displays

34%online

Over the past fifteen years, German consumers' shopping frequency and impulse purchases have declined, although they remain more quality-conscious and impulsive than their American counterparts. Brands must be adept at utilizing both in-store and online resources to explain their quality and value proposition to the increasingly omnichannel German shopper.

TOP SOURCES OF CLOTHING IDEAS

RETAIL CHANNELS SHOPPED MOST OFTEN

APPAREL SHOPPING ATTITUDES & HABITS

EU*

19%

15%

8%

23%

24%

11%

GER.

23%

22%

8%

17%

22%

8%

OMNICHANNEL SHOPPING

45%already own

U.S.

10%

7%

9%

36%

23%

15%

TOP 5 CLOTHING PURCHASE DRIVERS

fitqualitycomfort price

APPAREL SHOPPING HABITS

Although more than 7 in 10 German consumers buy most of their clothing in-store, the internet is being utilized as a research tool for in-store and online shopping. As in other global markets, tactile concerns remain a major barrier in preventing German consumers from buying clothing online. However, more detailed product information can ease the online and/or in-store shopping journey.

2 in 3 consumers say retailer/brand websites are their top online source of clothing inspiration.

WHERE CONSUMERS BEGIN THEIR ONLINE SHOPPING JOURNEY

43%retailer/brand websites

44%e-commerce websites

31%search engines

97% 96% 95%

12%emails from brands/retailers

10%e-commerce specific apps

58%love or enjoy

clothes shopping

68%Pay more for better quality

apparel

43%shop for clothing once per month

or more

54%Buy clothing on

impulse

EU* U.S.

63%

42%

67%

46%

52%

34%

48%

88%

* INCLUDES FIGURES FOR U.K., GERMANY & ITALY

TOP CONCERNS WHEN SHOPPING FOR CLOTHES ONLINE

research clothing compare prices shop deals

USING THE INTERNET TO SHOP FOR CLOTHES

64% detailed size information

47% material/fabric information

56% up-close views

53% views in multiple colors

detailed fit information45%

FACTORS THAT COULD INFLUENCE ONLINE SHOPPING DECISIONS

Online apparel & footwear sales are projected to grow 32% from $11.1bn in 2015 to $14.6bn by 20201.

39%54% 27%

color

25%people on

street

33%friends &

colleagues

29%shipping costs

28%clothing quality

34%inability to touch

clothes

39%inability to try on

clothes

32%information

privacy

GER.

91% 90%