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(Last updated: 19 Jul 2007)
Trends and opportunities
The market
In 2004, the French clothing retailers industry was valued at A$45.17 billion. According to L’Institut Français de la Mode the 1150 companies (with more than 20 employees) in the sector (employing over 112,468 people) achieved a A$24.5 billion turnover. Exports account for 58.1 per cent of this turnover. More than 50 per cent of industry activity is concentrated in three regions: Rhône-Alpes, Nord-Pas-de Calais and Ile-de-France.
According to a report published by the French Agency for Innovation (ANVAR), France accounts for 14 per cent of the EU's’s textile industry turnover, 10 per cent of its workforce and 16 per cent of total consumption.
However, the number of people working in the textile industry has been decreasing by 12 per cent every year for the past 10 years. These losses can be explained by the lower production and labour costs overseas, particularly in Asia and in the Mediterranean Basin.
The clothing sector has witnessed a number of relocations. They are not considered catastrophic because products of a technical nature or with a high added value are still being manufactured on French territory. According to Claude Tetard, President of the Trade Union for the French Clothing Industry (UFIH), the industry as a whole has remained stable because erosion has been counterbalanced by France’s expertise.
In 2004, the French clothing and textile industry was composed of the following sectors:
- womenswear: 48% of the overall market
- menswear: 28% of the market
- baby and children’s wear: 15% of the market
- homewear: 5% of the market
- other: 4% of the market
Forecasts predict a 7.5 per cent growth of the clothing retail market between 2003 and 2007. Womenswear, which is already very strong, is expected to gain in strength reaching a 55 per cent market share by 2007. Menswear should grow, too, as there has been an increase in the number of menswear collections. Baby wear is growing although the declining birth rates outside of France could have a negative impact on this figure.
There are a large number of French retail companies. Etam Development is a leading company, followed by Petit Bateau and Naf Naf.
Customers are more fashion conscious than in the past but also more careful in terms of their budget. Companies aiming for the fashionable lower end of the market such as Gap, Zara (Spanish Inditex), H&M and Mango are extremely successful.
A number of Australian labels have become well-known in France such as Billabong, Rip Curl and Quicksilver. These names are linked to the sport’s world but there are also a number of other Australian designers that are gradually gaining world-wide recognition. Among them are Martin Grant, Collette Dinnigan, Brontibay and Akira. Whilst Grant and Brontibay each have a boutique in Paris, Dinnigan shows her collections on the Parisian catwalks.
The following trends have been observed:
- shift to a more informal type of clothing (casual wear and sportswear especially)
- most popular clothing are comfortable, easy-to-use, easy-to-clean
- new generation fibres (with the development of the 'third textile revolution') are progressively replacing traditional fibres
- clients are becoming more demanding in terms of pricing and quality of clothing
- the clothing market is very influenced by fast moving fashion trends
Retail sales have four peak periods: January (winter sales), July (summer sales), October (the first winter purchases) and December (Christmas). It is important to bear this in mind especially given the difference in seasons between France and Australia.
The reputation of the French clothing market is based on the quality, style, luxury and creativity.
Australian exporters need to bear this in mind to be successful.
Lingerie
General information:
- French women buy an average of two bras and more than five panties per year.
- They purchase one item of nightwear every 18 months and a bathing costume every three and a half years.
- Women aged 15 to 34 purchase the most lingerie although they buy less expensive items.
- The three leading lingerie products are bras, panties and nightwear.
The distribution structure of lingerie is relatively concentrated in France. Its distinctive feature is the important role played by hypermarkets and supermarkets and specialised chains. Mail order firms, independent stores and department stores are next.
Women are now asking for sophisticated lingerie and underwear which matches their clothing. As such underwear is considered to be a piece of clothing in itself with women often showing parts of their lingerie.
Sportswear
In 2004, 36 million French people aged between 15 and 75 were involved in sport. The most popular activities were walking, followed by swimming, biking, jogging, skiing, playing bowls, football and tennis.
High quality and design is an important factor when selling sportswear in France as consumers are becoming increasingly aware of body support during exercise. The retail distribution is dominated by specialist shops (60 per cent of the market), which include integrated shops (eg. Decathlon, Go Sport, Courir), associated shops (Intersport) and independent shops. Hypermarkets are the next most popular distribution channels followed by supermarkets, department stored (Citadium) and mail order.
There is a great deal of competition on the market with top brands such as Nike, Reebok and Adidas. Sportswear is no longer exclusively designed to be worn for sport but more as fashion wear although there has been a rising interest in fitness and an increase in leisure time. The emergence of new sports such as snowboarding and skating should create new demands in sportswear.
Swimwear
General information:
- Swimming is the second most popular sporting activity.
- For women, one-piece swimsuits represent 53 per cent of total sales.
- French women buy a new swimsuit every three years. Young girls, on the other hand, buy a new swimsuit every year.
- Women between 35 and 54 purchase a swimsuit about every four years and those above 55 purchase every 10 years.
Manufacturers of swimsuits are constantly creating new styles and fashions in order to meet the customers’ demands for new styles and looks. Fibre manufacturers are also investigating new fabrics, which are more attractive and comfortable.
In 2004, sporting goods stores and hypermarkets account for over half of the market share in terms of sales volume. There is strong growth in these stores because of access to bathing suits for men and children and ancillary sports apparel. Smaller, specialised retailers with a good price/quality ratio have increased their market share in terms of value in recent years as well.
Menswear
The menswear distribution is now organised and controlled by non-food specialist chains, large food retailers and mail order groups.
Niche opportunities are developing for designer’s ranges in boutiques with the development of the men’s fashion week in Paris in January and July which is rapidly over taking Milan Men fashion week.
Footwear
The overall market for footwear is mature and stable, however, over the past years, footwear has become a very fashionable market, particularly for sport shoes to represent an upper market.
The distribution of footwear is concentrated through chains. Vivarte has the leading position through its subsidiaries (San Marina, André SA and Minelli).
Leather goods
French leather goods are well-known because of their high quality. Japan and Hong Kong are the biggest buyers. China should become an important buyer too in the following years because of the opening of many luxury stores in the main cities. Asia remains the main supplier.
Jewellery
In 2004 the French jewellery market reached a A$6.94 billion turnover. This sector has known two major changes:
- In the 90's, jewellery was sold in hypermarkets and supermarkets; this meant that low priced ranges were made in order to target news clients.
- Since 2000, many luxury fashion brands started to create a jewellery line.
Nowadays, supermarkets and hypermarkets account for over half of the market share in terms of sales volume. Buying jewellery used to be a deliberate choice but with the appearance of low priced jewellery, everybody can purchase this product.
Babywear
Several elements sustain this market:
- Baby clothes are often purchased as gifts
- Older parents with higher revenues spend a considerable sum on babywear
- The rapid growth of babies force parents to buy new clothes on a more frequent basis
Hypermarkets, supermarkets and specialised chains dominate retail distribution network for babywear. They account over 75 per cent of the market shares.
Opportunities
Consumers are demanding more from their clothing and interest in innovative products is on the rise. The positive perception of Australian companies, particularly in response to the recent success of world-class products from sportwool, as well as the cotton and wool blend Colana and Denimwool will provide further impetus for Australians attempting to break into the market.
The French clothing sector is extremely competitive, however, niche opportunities exist for:
- high-end products
- innovative designer labels
- baby products
- swimwear, underwear and lingerie
- streetwear and urban wear labels
- accessories
- menswear and accessories
Niche opportunities also exist in the textile sector for innovative fabrics and textiles with high quality and competitively priced.
Competitive environment
The French clothing and textile industry is the second largest in the European Union (EU). According to l’Institut Français de la Mode, France’s major suppliers of textiles (apparel, technical and household textiles) are countries including:
- Italy (26%)
- Spain (13%)
- China (12%)
- Germany (11%)
- UK (11%)
- Turkey (9%)
- Portugal (7%),
- India (6%)
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