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CBI MARKET SURVEY: THE OUTERWEAR MARKET IN FRANCE CBI MARKET SURVEY THE OUTERWEAR MARKET IN FRANCE Publication date: April 2006 Report summary This CBI market survey discusses, amongst others, the following highlights for the outerwear market in France: • Total spending on clothing in France amounted to € 31.9 billion in 2005, of which 84% concerned outerwear. Average spending per person is lower than the other major EU markets (UK, Italy and Germany). Consumer clothing expenditure grew until 2004 and levelled off in 2005. • Outerwear imports into France increased 11% during the period 2000-2004 to € 11 billion or 14% of EU imports of outerwear in 2004. 41% of French imports came from developing countries. • Imports from developing countries (DCs) came for 51% from Asia, for 43% from Mediterranean countries and for 6% from ACP countries. Imports from Asia showed the biggest growth, namely 13%, mainly caused by increased imports from China and Bangladesh; imports from Mediterranean countries dropped by 4%, mainly caused by lower imports from Morocco and Tunisia. This survey provides exporters of outerwear with sector-specific market information related to gaining access to France. By focusing on a specific country, this survey provides additional information, complementary to the more general information and data provided in the CBI market survey The outerwear market in the EU’ which covers the EU in general. That survey also contains an overview and explanation of the selected products dealt with, some general remarks on the statistics used as well as information on other available documents for this sector. It can be downloaded from http://www.cbi.nl/marketinfo 1. Market description: consumption and production Consumption Total market size Total spending on clothing amounted to € 31.9 billion in 2005, of which 82% concerned outerwear. Average spending per person is lower than the other major EU markets (UK, Italy and Germany), but higher than South European countries, like Spain, Portugal and Greece. Consumer clothing expenditure grew until 2004 and levelled off in 2005. Compared to consumers in other major EU countries, French consumers spent (relatively) least on clothing: only 3.6% of their budget went to clothing in 2005. The French economy generally grew well towards the end of the last decade, but it has suffered since 2001 as the global economy has slowed. The recovery of the French economy, as expected by many, is far from impressive and below experts’ expectations. Consequently, French consumers are cautious and would rather wait until their purchasing power really grows before spending more on apparel. However, fashion plays an important role in purchasing decisions in particular for women. These dual aspects led to a tendency to favour cheaper, more comfortable, practical and casual garments. Table 1.1 Consumer expenditure on outerwear in France in € million, 2002-2007 2002 2003 2004 2005 e 2006 f 2007 f Women’s outerwear 13,024 13,354 13,468 13,078 13,260 13,600 Men’s outerwear 7,765 7,987 8,103 8,056 8,225 8,500 Children’s outerwear 4,574 4,818 4,924 4,930 5,045 5,160 - Girls’ outerwear 2,065 2,168 2,233 2,223 2,286 2,355 - Boys’ outerwear 1,578 1,675 1,689 1,698 1,767 1,790 - Babies’ outerwear 931 975 1,002 1,009 992 1,015 Source: CBI Market Information Database • URL: www.cbi.nl • Contact: [email protected] • www.cbi.nl/disclaimer Page 1 of 12 CBI MARKET SURVEY: THE OUTERWEAR MARKET IN FRANCE Leather garments 325 300 280 275 270 290 Total outerwear 25,688 26,459 26,775 26,339 26,906 27,550 Yearly change + 1.4% + 3.0% + 1.2% - 1.6% + 2.2% + 2.4% e= estimates; f= forecasts Source: Conjuncture et d’Observation Economique (CTCOE) and Euromonitor The French market for women’s outerwear declined by 3% in 2005 to reach a value of € 13.0 billion. Over the period 2002-2004 value sales increased by 3.4%. The share of women’s outerwear in total outerwear expenditure decreased slightly in the period under review to 49.7% in 2005 against 50.7% in 2002. The men’s clothing market in France was sluggish for many years, although the available range of clothing became more attractive in recent years and young men have become more fashion- conscious, resulting in 4.4% higher consumption during the period 2002-2004. France has a high consumption of babies’ wear in the EU with € 1.0 billion in 2005 or 3.7% of total outerwear consumption, an average spending of € 630 per child. In the children’s sector, of which 10/14 years was the largest sector in value terms, reaching a third of total consumption in this sector, the per capita spending on children’s clothing, including sportswear and clothing accessories, amounted to an average of € 500 per girl and € 325 per boy aged 3-14 years. The French outerwear market is forecast to increase annually by 2.3% from 2005 to 2008 to reach a value of € 28.2 billion. Product groups Purchases in volume of women’s formal clothing decreased in the period 2001-2005, caused by decreased purchases of dresses, woven blouses, tailored trousers and indoor jackets, while purchases of coats stabilized to the detriment of purchases of women’s basic leisurewear (products like T-shirts, sweatshirts, bodies and jeans) and of casual wear (outdoor jackets, leisure trousers, sweaters). Purchases of active sportswear stabilised. At the moment of compiling this survey, detailed figures about clothing consumption were not available. Based on 2004 figures the following estimates can be made: Market shares (in terms of value) for women accounted for 18% for trousers. Jeans for women reached 23.5 million pairs in 2005 (average price € 33.70) and other trousers 60 million pairs (average price € 26.60). Trousers benefit from the new casual and sporty trend that favours denim and other cotton trousers. Other market shares (in terms of value) were: shirts and blouses (6%), coats and outdoor jackets (12%), dresses and skirts (9%) and knitwear (22%). Trousers for men retain the largest share of the market with an expected value share of 25% of the market. Jeans for men reached 29 million pairs (average price € 38.40) and other trousers 25 million pairs (average price € 35.10). Other market shares (in terms of value) for men were T-shirts and sweatshirts (14%), suits, indoor jackets and blazers (11%), coats and outdoor jackets (9%) and other knitwear (12%). Knitwear and other tops showed the fastest growth. This reflects the trend in casual and sporty. Consumption (in terms of value) of the major product groups in children’s wear was: outdoor jackets (16%), jeans (8%) and other trousers (12%), T-shirts and sweatshirts (24%). Active sportswear expenditure had an important market share of 19% in 2005. Market segmentation The general criteria for market segmentation of outerwear are: by demographic factors, such as age, gender etc.; by type of product and type of activity resulting in specific clothing behaviour, like formal, casual, leisure and active sports dress; and by product/quality ratio. Other criteria are based on special events (weddings, parties, communion etc.; in these cases dress can be considered as formal wear) or other circumstances, like maternity wear. Segmentation by demographic factors The size and age structure of the population is one of the basic determinants of how much will be spent on clothing. • The French population is increasing at a steady pace from 58.5 million in 1999 to 62.9 in 2006. Growth has been stifled slightly due to a fall in the number of births and an increase Source: CBI Market Information Database • URL: www.cbi.nl • Contact: [email protected] • www.cbi.nl/disclaimer Page 2 of 12 CBI MARKET SURVEY: THE OUTERWEAR MARKET IN FRANCE in the number of deaths. A contributing factor is that there were less woman at the child- bearing ages of aged 20-40. Nevertheless, the French population is projected to increase to 65 million by 2050, an increase of around 3%. • Just like in other major EU countries, the category below 20 years has decreased in France, while the categories 40 and older have increased substantially. In 2000 about 40% of the total population was older than 45. Following the trend in other European countries of an ageing population, in 2006 16.2% of the French population are 65 or over. • Another important demographic development is the increase of one- and two-person households. The persons in such households do not have many household or family obligations, so they have a lot of leisure time. Besides that they have rather high incomes. Both factors are stimulating clothing consumption. Segmentation by type of product and type of activity In general, the outerwear market can be divided into several segments based on type of product combined with type of activity, resulting in a specific clothing behaviour. The active sports segment (now 5% of total men’s and 5% of total women’s outerwear market) will continue to expand its influence on the leisure (segments of resp 27% men’s and 26% women’s outerwear) and casual (segments of resp 31 and 29%). Formal wear (resp 37% and 40%) will lose out to these sectors but ‘smart casual’ will be further influenced by the workplace. Trends in consumption • The French clothing and textile industry remains highly creative. However, despite the strong French apparel tradition, the recent development of major foreign players on the market, such as H&M and Zara, has proved that taste and ideas in fashion can come from abroad.