The sportswear market - France

1.2 A global market finally recovering from the health crisis

Global sportswear market size

The global sportswear market size was $***.** billion in ****. The market suffered a huge drop of over **.*% between **** and **** due to the health crisis. However, due to a growing interest in sporting activities and the adoption of a more casual style of dress, this market is regaining its credentials and is expected to grow at a CAGR of *.*% per year to ****. As shown in the graph below, this market should reach $***.** billion by ****.

Estimated size of the global sportswear market World, ****-****, billions of dollars Source: ****

Structural changes have contributed to the market's recovery:

Many schools are making sports compulsory from an early age There is a real movement towards sports such as trekking and climbing Rising medical costs are prompting people to take up sport to stay healthy.

Global production in the sportswear market

The global sportswear market is divided into two production segments:sports footwear on the one hand, and apparel on the other. The diagram below shows the evolution of production of these different products, based on the results of Adidas, one of the sector's leaders. (***)

Evolution of the global quantity produced by the Adidas Group, in sportswear and footwear World, ****-****(***), million units Source: ...

1.3 Global trends and market opportunities

We've taken a look at some of the global trends for the sportswear market up to ****. Mckinsey's'The State of Fashion ****' report shows us the major revolution taking place in the materials used, likely to increase the links between the sports, research and technology sectors. [***]

New, ever more innovative and practice-oriented materials

In the field of e-textiles, researchers are using *D printing to manufacture materials capable of harvesting and storing electricity. Japanese company Xenoma has gone one step further, developing an "electronic skin" that monitors shape and health using printed circuit fabric technology. This type of technology is likely to form the basis of the next generation of sportswear. The global market for smart textiles is expected to grow from $** billion to $*** billion by ****.

Innovations driven by startups

Several players, such as Asics, also support start-ups through reward programs and gas pedals. TheFibres and Textiles Manufacturing Innovation Institute, supported by the US Department of Defense, is looking for new technologies to impregnate fibers and wires for integrated circuits, LEDs, solar cells and other capabilities. In the coming year, they expect to see increased collaboration between start-ups, fiber companies, manufacturers, fashion brands and retailers. [***]

An industry that aims and must aim for ...

1.4 A French market in the post-Covid fray

The French sportswear market is struggling to recover its pre-Covid-** level. In contrast to other essential sectors, where the rebound was driven by strong demand from the French, the textile sector, and sportswear in particular, has no longer become a priority for the French consumer. As a result, the graph below highlights the industry's marked lag, as it struggles to return to its pre-crisis level(***)

Sales of sportswear and sporting goods in France in ****

To produce this graph, we used the Naf **.** code on the INSEE website. This gave us a sales figure for ****, with a base *** index of *.** billion euros. By averaging the monthly indices over the year, we were able to calculate the evolution of sales, year on year.

Size of the French sportswear market (***) France, ****-****, billions of euros Source: ****

In detail, sales of sports footwear jumped **% year-on-year. The trend is similar in textiles (***). Nevertheless, the shock of **** will have been unprecedented, particularlyfor department stores, which will have lost almost **.*% in revenues compared with ****. [***]

Fortunately, online sales will have been a real growth driver in ****. More fundamentally, the French have shown an astonishing ability to adapt and a desire to consume in a context that is not very ...

1.5 French foreign trade in sportswear

In this section, we have used the UNcomtrade database database to estimate French foreign trade. As the site does not contain references solely dedicated to sportswear, we have analyzed and grouped together * categories in order to come as close as possible to the reality of the market. Consequently, we used the following * codes:

******: 'Sports footwear; tennis shoes ****** :'clothing accessories; gloves, mittens and mitts, specially for use in sports' ****** :'clothing accessories; gloves mittens and mitts composition leather'

France's position in European sportswear trade

Value of exports and imports from Europe's leading sportswear countries Europe, ****, millions of euros Source: ****

The above chart shows that France is in *rd position in Europe. It has to be said that it competes more with the Netherlands and Spain than with Italy and Germany. Thus, in ****, the total value of French sportswear exports will amount to *.* billion euros, and imports to *.* billion euros.

Value of sports footwear exports and imports between **** and ****

Trend in the value of exports and imports between France and the rest of the world (***) Fracnce, ****-****, millions of euros Source: ****

France is a predominantly importing country. There are several reasons for this:

Strong domestic demand Very powerful global players Lower production capacity ...

2.1 Typology of French sportswear buyers

Sportswear consumption by age

More than one in two French people, in their everyday lives, bypasses the use of items originally intended for sport to turn them into fashion items(***) and Ipsos. The **-** age group is even more concerned by this attitude, with **% declaring that they dress in this way.

To give an order of magnitude, millenials visit Zara an average of *.* times a year , spending €** per visit[***]

Breakdown of sportswear consumption by age France, ****, % Source: ****

2.2 Consumption criteria and choices: a very marked before/after crisis

Successive crises have not finished changing French consumer habits. The health crisis and the forced closure of retail outlets have had an unprecedented impact on consumption volumes.

In ****, the volume of clothing purchased on the French market fell by **%. In ****, the improvement observed was not sufficient to surpass **** consumption levels, as quantity purchases remained *% lower than in ****[***]

The benefits of sportswear consumption

Depending on the type of item, formal clothing for both women and men lost ground, with falls of ** to **% for raincoats or coats. In some cases, the declines were even more pronounced for women's suits. On the other hand, dresses, men's T-shirts and sweatshirts are on the upswing, revealing the intensification of the "casualization of outfits", which was further reinforced during the health crisis.

Why do the French wear sportswear? France, ****, % Source: ****

Influences that drive French consumption

Store windows are consumers' *st source of inspiration for their sportswear purchases, ahead of friends and family and the street. It also highlights the fact that multisport stores are the preferred place for French people to buy a product with a sporty purpose. (***), but they are clearly outstripped by general fashion retailers.

What are your influences when buying sportswear? France, ****, % Source: ****

The ...

2.3 The sportswear market is driven by the explosion of e-commerce and online sales

A veritable savior of the market during the crisis, and a veritable vector of revolution for the fashion sector over the past ** years, e-commerce and online sales platforms have done the French sportswear sector a world of good.

In fact, according to Fevad, **.*% of Internet users will have bought a fashion or clothing product on the Internet in ****. What's more, the growth in fashion sales is undeniable, especially after the health crisis and the Covid-** pandemic. According to IFM Panel data, online sales of clothing and textiles jumped by **.*% in ****, up from *.*% in ****, to reach **.*% in ****. In value terms, this growth between **** and **** represents **.* billion euros . [***]

So, post-Covid, the French have bought many product categories online. As the diagram below shows, the majority of their purchases concern non-food products: fashion and clothing (***). The average transaction amount has also risen, after eight consecutive years of decline, and now stands at ** euros, up *.*% on ****.

Fashion and Internet users

Positioning of the Fashion and Clothing sector in the share of products and services purchased as a percentage of Internet users France, ****, % of Internet users Source: ****

Leaders and the Internet

Competition is also fierce on the Internet. Although **.* million French people have already purchased sporting ...

2.4 A polluting industry in search of eco-responsibility

The fashion industry in general is notorious for its unsustainable impact on the environment. After agriculture, fashion ranks as the second most polluting industry, accounting for *% of greenhouse gas emissions in **** according to McKinsey's "Fashion on Climate" report. Unfortunately, the sportswear category is one of the most polluting. This exploding trend market is predicted to experience meteoric growth, which will not help meet the objectives of the Paris Accords signed in ****.

In ****, the footwear market was responsible for *% of global carbon emissions, a significant figure when compared to the *.*% of the aeronautics sector. [***]

Two generations overturning the sector's consumer codes

Millennials and Generation Z, born between **** and around ****, are currently overturning the perception of consumption in fashion. These generations were born, or have been sensitized, to climate issues and are extremely aware of the catastrophic consequences of fashion on our environment. [***]

In the luxury sector alone, millennials will represent **% of consumers by **** (***), and this also means that the sportswear sector will have to adapt its strategy. Sportswear has exploded over the past decade with athleisure, streetwear and activewear. However, the trend could fall if sports brands fail to take into account the new values of these generations. According to Business Fashion ...

2.5 The 'Gorpcore' trend: sportswear and activewear at the height of high fashion

The smaller world of fashion and streetwear has caught on to the sportswear trend, and we're seeing the emergence of new styles such as "Gorpcore", i.e. casual wear of an Arc'teryx jacket with Patagonia pants and a pair of salomons. [***]

GORPCORE represents the convergence of outdoor gear and more everyday men's fashion. The term "gorpcore" - coined by fashion magazine 'The Cut de New York Magazine' in **** - has been making a big splash in menswear over the past few years.

Gorp fans love the practicality, but they also appreciate the design touches that brands incorporate into their outdoor gear. La Sportiva trail shoes offer traction but are not just functional black blocks. They come in attractive color combinations of yellow and olive. Snow Peak's MM FR Riders Down Jacket is not only waterproof and windproof, it also has an intriguing asymmetrical closure design.

And while Patagonia can't be mistaken for a Parisian fashion label, its plush fleeces feature such fascinating patterns that vintage models have become collector's items worth nearly $*,***. Such alluring pieces have made gorpcore a strong trend on social media. Instagram pages like @unownedspaces, @***.Index and @Organiclab.zip have over ***,*** followers.

Visual encyclopedias of gorpcore, these accounts ...

2.6 Other trends and opportunities in the French sportswear market

Eco-friendly trends

Today, the rarest products can fetch high prices, as can vintage, which in recent years has breathed new life into the whole market. The future of sportswear has been the subject of controversy, but it seems certain that this trend still has many years ahead of it. The style is constantly revisited in line with the latest fashions and trends, with the aim of appealing not only to young people, but also to stay-at-home moms and executives. The number of luxury brands in the sector is also growing. Finally, manufacturers want to move towards a more eco-responsible sportswear segment, in order to keep pace with demand, as consumers are much more concerned about protecting the planet. [***]

Social shopping and marketplace trends

According to Fevad, **.* million consumers in France buy from their cell phones. As a result, e-commerce players are no longer hesitating to capitalize on this trend. Almost all e-commerce sites are now responsive, so that they display optimally whatever the channel used, whether you decide to view them from a computer or a simple phone.

What's more, marketplaces are also a valuable lever for online sales. Semrush's latest October **** analysis shows that **% of the Top ** most popular e-tailers ...

3.1 Value chain in the French sportswear market

General

The value chain in the French sporting goods market can be broken down into two main categories: manufacturers and distributors. However, as theUnion sport & cycleit is possible to be even more precise. In fact, the association identifies * main types of manufacturer (***):

new entrants: positioned in emerging market segments specialized manufacturers: traditional players, focused on their core market. generalist manufacturers: present in a particular sporting universe, they nevertheless remain more generalist than the previous category.

It then identifies * other players, including * types of distributor:

importers: companies headquartered abroad, but for whom France is a major market (***); agents: exclusive distributors of certain foreign brands on the French market. Their role ranges from communication and marketing to after-sales service (***); multisport importer-distributors: these are international, non-specialized groups with substantial resources, who produce abroad and market their products through sales outlets (***); specialized distributors: with one or more points of sale (***); specialized multisport superstores: specializing in the sale of sporting goods, they now account for **% of the sporting goods market (***).

Source: ****

3.2 The state of French textile production

The production process depends on the product. However, the preliminary stage is always the same: analysis of consumer needs. Next comes product design. Designers and engineers, more or less numerous depending on the technical nature of the product, work together to design the product so that it meets the specifications.

Then comes manufacturing: the chosen materials are cut and assembled. In the case of more specialized equipment, design generally plays a more important role. Products are manufactured by assembling individually produced parts, which requires upstream logistics.

Source: ****

3.3 A post-Covid era driving innovation in supply chain organization

A distribution market controlled by generalists

Decathlon, Intersport, Go Sport and Sport **** have succeeded in establishing themselves throughout the country, totalling thousands of specialist sports stores. Smaller, non-specialized stores are facing difficulties and finding it increasingly difficult to attract customers. this is in stark contrast to specialist stores, which are recording strong growth in excess of **%.

Counterfeiting costs the French market dearly

Counterfeiting is a real scourge in the world of sports. on a European scale, it represents *** million euros, or around *.*% of annual sales. These illegal sales are costly both for the state, in terms of lost revenue (***), and for consumers: counterfeit products may contain toxic products that pose a health hazard. In France, it is estimated that counterfeiting costs manufacturers over *% of annual sales. [***]

Key figures for French distribution

The Observatoire économique de l'Institut Français de la Mode has a panel of distributors, the IFM Panel. The following distribution channels are represented: multi-brand retail, specialized chains (***), distance selling and pure players .

Over this **-year period (***), a **% increase for sports specialists, a **% increase for discounters and a **% increase for pure players. [***]

Logically, the winners in terms of market share by volume are :

CCV/CCO chains Retailers sports specialists(***). The ...

3.4 French sportswear market leaders: Decatlhon and Intersport still in the lead, adapting to "athleisure" and "casual" demand trends

Over the period from May to the end of July ****, the fashion market for all Textile, Footwear and Accessories categories recorded a *.*% decline. The sports and sporstwear market declined slightly by *.*% over the period compared with ****.In a study on the changes brought about by confinement in French people's relationship with sport, Kantar noted that, while many had tried running and fitness, overall **% of French people said they didn't do sport before confinement and wanted to change their habits.A statement that seems to have come true during deconfinement. The Kantar barometer also shows that the French made an average of *.* sports and sportswear purchases over the period. The total value of the market would thus be close to *.*** billion euros. Above all, due to the timing of the sales, the share of purchases at discounted prices fell by *.*% to *.*** billion euros... but the French bought from the back of the aisle. Full-price purchases rose by *.*% to *** million euros.

Market shares of the main sportswear retailers in France

Market share of French sportswear leaders France, ****, % (***) Source: ****

Retail giant Intersport captures **.*% of the market, up from **.*% last year. Decathlon fell back slightly to **.*% market share, while Nike consolidated its third-place position from ...

4.1 Typology of players in the French sportswear market

The association's department store buyers segment sportswear into four entities. Firstly, athleisure, which refers to clothing used for sports or everyday activities (***) and accounts for **% of department store sales in this category.

Next comes the streetwear universe(***), which includes brands such as Obey, Avnier, A Cold Wall, Facetasm, Heron Preston and Kapital, and is aimed at both sports and fashion enthusiasts.

Technical products, which account for **% of department stores' sportswear offer, are enjoying a sales revival thanks to the resumption of outdoor activities (***), while home equipment continues to perform well since the first confinements. NellyRodi sees the hyper-specialization of brands such as Satisfy Running, Pas Normal Studio and Goldwin Official as an asset in this segment.

Finally, although it accounts for only *% of department store sportswear sales, luxury sportswear is presented as the fourth high-potential segment. "In this market, which is driven more by emotion than by function and use, collaborations play an essential role for the customer, while also representing a category that contributes significantly to store margins". The Ricky Segal x Lacoste partnership being one example cited. [***]

Source: ****

4.2 Different prices in the French sportswear market

Identify the different price ranges on the market

First-price brands: these generally offer affordable products for everyone, without any particular visual distinction. This enables them to target a wide audience at prices ranging from €* to €**, depending on the product. Low-cost brands include Artengo and Kalenji, for example. Mid-range brands: these offer products that are sometimes of better quality than those of premium brands. Sometimes, the price is higher because of the brand's prestige. Prices range from €** to €**, depending on the product. Major brands such as Adidas and Nike can be found in this segment. High-end brands: offering the highest prices of the * groups, these are often brands selling specialized, more technical products. Not very affordable, they focus on quality. They may also sell lifestyle products, i.e. products that fit into and define the consumer's chosen lifestyle. In this category, prices start at €*** and can easily rise to €***.

Low prices drive the sportswear market

It's interesting to realize that in the sportswear market, competitiveness is often achieved through knock-down prices. Indeed, even without sales, the entire sportswear market is more prone to promotions than the textile market as a whole. Over the quarter, *** million were made on back-of-shelf sales and *.*** billion ...

5.1 Pollution and environmental protection

In ****, France's "anti-waste" law will ban the destruction of unsold clothing by brands and retailers nationwide. This shows that brands are beginning to be held accountable for their impact on the environment, and will now reap more benefits by changing their model now rather than continuing to operate with little regard for ecology.

The European Union has already created a plan since **** in which textiles will be a key element of their "priority product category for the circular economy plan in future decades". So, being faced with a future and potential political threat, brands are working with governments to drive change. In August ****, at the G* summit, over *** brands (***) signed, with the support of Emmanuel Macron, the "Fashion Pact" aimed at reducing fashion's impact on the environment with measures following the Paris Agreements and the United Nations Sustainable Development Goals. Now that fashion and sportswear leaders are working on environmental issues with political oversight, it's clear that the future of sportswear will be built alongside the notion of sustainability.

This means encouraging sustainable practices and consumption. Policymakers have a key role to play in driving decarbonization across the industry, and governments have already begun to encourage sustainable practices and responsible consumption. ...

5.2 Clothing trade and manufacture

The trade and manufacture of sportswear are not subject to any particular regulations , nor do they differ from the trade and manufacture of clothing in general. In addition to the legal and fiscal legislation governing these activities, we can cite the following, as she indicates Crédit Agricole:

No specific training or qualifications are required for this activity, although they are recommended, Registration with the Registre du Commerce et des Sociétés is mandatory, Law on the modernization of the economy "The authorization threshold for the establishment and extension of commercial premises has been raised from *** m² to *,*** m². The criteria for commercial density by zone (***) have been abolished", "payment terms are limited to ** days from the invoice date", sales periods have been extended to * weeks, and commercial lease rents have been indexed to the commercial rents index

The same applies to the manufacture ofclothing. In particular, it is subject to :

Prior registration with the Chambre des métiers, as this is a craft activity, Clothing labeling rules, in compliance with European regulation ****/****, Recycling and waste treatment standards, in accordance with articles L ***-**-* and R ***-*** of the French Environment Code)

6.1 Segmentation of players and their sales

• Decathlon Groupe
• Intersport France
• Lacoste Groupe
• Salomon (Amer Sport groupe)
• Doudounes JOTT
• Patagonia
• Fusalp
• Palm Angels (New Guards Group)
• Adidas
• Circle Sportswear
• Skis Rossignol
• Nike