The women's ready-to-wear market - France

1.2 The global market for women's ready-to-wear clothing

The global women's apparel market is growing, but this growth is primarily driven by the dynamic Asian and U.S. markets. The global women's apparel market was estimated to be worth US$*.*** billion in **** and is expected to grow at a CAGR of *.*% between **** and ****.[***] However, this estimate goes beyond the women's ready-to-wear market as it takes into account lingerie, footwear and accessories.

The global women's ready-to-wear market, excluding lingerie, shoes and accessories, was estimated to be worth $*** billion in **** and is expected to reach $*** billion by ****, as shown in the chart below[***]

Global Women's Ready-to-Wear Market Size World, ****-****, US$ billion Source Market Research, Mode in Textile, Technavio The global women's ready-to-wear market, like the French market, is highly fragmented and dominated by fast fashion. Alongside mass-market retailers (***).

The global market is characterized by several trends common to the French market, notably the development of responsible ready-to-wear, sportswear and online ready-to-wear sales. The strong demand for tops and dresses by women aged ** to ** will also be a driver for the sector.The Covid-** crisis, however, has had a major impact on the women's ready-to-wear market and on apparel in general. The sector has been very affected by the health crisis ...

1.3 The French market in difficulty

The French women's ready-to-wear market is experiencing strong structural difficulties, affecting the mid-range segment in particular. The year **** had rekindled hopes of a recovery, but the market's decline became apparent once again in ****. In ****, sales of women's ready-to-wear in France were thus estimated at**.* billion euros.

The health crisis has weighed heavily on the clothing sector (***), and the weight of women's ready-to-wear in total fashion spending declined somewhat between the end of **** and the end of ****, in one year, from **.*% to **.*%[***].

French sales of women's ready-to-wear France, ****-****, in billions of euros Source: ****

The market is characterized by a decline in domestic consumption and structural difficulties, particularly in the mid-range, which are weighing on the sector. However, international sales are helping to limit the market's decline.

In ****, the major trends in this market are the development of the social and environmental commitment of brands and the rise of sustainable fashion and the digitalization of the market, both through the increase in purchases on the Internet and through the influence of digital platforms (***) for consumers.

1.4 Foreign trade in women's ready-to-wear clothing

Women's ready-to-wear imports can be estimated from the share of imports from China. Indeed, **.*% of women's ready-to-wear imports came from China in **** and this share amounted to €*,***.* million according toFashion Network. The amount of imports can be obtained by the following calculation: *** * ****.* / **.*.

Therefore, French imports of women's ready-to-wear can be estimated at *.** billion euros in ****, down -*.*% compared to ****.

Main sources of women's ready-to-wear imports France, ****, in Source: ****

Furthermore, while China remains the main origin of French women's ready-to-wear imports with almost **% of imports, low-cost production is shifting from China to Bangladesh, India and Pakistan. Indeed, imports from China declined by *.*% in **** while those from Bangladesh increased by **.*%.[***]

International sales rose *.*% in ****, their highest increase in * years. Women's ready-to-wear exports thus reached €*.*** billion in ****[***]

Exports of women's ready-to-wear France, ****-****, in billion euros Source: ****

In addition, the chart below describes the main destinations by value of women's ready-to-wear exports by France:

Main destinations of women's ready-to-wear exports France, ****, in % Source: ****

The United Kingdom, which imports **.*% of France's women's ready-to-wear exports, leads the way, followed by Italy (***).

1.5 The effect of Covid-19

The Covid-** crisis has strongly impacted the ready-to-wear market, as shown in the chart below, which illustrates the evolution of retail sales in value of clothing in specialized stores (***). Due to the qurantine and drop in store traffic, the turnover of specialty stores was divided by * between April **** and April ****.

Sales index for ready-to-wear specialty retailers France, ****-****, base *** in **** Source: ****

The Covid-** crisis has accelerated the difficulties of the sector, which is confirmed by the succession of judicial reviews, such as La Halle, Sym and Camaïeu[***].

2.1 Consumer profile

Who is buying?

In ****, the average budget per woman decreased by *%, from *** to *** euros, which is indicative of the deconsumption of ready-to-wear that will be explored in more detail in section *.*. Furthermore, the graph below shows that the age categories that spend the most on ready-to-wear are **-** year olds and to a lesser extent the under ** and **-** year olds. [***]

Average budget dedicated to ready-to-wear per woman and per age group France, ****, in euros Source: ****

In ****, a new survey was published regarding the budget, and it shows that women buy clothes more often (***). Age is always a factor of influence on the average basket, it increases according to the generations: it was thus ** euros for the less than ** years and it peaked at ** euros for the **-** years[***].

What do they buy?

Price is by far the first criterion taken into account by French women for their ready-to-wear purchases, since **% of French women consider it as a determining factor. Quality is the second most important purchase criterion, with **% of respondents giving it importance. To a lesser extent, consumers pay attention to the product's lifespan, origin, brand and materials used

Main criteria for buying clothes France, ****, in percent Source: ****

In terms ...

2.2 Determinants of demand

Source: ****

For their ready-to-wear purchases, French women are primarily inspired by their entourage (***) and everyday people.

François-Marie Grau, General Secretary of the French Federation of Women's Ready-to-Wear, states: "French women are more inspired by their relatives and other people of everyday life and less by people who are supposed to make fashion".[***]

This is also confirmed by the graph below which shows that **% of French women are influenced by their close circle of friends and family, followed by ready-to-wear brands (***).[***]

Main sources of influence for ready-to-wear purchases France, ****, in % Source: ****

More specifically, it appears that young people are more influenced by external elements than their elders. Indeed, the survey below highlights that, whatever the source of influence, the rate of respondents claiming to be inspired by it decreases as age increases. The communication strategies of ready-to-wear brands, whatever the medium (***) are therefore more likely to influence the purchases of younger generations.[***]

Main sources of influence on ready-to-wear purchases according to age France, ****, in % Source: ****

Seasonality of sales

The women's ready-to-wear market is characterized by strong sales seasonality, due to weather conditions on the one hand and sales and promotions on the other.

Indeed, weather conditions have a strong influence on ...

2.3 Demand trends: CSR, a major issue

Ready-to-wear brands are facing a phenomenon of deconsumerism that is growing: **% of French people bought less clothing in ****.[***] In ****, this figure even reached **% for the entire population and **% for women.

The first reason why the consumption of women's ready-to-wear clothing is decreasing is the decline in household purchasing power and the resulting arbitrages on spending items. Indeed, the share of clothing in spending has fallen from *.*% in the ****s to *.*% in ****. The trade-offs have favored housing, heating or even leisure at the expense of the ready-to-wear sector.

In addition, consumers are increasingly choosing to regulate their purchases and prioritize quality over quantity. fast fashion is now opposed by Slow Fashion and a growing awareness of environmental and social issues on the part of consumers.

A Yougov survey conducted in **** highlights the growing attention of consumers to the clothes they buy. Indeed, **% of those surveyed have already reduced their clothing purchases for ethical or ecological reasons and **% intend to do so. If in practice, a majority of consumers do not change their behavior, most French people (***) are in favor of a change in the production policy of brands in the textile sector in favor of a more ethical manufacturing of their ...

3.1 Ready-to-wear value chain

The women's ready-to-wear market is divided into the following stages. Using raw materials, textile producers manufacture and supply these textiles to ready-to-wear producers. These ready-to-wear producers make collections of products that are then distributed through various channels to French women.

Source: ****

The production of women's ready-to-wear distributed in France is mostly subcontracted by the ready-to-wear actors and concentrated abroad. This relocation is explained by the lower production costs and the specialization that some countries have acquired. **% of clothing sold in Europe is manufactured on the Asian continent, particularly in China, India or Pakistan. The majority of players in women's ready-to-wear are both producers and distributors and use subcontracting to produce their items at lower cost. H&M for example works with more than *** different suppliers. [***]

It is mainly the luxury brands that maintain French production, even if relocation is increasing in the luxury sector. The production of Chanel, for example, is mainly concentrated in France, as is Hermès [***]. In this study, the information concerning the luxury sector will not be deepened, for more information on this subject, it is possible to redirect to "The women's market of luxury clothing in France" report

The specialized chains are also divided according to ...

3.2 Distribution

The following figures are not specific to women's ready-to-wear, but to the whole category, without making a distinction of gender because these figures were unavailable, we have however considered useful to provide the following:

The production in value

If consumer demand for sustainable fashion is growing, and in particular the demand for local production, the supply does not seem to follow this trend. Indeed, the French production of ready-to-wear clothing seems to be diminishing as illustrated in the graph below.

French ready-to-wear production France, ****-****, base *** in **** Source: ****

In ****, the total production of the clothing industry was worth *.* billion euros [***]. This value has only decreased: -** points between **** and ****, and -** points between **** and ****, to reach a production value of *.* billion euros in ****.

Number of companies and employees

Number of companies and employees related to NAF code **.**Z "Retail sale of clothing in specialized stores France, ****-****, in thousands Source: ****

In ****, ACOSS counted **,*** companies and ***,***,*** employees in the industry related to NAF code **.**Z "Retail sale of clothing in specialized stores". There was stability in the number of companies and employees between **** and ****, despite a downward trend of -*% and -*% respectively.

3.3 Distribution: growth in e-commerce

Store or Internet? A growth of e-commerce

Women's ready-to-wear distribution France, ****-****, in percent Source: ****

Marked by the health crisis and confinements, the year **** pushed customers to turn to the internet for their clothing purchases, indeed, the share of clothing sold on the internet rose from **.**% to **% between **** and ****, an increase of almost ** points. According to Kantar, e-commerce sites have gained *.* million customers over this period.

E-commerce is becoming more and more attractive, with a **-point increase in market share in * years, between **** and ****. In addition, in ****, click & collect would have seen a **% increase compared to ****, that year having already seen significant growth between **** and ****, of +**%[***].

Furthermore, in ****, fashion and clothing products were the most purchased products in e-commerce, since it concerned **.*% of Internet users[***].

The detail of distribution channels

The graph below illustrates the distribution of women's ready-to-wear sales according to the different distribution channels:

Breakdown of women's ready-to-wear sales by distribution channel France, ****, in % Source: ****

City center and shopping mall chains account for **.*% of sales in value, almost half of the market. Multi-brand independents, meanwhile, account for **.*% of sales, closely followed by out-of-town chains, such as Gémo or Kiabi, which hold *.*% of market share.

It should be noted ...

3.4 The players: a highly segmented market

The actors of the women's ready to wear

The women's ready-to-wear market is highly segmented, with a multitude of players. We can cite the podium in market share of players in spending in the last quarter of ****[***]:

Zara (***) H&M (***) Kiabi (***)

We can also mention Camaïeu, which, before its receivership in ****, was first in the ranking with *.*% of the shares a year earlier, while in **** they fell to *.*%.

Other brands can be mentioned according to their price range[***]:

Low-end: Boohoo, Shein, PrettyLittleThing, Kiabi... Mid-range: Bershka, H&M, Zara, Bershka, Mango, Pimkie, Etam, Pull&Bear, Stradivarius... Upscale: The Kooples, Claudie Pierlot, Sandro, Ba&sh, Sézane, Maje... Luxury: Dior, Chanel, Louis Vuitton, Yves Saint Laurent, Hermès, Prada...

E-commerce players

Women's ready-to-wear online purchases are divided between pure players, such as Asos or Zalando (***).[***]

Distribution of online purchases by distribution channel France, ****, in % Knitwear Federation

Market share by traffic of fashion e-commerce sites France, ****, in percent Source: ****

FEVAD revealed the rankings by category of e-commerce sites with the most traffic, and regarding fashion, on the podium we find Amazon (***), which occupied, in ****, **.*% of the fashion e-commerce traffic. Vinted, a second-hand site, has been evolving enormously for * years, already before the crisis ...

4.1 Types of products

Women's ready-to-wear consists of two main categories: outerwear and small outerwear which can be broken down and summarized as follows.

Outerwear includes:

protective clothing: coats, raincoats, anoraks, parkas, windbreakers, jackets, blazers, vests, etc. pants and jeans: pants, shorts, Bermuda shorts, overalls, coveralls, jeans, leggings skirts and dresses: dresses, skirts, suits, ensembles

Small outerwear includes:

Lightweight pieces: blouses, t-shirts, camisoles, tank tops, polo shirts, bodysuits thicker pieces: sweaters, cardigans, sweatshirts, vests sportswear: tracksuits, sports pants, sports tops, leotards, sportswear, swimwear. [***]

4.2 The prices

General price trends

The graph below illustrates the evolution of consumer prices for women's clothing (***), made-to-measure or ready-to-wear. Although this category does not correspond exactly to the scope of the study, the graph reveals a dominant trend in ready-to-wear. Indeed, prices for women's ready-to-wear have been stable for several years. Two main factors explain this stagnation: the increase in imports and the multiplication of ready-to-wear chains have strongly limited the evolution of prices. [***]

Consumer price index for women's clothing France, ****-****, base *** in **** INSEE

Price ranges: from entry-level to luxury

Due to the high fragmentation of the women's ready-to-wear market, there are many price ranges with blurred boundaries.

However, it is possible to identify * main categories:

Entry-level: Primark, Kiabi, Gémo Mid-range: H&M, Zara, Mango High-end: Sandro, Maje, Comptoirs des Cotonniers, Bash, Claudie Pierlot Luxury: Dior, Prada, Chanel

Because of the price differences, the reasons for buying in each ready-to-wear category are different. Indeed, while price and good value for money are the main reasons for buying in entry-level brands, mid-range and high-end purchases are mostly motivated by the style of the products. Finally, in the high-end segment, purchases are mainly due to a certain quality. [***]

The prices charged by ...

4.3 Supply-side issues and trends

Major issues

Among the strategic themes considered important by the companies in the sector, social and environmental commitment comes in first place, with all the professionals questioned considering it to be a crucial subject in the market. The implementation of a well-defined data strategy is also considered a necessary element for a ready-to-wear company. This refers to the fact of structuring and analyzing customer data before implementing concrete actions based on these analyses.

Is this a strategic topic for you? France, ****, as a % of total Source: French Fashion Institute CSR

Traceability and transparency of the supply chain have become major issues in the women's ready-to-wear sector. Ready-to-wear companies are thus increasingly analyzed in relation to their social and environmental commitment. For example, the Fashion Transparency Index evaluates the transparency of brands regarding their social and environmental policies. In ****, H&M was in the lead with a score of **%, followed by C&A (***). [***] Similarly, labels and certifications are multiplying in the ready-to-wear market, in response to the growing desire of consumers to be informed about the responsibility of products. Ecolabel, GOTS, OCS or BioRe are examples of labels. [***] The major challenge of the sector for women's ready-to-wear brands today is therefore the ...

5.1 Regulations

In-store sales

In-store sales are subject to certain rules summarized by Legalplace:

Safety and accessibility standards[***] Mandatory displays for the attention of employees Indication of prices inside and outside the store in euros and including VAT Mandatory contribution to the SACEM if music is played in the establishment

Labeling of clothing

The labels of the clothes must include :

The composition label: It is compulsory and must be fixed on the product, legible and written in French language. The care label: It is optional but allows to avoid engaging the responsibility of the professional in case of problem related to the care. The size designation: It can be in numerical form or in letters.

[***]

Made in France and labels

The mention "Made in France" is obtained by respecting the rules of non-preferential origin applied to the import by the customs services. In short, the product takes the origin of the country where it has undergone the last substantial transformation. [***]

The Made in France labels guarantee greater visibility on the origin of products. For example, the France Terre Textile label guarantees that at least **% of the manufacturing steps were carried out in France [***]

The Made in responsable website describes several textile labels ...

5.2 Proposition de loi sur l'impact environnemental de l'industrie textile

Le ** janvier ****, une proposition de loi a été déposée à la présidence de l'Assemblée nationale. Cette loi vise à atteindre plusieurs objectifs cruciaux : réduire l'impact environnemental de l'industrie textile, améliorer la sensibilisation des consommateurs aux impacts de la mode éphémère, interdire la publicité des produits et entreprises de mode éphémère, et ajuster l'écocontribution des entreprises selon leur impact environnemental pour minimiser la différence de coût entre les produits de fast fashion et ceux plus durables.

La fast fashion, caractérisée par une production massive et renouvelée de nouveaux modèles de vêtements, est exemplifiée par des entreprises comme la chinoise Shein, qui introduit plus de * *** nouveaux modèles par jour. Cette industrie, responsable de près de **% des émissions globales de gaz à effet de serre, dépasse même les émissions combinées des secteurs aérien et maritime, avec des projections indiquant que ce pourcentage pourrait atteindre **% d'ici ****. En réponse aux impacts environnementaux, sociaux et économiques négatifs, des législations comme la loi "Anti-gaspillage" de **** et la loi "Climat et résilience" de **** ont été mises en place, introduisant des incitations à la réparation ...

6.1 Segmentation

Several specialized and non-specialized giants stand out in the French ready-to-wear market:

the Mulliez family association (***) the Beaumanoir family group (***) the Inditex group (***) the Hennes & Mauritz group (***) the LVMH group (***) : kering group (***) : sMCP group (***):

The table below also reflects the strong fragmentation of the market and describes, in a non-exhaustive way, its segmentation:

• Inditex groupe (Zara)
• Camaïeu
• SMCP Groupe (Sandro)
• Chanel
• Zalando
• Kiabi Europe
• La Halle
• Beaumanoir Groupe
• GEMO (Eram Groupe)
• H&M Groupe
• Comptoir des Cotonniers (Fast Retailing Group)
• The Kooples Diffusion
• Maus Frères
• SRP group (Showroomprivé)
• Naf Naf
• Les 3 Suisses
• Doudounes JOTT
• Mytheresa
• Blanche Porte
• Galeries Lafayette
• Printemps Groupe
• SMCP Groupe (Claudie Pierlot)
• SMCP Groupe (Maje)
• Zadig et Voltaire
• Kookaï
• Indies Groupe
• Forever 21
• Grain de Malice
• Maison Montagut - Le Chatelard
• Isabel Marant
• Vinted
• Sonia Rykiel
• Abercrombie & Fitch
• American Eagle Outfitters
• Ann Taylor (Ann Inc.)
• Pierre Cardin
• Eric Bompard
• Massimo Dutti (Inditex groupe)
• Almé
• Levi’s
• Paule Ka
• Esprit
• Des marques et vous - Devianne
• Sessun
• Jennyfer
• Maison 123
• Images corp