The following research report contains market research, analysis, statistics and business intelligence relating to research on Children's Wear Industry In France. 
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ABSTRACT
In 1998, statistics showed that there were approximately 11.1 million children (France's total population is 60 million) 14-year-old and under in France. The French children's wear market is divided by age into two categories: infants to two-year-olds and 3-to 14-year olds. However, official statistics for imports and exports are only available for clothing for infants to two-year olds. Above the age of two, French customs data on children's wear are included in two categories: men's and boys' clothing and women's and girls' clothing.
In 1998, the French children's wear industry was composed of about 117 companies employing a total of 7,600 persons. In 1998, French companies generated a sales volume of USD 4.3 billion. French manufacturers are continually creating new product lines, and they generate more than 50 percent of their sales in foreign markets.
Children's wear imports in 1998 amounted to USD 441.1 million, while exports for the same period were USD 138.8 million. The U.S. share of French children's wear imports in 1998 was 1.2 percent (USD 5.7 million). Clothes produced in Mediterranean and Asian countries continue to maintain a strong presence in the French market due to extremely low production costs in those countries.
French children are very receptive to U.S. fashions and are heavily influenced by American styles. According to analysts, American companies are expected to increase their market share in this very promising subsector. Numerous well-known American brands are already present and successful in France.
A. MARKET HIGHLIGHTS & BEST PROSPECTS
* Market Profile
In 1998, France's population of children aged 14 years old and younger was 11.1 million. The age distribution of these children is as follows:
Infants: 0.7 million Age 1/4: 2.8 million
Age 5/9: 3.8 million
Age 10/14: 3.8 million
Over the last few years, the purpose of sports and athletic clothing items has changed, from being worn exclusively for sports to being worn as everyday wear, particularly among children. In addition, children are very influenced by American trends, and American sportswear with names of football teams or American colleges is popular among teenagers. Consequently, for several years, French children have been particularly fond of sportswear (T-shirts, sweatshirts, baseball caps, polo-shirts) with American sports team logos. Additionally, the growing popularity of baseball, football, and basketball in France (particularly among teenagers) has heightened demand for such items. This is why sportswear retailers now have children's corners in their stores. For example, Decathlon, the largest sports retailer in France, has enjoyed increases in sales of children's clothing.
Over the past few years, sales of babywear have been stable. However, due to the number of births expected in 2000, babywear sales are expected to grow.
In addition, in 1998, sales of coats and parkas grew significantly, while sales of jeans and dresses declined slightly.
* Statistical Data
USD millions
1998 1999 2000 Avg. Annual growth rate for following 2 years
Import market 441.1 470.9 498.0e 6
Local production 228.0 296.6 305.5e 3
Exports 138.8 144.3 150.1e 4
Total market demand 590.3 623.2 653.4e 3
U.S. Imports 5.7 7.0 7.4e 2
Exchange Rates 1998: 6.0 1999: 6.0 2000: 6.0
Inflation Rate Assumed: 3 %
Note: Official statistical data is available only for clothing for children 2 years old and younger. Above the age of two, French customs data on children's wear are divided into two categories: men's and boys' clothing and women's and girls' clothing. Consequently, it is difficult to account accurately for imports and exports for children older than two years. However, according to market specialists, the children's wear market for the age group infants to two-year olds represented about 34 percent of the total children's wear market in 1998.
1998 Import Market:
According to French customs and the children's wear trade association, the major sources of children's wear, in percentage terms, are Portugal: 17.4%; China: 16.8%; Morocco: 14.0%; Tunisia: 10.7%. The United States accounts of 1.3% of the import market.
Receptivity code (1-5): 4
Range: 5 (extremely receptive) to 1 (not receptive)
French children are greatly influenced by American trends. As a result, U.S. imports are expected to grow over the next few years.
* Best Sales Prospects
According to market studies, the following characteristics of children's clothing offer the best prospects for manufacturers and exporters:
Colors: Natural tones, white, gray, dark with fluorescent colors (red, orange, blue, pink), bronze, green.
Fabrics: Natural fibers, cottons, grainy crepes. Fabrics that are easy to wear, practical, and modern (jersey, cotton flannel, cotton, stretch, and synthetics). Technical fabrics, polar fleeces.
Products: Quilted parkas, hooded jackets, quilted coats, biker jackets, long skirts and cloaks, multi-pocket jackets, jackets with Velcro strips, zipped skirts.
Details: Contrasting linings, functional details, self-adhesive closures, zippers, drawstrings, pockets.
B. COMPETITIVE ANALYSIS
1. Advertising. One of the key factors in establishing a brand in France is to have an adequate advertising budget. American companies should be able to promote their image effectively and reinforce their position with proper and sufficient advertising. New products should be aggressively marketed to appeal to French children's tastes and to develop fashion preferences.
The media (publications and television) have a tremendous impact on French children at an early age. They are an excellent means for promoting products. According to analysts, French children spend an average of two hours per day watching television.
2. Credit/delivery terms. Another important factor for foreign firms is the ability to offer credit terms and reordering services similar to those of French competitors. A European warehouse or logistics facility is an additional advantage in meeting short-term delivery requirements.
3. Price. Price is also a key factor. If prices are competitive, U.S manufacturers will be able to penetrate the French market much more successfully.
4. Clothing characteristics. Products destined for the French market should take into account to the greatest extent possible both the child's and the parents' point of view. From the child's point of view, U.S. manufacturers should offer an attractive collection emphasizing colors. Children are attracted mainly by color, design, pattern, and comfort. From the parents', particularly mothers', point of view U.S. manufacturers should take into consideration French preferences, such as clothing that is easy to clean and which requires no ironing. In addition, parents are also attracted to the quality of the product. As such, the quality/price ratio is extremely important.
* Domestic Production
In 1998, the French children's wear industry was comprised of 117 companies employing a total of 7,600 workers. The majority of these French companies are located in the Loire area, Nord-Pas de Calais region, the center of France, and the Paris area.
In 1998, French companies generated a sales volume of USD 4.3 billion (USD 800 million for clothes for infants/two-year-olds and USD 3.5 billion for clothes for 3/16-year-olds). Many French companies have set up manufacturing facilities in countries with lower labor costs (Portugal, Morocco, Tunisia, and Turkey and more recently in Eastern Europe).
French production enjoys a strong image for both creativity and quality. This explains why many French companies generate more than 50 percent of their sales volume in foreign markets. In 1998, total French exports of children's clothing (infants to two-year olds) amounted to USD 183.8 million. French exports went principally to Belgium, Italy, the United Kingdom, and Germany.
* Third-Country Imports
In 1998, total children's wear imports to France amounted to USD 441.1 million. Most imports came from countries with low production costs.
Portugal held an important share of the French market in 1998 (17.4 percent of total imports), followed by Morocco (14.0 percent) and Tunisia (10.7 percent). Imports from Asian countries also showed good results, particularly China, which represented 16.8 percent of the total French import market.
* U.S. Market Position
In 1998, U.S. imports of children's wear reached USD 5.7 million. U.S. imports are expected to grow in the coming years, given the fact that French children are greatly influenced by American trends and television. The easy-to-wear clothing of American colleges and the "streetwear"of large cities appear especially attractive to them. As a result, U.S. products, such as T-shirts, polos, and jackets with names of football teams American colleges, or sports companies are in high demand. Proof of the success of American brands in France can be seen in the recent opening of a Gap store for children in Paris.
In light of these trends, there appear to be numerous opportunities for U.S. companies to penetrate the French children's wear market successfully. In choosing clothes for export, firms should be careful to select products combining both comfort and fashion.
C. END-USER ANALYSIS
1. Age-group consideration
Infants/two-year-olds: Known as the "mother look" period, the French mother buys those clothes for her child which suit her own personal tastes. According to industry specialists, this category is a promising sector because of the many gift purchases that occur for children in this age category.
Three/ten-year-olds: Children begin attending school at this age. Consequently, French mothers seek practical clothes made of comfortable fabrics which are easy to clean and require no ironing. Near the end of this period (from the age of six), children become more interested in fashion and brand names and are attracted by current styles and trends. They are also greatly influenced by what they see in the street and on television.
Eleven/Seventeen-year olds: Pre-teens and teenagers love what is new and original. They attach great importance to brand names which guarantee group identity. Wardrobes will most often consist of casual clothes which feel comfortable in all circumstances (particularly jeans, sweatsuit pants, sweatshirts, T-shirts, jackets, and parkas) and which are often identified or characterized by an original message or identifiable brand.
In France, the traditional patriarchal model of the family seems to be eroding, leaving in its wake a more liberal family structure in which the child is regarded as a more independent individual. Parents are more accepting of the child's need for independence and the freedom to make his or her own decisions. Consequently, clothes for children of ages 4 to 14 are frequently chosen by the child himself (70 percent). However, French mothers still maintain an influence over the types of shops where the child will select his or her clothing.
2. Annual clothing budget:
Socio-economic factors are an important consideration when examining the children's clothing industry. In France, couples are marrying at a later age than in previous years. Many women have their first child in their thirties, and continue to work afterwards. Thus, French couples usually have two incomes when they begin families and can afford to spend more money on their children's clothing.
The average annual amount spent per child for children's clothes is FF 4,200 (USD 700) for children up to two-year olds, and FF 2,000 (USD 350) for children aged 3 to 14 years.
D.MARKET ACCESS
* Import Climate
French importers pay VAT (Value Added Tax) at the rate of 19.6 percent on the CIF (Cost, Insurance, Freight) value of imported goods. They also pay customs duties of 14 percent when clearing goods through customs.
There are no quotas on imports of apparel manufactured in the United States. Regarding labeling, listing fiber content of the clothing item is compulsory.
* Distribution/Business Practices
Most children's wear is distributed in specialty chain stores, including franchises. French mothers prefer supermarkets for baby clothes, as they offer affordable and very fashionable items. Catalog sales are also gaining popularity in France and are expected to continue to grow in the future, especially with development and use of the Internet.
Sales in 1998 (in percentage of money spent):
0-2 years 2-8 years 9-14 years
Specialized chain stores 15.9 26.8 20.6
Chain stores less than 400 m2 17.9 12.0 11.0
Independent stores 11.5 7.2 10.5
Hypermarkets 36.1 28.0 23.2
Mail-order houses 7.0 7.6 9.2
Sporting good stores 0.6 7.3 15.4
Department stores 4.4 2.3 2.3
Other retail outlet 1.9 1.8 1.6
Markets 2.2 3.4 3.2
Others 2.5 3.6 3.0
* Representation in the market
There are three main ways for U.S. firms to sell children's wear in France: securing an agent, using a distributor or establishing a subsidiary. Exporting through a distributor or agent is the most common practice.
An agent works with retailers and end-users to promote the company's products. An agent's commission for children's wear is usually about 15 to 20 percent, and agents will frequently request exclusive representation. Agents are protected by a number of laws in France. If a U.S. manufacturer of children's wear wishes to terminate his business relationship with his agent prior to the expiration of the contract, the agent must first be contacted and given the opportunity to improve his performance. If the U.S. manufacturer still wishes to end the relationship after these steps have been followed, the agent has the right to retain the names of all contacts, clients, and related sales information. The manufacturer may purchase this information from the agent, but it is often very expensive. Lastly, the manufacturer could often owe the agent a severance payment ranging from one to two years of the agent's anticipated future commissions.
A distributor purchases products from the U.S. manufacturer, then adds a 30 to 40 percent markup to cover commissions, credit risk, after-sales service, and the cost of carrying a local inventory to meet small orders. Value Added Tax (VAT) and tariffs are normally paid by the distributor. French distributors also often request exclusive contracts. Many U.S. companies use a distributor when introducing a product that involves a new technology or design. The distributor shares much of the same legal protections as the agent. If termination occurs prior to contract expiration, the usual termination equals the value of the distributor's expected profit margin over a two-year period. Furthermore, a children's wear distributor representing a U.S. company in France controls the product's marketing strategy and image. The distributor is also not obligated to communicate market research information to the U.S. manufacturer. It is therefore important to select a distributor that is completely in tune with the U.S. company's goals and objectives. French children's wear distributors usually pay their orders within 90 days or 120 days.
Establishing a subsidiary offers several advantages to the manufacturer. Among them are more influence over distribution practices, the ability to adapt quickly to evolving needs of the market, more direct influence over the training of personnel, and more control over unauthorized dissemination of a technology or a design for which the U.S. firm holds a patent or trademark. However, a subsidiary involves a much greater financial investment and the responsibility of maintaining assets and employees in a foreign country.
* Key Contacts
Trade Associations:
Federation Francaise des Industries du Vtement d'Enfant
(French Trade Association for Children's Wear)
37-39, rue de Neuilly
92113 Clichy
Tel: (33-1) 47.56.32.32
Fax: (33-1) 47.56.32.99
Federation des Industries de la Maille
(French Trade Association for Knitting Products)
37-39, rue de Neuilly
92110 Clichy
Tel: (33-1) 47.56.32.32
Fax: (33-1) 47.56.32.99
Comit Franais de l'Etiquetage pour l'Entretien des Textiles
(French Comitte for Labeling and Textile Protection)
37, rue de Neuilly
92113 Clichy cedex
Tel: (33-1) 47.56.31.80
Fax: (33-1) 47.30.27.09
Trade Magazines:
JOURNAL DU TEXTILE
61, rue de Malte
75541 Paris cedex 11
Tel: (33-1) 43.57.21.89
Fax: (33-1) 47.00.08.35
Contact: Mrs. Joelle Pignau, Chief Editor
Information Agencies:
Centre Textile de Conjoncture et d'Observation Economique - CTCOE
(Monthly Publication of Economic and Statistical Data)
37/39, rue de Neuilly
BP 249
92113 Clichy Cedex
Tel: (33-1) 47.56.30.30 Fax: (33-1) 47.56.30.16
Contact: Mr. Philippe de Bohan, Director
Distribution companies:
LA BOUTIQUE DE FLORIANNE
54, rue de l'Industrie
69140 Rillieux la Pape
Tel: (33-4)72.01.30.70
Fax: (33-4)78.97.35.14
President: Mr. Francois Seris
CAMAIEU ENFANT
162, bd de Foumies
59100 Roubaix
Tel: (33-3) 28.33.99.33
Fax: (33-3) 28.33.99.66
Purchasing Manager: Ms. Veronique Chombart
CATIMINI
94, rue Choletaise
49450 St Macaire en Mauges
Tel: (33-2) 41.71.41.41
Fax: (33-2) 41.71.41.32
Purchasing Manager: Mr. Andre Veron
KIABI
100, rue du Calvaire
59510 Heim
Tel: (33-3)20.81.45.00
Fax: (33-3)20.81.49.00
Purchasing Manager: Ms. Benedicte Trentesaux
DU PAREIL AU MEME
ZI de Villemilan
18, av. Ampere
91320 Wissous
Tel: (33-1) 69.81.46.46
Fax: (33-1) 69.81.46.00
Purchasing Manager: Ms. Frdrique Touitou
H 3M
Chemin des Pennes au Pin
13170 Les Pennes Mirabeau
Tel: (33-4) 42.10.64.60
Fax: (33-4) 42.02.77.56
Purchasing Manager: Mrs Sophie Arthuis
DIPAKI
26/28, rue Diderot
92000 Nanterre
Tel: (33-1) 41.91.91.91
Fax: (33-1) 41.91.92.07
Commercial Manager: Ms. Isabelle Ribeyrolles
MAJOR
27, rue Etienne Marcel
93500 Pantin
Tel: (33-1) 48.10.73.80
Fax: (33-1) 48.10.00.83
Manager: Mr. Paul Zemmour
MARQUES ASSOCIEES
Rte de l'ndustrie
49280 La Seguiniere
Tel: (33-2) 41.75.21.21
Fax: (33-2) 41.56.82.15
General Manager: Mrs. Sonia Provost
PETIT BOY
Chemin des Coteaux
64800 Nay Bourdettes
Tel: (33-5) 59.61.15.43
Fax: (33-5) 59.61.90.10
General Manager: Mr. Dominique Cabuil
PETIT FAUNE
231, rue de Lille
59650 Villeneuve d'scq
Tel: (33-3) 20.05.54.26
Fax: (33-3) 20.05.46.36
President: Mr. Jean Louis Ortega
Z GROUPE ZANNIER
ZI du Clos Marquet
42400 Saint Chamond
Tel: (33-4) 77.31.13.50
Fax: (33-4) 77.31.13.48
Source: Panorama directory 1999 * Trade Promotion Opportunities
The bi-annual children's wear trade show Mode Enfantine is held at the Porte de Versailles exhibition center during the first week of September for summer collections, and the last week of February for autumn/winter collections. Name: Mode Enfantine (Children's Wear Trade Show)
Location: Porte de Versailles - Paris fairgrounds
Date: September 9-11, 2000
Frequency: Twice a year
Organizer: Miller Freeman 70, rue Rivay
92532 Levallois Perret Cedex
Tel: (33-1) 47 56 50 27 Fax: (33-1) 47 56 24 25
Patrick Crochemore, Show Director
At the most recent show, January 29-31, 2000, the fair organizer reported the participation of 138 companies, of which 38 percent were from foreign countries (Italy, Germany, Belgium, the United Kingdom, Netherlands, Austria, Argentina). A total of 156 brands (including 69 foreign brands) were represented, and 17,733 buyers attended the show.
U.S. representative:
Philippe Bazin
International Trade Exhibitions Inc.
1611 N. Kent St., suite 903
Arlington, VA 22209
Tel: (703) 522 5000
Fax: (703) 522 5005
DISCLAIMER
Information in this report relies on sources including Government Publications, Opinions of industry experts and other public sources. Infomat can accept no responsibility for the accuracy or completeness of such information or for loss or damage caused by any use thereof. All prices subject to change without notice. |
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