Outerwear. - Business Location Switzerland

2. France.
2.1 General economic situation.
The financial crisis did not spare the French economy, which faced
a deep recession in 2009, even if the situation was less severe
than elsewhere. After a clear drop in the fourth quarter of 2008,
economic activity slightly grew in 2009. Both the timing and the
strength of recovery remain uncertain, primarily because of the
risks surrounding the balance sheets of financial institutions. While
French banks have been weakened by the crisis, they are not as
shaky as their counterparts in many other countries. Moreover,
the risk that the real estate market correction now under way will
accentuate the decline in economic activity is attenuated to some
extent by the low rate of household indebtedness and the weakness
of the wealth effect on consumption. The crisis will leave
public finances in poor shape, and once the recovery begins, a
priority will be to phase out the general government budget deficit.
Given the already very heavy burden of taxes and compulsory
contributions, public finance consolidation will require strict control
over expenditures.
According to INSEE, the French National Institute of Statistics
and Economic Studies, the French Gross National Product (GNP)
decreased in 2009 by -1.3%, in 2008 and 2007 in increased by
2.1%. This was slightly over the average growth rate of the European
Union. With 2.8% in 2009, the consumer price inflation rate
was under the average rate of the European Union (3.5%). The
unemployment rate declined from 10.1% in 2005 to 7.4% in 2009.
This number is said to grow over 10% in 2010 due to the financial
crisis.
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l Outerwear 2010
2.2 The market for outerwear.
2.2.1 Market size
In 2009, the market size of outerwear in France amounted to €
24.1 billion, which is 62% of the total clothing market. The French
clothing market is forecast to grow steadily between 2010 and
2013 to reach a value of € 41.4 billion, of which up to € 26 billion
will be outerwear. France, which accounts for 13% of the population
of the 27-member EU, is the fourth largest clothing market
behind Germany, Italy and the United Kingdom. Apparel imports, at
€ 14.5 billion, are slightly higher than local production at €14 billion.
The imports of outerwear increased by 25% in terms of value from
2004 to 2009. In the same period local production decreased by
-44%, of which goods amounting to € 5.3 billion were exported.
Table 4: Size of the French outerwear market, 2009
Import
Value [€ bn]
14.5
Local production 4.3
Export 5.3
Total market size 24.1
Source: Eurostat 2009
2.2.2 Market characteristics
French clothing, French design and French labels have a long tradi-
tion and a good reputation. Clothing labels originating from France
are internationally considered to be fashionable and of good quality.
The internationalised French expression ‘haute couture’ signals the
worldwide importance of French fashion and French clothing brands.
Fashion is often associated with French fashion design.
Compared to other EU countries, France is said to be dominated by
price-conscious consumers. The reasons for this can be found in an
unemployment rate of around 7.5% and a relatively low economic
growth rate. On the other hand, the French are said to be very
fashion-conscious too. However, spontaneous purchases are comparatively
rare because of price sensitivity.
There is a high share of independent retailers in France that are run
as smaller boutiques all over the country.