The coming years would witness drastic social, economic and demographic changes restructuring consumer behavior. Three trends are seen dominating the market; aging population, economic factors relating to expansion of wealth, and social shifts altering the household appearance, and lifestyles. French customers are likely to impose pressure of growth consumption, and have developed the influence to dramatically change consumer landscape.
Population in France is getting older due to aging boomers and shrinking population. A survey report on French population states that by 2030, more than 50% of the people in France would be more than 50 years of age. People who are more than 50 years of age will dominate two thirds of the market by 2023, and people who are 65 years or more will influence 50% of the market. They would be individually less wealthy, and seek more value for their consumption. Along with the changing consumer aspirations, there would be varying attitudes of consumption. This would result in a fall in the consumption in France by 1.4% during the next decade.
Apparel Imports of France
Since the age of baby boomers, successive generations in any country have had the chance to earn more, and accumulate more than their previous generations. France is also not an exception.
Even as they age, French customers would prefer to retain their network. Companies need to innovate, and include a focus on value so as to sustain their market. In 2009, the industry generated revenue of $48,956 million. This was a CAGR of 0.6%. Paris, popularly known as the fashion capital of the world hosts renowned designers such as Prada, Gucci, Chanel etc. It is also the world's sixth biggest fashion centre and has the largest fabric industry.
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Haute couture in France is a protected term, and only very few companies call themselves as 'couture houses'. Giorgio Armani Priv, Christian Dior, Chanel, Alexander Mc Queen, Givenchy, and Christian Lacroix are a few to name. France is also one of the world's largest distribution centers for clothing. Increase of labor costs and competition from foreign countries has led to the closure of apparel enterprises.
France is not much a country based on consumerism. French consumers have a totally different mentality while shopping. They prefer high shopping. Generally, every store would want to attract and sustain its customers through prices, discounts, quality, and good customer service. Profit would be the main motive. In France, the number of stores is limited, and their business strategy is different from other countries like US.
The most important driving force of economic growth in France is its domestic consumption. Understanding the changes in customer needs will help companies to survive the market conditions in France. They need to adopt a smooth approach and target growth in a generally lackluster environment.
References:
1. Data Source: UN Comtrade
2. Parisdigest.com
3. Lonelyplanet.com
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