Heading towards recovery

The 2017 report and the 2018 forecast for women’s ready-to-wear*, which we commission each year from the Institut Français de la Mode, is very positive. 

The 2017 report indicates real recovery in consumption for women’s ready-to-wear in France (+1.2% in value, +2.9% in quantity) after 10 years of decline. And, given the favourable macro-economic context, we can expect this trend to continue in 2018. 

Of course, ready-to-wear consumption is, by its very nature, relatively volatile and difficult to predict. It’s tied to unpredictable weather and very influenced by outside events such as geopolitical crises or terrorist attacks. Still, all the economic signposts are positive (recovery for economic growth and consumption, a drop in unemployment, etc.) and consumption in 2018 should increase between 1% and 2%, which is very good news. 

On the international scene, after 2016’s slight downturn, our exports are again increasing at a healthy rate (+4.7%), riding the wave of strong performance by the European markets. Figures for the markets in Italy (+7%), Germany (+12%), Britain (+7%), and Belgium (+5%) are particularly  worth noting. Exports outside of Europe, despite a slight drop in the American and Chinese markets, are picking up again for Japan (+7.7%), Russia (+8%), Taiwan (+16%), and Canada (+6%). 

All of this validates the efforts made by businesses and the Fédération that assists them. Our pro-business activities include our two trade shows, Mode in France in Tokyo and in Taipei, the French pavilions we organise, the Showrooms & Agents Meeting events, and our subsidy program financed by DEFI. 

Internet sales are another important element. With new growth of over 9%, they now represent 13% of all women’s ready-to-wear sales in France, making digital strategies indispensable for businesses. This was confirmed in the recent study conducted by Fabernovel for the Fédération. We presented the study at the last Forum de la Mode and we’ll share it again and in greater depth at a presentation on 16 March at the Chamber of Commerce and Industry in Paris. 

Slashed prices (sales and promotions) are losing ground and now only represent 46.6% of sales in value compared to 48.7% in 2016. The slight increase in promotions didn’t make up for the drop in sales figures. 

There are so many reasons to be encouraged about the year ahead! 

 François-Marie Grau   

*The complete report is available to Fédération member businesses on request:communication@pretaporter.com