Thursday, 4 January 2024

Fashion victims: France looks to save its collapsing prêt-à-porter brands

 



Fashion victims: France looks to save its collapsing prêt-à-porter brands

 

Online shopping is killing mid-market brands but the government wants to hit back and rediscover France’s fashion ‘genius.’

 

BY GIORGIO LEALI

DECEMBER 22, 2023 2:22 PM CET

https://www.politico.eu/article/fashion-victims-french-pret-a-porter-brands-suffer-age-online-shopping-vinted-shein/

 

PARIS — When she was a teenager, Justine used to wear clothes her mother bought her from popular mid-range French brands like Camaïeu and La Halle, which dominated the French market in the early 2000s.

 

Now that she is 35, those shops are shutting down. But that's not such a big deal for Justine as, lying on the sofa, she keeps scrolling on the Vinted app looking for her next order.

 

If Justine isn't particularly worried about the demise of the fashion brands that defined her youth, the French government certainly is.

 

French mid-range clothing shops — which have been part of French daily life for decades but little-known abroad — are facing a massive crisis, with hundreds of shops closing and thousands of layoffs over the past two years. The government now wants to save them and try and rekindle France's fashion "genius."

 

In the new year, the French economy ministry will come up with a “plan for fashion and clothing," according to an official from the cabinet of SME minister Olivia Grégoire’s cabinet, who was not authorized to be named. The plan is still at an early stage as Grégoire and industry minister Roland Lescure will be fishing for ideas in meeting with representatives from the sector in the coming weeks.

 

While legendary luxury French brands like Louis Vuitton and Hermès keep growing, mid-range French brands are fighting to survive, squeezed by competition with cheaper shops and online platforms like Lithuanian second-hand specialist Vinted or China's ultra-cheap Shein.

 

“There is an evolution in society itself. Premium and luxury are gaining market share, entry-level too, and in the middle there's a very strong contraction,” said the same government official.

 

“In the mid-2000s, the major chains, particularly those at the heart of the storm, had all the cards in their hands to stay ahead of the race in the mid-range segment. They made strategic choices that proved fatal. They chose to open more stores, to increase their volume at a time when consumers also wanted internet sales, communication via social networks and, later of course, second-hand goods,” said the same official, noting that mid-range brands have not been up to that challenge.

 

The squeezed middle

More and more French brands are closing their brick-and-mortar shops. In 2023, French clothing and shoes brands including Naf Naf, Kookaï, André and Minelli had no choice but to enter restructuring procedures, meaning they will have to close shops to pay their creditors under the control of a court. Last year it was the turn of clothing giant Camaïeu, which fired over 2,000 employees.

 

At the same time, online platforms like Vinted or Shein are conquering the French market.

 

“In high school, I would buy from Camaïeu, Cache-Cache, Orsay … But as soon as I moved to a big city, I never went back to these shops,” said Justine, now a young professional living in Paris and the prototype client of Vinted, the second-hand shopping platform which is triumphing all over Europe, and particularly in France, its biggest market in Europe.

 

If Justine isn't particularly worried about the demise of the fashion brands that defined her youth, the French government certainly is |

 

“I bought most of my Christmas gifts on Vinted,” she said as she came back from the post office where she picked up her weekly dose of parcels.

 

Shrinking purchasing power and the rise of online shopping is one the main reasons behind the crisis of traditional French brands, experts agree.

 

“Mid-range shops are a lot less attractive compared to the 90s, 2000s,” noted Gildas Minvielle, director of the economic observatory of the French Fashion Institute (IFM) in Paris. According to surveys he conducted, budget constraints are the main reason pushing the French to buy second-hand clothes, followed by environmental concerns.

 

“With my salary, I could not afford some of the clothes I bought on Vinted, and I don’t really have the time to roam the thrift shops,” agreed Justine.

 

In the first half of 2023, the volume of fashion sales in brick-and-mortar shops dropped by nearly 5 percent year-on-year while online sales by non-French sites like Vinted and Shein grew by over 3 percent, according to research firm Kantar.

 

The sector is suffering from a triple competition from online platforms, second-hand shopping and luxury clothing, agreed Yann Rivoallan, president of the French Federation of Female Pret à Porter. His No. 1 concern is not Vinted, but Shein, the Chinese website where you can buy a skirt for €5.

 

“With my salary, I could not afford some of the clothes I bought on Vinted, and I don’t really have the time to roam the thrift shops,” agreed Justine |

 

“They give the impression that fashion can be so cheap, but it is done at the expense of social rights of workers,” he said, suggesting new measures like higher import taxes or imposing fees for returning goods. 

 

The success of China’s fast-fashion giant already caught the French government’s attention earlier this year with French Economy Minister Bruno Le Maire asking anti-fraud authorities to investigate the Chinese brand for potential anti-competitive price practices.

 

While Le Maire and NGOs slammed Shein and the fast-fashion sector for its particularly heavy carbon footprint, Vinted prided itself itself on being an environment-friendly alternative to buying new clothes.

 

For Minvielle, the fashion economist, that argument should be nuanced as some consumers could be encouraged to buy even more new clothes, knowing that they can immediately resell them on platforms like Vinted if they don’t like them. “It can encourage consumption,” he said.

 

Twice a month Justine, the Vinted-enthusiast, goes to the post office to resell clothes she doesn’t like anymore, some of them are new. But she doesn’t feel that Vinted is pushing her to buy and consume more.

 

“Vinted seems to encourage impulse buying but the reality is different: since you can’t return anything and have to sell yourself the items you don’t like, you think twice before pressing ‘buy’.”

 

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