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C. END-USER ANALYSIS
French women of today are decisive and dynamic. They desire basic garments that can be easily mixed together and accessorized. Though French women generally prefer to invest in high quality clothing, they occasionally indulge in impulse buying.
Ready-to-wear for working women has experienced a boom over the past few years, and many manufacturers have developed a successful market niche in this area.
In 1997, consumption patterns based on a survey of 1,000 women aged 15 years and older were as follows:
Buying Frequency Between Two Purchases
Coats, raincoats: 3.5 years
Vests and blazers: 3.5 years
Swimsuits: 2.75 years
Suits: 2 years
Dresses: 1.25 years
Skirts: 9 months
Blouses: 8 months
Sweaters: 6 months
Jeans, pants: 6 months
Tee-shirts: 4 months
D. MARKET ACCESS
* Import Climate
French importers pay VAT (Value-Added Tax) at the rate of 20.6 percent on the CIF (Cost, Insurance, Freight) value of imported goods. They also pay customs duties of 14 percent.
There are no quotas on imports of apparel manufactured in the United States.
* Distribution/Business Practices
Distribution in percentage of money spent was as follows in 1997:
Specialty chains: 35.6 percent
Independent stores: 30.9 percent
Mail-order houses: 10.1 percent Super/hypermarkets: 7.0 percent
Markets: 5.0 percent
Department stores: 4.4 percent
Popular stores: 1.0 percent
Other: 6.0 percent
Sales in department stores, as well as in specialty chains, showed a slight increase compared to 1996 sales. Sales in other distribution networks remained quite stable, except for sales in independent stores which have decreased.
The Commercial Service (CS) of the American Embassy in Paris offers excellent ways for U.S. firms to enter the French clothing market (in particular the Gold Key Service, which for a nominal fee, provides scheduled appointments with qualified and pre-selected potential agents, distributors, joint venture partners, and other French firms). This can help ensure the successful introduction of an American firm's product in France. An Industry Specialist accompanies American Gold Key business visitors to meetings and helps in the analysis of their results and in developing a campaign to maximize market opportunities in France. For details on this and other CS programs that can help your firm in understanding, entering, and succeeding in this market, contact the Minister- Counselor for Commercial Affairs, U.S. Embassy Paris, APO AE 09777, or the U.S. Department of Commerce Export Assistance Center nearest you in the United States.
* Financing
There are three main ways for American firms to sell women's wear in France: through a sales agent, a distributor, or a subsidiary. Exporting through a distributor or a sales agent is the most common practice.
A sales agent works with retailers and end-users to promote the company's products. An agent's commission for women'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 an American manufacturer of women's wear wishes to terminate the business relationship with the agent prior to expiration of the contract, the agent must first be contacted and given the opportunity to improve his/her performance. If the American 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. Finally, the manufacturer must often pay the agent a severance fee ranging from one to two years of the agent's anticipated future commissions.
A distributor purchases products from the American 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 tarifs are normally paid by the distributor. French distributors also often request exclusive contracts. Many American companies use a distributor when introducing a product which employs a new technology or design. The distributor shares much of the same legal protection 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 women's wear distributor representing an American company in France controls the product's marketing strategy and image. The distributor is not obligated to communicate market research information to the American manufacturer. It is therefore important to select a distributor who understands the American company's goals and objectives. French women's wear distributors usually pay for their orders within 90 days.
Establishing a subsidiary offers several advantages for the manufacturer: more control over their distribution practices, the ability to adapt quickly to evolving needs of the market, more direct influence over the training of personnel, and control over unauthorized dissemination of technology for which the American firm holds a patent. 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 Fran aise du Pret-a-Porter F minin (French Trade Association for Women's Wear) 5, rue de Caumartin 75009 Paris Tel: (33-1) 44.94.70.00 Fax: (33-1) 44.94.70.02 Contact: Mr. G rard Roudine, General Delegate
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 Contact: Mr. Devernoy, President
Union des Industries Textiles (French Textile and Apparel Trade Association) 37-39, rue de Neuilly 92110 Clichy Tel: (33-1) 47.56.31.33 Fax: (33-1) 47.30.25.28 Contact: Mr. Solles, President
Federation Nationale du Textile Habillement (French National Trade Association for Clothing Textiles) 4, impasse des Peintres 75002 Paris Tel: (33-1) 42.33.19.83 Fax: (33-1) 42.33.49.75 Contact: Mr. Virard, President
Trade Magazines:
FRANCE TEXTILE 54, rue Saint Alban 42300 Roanne Tel: (33-1) 45.50.32.32 Fax: (33-1) 43.57.53.94 Contact: Mr. Bitter, Chief Editor
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
BOUTIQUE DE FRANCE 19, rue Froment 75011 Paris Tel: (33-1) 40.21.13.40 Fax: (33-1) 43.57.04.81 Contact: Mrs. Lagadec, 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) 47.56.30.10 Fax: (33-1) 47.56.30.16 Contact: Mr. Philippe de Bohan, Director
Department store contacts:
Galeries Lafayette 40, boulevard Haussmann 75009 Paris Tel: (33-1) 42.82.34.56 Fax: (33-1) 48.78.25.19 Purchasing Directors for women's wear: Ms. Odile Morvan and Mrs. Pascale Camart
Printemps 102, rue de Provence 75009 Paris Tel: (33-1) 42.82.56.35 Fax: (33-1) 42.82.50.05 Buyer for women's wear: Mrs. Souciet
Au Bon Marche 5, rue de Babylone 75007 Paris Tel: (33-1) 44.39.80.00 Fax: (33-1) 44.39.80.50 Purchasing Director for women's wear: Mrs. de Mareuil
Bazar de l'Hotel de Ville (BHV) 55, rue de la Verrerie 75004 Paris Tel: (33-1) 42.74.90.00 Fax: (33-1) 42.74.96.79 Purchasing Director for women's wear: Mrs. Vincent
Samaritaine 19, rue de la Monnaie 75001 Paris Tel: (33-1) 40.41.20.20 Fax: (33-1) 40.41.28.28 Purchasing Director for women's wear: Mrs. Annie Taraud
* Trade Promotion Opportunities
The bi-annual women's wear trade show Salon du Pret-a-Porter is held at the Porte de Versailles exhibition center during the first week of September and the last week of January.
Name: Salon du Pret-a-Porter (Women's Wear Trade Show)
Location: Porte de Versailles
Dates: January, September
Frequency: Twice a year
Organizer: SODES 5, rue Caumartin 75009 Paris
Tel: (33-1) 44.94.70.00
Fax: (33-1) 44.94.70.05
Contact: Christiane Oudin
The women's wear trade show is held twice a year in Paris (January and September). BR>
The show welcomed a total of 46,954 visitors. French visitors amounted to 22,515 while 24,439 foreign visitors attended the show, broken down as follows:
Spain: 16 %
Italy: 11 %
Belgium: 9 %
Japan: 7 %
United Kingdom: 6 %
Portugal : 5 %
Greece: 5 %
Switzerland: 5 %
Netherlands: 4 %
American companies wishing to penetrate the French market are highly encouraged to participate in this trade show to learn about French business practices and to see how their products will be received in the French market. It is also an excellent forum to meet potential agents and distributors.
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