C. END-USER ANALYSIS
0-2 years: Known as the "mother look" period, the French mother buys for her child those clothes which suit her own personal tastes, often building the child's wardrobe to match her own. According to industry specialists, this category is a promising sector because of the many gift purchases that occur (i.e. gifts at birth).
3-10 years: Children begin attending school at this age; consequently, French mothers seek practical clothes made of comfortable fabrics which are easy to clean and require no ironing. Near the end of this period (from 6 years), children become more interested in fashion and brand names and are attracted by current styles and trends. They are also greatly influenced by what they see in the street and on television.
11-17 years: Teenagers love that what is new and original. They attach great importance to brand names which guarantee both quality and group identity. Some of the most successful brands in France are "Nike," "Adidas," "Reebok," "Converse," and "Naf Naf." Wardrobes will most often consist of international casual clothes which feel comfortable in all circumstances (particularly jeans, sweatsuit pants, sweatshirts, T-shirts, jackets, and parkas) and which are personalized by an original message.
In France, the traditional patriarchal model of the family seems to be eroding, leaving behind a more liberal family structure in which the child is regarded as an autonomous individual. Parents are more accepting of the child's need for independence and the freedom to make his or her own decisions. Consequently, clothes for children of ages 4 to 14 are frequently chosen by the child himself (64 percent). However, French mothers still maintain an influence over the types of shops where the child will select his or her clothing.
Annual clothing budget:
Social factors are an important consideration when examining the children's clothing industry. In France, couples are marrying at a later age than in previous years. Many women have their first child in their thirties, and continue to work afterwards. Thus, French couples begin families with two incomes and can afford to spend more money on their children's clothing.
The average annual amount spent per child for children's clothes is FF 4,200 (USD 736) for children aged 0 to 2 years, and FF 2,000 (USD 350) for children aged 3 to 14 years.
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 on imported goods. They also pay customs duties of 14 percent
when clearing goods through customs.
There are no quotas on imports of apparel manufactured in the United States.
* Distribution/Business Practices
1994 distribution of sales in percentage of money spent:
Boys Girls Babies
Department stores: 3 percent
3 percent 3 percent
Independent stores: 15 16 10
Specialty chainstores: 30 32 31
Catalog sales: 12 11 8
Popular stores: 3 3 5
Hyper/supermarkets: 31 30 38
Distribution shares in percentage (including all ages):
1992 1993 1994
Specialty chain stores 23.0 25.1 25.4
Hypermarkets 23.5 23.1 22.5
Independent stores 18.0 16.0 16.5
Catalog sales 10.4 11.9 12.0
Supermarkets 10.4 9.6 9.4
Popular stores 4.0 3.5 4.0
Department stores 3.4 3.2 3.0
Others 7.3 7.6 7.2
Most children's wear is distributed in specialty chain stores such as franchises, followed by hypermarkets which offer affordable, very fashionable items. Such stores are a favorite of French parents buying clothes for their children.
The most successful chain stores are the following:
- Zannier (162 franchises and 86 branches),
- Catimini (117 boutiques, 56 branches, and 61 franchises),
- Du Pareil au Meme (26 outlets opened in 3 years),
- Floriane (10 branches and 4 franchises).
Independent stores are in third position in terms of children's wear sales, especially for ages 2 to 14 years. French mothers prefer supermarkets for babies' clothes (0-1 year). Catalog sales are also gaining popularity in France and are expected to continue to grow in the future.
Percentage of expenditure per distribution outlet: 0/1 year 2/4 years 5/14 years
Hypermarkets 38.5 27.0 21.2
Specialized chains 13.3 23.6 19.8
Supermarkets 15.0 10.7 9.2
Independent stores 9.2 14.5 22.3
Catalog sales 9.0 10.2 11.2
Popular chains 6.0 3.8 3.6
Department stores 2.2 2.2 3.6
Markets 1.9 4.2 6.0
Others 4.9 3.8 3.1
Services available through the Commercial Service of the American Embassy in Paris offer an excellent way for U.S. firms to enter the French children's wear market. In particular, the Gold Key Service, for a nominal fee, provides scheduled appointments with qualified and preselected potential agents, distributors, joint venture partners, and other French firms that can help ensure the success of a U.S. firm's product in France. Commercial Service trade specialists accompany American Gold Key business visitors to all calls, help analyze the results of these meetings, and develop a campaign to maximize the opportunities that exist here. For details on this and other Commercial Service programs that can help your firm better understand and exploit this market, contact the Minister-Counselor for Commercial Affairs, U.S. Embassy Paris, APO AE 09777, or the nearest U.S. Department of Commerce District Office in the United States.
* Financing
There are three main ways for U.S. firms to sell children's wear in France: through an agent, using a distributor or by establishing a subsidiary. Exporting through a distributor or agent is the most common practice.
An agent works with retailers and end-users to promote the company's products. An agent's commission for children'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 a U.S. manufacturer of children's wear wishes to terminate his business relationship with his agent prior to the expiration of the contract, the agent must first be contacted and given the opportunity to improve his performance.
If the U.S. 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. Lastly, the manufacturer could often owe the agent a severance payment ranging from one to two years of the agent's anticipated future commissions.
A distributor purchases products from the U.S. manufacturer, then adds a 30 to as much as a 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 tariffs are normally paid by the distributor. French distributors also often request exclusive contracts. Many U.S. 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 children's wear distributor representing a U.S. company in France controls the product's marketing strategy and image. The distributor is also not obligated to communicate market research information to the U.S. manufacturer. It is therefore important to select a distributor who is completely in tune with the U.S. company's goals and objectives. French children's wear distributors usually pay their orders within 90 days.
Establishing a subsidiary offers several advantages to 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 U.S. 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 Francaise des Industries du Vetement d'Enfant (French Trade Association for Children's Wear) 37-39, rue de Neuilly 92113 Clichy Tel: (33-1) 47.56.32.32 Fax: (33-1) 47.56.32.99 Contact: Mr. Salmon, President
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 Industry 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
*. Trade Promotion Opportunities
The bi-annual children's wear trade show Mode Enfantine is held at the Porte de Versailles exhibition center during the first week of July for summer collections (previously held during the first week of September), and the first week of February for autumn/winter collections.
- Name: Mode Enfantine (Children's Wear Trade Show)
Location: Porte de Versailles
- Paris fairgrounds
- Date: June
- Frequency: Twice a year
- Organizer: Blenheim 70, rue Rivay 92532 Levallois Perret Cedex
- Tel: (33-1) 47 56 50 00
- Fax: (33-1) 47 31 33 15
- Contact: Ines Brisset, Show Director Philippe Chomat, Commercial Manager
Fair organizers reported the participation of 229 companies (120 French and 109 foreign) and an attendance of 9,050 visitors, of which 47 percent
were international buyers. Thirteen U.S. companies participated in the show. All reported high customer interest in their products and made immediate sales.
