The clothing market records a 3.5% drop in turnover in 2023, as an
“uncertain and complex year”
begins in a context of inflation, social movements and after numerous bankruptcies of businesses, the Commerce Alliance announced on Tuesday.
This decline in value shows disparities: -1% of in-store turnover but +2% for online sales compared to 2022, according to the Retail Int Panel.
for the Commerce Alliance.
City center and outskirts shopping centers saw an increase of +2% and +1% respectively, while city center street businesses recorded a drop in turnover of -1%.
The
“outlets”
, these brand villages (around thirty in France) offering past collections at reduced prices, are doing with +2% compared to 2022, and +13% since 2019.
Failures and difficulties of many brands
The panel includes around sixty brands (Jules, Monoprix, Levi's, Promod, etc.) representing 10 billion euros in turnover, or
"a large quarter of the market"
, detailed its founder Emmanuel de Courcel on Tuesday during a a press point.
Excluded are very large brands such as H&M, Zara, Primark, SheIn.
“There was a very big impact from the failures which started in 2022
,” analyzed Mr. de Courcel, citing the liquidation of Camaïeu.
Since then, many brands have experienced very serious difficulties (job protection plans, legal receiverships, reductions in scope) such as Kookaï, Don't Call me Jennyfer, Minelli, San Marina.
“At least 4,000 jobs have been eliminated in 2023
,” according to the panel’s estimates, while fashion
“remains the leading employer”
in retail excluding food with 220,000 employees in France.
Adaptation delay
Between 2007 and 2013, the clothing sector continued to hire (+8% workforce) while household consumption fell (-9%), which tends to show
“a delay in adaptation”
of the market according to Yohann Petiot, director general of the Alliance du Commerce.
Men's clothing resists, notes the panel, being
"more a market of need than of impulse"
.
2024 opens in a context marked by significant increases in charges (rent, maritime transport), a
“fragile macroeconomic context”
, social movements (farmers’ blockades, RATP strike announcements, etc.) and
“competitive increased on the Internet”
with the aggressive breakthrough of the Chinese giants SheIn and Temu.
The Commerce Alliance is asking the government to remove
“the threshold of 150 euros applicable to customs duties on imported products”
which allows Shein and Temu not to pay these taxes on small packages.
She also calls for the abandonment of the European project
“to reduce payment terms to 30 days”
, which would have an impact of around 1.6 billion euros on the cash flow of fashion brands, according to her.