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Changing consumer behaviour calls for new retail strategies. In this regard, specialist chains are expanding in France and some groups are branching out into European markets.
In the clothing market, the development of specialist chains is gathering pace. A growing number of department stores are investing in interior decoration and promoting their own private labels. A good example is Printemps, which sells its own brands such as C-Libre and Brummell.
Even mail-order houses are respond-ing to new buying habits. Many of them are diversifying into specialised apparel catalogues and marketing upmarket merchandise. Lagging behind are hypermarkets, which are losing their market share to more aggressive competitors.
The most important sector in the French clothing market is women's apparel. Sales of women's clothing account for 50% of the market. Naturally, retailers focus greater attention on the tastes of these buyers.
One big challenge retailers face is the consumer preference for environmentally-friendly clothes. It appears that French women want to play a role in ecological preservation. Retailers can therefore ill-afford to ignore their customers' choice.
Pressure is building up as franchise chains and hypermarkets mark down clothing prices. Foreign chain stores follow suit.
Studies show that a growing number of French consumers are patronising stores which offer bargains and quality clothes at affordable prices. Moreover, they are picking clothes that are easy to handle, non-iron and wrinkle-resistant.
Imports from China and Thailand are growing; the two suppliers take up close to 35% of the infants' clothing market.
Traditionally, manufacturers and retailers promote their new products through fashion magazines. These days, however, more and more fashion houses, mail-order companies and hypermarkets are using the Minitel system to publicise their latest collections.
Minitel appeals to an increasing number of housewives and office workers after business hours. Complete with a miniscreen and a keyboard, the system is linked to a telephone line. It allows consumers to gain access to all types of information on products and services registered with the network operator.
by staff writer Virginia Lo, Paris
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