PARIS: With the arrival of brands such as the American Hollister, Abercrombie & Fitch, Uniqlo, Forever 21 and Banana Republic, the French market sees a new wave of fashion businesses coming from more distant horizons than their European predecessors (H&M, Zara and Benetton), reports Journal du Textile.
The entry of new fashion chains can be attributed in part to French consumers strong appetite for apparel despite global economic turmoil. explained in first place by the strong appetite that the French market still has, despite the financial crisis.
The trend is also being driven by big shopping mall operators in France, such as the giant Unibail-Rodamco.
For them, the arrival of international new brands is an opportunity to replace some of the local and/or European brands. It gives their shopping malls an exotic offering, capable of re-delighting consumers, who have shown being tired of always buying the same products.
Shopping malls seem to be a good opportunity for foreign brands as they encourage these brands to test the market. For Fast retailing, the owner of Uniqlo, the opening of the new Samaritaine will provide the opportunity to be exposed in central Paris with reasonable price and lease conditions.
For Unibail-Rodamco, doing business in French malls results in three main advantages:
- When we talk about Paris we are talking about 12 million people, meaning potential consumers.
- In France the revenue per square meter in malls is much more important than it is in other European countries.
- There are very good products available in French shopping Malls.
It is also important to keep in mind that France is not only about Paris. For CB Richard Ellis France, real state consulting, the country has a large capacity of hosting international business, with other big and interesting cities such as: Lyon, Marseille, Toulouse, Lille or Nice.
Creative New Zealand businesses aiming at the French market should investigate these alternative market-entry or growth opportunities.
Source: Journal du Textile
