The French ready-to-wear industry is reeling from the pressures of fast fashion and a booming second-hand market.
Bankruptcies, receiverships, and liquidations are making headlines as the calendar turns to 2025.
However, experts remain optimistic for a turnaround fueled by a renewed focus on brand identity, innovation, and catering to a more upscale clientele.
As 2025 approaches, the IKKS brand shifts ownership, resulting in substantial layoffs. JOTT (Just Over The Top) has gone into receivership, while Anne Fontaine navigates its own safety plan. With the likes of Camaïeu, Kookaï, Jennyfer, André, San Marina, Minelli, Comptoir des Cotonniers, Princesse Tam Tam, and Kaporal struggling, the landscape is dotted with brands that have fallen or are on the brink.
Severe “impoverishment” and “decline”
A staggering 1,500 clothing stores shuttered their doors across France in 2024, as reported by a parliamentary investigation. The Union des Industries Textiles indicates that the workforce has plummeted from 400,000 in the 1970s to a slim 60,000 today. This figure doesn’t even capture in-store sales personnel, which totaled 70,000 as of late 2023, according to the Fédération nationale de l’habillement.
After enduring the shift to e-commerce, the impacts of Covid-19, and inflation, traditional retailers now contend with fierce competition from second-hand and ultra-fast fashion brands—a “profound upheaval,” as described by Gildas Minvielle, Director of the Economic Observatory at the French Fashion Institute (IFM). These new sales channels now represent 13% of revenue and nearly 30% of total purchases.
Established brands in turmoil
According to Gildas Minvielle, “The significant market share gained by these newcomers is problematic for long-standing brands. If the market were thriving, there might be enough space for everyone, but that isn’t the reality.” With the average price of items from Shein or Temu around €9—approximately one-third of what traditional mid-range brands charge—these Asian competitors are driving a harsh “impoverishment,” particularly when consumer purchasing power is already strained.
To understand the industry’s “decline,” we must reflect on the 1990s, which marked the rise of the first-generation fast fashion powerhouses like Zara and H&M.
These brands introduced “collections that change weekly, driving the urgency to purchase,” says Benoît Heilbrunn, a philosopher and marketing professor at ESCP Business School.
Clear branding and a solid operational model for survival
Benoît Heilbrunn notes, “French brands have lagged in adapting because they lack a robust operational framework.” In fact, 97% of textiles used in France are imported. Furthermore, “French textile names have not produced anything noteworthy in years,” he laments. “Innovation and product development are absent from discussions.”
Françoise Clément, a fashion and retail authority, echoes this sentiment. She points out that many brands remain stuck in their “comfort zones,” focusing on attracting consumers through discounts rather than generating genuine value. Brands must reconnect with their “core DNA” and establish distinct branding to endure.
A troubling “price spiral” at the low end
The ready-to-wear market resembles an “hourglass,” according to Françoise Clément.
The top section (luxury and “heritage” brands) remains sturdy thanks to its prestige. Conversely, at the bottom end, a price war rages, drawing its audience while the mid-range suffers the most.
Mid-range brands need to “diversify and refine their offerings” while steering clear of copying fast fashion trends, advises Françoise Clément. The future hinges on balancing “quality, appeal, innovation, and aspirational value,” as demonstrated by brands like “Lacoste, Aigle,” or Le Slip Français, which emphasizes French production, alongside Decathlon’s focus on “affordability and innovation.” This clothing crisis is “not predetermined,” she insists. Instead of dwelling on the prevailing pessimism, “opportunities” are ripe for “brands willing to adapt.”
The annual State of Fashion BoF-McKinsey report highlights several key areas for advancement: essential utilization of artificial intelligence, diversifying production locations amid fluctuating international tariffs, enhancing product quality, and integrating a second-hand line. A far-reaching initiative awaits.
