According to IFM studies, French textile production dropped a whopping 25 % during the first eight months of 2009. There is nothing exceptional about France’s performance in Europe, as on average, European Union member countries have seen their textile production deteriorate 20 % this year in comparison to 2008. Textile producers, faced with competition from China and Turkey, are also heavily impacted by the crisis their customers in manufacturing are enduring.

Extract of an editorial written by Gildas Minvielle and published in the “Lettre Economique” of November 2009, from the Institut Français de la Mode’s economic observatory, a monthly Economic Trends Newsletter which is an informational monitoring tool aimed at professionals in the sector, that detects and analyses changes and trends in the sector.

Read the whole article:
http://www.ifm-paris.com/asp/fr2/econ_obse_4_1_lettreconj.asp

An article published by the French magazine  “Journal du Net Economie & Management” on July 11, 2009 starts by reminding that the prevention of the unpaids is a very important stake for every business manager. In spite of real progress in the prevention of this risk, in particular with the crisis, an evolution is necessary especially in the implementation of good practices and relevant indicators.
Among the ‘good practices’ recommanded by the Sylvain Gros-Désirs, the journalist who wrote this article, let’s point these ones:
- All the staff must work together to avoid the unpaid receivables (from the sales, when they negociate the means and the terms of payments, to the credit managers when they collect the money)
- It’s important to be aware of the main issues that can have a consequences on the cash collection ( invoices ,  follow-up,  claims…)
- It’s necessary to settle various indicators that fit to the company . The DSO (Days of Sales Outstanding) are important but not enough : other indicators such as the cost of the financing of receivables or the rate of the delays, allow to estimate the performance and to anticipate the failures. 
- Cash collectors teams have to anticipate the dates of payment and contact each client, and do a ‘pre-follow-up’ job : to do that job efficiently, they have to collect first all useful information about each client to know him better, and to adapt its methods to each one.

After the bad results of the year 2008, the distributors’ turnovers progressed in January 2009. This specific recovery was unfortunately followed by a very bad February month.

 Summary of an article written by Gildas Minvielle and published in the “Lettre Economique” of April 2009, from the Institut Français de la Mode’s economic observatory, a monthly Economic Trends Newsletter which  is an informational monitoring tool aimed at professionals in the sector, that detects and analyses changes and trends in the sector.

Read the whole article:http://www.ifm-paris.com/asp/fr2/econ_obse_4_1_lettreconj.asp

Below, the summary of an article written by Gildas Minvielle and published in the “Lettre Economique” of February 2009, from the Institut Français de la Mode’s economic observatory, a monthly Economic Trends Newsletter which  is an informational monitoring tool aimed at professionals in the sector, that detects and analyses changes and trends in the sector.

Throughout 2008, consumption of textile-apparel articles in France fell about 3 % in value under comparable conditions, in comparison to 2007. As in 2004, the volume of purchasing decreased even as prices were dropping slightly; whereas under normal circumstances consumers take advantage of lower prices to buy more.

2008 was a difficult year for other members of the European Union as well. Even the southern European countries—which traditionally place great importance on their fashion purchases— suffered last year. In Spain, consumption of clothing articles plummeted 5 % in value, while in Italy consumption shrank 2 %.

Across the Atlantic, sales of fashion and textile products also fell in 2008.

The slump in end-consumption in France, which has been relatively moderate in comparison to other sectors, has sometimes manifested itself in a drastic drop in business for companies upstream in the industry. High stock levels that don’t move and lack of visibility have taken a heavy toll on new orders for branch customers.

Will emergent economies still be a strong potential growth engine for European companies, as they face slackening demand on the European and American markets within a badly deteriorating international economic situation?

In China, according to local authorities, Gross Domestic Product growth should come close to 8 % in 2009, while GDP growth was as high as 9.7 % in 2008 and close to 12 % in 2007.

India is also affected by the slow-down of the global economy.

It is Russia that should suffer the most from the global economic turndown. Severely affected by the drop in prices of raw materials, growth will no doubt be negative in 2009.

In view of growth forecasts for 2009 for the United States and the Euro zone, (- 1.3 % and – 0.9 % respectively), the emerging economies may be the only regions to enjoy positive growth this year. Over time, emerging economies will offer European companies an alternative to their shrinking activity on the domestic market, even if—for the time being—they too will be affected by the crisis.

Read the whole article:
http://www.ifm-paris.com/EDITO/ifm_lettre_de_conjoncture_022009_GB.pdf

Below, the summary of an article written by Gildas Minvielle and published in the “Lettre Economique” of January 2009, from the Institut Français de la Mode’s economic observatory, a monthly Economic Trends Newsletter which  is an informational monitoring tool aimed at professionals in the sector, that detects and analyses changes and trends in the sector.

“For the year 2008 as a whole, consumption of textile-apparel articles has dropped around 3 % in value in comparison to 2007. There has not been a downturn comparable in severity since that of 1994-1995.

The drop in textile-apparel consumption is essentially a result of the budgetary restrictions households have imposed on themselves in these times of hardship and should not be interpreted as a rejection of fashion as such.The issue here concerns consumption in a time of crisis rather than a crisis in consumption. Nevertheless, times of crisis are instrumental in helping create new consumption behaviours which may endure well after economic recovery.

People’s appetite for fashion seems undiminished, to judge by the teeming crowds during the first days of the big sales, though it is true that for the long term, only time will tell.Consumers who are careful not to spend any more than necessary mostly see this as a heaven-sent occasion for a bargain. The idea of “the right price” seems to be moving back to the forefront, which is not necessarily at odds with a certain up-market trend.

In 2008, consumers bought less clothing. Their choices were dictated by more stringent consumption criteria within a deteriorating economic climate. The fact remains that, while tomorrow consumers may continue to buy less, they may reorient their purchases towards higher-quality products that cost more but last longer.

While it may still be premature to posit that “fast fashion” will soon be dethroned by “slow fashion”, the coexistence of two rhythms will no doubt become more widespread. ”

Read the whole article :
http://www.ifm-paris.com/EDITO/ifm_lettre_de_conjoncture_012009_GB.pdf