French Fashion Faces Seismic Shift as Ultra-Fast Giants Challenge Traditional Retail
The landscape of French online fashion is undergoing a significant transformation, with ultra-fast fashion platforms like Shein, Temu, and AliExpress rapidly gaining traction. Data from the Institut Français de la Mode’s Economic Observatory reveals that these platforms accounted for 19% of French online fashion purchases by volume and 8% by value during the first three quarters of the year. When considering total sales, ultra-low-cost clothing now represents 6% of volumes and 2% by value. These critical findings were presented at Fashion Reboot on November 27, an annual IFM event that this year coincided with escalating controversies between Chinese ultra-low-cost fashion players and French industry federations, retailers, and ministries.
Despite the rapid growth, Gildas Minvielle, director of the Observatoire économique, offered a silver lining to industry representatives: "The best news I can announce today is that 62% of consumers did not buy ultra-fast fashion." He also projected a stagnation in sales by 2026, indicating a potential ceiling for this segment. Nevertheless, ultra-fast fashion has demonstrably established a strong foothold among specific demographics, particularly young people and women. A striking 56% of women aged 16–24 have made purchases from these platforms, making them the most engaged age group, followed by 25–34-year-olds at 54% and 35–44-year-olds at 48%.
Male consumers are also significant participants in this trend. Some 36% of men aged 16–24 have purchased from these platforms, with the 25–44 age bracket showing even greater engagement, as 43% of men in this group have placed an order. Interestingly, the appeal of ultra-fast fashion is not exclusively confined to younger demographics; the IFM study notes that 31% of 55–64-year-olds, across both genders, have reported placing orders on these low-cost sites, highlighting a broad demographic reach.
The success of these platforms also transcends traditional income boundaries, challenging assumptions about their core audience. Gildas Minvielle remarked on the surprising finding that "it is not only the CSP [low- to mid-income consumers] who shop on these Chinese sites: you also have a very significant share of CSP+ [higher-earning] consumers buying on these platforms," indicating a wider appeal than just budget-conscious shoppers.
Price overwhelmingly remains the primary motivation for purchasing ultra-fast fashion, cited by 80% of women and 76% of men. The average item price on platforms like Shein and Temu is approximately €9, roughly one-third of the price typically charged by mid-market retailers and brands. Beyond cost, customers are drawn by product diversity, a factor for 66% of women and 60% of men, and broad size availability, important to 44% of women and 41% of men. Both genders also appreciate the platforms’ attractive presentation and design, with 14% of women and 15% of men citing this as a motivator.
However, motivations exhibit some nuanced differences between genders. For instance, trends on offer are a motivating factor for 40% of women but only 34% of men. A "curiosity factor" drives 32% of men compared to 21% of women. Another distinct difference lies in gamification, which enhances the shopping experience; this is favored by 14% of men but only 7% of women, suggesting varying preferences in engagement.
Ultra-fast fashion, with its 2% market share by value, joins second-hand fashion as a significant disruptor in the new clothing market. Second-hand now captures 11% of the market by value, soaring to 17.4% among 18–24-year-olds, and accounts for a substantial 30% of online fashion purchases. Similar to Shein and Temu, the rise of second-hand fashion has profoundly impacted price perception. Gildas Minvielle explains, "Second-hand consumers tell us that since they’ve started buying second-hand, they find new products excessively expensive," pointing to growing consumer mistrust towards prices and fashion in general, often linked to a perceived decline in quality over the past three decades.
While INSEE figures indicate that clothing prices have remained relatively stable over 30 years, Minvielle warns that ultra-fast fashion's aggressive downward pressure on prices could "impose a new paradigm leading to the pauperisation of the market and a decline in average prices." He stresses that this would be an "unprecedented and damaging paradigm for the sector." Consequently, a crucial challenge for traditional brands will be to reconnect with consumers and re-establish the perceived value and meaning behind their pricing strategies.
