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    Global Perspective: French Clothing Industry Is Experiencing The Most Serious Crisis In 15 Years

    2022/11/12 2:34:00 0

    France; Clothing Industry

    According to the French "echo" website on November 7, the French clothing industry is experiencing the most serious crisis in 15 years.

    Inflation pressure has shaken consumer confidence since the war in Ukraine, the report said. A study by procos, a professional trade federation, points out that passenger traffic in 2022 is 15% lower than in 2019.

    A survey on the consequences of inflation conducted by aIter Consulting Co., Ltd. and business alliance more accurately analyzes the difficulties of the clothing industry.

    As the bankruptcy of the camaieu brand shows, the severity of the current problem is a more difficult equation because the clothing industry has been in crisis before.

    According to aIter consulting, rents are rising at a rate of 1.3 times that of sales. According to the Supreme Court's ruling this summer, merchants must pay the rent that was not paid during the period of isolation and closure, which is undoubtedly a greater blow as rents rise. That doesn't count the repayment of state guaranteed loans.

    In addition to the rent problem, the study also pointed out a series of adverse factors, the report said. Raw material prices have risen dramatically, especially cotton (up 107% in a year) and polyester (38% in a year). According to the "absolute inflation rate" of the "raw material", the author points out that the "absolute value" of the industry is the highest. Another constraint is the rise in transport costs (despite a downward trend) and the disorderly nature of global flows. The cost of transporting a container this summer was about 10000 euros, compared with 2000 euros before the outbreak, and is now trading at close to 7000 euros. "From 2019 to the first quarter of 2022, shipping costs will increase fivefold." Another lead author of the survey, gezavier Bai, said. "We're concerned about the surge in raw material prices and we've looked at the rise in the dollar; at market prices, the dollar's appreciation has led to more than 15 percent of the extra cost," shafik husney said (compiled by Lin Xiaoxuan)

    (source: reference network)


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