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Business Management Assignment: Prevalence Of Fashion Industry In France


Porter’s Diamond Model The Porter Diamond Model explains the reasons and factors as to why companies become competitive in a particular setting. The approach makes use of clusters of industries, where the competitiveness of one company is compared with the performance of other companies.

When a company from one country tries to establish its base in a foreign country – with the purpose of expansion – it can make use of this model for the purpose of ascertaining the business opportunities and competitiveness.

The business management assignment is to analyze a given industry in a particular country using the four factors discussed in class:

  1. Factor conditions
  2. Demand conditions
  3. Firm’s strategy, structure and rivalry
  4. Supporting industries
  5. Government’s role


The fashion industry considered within the present context of business management assignment is one of the most important sectors which is linked to the economy of France. The development in the area of clothing and textile as a whole can be considered to be very much unfavorable in the past few years. This is mainly due to the reason that the production has fallen mainly due to the increase of the imports. The ratio in the context of investment to sales have not been in the higher side which has created difficulty for the France manufacturing units in order to adopt to the new trend which is seen in the common people in the area of clothing. Form one branch to another there were different types of problems encountered in the textile units with a deficit in the enormous foreign trade (Bass-Krueger and Kurkdjian 2018). Furthermore, in recent times it is seen that the largest French companies have internationalized their different activity. Different types of firms are coming into the fashion industry and industrial textile sector is also increasing in a constant rate.

The main discussion area of the report would be linked to the fashion industry which is prevailing in France. The main area of focus which would be part of the discussion is linked to factor conditions, demand conditions, Supportive industry and Government roles. The discussion would also be highlighting different factors which are linked to the growth of the fashion industry in France and on the other hand it would be also considering various problems which were encountered in the operational area of the industry in France.

Factor conditions
There are different types of factors which can be stated in the context of fashion industry which is prevailing in France. One of the most important factors is the production of raw material for the various fashion products which are manufactured. The main countries from where France got the raw materials for the manufacturing of different fashion products were Saudi Arabia, Spain, Germany, Kazakhstan and Nigeria. The manufacturing production which is seen in France is averaged 2.32percent from the year 1955 until 2021 (Bass-Krueger 2018). Another important factor which can be stated in the factor condition is the marketing in the forms of promotion and advertisement.

In France the factor of advertisement is mainly done with the help of social media. In this context it can be seen that 67% of the promotional activity relating to new launch and different types of sales offer is communicated to the consumer through the use of social media (Romano 2021). This strategy has helped in the extensive operational area increase in the e- commerce market of France and this has resulted in the increase of the demand of the different types of products. Fashion is another medium which is very much famous in France which increases the engagement factor. One of the main motives of each of the sector is to reach and satisfaction level of the customer with the utilization of different French style of fashion. This has also helped France to get their fashion products very much popular in different other countries.

Fast fashion model is a crucial aspect which can be seen in the Fashion industry of France. Different types of new design and fashion trend can be adopted quite easily which increases the customer segmentation. Keeping in touch with the latest trend helps the industry to be well versed with the need of the people as a result of which finical profitability can also be increased in the industry.

Demand condition
The apparel and fashion industry which is seen in France is very much acknowledged and established as one of the leading pioneers of fashion in the whole world. Despite the different types of difficulties which is faced by the industry mainly linked to the concept of countries downturn in economy and the threats of terror attacks the demand of fashion industry hold a firm position in France. France still holds a renowned position in the global market and is considered as one of the largest apparels and fashion market when it comes to the revenue area comparing to other counties (Stankevi?i?t? 2021). According to the data which is given from the end of French Fashion institute (IFM), the industry of fashion in France is now worth an amount of 150 billion. Relating to the GDP of France the fashion industry holds a value of 2.7% and accounts for job to nearly 1 million people (Bass-Krueger et al., 2021).

In the revenue sector the fashion industry in France is amounted to over USD 14 billion a year and it can be expected to surpass the value of USD 20 billion in the year 2021 due to the high demand which is seen in the industry. Apparel is one of the largest segments in the France fashion industry in the terms of sales linked to a market volume of USD 7 Billion 2017. Although it can be stated that the domestic market in the French fashion industry can be seen to be shrinking in recent times, but the sales of the French fashion products especially the items of luxury fashion is still seen to be high in the global market particularly in the emerging market of Japan and China (Binet et al., 2019). The demand of French fashion is raising mainly due to the reason of properly quality and the elegance of French fashion which stands out from other countries fashion. French Luxury fashion house which is named as Christian Dior is named as World’s largest company of apparel due to the significance sales which is seen across the globe and the high demand of the different products which are manufactured from their end (RAONY 2021). The fashion industry in France always focused in the factor of utilization of the need of the people and aligning the operation of the business as per the need. This is one of the strategies which is seen in most of the organization which prevail in France who are linked to the industry of fashion. This not only helps in the proper need fulfillment of the people but it also helps in the gain of the financial area which is one of the root parameters of success of any industry working pattern.

Supportive industries
Apart from the factor of making cloths in France it can be seen that adaptation to the changes of fashion prevailing to the customer demand in the area of causal cloths and other formal suites, celebrity street wears which are endorsed is making a place in the market. Over the period of time crinoline makers have become manufacturer of bra. Suit markers have adapted to the rise of separates and mills of textile and developed the stretch comfort. On the other hand, it can also be seen that fabric development is in the stages of advancement which is also playing a very important role and the factor of information management is becoming one of the most important commodities linked to wool and cotton in the competitive and complicated field. In France it is seen that there is development of classification of the styles and pricing in order to enhance the operational area which is in the sector of selling and designing of cloths along with the area of traditional dividing lines of retails and wholesale (Blancheton 2021). These factors can be considered to be becoming less distinct in the recent times which considering the factor of alternative area of manufacturing of products which are linked to the fashion industry.

The factor of mass production can be seen to be another concept which supports the fashion industry. The start of mass production in France started in the mid nineteenth century when some of the garments which were produced did not need any types of fitting requirement. In this context it can also be stated that the term fashion can into existence in the twentieth century and mass production factor included a set of guidelines in the area of fitting into order to meet the fashion requirement of the people. As per the concept of French designer Paul Poiret the factor of fashion and elegance was considered as a pastime of their ancestors and now it is working on the concept of science and as per the need and demand of the people.

Government’s role
There are different types of legal framework which is in placed from the end of the Government relating to the development, outsourcing and manufacturing of different types of fashions product in France. The French law linked to the vigilance of outsourcing of parent companies prevailing in France dates 27th March 2017 (Article L 225-102-4 inserted in the code of French commercial) is one of the responses of French to the UK Modern Slavery Act and the California Transparency in the Supply chain Act (Frans and Aryani 2020). This type of law is applicable to any of the companies which has its headquarters in France and has employee strength of 5000 or more. The main content of the law requires that there should be different types of vigilance plan activities by the different companies and subcontractors who are linked to the sector of fashion industry.

The area of agreement in the area of arrangement of proper relationship relating to the supply chain, development and manufacturing for the fashion goods in France are seen to be standard French law which governed the supplier agreement and the manufacturing agreement. As per the French law the contracts which prevails between the distributors and the manufactures of fashion products does not have any statutory notice period in order to terminate the distribution agreement (Meraviglia 2018). However, in most of the cases it can be seen that most of the distribution agreement has tenure of 3 to 6 months termination period of notice. Relating to the import of luxury and fashion products, the French importers will have to pay some forms of custom duties and other types of taxes when it imports any types of product from any of the third-party countries to France or any of the other member states of the EU. In the context of export, French companies do not have to pay any types of Custom duties or any other types of taxes. However, in most of the cases it is very much essential to check whether such types of third-party countries will be charging the French exports of Fashion products any types of customs duties or any other charges upon the products when it is entering their territory. The Hamon Law which is dated 17th March 2014 (Hamon Law) transposes the direct provision of the Directive which is 2011/83/EU on the different types of consumer rights. The law aims at providing a real business to consumer market which can be termed as internal striking the right types of balance between the high-level consumers protection and the different types of competitiveness of the businesses. In France the online fashion sector is another important area which is gaining importance. These online fashions stores (e-commerce) is governed and controlled by the General data protection regulation (GDPR) and the French data protection Act with its decree No 2005-1309 (Marques, Sousa and Broega 2018).

At the end of the discussion it can be stated that there were various factors which were linked to the growth of the fashion industry in France. The growth of the industry can be termed as very much substantial in order to meet the need of the people and on the other hand to stay with the trend of fashion. The French fashion industry in the near future would be reaching more into the global market and would be impacting the GDP of the country. On the other hand, it would be enhancing the various parameters of Fashion industry and would be playing an significant role in the global business scenario.

Bass-Krueger, M. and Kurkdjian, S., 2018. The state of fashion studies in France: Past, present, future. International Journal of Fashion Studies, 5(1), pp.227-244.

Bass-Krueger, M., 2018. Fashion Collections, Collectors, and Exhibitions in France, 1874–1900: Historical Imagination, the Spectacular Past, and the Practice of Restoration. Fashion Theory, 22(4-5), pp.405-433.

Bass-Krueger, M., Edwards-Dujardin, H. and Kurkdjian, S., 2021. Fashion, Society and the First World War: International Perspectives. Bloomsbury Academic.

Binet, F., Coste-Manière, I., Decombes, C., Grasselli, Y., Ouedermi, D. and Ramchandani, M., 2019. Fast fashion and sustainable consumption. In Fast fashion, fashion brands and sustainable consumption (pp. 19-35). Springer, Singapore.

Blancheton, B., 2021. French fashion and textile during COVID-19. Once again, flying to high quality and innovation to survive. Fashion and Textiles, 8(1), pp.1-13.

Frans, R.P.E. and Aryani, M.I., 2020. The Influences of Fashion as a Soft Power towards France’s Economic Growth. Business management assignment WIMAYA, 1(02), pp.31-39.

Marques, A.D., Sousa, E. and Broega, A.C., 2018. Presence of sustainability approaches in fashion design academic curricula: evidences from Southern Europe.

Meraviglia, L., 2018. Technology and counterfeiting in the fashion industry: Friends or foes?. Business Horizons, 61(3), pp.467-475.

Stankevi?i?t?, K., 2021. Blowing up the fashion bubble, or nine things wrong with fashion: an outsider’s comment. A critical essay on fashion as a creative industry. Creativity Studies, 14(2), pp.376-390.


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