Despite the end of confinement in May 2020, the ready-to-wear sector in Europe never fully recovered. In fact, sales remain almost 10% lower than in 2019. Faced withincrease in the cost of living, the French shop less and getting dressed is no longer a priority. For several years, many fashion brands are in financial difficulties and are struggling to sell their products even though they were thriving in the early 2000s.
The reasons for this deficit are numerous. Enter here 2020 health crisis, e-commerce, inflation and the rise of second-hand goods, it’s not easy to keep up. Unfortunately, another element weighs in the balance and pushes these mid-range brands into bankruptcy: theappearance of the ultra-fast fashion giant Shein and fast fashion.
Bankruptcies of ready-to-wear brands: competition from fast fashion giants
Since its founding in China in 2008, the unbeatably priced Shein brand has continued to grow. Despite its success, the production plant is singled out for violation of human rightspresence of toxic products in clothes and pollution. By increasing its sales, Shein has driven the fall of several mid-range brands. Go Sport, San Marina and even Kookaï and Pimkie are all in receivership.
After its judicial liquidation and its disappearance, Camaïeu is about to make its comeback at the end of summer 2024. These fashion brands could not keep up with the emergence of inexpensive competitive companies like H&M and Primark. Even if it seems without a solution for many, a brand very popular with French women was lucky enough to be bought.
A fashion brand very popular with French women on the verge of disappearing is finally bought for 1.5 million
She has had as muses public figures such as the actress Monica Bellucci, Stéphanie de Monaco or the actress who plays Blair Waldorf in Gossip Girl : NAF Naf. Created in 1973 in Paris, the French brand has quickly grown and stolen the hearts of fashionistas. Unfortunately, in 2020, Covid interrupted its sales for two months. She must face a placement in receivership before being purchased by SY International.
crédit photo : shutterstock Naf Naf had two placements in receivership.
In September 2023the brand asks to be once again placed in legal redress due toaccumulated rental arrears during the pandemic in 2020. Good news, this Tuesday, June 18, Migiboy bought the women’s ready-to-wear brand at the price of 1,5 million d’euros. With this action, the Turkish fabric company is saving the jobs of 521 people as well as 100 stores.
crédit photo : shutterstock Naf Naf was offered a second chance thanks to Migiboy.
Naf Naf: will the brand last?
Naf Naf is lucky to have been twice, but will it be enough? This bankruptcy trend seems to be spreading at high speed and unfortunately, ultra fast fashion risks accelerating this cleansing. Between the drop in attendance in catchment areas and theincrease in the price of raw materialsbrands find themselves unable to cope.
crédit photo : shutterstock The emergence of discounted fashion brands.
In the coming months, it is a safe bet that the number of own stores will decrease in the city. At the same time, the consumer habits are changing. Indeed, many people are becoming aware of theharmful impact of this sector on the environment and no longer buy as frequently as before.
