Consumer Lifestyles-France

onConsumer Lifestyles - France

Euromonitor International November 2008

Consumer lifestyles

France

List of Contents and Tables
Structure of the Report ........................................................................................................................................... 1 Consumer Trends in France................................................................................................................................... 1 Population Ageing: A Cultural and Social Phenomenon .......................................................................................... 2 A Return To Natural and Authentic Food?................................................................................................................ 2 Luxury Brands in France........................................................................................................................................... 3 New Attitudes Towards Housing ............................................................................................................................... 4 Healthy Minds, Healthy Bodies? ............................................................................................................................... 4 Population ................................................................................................................................................................ 5 Population Changes .................................................................................................................................................. 5 Population by Gender ............................................................................................................................................... 7 Population by Marital Status..................................................................................................................................... 7 Population by Education ........................................................................................................................................... 8 Population by Rural/urban Areas.............................................................................................................................. 9 Table 1 Population by Age and Gender: 1995/2000/2005/2007/2010/2015 ................................. 10 Table 2 Population by Age and Gender (% analysis and % growth): 1995/2007/2015/1995-2007/2007-2015........................................................................... 11 Table 3 Median Age of Population: 1995/2000/2005/2007/2010/2015 ........................................ 11 Table 4 Median Age of Population (actual growth): 1995-2007/2007-2015 ................................ 11 Table 5 Population Changes: 1995/2000/2002/2004/2006-2007 .................................................. 11 Table 6 Population Changes (% growth): 1995-2007/2000-2007................................................. 12 Table 7 Birth Rates: 1995/2000/2002/2004/2006-2007 ................................................................ 12 Table 8 Death Rates: 1995/2000/2002/2004/2006-2007............................................................... 12 Table 9 Birth Rates (actual growth): 1995-2007/2000-2007......................................................... 12 Table 10 Death Rates (actual growth): 1995-2007/2000-2007 ....................................................... 12 Fertility and Birth: 1995/2000/2002/2004/2006-2007 ..................................................... 13 Table 11 Fertility and Birth (growth): 1995-2007/2000-2007 ........................................................ 13 Table 12 Table 13 Population by Marital Status: 1995/2000/2002/2004/2006-2007..................................... 13 Population by Marital Status (% analysis and % growth): Table 14 1995/2000/2007/1995-2007/2000-2007........................................................................... 13 Table 15 Marriage Rates: 1995/2000/2002/2004/2006-2007.......................................................... 14 Table 16 Divorce Rates: 1995/2000/2002/2004/2006-2007 ........................................................... 14 Table 17 Marriage Rates (actual growth): 1995-2007/2000-2007 .................................................. 14 Divorce Rates (actual growth): 1995-2007/2000-2007 .................................................... 14 Table 18 Table 19 Population by Highest Educational Attainment: 1995/2000/2002/2004/20062007 ................................................................................................................................. 14 Population by Highest Educational Attainment: 1995/2000/2007/1995Table 20 2007/2000-2007 ............................................................................................................... 15 Table 21 Literacy Rates: 1995/2000/2002/2004/2006-2007 ........................................................... 15 Table 22 Literacy Rates (actual growth): 1995-2007/2000-2007.................................................... 15 Table 23 Population by Urban Rural Locations and Major Cities: 1995/2000/2002/2004/2006-2007 .................................................................................... 16 Table 24 Population by Urban Rural Locations/Major Cities (% analysis, % growth): 1995/2000/2007/1995-2007/2000-2007........................................................................... 16 Table 25 Population Density: 1995/2000/2002/2004/2006-2007.................................................... 16 Table 26 Population Density (% growth): 1995-2007/2000-2007 .................................................. 16 Consumer Segmentation ....................................................................................................................................... 17 Babies and Infants ................................................................................................................................................... 17 Kids ......................................................................................................................................................................... 18

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Tweenagers ............................................................................................................................................................. 18 Teens ....................................................................................................................................................................... 19 Students ................................................................................................................................................................... 20 People in Their Twenties ......................................................................................................................................... 21 People in Their 30s.................................................................................................................................................. 21 Middle-aged Adults ................................................................................................................................................. 22 Pensioners ............................................................................................................................................................... 23 Table 27 Babies and Infants: 1995/2000/2005/2007/2010/2015..................................................... 24 Babies and Infants (% growth): 1995-2007/2007-2015 ................................................... 24 Table 28 Table 29 Kids: 1995/2000/2005/2007/2010/2015........................................................................... 24 Kids (% growth): 1995-2007/2007-2015 ......................................................................... 24 Table 30 Table 31 Tweenagers: 1995/2000/2005/2007/2010/2015 ............................................................... 24 Table 32 Tweenagers (% growth): 1995-2007/2007-2015.............................................................. 24 Table 33 Teens: 1995/2000/2005/2007/2010/2015......................................................................... 25 Table 34 Teens (% growth): 1995-2007/2007-2015 ....................................................................... 25 Table 35 People in their 20s: 1995/2000/2005/2007/2010/2015..................................................... 25 Table 36 People in their 20s (% growth): 1995-2007/2007-2015 ................................................... 25 Table 37 People in their 30s: 1995/2000/2005/2007/2010/2015..................................................... 25 Table 38 People in their 30s (% growth): 1995-2007/2007-2015 ................................................... 25 Table 39 Middle-aged Adults: 1995/2000/2005/2007/2010/2015 .................................................. 26 Table 40 Middle-aged Adults (% growth): 1995-2007/2007-2015................................................. 26 Table 41 Older Population: 1995/2000/2005/2007/2010/2015 ....................................................... 26 Table 42 Older Population (% growth): 1995-2007/2007-2015...................................................... 26 Households ............................................................................................................................................................. 26 Household by the Number of Occupants ................................................................................................................. 26 Household Annual Disposable Incomes .................................................................................................................. 27 Home Ownership..................................................................................................................................................... 28 Possession of Household Durables ......................................................................................................................... 29 Pet Population......................................................................................................................................................... 29 Table 43 Households by Number of Occupants: 1995/2000/2002/2004/2006-2007....................... 30 Table 44 Households by Number of Occupants (% analysis and % growth): 1995/2000/2007/1995-2007/2000-2007........................................................................... 30 Occupants per Household: 1995/2000/2002/2004/2006-2007 ......................................... 30 Table 45 Table 46 Occupants per Household (actual growth): 1995-2007/2000-2007.................................. 31 Table 47 Number of Households by Disposable Income Bracket: 1995/2000/2002/2004/2006-2007 .................................................................................... 31 Table 48 Number of Households by Disposable Income Bracket (% analysis and % growth): 1995/2000/2007/1995-2007/2000-2007 ............................................................ 31 Table 49 Total Housing Stock and New Dwellings Completed: 1995/2000/2005/2007/2010/2015 .................................................................................... 32 Table 50 Total Housing Stock and New Dwellings Completed (% growth): 19952007/2007-2015 ............................................................................................................... 32 Households by Tenure and Type of Dwelling: Table 51 1995/2000/2005/2007/2010/2015 .................................................................................... 32 Table 52 Households by Tenure and Type of Dwelling (% analysis and % growth): 1995/2000/2007/1995-2007/2007-2015........................................................................... 32 Table 53 Households by Number of Rooms: 1995/2000/2002/2004/2006-2007 ............................ 33 Table 54 Households by Number of Rooms (% analysis and % growth): 1995/2000/2007/1995-2007/2000-2007........................................................................... 33 Table 55 Ownership of Household Durables: 1995/2000/2005/2007/2010/2015 ........................... 33 Table 56 Ownership of Household Durables by Type (actual growth): 19952007/2007-2015 ............................................................................................................... 34 Household Segmentation....................................................................................................................................... 34

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Single-person Households ....................................................................................................................................... 35 Couples With No Children....................................................................................................................................... 35 Couples With Children ............................................................................................................................................ 36 Single-parent Families ............................................................................................................................................ 36 Table 57 Households by Type: 1995/2000/2005/2007/2010/2015 ................................................. 37 Table 58 Household by Type (% analysis and % growth) 1995/2007/2015-/19952007/2007-2015 ............................................................................................................... 37 Labour.................................................................................................................................................................... 37 Working Conditions................................................................................................................................................. 37 Employed Population by Age .................................................................................................................................. 38 Unemployed Population by Age .............................................................................................................................. 39 Alternative Work Forms .......................................................................................................................................... 40 Table 59 Employed Population by Age Group: 1995/2000/2002/2004/2006-2007 ........................ 40 Table 60 Employed Population by Age Group (% analysis and % growth): 1995/2000/2007/1995-2007/2000-2007........................................................................... 41 Table 61 Unemployed Population by Age Group: 1995/2000/2002/2004/2006-2007.................... 41 Table 62 Unemployed Population by Age Group (% analysis and % growth): 1995/2000/2007/1995-2007/2000-2007........................................................................... 42 Table 63 Unemployment Rate: 1995/2000/2002/2004/2006-2007 ................................................. 42 Table 64 Unemployment Rate (actual growth): 1995-2007/2000-2007.......................................... 42 Table 65 Part-time Employment by Sex: 1995/2000/2002/2004/2006 ........................................... 42 Table 66 Part-time Employment by Sex (% analysis and % growth) 1995/2000/2006: /1995-2006/2000-2006..................................................................................................... 43 Income .................................................................................................................................................................... 43 Annual Disposable Income...................................................................................................................................... 43 Income by Educational Attainment.......................................................................................................................... 43 Income by Gender ................................................................................................................................................... 44 Table 67 Mean Annual Disposable Income by Education and Gender: 1995/2000/2002/2004/2006-2007 .................................................................................... 45 Table 68 Mean Annual Disposable Income by Education and Gender (% growth): 1995-2007/2000-2007...................................................................................................... 45 Consumer Expenditure ......................................................................................................................................... 45 Spending on Consumer Goods and Services ........................................................................................................... 45 Consumer Expenditure by Product Type: 1995/2000/2005/2007/2010/2015 .................. 47 Table 69 Table 70 Consumer Expenditure by Product Type (% analysis and % growth) 1995/2007/2015-/1995-2007/2007-2015.......................................................................... 47 Table 71 Consumer Expenditure by Commodity Type: 1995/2000/2005/2007/2010/2015 .................................................................................... 47 Consumer Expenditure by Commodity Type (% analysis and % growth) Table 72 1995/2007/2015-/1995-2007/2007-2015.......................................................................... 48 Table 73 Consumer Prices and Costs: 1995/2000/2002/2004/2006-2007....................................... 48 Table 74 Consumer Prices and Costs (actual growth): 1995-2007/2000-2007 ............................... 48 Food and Non-alcoholic Drinks............................................................................................................................ 48 Spending on Food and Non-alcoholic Drinks ......................................................................................................... 48 Spending on Soft and Hot Drinks ............................................................................................................................ 49 Shopping for Food and Non-alcoholic Drinks......................................................................................................... 50 Eating Habits........................................................................................................................................................... 51 Table 75 Consumer Expenditure on Food and Non-alcoholic Drinks: 1995/2000/2002/2004/2006-2007 .................................................................................... 52 Table 76 Consumer Expenditure on Food and Non-alcoholic Drinks (% analysis and % growth): 1995/2000/2007/1995-2007/2000-2007........................................................ 52

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Table 77 Table 78

Per Capita Expenditure on Food and Non-alcoholic Drinks: 1995/2000/2002/2004/2006-2007 .................................................................................... 52 Per Capita Expenditure on Food and Non-alcoholic Drinks (% growth): 1995-2007/2000-2007...................................................................................................... 53

Alcoholic Drinks and Tobacco.............................................................................................................................. 53 Spending on Alcoholic Drinks ................................................................................................................................. 53 Spending on Tobacco .............................................................................................................................................. 54 Shopping for Alcohol and Tobacco Products .......................................................................................................... 54 Drinking Habits....................................................................................................................................................... 55 Smoking Habits ....................................................................................................................................................... 55 Consumer Expenditure on Alcoholic Drinks and Tobacco: Table 79 1995/2000/2002/2004/2006-2007 .................................................................................... 56 Consumer Expenditure on Alcoholic Drinks and Tobacco (% analysis and % Table 80 growth): 1995/2000/2007/1995-2007/2000-2007 ............................................................ 56 Table 81 Per Capita Expenditure on Alcoholic Drinks and Tobacco: 1995/2000/2002/2004/2006-2007 .................................................................................... 56 Table 82 Per Capita Expenditure on Alcoholic Drinks and Tobacco (% growth): 19952007/2000-2007 ............................................................................................................... 56 Clothing and Footwear.......................................................................................................................................... 57 Spending on Clothing and Footwear....................................................................................................................... 57 Shopping for Clothing and Footwear ...................................................................................................................... 57 Traditional Clothing................................................................................................................................................ 58 Fashion Trends........................................................................................................................................................ 59 Table 83 Consumer Expenditure on Clothing and Footwear: 1995/2000/2002/2004/2006-2007 .................................................................................... 59 Consumer Expenditure on Clothing and Footwear (% analysis and % Table 84 growth): 1995/2000/2007/1995-2007/2000-2007 ............................................................ 59 Table 85 Per Capita Expenditure on Clothing and Footwear: 1995/2000/2002/2004/2006-2007 .................................................................................... 60 Table 86 Per Capita Expenditure on Clothing and Footwear (% growth): 19952007/2000-2007 ............................................................................................................... 60 Housing................................................................................................................................................................... 60 Spending on Housing............................................................................................................................................... 60 Renting Vs. Buying .................................................................................................................................................. 61 Utility Costs............................................................................................................................................................. 62 Maintenance and Repair ......................................................................................................................................... 63 Table 87 Consumer Expenditure on Housing: 1995/2000/2002/2004/2006-2007 .......................... 63 Consumer Expenditure on Housing (% analysis and % growth): Table 88 1995/2000/2007/1995-2007/2000-2007........................................................................... 64 Table 89 Per Capita Expenditure on Housing: 1995/2000/2002/2004/2006-2007.......................... 64 Table 90 Per Capita Expenditure on Housing (% growth): 1995-2007/2000-2007 ........................ 64 Household Goods and Services............................................................................................................................. 64 Spending on Household Goods and Services .......................................................................................................... 64 Shopping for Household Goods............................................................................................................................... 65 Cooking Habits........................................................................................................................................................ 66 Do-it-yourself and Gardening ................................................................................................................................. 66 Table 91 Consumer Expenditure on Household Goods and Services: 1995/2000/2002/2004/2006-2007 .................................................................................... 67 Table 92 Consumer Expenditure on Household Goods and Services (% analysis and % growth): 1995/2000/2007/1995-2007/2000-2007 ............................................................ 67 Table 93 Per Capita Expenditure on Household Goods and Services: 1995/2000/2002/2004/2006-2007 .................................................................................... 68

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Table 94

Per Capita Expenditure on Household Goods and Services (% growth): 1995-2007/2000-2007...................................................................................................... 68

Health Goods and Medical Services..................................................................................................................... 68 Spending on Health Goods and Medical Services ................................................................................................... 68 Healthcare System................................................................................................................................................... 69 Major Causes of Death............................................................................................................................................ 70 Smoking Prevalence ................................................................................................................................................ 71 Reported Aids Cases................................................................................................................................................ 71 Drug Abuse.............................................................................................................................................................. 72 Health and Wellness................................................................................................................................................ 73 Table 95 Consumer Expenditure on Health Goods and Medical Services: 1995/2000/2002/2004/2006-2007 .................................................................................... 74 Table 96 Consumer Expenditure on Health Goods and Medical Services (% analysis and % growth): 1995/2000/2007/1995-2007/2000-2007 ................................................. 74 Table 97 Per Capita Expenditure on Health Goods and Medical Services: 1995/2000/2002/2004/2006-2007 .................................................................................... 75 Table 98 Per Capita Expenditure on Health Goods and Medical Services (% growth): 1995-2007/2000-2007...................................................................................................... 75 Table 99 Share of Total Health Expenditure in GDP: 1995/2000/2002/2004/2006........................ 75 Table 100 Healthy Life Expectancy at Birth: 1995/2000/2002/2004/2006....................................... 75 Table 101 Healthy Life Expectancy at Birth (actual growth): 1995-2006/2000-2006 ...................... 75 Table 102 Healthcare Workers: 1995/2000/2002/2004/2006-2007 .................................................. 76 Table 103 Healthcare Workers (% growth): 1995-2007/2000-2007................................................. 76 Table 104 Major Causes of Death by Disease: 1995/2000/2002/2004/2006-2007 ........................... 76 Major Causes of Death by Disease (% growth): 1995-2007/2000-2007.......................... 76 Table 105 Obese Population: 1995/2000/2002/2004/2006-2007...................................................... 77 Table 106 Table 107 Obese Population (actual growth): 1995-2007/2000-2007............................................... 77 Table 108 Smoking Prevalence: 1995/2000/2002/2004/2006-2007 ................................................. 77 Smoking Prevalence (actual growth): 1995-2007/2000-2007.......................................... 77 Table 109 Table 110 Reported AIDS Cases: 1995/2000/2002/2004/2006-2007 ............................................... 77 Reported AIDS Cases (% growth): 1995-2007/2000-2007.............................................. 78 Table 111 Transport ............................................................................................................................................................... 78 Spending on Transport ............................................................................................................................................ 78 Air Transport........................................................................................................................................................... 79 Road Transport ....................................................................................................................................................... 79 Rail Transport ......................................................................................................................................................... 80 Transport Infrastructure.......................................................................................................................................... 81 Table 112 Consumer Expenditure on Transport: 1995/2000/2002/2004/2006-2007 ........................ 81 Table 113 Consumer Expenditure on Transport (% analysis and % growth): 1995/2000/2007/1995-2007/2000-2007........................................................................... 81 Table 114 Per Capita Expenditure on Transport: 1995/2000/2002/2004/2006-2007........................ 82 Table 115 Per Capita Expenditure on Transport (% growth): 1995-2007/2000-2007....................... 82 Communication ..................................................................................................................................................... 82 Spending on Communications ................................................................................................................................. 82 Television, Cable and Satellite ................................................................................................................................ 83 Printed Media.......................................................................................................................................................... 84 Telephones............................................................................................................................................................... 85 Computers and Internet........................................................................................................................................... 86 E-commerce............................................................................................................................................................. 87 M-commerce............................................................................................................................................................ 87 Table 116 Consumer Expenditure on Communications: 1995/2000/2002/2004/20062007 ................................................................................................................................. 88

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Table 117 Table 118 Table 119 Table 120 Table 121 Table 122 Table 123 Table 124 Table 125 Table 126 Table 127

Consumer Expenditure on Communications (% analysis and % growth): 1995/2000/2007/1995-2007/2000-2007........................................................................... 88 Per Capita Expenditure on Communications: 1995/2000/2002/2004/20062007 ................................................................................................................................. 88 Per Capita Expenditure on Communications (% growth) 1995-2007/20002007: ................................................................................................................................ 88 Penetration of Televisions and Number of TV Channels: 1995/2000/2002/2004/2006-2007 .................................................................................... 89 Penetration of Televisions and Number of TV Channels (% growth): 19952007/2000-2007 ............................................................................................................... 89 Penetration of Cable and Satellite Television: 1995/2000/2002/2004/20062007 ................................................................................................................................. 89 Penetration of Cable and Satellite Television (% growth): 1995-2007/20002007 ................................................................................................................................. 89 National and International Phone Calls, Telephone Lines in Use and Mobile Phone Users: 1995/2000/2002/2004/2006 ....................................................................... 89 National and International Phone Calls, Telephone Lines in Use and Mobile Phone Users(% growth): 1995-2006/2000-2006.............................................................. 90 Household PC Penetration and Internet Usage: 2000/2002/2004/2006-2007 .................. 90 Household PC Penetration and Internet Usage (% growth): 2000-2007 .......................... 90

Leisure and Recreation ......................................................................................................................................... 90 Spending on Leisure and Recreation....................................................................................................................... 90 Shopping for Leisure Goods.................................................................................................................................... 91 Leisure Time............................................................................................................................................................ 92 Culture..................................................................................................................................................................... 93 Attitudes Towards Sport .......................................................................................................................................... 94 Travel and Tourism ................................................................................................................................................. 94 Table 128 Consumer Expenditure on Leisure and Recreation: 1995/2000/2002/2004/2006-2007 .................................................................................... 95 Consumer Expenditure on Leisure and Recreation (% analysis and % Table 129 growth): 1995/2000/2007/1995-2007/2000-2007 ............................................................ 95 Table 130 Per Capita Expenditure on Leisure and Recreation: 1995/2000/2002/2004/2006-2007 .................................................................................... 96 Per Capita Expenditure on Leisure and Recreation (% growth): 1995Table 131 2007/2000-2007 ............................................................................................................... 96 Education ............................................................................................................................................................... 96 Spending on Education............................................................................................................................................ 96 Pre-primary Education............................................................................................................................................ 97 Primary and Secondary Education.......................................................................................................................... 97 Higher Education .................................................................................................................................................... 98 Adult Education....................................................................................................................................................... 99 Table 132 Consumer Expenditure on Education: 1995/2000/2002/2004/2006-2007........................ 99 Table 133 Consumer Expenditure on Education (% growth): 1995-2007/2000-2007 .................... 100 Per Capita Expenditure on Education: 1995/2000/2002/2004/2006-2007 ..................... 100 Table 134 Table 135 Per Capita Expenditure on Education (% growth): 1995-2007/2000-2007.................... 100 Hotels and Catering............................................................................................................................................. 100 Spending on Hotels and Catering.......................................................................................................................... 100 Going Out.............................................................................................................................................................. 101 Eating Out ............................................................................................................................................................. 102 Spending on Accommodation Services .................................................................................................................. 103 Table 136 Consumer Expenditure on Hotels and Catering: 1995/2000/2002/2004/20062007 ............................................................................................................................... 103

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Table 137 Table 138 Table 139

Consumer Expenditure on Hotels and Catering (% analysis and % growth): 1995/2000/2007/1995-2007/2000-2007......................................................................... 104 Per Capita Expenditure on Hotels and Catering: 1995/2000/2002/2004/20062007 ............................................................................................................................... 104 Per Capita Expenditure on Hotels and Catering (% growth): 19952007/2000-2007 ............................................................................................................. 104

Miscellaneous Goods and Services ..................................................................................................................... 104 Spending on Miscellaneous Goods and Services................................................................................................... 104 Personal Hygiene and Personal Grooming........................................................................................................... 105 Shopping for Cosmetics and Toiletries.................................................................................................................. 106 Pensions ................................................................................................................................................................ 106 Banking, Savings and Financial Services.............................................................................................................. 107 Consumer Expenditure on Miscellaneous Goods and Services: Table 140 1995/2000/2002/2004/2006-2007 .................................................................................. 108 Table 141 Consumer Expenditure on Miscellaneous Goods and Services (% analysis and % growth): 1995/2000/2007/1995-2007/2000-2007 ............................................... 108 Table 142 Per Capita Expenditure on Miscellaneous Goods and Services: 1995/2000/2002/2004/2006-2007 .................................................................................. 109 Table 143 Per Capita Expenditure on Miscellaneous Goods and Services (% growth): 1995-2007/2000-2007.................................................................................................... 109 Definitions ............................................................................................................................................................ 109 Summary 1 Country Coverage .......................................................................................................... 109

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CONSUMER LIFESTYLES IN FRANCE
STRUCTURE OF THE REPORT
This report forms part of the report series that complements the Euromonitor International Countries and Consumer Database. Each country profile is structured under the following sub-headings: • • • • • • • • • • • • • • • • • • Population Consumer segmentation Households Household segmentation Labour Income Consumer expenditures Food and non-alcoholic drinks Alcoholic drinks and tobacco Clothing and footwear Housing Household goods and services Transport Communications Leisure and recreation Education Hotels and catering Miscellaneous goods and services

The information in this report was gathered from a wide range of sources, starting with national statistics offices. This information was cross-checked for consistency, probability and mathematical accuracy. Secondly, we sought to fill in the gaps in the official national statistics by using private-sector surveys and official pan-regional and global sources. Furthermore, Euromonitor International has carried out an extensive amount of modelling in order to come up with interesting data sets to complement the national standards available. The wide range of sources used in the compilation of this report means that there are occasional discrepancies in the data, which we were not able to reconcile in every instance. Even when the data is produced by the same national statistical office on a specific parameter, like the total population in a particular year, discrepancies can occur depending on whether it was derived from a survey, a national census or a projection and whether the data is based on mid-year or January figures. For slow trends where it is interesting to look at a long period as well as projections, data is presented for 1995, 2000, 2005, 2007, 2010 and 2015. Fast-moving trends are illustrated with data sets relating to 1995, 2000, 2002, 2004 and 2006-2007.

CONSUMER TRENDS IN FRANCE

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Population Ageing: A Cultural and Social Phenomenon
Ageing populations affect most of Europe. However, in France population ageing is having wide-ranging social and financial impacts, manifest most notably in the ongoing pension financing problem and the looming difficulties in maintaining a high standard of living. In the long-term, any solution for curbing revenue loss for older workers and pensioners will impact their power and ability to consume. For now, people past middle age represent a key market mostly because of their buying power, their financial assets and their high rates of debtfreedom. French marketing expert Jean-Paul Tréguer estimates that the population aged 50-years-old and over will account for 60% of the national income and 40% of the population within the next 25 years. The “senior marketing” movement is a reality in France and has been since the end of the 1990s when the greying of the population started to become very noticeable. However, older French people do not want to be treated like old people, nor do they enjoy the traditional clichés associated with old age. The baby-boomers are now approaching retirement age and want to remain active. They are very conscious of their health and appearance, and several studies have shown that the 50+ age category wants to remain youthful. Baby-boomers are active and in good health due to progress in medical treatment and vitamin consumption and do not perceive themselves as “seniors”. Marketing experts are learning to appeal to older consumers without treating them as such. These consumers represent the categories with the most disposable income and time to consume. Outlook Pension plans are becoming increasingly tailored to individual needs. France used to have a strong centralised pension system based on private-public cooperation between governments, companies and trade unions. However, rising unemployment and increasing pressure on the current working population will result in more and more people turning to private solutions. These include hedge funds, savings accounts and long-term payment plans. Many French people are deeply worried about their economic futures. In 2007 the government announced its intention to raise the retirement age, further adding to French fears about the future. This has not stopped the current generation of older consumers from being among the most active people in French society – 60% of older people engage in athletic activities regularly and maintain healthy diets. French women, in particular, enjoy dressing well and wearing tailored clothing even after retirement. They also enjoy luxury anti-ageing creams and treatments. Impact With a third of the population projected to be over the age of 60 in 2025, there is much concern about future generations of workers and the role they will play in ensuring national financial security. Young people are entering the workforce increasingly late as studies take up more and more time. They will also have to work longer in order to expect decent pensions themselves. The French job market is flawed, and France has one the highest rates of unemployment in Europe. Graduates find it hard to establish themselves and must often start with several work experience schemes to survive. Unsurprisingly, this has led many young people to return to live in their parents’ home and delay such things as buying a house or getting married. French people have started settling later and later.

A Return To Natural and Authentic Food?
In France, eating is a vital as well as a cultural act. France has always been the country of gastronomic celebration and refined cuisine. Nonetheless, like many other countries, France did not resist the “fast-food” craze: fast-food chains and the “American way of life” became very popular in the early 1970s with the opening of the first French McDonald’s restaurant in 1972 in Paris. However, “fast food” has been going through a crisis since the late 1990s with the rise the “Farmers’ Confederation” and French cultural exceptionalism. Since then, France has been experiencing two main trends in attitudes towards food. First, as a 2007 study published by the French National Statistics Organisation (INSEE) observed, the percentage of income spent on household food has been reduced by half since the 1960s, from 25% to 12% in 2006. Second, 41% of household

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food spending goes towards healthy, ready-made meals comprising mainly of meat, fish and vegetables. France ranks near the bottom in European fruit and vegetable consumption. Paradoxically enough, the French are very attached to the promotion of traditional farmhouse food. The farmer himself is becoming something of a national hero. French people are very nostalgic about what they call “Produits Artisanaux du Terroir” and have a particular attachment to sustainable farming and traditional methods of production (important in the case of butter, biscuits, wine and regional specialities). French consumers increasingly look for branded products bearing the “Produits Artisanaux du Terroir” label. Outlook The strong cultural attachment in France to French food has prevented the fast-food trend from spreading as much as it has in other countries. However, there is no deep French resistance towards fast-food. What sets the French apart is the way they try to integrate fast-food into a healthy diet. Fast-food chains are starting to adapt to the French way of life by offering hamburgers with Roquefort cheese and local ham, or traditional Breton pancakes, amongst other things. A few companies have even started to offer take-away pasta with a choice of several healthy sauces, as well as a selection of regional salads. Impact Strangely enough, France was one of the last European countries to pick up the organic food trend. Supermarkets devote only small sections to this category, gathering everything from organic washing powder and household detergents to fresh produce and organic biscuits in one small space. The main reason for this is the presence of traditional French markets in nearly every town. These sell organic produce directly from the farmer and thus avoid supermarket price mark-ups. Organic food is considered expensive; a 2008 survey from the French Public Opinion Institute (IFOP) showed that 94% of the population considered organic food to be too expensive. Still, a 2004 survey established that 44% of people bought organic produce regularly, with some 20% making organic purchases every week.

Luxury Brands in France
According to a survey undertaken for an on-line clothing company, French people love luxury clothing brands and systematically look out for them when shopping. Luxury clothing prices have not come down however and French average incomes have not risen to the point where such clothing could become affordable on a regular basis. Nonetheless, as legendary French fashion designer Coco Chanel observed, “Luxury is in our blood”. All consumer categories consider price to be a significant variable when they shop for clothing. This explains the great popularity of high street stores – like H&M and Zara – that sell affordable fashion. However, the rise in the number of on-line discount luxury brand stores like Brandalley and Avenue des Marques (among many others) shows that French people prefer expensive fashion at a discount. The internet has driven this trend because it enables retailers to advertise past collections for a longer period of time. Websites like e-Bay have experienced tremendous success in France because people can swap items and pay the price they judge right for an article. Luxury and vintage items on e-Bay are highly sought after. The French – and young French people in particular – monitor fashion trends in London and New York and often copy them. However, their preference for luxury brands has remained a French signature and famous houses like Dior have an increasing percentage of younger clients. Companies like Dior have understood that they need to diversify their offer in order to attract younger consumers who will remain loyal to their brand as they grow older. Dior has extended its range of sunglasses and scarves at more affordable prices for younger clients. Outlook The luxury trend does not seem to extend to anything more than clothing and is not predicted to change in any way. French consumers generally avoid using credit so their buying habits are safe and not threatened by mounting debts. Luxury brands have had little success making inroads anywhere else in French society. Housing and holiday trends are still very much influenced by the imperatives of saving money and recycling. French people are great fans of do-it-yourself (DIY) and increasingly choose cheap last-minute flights and destinations for their holidays.

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Impact The French luxury brand Lacoste has found that its most important category of clients is made up of young urban men from council estates who have adopted the brand’s clothing as representative of their style. Lacoste has not been entirely comfortable with the publicity but it has certainly boosted its sales. Other brands such as Longchamp and Louis Vuitton are facing similar situations as young women are being given increasing amounts of pocket money to spend. Higher incomes mean that people can afford luxury items at a younger age. One of the main dangers of this trend – younger consumers with limited incomes pursuing luxury labels – is the increasing number of counterfeit goods coming from northern Africa and Asia and smuggled through Mediterranean roads and ports. French trademark law is extremely severe and punishes counterfeiters with long prison sentences.

New Attitudes Towards Housing
Two property trends have influenced French habits within the last decade. First, increased housing prices in city centres that used to be cheap (in south western France, for example) have pushed many households into the suburbs. French suburbs are becoming increasingly built-up, eventually forming little towns of their own. Many people prefer a semi-detached house with a garden to a small flat in a crowded and polluted city centre. The quality of living is much higher in French suburbs than in town centres which feature regular pollution alerts. Second, many French people do their own repair and maintenance work to avoid having to pay for the service. French people tend to visit DIY stores on average seven times a year with peaks during the Christmas and Easter holidays and weekends. French people also enjoy decorating their homes and entertaining friends there. Outlook The green trend is starting to spread to other categories of goods, such as cars and housing. French consumers are encouraged to buy hybrid cars through such incentives as tax credits and permits to drive during pollution peaks. Public transport is also gaining in popularity as new tram lines are being built. Existing lines will be extended in the future as cities continue growing further and further out. Growing demand for public transport means that current capacity is being strained. Congestion is a major problem in France and is starting to affect areas where it never existed before. Parts of western France that traditionally have been sparsely populated are starting to see more and more cars arriving. As more areas are being built up and urbanised, open space is becoming a rarity in France. Impact “Cocooning” is a new trend that is starting to concern many households. Because many people cannot afford to go out as much as they used to – due to trends like rising restaurant prices, for example – they prefer to entertain family and friends in their own homes. Many younger people learn to cook proper French food, rent a DVD and ask their friends around. The popularity of cookery books featuring budget entertaining is rising. French people like staying at home so much that they are becoming known as “nesters” who do everything at home, including socialising and exercise. New technologies like the internet and broadband have made this possible in the 2000s.

Healthy Minds, Healthy Bodies?
Traditional French cooking is considered special and is reserved for special occasions when there is time to prepare it. French lifestyles are becoming increasingly dictated by the need for speed, especially where meals are concerned. Although fast-food has not experienced the same level success it has in other countries, French people still eat “junk food” and easily prepared meals. According to a 2006 FHM survey, pasta is the favoured food by 41% of men followed by pizza.

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Women tend to eat more healthily but those with children must arrange their meal times and food choices around their children’s. This means that they will eat quickly, late and increasingly badly. Most French women are now working more than they used to and do not have time to cook proper meals. Men admit to cooking between one and two meals a week. This has led the French to start taking better care of their bodies. More than 70% exercise at one point during the week and try to eat more healthily. Snacking is not a very developed practice in French culture and this has helped many people maintain their weight. Only children have an afternoon snack called the “goûter”, but portions are calculated minutely and individual portions are sold for this purpose. Long school hours have the unexpected advantage of preventing children and students from eating too much during the afternoon. The French are also making efforts to cut down on smoking and drinking. Outlook Vitamins and food supplements will never be as popular in France as they are in some other European countries. There are so many restricted substances and plants that fully developing this market will not be possible for a long time. French scientists are wary of many substances and have only just recently given the green light to commercialise Red Bull. France will not become a leader in terms of health although it is making an effort. Food and good living are engrained so deeply in French culture that it will be hard to convince people to stop eating foie gras or drinking wine. Impact These attitudes and trends explain why the obesity rate is relatively low in France (10% of the population, though with more men than women being obese) compared to countries like Germany (19.4%) and the UK (24.2%) in 2005. Still, the French have developed a taste for ready-made meals that is starting to hurt their health. Lifestyles are organised in a way that cooking meals is not always possible. Although France has never had a binge-drinking problem like some other European countries, it still has problems of its own, including drink-driving and smoking. The excuse of “culture” will always be invoked in France to justify certain types of behaviour, particularly that of smoking amongst young people and women. However, awareness campaigns are trying to curb these dangerous types of behaviour and have managed to reduce the number of deaths. Cancer is the leading cause of death in France.

POPULATION
Population Changes
France’s global population (metropolitan and overseas, i.e. French territories in the Caribbean and in Africa that are considered French regions – like Guadeloupe, Martinique and New Caledonia) increased by 6.3% between 1995 and 2007 to reach just over 63.41 million people. In 2007, France became the second most populous country in the EU (after Germany) and now accounts for 13% of the EU population. The French population structure is typical of many modern industrialised countries. However, France possesses certain specific characteristics that need to be emphasised. France has always been associated with conflicting cultural trends: progressive on healthcare access (“Sécurité Sociale”) and the treatment of migrant populations from former French colonies, but somewhat conservative concerning the role and place of women in society. These trends have evolved and their evolution is reflected in the population structure. Although the total population increased steadily between 1995 and 2007, this concealed great disparities in the growth rates of specific age groups. The ageing of the French population and declining birth rates are the most striking examples. The median age of the population is high and has increased continuously over the 1995-2007 period. With an average age of 39.18-years-old in 2007, the French population is approximately nine years older than the rest of the CLIFE countries’ population. This trend is expected to evolve along similar lines until at

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least 2015, when the average age will have reached 40.9 years. Life expectancy data also reveals a similar situation. With an increase of 93.7% over the 1995-2007 period, the category of 75-79-year-olds experienced the most important growth rate. A high growth rate was also recorded for the 80-year-old+ group with an increase of 23.8% over the same period. Conversely, the young persons category experienced negative growth (on average 2.3% for the grouped categories age 0-34-years from 1995-2007). This trend will almost certainly continue for the 2007-2015 period although increasing birth rates will enable some categories to return to positive growth. According to the UN, in 2003, 19% of the population was under 15-years-old and approximately 16% was over the age of 65. This near symmetry in age groups is typical of an ageing population. Immigration flows to France were high up until quite recently with the introduction of severe immigration laws and the rise of the National Front during the 2002 Presidential elections. The underlying drivers of immigration flows from former French colonies have also evolved. Work-related migration from northern Africa and Eastern Europe has been complemented by the promotion of refugee and family-reunion policies. The traditional “assimilation” policy has suffered from growing hostility towards migrant populations. Net migration was estimated at 95,300 in 2006, a 12.9% drop from 2004 and a continuation of the downward trend initiated in 2002. France’s situation is different from that in other European countries; migratory movements make up a quarter of population growth, whereas they represent 80% of population growth in the EU, according to the French Statistic Institute (INSEE) in 2006. Population replacement rates were low in 2007 as illustrated by the fertility rate – 1.98 children per women on average, according to the French Statistic Institute. Despite having one of the highest fertility rates in Europe, generational renewal will continue to be slow and symptomatic of an ageing population. The number of births increased importantly in 2000 for the first time since the early 1980s. The slow decline in death rates (-1.4% during the 1995-2007 period) also helped explain not only an increase in the total French population but also an ageing population structure. However, this general tendency will not be enough for long-lasting population increase. A few other factors also explain French population ageing. First, access to healthcare is the most relevant factor along with improvements in healthcare efficiency. The French health system is almost completely nationalised so individual contributions need only be minimal. Second, the French pensions system encourages high pension rates throughout one’s working life. Legislation has made employer contributions to individual pensions compulsory. The loss of income at retirement is minimal, and many pensioners enjoy a relatively high standard of living. Finally, women’s increased access to work has resulted in many women delaying childbirth and having smaller families. Impact The ageing of France has become something of a cultural and societal phenomenon; a day does not go by without it being mentioned in one way or another in the media. Pensions financing has increased the contribution burden each worker carries as the number of pensioners has risen steadily since the early 1990s. This has been accompanied by a parallel increase in income tax rates. Financing the pension system will be an ongoing problem for the French government as life expectancy rises and younger workers face tougher employment conditions. It is not surprising that trade union activity as well as the number of protests has increased significantly since the introduction of statutes limiting effective work times (2005) and modifying the pension system (2003). During the 1990s and the early 2000s, French society went through immense social changes in attitudes towards work and leisure time. Indeed, while work was the value central to many households in the early 20th century, leisure and relaxation have taken over in the lives of increasing numbers of pensioners. An ageing population also means fewer young people. Some rural areas are now almost exclusively populated by older people. France’s changing attitude towards immigration is reflected in many ways, the most important one being the increase in informal segregation in cities. The “HLM” (rent controlled housing) trend in France is representative of this phenomenon. Indeed, council estates and buildings are mainly occupied by immigrants from northern Africa and are living proof of population changes in France. France’s assimilation policy has suffered from the rise of extreme-right movements, most notably during the 2002 Presidential elections. As immigration flows fall slowly every year, immigrant families in France find themselves even more isolated.

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Population by Gender
Women were 51.4% of the French population in 2007. This is one of the highest in Europe, where they average around 49%. According to the INSEE, 60% of the female population was still under the age of 40 in 2005. However, the female population is increasingly weighted towards older age groups, specifically in the 65+ age group. As in preceding years, the number of women between the ages of 20-40 decreased (-0.4% compared to 2006 and -0.3% per year for ten years). The most obvious illustration would be life expectancy, which was of 84-years for women and 77.1-years for men in 2006. French women generally look after themselves better and eat more healthily than men. Men are more susceptible to liver and lung cancer as well as to diabetes and other diseases stemming from unhealthy lifestyles. France is no different from other developed countries when it comes to the status of women in the workplace, in the household and in society. It is considered anti-constitutional to discriminate on the basis of sex in France. But although attitudes have changed greatly since the 1960s, the place of women in French society is still not something to be taken for granted. Women are generally underrepresented in official positions as well as in positions of responsibility. President Sarkozy surprised many French people when he nominated his government in 2007 as half the positions were given to women. French society has been considered “feminised” since the mid-1990s. More and more women are in the workplace and successfully balance their professional and personal lives. Men are no longer the main breadwinners in the family although women earn, on average, 15%-30% less than their male counterparts, according to the French Feminist Association. Impact Death rates are generally higher for men than for women in France. For example, according to the INSEE, circulatory diseases are responsible for 1.1% female deaths in France against 1.9% male deaths. The difference is even more important regarding cancer where 1.2% of deaths are women and 2.5 % men. However, differences are even more marked and higher in other countries such as Germany, the Netherlands or Spain where women seem to be more vulnerable to these diseases. However, French women seem to have adopted all the “male” behaviours they were previously denied. Women have started smoking and drinking heavily. Indeed, more women than men have started smoking in the 15-24year-old category than ever before. Although equality of sexes is not guaranteed, French women have more freedom than ever before. They are more in control of issues such as contraception and abortion. Abortion has been legal in France since 1975. Contraception is also widely used although it is more expensive than in most other European countries. However, the Social Security system is very comprehensive and reimburses almost any type of contraception (apart from condoms).

Population by Marital Status
The INSEE announced in 2007 that birth rates in France were up, but that most children were being born outside of traditional family structures. Indeed, almost 50.5% of all births in 2007 were to unmarried couples, an increase of more than 10% over the last decade. Nearly a third of the French population was single in 2006; in 1962, only 6.1% were. In 2006, the French supermarket Monoprix launched the first shopping evening reserved exclusively for single people in Paris. The success was immediate and the promotion was adopted by many more supermarkets in France. The proportion of single people is expected to rise over the next few years. The traditional stigma attached to unmarried people has progressively been replaced by acceptance. Unmarried consumers have some of the highest average incomes and consequently, the most buying power. One French psychologist has observed that the typical profile of the single individual has changed tremendously. “They are not so much thirty-somethings but more 40-45 year olds. They usually have been married before and often have children, and this does not make finding a new partner an easy thing.” A 2006 survey indicated that 52% of single people have been in this situation for at least three years. After the passage of the 2003 Divorce Laws, many commentators joked that divorce had become so easy in France that more people would want to get married. The humour did not translate in reality. Indeed, if there was

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a slight increase of 1.6% in the number of marriages in 2005, the general trend confirms that marriage is not as popular as it once was. The number of marriages is at its lowest since 1995. In eight marriages out of ten, the two spouses are marrying for the first time, but this proportion continues to decline compared to remarriages. The average age of newlyweds is around 30-years-old. Indeed, the 2005-2006 period – which saw a 3.2% decline in the number of marriages – is representative of the general situation. It is not clear what exactly underlies this trend. The decline in church attendance might be part of the explanation, though it is more the symbols associated with religion that suffer the most. Indeed, marriage is no longer the symbolic social institution it once was. With the creation of alternative forms of union (civil partnerships such as the “Pacte civil de soildarité” or “PACS”, fiscal and financial cohabitations), the demand for religious and civil marriage ceremonies has declined. Cohabitation has become so popular that 16% of the French population (4.8 million people) lived this way in 2002. Another part of the explanation may be linked to the women’s liberation movement initiated in the mid-1970s and the legalisation of contraception in 1967 and of abortion in 1975. French women no longer feel constrained by traditional notions of family life. While the number of marriages has dropped, the number of divorces has increased sharply: there was indeed an unprecedented rise of 7.8% in 2003 that continued until 2005. This trend is expected to continue over the next few years. French society has adapted to modern times: women are more emancipated and they can choose a partner they do not necessarily want to marry. Indeed, according to the French association “Union Des Familles”, women in 75% of cases initiate divorce proceedings. A final comment has to be made on immigrant populations. In 2005, mixed marriages (between a French national and a foreign national) and marriages between foreign nationals were responsible for 18% of marriages. This figure was lower than in 2004. Impact Changing attitudes in France have strongly impacted two segments of the population in particular. First, being an unmarried adult no longer has the same stigma it once did. The “single” population increased 10.5% from 1995-2007. Since the early 2000s, there has been a boom in products and services aimed exclusively at single people. From the ever-popular ready-meals for one (the most popular being ready-made salads available in individual portions) and cook books for “cooking solo”, to travel agencies that offer tailormade holidays and outings for single people, this market segment has attracted the interest of many companies which now cater specifically to the single person. Figures show that almost 20% of single people spend as much on their holidays as a couple with two children would. Second, homosexuality is also more accepted than it has been in the past. The three million gay people living in France explain the emergence of the “gay marketing” or “gay-friendly” marketing trend. Many companies – particularly those offering alcoholic drinks and cultural products – target this high-income population segment by discreetly adapting their product and service ranges to appeal to gay clientele. Gay holidays have also experienced increasing success with the emergence of companies such as “Gay Travel” or “Touristiquement Gay”. However companies engaging in this market have to be careful not to build their offer on stereotypes, the worst example of this being the failure of the “Pink Tube Ticket” targeted explicitly to gay passengers, or the overly explicit advertisements of a French perfume-maker.

Population by Education
With one of the most demanding educational systems in the world, France has a literacy rate of 99%, a superior record compared to most developed countries in Europe and in the world. In the early 1980s and 1990s, the success of the French system was always associated with the low cost of education (due to the public centralised system) and to the French “35-hour school week” associated with very demanding and regular exams. This was particularly visible in higher education where the number of students enrolled rose by 49.4% during the period of 1995-2007. All segments of the population have access to education, and there has been a constant drop in the number of people who have not completed any education at all. According to the French Education Ministry, over 59% of students live in urban areas and go to a school in one of the major French cities. Population ageing and low birth rates have had an important impact on the structure of the education system. Indeed, though education is more accessible at all levels, the number of people going through the education system has decreased. This has started to become visible in primary education (6-11-year-olds) which

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experienced a decrease of 28.7% from 1995 to 2007. Similar statistics have yet to be observed at secondary and higher levels of education but there was a definite decline in the number of students over the 2000-2007 period. Only 19% of 45-60-year-olds actually held a higher education degree in 2005. This figure indicates that this type of education has only recently been made popular. Social mobility is not high in France and the educational system reflects differences between social classes. Low-income segments of the population will tend to finish their education at the legal age of 16 and find a job immediately. Many individuals from modest backgrounds go into professional courses to learn a trade. There are very few grants or financial loans given to students in France. The French education system has also come under a lot of criticism in the past few years qualitatively. According to an EOCD survey conducted 2000-2006, France’s performance in several disciplines – reading and maths in particular – was showing signs of degradation. Excessive pressure on pupils to perform may be part of the reason for the poor scores obtained by French students in languages and sciences compared to other countries. The main criticism directed at French universities is that studies take too long and degrees do not guarantee a job after graduation. Many people have been discouraged by this and prefer finding a job without a degree. Despite a decline in the number of pupils, the French education system is saturated since the number of pupils per class rises and the number of staff falls every year. Impact France comes to a stand-still during the summer vacation period up until late- to mid-August. From there, the “back-to-school” (“rentrée scolaire”) phenomenon generates great excitement. Supermarkets dedicate entire sections to exercise books, pens, files and organisers. Because families have to purchase all stationery items themselves, there is a general rush to supermarkets in September, as well as several replacement trips throughout the year. As a result of the recent rise in prices, “discount” supermarkets that advertise cheap stationery have become more popular. This is not surprising considering that the cost of school supplies alone for a primary or secondary student was estimated to be €330-€560 in 2006. Despite a demanding and comprehensive educational system, France has a surprising low number of readers. A survey published in 2008 by a leading market research company showed that the number of people reading books or newspapers in France has changed very little since the 1980s, rising only 3% to 69% of the population. The French also score low on the average number of books read every year – only 34% of the population read more than five books in 2007. Cultural goods such as books, films, plays or concerts benefit from a reduced VAT rate, which should encourage access. Approximately 40% of the population sees cultural goods as entertainment rather than opportunities for education and learning. Women have been the major beneficiaries of the French educational system as they are now the largest student group in higher education, particularly dominating literature and social sciences courses. They make up the majority of teachers at 64% in 2002. They are also highly represented in legal professions (50.5% of staff in 2002) and executive positions (a third of all executives are women).

Population by Rural/urban Areas
According to the INSEE, the population of French cities doubled between 1936 and 1999, from 22 to 44.2 million. During those same years, population growth was only 40%. Urban areas now take up 18.4% of French territory, but account for nearly 75% of the French population. Although the rural exodus remained a constant throughout the end of the 1990s and the beginning of the 2000s, it recently slowed down due to a decline in the popularity of urban zones. The French have always valued a high quality of life and the rising pollution and property prices have forced them out of the city centres and into suburban areas. The structure of the urban population has changed. Urban centres are attracting fewer people due to inflated housing prices. The new “urban phenomenon” is the increasing appeal of suburban zones that extend further around city centres and where housing prices are more affordable. Two phenomena mark French society and culture in the 2000s. First, rural areas are suffering from decreased popularity. Some areas have become so deserted that local facilities such as post offices and shops leave too.

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Some people have to drive 30km in order to post a letter of find a butcher or a baker. Some schools have closed and only a few actually have students, who are often grouped together in one class. Older people are particularly vulnerable. The decreasing appeal of rural France means that some areas are experiencing accelerated manifestations of population ageing compared to others. There were 201,977 people over the age of 60 in the Limousin region (central France) compared to 146,352 people under the age of 20 in 2006, according to the INSEE. Similar figures can be found in other central regions (Bourgogne and Auvergne for example). By comparison, 1.95 million people over 60-years-old and almost three million under the age of 20 live in Paris and its suburbs. Secondly, southern France has become increasingly appealing because it is less urbanised and less built-up than the north. Property prices are cheaper and more affordable. This is particularly visible in major urban locations such as Paris or Lille, which is deserted for coastal and sunny areas in western (Brittany) and south western France (the city of Toulouse being the prime example). Major renovation plans were carried out in the 2000s which led to improved infrastructure. The best example of this is the new railway linking Paris to Marseille. Impact Rural exodus and the continuing depopulation of rural areas have had a major impact on the economic structure of some regions. The Massif Central region in the centre of France is often referred to as the “French Desert” as few businesses choose to settle there. Transport and communication infrastructures there are not as developed as in the rest of the country and access to this area remains difficult. A recent British visitor to this region pointed out that staying there was delightful as there were hardly any internet or mobile phone connections. Due to this phenomenon, the price of property in the countryside and in areas of low population density remains cheap. A study conducted by the INSEE in 2004 pointed out that these regions have an employment and an economic structure of their own. In areas where the population is “sparse, rural and very agricultural”, unemployment rates are lower than the national average at 7%. They have learned to adapt to low population levels and the absence of major infrastructure. This situation was contrasted with that of northern industrial and urban France where 12.4% of the population, especially young people and manual workers, was unemployed. Paradoxically, urban populations are very much attracted to the simplicity and comfort of the rural lifestyle. Where some more fortunate people own a country house on top of their primary urban dwelling, many others look for traditional farmhouse food in their supermarkets without actually setting foot in the countryside itself. Urban households are willing to pay a premium for the nostalgia of simple and nourishing farmhouse food: traditional Breton butter is on average 15% more expensive than regular butter or margarine, and locally grown vegetables can have premium of up to 20% from the supermarket prices.
Table 1 '000 1995 0-4 yrs 5-9 yrs 10-14 yrs 15-19 yrs 20-24 yrs 25-29 yrs 30-34 yrs 35-39 yrs 40-44 yrs 45-49 yrs 50-54 yrs 55-59 yrs 60-64 yrs 65-69 yrs 70-74 yrs 75-79 yrs 80+ yrs Female Male TOTAL 3,609 3,817 3,903 3,755 4,239 4,231 4,358 4,280 4,277 4,042 2,816 2,825 2,913 2,699 2,452 1,126 2,410 29,674 28,078 57,753 2000 3,609 3,639 3,847 3,941 3,710 4,186 4,253 4,345 4,244 4,216 3,960 2,747 2,709 2,729 2,446 2,106 2,137 30,257 28,568 58,825 2005 3,834 3,664 3,706 3,920 3,951 3,761 4,296 4,319 4,361 4,219 4,160 3,881 2,664 2,574 2,510 2,133 2,752 31,211 29,495 60,706 2007 3,839 3,774 3,658 3,902 3,897 3,923 4,082 4,327 4,393 4,255 4,132 4,133 3,021 2,473 2,449 2,181 2,970 31,567 29,843 61,410 2010 3,883 3,881 3,728 3,772 3,921 3,993 3,878 4,360 4,331 4,332 4,160 4,074 3,762 2,537 2,380 2,209 3,264 32,089 30,376 62,465 2015 3,866 3,935 3,947 3,796 3,774 3,965 4,110 3,948 4,377 4,307 4,279 4,085 3,961 3,599 2,361 2,114 3,677 32,890 31,211 64,101 Population by Age and Gender: 1995/2000/2005/2007/2010/2015

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Source: Note:

National statistics, UN, Euromonitor International As of 1st January

Table 2

Population by Age and Gender (% analysis and % growth): 1995/2007/2015/19952007/2007-2015

% of total population 1995 0-4 yrs 5-9 yrs 10-14 yrs 15-19 yrs 20-24 yrs 25-29 yrs 30-34 yrs 35-39 yrs 40-44 yrs 45-49 yrs 50-54 yrs 55-59 yrs 60-64 yrs 65-69 yrs 70-74 yrs 75-79 yrs 80+ yrs Female Male TOTAL
Source: Note:

2007 6.25 6.15 5.96 6.35 6.35 6.39 6.65 7.05 7.15 6.93 6.73 6.73 4.92 4.03 3.99 3.55 4.84 51.40 48.60 100.00

2015 6.03 6.14 6.16 5.92 5.89 6.18 6.41 6.16 6.83 6.72 6.67 6.37 6.18 5.61 3.68 3.30 5.74 51.31 48.69 100.00

1995-2007 6.37 -1.12 -6.27 3.93 -8.05 -7.29 -6.33 1.10 2.71 5.27 46.71 46.32 3.71 -8.39 -0.14 93.70 23.26 6.38 6.29 6.33

2007-2015 0.70 4.26 7.90 -2.71 -3.17 1.06 0.70 -8.76 -0.38 1.21 3.55 -1.16 31.13 45.54 -3.57 -3.05 23.79 4.19 4.58 4.38

6.25 6.61 6.76 6.50 7.34 7.33 7.55 7.41 7.41 7.00 4.88 4.89 5.04 4.67 4.25 1.95 4.17 51.38 48.62 100.00
National statistics, UN, Euromonitor International As of 1 January

Table 3 years

Median Age of Population: 1995/2000/2005/2007/2010/2015

1995 Median age of population Median age: CLIFE countries
Source:

2000 37.54 28.03

2005 38.75 29.63

2007 39.18 30.23

2010 39.79 31.05

2015 40.85 32.32

36.11 26.26

National statistics, UN, Euromonitor International

Table 4 Years

Median Age of Population (actual growth): 1995-2007/2007-2015

1995-2007 Median age of population Median age: CLIFE countries
Source: National statistics, UN, Euromonitor International

2007-2015 1.67 2.09

3.07 3.97

Table 5 '000

Population Changes: 1995/2000/2002/2004/2006-2007

1995 Live births Deaths 729.61 531.62

2000 774.78 530.86

2002 761.63 535.14

2004 767.82 509.43

2006 786.70 520.30

2007 783.98 524.05

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Net migration Balance
Source:

-14.57 183.42

131.18 375.09

157.12 383.61

107.63 366.02

95.30 361.70

97.00 356.93

National statistics, UN, Euromonitor International

Table 6 % change

Population Changes (% growth): 1995-2007/2000-2007

1995-2007 Live births Deaths Net migration Balance
Source: Note: National statistics, UN, Euromonitor International As of 1 January

2000-2007 1.19 -1.28 -26.05 -4.84

7.45 -1.42 -765.89 94.59

Table 7

Birth Rates: 1995/2000/2002/2004/2006-2007

per '000 inhabitants 1995 Birth rates Average of CLIFE countries
Source:

2000 13.1 16.7

2002 12.7 15.9

2004 12.7 15.8

2006 12.8 15.6

2007 12.7 14.5

12.6 18.3

National statistics, UN, Euromonitor International

Table 8

Death Rates: 1995/2000/2002/2004/2006-2007

per '000 inhabitants 1995 Death rates Average of CLIFE countries
Source:

2000 9.0 8.3

2002 9.0 8.3

2004 8.4 8.2

2006 8.5 8.2

2007 8.5 8.1

9.2 8.6

National statistics, UN, Euromonitor International

Table 9

Birth Rates (actual growth): 1995-2007/2000-2007

Percentage points 1995-2007 Birth rates Average of CLIFE countries
Source: National statistics, UN, Euromonitor International

2000-2007 -0.47 -2.16

0.04 -3.82

Table 10

Death Rates (actual growth): 1995-2007/2000-2007

Percentage points 1995-2007 Death rates Average of CLIFE countries
Source: National statistics, UN, Euromonitor International

2000-2007 -0.54 -0.15

-0.73 -0.52

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Table 11 As stated

Fertility and Birth: 1995/2000/2002/2004/2006-2007

1995 Fertility rates (children born per female) Average age of women at first childbirth (years) Average age of women at childbirth (years) Births outside marriage (per 100 births)
Source:

2000 1.88

2002 1.88

2004 1.90

2006 1.95

2007 1.95

1.70

28.08 28.97 37.58

27.89 29.38 42.61

28.14 29.50 44.26

28.21 29.51 46.41

28.40 29.64 49.51

28.47 29.69 51.04

National statistics, Euromonitor International

Table 12 As stated

Fertility and Birth (growth): 1995-2007/2000-2007

1995-2007 Fertility rates (percentage points) Average age of women at first childbirth (years) Average age of women at childbirth (years) Births outside marriage (percentage points)
Source: National statistics, Euromonitor International

2000-2007 0.07 0.58 0.31 8.43

0.25 0.38 0.71 13.46

Table 13 '000/as stated

Population by Marital Status: 1995/2000/2002/2004/2006-2007

1995 Married Divorced Widowed Single Average age of men at first marriage (years) TOTAL Average age of women at first marriage (years) Average age of men at marriage (years) Average age of women at marriage (years)
Source:

2000 24,510 3,085 3,861 27,368 30.70 58,825 28.03 32.92 30.41

2002 24,466 3,291 3,871 27,958 30.82 59,586 28.27 33.03 30.70

2004 24,518 3,466 3,883 28,473 30.90 60,340 28.37 33.16 30.81

2006 24,561 3,621 3,909 28,958 31.21 61,048 28.65 33.42 31.10

2007 24,587 3,689 3,921 29,213 31.30 61,410 28.72 33.50 31.20

24,984 2,558 3,879 26,332 29.20 57,753 26.92 31.53 29.26

National statistics, Euromonitor International

Table 14

Population by Marital Status (% analysis and % growth): 1995/2000/2007/1995-2007/20002007

As stated 1995 Married (% of total population/% change) Divorced (% of total population/% change) Widowed (% of total population/% change) 43.26 4.43 6.72 2000 41.67 5.24 6.56 2007 40.04 6.01 6.39 1995-2007 -1.59 44.19 1.09 2000-2007 0.31 19.55 1.56

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Single (% of total population/% change) Average age of men at first marriage (change in years) TOTAL Average age of women at first marriage (change in years) Average age of men at marriage (change in years) Average age of women at marriage (change in years)
Source:

45.59 -

46.52 -

47.57 -

10.94 2.10

6.74 1.95

100.00 -

100.00 -

100.00 -

6.33 1.80

4.39 2.48

-

-

-

1.97

1.76

-

-

-

1.93

2.57

National statistics, Euromonitor International

Table 15

Marriage Rates: 1995/2000/2002/2004/2006-2007

per '000 population 1995 Marriage rates Average of CLIFE countries
Source:

2000 5.1 5.5

2002 4.7 5.3

2004 4.3 5.3

2006 4.1 5.3

2007 4.0 5.3

4.4 5.9

National statistics, Euromonitor International

Table 16

Divorce Rates: 1995/2000/2002/2004/2006-2007

per '000 population 1995 Divorce rates Average of CLIFE countries
Source:

2000 1.9 1.7

2002 2.1 1.8

2004 2.1 1.8

2006 2.2 1.8

2007 2.2 1.8

2.1 1.7

National statistics, Euromonitor International

Table 17

Marriage Rates (actual growth): 1995-2007/2000-2007

Change in percentage points 1995-2007 Marriage rates Average of CLIFE countries
Source: National statistics, Euromonitor International

2000-2007 -1.06 -0.24

-0.40 -0.57

Table 18

Divorce Rates (actual growth): 1995-2007/2000-2007

Change in percentage points 1995-2007 Divorce rates Average of CLIFE countries
Source: National statistics, Euromonitor International

2000-2007 0.28 0.13

0.16 0.15

Table 19

Population by Highest Educational Attainment: 1995/2000/2002/2004/2006-2007

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1995 No education ('000) ('000) Primary ‘000) Secondary ‘000) Higher ‘000) Other ('000) TOTAL ('000) Compulsory education commencement age (years) School leaving age (years) Higher education students inc. universities ('000) ('000)
Source:

2000 377 9,166 26,693 8,701 13,888 58,825 6

2002 349 8,662 27,290 9,321 13,964 59,586 6

2004 323 8,253 27,884 9,861 14,019 60,340 6

2006 300 7,889 28,411 10,380 14,068 61,048 6

2007 290 7,710 28,662 10,629 14,118 61,410 6

459 10,816 25,288 7,114 14,075 57,753

16 2,073 2,015

16 2,029

16 2,160

16 2,267

16 2,300

National statistics, Euromonitor International

Table 20

Population by Highest Educational Attainment: 1995/2000/2007/1995-2007/2000-2007 1995 2000 0.6 15.6 45.4 14.8 23.6 100.0 2007 0.5 12.6 46.7 17.3 23.0 100.0 1995-2007 -36.78 -28.71 13.34 49.40 -5.7 6.33 11.00 2000-2007 -23.07 -15.88 7.38 22.16 -2.6 4.39 14.15

No education (% of the population/% growth) Primary (% of the population/% growth) Secondary (% of the population/% growth) Higher (% of the population/% growth) Other ('000) TOTAL (% of the population/% growth) Higher education students inc. universities (% of the population/% growth)
Source: National statistics, Euromonitor International

0.8 18.7 43.8 12.3 24.4 100.0 -

Table 21

Literacy Rates: 1995/2000/2002/2004/2006-2007

% of population aged 15+ 1995 Adult literacy rate Average of CLIFE countries
Source:

2000 99.0 90.5

2002 99.0 91.2

2004 99.0 91.7

2006 99.0 92.2

2007 99.0 92.5

86.1

National statistics, Euromonitor International

Table 22

Literacy Rates (actual growth): 1995-2007/2000-2007

Percentage points 1995-2007 Adult literacy rate Average of CLIFE countries 2000-2007 0.00 2.01

6.41

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Source:

National statistics, Euromonitor International

Table 23 '000

Population by Urban Rural Locations and Major Cities: 1995/2000/2002/2004/2006-2007

1995 Rural households Urban households Major cities Paris Marseille Lyon Toulouse Nice
Source:

2000 7,442.08 16,620.99 2,129 799 450 397 343

2002 7,983.39 16,578.32 2,142 801 461 413 342

2004 8,495.14 16,555.40 2,156 800 471 429 341

2006 8,946.05 16,583.68 2,171 801 482 446 340

2007 9,138.37 16,627.40 2,179 801 487 454 340

6,150.53 16,639.67 2,138 797 430 373 345

National statistics, Euromonitor International

Table 24

Population by Urban Rural Locations/Major Cities (% analysis, % growth): 1995/2000/2007/1995-2007/2000-2007

As stated 1995 Rural households (% of households/% growth) Urban households (% of households/% growth) Major cities Paris(% of population/% growth) Marseille(% of population/% growth) Lyon(% of population/% growth) Toulouse(% of population/% growth) Nice(% of population/% growth)
Source: National statistics, Euromonitor International

2000 30.93 69.07

2007 35.47 64.53

1995-2007 48.58 -0.07

2000-2007 22.79 0.04

26.99 73.01

3.70 1.38 0.75 0.65 0.60

3.62 1.36 0.77 0.67 0.58

3.55 1.31 0.79 0.74 0.55

1.95 0.62 13.18 21.91 -1.30

2.38 0.25 8.19 14.44 -0.67

Table 25 people per sq km

Population Density: 1995/2000/2002/2004/2006-2007

1995 Population density Average of CLIFE countries
Source:

2000 106.9 260.7

2002 108.3 266.3

2004 109.7 269.9

2006 111.0 278.3

2007 111.6 281.8

105.0 239.8

National statistics, Euromonitor International

Table 26

Population Density (% growth): 1995-2007/2000-2007

Percentage points 1995-2007 Population density (people per sq km) Average of CLIFE countries
Source: National statistics, Euromonitor International

2000-2007 4.70 21.16

6.65 41.99

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CONSUMER SEGMENTATION
Babies and Infants
There is no official French policy to encourage couples to have more children but it would seem that some government actions have contributed to increased fertility rates. Tax cuts and social security allowances for families with three or more children have had a positive influence on the number of births in France. Other social consequences, however, are not entirely encouraging. Indeed, if there is general encouragement to increase the average size of French households, there is very little financial incentive for women to have their first child as the duration of parental leave is one of the shortest in Europe. With 830,000 births in 2006 (an increase of 2.5% from 2005), France was one of the European champions (1.95 children per women). This was not entirely representative of the decade as the beginning of the 2000s was marked by a decrease in the number of births: 2002 in particular saw a decrease of 1% in the number of births compared to 2001. According to a French economist, French women are not having fewer children but there have been fewer women having children. This decrease in the number of births is explained by the number of women actually having children. The ageing population phenomenon was visible in the data relating to the number of births with fewer women between the ages of 20 and 40 having children. Economic circumstances have not encouraged an increase in the number of births. If anything, having fewer or no children has been the choice for many French households that do not want to raise their children in a financially and professionally insecure environment. French women generally prefer to wait until their late 20s (29.4 years in 2005) when they have found a stable job to have children. Because higher education takes so long in France (on average, five years) and job opportunities for young graduates are quite grim, many women will not have children until later in their life – which gives them all the more reasons to spoil their babies. Impact Family has always been a central value for French people. However, this does not necessarily translate into households having more children. French parents feel guilty going back to work when their children are still babies. This feeling is reinforced by the fact that, on average, most households have one baby; only 4.7% of French households had four children or more in 2005. With the average age of first-time mothers rising, the income available to spend on babies also rises. During a child’s first few years, 20%-30% of a household’s annual income will be spent on baby products. “The best time to buy for an image-related product for babies is before and after the birth”, argues a French marketing expert from BabyAdgency. As a result, the range of baby clothing available is quite impressive and there are products for every type of income. On the higher end of the market, fashion houses such as Dior and Sonia Rykiel have created “Baby” lines ranging from bibs and prams to fur coats in baby sizes and tiny jewellery. It is indeed very popular to give a child a silver dummy bearing his initials when he is born. There is a feeling of pride in dressing French babies well. Design houses creating exclusively “baby styles” are also very popular with young mothers who tend to spend more on their new- born babies than on themselves. On the other end of the market, discount stores such as “Baby Cash” and second-hand and charity shops are increasingly popular. Once babies are grown up and if there are no more children expected, two in three French household give away prams, toys and clothing to charity shops so they can be re-used. Families from very different social backgrounds shop in second-hand stores and it is not uncommon to find high quality articles there. Another area were mothers tend to spend more is baby food. Over 75% of households admit to eating more healthily once a baby is born. However, only 26% of households buy organic baby food and prepare meals themselves, which is surprising considering security and health are more influential factors than price. Nevertheless, the baby food market is not very developed and the range of products offered is often very general with two or three major brands of formula and baby food dominating the market. Baby food is mainly bought in supermarkets and there are no specialised baby food stores in France. Apart from the classic age segmentation in relation to formula or baby food, there is no other major difference between types of food, and mothers will tend to go for the leading brand, Blédina (Danone) because it is the most easily recognisable and reputable. Danone owns 40% of the baby food market in Europe and even more in France. Both 2006 and 2007 were crucial years

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in the baby food market because organic food items started appearing in ready-made meals. Mothers from highincome households started buying these products mainly and it has not developed into a trend as such yet.

Kids
The number of children in the French population has not varied much over the 1995-2007 period, making up an average 7.5% of the population. The population of this segment is predicted to decrease very slightly over the next few years, notably due to the low number of births in France. Consumption patterns for this segment have changed, however, as well as their influence in the household. As with babies, families are very attentive to their children’s needs and desires. French children occupy a central place in every type of household and exert an increasing influence both directly and indirectly over decisions that concern them (pocket money and toys, for example) and their entire family (including cars and electrical goods). A 2006 study established that in “traditional family structures”, 93% of French children choose their own clothing and 61% decide what they are going to eat. The study also revealed that kids living in single-parent and recomposed families have, on average, more pocket money than other children. French parents experience guilt for working too much and for the break-up of their families. They tend to compensate by adopting liberal attitudes towards their children and consequently give them a lot of pocket money. With 17% of children living with one parent and 55% of households being deemed “modern” (single parents, remarriages and cohabitation, for example), kids are a major segment of the market. Impact There is an increasing tendency for French 2-10 year olds to make their own consumption decisions in order to prove they are consumers in their own right. With an average buying power of €18 per child per month, French kids influence decisions concerning mainly clothing, food and toys. If one combines this information with the 2hr18mins spent by the average French child in front of a television set, then it is easy to understand why they are a very attractive part of the market. At the same time, France is a country were advertising standards are very strict regarding young children and severe regulations were implemented throughout the 1990s in order to prevent marketers from being too influential on vulnerable segments of the market. Almost 60% of kids say they eat fruit and vegetables regularly. However, the most important food items for them are biscuits and fruit juices, which are vital components of a kid’s “goûter” (afternoon snack taken around 04.00-05.00hrs). Individually wrapped biscuits and pocket-sized snacks are a very popular way of packaging biscuits. The major example of this phenomenon is mothers packing individually wrapped biscuits in their children’s school bags in the morning so they can eat it during break time.

Tweenagers
Being a “tweenager”, a child 9-13-years old, is still something French people have difficulty in understanding because they consider this concept “très Anglo- Saxon”. France has been slow to recognise this particular market mainly because it feels a degree of hostility towards over-segmented markets. This is surprising considering the “tweenager” category has experienced the highest increase in buying power over the last five years and is predicted to grow by 7.5% population-wise over the next seven years. 2005 was a major turning point for the “tweenager” category as it was finally influenced by the ageing population phenomenon and its growth started to slow down a little. Still, “tweenagers” represent around 5% of the total French population and earn up to £175 in pocket money. This is a relatively new marketing category in France as individuals this age are usually referred to as and considered to be children. This is why “tweenagers” are a category that needs to be treated with caution because they are too young to be independent and too old to be treated like children. “Tweenagers” are too young to go out on their own, which is why most of the market is made up of products and services made especially for staying at home (the best example being games consoles and DVDs). Because “tweenagers” are very sedentary, it is expected that the rate of childhood obesity for this category will rise significantly. There is no French exception when it comes to childhood obesity as around 10% of “tweenagers” are considered overweight. This data needs to be compared to the 4% of late-1980s and early1990s. As childhood obesity concerns mainly 7-12 year olds, “tweenagers” will be the prime victims of this phenomenon. There have been several initiatives advertising healthy eating in school cafeterias as 67% of

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children eat at school every day. But long days in school (from 9.00-17.00hrs, sometimes longer) mean that “tweenagers” think less about food during the day and do not eat snacks anyway. Impact Socially, “tweenagers” are a group that identifies with and acts like teenagers but prefers to have its own sense of fashion and style. Major high street stores such as Etam and Pimkie, traditionally aimed at an older market, have now introduced several lines especially for “tweenagers” and adapted some of their collections to “tweenager” fashion. “Tweenagers” are increasingly offered very sophisticated and adult clothing styles. The French call this the “Britney” phenomenon and are generally hostile towards dressing children like grown-ups. Girls, especially, are the targets of this new trend with 76% of girls between the ages of 9 and 13 saying they consider themselves as teenagers and act in a more grown-up way. “Tweenager” girls are now a major target for cosmetics companies, particularly in terms of make-up and perfume. Skincare products are not very popular with young girls yet although they love wearing make-up and lipstick. Companies have introduced product ranges with discreet and understated colours in order to satisfy this segment of the market without worrying the parents. Wearing make-up at school is common from a young age and there are no sanctions for doing so. The specific toys adapted to their style and aspirations best exemplify “tweenager” behaviour. Launched in France in 2004, Bratz Dolls, Diva Starz and other model dolls are dressed the way “tweenagers” would like to dress and act in a way “tweenagers” find “cool”. French “tweenagers” are also great consumers of mobile phones, CDs, game consoles (including Nintendo, PsP and PS2) and other portable music devices. It is important for them to be at the height of technology and fashion. They are also among the youngest people in France to be internet-savvy – over 76% spend time chatting or listening to music on-line. Entire areas of the market have adapted to the “tweenager” trend by offering services especially adapted to their budgets and expectations. Some French banks offer debit cards especially for them. Mobile phone companies have also started to offer contracts targeted at “tweenagers” with lower prices and limited minutes and the ability for their parents to monitor their use. .

Teens
French teenagers are like teenagers around the world: they sulk and are very self-conscious. However, their status in the market has been slightly re-evaluated as the 5.3 million French teenagers have become a distinct army of consumers. Indeed, they represented 8.4% of the population in 2005. Today, French teen buying power is estimated globally at €1.5 billion and is expected to continue growing in influence. This buying power is primarily a consequence of the pocket money given by parents (on average, €20-€30 each month). Teen jobs are not very common in France as working regulations are very stringent. Most of the money teens have comes from family gifts and pocket money. French teens are a highly volatile and heterogeneous population guided by specific codes and values. This is why posh teens living in the 16th arrondissement in Paris will not dress like those living in the suburbs. There are even differences between major cities in France where teens have their own dialects and habits. The “Paris/rest of France” dichotomy is very present in the teen market. There is some resentment towards Parisian teens from their peers in other places in France notably because 80% of the best events (concerts and exhibitions being the prime examples) take place in the capital. Problems common to all teens, however, relate to alcohol and drug consumption. External observers have always viewed France as very tolerant because teens can drink legally at the age of 16. People assume that drinking and smoking in France is cultural. The price of alcohol is not prohibitive and beer and wine are widely available in supermarkets. Many teenagers also smoke cigarettes from a young age with a third of teenagers admitting to smoking regularly and the same number also using cannabis at the same time. As a result of these attitudes, 32% of road accidents in 2005 involved teenagers. However, statistics indicate that the severe Sarkozy Laws of 2002-2003 and national campaigns against drink-driving have brought the number of accidents down. Some sociologists point out that alcohol and drugs are a way of escaping from the pressures of school and parental/social expectations.

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Impact Teenagers occupy a central place in the household, as they are old enough to influence major decisions and old enough to have some money of their own. French families are usually quite liberal with teenagers. Surveys show that teenagers are very sensitive to quality and reputation in the goods and services they buy and tend to go directly for famous brands. Advertising is very important to them as they prefer items that are hip, modern and expensive. Jeans provide he best illustration of this. Levis suffered a great fall in its popularity in 2001 with the rise of a new, younger and more expensive Italian brand, Diesel, which marketed its clothing in a new way. Over 85% of French teenagers buy their own clothing without any advice from their parents. Teenagers also are major decision-makers in their household: in 2003, the slogan launching the new Peugeot 806 was, “The car recommended by children”. They are also particularly sensitive to new technologies and influence the choice of internet and cable providers and electronic appliances bought by their parents. By 2004 nearly half the French population connected to high speed internet, placing France in the European average. Advertisements for major internet providers such as Wanadoo, France Telecom or Club Internet systematically feature at least one child aged from 13-16-years old. In 2004 mobile phone providers introduced the French “egeneration” phones with internet access and the ability to download music. Teenagers usually buy cosmetics from supermarkets or chemists, from high street ranges especially adapted for them. A French cosmetic group launched “Eau Jeune” at the end of the 1990s in fragrances ranging from “Biscuit” to “Milk Caramel” and the obvious “Patchouli”. This meant that girls did not have to use their mothers’ perfume and represented a first step towards independence. It was a perfume distributed only in supermarkets. A whole range of skincare products was also available. However, the 2000s have seen the emergence of major fashion houses in the teenage perfume market. Because teenagers have more disposable income, they can afford more expensive fragrances: Dior Cherie, Ralph Lauren Hot and Amor by Cacharel, to name a few. Strangely enough, if teens are attracted to make-up and perfume, skincare products are not very popular items with them. There are only very few ranges of acne and blemish treatment creams, for example. Lancôme, Biotherm and Dior tried to create product ranges packaged in bright and attractive colours especially adapted to teen skin care. Dior had to discontinue its range after a year. French teenagers are very influenced by American culture and tend to copy trends from the US. One can be assured that if a band or a style of clothing is popular in the US, then it will inevitably reach France sooner or later.

Students
French students are a very specific category of consumers because they have little free time and low levels of disposable income. Student mobility is not very pronounced in France and most students tend to study in the town they grew up in. Gap years are not highly regarded in France so French students go to university as soon as they have passed their baccalaureate. Because access to higher education is cheap (around €400-€500 per year at university), graduates are hardly burdened by student debt and prefer saving money to make major investments in the future (buying a house being the first reason). Law and social sciences are the most popular subjects read at university. In 2006, the number of students went down 1.3% in France to 2.3 million people. According to the French Education Ministry, “this number marks the end of the seven-year growth period.” The “generation effect” should have had a positive influence on the number of students by bringing their number up. But the “education effect” had more impact with fewer students attending higher education programmes (a 10% fall from the mid1990s). The only growth experienced by the student sector was the number of foreign students enrolled in French higher education. France is a popular foreign exchange destination with 11.7% students originating from another country. Because the average length of studies in France is so long (five years in general) and the prospects of graduate employment after that not terribly attractive, the general frame of mind for French students is not very positive. According to the WHO, France is ranked fifth in Europe for student suicides.

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Housing is also a burning debate for French students. Landlords are very averse to flat sharing. Also, the structure of French universities does enable students to live on campus. This has two main consequences for students. First, universities are places where students study, not live, and campus life is not developed: the equivalent of the American campus is completely absent from France. Second, students need to find their own accommodation. Places that attract many students like Paris or Rennes have seen rents soar. Impact France is characterised by “education snobbery”. Unemployment rates are high for all categories of people but tend to be more so for the uneducated because their access to jobs is very limited. In the words of a French politician, “to be a till assistant in a supermarket, you need at least four years of university education!” Unemployment also has a severe impact on students and more of them will start their professional career by going from internship to internship. Working during one’s studies is not uncommon but not encouraged as some courses can demand up to 35 hours a week attendance. Some companies in various areas of the market have started to offer deals especially targeted at students, ranging from specific low-cost phone contracts to special discounted tickets for films, concerts, exhibitions and travel. Major furniture companies have also understood the potential of students living in rented accommodation and have taken advantage of this by offering special deals on beds, tables and shelves tailored especially to small rooms.

People in Their Twenties
First job, first house, first child: people in their 20s have to fulfil many expectations society imposes upon them. However, increasing unemployment and difficult economic conditions mean that French people in their 20s will experience tougher living conditions. A survey revealed that it would take people in their 20s three times more time and effort to find a job than the same person in the 1970s. In 2005, 56% of 18-29-year olds do not live with their parents anymore, with a majority of these girls. “As population ageing increases in intensity, people in their 20s will become a nearly extinct category!” jokes a French sociologist. Recent figures show that this category has dropped 7.7% from 1995-2007 with the trend continuing in the following years. People in their 20s are then subject to the added pressure of contributing to the pension system, one more burden on their shoulders already weighed down by finding a job and decent accommodation. All these factors explain why many young people will continue living at their parents’ houses for longer periods of time until they are in a financially stable situation; 57% of 20-24-year-olds still live with their parents and most of them do not contribute financially to their living expenses. Even young people living on their own still benefit from parental financial support: 14% of people in their 20s living in their own house receive money from their parents which accounts for 20% of their income. Impact Beauty products and cosmetics are very popular with people in their 20s. The feeling of fear and dependency on their parents leads them to spend a lot of time on their appearance in order to “look good” when out during the weekend in order to escape from their routine. Some young men in their 20s are referred to as “metrosexuals” because of the time they spend looking after their appearance. French people in their 20s will also have to purchase their first items of furniture and electrical appliances in order to equip their households. Some young adults will only have to consider doing this later in their life as they live with their parents. Popular furniture stores include Ikea or Conforama. The decade of the 20s is a turning point for many French people as they will have to start thinking about finding a job, their own place and saving money to buy a house later on in their lives. French people in their 20s are still very much nurtured by and dependent upon their parents financially and emotionally. Indeed, in the age group of 26-29-year-olds, only 79% of men have actually moved out of the parental home versus 91% of women.

People in Their 30s

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The proportion of people in their 30s has decreased 2.7% over the 1995-2007 period. This trend is expected to continue with a fall of 4.1% up to 2015. Thirty-somethings account for 13.7 % of the population (8,409 million individuals in 2007 against 8,638 million a decade earlier) and carry the increasing burden of financing the pension system nearly single-handedly. A common joke in French families is that family members in their 30s will have to pay for their parents’ pensions. The thirty-something decade is the time when young adults turn into adults. With it comes the responsibility of mortgages and children. As a result, people in their 30s generally spend more time at home with their family and less time socialising in bars and clubs. They prefer organising parties and meals at home and cater for their friends. Because they often are in the process of buying a house, they will generally have low levels of disposable income although this situation can vary depending on their social category and marital status. People in their 30s are at a turning point in their lives as they are expected by French society to fulfil certain expectations that include buying a house, having children and finding good jobs. Women, especially, are the targets of these expectations because they have to prove themselves. Indeed, French society is particularly hard on women in their 30s because they have to prove they are vital components of French society and not just the “wife of” or the “mother of” some other person. Women suffer from societal pressure despite the freedoms they have gained since the 1970s and have to live up to high standards to earn equality of treatment individually, rather than as a group. People in their 30s are at the start of their career, of their financial security and, for some, family life. People in their 30s will change jobs two or three times every three to fours years according to the statistics of the French National Observatory for Work and Employment. They will also start getting into debt in order to finance house acquisitions and all the equipment that goes with it. Impact French people in their 30s are often stabilising their lifestyles and starting to think about starting families. If the main concern for people in their 20s was finding a suitable partner and being happy, people in their 30s have reached the landmark decade for more practical things such as buying a house and furnishing their household. The “Debt Decade”, as it called by some journalists, symbolises the period when individuals will start spending more than their available income. Buying on credit has become a very popular way of buying furniture or electrical appliances in France. Major stores often offer zero interest rates and a comprehensive payment plan over several months. It has to be mentioned that French consumers do not like living on credit. As a result, credit cards are not that common. People prefer working more to buy what they need than buying it on credit. This state of mind also impacts the housing market with the average mortgage interest rate being around 5%6%. People will take out a mortgage over a maximum of 25 years, although some recent financial instruments have encouraged 40-year mortgages.

Middle-aged Adults
The “baby boomer” generation was so named after the unprecedented increase in birth rates that occurred after World War II and in the 1950s, and are very much represented in the current French population structure. Because of this, the number of middle-aged adults grew by 18.8% during the 1995-2007 period. Middle-aged adults form the core of French society as they represented nearly a third of the total population in 2007. These figures are expected to stay relatively stable over the next decade. Middle-aged adults were the first to experience the consumer society and the aftermath of rationing in the 1950s in quick succession. As a consequence, they share values that are very specific to them: work is a central value but taking time to relax and enjoy leisure activities is equally as important. Their generation has treated stress as a kind of disease. Middle-aged adults in the 2000s are the generation to watch as they are the central pivot point in French society. They will be the ones who retire in a few years, inflating pressure on the pension system. But they will also be the ones who support French consumption as their levels of disposable income are higher than average. They are the generation of all excesses: on the health system, on the pension system and on the labour market generally. Impact

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Middle-aged adults tend to be more settled and more financially secure. Most of them have paid for their home. It is often the time when they will buy a second car or a second home near the sea or in the countryside. Urban middle- aged people, especially, have a high standard of living, as they have access to all facilities. Most of them have children who are old enough to move out which means they will have more disposable income. However, French children remain more attached to their parents who will often have to help them out financially or emotionally. They are an important segment of the market for cosmetics companies. Indeed, anti-ageing creams and treatments are used by more than 75% of French people between the ages of 40-55 years old. Cosmetic surgery is not culturally engrained in French society as it is in some others and consequently, people prefer natural remedies against skin ageing. French women are also great consumers of hair dye products with a preference for darker shades. Going white is not well accepted at all. Men will also look after their bodies and skin but to a lesser extent. They will prefer to be well dressed as most middle-aged French men wear collared shirts and not tshirts.

Pensioners
The older age structure shows that whilst the “young persons” category (0-34-years-old) grew slowly and even negatively since 1995, the category comprising people between the ages of 65-80-years was over-represented during the same period of time. The number of people 80-years-old and over has soared since the mid-2000s. At the moment, in France, there are as many young people as there are over-65-year-olds. According to Eurostat, 25% of the European population will be over 65-years-old in 2035 and generational renewal will not be reached. Progress in medical techniques is a cause and a consequence of the ageing population phenomenon. Because living conditions are better and healthcare widely accessible to all pensioners in France (CMU, or “Universal Illness Cover”), their numbers are constantly increasing. With this technical progress also come great social and economic problems. The most relevant ones are the financing of pensions and the care of pensioners. More and more people are turning to complementary private pension systems although they are not as developed as in other countries like the US or the UK. Compulsory public pension systems based on regular contributions from the employer and the employee have suffered a crisis in popularity, and many French people joke that they will have to work until the age of 80 to have a decent pension. Care for older people also generates debate in France. Because pensioners do not want to reduce their mobility and their level of activity, private care services have flourished around the country. It was always traditional for older French people to remain in the care of their children or relatives. However, as working hours go up (on average 39 hours a week) and households become more and more compartmented (due to such trends as divorce and cohabitation), more pensioners are left to live on their own. Social exclusion is a phenomenon that concerns 19% of the 65+ age category, the highest proportion among all other age groups. However, French pensioners do not want not want to be stereotyped and condemned to stay at home. In this respect, they are similar to teenagers. However, where teenagers want more independence, older people want to be treated like active people. The 2005 Evian advertising campaign marked the start of the senior marketing trend, showing pensioners engaging in aquatic sporting activities and acting like children. Impact Pensioners actually accounted for half the net French income in 2005 and were able to spend, on average, 30% more than their younger counterparts. Many companies are now recruiting “Senior Marketing Consultants” to reach out specifically to this section of the market. Universities now offer courses on the subject of senior marketing. The “University of Free Time” (Université du Temps Libre) has been developed in several major cities enabling pensioners to attend conferences and cultural events on specific subjects. Senior marketing is a trend that has grown in popularity over the last few years. Their free time and higher budgets also mean more leisure activities. While half of the working-age population can afford holidays twice a year, this is within reach for 80% of pensioners. Older people can also afford better cars and better insurance policies – among the latter they have a preference for life insurance, where they are 59% of policy holders. A survey conducted by the French magazine “Notre temps” in 2004 indicated that pensioners tend to buy more health and organic food items than younger consumers. It also showed that 73% pensioners bought four or more

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organic products every week against 44% in the under-50 age category. The star products were yoghurts. The same results were found regarding fat/sugar-free products and traditionally-made products (biscuits, milk and butter). Similar results were also found in the beauty products and services sector, where 73% of French pensioners were regular buyers of cosmetics against 41% of younger consumers. Pensioners tend to buy more luxury moisturising creams and foundations. Pensioners also account for 60% of consumers of water therapy treatments in major mountain and seaside resorts.
Table 27 '000/as stated 1995 Babies/infants As % of total population
Source:

Babies and Infants: 1995/2000/2005/2007/2010/2015

2000 2,173 3.69

2005 2,285 3.76

2007 2,313 3.77

2010 2,327 3.73

2015 2,312 3.61

2,117 3.67

National statistics, Euromonitor International

Table 28 % change

Babies and Infants (% growth): 1995-2007/2007-2015

1995-2007 Babies/infants
Source: National statistics, Euromonitor International

2007-2015 -0.02

9.23

Table 29 '000/as stated

Kids: 1995/2000/2005/2007/2010/2015

1995 Kids As % of total population
Source:

2000 4,318 7.34

2005 4,486 7.39

2007 4,575 7.45

2010 4,648 7.44

2015 4,703 7.34

4,546 7.87

National statistics, Euromonitor International

Table 30 % change

Kids (% growth): 1995-2007/2007-2015

1995-2007 Kids
Source: National statistics, Euromonitor International

2007-2015 2.79

0.64

Table 31 '000/as stated

Tweenagers: 1995/2000/2005/2007/2010/2015

1995 Tweenagers As % of total population
Source:

2000 3,057 5.20

2005 2,899 4.78

2007 2,915 4.75

2010 3,030 4.85

2015 3,134 4.89

3,056 5.29

National statistics, Euromonitor International

Table 32

Tweenagers (% growth): 1995-2007/2007-2015

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% change 1995-2007 Tweenagers
Source: National statistics, Euromonitor International

2007-2015 7.50

-4.60

Table 33 '000/as stated

Teens: 1995/2000/2005/2007/2010/2015

1995 Teens As % of total population
Source:

2000 5,489 9.33

2005 5,454 8.98

2007 5,371 8.75

2010 5,259 8.42

2015 5,396 8.42

5,365 9.29

National statistics, Euromonitor International

Table 34 % change

Teens (% growth): 1995-2007/2007-2015

1995-2007 Teens
Source: National statistics, Euromonitor International

2007-2015 0.46

0.11

Table 35 '000/as stated

People in their 20s: 1995/2000/2005/2007/2010/2015

1995 People in their 20s As % of total population
Source:

2000 7,896 13.42

2005 7,712 12.70

2007 7,820 12.73

2010 7,914 12.67

2015 7,738 12.07

8,470 14.67

National statistics, Euromonitor International

Table 36 % change

People in their 20s (% growth): 1995-2007/2007-2015

1995-2007 People in their 20s
Source: National statistics, Euromonitor International

2007-2015 -1.05

-7.67

Table 37 '000/as stated

People in their 30s: 1995/2000/2005/2007/2010/2015

1995 People in their 30s As % of total population
Source:

2000 8,598 14.62

2005 8,615 14.19

2007 8,409 13.69

2010 8,238 13.19

2015 8,059 12.57

8,638 14.96

National statistics, Euromonitor International

Table 38 % change

People in their 30s (% growth): 1995-2007/2007-2015

1995-2007

2007-2015

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People in their 30s
Source: National statistics, Euromonitor International

-2.65

-4.17

Table 39 '000/as stated

Middle-aged Adults: 1995/2000/2005/2007/2010/2015

1995 Middle aged Adults As % of total population
Source:

2000 17,876 30.39

2005 19,286 31.77

2007 19,934 32.46

2010 20,660 33.07

2015 21,008 32.77

16,873 29.22

National statistics, Euromonitor International

Table 40 % change

Middle-aged Adults (% growth): 1995-2007/2007-2015

1995-2007 Middle aged adults
Source: National statistics, Euromonitor International

2007-2015 5.39

18.14

Table 41 '000/as stated

Older Population: 1995/2000/2005/2007/2010/2015

1995 Older population As % of total population
Source:

2000 9,419 16.01

2005 9,969 16.42

2007 10,072 16.40

2010 10,390 16.63

2015 11,751 18.33

8,686 15.04

National statistics, Euromonitor International

Table 42 % change

Older Population (% growth): 1995-2007/2007-2015

1995-2007 Older population
Source: National statistics, Euromonitor International

2007-2015 16.67

15.95

HOUSEHOLDS
Household by the Number of Occupants
The majority of French households are made up mainly of one to two people. They are the only category with positive growth (31.8% over the observed period): young, single professionals are a category in full expansion. Only 6.3% of households had five or more occupants in 2007, a percentage that decreased from the previous decade. The same results were observed in households of three and four people, the number of which continuously decreased over the 1995-2007 period. This trend is expected to continue. The modern French household can be defined as having a maximum of one or two individuals (2.4 to be precise in 2007), a number under the CLIFE average. Impact

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Fewer occupants per household means smaller surface accommodation: 49.7% of total accommodation is made up of studios and one, sometimes two, room flats. Only 11% of privately-owned houses are considered large, with a majority in suburban and rural areas where property is still affordable. It is not uncommon for landlords to divide big houses into several small apartments and sell them off as individual units. This has been encouraged by recent tax cuts in 2002 and 2004. Prices per square metre in city centres are expensive so people tend to go for smaller flats. If they do go for larger flats, they will inevitably share with other people. Flat sharing is not uncommon in France but it is not as common as in other countries. Some TV series such as “Friends” have had a major influence; French attitudes have not warmed to sharing accommodation with friends, let alone with strangers. Flat sharing is common amongst students but not in any other social or age group. Smaller households also mean that occupants will stay less time, on average 2.4 years in a studio flat. Another consequence of people living on their own is that they tend to spend more money decorating their house and on themselves. Single people often have more disposable income than people living together, and have only their needs to think about. This is why they buy more storage furniture to reduce the clutter in their small flats, and more entertainment centres (such as TVs and Hi-Fi) for when they have visitors. Furniture stores such as Ikea put model flats on display to show how small spaces can be organised and decorated. Renovation is also a major trend in France with suburban DIY stores flooded with people at weekends. The renovation of old run-down factories and abandoned grounds are the favourite occupation of cash-poor and idearich young people ready to build the houses of their dreams at low prices. These types of places are common in most city centres (especially Paris) and are a cheaper alternative to renting expensive flats. On the other end of the spectrum, big households with several occupants are quite rare. They are mostly found in suburban zones where there is more room to accommodate larger households and gardens for the children to play in. The French “lotissements” (residential areas) are often comprised of modern houses built in the 1960s1970s. These types of houses are relatively cheap because they are all built on the same pattern. The major purchase for this type of household, other than a bigger house, is a car. Because household occupants often have to commute to work, they often need several cars: one big family “people carrier” car for weekend activities and shopping, and smaller and cheaper cars for everyday use and commuting. Local transport systems are not as efficient as in other countries so driving is by far the best solution.

Household Annual Disposable Incomes
“Who is the middle class?” This is the title of report published by the French Tax Association in 2004 on the distribution of income in the French population. This report concluded that many French households were generally “quite comfortable” with an estimated average income of $2,200 per month (€1,500). The 10% most affluent households had an average income of $6,060 per month (€4,129). The richest households benefited from income tax reductions under the Sarkozy government in 2006. The gap between the 10% poorest and the 10% richest increased in the past ten years because of many complementary factors. The rising prices of energy (up 24% since the beginning of the 2000s) and property in France as well as the increase in education requirements for even the simplest jobs have pushed many people into the poverty zone. One cannot talk of disposable income for the 12.3% of individuals (7.13 million people) living under the French poverty line, estimated at 60% of the median income ($1,200 or €800 per month). Disposable income in France comes out of wages, property revenues and social benefits. France has some of the highest rates of public benefits in Europe with 75% of households being granted various types of financial help (such as for housing, education and health). Social transfers account for 29.9% of disposable income for many French households. With such a distribution of wealth within the French population, what do French people do with their disposable income if there is any left after paying bills, mortgages and food? Impact France is not a country where the term “social class” is used very often. French people are more accustomed to the expressions “poor”, “well-off” and even “rich”. Being “well- off” by French standards means that a person is able to buy a town house and a country house for holidays and weekends to escape the stress of working life.

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Seaside destinations in Brittany and southwest France are very popular with city people. The Azur Coast remains attractive, though mainly for summer holidays. For the 90% of the population not considered rich, where does their disposable income go? One might think property. With many other countries being victims of the “buy-to-let” craze and property developers becoming social heroes, this would be a logical conclusion. However, France has not succumbed to this trend: if people happen to own a second house or flat, they will rent it out. Big property portfolios are usually for private use rather than rental. If 60% of the average French person’s budget is devoted to food and housing, where does the rest go? The annual holiday is a major event and a social institution for many French people and usually takes place in the summer. The French will save money all year in order to go on holiday even if this means cutting down on entertainment and leisure activities during the year. The French also favour pursuing leisure activities at home in many cases. They also watch more than three hours of TV every day.

Home Ownership
Owning a beautiful French town house in the city centre is a dream shared by many French people but only accessible for a few. As elsewhere, property prices in France have soared and obtaining credit for a mortgage is even more difficult than before. Between 1997 and 2006, property prices rose 131% in France, several percentage points more than in the US. Property value inflation is due partly to foreign demand for French property. Too much demand and not enough supply could also be an answer. Though housing stock went up 21.1% over the 1995-2007 period, newly constructed dwellings accounted for 1% of the stock, on average, despite government plans to build social and more affordable housing. What impact does this property scarcity have on home ownership in France? Instead of taking out heavy mortgages, French people tend to rent: the number of rented properties has gone up steadily over the period (19.5%) while the number of mortgages being taken out has stabilised if not declined slightly. Mortgage conditions and fees in France were always very difficult to satisfy because there was always a feeling that people needed to deserve the house they had worked hard to buy. Owning property in France is influenced by proof of stability and trust in the economic system. Buy-to-let is not very popular and discouraged by the French government through tough fiscal laws. Recent negative figures show that the property boom of the 1980s and 1990s symbolised by the “one house for every family” initiative has come to a halt with property purchases going down 15% on average in some regions, and as much as 30% in places like Marseille. People have felt threatened by the financial and economic climate and prefer to delay their investment in property. Impact The structure of the housing market in France shows that while city centres are almost exclusively comprised of apartments because of the lack of space, there is room for bigger houses in suburban and more rural areas. While the number of detached houses and apartments are nearly the same (around 40% each of the total number of dwellings), semi-detached houses have grown in popularity due to the extension of cities further into the surrounding countryside. French cities like Bordeaux or Lyon have followed the same growth pattern as the capital and extended into several rings around the city centre, each ring having its own town hall and its own local shops. Shopping locally and sourcing local produce is a natural thing for French people who prefer to buy fresh meat and groceries from small stores rather than going to the supermarket all the time. As a result, DIY stores have sprouted in these growing suburban areas where property prices are more affordable (on average) and the quality of life is better. They are flooded during the weekends with people looking for drills, paint and various other similar items. Many French people do not mind renovating their houses as it is also a sign that they intend to stay there for a certain length of time: run-down and old houses are popular targets for people with small budgets but big ideas. This trend of buying-old-to-make-it-new has also fostered the tendency for “cocooning” or staying at home when they have free time. French people like to entertain friends and family in their house and garden, something that is difficult for people living in a flat. Weekend jumble sales and “brocante sales” are also popular among people hoping to find a good bargain for a lamp or a set of table and chairs. Many French cities indeed have dedicated areas and locations for the antique

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and second-hand market. They are flooded during the weekend with visitors from everywhere. Lille, the second largest city after Paris, hosts a yearly jumble sale that attracts many visitors from all over France.

Possession of Household Durables
Like many modern developed countries, French household equipment ownership rates are high. Most households possess appliances considered vital: telephone, refrigerator, TV, washing machine, car and computer. This last item experienced a 70% rise in popularity over the observed period. These items are considered the basic equipment any household should possess although the spread of the internet in France was slower than in other countries. This was also the case with French satellite television and explains its low penetration rate (26.3% of households equipped in 2007). French households are up-to-date with items considered vital in any developed country and figures are similar to those of other CLIFE countries. However, entertainment goods such as cameras, video consoles and PCs still remain comparatively more expensive than in most other countries. This explains the low rates of ownership for such goods: 8.4% of households own a recording camera and only 60.1% have a personal computer. Internet shopping is a solution to get cheaper equipment but most French people view this option with hostility. Impact What do the types of household durables tell us about French styles of living? The first main conclusion to draw relates to the impressive levels of “stay-at-home” entertainment equipment, such as TV and DVD players (an increase of 78.9% over 1995-2007). The most relevant pieces of equipment are the PC equipped with internet connection and the mobile phone. Like many other countries, French households favour items that allow them to stay in contact with the outside world from the comfort of their own home or office. Internet connections have tripled in France over a ten-year period with most households having an internet connection. Unsurprisingly, wealthy households are better equipped. Only 37% of pensioners surf the web. Mobile phones have become so popular that 32% of French people admit to owning one for every type of communication (personal and professional). This is helped by the fact that telecommunications operators offer wide ranges of contracts at attractive rates tailored for every type of customer. The best innovation was the introduction, in 2007, of unlimited national and international calls for very low rates. The second conclusion concerns “convenience items” such as dishwashers and microwaves. These items are representative of modern lifestyles which look for quick results with minimal effort. French people are great consumers of ready-made meals so microwaves are the logical way to cook food. The number of households equipped with a microwave has indeed risen 27.1% over the observed period. Ready-made meals encourage the consumption of tremendous amounts of non-recyclable materials. French households are starting to become sensitive to recycling issues with 61.3% of households recycling most of their waste. The final remark is aimed at transport vehicles. Bicycle ownership is low in France as public transport in some towns is cheap and usually well-organised. French people are also not afraid of walking. Car ownership is predicted to rise more quickly over the next decade or so. One particularity of French car owners is that they tend to buy French before anything else: Renault, Peugeot and Citroen are favourite brands for personal cars and company cars. As commuting distances increase, people prefer being in their own cars with their music and their phones than in overcrowded suburban trains or buses. France is behind other European countries in attitudes and policies about global warming but this is starting to change. The introduction of free bicycle rentals in several major cities shows that initiatives are starting to take place.

Pet Population
Over 50% of French households own at least one pet with a slight preference for cats. This is one of the highest levels in Europe. Traditionally, the French regard pets as a reassuring presence and suitable companions for children and older people. Pet programmes are also very popular with “30 millions d’amis” being one of the oldest broadcast shows on French TV.

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Although all types of animals can be considered as pets in France – from horses to iguanas and exotic spiders – they are also potential members of the food chain. Horse and rabbit meat are very popular in France and pigeon and deer are considered delicacies. Impact Pet food is a global market estimated at €3 billion in France. Although recent economic trends have shown a decrease in French buying power, the pet market remains as dynamic as ever with a predicted 3% increase for 2008. This segment of the market has always been extremely profitable and accounts for 10.8% of the total pet market (including medication, vaccines and accessories) in 2006. French pet owners tend to buy more sophisticated and healthier food for their pets. Pet food enriched with vitamins and nutrients to promote healthy teeth or eyesight are becoming increasingly popular. Food supplements adapted to a pet’s age, size and breed have also experienced great popularity. “Nutriceuticals” are vital components in most pet food. Many brands have introduced luxury food ranges for owners with a certain level of income. Exhibitions dedicated solely to pet food and care innovations attract many visitors, the most famous being the Animal Expo held every year in Paris. The pet luxury trend extends to many more types of products. Teak wood kennels and Louis Vuitton collars are only a few of the accessories designed by fashion houses for pets. This type of luxury is not reserved for people with more money than sense: most French people see their animal as a member of their family and are ready to spend great amounts of money to keep their cat or hamster (for example) happy. The most recent trend includes spa and beauty treatment for dogs with manicures and “haircuts” also available. Wheat germ shampoo costing up to €13 a bottle is a good illustration of the “pet personification” phenomenon, as is bamboo marrow moisturising cream. Pet insurance plans, however, have not met with tremendous success although veterinary fees remain high in France. Only 2% of dogs are insured in France against 20% in the UK or 60% in Sweden for example. Single people usually pay more attention to animals because they are their main companions.
Table 43 '000 1995 1 person 2 persons 3 persons 4 persons 5+ persons TOTAL
Source:

Households by Number of Occupants: 1995/2000/2002/2004/2006-2007

2000 7,562 7,535 3,849 3,261 1,855 24,063

2002 7,926 7,776 3,845 3,228 1,787 24,562

2004 8,283 8,012 3,839 3,195 1,721 25,051

2006 8,628 8,243 3,833 3,166 1,660 25,530

2007 8,796 8,356 3,829 3,152 1,632 25,766

6,673 6,937 3,844 3,328 2,008 22,790

National statistics, Euromonitor International

Table 44

Households by Number of Occupants (% analysis and % growth): 1995/2000/2007/19952007/2000-2007

% of total households/% growth 1995 1 person 2 persons 3 persons 4 persons 5+ persons TOTAL
Source:

2000 31.43 31.32 16.00 13.55 7.71 100.00

2007 34.14 32.43 14.86 12.23 6.33 100.00

1995-2007 31.82 20.45 -0.38 -5.28 -18.73 13.06

2000-2007 16.32 10.89 -0.51 -3.35 -12.04 7.08

29.28 30.44 16.87 14.60 8.81 100.00
National statistics, Euromonitor International

Table 45

Occupants per Household: 1995/2000/2002/2004/2006-2007

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Number 1995 Occupants per household at January 1st (number) Average of CLIFE countries
Source:

2000 2.4 3.7

2002 2.4 3.6

2004 2.4 3.6

2006 2.4 3.5

2007 2.4 3.5

2.5 3.7

National statistics, Euromonitor International

Table 46

Occupants per Household (actual growth): 1995-2007/2000-2007

Percentage points 1995-2007 Occupants per household at January 1st (number) Average of CLIFE countries
Source: National statistics, Euromonitor International

2000-2007 -0.06 -0.13

-0.15 -0.18

Table 47 '000

Number of Households by Disposable Income Bracket: 1995/2000/2002/2004/2006-2007

1995 Above US$500 Above US$750 Above US$1,000 Above US$1,750 Above US$2,500 Above US$5,000 Above US$7,500 Above US$10,000 Above US$15,000 Above US$25,000 Above US$35,000 Above US$45,000 Above US$55,000 Above US$65,000 Above US$75,000 TOTAL
Source:

2000 24,062 24,061 24,060 24,050 24,031 23,888 23,588 23,107 21,567 16,580 10,800 6,154 3,216 1,610 798 24,063

2002 24,561 24,560 24,559 24,550 24,533 24,407 24,150 23,744 22,452 18,178 12,844 8,049 4,608 2,491 1,307 24,562

2004 25,050 25,050 25,049 25,045 25,038 24,984 24,870 24,686 24,078 21,844 18,462 14,522 10,700 7,468 5,003 25,051

2006 25,530 25,529 25,529 25,525 25,518 25,468 25,363 25,195 24,641 22,607 19,488 15,761 12,013 8,705 6,062 25,530

2007 25,766 25,765 25,765 25,761 25,755 25,709 25,613 25,459 24,951 23,072 20,151 16,590 12,916 9,579 6,829 25,766

22,790 22,789 22,788 22,782 22,772 22,694 22,540 22,298 21,527 18,859 15,102 11,055 7,454 4,689 2,794 22,790

National statistics, Euromonitor International

Table 48

Number of Households by Disposable Income Bracket (% analysis and % growth): 1995/2000/2007/1995-2007/2000-2007

% of total households 1995 Above US$500 Above US$750 Above US$1,000 Above US$1,750 Above US$2,500 Above US$5,000 Above US$7,500 Above US$10,000 Above US$15,000 Above US$25,000 Above US$35,000 Above US$45,000 100.00 100.00 99.99 99.97 99.92 99.58 98.90 97.84 94.46 82.75 66.27 48.51 2000 100.00 99.99 99.99 99.95 99.87 99.27 98.03 96.03 89.63 68.90 44.88 25.58 2007 100.00 100.00 100.00 99.98 99.96 99.78 99.41 98.81 96.84 89.55 78.21 64.39 1995-2007 13.06 13.06 13.06 13.08 13.10 13.28 13.63 14.18 15.91 22.34 33.43 50.07 2000-2007 7.08 7.08 7.09 7.12 7.17 7.62 8.59 10.18 15.69 39.16 86.59 169.55

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Above US$55,000 Above US$65,000 Above US$75,000 Households
Source:

32.71 20.58 12.26 100.00

13.37 6.69 3.32 100.00

50.13 37.18 26.51 100.00

73.28 104.27 144.42 13.06

301.60 494.82 755.55 7.08

National statistics, Euromonitor International

Table 49 '000

Total Housing Stock and New Dwellings Completed: 1995/2000/2005/2007/2010/2015

1995 Housing stock New dwellings completed New dwellings as % of total housing stock
Source:

2000 29,699 317 1.07

2005 31,306 305 0.97

2007 31,921 299 0.94

2010 32,806 292 0.89

2015 34,242 280 0.82

28,283 288 1.02

National statistics, Euromonitor International

Table 50 % change

Total Housing Stock and New Dwellings Completed (% growth): 1995-2007/2007-2015

1995-2007 Housing stock New dwellings completed
Source: National statistics, Euromonitor International

2007-2015 7.27 -6.48

12.86 3.80

Table 51 '000

Households by Tenure and Type of Dwelling: 1995/2000/2005/2007/2010/2015

1995 Households by tenure Home owner Home owner, without mortgage Home owner, with mortgage Rented Other TOTAL Households by type of dwelling Detached house Semi-detached and terraced house Apartment Other TOTAL
Source:

2000

2005

2007

2010

2015

12,308 7,169 5,138 9,056 1,426 22,790

13,340 8,191 5,148 9,531 1,192 24,063

14,332 9,175 5,157 9,986 973 25,291

14,709 9,551 5,158 10,158 898 25,766

15,257 10,098 5,159 10,407 797 26,460

16,119 10,964 5,155 10,796 657 27,572

9,410 2,802 9,355 1,223 22,790

9,896 3,110 9,844 1,212 24,063

10,366 3,408 10,316 1,202 25,291

10,547 3,522 10,499 1,198 25,766

10,812 3,690 10,765 1,192 26,460

11,237 3,960 11,192 1,183 27,572

National statistics, Euromonitor International

Table 52

Households by Tenure and Type of Dwelling (% analysis and % growth): 1995/2000/2007/1995-2007/2007-2015

% analysis/% growth 1995 Households by tenure Home owner Home owner, without 2000 2007 1995-2007 2007-2015

54.0 31.5

55.4 34.0

57.1 37.1

19.5 33.2

9.6 14.8

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mortgage Home owner, with mortgage Rented Other TOTAL Households by type of dwelling Detached house Semi-detached and terraced house Apartment Other TOTAL
Source: National statistics, Euromonitor International

22.5 39.7 6.3 100.0

21.4 39.6 5.0 100.0

20.0 39.4 3.5 100.0

0.4 12.2 -37.1 13.1

-0.1 6.3 -26.8 7.0

41.3 12.3 41.1 5.4 100.0

41.1 12.9 40.9 5.0 100.0

40.9 13.7 40.7 4.6 100.0

12.1 25.7 12.2 -2.0 13.1

6.5 12.4 6.6 -1.3 7.0

Table 53 '000

Households by Number of Rooms: 1995/2000/2002/2004/2006-2007

1995 1 room 2 rooms 3 rooms 4 rooms 5+ rooms TOTAL
Source:

2000 1,548 3,050 5,337 6,474 7,654 24,063

2002 1,597 3,101 5,391 6,563 7,909 24,562

2004 1,645 3,151 5,444 6,651 8,160 25,051

2006 1,691 3,200 5,497 6,736 8,406 25,530

2007 1,714 3,224 5,522 6,779 8,527 25,766

1,425 2,920 5,199 6,246 7,001 22,790

National statistics, Euromonitor International

Table 54

Households by Number of Rooms (% analysis and % growth): 1995/2000/2007/19952007/2000-2007

% of total households 1995 1 room 2 rooms 3 rooms 4 rooms 5+ rooms TOTAL
Source:

2000 6.44 12.67 22.18 26.90 31.81 100.00

2007 6.65 12.51 21.43 26.31 33.09 100.00

1995-2007 20.33 10.42 6.22 8.52 21.80 13.06

2000-2007 10.70 5.71 3.47 4.71 11.41 7.08

6.25 12.81 22.81 27.41 30.72 100.00
National statistics, Euromonitor International

Table 55 % of households

Ownership of Household Durables: 1995/2000/2005/2007/2010/2015

1995 Air conditioner Bicycle Black and white TV set Cable TV Camera Cassette/radio player CD player DVD player/recorder Colour TV set Cooker Dishwasher Freezer Hi-fi stereo 2.0 68.9 7.5 7.1 72.9 70.5 23.2 0.1 93.0 93.3 35.2 49.2 54.5

2000 3.8 72.2 3.5 12.5 74.5 71.9 23.8 5.0 94.6 94.7 40.6 51.9 61.1

2005 6.0 74.0 1.5 14.1 76.1 70.0 24.6 67.2 95.2 96.1 44.7 53.7 64.6

2007 6.9 74.3 1.1 12.6 76.8 68.5 23.8 79.0 95.4 96.7 45.3 53.9 65.1

2010 7.9 74.5 0.6 12.2 77.7 64.9 22.9 89.5 95.6 97.6 46.1 54.0 65.6

2015 9.3 74.7 0.3 12.2 79.3 53.0 21.4 95.0 95.9 98.7 47.2 54.0 66.0

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Microwave oven Mobile telephone Motorcycle Passenger car Personal computer Internet enabled computer Piano Refrigerator Satellite TV system Sewing machine Shower Telephone Tumble drier Vacuum cleaner Video camera Video game console Videotape recorder Washing machine
Source:

52.1 20.2 17.0 78.4 14.0 0.5 4.4 98.4 4.6 59.3 76.4 96.7 13.9 84.7 6.5 10.4 56.7 90.0

64.5 48.8 17.7 79.4 27.0 15.7 4.4 98.5 17.9 57.2 81.1 94.0 23.6 87.8 7.1 17.0 60.5 90.9

76.2 75.1 18.3 81.4 54.4 40.0 4.2 98.9 25.2 55.0 88.9 98.0 39.2 89.7 8.0 19.6 63.1 92.6

79.2 84.5 18.5 83.0 61.8 51.1 4.2 97.1 26.3 54.2 90.0 98.0 42.0 90.0 8.4 20.1 62.3 93.0

83.1 91.8 18.8 84.5 68.7 60.7 4.1 96.3 27.6 52.8 91.9 98.0 45.5 90.3 8.9 19.6 59.4 93.6

88.5 96.5 19.4 85.6 75.2 70.5 3.9 96.1 28.8 50.6 95.3 98.0 49.0 90.5 9.9 18.8 55.1 94.3

National statistics, Euromonitor International

Table 56 percentage points

Ownership of Household Durables by Type (actual growth): 1995-2007/2007-2015

1995-2007 Air conditioner Bicycle Black and white TV set Cable TV Camera Cassette/radio player CD player DVD player/recorder Colour TV set Cooker Dishwasher Freezer Hi-fi stereo Microwave oven Mobile telephone Motorcycle Passenger car Personal computer Internet enabled computer Piano Refrigerator Satellite TV system Sewing machine Shower Telephone Tumble drier Vacuum cleaner Video camera Video game console Videotape recorder Washing machine
Source: National statistics, Euromonitor International

2007-2015 2.43 0.42 -0.80 -0.33 2.53 -15.47 -2.44 15.97 0.54 2.00 1.93 0.10 0.90 9.27 11.99 0.87 2.55 13.40 19.40 -0.25 -1.03 2.50 -3.56 5.31 0.00 7.04 0.44 1.48 -1.26 -7.19 1.26

4.85 5.35 -6.47 5.50 3.92 -1.97 0.67 78.92 2.36 3.41 10.02 4.66 10.56 27.06 64.27 1.51 4.60 47.80 50.57 -0.20 -1.24 21.69 -5.09 13.64 1.25 28.10 5.31 1.93 9.65 5.58 3.03

HOUSEHOLD SEGMENTATION

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Single-person Households
More than a third of households were single-person households in 2007, a number that has risen since the mid1990s and is predicted to continue rising in the future. The number of single-person households has doubled since the 1960s and now make up 12.6% of the total population. Longer work hours and work-related pressure, high property prices and little leisure time are factors that lead many French people to choose a single lifestyle. One person out of three is considered “solo” by the French Statistic Institute. From a financial point of view, a single-person household is better off since single people have on average 30% more disposable income than other types of households. This means that single people are able to consume more products and services. Being single has not always been as trendy as it is now in France. For many decades, single French women considered to be past (or nearly past) the age of marriage were stigmatised with a special national day dedicated to them (St Catherine’s Day, November 25th). Although France was one of the first countries to legalise abortion and contraception in the 1970s, attitudes were slower in changing. Many French people still believe that the only way to be happy is to meet someone and have children. Single people are therefore still regarded as a niche segment of French society. According to one French marketing company, there are two types of single-person households: those for whom it is a choice and those who have been through a divorce or a separation. Consumption behaviours are not the same for both those categories. The first tends to pursue more pleasure-based consumption. The second category is closer to a single-parent household in its consumption attitudes, where the single mother (usually) feels guilty. Impact Some single-person French households go out and socialise more – 4.5% of their disposable income is dedicated to cultural and entertainment goods, a figure nearly equal to the amount spent by households of three people or more. Of this budget, 28.5% goes to books and magazines, just ahead of shows and concerts. Single people are the category that reads the most in the whole French population. They also go out twice as often as couples. Their internet consumption is at the highest level in France because they like to keep informed and connected to their network of friends. Many sectors have not yet adapted to what they consider a niche trend. One of the only sectors to explicitly target this category is the travel sector. For French tour operators such as Club Méditerranée, 8% of their customers are single. Because most food items are already available in single and individually-wrapped portions which are easier to eat and keep, there has not been any real recognition of the single population and of its needs. French companies have yet to understand that being single is a modern way of life that impacts on consumption than often than not. Single people also tend to be more image conscious and therefore consume more cosmetics (such as moisturising creams, anti-ageing creams and make-up) and healthier food – 70% of single people admit to shopping primarily for organic food. They also buy more clothing with a preference for well-known upmarket brands. There are two types of single-person households: urban ones and not-so-urban ones. The first tend to have better access to cultural facilities as cities are better equipped with museums, concert halls and bars. The second group finds that being single in a sparsely populated zone can sometimes be very hard. They are more likely to own cars as they have to drive everywhere.

Couples With No Children
The number of couples without children has risen steadily over the years, reaching more than a quarter of all households in 2007. However, the “Bridget Jones” phenomenon characteristic of countries with many more single people has overshadowed this type of household. The number of couples without children is predicted to rise by 4.1% by 2015, notably because alternative forms of unions for some couples will become widely accepted and used. As many as 20% of all women of childbearing age do not have any children.

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Impact Couples without children obviously tend to have more disposable income as they do not have children to feed, clothe and entertain. Corinne Maier, a French author, summarises quite well what many couples think: “if I did not have any children, I would be able to travel around the world. Instead of that, I have to stay at home, serve meals, and get up everyday at seven... Becoming a parent is being able to sacrifice everything: partner, leisure time, sexual life, friends and social success especially if you are a woman...” Couples with no children will often tend to be more active, both professionally and in terms of the time they dedicate to leisure. Couples with no children are often young although an increasing proportion of older people have chosen to remain childless. More and more French women feel they are more in control of their lives. These women will tend to spend more time taking care of their appearance and their image. Young, urban women especially fit this profile. The French call this category of women “the selfish ones” as they have no one to take care of apart from themselves.

Couples With Children
The proportion of couples with children slowly increased in the French population accounting for 31% of the population in 2007, a 2.92 rise from 1995. However, this increase was not very visible as the number of single households overtook the number of couples with children. Nonetheless, France still has a birth rate superior to many other European countries. This is the reference type of household for the French Statistic Institute mainly because it was the most common one for decades of analysis. Having children was the logical consequence of people living together before birthcontrol methods became widely used by French couples and before women started going to work more frequently in the 1980s. Impact The French government has attempted to encourage families to have more children with the introduction of transport reduction cards and tax reductions for families with three or more children. Many French people still believe that having more children will have more costs to the family and society than benefits. Statistics show that life quality is on average 30%-40% lower for families with children than for families without. Families with one child often live in urban areas where there is still room for small families. These types of households are usually young households where both parents work. These families tend to centre around the only child and consider him as “King of the Household”, buying him many toys and clothing. Indeed, the number of toys purchased is more important in families with one child where the “novelty” effect is still present. If more children are born, they will often use the older one’s toys which are then passed from child to child. For families with more children, most of the household income goes to food and clothing for all members of the family. Families with the most children (four or more, making up 350,000 families) live in bigger houses with a garden and are able to grow some of their own food. These families also tend to shop in discount supermarkets such as Lidl and Leader Price where it is possible to buy items such as milk, cereal or water in bulk.

Single-parent Families
There is a profile of the French single-parent family that has been established by many marketing companies. It is usually a woman, with few diplomas and a low-level income, living in an urban area. This stereotype was quite accurate until the 1990s when alternative types of union were introduced for people not wanting to marry. The rise in the number of civil partnerships and cohabitations explains why the number of single-parent families has fallen since 1995. With a decrease of 6.4%, single-parent families are not as common as they used to be. France is a country where law creates social change and not the opposite. The decrease in the number of singleparent families was due to two factors. First, social acceptance of gay cohabitations was introduced in 1999 with the PACS, whose main effect was to legalise and make the existence of gay couples with children easier. Second, a 2005 reform erased the distinction between children born in a marriage and those born outside. These factors made it easier for people to be together and have the same advantages as married couples without actually getting married.

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Impact Single-parent families are very diverse in types and very specific in characteristics. However, the profile established above is long-lived as most of the single parents are working women. Of their income, 83% is wagerelated. The main problem facing these women is finding suitable day-care for their children, especially if they work far from home. As single parents often do not live close to their own parents (having moved to the city to find a better job for example), they also need a car as well as a nanny. Day-care in France is more developed in urban areas where most women are active anyway. Rural areas suffer from population depletion and people need to drive many miles to find a shop or a post office let alone a nanny. Children can go to pre-school as young as 2years-old but this type of arrangement is not free: on average, single women with young children spend 25% of their income on childcare. Perhaps because they have to look after their children alone, single parents also tend to smoke and drink more than the average. While 22% of women smoke regularly in France, the majority of them are single women in charge of a child. The tobacco industry, although quite suppressed in France through advertising restrictions, is able to better communicate to single women because they are simply better targets.
Table 57 '000 1995 Single person Couple without children Couple with children Single-parent family Other Households
Source: Note:

Households by Type: 1995/2000/2005/2007/2010/2015

2000 7,562 6,564 7,767 1,714 456 24,063

2005 8,457 6,731 7,850 1,792 461 25,291

2007 8,796 6,798 7,886 1,823 463 25,766

2010 9,283 6,900 7,943 1,867 466 26,460

2015 10,041 7,074 8,046 1,939 472 27,572

6,673 6,373 7,662 1,632 450 22,790

Euromonitor International from trade sources and national statistics Figures stated as zero refer to a negligible percentage of total households

Table 58

Household by Type (% analysis and % growth) 1995/2007/2015-/1995-2007/2007-2015

% analysis/% growth 1995 Single person Couple without children Couple with children Single-parent family Other Households
Source: Note:

2007 34.14 26.38 30.61 7.07 1.80 100.00

2015 36.42 25.66 29.18 7.03 1.71 100.00

1995-2007 31.82 6.67 2.92 11.70 2.77 13.06

2007-2015 14.15 4.06 2.03 6.36 1.95 7.01

29.28 27.96 33.62 7.16 1.98 100.00

Euromonitor International from trade sources and national statistics Figures stated as zero refer to a negligible percentage of total households

LABOUR
Working Conditions
France is a country that has always been influenced by underlying tensions in the labour market. Indeed, while more flexibility was required to adapt the French market to international competition, the French social model fought to maintain good wage levels and working conditions. However, many contemporary economists have tried to analyse why the French unemployment rate has been one of the highest in Europe (9.4% in 2006 according to Eurostat) for a long time.

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French employment law is very strict and works at several levels: national, sector, branch and company, with the most discretionary power at the national level. The most relevant national statutes include those on working times and wage levels. Working times have been a contentious issue in France for many years and were set in 1998 to 35 hours per week in order to encourage further job creation in some companies. Many companies, employees and politicians agreed that a 35-hour work week was too inflexible since any work beyond that had to be paid in overtime, and this law was abolished in the summer of 2008. French employment law is heavily influenced by the government in power. Socialist governments in the 1980s and 1990s encouraged higher minimum wage levels, tougher trade union powers and less flexibility for employers. More liberal governments, such as the current one led by Sarkozy, are attempting to modernise the French work model by adopting several liberalisation reforms. These include the possibility for employers to require more flexible working conditions from their employees and to pay overtime at a lower rate than previously. One situation that has never changed over the years is that nobody works on a Sunday or, if they do, it is only for very exceptional reasons. With 25,848 million people working in 2007, French wages are below the average Eurozone level (€28,068 per year) notably because of tough employment law conditions and a very rewarding social benefits system that does not encourage some people to look for work. With 6.8 million employees, as many working-class people, five million executives and teachers, 1.4 million people working in sales-related activities, 630,000 farmers and 300,000 doctors, accountants and lawyers, there are many sectors in which to specialise. However, some of these sectors have grown more than others since the end of the 1990s. The number of “poor jobs” has risen uncontrollably as have tougher working conditions. A recent survey established that more than half of French workers were not happy in their jobs because they felt the increasing pressure of hierarchy and the lack of independence in their roles. A French myth surrounding the influence of trade unions needs to be cleared. Though they are indeed powerful in the public sector (including in transport and education), the private sector suffers from a lack of representation: 8% of French employees were members of a trade union in 2003, with a majority of them in the public sector. It is compulsory by law to have representatives of trade unions in every company although workers are not encouraged to actually join them. Around 828,000 jobs were created between 2002-2006 when the working population grew by 1.1 million. Why is French performance lower than some of its European neighbours? France has never worked to accommodate all types of workers but only to modify the conditions of some types of workers. While governments have attempted to introduce work flexibility through the liberalisation of temporary and part-time work, they have not actually given much thought to people in full-time employment, especially to people with low qualifications.

Employed Population by Age
The French work structure is a product of the social and legal climate surrounding working conditions. Two characteristics were specific to the French model up until the mid-2000s: low representation of either young or old workers, and a general over-representation of male workers. With a retirement age set at 65-years-old since the 1980s, France has a low number of workers around the age of 60, a number that has had a tendency to decline since 1995. France encourages its workers to work until the age of 65 in order to get the maximum amount of their pension. This has not stopped the growing phenomenon of “anticipated retirements” with 60-year-olds stopping work. This has obviously added extra pressure on the already fragile pension system. Tough market conditions and increasing competition from developing countries have meant that, while older people stop working at a younger age, younger people start working when they are younger. A very recent characteristic of the French labour market is the number of 15-19-year-olds starting to work, with an increase of 178% over the 1995-2007 period. France has never been a country that has encouraged teenagers or young adults to work, and has actually made it difficult for them. However, the rise in the number of young people working has meant more low-income jobs created and a negative influence on general working conditions. Another category influenced by population ageing is that of 24-30-year-olds. Indeed if there have been fewer young adults looking for work in an already tough market, this does not indicate an increase in available jobs.

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Most jobs are concentrated in the hands of young adults and middle-aged people, with a tendency towards more men than women (on average, 10% more men). Impact If French people tend to start work at a younger age, they do not necessarily become consumers at a younger age. The weight of social benefits and payments on the average French income is important: if the French government is generous with housing and health benefits, it is because the monthly contributions made by workers are also high. Approximately 60%-70% of a French person’s income goes to food, energy and housing. These are the categories social benefits concentrate on as they are considered basic needs. The level of disposable income follows the age of the population: the younger the person, the lower their disposable income is and the higher the debt ratio. Young people go through several phases: they get a first badly-paid job, then another that will enable them to buy a house, then another one still that will allow them to buy and replace their electrical appliances. Because some will have financial help from their parents to settle down, they might buy a second-hand car. French young people are more often first-time consumers of cheap furniture and electrical goods. Ikea is a very popular shop for students and young couples because furniture is cheap and relatively stylish. The most popular purchased item is the standard Ikea bed which comes with a mattress and various other accessories for under €100. This category of population also lives from hand-downs from parents or friends: it is very common for young people to receive a microwave or a bed from a relative who does not need it anymore. Middle-aged people have children, a relatively stable job and a mortgage they are nearly finished paying. They are the category of population that is the most stable and the most likely to be able to afford more expensive items. Their consumption tends to be based on renewal purchases such as a new refrigerator, a new car and even a new house. They are the category that is starting to become financially and socially stable and secure. Older people have a superior income-debt ratio. Because the French employment structure often bases higher salaries on how long the employee has been with the company, older people and those close to retirement tend to have more disposable income than others. Older people are often the ones who can afford to buy holiday homes and help out younger family members

Unemployed Population by Age
In 2007, the unemployment rate in France was around 8.3%, higher than the European average estimated at 5.4% by the OECD for the same year. While French workers enjoy better job protection and work benefits, they are also threatened by this social system since it means fewer jobs. The labour market from 1995-2007 was characterised by the same dynamics France experienced for over 30 years starting with the economic recession of the 1970s. The typical unemployed French person would be a young mother with low qualifications, very possibly from an immigrant background. Most unemployed workers are 15-29-year-olds. Long periods of studying in the hope of better paid jobs, and inflexible wage and work conditions meant that the first job for many young people was often an internship or low-paid work experience scheme. A majority of women were also unemployed, mostly because of children or poorer qualifications. Recently, however, liberal governments have attempted to introduce some flexibility in the labour market by encouraging adjustable wages and working conditions. If this has meant fewer unemployed young people (on average, 15% less) it has also meant worse working conditions and precarious jobs. Women, especially, take part-time or temporary jobs and consequently are the ones who suffer the most from precarious conditions. The French call this system liberalisation “from the bottom”. Impact Unemployment means that a person will consume up to a quarter less than when working. Budgets for basic needs will not change but other areas will be affected by the new consumption pattern. Unemployed people will self-produce most of what they need instead of going out and paying: they will eat less often in restaurants and

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spend less time at the cinema, for example. Instead, they will prepare most of their meals and rent DVDs to view at home. Social benefits are supposed to help the unemployed maintain certain levels of consumption they had while employed. Unemployment benefits for a single person without children were estimated to be around €450 per month in early 2008. People in the most desperate situations (usually women) will spend less than €2.60 a day on food despite studies showing that it is impossible to cover basic food needs for under €3.50 a day. They will also select foods with higher fat and sugar content in order to get the energy they need. A French anthropologist insists that “between €1 worth of fruit with 76 calories and €1 of chocolate bars or crisps worth 400 calories, choices are made quickly”. The unemployed eat more energy-filled foods like potatoes and bread. It is estimated that 20% of women in the worst situation of unemployment are malnourished. Unemployed people tend to drink more coffee and smoke more than the average person. A study showed than some people actually spend what should be their food budget on cigarettes and alcohol (mainly wine and beer).

Alternative Work Forms
Alternative forms of work, such as part-time and temporary work, came to France quite late. Indeed, most workers were in permanent 9-to-5 jobs with set periods for rest and holidays. Socialist governments introduced “jobs for everyone” policies as early as the 1930s. However, with the rise of more liberal governments, especially during the 1990s and with the increasing need for competitive standards in Europe, France has had to review its work habits. Now with over three million people in part-time employment, France has over 16.9% of its working population in alternative forms of employment. Slowing performance in the industrial sector, which is mainly dominated by men, enabled the creation of work in the “third sector”. The rising popularity of personal and industrial services contributed to the development of part-time work. Largely dominated by women (78.9% of part-time workers are women) and young people (22.5% of the sector), the part-time work segment of the market is characterised by flexible hours and very diverse profiles. This type of work is predicted to increase in popularity due to the increasing liberalisation of the French labour market. The French socialist model is changing due to increased competition from more liberal countries. However, situations are dramatically different for women depending on whether their part-time work is chosen to supplement pre-existing household income or if it is from necessity. Women in part-time work are usually in the first situation as French women often have to balance jobs and families. In the second case, part-time employment can mean decreased income for the workers concerned. Part-time workers tend to consume 24% less than people in full-time employment. Impact France was always considered a country of job security and good work conditions. Attitudes towards work have changed in France because many French people now realise companies have to be more flexible to face increasing competition. Out of the 2.9 million companies in France, more than 78% will use part-time work in order to adjust levels of production to flexible patterns of demand. Recent statistics showed that unemployment in France went down in 2006-2007, leading to wide-spread celebration of the French growth model. However, if unemployment did indeed fall by several points, it was because there were more people hired in part-time jobs than ever before. In 2006, the number of part-time workers rose by 15.4% according to the Ministry of Work. Part-time employment is considered precarious because it impacts pension levels and the ability to consume. Increasingly difficult labour market conditions have encouraged many people to set up their own companies. According to the French Labour Ministry, 48.9% of companies in France are made up of one person. Favourable tax and accounting conditions have encouraged the creation of more and more companies in recent years.
Table 59 '000 Employed Population by Age Group: 1995/2000/2002/2004/2006-2007

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1995 15-19 yrs 20-24 yrs 25-29 yrs 30-34 yrs 35-39 yrs 40-44 yrs 45-49 yrs 50-54 yrs 55-59 yrs 60-64 yrs 65+ yrs Employed male population Employed female population Total employed population
Source:

2000 267 1,548 3,060 3,295 3,463 3,430 3,367 3,197 1,519 490 13,111 10,525 23,636

2002 263 1,624 2,885 3,350 3,511 3,518 3,438 3,234 1,956 534 13,384 10,928 24,312

2004 333 1,736 2,750 3,380 3,460 3,578 3,465 3,235 2,217 566 13,445 11,275 24,720

2006 490 1,980 2,796 3,401 3,453 3,663 3,515 3,215 2,310 479 13,763 11,540 25,302

2007 558 2,151 2,822 3,416 3,484 3,726 3,556 3,243 2,417 477 13,984 11,864 25,848

200 1,702 3,198 3,473 3,498 3,428 3,414 2,157 1,549 564 12,950 10,233 23,184

ILO, Euromonitor International

Table 60

Employed Population by Age Group (% analysis and % growth): 1995/2000/2007/19952007/2000-2007

% analysis/% growth 1995 15-19 yrs 20-24 yrs 25-29 yrs 30-34 yrs 35-39 yrs 40-44 yrs 45-49 yrs 50-54 yrs 55-59 yrs 60-64 yrs 65+ yrs Employed male population Employed female population Total employed population
Source: ILO, Euromonitor International

2000 1.13 6.55 12.95 13.94 14.65 14.51 14.25 13.52 6.43 2.07 55.47 44.53 100.00

2007 2.16 8.32 10.92 13.21 13.48 14.41 13.76 12.55 9.35 1.85 54.10 45.90 100.00

1995-2007 178.15 26.41 -11.76 -1.67 -0.42 8.67 4.14 50.37 56.07 -15.42 7.98 15.93 11.49

2000-2007 108.98 38.95 -7.80 3.65 0.58 8.63 5.59 1.45 59.14 -2.66 6.66 12.72 9.36

0.86 7.34 13.79 14.98 15.09 14.79 14.73 9.30 6.68 2.43 55.86 44.14 100.00

Table 61 '000

Unemployed Population by Age Group: 1995/2000/2002/2004/2006-2007

1995 15-19 yrs 20-24 yrs 25-29 yrs 30-34 yrs 35-39 yrs 40-44 yrs 45-49 yrs 50-54 yrs 55-59 yrs 60-64 yrs 65+ yrs Unemployed male population Unemployed female population 60 529 540 428 350 347 301 199 129 17 1,339 1,560

2000 74 377 431 368 351 307 266 255 142 19 1,185 1,405

2002 71 393 369 341 296 265 227 235 129 16 1,123 1,219

2004 120 489 407 356 344 313 241 246 183 28 1,326 1,401

2006 173 463 367 338 350 265 221 230 136 21 1,161 1,403

2007 169 424 332 309 324 237 201 210 117 18 1,052 1,288

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Total unemployed population
Source:

2,899

2,590

2,341

2,727

2,564

2,340

ILO, Euromonitor International

Table 62

Unemployed Population by Age Group (% analysis and % growth): 1995/2000/2007/19952007/2000-2007

% analysis/% growth 1995 15-19 yrs 20-24 yrs 25-29 yrs 30-34 yrs 35-39 yrs 40-44 yrs 45-49 yrs 50-54 yrs 55-59 yrs 60-64 yrs 65+ yrs Unemployed male population Unemployed female population Total unemployed population
Source: ILO, Euromonitor International

2000 2.87 14.56 16.65 14.21 13.54 11.86 10.27 9.83 5.46 0.74 45.75 54.25 100.00

2007 7.23 18.11 14.18 13.19 13.86 10.11 8.58 8.97 5.01 0.76 44.95 55.05 100.00

1995-2007 180.82 -19.83 -38.58 -27.96 -7.33 -31.76 -33.28 5.63 -9.26 5.82 -21.48 -17.44 -19.30

2000-2007 127.74 12.34 -23.10 -16.13 -7.55 -23.03 -24.57 -17.54 -17.21 -7.68 -11.25 -8.35 -9.68

2.08 18.23 18.63 14.78 12.07 11.96 10.37 6.85 4.45 0.58 46.20 53.80 100.00

Table 63

Unemployment Rate: 1995/2000/2002/2004/2006-2007

% of Economically Active Population 1995 Unemployment rate (% of Economically Active population) Average of CLIFE countries
Source: ILO, Euromonitor International

2000 9.9

2002 8.8

2004 9.9

2006 9.2

2007 8.3

11.1

8.5

8.8

9.0

8.8

7.7

7.5

Table 64

Unemployment Rate (actual growth): 1995-2007/2000-2007

Percentage points 1995-2007 Unemployment rate (% of Economically Active population) Average of CLIFE countries
Source: ILO, Euromonitor International

2000-2007 -1.58 -1.31

-2.82 -1.00

Table 65 '000

Part-time Employment by Sex: 1995/2000/2002/2004/2006

1995 Male Female 684 2,417

2000 696 2,589

2002 673 2,608

2004 616 2,570

2006 697 2,607

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TOTAL
Source: ILO, Euromonitor International

3,100

3,285

3,282

3,187

3,304

Table 66

Part-time Employment by Sex (% analysis and % growth) 1995/2000/2006: /19952006/2000-2006

% of part-time employees/% growth 1995 Male Female TOTAL
Source: ILO, Euromonitor International

2000 21.18 78.82 100.00

2006 21.11 78.89 100.00

1995-2006 1.99 7.88 6.58

2000-2006 0.23 0.70 0.60

22.06 77.94 100.00

INCOME
Annual Disposable Income
Over half of the French people admit that preserving buying power is their first preoccupation, before starting a family or increasing their leisure time. This is an impressive number considering that France has some of the lowest average wage levels in Europe. The mean disposable income for a single French person reached €18,235 annually; this rose to €46,420 for a family with two children. On average, the monthly mean income reached €2,050 in 2006. The structure of the available income is very much influenced by several factors: wage level, amount of social benefits received, and, for a small percentage of the population, revenues from financial or property assets. To illustrate, recent figures have shown that the poorest 30% have a disposable income eight times lower than the richest 1%. For the first category, social benefits account for more than a third of their income; for the second category, a third of their available income was composed of property and financial assets. Between these two extremes, the income of the French middle class is mainly composed of wages and pensions. The introduction of the 35-hour week in 1999 greatly influenced wage structures with French workers deciding to work more and more overtime in order to compensate the loss incurred. Disposable income differences can also be observed from region to region. Northern France has a higher standard of living than the south, with western France being the area where differences are the least important. The largest numbers of poor people live in southern France and around Paris as well as in the former industrial regions of the extreme north.

Income by Educational Attainment
French children have this mantra drilled into their heads as soon as they start school: “if you want a good job, you will have to work hard at school and go to university. You don’t want to end working as a shop assistant, do you?” With higher education lasting up to five years, French graduates could ideally expect fantastic job opportunities and high levels of income as soon as they come out of university. However, France has one of the lowest levels of secondary education among OECD countries: only 59% of 45-54-year-olds have a secondary diploma versus 64% in the UK or 84% in Germany. Because the length and the difficulty of French higher education system, many people are discouraged from pursuing a university degree. Both France’s job and education systems are merit-oriented: the harder one works and studies, the higher the earnings and rewards. This is clearly illustrated by the fact that university graduates face a 9% unemployment rate against 36% for young people who only achieved a secondary level of education (finished by age 16). Differences will also continue later on: 55% of university graduates become senior executives versus only 1.8% of people with no higher education background. This is reinforced by the fact that executive positions are filled by recruiting graduates from prestigious business schools (such as HEC, ESSEC, and ESC) and universities (including the “Ecole Normale” and the Sorbonne).

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Traditionally, wage structures were based on the time spent on getting an education. The French Statistic Institute argued that hourly rates were more important for executive professions (€33.40) and engineers (€29.30) than for manual workers (€10.60) or nannies and cleaners (€7.70). A doctor or a lawyer could expect a salary 35 times higher than that of a factory employee, as well as a more prominent situation. An executive could start earning at least €35,500 annually when he was hired compared to the €10,000 for a shop assistant. Over half of French workers state that their main concern is preserving their buying power against economic fluctuations. However, their incomes will influence expectations regarding this buying power. Recently, however, the rise of flexible and alternative forms of employment has put pressure on the wage structure. The most notable illustration of the rise of temporary employment is the fact that executives experienced a stagnation of their buying power in 2007: growth of 0.2% instead of the 2% observed from 2004 to 2006. Just over 10% did not receive a pay raise in the same year, an increase of several percentage points from previous years. People with secondary education degrees were finally better off in terms of wage appreciation in 2007: they boasted a 27% rise against only 15% for those having gone through the higher education system. This bottom-up wage harmonisation is worrying the upper spheres of the French work force. Even President Sarkozy implicitly admitted something had to be done: in early 2008, income tax rates for the top 25% of French earners were lowered to preserve the remuneration system. France has always prided itself on having a comprehensive education system tailored to the needs of every single individual. Because education is cheap and varied, it meant that most people should have a job. Reality is quite different because the price of education has encouraged many people to study for long periods of time. This has pushed the standard up and people were expected to have at least the equivalent of the baccalaureate, if not more, to be a sales assistant in a supermarket.

Income by Gender
Despite France being a leader of Europe, it is not a leader in sexual equality. History has proven that French women still have to fight for their rights to vote or to work even with more modern governments in power. French women gained the right to vote during one of France’s first socialist governments, in 1945. Some 60 years later, women could expect to earn on average only 81% of a man’s annual income, according to the French Statistic Institute. Although progress has been made with many female employees earning only 6% less than their male counterparts, it is not sufficient and most women will be paid less for identical jobs in identical work conditions. Differences are most spectacular in the two most extreme ends of the workforce, which are dominated by men – executive positions and manual work. In these jobs, women can expect to earn between 77%-84% of a man’s annual salary. Studies indicate that wage differences tend to diminish after a while, but they continue to exist in most jobs. A French economic magazine published illustrations of wage differences between both sexes: if a male executive could earn up to €4,020 a month, a women executive would get €3,104 in 2005. Since the mid-1990s, wage levels for women progressed by approximately 51%. By comparison, wage levels for men went up by 39.8%. This evolution has had an impact on buying power for both categories, with women slightly better off than men. The recent economic climate has been favourable to the services sector and women have benefited from this situation as they account for most of its workforce. According the French School of Political Science, “women are still paid 15% less than men; they are the most unemployed, and the ones who do the most part-time work, while continuing to do two thirds of housework and childcare.” In terms of their economic power in the household, women still face some level of sexism in certain decisions. If women have the most power in deciding which vacuum cleaner or refrigerator they would like to purchase, they still have little power in decisions about a new car or TV. Income is not a subject that people talk about extensively in France. Both men and women prefer to keep income levels secret. They will only inform their partner if they are about to make a purchase higher than €1,000. All initiatives taken to promote equality of wages and work conditions have been met with scepticism by many French politicians mainly because it unconstitutional to favour one gender over the other by promoting quotas and basic expectations. A 2006 governmental initiative to change the Constitution is still waiting for implementation over two years later. However, the culture is evolving in its attitudes: President Sarkozy set up his government in 2007 with half the ministerial jobs going to women (though many politicians joked than the President had chosen the women more for their looks than for their political ability). If cultural changes will not

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translate into legal statutes, the recent economic and political climate has proven that women can be optimistic for once.
Table 67 Mean Annual Disposable Income by Education and Gender: 1995/2000/2002/2004/20062007

As stated 1995 Disposable income by education Primary (EUR) Secondary (EUR) Tertiary (EUR) Disposable income by gender Female (EUR) Male (EUR)
Source:

2000

2002

2004

2006

2007

15,039.0 16,410.2 22,613.2

16,828.0 18,319.1 26,022.9

18,373.8 20,078.1 26,856.1

19,722.4 21,360.2 27,266.7

20,435.1 22,800.6 29,105.4

20,727.0 23,357.5 30,114.5

12,259.0 15,062.8

14,502.2 16,949.1

15,703.5 18,460.3

16,260.5 19,953.6

17,805.2 20,782.3

18,578.5 21,040.8

National statistical offices, Euromonitor International

Table 68

Mean Annual Disposable Income by Education and Gender (% growth): 1995-2007/20002007

% growth 1995-2007 Disposable income by education Primary Secondary Tertiary Disposable income by gender Female Male
Source: National statistical offices, Euromonitor International

2000-2007

37.82 42.34 33.17 51.55 39.69

23.17 27.50 15.72 28.11 24.14

CONSUMER EXPENDITURE
Spending on Consumer Goods and Services
French wages and prices are at an average European level. France seems to be an exception among certain developed countries because price increases have not been as dramatic as in the UK, for example. The French standard of living remains high and also characteristic of developed societies. This means that the budget allocated to basic needs should decline over time with a parallel increase in wage levels. On average, the proportion of the budget allocated to food has gone down nearly 10% since the 1970s and remained stationary in the 2000s. Despite a wage increase of 3.1% since 2006, prices increased 3.5% over the same period. Everyone has felt the pinch on their buying power. Indeed, as energy and property prices soared in the 2000s, reaching unsustainable levels, the impact on consumer expenditure has been very noticeable. Despite governmental plans to help with rents (“Aide au logement”), mortgages and fuel bills (each family should have received a certain amount of money to help with rising domestic fuel costs in 2005); household spending in these sectors has increased between 28%-43%. The most important fact to remember with French consumer expenditure is that spending in most sectors (housing, health and transport to name the main ones) increased not by choice but because of price increases typical of developed societies. The ageing population phenomenon means more hospital and medical bills; expansion of city centres will mean longer commuting times and higher property prices. This situation is already visible in Paris where tube tickets went up by 10% in 2007. Major cities such as Nice, Marseille and Bordeaux are in the process of building tram systems to reach remote suburban areas.

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Increasing property prices have meant that French people continue to spend most of their budget on mortgages and heating. The French “property bubble” initiated at the end of the 1990s still continued in 2007, which meant that amounts spent on furniture and household accessories also went up by 18.4% over the 1995-2007 period. Increasing prices for rent, property credit and utilities will mean that an increasing number of French households face tough times ahead. Savings rates are at an all time low. This, in combination with the highest household debt level in years (66% of annual income), means that French consumer expenditure is very fragile. The general frame of mind in France is not very optimistic. Gloomy economic and financial forecasts, increasing unemployment and rising costs have contributed to never-before-seen levels of pressure on French households. With economic instability on every mind, consumption of household durable equipment increased over the period of observation. Consumers argue there is a need to replace costly times while they are still affordable. Only service expenditure and the non-durable good segment did better in terms of performance with a 36.6% and 22.7% increase respectively. The popularity of “personal services” such as childcare or house care explains part of this evolution as does a frenzy of consumerist activity. Impact Since 2003, a number of economic indicators have pointed out that for French people expectations concerning the future are not good. Their post-World War II economic boom is threatened by globalisation and economic recession. One French sociologist argued that over-consumption and “cocooning” are the two most visible manifestations of modern-day French angst. The pessimistic mood of French consumers can be observed in the types of products they currently prefer. Household durables are preferred over clothing and food because French consumers protect themselves for tough external conditions by staying in the comfort of their own home. “Cocooning” has become an increasing tendency for many French people who invest in their homes where they feel secure and comfortable. DIY decoration programmes have risen in number on French TV since 2005, triggering an almost immediate increase in the number visits to DIY shops, second-hand furniture shops and decoration stores (up 7.3% in 2007). The decoration segment accounts for 50% of Ikea’s annual turnover. Other big French furniture stores have expanded floor space devoted to decoration items. Indeed, decoration is predicted to continue being the big trend for the coming years with increasing focus on household textiles (such as curtains, bedding and table linen) to add a splash of colour in every household. Indeed, household textiles account for most of the growth experienced in the textile sector. Major French fashion houses have even expanded their product range into the household sector. French people feel that the decoration of their own home is something they have control over. Sofas and lamps, particularly, symbolise peace and comfort. Unsurprisingly, the consumption of light bulbs (particularly energyefficient ones) has gone up 17% over the observed period. Other items such as paintings and accessories (frames, for example) are also very popular. A depressing economic climate also means French people will find comfort in leisure and recreation activities. Books and magazines are not as important since France is not a country where people read much. Concerts, films or plays that offer escape from stress and pressure are increasingly popular. According to the French Trend Observatory, “France is a country that differentiates itself by an increasing consumption of leisure and cultural goods.” The most spectacular illustration of this phenomenon was witnessed in the communications sector with increased internet access and improved mobile phone infrastructures as well as the rise of cable and satellite TV. French people want access to cultural goods whilst at the same time “being connected” to the world around them. With an increase of 96.2%, the communication segment is the area with the most spectacular progression over the 1995-2007 period. Accessing the world from the comfort of their own homes is something French people have aspired to for a long time. One would have expected the French to increase their food and alcohol consumption during difficult times. This is true of certain sectors only. Comfort foods have always been popular in France, especially ready-made meals, pasta, rice and sugary foods. They too are reassuring. Many French people like to entertain their friends and family at home and prefer that to going out. Preparing a meal is something many French people enjoy doing, especially people in the 24-40-year-old category. Traditional French cuisine is a trend that is coming back recently, especially because most of it is based on carbohydrates (bread and potatoes). Comfort food is a culinary response to the “cocooning” trend in the household sector. Pasta consumption increased 11% in 2006 for the 18-34-year-old category while chocolate and ice-cream consumption also soared over the same period. Similar figures can be found for bread and transformed fruit products (purees, yoghurts and milk) as well as sugary drinks. One of the most notable evolutions was observed

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in the alcohol sector: people drink alcohol several times a week while eating fruit and vegetables only once or twice.
Table 69 EUR billion 2000 Food and non-alcoholic drinks Alcoholic drinks and tobacco Clothing and footwear Housing Household goods and services Health goods and medical services Transport Communications Leisure and recreation Education Hotels and catering Misc goods and services TOTAL
Source: Note:

Consumer Expenditure by Product Type: 1995/2000/2005/2007/2010/2015

2005 137.7 30.7 48.1 244.2 57.4 34.9 147.1 27.6 91.6 6.9 61.1 110.7 998.0

2007 142.3 31.6 49.1 255.4 59.3 36.5 153.6 30.0 95.4 7.2 63.9 114.4 1,038.7

2010 145.5 32.5 48.6 271.0 60.2 39.2 159.3 34.3 99.5 7.7 66.8 115.9 1,080.3

2015 158.3 35.5 50.7 321.1 65.1 47.3 181.1 42.8 111.7 9.3 75.2 126.3 1,224.4

129.0 31.0 48.5 209.7 55.4 28.9 137.9 21.4 83.4 5.7 56.7 105.8 913.4

National statistical offices, OECD, Eurostat, Euromonitor International Constant value at 2007 prices

Table 70

Consumer Expenditure by Product Type (% analysis and % growth) 1995/2007/2015/1995-2007/2007-2015

% of total consumer expenditure 1995 Food and non-alcoholic drinks Alcoholic drinks and tobacco Clothing and footwear Housing Household goods and services Health goods and medical services Transport Communications Leisure and recreation Education Hotels and catering Misc goods and services TOTAL
Source: Note:

2007 13.70 3.04 4.73 24.59 5.71 3.51 14.79 2.88 9.18 0.70 6.15 11.01 100.00

2015 12.93 2.90 4.14 26.22 5.32 3.86 14.79 3.50 9.12 0.76 6.14 10.32 100.00

1995-2007 17.00 16.70 3.85 36.64 18.46 34.42 28.51 96.15 35.21 43.65 32.87 17.16 27.25

2007-2015 11.22 12.49 3.18 25.70 9.77 29.62 17.89 42.84 17.05 29.04 17.69 10.46 17.88

14.90 3.32 5.80 22.90 6.14 3.33 14.64 1.87 8.64 0.62 5.89 11.96 100.00

National statistical offices, OECD, Eurostat, Euromonitor International Constant value at 2007 prices

Table 71 EUR billion

Consumer Expenditure by Commodity Type: 1995/2000/2005/2007/2010/2015

1995 Durable goods Semi-durable goods 95.2 88.2

2000 108.0 93.2

2005 108.8 95.5

2007 113.1 98.2

2010 114.1 98.7

2015 123.0 105.0

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Non-durable goods Services TOTAL
Source: Note:

265.9 367.0 816.3

290.4 421.8 913.4

314.6 479.1 998.0

326.3 501.2 1,038.7

336.9 530.7 1,080.3

376.7 619.7 1,224.4

National statistical offices, OECD, Eurostat, Euromonitor International Constant value at 2007 prices

Table 72

Consumer Expenditure by Commodity Type (% analysis and % growth) 1995/2007/2015/1995-2007/2007-2015

% of total consumer expenditure 1995 Durable goods Semi-durable goods Non-durable goods Services TOTAL
Source: Note:

2007 10.88 9.45 31.41 48.25 100.00

2015 10.05 8.58 30.76 50.61 100.00

1995-2007 18.71 11.38 22.73 36.56 27.25

2007-2015 8.82 6.98 15.44 23.64 17.88

11.67 10.80 32.57 44.96 100.00

National statistical offices, OECD, Eurostat, Euromonitor International Constant value at 2007 prices

Table 73 1995 = 100

Consumer Prices and Costs: 1995/2000/2002/2004/2006-2007

1995 Index of consumer prices (1995 = 100) Average of CLIFE countries
Source:

2000 106.6 326.2

2002 110.6 475.7

2004 115.6 605.2

2006 120.1 706.0

2007 122.0 760.9

100.0 100.0

National statistical offices, OECD, Eurostat, Euromonitor International

Table 74

Consumer Prices and Costs (actual growth): 1995-2007/2000-2007

Percentage points 1995-2007 Index of consumer prices (1995 = 100) Average of CLIFE countries
Source:

2000-2007 15.42 434.67

22.00 660.89

National statistical offices, OECD, Eurostat, Euromonitor International

FOOD AND NON-ALCOHOLIC DRINKS
Spending on Food and Non-alcoholic Drinks
The most important priority for a French shopper is price: try to find someone happier than a French person who has just found a bargain! This is one of the main reasons why many French shoppers will not admit to buying organic food very often. Food is very important in France, and 14% of their income goes towards it every month. Basic elements of the French diet such as bread, milk and meat are high on every shopping list. Processed and sugary foods experienced tremendous growth over the 1995-2007 period: French people eat up to 3.9 kilos of sweets a year, though this is still low compared to some European countries. Biscuits and small cakes are also very popular food items: considering the amount of time children spend at school (until 17.00hrs sometimes for the youngest ones), it is no wonder parents want to make sure they are well-fed and happy.

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A linked phenomenon is the increasing percentage of household budgets spent on non-alcoholic drinks and especially soft drinks like juices and fizzy drinks. As French people become more and more sedentary, in school or at work, they prefer to consume comforting and fun drinks. Soft drink budgets rose by 46.4% over the 19952007 period. What is interesting to note is that though most drinks are purchased in supermarkets, an increasing proportion are spontaneously bought in vending machines at work or on the way back from school in newsagents. Individual smaller bottles are easier for people to carry in their bags. Do the French have a sweet tooth? If it is true that they eat more sweets, they also consume more and more fruit but this is a recent phenomenon. Fruit consumption went up 30% during the period of observation. Up until the mid-2000s, their consumption of these items was one of the lowest in Europe. French people are becoming more health conscious as obesity and health issues are becoming firmly implanted in French society. Frozen food has always taken a substantial proportion of French food budgets and if any vegetables were consumed most of them were frozen (peas and broccoli for example) or in cans (such as tomatoes and corn). Impact Diet foods and drinks have experienced a major increase in popularity over the past few years. Sugar-free, fatfree, caffeine-free and artificial colour-free foods are being consumed in high quantities not only by people looking after their weight but by people generally wanting to look after their bodies. There are always freesomething options available for any type of food. The best illustration of this is fat-free cheese (like camembert or gruyere) and fat-free biscuits. With an increasing amount of time spent in front of a computer at work, the French focus more on what they put into their bodies. Recent years have seen a rise in the number of dental problems and cholesterol problems, as well as soaring levels of obesity and weight problems. Currently, 40% of the French are overweight and are in danger of becoming obese. Because many vending machines in France have now introduced healthy snacks and drinks for the same price as traditional coffee or soft drinks, people tend to choose these “good for your body” options. The drop in the consumption of coffee and tea, what French doctors call “exciting substances”, is linked to this health craze. Take-away drinks from chains such as Starbucks or Café Nero are not very popular. These types of drinks are mainly purchased by young people, and only in very limited areas as these chains are currently only found in Paris. French people sit down to drink coffee and chat with their friends or colleagues – they do not drink it while commuting or walking in the street. There is general cultural resistance to coffee on-the-go. And with coffee and tea less available from vending machines, there are fewer opportunities to enjoy it. One category that has often been neglected in terms of the budget for food is children. With rising levels of pocket-money and parental guilt over working long hours, children are lavished with increasing amounts of money. They typically start receiving pocket money as 10-year-olds, though 12.2% of mothers admit to funding children as young as eight. However, 10-years-old is considered to be the age when children are able to understand the value of money and be independent enough to go into a shop and spend it. There are many newsagents on the way to school where children can stop and buy sweets. Another popular source of sweets is the supermarket check-out where children accompany their mothers during the weekend. A quarter of all sweets are bought at these check-outs in a rush to get the shopping finished.

Spending on Soft and Hot Drinks
An American research group concluded that consumption of one can of soda a day for a year can increase one’s weight by 14 pounds (6.36 kgs). Only 51% of older people and 13% of teenagers drink the recommended daily amount of water, preferring to replace it with sodas and juices. Studies and statistics like these led French governmental authorities to consider a “nutritional tax” of 1% of every bottle of sugary liquids bought on French territory in order to curb bad eating habits. However, this project was abandoned because it was considered too difficult to implement. Household spending on soft drinks was phenomenal during the 1990s when the proportion of household budgets allocated to them rose 46.3%. The situation slowed starting in 2000 because of the introduction of more stringent health regulations and guidelines. Still, French consumers spend two thirds of the same budget for fruit on sugary drinks instead. Sedentary lifestyles and increasing periods of time spent at home in front of the TV or on the internet have encouraged the consumption of Coca-Cola or Sprite as well as fruit juices for children. Over

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80% of soft drinks for children aged 6-13 are consumed during the afternoon snack period and usually in the home itself. On the other hand, hot drinks have never been exceptionally popular in France, apart from coffee with friends in a café. Recent campaigns against drink-driving and binge-drinking have lowered alcohol consumption. However, hot drinks became a little bit more popular over the 2003-2007 period in reaction to more time spent at home and with friends. Impact French people are getting healthier but they are also getting lazier. If they drink fewer energy and caffeine-laden drinks such as tea and coffee, they nonetheless consume more soft drinks and sugary liquids. Smaller bottles and transportable cans have revolutionised the way people drink. Sweetened waters like Volvic Lemon and Lime or Strawberry especially are increasingly in demand with children as well as adults. With most children and their parents enjoying a mid-afternoon snack (“goûter”), increasing quantities of soft drinks are consumed. One major event has influenced the consumption of this type of food item. A law passed in 2005 forces public places with vending machines (schools and offices mainly) to cut back their offer of soft drinks or to remove the machine altogether. This has had a major impact on coffee and tea consumption, which has usually been replaced by healthier alternatives such as fruit juices and water. People will then spend less on coffee and tea and feel happier because they have consumed a fruit drink they feel is better for their immune system or their vitamin intake. Household spending on nutritional and vitamin-added drinks has soared over the last few years. Drinks such as “Actimel” or “Yakult” and other such brands that have copied this concept are present in nearly every refrigerator. Energy drinks are a trend that has recently come to France. Drinks such as Red Bull were illegal until 2008 because of their animal hormone content. Alternatives were available in nightclubs and bars and were extremely popular with partygoers. It was also possible to import the illegal drink while on vacation in countries were it was sold like Spain or Germany.

Shopping for Food and Non-alcoholic Drinks
French people are the most sensitive to one variable when they shop for food: the price. This factor has influenced the fact that most households (92.9%) shop for food in supermarkets and “hypermarkets”. A survey undertaken in 2007 by French distribution specialist N. Michel showed that French people tend to visit these big food stores on average every ten days (36.9 times a year) with a preference towards “hypermarkets” such as Carrefour or Auchan. They also tend to spend on average €36.40 at each visit. These “hypermarkets” are usually built in suburban areas where is there is enough space to house a huge food store, a parking lot and a small number of surrounding shops. These commercial zones attract most French households wanting to spend as little as possible on food. They tend to buy 70% of their food items in supermarkets mostly because the range of products available is impressive. Good quality fruit and vegetables are available as well as a wide selection of frozen foods, bread, cheese and other food items. People shopping at those supermarkets also tend to buy in bulk as it is easy to transport with a car. Organic food is not a trend that has taken off in France. There are very small sections dedicated to organic food and the entire range of products from household cleaners to fresh produce and biscuits are grouped together. Typical French markets offer more choice in organic vegetables and meat but again, many people are discouraged because of the price. A survey by a leading French marketing company in 2006 established that nearly 93% of people thought organic food was over-priced. France has always had a reputation for small, independently owned grocery stores and shops. While this remains true for bread, other types of stores have suffered the competition of supermarket giants. Small grocery stores and butchers are reputedly 30% more expensive than supermarkets and are usually located in city and town centres, which are difficult to access for people working or not living there. Unless people have time or money to shop in these stores, they will prefer supermarkets. Furthermore, the introduction of loyalty programmes in supermarkets since 2000 appeals even more to very price-sensitive consumers. All supermarkets have them to various extents: they are mostly based on a system of points that enable the buyer to get reductions after a

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certain length of time. Leclerc is very famous for its loyalty system because it enables its customers to save nearly 10% on food after a certain period of use. Discount stores became popular with rising inflation and food prices although only certain categories of people with low incomes shop there. Discount stores suffer from associations with poor quality and bad atmosphere so French consumers will only go there if it is absolutely necessary. Impact Recent food scandals (such as those involving mad cow disease and seafood pollution in the southwest) means that French consumers demand more information about the food they eat. The French are traditionally well informed about their food and are even more so since these scandals. An alarming fact is that 95% of oranges consumed in France are consumed in juice, half that amount with apples; 90% of French people admit to eating less than 3 vegetable or fruit items every day. French people feel that food in a bottle is more reliable in terms of origin and traceability than loose items. Indeed, the French have never been great consumers of fresh produce and tend to go for frozen and prepared foods. Because food is a cultural item before anything, buying it is also a cultural symbol. This means that shopping expeditions will usually take place on Saturday mornings and French families will all join in, from parents to children. Shopping for food is not something that is done quickly and the French like to take their time to make their selections. Preference will always go to ready-made and frozen foods because they are easier to keep longer and better. Food shopping is the only time when French people actually spend time choosing: increasing work hours and the rise of rushed meals in front of the TV mean that they are usually looking for quick meals.

Eating Habits
With French food as a major reference for many famous and not-so-famous cooks around the world, French people themselves are very keen on preserving their cultural heritage. With recipes mainly based on meat, bread and cheese, it is unsurprising that these sectors experienced the most growth over the 1995-2007 period. French food is essentially comfort food. Two conflicting trends characterise current French eating habits. First, fast eating trends have reached France – the soft drink segment of the market is growing rapidly with the increasing popularity of fruit juices and iced teas. Essentially, this means that children and adults are drinking more bottled liquids. The main explanation is that most of those drinks are available in small individual portions easy to transport either to work or to school. Second, French people are getting healthier. This phenomenon is most noticeable in the more affluent areas of the French population where organic and environmentally sustainable foods are becoming an increasing part of everyday meals. Although most French people consider organic food as such to be too expensive, they will still try and buy more fruit and vegetables. In 2001, the French government introduced sustainable and environmentally friendly alternative options to organic food to try and get people to eat more fruit and vegetables. Impact In France food has now reached an era characterised by ease: food is easier to transport, to carry, to prepare and to eat. Soft drinks, particularly, are characteristic of this trend: individual bottles and cartons have revolutionised the way French people drink. Children are given a carton of juice and an individual portion of biscuits, and not more. The most popular drink is flavoured water, the easiest way to make something healthy more interesting. Smoothies are also entering French markets although they have a bad reputation with many people because they are too expensive and too sugary. A characteristic of French eating habits is that they have always tried to preserve French culinary culture while at the same time adopting modern easy- and quick-food trends. Many fast-food chains in France offer local and traditional sandwich options on top of the normal burger and chips. “Roquefort cheese” burgers, “Foie gras” sandwiches and traditionally made chips are becoming increasingly popular. A strange tendency to eliminate the English language on menus, customer notices and magazines has also accompanied this movement. A law to this effect was attempted in 1994 but was not passed by Parliament.

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Regional foods are also increasingly appearing not only in their own regions but everywhere in France. Traditional Breton cooking with fish and pancakes and south western cuisine based on meat and bread are the two most popular culinary movements. Cookery programmes and books are joining this phenomenon and are increasingly popular gifts and purchases.
Table 75 Consumer Expenditure on Food and Non-alcoholic Drinks: 1995/2000/2002/2004/20062007

EUR billion 1995 Food Bread and cereals Meat Fish and seafood Milk, cheese and eggs Oils and fats Fruit Vegetables Sugar and confectionery Other food Non-alcoholic drinks Coffee, tea and cocoa Other soft drinks TOTAL
Source: Note:

2000 119.4 18.0 35.0 10.1 18.1 3.5 8.2 12.8 9.2 4.5 9.5 3.2 6.4 129.0

2002 126.6 18.7 37.0 10.5 19.3 3.5 9.4 13.7 9.7 4.7 9.9 3.1 6.8 136.6

2004 127.8 18.8 37.1 10.6 19.5 3.4 9.8 13.3 10.4 5.0 10.5 3.0 7.4 138.2

2006 129.8 19.1 37.9 10.9 19.4 3.4 10.0 13.5 10.5 5.1 10.7 3.0 7.7 140.5

2007 131.4 19.2 38.2 11.1 19.7 3.4 10.3 13.6 10.7 5.2 10.9 3.0 7.9 142.3

112.9 16.9 34.0 8.7 17.4 3.5 7.9 12.3 8.5 3.8 8.7 3.3 5.4 121.6

National statistical offices, OECD, Eurostat, Euromonitor International Constant value at 2007 prices

Table 76

Consumer Expenditure on Food and Non-alcoholic Drinks (% analysis and % growth): 1995/2000/2007/1995-2007/2000-2007

% analysis/% growth 1995 Food Bread and cereals Meat Fish and seafood Milk, cheese and eggs Oils and fats Fruit Vegetables Sugar and confectionery Other food Non-alcoholic drinks Coffee, tea and cocoa Other soft drinks TOTAL
Source: Note:

2000 92.6 13.9 27.1 7.9 14.1 2.7 6.3 9.9 7.1 3.5 7.4 2.5 4.9 100.0

2007 92.4 13.5 26.9 7.8 13.8 2.4 7.2 9.6 7.6 3.7 7.6 2.1 5.5 100.0

1995-2007 16.4 13.9 12.4 28.0 12.7 -2.3 30.0 10.5 26.5 37.7 25.5 -8.8 46.4 17.0

2000-2007 10.0 7.0 9.2 9.3 8.4 -4.3 25.8 6.4 16.8 16.0 13.9 -5.6 23.7 10.3

92.9 13.9 27.9 7.1 14.3 2.8 6.5 10.1 7.0 3.1 7.1 2.7 4.4 100.0

National statistical offices, OECD, Eurostat, Euromonitor International Constant value at 2007 prices

Table 77

Per Capita Expenditure on Food and Non-alcoholic Drinks: 1995/2000/2002/2004/20062007

US$ per capita 1995 Food and non-alcoholic drinks Average of CLIFE countries 2,359.43 1,005.68 2000 1,766.71 873.17 2002 1,957.36 913.17 2004 2,697.16 1,183.30 2006 2,841.52 1,346.32 2007 3,175.86 1,529.68

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Source:

National statistical offices, OECD, Eurostat, Euromonitor International

Table 78

Per Capita Expenditure on Food and Non-alcoholic Drinks (% growth): 1995-2007/20002007

% growth 1995-2007 Food and non-alcoholic drinks Average of CLIFE countries
Source:

2000-2007 79.76 75.19

34.60 52.10

National statistical offices, OECD, Eurostat, Euromonitor International

ALCOHOLIC DRINKS AND TOBACCO
Spending on Alcoholic Drinks
Is alcohol widely and cheaply available in France? Does this impact consumer alcohol expenditures? All signs point to half-yes looking at recent figures concerning consumer expenditure on alcohol. In 2003, France was 11th in the world in alcohol consumption, with 9.3 litres of pure alcohol consumed per capita and per year. Though France was ranked second in Europe for amount spent on wine (behind Luxemburg), it was not in the lead for beer and spirits. Alcohol consumption has decreased dramatically over the past 40 years mainly because wine consumption has fallen (higher prices mean more wine is exported and less is consumed in the country). Between 1961 and 2003, alcohol consumption went down 47.5%. The French today drink less than half the wine previous generations did. Beer and spirits are not as popular as wine because they are more expensive. According to the French Statistic Institute, 8.9% of income was dedicated to alcohol in 2002. This was down from 12.4% in 1980. This drop in consumer expenditure is particularly visible since 2002 when prevention campaigns were widely introduced in the media to curb drink driving. France has never had much of a binge drinking problem despite alcohol being widely available. Alcohol consumption is tolerated for people as young as 16-years-old but there are extremely stringent laws (the famous “Sarkozy” laws of 2004) punishing drinkdriving. Impact Drinking in France is a cultural thing. There is nothing better than relaxing with friends around a bottle of Bordeaux. Wine is incorporated into the French work ethic, and work lunches are usually accompanied by a few bottles of wine. Most French people drink a glass of wine a day, more so for older consumers. Recent years have seen the French drinking more responsibly and more selectively. They look for quality rather than quantity. The average amount spent on a bottle has risen. Long gone are the days of wine in plastic bottles costing a few centimes (the famous “table wine” or “vin de table”). French consumers prefer more expensive wines, sometimes directly from the producing Chateau if possible. Most supermarkets, where 76% of French people purchase their wine, offer wide selections and also employ a Wine Adviser to work exclusively in the wine department. Spirits are popular in France, especially with young people and, most importantly, with students. Because alcohol advertising is highly regulated, spirit companies have found new ways to attract new and not very discerning customers. French students are bombarded with alcohol merchandise and sponsoring during university parties. Open bars are also extremely popular and all-you-can-drink parties get wide attendance. Whisky and vodka-based drinks are the most popular with students wanting to spend little money in their efforts to get drunk. Alco-pops are not very popular in France. The French prefer mixing their own drinks and it is usually considered cheaper to do so.

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Beer is expensive in France, and pints are not the traditional measuring reference used. “Demis” are usually preferred because they are cheaper but also because they can be mixed with fruit syrups. Sugary drinks are growing in popularity and alcohol-based drinks have not escaped the trend. This is mostly because young people drink the most beer, which is usually seen as a ‘cheap’ and cheerful alternative to more expensive alcohols such as wine or spirits.

Spending on Tobacco
French people have traditionally spent more on alcohol than on cigarettes and tobacco mainly because alcohol has always been cheaper and more accessible. Wine, especially, rallied more people than tobacco did. Recent years, however, have seen a 26.5% increase in the budget allocated to tobacco despite tobacco prices rising in the mid-2000s. For the first time, also, the amount spent on tobacco has overtaken that spent on alcohol: in 2000, French people officially spent more than half their alcohol and tobacco budget on tobacco. Tobacco spending has increased dramatically among young people who have increased amounts of pocketmoney. Tobacco prices are also at their highest level for a long time, which further accounts for increased tobacco spending. The European School Survey Project on Alcohol and Other Drugs (ESPAD, 1999, 2003) concluded that France is now in the European average in terms of the number of smokers. Indeed, if France was in a leading position before, tobacco prices and health campaigns have had a tremendous impact on cigarette consumption. With 1.7% of their budget dedicated to tobacco in 2004, the French are under the European average – prices are higher and consumption is lower. Impact Continuously rising prices in France means that consumption has declined. The increase in the budget for tobacco is due to increases in the value of this product not in its volume. The Evin Law of 1991 prohibited tobacco advertising, product placement and sponsoring. This measure was carried out in order to discourage people from smoking. Governmental measures were accompanied by price rises, the most recent one being an increase of 6% on the price of individual packets in the summer of 2007. Smoking has always been socially acceptable in France. More than 40% of 17-year-olds admit to having smoked cigarettes during the preceding month. Despite drops in tobacco consumption (5% between 2003 and 2005), around 31% of French people smoke regularly, some of them starting as young as 13-years-old. This is an alarming fact considering that, according to the French Statistic Institute, the average budget for cigarettes is around €1,020 annually (around $1,450). Because tobacco is a high dependency good, people will go to extreme lengths to find money to finance their habit. This is made more difficult by the fact that cigarettes only exist in packets of 20, 25 and 30. Packets of ten cigarettes were very popular with young people before they were prohibited in 2001. Loose tobacco also has its followers but is less appreciated because it is harder to use. Only poor and young people use this type of tobacco.

Shopping for Alcohol and Tobacco Products
In France, alcohol and tobacco purchases are very repetitive, meaning consumers will usually return to the same shop or the same supermarket. Alcohol is mainly bought in supermarkets because prices are cheaper and the selection is quite impressive. Supermarkets remain the traditional destination for alcohol purchases although shops such as “Nicolas” and other specialist retailers in wine have always been present. On the other hand, supermarkets do not offer cigarettes and only licensed retailers can sell them. French “tobacco shops” (“Tabacs”) are called this way because they mainly sell tobacco, cigars and filters, usually alongside magazines, sweets and lottery tickets. Cigarettes form the bulk of their profits, and they are the only places where one can buy cigarettes in France. Bars and nightclubs have suffered from the 2007 smoking ban and do not usually stock cigarettes anymore. Impact

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French governments have been trying to limit distribution channels for cigarettes and alcohol in order to curb their consumption. Advertising restrictions were introduced in the early 1990s but consumption was unaffected. Apart from most bars and cafés that actually sell small quantities of alcohol and some cigarette brands (under the counter usually), outlets have become increasingly restricted. Rising prices and the decreasing numbers of places selling cigarettes have led to more and more French people buying their cigarettes in bulk, usually on special trips to Spain or Belgium. Border towns usually have giant supermarkets which become very crowded at weekends with French people stocking up on tobacco and cheap alcohol. Most tobacco shops in France are closed on Sundays so it can often be quite a journey to find cigarettes at weekends. It seems that everything is done to make smoking more difficult.

Drinking Habits
Alcohol consumption is more regular with men: 20% admit having consumed alcohol every day versus 7.3% of women. Men also tend to drink more in terms of volume than women with an average 2.6 units a day. Women drink about half that amount. Drinking also becomes more common with age: more than half the men aged 65-75 drink everyday versus only 5.3% of 20-25-year-olds. This is reinforced by the fact that drinking is very much considered to be a cultural thing in France. If Sunday is the day when most people will have a drink because they are not working, Saturday is the day when the quantities are the most important (on average, three drinks) as people go out more on this day. Impact According to the French Health Monitor Group in 2005, 87% of French people say they are well informed about alcohol issues. However recent drink-driving figures show that this is not as true as some would like to think: a third of all fatal road accidents are due to alcohol, with 42% of young people involved in these accidents. With alcohol limits at 0.5g/l, the number of accidents is always high despite legislative efforts to bring this limit down. Alcohol consumption in France is also embedded in the rituals of French life, and celebratory events do not happen without alcohol: births, weddings, retirement parties and professional or sport success. However, alcohol in France is also consumed in 57% of cases by people on their own to curb feelings of loneliness, stress and sadness. Alcohol is very much a part of French life, usually starting at a very young age. Only 13% of young people have been told by their parents to limit their alcohol intake against 32% in the case of cigarettes. Wine, particularly, is not considered as dangerous as other types of alcohol; some, in fact, regard wine as having medical virtues. Drinking is part of the French “art de vivre”: if wine and cider are preferred by older consumers, strong liqueurs like whisky, rum and vodka are preferred by younger generations. Over 56% of young people admit to having consumed high volumes of alcohol in the past 12 months. Drinking is a ritual for young French people because it represents not only the opportunity to be with family and friends but also the passage into adulthood.

Smoking Habits
Smoking is trendy amongst teenagers and vital for older people who have become dependent on nicotine. Smoking is widely tolerated in French society as a normal habit just like drinking or reading a book. However, with smoking forbidden in public places as of 2007, the number of French smokers is declining and the habit less widely accepted. There are 66,000 deaths due to tobacco every year in France, most of those women. Cancer is becoming a “society phenomenon” and the French are beginning to realise that their former care-free attitude about smoking encouraged reckless behaviour, especially amongst younger people. Impact

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French women are increasingly more affected by lung cancer than French men are: female deaths attributed to lung cancer rose 3% in the 1990s to 45,000 deaths (more than two thirds of the deaths). Men are less affected by this phenomenon as it is women who have started to smoke more to escape the pressures of work and motherhood. Nicotine patches and supplements have become a major source of consumer expenditure in 2007 as related sales rose 30.6% compared to 2006. The National Health Insurance system also contributed €50 to people wanting to stop smoking and helped more than 430,000 individuals. The French government is trying to fight cultural associations linked to smoking and tobacco in France especially for younger people, such as the fact that smoking is often associated with French film stars.
Table 79 Consumer Expenditure on Alcoholic Drinks and Tobacco: 1995/2000/2002/2004/20062007

EUR billion 1995 Alcoholic drinks Spirits Wine Beer Tobacco TOTAL
Source: Note:

2000 15.2 4.3 9.1 1.7 15.9 31.0

2002 15.5 4.4 9.3 1.7 17.0 32.5

2004 15.1 4.2 9.1 1.7 16.5 31.5

2006 14.9 4.1 9.0 1.7 16.4 31.3

2007 14.9 4.1 9.1 1.7 16.7 31.6

13.9 4.1 8.1 1.7 13.2 27.1

National statistical offices, OECD, Eurostat, Euromonitor International Constant value at 2007 prices

Table 80

Consumer Expenditure on Alcoholic Drinks and Tobacco (% analysis and % growth): 1995/2000/2007/1995-2007/2000-2007

% analysis/% growth 1995 Alcoholic drinks Spirits Wine Beer Tobacco TOTAL
Source: Note:

2000 48.8 14.0 29.3 5.6 51.2 100.0

2007 47.2 13.0 28.8 5.4 52.8 100.0

1995-2007 7.7 0.9 12.5 0.8 26.1 16.7

2000-2007 -1.6 -5.3 0.1 -0.9 5.1 1.8

51.2 15.0 29.9 6.3 48.8 100.0

National statistical offices, OECD, Eurostat, Euromonitor International Constant value at 2007 prices

Table 81

Per Capita Expenditure on Alcoholic Drinks and Tobacco: 1995/2000/2002/2004/20062007

US$ per capita 1995 Alcoholic drinks and tobacco Average of CLIFE countries
Source:

2000 424.95 205.47

2002 466.19 223.01

2004 615.13 296.69

2006 633.35 327.31

2007 705.23 374.50

525.30 224.45

National statistical offices, OECD, Eurostat, Euromonitor International

Table 82

Per Capita Expenditure on Alcoholic Drinks and Tobacco (% growth): 1995-2007/20002007

% growth 1995-2007 2000-2007

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Alcoholic drinks and tobacco Average of CLIFE countries
Source:

34.25 66.86

65.95 82.27

National statistical offices, OECD, Eurostat, Euromonitor International

CLOTHING AND FOOTWEAR
Spending on Clothing and Footwear
Are the French image and fashion-conscious? Or do they just like clothing? The proportions of consumer budgets allocated to clothing and footwear remained relatively stable over 19952007, although there has been a very slight increase in favour of clothing. French people spent around 69% of their clothing budget for garments, an impressive amount compared to spending on materials (around 0.7% on average). Footwear remained stable with around 17%-18% of the total budget. According to TNS Worldpanel Fashion, French people bought more clothing and more expensive clothing in 2007, with a 3% and 6% rise in volume, respectively, despite consumption levels not being exceedingly dynamic. French households increased the budget allocated to clothing and footwear by €22 from 2006 to €715 a year. It seems that French people buy more clothing: this is confirmed by the 10% fall in the budget allocated to cleaning and repairing. French people do not seem to recycle their clothing as much from year to year and will replace old items more rapidly. This is most likely brought on by the rise in disposable and cheap fashion. These figures show that French people prefer purchasing their clothing rather than making it. This is particularly emphasised by the fact that French people spend around twice as much money on clothing as other CLIFE countries, a consistent trend over the 1995-2007 period. Impact There are two sales periods in France: winter and summer. Sales are very strictly regulated by the central government and, as a result, do not offer as interesting bargains as one would expect. Still, the psychological effect of “getting a bargain” is strong and French people spend 20% of their clothing budget during the sales (€183 a year). The development of on-line shopping has revolutionised bargain hunting with 55% of items on sale bought on-line. As many as 43,000 websites offer discounted clothing and accessories, with a €6 billion turnover in 2007. Most French people do not mind spending more on clothing if they know they will find their size and the colour they prefer. This attitude deeply contrasts with that towards food shopping: French people are not nearly as price conscious about clothing as they are with food. With rising incomes for women, upmarket shops are preferred shopping destinations. Usually located in affluent areas of French city centres (Rue Saint-Honoré in Paris, for example), these boutiques offer non-conventional clothing. Recent years have seen a rise in the number of high-street stores offering cheap and disposable fashion. Chains such as Zara and H&M are so popular in France that their sales periods are accompanied by massive queues of stressed women waiting for the shops to open. They are mostly popular with teens and young women because the sizes they display are often quite small. However, for the first time in several years, 5% fewer people admit to not buying cheaper clothing and concentrating on more expensive brands. Despite textile prices going up, French people buy more quality articles mainly because they will last and be in style for a longer period of time. Footwear is an unexplored area of French fashion. With tennis shoes and running shoes accounting for a third of the total spending on footwear, French people like being comfortable in their shoes. This segment of the market is very much influenced by youth fashion.

Shopping for Clothing and Footwear
Saturday is the day when the streets of major French cities are flooded with thousands of people looking for clothing. Despite rising prices, French people still spent 65.2% more on clothing during the 2000-2007 period.

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There is a general belief in France that to feel good one must look good and as a result, no expenses are spared even during difficult financial times. French people spend nearly twice as much on clothing than any other European country. Rising prices can explain part of this increase. But the major reason is attributable to French people being very image-conscious. French people consider clothing to be part of their culture. Attitudes towards shopping for clothing are similar to those towards food shopping in one major aspect: French people will have one or two favourite places where they will shop regularly because they like the style and trust it. But they will like to shop around for other clothing and keep informed by reading magazines and scanning websites. However, shopping for clothing in most cases is not dictated by necessity but by a desire to buy something nice, appealing and suitable. Impact French people will have clothing for every occasion. They will have basic items in their wardrobe such as the classic little black dress for women or the evening suit for men. They feel the need to be prepared for every occasion. But they will tend not to reuse clothing they have already worn too much and will, if anything, buy a similar piece of clothing in a varying style. French people will gladly reuse someone else’s mattress or microwave but clothing is something sacred and very personal. As a result, second-shops exist but are not terribly popular with many people. Indeed, though vintage fashion has conquered fashionistas in France, reusing someone’s pair of jeans is not something many French people would consider. It is different for clothing that has been used by a member of the family, especially for babies and children. French people consider fashion to be disposable and not reusable. French people are very much influenced by the price factor when they buy food and electrical appliances. They will see organic food as too expensive. But they do not mind spending a month’s wages on a coat or a pair of luxury shoes. One French idiosyncrasy is that the credit system is not very developed as French people prefer paying immediately for what they buy. Credit cards are not very common although there have been some recent financial innovations to adapt to credit offers in other countries.

Traditional Clothing
France is like many other western countries: jeans and T-shirts are the clothing norm. Although people will wear proper suits and smart clothing to work, they will dress down at home and during the weekends. On thing of importance to note is that there are strict limits to mixing office life and casual clothing: events such as “Casual Friday” or themed days are very rare in French companies, which prefer employees to remain formally dressed. Fashions vary according to the wearer’s social category, age and disposable income. There is no specific French way of dressing and there are people in the street wearing tracksuits, work suits, jeans and evening wear just like anywhere else. Impact The main idea to remember with French people is that there are two distinct categories of clothing. French people will tend to be trendsetters in the higher end of the market with famous fashion houses influencing the world of “Haute Couture”. The French know how to make chic and expensive clothing and have been doing so for several decades in Paris. However, French people will be followers for most other levels of fashion. Young people, particularly, are very sensitive to how English and American teenagers dress and will tend to copy their style. Many teenagers, for example, adopted skinny jeans and ballet flats a few weeks after the style hit the British capital. Young people will always be in their uniform of jeans and tennis shoes but will monitor how their peers dress in other countries. There are different ways of dressing according to the place where people live. Most obviously, people living in the Northern regions will have more jumpers than people from Marseille or Nice, whose main clothing items will be T-shirts, for example. But the differences are subtler than that and young people from different regions adopt their own styles that might a variation of what others wear. The difference between Paris and the rest of France is very real.

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Fashion Trends
One major situation causes French people to become very fashion conscious very early: there are no school uniforms. Children are forced to choose their clothing every day at an age when dressing trendily is very important. This means that children will be classified in a particular style from an early age: there will be the “posh kids” who wear collared shirts and expensive clothing, the “street kids” who will wear caps and tracksuits and the “trendy kids” who will sport the latest shoes or t-shirt. Belonging to a specific trend is very important in France and teenagers will often be judged accordingly. The closer you get to Paris, the trendier the people are. But everywhere, people monitor magazines and websites for the latest trends from London or New York. Women will have a subscription to many magazines in order to keep up-to-date. Elle, the most famous French fashion bible, has weekly editions to provide updates on fashion trends around the world. There are also many magazines advertising cheap fashion alternatives to the catwalk versions for cash-poor consumers. Being in fashion is very important at every age. Older people prefer to look polished and well-cared-for while younger people will follow trends, especially trends from the UK and the US. Impact A recent trend is the popularity of sports clothing in French households. The French love it because it can be sophisticated and practical at the same time. New ranges of sports gear designed by Stella McCartney for Nike has proved that fashion and sports can indeed go together. The proportion of sports clothing in this sector has increased from 16.8% to 18% in 2005, with an overall turnover of €5 billion. The fashion industry is very important in France and represented €26 billion in 2003. Clothing represents 39.9% of the overall turnover while perfumes are responsible for 46.2%. They are the two main branches of the French fashion industry which itself is responsible for 5% of the total profits of the entire industrial sector. One also has to remember that 35% of the production capacity in France is destined for exports, according to the French Industry Ministry.
Table 83 EUR billion 1995 Clothing Clothing materials Garments Other clothing Clothing cleaning, repair and hire Footwear TOTAL
Source: Note:

Consumer Expenditure on Clothing and Footwear: 1995/2000/2002/2004/2006-2007

2000 39.8 0.4 33.6 4.6 1.3 8.6 48.5

2002 40.1 0.3 33.6 4.9 1.2 8.7 48.8

2004 40.2 0.3 33.8 4.9 1.2 8.6 48.8

2006 40.3 0.3 33.9 4.9 1.2 8.7 49.0

2007 40.5 0.3 34.0 5.0 1.2 8.7 49.1

38.6 0.4 32.7 4.1 1.3 8.7 47.3

National statistical offices, OECD, Eurostat, Euromonitor International Constant value at 2007 prices

Table 84

Consumer Expenditure on Clothing and Footwear (% analysis and % growth): 1995/2000/2007/1995-2007/2000-2007

% analysis/% growth 1995 Clothing Clothing materials Garments Other clothing Clothing cleaning, repair and hire 81.6 0.9 69.2 8.7 2.8 2000 82.2 0.8 69.3 9.4 2.7 2007 82.3 0.6 69.2 10.2 2.4 1995-2007 4.8 -36.6 3.9 20.9 -10.0 2000-2007 1.5 -30.3 1.2 9.6 -8.4

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Footwear TOTAL
Source: Note:

18.4 100.0

17.8 100.0

17.7 100.0

-0.5 3.8

0.4 1.4

National statistical offices, OECD, Eurostat, Euromonitor International Constant value at 2007 prices

Table 85 US$ per capita

Per Capita Expenditure on Clothing and Footwear: 1995/2000/2002/2004/2006-2007

1995 Clothing and footwear Average of CLIFE countries
Source:

2000 663.94 357.08

2002 698.93 361.88

2004 951.89 462.80

2006 991.76 518.68

2007 1,096.52 583.45

917.85 417.58

National statistical offices, OECD, Eurostat, Euromonitor International

Table 86 % growth

Per Capita Expenditure on Clothing and Footwear (% growth): 1995-2007/2000-2007

1995-2007 Clothing and footwear Average of CLIFE countries
Source:

2000-2007 65.15 63.40

19.47 39.72

National statistical offices, OECD, Eurostat, Euromonitor International

HOUSING
Spending on Housing
According to the French Notaire Association, French consumers were, on average, 14% more likely to buy a house or a flat in 2005 than they were in 2004. With 19.5 million moving in the same year, there was room for a property boom. However, with the major proportion of consumer budgets spent on food and energy bills, there is little room for buying property on top of that for many households. Indeed, the price of energy rose 24.5% over 1995-2007 with electricity and liquid fuels soaring. However, France, along with Greece and Finland, had some of the cheapest electricity in Europe in 2007. There were 32.5 million houses and flats in France at the end of 2007, with 6% unoccupied. The number of unoccupied housing in France has remained stable with a dynamic construction sector. Indeed, 2006 was the best year for construction for 25 years, according to the French Statistic Institute, with an increase of 8.5% in volume. Rather than spend fortunes on housing in city centres, many French people have decided to build their own houses within commuting distance of cities. With the average price of a house in France being around €200,000, and for a flat around €105,000, there are many disparities between regions: the extreme southern regions are considered more desirable than cities like Lille or Strasbourg and property prices there have witnessed the most change. Still, property prices in France rose by 143% over the 1997-2007 period and are predicted to rise further. French property prices remain high in every segment. The price of old property in city centres rose 118% for houses and 136% for flats during the period of observation with more pronounced increases in Paris and major southern cities like Lyon and Toulouse. In 2002, 56% of French households were home-owners, with 60% of them having finished paying for their mortgage. At the same time, 38% of French households rent their accommodation, with 17% of those in social housing. Being a homeowner in France is a decision that tends to be made late for many households. With the average price of a mortgage equalling four years of wages, the French step onto the property ladder later on in life. With so many single-person households, property inflation has been most noticeable in flats, be they rented or bought. City centres particularly suffer from overcrowding and rising price, while suburban residential areas struggle to attract many people apart from couples with children.

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Impact Accommodation sizes in France have varied over the last 20 years mainly due to an increase in the size of individual houses: these are 10m2 bigger than in 1975. The explosion in residential construction is the reason for this increase in the size of property as the size of flats has not varied much over the same period. The expansion of cities into surrounding areas means that the number of houses being built has increased substantially since the 1960s and mainly in the 1990s. In 2006, 421,000 new homes were being built. The French “lotissements” or residential areas are new semi-detached homes built on the same model. Their usual configuration is three bedrooms and a garden. Community life in these areas is often more pronounced than in the city. These areas often tend to develop into mini versions of a city with their own shops and administrative buildings. Bigger houses often need more upkeep and decoration work. French people tend to enjoy DIY projects because they are cheaper than delegating renovation and maintenance work to workers and contractors. People in suburban areas especially visit DIY and construction shops very often and usually at the weekends. However, it is forbidden in most of those residential areas to do DIY work on Sundays! These areas will tend to be close to the city: they are often called “ville-champignon” (mushroom towns) because they have sprouted up quickly in response to increasing property prices in the city. People will tend to live not too close to the city in order to reduce transport costs. The boom in property and rental prices as well as energy bills has meant that 1.6 million people in France live without workable heating. More than a million properties have dangerous electrical wiring, in most cases in city centre flats. Lifts and modern garbage disposal systems are rarely present older buildings. Despite governmental efforts to improve electrical installations and the general condition of flats, the scarcity of this type of accommodation means that people are ready to rent just about anything. The average rental price for a one bedroom flat is around €450 ($630) in most places but more in Paris. Flat sharing is not common although American television series such as Friends have introduced this type of behaviour in France. The average renter profile is a young professional in her late 20s living in a rented apartment of at least 50m2. French Market Research Institute Xerfi announced that property prices were going to fall by 17% by 2010 as a consequence of economic events in 2008.

Renting Vs. Buying
A recent survey conducted by the French Property Federation in 2007 concluded that while GNP rose 26% in the previous 10 years and French buying power increasing 29% in the same time, the price of property also rose 100% in real terms. “A French person must be in good employment to afford a house: buyers cannot take the pressure anymore because of increasing interest rates and longer mortgage duration.” There has always been a belief in France that the specificities of the French system would protect it from a property crisis. Because mortgage conditions are so stringent and fees are so high, French people tend to deliberate for along time before they buy a house. This is why the average homebuyer is around 29-30-years old, sometimes older in some cases. There is no “property” culture in France like in so many other countries. However prices are still more affordable in France than in most countries. It is no wonder that 4.7% of French properties are owned by foreigners. Renting has always been considered a good way for people to settle down. Although rents went up around 35% during the 2000s, for many people it is the only possible solution. There used to be major differences in rental prices between various regions before 2006-2007. Southern France, which is more rural than the formerly industrialised north, was on average 15% cheaper. Prices aligned in late 2006 with places like Rennes or Aix, which are not even the most populous towns in France, leading the way for more expensive property prices. Impact French price combustion has triggered a new social phenomenon known as the “Tanguy” generation. Taking its name from a film, these people are young professionals who have gone back to their parents’ house until they can afford moving out. This means that for the 11% of the French population in this situation, buying their own furniture and paying their own bills will be delayed by a few years. The comfort of the parental home for them

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is a way to save major amounts of money. As a result, they tend to go out more and be more sociable than their hard-working independent counterparts. On average, they eat out more than twice as often as “normal” people their age. Most people who rent will usually delay buying certain items until they have their own property. French people “invest” in furniture as much as they invest in property. Appliances such as refrigerators or cupboards will usually be renewed when French people move into their own house. People will also invest in more expensive items when they move into their first place, preferring retailers such as Habitat or BHV for their kitchenware or interior decoration. Many people will also receive housewarming presents when they move, ranging from cutlery to plants. The price of old French property has risen 90% since the mid-1990s and has encouraged French people to build or renovate their own accommodation rather than wait to be able to afford existing stock. French renovation projects often take up to several years with people living in half-finished rooms for certain periods of time.

Utility Costs
The rising prices of water, electricity and petrol have changed the way many French households live. This is separate from the 10% of French households classified as “insalubrious” because they have old electrical installations and bad heating insulation. Competition for accommodation is so fierce in some places that people are ready to accept living in bad conditions if it means they can have a roof over their head. Gas and petrol especially reached sky-high prices with the budget for gas increasing 82.6% over the 1995-2007 period. Gas installations that are generally cheaper to run than electricity are accessible in 80% of French territory. Indeed, gas consumption increased 1% in 2005 due to a parallel rise in the price of electricity (over the last 30 years) and the development of nuclear energy. Gas still remains popular for heating French households (36% of the heating capacity in 2000) because it is cheaper to use. Over 30% of recently built houses are equipped with gas facilities. France’s mild climate means that fuel bills might not be as high as in colder countries. However, the energy bill still accounts for nearly a quarter of total expenditure on housing, a figure that has risen sharply since the mid1990s (16.7% of the budget in 1995). Many poorer households find they have to sacrifice parts of their budget in order to pay their electricity bill every year and will be forced to cut down on food spending for example. Impact French people have considered finding alternative ways to heat their homes. Chimney fires have increased since 2005 as people increasingly put them to use. It is very common to see vans driving around residential areas advertising cheap firewood that will often be delivered directly to households. Wood fires only represent 2.5% of energy consumption in France although it one of the most environmentally-friendly options. However, when old properties in France have a chimney, they are often not usable because of city centre health and safety rules. Chimneys are often located in the sitting room of the house or flat which means that this area will be the centre of activity. Television watching and meals will usually take place near the fire. Environmentally-friendly heating is also starting to develop in France. There have been government tax initiatives for households that use solar panels and recyclable water systems but the initial investment often remains too high for many people. Only a few hundred households are actually equipped this way. An intermediary solution for some households has been investing in systems that regulate the level of heating according to the temperature of the room. This solution, paired with better insulation, enables savings of around €200 a year (or 30% of the heating bill). The heating in the room is always maintained at the best temperature which means that people walking around the house will not have to wear too many layers of clothing. French people have also tried to find alternative ways to get to work in order to save on high fuel costs. Although car pooling is starting to occur in some companies among colleagues living near each other, it is not a developed system as it is in the US for example. If anything, French people will buy a second car if they need it. However, cities have tried to modernise public transport infrastructures. Train systems are mainly used for long distance journeys so buses or trams are often the best option for many. The Bordeaux tram system, built in 2004, is currently extending further into the suburbs. Tube systems have also been built in towns such as Toulouse and

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Rennes although they are not the biggest towns in France. By law, local transport infrastructures should be comprised of at least 20% of vehicles using renewable energy. Motorbikes are also coming back into fashion and not by choice. They were usually associated with younger people who used noisy “scooters” and “mopeds” but professionals are now seeking this cheaper form of transport. Indeed, motorcycles dealers are adapting their offer to professionals wanting to get to work with minimal cost. They have created special pollution and rain protection gear for people riding in city centres. These people often choose to buy a “scooter” instead of a car.

Maintenance and Repair
The budget allocated to maintenance and repair went up 19.1% over the period of analysis to approximately 5.1% of the budget. Recent trends of people buying old traditional French houses are responsible for part of this increase. Indeed, French people often prefer buying a cheaper house which needs some work than spending more on a renovated house. The cost of housing having gone up 98.2% over the 2000-2007 period, most French households will do maintenance work themselves, even if it takes several years. The most recent trend includes modernising insulation systems in order to save some money on the energy bill. Maintenance work will often be carried out to insulate windows and rooftops as well as flooring. Over 80% of French people did DIY work in 2006. DIY’s market is estimated at over €20 billion in France with a continuous growth trend (+3.9% in 2006). In first place for maintenance and repair equipment came wood (14.2%) encouraged by environmentally-friendly construction, plumbing (13.4%), decoration (13%) and gardens (12.1%). Impact A French architect announced that the 2000s marked the revival of natural materials like wood, brick and stone as well as a lot of recuperation work. French people will often want to build a more natural environment in their household in order to feel more in harmony with nature. The ecological impact has modified the nature of materials supplied: French consumers prefer natural parquet floors instead of artificial laminate flooring, for example. There is also the question of the recyclability and durability of the materials used. As much as French people enjoy DIY work and general household maintenance, they will prefer to undertake durable repair and renovation work. One of the most important problems confronting French society today is the rise of crime especially in suburban areas. Many French villages still feature inhabitants leaving their doors unlocked at night but it is getting rarer by the minute. French people will reinforce windows and doors not only to save money on energy but also to keep burglars out. Security alarms are not popular because French people find them intrusive. Access to the internet and satellite and cable TV has encouraged many French households to progressively add more and more electrical outlets. Electrical maintenance focuses on making energy consumption more efficient and less costly as there are many more appliances plugged in: on average, 25% of French households are connected to satellite TV and more than 50% of them own a computer connected to the internet.
Table 87 EUR billion 1995 Actual rentals for housing Imputed rentals for housing Maintenance and repair Water and sewerage Electricity, gas and other fuels Electricity Gas Liquid fuels 31.8 102.1 10.9 10.9 31.2 18.0 6.0 5.0 2000 36.0 117.1 11.5 13.0 32.2 16.8 6.2 6.8 2002 36.5 123.7 12.1 13.6 32.3 16.8 7.2 6.1 2004 39.5 131.5 12.3 14.5 35.4 18.3 7.8 7.2 2006 42.4 140.5 12.7 15.2 38.3 18.8 8.4 8.8 2007 43.1 144.9 13.0 15.6 38.8 18.7 8.7 9.2 Consumer Expenditure on Housing: 1995/2000/2002/2004/2006-2007

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Solid fuels Heat energy TOTAL
Source: Note:

1.0 1.2 186.9

1.0 1.3 209.7

0.9 1.3 218.2

0.8 1.3 233.2

0.8 1.4 249.2

0.8 1.4 255.4

National statistical offices, OECD, Eurostat, Euromonitor International Constant value at 2007 prices

Table 88

Consumer Expenditure on Housing (% analysis and % growth): 1995/2000/2007/19952007/2000-2007

% analysis/% growth 1995 Actual rentals for housing Imputed rentals for housing Maintenance and repair Water and sewerage Electricity, gas and other fuels Electricity Gas Liquid fuels Solid fuels Heat energy TOTAL
Source: Note:

2000 17.2 55.8 5.5 6.2 15.3 8.0 3.0 3.2 0.5 0.6 100.0

2007 16.9 56.7 5.1 6.1 15.2 7.3 3.4 3.6 0.3 0.6 100.0

1995-2007 35.4 41.9 19.1 43.2 24.5 4.3 44.9 82.6 -26.1 24.1 36.6

2000-2007 19.9 23.7 12.8 20.7 20.6 11.2 38.8 35.4 -23.8 12.5 21.8

17.0 54.6 5.8 5.8 16.7 9.6 3.2 2.7 0.6 0.6 100.0

National statistical offices, OECD, Eurostat, Euromonitor International Constant value at 2007 prices

Table 89 US$ per capita

Per Capita Expenditure on Housing: 1995/2000/2002/2004/2006-2007

1995 Housing Average of CLIFE countries
Source:

2000 2,871.95 1,206.67

2002 3,127.86 1,300.31

2004 4,551.68 1,721.63

2006 5,040.76 1,961.24

2007 5,700.74 2,232.60

3,626.57 1,264.37

National statistical offices, OECD, Eurostat, Euromonitor International

Table 90 % growth

Per Capita Expenditure on Housing (% growth): 1995-2007/2000-2007

1995-2007 Housing Average of CLIFE countries
Source:

2000-2007 98.50 85.02

57.19 76.58

National statistical offices, OECD, Eurostat, Euromonitor International

HOUSEHOLD GOODS AND SERVICES
Spending on Household Goods and Services
Two parallel trends have affected the market for household goods and services. First, there was a 32.7% rise in the demand for domestic and household services due to an increase in work hours, especially for women. Secondly, there was a 25.1% increase in the budget devoted to DIY goods over the same period as prices for furniture and renovation increased. The average budget spent on household goods was €1,265 in 2006, encouraged by a rise in average income and positive consumer expectations.

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Categories that have also experienced growth are household tableware and glassware as well as decoration items. French people have been overtaken by the “cocooning” trend where they prefer staying in the comfort of their own homes to entertain guests. French people have always spent around 2-3 times more money on their household than other countries although recent figures show impressive advances in many CLIFE countries. The French view a home as a private and comfortable space far from the pressures of work and city life. This idea was even more present at the end of 2007 due to negative financial and economic conditions. Busier lifestyles, especially for women, mean that less time is spent on housework or taking care of the children. Women who are high earners especially will employ cleaners several times a week. Tax reductions on homehelp have increased the demand for this type of service, which is now responsible for 37.2% of consumer expenditure on households. Popular household services also include the annual chimney-sweeping visit and general maintenance work such as plumbing and repairing. Impact The French Furniture Industry National Union made its profits public for 2007: French consumers spent €9.7 billion on furniture and household goods. Kitchens and beds scored the highest as they experienced respectively a 10.4% and a 9.7% rise in consumer expenditure from 2006. The increasing interest French people have in cooking explains part of this growth. Because shopping for furniture or tableware will be a major investment, there will be few and carefully-planned purchases. As with many other types of goods, the French are very influenced by price and do not mind shopping around to get the best deal on a pair of curtains or a sofa. Consumer guides are extremely popular in France and most French people would not dream of buying furniture or electrical appliances without reading one first. Some furniture shops are now allowed to open on Sundays since the end of 2007 which means that Saturdays, the most popular day, are less crowded. This has encouraged households to spend more as they can plan their shopping over two days instead of one. Young couples, especially, will be regular visitors at weekends in furniture superstores such as Ikea or Conforama. Shopping has been made easier for families with children who need to plan these visits weeks in advance: most shops are now equipped with crèches and child play areas. Women have a role in most decisions about household goods since they are partly paying for them. It is traditional in France that women concentrate more on household equipment as such, while it is assumed that men are more informed about technology-related matters. Purchasing on credit is not very developed or popular in France. Furniture stores will often offer monthly payment plans at low interest rates. However, this type of system will usually be reserved for young couples moving in together or young families. People will tend to save up the money they need (or at least a substantial amount) and make direct payments.

Shopping for Household Goods
The French rely on supermarkets for 60% of their food purchases and on specialised stores for 50% of their electrical appliances according to the INSEE in 2005. The French have set places to shop for and buy goods as they like having favourite shopping destinations they can rely on. The French are creatures of habit and do not really look into many places to buy a specific good. Specialised stores will often have a very wide selection of household equipment at competitive prices. The main drawback is that they are often situated in the suburbs of major cities where there is more space for those superstores. Access is therefore very difficult without a car. Electrical goods are items that are not bought regularly and, as such, are considered exceptional purchases. The French will not buy a TV or a fridge on the internet and prefer going to the shop and having a direct look at what is on offer. The French like touching items and asking questions about them. They are not impulse buyers. There is a distinct segmentation in the type of household goods men and women will shop for. Men are considered more tech-savvy and will be the main decision-makers for such purchases as TVs. Women make the decisions for household items as such. This sort of differentiation shows that French society is still, in some respects, very traditional. Most sales assistants in DIY or electrical shops will be men.

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Impact Couples will not generally make decisions together on specific household goods. While hiring a cleaner or a nanny or buying a Hoover is generally considered “women’s things”, purchasing a TV or a home-cinema unit is something that men do. The same goes for decorating, where a man’s advice will generally be asked but only as an after-thought. Household goods are generally purchases that are planned over a long period of time in order to save money towards their purchase. French people do not like living on credit and this remains true for household goods.

Cooking Habits
With restaurant prices sky-rocketing, French consumers have been discouraged from eating out or simply enjoying a drink with French or colleagues. There is also the specific French belief that cooking is a way to relax and unwind from the pressures of working life. Weekday meals are not considered “cooking” in the strictest sense as food is whisked up quickly between homework and TV-watching. Cooking is something of a sacred activity in France which goes beyond simple leisure. Cooking is a serious matter! Women will traditionally do most of the cooking, and men the serving, although more and more men are seeing the benefits in preparing meals. There is still an informal division of duties in France where men choose the wine and women the food. Cookbooks for men are starting to appear on shelves as TV chefs encourage their male counterparts to cook in their own home. Impact The French favour simple food and cooking inspired by traditional recipes. Although every region has its own specialities, savoury dishes are often meat-based and quite rich. They also tend to take quite a long time to prepare, particularly if one compares it to Italian pasta for example. Saturday mornings will usually be devoted to shopping for meat at the local supermarket, sometimes at the local market as well where fresh local produce is always available. Markets have suffered from the competition of major supermarket chains where prices tend to be cheaper for certain items like vegetables and bread. Shopping for food is something of a ritual for many French people and they will tend to have their own habits and special places where they will get their meat or their cakes. French cooking takes time so dishes will usually be served during the weekend after spending most of the day in the kitchen. There is no special tableware for these meals as cooking this way is usually seen as an opportunity for an informal gathering. The weekend is one of the few periods of time when most of the family will be gathered around the table as meals during the week are taken quickly, most of the time watching the evening news on TV. Weekdays are usually devoted to quicker meals served around 20.00hrs and sometime later. Pasta, salads and ready-made meals make up most of the weekly diet of many French people. Microwavable meals such as macaroni and cheese or lasagne and other frozen dishes are popular. Eating out during the week is rare. As a result, independent French restaurants experienced an 8% fall in their popularity in 2005. Fast-food chains, on the other hand, saw 3% more customers as prices there are generally lower than the €17 ($23) to €27 ($37) necessary to eat out in a traditional restaurant. The popularity of fast-food in France is difficult to evaluate as recent trends promoting the French “cultural exception” have started to reject this meal option. French people are generally quite proud of their cultural heritage, especially when it comes to food. Most French people are aware of fast-food but young people and students will be the only ones to really eat it. Visits to McDonalds are usually reserved for certain occasions in most households with children and will often be associated with another activity such as going to the cinema or rewarding a child for good behaviour. During these visits, French parents will actually watch their children eat and not have anything themselves as they believe they have to “give the example”.

Do-it-yourself and Gardening

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French people have always been very much interested in DIY. It used to be an activity unofficially reserved for pensioners and fathers as they had the time and energy, mostly during the weekends. As property prices continued to rise steadily in the 1990s and early 2000s, French people found themselves forced to do some house repairs and maintenance themselves as they could not afford plumbers or carpenters, for example. What started off as a necessity has turned into a pleasurable activity for many people as they begin to enjoy making their homes more comfortable. The 25.1% rise in the budget spent on this segment indicates the popularity of DIY work over the 1995-2007 period. Consumer expenditure growth affected all household product types apart from gardening products. Spending on gardening utensils and furniture fell 9.4% in 2006, a year that confirmed the downward trend. Bad weather as well as incredible heat waves was to blame. However, gardening is still considered a leisure activity for many French people regardless of age or social class. Impact DIY and gardening are leisure activities that all categories of French people regardless of age and social class enjoy. Stressed and urban lifestyles inspire the need to escape from these pressures. Even in the middle of busy French cities, small patches of cultivated land and flowerbeds have been arranged for the nearby residents to come and cultivate. More and more councils are encouraging residents to do the local gardening themselves and to grow vegetables and fruit on public land. It is a way to make cities more attractive and to bring people together. Indeed, the French differentiate between collective gardening (on communal land for people without gardens) and individual gardening (in personal households). Individual gardening occurs mostly during the winter and spring periods as summers are often too hot to go outside. Gardening appeals both to men and women although there will be some differences in the way in which products are advertised. Women, mostly, will be targeted with fancy garden wear and enjoy purchasing specific items such as brightly coloured shears and trowels and appealing garden wear. Men will be more reserved but they tend to be the ones in the household to read gardening books or to take advice from a TV programme. Balcony gardening is often reserved for women DIY, however, suffers from a strict division of sexes. The most common image associated with DIY is that of the French man locked in the garage. DIY shops have understood this and associate the advertising of drills, chainsaws and mowers with specific male-orientated occasions such as Fathers’ Day or Christmas. Modern trends have seen people ordering seeds and bird food, for example, over the internet although a great majority still prefer to get them directly from the shop.
Table 91 Consumer Expenditure on Household Goods and Services: 1995/2000/2002/2004/20062007

EUR billion 1995 Furniture, furnishings, floor coverings Household textiles Household appliances Glassware, tableware and household utensils Hardware and DIY goods Household and domestic services TOTAL
Source: Note:

2000 14.4 2.9 8.4 6.2 4.0 19.5 55.4

2002 14.5 2.8 8.5 6.2 4.0 20.8 56.8

2004 14.6 2.8 8.8 6.4 4.4 21.1 58.0

2006 15.0 2.8 8.3 6.4 4.4 21.6 58.6

2007 15.1 2.8 8.4 6.5 4.5 22.1 59.3

13.7 2.6 7.7 5.9 3.6 16.6 50.1

National statistical offices, OECD, Eurostat, Euromonitor International Constant value at 2007 prices

Table 92

Consumer Expenditure on Household Goods and Services (% analysis and % growth): 1995/2000/2007/1995-2007/2000-2007

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% analysis/% growth 1995 Furniture, furnishings, floor coverings Household textiles Household appliances Glassware, tableware and household utensils Hardware and DIY goods Household and domestic services TOTAL
Source: Note:

2000 25.9 5.2 15.2 11.3 7.2 35.2 100.0

2007 25.4 4.8 14.2 10.9 7.6 37.2 100.0

1995-2007 10.1 7.6 9.4 10.6 25.1 32.7 18.5

2000-2007 4.9 -2.0 -0.2 3.9 13.0 12.9 7.1

27.4 5.2 15.3 11.7 7.2 33.2 100.0

National statistical offices, OECD, Eurostat, Euromonitor International Constant value at 2007 prices

Table 93

Per Capita Expenditure on Household Goods and Services: 1995/2000/2002/2004/20062007

US$ per capita 1995 Household goods and services Average of CLIFE countries
Source:

2000 759.15 383.29

2002 814.85 395.36

2004 1,132.50 518.75

2006 1,185.12 588.02

2007 1,324.45 668.07

971.82 415.66

National statistical offices, OECD, Eurostat, Euromonitor International

Table 94

Per Capita Expenditure on Household Goods and Services (% growth): 1995-2007/20002007

% growth 1995-2007 Household goods and services Average of CLIFE countries
Source:

2000-2007 74.46 74.30

36.29 60.73

National statistical offices, OECD, Eurostat, Euromonitor International

HEALTH GOODS AND MEDICAL SERVICES
Spending on Health Goods and Medical Services
France is the champion consumer of health goods and medical services in Europe, followed distantly by Germany. Medical goods spending rose 34.4% during the 1995-2007 period and are expected to continue to rise this way in the future. Longer life expectancies and cheap and accessible healthcare are the reasons for the huge amounts spent by French households. Pharmaceuticals and medical appliances especially have experienced tremendous growth of 37.2% over the period of reference followed closely by private home care and hospital services. In 2006, the consumption of healthcare and medical goods was estimated at €156.6 billion or €2,470 per capita on average, a 3.5% increase from 2005. The increase in healthcare expenditure is mainly due to progress in medical treatment as the prices of new drugs or treatments will be higher and reach more people. The quantities consumed have changed little over the period of analysis. Impact

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Although generic drugs and treatments are beginning to appear on the French market, they are not very popular. The main reason behind this is that, unlike for many other types of goods, price is not a variable of choice for health goods. French people will be particularly loyal to one brand of vitamins or a food supplements, for example, regardless of the price. Many French people are concerned about their health and well-being because they believe that everything can be treated through pills or cough mixtures. Eating more healthily or practising a sport are options to be considered after other potential health solutions, and not before. All categories of French people are affected by this phenomenon. The French are often referred to as a country of hypochondriacs. The French health system is so comprehensive and complementary insurances are so cheap that financial access to healthcare goods is not an issue. Most medical services are reimbursed anyway; if they are not, the French government will give an allowance towards contraceptive pills or nicotine patches, for example. The medical system has also adapted to the recent healthcare spending of French people. Plastic surgery and gastric surgery are new services that are partly reimbursed. There is a perception in France that food and health are two different matters. They have only recently been brought together by fat-free or sugar-free foods. For a long time, and sometimes still for many older people, health comes from pills and food supplements. Children are even affected by these attitudes because mothers will spend fortunes on fluoride and calcium supplements and specific toothpastes. The toothpaste section is a good example of healthcare for all generations: types of toothpaste are sold according to the age of the child.

Healthcare System
The French healthcare system was created in 1945 by the French socialist government in power at that time. The entire French population is insured under the “General Regime”. For the poorest, the Universal Medical Cover (CMU) system created in 2000 is entirely free. As of 2007, 1.1 million people, or 7.1% of the population, were covered by the CMU system. The French medical system is generally very comprehensive and one of the most developed in the world: France spends more from its public budget on healthcare than any other country in Europe (nearly 11% of its GNP). Many areas are covered by this general compulsory system from eye care to dental care and even some types of plastic surgery. About 87% of the French population are affiliated with private insurance, often through their work. Companies can contribute up to half the payments for private healthcare and this encourages many people to join private plans. The popularity of the French healthcare system is also turning out to be its downfall. Financial pressure is intense for medical reimbursements and medical services. Debts accumulated by the public social security system amounted to €5.5 billion in the early 2000s, a little less in 2007 due to the effects of the healthcare reform. Indeed, the system was modified in 2004 to make access to healthcare conditional on more administrative procedures from doctors, chemists and patients, as well as on more responsibility and awareness of its limits. As a result, doctors’ fees have gone up 10% and people are given a set number of consultations to use throughout the year. People will also need to be affiliated with only one doctor. The French healthcare system was always taken for granted by most French people who believed it would always take care of all their medical expenses. Great trust and confidence were put into it and, as a result, it has started to collapse from the financial and administrative pressures it has to deal with. Impact The French medical system has undergone many structural changes during the period of reference; 2004, especially was the year of both the Social Security reform and the first visible demographic signs of the ageing population phenomenon. Demand for healthcare workers rose consistently during the 1995-2007 period because of the increasing demands of the French population. Nurses and midwives were particularly concerned by this situation with their numbers growing respectively 41.5% and 54.6%. Doctors and medical specialists were also concerned but in much less important proportions. What brought about this spectacular increase in the demand for health workers? As treatments become more diversified and specialised, the demand for specific categories of health

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workers rises too. Gerontology and cancers are two branches that have experienced spectacular growth over the past few years mainly due to the number of older people requiring treatment. Paradoxically, as demand rose, the number of healthcare workers has been subject to more and more regulations. The pressure to recruit more qualified nurses has been felt in France but the number of position is not following. Long study periods and poor rates of pay (on average, €900 for a health worker in the private system) are to blame. High birth rates have also encouraged the recruitment of more midwives but there is some mistrust with this profession in France and it does not attract many new recruits. Retirement and an ageing population also have had an impact among healthcare workers themselves. As many retired in the early 2000s, they needed to be replaced quickly and efficiently. France is not enthusiastic about employing the immigrant workforce in this sector of the economy and prefers training French-born nurses or midwives.

Major Causes of Death
According to a study published in 2007 by the French Department for Research, Studies, Evaluation and Statistics, the French population was in good health but certain indicators show the need to be careful. Indeed, the rate of premature deaths in France remains one of the highest in Europe. Differences in figures between men and women as well as social categories are also relevant. Life expectancy rates are similar to industrialised country averages, though slightly better for women (84.1years-old). However, the “French lifestyle” and associated attitudes towards drinking and smoking as well as bad food habits have had an impact on the general health of the population. Indeed, though progress has been made in those areas, the healthy life expectancy at birth remains lower in France than the CLIFE average (62.7 years versus 64.3 years in 2006). In 2003, France had the highest rate of “avoidable deaths”, which was twice that in the UK for example. Sadly, nearly a third of deaths before 65-years-old are attributed to alcohol, cigarettes and other dangerous habits in France, and with twice as many men than women affected. Alcohol related deaths sadly hold the record. Alcohol, often in association with tobacco, is responsible for 30% of premature deaths on average. Physical manifestations such as respiratory and circulatory problems are linked to these habits and are threatening the lives of an increasing number of people. Although governmental campaigns starting in 2002 have helped raise awareness of the dangers amongst younger generations, older people and especially men from modest backgrounds are still major victims. Psychological illnesses can also be linked to tobacco and alcohol and can lead to death in some cases. Mental disorders caused 47.7% more deaths over the period of reference than ever before. Obesity is the most recent epidemic to hit France. Fatal conditions relating to diabetes have risen 94.8% over the period of reference. Bad eating habits as well as an increase in the consumption of ready-made meals are responsible for this condition. In 2007, 10% of the French population was obese, a tremendous increase from earlier figures. The French are obviously not as healthy as some may think they are. Impact The emergence of new causes of premature death in most cases has increased the pressure put on the French health system which was already reaching the breaking point in the 2000s. This situation is different regarding men and women; men are 2.2 times more likely to die prematurely than women and four times more likely to die from an avoidable cause. French men are not as realistic about their health as women are unfortunately. The French Health and Sanitary Department also pointed out that some differences in death rates were related to the impossibility for some of affording proper treatment – the Universal Cover only gives standard medical assistance and excludes teeth, eyesight and specialist care. People earning minimal incomes will thus be more exposed to some causes of death including diabetes and various types of cancer. They often lead unhealthy lifestyles because of the lack of available income.

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Another modern cause of death in France is linked to weight. Being overweight and sedentary is often associated with, and an important factor in, diabetes and heart attacks. Unemployed people are more prone to those types of health issues. Again, the 15% of French people living in poverty who cannot afford fruit and vegetables will be more vulnerable categories. As French society evolves the causes of death do as well. Abundance in food and availability of alcohol and cigarettes can lead to excess and the French people are perfect examples of that.

Smoking Prevalence
One smoker out of two will die from a tobacco-related disease, as will 5,000 passive smokers in France. These 2006 statistics from the French Health Department are not encouraging. Before the age of 14-years, tobacco consumption is quite rare in France, but demand increases significantly after that. More than 41% of 17-year-olds admit to having smoked cigarettes in the past 30 days in 2007. Despite an important fall of 5% in tobacco consumption between 2003 and 2005, 34% of men and 32% of women still consider themselves to be regular smokers. Considering the average age when a French person smokes their first cigarette is approximately 13-years-old, there is no wonder that the most important number of deaths is directly linked to this behaviour. France is actually in an average situation compared to many European countries. France is one of the only countries in Europe where the number of active smokers has actually gone down, from 44% in 1999 to 33% in 2003. The average for CLIFE countries is, for once, higher. With 1.7% budget dedicated to tobacco and other smoking accessories, the French are also under the European average of 2%. Impact Since the Evin law of 1991 regulating tobacco advertising, the price of cigarettes has gone up significantly every year and has contributed to an average annual drop in smoking rates of 3.4%. Most recently, a 10% increase in the price has led to a 30% decrease in the volumes purchased. However, a consequence of this price rise was the increase in trans-border purchases in countries such as Spain and Belgium. It is very common for a French person going there on holiday or just for the weekend to take orders from his smoker friends; 6% of cigarettes consumed in France are foreign. Tobacco consumption tends to diminish with age in France, especially after the age of 50. The most substantial number of smokers is concentrated between the ages of 18-35-years, with a dominant number of men. Women started to smoke more in the 1990s, and an increasing number of smoking goods were targeted at them. Silver cigarette cases as well as designer packets have been designed to attract female smokers. Lighters are also made in slimmer and smaller versions to adapt to small handbags. All these figures might be encouraging but they cannot hide the fact that cigarettes are responsible for 60,000 deaths a year and a third of cancer cases. Women are more and more affected by this phenomenon and the number of female tobacco-related deaths has increased by 7.2% every year on average since the mid-1980s. Poor prevention and awareness campaigns are to blame; smoking was associated with being trendy and cool for a long time.

Reported Aids Cases
There were 150,000 people living with the AIDS virus in France in 2007. This is an encouraging figure especially considering the number of annual reported cases fell 73.3% between 1995-2007. Figures still show a decrease in the number of cases but, worryingly, not as significant as in preceding years. The Department of Health announced in 2005 that the AIDS virus was still very present in France. Rising awareness and more responsible behaviour among young people are partly to thank for the progressive reduction in the epidemic. Still, 12% of the reported cases concerned young people between 15-24-years-old. A quarter of those people living with the AIDS virus were contaminated as a result of risky sexual behaviour, 17% of these cases concerned French heterosexuals and 24% French homosexuals. Only 2% of the reported cases concerned drug users and intravenous injections. The most striking statistic was produced by France 5, a

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leading French documentary channel: Northern African and Sub-Saharan immigrants in France represented more than 32% of the reported cases. An increasing number of immigrants coming to France come from countries with very high HIV rates and are responsible for a significant number of cases (more than 2,000 a year). France has attempted to fight this modern day epidemic by maintaining high levels of prevention and awareness: more than 4.9 million tests were carried out in 2004 alone. The French Education Ministry has also encouraged schools to develop awareness campaigns by involving all the teaching staff from nurses to teachers. Sexual education is compulsory from the age of 13 in France. Impact Despite many campaigns sponsored by the Department of Health (the latest promoting condoms on sale for €0.50 each in 2005), the AIDS virus is still very much an issue in France. It has been reported that only 36% of 15-50-year-olds buy condoms regularly because they are considered too expensive and difficult to get hold of. Chemists are not forced to sell condoms if it goes against their religious beliefs. Supermarkets are the only other alternative although vending machines in schools are also progressively stocking them. With many French young people forced to live with the threat of AIDS, it is surprising to see that only 94 million condoms were bought in France in 2005 versus 210 million in Germany and 240 million in Italy. There is still a lot of work to do to put a stop to the spread of the AIDS virus in France.

Drug Abuse
Drug consumption and abuse rose considerably in France over the period 1995-2007. It used to be considered a problem involving only young, urban professionals with too much cash to spend. However, figures show that it now affects all segments of French society, young and old, rich and poor. The French State Department published a report in 2006 stating that cannabis was by far the most common drug used in France as it was involved in more than 80% of the cases of drug abuse. An estimated 3.3 million people use cannabis regularly with 10% of them being considered highly dependent. In France, cannabis is considered the drug for young people and it comes as no surprise that 16-year-old French men are the leading consumers in Europe. With the pressing need to conform to peer expectations coupled with the low price of this drug, very young people account for 30% of consumers, smoking cannabis up to several times a day. Cocaine consumption experienced an explosion in the number of reported users in the mid-2000s with 150,000 users identified. This drug is no longer considered the “cool drug” reserved exclusively for trendy people. More than 4% of French teenagers have experimented with this drug as it became widely available on city streets. The northern areas of Paris, especially, are concerned as “crack cocaine” appeared there with immigrant populations from the French Caribbean colonies. Heroine is also widely consumed by a similar number of people, usually during rave parties. More than two thirds of heroin users are also users of medical replacement drugs such as methadone and “subutex” which now also have their own parallel distribution channels independent from doctors and chemists. New drugs such as “Ecstasy” appeared on the French party circuit in the mid-2000s and have now attracted 150,000 users. Most of the users are concentrated in the major urban centres of Paris, Lyon and Marseille with an increasing number of young “clubbers”. The introduction of this drug caused new waves of hysteria. Impact Despite increasing severity in the laws punishing drug abuse, there has been no significant impact on drug consumption. Increased criminal sentences and awareness campaigns have not reduced the volume of drug consumption, which remains inelastic to price variables due to its addictive nature. An estimated €10 million has been spent on new campaigns mainly targeting nightclubs, bars and rave parties by the French government to no avail. The main concern in France is now the development of “multiple” drug consumption where people binge on drugs, alcohol, pills and cigarettes for long periods of time. There were over 130 reported cases of this type in

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2006. This behaviour has been encouraged by the appearance of new heroes such as Pete Doherty and various other music artists whom French teenagers look up to.

Health and Wellness
Health and wellness were never major concerns of the French until recently. Some believed that food was the answer to health issues while others did not even place them high on their list of preoccupations (social and financial success came first). French legislation on food supplements and vitamins was also extremely restrictive and the subject of many reservations. Only 40 plants were considered legal for food supplements in France versus more than 400 in Belgium, for example. If the UK is the leading consumer of these products in Europe, France was far behind mainly because of cultural reticence about these types of products, which were considered too artificial and too expensive anyway. Traditionally confined to high-income urban households and people with food allergies and very specific diet requirements, this market recently experienced an increase in popularity. Many food manufacturers now have alongside their traditional product range “healthy alternatives” which are fat-free and sugar-free. With stress and depression two of the modern epidemics in France, the population is now realising how important health is and how neglected this segment of the market has been. With 40% of the French population considered overweight, according to the WHO, the period 1995-2007 saw major changes in French behaviour. Anti-ageing creams, weight control solutions as well as food and health supplements have experienced an explosion in popularity with an increase of 32% in sales volumes. Fitness and well-being are now growing markets backed by governmental support. With 71% of French people admitting to practising a regular sport activity in 2005, progress has indeed been made especially amongst young people (90% of 15-24-year-olds are concerned). Recent advertisements and awareness campaigns have been particularly active in pointing out the benefits of a healthy lifestyle. Children especially are the major targets with legislation in 2006 introducing watershed times and compulsory labelling of food presented in advertisements. Hours dedicated to physical education in French schools are also under review and the two hours weekly (one of the lowest rates in Europe) are soon to be extended. More funding was to be given to schools in order to increase sports facility capacity as announced by the Government in 2004, with the aim of increasing the popularity of sporting clubs Impact The French National Statistic Institute published a report in 2006 concluding that levels of physical activity and health awareness increased with the amount of disposable income and education. Over 80% of people living in affluent neighbourhoods ran and played tennis regularly versus 59% of those in less favourable conditions. If France is the leader in terms prescription drug consumption in Europe, the country is still very much behind in the field of health foods and supplements, a market evaluated at a capacity of €1 billion in 2005. “An average French person consumes €15 worth of food supplements during the year when a German or English person will spend more than €451,” explains the French Syndicate of French Food Supplement manufacturers. Only 5% of French consumers consider food supplements and vitamins as beneficial and indispensable towards health versus 61% who favour physical activity. Food supplements are very much still a niche market in France. Poor distribution channels have confirmed this, with vitamins, food supplements and specific foods available only in chemists and health food stores. Chemists account for 66% of the distribution surface. Supermarkets are only allowed to sell the “main” products such as vitamin C and fluoride supplements for children. Interestingly enough, on-line buying is responsible for 10% of the sales with imports from the US and the Netherlands for products not available in France. With so many banned foods and plants in France, the range of choice is not impressive. French manufacturers tend to stick to “mainstream” substances that are now widely accepted by the French public, such as vitamin C for energy levels or B6 for hair and nail growth and eyesight. Magnesium and iron supplements in capsules are also becoming increasingly popular, especially for children. Fish oils have yet to take off in France and are sold nearly exclusively in specialised stores, probably because they are still associated with war time and food rationing, when each French child had to take a spoonful a day at school. Herbal drinks such as chamomile and peppermint tea are about the most exotic type one would find. This is not surprising considering that Red Bull, the famous energy drink, was banned in France until early 2008 because of animal-hormone content.

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Healthy diets have been acknowledged by 83% of the French people as extremely beneficial. French men, especially, are considered an important segment of the market because their appearance and their levels of fitness increasingly preoccupy them. Specific food supplements targeting male hair loss and weight stabilisation such as “Oenobiol Hommes” (the male version of an established product) and various other products stamped with the label “Pour Hommes” are becoming very popular with many men in France. Young urban professionals are also frequent visitors to fitness clubs. Still, these findings have not stopped health products and diet foods from being some of the most expensive food items on the French grocery shelf. Candia, a major French milk manufacturer, launched a new lactose-free alternative to milk in 2003 for the “30% French people suffering from milk intolerance” at €1.30 a litre versus €0.75 for the standard milk. Fat-free and sugar-free yoghurts, milk-based drinks and cheeses represented 17% of the total sales on this segment in 2004 but 26% of the total turnover. “These are foods of the future,” admitted E.Verdier, marketing executive at Candia. Rising awareness concerning fat and sugar content in foods encouraged by governmental plans increased sales in the health food department. Detailed food labelling was also made compulsory in 2004 and has contributed to making French buyers more responsible. Energy drinks, fat-free yoghurts and ready-made meals reduced in salt are edging out traditional products. With 5,000 new health products each year, this area of the market is expected to grow by 100% by 2012 with an average turnover of €2 billion a year. However, organic food is yet to experience the same popularity in France. French supermarkets are very cautious about the volumes of organic products they sell. Traditionally confined to one very small section of the supermarket, organic foods are still a rarity in French diets. A quarter of consumers admit they have tried organic food but do not buy it regularly as it is too expensive. With a progression in sales of 9.5% over 19952007, organic food is still a young trend in France. The main explanation for this is the popularity of French markets selling organic food directly from the producer and at less expensive prices: 50% of the distribution of organic produce comes from these markets with supermarkets a little way behind. Another explanation is that French people have always believed in the benefits of traditional French cooking with local produce. Almost half of the French population associates organic food with local produce anyway. French people are also slow to bring health foods into their diets and tend to replace an item at a time. More than half the consumers of food deemed healthy admit they tried it once before they started buying it regularly. However, for 85% of the French people, organic food is still associated with environmental concerns first and not with nutrition.
Table 95 Consumer Expenditure on Health Goods and Medical Services: 1995/2000/2002/2004/2006-2007

EUR billion 1995 Pharmaceuticals, medical appliances/ equipment Outpatient services Hospital services TOTAL
Source: Note:

2000 13.5

2002 14.4

2004 15.4

2006 16.6

2007 17.0

12.4

11.2 3.5 27.2

11.9 3.6 28.9

12.8 3.7 30.8

13.6 4.2 33.2

14.5 4.5 35.6

14.8 4.6 36.5

National statistical offices, OECD, Eurostat, Euromonitor International Constant value at 2007 prices

Table 96

Consumer Expenditure on Health Goods and Medical Services (% analysis and % growth): 1995/2000/2007/1995-2007/2000-2007

% analysis/% growth 1995 Pharmaceuticals, medical appliances/ equipment Outpatient services Hospital services 45.8 2000 46.5 2007 46.7 1995-2007 37.2 2000-2007 26.7

41.4 12.9

41.0 12.4

40.6 12.7

31.8 32.9

24.8 29.2

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TOTAL
Source: Note:

100.0

100.0

100.0

34.4

26.3

National statistical offices, OECD, Eurostat, Euromonitor International Constant value at 2007 prices

Table 97

Per Capita Expenditure on Health Goods and Medical Services: 1995/2000/2002/2004/2006-2007

US$ per capita 1995 Health goods and medical services Average of CLIFE countries
Source:

2000 396.01 283.64

2002 441.66 320.94

2004 647.15 424.53

2006 719.30 490.32

2007 814.72 554.35

526.84 277.74

National statistical offices, OECD, Eurostat, Euromonitor International

Table 98

Per Capita Expenditure on Health Goods and Medical Services (% growth): 19952007/2000-2007

% growth 1995-2007 Health Goods and Medical Services Average of CLIFE countries
Source:

2000-2007 105.73 95.44

54.64 99.59

National statistical offices, OECD, Eurostat, Euromonitor International

Table 99 % of total GDP

Share of Total Health Expenditure in GDP: 1995/2000/2002/2004/2006

1995 Share of total health expenditure in GDP (% of total GDP) Average of CLIFE countries
Source:

2000 10.4

2002 10.8

2004 11.0

2006 11.2

10.7

6.2

6.4

6.7

6.8

6.9

National statistical offices, OECD, Eurostat, Euromonitor International

Table 100 years

Healthy Life Expectancy at Birth: 1995/2000/2002/2004/2006

1995 Healthy life expectancy at birth Average of CLIFE countries
Source:

2000 61.7 64.0

2002 62.1 62.5

2004 62.6 63.4

2006 62.7 64.3

61.2 63.5

National statistical offices, OECD, Eurostat, Euromonitor International

Table 101

Healthy Life Expectancy at Birth (actual growth): 1995-2006/2000-2006

Percentage points 1995-2006 Healthy life expectancy at birth (years) Average of CLIFE countries 1.53 0.79 2000-2006 1.08 0.32

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Source:

National statistics, OECD, Eurostat, Euromonitor International

Table 102 number

Healthcare Workers: 1995/2000/2002/2004/2006-2007

1995 Dentists Doctors Midwives Nurses
Source:

2000 40,539 194,000 14,353 397,279

2002 40,481 198,700 15,205 425,981

2004 40,904 203,487 16,135 453,659

2006 41,265 208,465 17,146 484,216

2007 41,484 210,862 17,659 500,070

39,714 186,700 11,422 353,303

National statistical offices, OECD, Eurostat, Euromonitor International

Table 103 % change

Healthcare Workers (% growth): 1995-2007/2000-2007

1995-2007 Dentists Doctors Midwives Nurses
Source: National Statistical Office, OECD, Euromonitor International

2000-2007 2.33 8.69 23.03 25.87

4.46 12.94 54.61 41.54

Table 104

Major Causes of Death by Disease: 1995/2000/2002/2004/2006-2007

per 100,000 inhabitants 1995 Certain infectious and parasitic diseases Malignant neoplasms Diabetes mellitus Mental and behavioural disorders Diseases of circulatory system Diseases of respiratory system Diseases of digestive system Certain conditions originating in the perinatal period Congenital malformations, deformations and chromosomal abnormalities
Source:

2000 18.0 243.9 18.4 29.4 274.9 60.5 40.3 2.4

2002 17.9 248.8 19.6 30.5 270.0 57.4 41.1 2.8

2004 19.1 247.9 20.9 32.7 270.5 60.9 41.9 2.6

2006 19.6 247.4 21.5 33.5 269.5 62.6 42.1 2.5

2007 19.7 247.2 21.6 33.7 269.2 62.9 42.2 2.5

21.6 245.2 11.1 22.8 295.2 59.0 45.0 2.2

2.7

2.8

2.5

2.7

2.7

2.7

OECD, WHO, Euromonitor International

Table 105 % change

Major Causes of Death by Disease (% growth): 1995-2007/2000-2007

1995-2007 Certain infectious and parasitic diseases Malignant neoplasms Diabetes mellitus -8.37 0.81 94.78

2000-2007 9.58 1.37 17.55

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Mental and behavioural disorders Diseases of circulatory system Diseases of respiratory system Diseases of digestive system Certain conditions originating in the perinatal period Congenital malformations, deformations and chromosomal abnormalities
Source: OECD, WHO, Euromonitor International

47.72 -8.83 6.69 -6.32 11.22 0.23

14.41 -2.10 3.97 4.62 2.11 -4.80

Table 106

Obese Population: 1995/2000/2002/2004/2006-2007

% of population aged 15+ 1995 Obese population (BMI 30kg/sq m or more) Average of CLIFE countries
Source: Note:

2000 9.0 13.1

2002 9.4 13.6

2004 9.5 14.4

2006 9.8 15.2

2007 10.0 15.5

7.0 11.5

OECD, International obesity taskforce, Euromonitor International Data are for population aged over 15 years

Table 107

Obese Population (actual growth): 1995-2007/2000-2007

Percentage points 1995-2007 Obese population (BMI 30kg/sq m or more) (% of population aged 15+) Average of CLIFE countries
Source: Note: OECD, International obesity taskforce, Euromonitor International Data are for population aged over 15 years

2000-2007 0.96 2.42

2.96 4.05

Table 108

Smoking Prevalence: 1995/2000/2002/2004/2006-2007

% of population aged 15+ 1995 Smoking prevalence in population aged 15+ (% of population aged 15+) Average of CLIFE countries
Source: Euromonitor International

2000 27.0

2002 25.4

2004 25.4

2006 25.4

2007 25.4

27.6

30.6

30.7

30.7

30.7

30.9

31.0

Table 109

Smoking Prevalence (actual growth): 1995-2007/2000-2007

Percentage points 1995-2007 Smoking prevalence in population aged 15+ (% of population aged 15+) Average of CLIFE countries
Source: Euromonitor International

2000-2007 -1.62 0.21

-2.22 0.37

Table 110

Reported AIDS Cases: 1995/2000/2002/2004/2006-2007

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Number 1995 AIDS incidence
Source: UNAIDS, WHO

2000 1,716

2002 1,629

2004 663

2006 1,290

2007 1,416

5,306

Table 111 % change

Reported AIDS Cases (% growth): 1995-2007/2000-2007

1995-2007 AIDS incidence
Source: UNAIDS, WHO

2000-2007 -17.48

-73.31

TRANSPORT
Spending on Transport
France tends to spend on average three times more on transport than other CLIFE countries. Consumer expenditure on transport rose 28.5% over the 1995-200 period and is predicted to continue this way with rising fuel prices and increasing commuting distances. Although many French people live within a reasonable distance from their job, 58% use their car to go to work, followed by 34% who use public transport. The French do not rely very much on public transport such as buses or subways. Nonetheless, public transport networks are always being extended at great cost in many French areas in order to meet the geographic growth of major urban locations. French drivers were forced to review their monthly car budget, which increased from €146 in 2005 to €185 in 2008 (according to a CSA/ Le Parisien survey) due to rising fuel and toll costs. Impact Rising commuting distances mean that French workers spend an average two hours a day going to work and getting back. Relocating to a cheaper house further from work also means spending more on transport; more than 45% of car, train and bus usage is associated with getting to work. Public transport is used for longer trips mainly as people prefer walking distances under a mile. Also, 60% of distances of more than one mile are covered by car. Increasing distances also mean than more than a third of French households actually own a second car. Soaring petrol costs have not encouraged the use of alternative means of transport. If anything, public transport costs rose at the same time and became even more congested as more came to live in the city in the 1990s. Public infrastructures were built for the transport volumes of the 1980s. The use of public transport is always encouraged by Councils eager to reduce pollution and congestion levels as well as, strangely enough, the degradation of buildings. Many councils sponsor public transport cards for students and pensioners as well as frequent travellers. As a result people can save up to 35% on transport, which means they have more disposable income for “things that matter” (this was a slogan in 2003). The cost of operating a personal transport system rose over 30% in 10 years. A study conducted by a French magazine in 2006 showed that women are responsible for more than two thirds of non-work related driving. They spent on average 33% more money on petrol and car cleaning and grooming than did their male counterparts. They use the car to go shopping or to attend to personal affairs such as taking children to football practice or piano lessons. Specific insurance policies have been introduced to reward careful female drivers. Women are frequently portrayed in cars advertisements as the member of the household who most influences the choice of car. There are cars that have been deemed “female” cars such as the Ford Ka and Renault Clios because they have feminine interiors and are easy to drive.

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Air Transport
This is the most expensive section of the transport market. Air travel experienced an increase of 79% in consumer expenditure over the 1995-2007 period which was mainly due to an increase in fare prices, not in popularity. Even before planes were considered one of the most important sources of contemporary pollution, French people were never attracted to flying, at least for domestic travel. It is indeed more expensive to fly from Toulouse to Rennes on Air France (€150 return) than it is to get to London from Bordeaux in a low cost flight (€90 return). The French transport infrastructure offers many cheaper and just as efficient alternatives to air transport for domestic travel. Flying is preferred if there is no other option available, usually for international travel. There are only two big international airports and both are located in Paris. CDG and Orly together saw about 86 million passengers in 2007. Other cities’ airports are medium-sized and even small as only 1.7 million travellers go through Lyon airport, for example, and 6 million through Marseilles airport annually. Toulouse provides the perfect example of French airports being usually located in the midst of industrial zones dedicated to research and commercial activity. Impact Air transport is usually a second and even third choice when it comes to national travel as train prices are usually more competitive. Driving is also preferred by people not willing to spend too much money on transport although roads tolls increased 25% over the 2004-2007 period, according to the leading French information radio station Europe 1. Regional and national air transport is implicitly reserved for professionals and people in high-income segments of French society. Professionals who need to travel regularly around France usually prefer national air transport. This fact is confirmed by the fact that some of the planes for national flights are on average smaller than normal ones. International air travel is booked as a part of a holiday package in many cases. Air France started introducing a loyalty card system in the early 2000s for frequent national flyers in order to retain the few customers that flew regularly with the company. The points acquired on these flights could be converted into air miles or used in conjunction with other partners. The success of this system, copied from the one developed by the national rail service (SNCF), was minimal and only managed to retain a few people and did not attract new customers. Air France also introduced an e-booking system for customers. Low-cost and last-minute air travel has become increasingly popular in France since the end of the 1990s. Major websites and search engines usually provide comparisons of plane ticket prices, making it easy to shop around for the best deal. If anything, this system has encouraged people to use air transport because it can provide them with cheaper alternatives. Younger people especially are attracted to this travel option, and websites such as Kelkoo and LastMinute.com have seen a tremendous increase in their popularity.

Road Transport
At over 893,300 km, the French road infrastructure is one of the most developed in Europe. All roads join the heart of the French territory, Paris, to other major urban areas although road planners have neglected the centre of France as it is extremely difficult to access. Consumer expenditure on road transport rose 39.8% over the 1995-2007 period. Road transport was responsible for just over 3% of the budget devoted to transport in 2007. Buses are the main form of public road transport as most French people consider taxis a luxury service. Buses are used in 40% trips over a mile, just behind cars in popularity, as they are quite reliable and on time. There are many alternatives to buses in major cities so they are not the favourite form of transport. French buses suffer from their small capacity and are usually extremely congested at all times. They are, however, preferred in rural areas for organised school transport. Many cities do not have dedicated bus roads or lanes, or if they do, they are taken over by cars and taxis as there is little legal enforcement. Cars are the favoured form of transport for more than 60% of all trips professional or not. Car pooling is not very common in France and traffic is extremely congested on many roads.

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Impact In France, more than 20% of the population does not own a car, and 53% of Parisians do not own one. This “metropolitan” segment of the population is also the one that rely the most on public transport as infrastructure is often more developed in urban areas. A study conducted in France at the end of the 1990s showed that these people often only used public transport to get to work and usually stayed within their own area for leisure activities and going out. Metropolitan lifestyles are dictated by the necessities of work and people tend to choose their residences to be near public transport. They also spend more on food, clothing and housing than households outside the metropolitan area and also give more money to charity. Road transport is preferred in 60% of trips. The infrastructures make it easy to drive with regular stops on the motorway. The main drawback is the increasing presence of CCTV cameras on French motorways that are able to catch speeding motorists. If this has contributed to a decrease in the number of accidents, it has also been responsible for the emergence of a new product: CCTV spotters. Available on the internet, their legal status is uncertain as they are used to warn the driver of an approaching speed camera. However, road accidents are still the major cause of death for many people. Drink-driving, especially, is still the main cause of death amongst young people.

Rail Transport
There are 32,000km of publicly owned rail routes in France. The main shareholder is the state-owned SNCF. This system means that rail transport is one of the only public transport systems to have public service obligations and, therefore, can be compelled to provide a minimal service during strikes. Rail transport saw a 61.7% growth in consumer expenditure over the analysed period. Although many discount and loyalty cards are available, rail prices soared in the 1990s and 2000s. The quality of the service improved at the same time which encouraged more passengers. French fashion designer Christian Lacroix designed the furniture in some of the French High Speed Trains (TGV) in 2006. Rail transport is the most popular form of long-distance national transport because it is considered by most French people as efficient, reliable and most importantly, very comfortable. Local transport, on the other hand, is covered by car. Impact The French rail system is one of the most developed in the world, notably since the introduction of the French High Speed Train (TGV). Nearly all trips going through Paris are connected with this relatively new system. Indeed, the rest of the infrastructure is characterised by older and slower trains. The western and eastern regions especially suffer from a lack of quick and modern transport. The introduction of the “TGV de l’Est” from Paris to Marseille in 2006 was an effort to encourage more travel to the eastern regions and central France through the development of new train stations and commercial areas around them. French stations are usually located in poor areas of the city. This encouraged the refurbishment of major stations around the country in order to attract quality hotels and cafés within walking distance of them. The arrival of the Eurostar in Paris especially saw the renovation of some areas around the Gare du Nord in an attempt to attract tourists. But French people still think of train stations as areas where beggars and drug dealers hang out and, as a consequence, spend as little time as possible there. Still, the French rail system is the pride and joy of French people and is relatively cheap, clean and nearly always on time. French trains are a good way to cover long distances in France. All categories of people take the train as shown by the wide variety of discount cards available to people like pensioners, young people, big families and young professionals. Discounts vary from 30% to 75% on most journeys and are widely used, and 45% of the French population has a rail loyalty card. The most recent innovation in rail transport is internet booking. The SNCF launched its website in 2004, which attracted more customers and reduced congestion in stations as people did not have to go there to book their ticket anymore. Added loyalty points can be gained through this system, which has become the leading booking system used by young people and students.

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Transport Infrastructure
France is lucky to have a good and near-complete transport infrastructure. All major cities are linked in a network of roads and rails, sometimes even river canals. With Paris at the heart of this network, it usually takes eight hours to cross France from north to south. Crossing the country from east to west is another story as the French Massif Central, the central region, is very difficult to access. Indeed, few roads and rails actually go through the mountains. This means the region has acquired the name of the “French Desert”. The main criticism directed at the French transport infrastructure is the cost of the road system. Tollbooths are frequent on French roads because they are used to finance road construction and renovation. Although loyalty systems reward the most frequent drivers (usually truck drivers), prices still remain extremely high. This, added to fuel costs, has added extra pressure on household incomes. Although there is no such thing as a congestion charge in major French cities yet, several councils have talked about introducing them. Impact Over €12.7 billion were dedicated to public transport infrastructure in 2004 in an attempt to reduce private transport use in France. With 25 million cars on French roads, two major problems have emerged. First, congestion and saturation of road infrastructure are occurring in cities which up until now were relatively free of those problems. French peak traffic hours occur between 08.00hrs and 08.30hrs in the morning and between 16.00hrs and 21.00hrs. With cars used in more than 55% of trips in cities and more than 75% in less urban areas, there are too many cars on French roads. This leads to a second problem: pollution. French councils started fining polluting vehicles in 2003, or introduced car-free days (usually on Sundays). Environmentally-friendly hybrid and electric cars are being welcomed in many cities although they remain too expensive for many French households who spend an average of €21,707 on a car and prefer a French make. French car manufacturers have not yet developed a sustainable hybrid car at an affordable price. These modern problems have triggered a recent trend towards tram transport. With only a few tram networks in France, located mainly in eastern France, many cities started constructing tram networks to reduce the number of cars on roads. Bordeaux introduced the first silent and environmentally-friendly tram in 2004, followed a few years later by cities like Nice and Marseille. Trams have enabled cities to extend their transport infrastructure further out into the suburbs and reach more remote areas. This in turn has contributed to an economic boom for isolated parts of cities like Bordeaux and Nantes with some parts of the city seeing the opening of new shops and cafés alongside the tracks. Bicycle travel is also gaining in importance with public bikes being made available free of charge. Many councils have invested in bicycle tracks alongside tram tracks.
Table 112 EUR billion 1995 Purchase of cars, motorcycles and other vehicles Operation of personal transport equipment Transport services Rail travel Buses, coaches and taxis Air travel Other travel TOTAL
Source: Note:

Consumer Expenditure on Transport: 1995/2000/2002/2004/2006-2007

2000 39.4

2002 40.1

2004 38.9

2006 40.4

2007 41.1

35.8

70.2 13.5 2.7 3.5 4.0 3.4 119.5

81.2 17.4 3.6 4.0 5.7 4.1 137.9

80.6 18.3 3.9 4.2 6.0 4.2 139.1

84.2 19.4 4.0 4.5 6.4 4.5 142.5

89.1 20.6 4.3 4.8 6.8 4.7 150.1

91.3 21.2 4.4 4.9 7.1 4.8 153.6

National statistical offices, OECD, Eurostat, Euromonitor International Constant value at 2007 prices

Table 113

Consumer Expenditure on Transport (% analysis and % growth): 1995/2000/2007/19952007/2000-2007

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% analysis/% growth 1995 Purchase of cars, motorcycles and other vehicles Operation of personal transport equipment Transport services Rail travel Buses, coaches and taxis Air travel Other travel TOTAL
Source: Note:

2000 28.5

2007 26.8

1995-2007 14.9

2000-2007 4.5

29.9

58.7 11.3 2.3 2.9 3.3 2.8 100.0

58.8 12.6 2.6 2.9 4.2 2.9 100.0

59.4 13.8 2.9 3.2 4.6 3.1 100.0

30.0 56.3 61.7 39.8 79.0 42.6 28.5

12.5 21.7 21.5 22.3 23.6 18.4 11.4

National statistical offices, OECD, Eurostat, Euromonitor International Constant value at 2007 prices

Table 114 US$ per capita

Per Capita Expenditure on Transport: 1995/2000/2002/2004/2006-2007

1995 Transport Average of CLIFE countries
Source:

2000 1,889.10 702.56

2002 1,993.25 722.01

2004 2,781.13 975.39

2006 3,035.10 1,121.52

2007 3,428.05 1,279.18

2,318.78 708.50

National statistical offices, OECD, Eurostat, Euromonitor International

Table 115 % growth

Per Capita Expenditure on Transport (% growth): 1995-2007/2000-2007

1995-2007 Transport Average of CLIFE countries
Source:

2000-2007 81.47 82.07

47.84 80.55

National statistical offices, OECD, Eurostat, Euromonitor International

COMMUNICATION
Spending on Communications
France is a country where access to telecommunications and telecommunications equipment occurred quite late compared to most European countries. When more than half the population of the UK or Germany were connected to various electronic networks, French households were only just discovering the joys of internet and satellite television in 2002. Indeed, no more than 37% of the French population had access to a computer in 2003, well behind other developed countries. 2005 was an important year for the French as the number of households connected to the internet passed the symbolic threshold of 50% with 27 million people having regular access to the internet. With €26 billion spent by French people on telecommunication services, consumer expenditure more than doubled in a decade in order for French people to reach the levels of their OECD counterparts. Internet infrastructures proceeded to develop in a spectacular way with France becoming one of the first countries to introduce a broadband system. France Telecom, operating under the name of Wanadoo, became the second broadband operator after China Telecom in 2007. Over 13.9% of French households were connected to high speed broadband in 2007 compared to 8.2% in 2004. This figure places France in the European lead ahead of countries such as the UK (13.5% of households) and Germany (10.2%) according to Eurostat. Dial-up was a short-lived system in France soon to be replaced by more modern infrastructure. The introduction of

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competition in the telecommunications sector in the late 1990s was important for the French incumbent, France Telecom, as it was forced to develop its competitiveness and lower its prices. Telecommunications innovations happened in quick succession in France, a country wanting to bridge the gap with its European counterparts. The proliferation of mobile phones is also a symbol of the new French digital age. With a cover rate of more than 90% of the French territory, French mobile operators experienced increasing success in the 2000s. Their strategy of providing tailored contracts from very early on has resulted in more than 55 million users at the end of 2007; more than 85% of French people owned a mobile and sometimes more than one. For the first time in ten years, the number of minutes talked over mobile phones (24 billion) overtook the figures found for landlines (23.9 billion). Students and young people are mainly responsible for this spectacular increase. Indeed, French operators have developed contracts specifically targeted at students living in rented accommodation and young people so parents can spend the minimal amounts possible and monitor their consumption. The mobile phone market had an estimated turnover of €5.46 billion in France in 2007 according to the Competition Commission. This figure is mainly due to the tremendous success of SMS communication: French people send an estimated 2.5 billion text messages every three months. Again, young people are the vectors of this increase as text-messaging has become their favourite way to communicate. Several French literature professors have expressed fears over the use of English-based text language and the dangers of repetitive strain injury associated with fast messaging. These protestations have been drowned in a sea of new 3G technologies in 2003 with the possibility of downloading music from one’s phone. With a third of French mobile users connected to 3G, France has one of the highest penetration rates in Europe although this technology still remains expensive. Parallel to this spectacular increase in access and use of telecommunications, expenditure on postal services also experienced a timid growth in popularity. One would expect that with the rise of e-mail communications and text messaging, postal services would no longer be as useful as before. However, consumer expenditure in this sector grew 22.1% over the 1995-2007 period. The European liberalisation of postal services initiated in the 1990s encouraged the increased competitiveness of the French postal sector, which diversified its offer into nonreserved sectors such as parcels and mobile phone contract provision. In response to growing rates of internet access, the French postal provider, the PTT, extended its network into remote rural areas in France. This strategy enabled the French post to be present in many parts of France where internet access was difficult. Impact France has now overtaken other CLIFE countries in what it spends on telecommunications and related services. Indeed, the end of the 1990s saw France successfully bridging the gap with other developed countries: the 20002007 period saw a 128.69% growth in per capita expenditure, 13% more than other CLIFE households. Although saturation rates are quite high for PC and telephone equipment in France, French households are very eager to have access to all new technologies. This boom was made possible by the liberalisation of the French postal and telecommunications sector which lowered prices in the market and made shopping around for the best deals possible. However, France is still very much dominated by the French incumbent, France Telecom, which sets the lead for the several other phone and internet providers present. Price collusion and cartel behaviour were renounced in 2006 by the five major French mobile phone operators. The French Telecommunications Authority (ART), France’s telecom regulatory body, increased surveillance of this sector where consumer protection is one of the highest on the market.

Television, Cable and Satellite
The first television programme was officially broadcast in France in 1949 although news bulletins were emitted in secret during World War II. The only channel available was publicly-owned by France Television, and was mainly used for information and live music programme to support the French morale after the War. Since then, five more “hertzien” (accessible by all) channels have been created, two of them privately owned (TF1 and M6) and the others the property of France Television (France2, France 3 and France 5). One channel, Canal+, property of media empire Vivendi Universal, is accessible only at some set intervals for people who do not pay a monthly subscription. Access to all French channels is regulated by the French Telecommunications Authority (ART), which sets the price of a TV licence in coordination with the French government. It costs around €120 a year to own a colour TV in France although some households can choose not to pay.

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French people spent an average of 3hrs24mins watching TV everyday in 2004, two minutes less than in 2003. The “French under-50 housewife”, the reference in terms of viewing statistics for broadcasters, was the only person spending more time watching TV with 3hrs39mins a day. Children aged 15-24-years-old actually spent seven minutes less than before with an average of two hours. Alternatives to passive TV watching, such as surfing the web or playing video games, are also responsible for children spending less time in front of the TV. French teenagers are very sensitive to what is happening in the UK and in America and therefore spend more time surfing on the web on websites such as YouTube, Facebook and Bebo. Long school hours also mean that children will spend less time in front of the TV because of the regular homework they have to do. Women also spent less time in front of the TV as increasing work hours mean they spend less time at home. The number of accessible channels on cable and satellite TV is also to blame for this decline with French people spending more time looking around for what to watch. There were 1.4 million households connected to cable TV in 2007, less than half the number in the UK. The arrival of cable TV in France in the late 1990s was not welcomed with much enthusiasm: a decade later, only 15% of French households are actually equipped with this system compared to 70% in the US. Satellite TV was more popular and experienced a growth rate of 12% in the 2000s, mainly because it was cheaper and simpler to use. Still, these new types of TV broadcasts have not attracted the interest of too many viewers as more than 60% of French people say they are happy with just watching the usual seven channels. A French particularity is the low development rate of pay-as-you-go TV. Indeed, while it is possible to choose themed TV packages (such as sport, documentary and film), time shifting is not very popular in French households. It has been available since early 2007 but very few households use it, preferring to watch a DVD instead. French people have never been very attracted to technology and take time getting used to new arrivals. French culture is profoundly protective of French TV programmes and quotas have been implemented to protect French culture on TV. Impact With more than 95% of French households possessing a colour TV, saturation rates in this sector have been high since the mid-1990s. However, there have been few innovations in this communication area apart from the introduction of cable and satellite TV. Prices for cable and satellite packages remain high (anywhere from €50 to €100), an example of the low interest French people have in diversified viewing. A recent attempt was made by French broadcasters to introduce the “TNT” network, where several new channels were made available on top of the normal seven at no extra charge. These channels were only available in high definition. This system was created in order to demonstrate the benefits of high definition TV to French households so that they would potentially choose to switch to cable or satellite later on. This initiative has been quite popular, appealing to the popularity of bargains with most French people. Although the quality of the programmes is considered average, more than a quarter of French households now own a TNT box. Many French people, especially older people, still live under the impression that television programmes should be sensational and spectacular. Some TV personalities from the 1950s and 1960s are still very much present on French TV presenting the same programmes. Saturday nights are the occasion for live music and entertainment programmes on every channel as series are not very popular in France.

Printed Media
With the development of internet technologies and communications, the French printed press is in great danger and has been for quite some time. Only the niche press is holding its head above the water, while 85% of French newspapers are on the verge of bankruptcy. Specialised titles such as La Croix (religious), Les Echos (business) and L’Equipe (sports) are some of few that have managed to survive the decline of the French press. French papers are marked by low dependency on advertisements, a habit that has not helped as papers increasingly face bankruptcy. Newspaper advertisements account for 17.4% of the total market in France, a figure that rises to 24% in Spain and even 32% in Germany. French culture explains this low figure: the French view newspapers exclusively as channels for information. French readers see no place for commercial activity in them. Leftist national newspapers such as Le Monde and L’Humanité were considered to have sold “their souls to the devil” when they opened up to advertisement providers. As a result, their sales have dropped between 12%-16% since 2004. Over the 1995-2005 period, the number of readers for the 10 biggest French dailies fell

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by 5%, which had disastrous financial consequences. The most popular French newspaper, France-Soir, saw a spectacular 71.2% decrease in its sales over the same period. Only a third of French people over 15-years-old admit to reading a newspaper regularly with a slightly larger proportion of men and older people, according to AgoraVox.com, a leading website on current affairs. However, the regional press and magazines are still very much present and are attracting new readers. Local papers attract a readership of 74% of the French people, according to the French Press Industry, because they feel that the information displayed is more representative of their lives. Indeed, one of the reasons for the decline in readership of national newspapers is that most French people feel disconnected from the news presented because it mainly focuses on Paris. This also explains the popularity of magazines. French magazines are increasingly competing against their Anglo-Saxon rivals, such as Vogue and Glamour. The number one favourite still remains the French magazine Elle because it is specially targeted at the lives and culture of French women. Because they are themed, magazines attract specific categories of people. The French are the leading readers of magazines in the world with 460 brought for every 1,000 people. Slightly more people read magazines in 2004 (+0.3%), with sports magazines, “people” magazines and decoration magazines in the lead. This time, more women are magazine readers. The French read an average of 7.1 magazines a year in 2004. Impact French people are quite sensitive to the price of newspapers, which remains higher in France than in any other European country. With an average price between €1.20 and €1.60, French daily newspapers are expensive. This has encouraged 74% of French people to read the press on the internet in PDF format. With over three quarters of French households connected to the internet, accessing live information sites and programmes is extremely easy. The decline of the French printed press has led to the appearance of media giants such as Lagardère Groupe, which now owns several French national newspapers as well as magazines. Many French politicians have expressed fears over the decline in quality of some newspapers and the increasing unification of the views expressed. France has traditionally been a country with marked differences between the leftist and rightist papers.

Telephones
In the 1990s, many French people used to think that mobile phone services were too expensive. Recent falls in rates have been accompanied by a spectacular increase in the number of users, which grew to 52 million in 2007, a 3,866.4% increase from 1995 (1.3 million users). The mobile phone industry made profits of €8.4 billion in 2005, a figure larger than France’s national defence budget. With over 82.2% of the French population “mobile”, several billion text messages are sent every year particularly from young people who find this system very convenient because of its cheapness. Texting has replaced traditional forms of communication in France. Indeed, the number of national phone calls fell 13.8% over 2000-2006. According to the French Mobile Providers Association (AFOM), French people made the most mobile phone calls with 147 minutes a month in 2005, against 50 minutes for the German consumer, 89 minutes in the UK and 115 minutes in Spain. Pre-paid mobile telephones suffered from a decrease in popularity as tariffs and contracts are so cheap anyway. They are mainly targeted towards teenagers and their worried parents who want to monitor telephone usage. Phones bought with a pre-paid contract are so expensive that most people prefer to take advantage of the lower prices associated with other monthly contracts. Some providers actually have packages for consumers as low as €5 (usually geared towards pensioners, older people and other minimal mobile phone users). Fixed telephone lines, in parallel, have suffered from the popularity of the mobile generation and witnessed a 1.2% fall over the 2000-2006 period. This is surprising considering the popularity of bundle systems where phone, internet access and TV are available for a set price. Market incumbent France Telecom/Wanadoo resisted the liberalisation of the telecommunication market for a long time and only granted access to its infrastructures in late 2006. French households were forced to use this provider to open telephone lines and only then were they allowed to switch operators. This gave France Telecom enough time to strengthen its leading position in the market – nearly 32% of French households choose the company now for their phone and internet lines. This also gave the firm the time to create Orange, now leader in mobile phone networks. Since then, according to the French Telecommunications Authority, French providers have been attempting to increase their competitiveness by providing very cheap packages (€25 a month for the basic bundle) in order to counter the incumbent’s

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leading position. This led to collusive behaviours between 2003 and 2006. The French Competition Commission has since regulated this market more stringently. Impact France is one of the only countries in Europe where, since 2007, international calls have been free with certain providers. This innovation was proposed to open new markets that the French incumbent could not access, fixed telephony having been liberalised in late 2006. Most countries are covered by this system as long as calls last under an hour. This has particularly benefited the 8.1% of the French population that have emigrated from northern and central Africa. With the average mobile phone contract being renegotiated on average every 18 months, there is room for the introduction of innovation in the French mobile phone market. Statistics provided by the ENST (the French National School of Telecommunication Engineers) show that 20% of mobile phone users have switched operators and contracts regularly since 2000. This means that innovation must be kept up for customers to remain loyal. Technologies such as GPRS, WiFi, 3G and Edge providing on-line downloading, music and messaging have now been integrated into most new mobile phones although some users admit to not knowing how they work. Added-value services are now at the crux of competition in the mobile phone market in France. Flashiness and the availability of many services are now very important in French mobile phones as shown by the recent success of the iPhone in 2008.

Computers and Internet
According to leading French survey provider Mediametrie, around 10.5 million French households are equipped with broadband access, with almost three quarters of households already connected to the internet. This figure progressed 26% over the 2006-2007 period extending broadband to 43% of all French households, a figure close to the European average of 42% of all households in 2006 according to Eurostat. Although France was one of the last countries to develop a telecommunications infrastructure, it has bridged the gap that used to separate it from countries such as the UK and Italy, which were leaders in terms of the number of internet connections. French broadband appeared as early as 1999 but was only officially developed in 2006. French broadband is relatively expensive despite its popularity. Access to an Asymmetric Digital Subscriber Line (ADSL) cost in 2004, on average, €14.90 (US$20). This price has not changed much since. According to a 2006 OECD study, the cheapest entry-level broadband in Ireland cost US$18.18 per month, compared with US$10.79 in Sweden, US$15.93 in the US and US$17.63 in Italy. Only 10.4% of French households subscribe to the internet exclusively while 57.8% of households prefer to get a bundle at a cheaper price. Impressively, 61.8% of French households owned a computer in 2007, a tremendous increase of 128.7% over the analysed period. This figure is relatively low compared to the European average despite falling prices and rising disposable income. Indeed, an important proportion of the French population has access to the internet at their workplace. As a result, they prefer checking e-mail or reserving train tickets there as they will not have to pay for the connection. A survey published by Comscore in 2007 revealed that 79% of French internet users watch on-line videos on websites such as YouTube, DailyMotion or Google, at a rate of 64 videos per month. According to another survey published by Mediametrie in 2006, the most visited website in France was SkyRock, a leading radio website, followed by sports sites, information sites and property sites, in that order. The French are very practical about their internet usage. Older people tend to use the internet in the evening when their children have gone to bed, and go directly to banking and public administration websites. On-line purchases come next, although the French do not trust this system very much. Teenagers and younger people are the category with the most diverse and regular internet surfing habits. A study conducted by Universal McCann showed that on-line chat forums such as Bebo and MSN were the most popular with girls while boys preferred on-line games and video downloading. Both categories used the internet up to two hours a day and did not hesitate to turn the TV off and use the internet instead. The internet has not become a substitute communication or cultural medium for French young people, but it has created new needs such as permanent availability and communicability. The internet has influenced French life. Many public places, such as trains and cafés, are now equipped with wireless access. Schools are also increasingly subscribing to wireless connections.

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Impact The general feeling in France is that infrastructures and the availability of internet services have advanced more quickly than French attitudes. Indeed, many older people feel “out-dated” by new technologies. With most jobs requiring minimum levels of computer literacy, the number of people failing to meet these standard requirements has risen. The number of courses available for people to improve computer literacy and understanding has also increased impressively in most companies. The French government introduced a scheme in 2006 to help students with PC purchases. Interest-free loans were indeed granted to all students who asked for them in order to buy computer equipment. This initiative helped several tens of thousands of students improve their computer skills. Strangely enough, although the internet has spread to all areas from administrative communication to on-line banking, shopping and downloading, schools still remain very reticent to introduce too many computers. Most of the essays and work submitted are still hand-written and courses are not available on the internet in many places. .

E-commerce
Considering France’s late arrival to internet services and infrastructure, it comes as somewhat of a surprise that 63% of French internet users admit to having bought second-hand goods over the internet in the last twelve months on websites such as e-Bay. Overall, according to TNS/Sofres statistics for 2007, 37.2% of French internet users (19.5 million people) are regular e-commerce shoppers. This figure rose 21% from the previous year. The advantages identified by most users are ease and lower prices. With sales amounting to €16 billion in 2007 (a 38% increase from 2006), the average amount spent for each purchase is €91, a higher figure than for other sales channels. These results mainly involve established stores such as LaRedoute and 3Suisses (clothing), and Pixmania and MistergoodDeal (electrical goods).The French Federation of Online Shopping (FEVAD) estimated that there were at least 30,000 active on-line shopping websites in France in 2007. Predictions for 2010 are for €30 billion in turnover in this particular sector. Mediametrie Director, B. Cassaigne explained that the profile of the typical French on-line shopper has changed slightly over time. “An ageing of the French cyber-buyer has occurred. Before, on-line purchases were mainly made by 25-35-year-olds. Now, the 35+ category is responsible for 50% of sales, the 50+ category for 23.4%.” The main reason the French shop on-line is not the price, surprisingly, but the choice available. Impact In a survey published by Opinionway, only 3% of French users said they trusted the internet as a safe sales platform. If on-line shopping is progressively becoming a habit for more and more French people, there is still general distrust of this system. Indeed, the most popular on-line shopping websites are highly established ones such as Amazon, SNCF and Fnac (for music and books).

M-commerce
According to Journal du Net, a leading French on-line journal on internet trends, m-commerce “is late in revealing its full potential, let alone in actually realising it.” M-commerce is used mostly for information on traffic (Mappy), the weather and horse races. However, cultural products also seem to have an established position with websites such as Alapage and C-Discount revealing they have the same turnover over with this platform as with on-line shopping. Most other shops, however, are not interested in this platform. The main reason is that France Telecom is the leading provider of the m-commerce platform through its daughter company Orange and some of its other established brands such as Mappy and Alapage. Other companies find it very difficult to compete with this.

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However, this market has been estimated by the European Institute for Telecoms (Idate) as having the potential for €17 billion by 2009. The technology in this area is only in its early stages, so it is hard to tell how realistic these predictions are. French phones are not sophisticated enough to enable m-commerce access. Impact French mobile phone operators are wary of m-commerce because they have no control over the goods and services provided over this channel or over the payments. They prefer to encourage the use of m-commerce for marketing and promotions for the moment, like the invitations sent out by Armani for the launch of its new fragrance to 500 random mobiles in 2006.
Table 116 EUR billion 1995 Postal services Telecommunications equipment Telecommunications services TOTAL
Source: Note:

Consumer Expenditure on Communications: 1995/2000/2002/2004/2006-2007

2000 1.8 2.4 17.2 21.4

2002 1.9 1.7 21.5 25.1

2004 1.9 1.9 23.0 26.8

2006 2.0 1.9 24.3 28.2

2007 2.0 1.9 26.0 30.0

1.7 1.4 12.2 15.3

National statistical offices, OECD, Eurostat, Euromonitor International Constant value at 2007 prices

Table 117

Consumer Expenditure on Communications (% analysis and % growth): 1995/2000/2007/1995-2007/2000-2007

% analysis/% growth 1995 Postal services Telecommunications equipment Telecommunications services TOTAL
Source: Note:

2000 8.5 11.0 80.5 100.0

2007 6.7 6.5 86.8 100.0

1995-2007 22.1 39.7 112.6 96.1

2000-2007 11.7 -17.4 51.3 40.3

10.8 9.1 80.1 100.0

National statistical offices, OECD, Eurostat, Euromonitor International Constant value at 2007 prices

Table 118 US$ per capita

Per Capita Expenditure on Communications: 1995/2000/2002/2004/2006-2007

1995 Communications Average of CLIFE countries
Source:

2000 292.45 152.80

2002 359.08 175.51

2004 522.88 240.76

2006 570.46 278.63

2007 668.80 328.56

296.38 118.53

National statistical offices, OECD, Eurostat, Euromonitor International

Table 119 % growth

Per Capita Expenditure on Communications (% growth) 1995-2007/2000-2007:

1995-2007 Communications Average of CLIFE countries
Source:

2000-2007 128.69 115.03

125.66 177.19

National statistical offices, OECD, Eurostat, Euromonitor International

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Table 120

Penetration of Televisions and Number of TV Channels: 1995/2000/2002/2004/2006-2007

per 100 households 1995 Black and white TV set (% of households) Colour TV set (% of households) National TV channels (number)
Source:

2000 3 95 7

2002 2 95 7

2004 2 95 7

2006 1 95 7

2007 1 95 7

8 93 7

National Statistical Office, European Audiovisual Observatory, Euromonitor International

Table 121 % change

Penetration of Televisions and Number of TV Channels (% growth): 1995-2007/2000-2007

1995-2007 Black and white TV set Colour TV set National TV channels
Source:

2000-2007 -69.63 0.90 0.00

-85.96 2.54 0.00

National Statistical Office, European Audiovisual Observatory, Euromonitor International

Table 122 % of households

Penetration of Cable and Satellite Television: 1995/2000/2002/2004/2006-2007

1995 Cable TV Satellite TV system
Source:

2000 12.50 17.87

2002 13.97 20.40

2004 14.39 24.40

2006 13.00 25.77

2007 12.56 26.30

7.06 4.61

Euromonitor International from trade sources and national statistics

Table 123 % change

Penetration of Cable and Satellite Television (% growth): 1995-2007/2000-2007

1995-2007 Cable TV Satellite TV system
Source:

2000-2007 0.51 47.18

78.01 470.84

Euromonitor International from trade sources and national statistics

Table 124

National and International Phone Calls, Telephone Lines in Use and Mobile Phone Users: 1995/2000/2002/2004/2006

As stated 1995 National telephone calls (million minutes) International outgoing telephone calls (million minutes) Total Telephone lines in use ('000) 104,400 2,850 2000 121,949 4,952 2002 112,456 4,703 2004 106,840 4,281 2006 105,092 4,145

107,250 32,400

126,901 33,987

117,159 34,124

111,121 33,703

109,237 33,569

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Mobile telephone subscribers ('000)
Source:

1,302

29,052

38,585

44,544

51,662

National Statistical Office, International Telecommunications Union, World Bank, Trade sources, Euromonitor International

Table 125

National and International Phone Calls, Telephone Lines in Use and Mobile Phone Users(% growth): 1995-2006/2000-2006

% change 1995-2006 National telephone calls International outgoing telephone calls TOTAL Telephone lines in use Mobile telephone subscribers
Source:

2000-2006 -13.82 -16.30 -13.92 -1.23 77.82

0.66 45.44 1.85 3.61 3,866.38

National Statistical Office, International Telecommunications Union, World Bank, Trade sources, Euromonitor International

Table 126 As stated

Household PC Penetration and Internet Usage: 2000/2002/2004/2006-2007

2000 Internet users ('000) ISDN subscribers ('000) PC penetration (% of households)
Source:

2002 18,057.0 1,900.0 36.6

2004 23,732.0 2,203.6 49.8

2006 30,100.0 2,475.1 58.5

2007 33,652.6 2,596.4 61.8

8,460.0 1,700.0 27.0

National Statistical Office, International Telecommunications Union, World Bank, Trade Sources, Jupiter Research, Euromonitor International

Table 127 % change

Household PC Penetration and Internet Usage (% growth): 2000-2007

2000-2007 Internet users ISDN subscribers PC penetration
Source:

297.78 52.73 128.87

National Statistical Office, International Telecommunications Union, World Bank, Trade source, Jupiter Research, Euromonitor International

LEISURE AND RECREATION
Spending on Leisure and Recreation
Consumer expenditure on leisure and recreation goods in France has risen constantly over the 1995-2007 period: indeed, the French spent on average 35.2% more on these goods in 2007 than they did a decade before. According to the French Statistic Institute (INSEE), French households dedicated approximately 11.2% of their income to leisure goods and services in 2006. There were slight differences in expenditure between singleparent families (9.9%) and couples without children (12.1%). These figures show that French households still spend more than twice as much than other CLIFE countries’ households on leisure goods, although these countries started to bridge the gap in the late-1990s with similar growth rates in this type of budget. French households spent €1,385 on leisure in 2007, according to the French Culture Ministry.

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In 2007, according to the INSEE, expenditure on shows, cinema tickets and travel was the main category of interest for French people as they spent 18.2% of their leisure budget on these goods (versus 17.9% in 2006). Dynamic categories were also games, toys and sporting equipment (9.7% of the leisure budget) as well as TV, photo and Hi-Fi (11.5% of the budget). This second category’s popularity is due to the increasing availability of flat-screen TVs and cheaper digital cameras. Categories that were not so popular included press, books and stationery which experienced a 0.2% drop from 2006 to 2007 with 13.4% of the leisure and recreation budget. Leisure and recreation goods and services are the fourth most important type of expenditure for French people after housing, transport and clothing. Leisure is not only important in terms of volumes purchased by French people but also in terms of quality and symbolism. The implementation of the 35-hour work week in 2002 was a re-evaluation for many French people and companies as they found that they had more time to spend with their families and outside of their work place. Average incomes were also high which meant that the quality of goods and services they bought rose at the same time. “This aspiration to leisure and me-time is a French specificity,” remarks Phoebe, consumption specialist at the French Centre for the Study and the Observation of Lifestyles. “It is a vision of taking pleasure in living more linked to the 1968 generation than to post-war materialism. It is a very modern pre-occupation too for French people as most of the twentieth century was marked by a dedication to work, especially among the working class”. Spending on leisure goods is different according to social class, sex and aspirations. A survey conducted by TNS/Sofres for the magazine Figaro in 2005 showed that French women tended to spend more on “collective” leisure time – that is, seeing friends, shopping, going to the cinema and partying. Only after would they consider buying books or listening to music. Women had a preference for cultural activities during their leisure time with new categories of expenditure appearing, like spas for example. Men remained quite classical and preferred spending their money on electronic equipment and films. Impact Recent legislative changes to average weekly work hours have brought back the former system whereby companies can choose their official work schedules. If the new Sarkozy government has attempted to introduce more flexibility in the work market, there are also foreseeable consequences of this 2008 innovation. More flexible working conditions mean less leisure time and, for many workers, increased job uncertainty. Until the end of the 1980s, two thirds of expenditure went to leisure goods and the rest to services. This situation changed in the 1990s up until 2003 as the value of goods in total leisure expenditure fell 58%, while that of services rose. Spending on entrance tickets and leisure services such as parks or cinemas progressed more quickly than spending on cultural equipment. The value of goods dropped 0.5% in 2003 while that of services rose 2.2% in the same period. Services now account for a bigger part of the overall leisure budget because they are more expensive. French spending on leisure goods is not characterised by a compulsive need to buy and have fun. The French are very selective about the recreation activities and goods they choose because they are marked by habit. A leading French sociologist argued in the 1980s that choices on how to spend leisure time, and what amounts to spend of it where, were dictated by personal preferences acquired during childhood. For example, baby-boomers will spend more on books and cultural goods whereas young people today will prefer video games even when as they get older.

Shopping for Leisure Goods
Shopping for leisure goods in France is very much dictated by habits and preferences as many consider them to be an exterior manifestation of their personality. Leisure for the French is an activity that happens in set period of time, although the budget spent will not be dictated by efficiency. Indeed, the French enjoy leisure time after work in the evening and during weekends. Holidays are also a major event for many French people as most of them do not work for some time in the summer. Ever since the proclamation that weekends be “dedicated to rest and leisure” back in 1939 by the socialist government then in power, the French have always associated leisure with weekends. An IPSOS survey in 2003 found that 81% of French people agreed on the fact that French society was dedicating more and more time to “entertainment”. Notably, executive professions and young people were the categories that spent the most time and money on leisure activities.

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Preferences in terms of leisure activities vary according to age in France. An IPSOS survey also found that older people (aged 50-64-years-old) preferred home-based leisure activities such as listening to music (67%) or watching films on TV or on a DVD (65%) while younger people (aged 15-25-years-old) liked going to the cinema and using the internet (70% of young people declare it a favourite activity versus only 43% overall). The increasing place given to new technologies varies according to age: only 66% of French people aged 55-64year-old know what a webcam is versus 98% of young people. Younger people will be more partial to technology-based activities than older people. The French Gaming Association profiled French people according to their leisure tastes in 2004. First came the “the film addicts” (65% of the French population) who were usually young (83% were less than 35-years-old) and urban (80%). Then followed the “the computer people” (49%) who were generally young (75%) but could live anywhere as internet coverage is good in France. Then were “the players” (40%) with a majority of men (60%) and young people (68% between the ages of 1525-years-old). Finally “the basics” (27%) were generally older (63% were more than 65-years-old). How do French people spend their free time then? Most of them admit to telephoning, watching TV or listening to music; 50% of them go to the cinema, 43% surf the net (mainly young people) and 40% watch films. Differences are marked between sexes and generations as well as between geographical locations. People living in rural areas will tend to have more outdoor activities such as walking or playing outside as there is more space. They will also be the ones to drive more to go to cinemas, bars and nightclubs. A report published by in 2004 found that most people living in a city will only buy a car if they need to drive to a place where there is a possible leisure activity. Impact The current uncertain economic and political climate has encouraged more and more people to spend time in their own homes, decorating them or buying new equipment for them. More French people also enjoy pampering themselves and looking after their health and appearance. Modern trends confirm an increasingly hedonistic character in French leisure activities. New activities such as spa and beauty treatments are attracting men and women alike. Many new beauty centres have opened in cities (such as Clarins, Yves Rocher) as well as in more rural locations (Caudalie is one of the most famous spas in France and is located in the countryside in western France). The new trend is the opening of very exclusive boutique locations favoured by stars. The most surprising trend is that of French men enjoying facials and waxing (14% of French men book regular waxing sessions). However, the main activity preferred by most French households over anything else is DIY (“bricolage”) projects. In 2006, 82% of French people enjoyed doing DIY versus 66% in 2000. The appeal of new technologies has actually encouraged many people to stay at home during their leisure time. New games such as Wii Sport developed by Nintendo became popular in France because people were able to play tennis or golf in the comfort of their own homes. On-line games such as Second Life and the Simms, which are played by many French people, also allow friends to meet while all remain in front of their respective computers at the same time.

Leisure Time
Ever since the 1970s, rising incomes have encouraged French people to spend more on leisure. Christian Bromberger, a French sociologist, divided French people into several categories according to their preferences in terms of leisure. The first ones were the “domestics” who liked cooking, gardening, and decorating their houses. The second ones were the “adventurers” who enjoyed sports and going out. The third category grouped people who liked entertainment such as shows and movies. The final group was composed of people who explored new things and liked discovering new ways of spending their free time. A lot of people who pursue leisure activities do so with a group of people who share a common passion: 43% of people over 14-years-old belong to a group. Sport associations claimed 18% of French people over 14-years-old and cultural and musical groups had 7% of French people. These figures are predicted to grow within the next few years. Some French sociologist are talking about a musical “boom” in France with 22% of French people learning how to play an instrument. However, according to the Culture Ministry, watching TV remains the favourite French activity with over 3h24mins spent in front of it every day. Then comes watching films with more than 62.5% of French people

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admitting they went to the cinema at least once a year and 33% at least once a month. With 5,366 cinemas in 2007, France had one of the densest cinema-populations in Europe. Reading follows, which was preferred mostly by women (67% versus 48% of men). Visiting museums or monuments also had similar results with a majority of women. Listening to music or to the radio attracted more men and, surprisingly, more unemployed people. Figures published by the Culture Ministry showed that poorer groups of the French population preferred activities that were already available to them (such as the TV, radio). Very few of them (18%) went to the museum, versus 65% of the more affluent households. This confirms that leisure in France is very much influenced by habits and preferences formed at a young age. French women do not have much time for leisure (2 hours 39 minutes a day if they worked full-time). Men, on the other hand, had on average more time for leisure (3 hours 28 minutes a day in 2000), but less diversified interests as they usually spent money on magazines and electronic gadgets as well as on sporting goods. Leisure time also increased with the drop in the time spent at work. More and more people tend to stay at home to enjoy their leisure activities as new technologies enable them to do so. Impact The increasing time spent at home has encouraged the development of arts and crafts and personal creativity. Activities such as drawing and sewing used to be implicitly reserved for children. Now, many French people, with a strong majority of women, enjoy creating their own jewellery, making pottery or exploring new forms of cooking. The kitchen and the dining-room table have become focal points in French households as more people move away from the television. Websites and books on these subjects are increasingly popular. The price of leisure goods and services increased considerably over the 1990s and the 2000s and, as a result, encouraged more families to recycle and re-use equipment they already had. Creating scrapbooks and photoalbums are the most popular activities at the moment because they encourage every member of the family to participate. But, over the years, leisure activities have increasingly become something that French people do on their own as they are so personal. This has also been encouraged by new technologies that make individuals more and more isolated. Many criticisms have been directed towards the internet and internet-related activities – mainly that they prevent children and young people, in particular, from meeting up and interacting with their friends in another location other than in their bedrooms or studies.

Culture
There are 1,200 museums in France attracting over 41 million visitors a year. The Louvre, the Musée d’Orsay and the Chateau de Versailles are the most popular and attract 16 million people by themselves. Most museums and historical monuments are located in and around Paris as the city has been the French economic and cultural capital since 508 AD. More than 2,400 monuments are open to the public in France and attract seven million visitors. The Eiffel Tower is the most visited monument with more than 6.7 million visitors. Over 42,000 buildings were “listed” by the French Ministry of Culture in 2007, the most recent addition to this category being the architectural legacy of the southern city of Bordeaux, protected by UNESCO in 2007. Most cities have at least one museum, usually dedicated to local culture and history. Over 30% of the French visit an exhibition or a monument at least once a year with more women than men (36% of women versus 30% of men). People in executive positions, higher income employees and students form the majority of visitors. Impact The French are extremely proud of their cultural heritage. Several cultural events a year celebrate the French heritage. “Les Journées du Patrimoine” in October involve days spent dedicated to museums and all entry tickets are free. “La Semaine du Gout” features traditional French food. Unsurprisingly, the country is the leading tourist destination in the world. More tourists than French people actually visit French monuments and museums as most of the French feel that these have simply become part of their environment. Paris is the cultural centre and heart of the French territory. Other cities suffer from this dominance. The French government has attempted to move some of France’s cultural events to less populated areas in order to revitalise some regions.

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Attitudes Towards Sport
Sports have become increasingly popular in France over the last decade. Consumer expenditure was around €30.4 billion in 2007, a 19% increase since the beginning of the decade, according to the French Ministry of Sports. French households spent €15.2 billion alone on sporting equipment and durable sporting goods in 2006. Around 34 million (74%) French people exercise and work out regularly, with preferences for cycling (18 million), swimming (14 million) and walking (12 million). Exercise rates vary seasonally, with 33% of people preferring to exercise in the summer against 9% in the winter. There were 16,524 million people registered in a sports club or association in 2007 including 35% of women. The most popular sports in France are football, tennis and judo and they attract the most interest from people wanting to join sporting clubs. Over 70% of women declare that they like exercising, which is below the French average. Of them, though, 25%exercise very regularly and 39% of them from time to time. Women prefer walking, especially those women over the age of 35, and swimming. Among younger women 15-24-years-old, 21% go to a fitness club and 17% go jogging. More than 80% of men, meanwhile, say they enjoy exercising. Impact The French have always been very active, and are more so since they became aware of rising obesity (40% of French people are overweight). Over 30% of French people believe that exercising is one of the keys to staying healthy. However, French people also like good food and very long meals which can sometimes clash with a regular sports ethic. Household spending on sporting equipment has also increased tremendously. Households spent 1.6% of their overall budget on sports in 2006 according to the French Statistic Institute. Although physical education is compulsory at school, there are only two hours a week dedicated to that subject in France, a poor figure compared to most European countries. There were 7,138 professional athletes and sports instructors in France in 2007, living proof that the country takes sports seriously.

Travel and Tourism
The tourism sector is one of the most important branches of the French economy. It accounted for a positive balance of €11.4 billion in 2006, a performance comparable to the food sector and superior to automotive industry figures. A third of these results were attributable to foreign tourists, with French people contributing to most of the overall dynamism. In 2006, 79 million people visited the French territory, which puts the country in first place in global tourist destinations. Government spending in this category was around 6.6% of the total GNP. French household budgets dedicated to tourism and travel are some of the lowest in Europe. On average, French households spent €1,934 on travel in 2007, a €72 fall from the year before. Economic and political uncertainties in France since the mid-2000s have not encouraged French people to travel. According to an Institut français d'opinion publique (IFOP) survey, 32% of French people did not go on holiday in the summer in 2005, and this figure is expected to rise to 42% at the end of the decade. Recent bad weather and lower disposable incomes have not been encouraging for the French. They traditionally choose to go on holiday once a year in July and August. Using this period for holiday has become the cultural norm in France. The country’s activity even slows down until mid-August when everyone goes back to work. Paris is a ghost town during those weeks. In order to save money, 63% of the French people stayed in France for their holidays in 2005. The French Tourism Ministry even admitted that French tourists spent on average €24.9billion on holidays abroad against €36.9 billion spent by foreign tourists in France. Most French people find that the French territorial and cultural diversity is sufficient for them to holiday in another part of the country. Popular French destinations for the French are the Mediterranean coast (especially for Parisians) and the Atlantic coast for more than 40% of the people according to the Tourism Ministry. Corsica is also a popular destination although recent summers have

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seen a 20%-30% drop in tourist activity there. Spain is also the most popular destination abroad as it is close by. French Caribbean territories also attract many French tourists as they like to feel at home when they travel. In 2007, 66% of French people stayed in Europe and 15.5% went to Africa. This last figure is mainly made up of north African immigrants returning to their country for the holiday. Most people go on holiday once a year and this has meant, in the past, a lot of preparation and research to find the ideal location. The average duration of a French holiday was 5.3 nights in 2007, a little longer when the French travelled abroad (8 nights). Hotels are not the accommodation of first choice – 67.1% of French people stay with family or in their own accommodation (9% of households) and 32.9% stay in rented accommodation with a preference for hotels and camping sites. Impact Longer work hours have meant that more and more French people choose last minute holiday arrangements. A 20.9% increase in package holidays was due less to French people carefully planning their holiday in order to spend less money than because they choose cheap, last-minute tickets to exotic destinations. Low-cost travel is also becoming more and more popular in France with students and people with low holiday budgets. In 2007, 70% of French people admitted to flying low-cost airlines and mainly on European flights. French people are wary of low-cost carriers because of the uncertainty and their cheap reputation. They prefer to use airlines when travelling abroad because of the dominant position of French company Air France. Low-cost travel is not as popular in France because higher French airport taxes discourage most companies. French travellers rely heavily on trains and cars for local and national transport because they are cheaper alternatives. Paradoxically, only the luxury segment of the French market experienced better performance because it attracted the 30% richest French households in 2007.
Table 128 EUR billion 1995 A-V/photographic/ information processing equipment Other major recreational durables Other recreational items Recreational and cultural services Newspapers, magazines, books and stationery Package holidays TOTAL
Source: Note:

Consumer Expenditure on Leisure and Recreation: 1995/2000/2002/2004/2006-2007

2000 20.0

2002 20.5

2004 21.2

2006 21.1

2007 21.6

15.5

2.2 15.4 23.0 13.6 1.0 70.6

2.8 17.0 29.4 13.2 1.1 83.4

3.0 18.4 31.8 13.6 1.1 88.3

3.1 19.1 33.4 13.2 1.1 91.2

3.3 19.9 34.7 13.2 1.2 93.4

3.4 20.3 35.7 13.2 1.2 95.4

National statistical offices, OECD, Eurostat, Euromonitor International Constant value at 2007 prices

Table 129

Consumer Expenditure on Leisure and Recreation (% analysis and % growth): 1995/2000/2007/1995-2007/2000-2007

% analysis/% growth 1995 A-V/photographic/ information processing equipment Other major recreational durables Other recreational items Recreational and cultural services 21.9 2000 23.9 2007 22.7 1995-2007 39.8 2000-2007 8.4

3.1 21.8 32.6

3.4 20.4 35.3

3.6 21.3 37.4

58.9 32.0 55.3

22.4 19.3 21.4

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Newspapers, magazines, books and stationery Package holidays TOTAL
Source: Note:

19.3 1.4 100.0

15.8 1.3 100.0

13.8 1.2 100.0

-3.1 20.9 35.2

0.0 11.4 14.4

National statistical offices, OECD, Eurostat, Euromonitor International Constant value at 2007 prices

Table 130 US$ per capita

Per Capita Expenditure on Leisure and Recreation: 1995/2000/2002/2004/2006-2007

1995 Leisure and recreation Average of CLIFE countries
Source:

2000 1,142.48 521.37

2002 1,266.36 544.65

2004 1,779.11 725.36

2006 1,889.03 814.42

2007 2,129.20 928.48

1,368.78 524.27

National statistical offices, OECD, Eurostat, Euromonitor International

Table 131 % growth

Per Capita Expenditure on Leisure and Recreation (% growth): 1995-2007/2000-2007

1995-2007 Leisure and recreation Average of CLIFE countries
Source:

2000-2007 86.37 78.09

55.55 77.10

National statistical offices, OECD, Eurostat, Euromonitor International

EDUCATION
Spending on Education
French Minister Jules Ferry established the contemporary French education system in 1880s. It has not undergone major reforms or changes since, apart from individual programmes themselves. Education is free for all French children from the ages of 6-16 years old. Because access to education is free, consumer expenditure on educational services has traditionally been lower than in other CLIFE countries, with an average €7.2 billion spent by French households in this sector in 2007. Although this figure has grown by half over the period of 1995-2007, France still remains a country where education is relatively cheap. French households have to buy all the stationery for their children. They also have to pay for after-school tutoring on top of that. As a result, per capita expenditure on education was $121.22 in 2007, a 65.26% increase compared to 1995. However, for the first time in a decade, French expenditure on education overtook that of CLIFE countries by more than 15% at the end of the period. The public budget for education was over €121.4 billion in 2006-2007, a 4.4% increase from 2005-2006. Approximately 7% of the French public budget goes to education. Despite new infrastructure and more modern teaching programmes implemented in the mid-2000s, the French education system has come under criticism. Education staff numbers were cut over 15% in 2006-2007, to 1.1 million, in order to reduce costs for French taxpayers. Many people have pointed out that the French education system is increasingly run like a private company with long hours, tight schedules and increasing competition. The education system used to be the pride and joy of French families because the children were taught many subjects from a young age. Older pupils can have up to 40 hours a week in classes, and all students have regular exams to monitor progress. Class numbers used to be low and teachers were able to monitor the individual progress of their students. In 2003, France was in 10th place for success rates in sciences; in 2006 it fell to 19th place, according to the OECD. This decline can also be seen in subjects such as languages and maths since 2000.

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Impact The main problem now is that the French system is based on a meritocracy and rewards the best students. They invariably turn out to be the ones with parents who can carry the financial burden of textbooks, pens, organisers and many other items. On average, a French household spent approximately €190 on school equipment for a small child and €300 for a teenager according to French newspaper Ouest-France. Although the government gives grants to poorer households, some of them cannot bear the financial cost of educating several children. Failure and school drop-out rates are indeed more prevalent for poorer populations. Over the last 25 years, spending on education rose more quickly (+2.6% per year on average) than the French GNP (+2.3% a year). Since the mid-1970s, the individual cost of a student for the French government rose 96% for primary education pupils, 76% for secondary education and 29% for students pursuing higher education, according to the Education Ministry. French councils have only recently started to publish reports about school results that increased the competition between schools themselves. French parents are ready to spend more money on transport, supplies and school gear if it means that children can attend a better school. Although the school’s reputation has no impact whatsoever on the choice of a university after, parents worry about giving their children a good start. Some families even go as far as renting an apartment in a good school’s catchment area in order to guarantee places for their children. Studies conducted by the French Education Department have shown that children who attend better schools will generally perform better at university and will choose more difficult courses such as sciences, for example. Rising disposable incomes mean that parents can afford private tutors and after-school care for their children in order to boost their child’s levels of knowledge. This has become necessary because children no longer get the individual attention they need as class levels reach up to 40 students per teacher. Tutors can be paid anything up to €30 an hour several times a week for piano or language lessons. The “soccer mom” phenomenon has reached France where working women are ready to sacrifice their time and their income for the success of their children.

Pre-primary Education
In 2004, there were 51,155 state pre-primary (“maternelle”) schools in France and 5,473 private ones. Their mission is to look after children as young as 2-years-old (more commonly 3-year-olds) and up to 6-years-old. Access to these schools for staff is extremely regulated and protected. Surveys have shown that girls generally perform better than boys in the “maternelle” because they have more developed social skills. In 2006-2007, 23.4% of 2-year-old children (182,021 pupils) were in pre-primary education versus 35.3% in 2000-2001. This fall in the number of very young children in school is partly explained by an increasing number of women choosing to have children late (after the age of 30 in some cases) and staying at home after to look after them. More and more women are sacrificing their careers to look after the education of their young children. With maternity leave lasting on average 4-5 months, it is no wonder that women choose to stay at home in some cases. Because maternity leave pay drops to 75% of the normal income, families are not really encouraged to have children anyway. Fertility rates are low in France (1.9 children per women in France in 2007) compared to what is necessary for population renewal, but they are made even lower in the absence of conditions favourable to having children. Impact In July 2007, French Education Minister Xavier Darcos argued that “it was not very logical to ask people who basically only changed children’s nappies and looked after them during nap-time to study for a postgraduate degree in order to perform those particular tasks.” He also argued that this was a waste of tax-payer money. Education before the age of six in France is regarded as childcare for working parents. Official reading and spelling classes for children are only compulsory from the age of six onwards. Parents who can afford to can also send their young children to private day care. Access to these facilities is highly competitive and extremely expensive, especially in urban areas. Parents can spend up to €100 a day on these types of childcare and often sacrifice other budget categories to be able to afford it.

Primary and Secondary Education

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At the age of six, after two or three years spent in pre-primary education, a child will enter primary education and later secondary education at the age of 11. He will spend five years in the primary system where he will usually learn to read, write and count. He will also be initiated into another language, usually English, and also into new technologies like computer science. It is very rare for classes to be single sex as 95% of schools are coed. Secondary education rates have risen significantly: 95% of pupils enter secondary education level versus 75% 25 years earlier. Class programmes are more personalised and pupils can choose to specialise in economics, literature or sciences. Over two million students are enrolled in private education out of the 14 million pupils and students in education. Private schools are everywhere in France but mainly concentrated in the regions were Catholic presence is still strong such as western France (Brittany mostly) and Paris. There is a feeling that private education is better for students in France as there is a selection exam to enter these types of schools. Classes are less crowded too, and students get more individual attention. Success results for the baccalaureate are also better in private education as more than 90% of its students pass with a good mark – in 2007, 83.3% of students passed this end-of-year exam. Girls tend to be more successful at this exam as they represent 57% of all successful students. Class hours are usually very long and can last up to 35 hours a week or more for students who choose the International baccalaureate option. Classes are taught in groups of up to 40 pupils and attention and discipline have been an increasing problem over the past few years. As the number of teachers actually employed by the government at this level has fallen, there is concern for the well-being of French students who are confronted with rising levels of competition. Some schools actually encourage this competition as exams and tests are extremely frequent. Leisure time for these pupils will be limited to an hour on the computer after finishing the daily load of homework. Primary and secondary education pupils’ lives are very regimented and organised by their parents to focus on work and tests. Girls generally perform better in languages, and boys in sciences, and they are each encouraged to specialise in those particular areas. Indeed, 77% of girls are in literary sections in high schools, and a majority of teachers are female (77%), too, according to the Ministry of Education’s statistics for 2007. Impact The return to school in September is a social as well as an economic phenomenon. After 2-3 months of holidays, pupils are ready to go back to school. They often attend the school closest to their house and it is quite rare that parents have to drive long hours to take their children there. Rural areas are not as lucky as schools tend to gather children from several surrounding villages, and classes will often be grouped together by age proximity. Though teachers in rural areas have fewer pupils, they also have to be more polyvalent and diversified to teach several age groups at a time. Sports education is limited to two hours a week for primary and secondary students, a poor level compared to most European countries. Although more than 75% of children aged 8-15 regularly practice a sport, it will be on weekends or after school. Parents then have to take extra time off to take their children to sports facilities, especially in urban locations. As there are few parks in places like Paris, parents will have to be very imaginative to entertain their children.

Higher Education
More than 41% of French people aged 25-34 and 19% of people aged 45-54 hold degrees from a French university, according to the OECD in 2006. France is a country located in the European average of 57% of the population being degree holders. There were 1.4 million students enrolled in higher education in 2007, a number that has fallen slightly over the past decade (-1.6% over 2006-2007). University access will often be determined by where someone lives and it is quite rare for a student to move to another town. Students will continue living with their parents; on some occasions they may move to another flat close by to gain independence. Few university students actually see any change in their lives when they start university. Those who do not have a university degree or an equivalent will generally find it extremely hard to find a job. It is a common joke in France that till assistants in supermarkets are nearly all postgraduates. There is no such thing as being over-qualified for a job in France. France spends more than the European average for primary and secondary education (4% of GNP against 3.8% in the rest of Europe), but spends less on higher education than

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the average in OECD countries (1.3% of the GNP against 1.5%). The French government also spends $11,512 per student while the US spends more than twice that amount ($24,370). Not going to university means that some students will hold professional qualifications from another type of organisation. Going for courses such as “CAPs”, “BEPs” or “Bac Pros” still means that pupils enter the job market with a professional qualification. In 2006, 18% of French students followed this path in France. Poorer students as well as immigrants who cannot afford to stay out of the workforce too long usually follow these courses. Statistics show that more than 25% of these students are from modest backgrounds. The French education system is often accused of being very elitist and benefiting only certain parts of society. Famous schools such as École des Hautes Études Commerciales de Paris (HEC) and the École normale supérieure (ENS) indeed attract the best students as competition to get in is fierce. People coming out of these prestigious schools will often join a network of former students and help each other later on in life. Law degrees and scientific degrees are considered the best degrees one can hold in France. Impact French students are among the most stressed in the world according to a study conducted by several French universities. Although they are among the most privileged since university education is so cheap, they are constantly pressured to perform better and to work harder. As exams are very regular, there is no time for other types of activities. Because competition on the job market is so intense, students worry from an early stage about the job they will get. French student life would thus be an unpleasant experience if it were not for student parties organised mainly by Business School and Medical School student unions. If French students work hard, they also play hard. An open bar is common at French student parties. Unsurprisingly, the rate of drink-driving accidents is higher for 18-24 year olds than for any other age group. Campus life is not developed to encourage students to spend social time there. Campuses often group all subjects in a small area with only one or two cafés in the midst of this student population. Only Paris has several campuses. This often comes as a shock to the 216,377 foreign students who arrive to study in France (11.7% of the total number of students).

Adult Education
With 19% of the 45-54 year olds actually having a higher education diploma, it is not surprising that adult education systems have not developed in France. Older people often went directly to work after leaving school at 16 years old and never had time to pursue a degree later. Although older people generally have more time and money, and have access to education and buy books and materials, the popularity of the “Université du Temps Libre” is not impressive. It is mainly considered an outlet for bored housewives. Impact Distance learning is not very popular in France and is reserved for a few home-schooled children. There is a general lack of facilities to enable and facilitate adult education which explains why most of them will not return to school. Prestigious universities such as Sciences Po and the Sorbonne, both in Paris, have sponsored events targeted at older people in order for them to keep informed about politics and cultural developments. Although conferences and similar events are often sold out, Paris remains the only city, with the exception of very few others, to promote those kinds of events. Older people prefer reading or watching TV to returning to school. Getting an education is seen as a young person’s pursuit.
Table 132 EUR billion 1995 TOTAL 5.0 2000 5.7 2002 5.9 2004 6.6 2006 7.1 2007 7.2 Consumer Expenditure on Education: 1995/2000/2002/2004/2006-2007

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Source: Note:

National statistical offices, OECD, Eurostat, Euromonitor International Constant value at 2007 prices

Table 133 % growth

Consumer Expenditure on Education (% growth): 1995-2007/2000-2007

1995-2007 TOTAL
Source: Note:

2000-2007 26.6

43.6
National statistical offices, OECD, Eurostat, Euromonitor International Constant value at 2007 prices

Table 134 US$ per capita

Per Capita Expenditure on Education: 1995/2000/2002/2004/2006-2007

1995 Education Average of CLIFE countries
Source:

2000 78.13 109.71

2002 85.11 117.26

2004 128.75 152.79

2006 142.85 180.21

2007 161.22 207.38

97.56 99.64

National statistical offices, OECD, Eurostat, Euromonitor International

Table 135 % growth

Per Capita Expenditure on Education (% growth): 1995-2007/2000-2007

1995-2007 Education Average of CLIFE countries
Source:

2000-2007 106.35 89.03

65.26 108.14

National statistical offices, OECD, Eurostat, Euromonitor International

HOTELS AND CATERING
Spending on Hotels and Catering
In 2007, the French spent an average of €50.4 billion on catering, a massive 31.8% increase in expenditure from more than a decade earlier in 1995. Catering accounted for 78.9% of the budget dedicated to accommodation and eating out, a slightly smaller proportion than at the beginning of the analysed period (79.5% in 1995). Reasons for this evolution have more to do with an increase in the prices of restaurants, cafés and other catering providers than with the volumes consumed. Indeed, the part of the French household budget dedicated to eating and going out has always been about 10% of the whole. Soaring food and rent prices have forced many restaurants to put their prices up in order to stay open. Similarly, cafés and nightclubs have had to adapt to falling numbers of customers. Legislation banning smoking in public places and restricting late opening times drove customers away. In reaction, French consumers have cut down on their catering expenditure so that it now takes up less than 10% of their overall budget. An average meal in a restaurant costs between €17 and €27, a price most French consumers cannot afford to pay regularly. The overall French household budget devoted to hotels, estimated at €13.5 billion in 2007, saw a 37% increase over 1995-2007. It trended in the opposite direction of catering expenditure and was responsible for 21.1% of consumer expenditure in 2007 against 20.5% in 1995. Hotels were in a similar position to restaurants and cafés, however, as they saw their prices soar. It does not seem that the French spent more nights in hotels over 19952007: the increase in the relative proportion of consumer budget for hotels was due more to the catering budget collapse than to any other type of consumer behaviour. It has never been in a French habit to spend a night in a hotel when they can rely on friends or family. Hotels are usually associated with going on holiday, or as accommodation for professionals.

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The French still spend more on hotels and catering than most of the CLIFE countries, with an average $1,426.44 per capita in 2007 compared to $819.89. However, the main observation to be made is in the evolution of this figure. Prices in both France and most CLIFE countries have risen in similar ways and consumer budgets have been tightened. Overall, however, it seems that the French are the only ones who have somewhat adjusted their consumption behaviour as their expenditure in these categories rose only 52.9% against 75.8% for all CLIFE countries. Impact According to the British newspaper the Guardian, the French restaurant sector has ranked third in the country in terms of bankruptcies filed since 2000 with a 25% increase in the number of cases. Eating out is becoming so expensive that fast-food chains are the only places that are affordable; as a result, they have seen an increase of 3% in the number of customers they serve. Meals out are no longer as regular or as long as they once were in the purest French tradition. Office workers increasingly buy take-away baguettes and supermarket lunches in the middle of the day. The Guardian noted that Hippopotamus (a French equivalent to Pizza Hut) had started running loyalty deals and special-offer hamburgers, which had become more popular than French steak dishes. The price of the daily “café crème” was €1 in 1999; it now costs €1.50 and sometimes more in Paris. Hotels are not considered the usual choice of accommodation for French people on holiday in France. French people on professional trips or foreign tourists mostly populate French hotels. If there is indeed an increase in consumer expenditure on hotels, it is mainly due to inflated prices and not an increase in hotel popularity.

Going Out
The French have set days and times during which they will go out. Weekdays up until Thursday are not very popular. However, everything changes on Thursday when the French go out to clubs, cafés, and bars. Most young people will properly start their party around 21.30-22.00hrs. Older people will start a little earlier, and not as often, and will be more loyal to certain favourite places. There is a difference between rural and urban areas. People living in the countryside will go out exclusively to clubs as they will not drive to a bar some distance away from their home. They will prefer to go to one place where all activities are concentrated. Living in a city makes it easier to go out because bars and clubs are all accessible by public transport or walking. For French people, going out is an activity that is distinct and separated from any other, which is why it happens so late compared to other countries. Bars will usually serve until 02.00hrs, which is the conventional and legal cut-off time for 90% of bars. “Night bars” will usually stay open until 04.00hrs or 05.00hrs in the morning. Cafés and bars will serve “soft” types of alcohol like beer or wine. People prefer to consume vodka or whisky in clubs. A recent phenomenon among young people has been purchasing alcohol from supermarkets (where it is better value) and drinking it all before going out. They will be less likely as a result to spend money in bars. This is even more common with alcohol prices going up. French legislation is tolerant of young people buying alcohol; identification is rarely requested which makes buying alcohol very accessible. Rising prices have forced the French out of bars and cafés. Indeed, they increasingly prefer to only go to a club if it means they can save money on alcohol and transport. Buying alcohol and party food from supermarkets is cheaper. Discount supermarkets have recently experienced a boom in their alcohol sales: beer can be as cheap as €10 for 15 cans and stronger drinks are up to 25% less expensive. The French will spend the first part of the evening at home, drinking and talking, then go out in the early hours of the morning. Impact It is illegal in France to advertise alcohol or tobacco in any type of media whatsoever. However, French law is vague on sponsorship: major alcohol companies will therefore choose to sponsor a particular party or event in a club or a café by giving out free shots of alcohol or handing out branded goods such as hats, t-shirts or lighters. This is frequently a part of student parties, for example. Ironically, all student parties have a Red Cross area where people go when they have had too much to drink. These areas are always overcrowded during student parties. This type of advertising is considered dangerous by French consumer protection agencies but nothing has been done to stop it. Young people, in particular, are very vulnerable to alcohol. According to the French Road

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Security Association, the under-25-year-old age group has the highest drink-driving death rate in France. There are so many places to buy alcohol that young people have unlimited access to it. Corner shops, in particular, are notorious for selling beer or bottles of spirits without asking for any identification. Since smoking was banned in public places in 2006, cafés and bars witnessed a fall in the number of customers. Only non-smokers admitted to going out more: indeed, a survey published in 2005 by the Yvelines Council (in Paris) showed that 24% of non-smokers admitted they went out more and found it more enjoyable to go out since the smoking ban.

Eating Out
According to the Guardian, the time French people spend in restaurants has dropped dramatically in the last 25 years. In 1975, an average restaurant lunch would last approximately 1hr30mins. But by 2005, it lasted 32 minutes. However, food is still central to French culture and most households will still eat out even if they do so less frequently. There are two categories of people who eat out in France. The first group eat out because it is central to French business habits. Contracts are very commonly agreed upon during a meal out with business associates or partners. French etiquette even advises that business lunches are compulsory to settle a deal! Professionals spend an average of two hours on an important business lunch and will usually go to traditional French restaurants. The second group will eat at a restaurant once or twice a month for social reasons and will usually go to the same places where they know the food. The most popular are Italian and Chinese restaurants as well as traditional French places. There are also many Caribbean and Northern African places set up by the French immigrant population. Meal prices vary from €15-€35 as most people would not consider spending more. There is a belief in France that food that is good and simple is decently priced. Asian food is a discovery for French consumers as sushi was only introduced in the mid-2000s. Indian food is a rarity in France and is often much more expensive. Fast-food restaurants have seen a slight increase in customers when other places have see numbers fall dramatically. Fast-food chains have conquered customers again by promoting healthier food choices and, most importantly, being clear about the origin of their ingredients. French people are very conscious about the origin and the quality of the food they eat and fast-food chains have understood that. They have appealed to these preoccupations by advertising the origins of the meat they use as well as the number of calories in each dish. Take-away meals have not been fully accepted and are not part of French culture the way Indian take-aways are in the UK. The French prefer either preparing their own food or eating out. Kebabs are the closest one will get to a take-away as 3 in 4 young people admit to eating them regularly according to a survey published by French magazine Le Nouvel Observateur. Impact The number of consumers eating out in independent restaurants fell 8% in 2005, a trend that is expected to continue. Restaurants are becoming worried about maximising customer spending when they do come to restaurants. According to the Guardian, Parisian restaurants are getting impatient with smaller orders. In one restaurant near Paris's Gare de Lyon, according to the reporter, “two couples were asked to leave by a desperate restaurant owner because they would not order starters.” Most restaurants have faced increasing rent and food prices since the early 2000s and this has driven away many customers. Smaller restaurants have disappeared altogether. Since the mid-2000s, the rate of bankruptcy for smaller establishments peaked when nearly a third had to close down. Restaurants are forced to propose “meal deals” comprising of a set price for two or three courses that reassures the customer. Professionals are no longer spending much time or money in restaurants and most of them have resorted to taking their meals at their company’s canteen or eating a sandwich instead. French people have found alternative ways of eating out. A new concept developed by some restaurants allows customers to bring their own alcohol and drinks when they order food. This system is particularly popular with young people. Going to a friend’s house to have a meal is also increasingly “the thing to do” as costs are shared

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between all guests who contribute to the production of the meal. The French are indeed more and more influenced by this Scandinavian type of lifestyle.

Spending on Accommodation Services
French hotels and hotels chains saw the number of their customers fall regularly each summer for the past three or four years according to a study published by French audit company MKG in 2008. Indeed, during this period from 2000 to 2007, prices increased 5%, which had a beneficial effect on profits but not on the average turnover. The occupation rate in most hotels is around 72.6% on average during the summer, less during the rest of the year. The only exception to this poor showing was the summer of 2007 when occupation rates rose by 3.8%. The situation is different in Paris where occupation rates are usually always higher because of constant foreign tourist inflows. With the average night in a hotel priced around €85 and holiday rental prices soaring to several hundred euros a week, it is no wonder that consumer expenditure increased 37% during the 1995-2007 period. Accommodation is now responsible for nearly a quarter (21.1%) of the consumer budget dedicated to eating out and accommodation services. With an average turnover of €1.1 billion in the summer of 2007 alone, French hotels have clearly managed to maintain their profit margins. The French are not interested in staying in hotels in their own country and it is understandable considering the increase in prices. They prefer finding alternative accommodation, with camping and furnished rental flats or houses being the most popular. With 16,574 camping sites, France attracts large numbers of campers and tourists with this very cheap type of accommodation. Flats can also be cheap if the rent is shared between enough people. This system is popular with big families and young people who can go on holiday without spending too much. Room prices in Paris are the most expensive as they are priced around €135.30 ($184), double the price in the rest of France. French hotels are some of the least expensive in Europe but it does not save them from price inflation. Impact The part of the market that has most benefited from the recent explosion of accommodation prices is the luxury segment. High-income customers are the only ones who do not feel rising prices as they will stay in hotels anyway. The increase in this customer profile has led hotels to renovate and redesign some of their rooms in order to meet the demands of this market segment. Higher room prices mean more luxurious and more stylish accommodation. Rising prices have pushed many customers out. They prefer to spend their money on other types of non-essential goods that they can afford (entertainment goods for example) rather than waste it on expensive hotels. For the rest of the French population who cannot afford to stay in luxury accommodation, alternative means have to found. Indeed, staying with family and friends is the most popular type of accommodation when travelling but it makes the average holiday shorter by a few days. The French prefer shorter holidays if this means spending less. Buying a holiday home is also an alternative. It is very popular for French people to have a “second house” near the sea or the mountains, especially on the Atlantic coast. The French will then prefer to stay at such a home while on holiday. But again, property prices have soared. A fisherman’s shed in the much sought-after area of Cap-Ferret in southwest France sold for over €1 million. More than 40% of the French actually stayed home during their holidays in the summer of 2007.
Table 136 EUR billion 1995 Catering 38.2 2000 45.8 2002 47.6 2004 48.0 2006 49.2 2007 50.4 Consumer Expenditure on Hotels and Catering: 1995/2000/2002/2004/2006-2007

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Accommodation TOTAL
Source: Note:

9.9 48.1

11.0 56.7

11.9 59.5

12.2 60.3

13.1 62.3

13.5 63.9

National statistical offices, OECD, Eurostat, Euromonitor International Constant value at 2007 prices

Table 137

Consumer Expenditure on Hotels and Catering (% analysis and % growth): 1995/2000/2007/1995-2007/2000-2007

% analysis/% growth 1995 Catering Accommodation TOTAL
Source: Note:

2000 80.7 19.3 100.0

2007 78.9 21.1 100.0

1995-2007 31.8 37.0 32.9

2000-2007 10.1 23.3 12.7

79.5 20.5 100.0

National statistical offices, OECD, Eurostat, Euromonitor International Constant value at 2007 prices

Table 138 US$ per capita

Per Capita Expenditure on Hotels and Catering: 1995/2000/2002/2004/2006-2007

1995 Hotels and catering Average of CLIFE countries
Source:

2000 777.04 448.63

2002 853.12 477.44

2004 1,176.26 634.44

2006 1,259.76 720.79

2007 1,426.44 819.89

933.20 466.45

National statistical offices, OECD, Eurostat, Euromonitor International

Table 139 % growth

Per Capita Expenditure on Hotels and Catering (% growth): 1995-2007/2000-2007

1995-2007 Hotels and catering Average of CLIFE countries
Source:

2000-2007 83.57 82.76

52.86 75.77

National statistical offices, OECD, Eurostat, Euromonitor International

MISCELLANEOUS GOODS AND SERVICES
Spending on Miscellaneous Goods and Services
Consumer expenditure on miscellaneous goods and service rose 17.2% over 1995-2007. The French have traditionally spent double over other CLIFE countries in this category. In 2007, the average French consumer spent $2,252.93 on various goods, an increase of 34.8% from the beginning of the period. Spending on cosmetics and personal care items is not dictated by necessity so much as by the need to care for one’s appearance. French people are generally renowned for being well groomed and well dressed. Spending on such goods is dictated by available income and tends to increase as income levels rise. French incomes have risen over the past decade and it is no surprise that spending in this category has too. French women, especially, do not mind spending incredible sums of money if means that they buy a product that suits their needs. Product loyalty in this particular segment of the market is not high and women will spend a lot of money and time searching for the best products. The French will always have a minimum level of income dedicated to cosmetics and personal care items. Cosmetics and toiletries are not popular on-line retail items, since French consumers attach importance to trying these products, smelling and touching them, before purchasing.

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On the other hand, financial services, pension plans and insurance are dictated by necessity. More than 90% of the French own a bank account and all workers are compelled to join a pension plan set up between the French state and their employer. These will tend to be the basic and incompressible parts of the budget. French bank accounts will cost anything from €3 a month for the basic account to €15 for the more elaborate and international accounts. The French tend to be cautious with their money. Credit cards are not commonly used in France. The liberalisation of the banking and financial sector in Europe is one of the last unfinished areas of European harmonisation and explains why prices in France remain high. The expansion of the internet in France means that the French do most of their banking on-line as it enables them to avoid bank queues. Impact French spending behaviour on these types of goods is marked by responsibility. The French never spend more than they have, except when purchasing things like property or more expensive equipment. Rising incomes mean that the French will spend accordingly. An incompressible level of consumption marks financial services and toiletries, both of which are essential to daily life. There is obviously room for expansion and innovation in these sectors as the French are ready to spend incredible amounts to feel comfortable and protected. Men especially are a segment of the market to watch as they are increasingly the target of campaigns promoting healthy lifestyles. Financial services are becoming increasingly segmented according to sex. There are indeed insurance policies as well as bank accounts targeted to women’s needs and habits.

Personal Hygiene and Personal Grooming
The French at every age are very concerned about their appearance. At one end, older people like going out well-dressed and neat. At the other, teenagers are becoming increasingly fashion and style conscious as they monitor national and international media for up-coming trends. Their consumption is among of the highest in the world: the French will spend €176 on grooming and cosmetics when the Irish will dedicate €123 and the English €153. Clothing is also important and the French are increasingly attracted to luxury brands. Consumer expenditure on personal care products has increased by nearly a third over 1995-2007, and is responsible for 20.5% of the budget for the products and services in this category. As economic conditions become more difficult, the French are turning to an area they actually have control over: their appearance. Men, especially, are a category with tremendous growth potential as the media is putting so-called “metrosexual” trends forward. Young urban professional men are very media-conscious and follow trends to the letter. Almost 15% of them admit to having been professionally waxed and an increasing number buy moisturising creams and perfume. For those who used to use their girlfriend’s products, cosmetic companies have started to create ranges of products especially targeted to men’s needs. Brands such as Nivea and L’Oréal, have perfected their current ranges by adding anti-ageing creams and products featuring vitamin C, and were the first to do this. At the same time, young people do not like to be reminded that they have skin problems. Most of them buy well-known brands in supermarkets, and have paid little attention to the new products introduced in chemists and perfume shops. This explains the failure of recent attempts by some luxury companies to introduce high-end skincare products. The French enjoy quality products but are very conservative in their choices. French women will go for branded mascara or eye-liner but will not choose eccentric colours. French women are known for their chic and elegant appearance and prefer to remain discreet and understated – outrageous make-up remains on the pages of magazines and on catwalks. French women will not buy large quantities of products but prefer a selection of good and reliable products that they will change when they are finished. The most dynamic categories in France include perfumes and moisturising creams, with a net increase in anti-ageing products. Until the late 1980s, personal care was never a significant issue for many French people. Anti-ageing creams and cosmetic surgery were virtually unknown and the dangers of the sun were ignored. A tan is still a sign of health in France and many people spend their holidays getting one. However, France now takes skin cancer very seriously as there were around 80,000 new cases declared in 2006 leading to 1,300 deaths. According to the French Skin Foundation, skin cancer rates have doubled every ten years since 1945. The main victims are older people (45-60 years) as they were tanning in the 1970s using olive oil and fat!

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Cosmetic surgery is also on the rise. The French are not as obsessed with their bodies as, for example, Brazilians or Americans. However, trends such as “Botox” and breast enhancement procedures are becoming increasingly popular. Men and women will save up for years to afford cosmetic procedures. The French are very much influenced by Anglo-Saxon culture and US magazines, such as Vogue, that always dedicate an article to plastic surgery of some sort. As the French are the leading consumers of magazines in the world, it is no surprise that they are very sensitive to new plastic surgery procedures and cosmetic innovations. Impact The French like sophisticated and expensive products, and non-essential goods are essential to the French lifestyle. Their place in French society is central as they take up much of the advertising space in the media. Men, especially, are a growing category although they do not like to be stereotyped. For example, J.P. Gaultier launched a male make-up line in 2005 which was a complete failure with French men. They enjoy looking after themselves but do not like showing it. Women, on the other hand, enjoy being well groomed and perfumed. Most women use moisturiser daily and younger women are getting into the habit early. Moisturisers with integrated sunscreen by brands such as Clinique and Biotherm have been very successful in France.

Shopping for Cosmetics and Toiletries
Cosmetics and toiletries are considered non-essential goods for many French people although shopping behaviour indicates otherwise. Consumer expenditure for these products has risen significantly in proportions comparable to spending on education or housing. French attitudes towards grooming have not changed significantly – they are as concerned about their appearance as ever. The major change has been in the proportions grooming has grown to over the years. Fears of germs, of diseases and unhealthy practices have led to new types of behaviour. Scientific progress has created new needs in terms of cosmetics. The French are very sensitive to arguments backed by science. The most recent illustration of this is the net decrease in the number of people smoking in France. French women used to think smoking would keep their weight down. However, increasing skin damage amongst older French people and the premature appearance of wrinkles are more valid excuses to stop smoking for French people than other types of health concerns. The French will not buy cosmetics through on-line retailers or catalogues. The reason for this is that they prefer trying the product, smelling it and feeling it before deciding to invest in it. Supermarkets are the main distribution channels for food (more than 70% of all purchases) but are viewed with a mixture of necessity and distaste in the case of cosmetics. Items such as shower gels and shampoos are purchased in supermarkets and all popular brands are available. However, only teenagers and low-income households buy their cosmetics there because prices are lower and the ranges available are very general. Most people, and particularly women, will go to specialised shops that sell cosmetics and perfumes exclusively: they need to be advised and reassured and discuss the product with a specialist before buying it. Chemists are only marginal channels of distribution as they specialise in medicated cosmetics like acne-treatment and head lice shampoos. Impact Supermarkets are seen as no-go areas as French people associate supermarket cosmetics with mass-consumption and loss of individuality. Shopping for cosmetics is an activity that takes time and effort but is at the same time pleasurable. Saturday afternoons will be the favourite time for cosmetics shopping and speciality shops will be full of women looking for a specific item they saw advertised in a magazine. Pollution in cities has led to increased spending on certain types of cosmetics such as specific shampoos and moisturisers the claim to combat pollution damage. This is an area with potential growth as the French are very sensitive to environmental and scientific arguments.

Pensions
The average retirement age in France is 65 although this can vary according to specific situations. Those over the age of 65 represent the category with the most growth potential as they are expected to make up a third of

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the population in 2025. In 2003, according to the UN, 16% of the population was over the age of 65 years, a similar figure to the young person’s category. France illustrates perfectly the dynamics of population ageing. The pension system is on the verge of collapse as there will be fewer workers contributing in future years. Contributions are compulsory for all workers in any type of employment and are managed according to a plan developed in coordination with private companies and the French government. Contribution rates are most important in the public sector, as trade unions are more active there. This situation has caused major controversy in recent years as people working in the private sector (industry, trade and finance mainly) want equal conditions and equal contribution rates, which are higher in the public sector as they are decided centrally by the government. This has triggered unprecedented enthusiasm for private pension plans as there is growing distrust and uncertainty in the governmental system and its ability to guarantee several million pensions at a time. New financial instruments are being created to answer the need for more security and a better return on investments. The French system is not as developed as in the United States for two reasons. First, it is still very new and French workers need to get used to the fact that they might have to contribute to their pension on their own. Second, all private pension instruments are mainly taken out through banks that do not want to take too much risk. Pensioners are highly active and have on average 30% more disposable income than other categories. The main issue for pensioners in France is not loosing the living standard they enjoyed whilst working and many pensioners are careful about this. Impact With an increase of 93.7% over 1995-2007, the 75-79 years old category experienced the most important growth rate. A high growth rate was also recorded for the 80-years and older group with an increase of 23.8% over the same period. On the other hand, negative growth rates were recorded for the youngest categories in the French population. Population ageing has deep financial impacts. Older people will tend to buy and rent out more properties than younger people. There is a belief in France that property equals stability and prosperity, and many older people have their assets locked up in properties in city centres. They are also the ones who have sufficient income to be able to afford property investments. Population ageing and pension problems have led people to find alternative ways for making and saving money. Property is indeed one, but there is also the option of working later in life or going to live with one’s children. Working past retirement age is a solution that some have adopted and it is not uncommon to see workers in their early 70s. Moving in with one’s children is a growing trend encouraged by the need for trusted childcare for the grandchildren while their parents are at work.

Banking, Savings and Financial Services
France has one of the highest savings rate in Europe at 14% of the income in 2006 according to the French Finance Ministry. This figure reflects French attitudes towards money: care and attention. The French trust banks very much and more than 80% have active bank accounts. The postal provider, the PTT, also provides financial services to poorer households who can open current and savings accounts with less difficulty than in a normal high street bank. There are several major banks in France. The French government has owned all banks since the mid-1980s and there are no regional financial services. Financial services have not been liberalised completely yet at the European level. This explains the high cost of financial services, such as bank accounts, in France. French banks have diversified and offer other types of financial services. Private investment companies and hedge funds are highly regulated in France, as is the stock market. The French equivalent of the FSA (the “AMF”, Autorité des Marchés Financiers) is a very active member of the stock market and closely regulates all operations. As a result, it is difficult for companies in this sector to be profitable in France. Banks work closely with clients, usually recommending financial services which will not be the most efficient but are often the most secure. The most common savings instrument is called the “Livret A” and it usually comes with an interest rate

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of 4%. However, rates were reviewed and lowered in 2006. There are many types of savings accounts depending on the use people want to make of their money: property savings accounts, young persons’ savings, long-term investments and so forth. All rates are different but never go higher than 2%-3%. The French want to feel secure about their money. Credit cards are a rarity in France and only two out of 10 households actually own one, let alone use it. Investing in electrical equipment will be done on specific occasions and only with as little use as possible of borrowing instruments. Borrowing money is a big deal in France and will only be done in cases of extreme necessity. Asking parents or friends is preferred. Interestingly enough, interest rates in commercial banks are lower than in many other European countries. The best example for this is student loans, where interest rates have been between 2%-3% since 2007. The French use debit cards to pay for many goods although cheques are equally popular. Rent is usually paid with a cheque. French consumers tend to prefer cards for purchases over €20 as carrying cash is dangerous. In 2005 the French government advised that the normal amount of cash to carry was around €5. This was the minimum needed to meet daily travel and food expenses. The arrival of the Euro caused major controversy in France as people felt that prices had gone up. Older people were even more confused as most of them still used old francs (abolished in the 1980s) and rarely paid with a card. French debit cards always have pin numbers associated with them. Impact French people view on-line banking with a certain degree of caution. As with books or clothing, they only use websites they trust. However, many people have switched to on-line banking even though French banks introduced it quite late (2005-2006). Equal numbers of men and women bank on-line. Women do not need their husband’s authorisation to open a bank account, though as late as the 1980s this was not the case. Consumer expenditure on financial services fell 22.5% over the reviewed period mainly because French consumers were more cautious with their money and did not invest as much. The recent economic and financial climate has only confirmed this and many worry about their savings in the bank.
Table 140 Consumer Expenditure on Miscellaneous Goods and Services: 1995/2000/2002/2004/2006-2007

EUR billion 1995 Personal care Jewellery/silverware/ watches/clocks/travel goods Social protection Insurance Financial services Other goods and services TOTAL
Source: Note:

2000 21.4 7.6

2002 22.8 7.4

2004 23.1 7.3

2006 23.1 7.3

2007 23.4 7.3

17.9 7.0

13.0 26.1 23.6 10.1 97.6

15.4 28.5 20.7 12.3 105.8

15.4 29.2 18.1 12.2 105.0

16.0 32.7 16.5 12.4 107.8

17.0 34.4 18.3 13.0 113.0

17.2 35.1 18.3 13.1 114.4

National statistical offices, OECD, Eurostat, Euromonitor International Constant value at 2007 prices

Table 141

Consumer Expenditure on Miscellaneous Goods and Services (% analysis and % growth): 1995/2000/2007/1995-2007/2000-2007

% analysis/% growth 1995 Personal care Jewellery/silverware/ watches/clocks/travel goods Social protection Insurance 18.3 7.1 2000 20.2 7.2 2007 20.5 6.3 1995-2007 30.9 4.4 2000-2007 9.5 -4.3

13.3 26.7

14.5 26.9

15.1 30.7

32.8 34.5

12.0 23.3

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Financial services Other goods and services TOTAL
Source: Note:

24.2 10.3 100.0

19.6 11.6 100.0

16.0 11.4 100.0

-22.5 29.6 17.2

-11.5 6.2 8.1

National statistical offices, OECD, Eurostat, Euromonitor International Constant value at 2007 prices

Table 142

Per Capita Expenditure on Miscellaneous Goods and Services: 1995/2000/2002/2004/2006-2007

US$ per capita 1995 Misc goods and services Average of CLIFE countries
Source:

2000 1,449.43 622.52

2002 1,504.74 646.77

2004 2,104.62 849.62

2006 2,284.59 957.57

2007 2,552.96 1,088.65

1,894.03 621.17

National statistical offices, OECD, Eurostat, Euromonitor International

Table 143

Per Capita Expenditure on Miscellaneous Goods and Services (% growth): 19952007/2000-2007

% growth 1995-2007 Misc goods and services Average of CLIFE countries
Source:

2000-2007 76.13 74.88

34.79 75.26

National statistical offices, OECD, Eurostat, Euromonitor International

DEFINITIONS
Euromonitor International’s Consumer Lifestyle series covers the following countries:
Summary 1 Eastern Europe Country Coverage Belarus - Bulgaria - Croatia - Czech Republic - Estonia - Hungary - Latvia - Lithuania - Macedonia -Poland Romania - Russia - Serbia and Montenegro - Slovakia -Ukraine - Slovenia Austria - Belgium - Denmark - Finland - France Germany - Greece - Ireland - Italy - Netherlands Norway - Portugal - Spain - Sweden - Switzerland Turkey - United Kingdom Australia - New Zealand Azerbaijan - China - Hong Kong, China - India Indonesia - Japan - Kazakhstan - Malaysia - Pakistan - Philippines - Singapore - South Korea - Taiwan Thailand - Turkmenistán - Uzbekistan - Vietnam Canada - United States Argentina - Bolivia - Brazil - Chile - Colombia - Costa Rica - Dominican Republic - Ecuador - Guatemala Mexico - Peru - Uruguay -Venezuela Algeria - Cameroon - Egypt - Iran - Israel - Kenya Kuwait - Morocco - Nigeria - Saudi Arabia - South Africa - Tunisia - United Arab Emirates

Western Europe

Australasia Asia Pacific

North America Latin America

Middle East and Africa

Source:

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