French Retail Market Trends
Several trends, already present before the COVID pandemic, have been supported by the latter and have led companies to rethink and refocus their development.
First, we find the development of e-commerce. The French are buying more and more online. Indeed, the market share of e-commerce in the retail sector continues to increase year after year and reach 14.1% (65.23 billion euro) in 2021. This trend, supported by the pandemic, has led French companies to engage in an express digital transformation in order to remain competitive.
The COVID pandemic has also accelerated changes in consumer behavior in other areas, as consumers are now seeking contactless experiences. First, we find contactless payments. The latter, which represented a third of card payments before the pandemic, has become the preferred payment method for consumers and currently represents more than half. The click & collect has also experienced a rise in power, pushing companies to opt for an omnichannel strategy. Finally, cashier-less convenience stores have made their mark on the retail market by offering a touchless experience, offering everyday products and being accessible 24/7.
In France, the trend is also towards “sustainability”. Indeed, with an ecological awareness that is developing more and more quickly, consumers are more and more concerned about two points: the packaging and the origin of the products. This is becoming more and more prevalent among the younger generation, notably the Z generation, who prefer that packaging be ecological, biodegradable, recyclable or compostable. In addition, consumers are looking for local products, or from neighboring countries when possible. This can be observed for fruits and vegetables, where some consumers will not appreciate importing products from other continents if they can be found in neighboring countries.
A last important point to be noted is the importance that the French attach to quality, even before the price. Quality is indeed the first criteria of selection of products, particularly when it comes to purchasing food, beauty or pharmaceutical products. We can also notice that through the behavior of consumers, who, looking for quality and transparency, are more and more numerous to use mobile applications to scan the barcodes of products in order to obtain more information about their composition.