When it comes to fashion, France is the top destination of choice for many international shoppers. From high-fashion items to daily must-haves, the country’s burgeoning fashion industry is a force not be trifled with. With Paris as its epicenter, France has become a global hub for luxurious fashion in recent years.
An array of top designers have designed their newest wares within the city’s borders and at some of its most famous institutions like Chanel and Dior. For decades, France’s national fashion brand LVMH has been at the helm of this industry with its myriad high-end brands such as Dior, Louis Vuitton, Céline and Christian Dior. Now private equity firm Kering is also throwing its hat into the ring with regards to French fashion. Since its debut in 2015, Kering’s Gucci has become one of the prime movers in France’s luxury sector.
So why are so many people flocking to France to purchase their French fashion designer duds? Several factors play a role in this industry’s meteoric rise. One is France’s multitude of tax policies that benefit its citizens. An income tax rate of 30 percent is applied to all salaries, with higher earners taxed at 40 percent.
Capital gains are taxed at a similar rate as wages and corporations only see 15 percent of their profits taxed. Additionally, France has laws that protect its citizens from accidents in the workplace or at home and ensure generous time off for vacation and sick leave. With all these extra benefits readily available, French people are in a position to splurge on luxury items.
Other than tax policies, France has many other tempting factors for consumers of French fashion. One of these is the country’s huge selection of international tourists who visit the French capital. These visitors push up the number of shoppers and their buying power. With more gawkers, there are also more opportunities for retailers and fashion houses to expand into new markets and target high-spending customers with additional sales efforts.