According to figures from the National Statistical Office (INSEE), the purchasing power of French households rose by 1.5% last year. But people aren’t happy since many price rises over the past 4 years are very evident to them – from a 25% rise in the cost of a cup of coffee through 13.6% on the price of a baguette to a thumping 44% hike on what they pay for a cinema seat. Whatever is true of their overall purchasing power they feel continually hit in the pocket. 

One result of this, as I noted last time, is that consumers are more and more abandoning pricey brands and going for cheaper items in hard discount stores and “own brands” – “marques du distributeur” – in conventional supermarkets. Savings on such purchases can range from 40 to 70%. Angie, a New Zealand girl we know, told us, “I used to buy quite expensive perfumes from Sephora in Nice. Now I select from their own range. They’re much cheaper and rather good. I’m saving a lot of money, really.” But there’s bad news for parents: kids are still fixated on brands, for everything from trainers to schoolbags, and don’t share their elders’ enthusiasm for discount shopping. 

From Reporter 110 - Aug/Sept 2005 

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