Market entry strategy for exports to France

If France is a relatively unknown market for you, you need a clear market entry strategy. This may be different from the strategies you have used so far, as the market structure and the competition is different.

Key in your market entry strategy is some market research. Of course there are reports on market size and market growth, but often these are general. Specific knowledge on how your product is perceived and what your competitions is, is harder to get but more valuable.

Oppportunities for international business in France

France and the United Kingdom have been alternating each other as the second economy of Europe. France is a highly centralized country where mostly in Paris the decisions are made. Other major cities include Marseille, Lyon, Toulouse, and Nice.

As of 2024, France’s population is projected to be around 64.88 million. The country experiences a modest population growth, with a growth rate of approximately 0.15%.

France has one of the world’s largest economies, known for its diverse industrial sectors, including aerospace, automotive, and luxury goods. It is also a leading agricultural producer within Europe.

France is globally recognized for its rich history, art, and gastronomy. It has a strong cultural influence worldwide and is a popular tourist destination. The country has a diverse population with a significant number of people from various ethnic and cultural backgrounds.

WHAT IS THE DISTRIBUTION STRUCTURE IN FRANCE?

The standard distribution route in France involves goods being sent to wholesalers who in turn utilise various channels to reach retail outlets, where they are made available to the consumer. All wholesalers and their warehouses are situated in a convenient, centrally located area for prompt supply. Local shops and other retailers naturally purchase in bulk from the warehouses to make it more cost effective.

Knowledge of the customer base, major gateways, legal matters as well as the distribution structure will be beneficial to your expansion. Having a local partner will help you navigate around the French market and ensure optimal results for your strategies.

WHAT ARE THE ARBITRATION AND LITIGATION PROCESSES IN FRANCE?

ARBITRATION

Commercial arbitration is applicable to any sector of the economy.
Arbitration is more flexible than litigation. The proceedings can be tailored on a case-by-case basis.
In France, arbitration tends to be more expensive than litigation.

LITIGATION

Litigation is usually used to settle large commercial disputes.
Lawyers from EU countries or Norway, Switzerland, Liechtenstein, and Iceland can practice law in France, depending on their original profession qualifications.

Expanding to the France can be challenging. It is advisable to research and plan thoroughly, understand the culture, legal system, and necessary procedures to optimize the outcomes of your strategy.

Five ways into a market

Your entry model decides your cost, your speed and how much control you keep: sell directly from home, work with an agent, appoint a distributor or importer, sell online, or open a local office.

Control and investment move together. Direct and online selling are cheap to start and easy to stop. A local office gives full control, but needs staff, registration and often a local company.

Most companies start light, prove that there is demand, and only then invest.

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Entering the market in France in three steps

Step 1

Validate the demand

Check market size, competitors and price levels, then speak with five to ten potential buyers. Their reaction tells you more than a general market report.

Step 2

Choose channel and price

Pick the entry model that fits your margin and your capacity, and calculate your landed cost: transport, duties, VAT and the margin the channel will take.

Step 3

Pilot, then scale

Start in one region or with one partner, agree what success looks like after six to twelve months, and expand the country plan only on those results.