Doing business in France

Doing business in France?We can help

Contents

Why France? 02Why use our services? 04Aerospace in France 08Automotive Industry in France 10Biotech & Pharma in France 12Business & Construction in France 14Creative Industries in France 16Defence & Security in France 18Education in France 20Design Giftware in France 23Energy 26Environment & Chemicals in France 28Food & Drink in France 30Home Furnishings in France 32Home Gardening in France 36Healthcare in France 38ICT – Software Industry & Telecoms France 40Jewellery in France 42Music in France 44Online Retailing in France 46Retail Industry in France 48Video Games in France 50Well-being in France 52Top tips for doing business in France 54

Doing business in France2

Sector Opportunities

• Healthcare, Medical Equipment and eHealth

• Biotechnology and Pharmaceuticals

• Software and ICT

• Creative, Digital and Media Industries

• Fashion

• Homewares and Hardwares

• Environment

• Aerospace

• Railways and Automotive

• Agri-food

• Building and Construction

• Security and Defence

• Financial, Legal and Professional Services

• Education

There are also niche markets in all other sectors. Almost anything that sells well in the UK has the potential to be sold in France, provided that the quality and price are right, making it an attractive export market.

The Eurostar has reinforced the already strong air and sea connections. This means you can easily visit your customers and organise meetings in a day trip.

• The market is open and similar to that of the UK in terms of legislation, technology, demand, size. The level of technology and innovation is comparable to the UK offering the possibility of many types of partnership.

• Business relationships with French companies tend to be long-term.

• France hosts some of the biggest international Trade Fairs.

Why France?

With a population of 65 million, France offers numerous opportunities on your doorstep. It is the 4th largest export market for the UK with some £32 billion worth of exports per year.

France is home to world leading companies in many innovative industries and is the third largest recipient of foreign direct investment, offering new opportunities for UK companies in procurement and sub-supply. Numerous “pôles d’excellence” (industrial clusters) testify to the attractiveness of France as a business location.

France’s strategic location at the heart of Western Europe is well served by a highly developed transport and communication network.

Since 1993 and given its growing cross-channel business interest, Groupe Eurotunnel and its multicultural teams are actively seeking increased trade with Great Britain.”Groupe Eurotunnel

UKTI gave us a warm entry into the market and acted as an excellent point of reference for local knowledge about our industry”Brendon McManus, Co-Founder of Clean Air Technologies

How we can help

UK Trade & Investment (UKTI) provides expert trade advice and practical support to UK-based companies wishing to grow their business overseas. With 2,300 staff and a presence in 96 countries, UKTI can assist you at every step of your export journey. Whatever stage of development your business is at, we can give you the support that you need to expand and prosper.

Through a range of unique services, including funding towards participation at selected trade fairs, outward missions and providing bespoke market intelligence, we can help you crack foreign markets and get to grips quickly with overseas regulations, business practice and overcome language barriers.

In France UKTI has offices in Paris, Lyon and Bordeaux enabling you to identify regional centres of excellence for your business.

Find more about business opportunities in France:UKTI FranceT: +33 (0)1 44 51 34 00E: [email protected]

3Doing business in France


• In-Market Support – prestigious Embassy and Residence facilities; networking support; contact generation; meeting facilitation; meetings with UKTI sector specialists at trade fairs.

• Mission Support – organisation of targeted missions, visit programmes, individual meetings and networking receptions; logistics advice; briefing and debriefing sessions.

• Product Launches – concept development; contact identification; hiring of the Embassy and/or Ambassador’s Residence for events; PR & Marketing services.

• Other Services – organisation of seminars, webinars, presentations and events upon request; Business Opportunities information placed on the UK Trade & Investment website.

Why use our Services?

What does it cost?

Because companies have individual requirements there are numerous levels of service offered by UKTI. The price varies depending on the amount of assistance required.

Tell us what you want and we will do our best to help you – our services are tailored to your specific requirements.

UK Trade & Investment’s Overseas Market Introduction Service (OMIS) is a flexible business tool enabling direct communication between you and our commercial teams. It opens the door to a wealth of practical support, advice and key market information.

OMIS guides you through the process of breaking into a new overseas market, providing all the help you need at every stage, from initial research to making your first market visit.

At the heart of the service’s success is the unique value of our UK Trade & Investment staff in our Embassies: local language skills, local market knowledge and extensive political and commercial contacts.

• Pre-Market Support – tailored market research; business partner identification; one-to-one partnering; door opening; next-step advice.

Having UKTI on board gave us much more gravitas, and I was pleasantly surprised by how easy it all was.”Paul Merrifield, International Business Manager, LighterLife

Doing business in France 5

For more informationPlease email: [email protected] or call: +33 (0)1 44 51 34 00

To find more about our services and to contact your local International Trade Adviser, look at the “How we can help” page at: www.ukti.gov.uk

The time and effort that we saved by joining a scheme such as OMIS allowed us to focus our energy on core aspects of running and growing a business in challenging times.”Alan Cooper, Freestyle’s founder and Head of Business Development

From design consultants to legal consultants, global demand for exported goods and services is forecast to grow by over 30% during the next fi ve years.* Make sure you’re placed to profi t.

Get export ready with expert guidance; visitukti.gov.uk/great or call 0800 093 1556

*Source: IMF April 2013


France is one of the largest civil and military aerospace markets in the world, home to Airbus, Dassault, Snecma, Eurocopter and, importantly, home to their complex supply-chains.

The Aerospace Sector in France

Market overview

The French aerospace industry has an annual turnover of around 38 billion euros. Around 76% of this turnover is in the civil sector and 24% in defence. Prime Contractors account for 53% of revenue, equipment manufacturers 29%, and engine manufacturers 18%.

The order-books had been slower to fill up until 2010, but a spectacular intake of orders over the last year (+34%) means that there is now a backlog big enough to keep the industry going at present production levels for the next seven years. All the sub-sectors, from airframes, engines, avionics to interior equipment, are present in the market and very busy. The aerospace supply-chain is under pressure to deliver on time,

to be ever more competitive, and to source outside the euro-zone. This represents an opportunity for British suppliers who can demonstrate that they can provide high quality, keen pricing and reliability.

Key opportunities

• The prime contractors Airbus, Dassault, ATR, Eurocopter and Snecma are all moving management of procurement down their supply-chains and this means new opportunities.

• Airbus is ramping up industrial production of the A380 and rapidly developing the A350 XWB and the A320 “Neo”. Airbus and their supply-chain are keen to find the most competitive quality suppliers available.

• Dassault Aviation manufacture not only military aircraft but also their range of Falcon Business Jets (63 deliveries in 2011) and they are increasingly involved with UAVs.

• ATR is a Franco-Italian JV based in Toulouse producing Regional Turboprops which are increasingly popular as fuel prices increase. They won 157 orders and 79 options in 2011 and cater for around 80% of the market for this type of aircraft.

• Eurocopter is now the world’s biggest producer of civil and military helicopters. They delivered 503 helicopters last year.

• SAFRAN is the holding company for Snecma and Turbomeca (engines), Messier Dowty (landing


Aerospace approvals are well understood in the industry but individual audits must be expected.

You should not to become discouraged with the difficulty of selling in France. There is an assumption that there will be a prejudice towards French suppliers; whereas any potential supplier who is reliable, competitive and delivers quality products will be taken very seriously. The industry faces global competition and must find the best suppliers.

gear), Aircelle (nacelles) and many others. They delivered 1308 CFM 56 engines (Snecma and GE) and 922 helicopter turbines from Turbomeca.

• 17% of the French industry turnover is reinvested in R & D. There is a big demand on research and technology; this will increase over the next few years with a demand for quieter, cleaner and more fuel-efficient aircraft.

Getting into the market

It is important to understand the aerospace supply-chain and to target the right tier for entry. Selling to the majors is becoming increasingly rare as procurement control and management move down to the lower tiers.

To commission research or for general advice about the market, get in touch with our specialists in country – or contact your local international trade team.

Alastair Roberts, British Embassy Paris.T: +33 (0)5 57 22 2119 E: [email protected]

Catherine Cestari, British Consulate, Bordeaux.T: +33 (0)5 57 22 2114 E: [email protected]

Trade Press

AIR & COSMOS1 avenue de la République 75011 PARIST: 01 49 29 32 00 www.air-cosmos.com

The only French language aerospace trade magazine, published weekly and widely read throughout the aerospace industry. The web site is also informative with press releases, latest news, world trade shows, market analysis etc.

INDUSTRIE ET TECHNOLOGIES12-14 rue Médéric 75815 PARIS Cedex 17 T: 01 56 79 41 00 F: 01 56 79 45 27 E: editions@industrie-

technologies.comwww.industrie-technologies.com

Trade Fairs

SALON INTERNATIONAL DE L’AERONAUTIQUE ET DE L’ESPACE (Paris Air Show) Where: Paris When: 17 -23 June 2013 www.salon-du-bourget.fr/en

Trade Associations

GIFAS – Groupement des Industries Françaises Aéronautiques et Spatiales8 rue Galilée 75116 PARIST: 01 44 43 17 00 www.gifas.asso.fr

French National Aerospace Trade Association.

Monthly magazine (10 issues/year). General manufacturing technology magazine read by design and production engineers.

L’USINE NOUVELLE12-14 rue Médéric 75815 PARIS Cedex 17T: 01 56 79 41 00 F: 01 56 79 42 34 E: [email protected] www.usinenouvelle.com

Weekly manufacturing technology magazine which is widely read and passed around. It is almost always on the table in companies’ visitor waiting-rooms.

How To Contact Us

UK Trade & Investment British Embassy35 rue du Faubourg Saint-Honoré75383 Paris CEDEX 08, France

www.ukti.gov.uk


France is the second largest producer in Europe, after Germany, and the fifth largest in the world. In terms of sales, it is the fourth largest market in Europe after Germany, the UK and Italy. It is home to 16 domestic and international carmakers, as well as 315 component manufacturers.

Automotive Industry in France

Market and Main Players

The vehicle production industry employs over 170,000 people, compared with 150,000 at the beginning of the decade, and generates an average annual turnover of EUR88bn. Recent estimates from the OICA have shown that automotive production in France increased nearly 2.9% y-o-y to 2.29 million units in 2011. Domestic groups PSA Peugeot Citroen and Renault dominate the sector (road and sport), nevertheless foreign carmakers such as Ford Motors, Volkswagen and Opel also have their share of the market.

Production in France

There are substantial production facilities in France, including 15 terminal plants. Most vehicles produced in France are city cars, saloon cars and utility vehicles, largely destined for export. Entry level cars are generally produced in countries where production is cheaper and are imported. France is also home to major tier one suppliers such as Michelin (tyre manufacturer), Faurecia (seat manufacturer) and Valeo (braking, thermal, and electrical systems). Many manufacturers cite the ‘quality of the automotive infrastructure’ as a reason for their presence in the country.

Green cars

Manufacturers have shown significant development of eco-friendly technology. France rolled out a car-sharing plan in September 2011 in Paris called Autolib, which saw some 3,000 EVs being made available to the public. The automotive plan launched by the governement in summer 2012 to reinvigorate the French car industry placed a large emphasis on helping develop eco-friendly technologies, an area where France sees itself as having a competitive advantage over its main competitor Germany.


After market

Car ownership rates are relatively high with 600 vehicles per 1000 people, creating a large market for parts and accessories. The market is now the fourth largest in the EU after Germany, the UK and Italy.

Motorsport in France

The French Motorsport sector is worth an approximate EUR1.5 billion, considerably less than the UK but significant nonetheless. Rallying dominates the sector, followed by single seater racing, Offroad and Sportcar racing. France is in negotiations to hold a Formula 1 race again.

Distribution Channels

Automotive component distribution is carried by three main categories of actor:

• Carmakers themselves who supply “captive” spare parts, over which they retain a monopoly

• Component manufacturers who distribute 1st and 2nd tier parts to the carmakers

• Distributer-stockists who supply garages and auto centres (Groupauto and Autodistribution are the two market leaders)

Trade Fairs

Mondial de l’automobileWhere: Paris, every two yearsWhen: Sept-Oct 2014 www.mondial-automobile.com

Equip’AutoWhere: Paris, every two yearsWhen: 16-20 October 2013 www.equipauto.com

Trade Press

LE JOURNAL DE L’AUTOMOBILEWeekly reference magazine for automotive professionalswww.journalauto.com

Trade Associations

CCFA (le Comité des Constructeurs Français d’Automobiles)2, rue de Presbourg 75008 ParisT: 01 49 52 51 00www.ccfa.fr

FIEV (Fédération des Industries des Equipements pour Véhicules)79 rue Jean-Jacques Rousseau92158 SURESNES CedexT: 01 46 25 02 30www.fiev.fr

FEDA (Fédération des Syndicats de la Distribution Automobile)10 rue Pergolèse75016 PARIST: 01 45 00 39 71www.feda.fr

FFSA (Fédération Française du Sport Automobile)32, Avenue de New-York75781 Paris cedex 16T: 01 44 30 24 24www.ffsa.org

Interesting Websites

News and information for businesses in the automotive sectorwww.autoactu.fr

How To Contact Us


Audrey Berte E: [email protected] T: +33 (0)1 44 51 33 29

www.ukti.gov.uk


Strengths

• Sanofi, no 4 in the world, is headquartered in France with other major multinationals

• 250 biotech firms in 2011

• World-class public and private scientific research expertise

• France’s regulatory environment, based on EU directives is considered as one of the most transparent in the world

Biotech & Pharma in France

Opportunities to work with French partners

6 biopharma sub-sectors are sources of many challenges and collaborative opportunities for British R&D organisations:

• Industrialisation of stem cells

• Bio manufacturing

• Biomarkers and personalised medicine

• Biofuels

• And, with the growing convergence between biopharma

and medtech sectors, complex bioprosthesis, together with

• Micro and nano-technologies

• Ageing population stimulating demand for chronic treatment (by 2030, 28% of the French population will be over 65).

• The generics market size is growing, presently representing 70% of prescribed medicines sold with a target of 82%

• UK companies can position themselves with the Research Tax Credit scheme (CIR)

Thank you ever so much for the information about the forthcoming webinars by Biotech Finance. Our companies are always very interested in knowing what’s happening in other markets. I will circulate the information to our network.”Biocity

• €25 bn of production of medicines in France with 210 production sites

• 2/3 of French biotech resources are in the Paris and Lyon regions

• More than 103,000 people employed in the pharmaceutical sector including more than 22,000 in R&D

• 12.5% of sales revenue dedicated to R&D with €5 bn invested in 2011

• The French biotechnology sector ranks number 3 in Europe after the UK and Germany.


Clusters

France is home to world-class clusters which represent about 70% of the French biotech/pharma resources:

Medicen – Cancer, CNS, infectious diseases imaging, molecular & cellular therapies and drug development.

Lyonbiopôle – Infectious diseases: comprehensive approach ranging from diagnostics and prevention (vaccines) up to treatment.

Alsace BioValley/Innovations Thérapeutiques – From genomics to drugs, non-invasive surgery and medical devices.

French pharmaceutical companies

Sanofi – Broad offering of medicines and recombinant vaccines.

Sanofi Pasteur – Human vaccines.

Servier – Drug R&D for major diseases.

Pierre Fabre – Drug R&D and production of pharmaceuticals and skin products.

Biomérieux – In-vitro diagnostic products.

Ipsen – Global biotech specialty group.

Boiron – Homeopathy products.

Other areas of expertise across France are genomics, proteomics, drug discovery and delivery, vectorisation, gene and cell therapy diagnostic, recombinant vaccines and proteins, provided by leading and innovative companies, SMEs and start-ups.

Key governmental organisations and trade associations

French Research Ministry – Governmental organisation in charge of implementing regulations and legislation involving research.

French Health Ministry – Governmental organisation in charge of implementing regulations and legislation involving health.

ANSM (ex Afssaps) – The French National Agency for Medicines and Health Products Safety supervises innocuousness of all healthcare products and their compliance with European regulations.

LEEM – Main association of French Pharmaceutical companies.

France Biotech – Main association of French Biotech companies.

How To Contact Us

UK Trade & Investment British Embassy35 rue du Faubourg Saint-Honoré75383 Paris CEDEX 08, Francewww.ukti.gov.uk

John Hall, Senior Trade Advisor [email protected] T: +33 (0)4 72 62 99 55

Anne-Marie Coffy, Project Manager [email protected] T: +33 (0)4 72 62 99 60

Key Players

There are numerous organisations and key players in France focused on a wide range of health and life science sectors/sub-sectors, activities and services.

The Biotech & Pharma UK Trade & Investment team in Lyon can provide tailored market intelligence, advice on appropriate events and support with introductions to privilege contacts.

Thank you for keeping us informed of press activity, it is much appreciated” Clean Air Technologies

The meetings you organised were successful, thank you”Physiomics


Building & Construction in France

With 33 million houses and apartments, 2/3 of which were built before 1975 (the year thermal directives were adopted), and 80 per cent of buildings which do not comply with the environmental standards, the renovation market for energy efficient buildings remains a viable opportunity for British companies. The dynamism of the renovation and repair activity also generates demand in housing maintenance and the ‘Do-It-Yourself’ (DIY) products sub-sectors.

In 2011, the building sector counted 347.000 companies (and an additional 16.000 in the French overseas territories; 327.000 with less than 10 employees, and only 200 with over 200 employees), 1.180 M employees for €129 billion worth of works (exc. VAT) – €58 billion in new builds (215.000 private housing / 206.000 social housing) and €71 billion in the renovation market. The three leading companies are: Vinci, Bouygues and Eiffage.

What’s next

The ‘Grenelle de l’Environnement’ (similar to the Green Deal) found that reducing residential and commercial buildings’ energy consumption must be a priority for environmental policy because they are the biggest energy consumers in France. Its original goals were to make all new buildings consume less than 50 kWk/m2/year (initially by 2012) and become energy neutral or positive by 2020. This new set of thermal regulations “RT2012” replaces the previous RT2005. The energy efficiency market should remain stable until 2014, with a turnover expected to rise from 47 per cent to 330 per cent.

Sustainable construction is increasingly seen as an essential area of development for the French industry.


Key opportunities

• Grand Paris (large developments in infrastructure/transport. The government has set an related objective of 70.000 housing units to be built per year)

• Energy efficiency, including positive energy buildings, and opportunities in the timber house market

• The 2015 law on accessibility (public and residential buildings) will create opportunities in the sector in order to comply with the required standards

• Public tenders are a good source for projects in the sector

The route to market

• To enter the market, British building products manufacturers need to be CE-certified. CE certification is not a mark of quality, but proof that a product has met performance requirements

• France imposes rigorous norms and regulations; UK companies should obtain these prior to entering the market, as most distributors will not reference products which do not comply

Trade Fairs

BatimatWhere: ParisWhen: 4-8 November 2013www.batimat.com

MIPIMWhere: CannesWhen: 12-15 March 2013www.batimat.com

IntermatWhere: ParisWhen: 20-25 April 2015http://en.intermat.fr

Trade Associations

Fédération Française du Bâtiment33 avenue Kléber 75784 Paris Cedex 16 T: +33 1 40 69 51 00F: +33 1 45 53 58 77

The FFB represents 57.000 member companies, of which 42.000 are tradesman.

Representing two-thirds of the Building industry’s turnover of almost 117 billion euros, FFB members employ two-thirds of the sector’s 947.000 employees.

The ‘Grenelle de l’Environnement’ found that reducing residential and commercial buildings’ energy consumption must be a priority”

How To Contact Us


Construction and Building TeamT: +33 (0)1 44 51 34 00

www.ukti.gov.uk


Creative Industries in France

The classic signposting of support for Cultural Industries sectors (film, radio, television and book publishing) and performance should these days take account of the convergences taking place between the creative industry sectors and their use of digital content and services.

A global view of regional creativity and innovation should group together culture, economy and technology.

The Creative Industries are a driving force behind economic development. Highly concentrated in urban centres, creative jobs have developed enormously over the last decade, meeting the challenges of the digital era. Representing 45% of jobs throughout the country, most activities are centred in the heart of the Parisian metropolis.

There are 363,000 creative industry jobs within the Ile-de-France area (representing 5.5% of employment in the region). This covers a wide range of functions, which are more

or less skilled or creative. 44% of those working in the sector have a creative profession. These include journalists, technical production assistants in films, television and the performing arts, advertising executives, technical assistants in the graphic arts, publishers, architects, advertisers, fashion and decoration (including designers, stylists and graphic designers), dramatic artists and dancers, musicians, photographers etc.

The territories are very creative – mostly in Paris, but also in a few isolated communes such as Disneyland. Employment in the Creative Industries represents 9% of all jobs and 57% of workers having a creative occupation.

Outside of the Ile-de-France, the Rhône-Alpes (Lyon region with 44,700 workers) and Provence-Alpes-Côte d’Azur (PACA with 37,000 workers) are the 2 French regions with the highest concentration of creative workers and organisations.

Distribution of new creative business across the Greater Paris area (in %)

Paris

Seine & Marne

Yvelines

Essonne

Hauts de Seine

Seine St Denis

Val de Marne

Val d’Oise


Digital content and services strongly supported by Government, but…

There have been various measures implemented to support the development of these growing sectors but France still needs to tackle a number of challenges. Changes relating to the digitisation of content, the Internet’s role in the market, and evolving consumer patterns and practices have given

rise to other needs, such as mobility and instant access. The sector needs support of skills, a response to the needs of new creative businesses to develop the potential of these industries at international level. put enough emphasis on policies encouring innovative and business activities, nor regarding French policies on the commercial aspect of the industry as a whole. Furthermore, export and intellectual property rights management do

not receive the necessary attention, which is focused on the cultural aspect of the sector.

While previously dealt with at a national level, policies are becoming regionalised. The government does not deal with the Creative Industries as a whole but rather the various sectors within it: film, radio and television, performance, books, design, music, and more recently, arts and crafts.

Cinema, Audio-visual, photography, music

Live performance

Publishing(books, press)

Advertising/PR

Video game & software publishing

Architecture

Jobs in the Paris area (in %)

Live performance

Advertising/PR

Publishing (Books, press)

Video game & software publishing

architecture

Cinema, audio-visual, photography, music

Jobs in the regions (in %)

How To Contact Us


Sophie de Bodisco Senior Trade Adviser Creative, Digital and Media IndustriesT: +33 1 44 51 33 41E: [email protected]

Main Clusters

North of France: Lille – Plaine Images (Cluster dedicated to Digital Creativity and Innovation) Video games, animation, audiovisual, multimedia and new technologies www.plaine-images.fr

Paris – Cap Digital (cluster dedicated to digital content and services) 200 teams in R & D – strategic surveillance and technology watch and analysis – business coaching 700 members, 620 SMEs www.capdigital.com

Paris: Capital Games (cluster dedicated to video games, middleware and publishing) www.capital-games.org

Rhone Alpes area: Lyon– Imaginove (cluster dedicated to the image industries) Creation, production and distribution of content, analysis trends in the entertainment, VOD, online videogames, mobile phones apps etc 650 companies, 23 R&D labs www.imaginove.com

There are 363,000 creative industry jobs within the Ile-de-France covering a wide range of functions which are more or less skilled or creative”


Defence & Security in France

France and the UK are the two leading European countries and account for approximately two thirds of total European spending (approx. €43 billion for the UK and €39 billion for France).

Overview and opportunities

France’s commitment to its’ defence and security sectors is on a par with most G8 countries (UK included), with counter-terror, cyber, surveillance and tracking (both covert and overt), anti-fraud software and critical infrastructure protection (both

physical and electronic) proving key priorities. The police and gendarmerie are well plugged into international forums, with the French police keen to establish links with other European police forces/organisations (including the UKs HOSDB) to explore areas of interoperability and share testing

standards. Within the French defence and security market, the UK is seen, on the whole, as a centre of excellence for defence and security products. Buyers and end-users are, as a general rule, open to receiving information/samples on innovative and technologically advanced products.


Trade Associations

GICAN (Groupement des industries françaises de défense navale)Address: 60 rue de Monceau,75008 ParisT: +33 (0)1 56 59 15 20/19E: [email protected] www.gican.asso.fr

GICAT (Groupement des industries françaises de défense terrestre)Address: 15 rue de l’Amiral Bruix, 75015 ParisT: +00 (0)1 44 14 58 20www.gicat.com

UNION DES ENTREPRISES DE SECURITE PRIVEESAddress: 24, rue Firmin Gillot75015 ParisT: +00 33 1 53 58 08 17 E: [email protected]

Trade Fairs and Events

EuronavalWhere: ParisWhen: 2014 (tbc)www.euronaval.fr

ExpoprotectionWhere: ParisWhen: 2014 (tbc)www.expoprotection.com

EurosatoryWhere: ParisWhen: 16-20 June 2014 www.eurosatory.com

MilipolWhere: ParisWhen: 19-22 November 2013 www.milipol.com

How To Contact Us


Xavier Owen, Senior Trade Adviser T: +33 1 44 51 32 80 E: [email protected]

Amelie Rives, Deputy Trade AdviserT: +33 1 44 51 34 04E: [email protected]

Procurement

French administration has a rolling programme of modernisation with all associated work carried out through public tenders. There have been major developments in procurement over the past few years with an increase in the number of non-French suppliers bidding for and securing public tenders.

On 27 November 2012, the French Defence Minister unveiled a package of 40 measures in a support plan for small and medium size companies in the Defence sector. Key measures include the prioritization of SMEs in allocating contracts below €15,000.

On 29th April 2013, the French government released its White Paper on Defence and National Security. It calls on a limitation of expenditures and envisages a significant reduction of staff in the next 5 years. The nuclear dissuasion strategy remains unchanged while intelligence and cyber security become new priorities.

Working in France

It is our experience that UK companies will need to form working partnerships with established French companies in order to stand the best possible chance of winning business over here. It is essential to build up relationships with contacts in France and patience is key (not uncommon to take up to 12-24 months to achieve results). UK companies need to remember that France is a developed market and as such is already very well equipped making selling into France that much harder than say a developing market.


Education in France

Basic facts and figures (2012):

• 12,7 million students (more than half are in primary school)

• 65,000 schools: • 54,000 primary schools• 7,000 secondary schools• 4,000 high schools

• 1 million staff

• 850,000 teachers• 125,000 administrative and

support staff• 68,000 teaching support staff

• State education in France is free, politically and philosophically neutral and secular. The system is decentralised and responsibility is delocalised.

• The number of 15 yr olds in difficulty went up from 15% to 20% over a ten year period.

• 120,000 young people leave school without a qualification every year.

• 40.7% of working class children obtaining degree against 87,6% of children of “cadres” (employees of a certain status).

• The French school day at primary level is 6 hours – the longest in the European Union.

• Out of all the OECD countries, France comes last in terms of support given to students in schools.

The 2012 budget:

• The 2012 state education budget is €61 billion (+0.9% from 2011) 1/5th of total government spending.

• The average spending per pupil was €7,560.

• €10 million worth of funding is being allocated to developing Digital Learning through ICT in schools in 2013, this will go to developing pedagogic ICT resources for teachers and students, digital school manuals, virtual learning environments and distance learning.

Total education spending in 2011 was

€134,8 billion (7.0% of GDP)

€18,041 on for primary

€29,435 for secondary


Is it a pedagogical resource or more general equipment?If you are targeting state education and want to sell direct to schools, you should contact the Academies. They are the delocalised representatives of the Department of Education in the regions and are responsible for supplying schools with pedagogic equipment. Not to be confused with the local authorities – commune, department or region depending on whether the school is at primary, secondary or higher level – who is responsible for supplying general equipment (e.g. furniture) to schools.

Policy objectives and upcoming changes:

• The 2011-2012 objectives are to increase numeracy, literacy and foreign language acquisition with a major focus on English Language Learning.

• Changes for the 2012 academic year: the summer holidays have been shortened and the half term (Oct) lengthened by a week. 1,000 new teaching jobs were created in primary (France has the lowest OECD rate of school support).

• In September 2013, the school week will go back to 5 days with a choice of Wednesday or Saturday morning school.

Getting into the market:

Is your product or service aligned with the French curriculum?• Determine whether your

product is in line with the French curriculum by viewing the curriculum online on www.education.gouv.fr.

• Alternatively, consider presenting your product to the Ministry of Education to get their feedback.

• If your product is digital, there is a Ministry accreditation scheme which recognises a resource as “of pedagogic interest” (reconnu d’intérêt pédagogique). Your product is then referenced online in a resource database for teachers and listed on the State Education website Eduscol. More about how to get accredited on: http://eduscol.education.fr/cid56171/presentation.html

Is your product or service adapted to the local market and available in French?• Consider researching local

expectations and needs.

• Consider presenting your product to teachers or other educational professionals.

• It is essential to have French documentation and to conduct initial calls and meetings in French. Consider translating your company and product presentation, website and any teacher notes.

• Consider targeting private or international schools initially. Fabert publish an online directory of international and private schools on www.fabert.com.

How To Contact Us


Creative and Consumer TeamT: +33 (0)1 44 51 34 00E: [email protected]

www.ukti.gov.uk


Education in France (continued)

Distribution channels – central purchasing agencies

For large orders, academies and local authorities will purchase via public tenders:• Responding to public tenders

should be part of a long term considered strategy.

• Developing relationships with local partners can help, notably to find out about opportunities upstream and as a local partner can respond on your behalf.

• Consider setting up alerts on the tendering websites.

• Be prepared to place a bid in French.

There are two main public purchasing agencies, UGAP and CAMIF Collectivités. They may have a dominant position, they are by no means the only suppliers.

The channels of distribution are fragmented and decentralised in order to reach down into the market place. For many suppliers catalogues and mail order are a means to reach each educational establishment.

UGAP www.ugap.frThe Union des groupements d’achats publiques is the central public purchasing organisation and the largest supplier of school equipment in France. They distribute to a wide range of clients including local authorities such as state services, public organisations, hospitals etc. publishing tenders for office and school equipment, computer systems and hospital equipment and furniture for the public sector. In 2009, they registered €152 million of school equipment orders (+3.9% more than in 2008).

In order to become an UGAP supplier, companies should reply to the tenders published regularly on the JOUE (Journal Officiel de l’Union Européenne or Official Journal of the European Union – OJEU) and BOAMP (Bulletin Officiel des Annonces des Marchés Publics) www.boamp.fr.

CAMIF COLLECTIVITES www.camif-collectivités.frCAMIF was established to supply competitively priced goods to civil servants, including the teaching profession. CAMIF Collectivités, was established in 1983 as the B2B subsidiary education specialists of CAMIF. Since 2009 they are affiliated with Manutan Group which is present in 20 European countries. CAMIF Collectivités distribute to collèges, lycées and higher educational establishments.

Educatec-Educatice (Education ICT trade and consumer show – equivalent to BETT) Next date: 21-23 November 2012 Pariswww.educatec-educatice.com

Trade Press:

• boivigny.com aimed at education professionals – news and analysis of the education sector.

• educationmagazine.fr aimed at parents and teachers – news coverage of secondary and high school.

• planete-enseignant.com aimed at education professionals – non official pedagogic platform.

Trade Fairs:

Expolangues (Language learning trade and consumer show)Next date: 6-9 February 2013 Pariswww.expolangues.fr

AGEEM (the general association for nursery school teachers that organises an annual conference including a small trade show (approx. 70 exhibitors) in a different town every year) Date: 3-5 July 2013 in Chaumontwww.ageem.fr

Kid Expo (Toys trade and consumer show)Next date: TBC in October 2013 Pariswww.kidexpo.fr

• lamaisondesenseignants.com aimed at teachers – news covering programmes, exams, jobs, classroom materials.

• tice-education.fr aimed at ICT teachers, headstaff, kindergarden to university – community website promoting digital learning.

Consider advertising in the annually published Education Guide and online B2B directory www.mon-annuaire-pro.com produced by the organisers of the Educatec-Educatice trade show.


Design Giftware in France

Distribution

The four main channels of distribution are:

• Design boutiques and showrooms• Concept stores• Department stores• Internet

Giftware boutiques propose small products (design gadgets, small pieces of furniture and lighting) whereas specialised design stores or “pure players” showcase renowned designers and sell at higher prices. There are a few concept stores, mostly located in Paris, who offer exclusive limited edition products.

The latest are often the trend setters and benefit from high visibility: private openings, fashionable brands showcased and press coverage etc, attracting young international customers with high income, who are image conscious and trendy. Internet platforms are also pure players offering not only a large choice of products, but all associated services (availability, speed of delivery, free return and exchange).

Giftware across the regions is also sold by small retailers situated all over France, selling a smaller range of design giftware. Garden centres

such as Truffaut are selling more and more ranges of design giftware (birdhouses, outdoor lamps, and flower pots). Furthermore, palaces, historic houses, museums and art galleries have gift shops selling reproduction giftware and some design giftware.

France hosts some of the most international and prestigious trade fairs and events in the world. International buyers and journalists attend such events helping to promote not only France but all the new international talents present.

According to a recent study published in October 2012, 76.5% of French consumers are willing to buy a “Made in France” gift this Christmas. 50.2% of them (35 years old, medium-high income) are ready to pay a higher price (+10% for 30% of them) for such a gift. Moreover an extra 26% of the lower income French population would consider it depending on the product.


Design Giftware in France (continued)

Weaknesses

The British definition of Creative Industries has inspired a large proportion of cities around the world. Paris and London are competing not only against each other but also against the global industry, and it is still difficult to develop international partnerships or common projects. France is now also facing newcomers from emerging countries such as South Korea, Brazil, Taiwan, Malaysia, Indonesia and Russia.

Geographically, the market is highly concentrated. Most of the offers in this sector are found in the largest cities – Paris leads the sector with most of the jobs located in the capital city. The Paris Ile-de-France region is the “hub” for this market. Most of the design giftware shops are in Paris, generally located in trendy neighbourhoods such as Le Marais, Les Halles and Bastille.

The market is quick-moving and in constant evolution. Products are copied or become “popular” quickly, thus losing their uniqueness. Customers are looking for new products, new ideas and always at fair prices. Companies should become more cost-effective in developing competitive pricing strategies and offering new and sophisticated products.

Pricing goods is becoming extremely difficult. Constant discounts, perpetual sales and daily bargaining is common. Smaller shops are stuck with “recommended retail prices”, which leaves them a small profit margin, which is further shunk by high transportation costs (lighting, small furniture) and barely-sustainable minimum order schemes.

with smartphones or tablet devices. Opportunities also exist in pricing goods: small design giftware prices start at less than €20; then €20 to €49, €50 to €99 and over €99.

French consumers are slowly becoming more conscious of their planet. So without being too “Green”, the Eco-design concept is well received. Products in cork, wood, paper and cardboard, felt, recycled pieces of clothes, seat belts, tyres and recycled plastic elements are offered by most shops.

Products are now associated with services (ease of access, possibility of price comparison, guidance and comments from other customers). Consumers are looking for something different, intelligent, sometimes fun (British humour is always well received) to offer but they are still fussy about quality.

The “Pure players” concept is a very popular way to buy Design Giftware. Having your products sold over the Internet is a good way to enter the market. More and more sites are specialised in design Giftware and have good visibility.

These shops have to become “click and mortar”: offering products both in shops and online.

Opportunities

The Design Giftware sector welcomes products which have an added-value. The product should be intelligent, useful and functional, but also with a touch of humanness.

There is a very large offer in lighting, from very functional to more extravagant but always with a “design look”: simple, contemporary, different, useful and fairly priced. Lighting products offering energy-saving are in demand. Eco-friendly lighting products are also in demand. A good example is the light bulb from British company “Plumen” (http://plumen.com), which is seen as simple, elegantly designed, ecological and useful.

For small objects as mugs, coffee cups, tin boxes, and shopping bags, the vintage, or retro look is very trendy. At the same time, consumers are also looking for fun, colourful, useful, portable high-tech accessories that are compatible


Finally furniture shops are also developing ranges of smaller design accessories, decoration accessories and giftware (Fly, Alinea, Graine d’intérieur etc) at a lower price.

Threats

Threats are the existence of parallel markets such as flea markets, re-use (second-hand) or recycled products. Good products are copied quickly - it takes between 6 months to 1 year for a more complicated or technical product to be copied.

Online shopping has a very aggressive pricing policy and offers immediate availability and very quick delivery.

All brick and mortar players in the sector have to invest time and money to create a second offer for their products over the Internet.

Changes in consumer patterns and practices have given rise to other needs (mobility, instant access); new jobs and new markets have emerged, bringing with them a restructuring of the players around these issues. What is required is to develop new skills, new concepts, and using new materials and develop the potential of this sector at an international level.

How To Contact Us


Sophie de Bodisco, Senior Trade Adviser Creative, Digital & Media IndustriesT: +33 1 44 51 33 41 E: [email protected]

www.ukti.gov.uk

Department stores offer a range of selected goods (e.g. Galeries Lafayette and Printemps) but their stores are often only found in large cities – so they sell their products over the Internet to reach far-off customers.

IDEATIdées, Design, Evasion, Tendances Ideas, Trends, Designwww.ideat.frWebsite available in English8 +1 issues per yearCirculation: 83,523

INTRAMUROSInternational Design Magazinewww.intramuros.frWebsite available in EnglishBilingual magazine (French/English)6 + 2 issues per yearCirculation: 60,000

Trade Federations/Associations

FEDERATION FRANCAISE BJOCFédération française de la Bijouterie, Joaillerie, Orfèvrerie et Cadeau(includes Giftware)www.bjop-france.com

ATELIERS D’ART DE FRANCEwww.ateliersdart.com

OBSERVEUR DU DESIGNwww.apci.asso.fr

FEDERATION NATIONALE ARTISANALE DES METIERS D’ART ET DE CREATION (FNAMAC) – Craftmakers /designerswww.fnamac.com

Trade Fairs

The bi-annual design world super-fair known as Maison et Objet is described as one of the most important European events for interior design with Mobile in Milan. You will find a huge collection of innovation and talent all in one place.

Maison et Objet www.maison-objet.com (also available in English)Paris Nord VillepinteWinter: 18 to 22 January 2013 / Autumn: Around 6 to 10 September 2013Trade only – International – Over 3,000 exhibitors

January 201286,000 visitors (France 46 000, overseas 40 000); Around 3 500 journalists

September 201268,000 visitors (France 38 000, overseas 30 000); 2,910 journalists

Trade Press

ELLE DécorationHigh-end interior decorationwww.elle.fr/Deco10 issues per yearCirculation: 198,407


Energy in France

Conventional: Natural gas accounts for less than 1.5% of the total energy mix in France. It amounted to 6.1 TWh in 2012, which represents a further decrease from 2011 levels. While the gas market opened to competition in July 2007, GDF remains by far the main supplier with 90% of the market share (figures accurate as of June 2012). Total, through Total E&P France, operates 93% of natural gas production in France. In 2011, coal accounted for 3.7% of the total energy mix (9.8 Mtoe), representing a 14.2% decrease compared to 2010. This reduction is due mainly to a decreased dependence of coal in power plants. Coal today contributes to 2.5% of the total production of electricity with nearly 13Twh in 2011. The consumption

of oil and petroleum products in the energy mix, whether in refineries or power stations, also dropped 1.6% this year.

Nuclear: EDF – the country’s main electricity generation and distribution company – manages the country’s 59 nuclear power plants. In 2012, France’s nuclear safety agency (ASN) released a report announcing a sweeping safety upgrade to all the country’s reactors. Following François Hollande’s victory in the 2012 Presidential Election there may be a partial nuclear phaseout in France, with his Socialist party in favour of closing the oldest 24 reactors by 2025. Fessenheim, located near the German border, is widely thought to be the first power station to close.

Renewables: In November 2008 the Environment ministry launched the Grenelle Environnement, two packages of environmental protection laws embodied in an action plan of 50 operational measures stretching across the Renewables sector. The aim is to generate an extra 20Mtep from renewable energy by 2020 with renewables accounting for at least 23% of total production by 2020 and to reduce the share of nuclear to 50% of electricity production.

Wind: After the UK, France is Europe’s second largest potential source of wind power. In 2011, France produced 11.9 TWh from wind power (2.5% of the total production of electricity). In July 2011, the government launched a tender for the construction of

France’s energy production consists at present of 77% nuclear energy, 9.5% conventional (oil, gas, coal, etc), and 13% renewable (figures accurate as of December 2012).


5 offshore wind farms totaling 6000MW. Public authorities support the wind power sector through a number of incentives aimed at boosting its development such as feed-in tariffs, tax credit, and attractive financial measures. France is well placed to support the development of the wind power sector as there are already 170 supply chain companies ranging from construction to installation, exploitation and maintenance.

Solar: France is the 5th potential source of solar power in Europe and a leader in terms of photovoltaic power capacity, with 2643 MW connected to the grid in 2011. At the end of 2010, France also represented 7% of the European solar thermal power market and had a dynamic solar thermal industry, with many companies manufacturing sensors and other solar products. France also made thermodynamic solar energy a national research priority. A number of French companies already operate in this sector with CNIM and its subsidiary Bertin Technologies being the largest players.

Hydro: France relies heavily on hydro-generated energy. In 2011 this sector accounted for 12 to 14% of the total production of electricity and generated approximately 69 TWh per year, making it the second source of electricity after nuclear power. The installed capacity currently represents 25 400 MW. France has a very mature and long established hydro-electric industry. Both large multinational groups and SMEs operate in this sector and cover all aspects, from hydraulics to civil and electrical engineering and environmental sciences.

Marine: According to EDF Renewables, France comes second to the UK in terms of tidal and wave potential. The tidal potential stands between 2.5 and 3.5 GW while the tidal turbine potential stands between 10 and 15 GW. The marine industry is mature and well established, featuring both large groups and smes, as well as industrial clusters in Brittany and the South East.

Bio-energies: In a country with the largest forest area in Western Europe, biomass stands as the first source of renewable energy. Biomass accounts for 63% of the renewable energy produced in France. Wood accounts for 46% of this mix (10.1 Mtoe), biofuels for 11% (2,3 Mtoe), renewable urban

Trade Fairs

ThétisWhere: BrestWhen: 10-11 April 2013 (Annual)www.thetis-emr.com

SeatechweekWhere: tbcWhen: 13-17 October 2014www.seatechweek.com

Trade Associations

SER (Syndicat des Energies Renouvelables): www.enr.fr

ADEME (Agence de l’Environnement et de la maîtrise de l’énergie): www.ademe.fr

FEE (France Energie Eolienne): www.fee.asso.fr

FRANCE HYDRO ELECTRICITE: www.france-hydro-electricite.fr

UNION FRANCAISE DE L’ELECTRICITE: www.ufe-electricite.fr

ASSOCIATION FRANCIASE DU GAZ: www.afgaz.fr

How To Contact Us


Xavier Owen, Senior Trade Adviser T: +33 1 44 51 32 80 E: [email protected]

Amelie Rives, Deputy Trade AdviserT: +33 1 44 51 34 04E: [email protected]

waste for 6% 1,2) and biogas and crops residues for 0,6 Mtoe. The total energy produced by biomass only represents 9,5 MToe today but this figure could reach up to 17,9 MToe in 2020 should the Grenelle objectives be met.

Business tips: Knowledge of the French language and culture is extremely well received. It is essential to build up relationships with contacts in France and patience is key (not uncommon to take up to 12-24 months to achieve results). It is also essential to have documentation in French and to conduct initial calls/meetings in French. Needless to say, working with a well-connected French agent/representative will be key.


Environment & Chemicals in France

Environment: key facts and figures

Air• 11 Mt of pollutants per year are

emitted in France by human activities: industry, automotive sector, domestic activities and agriculture.

• In France, there are 38 recognised associations that measure the air quality through 2200 control sites.

Water• Out of the 34 billion m3 volume

in France, 6 billion are used as follows: 48% is used for irrigation, 24% for domestic use, 22% for energy production and 6% for the industry.

• In 2008, 4.1 billion m3 of water were invoiced to households.

• The distribution network of drinking water has 906 000 kilometres of pipes. Around 22% of the volume distributed is lost through leakage.

Polluted sites and soils• The contamination of soils is the

major preoccupation for 60% of the European population.

• In 2008, the market for the rehabilitation of polluted sites and soils represented a turnover of €626 million.

Waste management• 770 million tonnes of waste were

produced in 2009.

• In 2009, the spending for the waste management represented €12.6 billion and the investment in the sector was €1,37 billion.

Climate change• Signatory countries of the Kyoto

protocol committed themselves to reduce their greenhouse gas emissions (of which CO2) – GHGE – by 5% between 2008 and 2012. France exceeded the objective of stabilisation in 2010 compared to 1990. The increase of emissions for transport (+13%) and residential-tertiary sectors (+13%) have been counterbalanced by the decline of emissions in industry (-36%), energy sector (-11%) and agriculture. The objective for 2020 for the European Union and France is a decrease of 20%. By 2050, the target for France, defined by the Grenelle 2, is a 75% decrease of GHGE compared to 1990.

In 2010, the total spending for the protection of the environment in France amounted to €45,7 billion (+3,1% compared to 2009) representing 2,36% of GDP.


Clusters: Axelera, the Chemistry and Environment French competitive clusterwww.axelera.org

Plastipolis, the only competitive cluster for plastics engineering www.plastipolis.fr

Cosmetic Valley, leading cluster in perfumery and cosmetic resourceswww.cosmetic-valley.com

Pharma Valley, Technopôle CBS, cluster for pharmaceutical development and productionwww.pharmavalley.fr

How To Contact Us


Wendy Atkinson, Senior Trade Advisor [email protected] T: +33 (0)4 72 62 99 56

Julie Lebouleux, Project Manager [email protected] T: +33 (0) 4 72 62 99 58

Chemicals: Key Facts And Figures

The French Chemical market is the 5th largest in the world following behind the United States, China, Japan and Germany. Turnover for the Chemical industry was €86.7 billion (in 2011) or 4.4% of sales of the chemical industry worldwide.

Breakdown of turnover:

• Within Europe, France is the 2nd producer after Germany, realising more than 15% of European chemical sales.

• 1st sector exporting in France representing 11.3% of total French industrial exports.

• €38 billion of imports realised in 2007 representing 8.5% of total French industrial imports.

• Total spend for investment was €3.5 billion in 2011 ranking the chemical industry as 2nd of all industrial sectors after automotive.

Organic chemistry 44.1%

Inorganic chemistry 11.1%

Chemical specialty 20.5%

Soaps, perfumes, cleaning products

21.2%

Fine chemicals in pharmaceuticals

3.1%

Key Players In Environment & Chemicals

Main companies:Environment• Veolia Water • Veolia Propreté• Suez – Lyonnaise des Eaux• Saur

Chemicals• Rhodia – Solvay Group• Arkema• PCAS• Isochem• Air Liquide• Total

©Monty Rakusen / Cultura / Getty Images


Food & Drink in France

Exports of beef, cheese and morning cereals rose 23%, 22% and 17% respectively. The UK share of French imports of food and drink is approximately 5.7% by value and the UK is now France’s 6th largest supplier of agri-food products. French per capita expenditure on British food and drink (£23) is higher than that in Spain or Germany.

Retail

The French retail model is based on large sales formats (food and non-food under one roof), discount pricing and low margins. Hypermarkets account for 50.6% of the market, supermarkets for 34.6% and hard discounters such as Aldi and Lidl for 13.4%. The past 2 years have seen rapid growth in “drives” (Click and Collect outlets)

which now account for up to 5% of fmcg sales for some retailers.

Some 78% of food purchasing in France is controlled by grocery superstores. French groups have a strong international position, generating over 50% of their sales outside France, with Carrefour recognised as the world’s 2nd largest retailer. Such groups fall into 2 categories: multiples with integrated warehousing like Carrefour, Casino, Auchan or Cora, or owner-operators benefiting from group marketing and buying such as Leclerc, Intermarché and Super U. Superstore own-label now accounts for approximately 35% of the market by value.

Fine food outlets (Lafayette Gourmet, La Grande Epicerie etc.) account for €3.2 billion worth of sales annually.

Sales of food and drink through e-commerce were estimated at less than €1 billion in 2009. Forty percent of sites are operated by craft producers or local retailers. The only sizeable online retailer at present is Houra.fr, a subsidiary of the Cora group.

French buyers recognise UK expertise in retailing and supply chain management. Suppliers with experience of selling to one or more of the main British grocery retailers should stand a reasonable chance of achieving a listing in France. Buyers at superstore groups or fine food outlets are always keen to consider well-presented, innovative new products that can give them a competitive edge over their rivals.

France is the UK’s second largest customer country for food and drink, with exports of £1.4 billion in 2011, a rise of 7.0% on 2010.


Muslims in France is estimated to be between 5.5 and 6 million and expenditure on halal food reached €4.5 billion in 2011 according to one consultancy.

The expatriate market in France is not as developed as in other countries such as Spain. A number of UK consolidators, as well as French wholesalers, service this sector.

SuperfoodsWith a greater concern for the health-giving qualities of food, so-called “superfoods“ are much in demand. French consumers have recently become aware of the benefits of eating cranberries or drinking grenadine juice. Breakfast cereals containing a high percentage of oats are enjoying good publicity due to their anti-oxidant properties.

Foodservice

Total foodservice sales in France reached €78.1 million (net of VAT) in 2011, an increase of 3.6% on 2010. Sales were broken down into commercial catering (€50.4 million), institutional catering (€19.1 million) and “Ready to go” (€8.6 million).

The commercial sector comprises independent restaurants, restaurant chains and cafés.

The 50 leading French chains posted total sales of €13.6 billion in 2011, a 9% increase on 2010, almost entirely due to the development of fast food formats. Total sales of fast food are believed to have reached €30 billion, an increase of 58% since 2004.

The number of meals consumed outside the home rose by 3.38%, but the average bill fell 2.54% from €8.10 to €7.90. Some 85% of all such meals were priced at under €15.

The institutional sector, i.e. health and education sector, public-sector canteens, represents 85% of all meals served outside the home in France and accounts for 11 million meals per day. It is dominated by

4 major groups (SODEXO, ELIOR (Avenance), COMPASS (Eurest) and SOGERES (Sodexo).

“Ready to go” consists of bakers, filling stations, convenience stores and the like.

Opportunities for UK suppliers

Snacking/”ready to go”With changes in lifestyles and the development of new retail formats, there is a large demand for suitable products in this category. The total snack market in France is estimated by one foodservice consultancy to be worth €35 billion annually. Although sandwiches remain the single largest sub-sector, with sales of €3 billion in 2011, French suppliers have been developing new products offering higher margins such prepared salads or pasta “boxes”.

Organic/free from/vegetarianThe organic food sector was estimated to be worth €4 billion in 2011 according to the trade press, compared to only €1 billion in 2001. Forty-three percent of French people are said to eat organic foods at least once per month. The “free from” and vegetarian sectors are still in their infancy in France, with hardly any French manufacturers making specific products.

Ethnic/ExpatriateThe principal opportunities in this sector in France are likely to be for halal foods. The number of

How To Contact Us


John Gleave, Creative and Consumer Team

T: +33 (0)6 08 96 37 98E: [email protected]

Main trade events

SIAL Date: Paris October 2014 Claimed to be the world’s largest food show. Held every 2 years.www.sial.fr

SIRHA Date: Lyon 26-30 January 2013 Foodservice and fine foodswww.sirha.com

Sandwich & Snack ShowDate: Paris 20-21 March 2013 “Ready to go”/Snackwww.sandwichshows.com


Home Furnishings in France

Furniture

Household consumption of furniture progressed again in 2011 (with an increase of 3% in volume terms, compared to a 1.6% increase in 2010), due mainly to an increase in property sales and a fall in the price of the main superstore value ranges.

The French domestic furniture market was valued at just under €14 billion in 2010. Furniture distribution is dominated by the domestic sector, which represents between 80% and 85% of the market in value terms.

Distribution is very fragmented with almost 7,500 retail outlets in 2009, a figure which has been growing for 10 years due to the increase in the number of new retailers and the expansion of retail parks, among other reasons. Sales are made through almost 20 distinct distribution circuits. Within home furniture, the “Young Home” (jeune habitat) segment (with

retailers including Ikea, Alinéa, Fly, Habitat), and mass market retailers (Conforama, But, among others) account for almost half of the total turnover. Ikea, But and Conforama together held 42% of the market share in 2010. The vast majority of furniture retailers, however, are small independents.

Distribution channelsOver 80% of home furniture is sold via retailers specialised in the following:

• Household Equipment • Young home• Mid-range furniture • Kitchen specialists• High-end furniture • Artisans• Sitting room specialists

Non-specialised distribution:

• Online• DIY stores• Hypermarkets• Department stores

Furniture for the workplace and local authorities is sold via four distinct channels. The retail network is the principal distribution channel (accounting for 40% of sales), ahead of sales through tender, professional distributors and direct sales.

UK exports of furniture to FranceIn 2011, UK exports to France in this sector stood at €80.3 million, a 5% increase from 2010. This puts it in 11th position behind Germany (€1.242 billion), Italy, Poland, Belgium, Spain, Portugal, Romania, Denmark, the Netherlands and the Czech Republic in terms of European furniture imports to France.

In total these imports stood at €4.685 billion in 2011 (an increase of 1% on 2010) with a further €6.384 billion worth of imports from outside of Europe – principally China, Vietnam and Indonesia. This has also increased by 1% since 2010.


More so than in previous years, 2011 was marked by the highly erratic character of the furniture sector with a strong performance between November 2010 and February 2011, June and December 2011 and low points during the months of March, April, May and August 2011. It is difficult for players in this sector, especially mid to high-end retailers, to maintain lasting growth in a market where low prices seem to be the only solution to attract customers into shops.

Tableware

The French tableware market is competitive, not only due to the wealth of French companies, but also due to imports from the Far East and other European countries.

According to the French tableware association CAT (Confédération des Arts de la Table), sales in the tableware sector were estimated at €4.9 billion in 2010, with consumption of table and kitchenware increasing by 0.7% in the same year. Imports totalled €2.6 billion with imports from China accounting for roughly half of this figure. The UK’s offering was valued at approximately €27 million.

As reported in the Nov/Dec 2012 edition of Tableware International, a final decision was made in mid-November on the ‘anti-dumping’ tax whereby the European Commission will impose taxes on Chinese imports of ceramic tableware during a six-month period. A further decision will be made in May 2013 as to whether these taxes will become permanent.

This sector includes the following sub-sectors.

The turnover for 2010 was broken down as follows:

Crockery 21%

Decoration (vases, etc.)/ Table linen/utensils/ Small kitchen appliances

15.5%

Glassware 14%

Small kitchen appliances 13.5%

Silverware/cutlery 10.5%

Table accessories 7%

Other 18.5%

Sales in the tableware sector estimated at

€4.9 bn in 2010.

€2.6 m (UK share of French imports)


Home Furnishings in France (continued)

Market Structure

In terms of market structure, consumer shopping patterns can be divided into two categories: consumers who are willing to pay for products that stand out in terms of their design or quality and, at the other end of the scale, consumers who are looking for increasingly better value from everyday products. Tableware is sold in a variety of outlets. The market entry level is dominated by mass market superstores, such as Carrefour, Auchan or Casino. Low price is essential to generate large volumes and competition is fierce. Selling to such groups direct is notoriously difficult and large discounts will be requested.

Retail sales account for approximately 59% of the market (€2.885 billion).

Variety of distribution channels (retail):

Sales are also made through wholesalers with 18% of the market share (€888 million) and direct to the hospitality industry with 23% (€1.127 million).

Crockery

• The majority (70%) of crockery sales are made by retailers.

• Remaining sales (30%) are to the hospitality industry (hotels, restaurants, etc.).

Glassware

• The majority of glassware sales are made to the hospitality industry.

Cutlery

• The majority of cutlery sales are made to the hospitality industry.

Table Linen

• The highest table linen sales are made through department stores, specialised home stores, discount stores and online.

Kitchen Utensils

• Hyper/Supermarkets remain the leaders in utensil sales.

Small kitchen appliances

• Specialised electrical appliance stores and hyper/supermarkets score the highest in sales.

The market for cookware and small kitchen appliances is very difficult in France because of the fierce competition from China and from the main manufacturers that have saturated the market such as TEFAL for pans, MOULINEX for mixers, BRITA for water filters, and FAGOR/BRANDT/SEB for pressure cookers. The buyers for the main multiple retail stores consider that there is little space for newcomers.

Retailers such as BHV, Galeries Lafayette and Conforama, have very demanding quality tests in addition to those imposed by European standards. The majority of store buyers believe it is difficult for new suppliers to list their products and therefore would discourage them from approaching such stores as a first step into the French market.

In 2010, hypermarkets represented 31.5% of total tableware sales.

Hypermarkets 31.5%

Independent retailers: 20%

Department stores: 13.5%

Specialised home stores (e.g., IKEA, Fly, etc.):

9%

Online: 7.5%

Retail Chains and franchising:

5%

Discount stores (e.g., Gifi)

1%

Other 12.5%

70%

30%


Home textiles and bedding items

Generally speaking, French manufacturers of bedding items (duvets, pillows, rugs etcetera) are positioned at the high end of the market, with products that are innovative and of high quality. They are therefore relatively protected from the competition of the emerging markets. In contrast to this however, home textile specialists (bed, bathroom, table, office, fabric for upholstery etcetera) are heavily affected by competition from those countries with low costs, predominantly Asia. In particular those offering standard-type products with little added value. To try and overcome this, operators on the French market have had to delocalise all or part of their production and/or improve the productivity of their sites in France, in large part to automation.

Home textile and bedding items are destined for 3 clients markets:

Households: The primary consumers of home textiles. The bulk of sales are made during sale and promotional periods. Large-scale distribution and mail order/internet sales account for roughly 70% of sales in value terms.

Cafes, hotels and restaurants: Purchasing mainly bed linen and kitchen linen (tablecloths, towels etc).

Health establishments: Hospitals and retirement homes buy or rent essentially bedding and bathroom linen.

In 2011 the production of textile articles, excluding clothing, dropped by almost 10% in 2011. This drop is greater that the reduction in household consumption, highlighting the fact that French industrialists are continuing to lose market share to imports. 2011 was also market by a strong increase in the price of raw materials, in particular the price of cotton.

To battle strong competition from countries with low costs, home textile manufacturers are increase in their product offering and looking to distinguish themselves with rapid renewal of products on both technical and design levels.

The home textiles and bedding articles sector is concentrated with 10 companies accounting for almost half of total turnover.

How To Contact Us


Creative and Consumer Team

T: +33 (0)1 44 51 34 00E: [email protected] www.ukti.gov.uk

Sources: Xerfi http://www.xerfi.fr/Confédération des Arts de la Table http://confederationdesartsdelatable.net/ UNIFA http://www.unifa.org/

Trade Fairs

Maison & ObjetThe main international exhibition for home furnishings (decoration, giftware, design, home fashion, tableware) is held twice yearly and is very successful.

Location: Paris Nord Villepinte (25 mins from the centre of Paris)www.maison-objet.com

Trade Associations

Confédération des Arts de la TableAddress: 22 avenue Franklin Roosevelt, 75008 ParisT: 01 53 77 29 00http://confederationdes artsdelatable.net/index.php

UNIFA (Union Nationale des Industries Française de l’Ameublement)Address: 26 bis, avenue Daumesnil, 75012 ParisT: 01 44 68 18 00E: [email protected] www.unifa.org

FNAEM (Fédération Française du Négoce de l’Ameublement et de l’Equipement de la Maison)Address: 59, rue Saint Lazare, 75009 Paris T: 01 42 85 87 55www.fnaem.fr/index.cfm


Home Gardening in France

Gardening is a major leisure activity in France, with 90% of households having a space used for plant-growing. The gardening sector in France includes interior/exterior plants, containers, maintenance products, tools, leisure articles, outdoor furniture and equipment. The main players are specialist garden centre franchises such as Truffaut, Jardiland or Botanics, or “farm shop” chains like Gamm Vert or Point Vert.

Market Analysis

According to a 2009 INSEE study, 90% of households have a space dedicated to gardening: in 61% of cases this is a garden, 41% a terrace, 31% a balcony and 47% a windowsill. Gardens represent a surface area of over 1 million hectares (2% of France).

A recent study by Unep-Ipsos shows that the French are more and more green: 93% of French people believe that having daily contact with plants is important for a healthy lifestyle; 72% of French people feel there are not enough

parks and open green spaces in towns. According to FMB (the DIY shop trade association), household spending on garden products amounts to €262 per year.

According to FMB, the market turnover for “bricolage-jardinage” (DIY and gardening) is estimated at €30 billion. Between 2008 and 2010 the number of companies increased by +32% to 26 500, representing 85 000 jobs (5,000 more than 5 years ago). The market share increased by approximately 1% per year since 2008 to €7,262 million in 2011.

Following the economic crisis, the French propulation has begun to repriotritise the home – in doing so, they can more comfortably spend time with their family and loved ones while saving money. The interior design, fitting and decoration markets are growing, and this includes the garden market.



Garden products are sold through a number of different channels.

How To Contact Us




Useful Links

Association Promojardinwww.promojardin.com

Events

Salon Piscine & Jardin8-11 March 2013Parc ChanotMarseille, Francewww.salonpiscineetjardin.com

Salon de l’Habitat21-24 March 2013Pau, Francewww.salondelhabitatpau.com

Journée des Plantes17-19 May 2013Domaine de CoursonCourson-Monteloup, Francewww.domaine-de-courson.fr

Research Links

www.economie.gouv.qc.cawww.needocs.com

Market Trends

The Home Gardening market has increased in size by 11% over the last five years (taking into account annual growth rates that vary with weather conditions). The market segments that have grown the most in this time are:

• Consumable products (watering, sprays, protective equipment)

• Garden furniture and barbeques

• Landscaping and Outdoor Leisure Equipment

Segmentation of turnover by product category

Outdoor Plants 18%

Motorised gardening equipment

12%

Gardening products 12%

Consumable products 11%

Garden furniture / barbeques

11%

Indoor Plants 9%

Landscaping and Outdoor Leisure Equipment

7%

Handheld motorised equipment

6%

Fencing (wood, plastic) 6%

Containers 5%

Handheld gardening tools 3%

Total Home Gardening Market

100%

Distribution channels for garden products in France

Specialised DIY / gardening chains

24%

Garden centres 19%

Supermarkets and department stores

17%

Libre-Service Agricoles (LISA) and other multi-specialists

14%

Motorised equipment specialists

10%

Florists 8%

Direct sales, markets, and traders

5%

Mail order / online purchasing

3%

Total Home Gardening Market

100%


Healthcare in France

In 2011, the total for French health expenditure reached €240.3 billion, representing 12% of GDP. This puts France in third place internationally after the USA and Netherlands.

The French Healthcare sector covers medical devices, medical equipment, in-vitro and laboratory diagnostics and dentistry.

Virtually the entire population of France is covered by the Social Security system, equivalent to the NHS but has specific characteristics that we can help you understand.

By 2030, 28 per cent of the French population will be more than 65 years old. This ‘Grey Gold’ market offers promising opportunities for medical devices aiding.

The French Government is actively promoting ‘Hospital Care at Home’ – Hospitalisation à Domicile – with the aim of reducing long hospital stays – creating a demand for mobile technical equipment and technical aids for the home.

The private sector is large but with prices aligned to the Government guidelines.

The French system is considered one of the best in the world, with provision of high quality healthcare. This dynamic sector covers a diverse arena from medical equipment and devices for use in hospitals, dentists or the home, through to the growth area of telecare and telehealth which provide more opportunities for British companies.

The French healthcare market is open and transparent. Many of the purchases are through tenders following EU guidelines and regulation. In most cases, CE mark and Class 1 designation are automatically accepted. Other medical devices and products are handled on a case by case basis.

Routes To Market

For your products, you will have decisions to make on the routes to market and the choice of potential partners. Additionally, various organisations and associations may be involved. We can advise you and help you with introductions.


Patients with prescription

Public/Private Hospitals and

Clinics

Independent chemist

shops

Para-pharmaceutical

specialistsPatients

The team in France did a thoroughly professional job. Without their help we would not have been able to move so fast, and the process would have been very costly for us. If you know that you want to export, it’s a ‘no-brainer’ to work with UK Trade & Investment.”Chris Chatterton, Sales and Marketing Director at Ladycare Lifetime Ltd.

The reports we had from UKTI were excellent, and their ability to introduce us to people like hospital directors saved us a huge amount of time and expense. UKTI’s service is exceptional value for money. I can’t imagine anyone not using it.”Paul Merrifield, International Business Manager at LighterLife UK Ltd.

To enter the French market with any product for the healthcare sector, the CE mark is essential. With this standard, generic products can also enter the market freely and costs will be reimbursed to patients by the Social Security system. New, innovative products need to undergo extensive clinical trials before they can be accepted for reimbursement. The following organisations are the main active in this area:

How To Contact Us


John Hall, Senior Trade Adviser E: [email protected]: +33 (0)4 72 62 99 55

Julie Lebouleux, Project ManagerE: [email protected] T: +33 (0)4 72 62 99 58

Potential partners

Purchasing groups

DoctorsProfessional seminars & trade shows

Professional nursing & medical

associations

Patient support groups

Service Provider Distributor

French Agent

French Subsidiary

UK Company

Key players and organisations with role in product qualification and promotion

The French Health Products Safety

Agency – Supervises all healthcare products

for compliance with European regulations

ANSM LPPR

“Liste des Produits et Prestations” – products must be on this list if

they are to be refunded by the Social Security

CEPS

The Evaluation Committee for Products and Services evaluates

applications for registration on the LPPR

AMELI

The French Social Security

SNITEM

National Association for Medical Technology

Industry

LEEM

The French Pharmaceutical

companies Association

AFNOR

The French Standards Association


businesses in the Top 100 posting revenues of less than €16 million. There is an emergence of new players with a vibrant community of innovative start-ups.

Dominating the IT market are the key IT system integrators namely Sopra, Capgemini and Atos. Alongside, are major international groups present in France such as HewlettPackard, IBM and Accenture. World industry leaders such as Microsoft and IBM have chosen France for their European head offices.

France is ranked number one in the world in the Free Software industry. Dominated by the SSIIs companies the top 5 key players of this sector

include Capgemini (SSII); Thales (SSII); IBM (Mixte); Atos Origin (SSII); and Bull / SQLI (SSII). Both the public and private sectors are embracing Free software/open source solutions.

Telecom

France Telecom acquired Orange and is a major player on the world scene. The liberation of telecommunication in France has been profound. There are three established mobile operators: Orange, SFR and Bouygues, with Free an additional new player. There are many opportunities for UK companies and the Apps market is growing apace. Mobility is a growing phenomenon in France and is impacting all sectors, most notably

ICT – Software Industry & Telecom France

Some other areas of expertise include emerging sub-markets such as onboard software for motor vehicles and public transport (Renault, Peugeot, Thales and EADS) Telecommunications (Alcatel, france Telecom), and consumer electronics (Thomson).

Software

Software applications found their way into all parts of society and all industries. The uptake in France is high, with outstanding support for innovation-driven new businesses as well as its excellent public support for R&D. Several sectors offer outstanding opportunities for UK companies, these include eHealth and Mobile Health and CyberSecurity, where we are organising conferences to bring UK and French key players together. Consult us on opportunities in your area of specificities.

The French software industry was valued at 9,7 billion € in 2011 according to AFDEL. Two markets show a strong performance in CRM related and Security, with a growth of 7%.

Below are the 10 leading software companies. For the Top 100, please refer to the following link http://www.afdel.fr/iso_album/global_software_100_update_juin2012.pdf

Although concentrated around a few key players, the software market remains heavily fragmented, with 59

France has more than 30 technology parks with software development as a prime focus in areas such as Sophia-Antipolis, Toulouse, Rennes Atalante, Nancy, Lyon, Montpellier and Paris home of LGElectronics’ R&D center for mobile software.


healthcare and security, where we are organising conferences to bring UK and French key players together in mHealth and CyberSecurity. Contact us to discuss the specifics of your products.

France has the third largest telecoms market in Europe. The incumbent, France Telecom (Orange), is one of the world’s major players. Despite sector liberalisation, the company still dominates all sectors though increasing competition from a small number of major players (notably SFR and Iliad) has gradually eroded this lead. It is also investing in a national

fibre network, largely in response to the activities of smaller players in this market. The mobile sector is dominated by providers with relatively low but steadily increasing MVNO competition, while the vibrant broadband market has seen strong growth.

Trade Associations/Federations

Afdel – French Software Publishers Associationwww.afdel.fr

SYNTEC Numerique – Federation of Software Publishers and IT Services, www.syntec-numerique.fr

Computer Services Players

Accenture (www.accenture.com)Atos Origin (www.atosorigin.fr) Bull (www.bull.com)Capgemini (www.fr.capgemini.com)CS (www.c-s.fr)HP (www.hp.com)IBM GS (www-935.ibm.com/services)

Logica (www.logica.fr)Sopra (www.sopragroup.com)Steria (www.steria.fr)

Systems Players

Cegid (www.cegid.com) Dassault Systèmes (www.3ds.com)Thalès Information Systems

Rang EditeurCA logical*/Monde 2011

CA logical*/CV total

CA logical* France 2011

1 Dassault Systémes 1616,9 91% 170’0

2 Cegedim 307,5 34% 116,0

3 Murex 197,8 62% 10,6

4 Axway (ex.Sopra Group) 162,8 75% 57,6

5 Cegid 158,7 60% 154,6

6 Linedata services 103,1 75% 45,0

7 Avanquest 84,3 96% 3,8

8 Sword 75,4 48% 18,0

9Sopra group – Solutions applicatives

70,0 7% 60,0

10 Bull (incl.Evidian) 69,0 5% 23,0

*CA logiciel: licences + maintenance + SaaS

How To Contact Us


Isabelle Hurley, Senior Trade Adviser E: [email protected]: +33 (0) 4 72 62 99 64

Marjorie Guillaume, Deputy Trade AdviserE: [email protected] T: +33 (0) 1 44 51 32 73

Business Conferences UKTI France – To Register Contact Isabelle Hurley And/Or Marjorie Guillaume.

Cyber Security event: On 21 February 2013 UK Trade & Investment France New Technologies will host a one-day Franco-British business event on Cyber Security: Prevention & Detection in Everyday Business at the Residence of the British Ambassador in Paris.

mHealth & teleHealth event: On 21 March 2013 UK Trade & Investment France New Technologies will host a one-day Franco-British business event on Mobile Health Challenges: Connecting Anywhere, Anytime at the Residence of the British Ambassador in Paris.


For 2010, turnover per type of product was split as follows:

48.5% gold jewellery

• 47.5% gold 750‰

• 23.5% watches

• 12% silver jewellery:

• split 51% silver + stones, 49% silver

• sales of silver jewellery went up by +6%

• 9.5% costume jewellery

• 4.5% other (watch straps, clocks etc.)

• 2% gold plated jewellery

• 1% gold 375‰

Neck Wrist Fingers Ears Pendants

8%

27%

26%22%

16%

Jewellery in France

Consumer trends

A recent study by Xerfi (2012) showed that the French are saving more money, and so prefer to spend on cheaper products usually turning to silver or costume jewellery rather than gold. After the reported +10% leap in turnover in 2011, Xerfi estimated a +6% growth of retailer turnover for 2012 and then a slower +1.5% for 2013.

Due to the large volume of products coming from India and China, prices are very competitive.

Sector activity

In 2011, the total turnover for the jewellery and watch market increased by +9.8% to €599 million. In 2010, there were 4,696 registered retailers of 1 or more staff employing 20,000 people in total. France imported €3.7 billion of jewellery and watches (excl. VAT), a +23% increase on the previous year.


Distribution channels

It was reported (2009) that using intermediaries such as agents and distributors (rather than selling direct) adds substantial charges to entering the market.

In 2012, the most successful retailers will be large jewellery shops located in the city-centres and especially syndicates of independent retailers whose central purchasing agencies can negotiate and maintain attractive prices. Hyper and supermarkets (12.5% of market share in 2011) are expected to lose out due to their Since 2002, all consumer demands for exclusive and personalised products.

Market compliance

If a piece of jewellery complies with the British regulation for hallmarking, it can enter the market.

The piece of jewellery must have 3 marks:

• the manufacturer’s mark

• the metal and fineness state mark

• the assay office mark – “poinçon du bureau de garantie”

Since 2002 all consumer goods benefit from a 2-year warranty within Europe.

The French law (2003) requires that the transport of jewellery products with a value in excess of €100,000 must be arranged in bombproof vehicles.

Trade shows

We would recommend that you visit these trade fairs to give yourself a personal opinion of the market in France and abroad and to check their suitability prior to exhibiting.

Tou’Bij 16-18 September 2012 Villeurbanne – Lyon First edition of this trade show to be held in 2012, c100 exhibitors expected.www.toubij.com

Bijorhca (Eclats de Mode) 18-21 January 2013Porte de Versailles – ParisAdvertised itself as the fashion jewellery trade show, 400 exhibitors, biannual in January and June. www.bijorhca.com

Trade Federations for jewellery

Federation HBJO (Horlogerie, Bijouterie, Joaillerie, Orfevrerie)The HBJO Federation has 19 regional offices throughout France, 1,300 members and published a magazine (7 issues per yr) called HBJO Infos.

249 rue Saint Martin 75003 PARIST: +33 (0)1 44 54 34 00 www.fedehbjo.com

UFBJOP (Union Française de la Bijouterie, de la Joaillerie, de l’Orfèvrerie, des Pierres & des Perles) – this trade association has 220 commercial members and accompanies them in their development.

58 rue du Louvre75002 PARIST: +33 (0)1 40 26 98 00E: [email protected]

How To Contact Us





Music in France

Recorded music

The French recorded music market went down -5.6% in trade value for the first nine months of 2011 to €321.3 million. (Source SNEP)

The physical market went down -12.2% in value to €242.2 million compared to 2010. This loss has been partially compensated by a 22.7% rise in sales of digital music to €79.1 million. The digital market represents 24.6% of the French recorded music market, compared to 18.9% in 2010

Internet downloads were up 16.3% to €40.3 million, while streaming revenue went up 45.7% to €9.8 million. As in 2010, the most impressive growth came from the subscription based music services, which went up by 7.9%. This was primarily due to Orange (France’s largest ISP) including Deezer music subscriptions into its service. Orange competitor SFR, recently included Spotify music subscription service to its service.

The Big Four Record Companies

Headquarters Owner Revenues in 2010

Universal Music Group

USAVivendi France (2006)

€4.449 billion

Sony Music Entertainment

USA/JapanSony Corp of America, US (2008)

€4.240 billion

Warner Music Group

USAAccess Industries USA (2011)

€2.186 billion

EMI Group UKVivendi France (11/2011)

€1.792 billion

Origin of repertoire (2010)

Domestic InternationalClassical & Compilations

France 60% 32% 8%

UK 38% 40% 22%


Trade Press

ECRAN TOTAL – MUSIC INFO www.musiqueinfo.com/ index.html

LA LETTRE DU MUSICIEN www.lalettredumusicien.fr

LE MAG DE LA DISCOTHEQUE & DES DISC-JOCKEYS www.magazinediscotheque.com

Webzines

www.concerts.frwww.infoconcert.comwww.musicactu.com

Trade Fairs

MIDEM – Marché international du disque et de l’édition musicale26/29 January 2013 – Palais des Festivals, Canneswww.midem.com

Client activities (Music 60%, Tech 19%, Artists 11%, Brands 7% and students 4%)

MUSICORAMA – Classical music11/13 May 2013 – Palais Brogniard, Place de la Bourse, Pariswww.musicorama.com

While the digital market’s growth is promising, it is hoped that the physical media market will begin to increase in size within a couple of years.There are worries about the wealth of local production. The share of local sales in the digital market was at around 40 %, compared to 60 % in physical sales. The industry is calling on the French government to keep supporting the production of local talents to help overcome this disparity.

Piracy

Data on illegal music downloading is scarce. A decline in CD sales is an indication of the number of illegal downloads, but this cannot be solely attributed to illegal file sharing. Other factors, such as changing patterns of music consumption and decreasing spending on leisure products influence sales as well.

The EU Digital Agenda 2020 aims to stimulate a European market in which digital media & content can freely circulate. The most important obstacles to this are issues regarding copyright and licensing.

Festivals

There are 841 festivals in France representing €12 million of royalties or 15.6% of the rights in live performance (2011, 76.9%). The PACA region (Provence, Alpes, Côte d’Azur) in the south of France offers 145 festivals (17%) followed by the Rhône Alpes region (Lyon area) with 87 festivals (10%), then the Paris region with 62 (7%).

Musical genres

1. Electronic music (pop-rock, electro, rap hip-hop, reggae etc) – 250 festivals (30%)

2. Jazz and improvised music – 171 festivals (20%)

3. World and traditional music – 160 festivals (20%)

4. Classical and contemporary music – 127 festivals (15%)

5. Live music festivals – 89 festivals (10%)

6. Theatre, dance, circus arts, street art and music (5%)

Market Value Forecast

In 2013, the French music and video market is forecast to have a value of €2.268 billion – a decrease of 16.1% since 2008. The compound annual rate of change of the market during the period of 2008-2013 is predicted to be -3.5%.

French music and video market forecast

€ Million % Growth

2008 27.4 -8.7

2009 26 -5.3

2010 24.9 -4.3

2011 24.1 -3.1

2012 23.5 -2.4

2013 23 -2.1

CAGR2008-2013

-3.8%

How To Contact Us


Sophie de Bodisco, Senior Trade AdviserCreative, Digital & Media Industries

E: [email protected]: +33 1 44 51 33 41


Online Retailing in France

Online retailing has grown fast in France over the past few years as internet penetration has increased amongst the general population. Eurostat, the European Commission statistics body, estimated that some 76% of French households had internet access in 2011 (cf 85% in the UK); 56% of French households had made an online purchase compared to 64% in Germany and 71% in the UK. The EU average was 43%.

FEVAD (www.fevad.com), the French e-commerce federation, estimates that online sales reached €37.7 billion in 2011, an increase of 20% on the comparable period in 2010. The federation predicts annual sales of €45 billion in 2012.

The number of online purchasers grew by 4.1 million over the past year, although the rate of growth has slowed slightly to 15% compared to the previous 2 years. The average “basket” has dropped from €93 to €89 in line with the fall in consumer expenditure (-2.2%) over 2011.

There are nearly 110 000 e-commerce sites in France, a rise of 28% in one year, although 37,000 only register between 10 and 100 sales per month and 22,000 less than 10 per month. Meanwhile, 800 sites register over 10,000 per month.

The 3 most popular sites are Amazon, eBay and Cdiscount which respectively receive, on average, 11.6 million, 9.4 million and 8.6 million visits per month.

The most popular products purchased online (by percentage of users) over the first 6 months of 2011 were:

Travel/tourism 56%

Services 52%

Fashion 45%

Books, magazines, CDs 45%

Electronic Goods 44%


The French consultancy group Mediametrie has published figures showing that male internet users are more likely to purchase online than women (76% compared to 69%) and users in the Paris area are also more likely to do so than those elsewhere in France (79% compared to 71%).

M-commerce is developing fast too, with sales via mobiles now accounting for 5% of all online turnover against only 2% last year. One C to C site claims to have made 26% of all its sales through mobiles (66% smartphones and 33% tablet devices) in August 2012.

At the same time, the e-commerce market in France is approaching a period of maturity – according to the Xerfi research consultancy, there will be a gradual slowdown in growth, starting with a fall to 18% in 2013, and then 13% in 2015. This is perfectly normal, but means that the French e-commerce market is highly competitive – most of the top 40 e-commerce business sell exclusively online, and do not have any brick-and-mortar retail outlets.

Contrary to preconceived ideas in the minds of some consumers, e-commerce is governed by the same rules as traditional retail or mail order. Furthermore, the French government has announced that it will extend the right to return goods or cancel orders from 7 to 14 working days. There are also many supervisory entities and e-merchant associations that guarantee quality of service.

FEVAD and l@belsite (www.labelsite.org) are trade organisations that police the sector. Companies joining these two associations commit themselves to complying with specific rules (distribution methods, clarity of offers, secure transactions and protection of personal data, etc.). Another major trade association in this sector is ACSEL (www.acsel.asso.fr) which represents French e-retailers and on-line service stakeholders.

Data protection is guaranteed by an independent supervisory authority called CNIL (www.cnil.fr). Under French law an Internet user has the right to see all of the information s/he transmits, to know the receipient of this information and to know how said information is being used. The user can remove this information at any time by contacting the site concerned. As in other countries, cases of fraud have tarnished the image of e-commerce. A large majority of e-commerce sites now have their own secure payment systems.

The principal French trade fair is Salon Ecommerce (www.ecommerceparis.com), held annually in September in Paris. Exhibitors include specialists in database management/brokers, e-marketing and logistics.

The key issues facing UK companies seeking to trade online in France are pricing in Euros, a differing rate of VAT, order fulfilment, and web localisation.

The number of online purchasers grew by

4.1 million over the past year

How To Contact Us


John Gleave Creative and Consumer Team

T: +33 (0)6 08 96 37 98E: [email protected]


Rail Industry in France

Market

The French railways sector is one of Europe’s biggest, accounting for around 18 per cent of the European railways market. Growth is strong, with the market growing by 5.3 per cent in 2011 to reach €18 billion. The rolling stock industry is worth some €4 billion annually, placing France in third place worldwide, behind Germany and China. Passenger transport remains the most lucrative segment accounting for more than 90 per cent of turnover.

Structure of French Rail Network

SNCF, the French historical rail operator, is by far the largest operator in passenger and freight services, although both markets have recently opened to competition. SNCF and other operators pay fees to RFF, the French rail infrastructure manager, which is responsible for carrying out modernization work on 30,000 km of French railways with an annual budget of €6.5 billion. This

work is largely carried out on behalf of RFF by SNCF Infra, the SNCF’s infrastructure division, or a number of private contractors.

The current organization is changing, with the infrastructure manager due to be reunited with SNCF Infra, although the exact governance is still to be determined.

The French railways sector is large and growing. Appetite for rail transport is increasing and consequently the government is undertaking a large scale network modernization programme, including several new high speed lines.


Rolling stock manufacturing in France

The rolling stock manufacturing sector in France is heavily concentrated, with just 47 companies. The “big three” of Alstom, Bombardier and Siemens together share around 80 per cent of French business, as well as three quarters of the world market. Alstom is by far the biggest actor in France with more than half the total market share. In addition to these giants, there are a number of Tier One suppliers such as Faiveley, Valdunes and Compin, as well as niche constructors such as Lohr, CFD Bagnère or ABRF Industries.

What’s next?

18 new rail lines are planned or underway over the next 5 years, including 8 high speed lines. This will offer UK businesses opportunities to supply RFF or SNCF with infrastructure related products and services.

Tramways are booming, with 5 systems currently under construction and plans for 14 more. This creates opportunities for UK businesses to supply goods or services to the urban transport operators.

A major 30 billion euros infrastructure project is underway in the Paris region. The Grand Paris project will see the construction of 72 new stations and 200 km of high speed automotic metro system by 2030.

Trade Fairs and Events

SIFER (Salon International Ferroviaire)Date: 26-28 March 2013www.sifer2013.com

Rail Industry Meetings LilleDate: 4-5 December 2013www.railindustrymeetings.com

Trade Press

La Vie du Rail MagazineWeekly reference for rail professionals and enthusiastswww.laviedurail.com

Ville, Rail & TransportsWeekly reference for transport industry professionalswww.ville-rail-transports.com

Trade Associations

FIF – Fédération des Industries Ferroviaires60, rue Anatole France 92300 LEVALLOIS PERRETwww.fif.asso.fr

AIF – Association des Industries FerroviairesCampus TechnopôleMont Houy – RD 958 59300 FAMARSwww.aifonline.com

How To Contact Us


Railways, Airports, Ports & Logistics



Video Games in France

2011 – Sales volumes amounted to €2.7 billion in 2012. Virtual sales currently account for 35% of the market and are growing by 20% in the online, web and mobile markets, spurring growth. France is the second largest producer of video games by volume after the USA, particularly with social networking and Smartphone gaming.

French companies have an annual production budget of more than €500 million. The sector is the source of a very large number of innovative SMEs and micro-enterprises. France’s research tax credit enables companies to receive relief on social security contributions or the salaries of employees conducting R&D. The system involves a tax credit which

can be deducted each year from the company’s profits, and can cover 30% of the company’s R&D spending (40% in the first year).

Key contacts

CapDigital: Cap Digital is France’s innovation cluster for digital content. Located in Ile-de-France (Paris region), it supports R&D projects in the video games sector as well as simulators which use virtual reality for training purposes.www.capdigital.com

Imaginove: Imaginove is France’s innovation cluster focusing on the moving image (video games, cinema, audiovisual, animation and interactive multimedia), located in the Rhône-Alpes region.www.imaginove.fr

SNJV – Syndicat National de Jeux Vidéo: the National Video Games Association (SNJV) plays an active role throughout the sector to preserve or extend the competitive advantage of video game pdocution companies located in France www.snjv.org/fr/syndicat1

In 2011, the Video Games industry was the largest cultural sector by sales in France. The market in France is larger than in Germany and is second only to the UK in Europe.

Together, these support measures along with the very attractive business ecosystem for start-ups provide a bespoke environment for developing video game production operations in France.”Source: investinfrance


How To Contact Us


Sophie de Bodisco, Senior Trade Adviser Creative, Digital & Media Industries

T: +33 1 44 51 33 41 E: [email protected]

Government Support

• France’s research tax credit enables companies to receive relief on social security contributions for the salaries of employees conducting R&D. The system involves a tax credit which can be deducted each year from the company’s profits, and can cover 30% of the company’s R&D spending (40% in the first year)

• The “Innovative new companies” scheme offers support on a sliding scale towards employer social security contributions for salaries allocated to innovation positions. To be eligible, companies must be less than eight years old

• France’s video game tax credit, a unique measure in Europe, enables companies to save 20% of eligible video game creation expenditure, subject to meeting certain qualifying criteria. The tax credit is awarded by a commission of experts using funds from the Ministry for the Economy, Finance and Trade and the National Centre for Cinema and Animation (Centre National du Cinéma et de l’image Animée – CNC)

• On April 25, 2012, the European Commission authorised its renewal for six years (until December 2017)

• The Video Games Support Fund (FAJV), jointly funded by the Ministry for the Economy, Finance and Trade and the CNC and administered by the latter, seeks to support innovation and creativity in the video games sector by providing production grants.

Events/Trade fairs

Game Connection: The leading business convention in the video games sector brings together all industry professionals in Paris for a three-day exhibition every November to present their productions and establish production agreements. www.game-connection.com

The “WebGame Conference”: This European conference, which specialises more in virtual video games, takes place in Paris every June and targets decision-makers from companies working in virtual markets.www.webgameconf.eu

Since the beginning of 2012, all institutional stakeholders in video gaming as well as the National Video Games Association have launched a joint approach, called “Le Game” in order to promote French expertise and talent, notably at the leading trade shows and meetings around the world.www.le-game.net

UbiQ: Digital Entertainment showcase (TV, Music, Games, Apps, Internet, Mobile, IPTV, Tablets, Social Media and Connected TV) 13/14 June 2013 ubiq-europe.com

Trade Press

Consoles – www.jvn.com/blog consoles-le-blog-officiel.html Jeux Video Magazine – www.jeuxvideomagazine.com

Companies who have made it in France

• Bigpoint – www.bigpoint.com

• Capcom – www.capcom.com

• EA – www.ea.com/fr

• Worldoftanks – www.worldoftanks.com


Well-being in France

Perfume and Cosmetics

The perfume and cosmetics sector, which has flourished since 2000, is the 4th largest sector in France in terms of trade balance with €7.4 billion after aeronautics, agri-food and drink and transport materials..

This sector’s success is a result of France’s luxury perfume image internationally as well as the popularity of large specialist perfume chains such as Sephora, Marionnaud and Nocibé.

In 2011, the perfume and cosmetics sector saw an increase of 3% compared to 2010 with sales of perfume, beauty creams, lip sticks and mascaras reaching €2.86 billion compared to €2.77 billion in 2010.

Beauty Products and Toiletries

Due to a growing population, an increased importance for personal well-being, and a growing number of foreign customers especially in Paris, the “prestige” beauty products sector has remained strong.

Sales and expansion of private label products as well as diversity of ranges within major hyper/supermarkets chains have also risen across all sectors. They are seen as true alternatives to national products in the perfume and cosmetics sector.

Well-being Electrical Appliances

Household well-being electrical appliances (i.e. hair-dryers, massage tools, hair removal and light therapy devices etc.) are becoming more and more popular as people choose the Do-It-Yourself trend. This segment saw an increase of 3% in

2011 and, with only 4.6% of French households in possession of an appliance (exc. Hair dryers), there is room for growth.

Spa treatments, Thalassatherapy and Balneology (hydrotherapy industry)

The personal/body care sector which includes thalassatherapy, balneology (hydrotherapy), Turkish baths, saunas, steam rooms etc. is becoming progressively trendier and the number of centres is growing steadily.

Currently France benefits from a large choice of thalassatheraphy centres either dedicated to medical cures or open to all. Despite this, over half the centres in the thalassatherapy and balneology (hydrotherapy) are owned by 5 groups. e.g. Chaîne Thermale du Soleil and Valvital.

France, and Paris in particular, is well-known around the world for its luxury cosmetics, beauty and perfume industry however there is much more to France’s well-being sector than these segments.


Trade Fairs

COSMEETING BEYOND BEAUTYWhere: ParisWhen: 10-12 September 2012 (Annual) www.cosmeeting.com/cosmeeting/fr/cos_00_Home.asp

MONDIAL SPA & BEAUTÉWhere: ParisWhen: March 2013, (Annual)www.msbparis.com/fr/ accueil.php

SPAS ORGANISATIONWhere: ParisWhen: throughout the yearwww.spas-expo.com

Trade Press

Bien-Être et SantéMonthly magazine dedicated to information regarding health, hygiene and well-being.www.bienetre-et-sante.fr

Cosmeticnews.comInternet site dedicated to the cosmetics industry and includes analysis, reports, guides, contact lists.www.cosmeticnews.com

Tendance-sante.frInternet site dedicated to health and well-being aimed at women aged between 25 and 49 years old.www.tendance-sante.fr

Trade Associations

FEBEA (Fédération des Entreprises de la Beauté – French Federation of Beauty Sector Companies)137 rue de l’Université, 75007 ParisT: 01 56 69 67 89E: [email protected]

SPA-A (Fédération des Professionnels du Bien-être – French Federation for Well-Being Professionals)16 Rue de Liège, 75009 ParisE: [email protected]

Interesting Websites

ANSM (Agence National de Sécurité de Médicament et des Produits de Santé – French National Agency for the Safety of Medication and Health Products)http://ansm.sante.fr

What’s Next?

Certain segments of the well-being sector such as organic, male grooming products, private label and well-being electrical appliances are booming despite the current economic climate.

Due to a lack of time and budget the market is split equally: low-cost solutions and high-end luxury products.

Legislation

In line with French legislation, all companies selling cosmetics and beauty products must register their ingredients with the three anti-poison centres across France.

French language must also be used on products. This concerns product ingredients as well as instructions.

UKTI would like to draw attention to Journal Officiel n°151 of 2 July 1998 and Loi No.98-535 of 1 July 1998 referring to health products’ hygiene supervision and the control. This can be found on the French legislation website www.legifrance.gouv.fr


The well-being sector also benefits fromover 5 strong channels of distribution of distribution for products allowing companies to reach a variety of customers or target a specific type of clients.

• Specialist stores: perfume chains, independent perfume stores,

• Pharmacies and chemists

• Large retail stores or chains (including supermarkets)

• Hair salons

• Internet sites and mail order

With such a variety, competition can be extremely high as similar products can be found in supermarket chains and specialist stores but not at the same price.

Although the well-being market (products and services) is dominated by some very large groups – L’Oréal, LVMH, Puig, Procter & Gamble and Unilever – 80% of companies in the market are SMEs.

How To Contact Us





Top tips for doing business in France

France is the fifth largest economy in the world and the second largest European economy after Germany. France is the UK’s 4th largest export market and the UK’s 3rd largest supplier. Exports to France amount to some £32 billion per year and account for nearly 10% of UK exports worldwide. This means that many UK companies have got it right and are reaping the rewards. To learn more about this market, visit www.ukti.gov.uk

So why is France such a good destination?

France is geographically close – transport/transit costs are low and time differences manageable.

The market is similar to that of the UK’s in terms of legislation, technology, demand, size etc…

Business relationships with French companies tend to be long-term.

France is home to some of the biggest firms in the world. Developing business with one of them might be a stepping stone to a much larger market.

France hosts some of the biggest international Trade Fairs.


What should I look out for when entering this market?

The following points are very general but may prove valuable:

• Be perseverant: Business itself is not conducted the same way as in the UK. Unless you have a significant USP or niche product, you should assume that there will be stiff competition with existing service providers who will generally have established relations with their customers. A longer-term view should be sought if France is to be a serious market for you. The build-up of an initial deal may take some time and during this period, you need to build your relationship with a potential partner via, for instance, regular meetings and visits to France.

• Be aware of who’s who: Be conscious and respectful of hierarchy and job titles. Try to match meetings at the same grade/level e.g. Director to Director, etc.

• Be ready: Language can be a barrier to entry. Always aim to have some literature in French, even an A4 translated leaflet to present your firm, activities or products.

• Quote prices in Euros [€] and use metric measures too. Payment terms & conditions should ideally be accompanied by a French translation and should be signed by the customer.

• Speaking French, even a few words, can really make a difference. Employing French or French-speaking staff could really pay off in the time.

• When speaking French to contacts, you should always use the - vous - polite form for ‘you’, and Monsieur or Madame and surnames until invited otherwise.

France is home to some of the

biggest firms in the world


Top tips for doing business in France (continued)

• Be informed: If you enter into representation or serious talks with potential partners do take legal advice first. Termination of contracts can be costly! Also before entering into exclusivity agreements, remember that France is vast. If you need representatives in different French regions, talk to UK Trade & Investment’s staff. Our services can help in finding the most appropriate representatives for you.

• Be safe: When travelling, try to keep copies of your passport, insurance documents and EU Health card with you in case of loss/theft. Be careful about using telephones, laptops etc in the underground as these may get snatched.

• “They’re permanently on holiday!” is not quite true. The summer is very quiet and some companies close throughout August. September/October is very busy and be aware of that the end of the financial year at the end of December is also very busy.

When writing in French, the following differences exist:

These quote marks are used: « »

There is a space before the colon [:] e.g. La liste_:

There is a space before the question and interrogation marks [?][!]e.g. Monsieur_? e.g. Merci_!

The decimal symbol is not a dot [.] but a coma: 1.000,05

The Euro sign goes after the number: 1€asdsdf

• The international dialling code for France is +33 (remove the first zero) Mobile telephones usually start with 06.

These are just a few tips. Remember that France is a very good place to do business and that we in UKTI France will be happy to help you take things forward.

How To Contact Us


T: +33 (0)1 44 51 34 00E: commercialenquiries.

[email protected]

UK Trade & Investment is the Government Department that helps UK-based companies succeed in the global economy. We also help overseas companies bring their high-quality investment to the UK’s dynamic economy acknowledged as Europe’s best place from which to succeed in global business.

UK Trade & Investment offers expertise and contacts through its extensive network of specialists in the UK, and in British embassies and other diplomatic offices around the world. We provide companies with the tools they require to be competitive on the world stage.

Published May 2013by UK Trade & Investment© Crown Copyright

To find out more, scan thiscode with your smart phone.www.ukti.gov.uk+44(0)20 7215 8000

UK Trade & Investment is responsible for the delivery of the Solutions for Business product “Helping Your Business Grow Internationally.” These “solutions” are available to qualifying businesses, and cover everything from investment and grants through to specialist advice, collaborations and partnerships.

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© Crown copyright 2013.

You may re-use this information (excluding logos) free of charge in any format or medium,under the terms of the Open Government Licence.

To view this licence, visit: http://www.nationalarchives.gov.uk/ doc/open-government-licence/ Or you can e-mail: [email protected]

Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned.

Any enquiries regarding this publication should be emailed to us at: [email protected] Or you can call: +44 (0)20 7215 8000

This publication is also available at: www.ukti.gov.uk

Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills (BIS), and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned.

Doing business in France

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