Introduction.
Expansion into France" is one of the strategic developments that more and more Japanese companies are paying attention to today. France is the economic and cultural center of Europe and a key country for branding, sales strategies, and even global expansion. This article details the benefits and actual milestones of expanding to France, as well as strategies for success.
Current Status of Japanese Companies Based in France
AS OF 2023, MORE THAN 800 JAPANESE COMPANIES ARE BASED IN FRANCE. THEIR INDUSTRIES ARE DIVERSE AND INCLUDE AUTOMOBILES, ELECTRONICS, COSMETICS, FOOD, FINANCE, IT SERVICES, AND MANY OTHERS. IN PARTICULAR, CITIES SUCH AS PARIS, LYON, AND TOULOUSE HAVE WELL-DEVELOPED BUSINESS INFRASTRUCTURES THAT FACILITATE THE ESTABLISHMENT OF LOCAL SUBSIDIARIES AND BUSINESS DEVELOPMENT.
French government support for investment and innovation
France strongly supports the expansion of foreign companies through national projects such as "La French Tech" and "Choose France". Various incentives are available for start-ups and medium-sized companies, including simplified incorporation procedures, tax benefits, subsidy programs, and R&D support.
FRANCE IS ALSO ONE OF THE EU'S MOST ACTIVE COUNTRIES IN TERMS OF R&D INVESTMENT AND HAS THE RIGHT SOIL FOR DEVELOPING INNOVATIVE TECHNOLOGIES AND SERVICES. INNOVATION, ESPECIALLY IN THE FIELDS OF ENERGY, ENVIRONMENT, MEDICINE, AND AI, IS HIGHLY REGARDED WORLDWIDE.
Trends are coming from the French market
Paris is the world's fashion and lifestyle center, and the Paris Collections attract celebrities, buyers, and media from around the world. During this period, it is customary for buyers and industry professionals to visit power stores in Paris to conduct market research. Products carried here can be the catalyst that paves the way to the global market.
In other words, entering the French market is not just a matter of expanding sales channels; it is also the first step toward "global branding. To implement this strategy, it is essential to have the support of our company, which is well versed in the local situation.
Improved branding through expansion into France
EXPANDING INTO THE FRENCH MARKET WILL ENHANCE THE BRAND POWER OF YOUR PRODUCTS AND DIRECTLY PROMOTE SALES BOTH DOMESTICALLY AND INTERNATIONALLY; IT WILL INCREASE YOUR ABILITY TO COMMUNICATE ON SOCIAL NETWORKING SITES, AVOID PRICE COMPETITION, AND BUILD A STABLE PROFIT STRUCTURE.
For example, the branding value is much higher from France to Europe and then to Southeast Asia than from Southeast Asia to France and Europe. This is because the impression of "from France" is highly persuasive to buyers around the world.
Entry into France as a foothold for expansion in Europe
Our French market entry assistance focuses on getting products to key local distributors, rather than to niche market antenna stores or small retailers.
This will directly establish business with buyers who have branches in other countries (e.g., Germany and the UK), and will allow for a natural expansion into Europe with France as a starting point. This creates a virtuous cycle in which products naturally sell in countries that were not targeted.
Understanding European business rules is key
In European markets, including France, it is essential to understand local business customs and contract culture in business negotiations. For example:
- Understanding the annual purchase budget
- Approval flow
- Market Research and Competitive Analysis
- European Regulations
- France's own regulations
- Check tariff and tax exemption conditions
- Local Taxation Rules
- Payment terms (initial/continuing)
- In case of return or damage
- Set price gradations based on total amount or quantity
If these preparations are not in place, the business meeting may be frustrated.
IN EUROPE, SETTING THE TOP PRICE IS NOT AN OPTION.
One point that particularly confuses Japanese companies is that "setting a top price" is prohibited in Europe and the United States. Because it violates the Antimonopoly Law, it is not possible to specify a fixed price.
RESALE PRICE MAINTENANCE PRACTICES (TOP PRICING) IN THE EUROPEAN UNION (EU) ARE PROHIBITED AS A RESTRICTIVE COMPETITION ARRANGEMENT UNDER ARTICLE 101 OF THE TREATY ON THE FUNCTIONING OF THE EU.
THEREFORE, WHEN DISCUSSING BUSINESS, IT IS REQUIRED TO SAY "THE WHOLESALE PRICE IS XXX EUROS" INSTEAD OF "WE WILL WHOLESALE AT 50% OF THE RETAIL PRICE". FAILURE TO UNDERSTAND THIS DISTINCTION MAY CAUSE DISTRUST IN THE OTHER PARTY, AND YOU MAY LOSE THE CHANCE TO NEGOTIATE A DEAL.
The only company that can control prices is an outlier such as Apple.
summary
For Japanese companies, entering the French market is not just a matter of "overseas expansion," but a strategy that opens the door to "global branding. France is the right market to enter now because it brings together all of the above: collaboration with local distributors, understanding of European business, use of an innovation environment, and value as a trend-setting destination.
We provide comprehensive support from the first step to ongoing deployment.