Summary of France insights
Conducting business abroad has become slightly easier than 3 years ago according to French mid-cap CFOs. Despite the economic and regulatory difficulties facing all businesses, 96% of French mid-cap CFOs we interviewed are confident that their three year plans to expand internationally will succeed. On average, they expect 51% of their revenues in 2014 to come from sales outside France, up from the current 47%.
French businesses are focusing on expanding into Germany and Spain while France plays an integral part in the expansion plans of German, Chinese and Dutch businesses.
Market size, access to new customers and efficient distribution networks are the most important opportunities for companies looking to expand into France.
Red tape & bureaucracy, finding the right local management and intensity of local competition are the biggest challenges faced by French companies when expanding internationally.
Nearly half of French businesses act fast once a decision to open a new office is made - 48% open an office in less than a year. French businesses claim that internal sources (60%) and clients/customers/existing contacts (42%) are the most trusted sources when expanding abroad.
Outlook for cross border growth
- Germany and Spain are important markets for French outward expansion
- French expansion abroad is driven by market size and growth opportunities
- French businesses are more likely to ‘play it safe’, expanding in their core sector and with both new and existing products and services
- Investment in people will be the main focus over the next 3 years for French companies expanding abroad
Factors driving inward French investment
- Market size
- Access to new customers
- Efficient distribution networks
Challenges for companies expanding in France
- Intensity of local competition
- Red tape & bureaucracy
- Lack of brand awareness
Challenges faced when expanding internationally
- Red tape & bureaucracy
- Finding the right local management
- Intensity of local competition
Top insights for growth
- Do thorough research to improve your knowledge of the market
- Recruitment of good staff is key to success
- Find good contacts/ strong partners in the region
The in-country summaries are given as general commentary only. The global BDO Ambition Survey 2011 is based on 751 CFOs’ responses of mid-cap companies across 13 countries (50 in France). The survey was conducted by StrategyOne between 23 May – 8 July 2011