Agenda

� Enterprise Ireland

� Why France?

� Perception about the French market

� Irish Companies’ experience in France – challenges, culture

� Critical Success Factors

� Channels to Market

� Competitive Clusters

� Learn from your peers

� Enterprise Ireland case studies

� Q&A – throughout!

To accelerate the development of world-class Irish companies to achieve strong positions in global markets, resulting in increased national and regional prosperity.

ENTERPRISE IRELAND MISSION

Key strategic targets 2008-2010

The EI Global Team

OverseasMarketAdviser

(MA)

DevelopmentAdviser

(DA)

TechnologyAdviser

(TA)

Human Resource

DevelopmentAdviser(HRDA)

TechnologyTransfer

Client

InvestmentAdviser

(IA)

Irish success stories

Why France?

� The world’s 6th largest economy

� The second largest Euro zone market

� A highly diverse industrial base

� industrial sector = approx 20% of GDP

� strongest manufacturing sectors: motor vehicles, pharmaceuticals, transport equipment and aerospace (civil and military).

� A close alignment with Ireland’s major sectors of activity

� A strong culture of innovation

� Business Confidence, Industrial Production and Retail Sales Indicators remain strong

� Increase in Imports primarily in Food, Aerospace & Chemicals

� There is a strong trading history between Ireland and France

Perceptions about the French Market

� French companies only buy from French companies

� French labour law represents too high a cost for companies setting up

� The French market amounts to too much effort for too little reward

� The French are always on strike

� French workers are unproductive – the 35 hour week is a great example

Irish companies’ experience in the French Market

� FACTS & FIGURES

� 3rd largest export market for EI clients (largest in Euro Zone)

� Approximately 500 EI clients exported to France in 2008

� 50 clients account for 85% of export value – huge untapped potential

� Challenges:

� SME

� Anglo-Saxon V French

� Management Style

� Communication styles – Logic

� Risk takers V Risk Adverse

� French companies tend to be very hierarchical in structure

� Power is centralised at the top

� Business is conducted in a formal manner – Monsieur et Madame

� Communicating in French is of real importance

� Meetings should be booked in advance

� Distinction between professional and personal life

Cultural Facts about doing business in France

Irish companies’ experience in the French Market

� CRITICAL SUCCESS FACTORS

� Important to set expectations correctly

� Do your homework first

� Relationships are of paramount importance

� The loyalty factor is high

� Once you grow to a certain size, you will need a local presence in some shape or form

Channels to Market

� Distributors

� Commercial agents

� Purchasing Groups

� Benefits� Distributor brand identity – trusted relationship with clients

� Own Sales Teams

� Carry stock, Bulk buy and Resell

� Recommendations� Keep involved

� Keep communication open

� Ensure promotion of your products

Distributors

� FNAC - French association for commercial agents www.comagent.com

� 20,000 commercial agents in various sectors

Benefits:� Paid on a sales commission basis

� Independent experts with a deep knowledge of the market and their clients

Recommendations: � Ensure open and regular communication with your agent

� Always seek legal advice when drawing up and terminating contract

� Provide marketing collateral & sales tools in French

Commercial Agents

CAMIF www.camif.coop

- 3rd catalogue company in France

- 200,000 products referenced. 60,000 customers. TO: 640 M€ HT.

- Products distributed include: furniture, electrical goods, clothes, DIY, sport

UGAP (Union des Groupements d’Achats Publics) www.ugap.fr

- Purchasing group for public supplies (99 %)

- 142,000 products referenced. 35,000 customers

- Products distributed include: furniture, medical, IT

- References manufacturers but also distributors

Customers: Education (46 %), public authorities (35 %)

Central Purchasing Groups

Direct Channels to Market

� Partnerships (Systems Integrators)

� Acquisition

� Establish a local presence

Competitive Clusters

� 2004 government initiative

� Objective:

� Concentration of talent within an activity and geography to drive

innovation

� Aim to enhance competitiveness of French industry

� Encouraging collaboration between companies, research institutes and

training organisations

� Defined geographical areas e.g. Sofia Antipolis (ICT), Rhone Alpes(Lyonbiopole – Pharma & life sciences), Cap Digital Paris (digital media)

Toulouse / South West (Aerospace Valley)

Competitive Clusters

� Clusters support a wide range of different industries

� More focussed, cost effective

� A community of like-minded companies already working in your sector as potential joint venture partners

� A pool of skilled local labour & professional managers

� familiar with your sector and the French market

Lyonbiopôle

Equine

Chevaux-Normandie

Aerospace Valley

Enterprise Ireland Case Studies

� Strategic Partnerships – EADS, Saint Gobain, Veolia, SNCF..

� Enterprise Ireland as Strategic Sourcing Partner - Orange Group

� VC collaboration – Investor Forum

� Client Support – Lincor

� Acquisition – Ocuco

� Market Validation

� Strategic Client Events - Financial Services seminar, Renewable Energies

� Finally…Buyer presentations & building our network, bringing buyers to Ireland, identifying market experts etc

Learn from your peers

“Do your homework and come and test your thinking in-market”

Patrick Faherty, Fintrax

“Be prepared to be in France for face to face meetings”

Ian Finnegan, Changing Worlds

“There’s no resistance to dealing with an Irish company. However, this doesn’t mean you don’t need to speak French to truly understand the market and your customers”

Phil Sheridan, Barclay Crop Protection

“Be patient”

Richard Cooke, Lincor

“The size and proximity of the French market made it a clear target”

Geoff Scargill, John Hinde Group