Key Strategies for Successful Business Expansion into France
On May 21st, we had the pleasure of hosting the Australian delegation from the state of Victoria in Paris for VivaTech! We met with all the startups attending this three-day event. Before kicking off this exciting week, the startups got an overview of the French market and some advice on doing business in France.
During the session, Stéphane Villard (Partner at Deloitte) presented the opportunities in the French market, while Frank Ribuot (President at Groupe Randstad France driving HR innovation) highlighted the cultural differences and business nuances here, which are quite distinct from those in Australia. Following that, our founder, Léo Dénès, shared with Graig Lovett (Partner at Incognitus) all the tips for a successful establishment in France, steering clear of common pitfalls.
Check out this blog post for a summary of the key insights!
The opportunities in the French market
In recent years, the French market has experienced spectacular growth. In 2024, no less than 17,050 startups were launched in France, propelling the country to the rank of holder of 29 unicorns in various fields such as health (Doctolib), e-commerce (Backmarket), and entertainment.
Before, everything mainly happened in Paris, but now, many regions are getting involved. For example, Auvergne-Rhône-Alpes has become the second hub for startups in France, with companies more focused on tech. Nice and Marseille are also booming, especially in the software domain.
Investments in France have followed this trend. More than 3.8 billion euros have been invested in various sectors of the ecosystem. For instance, mobility technologies attracted over 2.553 billion euros, and sustainable technologies 2.082 billion euros. BPI France, the leading French investment fund, plays a major role by investing on a global scale.
The cultural differences to take into account
Australian and French cultures have significant differences. It’s important to understand these to avoid mistakes when you arrive.
In France, the hierarchy is stronger than in Australia. So, it’s best to be respectful and not use informal language right away. It’s better to wait a bit before being too casual. Also, when dealing with a company, make sure you talk to the right person. Otherwise, things might go in circles for a while because the decision-makers usually hold top positions.
You might need several meetings before getting a clear answer. Things don’t happen quickly after just one meeting, unlike in Australia. The first meeting is usually just to explore. So, it’s important to keep in touch and set up more meetings. It’s also helpful to have someone local to help you make connections.
What mistakes to avoid when establishing in France?
Firstly, it’s a mistake to handle everything from afar. Eventually, you’ll need a physical presence in France to nurture local relationships and sidestep issues with time zones and cultural differences.
Not speaking French is also a mistake. Except in large companies, most French people aren’t very proficient in English and prefer to work in French. So, it’s not only important to speak French but also to think in this language to properly adapt your marketing to the French market.
Finally, it’s crucial not to underestimate the costs associated with establishing in a new country. This requires significant financial and time investments. It’s essential to be aware of these aspects before diving in and ensure you have the financial resources and time needed to successfully carry out this project.
To succeed in setting up in France, remember these key words: passion, resilience, speaking, and thinking in French.
