France’s recovery from the global financial crisis has been slow. Bloomberg reports that France has lagged behind the European Union’s growth rate since the crisis and have taken longer to return to pre-crisis per capita income figures. Germany hit that mark in 2010, the U.S. in 2014, and the United Kingdom in 2015.
Every company wants more growth, but it can be challenging to achieve when your home economy struggles. Expanding into a global market can give a France company access to more dynamic economies and millions of new customers. Here are five tips for taking your France company global.
1. Develop a Strategic Plan
Before you begin looking for the right market, a company needs to understand its goals for the expansion. While every company wants to sell more and make more money, a strategic plan should be specific:
- Define your short-term and long-term strategy
- Set goals and create methods to measure success
- Consider how global expansion will affect your organizational structure and business plan
- Define what capacities and customers you need in a local market
2. Find the Right Market
Once you have defined your strategy, search for a market that meets your needs. Do a deep dive into local markets. Analyze the competition and customer behaviors to see if there is a gap that your product can fill. Understand local culture and business practices to see if your company’s image and culture are a good fit.
Many companies are looking to emerging markets to find new customers. France industrial companies can bring their technical expertise to emerging markets to gain an advantage over the local competition. Emerging markets have a growing middle class that increasingly demands luxury goods, especially western goods.
3. Develop the Right Marketing Plan
Once you have found the right market, develop a localized strategic and tactical plan for that particular market. While your current branding and marketing plan may work well in France, other countries have customers with different habits, tastes, and expectations.
One key component to your marketing plan is your company’s name. You want your new customers to easily understand, remember, and pronounce your name.
4. Capitalize on Foreign Labor
France’s labor market is heavily regulated, making it difficult to dismiss people once they have been hired, so many companies hesitate to hire new staff. Most countries have fewer labor protections than France, making it is easier to expand and decrease your workforce without major financial risk. The United States has one of the fewest labor protections, making it a hot-spot for expanding from Europe. Many nations also have a lower cost of living, so your workers cost less while still being treated well.
5. Work with a Partner to Stay Compliant
Hiring local workers from the market you are expanding into comes with its own set of risks. Every country has different labor protections, and their systems can be complex. Before onboarding new team members, consult a law firm, accounting firm, or an International PEO (Professional Employer Organization) with expertise in the local market to ensure that you are in compliance.
Relying on an in-country partner helps you navigate your new territory much easier than if you tried to get established on your own. Contact Velocity Global to learn about your options for expanding into global markets.