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France country brief

France is a leading economic, technological, cultural, communications and transport centre both within Europe and internationally. It is a large, affluent country of 62.4 million people who pride themselves on their uniqueness and place in the world.

Getting your product into market

The French are discerning importers of products and services.

When choosing distribution channels, you need a good understanding of the eventual consumer or customer, where they are located and how they prefer to buy. Then a choice can be made whether to sell through a national distribution system based in Paris, a series of regional distributors, mail-order or possibly through multi-channel distribution.

For some foods it is wise to check with importers whether they are approved for import. Areas of potential difficulty are groceries and confectionery, food products containing sugar, wheat and dairy products and lamb and beef.

Certificates of origin are required for most imports and there are restrictions on certain agricultural products such as dairy.

Precise packaging and labelling requirements exist for many products, especially food and dietary supplements. Packaging must be marked with the ‘green spot,’ indicating that the costs of recovery and recycling have been met.

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Tax

A value added tax (VAT) of 19.6 percent applies to most items except for food and books where the rate is 5.5 percent and for most medicines (2.1 percent). VAT is paid by the importer on customs clearance of the imported goods.

Logistics

Air freight is generally routed through an Asian hub, before flying direct to France. Most larger New Zealand-based freighting companies work on consolidating loads for weekly air shipments.

Sea freight goes either direct to a French port (Le Havre or Fos) or through Zeebrugge or Rotterdam, then by road to France. Transit time is around six-to-eight weeks.

Opportunities

Regional and ethnic differences combine to create a multitude of smaller markets in France. Many of these are potential targets for small and medium-sized New Zealand companies whose niche products can often find a ready market.
A significant trend in food products has been towards increased food safety and traceability. New Zealand is well-positioned in this regard with an excellent reputation in the meat and seafood sectors and there is a high level of awareness among both retail and hotel, restaurant and institution (HRI) buyers of the quality and consistency of New Zealand products.
The increasing amount of leisure time available to the French following the introduction of the 35-hour working week has opened up new opportunities for outdoor and leisure products. This also applies in the marine sector where New Zealand is recognised as a potential supplier of components.
France is New Zealand’s number one export market for scallops and there is high demand for frozen species such as hoki, scampi, oreo dory, orange roughy, mussels and skate wings. Buyers are also interested in new species and there are seasonal opportunities for chilled seafood and live rock lobsters.

Challenges

Notable potential barriers include language and cultural differences, import tariffs, distance and tough local and foreign competition.

Cultural and business tips

No visa is required for New Zealand passport holders for up to a three-month stay.
In business the French language is preferred, although there is a growing use of English, depending on the sector. If possible product literature should be in French. Faxes, e-mails and letters should also be in French if possible, especially in the initial stages.
The French favour strategic alliances built on enduring business relationships. New Zealand exporters must be prepared to visit their clients and learn about their businesses to build on these relationships.