In the areas of luxury goods, fashion and gastronomy, the reputation of French know-how is well established worldwide. The French nose for perfume, food and good taste is famous and always surrounded by sophistication. These products sell themselves and revenues from luxury goods were estimated last year at € 31 billion, with 84% from exports. But more and more companies realize that adding a label ‘Made in France’ helps to raise sales, as well in France as in the rest of the world.
L’Oréal for example has been posting healthy growth in the last two years and in particular its ‘Made in France’ range is very successful. The L’Oréal group is convinced that combining image with quality and a concern for detail with mass production is the key to this success. It also achieved sustained sales growth in new markets such as Asia and Latin America.
About 88% of the French consider the label ‘Origine France Garantie’ as a supplementary proof of quality and about 77% is willing to pay more for a product made in France, according to a poll by TNS Sofres. The French production as well as export benefit from this labelling. According to a recent CREDOC study, 74% of consumers believe that the French origin of a product is an incentive to buy it.
Besides the traditional sectors, today ‘Made in France’ shows up in other sectors too. Electric appliance company SEB, Gérard Salommez, Managing Director for France And Belgium, began using the flag labels eight years ago, making it a pioneer of sorts: “But there are limits to the magic of Made in France. The price differential between the French product and an equivalent import can’t exceed 10%. If it does the French product has to deliver other pluses for the client, such as style, design or real innovation.” Such is the case with SEB’s best-seller, ActiFry, which costs three times as much as other deep-fryers because it allows customers to fry a kilo of French fries with just one soup spoon of oil.
It becomes a trend for companies to relocate their factories to France, having understood that this is a significant selling point and in order to offer a product made in France. Toyota is one of them with the production of the Yaris in Valenciennes and the South Korean Namyeung Vivien Corporation, leading player in the lingerie market, , is another one which acquired its French partner Barbara.
Today there are several sites that inform the consumer about ‘Made in France’ products/companies, like www.100pour100-madeinfrance.fr or www.hexaconso.fr. The last one features almost 200 businesses, accounting for more than 12,000 jobs. Its creator, Marie Thuillier, says: “Today the rules are quite relaxed. As long as 45% of the added value from the making of the product comes from French territory, it can be considered made in France".
If you are willing to set up your business in France or are you looking for French clients/partners for your luxury or premium products? Our TRANSFER office in Paris could most certainly assist you in establishing the right commercial contracts. Please contact us.