Kvadrat in france
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Kvadrat in France. Best in France Case Study December 2003. Preview. Danish Companies in France Interview with the Attaché Commercial of the Royal Danish Embassy in Paris. Danish companies in France. Most companies prefer to set a distributor Around 200 Danish companies in France

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Kvadrat in France

Best in France Case Study

December 2003


Preview

Danish Companies in France

Interview with the Attaché Commercial of the Royal Danish Embassy in Paris


Danish companies in France

  • Most companies prefer to set a distributor

  • Around 200 Danish companies in France

  • French exports to Denmark: €3B pa

  • Danish exports to France: €3B pa


Denmark France

Machinery: 25%

Food: 18%

Chemicals: 17%

Consumer goods: 17%

France Denmark

Machinery & cars: 50%

Chemicals: 13%

Consumer goods: 11%

Main product transactions


Perceived barriers in France

Danish firms currently not exporting to France consider

the following as barriers to enter this market:

  • Technical differences: 67%

  • Bureaucracy and lack of open mindness: 53%

  • Long decision-making process: 50%

  • Long payments: 69%

  • Language and culture: 60%


Actual barriers to enter France

80 firms exporting to France rated the same

factors as follows:

  • Technical differences: 37%

  • Bureaucracy and lack of open mindness: 38%

  • Long decision-making process: 25%

  • Long payments: 31%

  • Language and culture: 49%


Language and culture are the major barriers for Danish companies wishing to settle in France


France

French

Pyramidal

Hierarchy, elite

Formal

Authoritative

Long

Denmark

English

Flat

Line, equality

Informal

Individualism

Offices close at 16:00

Language and cultural differences

Business language

Business structure

Organization

Working hours


The role of the Embassy

To prepare and assist Danish companies getting beyond the French barriers

  • Rules and regulations

  • Labor law and salary comparison

  • Bureaucracy for specific sectors

  • Language

  • Others


Kvadrat S.A.19, rue des Saints Pères F-75006 ParisT 0033 01 42 44 29 29F 0033 0142 44 29 20


  • A European leader in soft furnishing designs and curtains to the contract market.

  • 2001/2002 sales: €50M.

  • Seven international subsidiaries, plus numerous distribution agreements (United States, Iceland, etc.).


Why France?

  • One of the biggest markets in Europe.

  • 60 million people.

  • Huge business potential.

  • French sub: responsible for France, Spain and Portugal.


Kvadrat’s values

  • High quality

  • Design

  • Open mindness

  • Flexibility

  • Innovation

  • Simplicity


Kvadrat’s products

  • Curtains

  • Upholstery

  • Screen fabrics


Kvadrat’s clients

  • Upscale hotels (Hotels Sofitel, Hilton Hotels, Metropolitain London, etc.),

  • Retail concept stores (Cartier, Louis Vuitton, Lacoste),

  • Offices (Danone, Carrefour, London City Hall, European Parliament Strasbourg, etc.),

  • Cruise (Queen Mary 2, Queen Elizabeth 2)


Constraints in France (1)

  • High cost of labour

  • Lack of flexibility

  • Strikes

  • Language problems

  • Bureaucracy

  • Business delays


Constraints in France (2)

  • 35 hour week

  • Low service quality

  • Heavy fiscality

  • Working mentality

  • Lawyers


Positive points, still

  • Business potential

  • Skilled work force

  • International opening

  • Fiscal improvements


Essential Advice

  • To foreign investors:

    take your precautions

  • To the French authorities:

    invest more in young crops


Many thanks to

  • Niels Kaae

    Attaché Commercial

    Ambassade Royale de Danemark

  • Joegen S.L. Hansen

    Country Director

    Kvadrat SA


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