The Study of Marketing of Taiwanese One Town One Product in European market: A Case of French market

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Soochow University

Global Business Program, School of Business Thesis

The Study of Marketing of Taiwanese One Town One Product in European

market: A Case of French market

Student:Huei-Jing Wu (吳徽菁) Advisor:Dr. Kai-Chieh Hu (胡凱傑)

July, 2016

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The Study of Marketing of Taiwanese One Town One Product in European

market: A Case of French market

A Thesis Submitted to Soochow University

in partial Fulfillment of the Requirements for the Degree of

Master of Business Administration In

Global Business Program

By

Huei-Jing Wu (吳徽菁)

Global Business program, School of Business, Soochow University July, 2016

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Acknowledgement

兩年的研究所的生活一轉眼就接近尾聲,這一路上,有許多的歡樂與辛苦,挫 折與想放棄的衝動總在面臨困難的時候悄悄冒出頭,特別是對穿梭在工作與學校的 我來說,但是我知道唯有堅持才能得到最後甜美的果實,謝謝東吳大學給我一個學 習的環境與機會,讓我在學習的過程裡得到許許多多的幫助與支援,也給我繼續往 前的動力與力量。當研究所學生不容易,但是我體會到當學生是最幸福的事,沒有 煩惱與憂慮,卻有所有人給你的支持。

我要謝謝東吳大學讓我有機會到法國學習,因為這個經驗讓我對未來開了另一 扇窗,認識更多來自世界不同角落的人,體驗不一樣的學習生活,豐富我的人生。

也謝謝國際商管學程的秘書-江怡靜小姐,妳總是為我找到應對問題的解決方法,

沒有妳在背後默默地幫忙,我無法順利面對所有的困難。另外,我要特別感謝我的 指導老師-胡凱傑老師,感謝老師給我來法國學習的機會與耐心的指導,也謝謝您 不管時差的問題,總是在下班過後還願意回答我所有的問題,我也特別珍惜在法國 學習的機會與時光。再者,我要感謝國際商館學程的主任-詹乾隆教授,謝謝您的 幫助與照顧,讓我在申請到法國學習的過程得到許多幫助。

最後,我要感謝我的家人,願意陪伴我完成我的夢想,給我往前的動力與所有 的幫助,願意包容我的倔強與缺點,沒有你們,沒有今天的我。感謝所有在我身邊 的人,讓我知道我是幸運且幸福的。

最後謹將此論文獻給我最親愛的家人、朋友與東吳大學。

吳徽菁 謹誌於 東吳大學國際商管學程系碩士班 中華民國一○五年六月

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Abstract

The objective of Taiwanese government’s “One Town One Product” program is to promote Taiwanese specialties globally and to aid small enterprises in exporting their products to the world. It aims to make Taiwanese culture become more well-known and popular in an attempt to encourage consumption in OTOP products. However, due to the lack of knowledge about the local market and distribution channels, the huge cultural gap between European and Asian cultures, and the limited information about consumers, obstacles for OTOP products to be presented in French markets exist. These uncertainties then lead to companies’ unwillingness to export in European market since they might encounter great difficulties.

This research aims to explore the potential of entering French market and to discover the possible entry modes that companies may choose taking into account of different factors which determine their success. By analyzing the distribution channels environment, competition, pricing strategies, consumer behavior and acceptance of new products and the cognition of Taiwanese cultures and products, this research offers useful information and recommendations for Taiwanese companies. Furthermore, a SWOT analysis is provided to define the strength, weakness, opportunities and threats that OTOP products may face in order to adopt the most appropriate strategy and to measure the risks involved. Different research methods are used in this research, such as literature review, field research and questionnaire.

According to the research conclusion, French consumers feel interested in OTOP products and are willing to know more about Taiwanese products and culture. However, French consumer’s knowledge in Taiwan is generally insufficient and they usually find

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difficulties in distinguishing Taiwan and China. As a consequence, Taiwanese government needs to focus first on promoting Taiwanese culture in order to increase people’s cognition in Taiwan. Besides, changing French consumers’ preference and diet habit may be a huge challenge for Taiwanese companies since French culture is influential and French consumers are usually very proud of it. Yet, as a country with many immigrants and under the influence of globalization, French consumers become more and more open and curious to exotic cultures. More, the increasing numbers of Asian students in France also stimulate the needs for Asian products.

Finally, this research provides some recommendations for Taiwanese companies which seek to enter French market. Huge exporting and distributing costs and risks may be involved due to the unfamiliarity of the local distribution channels and the uncertainty of consumer’s behavior. Therefore, small enterprises should consider first exporting OTOP products to nearby countries in Asia. Once their products start to gain popularity and reputation is built globally, and French consumers have sufficient knowledge in OTOP products, they can start to consider entering French market. On the contrary, huge enterprises, which have more power and capital, can start with establishing close relationship with local distribution channels in France and communicating with them in order to meet each other’s goals and strategies, and to increase their interests and confidence in their products. What is more, the similarity between Taiwanese and Chinese cultures not only arouses difficulties for consumers to distinguish but also brings opportunities for Taiwanese companies. Since Chinese culture is becoming more and more popular, higher quality and safety could be the advantages of OTOP products to replace or compete with Chinese products

Keyword: OTOP products, entry modes, distribution channels

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Content

ACKNOWLEDGEMENT ... I ABSTRACT ... II CONTENT ... IV

INTRODUCTION...1

1.1BACKGROUND AND MOTIVATION ... 1

1.2RESEARCH PURPOSE ... 2

1.3RESEARCH SCOPE ... 3

1.4RESEARCH PROCESS ... 4

1.5RESEARCH CONCEPT ... 8

LITERATURE REVIEW ...10

2.1REASONS FOR ENTERING NEW MARKETS ... 10

2.2ENTRY STRATEGY ... 14

2.3FACTORS IN THE ENTRY MODE DECISION ... 21

FRENCH MARKET AND DISTRIBUTION CHANNEL ANALYSIS ...27

3.1MARKET OVERVIEW ... 27

3.2DISTRIBUTION CHANNELS ANALYSIS ... 35

3.3COMPETITION ANALYSIS ... 42

3.4PRICE COMPARISON AMONG COMPETITORS ... 45

3.5CONSUMER ANALYSIS ... 50

RESEARCH DESIGN ...55

4.1FIELD RESEARCH ... 55

4.2QUANTITATIVE RESEARCH ... 82

QUESTIONNAIRE RESULT AND STATISTICAL ANALYSIS ...88

5.1COGNITION OF CHINESE OR TAIWANESE PRODUCTS ... 88

5.2CONSUMER BEHAVIOR AND PREFERENCE FOR CHINESE OR TAIWANESE FOOD PRODUCTS... 94

5.3CONSUMER BEHAVIOR AND PREFERENCE FOR CHINESE OR TAIWANESE HANDICRAFT ... 114

5.4PURCHASE INTENTION OF CONSUMER ... 129

5.5EVALUATION OF DEGREE OF IMPORTANCE FOR TAIWANESE LOCAL PRODUCTS ... 131

CONCLUSION AND DISCUSSIONS ...133

6.1CONCLUSION ... 133

6.2DISCUSSIONS ... 135

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6.3SWOT ANALYSIS FOR OTOP PRODUCTS TO ENTER INTO FRENCH MARKET ... 137

6.4RESEARCH LIMITATIONS AND SUGGESTIONS ... 139

REFERENCE ...141

APPENDIX I – QUESTIONNAIRE IN CHINESE ...144

APPENDIX II – QUESTIONNAIRE IN FRENCH ...146

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Tables

Table 1-1 Main focus of OTOP products ... 3

Table 2-1 Motives for going internationally ... 11

Table 2-2 Entry mode ... 17

Table 3-1 Total population by sex and age in France ... 29

Table 3-2 Structure of nationalities of immigration in France ... 31

Table 3-3 Household structure in France ... 32

Table 3-4 Sales revenue of retail channels in France ... 36

Table 3-5 Sales revenue of different retail channels in France (Euro billion) ... 37

Table 3-6 Numbers of different retail channels in France ... 38

Table 3-7 Retail channels under different groups - hypermarket ... 38

Table 3-8 Retail channels under different groups - supermarket ... 39

Table 3-9 Retail channels under different groups (in %) ... 39

Table 3-10 Retail channels under different groups – discount store ... 40

Table 3-11 Retail channels – malls and department stores (in%) ... 40

Table 3-12 Product consumption online (in million euro) ... 41

Table 3-13 Online shopping platform (in %) ... 42

Table 3-14 Competing products in different retail channels ... 44

Table 3-15 Pricing strategies of different distribution channels for food products ... 46

Table 3-16 Pricing strategies of different distribution channels for arts and handicrafts47 Table 3-17 Price comparison of processed food products from different countries .... 48

Table 3-18 Prices for different types of products ... 49

Table 3-19 Convenient food products ... 52

Table 4-1 Field research plan - Paris ... 56

Table 4-2 Field research plan - Lille ... 58

Table 4-3 Sample gender ... 85

Table 4-4 Sample age ... 86

Table 4-5 Sample profession ... 86

Table 4-6 Sample educational level ... 87

Table 5-1 Purchasing experience or awareness of Chinese or Taiwanese food products and handicrafts - by city ... 88

Table 5-2 Purchasing experience or awareness of Chinese or Taiwanese food products and handicrafts - by gender... 89

Table 5-3 Purchasing experience or awareness of Chinese or Taiwanese food products and handicrafts - by age ... 89 Table 5-4 Consumers’ level of understanding for Chinese or Taiwanese food products and

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arts and handicraft- by city ... 90

Table 5-5 Consumers’ level of understanding for Chinese or Taiwanese food products and arts and handicraft- by gender... 91

Table 5-6 Consumers’ level of understanding for Chinese or Taiwanese food products and arts and handicraft- by age ... 92

Table 5-7 Image of Chinese or Taiwanese food products and arts and handicrafts for consumers – by city ... 93

Table 5-8 Image of Chinese or Taiwanese food products and arts and handicrafts for consumers – by gender... 93

Table 5-9 Image of Chinese or Taiwanese food products and arts and handicrafts for consumers – by age ... 94

Table 5-10 Preference of consumers for Chinese or Taiwanese food – by city ... 95

Table 5-11 Preference of consumers for Chinese or Taiwanese food – by gender ... 96

Table 5-12 Preference of consumers for Chinese or Taiwanese food – by age ... 96

Table 5-13 Consumers’ willingness to know more about or to try Taiwanese food products – by city... 97

Table 5-14 Consumers’ willingness to know more about or to try Taiwanese food products – by gender ... 98

Table 5-15 Consumers’ willingness to know more about or to try Taiwanese food products – by age ... 99

Table 5-16 Consumers’ habit for drinking tea – by city ... 100

Table 5-17 Consumers’ habit for drinking tea – by gender ... 100

Table 5-18 Consumers’ habit for drinking tea – by age ... 101

Table 5-19 Consumers’ tea preference – by city ... 101

Table 5-20 Consumers’ tea preference – by gender ... 102

Table 5-21 Consumers’ tea preference – by age ... 102

Table 5-22 Frequency of consuming Chinese food products – by city ... 103

Table 5-23 Frequency of consuming Chinese food products – by gender ... 104

Table 5-24 Frequency of consuming Chinese food products – by age ... 104

Table 5-25 Reasons for choosing Chinese food products – by city ... 105

Table 5-26 Reasons for choosing Chinese food products – by gender ... 106

Table 5-27 Reasons for choosing Chinese food products – by age ... 107

Table 5-28 Place of consumption – by city ... 108

Table 5-29 Place of consumption – by gender ... 108

Table 5-30 Place of consumption – by age ... 109

Table 5-31 Amount of monthly consumption – city ... 110

Table 5-32 Amount of monthly consumption – gender ... 110

Table 5-33 Amount of monthly consumption – age ... 111

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Table 5-34 Product selection – by city ... 112

Table 5-35 Product selection – by gender ... 112

Table 5-36 Product selection – by age ... 113

Table 5-37 Consumers’ handicrafts preference - city ... 115

Table 5-38 Consumers’ handicrafts preference - gender ... 115

Table 5-39 Consumers’ handicrafts preference - age ... 116

Table 5-40 Willingness of consumers to know more about or to try Chinese or Taiwanese arts and handicrafts – by city ... 117

Table 5-41 Willingness of consumers to know more about or to try Chinese or Taiwanese arts and handicrafts – by gender ... 117

Table 5-42 Willingness of consumers to know more about or to try Chinese or Taiwanese arts and handicrafts – by age ... 118

Table 5-43 Frequency of purchasing Chinese or Taiwanese arts and handicrafts - by city ... 119

Table 5-44 Frequency of purchasing Chinese or Taiwanese arts and handicrafts-by gender ... 119

Table 5-45Frequency of purchasing Chinese or Taiwanese arts and handicrafts - by age ... 120

Table 5-46 Reasons for purchasing Chinese or Taiwanese arts and handicrafts–by city ... 121

Table 5-47 Reasons for purchasing Chinese or Taiwanese arts and handicrafts–by gender ... 121

Table 5-48 Reasons for purchasing Chinese or Taiwanese arts and handicrafts–by age ... 122

Table 5-49 Product selection for Chinese and Taiwanese arts and handicrafts - city 122 Table 5-50 Product selection for Chinese and Taiwanese arts and handicrafts -gender123 Table 5-51 Product selection for Chinese and Taiwanese arts and handicrafts - age 123 Table 5-52 Post-purchase evaluation for Chinese and Taiwanese arts and handicrafts – by city... 124

Table 5-53 Post-purchase evaluation for Chinese and Taiwanese arts and handicrafts-by gender ... 124

Table 5-54 Post-purchase evaluation for Chinese and Taiwanese arts and handicrafts-by age ... 125

Table 5-55 Consumers’ spending on each purchase – by city ... 126

Table 5-56 Consumers’ spending on each purchase – by gender ... 126

Table 5-57 Consumers’ spending on each purchase – by age ... 127

Table 5-58 Place of consumption for Chinese and Taiwanese arts and handicrafts – by city ... 128

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Table 5-59 Place of consumption for Chinese and Taiwanese arts and handicrafts–by gender ... 128 Table 5-60 Place of consumption for Chinese and Taiwanese arts and handicrafts – by age ... 129 Table 5-61 Consumers’ reaction to products when emphasizing made-in-Taiwan.... 130 Table 5-62 Purchase intention of consumers for Taiwanese OTOP products ... 131 Table 5-63 Evaluation of Degree of Importance for Taiwanese Local Products ... 132 Table 6-1 Processes for building connections with distribution channels in France . 136 Table 6-2 SWOT analysis ... 137

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Figures

Figure 1-1 Research process ... 7

Figure 1-2 Research Concept ... 8

Figure 2-1 Drivers to go International ... 13

Figure 2-2 Internationalization process ... 15

Figure 2-3 Elements of the entry strategy ... 16

Figure 2-4 Characteristics of different entry modes ... 19

Figure 2-5 Two foreign market entry modes ... 20

Figure 2-6 Factors in the foreign market entry mode decision ... 21

Figure 2-7 Eclectic framework of the entry mode choice ... 22

Figure 2-8 Factors influencing choice of foreign entry modes ... 26

Figure 3-1 Different regions in France ... 28

Figure 3-2 The main cities in France ... 28

Figure 3-3 Personal disposable income in France 1950-2015 (Euro millions) ... 33

Figure 3-4 Consumer spending trend in France 1950-2015 (Euro millions) ... 33

Figure 3-5 Inflation rate from 2010 to 2020 (Historical data and forecast) ... 34

Figure 3-6 Unemployment rate in France ... 35

Figure 3-7 Competition in processed food products industry ... 43

Figure 4-1 Paris center districts... 56

Figure 4-2 Lille center district... 57

Figure 4-3 Forum des Halles ... 58

Figure 4-4 Japanese district ... 59

Figure 4-5 K-Mart supermarket ... 60

Figure 4-6 Juji-ya ... 61

Figure 4-7 Ace Mart ... 62

Figure 4-8 Carrefour ... 63

Figure 4-9 Monoprix ... 64

Figure 4-10 Lafayette ... 65

Figure 4-11 Lafayette Maison ... 66

Figure 4-12 Printemps ... 67

Figure 4-13 Palais des Thés ... 68

Figure 4-14 Le bon marché ... 69

Figure 4-15 La grand epicerie ... 70

Figure 4-16 Art Bamboo ... 71

Figure 4-17 China Town ... 72

Figure 4-18 Paris Store ... 72

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Figure 4-19 Tang Frère ... 73

Figure 4-20 L’Empire des Thès ... 74

Figure 4-21 Mariage Frères ... 75

Figure 4-22 Massage boutique ... 75

Figure 4-23 Euralille ... 76

Figure 4-24 Dia ... 77

Figure 4-25 Picard ... 78

Figure 4-26 Rue Solférino ... 79

Figure 4-27 Marché Wazemmes ... 80

Figure 4-28 Taiwanese Food products ... 81

Figure 4-29 Asian Supermarkets in Wazemmes ... 82

Figure 4-30 Questionnaire structure... 83

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Introduction

1.1 Background and Motivation

Nowadays, Taiwanese traditional industries are facing a downturn due to the emergence of modern industries and consumers’ decreasing interests. Products from these traditional industries are losing competitiveness since they cannot meet consumers’ needs anymore. As a consequence, companies in these industries are undergoing difficulties and fighting to survive by transforming themselves.

In attempt to assist and preserve traditional industries which represent Taiwanese cultures and specialties, Taiwanese government conceived “One Town One Product”

program which is based on “One Village One Product” program in Japan. This program aims to promote Taiwanese local products which are unique in terms of history, culture, art and special characteristics. These products are marketed and they usually symbolized Taiwan.

The objective of this research is to discover French market in order to realize the possibility of entering into France and further into other countries in Europe. Existing researches rarely focus on European market. Thus, Taiwanese firms usually face difficulties for gaining the access to know more about European market and consumer behavior. Providing useful and practical information and analysis about French market and its distribution channels is then the motivation of this research.

As new entrants, OTOP companies may encounter these following challenges in French market:

 Lack of knowledge in consumers’ preference and behavior.

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 Unfamiliarity with distribution channels

 Lack of competition information.

 Difficulties in meeting French regulation and safety requirements.

 Huge cultural gap between Europe and Asia.

 Limited resources and high costs.

Therefore, this research also aims to offer some recommendations for Taiwanese firms and government as to choose from the most appropriate strategy and entry mode.

1.2 Research Purpose

The purpose of this research is to gain further insight into the French market and consumer behavior in order to realize the potential for the promotion and marketing of Taiwanese local cultural products in French market. Furthermore, by collecting data of the market and consumers and analyzing the competition and opportunities for the new entry into the market, this research aims to provide some useful information and recommendation for those who seek to promote Taiwanese local cultural products in France.

The specific purposes of this research are as follow:

1. To explore the distribution channels in two main cities in France.

2. To realize the preference and consuming behavior of consumers in France.

3. To analyze the competition and the pricing of the similar products.

4. To determine the potential distribution channels for Taiwanese local products.

5. To provide information for the new entry into French market.

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1.3 Research Scope

This research focuses mainly on the French market so as to discover the consumer behavior and the retailing channels in France, also to find out the potential strategies for entering the European market. As to the source of data and field research, two main cities in the north of France, Paris and Lille, are the main emphasis in this research.

According to Small and Medium Enterprise Administration (SMEA), OTOP products are divided into six different categories as follow:

1. Arts and handicrafts 2. Processed food

3. Innovative and lifestyle products 4. Local gastronomy

5. Leisure products 6. Festival products

Among the categories above, the principle types of products in this research are arts and handicrafts, processed food and leisure products. More specifically, the main focus of products in each of these three categories is shown below:

Table 0-1 Main focus of OTOP products

Category Product

Arts and handicrafts Pottery and porcelain, bamboo, glasses Processed food Sauce, cans, biscuits, cookies, frozen food

Leisure products Message oil, cosmetics

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1.4 Research Process

The research process is shown in Figure 1-1. Firstly, this research begins with problem statement in order to determine the research topic, and then, specifies the purpose, dimension and method of the research. Next steps are literature review and data collection about consumers, distribution and competition through field research and questionnaire in order to have a better grasp of the market. Then, based on the information collected, a further market analysis is completed. The research concludes with the results from the questionnaire and market analysis, then it states the challenges and opportunities. Finally, it provides recommendations for new entry into French market.

More detailed explanation of each process is indicated as in the following.

(1) Problem statement

The problem statement is the topic of this research which is based on its background and motivation. In an effort to facilitate the promotion and marketing of Taiwanese local cultural products in Europe, especially in France, this research is conducted. The topic is to analyze the potential for new entry of Taiwanese local cultural products into French market.

(2) Determining the research purpose, dimension and method

The main purpose of this research is to gain further insight into the French market and its consumer behavior in order to provide useful information for Taiwanese companies who attempt to export Taiwanese local cultural products into European market. The dimension is French market and the source of data collection is in Paris and Lille. Field research and questionnaire research are both adopted for

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exploring the market and consumers.

(3) Literature review Researches and literature in promotion and marketing of Taiwanese local cultural products, market entry mode, and distribution channels strategies are reviewed and mentioned in an attempt to relate to the problem statement of this research.

(4) Exploring the market and distribution channels in France

Through information collected from different literature and articles, this research explores the market environment in France and its most dominating distribution channels which are the easiest and most efficient mediums to promote new products in order to catch the attention of potential consumers.

(5) Field research in two main cities

A field research is conducted in two main cities, Paris and Lille, in an effort to realize the intensity of competition and the retailing channels. The focus of this field research is on the channels where Asian products can be purchased, such as: large shopping malls, department stores, supermarkets, China town, Chinese supermarkets, furniture and decoration shops,

(6) Questionnaire design A French questionnaire is designed and divided into five parts for discovering consumers’ purchase intention and behavior, and to evaluate the degree of importance for consumers regarding to Taiwanese local cultural products when purchasing.

(7) Data processing and statistical analysis about consumers After conducting a questionnaire survey, a statistical analysis is completed in

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order to process data collected and to indicate consumers’ reaction and feedback after purchasing and potential consumers’ intention to purchase in the future.

(8) Competition analysis for OTOP products in France

By indicating the existing competitors for similar products and comparing different pricing strategies, this research aims to analyze the intensity of the competition in the market which could be an obstacle for new entrants.

(9) Challenges and opportunities analysis for new entry

A SWOT analysis is adopted for demonstrating the strength and weakness of Taiwanese local cultural products, and for showing the challenges and opportunities new entrants might encounter in the future.

(10) Conclusions and recommendations According to the results of statistical analysis and the market analysis regarding

consumers and distribution channels, this research concludes by indicating the potential for promoting Taiwanese local cultural products in France, and provides recommendations for new entrants into French market.

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Literature review about French market and consumer behavior

Exploring the market and distribution channels in France

Field research in two main cities

Discovering consumer behavior through

questionnaire

Data processing and statistical analysis about consumers

Competition analysis for OTOP products in French market

Challenges and opportunities analysis for new entry

Conclusions and Recommendations Determining the research purpose, dimension and method

Problem statement

Figure 0-1 Research process

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1.5 Research Concept

The research concept in this study is through three different means as shown in Figure 1-2: Literature and papers review, field research, questionnaire.

Figure 0-2 Research Concept

(1) Literature and papers review

Both domestic and international literature and papers on the subject of market entry mode, French market environment, distribution channels and consumer behavior are reviewed and studied so as to be served as references in this research and to obtain a further analysis about French market and its consumers.

(2) Field research

For verifying the viewpoints from the papers reviewed and providing a more concrete analysis, a field research is carried out in Paris and Lille. The main focuses in this research are shopping malls, department store, supermarkets, Asian supermarket

Research Method Literature and papers review

Questionnaire Field research

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and handcraft shops. Although statistical data cannot be obtained through a field research, consumer behavior, prices, similar products, how products are presented in different distribution channels can be observed in order to have a better understanding of the market.

(3) Questionnaire

A French questionnaire with 32 questions from five different parts is designed to obtain the subjective opinions of people being surveyed in order to reflect general consumers’ purchase intention and purchasing behavior. A further statistical analysis is conducted for interpreting the data collected and for getting more concrete results.

These data are collected in Paris and Lille which are two main cities in the north of France.

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Literature Review

2.1 Reasons for entering new markets

Firms usually have different motivations for entering into new markets.

According to Root (1994), the new global economy has created business environments that require firms to abandon the traditional thinking of the domestic market but to look at business from a more international perspective. That is to say, firms are pushed to react differently in order to catch up with the new trend and to survive globally. Globalization is not only a new way of doing business but also brings tremendous opportunities and benefits to firms as stated Friedman (1999).

Therefore, expanding into different markets in the world is the key to success since firms will benefit from it.

(1) Theory of Hollensen (2008)

Hollensen (2008) suggested two main motivations for internationalization as indicated in Table 2-1. These are proactive motives and reactive motives. Proactive motives aim to increase a firmr internatioe key ces and to lead in a market while reactive motives are reactions to pressure and competition.

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Table 0-2 Motives for going internationally

Proactive motives Reactive motives

- Profit and growth goals - Managerial urge

- Technology competence/unique product

- Foreign market opportunities - Economies of scale

- Tax benefits

- Competitive pressure

- Domestic market: Small and saturated - Overproduction/ excess capacity - Unsolicited foreign orders

- Extend sales of seasonal products - Proximity to international customers/

psychological distance

Source: Hollensen (2008), Jaroslav Ďaďo, Jan W. Wiktor, Agnieszka Żbikowska Generally speaking, reasons for going internationally can be categorized into three groups as following.

 Economic reasons: To increase sales or to reduce production costs.

 Market-related reasons: To increase market expansion and to seek out new customers.

 Political reasons: To avoid restriction and regulations.

(2) Theory of Liu (2010)

According to Liu (2010), firms have mainly 8 motives for going internationally.

 International market expansion

 Access to cheaper raw materials

 Access to cheaper labors

 Benefits in foreign countries

 Increase synergies

 Cost reduction

 Avoid governmental regulation

 Tax benefits

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(3) Theory of Harrison, A. L., Dalkiran, E. and Elsey, E. (2000)

Harrison, A. L., Dalkiran, E. and Elsey, E. (2000) suggested two main factors as drivers for firms to go international. These are overarching factors and firm-specific factors. Overarching factors include primary motives (a firm’s objectives and aims), the changing international environment, country-specific factors.

Firm-specific factors includes access to markets and resources and the need to reduce costs.

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Figure 0-3 Drivers to go International

Source: Harrison, A. L., Dalkiran, E. and Elsey, E. (2000)

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2.2 Entry strategy

1. Internationalization process

(1) Theory of Kotler and Armstrong (2001)

According to Kotler and Armstrong (2001), there are five stages for a firm to go internationally as shown in Figure 2-2. Firstly, a firm should assess the pros and cons for going internationally in order to realize the potential opportunities and risks it might face. In other world, it needs to know if the firm is able to survive and to finally success globally. Second, it has to decide which market to enter according to its comparative advantages and strategies. Then, different entry modes should be considered so as to choose the most appropriate one which meets a firm’s strategy. A firm usually makes entry modes decisions depending on the level of controls, resource commitments and dissemination risks they would like to engage in the new market.

Next, it moves to the question of using either a standardized marketing strategy or creating a new one for adapting to the new market since consumers in different markets might have completely different preference. Finally, it has to decide a global marketing organization which takes care of its international activities. According to Kotler and Armstrong (2001), a firm usually begins with setting up an export department, then an international division is created and finally they grow into a global organization.

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Figure 0-4 Internationalization process Source: Kotler and Armstrong (2001)

(2) Theory of Root (1994)

According to Root (1994), in order to success, the selection of entry mode involves 5 steps as shown in Figure 2-3.

A. Assessing products and foreign market:

Firstly, a firm should choose products and target market they would like to engage in by assessing the risks and potentials.

B. Setting objectives and goals.

Objectives and goals of entering new market should then be set in order to direct employees and its management team.

C. Choosing the entry mode.

After assessing its competitive advantages, a firm should choose the best entry mode and strategies to assure its success.

Decide whether to to go international or not

Decide which markets to enter

Decide how to enter the market

Decide global marketing programs

Decide global marketing organizations

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D. Designing the marketing plan.

Specific marketing plan should be conceived for reaching and communicating potential consumers in new market.

E. Establishing control system.

Operational activities should be closely monitored and controlled in order to assess the result.

Figure 0-5 Elements of the entry strategy Source: Root (1994)

2. Entry mode

Selecting a mode for entering a new market has become one significant strategic decision an international firm needs to make in today’s rapidly growing and internationalizing market as stated Hollensen (1998). Ekeledo and Sivakumar (2004) stated that the foreign market entry selection is highly significant for the company’s future performance and survival on the international markets. Companies have to take into account of different entry strategies for different target markets. According to Deresky (2000), managers should consider the best strategy to enter a specific market

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and evaluate the risks and factors that different entry strategies might bring.

As Root (1994) stated, an international market entry mode creates possibility for a company's products, technology, human skills, management or other resources to enter into a foreign country. That is, according to Bradley (2002), a decision of the level of resource commitment and control in the new market. This decision also relates to the risk of a firm depending on the strategy it takes.

(1) Theory of Root (1994)

Root (1994) suggested 3 market entry modes as shown in Table 2-2. These entry modes are mainly based on two concepts which are exporting its products to the target country from a production base outside the country, or transporting its resources in technology, capital, human skills to the target country and use the local resources to produce products for sale in local markets.

Table 0-3 Entry mode

Entry mode Export entry modes Contractual entry modes Investment entry modes

Strategy

● Indirect

● Direct agent (Distributors)

● Direct branch (Subsidiary)

● Licensing

● Franchising

●Technical agreements

● Service contract

● Management contracts

● Construction or turnkey contracts

● Contract manufacture

● Co-production agreements

● Solo venture- New establishment

● Solo venture- Acquisition

● Joint venture- New establishment or acquisition

Source: Root (1994)

According to Root (1994), in export entry modes, a firm’s product is produced outside the target country and is transferred to it for the sale. As to contractual entry

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modes, a firm aims to establish long-term non-equity relationship with a company in the target country in order to facilitate its sales and operation. On the contrary, in investment entry modes, it involves a firm’s high level of engagement and ownership in the target market.

(2) Research of C. W. L. Hill et al.(1990)

In the research of C. W. L. Hill et al.(1990), they identified that much of international business literature focuses mainly on three different entry modes as shown below. Each entry mode has different level of control, resource commitment and dissemination risk.

 Licensing or franchising: Non-equity contractual mode.

 Joint-venture: Equity-based cooperative venture.

 Wholly-owned subsidiary: Totally-controlled entry mode

Different entry modes involves a different level of control over the foreign operation (Anderson and Gatignon, 1986; Calvet, 1984; Caves, 1982; Davidson, 1982;

Root,1987). Control includes authority over significant decision-making about operation and strategies. The level of control is lowest for licensing and highest for a wholly owned subsidiary. Besides, according to Vernon (1983), each entry mode requires different resource commitments which lead to costs and assets dedication in the target market. Resource commitments are the lowest for licensing and highest for wholly-owned subsidiary which needs to invest largely in order to be presented in the new market. Finally, dissemination risk implies the risk that a firm’s specific advantages in know-how will be expropriated by a licensing or joint venture partner (Hill and Kim, 1988). Since a firmrce commitments which lead to costs and assets

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dedicaadvantage (Casson, 1982, Caves, 1982), it should be careful when choosing the entry mode for new market so as to protect itself. The risk of dissemination is lowest for wholly-owned subsidiary and highest for licensing. Characteristics of different entry modes can be found in Figure 2-4.

Source: C. W. L. Hill et al.(1990)

Figure 0-6 Characteristics of different entry modes

Source: Anderson and Gatignon (1986), V. Kumar – A contingency framework for the mode of entry decision

(3) Theory of C.Y., Liu (2010)

According to C.Y., Liu (2010), there are mainly two modes for entering new market. These are production in home country and production in target country.

Production in home country implies using a firm’s resource at home country to produce and then export products to the target country. On the contrary, production in

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target country implies transferring a firm’s technology, human resources, equipment and capital in the target country and combining the local resources in order to produce and sale at the target market. In addition, entry mode decisions can be divided into direct and indirect activities. Direct strategy involves high level of risks and complexity while indirect strategy involves lower commitments and risks. Generally, an international firm starts with production in home country and indirect investment in order to avoid the uncertainty and risk it might face when going internationally.

After being more familiar with the target market, it would decide to engage itself more in it in order to increase its control. As indicated in Figure 2-5, production in home country includes indirect and direct exports while production in foreign country includes contractual mode – indirect, and investment mode – direct.

Figure 0-7 Two foreign market entry modes

Source: http://www.slideshare.net/kkjaisawal/ibl-42738813

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2.3 Factors in the entry mode decision (1) Theory of Root (1994)

According to Root (1994), there are 4 external factors and 2 internal factors which affect manager’s foreign market entry mode decision as demonstrated in Figure 2-6.

Figure 0-8 Factors in the foreign market entry mode decision Source: Root (1994)

(2) Theory of Hill, Kim and Huang (1990)

Hill, Kim and Huang (1990) suggested three main variables which determine and influence the entry mode decision: strategic variables, environmental variables, and transaction-specific variables. These variables are shown in Figure 2-7.

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Figure 0-9 Eclectic framework of the entry mode choice Source: Hill, Kim and Huang (1990)

A. Global strategic variables

 Global concentration

When global competitive interdependence exists, firms can influence each other in any national markets in which they compete (Waston 1982; Kim and Mauborgne 1988). Therefore, high control entry modes will be preferred since a frim cans have the ability to ask its subsidiaries in different countries to assist in the competition in order to benefit the firm as a whole.

 Global synergies

According to Willing (1978), global synergies increase when the firm’s resources are shared between the firm and its partners. The positive impact of global synergies can be actualized through enhanced innovative capability or cost reduction (Baumol, Panzer and Willing 1982). Therefore, when global synergies can be created and benefit the firm, it will choose entry modes with high level of control.

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 Global synergy motivation

Global synergy motivation involves the motivation to set up a strategy for future global expansion, a better position in competing with its rivals and to create efficiency maximization. Firms exercising global strategic motivations will prefer entry modes with high control since tight coordination is required for benefiting the overall organization (Hedlund 1986).

B. Environmental variables

 Country risk

When the country risk of the target market is high, a firm would avoid its exposure to it by limiting its resource commitments in that country (Kobrin 1983;

Vernon 1983; Bradley 1977).

 Location unfamiliarity

The greater the distance between the home and target country in terms of culture, economic system and business practices, the more likely a firm will prefer licensing or joint venture in order to limit its resource commitment due to the uncertainty of success (Anderson and Coughlan 1987; Davidson 1980; Green and Cunningham 1975; Johanson and Vahlne 1977; Kobrin 1983; Stopford and Wells 1972).

 Demand uncertainty

As indicated Harrigan (1983), when future host demand for a firm’s product in the target country is unpredictable, a firm may be unwilling to invest huge resources since it can keep its sunk costs low when it decides to exit the market at the end.

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 Intensity of competition

When the intensity of competition in the target market is high, a firm will prefer entry modes which require low resource commitments since the target market will not be profitable.

C. Transaction-specific variables

 Value of firm-specific know-how

When the value that can be generated and earned from firm-specific know-how is large, a firm will prefer to choose an entry mode with high control in order to protect its know-how from being expropriated by licensees or venture partners.

 Tacit nature of know-how

According to Nelson and Winter (1982) and Teece (1977), when the nature of a firm’s know-how is tacit, it is difficult to articulate. As a consequence, licensee or venture partners usually find difficulties to operate as expected. Therefore, in this case, a firm will favor high control entry modes so as to ensure the success of its international activities.

(3) Ravelomanana, F., Yan, L., Mahazomanana, C. and Miarisoa, L.P. (2015) Ravelomanana, F., Yan, L., Mahazomanana, C. and Miarisoa, L.P. (2015) summarize factors influencing choice of foreign entry modes as indicated in Figure 2-8.

A. External facotrs

According to Hollensen (2001) , there are six external factors influencing

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company’s choice of foreign entry mode. These are showed below.

 Socio-cultural distance

 Country risk and demand uncertainty

 Market size and growth

 Direct and indirect trade barriers

 Competitive environment

 Small number of relevant intermediaries available

In addition, De Búrca, Brown & Fletcher (2004) suggested the following additional external factors.

 Laws and regulations

Root (1994) also includes another additional factor as following.

 Geographical distance

B. Internal Factors

Brassington & Pettitt (2000) suggested some internal factors which influence the choice of foreign market entry mode as shown below.

 Speed

 Costs

 Payback

 Long-term objectives

Besides, according to Hollensen (2001), some additional factors are mentioned as following.

 Company size

 International experience

 Product complexity and differentiation

 Risks

 Control

 Flexibility

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De Búrca, Brown & Fletcher (2004) includes one more internal factor:

 Managerial Reasons

Fredrik & Webster (1992) suggested another internal factor:

 Relationships

Figure 0-10 Factors influencing choice of foreign entry modes

Source: Ravelomanana, F., Yan, L., Mahazomanana, C. and Miarisoa, L.P (2015)

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French Market and Distribution Channel Analysis

3.1 Market Overview

1. France and the main cities

As the largest country in Western Europe, France plays a significant role in the world economically, politically and culturally. It is a well-developed country with its GDP being the sixth largest and its economy being the fifth largest globally (World Bank, 2014). In addition, it is also one of the founding countries of European Union and has the second largest population in EU, amounted to 66,206,930 (World Bank, 2015). People have high standard of life quality, education, social security system, human rights and freedoms.

Its rich culture attracts more than 80 million of tourists every year into the country and makes it the most visited country in the world (World Bank, 2015).

Tourism becomes one of the most important industries in France and this contributes enormously to its economy growth as well. With a capitalist economical system, French government processes a certain level of control in the country. Therefore, it is a country with combination of capitalism and socialism. Its government offers a high level of social welfares to its citizens. Labors are very well-protected and enjoy high freedoms and rights within different realms.

The whole country is divided in 8 regions and 101 departments as shown in Figure 3-1 with its capital in Paris. Being a vast country and with many different neighboring countries, each region has its own unique culture and tradition. Important

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cities are Lyon, Marseille, Lille, Bordeaux, Toulouse, Montpellier, Nice, and Nante, as shown in Figure 3-2.

Figure 0-11 Different regions in France Source: wikimedia.org

Figure 0-12 The main cities in France Source: CIA, The World Factbook, 2004

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2. Population

Population in France is amounted to around 66 million and is increasing gradually each year. Being the second most populated country in Europe, right after Germany, its market is significant and is one of the most potential market in west Europe considering its purchasing power and population.

(1) Total population by sex and age

Total population by sex and age in France is shown in Table 3-1. Total female population is approximately 2 million higher than total male population. If we look at the population by age, we can find that 50 % of the total population is aged between 20 to 64 years while 28 % is under 20 years and 22% is above 65 years. Besides, according to INSEE, with 2.01 children per woman, France has the second highest fertility in Europe, right behind Ireland. In EU, the average fertility rate is approximately 1.6 children per woman. This high fertility rate in France can be explained by its active family support policy, such as family allowance, tax allowance and long maternity leave.

Table 0-4 Total population by sex and age in France Male Female Total Total population 32 291 287 34 336 315 66 627 602

Under 20 years 8 391 583 8 003 875 16 395 458 20-64 years 18 550 750 19 161 177 37 711 927 65 years and over 5 348 954 7 171 263 12 520 217

Source: INSEE, population estimates (provisional data at the end of 2015)

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(2) Immigration

As to the immigration in France, there are 5.8 million immigrants live in France in 2013, which accounts for approximately 8.8 % of the total population according to INSEE. This number is forecasted to increase in the future. On the other hand, The amount of immigrants arrive in France each year reaches about 200,000 between 2004 and 2012, which accounts for 0.3 % of the total population. This high level of immigration in France is mainly driven by its strong economic and political position in Europe and by its history of colonization. This increasing amount of immigration leads to more labor forces into France.

A structure of nationalities of its immigration in 2012 is given in Table 3-2.

Among all the immigrants arrived in France, immigrants with European nationalities are the most, which account for 46 %, while 30 % for African immigrants, 14% for Asians and 10% for Americans. European Immigrants are mainly from Portugal, UK, Spain, Italy and Germany. As to African immigrants, they mainly come from Maghreb region, such as Morocco, Tunisia and Algeria. Asian immigrants are mostly from China and Turkey.

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Table 0-5 Structure of nationalities of immigration in France Nationality Number of immigrants in France in 2012 (%)

Total 100

Europe 46

Portugal 8

UK 5

Spain 5

Italy 4

Germany 4

Romania 3

Belgium 3

Russia 2

Switzerland 2

Poland 2

Africa 30

Morocco 7

Algeria 7

Tunisia 3

Asia 14

China 3

Turkey 2

America 10

É tats-Unis 2

Brésil 2

Source : Insee

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(3) Household structure

Regarding to the household structure in France, according to INED, there are approximately 2,740 families in the whole country. As shown in Table 3-3, couples household account for 54 % of the total households while one-person household is 34

%, single-parent family is 9 %. It is predicted that the number of single-parent families is increasing in the future at a rate of 9 %. Therefore, there is a trend for a smaller household structure in the future which would affect the form of consumer spending in France and companies would tend to produce and sell more products for small families, such as changing the size and packaging of products.

Table 0-6 Household structure in France

Household Number of households

One-person household 9,512,171

Couples 14,888,523

Single-parent family 2,434,402

Other non-family households 732,817

Overall 27,567,914

Source : INSEE, Population censuses 3. Consumer spending

(1) Personal disposable income and consumer spending trend

As indicated in Figure 3-3, personal disposable income in France is increasing year by year, it reaches 342,358 EUR million in the third quarter of 2015. A remarkable difference can be observed in 1950 with its record low of 2,580 Euro millions. Besides, a growing consumer spending trend is shown in Figure 3-4 with a peak in 2015 which amounts to 288,816 EUR million. This growing trend is mainly led by the growing of personal disposable income. In other words, people have more income to make consumption and this stimulates the economic activities.

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Figure 0-13 Personal disposable income in France 1950-2015 (Euro millions) Source: Trading Economics

Figure 0-14 Consumer spending trend in France 1950-2015 (Euro millions) Source: Trading Economics

(2) Inflation

Inflation is another factor to affect consumer spending since it decides the purchasing power of consumers following the increasing change of the price of goods.

When inflation occurs, consumers’ ability to pay for goods decreased and they would

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tighten more their spending budget. Inflation rate in France is shown in Figure 3-5, which includes both historical data from 2010 to 2015 and a future forecast until 2020.

As we can observe, the level of inflation has been decreasing from 2010 to 2015, which explained why consumer spending has been increasing during the past years.

Especially, an extremely low inflation rate of 0.15 % has been achieved in 2015.

Nevertheless, inflation in France is predicted to increase every year from 2016 and might reach 1.66 % in 2020.

Figure 0-15 Inflation rate from 2010 to 2020 (Historical data and forecast) Source: Statista

(3) Unemployment

Unemployment is also another key point to the change of total consumer spending in France considering that a high unemployment rate indicates less disposable income could be generated and to stimulate spending. Figure 3-6 shows the unemployment rate in France from 2003 to 2015. From 2006, unemployment started to decrease until it reached a relatively low of 7.2 % in 2008. Yet, after 2008, the rate began to go up and has remained higher than the period between 2003 and

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2006. In 2015, it is approximately 10.2 %. However, in spite of the increasing trend of its inflation rate, the percentage of female employment is increasing due to the active supportive family policy. Nowadays, 85 % of women enter the workplace and this phenomenon not only increase the gender equality of the society but also increase the household income.

Figure 0-16 Unemployment rate in France Source: INSEE

3.2 Distribution Channels Analysis

1. Retail channels overview

In France, the number of retail channels is growing each year as indicated in Table 3-4. In 2014, it amounted to 216.6 billion for sales revenue. On the other hand, the amount of sales points of retail channels is increasing in both cities and suburbs under different forms, such as hypermarkets or minimarkets. This shows a positive growth trend for the future of retail channels in France and its importance in the distribution system in the country. Since retail channels are where most consumers

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make their daily consumption, they should be the first concern for new entrants in order to reach potential consumers and to enlarge their market shares in the future.

Table 0-7 Sales revenue of retail channels in France

2009 2010 2011 2012 2013 2014 Sales revenue (Euro billion) 195.2 200.1 206 211.5 214.1 216.6 Sales points(Thousand) 126.5 126.1 125.7 127.5 128.1 128.5

Source: Euromonitor International (2015) 2. Different retail channels

(1) Sales revenue

Among all the other retail channels, hypermarkets are the ones which generate the most sales revenue each year and account for approximately 40 % of the total revenue of retail channels in virtue of the diversity of the products they offer for meeting the needs of consumers. However, due to the large size of hypermarkets and high price of renting in the city, they are usually located far from the city centers or in suburbs where situate most of the commercial areas. Hypermarkets are usually set up with large free parking areas in order to provide more convenience for consumers.

Supermarkets are the second largest retail channels in France, which account for 27% of the total retail channels revenue. They usually situate in the city and are well-located in the center in order to reach more potential consumers. Being limited to their sizes which are much smaller than hypermarkets, the dimension of their products is usually smaller and they provide mainly the most needed or sold products.

Besides, convenient stores are less popular in France than in Asia, which account for 3.8% of the total retail channels revenue. They are mostly situated near schools, residential areas or in city center, and their pricing are usually a lot higher

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than in hypermarkets or supermarkets. Sizes of convenient stores are relatively small and the variety of products is very limited.

Table 0-8 Sales revenue of different retail channels in France (Euro billion) Retail channels category 2009 2010 2011 2012 2013 2014

Hypermarket 80.8 83.3 86.3 88.2 89.4 90.5

Supermarket 53.1 54.6 56.1 57.8 58.4 59.1

Convenient store 6 5.9 6.1 6.4 6.5 6.7

Discount store 16 16.4 16.7 17.2 16.9 16.7

others 2.1 1.9 2 1.9 1.8 1.8

Total 158 162.1 167.2 171.5 173 174.8

Source: Euromonitor International (2015) (2) Market share

As shown in Table 3-6, among all retail channels, convenience stores have the most sale points in France while the second most common retail channel is supermarkets. This phenomenon can be explained by the relatively low costs of convenient stores which usually have smaller size and easier to be operated.

Furthermore, discount stores are also common in France since its cheap price attracts attention of consumers. Besides, supermarkets see their growth in recent years because of the convenience they bring, such as delivery service and drive through service.

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Table 0-9 Numbers of different retail channels in France

Retail channels category 2009 2010 2012 2013 2014

Hypermarket 1591 1607 1655 1683 1705

Supermarket 7398 7576 7763 7775 7785

Convenient store 8785 8838 9024 8935 8908

Discount store 4539 4713 4651 4548 4451

Source:Euromonitor International (2015)

(3) Retail channels under different groups

As to retail channels under different groups for hypermarkets, we can see that E.

Leclerc has the most sale point as shown in Table 3-7. According to USDA (2014), E.

Leclerc, Carrefour、Auchan、Geant Casino and Intermarche Hyper account for 65 % of the whole market share altogether.

Table 0-10 Retail channels under different groups - hypermarket

Group Number

E. Leclerc 515

Carrefour 242

Auchan 143

Geant Casino 117

Intermarche Hyper 84

Hyper U 71

Cora/Record 59

Source:USDA (2014)

For supermarket, Intermarche Super has the most sale point followed by Carrefour Market, Franprix, Super U, and Casino as indicated in Table 3-8.

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Table 0-11 Retail channels under different groups - supermarket

Group Number

Intermarche Super 1363

Carrefour Market 969

Franprix 882

Super U 773

Casino/Hyper Casino 410 Simply Market/Atac 386

Monoprix 300

Source:USDA (2014)

If we look at retail channels under different groups as in Table 3-9, we can tell that E. Leclerc has the largest market share, which accounts for 6.4 %, followed by Intermarché, Carrefour, Carrefour Market, and Auchan.

Table 0-12 Retail channels under different groups (in %)

Group 2012 2013 2014

E Leclerc 6.2 6.4 6.5

Intermarché 5.7 5.8 5.9

Carrefour 4.8 4.8 4.8

Carrefour Market 3.8 3.8 3.9

Auchan 3.9 3.8 3.7

Super U 2.9 3 3

Lidl 1.7 1.7 1.6

Leroy Merlin 1.4 1.4 1.4

Géant Casino 1.3 1.2 1.2

Cora 1.2 1.1 1.2

othen 67.1 67 66.8

Total 100 100 100

Source:USDA (2014)

Besides, discount stores become more and more popular in France. As in Talbe 3-10, Lidl has the most sale point followed by Aldi、Dia、Leader Price and Netto.

Huge groups of hypermarkets and supermarkets are also competing in discount stores

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market by merging little discount stores. A monopoly trend is predicted to control the retail channels in the future.

Table 0-13 Retail channels under different groups – discount store

Group Number

Lidl 1533

Aldi 914

Dia 865

Leader Price 673

Netto 325

Le Mutant 98

Norma 72

Source:USDA (2014) 3. Retail channels - malls and department stores

Market shares of malls and department stores are shown in Table 3-11. Galeries Lafayette is the most important retail channel which has a market share of 35 % and its revenue accounts for 54 % of the whole market revenue. Its main products are luxurious items. In addition, Galeries Lafayette and Printemps are the two main retail channels for malls and department stores. They occupy approximately 92 % of the whole market share.

Table 0-14 Retail channels – malls and department stores (in%)

Group 2012 2013 2014

Galeries Lafayette 35.4 34.6 34

Printemps 25.9 26 28

Babou 7.1 7.1 6.2

BHV 7 6.9 5.6

Le Bon Marché 4.6 4.5 4.5

Tati 2.6 2.7 4.1

Other 17.4 18.2 17.6

Total 100 100 100

Source:Euromonitor International (2015)

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