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Kvadrat in France

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

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  1. Kvadrat in France Best in France Case Study December 2003

  2. Preview Danish Companies in France Interview with the Attaché Commercial of the Royal Danish Embassy in Paris

  3. 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

  4. Denmark France Machinery: 25% Food: 18% Chemicals: 17% Consumer goods: 17% France Denmark Machinery & cars: 50% Chemicals: 13% Consumer goods: 11% Main product transactions

  5. 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%

  6. 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%

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

  8. 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

  9. 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

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

  11. 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.).

  12. Why France? • One of the biggest markets in Europe. • 60 million people. • Huge business potential. • French sub: responsible for France, Spain and Portugal.

  13. Kvadrat’s values • High quality • Design • Open mindness • Flexibility • Innovation • Simplicity

  14. Kvadrat’s products • Curtains • Upholstery • Screen fabrics

  15. 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)

  16. Constraints in France (1) • High cost of labour • Lack of flexibility • Strikes • Language problems • Bureaucracy • Business delays

  17. Constraints in France (2) • 35 hour week • Low service quality • Heavy fiscality • Working mentality • Lawyers

  18. Positive points, still • Business potential • Skilled work force • International opening • Fiscal improvements

  19. Essential Advice • To foreign investors: take your precautions • To the French authorities: invest more in young crops

  20. Many thanks to • Niels Kaae Attaché Commercial Ambassade Royale de Danemark • Joegen S.L. Hansen Country Director Kvadrat SA

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