Mexico, Côte d’ivoire, Czech Republic, Vietnam,… How are we doing with the business in these countries ? What are the opportunities ? The mistakes to avoid ? The point with the CCI French located on-site.
Belgium, Italy, Spain… first-time exporters often begin to reason, by targeting the neighbouring countries of France to make their first weapons. Once this step has been taken, how to get to top speed ? If the United States and China are dreaming, other destinations represent a potential not to be overlooked. Four experts of CCI françaises abroad, we deliver the basic elements to have in head before digging opportunities.
The Czech Republic: faithful partners
“The Czech Republic is 10 million people an hour and a half from Paris by plane, not more, recalls Martin Dytrych, CCI France-Czech Republic. The country is rather in a good dynamic (unemployment rate below 5%, growth of 4.5%). Although tertiarisé, it still presents a basic producer very important.
Among the key sectors, the automotive, electrical engineering, electronics, optics, precision mechanics, the production of machine-tools.
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Next to education, the Czech system delivers technical training of high quality. The shortage of skilled labor should be resolved in the near future because large schools have initiated curriculum to support the development of new technologies.”
The mistake not to commit. “This is not a good idea to want to export products standards in the Czech Republic. The base products are manufactured locally or imported from Asia. This is expected, this are technologies, machines and devices innovative. Also take care not to under-estimate competitors local. There are many Czech companies are very efficient and can produce the same solutions as the French, at more reasonable prices.”
Doing business with the Czech”. “The Czechs have taken the pragmatic side of the Germans, who are their first trade partners. The numbers, the data, the technical characteristics of the product, the price, that’s all that matters to them. They can seem a bit cold and are in any case very difficult to persuade. They do not like the familiarity from the first meeting. Once the commercial relationship established and approved, at the end of two or three years, they become pretty loyal. The case of Czech customers lending their support to French suppliers who are experiencing difficulties are frequent.”
Vietnam : the need to make a network
“Vietnam can serve as a springboard before heading to other Asian countries”, note from the outset, Tra Le, responsible for Business Support to the CCI France Vietnam. Growth is expected to be 6.7% in 2016. The country has 91 million inhabitants, of which 50% of young people under the age of 30 years. It remains in development, but the middle class began to gain importance. The country also today a small population of very wealthy, that does not skimp on the shopping.
within the young population, increasingly returning from abroad after their studies. They strengthen the market, changing tastes and standards. People are very curious, hungry for new products and services. Consumption patterns have become more westernized and distribution has also changed a lot. We may consider to open a shop in one of the “malls” that open regularly in Ho Chi Minh City and Hanoi, and offering luxury and products for the middle class.
The vietnamese market is dynamic and open to foreign investment. 10 000 French people live there, of which 6500 to around Ho Chi Minh City. The sectors are : renewable energies, waste management, buildings and transport, luxury, cosmetic, agro-food, industrial equipment, mechanics, new technologies.”
The mistake not to commit. “there are still a lot of the vietnamese leadership “old school” who do not speak English. It is imperative to have an interpreter, and above all, franco-vietnamese. Choose a native English speaker, it is the risk of loss to be fatal in the trade.”
Do business, “the vietnamese”. “Do the business out there works a lot with the mouth-to-mouth and the network. Nothing prevents us of getting only his telephone to try to get an appointment with a potential partner. But the Vietnamese need that installs a climate of trust, without which they do not deliver the important information. Pass by institutional as the CCI France Vietnam can be very reassuring. In addition, the CCI France Vietnam counts among its members many men of business settled there since a long time, that can introduce you to potential partners.”
Côte d’ivoire: perseverance pays
“today, the GDP of Côte d’ivoire represents 40% of the GDP of the eight countries of the Union Economique et monétaire Ouest Africaine (UEMOA). It is sufficient, in my opinion, to be interested in it, judge Jean-Louis Giacometti, director of the CCI France-Ivory Coast. The country has 26 million inhabitants, of which 48% of assets (89% in the informal economy). The GDP per capita is 1000 euros, but the rate of poverty remains high (around 45%). It is dans an Franc zone, with a euro at a fixed exchange rate, and the inflation rate is very low, which provides conditions very favourable. It is necessary to take the Ivory coast as a hub from which it is possible to spread throughout West Africa.
Among the sectors, ICT, energy, services, retail, transport, CONSTRUCTION, electricity, handicrafts, agro-industry, agriculture, training, education, health care, pharmaceutical, chemical… For example, in agriculture, the State wants to strongly develop the processing of local products for export, this implies strong requirements and equipment needs to master the logistics.”
The mistake not to commit. “it’s Useless to go on the market for a ‘one shot’. Only an integrated regional strategy, from the Cote d’ivoire, in the long term, can work. Moreover, it is not because things go wrong at startup it is necessary to abandon. Those who succeed are those who persevere. And don’t get discouraged in the face of harsh laws and unfair competition. When people do almost the same thing as you, but without declaring it, they do not have the same cost…”
Do business, “the ivory coast”. “To maintain good relations, it should always stay in contact with its partners, to never break the link. In trading, station not to be unsettled by the silence, which is an integral part of the exchange, it is a way to weigh what is said”.
“We will never tell you yes or no. You can guess the meaning of the response. And it should not be mistaken : the Ivorians have the sense of hospitality, but be well received does not mean that it has the market.”
Mexico: the “Made in France” very much appreciated
“The 2nd largest in Latin America, after Brazil has 110 million inhabitants, of which half are under the age of twenty-five years, explains Julie Riotte, CCI France Mexico. The middle class is increasing steadily. Unlike in Brazil, the country does not have the protectionist policy, it is very open. He knows a interdependence very strong with the United States (80% of trade is with its neighbor to the north) but has the will to extract in part of this head-to-head.
It is located on the premises of the leading engineering and labor is a little cheaper : it is not for nothing that the automotive industry and aerospace are installed.
Mexico and France, it is a great love story. Anything that is labeled made in France can have a lot of success there, including on markets rather mature, such as furniture. The agri-food industry is very promising, and, in particular, the ranges of “gourmet”. Some Mexicans are willing to buy a mustard three times the price for what little there is a label bleu blanc rouge.”
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The mistake not to commit. “The mistake would be not to attempt to export to Mexico ! In the vast majority of cases, there is a potential. This can be a little long, culturally, at startup, by contrast, then, it can go very quickly. In the nursery within the offices of the chamber of commerce of Mexico city, the businesses stay a maximum of two years because they grow up fast”.
Do business, “the mexican”. “The Mexicans like to work with friendly people. They do not appreciate that it happens in conquered territory, and like to make shapes. They will maybe you say yes to a product, when in fact, it does not interest them ; it is not necessary to dig in your heels. But above all, it is necessary to come on site to meet potential partners. Side administrative procedures, to create his own company, it is super fast.”