(Last updated: 12 May 2011)

Trends and opportunities

The market

As an evolving coastal economy, France has a very strong domestic marine industry where major development has taken place in the defence, civil and pleasure crafts sectors. The industry employs around 300,000 people across the fields of tourism, port and transport activities and management and shipbuilding.

Significantly, the country has the second largest recreational marine industry in Europe and the third largest in the world (more than half of French products go overseas). These figures are further reinforced by France’s position as the world’s leader in sailboats and pneumatic ships and as the 4th largest producer of motorboats.

As a result of such activity, the pleasure boat sector now comprises nine million occasional recreational boaters and four million regular boaters, as well as a workforce of 40,500 employees. Accordingly, it has experienced a steady growth in the past 10 years. However, it was significantly affected by the 2008 global recession, with the market shrinking by 40 per cent to 50 per cent at the peak of the crisis.

Despite this economic downturn, clear improvement has been made recently. Yves Lyon-Caen, the Vice-President of French Nautical Industries Federation (FIN) and President of the Surveillance Council of main French ship-builder company Bénéteau expressly recognised the greater stabilisation of the market. The French government’s support played a significant role in this comeback as various measures, including the injection of investment funds, were implemented at a local and national level.

Consequently, the number of registrations has started to stabilise, with a decrease of only 2.94 per cent in 2009/10 against 16.72 per cent in 2007/08 and 2008/09. Despite a slight slowdown in the sales sector, boat dealers and shipbuilding companies have noted a surge in interest for new models, in some cases representing up to 30 per cent of a firm’s turnover. The industry now forecasts growth in next year’s turnover; particularly along the Atlantic coast. The northern part of the Mediterranean region which France belongs to (representing 30 per cent of the global market) is also predicted to experience growth.

This development in the French marine industry is promising and will be strengthened by the FIN’s return in 2010 to the International Council of Marine Industry Associations (ICOMIA). FIN aims to re-align the industry’s strategy with greater international ambitions. Further, President of FIN, Jean-François Fountaine has indicated a desire to strengthen export and import with the Asian-Pacific region; specifically recognising Australia as an important player. While France was one of the first exporters of pleasure boats and currently has a mature market and a strong and competitive domestic industry, there is evidence the French market is willing to look abroad for superior products to improve industry standards.

In recent years, France has been building and exporting an increasing number of sailboats. However, current trends indicate that a growing demand for motorboats in the country is gradually affecting strategy within the French industry. This shift will create greater opportunities for foreign companies to infiltrate the market. This demand has emerged from both domestic and external customers, highlighting the international nature of the sector. The market has experienced a surge in tourist interest and greater participation in major sporting events and key trade shows (139 new boats presented in Cannes and 150 new ships and 250 new marine accessories in La Rochelle).

The opportunities for competitive exporters continue to flourish. More than four million people are now actively involved in recreational marine activities and 40 per cent of the French population lives within 100km of the French coast. Projects concerning sail, motor and luxury boat export, maritime equipment and rental as well as construction material and maritime infrastructure constitute just a few of the potential opportunities available.

In addition, there has been a clear focus on development through innovation since 2009. With discerning, experienced buyers, the French market is a good test subject for the wider European market in this industry. The future of the French marine industry looks promising and the growing number of people participating in the nautical sector can thus continue to generate opportunities for Australian companies.

Opportunities

Key marine export opportunities to France are found in the following sectors (for specific information about opportunities in any of the following areas please contact Austrade Paris directly):

• Sailboats
• Motorboats
• Luxury boats
• Boat fitting and navigation equipment 
• Boat rental
• Construction material and techniques
• Marine infrastructures and facilities 

The well-established presence of Australian companies in the recreational market, specifically in luxury boating, provides great potential for the building of greater networks. Priority for development of these relationships should be given to the largest marine groups. With the effect of the financial crisis being felt markedly by small to medium companies, the market is ripe for Australian involvement. In addition, with shipbuilders pushing the construction of yachts and attempting to gain an even greater share of the market, they represent important potential allies for Australian firms in the industry.

Despite being a hub for world-leading marine groups, the competitiveness of the French recreational marine industry has been weakened. This ‘disruption’ offers many opportunities for Australian companies to be better represented and received in important trade shows. As the French industry increasingly looks overseas and new demographics develop within the country, possibilities in variations to boat size, weight, material and equipment are constantly evolving. As a result, innovation will continue to play a major role in the future of this market and economy.

Competitive environment

The sector is characterised by the presence of a number of large players, which rank among the world’s largest shipbuilding companies and act as leaders within the French recreational marine market.  Nevertheless, the economic slowdown has weakened some of them, generating more potential for increased competition or partnerships.

Sailboats and motorboats

Bénéteau is one of France’s leaders in leisure boat manufacturing that specialises in a large range of sailboats (44 per cent of 2009/10 turnover) and motorboats (30 per cent of 2009/10 turnover). The firm is recognised as the world’s leading firm in the sailboat industry and is growing as an important player in the motorboat sector with 30 per cent and 10 per cent respectively of the world’s market shares.

Fountaine-Pajot is another major player in the recreational market and specifically as a world leading catamaran builder (98 per cent of 2009/10 turnover). It ended 2009/10 with a turnover of €32 million.

Pneumatic boats

Zodiac, Sillinger and Valiant are the three largest companies specialised in pneumatic boats.

Luxury boats

Rodriguez Group is an important and resilient agent within the industry, it accordingly managed to increase both its shares and revenue in 2010. In fact, the company’s turnover increased to €24.8 million just in the third part of the year, a 17.7 per cent rise compared to the last trimester of 2008/09.

Dufour Yachts is one of France’s leading luxury sailboat builders and is owned by Bavaria.

Amel is a shipbuilding company specialised in luxury sailboats. The French market represents 50 per cent of the group’s turnover while Germany is its second client, followed by Italy, Luxembourg, Switzerland and Austria.

Boat fitting and navigation equipment

Lewmar is the world's leading leisure marine equipment supplier. It designs, manufactures and distributes products including anchors, winches, windlasses, hatches, rigging, steering, and thrusters. Despite foreign beginnings, the company is well-established in France via its subsidiary, Lewmar France.

Plastimo is the European leader in boat equipment and is owned by the Navimo Group.

Tariffs, regulations and customs

All boats manufactured outside of the EU must comply with European Directive L164/15. The product must be certified before being marketed in the EU. A CE mark on a product indicates that it satisfies EU legislative requirements in terms of health, safety and environment and permitted to enter the single market of the European Economic Area.

For further information on legal requirements, assessment bodies and future developments, please visit EC maritime industries requirements.

For further information on taxation and customs within the European Union, please visit the EC Taxation and Customs Union. 

Domestic standards

France falls under EU jurisdiction

If the boat originates from a country that is not part of the EU or that is excluded from its fiscal territories, the company must clear its product in customs by completing formal importation processes and paying the custom duties and import tax.

The boat must be presented at a customs office or ‘bureau de douane’ with an import declaration (DAU model).

For recreational boating, ships with hull length between 2.5 and 24 metres must also fulfil requirements related to safety, health, environmental and consumer protection. The documents required are: 

• CE notification 
• Manufacturer’s plate 
• Craft identification number (CIN)
• Declaration of conformity (DEC) (or if failing to give this, a CE test notification provided by an accredited organisation)
• Owner’s manual

Custom duties vary between 1.7 and 2.7 per cent and a 19.6 per cent and GST applies to all products.

For more information please see: www.douane.gouv.fr/data/file/3797.pdf (only available in French).

Marketing your product and services 

Market entry

According to the World Bank Doing Business Index, France is ranked 26th out of 183 countries for ease of doing business (an improvement from 2009 when it ranked 31st) and 7th in enforcing contracts.

France’s business environment follows a hierarchical structure which significantly impacts on the length of negotiations and decision-making. As a result, French governing bodies and companies generally focus on long-term objectives, undertaking a thorough examination process. A complete understanding of the business approach appropriate to enter the French marine market is essential to successfully exploiting the benefits of investing in this developed industry.

Legal procedure

It is important to ensure that your product legally complies with EU and French standards in order for it to be certified and accepted into the market.

Communication and advertising

Before entering the market, it is essential that any literature related to the product be translated into French. Linguistic adaptation to the French market eases communication with potential agents, distributors and future customers. If it is not feasible to translate all of your documents, consider producing a summary in French.

Publication is an efficient way of promoting your product in the marine industry. It is easiest to contact respected industry journals.

The Internet provides another useful resource for promotion. As an indispensable advertising instrument, it is recommended that you incorporate this medium to your business strategy. Most major companies have translated their website into French as well as pricing their products in euros and including metric measurements to reduce communication barriers with customers.  

Distribution

In most cases, doing business in France requires local representation in the form of an agent or distributor.

When appointing agents or distribution partners, it is essential that they have a clear understanding of the market, expertise on how best to conduct your business in the country, and how to place and advertise your product. Their advice and feedback are essential to the efficient integration of your company. To ensure greater communication with your commercial partners, as meetings could be conducted in French, it is wise to make provision to be accompanied by a French speaker who is familiar with your product.

Given the nature of the marine industry in France and the specificity of its different sectors, it is recommended that companies look at both smaller and larger distributors. Many specialise in a particular product sector (pneumatic boat, luxury boat, equipment) and may target specific geographical regions (Côte d’Azur, Bretagne) due to customer profiles. Australian exporters and investors can minimise risks and difficulties of market entry by fulfilling niche-market needs and exploiting these opportunities.

Partnerships can greatly assist in a foreign market. In the short and medium term, you may choose to appoint a distributor in France to manage importing and customer liaison. In some cases, it may be better to manage this from Australia, with a European company warehousing and shipping to the customers. This arrangement could include a strategic alliance or joint venture with a French company. For financial reasons, distribution could be shared with another Australian firm to maximise the benefit to your product range; allowing for a greater impact on the market. In the longer term, an office could be set up in France while continuing to manufacture the products on the home ‘shore’.

The variety and quality of trade shows in France provide an opportunity to local exposure and advertise a product. They are also a great way to interact and build a professional network with established agents, distributors, shipbuilders, journalists and customers.

As explained previously, the French industry is competitive and recovering. It is therefore crucial for an Australian company to create strong networks and develop personal relationships through regular visits to the market in order to capitalise on the large opportunities available.

Distribution channels

The French marine industry distribution network includes three main intermediaries:

• Manufacturers
• Distributors
• Authorised dealers

Original Equipment Manufacturers (OEM)

Manufacturers contact suppliers directly at a domestic or international level to negotiate sales. Consequently, with high levels of competitiveness in the marine industry in France, EU suppliers find business more complicated if they face purchases with countries with weaker currencies.

Wholesalers and distributors

France has numerous shipyards and retail outlets with strong partnerships that are widely spread throughout the country, most often in areas strategically located for their business. It is recommended a new company involved with a large number of them to increase exposure. Select distributors carefully according to the specific demand and target demographic of your product. When contacting these firms, discounts will be requested from your company for the potential provision of sales services.

Retail chain

The French marine industry encompasses a large number of retail chains that choose their suppliers and negotiate prices directly with them. The selected suppliers are then often asked to ‘participate’ financially in the production of the retail chain’s catalogues

Entering the French distribution channel in early summer is ideal for companies. This allows for time to establish a business and present their new models in the most important trade shows occurring at the end of the year (September/December).

Trade events 

• Festival International de La Plaisance – Cannes (September) – www.salonnautiquecannes.com
• Grand Pavois La Rochelle (September) – www.grand-pavois.com
• Monaco Yacht Show (September) – www.monacoyachtshow.com
• Paris International Boat Show (December) – www.salonnautiqueparis.com

Links and industry contacts

Government, business and trade resources for France

Conseil  supérieur de la navigation de plaisance et des sports nautiques – www.csnpsn.developpement-durable.gouv.fr

Direction générale des douanes et droits indirectes (Custom General Management) – www.douane.gouv.fr/ 
     
Local government

France is divided in to 24 regions (including four overseas territories) and 101 administrative departments.

Fédération française des ports de plaisance – www.ffports-plaisance.com/intro.php

French maritime cluster – www.cluster-maritime.fr/article.php?lang=Uk&id=1

French nautical industries federation – www.france-nautic.com/frameset.asp?langue=gb 

International maritime organisation – www.imo.org/About/Pages/Location.aspx

Luxmarina – www.luxmarina.com 
Ministere de l’écologie, du développement durable, des transports et du logement – www.developpement-durable.gouv.fr/

Secrétariat général de la mer – www.sgmer.gouv.fr/  

Contact details

The Australian Trade Commission – Austrade – is the Australian Government’s trade and investment development agency.

Through Austrade’s network of offices in over 50 countries, we assist Australian companies to succeed in international business, attract productive foreign direct investment into Australia and promote Australia's education sector internationally.

For more information on how Austrade can assist you, contact us on:

Australia ph: 13 28 78 | Email: info@austrade.gov.au

A list of Austrade offices (in alphabetical order of country) is also available.