NEWS COVERAGE - FRANCE

ECONOMY AND BUSINESS NEWS FROM THE PAST WEEK

January 30th, 2015
Business Sweden in Paris

FRANCE: THE FRENCH PART OF EXPORTS IN THE

EUROPEAN UNION FALLS TO 12,3 % IN 2014
French exports as a part of the total of European exports
in the EU falls by 0,2 points to 12,3 % in 2014
The French part of exports in the EU exports plummeted
between 2000 and 2007 with a loss of 3,7 %
Since 2007, the share of exports have stabilized around
12 %

Critics arguing that the French government has failed to

improve Frances competitiveness
Le crdit dimpt pour la comptitivit et lemploi
(CICE) has significally decreased the cost of French
labour in 2014
0,6 % increase in French labour compared to an
increase of 2,3 % in German labour should increase
the competitivity of French companies
The positive effects of actual reforms are projected in
the coming years according to the governments
spokesperson
SOURCE: 1
BUSINESS SWEDEN

2 FEBRUARY, 2015

FRANCE: DEFLATIONARY PRESSURE ON FOOD PRICES,

DECREASING AT A RATE OF 0,8% IN 2014
An overall price decrease of 0,8 % has been recorded by the French trade association Association nationale des
industires alimentaires
The prodcution of food products increased by 0,1 % in 2014, a first since 2012
Compared to an increase in food production of 3 % in Spain and a 4 % increase in the UK
French exports decreased at a rate of 0,1 % whereas the imports increased by 0,9 %
The trade balance surplus of 2 bn would have been negative without the exportation of wine and other spirits

Type of good

Evolution of prices in
2014

Fruits and vegetables

- 4,1 %

Non alcoholic beverages

-2%

Dairy produce

+ 0,7 %

Meat

+ 0,9 %

Alcohol

+ 1,7 %

SOURCE: 2
BUSINESS SWEDEN

2 FEBRUARY, 2015

FRANCE: NEARLY 3,5 MILLION PEOPLE WITHOUT

EMPLOYMENT IN JANUARY 2015
The number of unemployed increased at a rate of 5,7 %
in 2014
Threshold of 3,5 million people unemployed almost
reached
An unemployed person is on average registered for 539
days at a French employment center

The French Minister of Employment, Franois

Rebsamen, promsied that the effects on growth of the
governments pacte de responsabilit will be seen in
2015
Economists argue that the future growth must exceed
1 % in order to generate additional job opportunities

SOURCE: 3
BUSINESS SWEDEN

2 FEBRUARY, 2015

FRANCE: THE E-COMMERCE GROWS AT A RATE OF 11 %

IN 2014, CURRENTLY VALUED AT 56,8 BN
The French E-commerce now represents 9 % of all retail sales in the French Economy
The number of websites increased at a rate of 14 % to a total of 157 000
The average number of transactions have increased from 18 to 20 from 2013 to 2014
The average purchasing basket amounted to 81 , a decline of 10 % since 2011
In Europe, The French E-commerce sector currently ranks third, after Germany and the UK

The biggest French E-commerce sites are currently Cdiscount, with 10,7 million unique visitors per month, during the
period October-November 2014, followed by la Fnac (10,6) and Carrefour (7,5)

Trends the E-commerce sector:

Decreasing delivery fees from 6,7 % to 5,1 % of the total value of purchased goods
The delivery has shifted away from customers households to specific delivery points
Stores are increasingly developing an additional internet sales channel

The French E-commerce trade association forecasts a growth of 10 % in 2015, resulting in a turnover of 62,4 Bn

SOURCE: 4 & 5
BUSINESS SWEDEN

2 FEBRUARY, 2015

FRANCE: FINDUS FRANCE FACES INCREASING

PURCHASING COSTS
Purchasing fish in dollars, Findus now faces higher costs
Fish, being a crucial product for Findus, accounts for 35-40 % of the companys total production costs
Findus CEO of the Southern Europe branch, says that the company probably will be obliged to raise prices at a rate
of 7-10 % or face losses up to 7 M the coming 12 months

IKEA ready to continue investing in France

600 M investment which will result in the opening of 7 additional stores by 2017
The aim of reaching a 20% market share in France, compared to a market share of 17,9 % in 2013

SOURCE: 6, 7 & 8
BUSINESS SWEDEN

2 FEBRUARY, 2015

SOURCES
1.

Les Echos 27/01/2015, La comptitivit franaise ne sest pas redress lan pass,
http://www.lesechos.fr/journal20150127/lec1_france/0204108226326-la-competitivite-francaise-ne-sest-pas-redressee-lan-passe-1087096.php

2.

Les Echos 27/01/2015, Les prix de lalimentaire rattraps par la dflation,

http://www.lesechos.fr/journal20150127/lec2_entreprise_et_marches/0204110281294-les-prix-de-lalimentaire-rattrapes-par-la-deflation-en-france1087168.php

3.

Les Echos 28/01/2015, Prs de 3,5 millions de chmeurs au terme d'une nouvelle an ne noire,
http://www.lesechos.fr/journal20150128/lec1_france/0204113311617-pres-de-35-millions-de-cho-meurs-au-terme-dune-nouvelle-an-nee-noire1087621.php

4.

Les Echos 28/01/2015, e-commerce: le multicanal s'impose et tire le secteur,

http://www.lesechos.fr/journal20150128/lec2_industrie_et_services/0204112839135-e-commerce-le-multicanal-simpose-et-tire-le-secteur1087627.php

5.

FEVAD, Bilan annuel du e-commerce en France: les Franais ont dpens 57 milliards deuros sur internet en 2014,
http://www.fevad.com/espace-presse/bilan-annuel-du-e-commerce-en-france-les-francais-ont-depense-57-milliards-d-euros-sur-internet-en2014#topContent

6.

LSA 29/01/2015, Baisse de l'euro : "Nous assistons un tsunami", Matthieu Lambeaux, CEO Findus Europe du Sud,
http://www.lsa-conso.fr/baisse-de-l-euro-nous-assistons-a-un-tsunami-matthieu-lambeaux-ceo-findus-europe-du-sud,199771

7.

Les Echos 29/01/2015, Ikea a acclr l'an pass sa croissance mondiale,

http://www.lesechos.fr/journal20150129/lec2_industrie_et_services/0204116003763-ikea-a-accelere-lan-passe-sa-croissance-mondiale-1087964.php

8.

Les Echos 15/10/2014, Ikea va investir 600 millions d'euros en France,

http://www.lesechos.fr/15/10/2014/LesEchos/21793-083-ECH_ikea-va-investir-600-millions-d-euros-en-france.htm

BUSINESS SWEDEN

2 FEBRUARY, 2015