How To Enter & Trade In the French Market As a UK Aerospace Company: Best Cross-Border Practices
The French aerospace market presents unique challenges for UK companies. While governed by international standards, the French and British aerospace industries differ in many ways. Adapting to French regulations and business culture, competing with well-established firms, and navigating cross-border trade can seem insurmountable for UK businesses expanding abroad.
Fortunately, with the right knowledge and support, it’s possible to expand into the French market as a UK aerospace company.
In this article, we’ll provide a comprehensive overview of the French industry, highlighting key players and differences from the UK sector. We’ll also highlight some challenges of navigating the French commercial aviation landscape and outline best practices to follow for successful entry into the French aerospace market.
Contact clearBorder for tailored support in exporting from the UK to France.
Overview of the French Aerospace Industry
With a revenue of €70.2 billion in 2023, France boasts one of the world’s largest aerospace industries. The aerospace sector is a major contributor to the French economy and employs over 210,000 people.
The French aerospace market differs from the UK industry in terms of its larger scale and stronger focus on civil aviation. The presence of Airbus as a dominant player is also a major contributor to the French aerospace industry.
Airbus, a multinational commercial aircraft manufacturer, is headquartered in Toulouse, France, and plays a pivotal role in the French aerospace landscape. Aside from commercial aircraft, Airbus is a world leader in the design, manufacturing, and delivery of helicopters, military transports, satellites, and launch vehicles.
Other domestic companies that have a strong international presence include:
- Safran: A French multinational aerospace and defence company. They produce aircraft engines and other aviation equipment for the defence industry.
- Thales: A French multinational aerospace and defence corporation specialising in aviation electronics. Thales designs, develops and manufactures a range of aerospace and military systems, equipment, and devices.
- Dassault Aviation: A French company that designs, manufactures and supports combat aircraft and business jets.
While the UK has a more diversified aerospace industry with a significant presence in the defence industry (Royal Air Force) and space sector, France’s aerospace industry is more concentrated on commercial aircraft manufacturing and related services.
France also maintains a strong commitment to research and development, investing heavily in cutting-edge technologies such as eVOTLs (electric vertical take-off and landing aircraft), advanced materials, and digitalisation.
Challenges in Navigating the French Commercial Aviation Industry
There are many differences between the French and UK aerospace industries, and UK companies exporting to the French aerospace market must navigate various challenges that come with international trade to ensure success.
Regulatory Requirements and Standards
UK companies must familiarise themselves with the regulatory requirements and standards applicable to the French aerospace industry. This includes understanding the European Union Aviation Safety Agency (EASA) regulations, as well as any specific French regulations set out by local authorities like the French Civil Aviation Authority (DGAC).
These agencies set clear standards for safety, security, and environmental sustainability and any products (eg., aircraft engines or components) must adhere to these strict standards in order to be suitable for the French market.
French Business Culture
Understanding cultural differences is an often overlooked aspect of cross-border trade. However, to be successful in the French market, UK aerospace companies must prioritise understanding French business etiquette, communication styles, and decision-making processes, which can differ from those in the UK. Some key aspects of French business culture include:
- Formality and courtesy in business relationships
- Emphasis on professionalism, organisation, and following regulations
- Strong emphasis on building long-term relationships and trust
In order to foster successful, long-term partnerships with French companies in the aerospace industry, UK businesses must consider how British and French cultures differ. For example, in the UK, employees may often call their bosses by their first name. However, this casual approach to business may not be acceptable to French companies, who prefer more formality.
Local Competition
Entering the French aerospace market as a new entrant means competing with well-established local companies with strong partnerships in the industry. French aerospace companies like Airbus, Safran, and Dassault Aviation have extensive local supply chains and long-standing customer relationships.
To effectively compete, UK companies must differentiate their offerings, build a strong local presence, and form strategic partnerships with French firms.
Best Practices for Entering and Trading in the French Market
By implementing the following best practices, UK companies can effectively position themselves for success in the French aerospace market:
- Research potential partners: When looking to enter the French market, conduct thorough market research to find partners in France that align well with your business model. Focus on companies that align with your products, services, and expertise.
- Participating in trade shows and events: Attend major French aerospace trade shows and events, such as the International Paris Air Show, to showcase your products and services, network with potential partners, and stay informed about the latest industry trends and opportunities. This can help you get more involved in the French market and find new opportunities for collaboration.
- Adapt products to the French market: Once you understand the specific requirements and preferences of the French aerospace market, adapt your products and services accordingly. This can involve customising offerings, adjusting pricing strategies, or developing new solutions tailored to the French market.
- Establish a local presence in France: Consider setting up a local office, subsidiary, or partnership in France to demonstrate your commitment to the market and achieve closer collaboration with French companies. A local presence can also help navigate cultural and linguistic barriers, and make dealing with the French regulatory bodies and aviation authorities easier.
Leverage UK Government Support
UK companies, including those from Northern Ireland, can take advantage of government support mechanisms when trying to enter the French aerospace market. The UK Space Agency, for example, offers UK government support for space-related projects and collaborations. The UK Department for Business and Trade can also provide guidance and support for UK companies looking to export to France.
Get Tailored Trade Support from clearBorder
clearBorder offers invaluable support for UK businesses looking to trade in the French aerospace market. By leveraging clearBorder’s expert training and consultation services, UK businesses can comply with customs requirements, understand export controls, and find optimal freight forwarding solutions, ensuring smooth and efficient cross-border trade.
With clearBorder’s ongoing support, UK companies can establish efficient trade networks and build strong, lasting relationships with French partners.
Contact clearBorder today to enter the French aerospace industry with confidence.