How French Companies Can Expand Internationally

INSTRUCTION: Read the following article. The meanings of the expressions in bold are explained in the accordion section at the end of the text.

Language level: B2–C1
Variant: American English
Reading time: 7–10 min

I hear it more frequently than ever—from clients, colleagues, and industry experts I trust: “The French market is saturated and becoming less and less profitable.” Whether in B2B services, tech, manufacturing, or retail, the message is the same: competition is intensifying, margins are shrinking, and domestic sales are faltering.

All available indicators confirm that France’s economic environment is becoming increasingly hostile to small and mid-sized businesses.

Mounting Signs of Domestic Strain

1. Business Failures on the Rise
In 2024, 64,427 French businesses shut down, up from 56,965 in 2023. The majority were micro-enterprises with fewer than three employees (La Connexion, 2024).

2. Industrial Setbacks
Industrial production declined by 1.1% in January 2024, with particularly sharp contractions in transport and automotive output (Euronews, 2024).

3. Corporate Retrenchment
Even large companies are reacting. STMicroelectronics, for example, is cutting 1,000 jobs—9% of its French workforce—due to market slowdowns (Reuters, 2025).

Deindustrialisation Has Shrunk the Playing Field

France’s industrial base has eroded over decades. The French Treasury attributes this to offshoring, underinvestment in R&D, and loss of competitiveness —setting off a chain of consequences felt throughout the entire economy.

Deindustrialisation weakens the entire economic ecosystem. It limits job creation, reduces B2B demand, and lowers purchasing power in many regions. Service companies, software firms, and training providers all feel the knock-on effects when local industries contract.

This leads to a critical shift in logic: when the domestic conditions deteriorate, businesses must look beyond national borders to find stable ground. Internationalisation is not just about chasing growth—it is about securing relevance in a shrinking market.

A Saturated Market Can No Longer Be the Default

Structural pressures such as energy costs, inflation, and declining industrial output have made the French market increasingly difficult. Since 2022, sources like Le Monde have reported that small businesses were already seeing margins eroded by inflation and fixed costs. This strain is now visible at a broader scale, with retail volumes and domestic industrial activity stagnating.

This context makes one thing clear: staying local is no longer the conservative choice—it is the riskiest one.

Internationalisation: From Trend to Imperative

This assessment is not limited to a few consultants. According to a 2024 Bpifrance study, 65% of regional companies outside Paris now consider internationalisation essential for growth and risk mitigation. This trend must be viewed in light of the broader slowdown—first highlighted in the 2023 Bpifrance Impact Report, which pointed to declining business creation and failure rates exceeding pre-crisis levels, and later confirmed by 2024 data.

Public institutions are aware of this and are issuing recommendations for those looking to export. In a 2025 interview, Laurence de Touchet, Director of Export Programs at Business France, stated that French companies are actively pursuing foreign markets, particularly in the United States, the Middle East, and Southeast Asia.

Expansion Starts with Purpose

Whenever someone asks me about preparing to expand internationally, I start with one question: where to?

Choosing the right market is not just a matter of opportunity — it’s a matter of strategy. Some businesses need to diversify their revenue streams across geographies. Others want to escape seasonal demand cycles or address saturation in their home markets. Increasingly, firms are targeting ecosystems that mirror their innovation roadmaps — not just their sales goals.

Public strategies can help narrow the focus. The France 2030 plan supports green tech and digital companies in going global — not randomly, but where strategic growth is possible — through funding, partnerships, and R&D incentives. Bpifrance’s 2025 roadmap points to key sectors and regions: agri-food in Latin America, edtech in Africa, and digital services in Southeast Asia.

So the real challenge lies in prioritising markets. That means going beyond surface potential and asking the right questions: Where is product–market fit strongest? What are the local expectations and usage patterns? How complex are the legal and compliance landscapes? Growth abroad begins with smart selection.

Exporting Means Reinventing

One of the most frequent mistakes I see is this: assuming that what worked in France will work elsewhere.

Companies must learn to adapt to their target markets—from pricing models and packaging to branding and logistics. Experts consistently emphasize the critical role of CSR standards, country-specific packaging laws, and local consumer behaviour in determining success.

Presence is also essential. Team France Export consistently encourages firms to invest in local partnerships, attend trade events, and build visibility in their target markets. When paired with digital prospecting and lead generation, these efforts generate real results.

Your Team Is the Real Growth Engine

International success depends as much on people as it does on strategy.

According to Bpifrance’s Export Academy, SMEs thriving abroad invest in intercultural communication, legal preparation, and export training. I have seen companies transform after hiring a strong export manager or training their existing staff for international engagement.

France offers excellent public support — from insurance and coaching to financing and market entry assistance. But as outlined in the 2025 Roadmap for Exports, long-term success abroad depends on internal capabilities. Building skilled teams, training export managers, and developing a clear international strategy are what ultimately drive competitiveness.

The Risk Now Is Staying Home

With more than half of French SMEs already exporting, there are encouraging signs of a broader shift. For others, time is running out.

The companies that act now—by investing in their teams, adapting their offer, and building international relationships—will be positioned to grow sustainably. Those who wait may soon find themselves boxed in by a domestic market that has little left to offer.