Ample opportunities for French brands in China

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During his closely watched three day visit to China, French President Emmanuel Macron will lead business consortiums, expected to sign up to 50 deals.

According to French media, the two countries are scheduled to launch a one billion euro investment fund targeting French companies in China, one of its most important markets.

Retail behemoths such as French cosmetics group L’Oreal say they are encouraged by the progress made in reforms and market access, which will further strengthen ties between China and France.

"We are very confident and very happy to see in the past message from the congress that China is going towards even more globalization. This visit will help to shed new lights towards more innovation, more consumer centricity,” said Stephane Rinderknech, CEO of L’Oreal China.

From production to logistics to retail, many French consumer goods companies have established entire supply chains in China.

Reuters Photo.‍

The massive purchasing power of Chinese consumers has made China the biggest overseas market for many French retail groups, some of which have set up their regional headquarters in the city of Shanghai.

China’s Belt and Road Initiative will be a key part of the discussions during this visit, already benefiting firms such as sporting goods retailer Decathlon.

"Last October, we launched our first corporate block tailor made train from Wuhan to northern France,” recalls Wang Tingting, Decathlon’s Vice President of Greater China.

“The new train route has cut the delivery time in half, emitting 36 percent less carbon in the process. It wouldn’t’ have happened without the China-Europe rail, which was launched after the Belt and Road initiative."

France is already a member of the Asian Infrastructure Investment Bank (AIIB). Analysts say there’s still room to explore in greater connectivity projects in the future.