Key issues to watch in 2023 were: 1) the impact of Russia’s illegal war against Ukraine and measures by the EU and French government to mitigate the fallout; 2) the degree to which Covid-19 and resulting supply chain disruptions continue to affect the macroeconomic environment in France and across Europe, and the extent of the government’s continued support for the economic recovery; and 3) the creation of winners and losers resulting from the green transition, which will be determined in part by firms’ operating models and exposure to fossil fuels.

U.S. firms must navigate national and European regulations and standards for selling products in France.  The French at times interpret existing EU regulations more stringently than other Member states and regulate areas where the EU has not yet proposed legislation.

Another challenge for U.S. firms is dealing with highly concentrated retail distribution chains and networks.  Many French global manufacturers and suppliers exercise strong control over these retail networks, with well-organized buying offices that have put in place very stringent selection processes for new suppliers, products, and services.  High retail mark-ups combined with innovative and creative marketing approaches are prerequisites to entering the French retail market.