An industrial UK company, who is a leader in its domestic market, aimed to expand its business in the French market.
A partnership with a leading French manufacturing company, which dominates the French market, turned out to be the real solution for driving sales growth.
A leading B2B-to-C British company exporting to France is experiencing low sales.
Despite using the same strategy as in the UK, selling directly to distributors, high transportation costs have resulted in inflated prices. Consequently, the selling price exceeds the market rate.
Moreover, lacking a sales force in France, the company is unable to actively promote and expand its sales. It adopts a passive approach, failing to develop its brand image and gain recognition. After several years managing export to the France for a UK company, the sales were remaining weak whereas the company was leader in its domestic market and French market offers the same potential as UK market.
The solution involved collaborating with a leading French manufacturer in the same industry, producing complementary products.
This partnership allowed the UK company to leverage the French company’s sales force, distribution network, and established reputation.
By tapping into these resources, the UK company gained access to a broader customer base and benefited from the French company’s market leadership in France.
The UK company leveraged the French company’s sales network, reputation, and local warehouse for efficient sales activation, market recognition, local storage, and high-volume shipments.
This led to a notable decrease in selling prices, resulting in rapid growth and a significant increase in sales.
The collaboration proved to be mutually beneficial, with both companies experiencing a rise in their revenues.