Faced with American-style mega-promotions such as Black Friday, how can French companies react? Claiming made in France is an interesting avenue which is not enough. Because the consumer is not ready to pay “Made in France” at any price.
While the period of “Black Friday Cyber Monday” (BFCM) is becoming institutionalized in France, collectives bringing together companies, such as the one called “Les Jours Tricolores” are being created. This is because inflation has not only had a negative impact on French consumers, it has also affected French businesses. This emphasis on made in France deserves to be deciphered, because it questions the economic models of the companies that promote it.
Genealogy of a phenomenon
Since 2010, “Black Friday Cyber Monday” has been gaining momentum in Europe and France. Initially focused on microelectronics and consumer computing, promotions today affect all sectors: from cosmetic care to shoes, furniture and gardening.
Among French consumers, 83% of buyers acquire goods for themselves during this period, and 66% buy goods for their loved ones according to data published by Statista in 2022. According to the same source, the average budget amounted to €182 per active buyer in 2023.
Born in the United States, Black Friday is part of the North American culture of big promotions, with markdowns of up to -80%. This caused a reaction from French companies who cannot adapt to these discounts for two main reasons. The first is legislation: it is only possible to sell at a loss during very regulated periods. But it’s also a question of business model: how to bring prices down?
The four dimensions of the business model
First of all, let us remember that the term “business model” (or economic model) summarizes the way in which a company creates value. To do this, it has four levers that it must arrange in its own way, then continually evolve according to changes in the competition and its environment:
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the choice of clients/client groups. A company markets products and services intended for one or more homogeneous groups of customers, which it believes to have identified;
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the value proposition designates what is offered – the good or service – to the customer and which has value for them. This is what will trigger the purchase;
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The value chain brings together the arrangement of activities of the company and its network of suppliers and partners to deliver the value proposition to customers;
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The revenue model describes how the company captures a portion of the value it creates. Revenue streams can be one-off (a customer purchase), recurring (a subscription), freemium (part of the use is free then the options are paid)…
What value for “Made in France”?
Having said this, the sales price expresses what customers are willing to pay to acquire goods and services based on their perception of the value proposition. In a gloomy economic context, is the integration of the “Made in France” argument into this value proposition sufficient leverage to convince French customers?
At first glance, “Made in France” constitutes an element of reassurance for the French customer, due to the proximity between the consumer and the producer. Let's take an example in beauty care, with the French brand Laboratoires Silkbiotic which is positioned on the market for silk pillowcases and silk-based cosmetic care. Indeed, there is currently a trend observed particularly on social networks attributing supposed benefits to this fabric.
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Silkbiotic's value proposition was certainly based on a product truly made in France (weaving in the Lyon region, local manufacturing), but that was not enough:
“To convince our customers, we had to submit our silk pillowcase to cosmetic care tests carried out by an independent laboratory. This is what allows us to argue that it is the only silk pillowcase with proven effectiveness. » explains founder Fanny Redziniak. However, this has a cost which impacts the business model: “the effectiveness tests are regulated and a budget of around 10,000 euros is required, to which is added the cost of the anonymized products which are given to the testing laboratory. »
Objective evidence
“Made in France” was therefore not enough to convince the end customer, it was necessary to seek more objective evidence to argue the benefits of the product, in this case the silk pillowcase.
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Another example in toys is the company Envoyajeux, which originally built its business model entirely on “Made in France”. It has evolved its value proposition to highlight eco-responsibility. According to Magali Chiapello, co-founder of the company:
“games are often sold in large, almost empty cardboard boxes: to give consumers the impression that the game is worth a certain price, companies put large boxes with wedges inside. We transport – and offer – a lot of air. »
Difficult arbitration
To offer eco-responsible packaging, made in France and containing as little empty space as possible, it was necessary to adapt the business model:
“we had our packaging made by a local partner, with materials from sustainably managed forests, etc. But all this comes at a cost. »
In this example again, made in France is not enough to convince customers, we must seek additional additional value, here it is about eco-responsibility.
Here is the difficult trade-off: the value proposition must be even more fleshed out, and go further than just “Made in France” as an argument, but the costs must also be borne. This explains that a French-style Black Friday – also called Black Friday Cyber Monday – should encourage the sale of products made in France and which have additional value for the customer, while offering “fair” promotions. Just for customers, with a reduction ranging from 10 to 30%, and just for French companies which produce on national territory and must strengthen their value proposition to convince customers. The huge discounts seen in the United States do not seem to be able to take root in French Black Friday.
