1. The French Language Web-Based Market: A Forecast and Outlook on the Eve of the 21th Century Jacques Nantel Ph.D. Marketing Professor

2. 1- Basic Numbers More than 1 billion pages on the web 6,4 millions sites 86% of all pages are in English 2,4% are in French,5% are in German Inktomi, January 2000

3. Basic Numbers Worldwide –59,3% of Internet users have English as mother tongue – For 6,5% it is French –Global Reach July 1999

4. In France Online sales of 200 MM$ in 1999 vs. 61 MM$ in 1998 700,000 people made online purchases in 1999 The average promotion budget for a french site is 61,000$ –Benchmark Group December 1999

5. Internet adoption rates Sources :Ernst & Young, “ Global Online Retail Report ”, janvier 2000. Price Waterhouse Coopers, “ Canadian Consumer Technology Study ”, janvier 2000.

6. Adoption Rates by Country

7. Nature of sites visited 6 of the 10 favorite French Internet sites are US-Based 8 of the 10 favorite sites in Quebec are the English version of the same sites

8. The French Language Web-Based Market: 2 Major issues Internet as E-commerce Internet as a Media

9. Internet and E-commerce 4 different approaches

10. Source: Forrester May 1999

11. The French Language Web-Based Market: the Major issues In B2B, because of the nature of the operations which require and foster an integration of systems/companies a common language is required –English –XML Supply Chain Management –Ford –Carrefour –Bombardier

12. The French Language Web-Based Market: the Major issues In B2C, the situation is far more complex –Importance of portals Original or translated –Dominance of brands –Export capacities Only 15% of US site deliver outside of the USA Centralization Local

13. A product typology for B2C Strategies

14. But the main issue remains economies of scales and scalability

15. Scalability E-commerce, for B2C sites, needs volume An American site «starts» with a market of 78 M consumers A site based in Quebec starts with 1,8 M consumers One in France with 8,4 M consumers Somehow, smaller markets must think differently –Use English –Consider export

16. The French Language Web-Based Market: 2 Major issues Internet as E-commerce Internet as a Media

17. Internet as a media 2 models Internet as a Media can diffuse Francophone culture and even sell it. Culture and information can be used as give-away in order to attract consumers. – Content more content – Infinit/TVA Infinit/TVA

18. In order to be profitable the portal/content strategy relies Advertising –Most of which is not profitable

20. In 1999 75% of all ad revenus were made on 10 sites Vs. 68% in 1998 –Source (iAB)

21. In order to be profitable the portal/content strategy relies Advertising –Most of which is not profitable Referrals –Back E-Commerce

22. The French language web-based market will…... Not be straightforward Might be weak in B2B Can be strong in B2C if we create volume Will be strong as a way to diffuse cultural products but for that we need –Set up common or linked portals both for advertising revenues and for E-Commerce spin- off

23. Merci For more info Http://hec.ca/pages/jacques.nantel