French Innovation Trends: Food, Fashion and Flirting

It’s funny how often the subject of conversation goes back to “Why is there no Google or Facebook coming out of France?” Some people like to point fingers at investors, saying French investors are too risk averse. But then there are others that say this is simply because the local exit market is, well, almost nonexistant (yes, I’m exaggerating but only slighly). But if you think about it, there are some things “made in France” that pretty much sell themselves.

It’s better when its French.

Now other than being good for a chuckle, this Hardee’s advertisement uses a twist of French seduction and food to portray the all-American burger as better when it’s French. Interestingly enough, local startups may be doing something a bit similar – at least in my humble opinion.

Food, Fashion and Flirting.

Honestly, what else comes to mind when you think of France? Ok, perhaps tourism, too. Now, maybe it’s just me but local companies do seem to be innovating more when it comes to their cultural roots. Fashion websites, food-related sites and obviously dating websites seem to be all the rage. Either that or I’m just hungry and need to go shopping.

L’amour à la française.

People who’ve been paying attention to what I’ve been writing on TechCrunch recently are probably starting to think I’m obsessed with dating sites. Let me reassure you, this is not the case. But is just so happens that recently there seems to be a lot of really creative ideas popping up. Maybe they’re all inspired by French dating giant Meetic? I’ve written about the not-so-new Adopteunmec (where women pretend to buy their boyfriends), Smartdate (for dating the friends of your Facebook friends), Attractive World (it’s all in the title – you have to be rich, beautiful or preferably both in order to be OK-ed by the exclusive VIP community), Ladieshoesme (mixing women’s shoe fetishes and dating) and most recently Loueunepetiteamie.com (renting a girlfriend) took a turn towards an online escourt service. Not sure how I feel about this last one but a little flirting never hurt anyone – and definitely seems to benefit the local entrepreneurial crowd.

Miam Miam.

Yes, that’s French for “yum yum.” And food is definitely at the heart of tons of sites across the planet – not uniquely in France. But obviously in a country where food is tied with long-standing traditions, it’s harder to find early adopters for new technologies. Getting traditional wine chateaux or restaurants to use Foodzie or OpenTable-like platforms is by no means an easy task (insert a José Bové comment here – and then check out this hilarious game). Although recently, there seems to be more companies managing to leverage the French passion for good food and wine. Companies like Regioneo (French Foodzie), LePotiron (online marketplace for locally-grown produce), the French Opentables (LaFourchette, Restopolitan, TableOnline…), Restoprivé (Vente-Privée but for exclusive restaurant deals), Vinobest (Groupon for Wine) – and most recently, Super Marmite (a platform where individuals can cook and sell food to others). This last company was one of the finalists for LeWeb this year and I think the oh-so-French pitch (seriously, Jacques Pépin would be proud) was just phenomenal, check it out:

Who is more famous: Louis Vuitton or Louis XIV?

When I was living in LA (painful thought), not a day went by when I didn’t see a Louis Vuitton handbag (another painful thought). The French are good at fashion and I don’t think I need to tell anyone that the French are good at e-commerce, that is all yesterday’s news. Vente-Privée’s acquisition chats with Amazon and PriceMinister’s €200 million acquisition helped solidify this. But while there are tons of companies in the traditional e-commerce space – like MyFab and Spartoo –  there are also some more creative companies that are leveraging French fashion. Ok, maybe the products sold on GoldenHook are not exactly haute couture but it’s definitely creative to employ the elderly to knit products, which are then sold on the platform. Then there are some more recent companies that seem to be going after social shopping, like LooknBe, or video-driven fashion e-commerce, like WallDress. The business models for these last 2 are yet to be proven but it’s definitely an interesting trend.

There’s no local Twitter – but a damn lot of tourists.

So obviously there are tons of travel sites and whatnot as well but honestly I know of fewer sites that really target an international crowd with good insider information (if you know of one, correct me and let me know). MyLittleParis perhaps but the information isn’t necessarily traveler’s info. Oh, but then again, the government went and launched that whole France.fr portal so that the whole world would be able to find travel information on France. But man, what a buzz kill. I honestly think that there are still tons of tourists that have no clue how to find the information they’re seeking. In fact, the NUMBER ONE question I get asked on Aardvark is “what is the best hotel/hostel in Paris.” Actually, some of the more innovative travel/tourist-oriented sites – like AirBnB – are not local, but they are already tapping the French market. Food for thought…

The French A-list

I get lots of local entrepreneurs contacting me, wondering who exactly in France has money in the bank. So just like with the Le Best of French Blogs post that I wrote-up a while ago, it’s perhaps time for a French A-list (or angel-list). Well, here it is kids. These are some names  (in no particular order) that I’d want to be talking to if I was looking to fund my company in France. Obviously, some of these people are also behind funds like ISAI, Jaina and Kima but that doesn’t mean they don’t also invest à titre personnel.

1. Oleg Tscheltzoff.

The CEO of stock photo giant Fotolia, Oleg is honestly one of the few people I’ve met that can just tear a business plan apart. He’s funded over a dozen projects this year, including Dealissime, Leetchi , Restopolitan and PeopleforCinema.

2. Xavier Niel.

Xavier is arguably France’s hottest angel. And don’t just take it from me – an article published in le Journal Du Net in May claimed that he’s invested in over 150 companies, including Leetchi, OpenERP and Deezer. Damn. I mentioned him in an earlier post as one of the 9 French entrepreneur names to know. And if you don’t know him by now, he’s not only the mastermind behind Iliad/Free and makes-up half of the Kima Ventures team with Jérémie Berrebi.

3. Jérémie Berrebi.

Naturally, if I’m going to mention one half of Kima, I’m not about to ignore the other. Berrebi is also a very active investor. Even if he isn’t physically based in France, I’m impressed by what he’s managed to do for local startups from Israel. He’s personally invested in companies like Kwaga and Architurn.

4. Marc Simoncini

Meetic’s current CEO and founder of Jaina Capital is perhaps somewhat less active than Kima’s Niel and Berrebi but still amongst the French investor elite. He’s backed companies including Ouriel Ohayon’s Appsfire, Catherine Barba’s Malinea and Zilok.

5. PKM

The famous face behind Priceminister (acquired this year by Japanese Rakuten for €200 million) is also part of the “entrepreneurs investment fund”, ISAI. He’s one of the many investors in Pearltrees, Novapost and YellowKorner.

And the beat goes on.

There are obviously many more names that I could add to the list, including Kelkoo/Wikio-founder Pierre Chappaz, Vente-Privée founder Jacques-Antoine Granjon, Allociné’s Jean-David Blanc and miore. However these last few appear to be somewhat less active in terms of investments than those listed above. Deezer’s Jonathan Benassaya is also an up-and-coming business angel to add to the list.

Too many cuisiniers.

One thing that I’ve noticed lately is that more and more of the French business angels are coming together for collective investments. Recently, Restopolitan (essentially the French Opentable alongside the likes of LaFourchette and TableOnline) announced a €1 million round with what’s being called the investor “Dream Team”: Oleg Tscheltzoff, Marc Simoncini, Jacques-Antoine Granjon, Jonathan Bennasaya…pretty much the whole gang, quoi. The photo below didn’t happen to go unnoticed on Facebook or in the press either – it’s Restopolitan’s founder, Stéphanie Pelaprat, surrounded by the company’s beautiful bank account. But still, many people are wondering if too many A-level cuisiniers or investors will spoil her startup soup.*

Young Money.

In honor of the theme of our recent TechCrunch France event, the “young” generation of web entrepreneurs and services oriented towards the 15-25 age-range, I’d also like to take this opportunity to give a shout out to 2 of the younger business angels in the space: Fotolia’s Thibaud Elziere and MyMajorCompany’s Simon Istolainen. I don’t think either of them are giving Xavier Niel a run for his money just yet, but it’s definitely nice to see the younger generation giving back to the entrepreneurial community. I could probably also include Berrebi in the youngster investor list too.

Feel free to add additional names to the comments.

*In English, the expression uses “soup” and in French the expression uses “sauce”.

Have You Seen Me? 9 French Entrepreneur Names to Know

Talk to anyone from Silicon Valley about French names in hi-tech and you’ll systematically get the 3 same answers: Loic Le Meur, Jeff Clavier and Pierre Omidyar – if you’re lucky.

But how about French entrepreneurs in France?

In an earlier post I suggested putting French entrepreneur success stories on milk cartons to remind us all of the home-grown sensations. So why not take a minute to consider 9 home-grown French hi-tech names-to-know ?  The list is ideally in some type of order, but then again not really.

Gilles Babinet.

This man is a French serial entrepreneur to know – creating his first company at age 22 back in 1989 (a few years ahead of Zuckerberg?). Some of his success stories include Absolut (acquired by Euro RSCG) and Musiwave (acquired by Openwave and later Microsoft). He recently co-founded 3 hot start-ups including Eyeka, Digicompanion and MXP4.

Jérôme Rota.

This guy is the mastermind behind DivX – the technology and now the company. While he later went on to co-found DivX, Inc. in San Diego, California, Rota initially developed the technology back in 1998/1999 in Montpellier as a 20-something-year-old. But I don’t need to convince anyone that French engineers are la crème de la crème, do I?

Roland Moreno.

Yes, ok, it’s not exactly hot off the press but it’s far from trivial. Wonder why France is so ahead of the US when it comes to electronic ticketing? This is the French face behind the invention of the smartcard in 1974 – now used in just about everything. The following year, he went on to launch Innovatron. And last I heard, he gave everyone a scare in 2008/2009 with rumors of a risky health situation.

Xavier Niel.

The co-founder of Iliad (who has the ugliest website ever – not like it matters) is part of the reason I pay far less for internet in France than I ever did in San Francisco – but I’ve applauded his contribution to the invention of triple-play Freebox before. In addition to Iliad, he also co-founded WorldNet, which was bought by KapTech (Neuf Cegetel) for €40 million in 2000. He recently co-founded seed-fund, Kima Ventures, with Jérémie Berrebi. Oh – and if I’m not mistaken, he’s also part of the college drop-out club. Nice.

Pierre Chappaz.

This guy was not only of the co-founders of Kelkoo (acquired by Yahoo) but has also been behind the successes of Wikio and Netvibes.

Yves Guillemot.

Guillemot is one of the 5 faces behind France’s video game giant, Ubisoft. The Guillemot brothers have also founded a number of additional companies (7 total) – including Gameloft and Guillemot, which both went public along with Ubisoft.

Marc Simoncini.

Another serial entrepreneur to know. Simoncini, like Babinet, founded his first company in 1985 at the age of 22. His first real success came with iFrance, which was sold to Vivendi in 2000. He then went on to create Meetic, which has done a great job at blowing everyone else out of the European online dating market and bought Match.com’s European activities last year. Like Niel, he also recently launched a seed-fund, Jaina Capital, with Michel Kubler.

Pierre Kosciusko-Morizet.

The brother of the current Minister of Digital Economy, Kosciusko-Morizet is one of the co-founders behind e-commerce success, PriceMinister. He, too, got an early start – launching his first company in his (incredibly) early 20’s.

Jacques-Antoine Granjon.

Anyone that gets a €2 billion acquisition offer from Amazon’s Jeff Bezos (and additional offers from Gilt and eBay) should definitely make the list – 47-year-old Jacques-Antoine Granjon is the long-haired founder of French success story Vente-privée.

Educate me.

Did I miss someone uber important? There are definitely another 50 people I could easily add. The list is obviously far from exhaustive and highly influenced by my non-expert knowledge. Feel free to add to the comments and enlighten me.

Solde.com

In France, there is no Black Friday. There is no “after-Christmas” sale  or “end of the year clearout” sale. 

Instead, there are the semiannual “soldes.” AKA the fixed, 5-week sale that takes place in January/February and again in June/July. And January 6  is the first day of the winter 2010 sale.  

A study published by the Centre for Retail Research in December 2009 stated that 58% of French would be hitting the January sales, spending an average of €159 each. That’s an estimated €34.8 billion to be spent in the first weeks of 2010 – want me to convert that to dollars for you? 

So what better way to take advantage of the “soldes” than online (or via a mobile device)?

No obeying store hours and no lines. And you can even shop from outside the +33 country code. Score – or as the French would say, youpi!

E-commerce has been on a steady rise in France, as the French are by no means shy when it comes to buying online; in November, MediaMetrie confirmed 23 million French e-shoppers  during the 3rd trimester of 2009 (1 million mobile shoppers during the same time period). And 63% of French confirm that they buy online simply because it’s more practical.

There are a myriad of local e-commerce sites selling everything from foie gras to Sarkozy’s watch (though not his wife – at least, not that I’m aware of). 

Still, stats reveal that the French prefer to buy less food and more technical products online, making this the leading product category for online sales. Tourism and travel is a very close second.

Where are all the eyeballs?

Top-ranking e-commerce sites in France in terms of monthly uniques throughout 2009 include: eBay, PriceMinister, Amazon, Cdiscount, La Redoute, Fnac, Voyages-sncf.com, 3 Suisses, Vente-privée, Pixmania, Kiabi.com, Rue du Commerce, Carrefour, Mistergooddeal and Eveil et Jeux.

Looking for a few more names? A more complete directory of over 430 local e-commerce players (700 websites) can be found on the FEVAD’s (fédération e-commerce et vente à distance) website here. Additionally, the FEVAD’s selection for the best e-commerce sites of 2009 can be found here.

Any idiot knows that sales + e-commerce = business.

So what does the scoreboard look like for e-commerce sites in the upcoming weeks? Well, during the first week of the semiannual sales in summer 2009 alone, the FEVAD announced a 7% increase of online sales (and a 10% increase during the first week for the winter 2009 sales). With an estimated 9% of the total sales during the January soldes to done online, e-commerce sites should be raking-in around €3.1 billion.

Oh, and you’re wondering how solde.com figures into all of this?

 The domain is currently on the market for $30,000. Now that’s ironic.

To anyone looking for a bit more info on the European e-commerce scene in English, ACSEL (association pour le commerce et les services en ligne) has a terrific publication, which can be found here.