Post Europe: an aggregator explosion in France?

The potential size of the French market is seen to be similar to that of the UK's. E-commerce is now growing at a dynamic pace in France, even though it is still lagging the UK by around 5 years. In 2009 the value of price comparison in France stood at around Euros 25m - the UK reached this level in 2005. In 2009 the UK market was worth around Euros 60m.

France's aggregator market is currently in the middle of a phase of major growth, currently at 24 per cent year on year, while the UK has now slowed to 18 per cent.

Potential in France
Judging by the rapid expansion of the UK's price comparison market between 2005 and 2006, there is now enormous potential for any French price comparison business to seize market leadership and drive the expansion of the sector.

Personal lines insurance will be a key growth area. Google searches for ‘insurance comparison' have increased five-fold in the past two years. Motor and home insurance are both compulsory products in France, and there is a growing appetite among consumers to shop around for the best price.

In addition the health insurance market is huge as French people seek peace of mind that they will be covered in the event of future illness.

Two major factors
Success for any aggregator player at this stage relies on two major elements. Firstly, the successful company must demonstrate real dynamism in e-commerce. The research and purchase process must be intuitive, fast and easy for any consumer.

Secondly, the price comparison site must gain the consumer's trust. All prices must be presented with the greatest possible transparency, and quotes shown on a price presentation page must always reflect the final premium to be paid.

A vital element in establishing that all-important trust is for an aggregator to be impartial. In France, FEVAD (the leading French association of E-commerce) has launched self regulation by developing a charter for all aggregators, across consumers' goods, travel, insurance and more.

This is an important step that will help to develop the comparison market in France - both as a concept and as a viable option to help the consumer save money.

The final step
The final step is to establish a strong brand. This can be built both through on online and offline marketing campaigns, but will require significant investment. Interestingly, TV campaigns for internet comparison websites in France have so far not replicated the success of those in the UK.

But it's likely to be a fiercely competitive battle. There are already a number of price comparison businesses in France, and well-known insurance brands such as MMA, Allianz, Axa and GMF can be expected to invest heavily to grow their direct online business.

2006 was the year for aggregators in the UK, will 2011 be the same in France?

Jehan de Castet, CEO, Courtanet