In search of lost market share.

Summary The arrival on world markets of new powers - first and foremost China - is mechanically reducing the market shares of the advanced economies. But France's export market share is falling more than those of other European countries. This is not the result of poor geographic or sectoral specialization, insufficient aid to exporters, under-representation of SMEs in exports, or credit constraints, but more fundamentally of an insufficient "quality-price ratio" of French products, on average. When quality is present, the results are exceptional, as shown by luxury goods, aeronautics and electrical distribution equipment, all sectors driven by one or two flagship companies and/or brands that seem to play a key role. A country's competitiveness has both a price and a non-price dimension. In terms of price competitiveness, the direct cost of labor represents only 23% on average of the value of French exports, and 44% including the cost of labor for domestic intermediate consumption. Price competitiveness is therefore not just a matter of labor costs in exporting companies. It must be sought on the side of inputs, whether intermediate goods (possibly imported), energy or services produced in France for exporting firms. The central message here is that competitiveness is everyone's business, not just that of industrial companies. Better efficiency in sectors sheltered from international competition (business services, construction, public services) thus contributes to price competitiveness.