Local authorities, industry, automotive, retail: what are the trends for these key sectors of the French economy?

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In the first two parts of this report, we covered the major trends transforming marketing and sales: generative AI, of course, but also short-form video taking over B2B, and the growing demand from decision-makers for more human, authentic content, free from jargon and corporate speak.

However, these marketing trends only make sense when viewed through the lens of real-world dynamics. How can a relevant acquisition strategy be developed and implemented without a deep understanding of the specific sector’s realities?

That’s why we turned to experts from the various editorial teams at Infopro Digital. In this third part, we share their insights on four key sectors of the French economy: public sector, industry, automotive, and retail.


Public Sector: Dissolution, Ecological Transition, and Public Debt

Romain Mazon, editor-in-chief of La Gazette des communes, identifies three major events in the news regarding the public sector, starting with the dissolution of the National Assembly in June, which is still having lasting effects. This major political event has had considerable repercussions on local political decisions, particularly slowing down projects that require parliamentary arbitration.

In practice, traditional funding channels are (more or less) blocked, the usual parliamentary intermediaries are disrupted, and local authorities must rethink their networks of influence to advance their projects.

Next, the ecological transition has become more urgent than ever, with a strengthened legal framework and the need to catch up on decarbonization goals. Local authorities are focusing their efforts on two main areas: the energy renovation of public buildings and the deployment of renewable energy infrastructure in their territories.

However, uncertainties surrounding upcoming finance laws are creating budgetary tension, exacerbating another structural issue: local authorities are already struggling to recruit in the face of a private sector that offers better salaries. To attract the technical profiles crucial for their ecological and digital transformation, they are trying to highlight their public service mission, but the employer brand struggles to make up for the salary gap.

Artificial Intelligence is offering a potential solution, particularly with promising experiments in water management and energy optimization. However, its deployment faces two major obstacles: resistance from staff who (legitimately, in part) fear for their jobs, and public mistrust of a technology that often has a bad reputation. Finally, 2025, an election year, will see an intensification of local public procurement, in line with the usual electoral cycle, which alternates between active investment phases (before elections) and slowdowns post-election. Budget constraints, however, will force elected officials to make difficult investment trade-offs.


Industrie : décarbonation, innovation avec l’IA générative et réindustrialisation

Emmanuel Duteil, editorial director of the Industry division at Infopro Digital, paints a mixed picture of the French industrial sector. Although reindustrialization is underway, its results are disappointing, with a concerning mathematical reality: the number of factory closures still exceeds new openings.

The first priority is the decarbonization of industrial sites, particularly through electrification. This transformation affects the entire French production system and requires massive investments to adapt existing production lines.

Technological advancements also necessitate modernization on four fronts: strengthening cybersecurity to protect an increasingly connected production system, migrating data to the Cloud, deploying IoT sensors on manufacturing lines, and integrating generative AI into industrial processes.

However, once again, the lack of financial resources slows down these essential transformations. Public investment support programs are shrinking in a tense budgetary environment, even as France must ensure its independence in food, pharmaceuticals, and new technologies.

In response to this challenge, foreign investors represent a crucial lever, and their continued presence demonstrates France’s attractiveness. However, it is necessary to direct capital toward sectors with promising future potential.


Automotive: Electrification and Chinese Dominance

For Christophe Carignano, editorial director of the Automotive division at Infopro Digital, the automotive industry is undergoing an unprecedented transformation marked by three major challenges: forced market electrification, Chinese technological dominance, and the limits of consumer purchasing power.

The CAFE regulations require 25% of vehicles in the product mix to be electric, but the market is struggling to keep up: with prices ranging between €30,000 and €40,000, electric vehicles remain unaffordable for the majority of buyers. This situation is pushing manufacturers to request delays in the regulatory constraints.

In this context, consumers still favour hybrids, a transitional technology better suited to current infrastructures and usage patterns. However, this intermediate solution does not meet Europe’s decarbonization goals.

With a decade of lead on batteries and electric vehicle production, China dominates the market through manufacturers like BYD. This technological and industrial head start directly threatens European manufacturers, who now need to invest heavily to catch up.

In 2025, intense negotiations are expected between manufacturers, environmental lobbies, and the European Commission to adjust the objectives to market realities and consumer purchasing power. At the same time, new European regulations will accelerate automotive connectivity (adding an additional layer of investment).


Retail: Inflation Disrupts All the Benchmarks

Yves Puget, editorial director of LSA magazine, identifies three key factors that are disrupting retail in 2024. Inflation has caused food prices to jump by 20% in two years. Consumer behaviour has become erratic, with consumers fragmenting their purchases, shopping across multiple brands, and making decisions primarily based on price. In this context, sales forecasts have become highly complex and less reliable.

In 2025, the retail industry will need to refocus on four key fundamentals: competitive pricing, innovation, quality assortments, and in-store excellence. This “back to the basics” movement is even more necessary as gaps continue to widen between retailers:

The difficulty in hiring will persist in 2025, exacerbated by a weakened brand image among some historical retailers.

Finally, despite inflation, geopolitical tensions, and the legacy of Covid, pleasure remains the primary driver of consumption, sometimes contradicting trends toward sustainability or organic products. The focus is on indulgent discoveries, shared moments, and small daily pleasures. One clear sign: the best innovation of 2024 is an ice cream made by a famous spread brand. The 2024 consumer may not have deep pockets, but they are full of desires—and they are owning it! On the other side, brands that are falling behind are being replaced by new entrants in a constantly evolving commercial landscape.

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