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26 February 2025

French SMEs Shift Sourcing Strategies For Cost Efficiency

Over half of small and medium enterprises plan to change suppliers, emphasizing digital solutions and quality products.

French SMEs are set to transform their sourcing strategies significantly as they head toward 2025, responding to competitive pressures and market demands. According to new data from Alibaba.com, over half (51%) of French small and medium enterprises (PMEs) are planning to seek out new suppliers this year. The primary objectives driving this shift are cost reduction and the enhancement of product quality.

Recent figures indicate more than one-third of these SMEs rate sourcing products at more advantageous prices as their top priority for 2025. This is closely followed by the search for trusted suppliers, with 38% of participants highlighting this need. Acquiring trendy new products to attract fresh clientele is also on the agenda for 35% of PMEs, along with 28% focusing on sustainable product sourcing.

The study sheds light on the evolution of procurement strategies as more than half (57%) of the SMEs surveyed affirm digital sourcing is more pivotal now than at the same time last year. This shift signifies growing preference among these enterprises for direct procurement channels, which entail purchasing goods directly from suppliers instead of going through intermediaries.

The research, conducted involving 1,000 decision-makers responsible for purchasing within French SMEs, emerges as anticipation builds for the March Expo 2025 event, which is Alibaba.com’s annual B2B sourcing event. This event brings together buyers and sellers worldwide, enabling them to explore the latest product opportunities and form new supplier partnerships.

During the March Expo, B2B buyers will have access to thousands of sustainable product listings and benefit from over two million offers, including product certificates. Kuo Zhang, President of Alibaba.com, noted, “French SMEs are adopting a more strategic approach to their sourcing, emphasizing accessibility, responsiveness to trends, and supplier reliability to remain competitive. Our study shows SMEs are going beyond cost-saving measures and are actively seeking new suppliers to sustain their operations.”

This strategic pivot resonates with broader trends across Europe, where orders placed by buyers on the platform increased by 75% year-over-year this February alone. With the growing emphasis on digital procurement, businesses are not only enhancing their flexibility but also broadening their access to product varieties necessary for growth.

To aid SMEs through this market evolution, the March Expo 2025 will showcase over one million new products at competitive prices, and attractive coupon discounts ranging from $5 to $500 will be available during transactions. Early orders will also benefit from discounted shipping costs, with reductions of up to $20 on shipping fees for deliveries made via Alibaba.com.

Interestingly, February also revealed significant growth trends across specific product categories, particularly within personal care items, artistic gifts, and consumer electronics. The Premier event begins on March 1, 2025, through the Alibaba.com platform, setting the stage for comprehensive interactions between suppliers and buyers.

Notes to editors: The surveying process was carried out by Censuswide and focused on decision-makers within French SMEs with fewer than 150 employees, excluding self-employed workers. Data was collected from January 31, 2025, to February 6, 2025, adhering to standards set forth by the Market Research Society (MRS). This type of insight provides invaluable knowledge to stakeholders across various industries, especially as they adapt to the shifting landscapes of supply chain management.

With the challenges brought about by the current economic climate, French SMEs are demonstrating resilience and adaptability. The emphasis on digital sourcing reflects not only the demand for efficiency but also the necessity for reliability and quality—a derivation from the need to compete effectively within the global market.

By embracing these changes, businesses are setting themselves up to navigate the competitive environment of 2025 and beyond, ensuring they can not only survive but thrive against the backdrop of shifting consumer expectations and market dynamics.