When reindustrialization and coopetition go hand in hand in the world of athletic shoes
The French government has decided to allocate 850 million euros to promote the relocation of industry within the country.
Frédéric Le Roy, University of Montpellier and Camille Bildstein, University of Montpellier
This priority, which emerged from the COVID-19 crisis and the resulting logistical challenges, was reaffirmed by the President of the Republic during the Paris Motor Show. The funds were allocated following calls for projects directed at five sectors considered “critical”: healthcare, agri-food, electronics, essential industrial inputs (chemicals, materials, raw materials), and 5G. A total of 477 recipients were ultimately selected.
For many, however—including economists Elie Cohen and Pierre-André Buigues, who recently wrote a scathing op-ed in *Le Monde*—we are still a long way from achieving this goal. One of the main obstacles remains production costs, which are still very high in France compared to those in emerging economies—a challenge that is not helped by inflation and fears of energy shortages.
Cooperation among competitors
Beyond government aid, our research, conducted at the Coopetition Lab and the Coo-innov Chair, suggests that one strategy appears to be quite effective and certainly worth promoting: cooperation among competitors, sometimes referred to as “coopetition.” Not only does it reduce costs by pooling resources—since competitors often use similar infrastructure—but knowledge sharing also makes it possible to launch ambitious programs and fostersinnovation. On this last point, let’s recall how researchers at BioNTech and Pfizer quickly came to an agreement and combined their expertise to jointly create the first effective vaccine against COVID-19.
Coopetition is a strategy whose value to businesses is increasingly recognized. It appears to be just as relevant for projects led by large companies in high-tech sectors—such as the Galileo project or video game development at Ubisoft—as it is for small businesses in traditional sectors like the wine industry.
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A prime example of the success of this strategy, centered on a project to reindustrialize France, is that of Salomon, Babolat, and Millet, three major players in the athletic footwear industry. All three, with the goal of relocating their production to France, agreed to have part of their footwear manufactured by the same subcontractor, Chamatex, in a single factory, which they jointly financed somewhere in northern Ardèche, in a small village with fewer than 2,000 residents.
Competing with Asia
In 2020, Chamatex, a manufacturer of technical textiles, launched the Advanced Shoe Factory 4.0 project (often referred to simply as “ASF 4.0”). After a year of construction and a €10 million investment, the sports shoe factory was officially opened. Its goal? To put France back at the heart of shoe production and compete with Asia. Part of the factory’s investment costs was jointly covered by three client companies, originally three competitors: Salomon, Babolat, and Millet. Each contributed 400,000 euros.
The factory’s advanced automation is designed to create a flexible production line capable of manufacturing various types of shoes for the three competing brands. The Babolat, Millet, and Salomon shoes to be produced by the ASF 4.0 will primarily be made from a shared technical fabric, Matryx. This fabric, which was originally invented by Chamatex and Babolat, is used to create new shoes that are lighter, more durable, and offer optimal support. Millet and Salomon will thus benefit from technology developed by a competitor.
Just a gift from Babolat? Without cooperation from the competition, the factory would never have been built, since its profitability depends on producing large quantities that allow for economies of scale and help recoup the investment.
The plant’s state-of-the-art facilities also enable shorter production times. As they set out to conquer the European market, the three competing partners will also be able to demonstrate their responsiveness. Finally, producing closer to consumers helps minimize transportation costs throughout the supply chain and the environmental costs associated with the carbon footprint.
Counterintuitive but inspiring
Ultimately, the factory is expected to bring nearly 50 jobs back to France. The project’s leaders aim to replicate this factory model—and, more importantly, this cooperative-competitive model—in other regions, in order to continue bringing shoe production back to France.
Coopetition may, admittedly, seem counterintuitive: at first glance, companies prefer to develop their projects on their own. And if they lack the necessary skills or resources internally, they will seek partnerships with non-competitors. Teams are often formed with competitors only as a last resort.
Nevertheless, this exemplary case clearly demonstrates that coopetition—by enabling cost reductions, flexibility, and the sharing of innovations—proves to be an effective strategy for bringing industrial activities back to France. The French government could therefore have taken note of the fact that, in responses to calls for proposals regarding reshoring, competing companies submitted joint proposals rather than separate ones.
Encouraging this type of strategy—as is done within competitiveness clusters—could, in fact, serve as an alternative to the current call for proposals. Beyond government incentives, the Chamatex project could serve as a powerful source of inspiration for all French manufacturers.
Frédéric Le Roy, Professor of Strategic Management – University of Montpellier and Montpellier Business School, University of Montpellier and Camille Bildstein, Research Engineer, University of Montpellier
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