Export in the USA
The structure of fashion distribution in the USA
The breakdown of the fashion circuit in 2009, in percentages, is as follows (Source: Eurostat MFI ‘the fashion consumer'):
- Outlet stores 29%, Department stores 15%, Variety Stores 14%, VAD 5%, Hyper/supermarkets 21%, others 4%, Discounters 9%, Independents 1%, Factory Outlets 2%
The key characteristics of this market (Source: MFI day ‘the fashion consumer) are: a market in regular growth until 2008, favourable demographics, the position of women in the amount spent on clothes 55% in comparison to men (27%) and children (18%), very high budgets per head (980 Euros vs. 627 in the EU), and a much less fashion oriented market than Europe.
Distribution trends are as follows :( Source IFM, the fashion consumer):
- Department Stores: - Middle classes losing buying power hence the higher ranges to target the more well off classes.
-Impact of the Zara business model: turnover, high growth in turnover, weak sales hence the need to refine its style, optimise logistics, ( key point) , being hyper-reactive.
- Lack of the "mall" concept.
- Full diversification: Accessories, jewellery, leather goods, clothing for dogs.
For those who would like to export in the USA, we have tried to be as ‘factual and accurate as possible' to teach them the ‘rules of the game' in the spirit of sharing knowledge: our professional philosophy.
Precautionary measures for the B to B debts for those exporting to the USA
Of course, it is preferable to obtain secure payment with a credit note in payment procedures for those who are exporting to the USA.
In cases where this isn't commercially possible, it should be known that in the USE, there is no injunction procedure for payment or any equivalent procedure for debt recovery.
Debt recovery proceeding in the USA generally cost from 5000 to 10,000 dollars. In most of the States, the right to take legal action for debt recovery is granted for 2 years when the debt is the result of a verbal contract and by 4 years when it is the result of a written contract (Source: Guide Pratique du Recouvrement de créances by Martine Dickstein)
There are several types of guarantees, the most common being the Security Interest guarantee which corresponds to our retention of title with the registering of a document called the UCC-1 with the Secretary of State in which the assets are located and which serves to notify the buyers of the assets of which the vendor remains the owner.
National legislation does not provide for compensation for the creditor to cover recovery costs (unless there is a contractual agreement).
As we can see, Anglo-Saxon law is governed in a way that is different to Latin law, by principles of contractual freedom given to parties. For those who wish to export in the USA, you must be well supported, legally. Contact our debt recovery department which will be able to give you preventative and professional advice.
Useful information on debt recovery in the USA: Download an extract of Atradius Collections 2011