Exporting to Canada
Key information for those wishing to export to Canada
In 2007, the total revenue generated by this market was 20.6 billion dollars. Those who wish to export to Canada should know that the ten most profitable retailers are responsible for approximately 50% of sales and the first five (Sears, WAL-Mart, La Baie, Zellers and Mark'sWork Warehouse) are responsible for 41% of sales in clothing retail.
Approximately 50% of total revenue made from clothing in Canada is made by specialist retailers and that half of the market is fragmented (Source: Jeux Du Commerce, Concordia University School of Management John Molson 2010).
The following are trends and general guidelines for the retail market:
- The consolidation of the retail market has created bigger businesses with more negotiation power. The large retailers have created their own brands or offer global brands to the detriment of the local population.
- The increase of market share for specialist clothing retailers.
- High levels of pressure on the entire value chain of fashion clothing; lower prices for better quality.
- Growing presence of discount stores such as Wal-Mart or Target in the USA.
- Pressure from the fast fashion model e.g. Zara, H&M
- Growing social conscience for ecological materials. (Same source: Concordia University, Montreal).
Managing accounts receivables and debt recovery in Canada
Accounts receivables managers looking to recover outstanding credit must be careful to avoid forbidden practices. After a ruling on the 15 th April 2009, agencies QQRCanadaItée, TCR limite, FDR Itée de Montréal were fined because a person acting on behalf of a debt recovery agency cannot:
- Contact a debtor before sending a written notice
- Communicate orally with a debtor who has asked to be contacted in writing only
- Contact a person who has claimed that they are ‘not the debtor'.
- Suggest that legal action will be taken should payment not be made.
- Threaten the debtor by telling him that his failure to pay will be revealed to others
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Contact the debtor at their place of employment without their consent.
- Fail to identify themselves to the debtor
- Fail to supply the evidence to back up the claim within 30 days.
Accounts receivables managers for debt recovery should therefore check the laws in Canada applicable to this specific business domain.
The International debt recovery guide published by Atradius Collections in April 2011 outlines that the coverage period in Canada is 3 years for commercial documents but it payment has not been made, the period can be suspended.
Useful information on debt recovery in
Canada : Download an extract of Atradius Collections 2011