EXPORTING TO UK
The structure of fashion distribution for exporting to England
(Source : UBIFRANCE Rencontres d'agents britanniques de Prêt à Porter Féminin 17 November 2010)
In 2008, the size of the market was estimated to be €45 billion the majority of which is due to imports from Asia (€7 billion). 85% of sales are made at retailers. Multibrand stores (app. 13,000) account for 10% of the market and there has also been a rapid increase in the online sales. Among the different types of retailers:
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Specialist branches: Arcadia Group and its multiple stores (Top Shop, Dorothy Perkins...) with 9.2% market share.
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Department Stores: John Lewis, House of Fraser...
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Variety stores: Marks and Spencer 12% market share
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Supermarkets ‘Grocery Stores'; George at Asda, Tesco (whose sales are growing)
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Discounters ‘retailer value': They continue to encroach on specialist branches' market share: Primark, Newlook
Clients who are exporting to England and who are working with independent traders should be aware that for client account management, payments are made as much by cheque as by transfer. Clients are receptive to follow ups and those who are exporting to England must issue purchase orders and general sales conditions in English.
Useful information on the Fashion Market in England
Precautionary measures against B to B debts for those exporting to England
An account issued by an English bank and our credit insurance policy is used to manage client accounts and for the SFAFC account. When the debtor does not react to payment reminders, the creditor has two options: either to issue a Statutory Demand (equivalent to the French ‘order to pay'.), or to begin court proceedings to obtain a ruling. It should be noted that it is possible to include a reservation of title clause in the sales contract. Generally, those exporting to England must be aware that the contract has force of law as with in the USA (Common law) and it is far more preferable to enlist the services of an experienced practitioner of commercial law.
Useful information on debt recovery in England: Download an extract of Atradius Collections 2011