Market Access Manual for Artisans Rev2 - Caribbean Export ...

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Importer/Wholesaler Trade Shows for Importers Retailers: Theme-related shops Retailers: Boutiques Importer/wholesalers source products from foreign countries, import them into the US and UK, and sell them at wholesale prices to retailers. Retailers from all over the US and UK who operate small stores and wish to purchase products that have already been imported into the US &UK. Cultural and/or recreational venues, such as museums and zoos. Tradition, cultural heritage or natural environment important to this type of retailer. Small, single‐standing shops that are often owned and operated by one person or a family. � Sell directly from a catalog, Web site, or physical retail store. Reduce shipping costs and complications. � They receive large orders at one US or UK location and then distribute. � Opportunity to secure orders for products from many dispersed retailers at once. � Trade shows for importers tend to be organized along product categories. � http://www.accessoriestheshow.com and the New York International Gift Fair, http://www.nyigf.com both held in New York City. � Retail prices are generally high in theme‐related shops because the products serve as a distinctive souvenir to visitors. E.g. Bronx Zoo and the Museum of African Art, London Zoo. � Product offerings can be quite specific according to lifestyle, such as fair‐trade or all‐natural, or product category. � Retail prices tend to be high in boutiques because products are thought to be unique and higher‐ quality, and the shopping experience is more personal. � Boutiques import from Wholesalers/retailers. In the US there are approximately 50,000 independent specialty retailers which include museum, hospitals, airport gift shops, gift boutiques in restaurants, hotels and resorts. They accounted for $45 billion in sales in 2008 (even though the US economy was facing a financial crisis) which was an increase of 4% from approximately $43 billion in sales in 2006. 5.3 METHOD 2: AGENTS (REPRESENTED IN BLUE ON THE CHART) The second, represented in blue, is through agents, either hired by producers or representing retailers. Both methods of entering the US and UK market are described in detail below. Importing Structure Characteristics Benefits Agents - hired by retailers Most large, well‐branded retailers have agents in geographic regions which locate factories and facilitate the � Purchase large quantities � Strict factory selection with which to do business. � Strict vendor code of 20 Page 20
Import Agents - hired by producers Retailers: Specialty stores Retailers: Mass retailers sourcing, product development, and manufacturing processes. Act as sales representatives for a foreign producer, often on an exclusive basis. Agent promotes the goods to local buyers and receives a commission on an agreed percentage of the sales, or a basic monthly retainer fee. Single‐unit or chain stores that carry product lines representing a single product category or related product categories. Largest and most price‐ competitive stores in the US and UK market. They offer a broad range of goods both sourced through their own agents and purchased from other brands. conduct and use third‐ party auditors to evaluate the working conditions in their factories on a regular basis. � Import agents can improve a producer’s margins by eliminating the importer/wholesaler as a middleman. � Producers can bear more risk by using a sales agent, as a sale is not guaranteed until a retailer places an order � They receive large orders at one US or UK location and then distribute. � Private label generally sourced through agents � Priced lower than boutiques, but higher than mass retailers. � Still very price‐competitive. E.g. Crate and Barrel, Pottery Barn, IKEA, Bath & Beyond. Enormous quantities at extremely low prices and make money by selling low‐margin goods in high volume. Examples of mass retailers include Target, Kohl’s and Wal‐ Mart in the US and Superdru in the UK. In 2008, even though it was the beginning of the recession period Department stores in the US reached annual sales of $199.6 billion which was a 6% decrease from approximately $213 billion in 2006 (US Census Bureau). 5.4 DIRECT-TO-CONSUMER RETAILERS (REPRESENTED IN YELLOW ON CHART) Direct‐to‐consumer retailers can fall under both Method 1 and Method 2. Direct‐to‐consumer retailers operate exclusively through paper catalogs and/or online sites that reach consumers without the presence of physical stores. They represent a variety of prices and products. With the advance of internet technology and the convenience of online shopping, more US consumers make purchases online each year. Because direct‐to‐consumer retailers ship orders anywhere in the country, they are particularly popular for gift purchases. Examples of consumer retailers that specialise in imported accessories and gifts include eziba.com and novica.com 21 Page 21
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Page 15 and 16: PRICE SEGMENTS FOR HANDICRAFT PRODU
Page 17 and 18: 4.7 POINTS TO CONSIDER IN ACCESSING
Page 19: 5.1.1 IMPORTING STRUCTURE IN THE US
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