"Footwear Men's Shoes"
To present the range of product "Footwear Men's shoes" I chose the German brand PUMA. It's a company created in 1924 in Germany. This company proposes a large range of shoes. In fact it sells football shoes, cricket shoes, baseball shoes, running shoes and motorsport shoes.
We will see more precisely in this study the product range: motorsport shoes. You can see here three models of shoes:
II. Distribution in France
This product was firstly designed for the automobile competition but now it's a convenience good.
In France this product is sold in different kind of shop:
- In shops specialized in shoes selling like Chausport, Footlocker, etc.
- In shops which sell sports equipment like Decathlon, Go Sport, etc.
- In large scale retailing as Auchan, Géant Casino, etc.
In France the price of this kind of product is between 90€ and 120€. This price varies according to the model and the place where the product is sold.
In fact the new models are more expensive and the price is a little bit higher when the product is sold in specialized shops.
In France PUMA uses different means to communicate. The company uses three main means to promote there products: Firstly the brand uses TV advertising, secondly it uses sponsoring and finally PUMA uses posters.
Here you can see the logo of the brand it's another mean of communication because it's known everywhere in France and in the world.
PUMA has two main targets for its products:
- The teenagers between 12 and 18 years old
- Adults between 19 and 40 years old.
PUMA in the United States
I choose to export this product in the US market. Why this choice?
Firstly because the US market has a large potential of customers. In fact the population is around 300 millions people. Secondly because customer needs are quite the same as in France.
Nevertheless it is necessary to adapt the product to this new market. We are going to explain these adaptations.
I remember you the product is shoes and more precisely shoes designed like shoes for motorsport. The first adaptation concerns the language. In fact before exporting our product we have to translate in English the tag inside the shoes with the explanations concerning washing, size or place of fabrication for example. Generally there is a paper which presents the company so it is necessary to translate it in English.
II. Sizes conversion
In the United States the sizes are different than in France so it is necessary to convert the French sizes in American sizes. This is an extract of a table of sizes conversion:
|United States |6 |7 |8 |9 |10 | |Importations in million of pair |1462 |1476,6 |1635,7 |1745,5 |1784,6 |
In the United States the customs duties are generally low. There are two main taxes:
- Merchandise processing fee: this tax concerns all the imported goods. It corresponds to 0.21% of the goods value.
- Harbour maintenance fee: this tax concerns all the maritime importations. This is 0.125% of the goods value.
In the United States there is no VAT for the consumer.
There are states taxes; they are between 4 and 8% of the price. Moreover some cities have a special additional tax of 2%. Generally in the USA the prices in the shop are presented tax not included.
In France our product it sold at around 100€, normally in the United States we will sold it at around 120 dollars. But there is a problem the average price in the USA for sport shoes is around 55 dollars.
So if our product is sold at 55 dollars our margins are lower than in France so we have to compensate this difference for the number of product sold.
We seen the American market is bigger than the...