[Fashion] Fifty Jeans – Launch your brand without cashflow problems!
In recent years, the “Made in Spain” tag-line has positioned itself like never before in the fashion footwear area. It has become a “brand” associated with comfort, quality and design, with excellent value for money. A recognition that opens the doors to footwear firms when entering the most demanding markets.
One of them is the United States. A complicated market due to its size, payment methods, logistics, but above all, for the structure and mentality of the distribution. This is a challenge for many footwear companies that consider their expansion in this country as an opportunity. Proof of this is the constant increase of Spanish footwear exports to this country, which tops the table of consumers outside of the European Union.
In the first five months of 2018, the United States increased its purchases by 11%. The average price stands at 46 euros, one of the highest in the world for Spanish footwear, and it continues to grow around 20% in the same period. Despite these statistics, the penetration of these brands is not as what is desired expected.
There is a large potential for growth for Spanish companies who operate in a country where consumer behaviour is very positive and accepting of the recognised “Made in Spain” footwear, which is on the rise.
The largest segment growth was the “Millennials” who search for luxury and premium brands. According to several studies, this group currently represents 70% of the total volume of sales. Millennials are young people between the ages of 28 and 36, with a high income, excellent education and who prefer to be self-employed and developing their own projects. They are also the largest “age group” in the history of mankind.
“Millennials” choose brands that have a history. They have a keen interest in everything that is part of and that surrounds a product, as well as its quality and design. It’s an excellent opportunity for companies that have products aimed at this consumer group which is going from strength to strength.
The particularities of this market rely on having either agents or distributors. The relationship with department stores is complicated when you don’t know how they operate. These groups, independent stores and online companies, demand that you provide an exact price list for their market, as well as logistics and a strict commitment to the shipping times; In addition, they especially value the existence of stock with fast shipping.
There are more than 50 European fashion brands that have trusted the French multinational, right from their beginnings, to manage their sales in this market.
Angelo Ippoliti, CEO of Webhelp Logbox USA confirms the growing interest in Spanish footwear in the United States. The “Made in Spain” is valued by independent and department stores alike. The clothing and footwear are convincing due to their quality, design and value for money, even to the detriment of “Made in Italy”. It is a time when various positive factors come together to favour the introduction of Spanish brands. The potential for growth is very promising thanks to the activation of the consumer market.”
In line with the reality of the market, Webhelp Logbox USA has created a customised service, specific to this market. “Runbox: Corporation and Retail management services”, launched in 2010 by Webhelp Logbox USA.
Runbox provides all the necessary support to those companies that wish to enter the United States market. Companies with a turnover of more than 1.5 million euros, that are committed to innovation, are growing in a fast and constant manner. Its success is based, in part, on the trust placed in Runbox that manages its organizational structure thanks to BPO (Business Process Outsourcing). They thus concentrate their own growth strategy and build solid long-term bases and alliances with the most competent partners in each case.
As Angelo Ippoliti explains, “it is fundamental to decide the distribution channel, prepare the list of final prices “on-site”, calculate taxes, implement logistic strategies and manage credit and payments. Also, dealing with the department stores is complicated.” Currently, the figure of the agent prevails over that of the distributor, as long as they have a solid support in the management of payments, logistics, stock, amongst other factors. 75% of independent stores work with cheque payments on 60-day terms. The department stores pay on 30-day terms and always by cheque, whilst online stores and other chains pay by cheque on 30-day terms.
With Runbox, the company has a subsidiary in the United States that perfectly handles and knows the strategy of price penetration, the international brand image, the dynamics in the opening of “flagship store”, the implementation of electronic commerce, in addition to providing a solution for the “duties”.
Companies that are committed to internationalization know that it is necessary to develop a plan on a global level, with teams that are geographically, culturally and structurally apart.
Webhelp Payment Services has had an experienced team trained in international credit management for the last 30 years. It is an approved payment entity with financial strength. It has the capacity to assist companies in the international arena, with the appropriate resources for each case and always connected to the interbank swifnet network.
Author : Maite Ruiz Atela
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