The foreign trade of France refers to all trade in goods and services between France and the rest of the world. France is the fourth largest exporter, the first and second in services for agriculture and food products respectively. The French economy is very open to the outside world. It exports an increasing share of its GDP.
Trade with the rest of the world is focused on goods, and also services and capital. This study will focus on exporting porcelain to the United States. The turnover in China and ceramics is more than 150 million euros, and over a third of this figure is directly linked to exports. This sector is dominated by the porcelain industry whose turnover reached 120 million euros.
Porcelain is the emblem of the Limousine (this is the first French region to have developed this activity), but it is also regarded as a symbol of success in foreign countries.
France, thanks to the city of Limoges, is now the world capital of porcelain. This reputation is due to the discovery and exploitation in the region of Limoges that has abundant deposits of kaolin and the presence of large forests. Kaolin clays are white, friable and refractories composed mainly of kaolinite. Their grain is coarse and they are much less plastic than most sedimentary clays.
Limoges porcelain sector has remained, very long time, a business incubator owned family legacy of industrial and labor history of the region. With its traditions in the past few years,increased trade and technological challenges for which they were unprepared.
In a context of free trade and low tariffs, the flow of production in the United States is easy. The game is changing with the Franco-American customs seizures in 1908 then in 1911, blocking exports and reduce margins.
Almost 2,200 jobs including 1,500 in Limousin Limoges (crisis China-17% of the workforce from 2001 to 2003), 66 million Euros in turnover of Limoges porcelain in 2004 more than 50% from exports. The leading companies are Bernardaud, Haviland, Royal Limoges. In total there are about a dozen Limoges porcelain factory. These are supported by the European Center of Ceramics and relayed by the Pole d'Economie Heritage (Arts of Fire).
Porcelain table Limousin develops a turnover of € 122 million with 44% for export. Its strength lies in the ability to constantly create new shapes and new decorations.
The export was made possible due to the fame of "Limoges" still very buoyant in the world, but also drawn some big names such as Cartier and Hermes, followed by Bernardaud and Haviland. Exports helped limit the consequences of the decline of the domestic market.
The United States with GDP rising to12 760 billion (2005), is the most powerful economy in the world. The United States are part of NAFTA, CAFTA and they have other bilateral agreements with countries such as Chile,Australia, Israel, Jordan, Morocco and Singapore. Exports from the United States amounted to 927.5 billion dollars in 2005.
The company responds to requests not only from France but also from abroad where the company wants to export the products. As already mentioned, this type of product for which France has extensive know-how is very well received abroad and is a luxury product.
Tags: Porcelain products, France, exports to United States.
[...] - In Germany: Heuchtenreuter, Rosenthal, Villeroy and Boch - In England: Wedgwood, Royal Doulton - In Italy: Tognana - Portugal: SPB, SPA - In Switzerland: Laufen Asian competition, with a secular tradition in China, is in the products "low end”. These porcelains are flooding the supermarkets at prices without competition. V. Internationalization A. Export or relocation The first question that arises is whether the most cost effective solution is to produce porcelain in the United States which continue to produce in France and then export. At first glance, the safest method would produce directly to the United States. [...]
[...] But it's up to us to train salespeople in these stores selling our products for buyers to turn to our brand rather than another. Even if companies specialized in china located in the United States are scarce, competition is none the less harsh. But we will sell our porcelain in specialty shops and luxurious. The low and midrange do not interest us and we vouons not there an amalgam. Because we sell our products to various companies, we will not manage the marketing process from beginning to end. This is why the issue of transportation arises. C. [...]
[...] Another problem of our business is the fragility of our product. Indeed, the problem is the case in determining the choice of Incoterms. So it raises the question of who pays transportation costs. To us the simplest would be to choose the model ex-works. That is to say that transportation costs are fully borne by the buyer from the factory. But buyers are cautious about it. For them it is reassuring that they do not have to provide transportation from our warehouses to their stores. [...]
[...] All this because the demand is constantly changing according to the methods and studies should be conducted at least once a year to know what type of product sells best and which ones sell less well. Remember that American fashion is not always the same as the French fashion and it will therefore distinguish in some cases the product French American products. III. Motivation export In 2004 the total turnover of porcelain from the Limoges area was 66 million euros. Exports represent about 40% to 70% of sales. China exports continue to grow. The first Americans are convinced that absorb a third of exports. [...]
[...] Method of advertising Our brand is renowned in France, but still is not in the United States. But rather than advertise excessively across the Atlantic, the first method is to distribute our porcelain in the largest U.S. restaurants and thus make our products known by exposure event. Then we rely on word-of-mouth to let us know. But the U.S. has always been interested in the French luxury, so our expansion on American soil, even if it takes some time, should be done without harm. [...]
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