THE USA IS THE WORLD'S LARGEST MARKET Land Mass 9.3 million sq kms Population 290 million GDP US$ 10,500+ billion (3%+growth) GDP Per Capita US$ 39, 922 # of States 50 + District of Colombia # of Supermarkets 41,932 # of Toy Stores 17, 866 # of airports 14, 801 Land Mass 7.7 million sq kms Population 20 million GDP US$ 530+ billion (3.5%+growth) GDP Per Capita US$ 26, 537 # of States 6 + 3 Territories # of Supermarkets 3,775 # of Toy Stores 763 # of airports 444
Food & Drug Administration Regulations ( FDA Agent, Importer of Record)
Environmental Protection ( Hazmat etc )
Buy America Act ( US Corp required )
STATE REGULATIONS eg.
Prohibited Items (eg kangaroo in California)
Controlled items (eg. Liquor in Utah)
Consumer Safety Requirements (eg. Lead Content in Toys)
INDUSTRIAL STANDARDS eg.
- Building Codes
RETAIL ENVIRONMENT SUPPLY CAPABILITY A MONTH’S ORDER COULD EQUAL AN AUSTRALIAN SUPPLIER’S ANNUAL PRODUCTION Eg. BRISTOL FARMS (13 stores) = each store has a turn over of between US$20 – 50 million CRATE ‘n BARREL (115 stores, 15 million catalogues) = US$865 million BLOOMINGDALES (30 Dept stores) = US$1.7 billion TRADER JOE’s (215 stores) = US$2.5 billion
LEGAL ADVICE IN THE US IS A NORMAL COST OF BUSINESS
Trademark or Patent Protection – protecting your brand or IP
Due Diligence on potential partners – background checks
Product Liability Advice & Insurance - the liability of a manufacturer or other entity in the chain of distribution for personal injury, property damage or economic loss caused by the sale or use of a product
Contract Advice – JV’s, MUL, Fulfilment Warehousing but also Sales Rep’s & Distributor agreements
AMERICANS ARE OFTEN VERY DIS-SIMILAR TO AUSTRALIANS
Business is king – work out the details of the deal first, worry about the people second.
Time is money – so don’t waste my money, be well prepared – samples, packaging and sales sheets. Know your ROI calculations, pricing and logistics.
Being Direct is a Virtue – ask for what you want, say what you mean, do as you say, and just get on with it. May come across as egocentric, “demanding” and less consensus oriented than others.
Who are you better than? – Know your competitive advantage over specific US suppliers, as well as your domestic or international track record.
Don’t be Negative – Australian tendencies to be sarcastic, down-play their achievements or “sugar-coat” messages can often clash with the American “can do” attitude and tendency to absorb information at face-value.
Be persistent – “pestering” is expected, stay in trade fairs, visit regularly, call often but don’t expect a response until 7 – 12 contacts later.