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| France |
| Marketing
and Distribution |
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The Paris region
is the principal marketing and distribution centre in France. Over
half of the nation’s business is done there. While the French
import trade is heavily concentrated in Paris, a representative or
agent based in Paris will not automatically cover the whole of France.
Distribution
There are various techniques for marketing goods in France. Expensive
and technically sophisticated goods are frequently sold directly to
the end user, although most French buyers prefer to purchase through
an intermediary. Commission agents generally sell capital equipment.
Specialty goods, consumer goods and engineering products are sold
through importers/distributors, who purchase on their own account.
Consumer products may be sold to department and chain stores through
their buying offices. Selling to them is an excellent method for introducing
an item on the French market. Items such as food, drugs, hardware,
electrical goods and textiles can also be sold to buying organizations,
including wholesale chains and independent retail cooperatives. Exceptionally,
sales also may be made directly to some specialty stores (china and
glassware outlets and hardware stores).
Agent/Distributor Arrangements
French law distinguishes among three different types of commercial
distributors and attaches different duties and obligations to their
status. There are distributors who sell products directly to customers
and there are two classes of sales intermediaries who canvas clients
in order to seek orders on behalf of the producer or dealer.
The Distributor
A distributor is an individual or legal entity that directly purchases
goods from a producer for the purpose of resale. The distributor operates
independently and is bound only by the written provision of the distribution
agreement. These agreements however, are subject to specific rules
and regulations regarding exclusive dealing and price fixing.
The Commercial Intermediary
Individuals performing a representative role for the enterprise, that
is, seeking prospective clients and passing on orders in the name
of and for the account of producers, manufacturers and dealers, can
be divided into two separate categories:
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Salaried representatives, which includes
both statutory representatives and regular representatives. |
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Agents, which includes commercial
agents and those agents not fulfilling the conditions necessary
for commercial agent status. |
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