Abstract
In this report we will figure out all the requirements in order to make a suitable advice to export Champagne to Canada. One of the most well-known products of France is wine. Champagne is one of the most popular and luxury products in this segment. If we take into consideration the market and spending power, we can conclude that Canada is a great opportunity to export this product to.
In developing countries, there is a market for luxury products, especially in times where the economy is improving and the upper- class and general spending power of the population is going up. After quitting the economic recession, there are new opportunities to export luxury products. Furthermore we discovered that 7% of the USA inhabitants consume Champagne. In Canada, this is 0%. We can conclude there is a huge possibility to introduce champagne to this market too.
We decided to export the Brut imperial magnum 1.5l in Coffret Bois, champagne of MOET ET CHANDON (68, 00 euro). After a market research, we found out that there are similar bottles of champagne on the Canadian market in the same price range, between 80 CAN DOLLAR and 116 CAN DOLLAR. This price range in Euro was between 62.38 euros and 90.45 euros. The price at which we could buy the champagne was without taxes 56.86 euros (minus a VAT of 19.6%). If we take a sale margin of 30% of high-quality champagne, the price for which we can buy the champagne at the factory is 43.74 euros.
