Reference no: EM133039538

This case presents an export operation of footwear from a Spanish footwear company located in Alicante to Japan. Pinoso's was founded in 1979. The company began to operate in Pinoso, a small town located close to Alicante (East of Spain). In its early years, the company focused on manufacturing kiowa shoes for men, women and children. Pinoso's was becoming more and more involved in the manufacture of comfortable and adaptable footwear for all types of skins. Thus, it is currently one of the most important and well-established companies in the Spanish footwear industry.

From 1986, the company manufactures comfort footwear, always using lambskin in its production for ideal comfort. For this reason, the company currently offers some of the most comfortable models existing in the market, which have been created for the well-being and health of its customers' feet. More recently, the company has diversified its product range by including shoes specifically designed for diabetic man and women. At this moment, the company is exporting to 17 countries.

Japan is a new market for the company. Shipments are small and the company is not interested in paying for the transport. The price of the product at destination is high, given the increased margins.

The company wants to guarantee the distribution of its products in the Japanese market. To achieve that goal Pinoso ´s has chosen to use the services provided by small importers specialized in certain segment - in this case, Spanish footwear- through which they ensure distribution throughout the market. These are exclusive importers of Spanish footwear that send their products at exclusive clothing stores.

As the importers are interested in completing the catalogue of footwear that they offer to their customers, several Spanish footwear stores provide them with different types of footwear, what avoids competition among them. That allows the importer to group shipments of various Spanish footwear stores in order to complete the orders of their customers.

Using the information aforementioned, which incoterm would you recommend to the exporter in this operation? Justify your answer using the criteria explained for incoterm ´s selection and the information provided in this case study.