Friday, July 11, 2008

Imports And Exports Continue To Rise

According to the US Census Department... I thought with a weak dollar imports were supposed to decline and exports supposes to rise... not much change... hmmm?


Thursday, July 10, 2008

Free Market In News

How long before this becomes the #1 news source on planet earth?


RAG TRADE DETAILS

Folks,

I visited with a commodity specialist as US Customs in Seattle recently to get some answers to some questions regarding garment imports. I've never worked in garments, so I didn't know the answers, but I have had the questions many times over the years.

So here goes:

1. What is a RN number?

The RN number you see is a code for the name of the manufacturer or importer. In many cases one importer or manufacturer is producing for various wholesalers or retailers (this should not be news to anyone on this list) who put their label on garments produced by a manufacturer or imported by an importer. For example, an importer may be importing ties for Calvin Klein, Macys and Henri Bendel. The same tie has different labels sewn in for each, but instead of the name of the manufacturer or importer, there is a RN number to satisfy labelling requirements.

2. Say I find a RN number on a tie I bought at Barney's. Can I take that number to customs to find out the name of the importer or manufacturer behind that number, and thus learn where Barney's bought it?

I don't know, I forgot to ask. Let me know if you find out.

3. If you want an RN number for your own purposes, where do you get a RN number to comply with Customs requirements?

This is why the question always threw me: The FTC issues RN numbers. It did not occur to me to look there... go to:

www.ftc.gov and click through...

- consumer protection

- business informtion

- clothing and textiles

- threading your way through labeling requirements (witty, that...)


Next, pop over to customs and read the marking requirements, which will mention the RN number...

www.cpb.gov

Click on TRADE

- textiles and quotas

You'll find various links to info...

- Informed compliance Publications

Marking regulations for wearing apparel

Textile and apparel rules of origin

There you will find such details as Country of origin must be on the collar; RN or Full name of Manufacturer or Importer; fiber content and care label, etc.

I also asked about the practice of Hong Kong tailors taking measurements in USA, and then express posting the finished suit into the USA from hong kong, bypassing the Customs regulations. She said Customs was well aware of the practice, but it was low priority enforcement. The risk is sometime a customs mail inspector will come across such a shipment and randomly enforce the rules on the parties involved.

John


Blessed Are The Peacemakers

Interesting story, and now I want to see the better-than-Versaille place.


China & Taiwan So Happy Together

Well, it makes sense that China and Taiwan would reunite. Back in the day, the bad blood between the Taiwanese and the mainlanders, very often cousins as in the USA civil war, was so bad that each side woould treat roughly anyone who traded with the other side. For this reason, USA businessmen were allowed to carry two USA passports, one for Taiwan visas, another for Chinese visas.

One time long ago a young woman in China rudely asked me directly if I traded with Taiwan. Yes, I answered. As she drew in her breath begin a long criticism of me, I cut her off with "Taiwan is part of China." She paused. "Chairman Mao welcomed Americans to trade with China." She continued her pause. "Taiwan and China are one country." (Both Taipei and Peking agreed on this point). She began to smile, and said to me, "Your politics are very good..."

Happily China and Taiwan are pursuing business over politics, and as usual, peace is breaking out.


Tuesday, July 8, 2008

Karl Lagerfeld on Product Piracy, Knock-off, Counterfeit

Karl Lagerfeld explains to an audience how he does not care about bootlegging and knock-offs pirated goods. His explanation is exactly mine: in the real world, it does not matter. The knock-offs are sold to people who are not his customers anyway, and he is personally flattered.

I would go farther and say it is free advertising. Companies spend massive amounts to tempt buyers, when they might as well just let the knock off artists be their advertising arm. The band Grateful Dead certainly gained sales and fame this way.

Some people get so worked up over the activity.


Monday, July 7, 2008

Sunday, July 6, 2008

Customers Video Part 8

Here ya go...

http://it.youtube.com/watch?v=7F2bgwchrn8


John


The News Just Gets Better

As the world slips economically, our value in the marketplace grows exponentially. As factory capacity grows from lack of business, factories become more flexible and more keen on testing new products. Excellent for us.


Suzara Checks in On Belly Dancing

Hi John,
 
I have a belly dance outfit that is unique in design.  I have been in belly dance for 12 years and have not ever seen this design on anyone else.  I bought it used years ago.  It was hand made in India.  I would like to have this design reproduced with a few modifications in the design.  I am fond of this outfit because the design is flattering to wear and will be affordable- if made in India.  Belly Dance costumes generally sell in the range of $250-800.  Bead work is inexpensive in India and unreasonable in USA.  I can have my sample design created here in Denver which will cost me probably a few hundred more than I can sell it for but it will be used as a sample.  I think this should sell for $150-200.

Unless you have been introduced to belly dance you aren't aware that the market for belly dance is HUGE and there is a lot of competition.  Belly dance costumes are primarily sold on the internet, at belly dance events (vending booths), and retail out of instructors homes.  Although there are probably some retail stores, I have never seen any.  So, I think I would have to contact retailers (customers) through the internet.  I'm unsure how to approach this.  There are sites that list instructors worldwide that would give contact numbers.  I could cold call these instructors in USA and ask if they retail...
 
We talked about walking into stores as a customer to find a market.  What do you suggest my first step should be?  How should I approach this?  Should I first work on finding someone to make a sample of the product?  Then contact retailers through the internet and telephone - mail photo's or email photo's of a model wearing it to get an idea of interest?
 
Do you think this is a good idea?
--
Susan R. Bailey
"Suzara"
http://www.bellyendeavors.com/

On Thu, Jun 26, 2008 at 10:42 AM, John Spiers wrote:

On Jun 26, 2008, at 7:44 AM, Susan Bailey wrote:
.  So, I think I would have to contact retailers (customers) through the internet.  I'm unsure how to approach this.  There are sites that list instructors worldwide that would give contact numbers.  I could cold call these instructors in USA and ask if they retail...

***Sounds right...  but my kid has introduced me to youtube...  anyone with a digital video camera can make a 2 minute video opening with you dancing and closing pitching your costume, parts, costs, where to get it... and have a "chyron" across the screen the whole time with your website address, etc...  as part of your email or other campaign you have the link to youtube where people can go and see you and your product...***

 
We talked about walking into stores as a customer to find a market.  What do you suggest my first step should be?  How should I approach this?  Should I first work on finding someone to make a sample of the product? 

***Since you'd be happy to own a sample of the item, then I would find the best place in the world to have these made...  once I know all of the costs, then set a price...  next do the video, as above, then email off to all those contacts, asking them if they have a favorite retail store for belly dancing costumes...  if not, then would your peers retail to students (you wholesale, they retail...)***

Then contact retailers through the internet and telephone - mail photo's or email photo's of a model wearing it to get an idea of interest?

***Well, I went to your website, and I saw your pictures... and if you will allow me, WOW!.  I am sure you will take that as a performer would.  Why not you in the costume?  Why hire a model...  ?***


Do you think this is a good idea?

*** I met woman who sells kid sized accourtements for saying a Catholic Mass.  She markets to religious stores.  She nets 80k a year, very part time.  The market is for people who want to encourage their kids to join the priesthood.   AS to whether somethign is a good idea, you custoemrs will decide, but if you are asking me whether there might be money in it, worthwhile, I've seen far more improbably businesses.

Also, if done right, the costume would be just the beginning... think of all the other things that go with the dancer... then think of the audience... the drinking vessels, hookahs, etc...

Finally, have you thought of a 4 way promotion?  A dance studio, you, a boutique and garment wholesaler?   A boutique has a trunk showing of fashion, in a dance studio, where the health and beauty of belly dancing is tied in with all of the above?  If that paid off locally, then take it on the road...***


Susan R. Bailey
"Suzara"
http://www.bellyendeavors.com/

John,

Utube - amazing advice and a fabulous approach to get the product seen.

I know of 2 costume designers that are very capable of creating my design- one here in Denver and the other (I prefer) in San Antonio but I would have to travel. I'll have another lady do all the bead/sequence work on the costume- which is the difficult, time consuming part of creating the outfit.

My question: If I split up the work (or not)- will either party feel they should get "credit" for the sample creation? And, are their any legalities to the design creation if they are the person doing this work physically?

Yes, WOW, is an appreciated response. :)

I have a dance studio in my home basement. I currently do some retail in my studio. I have a contact in Thailand (agent) that gets the merchandise from the supplier and ships it to me. I have had about 4 shipments in about 1.5 years (approx. $800 each). Not a big amount but I do have a couple of ladies that are selling my necklaces and a vendor that purchased wholesale from me -about $500 of the $800 shipment. I also have jewelry from Bali on consignment. I purchase Eqpytian products from a contact in AZ, and outfits made in India from a Wholesaler in CA. But- I'm not excited about the retail part- buying merchandise, waiting for it to sell, and wrapping up my money into products. My goal originally was to sell on the internet and have retail space / dance studio as you suggested. However, I still don't feel passionate about the idea because it feels too big (if that makes any sense). I just finished a course to learn how to use my website software. Next is to learn how to make a template, take photo's, place products & photo's, hire a merchant for check out....etc. It's a lot of work. This has been tiresome. I am pleased that you have now redirected my attention to wholesaling. I'm so open for another direction. This feels better. :)

Question: Regarding the 4 way promotion you suggested, dance studio, me, a boutique, and garment wholesaler. I'm not sure what you mean by "...take it on the road?" Do you meaning wearing the costume/performing/wholesale vending to get exposure?

Thank you for your help,
Susan

On Jun 26, 2008, at 12:59 PM, Susan Bailey wrote:


Question: Regarding the 4 way promotion you suggested, dance studio, me, a boutique, and garment wholesaler. I'm not sure what you mean by "...take it on the road?" Do you meaning wearing the costume/performing/wholesale vending to get exposure?

I mean

I mean that if all four entities make money at this promo, then you find other retailers or otehr studios in other towns to host the same gig... kind of a rolling promotion...just an idea...

JOhn
e.


Anthony Levels a Criticism

John

One ... point I wanted to make is that the glass babies are not some exotic piece. The design is simple, which puzzles me somewhat since you said the easier the design the less money you'll make...or something like that. But the glass baby lady is making $2mil a year. By the way, when she had the Chinese glass babies, she sold them for $20 each.


I don't believe the "innovation" of  a product has to be something extravagant, or earth shattering.  I often think about this with coffee mugs I see at starbucks.   The basic mug /cup has been around since the dawn of man. The functional design has never changed; mugs hold liquids.  Yet whenever I enter Starbucks, there is a new coffee mug design.  And so it was last week.  There, in Starbucks, were Italian coffee mugs.  Hand painted from Italy.   There was a picture of the craftsmen (probably Romanian immigrants) with little paint brushes painting the mug.  And of course the story to hype your special mug.  Buy a little piece of Italy for only $19.95.  And I bet Starbucks makes a mint off these mugs.

During your lecture, you list several innovations.  I wonder if this innovation stage intimidates your students.  You take them from, "I'm going to import handicrafts from the 3rd world.", to Oh my God, I have to come up with an idea!?  Just a thought.

Anthony


Anthony,

Good feedback...  especially as I am now encouraging peple to design in the area of ... medicine, space travel... etc... one might gett the impression one must have an earth-shattering impact to succeed.

I used to talk about BART (San Francisco’s Bay Area Rapid Transit) and perturbility rate in engineering... how something can only be 20% new, or it is too new to work. So engineers are careful not to design too much into a project, otherwise the unforeseen interactions of the new technologies will overwhelm the management of the resulting project.

This tendency to be careful and incremental has been derided as “planned obsolesence” in such areas as automodile manufacturing, when in fact it is only prudence. Note how people are careful in adopting a new generation computer or especially software.

So one theme I should stress more is “new, but not too new... “  It does not take much to get new enough... The Glass Babiesyou mention are a good example...  it's a shape we've all seen in glassware, what looks different is the thickness and color...  and yes, Waechtersbach came out with a line of mugs in the 70's that took the world by storm... color and glaze were the thing, now they are quite staid.

Off the shelf is the kiss of death.  Design does not take much...  so get designing... I should stress that again.