Something Rotten At Apple?

Look, I am an Apple fan – I really do like my iPhone and have stuck with the “4” for a couple of years. What I do have some issues with is the company itself and the fact that over the years we have read much about the mistreatment of workers at their Foxconn plant in China.

We reported over a year ago about worker suicides at the plant because of poor conditions and treatment of the workers. Underpaid and overworked was the theme aand Apple promised to do something about it – and they did by increasing salaries for the workers which were higher than other Chinese factories. It still begs the point that while they threw a few dollars at the workers to slightly increase their pay the monotony of the job still at low pay was an issue.

But things quieted down as we figured it would – Apple has a way to seemingly control their bad press. Until recently when because of high demand for the new iPhone the workers were pushed to their limits of production and riots ensued at the Foxconn factory. Last week it was also reported that some laborers being used to assemble iPhones were as young as 14-years-old. What child labor laws?

Well, here is the issue that I have that may spark some commentary. Apple is not the only company outsourcing so they can make their products as cheaply as possible and sell it for as much as possible. What do you think it costs over in China to make our $600 iPhone? The margins on these electronics is incredible and THESE are the types of manufacturing jobs that should be brought back to the USA. Not assembling dollar store merchandise that NEEDS to be made super cheaply – but items like what Apple sells handbags sells. I read today that Coach is considering moving their operations out of China because the wages are too high! The average factory worker makes less than $200 a MONTH! A typical Coach Handbag can sell for $1500 or more. How many handbags can a laborer make in an entire month?

GREED is what it is all about. How come when the politicians are squawking about outsourcing aand how America’s losing jobs they are not citing companies like Apple or Coach or the others who profit by selling millions of dollars of goods to good old Americans. These high end brands can more readily afford to move jobs back to the USA because they have the margins. It really just comes around to making money- and as much of it as possible. I have nothing against making money and the buy low, sell high theory. It annoys me when both Presidential candy about bringing home the jobs from overseas and do not cite anything specific.

Obviously Americans are not going to work for $50 a week in a factory – but there was a time pre-China, pre-Vietnam and pre-Indonesia where American factories did hire Americans and paid a fair wage for their services. Outsourcing is not going away and until we figure out what kind of jobs should return to America it’s a great deal of rhetoric.

What do you think?

NYC Premiere of Glam Fairy – Season Two

Bling, accessories and cosmetics are big in retailing and getting bigger every season. A testament to the cosmetics and beauty industry is the show Glam Fairy, which became an instant Style Network TV hit last year when Sharie Manon (from Jerseylicious fame) developed the show.

An award winning hairstylist and creative director with over 20 years in the industry, Shari celebrated the show’s second season at a gala event in New York City October 7th. The event featured celebrities and well-wishers as the stars of the show were welcomed with red carpet treatment prior to viewing season two’s first episode downstairs at the venue in a special VIP room.

Forum Publishing Company director Martin Stevens was delighted to meet Sharie and her newest associate Victoria Doroshenko (pictured). With the success of Sharie’s program and the massive following she has in the beauty industry it is apparent that the beauty/hair care categories will remain extremely strong in the marketplace.

Fashion on Wheels

The StyleLiner, the worlds first treasure chest on wheels, is a mobile style gallery offering limited pieces of extraordinary pieces hand-picked by The StyleLiner’s creator Joey Wolffer.

What started as a twenty-foot potato chip truck has been completely revamped to feel as though you have just stepped into a chic boutique. However, what you will find is not your typical shop – instead you will find a stylish yet inviting retreat in which you will surely want to take everything you find home with you. The accessories aboard the StyleLiner are unique, one-of-a-kind pieces that Joey has traveled the world for. They are the type of accessories that will have people stopping you on the street asking where you got it.

In addition to small and specializing in private home visits, The StyleLiner, which also includes some of Joey’s own designs, is becoming a main stay in New York City and the Hamptons during the summer and Palm Beach, Florida during the winter.

This is quite a unique idea but I wonder if any brick and mortar retailers are concerned about this type of business. Share your thoughts with our readers.

The Ultimate China Counterfeiting — A Fake Bank!

Well, just when you thought you had seen it all with the fake handbags, purses, clothing, an entire new level of fakery erupts! A rice trader named Lin Chunping invented a U.S. bank and claimed he bought it.

This little-known businessman shot to fame when Chinese state media reported that he had taken over the Delaware based Atlantic Bank. His hometown praised him as a successful “hero” and state media called his business acumen “legendary.”

The reality is not only did he not buy Atlantic Bank for $60 million as he claimed, but there is no Atlantic Bank in the state of Delaware.

The 41-year-old has been arrested for fraud but illustrates how widespread counterfeiting and fakes have become in China.

Last year in the city of Kunming officials found five fake Apple stores were opened, complete replicas of their legitimate counterparts down to the spiral staircases and the staff dressed in blue t-shirts!

Experts point to the overall lack of scruples and the need to be hyper-competitive to succeed in the overpopulated society to an ancient sage who countenanced lying to achieve a higher power.

What do you think?

Insuring The Success of Your Business

You cannot fail when you give more than 100 percent. In whatever endeavour you are doing, always give more than one hundred percent. You will find that whenever you do this, your rewards will always be far greater than the extra effort you expended. Some people refer to this success concept as going the extra mile. What it means is that you need to give people more than they expect.

If you are working in your business and want to see it grow, the surest way to achieve it is by giving more. Customers are impressed when they discover a business that is innovative and gives them more than what they expected. Look for better and more efficient ways to do things. For example, make it easy to order from your site. Reduce the number of clicks to get to relevant information about your product or the order form.

Don’t be afraid of giving information for free. This is a crucial step in the online world to building credibility and trust. A free report or a sample (or extract) from your information product will enable your potential customer to determine whether what you are offering is what they are looking for.

Always include some free (but valuable) bonuses with every product ordered. This also promotes the perception of getting more than what was paid for. In some cases, I have purchased products on the net because the free bonuses interested me more than the main product.

Ensure that your product delivery is quick and efficient. If you sell an information product, ensure that the customer can download it as soon as they have paid for it. Provide alternative download formats and locations so that all needs are catered for. Follow up a couple of days later to ensure they received their products without problems. If they had problems, resolve them straight away and provide an additional bonus to compensate for their inconvenience.

If your product needs to be shipped, provide your customer with alternative shipping methods. You customer can then choose how quickly their order is to be delivered and they can pay for the faster alternatives. Again, follow up to ensure they received their order on time and without problems.

Go the extra mile with customer complaints. This is an excellent opportunity to turn a disgruntled buyer into a life long supporter of your business. Acknowledge problems and resolve them quickly. Thank the customer for making you aware of them. You can be sure that if one customer has had a problem, then others have also had the same problem too.

For those working directly with customers, always give them more than they expect and courteous attention to the customers’ requirements are all that is required. In the online world, prompt attention to email and courteous responses will boost your reputation and your sales. Spend the time to determine the customers’ need and then you will be in a position to satisfy it. I stress to you be sure to concentrate on satisfying the customers need.

Have you ever been into a store and everyone is glum and does not want to serve you? Do you feel inclined to buy from them? No. But go into a store where they seem glad to see you and willing to help you and you feel far more like buying their products. The same applies to the online world. A well-designed web site with easy access to information will yield greater results. Make your web site user friendly!

Don’t sit around waiting for people to buy. Ensure that your marketing communications ask for the order! Encourage responses through offering a strong guarantee. When someone makes a claim under your guarantee, honour it. This is part of the trust building process.

Make the effort to develop additional skills in your spare time. Studying about leadership or how to motivate people will always be of help in building your business. There is always something new to be learnt when it comes to dealing with people and influencing them to buy.

However, never lose sight of your most important task right now – keeping your existing customers satisfied.

AMAZON ATTACKS BRICK & MORTAR STORES!

The mega-retailer Amazon.com is upping the ante against brick and mortar retailers by enticing shoppers to compare prices using their mobile phones while shopping at a rival store. The company is offering a 5% discount to users who try its Price Check mobile app that lets in-store shoppers scan product bar codes to check Amazon’s online prices.

Talk about killing traditional retailing! This brings us to stores like Best Buy, who had a miserable last quarter of profits. A lot of shoppers have been using Best Buy as a showroom to see and then go online to make purchases elsewhere. No retailer can survive by being a showroom and not making sales.

What do you think? Share with us.

OCCUPY THIS!

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Well, I don’t know about you but I have had it to here with the Occupy Wall Street nonsense! I think that everyone is frustrated with greed and the government and I think that if there is well organized demonstration that can deliver a clear message I am in support of it. Of course, the Occupy protests have come up short on substance.

So, you’re mad at Wall Street! Where do we begin? There is so much that people can and should be angry about. The promise of change from Obama that really didn’t show any change for the better. Yes, things did change…they got worse! Bank bailouts, corporate bail outs, all upsetting for sure. But, let’s analyze things just a bit…

The Occupy group is extremely selective in who they have been targeting. Corporations are not really the only problem that our country has. And, are they even a problem at all? Most working people work FOR the corporations, whom without they would join the ranks of the Occupiers and be unemployed! Banks – yes, they suck. Too big to fail and all that. Well, these mandates for the bailouts came from the top down. But the Occupiers are not protesting Obama and his current white house, they are going after the beneficiaries of Obama’s mandates.

Let us go one step further, and this is really what my point is in this article. If you have a message I think groups like Occupy are important to raise public awareness. But their message has been diluted and misapplied. Maybe instead of protesting corporations who actually produce something that benefits the working class — maybe they should attack Hollywood actors and TV sitcom stars who reap more profits (all for themself) than the head of a business corporation. Sure, let’s pay the idiot Ashton Kutcher 3/4 of a million dollars weekly for his craft. Maybe this is $20 million a year — and he has produced dribble.

Maybe the Occupiers need to protect the sports world where athletes are easily making $20 million dollar contracts for playing basketball or baseball. Again, they provide no benefit to the working class, except the enjoyment of paying $150 a ticket to sit in the bleachers at Yankee Stadium. I think we have larger problems than Wall Street and the corporations.

In closing, maybe here’s something else people should think about — these indignants with Occupy have caused a massive amount of disruptions to the small businesses around the areas that they hold their protests in. They have also caused MILLIONS upon millions of dollars spent on police work while they march up and down. These millions of dollars are being paid by the 99% – it is coming right out of the very pockets they profess to care about.

Time to stop the bull and focus on directing the anger and protests where they belong. There is more than corporate CEO’s in that top 1% they squawk about and it’s time they start picketing them as well.

The comments in this article are reflecting the writer only (Martin Stevens) and not the readership or advertisers of the magazine, Retailers Forum.

Here’s What Grinds My Gears…

The news for the retail industry has been discouraging since prior to last Christmas season. We read now that many established stores will be closing down this year. I read that it is estimated that over 40,000 retail stores will close this year. Now, some of them deserve to close as they were mismanaged and honestly I never understood how they even stayed around in the first place.

Also, remember when you read the doom and gloom news that stores like Steve & Barry’s and Mervyn’s have closed down through bankruptcy that perhaps this was a pre-meditated move. I recently read an article about the founder of Mervyn’s who sold the chain to an investment group thinking that they would carry on the name and promote the business. The article showed that the investors seemed more interested in the sum of its parts (real estate, real estate, real estate!) Same with Steve & Barry’s? Also saw National Wholesale Liquidators decided to liquidate themselves stating the tough economy hurt them. Hurt them? They sell CLOSEOUTS for goodness sake. The dollar and discounters are doing great when times get tough. Instead, I think they found a way out of their unsuccessful locations and a way to STIFF their suppliers. It was really interesting how some of the family members of the chain BOUGHT BACK their own stores in the bankruptcy auctions! They cherry-picked the profitable locations and cleared the liabilities to get a fresh start.

As a small business we’re not going to get the investor speculators to throw money at us. If we independents don’t step up and work harder and smarter we only end up going out of business. No fanfare. No front page in the Times or on Bloomberg’s news site. We simply have a clearance liquidation sale where people in the community who never bothered to stop into the store come in and feign sympathy as they buy for 75% off the dollar. My favorite line at these closing sales are “Oh, what a great store, it’s too bad.” This, coming from people who never bothered to stop in. And another local small store hits the dust. More community blight as downtown areas turn to ghost towns and property values dwindle down.

The small business is the backbone of our country and our economy. I can only hope that the new administration realizes this and steps up to assist our struggling businesses by emphasizing the need for communities to embrace their small businesses. These are your neighbors, sharing their love and concern for your community. The big box stores don’t care – they will take your money and put NOTHING back, sending their profits to their headquarters eons away from your hometown.

As small businesses we need to PROMOTE LOCAL SHOPPING with signs like “Support Your Local Merchants” and programs to encourage shoppers to stay local. We’re all in this together, as neighbors.

Well, that’s what Grinding My Gears this week!

HAVE WE BOTTOMED OUT ON THIS RECESSION YET?

Being in the publishing business and a very active reader (I read between 5-10 magazines and newspapers a day), there is a mixed sentiment on the recession aand if we had hit bottom yet. Having been in the wholesale and retail industry since 1981 I have weathered a few storms in my time.

The pundits had originally said that we had not bottomed out yet and there might still be a while to do. That was a few months ago. There has been a lot more positive news lately and we have seen it reflected in slowing unemployment numbers as well as a little rallying in the stock market.

I think that we may have seen the worst and according to many turnarounds I have been reading lately it is estimated that the changes will start by the third quarter. The latest bank stress tests were encouraging and set the stock market to a level that wiped out this year’s loss figures. We also just got word that April retail sales figures were better than expected.

It looks like the brakes are on and we are making headway in improving our economy. Consumer polls are showing that there is a bit more confidence in the marketplace and they are seeing a light at the end of the tunnel. Being that a great part of this recession was the consumer halting their spending, this perspective is important.

I see from the calls we are getting that there is more business being conducted in the wholesale merchandise industry than has been during the last quarter. Trade show attendance is rising slightly and there is more confidence by our fellow businesspeople. When people start spending again we will be more secure in feeling that the worst is over —and there has been a little spending recently.

We’d like you to share your opinions. Do you feel more confident that things are on the upswing? What part of the country are you from and how are you finding local business? Take a minute to share with us.

VIRTUAL SPENDING… WHAT IS THIS WORLD COMING TO?

The economy is starting to chug along again, although lately the stock market has had such big ups and downs. Many fellow retailers have been having a hard time selling merchandise at their stores and are looking forward to a better year mid-year 2010. When I say retailers I mean real stores with real merchandise that buyers can touch and feel.

WHY do I expound on “real” merchandise you ask? Well, let me share this with you and maybe you’ll be as crazed as I was after I heard this…

Social games have become a new trend on the internet. This new industry is sucking in staggering amounts of money. In one recent 30-day span, Playfish, a creator of social games sold for $400 million. Playdom, another game company raised $43 million in financing, while another, Zynga raised $180 million. Many are equating this trend to something larger than the dot com trend back in the 90’s.

Companies like Playfish can develop a game for under $100,000 and complete it in just a few weeks. These virtual games don’t even have to fight for shelf space. What makes me insane is where the bulk of the social-gaming revenue comes from: the sale of virtual goods. The virtual goods are digital stuff that doesn’t actually exist.

While the games are free, users have countless opportunities to buy stuff: Playfish says it sells 60 million items a day, from $14 engagement rings to bacon sandwiches that cost a few cents. The goodies make it easier to advance in the game.

Imagine that…people are shopping and they are spending… ON MAKE-BELIEVE MERCHANDISE! How sad is that? Well, sad to the tune of $75 million in sales for 2009 that could double this year! For fake bacon sandwiches and engagement rings for a game!!

Is it just me? Have I gone insane? How tempting would it be for us retailers to post signs in our stores offering “virtual” jewelry — just $29.95 for a pretend ring! And here we have these venture capitalists chasing these gaming companies to throw money into them. Then you have the players willing to spend real dollars for birthday parties for a digital pussycat! Can you say $75 million? I think we’re in the wrong business!

Have you heard of this? Are you a gamer? A retailer? Blog with me and let me know what you think.