News Groups:
|
|
China Trade Barriers
The United States and China have recently engaged in heated exchanges regarding fair trade.
The debate has been escalating and has already resulted in new barriers to trade against China.
While the crux of the disagreement has been the textile industry, the effects could very well
extend to our industry soon. Please be aware of this development and follow its progress in the
news. The erection of new quota restrictions, import tariffs, and any currency adjustments could
drastically affect the prices and availability of Chinese goods in our market.
|
|
|
|
Retail Consolidation
Large scale retailers have busily been joining forces this quarter. Sears and Kmart finalized their
union as did Federated Department Stores and May Department Stores. Furthermore, Neiman Marcus Group
was recently acquired by a private equity group and Sak’s Inc recently announced plans to sell off
its mid-market franchises. How does this news affect jewelry designers? If you are selling to any
of these affected chains you will likely see tougher contract negotiations in the near future.
Stores are looking to gain purchasing power and efficiency through these mergers because of the
pressures on individual market shares. The market appears to be shifting away from proliferate brick
and mortar mass merchants. Shopping trends are moving towards both internet businesses and smaller
boutiques that cater to customers with personalized service and niche styles. Luxury businesses are
hotter than ever. This fact could work to the benefit of designers trying to get into franchise
sales. Large chains may start shopping for fresh, original talents to spice up their broad market
selections. Keep these trends in mind as you consider your long and short term business strategies
this year.
|
|
