ETD: 835 New business how-to; New Wave of Online
Entrepreneurs; Luxury Consumer Spending Declines
E-Tailer's Digest
etd_post at gapent.com
Tue Nov 16 12:37:50 GMT 2004
E-Tailer's Digest --- Everything for the Retailer
Issue #0835 November 16, 2004
George Matyjewicz, Moderator mailto:georgem at gapent.com
Published by: GAP Enterprises, Ltd. http://www.etailersdigest.com
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CONTENTS
[1] Greetings
[2] New business how-to
[3] New Wave of Online Entrepreneurs
[4] Luxury Consumer Spending Declines
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[1] Greetings.
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Hi All:
We're looking at launching a new venture, and it occurred to me that many
list members try the same thing, or seek help in how to start a
business. So, I thought we could come up with thoughts on how to start or
expand a business. Let's get your input.
Along the same lines, UPI reports the increase in auction sales with
entrepreneurs attempting new ventures. What do you think?
For those of us who sell to the luxury market, Pam Danziger, the guru of
luxury marketing, reports that sales were down the third quarter of 2004,
but are expected to rebound in Q4.
39 days until Christmas - less than 6 weeks! And 10 days until Black
Friday. Are you ready? What are you doing this year to increase business?
Tell us about your business which will remain for posterity at
our "Members: Who Are You?" site. Anything to do with the retail world,
i.e., supplier, retailer, consulting,
etc. http://etailersdigest.com/resources/members/index.htm And we have a
form there for you to tell us about you. As I said when I first proposed
this idea, we have "known" each other for a long time, yet we often don't
know anything about each other. So, tell us who you are and what you do.
Now, let's get to everything for the retailer.
Sincerely
George Matyjewicz, PhD
Chief Global Strategist, GAP Enterprises, Ltd.
mailto:georgem at gapent.com
http://www.etailersdigest.com
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[2] New business how-to
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I came up with a brilliant idea for a new product, guaranteed to have
global appeal, and a consumable item, which guarantees ongoing sales. It
came quite by accident, and takes into account a different use for an
existing product.
It occurred to me that we all often come across such ideas. Then, when
that product comes to market, we say "I knew I should have...." Well I
won't let this one go.
So, in the spirit of learning, let's identify what needs to be done to
start a new venture:
A. Business Research
B. Legal and Product Protection
C. Sourcing Suppliers
D. Marketing
E. Fulfillment
F. Warranty
G. Accounting
So, let's try an exercise to see what we need to do. I've setup many
ventures in the past, so before I offer my solutions, I'd like to hear from
you. Are there other major areas to consider? What are the details under
each?
George
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[3] New Wave of Online Entrepreneurs
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"Selling items on an online auction site is a low-cost way to test your
skills as an entrepreneur," Tony Lee, editor-in-chief of
StartUpJournal.com, the Wall Street Journal's site for small businesses,
said. "Selling online through eBay, Amazon.com and others can fill an
income gap."
The technology that powers the online auctions at eBay.com -- and other
online sites -- actually is creating a new way of life for many. Online
entrepreneurs are springing up once again, as if it were the boom era of
the 1990s, this time selling goods nationally with the same relaxed air of
an old fashioned flea market.
Entrepreneurial Skills
"Selling items on an online auction site is a low-cost way to test your
skills as an entrepreneur," Tony Lee, editor-in-chief of
StartUpJournal.com, the Wall Street Journal's site for small businesses,
told UPI's The Web in a statement. "Selling online through eBay,
Amazon.com and others can fill an income gap. Online marketplaces have
made it easy for new entrepreneurs to get started with minimal investments."
"There are a lot of breakthroughs," Joseph T. Sinclair, author of "eBay
Business: The Smart Way" (American Management Association Books), told
UPI's The Web.
Sinclair, who lives in the San Francisco bay area, said there are more than
50 million registered users on eBay alone but they are making moves to
"double" their presence online by redeploying the raw data they use to set
up their digital ads on eBay.
These new entrepreneurs, however, don't just put out an online shingle and
do business, Sinclair said. They have to learn some HTML and Web design to
make their site look good, they need to pick the best type of auction for
each set of goods they sell, and they need to experiment with ad copy to
see what sells, he added. They also have to guard against credit card fraud.
As in any business, however, there are problems online. Earlier this week,
New York Attorney General Eliot Spitzer announced that eight eBay sellers
were ordered to pay about $90,000 in restitution to 120 customers, stemming
from three cases in state court in New York. The sellers were accused of
making false bids and driving up the auction price of their goods,
including a 1999 Jeep Cherokee sports utility vehicle that was sold online.
Details at....
http://ecommercetimes.com/story/38035.html
© 2004 United Press International. All rights reserved.
© 2004 ECT News Network. All rights reserved.
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[4] Luxury Consumer Spending Declines
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Luxury consumers’ confidence in the economy took a hit in the third
quarter. After rising to 102.7 in the second quarter, the Luxury
Consumption Index declined to 96.0, down 6.7 points, according to Unity
Marketing’s latest tracking study of the luxury market.
The Luxury Consumption Index measures the luxury consumers’ feelings and
attitudes about their financial well-being. The majority of luxury
consumers (53 percent) felt their financial position was the same and no
better than during the previous three months. Further, nearly 40 percent
said the country as a whole was less well off in the third quarter.
The market for luxury goods and services is driven by consumers’ feelings,
certainly not needs.Luxury consumers (average income $136.5k) with their
surfeit of material wealth have no pressing need to go shopping when things
don't look promising. Luxury consumers are in a unique position to wait it
out when times are tough and that is just what they did in the third quarter.
Luxury Spending Drops in 3Q2004 but Predicted to Bounce Back in 4Q2004
In the third quarter only 19 percent of luxury consumers said they spent
more on luxuries, as compared to 35 percent who spent more freely in the
second quarter. The link between consumer confidence and spending among
affluents was marked by a 35 percent drop in average spending.
Thomas Bodenberg, economic forecaster for Unity Marketing and former
Conference Board executive, comments, “The period from July through
September was one of weakness in the stock market, as tracked by the Dow
Jones Industrial Average. Combine the flagging stock market with the
political uncertainties from the presidential campaign and the affluent
consumers simply decided to sit out the third quarter in terms of luxury
shopping. However, the rapid rise in the stock market following the
election predicts a strong fourth quarter for the luxury market.”
This benchmark index of luxury buyers is calculated form a sample of over
700 upper-income households throughout the United States. This panel, with
household incomes over $75,000 (one-third $150,000 or more) represents one
of the largest longitudinal studies of high-end luxury consumption of goods
and services. Panelists reported purchasing behavior of luxury goods and
services over the past three months, as well as attitudinal and expectation
data about luxury brands and categories, their households and the health of
the economy in general.
Specifics included in Unity Marketing’s Luxury Tracking Study are purchase
incidence and spending, where purchases were made and expectations of
future purchases on:
o Home Luxuries, such as electronics and photography equipment; linens and
bedding; kitchenware, cookware and housewares; furniture, lamps and
lighting and floor coverings and rugs; outdoor, lawn, patio and garden;
kitchen appliances, bath and building products; home decorating fabrics,
window and wall coverings; tabletop, dinnerware, flatware, servingware,
figurines and decorative accents; and art and antiques.
o Personal Luxuries, such as clothes and apparel; fragrances, cosmetics
and beauty products; fashion accessories; automobiles and jewelry and watches.
o Experiential Luxuries, such as fine dining; luxury travel;
entertainment; and spa, beauty treatments and cosmetic surgery.
Pam Danziger, President
Unity Marketing 717-336-1600
and author of Why People Buy Things They Don't Need
new book "Let Them Eat Cake: Marketing Luxury to the Masses — as well as
the Classes"
Unity Marketing publishes its Luxury Tracking Study quarterly with the next
due in January 2005.
For more information, visit
http://www.unitymarketingonline.com/reports2/luxury/luxury3.html
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