Corporate companies pull out of America leaving gaps small business owners can Fill!

[kimoonyx]

Hi Guys and Gals,

I am just back from another trip to Asia, Hong Kong and the Philippines to be exact. I noticed that there were many brands that were all but extinct in America that are staples overseas and I just wanted to comment. There are many examples but I wanted to mention a few obscure ones that I feel lend themselves to small business stepping in. I plan on launching a few stores based on my trip and am not going to give away "ALL" of the special sauce that I am cooking up but I will name a few. Von-Dutch... Von Dutch is a machine in Asia right now. I am not talking about the mesh trucker hat. In Asia the brand is developed to an entire exciting line of clothing that if it were offered in the US would I am sure garner a huge following. However, the brand is limited to a few shops in LA, Seattle and New York, and the website is bare. It feels like Von Dutch has purposefully left the US But the clothes they are making elsewhere are selling like mad. I am telling you, some really awesome designs... Shops that are emmersive and offer a full line of awesome clothing and accessories.

I sent a letter to the CEO of Von Dutch (which impressively was responded to quickly) and was told the brand would maybe try expansion again in the US in the future.. I followed up specifically asking if distribution of what I saw in Asia could be made available if I were interested in offering the brand in a retail shop of my own. The answer is pending... but there are other brands that I had totally forgotten about that I contacted after seeing them in action in Asia, and I am building orders now with their distributors to import items to the US that I have no doubt will sell. If these companies were focusing on the US and opening these branded specialty stores at the level I see them in Asia, here in America perhaps, this opportunity would not exist.

I dont know why so many of our brands have left, there are quite a few across many industries. I am sure there will be a few responses to this article that suggest they are brands that Americans didn't respond to so they tried their hand elsewhere. I am going to say now that it is not the case.

I used Von Dutch to illustrate this point because that brand disappeared from our market in its prime. I am itching to mention a couple of others but I cant yet :)

I strongly advise small business owners to take a trip or two over seas to see what works in other markets and why. I learn so much when I travel and I implement many new Ideas each time I return home.

Best of luck to you small business owners... We are the true dreamers, and risk takers. Keep forging your Path!

[Harold Mansfield]

I dont know why so many of our brands have left, there are quite a few across many industries. I am sure there will be a few responses to this article that suggest they are brands that Americans didn't respond to so they tried their hand elsewhere. <em>I am going to say now that it is not the case. </em>

Why do you say this? I'd love to hear more about your opinion and observations on this.

We can all name more than a few examples of products and even artists that are bigger overseas than they are in the U.S. What insight do you have that says it has nothing to do with that? My understanding is that it's a combination of marketing, cultural differences, competition, timing and luck.

Speaking of Von Dutch, I was working on the Las Vegas strip at one of the hottest hotels, with the hottest nightclub at the time Von Dutch broke national..after a few celebrities like Paris Hilton were photographed wearing the hats and t-shirts. I remember Von Dutch at the clothing conventions and the hotel I worked at hosted Von Dutch parties. It lasted for a while and then fizzled. One year they were the talk of the convention...the next they were barely noticeable. I watched new brands do this for years at the Las Vegas trade shows and subsequent parties. Tommy Hilfiger, Ecko, Southpole, Sean John, and so on.

My observation of that brand is that their initial marketing in the US was jumping on trendy and they didn't promote anything sustainable.

There was a slight move to their jeans, but as soon as young Hollywood moved on, so did America and they weren't established enough to continue at that pace without that constant "Hollywood" promotion. I didn't see them in GQ, Vogue or any other major fashion magazines. They didn't get involved in anything that would continue to promote their brand and more importantly their line outside of t-shirts, hats and jeans.

They also were not distributed broadly, nor did I see them make any deals with any retailers except for maybe Macy's. So in my opinion, what happened to them here seemed to be more of a symptom of their marketing not maturing fast enough. Now they may have adjusted and corrected that since, but America is fickle. Once something looses appeal or seems stagnant, we move on because very few things are so new that we get instantly enthralled with it. We are used to being marketed to constantly to "keep up with the Jones".

On the flip side, this new consumerism in Asia, particularly China, has been sucking up pretty much anything American trendy and fashion for a few years now. This is new for them and they didn't go through a Great Recession. They've been buying steadily for about 10 years now. So I can see why so many designers are finding a new home there. Their economy has been booming for some time and for the first time ever, women are a large part of the professional workforce and they have money now that they want to spend on fashion.

So I would argue that their success overseas is a combination of things that created a perfect storm for them and other designers. They already had street cred in America, and Chinese women outside of Hong Kong are empowered for the first time in history to spend on such things.

Besides, you can only be the "Hot new thing" for so long. Almost anyone can get a shot with the right moves and little money behind them. But once that wears off, then what? Are you poised to use that momentun to continue growing, or do you sit back and bask in the glow of your celebrity and money and do nothing to prepare for the next step?

I'm no economist, nor a fashion expert, but that's what I see.