March 2012 Issue

We just returned from Ambiente in Germany, where we were able to see housewares products from all over the world. While some of the prod- ucts we saw there may not be destined for the U.S. market, it helps us to identify trends

in design and manufacturing that often shape trends in our market in the years to come. We also look forward to this show because it allows us to spend quality time with our present and future partners who are not quite as busy as

they would be at a show on their home turf. I often wonder as I walk the aisles why more of the products we see don’t have a presence in our market. The answer, I assume, is that the companies are not willing to make the large investment to create the brand awareness necessary to be successful in our competitive market. Occasionally, we see manufacturers dabble and test the waters, but they quickly learn that brand is everything.

I was intrigued to hear more than one story from well-known suppliers of branded product that they had made some bold moves to protect the integrity of their brand with retailers who were not honoring company pricing policies. In some cases, they were pulling in the reins of some of their e-commerce trading partners who were exploiting their cost advantage to undercut the MAP standards and devalue the brand. There were also instances of major retailers offering occasional uni- form sales pricing that enabled items to be purchased below the accepted standard. I was pleasantly surprised that these suppliers were willing to turn their backs on a substantial amount of business because it was having a negative impact on the rest of their channel partners. The companies that are willing to take a short-term sales hit for the benefit of long- term growth truly understand the power of a consistent brand strategy and identity. In order for suppliers to continue to

make these difficult financial decisions, I sincerely hope that their current channel partners reward them with greater commitment to the brand.

I know that e-commerce sales have grown substantially over the years, and have become an important outlet for specialty brands. The explosive growth has also made it difficult for companies to monitor what is happening with their brand. Fortunately, many strong e- commerce retailers have emerged that do respect the sensitive nature of price. We look forward to honoring one such successful Internet merchant, Cutlery and More, this month with the first gia award for a pure Internet retailer. This company is an outstanding e-tailer that proves that online retailing can provide value to its customers without discount- ing price.

In this issue, we continue to promote the health story, by reminding you of the purest play of all ... juicing. There are endless studies to suggest that pure juice has many health benefits in addi- tion to being an important element of a healthy diet. The current generation of juicers is better than ever at extracting the maximum amount of juice from fruit and vegetable pulp. If you don’t current- ly feature one of the new-generation machines, I encourage you to consider these products to add to your healthy assortment.