TGF&A Winter 2010

TGFA

Canada’s Voice for the Luggage, Leathergoods, Handbags and Accessories Industry Winter 2010 • Vol. 1 Number 3

Travel Goods, Fashion & Accessories Magazine Handbags: The ‘It Thing’ this Spring Surviving 20 Deadly Selling Sins Changes to Canadian Accounting & Taxation Laws Hiring, Retaining and Compensating Quality Staff Trade Show Success

Hot Products for 2010

What’s Going to Fly off the Shelf this Spring?

PM 40063056

Buyers: Look inside for your

LLHA Show Badge!

Visit our brand new website:

www.llhashow.com

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contents 22

FEATURES 8 Product Feature: Handbags The ‘It Thing’ this Spring 16 Cover Story: Hot Products for 2010 What's Going to Fly off the Shelf this Spring?

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22 Accounting and Taxation Report: Changes to Accounting and Taxation in Canada

DEPARTMENTS 6 A Word Before 14 LLHA News 24 Marketing: Surviving 20 Deadly Selling Sins 26 Business Centre: It's All About the People 28 On the Road: Trade Show Success 30 Industry News & Views

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Winter 2010 3

e ee A Word Before

Spring is just around the corner – and so is the LLHA Show!

In this, our third issue of Travel Goods, Fashion & Accessories Magazine, we have lots of great information, tips and tidbits to amuse and inform.

The cover story is all about hot new products for 2010 and we’ve got just about everything under the sun: locks, travel underwear, duffle bags, luggage sets, portable fans and the hottest handbags and wallets around.

If you are looking for some great eye-candy, then feast your eyes on the handbags product feature. Combined with the growing trend to more environmentally-friendly materials, manufacturers are certainly not sacrificing on style.

Thank you to everyone who contributed the terrific visuals, as well as their take on what’s hot this season.

Retail industry expert, Kevin Graff, shares some of his common sense solutions for successful selling in his article, “How to Survive 20 Deadly Selling Sins!” It’s well worth clipping this one out and passing it along to your sales staff.

Rena Granofsky, who is a pro at developing technological strategies for the retail industry, talks about using the latest and greatest in social media to hire and retain today’s employees. Tapping into the mindset of the “Net Generation”, investing in technology and using tools like Facebook and Twitter can help to seriously increase your bottom line.

Speaking of bottom lines, it will soon be tax time – and don’t we all look forward to that! With the launch of the HST in July, combined with new International Financial Reporting Standards which may affect your business, this special feature is worth a read just so you know all the facts and how they may relate to your company.

In On the Road, you might recognize the names of some industry suppliers who share their insights into successfully working a tradeshow. We’ve also got tips and tricks from experts who make it their business to help you maximize your results when working industry events.

In LLHA News, read about the latest bells and whistles being added to your LLHA Show including guest speaker and U.S. fashion industry guru Marshall Cohen of the NPD Group. He’ll be pulling out his crystal ball on Monday April 26th to let us all know what to expect in the industry in the months to come. Attending retailers who visit the New Product Showcase will also have the chance to cast their votes for the best new products in the show. Momentum is building as word spreads that the 2010 show is bigger, better, and will be serving a mean cappuccino in the Pearl Lounge, I’m told. And don’t forget that most of what you see in the pages ahead will be ready and waiting for you in the aisles in April!

I’ll see you at the LLHA Show from April 25th-27th. If you haven’t yet signed up for space, or you want to be part of the upcoming Spring issue of TGF&A, which is our special Show Edition, please contact show manager Richard Swayze at 416-512-8186 x 246 or richards@mediaedge.ca.

Enjoy.

Lucie Grys Editor 416-512-8186 ext. 301 lucieg@mediaedge.ca

TGFA

Travel Goods, Fashion & Accessories Magazine

Volume 1 Number 3 • Winter 2010 Publisher | Richard Swayze richards@mediaedge.ca 416.512.8186 ext. 246 Editor | Lucie Grys lucieg@mediaedge.ca 416.512.8186 ext. 301

Senior Graphic Designer | Annette Carlucci annettec@mediaedge.ca Production Manager | Rachel Selbie rachels@mediaedge.ca Circulation Manager | Cindy Younan circulation@mediaedge.ca Contributing Writers Andrew Coppolino Aedan Fowley Kevin Graff Rena Granofsky Editorial Advisory Board Christine Beben Pierre Calestagne Sandra Cassivi Catherine Genge Paul Hanley Ken Maxwell Perry Mogus Harry Restoukian Thelma Watts Jeff Williams Published by

President | Kevin Brown kevinb@mediaedge.ca Vice President | Chuck Nervick chuckn@mediaedge.ca 5255 Yonge St., Suite 1000 Toronto, Ontario M2N 6P4 Tel: 416.512.8186 Fax: 416.512.8344 www.mediaedge.ca Travel Goods, Fashion & Accessories is published four times a year by MediaEDGE Communications Inc. Subscription Rates (Canada) + gst: 1 year $39.50, 2 years $69.25, single copy $10.75.

For all subscription inquires or changes of address: circulation@mediaedge.ca 416.512.8186 ext. 232 Reprints: No part of this magazine may be reproduced in any form – print or electronic – without written permission from the publisher.

Requests for permission to reprint any portion of this magazine should be sent to richards@mediaedge.ca.

Copyright 2010.

Canada Post Canadian Publications Mail Sales Product Agreement No. 40063056 ISSN 1920-5368

6 Travel Goods, Fashion & Accessories Magazine

Official Publication of the LLHA Association of Canada and the LLHA Show.

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e ee Product Feature: Handbags

The ‘It Thing’ this Spring

By Lucie Grys In the days of June Cleaver, not all that long ago, when a woman stepped out for lunch or to run a few errands, her purse had to match her shoes. Today, handbags and purses are no less popular – but thankfully, the matching rule has gone by the wayside. That’s not to say that a woman’s handbag is any less important. Some experts even suggest that a handbag is like a life support system since a woman is prepared for just about every life eventuality from the contents within!

According to the US online site “The Purse Forum” or TPF, the self-proclaimed “#1 online social network for everything designer handbag related, and one of the Top 40 busiest forum communities worldwide”, statistics show that women buy at least three handbags a year. On average, women spend about $40 to $65 on a handbag and one in 10 are willing to part with $150 or more for a handbag. So what kind of bags are they spending their money on? One current trend in the handbag industry is the move to more eco-chic materials and manufacturing processes. While leather bags are still popular, the new man-made materials that look and feel like leather are also making the grade.

Eco is Chic and Faux is En Vogue Goldco is introducing an eco-paper handbag collection in a newspaper printed motif. “The collection is made in 10 0% high - densit y paper fiber; it’s strong, tear resistant, ultra light in weight and even water resistant,” says Joanne Leung.

Goldco’s eco-paper handbag embodies the eco-chic trend.

Trish Mclean of Ostba of Salzburg is launching a line called Wild Tulip. “We use 100% recycled leather belts, preferring to utilize leather destined for landfill rather than manufacturing new,” she says. All bags are sewn by hand, and by creating new-from-old handbags, no two bags are the same. “We are catering to a younger g e n e ratio n that d o e sn ' t n e e d to b e educated about the importance of caring for our environment. It’s a new movement which is instigated by a generation who ‘have-it’ and know that ‘having-it’ isn't the be-all-and-end-all of life, and who realize that there are other issues besides the big 'I' to consider,” she adds.

The new Wild Tulip line by Ostba of Salzburg is made by hand from repurposed materials.

Eva Fung at ESPE feels that, environmentally-friendly and vegan products are definitely one of the latest trends. “In our vegan collection, the materials used are quintessential. We use polyurethane, a material that wears well in extreme environments — inspired by our all-too-familiar cold Canadian winters. Polyurethane can pass for leather due to the great resemblance and fine qualit y. One can feel the crackled details, suede like textures, and its soft leathery touch. Coupled with prices that are a tempting fraction of normal leather prices, the new vegan trend is just irresistible to consumers.”

ESPE carries a completely vegan line of handbags that look and feel like real leather.

8 Travel Goods, Fashion & Accessories Magazine

Product Feature: Handbags e ee

“Canadian women are demanding that the non-leather handbags look and feel more and more like real leather.”

New for Spring 2010 is this refreshing green bag from Hedgren’s SHAPED collection.

Gary Lazar, former Director of Operations for Hedgren, believes: “The trend we have seen is that the consumer has been moving towards branded handbags, while fabric and synthetic bags are becoming more desirable as compared to leather.” He adds, “Customers do seem to be savvier these days but the e m o t i o n a l fa c to r re m a i n s h i g h fo r handbags. People love them and it is partly because they are more personal than travel bags. They own several, for different outfits and to make different statements.”

Shape, Size and Sizzle Tasha Deane of Fashion Import says “We are seeing a wide mix of elements for handbag trends in 2010. One trend is patterns with a very global feel, the use of tribal prints, fringe, native beading and embroideries, as well as wovens and different dyeing techniques. A rock star theme is also present with a lot of embellishments, denim material, studs, crosses and sequins. The use of edgy gunmetal hardware and bold graphics completes the look for this trend. Lastly, the romantic theme has continued on with ruffles, pleats, muted tones of greys, lilacs and dusty pinks, as well as very delicate and feminine touches. Clutches, totes, cross-body bags and satchels have kept their momentum and will continue to be top selling items. Pleats, Bold and graphic prints stand out this season, such as in this unique wovens, embosses and graphics playful LeSportsac line from Fashion Import. are still strong as well.”

Non-leather bags from Sac O Grande refect the demand for the highest quality while being easier on the budget.

Non-leather bags are less expensive than leather handbags, allowing women to easily afford more than one bag per season” says Sandra Cassivi, Sales & Marketing at OutSourceAim Imports. “And when it comes to materials, if a non-leather handbag is to survive a Canadian winter, the quality of its fabric must be of the highest calibre. Many Canadian women are demanding that the non-leather handbags look and feel more and more like real leather.”

Winter 2010 9

e ee Product Feature: Handbags

“Chain and stud detail continues and smaller and medium sized bags are becoming more popular, says Carin Smiley, the Canadian distributor for Sondra Roberts/SR Squared. “Sueded/matte finish materials, shrunken and prewashed fabrics and exotic embossing and prints such as croco and python continue to be featured as well.�

The elegant Sondra Roberts/SR Squared handbags reveal the scaled down in size trend this season.

“Designers must always come up with innovative handbags, and think outside the box to keep the consumer interested.�

“Handbags have become the “de-facto� must-have accessory for today’s wellcoordinated fashionable woman.

Handbags today come in a wide range of sizes, shapes, textures and finishes.

Particular finishes such as semi-patents in multi-tone colorations have been popular recently and are continuing to evolve further by being trimmed with reptile-like textures,� says Joseph Strul of Joseph & Josef Imports. “Animal prints such as zebra, leopard and cow in monochromatic colours, as well as earth colours, accented by light metallic fibres have been continuing to draw interest. Braided and woven handles or straps, metal studs of various shapes and sizes, rhinestones, as well as metal handles, all continue to appeal. In addition to white, colours such as light purple, lime green, summer yellow, guava and sapphire blue should continue to do well this spring.�

The move towards interesting textures, shapes, patterns and tones is visible in Joseph & Josef Imports Carlo G line this spring.

“Perforated handbags, denim ha ndbags, ele ga nt lad y- like designs, clutches in huge varieties, double handles and detachable shoulder straps,â€? are all major trends for 2010, says N a n c y D hill o n at A u slin i, a subsidiary of parent company Home DĂŠcor Inc. Classic elegance reigns at Auslini.

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“We are seeing a rock influence for fall - with chains and rivets and big hardware to accessorize the bags.

Black always remains the dominant colour and we are also seeing soft leathers on big bags with details of animal prints such as croco,� says Mar y-A nn Keverian, Creative Director of Miss Mak Designs by H & V Leathergoods. “Having more than three to four bags in a wardrobe is now very common whereas a few years ago one bag for summer and one for winter was all you needed.

In order to keep this trend going, designers must always come up with innovative handbags and think purse with a croco strap by Miss Mak Designs o u ts i d e t h e b ox to ke e p t h e This shows the trend toward soft leathers with animal consumer interested.� print details.

Product Feature: Handbags e ee

Unisex bags are back in style this season such as this one from Jeanne Lottie Fashions.

Morty Stern at Point Zero Handbags & Accessories agrees that customers are looking for practicality. Stern feels that the latest industry trend caters to the young office crowd who want to be fashionable and professional.

“Customers are looking for practical bags that are sophisticated and easy to wear,” says Jane Ip, Owner and Designer of Jeanne Lottie Fashions. “Utility unisex bags are back in style and women have more choices. Prices have been driven down with fierce competition and there is a lot more originality and fewer copy cats.”

This casual PVC tote embodies the desire for practicality and is available from Point Zero Handbags & Accessories.

Lighten Up Dhillon at Auslini feels that, “This year, we will be looking for lighter bags, as we have seen the bigger bags for the last few years. Again, understated elegance due to the economic conditions, structured bags, classic designs, eco-friendly and leather,” will all be popular.

“We spent two years in manufacturing, developing ways of making our handbags lighter and yet big enough to be in on the cutting edge of the latest trends.”

Mandy Dent, Pinkstix’s Creative Director at Macy Fair concurs, “This year, handbag designers are trimming the fat on oversized handbags and reverting to a lighter, smaller, more classic silhouette.

We are streamlining our handbag design to have a more modern and understated elegance. This type of design could be perceived to be too “Plain Jane”, so we paid extra attention to details. We added funky details such as buckles and other metal hardware to a contemporary design, pleats and ribbon detail and stones and crystals for a sweet elegance, as well as large beads, flaps and patches for a modern boho look. For Spring 2010, we are introducing soft floral shades in rose, carnation pink, daisy yellow, dusty blue and French cream, set on plush vegan leather – a perfect blend of soft but not too fussy femininity and clean cut modernism.”

“This year, handbag designers are trimming the fat on oversized handbags and reverting to a lighter, smaller, more classic silhouette.”

It’s all in the details this year, like large beads to create this modern boho look by Macy Fair.

Winter 2010 11

e ee Product Feature: Handbags

Sabrina Roy has designed and recently launched two new lines at Bod & Christensen. She also feels that light weight handbags are the new trend.

“The weight of the average woman’s handbag, including its contents, has fallen from 7.69 pounds in 2007 to 3.31 pounds in 2009. A new British study conducted by Debenhams PLC has found that the weight of the handbags has dropped 57% over the past two years. The new technologies such as the iPhone and Blackberry have helped to lower the weight inside a handbag. The consumer wants comfort, function and style. This might be another reason why, aside from the look and fashion aspect of it, this past year you have noticed a return to exotic skins, such as snake or light weight skins such as calf. These materials are less heavy to begin with, therefore the overall weight of the bags is lighter. Also, as a designer, I try to come up with a different treatment of embellishments such as pleating, shirring, quilting, fringes, ruffles and material mixing instead of using many and/or heavy hardware or jewels,” she says.

A new line of men’s bags from Bod & Christensen meets a growing demand in this category.

Colour and Compartments

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12 Travel Goods, Fashion & Accessories Magazine

“Gone are the days of our grandmother’s handbag, where the tendencies were neutral colours only, rigid shapes, function and not fashion oriented. There is a high demand now for a variety of c o l o u r s i n n o n - l e a t h e r h a n d b a g s.

Handbags are the “it” accessory for many women and they often own several pieces to match their outfits. The fab colour for Spring 2010 is turquoise,” says Cassivi at OutSource Aim Imports.

While colour might be a big draw, a well-organized interior also tops the wish list. Women “look for convenient, well organized bags with interior and exterior compartments. They do not want the huge bottomless pit bags anymore,” says Roy at Bod & Christensen.

Janet Labarre of La Diva Handbags by Papillon International agrees. “T he consumer looks for a stylish everyday multi-functional handbag with interior and exterior zipper pockets, compartments and adjustable shoulder straps in a quality leather at a very affordable price. Also, women today are savvier when it comes to purchasing a handbag. Their purchase is based on a specific look they are after, needs and price.” she says.

Product Feature: Handbags e ee

Stylish everyday looks are popular this season, as seen in La Diva Handbags by Papillon.

Cabrelli’s latest statement pieces in PVC for Fall 2010.

“With easy access to electronic information, women today are informed and very discriminating in their choice of handbags.”

Penny-Wise vs “It” Shopping Smiley at Sondra Roberts notes, “Handbag popularity has dominated over the past few years. Due to the current economic situation, the handbag has been the “must have” accessory to compliment the woman’s existing wardrobe. We expect the trend to continue for the upcoming seasons. Faux leathers and synthetics have become extremely popular due to the improved look, feel, and quality of materials that resemble some of the finest Italian leathers, but at a fraction of the cost.”

Nathalie Perron, Product Manager at Cabrelli & Co. believes instead that, “the handbag buy is emotional; price is not the first guideline. Celebrities in magazines and the constant information on the Internet, give women a lot of information and images that they can be inspired by.”

“Design, price, status, quality and function are the factors when it comes to handbag purchases. There are several different categories of consumers when it comes to handbags. Those that look for the hottest and newest trends from the top designers; these customers crave the wow factor and the novelty of having something fresh from the runway. These fashionistas will always be carrying the “it bag” and have no limitations on spending. The following season they will invest in the newest “it bag” and the purchasing cycle continues,” says Deane at Fashion Import. She continues, “On the other hand, the other category of consumers buy what appeals to them personally. The buying pattern for these consumers is a mix of personal style with what is on trend that season. Finally there are those that only replace their handbag when their current one is beginning to become worn, and will buy something similar just to fit their needs.”

Melanie Sayan of Sayan Leathers says their “formula is a combination of function, comfort and design giving our customer a durable product with a great price value; we fulfill everyone’s needs.” George Uzunay of Sasha Canada sees new materials as the biggest change in handbags recently. He also agrees that, “usually women have bought what fits them, but lately, price point has become more important. As to consumer trends, he feels that “consumers seem to get more excited about the handbags they see in fashion magazines than on television and in consumer shows!”

Consumers look for durability and great looks; the name of the game at Sayan Leathers.

Sasha Canada’s latest “it” bag offering comes with a great price.

Joseph Strul of Joseph & Josef Imports sums it up, “With easy access to electronic information, women today are informed and very discriminating in their choice of handbags.” They therefore follow new and popular design offerings from their favourite brand labels with ease and can identify their purchases based on what is most appealing to them, and based on brand reliability experience. Women tend to chose bags that are reflective of their preferred texture, print and colour, while basing their choice of shape and design on the latest trends seen on television shows, by watching popular television and movie stars, and from fashion maga zine advertisements, courtesy of well known international designers. Ultimately, the final selection process depends on brand choice, unique details and shapes, re-enforced by functional attributes such as organizers, zippers, pockets and comfortable fit.

Colour selection and availability help narrow the choice and ultimately the final purchasing decision.”

Catering to women who want ‘the’ handbag for the season, regardless of price, or for more discriminating consumers who might be more conservative in their approach, consumers are buying conscientiously. Whether it’s price, environmentallyfriendly materials, proceeds donated to a humanitarian cause or how well interior space is organized in a handbag – or a combination of all factors, today’s buyer is discerning – and wants the bag they buy to be the ‘it’ bag for them. e Winter 2010 13

e ee LLHA News

President's Message Another year has passed by and on behalf of the LLHA Board, I would like to wish everyone a very successful Spring season!

With each year, we close a chapter and look forward to what we all hope are brighter times ahead.

As we continue on the slow and steady road to economic recovery we will experience a few speed bumps along the way, but I am convinced that although they may slow us down they will not stop the progress that we are experiencing.

Watching the many sporting events on TV recently, you can’t help but notice the many new products advertised. Our industry will also have many new, and I am sure, innovative products launching

this year to help encourage consumers to spend.

The extreme cold weather across the country may have been an annoyance, however for travel to warm weather destinations it is a boost! With every trip booked our industry has the opportunity to experience a benefit. What I am getting at here is that with every bit of bad news that we see or read about, there is always good news. If we dwell on the negatives our outlook will be negative.

If we remain positive in our outlook, it will rub off on others.

And speaking of positives, I am positive that this year’s version of the LLHA SHOW will be the best yet! Behind the scenes, the Board and MediaEDGE are working

Luggage, Leathergoods, Handbags and Accessories Association of Canada

extremely hard to bring many new, fresh ideas to the show. Let’s continue talking it up with retailers! The show will be here before we know it, and for it to be the success that we want it to be, we need to encourage ALL retailers to attend!

Attitude is everything! Keep it positive and pass it on!

I know that the people of British Columbia and Vancouver have done the country proud in welcoming the world to the Winter Olympics. As we watched the torch run come through our communities we felt the excitement growing and a true sense of pride! I want to take this opportunity as a proud Canadian to say WELL DONE CANADA!

Paul Hanley, LLHA President

(866) 872-2420 Fax: (519) 624-6408 info@llha.ca • www.llha.ca

ATTENTION RETAILERS: LOOK FOR YOUR 2010 SHOW BADGE inside THIS ISSUE! Just bring it to Show Registration pick up your badge holder.

Badge corrections can be made on-site at Show Registration. Enjoy the show!

NEED MORE INFO, OR WANT TO PRE-REGISTER ADDITIONAL STAFF? Visit our brand new Show Website and register on-line: www.LLHAshow.com

Your official “LLHA Show Headquarters” Toronto Airport Marriott 901 Dixon Road, Toronto, Ontario Show Rate (before March 31st): $109 single or double, including free parking (April 1st or later: $113 and parking at $7.50/day) LLHA guests enjoy 20% off all restaurant meals (excluding alcohol) Reservations: 416-674-9400 or 1-800-905-2811 or register on-line at http://cwp.marriott.com/yyzot/llhatradeshow/ LLHA Welcome Reception and Annual General Meeting Saturday April 24, 2010 at 4:30 pm, North Hall Lobby, Toronto Congress Centre We value your input. Come have your say as Saturday’s move-in draws to a close. Enjoy refreshments at our reception starting at 4:00 pm, and join us at the AGM to follow.

Be our guest at our annual President's Reception Sunday April 25, 2010 – 7: 00 pm – New Sunday evening timing!

Cocktails will commence at 6:30 pm Toronto Airport Marriott, 901 Dixon Rd. – Grand Ballroom Don’t miss our industry’s Event of the Year. Join us for dinner and celebrate this year's LLHA Industr y Award winners! For fur ther information, please contact Catherine@llha.ca or the LLHA at Tel: 1-866-872-2420 Help us celebrate our 30th “Pearl” Anniversary!

If you have any LLHA Show or industry pictures, stories or memories that you would like to share, please forward them to Catherine@llha.ca or call the LLHA at 1-866-872-2420.

Attention Retailers: Your opinion counts!

We are looking for your help in choosing the LLHA Sales Rep of the Year and Supplier of the Year for 2009. Here is your opportunity to say thanks!

Please submit your nominations for Sales Rep of the Year and Supplier of the Year at www.llha.ca/awards.php or contact Catherine at 1-866-872-2420.

Awards will be presented at the LLHA’s President’s Reception on April 25, 2010.

14 Travel Goods, Fashion & Accessories Magazine

LLHA News e ee

2010 LLHA SHOW UPDATE Announcing: Keynote Seminar onday April 26th, 8 a.m.- 9 a.m.

M Continental Breakfast 7:30 am Toronto Congress Centre, North Hall Pre-register today at: catherine@llha.ca We are pleased to present Marshal Cohen, Chief Industry Analyst of The NPD Group as the guest speaker for the 2010 show. NPD is the leading global provider of consumer and retail market research information, with offices in 12 countries, including its Canadian office in Toronto. Marshal has been a nationally-known U.S. expert on consumer behaviour and retail industry trends for more than 30 years, at NPD and as the head of leading fashion and apparel companies as well as at major retailers. He recently published his second book, Buy Me! How to Get Customers to Choose Your Products and Ignore the Rest. He is also a regular contributor to major media outlets, including publications like “The Wall Street Journal”, “The New York Times”, and “Women’s Wear Daily”, and television news programs such as “Today”, “Good Morning America”, and “CBS Sunday Morning”, “Bloomberg TV” and “Fox Business News”, and is a sought after speaker at events such as MAGIC, WSA Show, Fairchild CEO Summits, and the Annual Conventions for the National Retail Federation (NRF), and The American Apparel and Footwear Association (AAFA).

Marshal will present highlights from his “Accessories Tracker”; which provides valuable quarterly Canadian data for a range of LLHA product categories. Enjoy his entertaining and informative Industry Overview. See you there!

new LLHA MEMBERSHIP Benefit!

The NPD Group, Inc. is pleased to partner with the LLHA Association of Canada to provide members with access to current actionable data GROUP on the Luggage, Leather, Handbags and Accessories markets. We have been collecting accessories consumer purchase data since October 2009, drawing on the purchase behaviours of a proprietary panel of consumers. The new Canadian “Accessories Tracker” provides this quarterly data in a range of product categories. The Accessories tracker is fully harmonized with NPD’s US Accessories Tracker, enabling retailers and manufacturers to see a fully North American perspective. In March 2010, NPD's data has been chosen to headline the annual Accessories Magazine census issue for the first time.

Reminder to all LLHA members A friendly reminder to those who have not yet paid LLHA membership dues for 2010. Please contact the LLHA office at info@llha.ca if you require a copy of your invoice.

LLHA welcomes New Members!

We proudly announce the following new members. See them at the 2010 LLHA Show: A2Z, Abmira, Accessory Network Group, Auslini, Canadian Gift Concept, Collections of Canada /Sondra Roberts, Criale Leather Goods, Delight Marketing, Glam Accessories, Global Shoe Connection, Johnston & Murphy, Lemon Lime, Ouise, Standard Knickerbocker /CO7.

LLHA Membership Early Bird Renewal Contest…Winners!

LLHA members with dues paid prior to December 15, 2009 were entered into our Early Bird Draw for a FREE LLHA Membership for 2010.

We are happy to congratulate the retailer and supplier winners: GULLIVER’S TRAVEL ACCESSORIES NEO PORT INC

NOT AN LLHA MEMBER YET? Visit www.llha.ca and click on the Membership link to complete the online LLHA Membership Application.

Becoming a member is easy and the best way for your business to grow! Check out what membership in the LLHA has to offer: The LLHA Show…the largest Luggage, Leathergoods, Handbags and Accessories Show held in Canada. The market place for buyers and sellers to focus on the most influential and inspired brands. The place to be if you are looking to be part of today’s retail culture! April 25-27, 2010 at the Toronto Congress Centre.

Additional Membership Benefits include: • Annual Retail Survey Report, and Quarterly Statistics • Copy of LLHA Show Attendance List • Annual President’s Reception • Free listing of your Company and Brands and more on our new and improved website!

• Annual AGM Meeting (Your opportunity to be heard!)

• Guest Speakers and Seminars • Free Subscription to TGF&A Travel Goods, Fashion & Accessories Magazine • And much more….

JOIN US AND BE A PART OF IT ALL!

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Toll free: 1-877-583-1950 www.fultonumbrellas.com Winter 2010 15

e ee Cover Story

It’s a new year and a new decade. Now more than ever, consumers are demanding versatile, quality, environmentallyfriendly and affordable yet fashionable products, and manufacturers and suppliers are listening...

16 Goods, Fashion & Accessories Magazine 16 Travel Building Strategies

Cover Story e ee

Hot Products for 2010

Check out some of our featured products for this year and celebrate the coming of Spring in style. Better yet, remove the guesswork by visiting LLHA 2010 on April 25-27; see most of these new offerings and a great deal more under one roof!

Versatility, Quality and Purpose in Luggage

Anything and everything to do with a worthy cause will be a top seller in 2010. When hearing that a portion of sales goes to support breast cancer research, Haiti relief or other important needs, consumers are often choosing to buy with a conscience. Howard Javasky of Eye Spy Accessories and McBrine Luggage believes the new McBrine Pink Ribbon Luggage Series will be successful because, “The trend is not to just buy something for yourself but to help out a worthy cause at the same time.” Not only do part of the proceeds go to the Canadian Breast Cancer Foundation, but the product is both lightweight and moderately priced. “The 28-inch case is only 9.6 pounds and comes in fashionable colours like burnt orange, blue and black. All uprights feature cut inline wheels with aluminum push button trolley system, fully lined interior and expandable main sections. A pink ribbon on the trolley shows your support for the Canadian Breast Cancer Foundation,” he explains.

McBrine’s Pink Ribbon Luggage Series from Eye Spy helps support the Canadian Breast Cancer Foundation.

Samboro is carrying a line of lightweight, fourwheel cases that come in sharp colours and feature a “futuristic design,” according to President Ivan Lam. The four 360 degree rotation wheels allow for multidirectional rolling and feature an over-sized self-repairing interlocking nylon coil zipper on the main openings. With a 10-year warranty, Lam believes the trolley handle and the 1680D ballistic polyester with EVA backing will set the Regal luggage series apart from others.

Samboro’s lightweight Regal luggage series looks futuristic and sleek.

The new Flexlite Collection by Zero Halliburton, “caters to the trend of consumers demanding lightweight travel wheeled styles and offering highly functional matching lifestyle shoulder bags to be used while traveling or for everyday use,” says Manager of Marketing and Sales Erika Sebens. Zero Halliburton and Ace Company have both been industry leaders for over 70 years and feel they offer great styling, fantastic quality and value: all qualities informed buyers are looking for.

Samsonite, celebrating its 100th Year in 2010, believes that light weight luggage will be the consumer focus with innovative features like spinner wheels and fashionable prints and patterns.

Paul Hanley, Director of Sales a n d M a r k e t i n g f o r S a m s o n i te Canada notes, “Lightweight is one of the most important issues in the industry and we feel that will continue to be prominent in consumer bu ying decisions." Fashion" luggage has also become the new fashion accessory. The trend towards patterns and prints in both hard and soft sided luggage will continue in 2010.” Samsonite has upgraded their X'ion line with the launch of xSpace, a line that is lightweight and feature driven with a stylish appeal. He feels fashion colours like Space Blue and Solar Rose also help make this product stand out in a crowd.

Lightweight still dominates the market and Zero Halliburton’s Flexlite Collection caters to this trend.

Samsonite’s fashion-forward luggage sets are lightweight and are available in both hard and soft options.

Winter 2010 17

e ee Cover Story Hanley also forecasts that 2010 will bring the launch of more environmentally-friendly products and confesses that, “the industry has been slower in responding due to the cost factor and current recession. In luggage we are more likely to see products manufactured with a combination of renewable materials and recycled materials.”

Jeff Williams, VP of Sales and Marketing at Rampion Enterprises, is sure that new innovations in their OGIO line will cater to

The Victorinox Seefeld Collection is very lightweight and versatile, allowing for maximum packing space.

travelers who have a tendency to over pack – or for a traveler who is away for long periods of time. “The Bus Travel Bag breaks boundaries for travelers with overweight luggage. Turning one bag into two to check, or one to check and the other to carry on as a messenger bag, follows the trend towards dealing with the restrictions on luggage and weight,” he says.

The magnetic, detachable carry-on comes with a shoulder strap and features the maximum linear dimensions for a check-on bag.

Similarly, Joe Iannuzzi in Sales and Product Development at Throat Threads notes, “In recent years, airlines have put a great emphasis on size and weight regulations. We’re also seeing more and more airline passengers packing everything they need in a carry-on. These are important things to keep in mind when purchasing luggage. Today, improved technology allows us to significantly cut down on weight without sacrificing durability.Our

SALSA AIR’s success is based on the growing demand for ultra light cases manufactured from fully recyclable Polycarbonate which feature colourful options, and light and durable features like four wheels and TSA locks. “While luggage stores in general benefit from fresh colour to attract consumers, we have been overwhelmed by the sale of our ultraviolet, a beautiful metallic purple, on top of our best selling aquamarine,” notes Carsten Kulcke, Executive Vice President of RIMOWA North America “SALSA AIR is another 25% lighter than the original SALSA

Adaptability is key in OGIO’s new Bus Travel Bag

Victorinox Seefeld collection is incredibly lightweight and the unique designs really allow you to get the most out of your packing space.”

Considering that consumers want greater versatility, their Seefeld collection allows travelers to customize their packing space and can convert from a duffel to a hanging garment bag as needed. The collection is high quality and features the patented 360° Response rotating handle, which reduces arm and wrist stress while rolling.

product, which remains the gold standard in the Polycarbonate segment. It uses the same technology and the same material specification in the shell but offers the extra weight reduction critical to many customers,” he adds. “The most important fact is that all components of the case are easily replaceable and supported by a North American network of service points to ensure that SALSA AIR cases can last a lifetime.”

All of the components of SALSA AIR’s colourful polycarbonate cases are easily replaceable across North America.

Accessories and Apparel Innovations Combining the need for luggage security with quality and style continues to be a noted trend in 2010. Design Go, an innovative and stylish line of travel accessories for 30 years, now carried by Throat Threads, has made an overhaul of its ever-popular lock range, introducing clever new designs and vibrant colours to provide safety in style, with a new range to suit all tastes. Whether the fashionable passenger requires a quality lock that accessorizes perfectly with their luggage set, or wants a stylish luggage tag or strap to easily identify and secure their bags while preventing accidental opening or theft, consumers are increasingly looking for a coordinated range of stylish travel accessories in their purchases.

These fashion forward Design Go locks from Throat Threads offer safety in style.

18 Travel Goods, Fashion & Accessories Magazine

Cover Story e ee Popular travel gadgets never go out of style. Tr y hand-held fans for example.

Developed in-house by Design Go, is possibly the world's smallest fan. The Mini Fan packs power and practicality in petite proportions; itâ&#x20AC;&#x2122;s ideal to fit in a pocket, purse or travelling pouch. Behind its appearance is an incredibly powerful motor of fering an impressive 10,0 0 0 rpm of rotational speed. This product will be hot for those who want to keep cool on those <PM +WV[]UMZ 4]OOIOM :MXWZ\ _I[ KZMI\ML IVL X]JTQ[PML Ja crammed;]Q\KI[M KWU 2WPV -JJ Q[ \PM +-7 IVL W_VMZ WN ;]Q\KI[M KWU flights or more rustic travel destinations.

Stay cool on the go with this small yet powerful Mini Fan in the Design Go line from Throat Threads.

Because passengers are being forced to pack lighter, check fewer bags and use smaller bags due to added ticket fees, backpacks, duffelsFrom and tote bags off, are becoming addition cooling we go totraditional warmingluggage up. Toinkeep hands to carry-ons.

In fact, survey results show passengers ages 18-29 a comfortable over the winter months, Paris Glove is featuring 5 ( 3 2 5 7 are using (53.3%) andâ&#x20AC;&#x153;In handbags whereastalk, widebackpacks selection of options. spite of (46.6%), global warming passengers 60 andalready above are usingearly tote point bags in (36%), in Canadaaged is seeing at this the winter, extreme cold and frigid conditions across the country. Women addition to carry-ons. are buying moretighter and more mittsguidelines, than ever before and costs many are Thanks to todayâ&#x20AC;&#x2122;s security, rising fuel electing to upgrade from knits to leather mitts as they offer and airlinesâ&#x20AC;&#x2122; dwindling profits, luggage manufacturers are being The quantifiable data depicts travel habits and more protection and longer wear. Black continues to be the forcedpredominant to quickly adapt their product to meet passengersâ&#x20AC;&#x2122; primary decision factors when purchasing luggage.

Answering the growing trend towards travel apparel that colour choice as lines it is practical and works with growing demand for smaller bags, lightweight and inperforms better, lasts longer and replaces a pile of clothing virtually any outfit, but white leathers arematerials also showing some novative functionality. with one3Ma Ă&#x2026;VLQVO[ NZWU \PM []Z^Ma" piece of apparel, ExOfficio is made from a unique activity this year,â&#x20AC;? says President Peter Monk. lightweight polyester Gloves are still a laptop bigger cases total unit seller mitts.

Whereas a % % and â&#x20AC;&#x153;Checkpoint-friendly % / lycra %waffle knit% construction were topthan sellers in 2009,â&#x20AC;?

engineered for odor resistance, as well as being moisture wicking, decade ago, mitts represented less than 5% of the hand says Ebb. â&#x20AC;&#x153;Not only do these bags offer more convenience forwear KWV[QLMZ XZMNMZ KWV[QLMZ UW[\ quickIZM VW_ dr ying and sink-wash friendly any where in the world. sold toatwomen, the percentage be as as 40% for passengers securitytoday checkpoints, but theycan lower thehigh probability TQOP\_MQOP\ _PMMT[ KWUUWVTa T]OOIOM XIKSQVO According to Al Diem, Vice President of Sales at Techstyle the retailers who see casual wear as their main product mix.

[QbM IVL UI\MZQIT[ \PM UW[\ ][M KIZZa WV TQOP\MZ of damage to their computers.â&#x20AC;?

International Inc., a Richmond, British Columbia Distributor, the Paris Glove is the licensee for the official gloves of the Olympics, LQUMV[QWV[ \PM UW[\ QUXWZ\IV\ JIO[ L]ZQVO IVL ][QVO 2010, weâ&#x20AC;&#x2122;re going to see lighter luggage better \PM OZMI\M[\ _PMV underwear T]OOIOM IQZ \ZI^MT Give-N-Go growth of ExOfficioâ&#x20AC;&#x2122;s stretch over the 25 â&#x20AC;&#x153;In and their Auclair brand ski even gloves will be on the and hands of all of [UITTMZ QVĂ&#x2020;]MVKM X]ZKPI[QVO NMI\]ZM _Q\P warranties,â&#x20AC;? says Ebb. â&#x20AC;&#x153;Many manufacturers are expanding years\ZI^MT JIO[ since its introduction the Canadian skiers, snowboarders and speed skaterswaras well WV \PMQZ T]OOIOM ZM\ZIK\IJTM has IVL been remarkable. With astogloving our USA rivals for Nordic Hartmann, skiing and for Freestyle skiing ranties cover airline abuse and damage. example, LMKQ[QWV \W PIVLTM[ KPMKS NM_MZ todayâ&#x20AC;&#x2122;s travelers having to be in Vancouver. released its Absolute Assurance Guarantee in February, GuaranX]ZKPI[M \PM JIO[ L]M \W mindful of weight restrictions _Q\P [MKWVL UW[\ tee which will cover any and all damages to its products.â&#x20AC;?

QVKZMI[QVO a n d IQZTQVM NMM[ o v e r p a c k i n g , t hT]OOIOM e QUXWZ\IV\ Suitcase.com is beginning to see new luggage-locking _MQOP\ NMI\]ZM convenience of bringing only IVL systems that use cards or luggage, or suitcases a personâ&#x20AC;&#x2122;s thumb ! \PM ZM[\ZQK\QWV[ two pairs on your next trip: [MKWVL UW[\ print, instead of keys. Ebb says we may even see motorized one to wear and one to wash, LMKQLQVO These colourful gloves from Paris luggage or suitcases that can be easily pulled up aand down stairis timely indeed!

Glove made statement at the NIK\WZ Vancouver Olympics. cases with two rotating tracks, becoming standard purchases.

ExOfficio undergarments From Techstyle

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International are quick drying and made from a unique polyester/lycra waffle knit.

INTRODUCING

the Delsey Cross-Trip Collection

featuring the innovative

â&#x20AC;&#x153; Zip Secure Tech â&#x20AC;?

Visit us at the LLHA Show Booth #1315-1319

Samboro Luggage (Canada) Corp./Delsey Luggage 341 Steelcase Road West, Markham, ON L3R 3W1 Tel: 905-305-1888 Fax: 905-305-0128 www.samboro.ca Winter 2010 19

LUGGAGE LEATHERGOODS AND ACCESSORIES | VSULQJ 2010

9

e ee Cover Story Beautiful Bags and Unique Materials According to Eva Fung, Marketing Director a t E S P E, “e n v i ro n m e n t a l a n d v e g a n products are definitely on the top of the latest trends.” In addition to animal-friendly materials, Fung notes, “The popularity of small, consumer electronics also makes

way for many smaller accessories such as iPhone and iPod pouches, camera cases and more. In the future, we'll probably see more fashion producers branching into accommodating small travel accessories such as passport holders, phone pouches, camera cases and luggage tags.”

ESPE’s collection includes pouches for iPhones and iPods.

“Fun hardware and accents will make an impact in 2010,” says Javier Rincon, President and Owner of Colombian Leather House. “We are offering a new selection of beautiful, vibrant colours never carried before, including red, purple, and turquoise. We are also re-introducing some smaller pocketbooks for those on the go who don’t want to carry a heavy bag.” Concern for the environment is also top of mind, as Colombian produces soft, smooth leather that is manufactured with a minimum of chemicals.

Auslini, a subsidiary of parent company, Home Décor Inc., has launched a twist on an old classic. Nancy Dhillon of Auslini says, “We have implemented new technologies that allow our leather handbags to be lightweight while maintaining durability and quality. The shift among women who have suffered neck and back pain from lugging chic, oversized handbags is giving manufacturers more opportunities. This line is handmade and all our leather is vegetable dyed to make our product environmentally-friendly.”

Colombian Leather House is showcasing new leather colours like red, purple and turquoise.

Auslini has utilzed new technologies to make vegetable dyed leather products more lightweight yet durable.

“In the future, we'll probably see more fashion producers branching into accommodating small travel accessories such as passport holders, phone pouches, camera cases and luggage tags.”

New for Spring 2010 is a line from Roots called the Camilla Collection.

“Featuring all of the qualities synonymous with the Roots brand, each piece offers a multitude of card slots and pockets – something to suit everyone’s needs,” says Anastasia Tsotroudis, International Sales Manager at Meade Ray International.

The Camilla Collection from Roots features wallets with lots of pockets and card slots.

20 Travel Goods, Fashion & Accessories Magazine

Tsotroudis also points to the trend of cross body bags — something that Lori Petteplace at Fossil Canada also supports. “Hobo and cross body silhouettes continue to engage our consumer as we embark on 2010,” she offers. Petteplace adds that Fossil is responding to the trends with, “vintage styling that follows through all our products — glazed and embossed leathers, antiqued and unexpected hardware accents carry this notion throughout our line.”

Hobo bags reflect vintage styling at Fossil Canada.

Cover Story e ee Benchmade Leather works, in business since 1972, is banking on a move away from leather. Says Ben Farber, President, “I believe that the trend is getting away from leather, and fabric is becoming much stronger. People are searching for a bold new look and the overstuffed, quilted puffiness is a new design in lightweight nylon bags.”

Benchmade Leatherworks’ puffy quilted bags offer a bold new twist on the nylon bag.

Since its inception almost three years ago, the goal of Sac O Grande was to set new standards in answering this growing demand for high quality non-leather handbags in the Canadian market. Complimented by clients for the quality of the fabrics chosen, Sac O Grande is “a young brand that is grabbing the attention from stylists from major Canadian fashion magazines and independent retailers across the country,” says Sandra Cassivi, Sales and Marketing at OutSourceAim Imports. She continues, “The latest trend in the polyurethane, PVC and the vinyl handbag market is for the handbags to look and feel more and more like leather. Sac O Grande for Spring 2010 has again chosen high quality polyurethane fabrics to provide that ‘is this leather?’ feel.”

So What’s Hot? Environmentally-conscious buying patterns combined with lightweight and versatile yet stylish products sums up some of directions for 2010. Consumers are doing their research and they know what they want – and at a price point that is reasonable. Everything from manmade, repurposed and eco-friendly materials, sleek designs and items that have more than one function will be top sellers. Products paired with a charity or other humanitarian causes, will often lead consumers to buy not only with their wallets but also with their hearts. e

Sac O Grande is driven to set new standards in non-leather products, like these PVC and vinyl bags in bold colours.

VISIT US AT THE:

LLHA SHOW APRIL 25-27, 2010

BOOTH # 237-241

14 - 5500 Tomken Road, Mississauga, ON Canada L4W 2Z4 Tel: 905-624-8585 Toll Free: 1-888-498-4712 Fax: 905-624-2048 E-mail: jbginternational@yahoo.com www.jbgleather.com

WALLETS s UNISEX ORGANIZER BAGS s LADIES HANDBAGS s MEN S BAGS s KEY CASES s TRAVEL ACCESSORIES JBG_wnter_2010 Final.indd 1

Winter 2010 21

3/1/10 2:05:26 PM

e ee Accounting & Taxation Report

Changes to

Accounting and Taxation in Canada

By Aedan Fowley

By now people across the country have no doubt heard whisperings about new taxes coming into place, as well as new accounting procedures which will likely mean a large adjustment for many retailers and suppliers. So what changes can we expect to see over the next year?

According to Lakh Multani, a partner at Strategex Group Chartered Accountants, the largest change to the federal taxation system is without a doubt the monumental shift regarding the Canadian Generally Accepted Accounting Principles (“GAAP”).

“Starting on January 1, 2011, Canadian companies will have to decide whether to use the new IFRS (International Financial Reporting Standards) or PE GAAP (Private Enterprise GAAP). In fact, they will have to decide well before then in order to avoid having to restate the prior period’s financial statements” says Multani. While publicly traded companies will have to use the new IFRS, private companies will be allowed the option of which system they would prefer to use. “As most businesses in Canada are privately owned, the conventional wisdom is that most private enterprises will choose PE GAAP as it is closer to the current standard and will involve less costs to implement.”

However, Multani offers a word of caution to those private companies who may be looking to make the shift into the public sector. He suggests that those desiring to become newly listed companies (IPOs) should strongly consider making the shift to the new IFRS system to avoid having to restate their financial statements to IFRS at a later date. “In any event, either alternative is going to mean some additional planning and work with their accountants in order to ensure a smooth transition,” states Lakh.

The revisions to GAAP standards are n ot th e o nl y c ha n g es w hic h so m e Canadian companies can expect to see in the near future. As a result of Ontario and British Columbia’s (BC) budget announcements in 2009, legislation is being passed for the implementation of the new Harmonized Sales Tax (HST) coming into effect in these provinces July 1, 2 010. Cur re ntl y, O nta rio has a Provincial Sales Tax of 8% and BC, a Social Service Tax of 7%. Under the new HST legislation, these retail sales taxes (RST) will be harmonized with the federal GST totaling 13% in Ontario and 12% in BC. The HST will be administered by the federal government.

22 Travel Goods, Fashion & Accessories Magazine

The HST will be based on the federal Excise Tax Act; therefore, HST will apply to most goods and services, many of which may have been exempt from RST in the past. Suppliers and purchasers from all industries must recognize that harmonization will change the tax status of many goods and services.

Multani explains, “On tangible goods such as luggage, handbags etc, the end consumer will pay the same amount, as these items would have attracted RST in any event, however end consumers will now pay HST on more services for which they did not pay RST before such as h a i rc u t s, o r l e g a l a n d a c c o u n t i n g services.”

What does this mean for retailers and s u p p l i e r s?

Diane Gaudon, CG A , Manager, Client Services at Brendan Moore explains that there will be benefits for all of the above.

H ST of fe r s m a ny ad va ntag es to businesses, from simplif ying ta x compliance, to the elimination of embedded RST that businesses absorb, to possibly reducing the pre-tax retail price to individuals on some goods and services.

The move to combine the RST and federal GST into a single sales tax is expected to reduce the administrative cost of collecting and remitting sales taxes. The separate sales tax returns for Ontario and BC will be replaced with a single GST/HST return.

Also, time and human resources allocated to separate sales tax audits will be reduced substantially because there will only be one combined GST/HST audit, not three.

So how will this directly impact the luggage, handbag, leather goods and accessories industries? Gaudon believes that it places them in a really good position.

The elimination of the RST and the implementation of a single value-addedsales tax enables these industries to be able to recover most of the HST they pay (large businesses will be subject to the temporary restrictions of the provincial component of the HST). For example, “previously, the RST paid on promotional goods was treated as an expense in Ontario and BC, however,

after implementation, these companies will now be able to recover 100% of the HST paid,” explains Gaudon.

In addition, “manufacturers may be losing their RST exemptions on manufacturing equipment, as are retailers on goods for resale; however since the RST is replaced with a fully recoverable HST, these businesses are not out-ofpocket any tax savings.” Retailers and suppliers should be aware that purchase exemption certificates are simply not going to exist anymore, which isn’t to say that it would be okay to throw out those collected in the past. Gaudon states, “Businesses must remember that they can still be audited by Ontario and BC over the next four years, therefore it is necessary to retain all RST sales tax records, including the purchase exemption certificates.”

So what else do retailers and suppliers need to know about the new HST? All GST registered businesses need to realize that under the new HST legislation they are automatically registered for the new Ontario and BC HST. An Ontario supplier that normally operates in Ontario with only the occasional sale to BC, will be required to collect and remit the BC HST as applicable sales on or after July 1, 2010.

Finally, what does all this mean for the customer? “Bottom line,” says Gaudon.

“Obviously, most services are going to cost more.” However, the wary consumer should not fret, as there are some pointof-sale exemptions for the provincial component of the HST. In Ontario, books, children’s sized clothing and footwear, diapers, children’s booster seats, print newspapers, feminine hygiene products, and prepared food items sold for less than four dollars are all going to be taxed at only the 5% GST, so we can still enjoy our coffee and donut. Gaudon reassuringly hypothesizes, “It is anticipated that retailer costs may be going down. It may take eight months to a year but expected business savings, combined with more competitive exports due to the implementation of a harmonized sales tax, are expected to flow through to consumers which means reduced prices for us all.” e A e d a n F o w l e y i s a To r o n t o - b a s e d freelance writer.

SALSA AIR The lightest Salsa ever.

Visit us at booth # 452 at LLHA-Show in Toronto.

RIMOWA North America Inc. 900 Maple Grove Road, Cambridge, Ontario, N3H 4R7, Canada, Phone: 519 653 1445 www.rimowa.com

e ee Marketing

Surviving

20 Deadly selling sins

By Kevin Graff

You don't need a splashy marketing campaign to increase your bottom line. Start marketing at the most obvious place: in your stores with your sales team.

We all commit them: Selling Sins. It’s just that some are more deadly than others when it comes to making the sale. Here are 20 of the most common and serious ‘sins’ we make when attempting to make a sale, along with the ‘fix’ for each one. Start improving your results and sales today by eliminating these errors.

Sin #1: Not waiting on customers SIN: So ridiculous we shouldn’t even have to talk about it!

FIX: Unless you were told otherwise, your primary job is to serve the customer in the store…so do it!

Sin #2: Sounding like a ‘salesperson’ SIN: Using bad openings like “Can I help you?” or “Was there something special I could help you find?”

FIX: Be a real person and just talk to another real person. Slow down and don’t rush into the sale.

Sin #3: Failing to establish rapport SIN: Failing to establish ‘likeability’ is the problem. People buy from people they like!

FIX: Work on being likeable. Work on liking the customer you’re talking to by using common ground to establish rapport. Being likeable is a choice: smile, be positive, look and sound confident, talk about THEM, be enthusiastic, like them before they like you and ‘mirror’ your customer.

Sin #4: Unproductive use of time between customers SIN: Chatting, and wasting time when there are no customers to be waiting on in the store.

FIX: Use the time to improve your PK, visual presentation, or even review tips on how to sell.

Sin #5: Prejudging the customer SIN: Judging whether or not a shopper is likely to buy, or what they’ll buy, based on how they look or dress.

FIX: Give everyone the same respect you would want. Focus on learning about their needs instead of your own views.

Sin #6: Not asking enough questions SIN: Not asking nearly enough questions results typically in a ‘product’ focused presentation that rarely resonates with customers.

FIX: Ask more questions! Pre-plan the key questions you need to ask for the products you sell. Focus on using a combination of technical, lifestyle and emotional questions: What do you currently own? • What do you like about it? • How do you wish it was different? • What have you seen in other stores that you liked? • What did you like about it? • How do you wish it was different?

24 Travel Goods, Fashion & Accessories Magazine

Sin #7: Talking too much SIN: Salespeople who believe that if they’re talking, they’re winning. This typically results from not asking enough questions.

FIX: Ask your questions and listen…then ask more questions.

When the customer is talking, the sale is going well.

Sin #8: Not knowing inventory, prices or the competition SIN: Failing to take the time, initiative and responsibility to really know the business. Customers no longer tolerate staff that can’t be helpful.

FIX: Do a daily pre-check of what’s new, what’s out of stock and where things have been moved to. Shop the competition.

Memorize the price of five items daily.

Sin #9: Selling products instead of selling solutions SIN: Because you don’t ask enough questions, you don’t know how to position the product as a solution. As a result, you often suggest products that don’t resonate with customers.

FIX: Ask more questions. Challenge yourself to link the product to something you’ve learned about the customer.

Sin #10: Trying to convince instead of convey SIN: Being the “bulldozer”. Trying so hard to make a sale that you forget that the business is about satisfying the customer.

FIX: Focus less on making the sale, and more on helping the customer. Constantly ask yourself what the best solution would be if you were in the same situation as the customer.

Sin #11: Only selling items you like or can afford SIN: Putting your tastes ahead of the customers. Allowing your view of what constitutes ‘expensive’ to limit what you suggest to customers.

FIX: Recognize that the business isn’t about you and your tastes. Learn why the ‘expensive’ items are actually worth that much.

Sin #12: Selling items they don’t want or need SIN: Focusing on making a sale, earning a SPIFF, or a bonus instead of satisfying a customer. Is your goal to have a sales career or just to make one sale?

FIX: Work to provide solutions that benefit the customer. Focus on helping your customer, not yourself.

Marketing e ee Sin #13: Not selling a complete solution: the dreaded one item sale SIN: ‘Clerking’ your way through your shift and not even attempting to sell a proper and complete solution. And, thinking that asking “is there anything else?” is a valid approach to selling more.

FIX: Have a 3-5 step strategy for suggesting appropriate add ons…and use it.

Sin #14: Stopping selling before they stop buying SIN: Getting so excited about making a sale (or caring so little) that you rush to ring it in without exploring other needs.

Or, putting a ‘budget’ on your customer.

FIX: Recognize that the more customers buy, the happier they usually are. Work through your ‘add on’ strategy every time.

Sin #15: Not being prepared for common objections SIN: Failing to have an ‘answer’ ready for the objections you’re always given.

FIX: Write down what the most common objections are… then brainstorm good responses for each. Memorize them.

Practice them.

Sin #16: Not knowing when to close the sale SIN: Most salespeople talk themselves out the sale.

Customers end up ‘cooling off’ and leaving without buying.

FIX: Learn and watch for buying signals. When you hear one, that’s when you ask for the sale. Common buying signals might be positive statements like, “My dad would love this!” or “How soon could it be delivered?”

Sin #17: Not knowing how to close the sale SIN: Being intimidated to ask for the sale. Not knowing how to ‘close’ in a natural, no pressure manner.

FIX: Learn a minimum of four closing techniques and believe that you must ask them for customers to buy your product.

Sin #18: Not ending the sale with grace SIN: Taking the customer’s business for granted and/or getting too caught up in other tasks to really appreciate the customer.

FIX: With every customer make them feel valued, appreciated and important. Relieve their stress, if only for a moment.

Sin #19: Locking in clear goals SIN: Working just another ‘shift’ without an unrelenting focus on achieving a goal. Not being aware of your progress towards the goal at all times.

FIX: Identify your goals each day, week, month and year. • Chart it.

• Check your progress throughout the day. • Celebrate your wins.

Sin #20: Failure to accept responsibility for results SIN: Blaming the weather, your schedule, the customer, the mall…anyone, except yourself for your failures.

FIX: Recognize that your success is up to you, and no one else.

Watch for the usual advance warnings of slumps. Re-focus on your goals.

Kevin Graff is President of Graff Retail. Visit www.graffretail.com for more information.

BONUS Sin #21: Not taking pride in your work SIN: Treating your job as just a ‘JOB’, without realizing the impact you have on everyone around you.

FIX: Recognize that nothing is more meaningful than helping others. Re-examine how you improve your customers’ lives. e

Landau Sacamoto Inc. 400 Stinson Ville St. Laurent, Quebec H4N 2E9 P: 800-295-7287 F: 514-331-1753

Winter 2010 25

e ee Business Centre

Itâ&#x20AC;&#x2122;s All About

By Rena Granofsky

the People

And the right people! For many retailers, employee expenses represent 10 to 12% of sales, making it crucial to hire and retain the right staff. Yet employees are so much more than numbers; they are the heart and soul of the company.

If they fit the culture, represent the brand, reinforce the strategy, are relatable to customers and are happy and fulfilled in their jobs, they can make the difference between winning, winning big and losing.

This is a tall order! Retailâ&#x20AC;&#x2122;s reputation for long hours and relatively sparse remuneration means retailers are, at best, starting behind the eight ball.

Complicating matters, population growth is primarily in the older generation, aged 55 and older. Many skilled workers are retiring, with fewer workers available to stand in their place. And replacement workers are often part of the Net Generation, a new breed that has spent its formative years learning, playing, and communicating in an environment immersed in information technology, with radically different needs, behaviours, and relationships.

How can retailers respond and win? And how can technology help?

Technology Enablers

There are a myriad of applications to support the hiring and retaining of quality employees, each with proven Return on Investment. Below are a five examples: Hiring the Right Employees. Web-based applications are available for employee and applicant self-service, and can be set up on a variety of devices such as PCs and Kiosks. When applicants approach your store, they can fill out the application in real time rather than taking it home and bringing it back later. Where the historical industry average is five or six applicants for each hired position, with this approach the average is 20 or more per hired person, making it easier to find the best candidate for the job. The information is then passed on to the system provider to conduct a background check and develop a rating on the applicant.

Some retailers use this approach to evaluate applicants and develop hiring strategies. Others match applicant skills to employee performance 26 Travel Goods, Fashion & Accessories Magazine

and fine tune their employee profiles so that each time they improve the hiring process.

Employee Forecasting and Scheduling. Store managers can use these applications to create a more efficient schedule based on the storeâ&#x20AC;&#x2122;s forecast, and eliminate many hours of manual effort spent weekly. And with central applications, employees with specialized skills can be shared across stores to cut costs. These applications save labour costs, increase employee satisfaction and retention, and ultimately raise sales and revenues.

Role-based Task and Workflow Management. Once the strategy is set, the next challenge lies in execution. How can retailers with multiple stores ensure a consistent customer experience in each and every store?

Applications are available to tie in different retail systems across the company and to share tasks, forms and documents. For example, the applications can be used to coordinate all activities for new store rollouts with both internal and external parties, including electricians and contractors, to keep the project on track. Or, a generic flyer might be set up and customized by each store to fit the local market, eliminating the need for an office tools license in each store.

Tasks and communications can be published and distributed throughout the chain based on role. For example, plan-o-gram requests can be created by merchants, approved by the store communications department, and sent to the appropriate department manager.

E-learning. Leading retailers are using online learning both to train employees on standard operating procedures and to boost sales. In most cases, a third party supplies the learning module; portals and

Business Centre e ee

“Employees are so much more than numbers; they are the heart and soul of the company” web-based applications are then provided to link the employee with those learning modules and to track performance.

Manually intensive business processes. Are your employees always available to serve customers in the store, or do they spend large blocks of time counting inventory and filling out forms? By intelligently automating processes, sales associates will be freed up to better serve customers.

The same is true for employees in the corporate office. With more automation, employees can spend their time analyzing information to ensure the right inventory is in the right location at the right price. And they can trust the information available, since automated processes are typically less prone to errors.

These applications can do wonders to help you hire the right employees, and keep them productive. But for the Net Generation, the group of employees just now joining the workforce, there is more to think about.

relationships outside the store. And they can set up the inventory in the store guided by instructions on mobile devices rather than following cumbersome printouts.

• Harnessing their input will keep them interested and add to your offer.

They understand and are natural innovators in the use of the technology. They will continually be up to speed on the latest technology innovations. Ask them to contribute their ideas; you may be amazed by what they come up with.

• Evolving the Net-Gen relationship requires thinking of employees as eventual alumni from when they enter the organization as opposed to treating them as traitors as they depart. Even when leaving, they can advocate your company to other highly attractive candidates for hire.

And they may gain valuable experience elsewhere, subsequently returning to guide you in taking your business to a new level.

The Net Generation: Bathed In Bits and Poised to Transform our World

The Dilemma: Cut Costs or Invest

The intersection of new information technology and global demographics is creating a new generation with radically different needs, behaviours, and relationships. The Net Generation, the cohort born between 1977 and 1994, rivals the baby boom in size. They were the first generation to grow up surrounded by digital media, and they are a force for social transformation. They are now entering the work force, and they are very different from the generations before theirs.

Grown Up Digital, the best-selling business book by renowned author Don Tapscott, describes eight norms of the net generation, based on interviews with nearly 6,000 Net-Geners from around the world. Several of these norms will impact both where and how these Net-Geners will choose to work, and retailers who understand these norms can hire and retain the cream of the crop.

First, they want freedom in everything they do. Choice is like oxygen to them. Using the Internet and mobile connectivity as a platform, you can provide them with choice in where, when, and how they work.

They look for corporate integrity and openness when deciding where to work. They will conduct online research on your company and culture before deciding whether they think it’s the right place for them. Hiring is a mutual process: you will select them, and they will select you.

They are a collaborative and relationship generation. They collaborate on Facebook and Twitter, and influence one another’s choices. They can easily consult with their network of peers to find answers you may be seeking. If you provide them with the tools to communicate outside your organization, you can significantly increase the brain power within your organization at little to no cost.

They have a need for speed. They expect real time chats and quick communication with others throughout the organization and beyond.

They are also natural innovators in the use of technology for competitive advantage.

These changes hold significant implications for recruiting, training, and engaging employees: • Initiating the relationship with Net-Geners requires that companies differentiate themselves in the talent marketplace, use personal networks to recruit candidates, and create a mutual selection model.

• Engaging Net-Gen employees requires sensitivity regarding new work styles and communication models. Time horizons for the workday and potential career path will need to be flexible. Current technology will need to be infused into their toolsets. Can they surf the web to answer questions as they perform their jobs? Can they use social networks to communicate with other employees, discuss challenges, merchandise preferences, or best practices in handling situations? Can they build relationships with customers over social networks, fostering both employee and customer loyalty to your brand? Can they use Facebook to ask their friends how to handle a situation or find a needed resource?

Or have you blocked Internet access altogether, thinking they will waste too much time online?

• Engaging Net-Gen employees can also be accomplished by providing them with mobile tools. At the point of service, they can have valuable product and customer information at hand to service customers. They may use mobile devices to communicate with customers and build

With the economy as challenging as it is, it is tempting to continually cut costs, hire fewer and less costly (a.k.a. qualified) employees, and limit investments in technology.

Still, with the right technology investments, a digital culture and the power of the Net Generation, employees will be more fulfilled, and willing and able to represent the brand, develop loyalty and build revenues. With more satisfied employees, retailers have the opportunity to not only win but to win big. e Rena Granofsky is President of RIT Experts, an international consulting firm specializing in strategy-based retail technology roadmaps, best practice research, and technology solution searches. The company is based in Toronto, with offices in Montreal and New York, and also offers cost effective workshops for retail technology professionals to grow their skills and provide the highest quality impact to their retail organizations.

Refer to www.ritexperts.com for more information.

European designed purses, bags, and travel accessories, handcrafted in full grain Italian leather… now available in black

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Winter 2010 27

e ee On the Road

Trade Show Success

By Andrew Coppolino

For Leigh Walters, President and CEO of Italix Inc., creating a respite in her booth for harried retailers, away from the hustle-and-bustle activity in the aisles at a busy industry trade show, can result in a boost to the bottom line.

At the time this article was being written, Walters and her Kitchenerbased company were heading to the Canadian Gift and Tableware Association show in Toronto, one of the largest such shows in North America. Simply put, one of the goals for Walters and Italix was to attract customers to her exhibit from amidst aisles and aisles chock-a-block with people—and to make sales.

There are the obvious benefits to trade shows which enable companies to promote existing brands and increase product recognition. Industry veteran, and annual LLHA Show exhibitor Ron Ste. Marie of ISA Canada notes that sheer numbers are a good way to do just that.

“In what other circumstances can retailers and vendors get to see one another in a three-day format under one roof with all the industry present,” he asks?

It’s a matter of high visibility and a potentially good ROI. Industry expert Jane Attard writes that trade shows are, in fact, a costeffective way of getting tremendous exposure for your name and your products and services.

“More than 80 percent of attendees at trade shows have the ability to influence buying decisions, and more than 50 percent of attendees make a purchase as a result of attending a show,” she notes in “E x hibiting At Industr y Trade Shows” at businessknowhow.com

But size is both a blessing and a curse, as Walters alludes. What you do with it is the key to trade show success. For Italix, within the vastness and sheer numbers at trade shows, differentiation is crucial.

“We’ve tried to differentiate ourselves by creating selling stations with our lines on display. It’s a sort of calm in the gift-show storm. Retailers can sit down and relax while they place their order. It creates a VIP atmosphere. I think we’re one of the only ones doing this,” Walters says.

For Jules Sowder, owner of trade-show-advisor.com, while it is certainly true that the primary goal of trade-show participation—and investment—should be to support lead generation, there are other significant benefits to working a trade show properly.

“As part of the overall sales equation, companies should fully leverage the participation by using the opportunity to stay on top of the latest industry trends, gain competitor insights, make key industry contacts, and further solidify relationships with current customers. All of these activities will contribute to short and longer-term sales effectiveness.”

It is that nurturing component, secondary to the sale, that is often forgotten, says Gail Grant, Eastern Canadian Sales Manager with Derek Alexander of Calgary.

“Trade shows like LLHA have a unifying effect as well, especially in a country as large as Canada. People underestimate what you can achieve at a trade show, other than writing an order,” said Grant who is based in Cambridge, Ontario.

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28 Travel Goods, Fashion & Accessories Magazine

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On the Road e ee

Trade Show Survival Tips Differentiate yourself Exhibitors can also benefit from studies done by the industry itself. The Center for Exhibition Industry Research has found that visitors to trade shows are looking ahead in the short-term—they’re seeking products and services that they will need not much more than a year out.

Margit Weisgal, President and CEO of the Trade Show Exhibitors Association, keeps timelines in mind. He says retailers are comparison shopping in the present for future purchases. In essence, they draft up a “short list” of potential products and lines anticipating when a contract with a current vendor expires in, say, 18 months. It’s advice exhibitors would do well to heed.

“Visitors seek pre-purchase information on needs that will arise within the next two years. In simple language, that translates into collecting information on potential future purchases,” Weisgal states.

In observing the larger picture, Ste. Marie assumes a self-reflective stance when he asks, “What kind of industry are we in if we cannot spare the time to go to one important show a year?”

At the same time, he might be best described as advocating tried and true methodologies for getting the most out of trade shows and interacting with potential clients.

“It goes back to the basics of calling them, visiting, emailing, face-to-face appointments and putting your time in. You can’t guarantee that a retailer will just walk in and place an order at a trade show. Customers need to know you and your company—and get a certain level of comfort.” e Andrew Coppolino, andrew@andrewcoppolino.com, is a freelance writer based in Kitchener, Ontario.

ADVERTISERS INDEX Thank you for participating in the Winter 2010 issue of TGF&A! Cabrelli Inc.

800-784-4750 cabrelli.ca

Canadian Gift Concept

905-738-4804 cgconline.ca

ESPE

905-881-3829 espe.ca

18

Fulton Umbrellas (Canada) Ltd.

416-661-3493 fultonumbrellas.com

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G.F-T Enterprises

888-359-9355 nojetlag.com

28

Macy Fair Inc.

905-709-0532 pinkstix.com

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Heys International Ltd.

905-361-4000 heys.ca

IFC

Holiday Group Inc.

866-325-0660 holiday.ca

IBC

JBG International

905-624-8585 —

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Joanel Inc., Les Diffusions

888-956-2635 joanel.ca

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Landau Sacamoto Inc.

800-295-7287 landausacamoto.ca

25

Ostba of Salzburg

905-857-9015 ostba.com

27

OutSource Aim Imports

450-510-3928 sacogrande.com

14

RIMOWA North America Inc.

888-746-6928 rimowa.com

23

Samboro Luggage (Canada) Corp. 905-305-1888 samboro.ca

19

Samsonite Canada Inc.

800-265-4933 samsonite.ca

Sasha Canada Inc.

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Sonia Zarbatany

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9, 11 7

OBC 28

Ron Ste. Marie feels that trade show attendees want to compare vendors on a level playing field, so differentiate yourself from others. “If you have something extremely different to offer, the better retailers will spot it and stop.”

Do your homework

“Calculate if this investment is right for your company.

Determine who is going to be at the particular trade show,” says Gail Grant. Leigh Walters would agree: “What are the traffic patterns within the booths? What exhibitors appeal to you?”

There’s no second chance to make a first impression

Swag and baubles like mini-flashlights or coffee mugs can’t repair a bad first impression. “It’s your opportunity to shine because the customer is there specifically to learn about your product, pick up new lines, or re-stock. Smile! If you don’t take that minute to shine, you could lose a potential customer,” Grant says.

Walk a mile in a visitor’s buying shoes

Margit Weisgal suggests you pose questions you might ask yourself if you were a retailer approaching an exhibitor. “How do they treat you when you enter the exhibit? Do they discuss specifications with clear explanations rather than technical terms that only make sense to the original design engineer?

Do they welcome you and treat you with respect? Do you get the sense that they’ll do whatever it takes to make the purchase process go smoothly?”

The devil is in the details

When setting up your booth, pay attention to details. Consider accessories, ambient lighting, and signage for maximum visibility. Make sure promotional giveaways represent who you are. Walters is a big advocate for finding the right staff and training them specifically for your booth and display. Grant adds, “It’s the little things people forget. Make it welcoming but don’t overdo it.”

Get the full trade show experience

“You can get feedback from other exhibitors at trade shows about what is going on in different parts of the industry and country,” says Grant. She adds that trade shows offer beneficial—and free—seminars, including sessions geared to teaching exhibitors or retailers a little bit more about the industry.

“I don’t think they are utilized as well as they should be.”

Focus on your customers

A simple tenet is vital, according to Ste. Marie: “Work your clients with their needs in mind.”

4-5

Winter 2010 29

e ee Industry News & Views

Has your company won an award? Is your CEO retiring? Are you moving offices? Opening a new store? Have you hired a new sales team? Acquired a new line? Do you want to share your views on an industry topic or event, or comment on something you’ve read in TGF&A? Do tell…your industry colleagues want to know about it!

Any brief notes can be sent to the attention of the Editor, Lucie Grys, at lucieg@mediaedge.ca.

Hedgren Partners with Landau Sacamoto

e , it s Luggag e t li x Ma Date oduces ection to r ll t o n In C o le r vide a rdab Tr a v e lp to p r o ost Affo g M te n li d ti x n e a a e t ti ll m ed M Lightes s , w h il e s evelop rs rd d a le d e e n v v a ’ a ll tr “ We it y s ta il to b e ra lu u t, a d v c nal xpe ” and exc e p ti o m e to e li d ay q u a li ty o c g in e v d a n a t Ho rs h th e d e m u s to m e ire c to r a e ve lp ro c la , M a rke ti n g D to m a k ra T d t e a n th Pa d il rs d e s ig o le s g e a v ri a w d tr o in g s ays R ll e c ti o n y b y h e lp ve r w e ig h t “The co o s s c o s tl r le fo d G ro u p . n e a c h a rg e a s ie r s e g n n li li ir e v a tra at ra ti o n e fe e s th c o ll a b o t avo id th a g s.” n e c re b ts w e r e d of its c h e c ke d produc ls o p ro u a s It is : ro res C lo o n e y Trave lp n t P ic tu e la s t G e o rg e u d o m a r o m in a te in th w it h P a O s c a r- n a tu re d fe m o ly fr e " iv exc lu s th e A ir "U p in m o v ie , it m a n. ason Re J r to c e d ir

Luggage Opportunity The Ro-el Group require s an experie nced and well connec ted person in the Luggag e Industr y, to presen t and promo te the Carlton brand throug hout Canad a. For more inform ation, please contact Jennife r London at 514-373 -5550 or email jlondon @bridg eportre cruiting.com.

Hedgren Creations N.V. is pleased to announce that Landau Sacamoto will be their new Canadian business partner for distribution of the Hedgren product line. Hedgren wishes to thank Laura Kingsley and Gary Lazar at Hedgren Canada for their professionalism and hard work over the past three years.

Landau Sacamoto is looking forward to this new challenge and the opportunity to work with the many customers that support and encourage Hedgren products in their stores.

We encourage you to contact your Hedgren sales representative in your area or Landau Sacamoto at 514-745-7287 for the latest news and product introductions.

Cabrelli Expands Product Line Cabrelli Inc. is expa nding its Cabrelli & Co. Fashion Roller Briefs line for the Spring 2010 co llection. This va lua ble as set for the trave lin g wo ma n will be of fered in ne w sh ap es, co lou rs an d ma ter ial s.

Retailers that would like to have more information reg ard ing thi s prod uc t ca n co nta ct the ir sa les re pr es en ta tiv es or Ca br ell i's he ad of fic e at 1-8 00 -78 4- 4750 or bags@cabrelli.net.

In Memory Alan Bowness passed away in February in St. John, New Brunswick. His daughter Connie shares her memories: “Al was in the luggage and leather goods industry for well over 30 years. He travelled New Brunswick, Nova Scotia, Prince Edward Island and Newfoundland. He was well respected in sales and always looked forward to helping out, whether it was a new sales rep on the road, or saving costs and travelling together such as on trips to Newfoundland. He knew what products were right for each market and wasn't afraid to try something new. A talented story teller and always ready to share a laugh, he enjoyed the shows when all the salespeople would gather.”

Alan will be missed by his wife Dianne, his children Gary (Glenda) of Charlottetown, Connie (Mark) Steeves of Edmonton and David of Moncton, his sister Donna Stange (Russ) and his four grandchildren, Thomas, Brodie, Jessica and Cory.

30 Travel Goods, Fashion & Accessories Magazine

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