January 27, 2010
OPEN Forum Message
Business Forecasting 2012
Our special feature on forecasting sheds light on how to choose the right model, offers advice from Jack Stack and more.
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For a lot of business owners, it may seem like the thing to do during a recession is to tighten the company belt – make cutbacks in overhead, look for less expensive manufacturing, hold onto to any extra revenue. Jennifer Baum Lagdameo, however, has done the opposite. In the past year, she has expanded her Ananas wholesale business into retail by opening her first store. She continues to have her handbags produced locally in New York City and to pursue her philanthropic mission. She says the main impetus behind these decisions is that “you still have to take risks if you really believe in something.”
Jennifer started her business in 2004 and slowly built it through wholesale until finally testing the retail waters with a pop-up store in 2008. Based on its success, she opened her permanent store in February 2009, during one of the worst times for retailers. She says the timing was perfect, though. “Wholesale makes you dependent on retailers, and their business has been dropping. Sure, I’ve increased my overhead operating my own store, but I’ve increased my margins, too. Plus, it’s given me showroom space for wholesale buyers, so I no longer have to wait for trade shows.”
The store has enabled her to engage her customers and get their input on her products. “They’ve helped me identify a number of design changes, as well as helped to reconfirm some of the ideas I believe in.” Those ideas, which may seem contrarian to some, have helped Jennifer not only survive, but actually grow and be more innovative:
- Produce locally. “Even though it means my prices are higher, my customers and even the wholesalers love the fact that they’re helping to support the local garment industry.”
- Create exclusivity. The proximity of production has also helped Jennifer do smaller runs, which means more exclusive products. “More exclusive is more interesting to my customers.”
- Be more efficient. She’s been able to see what materials aren’t used in one product run and quickly design another product to use, generating less waste and new revenue opportunities.
- Give back. With the sale of each of her bags, which include signature wooden hardware custom made in the Philippines (where Jennifer once lived), a tree is planted in deforested areas of that country through the Trees for the Future nonprofit organization. “I think people are more interested in giving back, but even if it didn’t contribute to sales at all, I’d still do it.”
When I asked Jennifer if she thought opening in this economy has been more positive or negative for her business, she said, “Positive, definitely. It’s forced me to be more creative and efficient and also realistic. At another time, I probably would have had much higher expectations about what sales should be. Now I’m much more thoughtful about growth. Opening the store when I did has been totally worth it.”
If you have a story you’d like to share, please e-mail me at marcy@openforum.com. You can also find me on Twitter @marcyshinder.
To learn more about Jennifer Baum Lagdameo (Cardmember since 1992) and Ananas, visit www.ananascollection.com.
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