Bob's Blog Archive

October 15, 2009

Blogging again…

I just returned from like my 30th trip to China.  That sounds really crazy, 30 trips to China, but I’ve been going twice a year since the early 1990’s.  So everyone has been asking me what’s going on in China.

And the answer - is same thing that’s going on here.  Yes, the standards are way different.  But from a business point of view, there is talk of lower demand and rising employment costs.  So factories are reducing expenses and some are closing.  Everyone making for the USA market is down as you can imagine.  And, they are feeling pressure from the West to improve conditions for the workers.  So, the business owners feel pressure, similar to the pressures in the USA. 

There are huge differences though.  China has 1.3 billion people to feed.  We have 300 million.  You could say that if feeding their people is the goal, they are successful.  China’s economy is driven by the fact that they have lots of natural resources and cheep labor.  They can make goods for the whole world, and they do.  The labor rates are rising.  When I first went to China, workers were getting $50 per month.  Now it’s up to $150 per month.  To us, that’s like free labor.  But if you lived in Northern China, $150 will feed your family.  When we go north from Shanghai into China, we see poor people.  I mean the kind of poor I have not seen in the USA.  Like no electricity or running water poor.  A bicycle is a luxury.  The way China works, I’m not even sure these people know they are poor.  But give these people $150 a month and they can live.  So, that’s what it is like when you leave the big cities.

In the cities, there are privileged people.  Out of 1.3 billion people, 3% are rich.  That’s a lot of rich people, around 40 million.  So, there are fantastic hotels, restaurants, museums, and such.  For the record, I only sleep in the big cities.  I’ve got some hellacious day trips, but my nights are luxurious, to say the least.

So, that’s a short answer about China.  You don’t read my blogs to learn about global economics anyway.

Here, the retail climate has been ok.  Cold weather is our customer’s best friend.  And it has been cold in October.  I went to see a football game in Iowa City last Saturday night.  The low was 29 degrees and everyone was wearing hats and gloves.  Michigan lost and that was a bummer.  But Iowa City is a great college town.  Probably the most underrated I’ve been to.  Get past the corn fields and you find this oasis of a city - with culture and happening people and events.  And my road trip friends and I think the second best looking girls in the Big Ten.  Wisconsin is best or does the alcohol there have something to do with that. 

On another note, I heard from a customer (hat shop in Vegas) that they like buying our fedoras.  The prices are moderate and she says she gets repeat business from these kids who trade them to girls in bars for phone numbers.  Sounds like fun, but I’m married and that would only lead to trouble.  So I tucked that little idea in the back of my mind.  Then later that evening I’m at this MAGIC show party at Club Tao in the Venetian with Brandee.  We met these ladies who were having their own party within the party.  They were entertaining customers and promoting their product.  It’s a purse clip, or bracelet, or both called FUMI and Brandee thought it was really cool.  She wanted one but they weren’t willing to give it to her - until I had this brilliant idea and asked if I could trade my fedora for the bracelet/purse clip.  And what do you know, this girl was rocking out in my hat, and Brandee had her new possession.  Just another fun hat story.  Plus, this girl looks way better in my hat than I do.  I’d like to put her in our catalog.  See below for proof.

Regards for now      

Stars in Hats