Friday, December 9, 2011

The Business of Beauty

Born shortly after the turn of the 20th century, Josephine Ester Mentzer was one of nine children born to Hungarian Jewish immigrants in Queens, New York. Her father owned a hardware store which she and her siblings worked at during their childhood. Josephine, who would later become known by her nickname Estee, gained valuable insight into entrepreneurial skills and what it took to be successful in retail. While in high school, Estee became enthralled with her uncle’s business. Dr. John Schotz, a chemist, created lotions, makeup and fragrances for women. Upon completing high school, Estee started selling her uncle’s products to friends as well as beauty salons and resorts.

Estee married Joseph Lauder in the early 1930s and continued to sell beauty products wherever she could. Together with her husband, Estee Lauder started making her own products; and in 1947, Estee Lauder Inc. was born. In 1948, Estee convinced Saks Fifth Avenue in New York to display her products. Her initial supply of product sold out in just two days, securing her space at the popular department store.

Estee Lauder added a variety of new brands to their collection including White Linen, Origins and M.A.C., while continuing to introduce new lotions, cosmetics and fragrances through the Estee Lauder brand. Although Estee passed away in 2004, her legacy lives on. The company has more than $3.6 million in sales annually and is available in countries worldwide. Her passion for beauty and her products were inspirational to all who knew her.

Monday, December 5, 2011

Uniting Crafters Worldwide

There's absolutely no doubt that e-commerce has taken off in the last decade. Consumers can buy a wide range of goods line including new and used items from a variety of retailers. The two most common selling methods are flat rate pricing and bidding which is similar to an auction. While there are plenty of sites that sell new products and even several that sell used goods, the handmade goods niche was untapped until Etsy entered the scene.

Launched in June of 2005, Etsy offers a variety of handmade items, craft supplies and vintage goods from people around the world. The site allows sellers to open a storefront and list items they have available. To list an item on Etsy, sellers pay 20 cents per item for a four-month listing. If the item sells, Etsy takes 3.5 percent of the sale. This model was proven effective and in just two years, Etsy was celebrating its millionth sale.

Etsy is the brainchild of entrepreneurs Robert Kalin, Chris Maguire, and Haim Schoppik. Kalin received inspiration for the company's name by watching the Fellini film "8 ½." The Italian word etsi, which means "oh, yes," is used quite often throughout the movie. Kalin changed the i to a y and Etsy was born. The company continues to improve and expand their site, reporting more than $46 million in sales and nearly half a million new members in September 2011. With sellers in more than 150 countries, Etsy has succeeded in bringing the local craft fair online and opening up brand new markets for crafters across the globe.

Thursday, December 1, 2011

Visible Product, Less Visible Company

This company’s products are so visible and in use in Switzerland, Europe, and other parts of the world. In fact, these products are essential components of a country’s economy.  The products concerned here is the Swiss Franc, the Euro and other national currencies.  While the currencies are part of everyday life, the company who makes the security paper banknotes is not well-known.

This company is Fortress Paper, Ltd. It is based in Canada and has three manufacturing plants. The Fortress Specialty Cellulose Mill is in Quebec, Canada. This mill produces pulp used to manufacture a special kind of paper and is being upgraded to produce pulp which will be used in such products as cellophane.  The Dresden Mill is in Germany and manufactures specialty papers like technical papers and non-woven wall papers.

The Lanqart Mill in Switzerland is where the security paper used to make the Swiss Franc is made. It has been the sole manufacturer of this banknote for over 30 years. The plant is also one of the exclusive suppliers of banknotes for the European currency.  Over 25 countries use the company’s banknote papers.  It also supplies security paper for use in passports and visas of different countries.

Security and secrecy is the top priority in this plant. Counterfeiting is a major concern. The company has to always stay ahead of the counterfeiting curve and must continuously upgrade its technological capabilities to prevent criminals from copying the security papers they produce.

Fortress Paper had revenues of $278.2 million in 2010 up from $ 196.1 in 2009. Net income likewise rose to $34.4 million in 2010 from $12.6 million in 2009.  Total assets were U.S. $ 287.6 million in 2010.

The company has managed to diversify with different product lines although most are dependent to some degree on wood.  The banknote market does need contracts from governments, so although their paper is in wide circulation, their clients are really the national governments and not the populace.

All things considered, the company is growing while continuing its role as a critical but silent partner in producing the world’s currencies.