Blogging into Week Three

Blogging into Week three.  I have the Wall Street Journal spread out here on the kitchen table.  On the front page is a quick blurb entitled Vital Signs with a graph showing the G-7 unemployment rate of the G-7 Nations (seven nations including U.S., Canada, Britain, France, Germany, Italy and Japan).  Last fall the rate on the graph peaked at 8.5% and today it is only down slightly.  The article compares to the early 1980’s when the rate was at 8.2% but then about nineteen years ago when today’s college freshmen being born in 1991, the rate decreased to just above 5% and then began to rise and fall again and again leading into this much higher rate. 

So what was happening in 1980?  Well, there was a U.S. led boycott of the Olympics in Moscow because of the Soviet invasion of Afghanistan.  In the United States, President Jimmy Carter introduced the Carter Doctrine in his last State of the Union address in which he noted that the United States would use force if necessary to address actions in the Persian Gulf region.  The G-7 was having their sixth meeting in Italy, marred by the death of the Japanese Prime Minister who died prior to the start of the conference.  Happily, Japan was having an economic boon during 1980.  G-7 annual meetings continue now as the G-8 with a mission for these economically well off industrialized nations to meet for an international forum.  Russia entered the group in 1997 making it the G-8.  Vital Signs does not include employment statistics for that nation.  In June 2010 a quick Google search shows that the Russian unemployment rate was published at 6.80. 

Recapping the international changes from 1980 to 2010 would be much too time consuming but notably from the comments in the beginning paragraph, Afghanistan is still in flux although the Russian presence is very different.  The United States now has a presence there along with United Nations troops.  This last weekend there was an election in Afghanistan with voters being intimidated by insurgents.  It will be weeks before the results are known. 

WSJ: Cuba Unveils Huge Layoffs In Tile Toward Free Market

The one thing that is constant is change.  So correct.  Times are changing.  Cuban President Raul Castro has announced that a portion of government workers are being “laid off” to encourage more private sector jobs.  In doing this, he also must now consider what industries there are that will absorb these workers.  Currently Cuba has a list of 124 jobs that are “authorized” as self-employment.  They include toy repairer, music teacher and piñata salesman.  There is still need for policy changes within the government.   While it is permissible to manufacture furniture, mass production is discouraged.  Instead there must be an order for a piece of furniture.  Cuba has been economically supplemented by Venezuela but that country may have difficulties with keeping us this practice.  Industries that Cuba is looking to consider include oil, tourism and biotechnology.  The information that I am including in this blog comes from the Wall Street Journal (an article written by Jose De Cordora and Nicholas Casey on September 14, 2010).  Cubans realize that the world is changing and that economically they cannot be left as the only nation not moving forward in globalization.  Could Cuba be one of those nations for Vera Wang and a renewed tourist location for destination weddings? 

WSJ: Vera Wang's Idea of Empire: Marry High, Low, In Between

In my first International Management blog written after seeing “Bride Wars” again, I was happy to read about Vera Wang in today’s Wall Street Journal.  It is Fashion Week in New York City.  Writer Ray A. Smith discusses in the WSJ Marketplace section today “Vera Wang’s Idea of Empire…”  The article gives some tiny pieces of biographical information on Ms. Wang.  She is 61 with a 20 year closely held company having a three-tiered retail strategy in several locations throughout the United States and some in countries such as the Ukraine, Saudi Arabia and Thailand.  In all there are a total of thirteen international locations.   One year ago, Mario Grauso joined Vera Wang as President (giving Vera more freedom for design) and the company gave a five year plan to expand in Asia and Europe as well as creating more affordable products.  The Wall Street Journal article was to provide information on Vera Wang and the decision to design for David’s Bridal, a three hundred store chain, mainly in the U.S.  David’s Bridal does have a few international locations. The line being created for David’s Bridal will be sold at prices ranging from six hundred dollars to fourteen hundred dollars.   Vera Wang has created other affordable products for retailers such as Kohl’s however this is a huge departure for Ms. Wang who has designed wedding gowns for such notable figures as Chelsea Clinton, Hillary Duff and Alicia Keyes (these most recently).

Mr. Smith further describes in this article a three-tiered retail strategy of products in a luxury line, a mid-priced and then a discount line.  He talks about how this strategy can be “tricky” by the fear of tarnishing a designer’s image.  The article concludes with the company’s plans to further expand the luxury locations and its dealings with celebrities. 

In conclusion, readers will need to stay tuned to find the additional locations that will favor Vera Wang’s styles.  As stated previously, she has thirteen international locations but only one in Asia (Taiwan) and none in Russia.  David’s Bridal only has locations in four countries but also has none in Asia or Russia.  There are huge cultural differences for weddings in many parts of the world and both Vera Wang and David’s would need to become very educated on those markets and strategize to meet those needs to become successful.