Highlights of the Decade
By Staff -- Gifts & Decorative Accessories, 9/1/2007
September 11, 2001, is a day that Americans will never forget. At the time, Gifts & Decorative Accessories' offices were just 20 blocks from Ground Zero. We saw New Yorkers come together and help each other during this horrific experience. The rest of the nation also came together, showing their support through donations and vigils. The gift industry responded with donations and patriotic additions to their lines. Sales went up and flags sold so quickly that stores couldn't keep them on their shelves. Storeowners and vendors alike offered portions of sales to 9/11 charities. During this time, Americans switched their focus to family and friends; people began staying at home more, and spending more time with loved ones. Entertaining at home was on the rise and manufacturers responded by adding home entertaining pieces to their lines to fill the demand.
While 9/11 was the most significant event of the decade, just a few years earlier, in 1998, Asia had experienced a series of worries: devalued currencies, political unrest, factory closings, the collapse of local markets and rising freight costs all caused problems that were felt within the gift industry. The devalued currency, for instance, made purchasing raw materials more expensive for Asian countries. And while Asia continued to export goods, they put a stop to all imports, leaving loads of containers at American storage yards. The cost of freight was expected to go up, which would bring a 10 to 15 percent increase at retail.
Yet while fear lingered, many retailers were confident that things would go smoothly, as they had secure arrangements with shippers. Another concern was for manufacturers who produced overseas, worried about commitment, stability and their contract agreements. Retailers were tempted to go directly to the manufacturer and bypass American companies.
There were also political problems in the Far East. In Indonesia, riots broke out over Chinese living in the Malay Archipelago, causing factory closings to deflect rioters against Chinese employees. Still, while all this was going on, business continued as usual for the majority of importers and manufacturers in the gift industry.
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