Counselor® PromoGram®
Volume 756 / October 14, 2010
Click here to read this and past issues online.

American Apparel Hires New President
One week after staving off potential bankruptcy, Counselor Top 40 supplier American Apparel (asi/35297) has appointed former Blockbuster executive Tom Casey its new acting president, effective immediately. Casey will report to American Apparel CEO Dov Charney, who will maintain his leadership role with the company he founded 20 years ago. “I am excited that Tom is joining American Apparel,” said Charney. “Tom’s team-building skills, strategic perspective and senior management experience will help us build a great future for the company.”

Casey, hired to improve the finances of American Apparel, served as executive vice president and CFO for Blockbuster for the last three years. Casey left the troubled video-rental chain last month just before the company filed for Chapter 11 bankruptcy protection, citing debt of nearly $1.5 billion. Prior to his time at Blockbuster, Casey worked as the managing director for Deutsche Bank Securities Inc. and held various investment positions with Citigroup, Merrill Lynch and Dillon Read & Co. “American Apparel presents a very special opportunity,” said Casey. “I admire American Apparel’s commitment to creative thinking and fair treatment of its textile and apparel workers. I see American Apparel in the early stages of its development and I believe that my experience can help shape the company’s future.”

Casey joins American Apparel following the company’s recent successful renegotiation of its debt agreement with primary lender, Lion Capital. The new deal exempts American Apparel from meeting short-term payments, but the supplier does face new earnings obligations starting next year. Besides making additions to management, American Apparel has also opted to hire FTI Consulting to increase efficiency, as the supplier looks to reverse consecutive quarters of sluggish sales and recoup operating losses that have quadrupled from a year ago.

Ranked by Counselor as the 13th largest supplier in the industry, American Apparel reported 2009 North American ad specialty sales of $90 million. Immediately following the appointment of Casey, American Apparel’s (AMEX: APP) shares rose 10%, but are still down 56% from one year ago.

ASI NEWS

MJF on ASI Radio
Actor and activist Michael J. Fox chatted with ASI Radio to advance his January 25 keynote in Orlando.
Find out more.

Selecting Top-Rated Suppliers
In the last year, distributors rated over 100,000 transactions in 25,000 supplier ratings reports and ones rated four-stars or above are now featured in the 2011 Select catalog.
Find out more.
ASI welcomes the following Suppliers to the LogoMall Network
Find out more...
Find, review, and purchase the latest exclusive ASI products...
Find out more...

Video Report: News Of The Week
In this episode of Counselor's Industry Update video, we look at a distributor merger in the Northwest and reveal the new president of one Top 40 apparel supplier. Plus, will green marketing efforts soon be a thing of the past? Watch the video to find out.

Click here to see the trends and to watch Counselor PromoGram’s Industry Update.

If you have any news you’d like to see covered on Industry Update or in Counselor PromoGram, please send it to newsdesk@asicentral.com.



Survey Proves Value Of Samples
For some distributors, new scientific findings about consumer behavior affirm the value of tangible samples in their marketing efforts. Researchers at the California Institute of Technology (Caltech) have released results from a study that found consumers are willing to pay more for a product when they can actually touch it. In the study, the researchers presented food to hungry subjects in three different ways: as text only, as a high-resolution photograph, and on a tray in front of the subject and the subjects could then bid on the food. The scientists followed this up by presenting a variety of objects from the Caltech bookstore. In all the cases, subjects were willing to pay an average of 50% more for items they could actually handle, versus either those presented in text or picture form.

According to the researchers, the results indicate that consumers put more value on products when they can actually touch them. For distributors, the results validate the use of samples in marketing products to clients. “We know our buyers want to touch and feel the products – anybody can say they can source something or customize it, but when you show it to them it shows that you did do those things. It’s a way to separate yourself from other distributors,” says Nicholas Mirabile, vice president of merchandise and licensing for Octagon (asi/286685).

Jamie Coggershall, president of Graphic Revolutions LLC (asi/212891), says that as the research demonstrates, samples are likely to have a far stronger impact on the customer than a catalog photo. Not only does a sample allow the customer to appreciate what the product offers, but Coggershall points out, it can also help alert distributors when a product is sub-par. “I remember picking up a sample phone holder for myself at a trade show, with the intent of showing one of my clients,” says Coggershall. “Within a week the phone holder broke. So right away, I knew it’s a really nice looking product, but it’s not something I’d ever show my clients.”


Podcast: Michael J. Fox On Overcoming Challenges
On Tuesday’s ASI Internet Radio Show, the hosts welcomed a special guest: Michael J. Fox. The actor and activist told his inspiring story of being diagnosed with Parkinson’s disease at 29 – and offered his own methods for overcoming obstacles to continue a highly successful career. Plus, as keynote speaker for The ASI Show in Orlando in January, Fox previewed his talk by revealing his favorite promotional items.

Click here to listen to the Michael J. Fox interview segment from Tuesday’s show. Want more information on Fox’s appearance at The ASI Show in Orlando in January? Go to www.asishow.com.

If you’d like to check out a recording of the whole online radio show, go to www.asicentral.com/radio. And, don’t forget to join us Tuesday, October 19, for our next broadcast. Log on to www.asicentral.com/radio at 10:30 am ET and give us a call at 215-953-4979 or e-mail us at radio@asicentral.com to participate on the show. We want to hear from you.



FTC To Crack Down On Greenwashers
Aiming to put an end to misleading environmental claims, the Federal Trade Commission (FTC) has released changes to long-standing marketing guidelines, cautioning companies against exaggerated and generalized advertising. Within the body of the updated rules, called Green Guides, the FTC has tried to clarify the appropriate use of product certifications, terms such as “renewable energy” and “carbon offset,” and certain seals of approval. “In recent years, businesses have increasingly used ‘green’ marketing to capture consumers’ attention and move Americans toward a more environmentally friendly future,” said FTC Chairman Jon Leibowitz. “But what companies think green claims mean and what consumers really understand are sometimes two different things.”

The new guidelines, which are the first FTC-issued changes on the topic since 1998, strongly urge companies to show “competent and reliable scientific evidence” if they make claims of environmental benefits tied to their products. In a specific change, the FTC warns companies not to make claims that products are made with “renewable materials” or “renewable energy” when any oil, coal or other fossil fuel was used in the manufacturing process. The FTC’s new guidelines also steer marketers away from using terms such as “eco-friendly” and “environmentally-friendly” in their promotional efforts because they are too broad and vague in scope.

The updated guidelines are just the latest action by the FTC to more tightly scrutinize greenwashing, a term used to describe unsubstantiated environmental claims about products. Since last year in fact, the FTC has filed a series of complaints regarding the validity of supposed biodegradable products and the environmental benefits of bamboo-based clothing. For example, last August, four non-industry apparel manufacturers were highlighted by the FTC for deceptive marketing practices related to the Textile Fiber Products Identification Act.

While enforcement by the FTC is becoming more stringent, companies still aren’t required by law to follow the Green Guides. If a company uses a pattern of marketing deception, however, the FTC is pledging to take action. “We’re going to go after them, and we'll put them under order,” said Leibowitz.

The new Green Guides, which the public can comment on until December 10, can be found at www.ftc.gov.



Take The Third-Quarter Sales Survey
ASI is currently surveying distributors in the market to find out how they did in the third quarter of 2010. This important data helps give industry practitioners a read on how the market overall did in the most recent quarter, so please take a few minutes to take the survey.

Click here to take the survey now.

Results from ASI’s Third-Quarter Sales Survey will be published in Counselor PromoGram later this month.


Honoring The Industry’s Best Places To Work
One of the most anticipated lists in the industry is now live. Counselor’s Best Places to Work, the ranking of industry companies that were judged by their own employees as the best companies to work for, can now be found on our website and a special new Facebook page at www.facebook.com/BestPlacestoWork.

Click here now to view the full list of 75 companies, and to read a profile of the number-one Best Place to Work: Dacasso (asi/48125), the Gainesville, FL-based supplier.

And, make sure to join the Counselor Best Places to Work community by going to www.facebook.com/BestPlacestoWork. Add your own thoughts to the conversation about what makes a great workplace. Right now, we’ve asked people for their stories and pictures from their favorite corporate summer outing this year. Join us now to show the industry why your company had the coolest outdoor event this summer.  



In The News
Facilis Group has added three new partners to its distributor community: LogoStoreUSA (asi/181390), Competitive Edge (asi/166085) and Dei Rossi Marketing (asi/178198).

Flexfit has announced that it will sponsor the 2010 Justin Timberlake Shriners Hospitals for Children Open during the annual week-long PGA TOUR event beginning October 18th in Las Vegas, NV. Sponsoring for the second year in a row, the company is donating 1,600 embroidered caps to the event.

Norwood has announced that its credit department is now operating out of the Clearwater, FL headquarters and can be reached at (866) 563-9922.

Quality Certification Alliance announced that three more companies have applied for its accreditation program: Design Resources Inc., Gill Studios Inc. (asi/56950) and Points of Light (asi/78825).

ScrambleEase (asi/85928) has moved its offices to 4222 Rosehill Road, Suite 7, Garland, Texas 75043. The company’s new phone number is 972-303-2200 and fax number is 972-303-1311. Now through the month of November, it is offering free magnetic golf cart mounts with each order.

Sportscan Summit (asi/332581) employee Jack Bond has won a silver medal in the 66KG Greco-Roman Wrestling Competition at the Commonwealth Games in India.

Stitch Designers (asi/741145) has launched an updated website, found at: www.stitchdesigners.com.



People On The Move
Castelli North America (asi/44305) has hired Ken Penner Sales to represent the company in Manitoba, Saskatchewan and the Lakehead area of Ontario and The Richfield Agency to represent the company in Alberta and British Columbia. They join Media 1 Marketing for Ontario and Quebec and Platine Marketing for Quebec.



ASI SHOW

DEADLINE APPROACHING FOR FREE TICKET TO THE ULTIMATE TEXAS BASH
ASI distributor and decorator members who register by Wednesday, October 27, for ASI Dallas (February 16-18) can order a free ticket to the ever-popular Ultimate Texas Bash at Eddie Deen’s Ranch taking place February 17.
With an action-packed, three-day lineup of amazing events, including a dynamic free Keynote by former First Lady Laura Bush (sponsored by Pepco Poms, asi/77280), you won’t want to miss the industry’s largest show in the Southwest.
Plan to see hundreds of leading suppliers, participate in the industry’s most-comprehensive education conference (featuring new speakers and new classes) and enjoy networking 24/7 when you attend ASI Dallas.
Register today at www.asishow.com and enjoy free admission, a free ticket to The Ultimate Texas Bash and a free hotel room!*
*ASI distributor/decorator member benefits only. Visit www.asishow.com for details. 

THE ADVANTAGES ROADSHOW IS VISITING THE MIDWEST — ATTEND FOR FREE
The industry's #1 traveling show, the ASI Advantages Roadshow, is visiting the Midwest next week (Fargo, Oct. 18; Minneapolis, Oct. 19; Des Moines, Oct. 20; Kansas City, Oct. 21 and St. Louis, Oct. 22). All distributors are invited to attend for FREE!
Delivering a productive, one-on-one atmosphere for distributors to meet with top suppliers, the Advantages Roadshow features free education from 7:45 a.m.-9 a.m. and 1 p.m.-2 p.m. and exhibit hours from 9 a.m.-1 p.m.
Visit www.advantagesroadshow.com for complete details. No pre-registration is required. There is no better way to prepare for the end of the sales year!

Follow The ASI Show on Twitter and become a fan on Facebook today!

The following are the dates and locations for The ASI Show in 2011:
Orlando, January 23-25, 2011
Dallas, February 16-18, 2011
New York, March 22-24, 2011
San Diego, May 18-20, 2011
Chicago, July 19-21, 2011

Plus, don’t miss the ASI Advantages Roadshow, the industry’s #1 traveling show. Visit www.advantagesroadshow.com for the complete schedule and go to www.asishow.com for information on all ASI Shows.


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