In 2004 the total consumer price index was 93%. Within that total, food was at 90% and apparel at 49%; which was the lowest among the rest of the categories.
- According to this data, the consumer price index was very high in 2004, indicating that inflation was a problem. However, the inflation did not hit as hard in the apparel industry as it did in necessity items. This also shows that the cost for supplies in necessity goods is much higher then for apparel. When this information is compared to 2004 sales (in both apparel and food industries) we can see where the consumer spending was during the time of inflation.
Trade Restrictions
The USITC (United States International Trade Commission) creates laws, rules, and policies to promote fair trade within and between countries. The USITC also creates and regulates tariffs (taxes for imported or exported goods). Throughout 2004 the US tariff schedule included: Free tariff (average) for natural cellulosic fibers and bamboo, 8% tariff (average) for man-made staple or filament fibers, up to 65% tariff for knit or crouched apparel, and up to 40% tariff on unknit or crouched apparel. Furthermore, NAFTA (North American Free Trade Agreement) was also a major player in the US trade market. This allows Canada, Mexico and the United States to trade freely without tariffs while protecting intellectual property rights (trademarks, copyrights, patents).
-The tariff schedule regarding different fibers and apparel shows us that its cheaper to import natural fibers then apparel itself. Also it is also cheaper to use natural fibers rather then man-made ones. Furthermore, NAFTA is very important component because we know we would be allowed to have free trade with products from Mexico and Canada. Overall this information provides us insight of where we should look or plan for fibers or goods, when we produce our bag.
Consumer Spending
In 2004 the US national average for disposable personal income per capita (income after taxes) was $29,914 which was a 5.2% growth from 2003. However, in 2005 the average slowed to a 3.6% growth. On the other hand, the US average national income per capita (income before taxes) in 2004 was $33,050 which was also a rise from 2003, of 5%. The rise from 2004 to 2005 in the national income slowed to 4.6%. The average personal consumption expenditures per capita of 2004 was $8,195. This total was spent on: $983 on durable goods, $2,343 on nondurable goods and $4,868 on services.
-The US disposable income is very important to understand possible shifts in consumer spending or how much they can spend. Also the comparison of income and disposable income informs us on the tax situation and how it is affecting the consumer and the national average. Furthermore, when their is a decline from year to year (i.e. 2004-2005) of disposable income, we know something has occurred. Discovering what had occurred can help us predict situations like this for the future. Moreover, we see a trend in spending more money on "nondurable goods" and "services". This lets us in on where consumers prefer their money to go or what's more important to the consumer.
Unemployment
In 2004 the US national average for unemployment was 5.01%. This was an increase from the previously year; however the country did see a .2% drop in January of the following year. The average male unemployment for 2004 was 5.63% but this number dropped .3% in January of 2005.
On the other hand, the female unemployment for 2004 was 5.39% and remained that through the begining of 2005.-The fact that the unemployment had dropped following the 2004 election give us a clue today of the possibilities. Secondly, the female unemployment rate was lower then the male and did not fluctuate following the election. These piece of information help us know are target gender and their possible spending habits.
Imports/Exports
In 2004 the average total amount for dollar exports was 96,577 (per million dollars). On the other hand the average total amount fro dollar imports was 142,500 (per million dollars). The majority of the US exports go to Europe and Asia (second highest). The majority of the imports to the US are from Asia. The lowest in both categories is Australia which only receives and sends 1% of the global trade.
-This is important because it provides us information on where the majority of the US goods are going to or coming from. Knowing the global trade market drastically affects how you get or where you get the goods or supplies needed for production of our bag. This also lays out the standard for goods based on where the majority are imported from.
Natural Resources
The US had 3% of the world's natural gas reserve. It also has the 11th largest oil reserves in the world. Other important resources in the US are: coal, copper, lead, molybdenum, phosphates, uranium, bauxite, gold, iron, mercury, nickel, potash, silver, tungsten, zinc, and timber.
-The natural resources of the US show what is redly available for production. It also shows how big of a market player we are in the high demand areas (coal, natural gas and oil). The bigger the market player the easier it is to obtain other needed natural resources.
Sales
The total revenue for all retailers (everything from food to automobiles) in 2004 was $3,846,316 per million dollars and the monthly average was $320,526 per million dollars. Grocery specific was $35,000 per million dollars retail per month. Clothing and accessory specific was $15,250 per million dollars retail per month. The retail volume for clothing and footwear in 2004 was 10,287,433 per 1,000 units (includes whole North American Continent). This was a 5.1% from the previous year which grew to 5.9% growth for the following year. The total dollar retail for 2004 was $293,561 per million dollars (includes whole North American Continent) .
-Also, the information on retailer is directly related to our industry. It shows how much people were spending at this time and where they were spending their money. When compared to other years we may see a trend or an event that disrupted the spending habits. To pin point these ideas will help with future preparation. According to the information, Americans spend 50% of what they spend on groceries, on clothing and accessories. This high percentage is directly related to consumer price index (49% in 2004).
In 2004 the average total amount for dollar exports was 96,577 (per million dollars). On the other hand the average total amount fro dollar imports was 142,500 (per million dollars). The majority of the US exports go to Europe and Asia (second highest). The majority of the imports to the US are from Asia. The lowest in both categories is Australia which only receives and sends 1% of the global trade.
-This is important because it provides us information on where the majority of the US goods are going to or coming from. Knowing the global trade market drastically affects how you get or where you get the goods or supplies needed for production of our bag. This also lays out the standard for goods based on where the majority are imported from.
Natural Resources
The US had 3% of the world's natural gas reserve. It also has the 11th largest oil reserves in the world. Other important resources in the US are: coal, copper, lead, molybdenum, phosphates, uranium, bauxite, gold, iron, mercury, nickel, potash, silver, tungsten, zinc, and timber.
-The natural resources of the US show what is redly available for production. It also shows how big of a market player we are in the high demand areas (coal, natural gas and oil). The bigger the market player the easier it is to obtain other needed natural resources.
Sales
The total revenue for all retailers (everything from food to automobiles) in 2004 was $3,846,316 per million dollars and the monthly average was $320,526 per million dollars. Grocery specific was $35,000 per million dollars retail per month. Clothing and accessory specific was $15,250 per million dollars retail per month. The retail volume for clothing and footwear in 2004 was 10,287,433 per 1,000 units (includes whole North American Continent). This was a 5.1% from the previous year which grew to 5.9% growth for the following year. The total dollar retail for 2004 was $293,561 per million dollars (includes whole North American Continent) .
-Also, the information on retailer is directly related to our industry. It shows how much people were spending at this time and where they were spending their money. When compared to other years we may see a trend or an event that disrupted the spending habits. To pin point these ideas will help with future preparation. According to the information, Americans spend 50% of what they spend on groceries, on clothing and accessories. This high percentage is directly related to consumer price index (49% in 2004).
Other
In 2004 the US lending rate was 4.3 (relatively low). The lending rate rose to 6.2 in 2005 (relatively higher). The average GDP was 3.6% (healthy) but dropped in 2005 to 3.1 (borderline healthy). During 2004 the US had a public/national debt average of $7,286,196,099,751.
-The lending rate of the US is very significant. The lending rate shows the likelihood of people borrowing money. The burrowing of money promotes consumerism and commerce. Furthermore, the GDP shows the overall stability of the economy and the higher it is the better. The GDP takes into account: consumer consumption, investments, government expenditures, exports, and imports. As you can see (data from above) those aspects of the GDP have contributed to it being very close to the borderline. Our national/public debt shows we aren't doing very well economically (because very high). It also shows we are dependent on other counties, because thats where the money/debt is.
**Chart 1 shows the growth and decline in sales of footwear and clothing between 2001 and 2006. As you can see from the chart, the sales of shoes slowly grew from 2001 through 2006.
**Chart 2 is a representation of the growth and decline of the real GDP between 2001 and 2006. The chart shows that 2004 was a peak year in real GDP, then followed its decline.
In 2004 the US lending rate was 4.3 (relatively low). The lending rate rose to 6.2 in 2005 (relatively higher). The average GDP was 3.6% (healthy) but dropped in 2005 to 3.1 (borderline healthy). During 2004 the US had a public/national debt average of $7,286,196,099,751.
-The lending rate of the US is very significant. The lending rate shows the likelihood of people borrowing money. The burrowing of money promotes consumerism and commerce. Furthermore, the GDP shows the overall stability of the economy and the higher it is the better. The GDP takes into account: consumer consumption, investments, government expenditures, exports, and imports. As you can see (data from above) those aspects of the GDP have contributed to it being very close to the borderline. Our national/public debt shows we aren't doing very well economically (because very high). It also shows we are dependent on other counties, because thats where the money/debt is.
**Chart 1 shows the growth and decline in sales of footwear and clothing between 2001 and 2006. As you can see from the chart, the sales of shoes slowly grew from 2001 through 2006.
**Chart 2 is a representation of the growth and decline of the real GDP between 2001 and 2006. The chart shows that 2004 was a peak year in real GDP, then followed its decline.
Sources
Online Resource. Retrieved September 30, 2008 at
economist.com Online Resource. Retrieved September 30, 2008 at
BEA.gov"United States International Trade Commission". Reviewed on September 18, 2008. Retrieved October 4, 2008 at
http://answers.usa.gov/cgi-bin/gsa_ict.cfg/php/enduser/std_adp.php?p_faqid=8193&p_sid=PD**CBfj&p_lva=7884#"North American Free Trade Agreement". Reviewed October 3, 2008. Retrieved on October 4, 2008 at
http://answers.usa.gov/cgi-bin/gsa_ict.cfg/php/enduser/std_adp.php
Price Index Program, Bearu of Labor Statistics. January 2005. Retrieved on October 4, 2008 at Global Market Information Database.
USA :Country Fact finder. Retrieved on October 4, 2008 at Global Market Information Database.
Online Resource. Retrieved on October 4, 2008 at https://www.cia.gov/library/publications/the-world-factbook/geos/us.html
Online Resource. Retrieved September 30, 2008 at
economist.com Online Resource. Retrieved September 30, 2008 at
BEA.gov"United States International Trade Commission". Reviewed on September 18, 2008. Retrieved October 4, 2008 at
http://answers.usa.gov/cgi-bin/gsa_ict.cfg/php/enduser/std_adp.php?p_faqid=8193&p_sid=PD**CBfj&p_lva=7884#"North American Free Trade Agreement". Reviewed October 3, 2008. Retrieved on October 4, 2008 at
http://answers.usa.gov/cgi-bin/gsa_ict.cfg/php/enduser/std_adp.php
Price Index Program, Bearu of Labor Statistics. January 2005. Retrieved on October 4, 2008 at Global Market Information Database.
USA :Country Fact finder. Retrieved on October 4, 2008 at Global Market Information Database.
Online Resource. Retrieved on October 4, 2008 at https://www.cia.gov/library/publications/the-world-factbook/geos/us.html
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