Summary:
This article is about how well the 2010 Commonwealth Games merchandise is selling in New Delhi, India. Merchandise such as vuvuzelas , t-shirts, Shera(the mascot) plush toys, and more are selling at a fast pase. Many of these merchandise are imported. One example of this is the vuvuzelas, which is imported from China. The merchandise can be bought at places such as the four official stores, four mobile vans, and sixty-three different venues in the eleven stadiums hosting the Games. Like all merchandising businesses, these people invested money into the products in hope of making a profit. Even though the merchandise sold well, it ended up being a loss of money for Premier Brands, the merchandising partner of the 2010 Commonwealth Games, because of delay in sales.
Connections:
There are connections in this article to the merchandising business in chapter 11. Merchandising businesses buy and sell products to make a profit. Premier Brands is an example of a merchandising business. They invest in(basically they buy them) their product, the 2010 Commonwealth Games merchandise, and sell them to retailers for a profit. They also have “official stores” in which they sell their products directly to the customers. The products that were sold to the retailers are then sold to the consumers(customers) for a price that will profit the retailer. Another way it is connected is the shipping of their products. Their merchandise is shipped to them from different places. That being said, there must be shipping costs(freight-in) which we also learned about in chapter 11. Thus, those are the two connections to the chapter.
Reflection:
Ultimately, the article shows that not only sales are important, but also the time in which you sell them. Every merchandising business takes a risk when they buy a product to sell. It could sell right away or not at all. Even when the ending gross profit is high, the expenses of running the business can greatly affect the ending net profit; bad cases end in a net loss. This is one case where it ended in a loss for the business. Still, I think this is the best of the worst outcomes possible for Premier Brands because at least the sales are up and they are getting back some of the money they lost.
