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Meet master retailers, simply among the best. They have a deeper sense of real value for the price.
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New York, NY: (Executive Summary) In this episode of Small Business School we go to the heart of the fashion industry and behind the scenes of Nicole Miller, a fashion house on Seventh Avenue to meet the founders, Nicole Miller and Bud Konheim.

OVERVIEW: In an industry where even top designers have taken production overseas, Nicole Miller pieces all proudly wear the label, "Made in New York."

It's a stroke of genius for these times, but the reasons go far beyond patriotism. For Nicole Miller, it's all rooted in the fabric of the American entrepreneurial dream: pride of idea, of process, and of execution.

We Americans are driven by the pursuit of happiness, and Nicole Miller makes sure the chase is fun. From her selection of inspired seasonal colors to "ageless" designs, her creations epitomize our need for personal expression and individuality. The Konheim/Miller creed is that her clothing is designed to 'make somebody happy,' and her innovative creations move us beyond wearing mere clothing to wearing fashion.

Nicole is one of the world's most well-known fashion designers.Aesthetics matter, and what the wearer beholds as beauty, translates into a feeling of happiness and a sense of real value for the price.

And as Nicole Miller's success attests, woven into those feelings are the threads of satisfied customers and repeat business.

Founded in 1982, Nicole Miller today is a thriving concern with 165 employees working either at headquarters in New York City on 7th Avenue, in the warehouse or in the retail stores. There are 30 Nicole Miller Boutiques around the country, and the line is sold in exclusive retailers like Nieman Marcus, Saks Fifth Avenue and Nordstrom.

This is the heart of New York City and American capitalism. Amidst the hustle and bustle of downtown Manhattan, creativity and community are thriving in the offices of Nicole Miller. Around the design table, ideas are exchanged and debated, fabrics selected, patterns modified, and the season's lines born as part of a collaborative process.

It's the very fabric of global commerce being created seamlessly from the designer, to the pattern maker, to the draper and on to the seamstress who turns the fabric into much sought-after Nicole Miller designs. And at the very core, the common thread throughout, is an unfailing commitment to the partnership and relationships-with employees, suppliers, resellers and, of course, customers.

Nicole Miller is a firm producing happiness where people want to work creating beautiful fashion that people want to buy. Though they have celebrity customers like Jennifer Aniston, Kim Cattrall, Hillary Duff and Mena Suvari, they also have people like Hattie and women of every size and personality.

Nicole, Bud, and their spirited team have their hand on the pulse of women. While they earn a living helping women feel happy, they work for no money on causes important to women.

Their work with the NFL and Betty Crocker (General Mills) is a rare challenge for all of business to realize the power of social capital.

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Retail is Main Street. Main Street is America
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Key Ideas of this episode
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1. Sell Happiness
2. Pricing is Art
3. Feed and Trust Your Instincts
4. There is No Place Like Home
5. Create a Win-Win
6. You Can Stumble into Millions
7. Staying Small is a Strong Position
8. There's Power in Partnerships
9. Multiple Sales Channels Work
10. Internship Programs Work
11. Make Organization Charts circular
12. It Never Gets Easy
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  • THE TRANSCRIPT: Read the transcript and dig into the study guide. There is also a printer-ready version of the transcript. Save the $9!
  • EXPLORE THE CASE STUDY GUIDE. Though these study guides are used within dozens of the top-selling business textbooks for MBA students and for the special broadcasts by PBS into the schools and universities in the USA, there is much to think about if you are a business owner. We believe each point made here is about a business principle that can be applied to any business. What do you think?
  • SELECTION: The business, Nicole Miller, was recommended to us by the PBS-member station, NJN in New Jersey. The company is always making things for auctions and charities. They have great social capital. They were also recommended by many others. To be selected as the study for a show, a business must come up on everyone's list as a being ". . . loved by their community and respected within their industry."

    Bud Konheim represented his industry in this Online NewsHour piece on PBS.org / WTTW-11 of Chicago.

  • SOCIAL CAPITAL. When your heart and soul is within a relation, the real magic begins to happen:

    BETTY CROCKER: Any small business would love a strategic partnership with General Mills and the icon of the food industry, Betty Crocker. Betty Crocker Kitchens contacted them to do an exclusive kitchenwear line. It doesn't get any better. Yet, the best part is that profits go to The Ovarian Cancer Research Fund.

    NFL: How about National Football League (NFL)? It began with a tie and now the NFL gives a $50k donation to the Komen Foundation and a seven-figure national advertising campaign (26 in-game spots, 48 daytime spots and 55 ESPN spots). All women can readily say, "Thank you, Nicole Miller!"
  • RETAIL. "You've gotta love it." And you had better love people of all ages, sizes, shapes, nationalities, and backgrounds. That is retail.
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  • WATCH A SHOW ONLINE:Small Business SchoolRegister at the MasterClass and become part of SmallBusinessSchool. You can develop your own profile on-line and more.

  • JOIN, JOIN, JOIN. Never stop learning. We encourage you to join your national professional and/or trade associations and your local business groups like the Chamber of Commerce.
    National Retail Federation (there site is down today).
  • TECHNOLOGY: Every business uses technology differently and we can learn a lot from each other:

    The Internet and Becoming and E-Culture. Use the Internet aggressively. It should be one of your workplaces as it is at the Nicole Miller Fashion House. The WorldWideWeb disintermediates space. Nicole's office in Japan is virtually next door. So ask yourself, "What part of my business could be moved to the web (behind a firewall of course)?"

    E-mail, Instant Messages and Security. If you haven't done it already, be sure to set up your email server to exclude spam. Who is responsible for your email server? Do you have a physical firewall?

    1. A firewall protects your server, network and your data by excluding those who have not been invited, and easily includes those who are invited. Your inner circle needs easy, immediate, 24x7, access from anywhere -- home, work or hotel. Learn more.

    2. Intranets. All the Nicole Miller retails shops, both their own and the licensees, are all interconnected. We have seen how effective this can be with many of the stories we've profiled. It is like having an intercom system built into your computer. Why not consider this with your suppliers, your distributors or resellers, and even your best customers? Learn more
  • WATCH QUALITY TV. This episode of the show airs on stations around the country -- check here. To find out which Small Business School episode is airing on your local PBS-member station, click here.
  • SUPPORT PUBLIC TELEVISION:
    Become a member of your local station. If you are already, great. If not and your business is doing well, consider joining the Producers' Club ($1000).
We invite your COMMENTS OR QUESTIONS. Was the show inspirational and/or educational? We hope this show is both!
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