Sp;it Obsession in Koko Marina Shopping Center is suffering from the downturn

Small Boutiques Hung on in Downturn
local business is having difficulties in slowing economy

By Kaori Saitoh / Heart of Hawaii

HONOLULU— Some of the first businesses to be affected by a slumping U.S. economy are local small boutiques.  Some boutiques decided to close down because of decreasing of profits.  Others are trying new strategies to cope with it. 

According to Department of Business, Economic Development and Tourism, August 2008 visitor expenditures declined 17.6 percent.  Visitor spending also decreased 8.7 percent, which is equal to $7.8 billion.    

Waikiki boutiques are the ones hurting from the decline in tourism.  “Customers, Japanese as well as foreign nations’, slumped to the store,” said Yukari Hosho, store manager of Waikiki boutique Muse by Rimo. Hosho was interviewed in her native language, Japanese, and her responses were translated by a bilingual Japanese-English speaker for this article.
 
“Recently, Japanese customers tend to consider carefully before they purchase our products even they were buying easily when they visited Hawaii before,” Hosho said. 
The store opened April and it is not only facing competition from other boutiques but concerns about the economy.  Hosho is trying to carry middle price products and to introduce customers to unique products.  Hosho hopes to corporate with other Waikiki boutiques to make a better fashion area to cope with slumping economy.

The Butik co-owner Landy Cheung said sales have been similar to last year even she saw spending decrease by customers.  The store gets more bargain shoppers, and regular customers come to talk story.   “People who shop with us come to talk more and tell us they were laid off,” Cheung said.

The Butik launched a reward program called “The Butik Rewards” that customer will get $20 gift certificate when they get 10 stamps. They get one stamp when they spend $50.  Shoppers also get a 10 percent discount when they bring their eco-friendly tote to take home what they bought. 

 “If businesses are able to provide the highest level of quality products and services with even greater customer service, they will survive and prosper now and in the long run,” said president and chief executive officer of Hawaii Institute for Public Affairs William Kaneko in a Web article in Hawaii Business magazine.

Over in Hawaii Kai, slumping economy affects their business without exception.  Keeping their loyalty to customers is part of the strategy at Split Obsession, a clothes and art boutique in Koko Marina Shopping Center. 
Summer is the one of the busiest time for many boutiques in Hawaii but co-owner Erica Apana noticed a drastic downward in shoppers’ spending.

Co-owner Bruce Chin said, “Customers were more willing to spend, but now they are more specific about what they purchase.  They think of more usage.”
Chin said the store has been trying to have a lot of events and keep the store different and unique from other boutiques. BIGFOOT, artist from Los Angeles, had an art show with them last Saturday.

"Being in Small business is risky,” Chin said.  “You could have a good products or themes but big company could take your ideas and products.  That increases competition and devalues your products.”
Boutiques try to make their stores fit in the economy now. Some boutiques are trying to carry lower priced point items to bring in more customers to purchase their products. 

Many boutiques hope to have more customers back in holiday season. However, some shoppers think they will tighten their purse this holiday.  “I will be a budget shopper this holiday,” said Michael Corpus, an employee at Ala Moana Shopping Center. Corpus said, “I need to watch out for the price of everything.” 

Cheung said, “I hope holiday will be busy for our store. I’m hoping for the best.”  Apana and Chin think economy would be tight and recovery will take up to eight or nine months.  

“If anybody has their favorite local restaurants, boutiques, or such stores, try to support them as much as possible,” Apana said.  “Try to support local small businesses.”