'Basics Plus,' a popular household goods chain in Manhattan

In the U.S., major retail chain stores have expanded to a scale of several hundred to more than a thousand and those that stock original products with excellent designs are single stores or small to mid-sized chains and are called specialty stores. In a metropolitan area such as New York, consumers with high incomes who would like their lifestyles to be more luxurious and more convenient show up at popular specialty stores looking for new and interesting high-quality products.

Basics Plus, a specialty store for household goods and everyday items, focuses on these types of needs and has opened two new stores in Manhattan this past September, expanding to a chain of nine stores. Zvi Cohen, the Israeli president of the company, came to the U.S. from Israel in 1989 at the age of 21 and opened this mid-sized retail chain. He used his experience in the army and it originated as a security company that dealt with locks and security cameras. While he was running the security company, orders began to come in from customers for products related to locks such as duplicate keys, as well as for safes and hardware goods and he came up with the idea of starting a business in the Manhattan residential area for these types of everyday items. Cohen explained that "The investors recommended developing a large national chain along the lines of Bed, Bath & Beyond, which is a major household goods/everyday item chain. But I thought that there was value in a community-based store that closely grasps the needs of the local population when opening a store in a densely-populated area."

There are more than 15,000 products displayed close together in the 230 square meter (2600 SF) store. All kinds of necessities, from duplicate keys, bicycle chains, and safes to everyday products for the kitchen, toilet, and bath, electronics such as vacuum cleaners and microwaves, everyday tools, and gift items such as decorative candles and postcards are displayed in the small space. The small store is distinguished by the art of display. For each product field, items are displayed with products of multiple price ranges and various designs, with relatively highly-priced products and designer items placed at eye level for ease of purchase by customers, less expensive lines at the bottom of the rack and mid-priced lines at the top of the rack, all of which takes into account the customer base, which is looking for new and high-quality products. The majority of popular items and staple goods available in major chains are carried and the price is typically lower.

President Cohen says that recently, it is Japanese products that have received attention. "I went to Japan last October at the invitation of JETRO. I visited a Wakayama manufacturer of kitchen and bath products and participated in a business meeting of companies that handle plastic-related products in Nara Prefecture, experiencing first-hand the excellence of Japanese products." At Basics Plus, we are actively buying products from companies that I met through this opportunity. "In particular, we are ordering monthly from the Nara plastic storage product 'Like It' series, which has an agent in the U.S. and responds quickly to small orders and requests. We also ordered vacuum bags from Taiyo Chemicals that had an exhibit at the JETRO Japan Pavilion at the January New York International Gift Fair (NYIGF) and which I had a business meeting with in Wakayama. Each of these items is being handled at all of our shops and has sold successfully." "Japanese products have wonderful designs, functionality, and quality and are just a little bit different. There is a lot of interest from the high-end customers who visit this store. However, there are still issues with the prices and the transactions could be made easier by finding a way to respond more quickly."

Mr. Cohen has given his seal of approval to the marketability of Japanese products in the U.S. At the same time, as an American buyer, he expects the Japanese companies to create a system for promoting transnational business. "Speed is essential in business in the U.S. If there is a base in the U.S., such as an agent who can be contacted, it will make buyers like me feel secure in doing business with that company. That is the key to a business importing Japanese products to the U.S."

Basics Plus: www.basicsplus.com (English)
Bed Bath & Beyond: www.bedbathandbeyond.com (English)
Like It: www.like-it.jp
Taiyo Chemicals: www.taiyo-chemicals.co.jp