Gold Rush

In 1848, James Marshall discovered gold at the American River in California. Concerned that gold diggers would interrupt his current building project located at the site of the discovery, he determined to keep it a secret. Another Californian, however, had a different idea.

Sam Brannan did not mine, but he knew an opportunity when he saw one. He was a merchant. After running through the streets of San Francisco with a jar of gold dust, proclaiming the discovery, Brannan sat back and watched his fortune amass. As the opportunists rushed to the area to dig, he sold them shovels.

I’m not sure what ultimately happened to these two gentlemen, but I believe their different reactions to the same event teach an important business lesson. Marshall was stuck on a previously charted course. He did not recognize when a bigger opportunity came along and ultimately missed out on what could have been financial freedom.

Brannan, on the other hand, seized the opportunity and ran with it. He took something that was familiar to him — selling goods — and adapted it to capitalize on the new situation.

This issue we publish our Top 20 Global Beauty Company report. As you read through the pages, look closely at the regional sales numbers. What you’ll find in many situations is exponential growth in emerging markets. Shiseido, for example, saw Chinese sales growth of 33 percent in local terms. Avon reported a 70 percent sales increase in Russia. And Henkel announced sales growth in Latin America of 27.5 percent. These are only a few of some very impressive sales numbers within the article.

What’s the lesson here? I believe that many of these companies have chosen to be a Brannan, so to speak. They recognize the potential in the world’s emerging markets. They are excited about the area, they are investing in the developing regions — they are going for the gold.

Even if you are from a small or mid-sized company, it’s something to think about. Is there any way your company can jump on the bandwagon and seize the opportunity? Or are you going to be a Marshall, worrying about the current global climate, yet resolving to keep things the same?

Enjoy this issue! We hope it’s both informational and inspiring.

Leah Genuario
Editor
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