Dollar stores are flush with shoppers these days, and they have a new clientele, people who never shopped there before. For years, most dollar store shoppers were poor people and seniors, but now the affluent have taken to shopping their neighborhood dollar store as well. As reported by the New York Times, affluent households are driving the current growth. In fact, 22 percent of the dollar store market consists of customers making over $70,000 per year, which is the fastest growing segment.

These new dollar store customers are employed and have money, but are afraid something might happen and so they’re trying to save. These are uncertain economic times; the stock market losses alone are cause for concern. Consumer research firms report shoppers are holding back on spending because of the uncertain future. Such conditions bode well for the dollar stores where people fill their cart and spend little money.

The three national dollar store chains are Dollar General, Family Dollar and Dollar Tree; however, there are also the independents and smaller chains like “99 cents only” stores. TopTenWholesale client Wally Lee of JC Sales, is director of marketing and technology for one of the large warehouse suppliers to independent dollar stores located south of Los Angeles. In fact, Mr. Lee was recently quoted in a feature article on dollar stores in the New York Times, wherein he gave some sage advice for entrepreneurs wanting to open a dollar store. Not surprisingly, Lee said a good store manager who loves to talk to people is a must, and he suggested having a Spanish speaking manager in some stores.

Evidently, the independents can flourish because they don’t have layers of corporate hierarchy to go through and can make changes quickly as required by the market. So the managers can tweak the inventory, change displays and try a number of different tactics on the fly to see what works without having to get corporate approval.

The independents get a supply of cheap goods from various sources, including leftovers from the corporate dollar stores such as distressed goods, closeouts, overstock, salvage merchandize, department-store returns, liquidated goods, discontinued lines, clearance items, ex-catalog stock, freight-damaged goods, irregulars, salvage cosmetics, test-market merchandise and bankruptcy inventories.

They also get goods from the secondary market coming from retail chains below the dollar-store channel, including unsold merchandise from Big Lots, which sends it down the chain to the liquidation level. To ensure a good supply of quality goods, JC Sales plans to start a pilot program with Via Trading, a wholesale supplier of overstock and clearance merchandise specializing in the sale of wholesale liquidations, wholesale overstocks and customer returns.

The new economy has been a boon for dollar stores and their suppliers, including the wholesale distributors and liquidators. Sales have been increasing with the three publicly traded chains up 5 percent in the first quarter. On the other hand, stores like Wal-Mart have been in decline for the last two years. Because of that, dollar stores are sprouting up all over, despite the fact few businesses are investing in building, equipment or jobs.

Dollar stores thrive because they have low store rents, buy cheap products, employ small staffs and pay low wages. Their profit margins have always been low, and now they must compete for a lower disposable income for most shoppers. As a result, they must innovate to survive and thrive.

That’s where good management can help, which the corporate chains can provide. There’s also an art to displaying merchandise to give the illusion that even a small display of goods looks plentiful. It’s an art to make the store look like it’s packed with merchandise, with high shelves along the walls. All empty space is filled with products or signage and yet it can’t be too cluttered. Last, but not least, the store needs to make it easy for shoppers to stroll up and down the aisles to see everything on display so they can buy on impulse.

The FDA recently announced a change in labeling requirements for sunscreen products. The reason for the new rules is to help consumers understand the confusing claims on sunscreen products by specifying what sunscreen manufacturers can and can’t say on product labels in protecting consumers against the sun. Some products on the market already have UVA and UVB protection. For instance, you can get sunscreen closeouts with UVA/UVB protection at Dollar Days, which offers many kinds of UVA/UVB-protected skin creams as well.

The new FDA rules are meant to end false claims about sunscreens being waterproof and sweat proof, as well as claims that sun blocks offer protection against skin cancer and aging. The new requirements will affect the way makers of sunscreen can label and market their products.

The FDA will require sunscreens to protect equally against two kinds of radiation from the sun: UVB and UVA, in order for the label to say the lotion offers “broad spectrum” protection. UVB rays cause sunburn, and UVA rays cause wrinkles (premature aging) and contribute to skin cancer.

The rules will go into effect in 2012 and will also prohibit sunscreen manufacturers from claiming their products are waterproof or sweat proof because these claims have been proven false. However, manufacturers will be allowed to claim the amount of time in minutes that the product is water resistant, depending on product tests.

The FDA has been considering these rules since the late ‘1970s, when sunscreens and lotions were used for tanning rather than to protect skin against sun damage. Only sunscreens with a sun protection factor (SPF) of 15 or higher will be allowed to say they help prevent sunburn and reduce the risks of skin cancer and skin aging. Furthermore, sunscreens that are not broad spectrum (SPF between 2 and 14), must carry a warning that the product does not protect against skin cancer or premature skin aging.

Some manufacturers may plan to introduce sunscreen products with SPF numbers as high as 70, 80 or 100. However, the FDA wants a maximum SPF value of 50+ because it says anything higher will not offer significant additional protection.

The American market for sunscreen lotion runs $680 million per year. These new rules will significantly change a market that has been growing rapidly due to our aging population and increasing knowledge and concern over skin cancer. The final regulations are quite different from the 2007 FAA proposal that would have created a star-based system for UVA protection. In that proposal, sunscreens would have provided an SPF number for UVB protection and one to four stars for UVA protection. However, the proposed labeling was considered too confusing, and the Agency went with the current rules governing “broad spectrum” sunscreen lotions.

Some late-breaking news making headlines points to Indonesia, as an independent retailer and manufacturer of cosmetics – perhaps bringing back memories of the cosmetic industry mogul Bobbi Brown – has brought her cosmetics company to a recent $33 million public offering, after four decades of development and marketing from her parent’s garage at home.

It’s a highly inspirational story, and one that will surely impact the wholesale cosmetics trade for years to come, as the perception of high-end cosmetics shifts to include products with humbler beginnings.

Martina Berto’s company is expected to be the first to list on the Indonesia Stock Exchange (IDX) in 2011.

In other news, Dita Von Teese wants her own make-up line to take off.

The famed burlesque dancer is setting headlines ablaze with more than just racy photos this year, as she launches a concept that will undoubtedly do much to open up the playing field for smaller companies to compete with established international brands in the next decade.

She said: “I want to do my own make-up line, because I feel like things are missing in the world. I’m constantly trying to mix up colors. Also, I mix my own body make-up.”

Part of the Von Teese strategy is to apply branding with a nostalgic twist. In a once-booming market that was momentarily upset by economic lows in 2008-2009, then renewed through recovery, consumers have become much harder to sway with the regime of old and staid brands that have dominated the industry for decades. She has also expressed dismay at companies that are hesitant to try branding through lesser-known personalities, as opposed to names like the Kardashians or Victoria Beckham, for example.

When asked for her opinion, Stacy Xu, Cosmetic Research Coordinator at ZheDa University, said “In short, it’s time to freshen up a bit. This has immense implications for smaller companies that want a bite of the apple.” Stacy has been researching and contributing her outlook on trends in Chinese cosmetics for the past five years, and hopes to continue her work as a full-fledged professional in the industry in China.

Yet another approach being employed by cosmetics suppliers is the appeal to charitable causes. International brand M.A.C. is engaged in a fully orchestrated company-wide demonstration of their commitment to AIDS victims and their loved ones, through a display of solidarity to commemorate World AIDS Day.

In New York City, thousands of Cosmetic Makeup Artists are wearing a red ribbon to signify the campaign, and more than 1,400 M.A.C employees in 120 North American cities and 30 countries are also joining the demonstration, as consumers watch closely to see which companies get their attention.

It’s perhaps a sign that the wholesale industry is taking a larger chunk of their market share, and now all the stop are being pulled out, in order to sustain profits that were quite healthy for a long time.

Those who are dealing with imports are going to need to do their homework early, as the process of establishing agreements and trade specifics can be a time-consuming affair, especially in the beginning. It’s of utmost importance to get sources verified and quoted by the middle of the year, so that placing the actual orders and beginning the process of shipping can come with an automatic margin for error that allows re-shipments from distant countries, or special rates that may be given to buyers who accept slower or more flexible shipping schedules.

It should go without saying that suppliers appreciate early orders for goods, since it keeps the wheels of their companies moving, and encourages more detailed dialogue between them and their customers, without the crunch of holiday time making things feel hasty or under pressure.

As the holiday season approaches, it becomes increasingly expensive when securing rates for shipping, and it becomes equally difficult to make good on delivery time lines. Recent economic headaches for everyone in the business has also created some additional obstacles, such as cargo with reduced capacities, and special schedules that don’t allow too much flexibility. The most obvious of all changes to anticipate is the price hike that comes with related services, not just the actual shipping.

Great importance is placed upon security these days, and while there are many legitimate and secure methods of transacting shipments from other countries, it’s a safer and far more effective strategy that includes the luxury of time, since mistakes can be caught early, and hopefully corrected without much incident. Time and advance preparation oftentimes affords the luxury of sampling goods at leisure, too.

Being early also allows buyers to take the time and effort to provide purchase orders and payment information using Letters of Credit, credit cards, and other secure methods, thus ensuring a stress-free shipment process.

It may seem rather obvious, but the storage facilities that hold containers and goods that are being prepared for their voyage to a new home are relatively easy to fill during the off-season. Prices generally reflect the lag in business, and companies that are dealing with goods that can sit and wait for some time will benefit greatly from not paying a premium for shipping.

With delivery and shipping dates confirmed, the time is right for followups and further confirmations to be made, even as the goods are in transit. Typically, this is the stage where unexpected changes and events can make trouble, and only the ones who order early are going to avoid the excessive pains of clearing matters up under the deadlines of hundreds other customers who are waiting for their orders as well. Being certain to keep tracking numbers at the ready, and promoting the first shipments of goods will perhaps create incentives for customers to buy early, giving stores a great boost to early numbers for the year.

Containers of goods will be flooding into ports, and ground shipping will be proportionatly greater as well. This could be a good time to consolidate shipments, in order to make the process not only less expensive, but to make the most of an opportunity to take control of the situation, and put everything together for greater convenience. While shaving off a few dollars will be worthwhile, it’s difficult to put a price on peace of mind.

The last few months of the year – generally the last quarter – is the time to focus completely upon sales and marketing, without the distraction of supplies and logistics to make the environment anything but conducive to selling. With the proper panning and preparation, companies that stocked up early will be at a tremendous advantage over the ones that procrastinated and allowed their holidays to be filled with stress and worry. Customers can smell fear in the air, and nothing is more fearful than a business that hasn’t covered  its bases, while watching competitors ring up sales at the register through the entire holiday season.