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LBCC Trustees Hear Admin Answers, Vote 5-0 To OK $138,000 From Fed'l SBA Funds For Trade Trip To Bologna, Italy & Dubai (Persian Gulf) To Promote CA Cosmetics/Beauty Firms


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(March 14, 2013) -- At its March 12 meeting, the Long Beach Community College Board of Trustees voted 5-0 to approve using roughly $138,000 in federal Small Business Administration funds -- restricted to SBA business promotion purposes -- to enable 23 firms (none of which appear to be in Long Beach) to participate in trade shows in Bologna, Italy and Dubai (Persian Gulf emirate) to promote California cosmetics and beauty-item firms.


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The item, agendized as part of the LBCC Board of Trustees' "consent calendar" (no discussion unless requested) was accompanied by few details. LBREPORT.com pursued the story, learned and reported (here and here) that the sum would enable a CA presence at an "International Convention & Exhibit" in Dubai and the "Cosmoprof Worldwide Bologna Event" in Italy. Funds for this come from the federal Small Business Administration, which allocated roughly $1.6 million to the CA Community College Chancellor's office which in turn sent sums to LBCC which is part of a "Small Business Development Center Network" and a "Center for International Trade Development (CITD) [there are seven in CA].

Trustee Doug Otto removed the item for individual discussion and posed questions to LBCC Executive Vice President [and former LB Area Chamber of Commerce Board Chair] Lou Ann Bynum that allowed her to provide explanations for the expenditure.


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To launch audio and hear the entire Board item on-demand, click here.

During Mr. Otto's questioning, Ms. Bynum acknowledged that two LBCC staffers travelled to Bologna [LBCC's CITD Program Manager and LBCC Int'l Trade Specialist] but said the costs were covered by SBA funds or funds from program participants. VP Bynum also said the CA Community College Chancellor's office had "matched some of these funds as well, they had to put a match to it," but didn't indicate the precise sum. Ms. Bynum said that apart from the two LBCC staffers indicated above, no other LBCC staff or employees -- and no Trustees -- will be going on the trade related trip. VP Bynum said this is the second year LBCC has been part of such a trade mission to Bologna, Italy. She said nearly twice as many firms are taking part this year as last year and said this indicates increased business activity.

Mr. Otto didn't inquire, and Ms. Bynum didn't volunteer, how many -- if any -- of the firms were from Long Beach. [LBREPORT.com had reported that a quick internet check didn't indicate that any of the firms were from Long Beach.] Student Trustee Jason Troia asked VP Bynum if she was aware "that more than 25% of the businesses going on the trip are located in the the San Francisco Bay area?" VP Bynum didn't deny Student Trustee Troia's figure and replied, "We have businesses from all over the state of California. Most of them are in southern California but the CITDs focus on industry sectors and don't compete in those industry sectors so some of the industry sectors up north have businesses from southern California join their STEP program [State Trade & Export Promotion Grant program, authorized by federal legislation, offered to fifty states]."

The organizational structure for the trade mission is visible on its own website: www.californiastateofbeauty.com.

Mr. Otto's questions, and Ms. Bynum's responses, focused on job creation...and Ms. Bynum acknowledged that the jobs might not be in the Long Beach area. Ms. Bynum didn't indicate if LBCC offers any courses or classes for students in cosmetics or beauty industry specialties. [LBREPORT.com is unaware of any LBCC courses in these specialties.]


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Ms. Bynum noted that the state legislature had reauthorized the Community Colleges' Economic Development Workforce Program in 2012 via SB 1402 and quoted a section of it. To view SB 1402 in its entirety, click here.

Mr. Otto asked VP Bynum if LBCC's participation was part of the statutory and regulatory missions of Community Colleges in California and she replied that it is. [Further on this to follow separately on LBREPORT.com].

After Trustee Otto led Ms. Bynum through this colloquy, Trustee Mark Bowen said that he is "I'll be honest. I've listened to the arguments in favor of these things. I'm not convinced." Trustee Bowen said if there were were a way to use the money to keep classes open he would definitely vote against the trade mission "but there's not."

Trustee Jeff Kellogg thanked LBREPORT.com for having covered the issue...and providing an opportunity for LBCC to explain its work. He noted that LBCC's mission statement includes workforce development. ("Long Beach City College promotes equitable student learning and achievement, academic excellence, and workforce development by delivering high quality educational programs and support services to our diverse communities." Adopted by LBCC Trustees, Aug. 23, 2011)

"There's a fundamental question about why are we involved in it to begin with...We're delivering to help local businesses, to expand, grow businesses, etc., that's one of our missions," Trustee Kellogg said, and added. "I can't be upset with a program that's been recognized for doing all the things during very difficult economic times and being successful and being honored for being successful...Other community college in California don't have the ability to deliver like we are able to do so in this one area, which is not your traditional classroom, but nonetheless it is teaching, it is helping, and it's actually nice to have the opportunity to talk about the overall workforce development and what we do to serve the community and help the community..."

Trustee Otto moved approval of the item and immediately before the unanimous vote said:


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Trustee Otto: I find it hard to understand that people would say, and I've heard this in the community over the last couple of days, that Long Beach City College should not be doing this kind of work. That economic and workforce development is not something that we should be involved with, that that should be left to the Chambers of Commerce or business associations. Well the way that this works is that the legislature says this is what your mission is, and these are the things that you are expected to do.

And as a result of that, we try and devote resources to what our mission is and that includes economic and workforce development. In fact, we've established ourself as one of the premier economic and workforce development programs not only in the state of California but really nationally, and historically we've been very proud of that...

It's part of what we're expected to do, it's part of what we do well, and what I don't understand is the idea that we shouldn't do it because some people think that we should have a different mission. If we need to change the mission, then go to the legislature. Don't come to the Board and say 'don't do that, do something else'.

As Mark [Bowen] said, the monies for these programs don't cost a red cent to the instructional programs that we do. It's part of what we do and that's why I made the motion and support it.

The $138,000 sum approved by the Trustees is "restricted" to the SBA-desired trade purposes, meaning Trustees had no ability to allocate any part of the sum to LBCC instructional or course items.

LBCC's Center for International Trade Development (http://www.lbcc.edu/CAED/citd.cfm) (website text) "provides a comprehensive portfolio of import and export services to Southern California businesses. Among our affordable programs and services are trade leads, trade missions and trade show assistance. We serve established businesses as well as those new to international trade. The Center for International Trade Development (CITD) was developed and is managed through a partnership between the Long Beach Community College District and the California Community College Chancellors Office (CCCO)."

LBCC has previously provided us (and we published) this release describing the Bologna, Italy and Dubai trade trip:

[Release text] 28 Beauty Brands Selected for Special California Export Initiative

Exclusive California: A State of Beauty Pavilion at Cosmoprof Bologna & Beauty World Dubai Look to Take Brands Global

Long Beach, CA (January 23, 2013) -- Building upon the initial success of its launch at Cosmoprof Bologna in March 2012, the 11 participants of the California: A State of Beauty Pavilion have since generated more than $13 million in export sales, entered 27 distinct markets and created 54 jobs in just nine short months. Organized by the Center for International Trade Development (CITD) in Long Beach, this export initiative has selected 23 companies representing 28 brands to be part of their exclusive 2013 California: A State of Beauty Pavilions at both Cosmoprof Bologna and newly added Beauty World Middle East in Dubai. During the application process, CITD looked for California-based beauty brands that wanted to attend these events at a highly offset rate and grow their businesses globally and were capable of going global.

"Working with CITD Long Beach in 2012 was the right decision for our company, and we are excited to partner with them again for the new trade missions in 2013. Their services gave us and other small businesses an opportunity to collectively present and showcase our products internationally. Furthermore, CITD Long Beach’s resources helped to save on the cost of attending an international trade event, as well as allowing us to focus wholly on conducting business while at the show," Eve Yen, Owner and President, Diamond Wipes.

The Benefit of Participating in the California: A State of Beauty Pavilion

Small and medium sized businesses would typically not be able to attend a major foreign trade event due to the costs associated with entry, creation of a booth designed to draw attention, travel and logistical support. By creating the "California: A State of Beauty Pavilion," CITD -- Long Beach selects companies that have the ability to succeed overseas and assists them with the costs of exhibition at the shows. The Pavilion concept is centered on the California lifestyle, but also provides dedicated and customized booth space designed to attract retailers and distributors. Furthermore, CITD -- Long Beach has also partnered with other organizations to provide support with export compliance and buyer matchmaking, so that participants can increase their international sales.

Funding for the trade missions is made possible by the State Trade Export Promotion (STEP) grant from the U.S. Small Business Administration as part of President Obama's National Export Initiative (NEI).

The Opportunity

There is a tremendous desire internationally for U.S. made products especially cosmetic products from California, as it is looked upon as a premier region synonymous with high quality and effective skin care products. Extensive opportunities exist both in the Middle Eastern and European markets. In fact, Euromonitor’s research shows that the European share for the Cosmetic and Toiletries (C & T) Industry accounts for nearly half of the market when comparing the world’s top economies -- more than the U.S. and Japan combined.

In addition to the European market, the CITD Long Beach believes significant growth opportunities exist in the Middle East, so much so, that from the 27 distinct countries entered by the 11 participants from 2012, the majority were Middle Eastern markets, which led to Beauty World Dubai as a natural choice for a second CITD trade mission.

Participating Brands

The California: A State of Beauty Pavilion seeks to curate a selection of cutting-edge, innovative products in hair, nails, skin care, cosmetics, spa products and fragrances.

PERFUMERY & COSMESTICS
Chrislie Formulations (Lashem & Nailuv) www.chrislieformulations.com | Diamond Wipes (La Fresh®) www.lafreshgroup / www.diamondwipes.com | EnvyDerm Cosmetics www.envyderm.com | Fresh N’ Fruity | INEKE www.ineke.com | Jon Davler (Ioni Cosmetics & LASplash) ionicosmetics.com / wwwlasplashcosmetics.com | Millionaire | Mirabella® www.mirabellabeauty.com | NYX www.nyxcosmetics.com | Profusion Cosmetics www.profusionconsmetics.com | YOSH www.eaudeyosh.com

HAIR
Cabella www.cabellahair.com | It Factor www.itfactorbeauty.com| Johnny B. Haircare www.johnnybhaircare.com | Zerran Hair Care www.zerran.com

NAILNubar www.bynubar.com

SKIN CARE
Lunagenics www.dermaestheticsusa.com | Kimberly Parry Organics www.kimberlyparry.com | Roots Organics: www.roostsla.com

SPA PRODUCTS
Biotone www.biotone.com | Daily Concepts® www.dailyconcepts.com | Laguna Candles www.lagunacandles.com www.californiastateofbeauty.com.

About the CITD: The Center for International Trade Development (CITD) hosted by Long Beach City College helps companies enter new markets, grow and enhance their international sales through specialized consulting in international trade. The CITD offers seminars designed to give small business owners the tools to take their firms global; consulting services with legal, distribution, logistics and customs experts; market research; and trade missions. Services are offered in conjunction with the Los Angeles Regional SBDC Network and the Long Beach International Trade Office, which together provide a comprehensive portfolio of import and export services to Southern California's small businesses, at no cost.

No federal grant funds are being used for any entertainment costs associated with this trade promotion or export marketing activity.


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