LOOKING GOOD: The E-commerce Cluster

With the seemingly perpetual news about a slow economy, some businesses in Northeastern Pennsylvania are defying the popular opinions and capitalizing on new, growing markets.

Area companies such as BabyAge.com, Vintage Tub and Bath, Pepperjam.com and others like Solid Cactus and Petsunlimited.com serve customers all over the world through Internet marketing, or so called E-commerce. They’ve shown significant growth over the last few years and look forward to the future with optimism, according to company executives.

Kristopher Jones, founder, president and chief executive officer for Pepperjam, said his company is part of an “E-commerce cluster” based locally. He left a comfortable government job working for U.S. Rep. Paul Kanjorski, D-Nanticoke, to pursue his idea for capitalizing on the potential of the Internet.

While earning his law degree at Villanova University, he recognized the potential opportunities available online through the benefits of social networking.

A native of Forty Fort, he began Pepperjam in 2004 using his expertise in marketing. One of the first businesses to locate in the Wilkes-Barre business incubator off Public Square on South Main Street downtown, the company quickly outgrew its original space and now occupies the entire third floor of the building.

Pepperjam’s success contradicts the “naysayers,” Jones said. He makes a point to tell the story of how it went from a good idea to an internationally recognized and respected Internet marketing firm in about six years.

“We are living the dream,” he said. “It’s a true rags-to-riches (story),” he added.

Operating out of the region offers access to a motivated and available workforce, Jones said. Pointing to 13 colleges and universities in close proximity, he said Pepperjam can access upcoming professionals and fight the “brain drain” of talent from the area by providing good opportunities here.

He said he immersed himself in the local educational community to tap into the prospect pool. Pepperjam offers careers to students to give them a way to stay in the Wilkes-Barre area, he said.

Jones said the Net will continue to change business and he has “never been more excited” about the future. Pepperjam will continue to call Northeastern Pennsylvania home.

Jack Kiefer, co-founder, president and CEO of BabyAge.com, located in the Hanover Industrial Park in Hanover Township, said the location “provides optimal access to local shipping hubs and Routes 80 and 81.”

The business moved in 2004 from New Jersey to Pennsylvania, which offered an abundant and talented workforce and tax incentives from the Pennsylvania Keystone Innovation Zone, he said.

BabyAge found a way to fill a necessary niche in the market. Kiefer said the company became established by selling “core gear” for new parents, such as strollers, car seats and baby furniture. It now offers more than 20,000 product items, he said.

“The baby market is fairly ‘recession resistant’ and has been minimally affected by economic conditions,” he said.

“By maintaining consistently competitive pricing, BabyAge.com continues to offer a superior product selection with fast processing and delivery. Increasing customer outreach initiatives, such as the new, interactive Baby Registry and local BabyAge.com Outlet Store are helping to build a loyal customer base and increase brand recognition, on a local and national level,” Kiefer said.

Mike Deckman, internet marketing manager for Vintage Tub and Bath, located in Mountain Top, said successful companies must be “adaptive to their environment” to identify opportunities.

Vintage Tub and Bath started in Hazleton about 12 years ago, selling revitalized claw-foot tubs, he said. Then the management realized the potential of selling over the Internet, and now the company’s sales top $16 million and are growing “exponentially,” he said.

Competitors have “fallen off the map” during the recent economic downturn while Vintage Tub and Bath continues to exceed sales goals.

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