COMMENTARY: INTRODUCING
"BENNY DA BUYER"
CLN has added yet another new column. I have long been
concerned about CLN becoming a chain-bashing newsletter.
There are lots of vendors willing to give their side of the story,
but not many chain employees willing to respond in print. (Many
retailers have a policy that forbids mid-level employees from
talking to the press.)
I try to be fair, which means reporting both sides of a given issue.
Often I've found disagreements aren't so great when both sides fully
understand each other.
So I have been searching for a chain employee who is willing to
write. I finally found one, but he/she doesn't want his/her name
known any more than "Vinny Da Vendor" does. So we thought
"Benny Da Buyer" would be an appropriate nom de plume,
especially since Benny will often be answering (debating?) Vinny.
Anyway, I hope you enjoy Benny's column.
NEW COLUMNS THIS ISSUE
"Benny Da
Buyer".
An anonymous chain store buyer gives his side of the issues. Here
Benny answers one of Vinny's complaints.
Business-Wise.
Why do some of our retailers and vendors survive, when so many fail?
A tentative answer.
Kate's
Collage. You're not like Sammy Sosa, are you? Kate tells you
about a club you don't want to join.
Legal Q. & A.
The answer to a question often asked of stamp retailers: When can
you use copyrighted designs in products you sell?
THE INDUSTRY AT MID-YEAR: AN
ANALYSIS
Memory/Paper/Stamps. Status: Still the dominant
category, by far. ACCI was heavily scrapbook oriented, and HIA
probably will be, too. While the category is still growing in many
places, increased competition (retailers and vendors) are slicing
the growing pie into smaller and smaller pieces ... Cardmaking is
growing ... The once separate worlds of scrapbooking and stamping
are merging ... The embellishment trend has provided traditional
non-memory vendors with opportunities to develop products for the
market ... Challenges: Continue to attract new scrappers ...
We'll begin to see less-professional retailers and some vendors go
out of business due to competition. Let's not assume that means the
category is beginning to decline and thus curtail new product
development ... The category needs more higher-ticket items,
especially for the true enthusiasts ... Make sure digital camera
users print photos and put them in albums, not simply store them on
a computer.
Beading/Jewelry. Status: On a strong growth curve. The
higher-end glass beads are attracting women who are traditionally
not crafters. The wide variety of beads help the category appeal to
kids, tweeners, teens, and adults. The category may be stronger than
some traditional retailers think, thanks to the increase in the
number of independent bead shops ... Challenges: Need more books,
project sheets, and classes on basic jewelrymaking ... Solve the
shoplifting problem, especially for unpackaged open stock.
Yarn. Status: The pr efforts of the Craft Yarn
Council of America and the wonderful new yarns developed in
recent years have attracted a new, younger consumer ... Challenges:
Many editors are probably growing tired of yet another celebrity
saying how she likes to knit and/or crochet, and most major
newspapers have reported on the category's resurgence, so it may be
difficult to maintain the publicity barrage.
Painting. Status: The category needs a shot in the
arm. The influx of well-painted readymade imports has hurt, and the
demands of the chains have cut the vendors' profit margins to the
point where they have reduced their educational programs. Who's
consistently teaching painting these days? The fine art end of the
business is flat, too ... Challenges: Create new decorative
painters who, once hooked, will spend lots of money on paint,
brushes, surfaces, etc. ... Introduce new, more modern designs to
appeal to younger consumers ... Defend your real estate -- don't let
retailers reduce shelf space allocated to art materials.
Needlework. Status: Seems to have divided into two
industries -- big companies selling to large retailers, and smaller
vendors selling to shops ... Challenges: Large and small
businesses need to learn there is strength in unity ... Like
painting, needlework needs new designs and to defend itself against
efforts to reduce the size of stores' needlework departments. General.
Judging from the recent ACCI show, the VAST majority of new product
development efforts are in memory. That's great for memory, but
dangerous for the overall industry. Chains need to make it less
difficult for vendors to bring new products to market, and vendors
need to give better service to independents.
HIA SURVEYS HISPANICS, SIZE OF
INDUSTRY
The Hobby Industry Assn. has announced the results of the
first study of crafting by Hispanics, now the largest and
fastest-growing minority group in the U.S. Hispanics spend $1.9
billion on crafts annually. While that is a small piece of the
overall craft market, this segment will increase, given how fast the
Hispanic population is growing.
At first glance, a striking difference is where Hispanics shop for
crafts. Craft Fairs/Flea Markets ranked highest among respondents at
31%, followed by Drugstore/Supermarket (20%) and Housewares/Home
Goods (15%). Only 12% shop at a local craft store. But the study
surveyed Hispanics in Chicago, Los Angeles, Miami, New York, and San
Antonio. Most Hispanics live in the "inner city" and most
craft stores are in the suburbs.
The 2002 Size of Industry Study pegs the industry at $29
billion. While some may question the methodology that produced that
overall figure, the Study has a wealth of interesting data.
For example, the Study divides crafts into four categories --
Florals, General, Needlecrafts, and Painting/Finishing. The General
category's percentage, 43% of the market, remained the same compared
to 2001. But given scrapbooking's rise during that time, the
implication is that other categories under the "General"
umbrella have declined.
The Study also was a reminder of the 80-20 rule. "Heavy
Users" comprise only 25% of the crafting population, but they
buy 77% of the supplies. A healthy sign for the industry: The
"Heavy Users" are buying more than ever. In 2001 they
bought only 69% of the products.
The results of both studies are available at www.hobby.org.
SCRAPBOOKING ATTRACTS THE AD
COMMUNITY
Ad Age, one of the premier trade magazines for the
advertising/marketing industry, has discovered scrapbooking. The
July 29 issue announced that scrapbooking is a hot consumer trend.
(Comment: Well, DUH!)
The article interviewed Ellison's Sandi Genovese, host of the
scrapbooking show on the DIY network, and cited Unity Marketing's
research indicating scrapbooking is a $1.2 billion market. (To read
a report on the study, go to click HERE.)
Among the highlights: The article stated the category has
attracted major consumer companies, such as Eastman-Kodak (because
scrappers buy 20-30 rolls of film per year, compared to eight for
the average family), and Hewlitt Packard (because scrappers buy
expensive printers, scanners, and paper) ... Named Creating
Keepsakes, which has increased its frequency from six to 12
issues/year, as the leading scrapbook magazine ... Quoted Unity's
Pam Danziger: "I think it's going to continue to morph by
moving from the crafting ghetto into the mass market."
(Comment: Gee, did you know you worked in a ghetto?) To read the
entire article, visit http://www.adage.com
and type in scrapbooking in the search engine.
RAG SHOPS NAMES NEW OFFICERS
President Jeff Gerstel announced John Alberto had been named VP
of Store Operations, replacing Evan Berenzweig who resigned this
month. Alberto joined Rag Shops in 2002 as a District Manager.
Previously he worked for the Expo Design Center division of Home
Depot and as a VP of Pergament Home Centers.
Daniel Anderton was named Sr. VP/CFO. Anderton had worked at
Lechters as Sr. VP/CFO and as VP for Caldor and as VP/Treasurer for
Petrie Retail.
The company also announced that Chair/CEO Stanley Berenzweig
purchased 234,675 shares of the Rag Shops' common stock in a private
party transaction from Evan Berenzweig.
COPYRIGHT LEGISLATION UPDATE
As various bills wind their way through Congressional committees,
a new survey published by the Pew Internet and American Life Project
reveals that two-thirds of users who download music don't care about
copyright laws, according to the Associated Press. (Comment:
We suspect the percentage of crafters who ignore copyright laws is
about the same, or higher.) It is estimated that 35 million American
adults use file-sharing software; that's about 29% percent of
Internet users.
Meanwhile the politicians are arguing, of course, and sometimes it's
not the typical GOP vs. the Democrats. Newsweek reported
Senator Orrin Hatch (R, Utah) wants to destroy the computers of all
those who illegally down- or up-load copyrighted material.
Meanwhile, fellow Republican Senator Norm Coleman of Minnesota said,
"Theft is theft, but in this country we don't cut off your arm
or fingers for stealing," the Associated Press reported.
THE FUTURE OF SCRAPBOOKING
Sandy Redburn of Crafty Secrets Publications, a Canadian
based publisher, has switched her emphasis to scrapbooking.
"Our biggest customers used to be crafters and decorative
painters with our Heartwarming Expressions books," Sandy
wrote, "but I think with the global reach of the Internet and
the power of the almighty dollar-store, handcrafted overseas items
have hurt the crafting and painting industry."
So she switched, and gave these reasons:
1. No one can copy your memories!
2. It provides the greatest guilt trip. What good mother
would not want to scrapbook her children and their family memories?
3. It provides a way for women to connect in a group, build
friendships, and still feel they are doing something worthwhile and
positive for their family.
4. Scrapbooking can encompass any skill level and age,
gender, and style.
5. Scrapbooking allows people to feel creative, while
enabling them to create lasting memories and honor the people they
care most about.
6. Every major company in the craft industry is finding a way
to tie into the industry and the biggest companies have invested
enough money to be in it for the long term.
(Note: Sandy omitted another major reason: According to
photography trade associations, U.S. citizens take approximately 9 billion
photos each year. They have to do something with them, don't
they? However, some industry veterans who have seen decoupage,
macrame, cross stitch, and fabric paint dominate the industry may
not be so optimistic. Have any thoughts -- on or off the record --
on the future of scrapbooking? Call Mike Hartnett at 309-925-5593 or
email mike@clnonline.com.)
MORE THOUGHTS ON ACCI PRODUCTS
(Note: We asked Ellie Joos, a top design/marketing
consultant, to walk ACCI's new exhibitor area and tell us what
caught her eye.)
Just when you thought you saw everything "scrapbook", I
did see some creative and terrific new products. I loved the
"tin" squares (made from aluminum) from Artistic
Expressions and the lovely overlays with printed messages.
Cardeaux Trimmings had very nice decorative laser cuts and
trimmings. I saw some very cute, original eyelets from the Eyelet
Factory.
I flipped for the new Cut and Fold templates for woven
designs with paper and Fanci Folds sheets from American
Traditional Design. This company meant business when they
came to this show with over 275 new sku's of product, continuing the
re-invention of the company from stencils to sooo much more.
According to the company, this was their best ACCI ever, almost
rivaling the successful HIA show they had in January!
Other products: Mango
Moon offered quilt kits and hand-carved dolls made by women
in Indonesia; a portion of the profits go to a women's shelter
there. Birdcage Books
-- I loved their books and art games which were not only gorgeous,
but educational, too.
Blumenthal expanded
its line of Favorite Findings, including wood designs and
lovely new Mary Engelbreit charms. Canvas
Concepts offered ready-to-use canvas to paint for colorful
wall decor, and also showed application for scrapbook wall pieces. Rit
Dye offered new, larger 1- lb. containers of dyes in 19
great colors.
(Note: Ellie is president of Ellie Joos and Associates,
a design/marketing consulting firm specializing in our industry. To
contact her, call/fax 908-459-9269 or email eleapple@hotmail.com.)
A wholesaler emailed his thoughts on the show: "I thought it
was a good show, but I really wasn't blown away by anything new. And
a lot of vendors I spoke with seemed a little disappointed with the
foot traffic (then again, they're not into scrapbooking), but
they're trying desperately to hit that market, if they can. Pepperell
had some make-it/take-it charms or bracelets and Bagworks
has a new purse line, Additions. For more on Bagworks, click HERE.
"The only real news I have from the show is that we're seeing a
few of our vendors come out with bulk packs," he added. "S&S
has the entire Gee-Perz! line, which now includes crafts for
two kids, as well as crafts for four. Pepperell and Roylco
have some fairly new pre-packed bulk packs for kits of 10-24
projects."
(Note: To read evaluations of other ACCI show products, click
HERE.)
EMAIL: ARE VENDORS IGNORING
INDEPENDENTS?
I am an independent store owner in metro NY and have been very
frustrated with the poor customer service I've been receiving from
some of my larger vendors.
Now before I go any further, I have to say that the customer service
I received at ACCI was above average (and I've been attending
for over 8 years). Perhaps the vendors are finally feeling those
"hunger pangs" of not having so many customers fawn over
them. I don't know.
Regarding ACCI, I was very impressed by the number of great line
extensions. Now I am a stamping and scrapbooking store, so obviously
it was all about paper and embellishments -- a winning combination
for me, although I did hear rumblings from the non-paper-oriented
stores.
Back to my thoughts pre-ACCI: I am so frustrated by vendors who
think it's all right to be 4-6 weeks behind in shipping. And I'm not
talking about new product introductions, I'm talking the same ole
stuff they've had in their catalogs for years.
I was also shocked that a stamp company kicked-back my order because
my account was "inactive." Yes, I hadn't ordered in three
years. (There wasn't anything great that I wanted, to be honest. And
anything I would have considered buying was already on sale at A.C.
Moore and Jo-Ann's.) So I asked the customer service rep
to "reactivate it." She said I would have to reapply as an
account and fill out all the forms again. I told her we had not
moved, changed phone numbers, address, owners, fax numbers, nothing.
All I got was "sorry." So I asked her to talk to her
manager and explain that I would be canceling my $200 order unless
my account was reactivated. (I wasn't even asking for net 30; I had
attached my credit card info and everything.) The answer again was,
"sorry."
Now, if I had a customer walk through my front door after three
years and proceed to spend $200, I would welcome her with open arms.
Am I missing something? When did my business become so
inconsequential to these vendors? I really feel there is a
connection between this lack of service and how the chains have
started ordering from these very same companies.
I do think the chains play an important role in the growth of my
business. It is there that people first see magazines that have my
store listed as a place to purchase scrapbook and stamping products.
It's also a jumping-off point for a lot of beginners who then become
enamored with the craft.
FYI: I did write a letter to the vendors who are taking too long to
ship my orders. (I heard one company even had a manager's meeting
about the topic.) As for the company with whom my account is
inactive, I canceled the order and told them I wouldn't bother them
with any more orders in the future. -- Jaime Echt, The
Crafter's Workshop, Elmsford, NY
RANDOM NOTES, RANDOM THOUGHTS
1. In my last issue I reported that a manufacturer was
looking for a package designer, and asked if I knew of any. I
didn't, and asked you kind readers to pass along any names. Well, I
was swamped with names of graphic designers, which I passed along to
the amazed manufacturer, who now has lots of designers to choose
from.
Some of the vendors who passed along names of the package designers
they've used might very well be competitors of the company that
contacted me. It's another example of how friendly this industry is.
Oh, it may not be as friendly as it used to be, but it remains much
friendlier than most.
This designer example reminded me of one of my favorite compliments
for Creative Leisure News. "CLN is like the
industry's town square, where everyone can come and discuss whatever
they want."
That's exactly what I'm aiming for, whether it's a discussion about
trends, retailer-vendor relations, or someone just needing help. So
all you paid subscribers out there, if CLN can help in any
way, just let me know.
2. I always wondered where she bought her glitter: The
Associated Press reported that Cher was shopping at a Michaels
store before her recent concert at Wright State U. in Ohio. That
reminds me, over the years I've known two retailers who claimed they
did a nice business with strippers who would buy glitter, sequins,
feathers, etc., for their costumes.
3. Help! My wife, Barbara, is executive director of
Friendship House, a non-profit social agency that operates a soup
kitchen, food pantry, job training, after-school care, and other
services to the poor in Peoria, IL. She has an idea for a
fundraising effort that might make a great project for a kids' class
in a craft store: Take a plain, inexpensive umbrella and have the
kids decorate it with waterproof paints. Friendship House would then
sell the umbrellas, but kids in a craft class could take their
finished projects home to mom. Any suggestions where Barbara -- and
craft retailers -- could find such umbrellas? Call or email:
309-925-5593; mike@clnonline.com.
MISCELLANEOUS NEWS
SHOWS. The HIA show in Dallas next February is
almost sold out! If you want to exhibit and haven't reserved your
space, don't wait. Visit www.hiashow.org
... The MemoryTrends trade show Sept. 30-Oct. 2 show in Las
Vegas is sold out.
ART. Email from an art materials manufacturer: I've just read
the current issue of CLN and was very surprised to see the
results of "a study conducted at the recent NAMTA
show." Who conducted the study? I exhibited at the show and it
was dismally attended -- 803 attendees. Using an "average"
of $9345 per attendee would result in more than $7.5 million in
sales generated at the show! There were only 188 exhibitors, so the
average per exhibitor would have been about $40,000. I'll bet if you
surveyed your readership who exhibited at NAMTA, hardly anyone sold
that amount, including the big guys. (Note: NAMTA says the
study was conducted by SALCO Consulting of Charlotte, NC.)
JOB OPENING. Midwest needlework manufacturer is looking for a
VP of Marketing & Sales. Relocation preferred. For more info,
call Mike Hartnett at 309-925-5593 or email mike@clnonline.com.
STOCK. Our industry-related stocks are slightly outperforming
retail stocks in general. Retail-merchandiser.com's
index tracks 81 apparel, discount, drug, and specialty stores which
have risen 19.2% in 2003. CLN's Retail Index has risen 20.8%
this year.
CROSS STITCH. Needlework Markets will sponsor a
cash-&-carry market Aug. 20-22 in Charlotte, North Carolina.
Call 706-628-5684 or visit www.stitching.org.
PAINTING. The 2003 Convention in Indianapolis sponsored by
the Society of Decorative Painters is now online -- photos of
almost 400 booths, contact info, and links to exhibitor websites.
Visit www.decorativepainters.org,
and click on Virtual Convention ... SDP is changing the name of its
annual event from "Convention" to "International
Conference." The next International Conference will be May
24-29, 2004 in Phoenix.
MEMORY. The Memories Community added "Specialty
Services" as a membership category for those who provide
professional services to the marketplace but aren't retailers,
distributors, or manufacturers. Memories Community, which is
affiliated with the Memories Expo shows, already has 3,000+
Individual, Retail, and Corporate members. Specialty Services
members receive discounts on booth space, "early bird"
online registration and free admission to all Expos,
discounts on classes and seminars, and listings/links on the Memories
Community website. Visit www.memoriescommunity.com,
call 740-452-4541, or email memories@offinger.com.
LAWSUIT. A San Francisco federal court judge chose September
as the month when he will hear arguments for/against certifying a
class action sex-discrimination suit against Wal-Mart. As
reported in CLN, if the judge rules it a class action suit,
it would be the largest in history, covering 1.5 million current and
former Wal-Mart employees.
SCHOOL. Consumers will spend $14+ billion on back-to-school
merchandise, according to a recent study by the National Retail
Federation. A family with school-aged kids will spend more this
year, $450.76, compared to $441.60 in 2002.
INTERNET. Cardinal Brands is raffling special prizes for
retailers who register at the Retailer Center website
developed especially for independent retailers and features
sales/promo material for the company's Generations product
lines. Visit www/generationsnow.com/retailer.
IDEA. In Binney & Smith's test store in the
Arundel Mills mall outside Baltimore, Crayola Works, a
popular promotion is to have kids customize their soccer balls,
according to MorningCall.com. (Note: B&S officials told
MorningCall.com they have no plans to open additional stores.)
CONDOLENCES. Our very deepest sympathy to Accu-Cut's
Steve and Lynette Nabity on the death of their 19-year-old daughter,
Cara, who died after undergoing heart surgery. Memorials should be
sent to the Cara Kay Nabity Memorial Mission Fund, c/o Pinnacle
Bank, 13131 West Dodge Rd., Omaha, NE 68154, or to the Cara Kay
Nabity Scholarship Fund, c/o Grace University, 1311 S. 9th St.,
Omaha, NE 68108.
BUSINESS PROFILE
Note: To learn more about how your company can be profiled
in CLN, call Mike Hartnett at 309-925-5593 or email mike@clnonline.com.
To read other profiles, click "Business Profile Archives"
in the right-hand column. Profiles remain in the Archives for one
year; each time a profiled company is mentioned in a subsequent
issue, it will be linked to the profile.
THE CREATIVE NETWORK: JOB
OPENINGS
To see a sampling of the current job openings and to contact The
Creative Network, click on the "Jobs"
button in the left hand column.
THE CLN RETAIL INDEX
A. C. Moore (ACMR). Last*: 24.40 ... Change**: +0.56
Hancock Fabrics (HKF). Last*: 18.01 ... Change**: +0.39
Jo-Ann Stores (JAS.A) [a]. Last*: 26.71 ... Change**: +1.16
Michaels (MIK). Last*: 37.70 ... Change**: -0.19
Rag Shops (RAGS). Last*: 3.66 ... Change**: +0.63
Wal-Mart (WMT). Last*: 55.27 ... Change**: -1.73
CLN Retail Index. Last*: 165.75 ... Change**: +0.5%
Dow ex. Last*: 9,153.97 ... Change**: -0.4%
*Aug. 1 ** from July 18 [a] voting share Prices are exclusive of
dividends
FOR COMPUTER USERS OVER 40
(Note: The author is unknown, but it was sent to me by
Jerry Constantino, the former President of PJS Publications.)
A computer was something on TV, from a science fiction show of note.
A window was something you hated to clean, and ram was the cousin of
a goat.
Meg was the name of my girlfriend, and gig was a job for the nights.
Now they all mean different things, and that really mega bytes.
An application was for employment. A program was a TV show.
A cursor used profanity. A keyboard was a piano.
Memory was something that you lost with age. A CD was a bank
account.
And if you had a 3-in. floppy, you hoped nobody found out.
Compress was what you did to garbage, not something you did to a
file,
And if you unzipped anything in public, you'd be in jail for a
while.
Log on was adding wood to the fire. Hard drive was a long trip on
the road.
A mouse pad was where a mouse lived, and a backup happened to your
commode.
Cut you did with a pocketknife. Paste you did with glue.
A web was a spider's home, and a virus was the flu.
I guess I'll stick to my pad and paper, and the memory in my head.
Nobody's been killed in a computer crash, but when it happens they
wish they were dead.
REMINDERS
1. For more information on how your business can be the
subject of a "Business Profile" or have products/photos
included in the "CLN's Online Product Preview, call Mike
Hartnett at 309-925-5593 or email mike@clnonline.com.
2. Paid subscribers are invited to have their website
evaluated by Lynn Carlisle of Carlisle Communications. She'll
check the site and provide a confidential assessment and suggestions
for improvement. Just email mike@clnonline.com
or ljc@carlislecommunications.com.
3. If you want a hard-copy of this issue, click on
"Printer Friendly version".
4. If your company is a paid subscriber, everyone in the main
office is welcome to register, free. Just click on "Current
Subscribers Click Here To Register."
5. If you want to recommend CLN to a friend, use the
"Tell Your Friends" box on the home page.
6. Creative Leisure News is published on the first and
third Mondays of each month. Your next issue will be Monday, May 19.
xxx
Printer
Version
