Ideas. strategIes. News. - Darice€¦ · Ideas. strategIes. News. Craft r Spring ’14 An organization’s ability to learn, and translate that learning into action rapidly, is the

Despite reports to the contrary, scrapbooking remains popular

How to identify the difference – and drive sales for both

Still scrapping

Trend or Fad

Facingforward

Travis Smith, CEO of Jo-Ann Fabric and Craft Stores, offers an insider’s view of where the craft industry is headed

Ideas. strategIes. News.

Craft Business Insider

Spring’14

craftbusinessinsider.com2 • Craft Business Insider

Standing still is one of the surest ways to get behind in our modern business world. We all need to figure out how to ride the waves, reach our customers, and help them find the products that they need.

One of the things that I really like about this magazine is that it’s chock full of learning opportunities. Large and small companies alike can take tidbits from the case studies in these pages, and adapt those ideas into their own business plans.

Some of the stories in this issue contain obvious lessons, like merchandising tips or product mix guidelines. Cover stories like the JoAnn article offer a wealth of craft business inspiration. Other stories may feature slightly more subtle hints.

In our scrapbooking story, Jennifer Edwardson mentions her success with developing beginner kits – an idea echoed by Heather Mann in the dollar store crafting article. No matter what your store’s core product line includes, you can

take this idea and adapt it to make your own custom packages for beginners.

Don’t want to create your own bundle? Simply give a discount instead when customers buy a beginner tool along with a certain number of other supplies. Or offer tool rentals for beginners. The beauty of learning is that you can take an idea you’ve discovered and transform it to your specific store’s (and customer’s) needs.

Just as we can learn from the successes of others, so too can we learn from our shared history. We love the history of crafting timeline that Mike Hartnett has begun to put together in this issue, and look forward to exploring more of our milestones in the future.

In closing, I would like to share a personal milestone. Darice, our family business, turns 60 years old in July. A big thank you to my mom and dad for working tirelessly on their contribution to the craft industry, and for giving my family the great American Dream!

Sincerely,

Michael CatanzariteCo-CEODarice Inc.

from the CEO

Moving Forward



Spring’14

An organization’s ability to learn, and translate that learning into action rapidly, is the ultimate competitive advantage.– Jack Welch, chemical engineer and CEO of GE from 1981-2001

Editor: Todd Shryock

Associate Editors: Erik Cassano, Danielle Toth

Art Director: Amanda Horvath

Project Manager: Erin Walker

Cover photography: Toby Shingleton

Craft Business Insider is published by SBN Interactive, 835 Sharon Drive, Suite 200, Westlake, OH 44145, (440) 250-7000.

sbninteractive.com

13000 Darice ParkwayStrongsville, OH 44149

1-866-4-DARICE (1-866-432-7423)FAX: (440) 238-1680EMAIl: [email protected]

Darice is an action-oriented company, committed to continual improvements and advancements in the craft industry. As a leader in their field, Darice is dedicated to maintaining, expanding, and strengthening the relationship with its customers. Their simple mission statement says it best, “Exceed Customer Expectations”, a practice followed daily at the company’s Strongsville, Ohio based headquarters facility and distribution center.

Craft Business Insider • 3Spring 2014

contents

Facing forward

Trending

Travis Smith, CEO of Jo-Ann Fabric and Craft Stores, offers his view on where the industry is headed

Despite reports to the contrary, scrapbooking remains popular

Spring’14

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departments

Business Insider

BriefsWhat’s hot! New products and tips

TrendingTrend or fad: How to identify the difference — and drive sales for both

Best practicesSteve Diddams shares what’s hot in the party store space and how you can take advantage of it

Crafting techIt’s a blogger’s world. Internet writers have a huge impact on craft trends

Industry insiderThrifty craft ideas for low-budget customers

In seasonHow to merchandise wedding items — and sell more of them

Industry insiderHow you display and highlight merchandise has a real impact on your sales

Industry insiderTradeshow trends

Crafting timelineA look at the industry’s past and the progress made

Back pageFrom tiny acorns, household names grow


briefs It’s time to get craftyWhat’s new? What’s hot? What’s important to your customers? We have the answers.

Retailers from across the country are seeing different trends and customer interests, ranging from domestically manufactured products to chalkboard crafts. Here’s a random sampling of what craft store operators are seeing.hot!

what’s

“At Mangelsen’s we are really excited about the chalkboard trend — chalkboard paints, markers, stickers, wall decals, etc. Our customers will take any of our unfinished wood (or even a mason jar), paint it with chalkboard paint and make a great piece of home décor.”

— David M. Mangelsen, owner of Mangelsen’s in Omaha, Neb.

“U.S.-made rules right now. People are really into learning the story behind the products they purchase and knowing where they come from. We stock a lot of U.S.-made supplies, like Brooklyn Tweed and Jill Draper yarns, and people seek these out first.”

— Jaime Jennings and Amber Corcoran, co-owners of Fancy Tiger, a craft boutique in Denver, Colo.

“My Craft Room is finding even more interest in knitting and crochet than ever — I’m sure the winter weather has a little to do with it. The most popular projects now are cowls and hats. And in paper crafting, our customers just can’t get enough dies.”

— Joyce Rapezzi, owner of My Craft Room in Troy, Mich.


Mod Podge has always been a favorite with crafters, but with the new Mod Podge Rocks! stencils, an entirely new realm of possibilities has been opened for your customers to explore. The stencils are peel-and-stick and reusable, and come in a variety of patterns, including tree bark and skeleton keys. Crafters apply the stencil to the item of their choice, dab on some Mod Podge, remove the stencil, then sprinkle with glitter (or sand or anything else they want to use). Once dry, the excess glitter is brushed away, leaving the desired pattern behind.

“With this line, you can make designs with glitter and Mod Podge that you couldn’t normally achieve by hand,” says Amy Anderson, freelance designer. “It was also important to me to have a line that was great for beginners, basic enough for a variety of projects and reusable — these stencils meet that criteria.”

Is your store taking advantage of the arm-knitting trend? No needles (or knitting skills) are required. Arm knitters use their hands and arms to knit yarn in interesting patterns and can create scarves, blankets and other items, all customized with their choice of colors. Plenty of guidance for beginners is available on YouTube (simply do a search for arm knitting), and these same videos can spark ideas for what styles and colors of yarn to stock. Find a local arm knitter to run a demonstration, or put one of the instructional videos on a continuous loop in your store to help spark interest.

Crafters will love the versatility of the DecoArt Americana Décor™ Chalky Finish line. These paints and finishes are the perfect products for flea market find re-dos or giving furniture a facelift. Economically priced and easy to use, Chalky Finish paints dry quickly allowing the painter to achieve a wide range of techniques like distressing, layering colors, dry brushing, stenciling and more. Unlike other finishes, products from this line have low odor and clean up easily with soap and water.

“Just brush them on, wait a little while, then buff to a nice satiny sheen or let the finish cure for a more matte look,” says Donna Bush, DecoArt’s manager of creative education and design.

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The craft retail space is never a fixed target for store owners trying to gauge the next hot-selling items that will be flying off the shelves.

Is it burlap? Paper-mache letters? Yarn bombing? Or something else you’ve seen on Pinterest or Etsy?

Is it a trend that will be around for a while? Or is it a fad that will dry up in the span of months? How do you determine which it is, and how do you react without overreacting?

They’re all valid questions, and none has a completely predictable answer. However, there are some steps you can take to prepare for the next big thing without betting the farm on a product line that will be passé by the start of next month.

Telling the differenceIn order to market to a trend or fad, you have to know the difference. Dave Catanzarite, co-CEO of Darice, says the primary difference is the scope. A

How to identify the difference — and

drive sales for both

trendfad?or

trend tends to encompass large-scale craft concepts, such as wedding décor, and can last for the span of many months or several years. A fad is short-lived, with a lifespan of weeks or a few months and usually encompasses a single product or product line.

“The use of burlap is an example that I’d consider to be more of a trend,” Catanzarite says. “It’s lasted for the past year and a half or so. People have been using burlap and other natural materials in weddings, home décor and other projects that tend to have a larger scope.”

The recent popularity of rubber band loom bracelets, by contrast, is most likely a fad.

“It started on YouTube, with a video showing how to do it, and now it’s huge,” Catanzarite says. “It was huge throughout the Christmas season. But it’s big for a while and then it tails off. Eye-bombing is another example, a fad in which people were putting plastic googly-eyes on refrigerators, computers, notebooks and other items. But the rule is generally that fads last for


a few months or a year. You might sell $1 million this year but only $100,000 next year.”

Playing your handBecause trends tend to have a larger scope and more endurance than fads, there is less of a chance of retailers overreacting to them. A shipment of burlap could have a number of decorative uses, meaning more customers might purchase it, allowing your store to turn more profit on that product. In short, the sales predictions are usually more reliable with trends.

With fads, the spike in interest — and subsequent sales — is immediate and sharp. When people want it, their appetite is insatiable. Instead of steady brisk sales like you might see with a trend, you may have a difficult time keeping a fad item in stock for a few months. As soon as the shipment hits the floor, it starts selling.

That’s why it’s much easier to overplay your hand when it comes to fads. And that’s how yesterday’s license to print money becomes today’s clearance-rack item.

How do you guard against putting too many eggs in the fad basket? Catanzarite says inventory control is key.

“How you buy your stock is very important,” he says. “In order to control inventory, we air-freight most of it, sometimes on a weekly basis. So we have the short-term stock we need, and we can get more when we need it. That way, when a fad cools off, we still have stock for what we’re selling, but we’re not way overstocked.”

Look at different suppliers when possible. Compare rates and availability, and go with the supplier who can get you the short-term stock you need, and get it to you quickly. There is a sweet spot with fads — you want to be aggressive enough to capitalize on the selling power of the fad without going overboard and finding yourself with pallets of unsold backstock should the fad suddenly die out.

“It’s not an exact science,” Catanzarite says. “Trying to hit that middle ground between aggressive purchasing and not going crazy can differ between stores and depends greatly on the nature of the fad. But if you buy weekly and try to minimize overstock, that’s usually the best plan of action.”

Scanning the horizonNo trend or fad is risk-free. But careful observation of what is emerging can give you a good idea of which risks are worth taking.

“I usually see trends start on the coasts,” Catanzarite says. “Paying attention to what’s developing in New York and California is a good idea, in my experience.”

If stores in New York are starting to sell a lot of a particular item, investigate further to see if the item makes sense for your store.

“In the end, you sometimes can’t help it if you misjudge,” Catanzarite says. “If you’re wrong, you’re wrong. Just do your homework and be prepared for when the next trend or fad hits. Because when it hits — particularly with fads — it hits fast.” ●

fad?“If you buy weekly and try to minimize overstock, that’s usually the best plan of action.”

— Dave Catanzarie, Co-CEO, Darice


Best Practices

Party time

Party supply stores are close cousins of arts and crafts stores, and if the two spaces don’t specifically overlap, they certainly touch on the edges.

Aside from similarities in the products on the shelf, stores in both spaces market to many of the same consumers — party planners, home decorators and other do-it-yourselfers on a budget. Both draw a sizeable business from youth-targeted products, and both face competition from general merchandise retailers, including big box chains and dollar stores.

With that in mind, owners and operators of arts and crafts stores can learn a lot from the party supply space, including how to move merchandise and how to market to a specialized customer base.

“Our core area is juvenile birthdays,” says Steve Diddams, founder and president of California-based Diddams Party Stores. “That includes all of the

Steve Diddams, of Diddams Party Stores, offers an insider’s view of what’s hot in the party store space — and how you can capitalize on it

supplies, including paper plates, napkins, streamers and balloons, even small toys for gifts. Pretty much everything except the food.”

Party stores rely heavily on the one-stop-shop concept. By grouping items together, a customer who enters the store for one item may end up purchasing related items, turning a $5 sale into a $30 sale.

“If a kid is invited to a friend’s birthday party, a lot of times, they’ll need to purchase a gift for under $20, and that’s the price point we try to stick at,” Diddams says. “It’s the same thing with catering supplies, like bulk cups and plates. Once they’re in the store, we want to take that opportunity to get those add-on sales by providing convenience to the customer.”

The related-item concept is evident throughout all of Diddams’ stores. Although children’s birthday parties are the core business, they are only one of five

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main business lines, which include costumes, candy, baking supplies and specialty balloons. But items aren’t just grouped for convenience in the stores. There is a visual appeal factor at work, as well, that is as important as the convenience factor.

“We try to tell color stories throughout our stores,” Diddams says. “It’s a critical element, because customers are often looking to coordinate colors for showers and parties. We want our customers to be able to look at our displays and visualize their color theme.”

Display arrangement becomes a sales driver once a customer is in the store. Getting customers to drive to the store in the first place, though, is another matter. Marketing is one area where party stores and arts-and-crafts stores are really in the same boat. As specialty stores, both are fighting for face time in a crowded retail market, competing against big-box and discount retailers that carry overlapping inventory, in addition to household products such as groceries and cleaning supplies.

It’s much easier for a big-box retailer to drive party supply sales when a customer is already in the store for groceries. That means stores such as Diddams have to make a much stronger effort to personally connect with customers. On that front, Diddams says he’s gotten much more traction with Internet-based advertising than with print circulars and newspaper ads.

“Things have changed so rapidly,” Diddams says. “Now, we’re finding that we’re having more success with email blasts, which are much more targeted. We collect email addresses for targeted email ad campaigns, and we’re also a lot more active on social media than we’ve ever been. We find that customers check out places like Yelp, and if they like what they see, they’ll check us out.

“Everything is targeted now. How you sell merchandise, how you market your store, you have to really home in on your audience. Casting a wide net doesn’t work like it used to.” ●

For more information on Diddams, visit www.diddams.com

On the Web

Marketing party suppliesParty supply stores and arts and crafts stores target common customers. As an arts-and-crafts store operator, you may find you have an opportunity to venture into party supplies, too. But before you start calling vendors and scheduling deliveries, you need to develop a plan to promote and sell party supplies. Here are some things to consider.

Devote adequate space to these supplies. As an arts-and-crafts store, you’re not in the party-supply business. But if you’re going to carry party supplies, you have to allot enough floor space to deliver adequate product selection and the potential for add-on sales.

Build visually attractive displays. Arrange products according to color. Stock complementary products next to each other. Devote the same time and care you devote to setting up a display for a crafting product. Remember that you are still selling to crafters; it’s just that the project is a party instead of a quilt or a scrapbook.

Focus your marketing. Casting a wide net isn’t necessarily the most effective means of advertising anymore. Find your audience via social media avenues. Gather email addresses, focus your marketing on smaller audiences of crafting enthusiasts and let them know you now carry party supplies. If you give those people a great customer experience, word will quickly spread that you sell party supplies with the same high standards as your crafting supplies.


While Pinterest drives some of the largest traffic numbers on the Internet, about 80 percent of its content is recycled. So where

does the majority of its content come from? Bloggers.Bloggers, both paid and unpaid, are a huge

influence in the crafting world. They have their own individual followers, and when combined with social media sites, they’re reaching more people than ever.

“In today’s digital world, blogging is an important medium,” says Katie Wade, who operates Lemon Jitters, a craft blog that covers techniques, projects, supply information and more. “You can see the impact clearly with big blogs with lots of followers, but even smaller blogs create a buzz in the creative community. I myself have bought products because of blog posts, so I know the power they can have from a consumer perspective.”

Tapping the resourceMany bloggers work through a middleman, such as TapInfluence or Blogging Edge, rather than directly with a particular retailer. Wade, for example, has worked with several companies that link bloggers and retailers.

However, if your store has the resources to dedicate someone to engage and work directly with bloggers on a regular basis, doing so builds a relationship and rapport that may result in blogs that are more

accurately tailored to your style and needs. But don’t just choose a random blogger and jump in. The key to successful blogging is to make sure you are working with the right blogger on the right project, says Tauni Everett, a social media manager who operates snapcreativity.com, where she shares blogging and social media tips, home entertainment ideas, and craft and DIY projects.

“Most companies assume that working with the most popular, high-traffic blogger is the answer, but that’s not necessarily true,” she says. “A small blogger

Internet writers have a huge impact on craft trends

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with a loyal following can exert far more influence, particularly when it comes to niche products.”

It is also beneficial to seek out paid bloggers, Wade says. Most professional bloggers don’t do unpaid work unless it is a project they’re doing for themselves, and paid bloggers will spend more time on projects and more energy promoting posts, resulting in a cleaner, more reader-friendly post.

However, Everett says that regardless of whether bloggers are paid or unpaid, quality of content and reader perception of that content are the most important factors to consider.

To create high-quality content, choose a topic that focuses on projects, rather than products. Unless the product is new and innovative, most people don’t want to read a product plug. Instead, focus on easy-to-create projects that incorporate products sold at your store.

“Think about a concept that goes along with the season,” Wade says. “Holiday projects are always popular. So instead of saying, ‘Look at this cool new glue,’ you’re saying, ‘Look at this great project you can make for the holidays.’ People respond better to that.” ●

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Research the blog —

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— you’re

interested in

working with.

Questions to

ask include:

• Is the blog’s audience a good match for you?

• Is the blogger active on social media channels

with high engagement and dedicated followers?

• Check out the blogger’s previous sponsored posts.

Is the content what you expect for your posts?

• Is the blogger working with other brands? If so,

who? Watch out for conflicts of interest.

Communication is key. Make your mutual

relationship clear from the beginning — what you

will do for them and what you expect from them

in return. listen to their questions and concerns,

and give very clear, precise project guidelines. Craft

bloggers actually want strong direction — they want

to give you what you want, and that may be hard if

you do not communicate effectively.

Be upfront, prompt and flexible. Remember, your ultimate goal is to build long-term

relationships with industry influencers and make

it a win-win for both parties. Be courteous of the

blogger’s time and respond to them in a reasonable

amount of time. Things are bound to come up — be

as understanding and flexible as possible.

Compensate bloggers. In addition to supplies, be

willing to offer a stipend for projects and blog posts.

Ready to build your own blog campaign or create your company’s design team? Darice’s Social Media Coordinator, Sarah Kubelka, shares some tips she’s learned along the way:

TIPS FOR A SUCCESSFUl

BlOGGER RElATIONSHIP

craftbusinessinsider.com12 • Craft Business Insider12 • Craft Business Insider


Despite the closure of Archiver’s and other specialty stores, this medium

remains popular with crafters

Scrapbooking sales boomed in the early 2000s, but have decreased somewhat recent years. Some attribute the decline to the recession, while others point to the increase in less expensive online companies.

However, scrapbooking still makes up the largest percentage of crafters — 10 percent, or 23 million people, according to a 2012 Craft & Hobby Association survey. In addition, social media sites such as Pinterest and Instagram encourage creativity and allow both crafters and noncrafters to share projects.

“Scrapbooking is a great way to showcase those treasured photos that we take,” says Lorraine Ungeheier, of the Scrapbook Expo. “These days, everyone has a camera on their phone, so we are taking more pictures than ever. Instead of storing precious photos in boxes, crafters are incorporating these pictures into scrapbooks that are truly works of art.”

On the rise againJennifer Edwardson opened her store, Scrapbookin’ Adventures, in 2006. While she’s seen other stores close, her British Columbia, Canada, store has remained open.

“Through the economy change, one thing we noticed was that we weren’t losing customers — we were losing dollar amounts,” she says. “People were still coming and had a need for the products, but the

ScrapbookingSells

14 • Craft Business Insider

average purchase price went down. But we started to see a rebound in 2011, and now we’re on the rise again.”

Scrapbooking supplies continue to be in demand as customers increasingly see the value in preserving family memories, Edwardson says. As many age and experience life events such as marriage, children and deaths of loved ones, they have a heightened desire to create something unique and personal to pass along. In addition, as interest in genealogy has increased, so has interest in scrapbooking, since it is a great way to document a family tree.

Scrapbooking also stimulates the senses in a way that simple recall or digital memory preservation can’t. It often includes not only photos but memorabilia as well, such as the ticket stub from a first date, a pressed flower from a bridal bouquet or a ribbon from a baby shower gift. The lingering smell of the flower and the texture of the ribbon provide a unique and enhanced experience.

Hot, hot, hotScrapbooking kits are popular now because they are relatively inexpensive and simple to assemble, says Dena Fishbein, of Dena Designs, a full-service design and merchandising studio that creates everything from scrapbook paper to apparel and home décor.

“People who are pressed for time like the simplicity of a kit that allows them to get a book done very

quickly,” she says. “Customers are looking for really easy, very colorful, print-driven albums that have everything all right there for you in the kit so you don’t have to buy a million different things and figure it out. It’s pretty much done for you.”

Mixed media, which incorporates textures and materials ranging from feathers to fabric and other tactile items, and hidden journaling contained in pullout tags or tiny envelopes, is also on the rise in scrapbooking, as is die-cutting, Ungeheier says. From manual machines to cutting machines that use electronic files, die-cutting patterns are becoming more intricate and the materials used more varied.

Stamping, flowers and chalkboard are also hot, as are mixed and matched patterns, such as chevron with polka dots or stripes with flowers.

Modern, sophisticated styles are also trendy. These books are meant to look professional when completed, as if they were purchased from a store rather than handmade. Set yourself apartThe great thing about scrapbooking is that retailers can go as simple or as complex as they want. Ungeheier recommends starting with basics such as adhesives (both wet and dry), paper trimmers, scissors, card stock, several paper collections, embellishments and basic tools. Acid-free supplies are a must, she says, as these preserve pictures.

Papercrafting, in which crafters construct 3d objects out of paper, is exploding in the scrapbooking market. It uses virtually the same materials as traditional 2d pages and provides an innovative opportunity to enhance those pages. Papercrafting has also transitioned to home décor as creative crafters use the medium for everything from picture frames to party decorations.

5 ways to take advantage of papercrafting

Nostalgia SMASH Journal Gift Set from K&Company.®

craftbusinessinsider.com

Craft Business Insider • 15

It is also important to keep like products together so customers can easily see what mixes and matches well.

“When collections aren’t together in a store, people don’t know what paper is meant to go with what embellishments,” Fishbein says. “While they can be inspired to incorporate new and different things, keeping core collections together makes shopping easier.”

Displays are also important. Scrapbooking customers tend to be very visual and want to see what a finished product can look like. Keep samples and finished projects near scrapbooking items to spark customers’ imaginations.

To encourage new customers to take the scrapbooking plunge, Edwardson recommends something she does at her store: Offering a package deal. She creates a kit with everything a beginner might need, including a paper trimmer, scissors, adhesives and several papers and embellishments. She retails the kit for about 15 percent off of what those things would cost separately.

This offers a great option for potential crafters who don’t want to drop a large amount of money on supplies for something they’re not sure they will like.

“As retailers, we’re always looking at the bottom line, but 10 to 20 percent is not a huge amount to give when you look at what you’re getting in the long run,” Edwardson says. “If you bring in a beginner, they will come back and spend more money and not think twice about it because of the savings they received at the get-

Craft Business Insider • 15

go. It really makes up 10-fold down the road.” Workshops and make-and-takes are also excellent ways to garner customer interest. People love to experiment with new products, learn new skills or improve existing ones, and socialize with peers who have similar interests. These events can be inexpensive, conducted with internal personnel using in-house products. Creating space in your store for others to socialize also encourages customers to stay longer — and the more they linger, the more they tend to spend.

For any retail store, it’s about the experience, and arts and crafts retailers can beat out the big-box stores with simple personal touches.

“Any big box can carry paper, but do they display it well? Is the staff knowledgeable about how to use the newest die-cuts? Are their projects regularly changed to show off the entire collection?” Ungeheier says. “These are what set smaller, independent retailers apart.” ●

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to take advantage of this trend, retailers should:

Organize workshops.when you show both current and potential customers the papercrafting possibilities, they will be more likely to purchase the tools and products.

Stock kits. People are more willing to try something for the first time if it is inexpensive and easy. kits allow potential crafters to experiment before taking the plunge.

Display completed projects. crafters are visual, and they want to see what a project can look like post completion. create papercrafts from your store’s materials and display them near their corresponding products.

Take advantage of multimedia. Post video tutorials to your website, social networks and blog that illustrate papercrafting how-tos.

Host a papercrafting contest. exhibit entries in your store to garner interest and have customers vote for their favorites. reward the winner with a gift card or a gift basket of papercrafting supplies.

Spring 2014

“When collections aren’t together in a store, people don’t know what paper is meant to go with what embellishments.”

— Dena Fishbein, Dena Designs


Over the years, the craft retail industry has been molded, shaped and reshaped by countless trends and product lines. It has adapted to

evolving technology. And it has been buoyed by economic prosperity and weighed down by slumps and recessions.

But through it all, one thing hasn’t changed — the passionate, creative customer base that cares about crafting. And that, says Travis Smith, is the ingredient that has made the craft retail recipe successful, no matter what outside factors influence it.

“Our retail industry is strong, and that’s in large part due to the passion of our customers,” says Smith, president and CEO of Jo-Ann Fabric and Craft Stores. “What’s more, about half of what is bought in our stores is given as gifts, or given to a cause. A lot of our customers do things like make quilts for the homeless. So we have a very passionate customer base that is also a very giving and philanthropic customer base.”

forwardTravis Smith, CEO of Jo-Ann Fabric and Craft Stores, offers an insider’s view of where the craft industry is headed

By Erik Cassano

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Spring 2014 Craft Business Insider • 17


But having passionate customers is only good when you can connect with them and drive sales. Smith says that over the past decade, that has been an ongoing challenge faced by him and other leaders of bricks-and-mortar craft store chains, as online and big-box retailers have taken a bite out of business. Both have convenience factors working in their favor; online retailers allow customers to shop from virtually anywhere, and big-box retailers compete on an all-under-one-roof retail model.

The competition has caused craft retailers to become creative in their own right, adapting to a new retail world in a way that highlights the specialized product selection and in-depth knowledge that only stores in the craft retail space possess.

A unique positionGeneral-merchandise stores and online retailers stock arts and crafts products, and that’s not likely to ever change. Those players are in the game to stay, and craft retailers will have to continue to adapt.

But craft stores have another platform on which to compete, and it’s extremely important for their passionate, discerning customer base: In a word, craft stores can inspire.

“Most crafters deal with a time hurdle,” Smith says. “They don’t have the time to come up with new ideas for projects. So the more we can inspire the customer, the more videos and project sheets and finished samples we can put out there, the more we’re going to create ideas. We’re going to serve as a resource for ideas and techniques, not just a place to purchase supplies. That is one thing that can really set us apart.”

The challenge within the challenge is to take that inspiration and make it accessible on the customers’ terms. Customers are becoming increasingly Web-savvy and are looking to sites such as Pinterest for project ideas. Craft stores have to inspire in much the same

“We’re going to serve as a resource for ideas and techniques, not just a place to purchase supplies. That is one thing that can really set us apart.”

— Travis Smith, CEO of Jo-Ann Fabric and Craft Stores


way and create user interfaces that allow customers to purchase supplies at the moment inspiration hits.

“I need to be able to supply solutions that allow my customers to shop my stores how, where and when they want, whether that means shopping online with the option to return the item to a physical store, shopping by phone or coming in to the store to speak with a sales representative,” Smith says. “Things have changed so much, and as a craft retailer, you have to give your customers every possible option to interact with your store.”

Craft stores have to be willing to work with sites like Pinterest, as well as other social media networks in which crafters share ideas. Today’s conversation becomes tomorrow’s crafting craze, and store operators need to be able to react quickly. It’s a part of developing a deeper relationship with customers, giving them incentive to seek out the responsiveness, selection and service available in the craft store market.

“Crafters used to get their inspiration from family members — their mom, aunts, grandma,” Smith says. “Today, that’s being replaced to a great degree by social media. You take a look at some of the trends that have emerged on social media over the past few years, like the use of burlap, canvas and canning jars. Those of us in the craft store space have to work with those sites

and add momentum to the initial inspiration. We help our customers flesh out their crafting vision.”

Filling the pipelineTechnology is also changing how stores operate. With new order replenishment systems in place, Jo-Ann is taking steps to be more responsive to customer demand and take quicker action when supplies of a given product are running low.

The responsiveness factor is especially critical for Smith’s company, because it supports a network of stores with varying degrees of square footage and product selection.

“The stores have to stay in communication with distribution centers,” Smith says. “You don’t want a ton of back stock that sits around, but you don’t want to run out of what customers want. There is a sweet spot where you order enough, but not too much or too little. And ensuring that you hit that target takes investment on the tracking end of things.”

Regional appeal is also a growing trend, and one that Smith thinks will continue. Each region has a set of niche products or themes that sell particularly well, and craft store operators who identify and take advantage of those trends can boost their sales.

“Because we’re in the business of serving customers,

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we have to find our niche,” Smith says. “We’re trying to provide specialty items and services that they can’t find anywhere else, and a big part of that is regional appeal. So a store in Florida might sell nautical prints and fabrics. In Arizona, you might emphasize a Southwest color palette. In Alaska, it might be wilderness prints.”

How you appeal to regional customers depends on the size of the store or chain that you operate. Smaller craft store companies may already be regionally focused, while larger chains, such as Jo-Ann Fabric, have to closely monitor regional trends. But it’s a worthwhile pursuit, because the future of craft retail is going to rest on the same foundation of customer service that has always carried it and separated it from retailers that might carry the same products but can’t provide the same type of connection with truly passionate crafters.

“Getting that ground-level view isn’t always easy for a big 850-store chain like ours,” Smith says. “But it’s very important. We want to talk to our customers, to be a resource for them, both in terms of inspiration and know-how. That’s what has served us well for years and what will continue to serve us well.” ●

“I need to be able to supply solutions that

allow my customers to shop my stores how, where

and when they want.”

— Travis Smith, CEO of Jo-Ann Fabric

and Craft Stores For more information: Jo-Ann Fabric & Craft Stores, www.joann.com

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Dollar stores are no longer just for quick trips for gift bags or office supplies. They now carry everything from kitchen items and tableware

to clothes — and even craft supplies. “We’ve definitely seen an increase in the craft

supplies available at dollar stores in the past five years,” says Heather Mann, founder and editor-in-chief of dollarstorecrafts.com, a daily crafting blog that shares craft ideas and items made using materials purchased at dollar stores. “With the state of the economy and people’s tight budgets, people still want to take part in hobbies but don’t have as much money to spend on them. So they’re looking for a cheaper source for supplies.”

There are also many people who don’t consider themselves “crafters,” per se, but who want to recreate a DIY project they saw on a TV show, blog or social media site. These crafters also look to low-cost items.

Dollar stores can take advantage of the budget trend by offering simple crafting supplies. Kids’ craft supplies are great sellers because many parents don’t want to spend a lot of money on these items. Think markers, paint, pencils, crayons and different sizes and textures of paper.

Plaques and frames are also popular because they can be used in a variety of crafts — Mann used a frame and plastic canvas to create a DIY earring holder — as are broadly used craft items such as beads, yarn, paint and paintbrushes.

Thrifty craft ideas for low-budget customers

Mann recommends dollar-store owners create a designated four- to eight-foot section of the store specifically for crafts and that it be labeled to make it easy for crafters to find what they need.

Retailers can also take advantage of the dollar-store trend by offering a budget section, something many large retailers have already done. Clearly label the area so penny pinchers know where to find deals.

In addition, if you’re offering new craft supplies or targeting a novice audience, building inexpensive kits that contain supplies for one or two items can help attract new customers.

“I don’t want to try a new craft if it’s going to cost me $50,” Mann says. “So if you have an area where you want to increase customers, it’s a smart idea to offer low-budget options for beginners. You’re providing value, and customers who enjoy the craft will come back and spend money on higher-ticket items.” ●

Industry Insider product development

designsDollar

store“It’s a smart idea to offer low-budget options for beginners.”

— Heather Mann, founder and editor-in-chief, dollarstorecrafts.com

t hrow the idea of “traditional wedding season” out the window. Weddings take place year round — just run a search for

“winter weddings,” and 324 million results pop up. In addition, thrifty brides look for deals months in advance of their weddings, regardless of the season.

So if you’re limiting your wedding item merchandise to the colder months in advance of June weddings, think again. You may be missing out on a huge opportunity.

“We’re finding the later months, November and December, have become very popular for weddings,” says Patrice Catan-Alberty, the owner of Catan Fashions, who also works with Darice to develop bridal products. “Wedding items are popular year round as brides try to stay ahead of the game.”

Cater to the customerThe key to selling wedding items any time of year is to make them easy to find and easy to browse.

Catan-Alberty recommends displaying items in chronological order, starting with the ceremony and ending with the reception. This makes it easy for bridal customers to quickly locate exactly what they need — whether it is DIY veils and headpieces or guest books and centerpiece items — without feeling overwhelmed during what can be a stressful planning period. This also helps brides who follow a wedding plan or checklist, allowing them to easily find the items they need for a particular use without having to search the store.

brIdeHere comes the

in season

You should also create engaging displays that illustrate both ways to use the items and what the finished product will look like.

“Many customers are visual and need to see the end result,” Catan-Alberty says. “They also don’t want their items to look like a craft; they’re looking for appealing items for an elegant event that fit their budget. We work very hard to make sure we convey that, which is why we like to show what finished products look like.”

Aside from displays, in-store events such as workshops and make-and-takes show bridal customers not only what the finished product looks like but also how simple it is to create, encouraging them to buy the materials to make their own.

How to mercHandise wedding items – and sell more of tHem


Personalization. today’s brides are looking for ways to put their own touch on their weddings.

adding rhinestones, lace and more to store-bought items creates a

personal flair.

Follow fashionCatan-Alberty also examines fashion trends to determine the right bridal crafting product mix. For example, when

she saw that gold was replacing silver, she immediately consulted with Darice to offer more gold and gold-accented products. In addition, awards season dresses featured lace and cutouts, which are now showing up not only in bridal but in crafting, as well.

“It’s important to be able to trend quickly and offer exactly what the customer wants,” says Phyllis Sika, a buyer at Darice. “The craft industry is really not involved enough in bridal to a level where we’re going to know what’s hot or not. That’s why fashion is so important — it tells us where to go next in the craft industry.”

Keep tabs on fashion magazines and blogs to learn what is hot — and what customers will want to see in your store.

Entice interestMerchandising is all about exciting and fascinating your audience but that doesn’t always need to happen in the

store. Catan-Alberty recommends creating videos that showcase products and their uses and posting them on your website, social media sites and your blog. Videos shouldn’t be focused on selling; instead, they should be more how-to. For example, highlight a country chic wedding theme by showing how to make burlap and lace candle holders. Using products that are available in your store to create an easy and inexpensive tutorial can inspire interest and creativity in your customers — and entice them to visit your store to pick up supplies.

Also help potential customers see the versatility of items, as crafting is all about finding multiple uses for products. A belt, for example, can also function as decorative ribbon or be fashioned into a headband.

“You don’t want to pigeonhole an item for just one use,” Sika says. “Brides want to have something that sets them apart, so it’s important to show multiple avenues for different products.” ●

crystal. often used as a

theme, brides are using crystal on everything from centerpieces to

garters, bouquets and wedding cakes.

natural/environmental.

the less is-more wedding is popular now. eco-friendly women are

choosing wedding items made from recycled and

reusable materials.

alternate millinery.

dIY headpieces and flowers have

trumped traditional tiaras and veils.

PaPer flowers. silk was the go-to flower material for many years,

but paper flowers are now an inexpensive way for crafty brides to create everything from bouquets

to ceremony and/or reception decorations.

crafty bridal trends

How to mercHandise wedding items – and sell more of tHem

Spring 2014 Craft Business Insider • 23


Craft stores often face a juxtaposition of sorts. Even the smallest craft store carries a wide array of products to cater to the supply needs of

many different kinds of crafters. But each crafter who walks through the door

has a specific area of interest. So how do you funnel each crafter to the items he or she wants, while still maximizing your sales?

In short, craft store owners and operators need to organize their stores in a way that makes shopping convenient for narrowly focused customers, while still exposing them to other purchasing opportunities.

It’s both art and science, and store managers need to constantly work to get it right.

Industry Insider merchandise

cart

Think like a customerIt’s the first rule of shelf stocking: If you want to drive sales, you have to think like your customers think.

“I always like to put my customer hat on,” says Susannah Schultz, a merchandise space planner at Darice. “Customers usually don’t have a lot of time, they probably have kids with them, and they don’t want to be there any longer than they have to be. So, in a big store, how can I find what I need without canvassing the whole store?”

That means grouping items by related use. Scrapbooking aisles should contain hole punches, scissors, albums, markers and stickers. If an item has multiple uses, consider stocking it in multiple places.

“For example, basic tape is a product with many uses for many projects, so it would make sense to stock it in different places,” Schultz says.

The time of year can also impact how you stock. Seasonal displays can splice into your year-round crafting displays, giving you an opportunity to highlight merchandise that might otherwise stay in the background.

appealHow you display and highlight merchandise has a real impact on your sales


“For any given season, you should try to take relevant items and mix them in with the seasonal items,” says Jennifer Bullis, a senior category manager with Darice who has extensive previous experience in store merchandising. “During the Christmas season, you might take scrapbooking supplies and put them in with your seasonal Christmas items, with the idea that a customer might want to create a Christmas scrapbook or handmade card. It gives the customer all those items right at their fingertips, alongside the other seasonal items.”

Utilize end capsEnd caps and standalone displays provide a great opportunity to highlight both seasonal and trending products. Many store managers keep a close eye on sites like Pinterest for an inside look at what customers are into, and what their stores will need to place front and center.

“For instance, burlap became really big recently as a crafting item,” Bullis says. “So burlap is now something you would want to stock in multiple parts of the store, and something you might find highlighted on an end cap.”

Bullis recommends using three main criteria to determine what gets highlighted in an end cap display.

“Is it a seasonal or color trend, is it a new product, is it trending on sites like Pinterest?” she says. “Those are the things you should consider first.”

And the closer to the front of the store a display is, the better. If you want customers to see it, make sure their eyes fall on it when they walk in the door.

“It’s something that can really vary by store,” Schultz says. “Each store has a different layout and a slightly different customer base. But generally, you want to have seasonal products and trending items in the center aisle.”

Adjust your approachCustomers sometimes complain when stores move their merchandise around, but doing so serves a purpose: Today’s workable floor plan isn’t necessarily workable tomorrow. You need to constantly re-evaluate your approach to stocking merchandise and make changes as necessary, with an eye toward maximizing sales.

“We create planograms, which are schematics that show how products can be displayed at a store,” Schultz says. “Sometimes a buyer will bring in a new item that we’ll want to highlight within one of our planogram kits, so we’ll move some things around. We’re always trying to make our displays cleaner and tighter.”

Every adjustment you make should be done with an eye toward increasing the convenience factor for customers. That includes not just product placement, but signage and price tag placement and maximizing use of the shelf space at eye level.

“Within each department, you want the cleanest presentation possible,” Schultz says. “You want a customer to be able to scan it and find products with minimal difficulty. You want signage that doesn’t change font, and display pegs that are consistent and don’t change your eye level. Simply put, you don’t want to make things topsy-turvy for your customers.”

In a large specialty store, it’s an ongoing process to keep things clean and simple, but it can be accomplished with proper planning.

“Craft stores tend to be very big and SKU-intensive, so it does take a good deal of organization to create the look you want,” Bullis says. “You can’t be everything to everybody at all times, so you always have to decide what you want to highlight.” ●


Industry Insider tradeshows

Art Materials World 2014

April 30-May 2, Pittsburgh www.namta.org

Produced by the International Art Materials Association, Art Materials World features art and creative supplies from manufacturers, importers, publishers and distributors.

2014 Paper Arts Show

July 29-31, Atlanta http://bit.ly/paperartsshow

This inaugural Craft & Hobby Association event includes paper craft exhibits, workshops, networking events and shopping opportunities.

Trends from the tradeshow floor

Check out the latest trends for yourself at these upcoming trade shows.

Upcoming trade shows

Show time!

While still relatively new and often expensive — the most inexpensive desktop 3D printers still cost about $400 — 3D printing, which uses media such as plastic, ceramics, metals and even wood, is transforming the arts and crafts world. New

products enter the market regularly. New 3D drawing pens, for example, use heated plastic that

quickly cools and solidifies into a durable structure. These pens are perfect for creating unique art pieces or even rough drafts to visualize a finished work.

Artists and crafters who do not want to purchase their own 3D printers or tools can use computer-aided design software and upload designs to 3D printing companies, such as Shapeways.

Many retailers are chasing this highly desirable segment of business, and the associated dollars are substantial. Tweens like to have unique items that set them apart from their peers, and the tween arts and crafts industry is tailored to that concept.

Currently hot are locker decorations, which include sophisticated items such as lighted chandeliers and sconces, organizational bins, carpeting, wallpaper and magnetic frames, dry erase boards and mirrors. Other trendy products include room decor, hair accessories, picture frames and jewelry.

tween products

3d printing

As the arts and crafts industry wraps up two important shows — the Craft & Hobby Association 2014 Conference & Trade Show in January and the American International Toy Fair in February — we bring you insights from Kort Masteller, national sales manager at Darice, who gained an inside look at the latest trends that will soon be in demand at your stores.


Kits for all sorts of crafts, from scrapbooking to jewelry and card making, are extremely popular right now. Kits target existing crafters looking to enter a new medium, and noncrafters looking for an easy project, by providing all the supplies needed for the craft in one inexpensive bundle. In today’s busy world, they are also great for those who may not have the time to invest in more laborious crafts.

Kits are especially popular in scrapbooking, for example, because they provide a time-saving alternative to selecting from myriad papers and embellishments. Scrapbooking kits come with precut decorations and preselected embellishments, so all the user has to do is assemble with his or her own photos.

Parents and educators are especially interested in arts and crafts that combine learning with play, such as crafts that teach colors, seasons, letters, numbers, time, science, math and more.

Popular learn-and-play crafts include plant-growing kits, color-by-number books and create-your-own toys and models.

Home decor, fashion and craft trends often mirror each other. Pantone, the authority on color, says that both pastels and brights are popular this spring. Placid Blue, the color of a calm sky; Violet Tulip, a light purple-gray; and Hemlock, a summery green, are trending pastels. On the bright end of the spectrum, Cayenne, a vibrant red; Freesia, a sunny yellow; and Celosia Orange, a tropical orange, are popular. Radiant Orchid is the 2014 Pantone Color of the Year, so look for the romantic purple to be popular in everything from fabric to paper. ●

Placid blue

cayenne

Violet tulip

Freesia

hemlock

radiant orchid

celosia orange

2014 Pantone

color of the Year

co

lor

learn &play

The interest in licensing is an ongoing trend. Retailers are always anticipating the next hot licenses and looking at which licenses continue to generate significant dollars. Lego is riding the wave from The Lego Movie, and Grumpy Cat was all the rage at the American International Toy Fair in February. The Wizard of Oz, Disney Princesses and Duck Dynasty are also popular licenses.

But before you sell these products, make sure you have the proper legal agreements and documentation, as fines can be hefty.

kits

licensed products


The craft industry’s roots stretch through the annals of time. Take a journey through the early years of crafting in part one of our timeline, with part two to follow in our next issue.

a dutch merchant, Peter thorwöste, builds a blast furnace in Finland. It made nails, wire, and metal-reinforced wheels from wrought iron; it later expands to become a premier steel/ironworks company.

oliver cromwell begins his conquest of Ireland. husqvarna begins as a manufacturer of rifles for swedish king. It begins making sewing machines in 1872.

the treaty of Nerchinsk establishes a border between russia and china.

an ancestor of lefranc & bourgeois opens an art materials shop in Paris.

the great Plague of Marseille kills 100,000 people.

english inventor thomas saint patents the first sewing machine.

the French revolution is in full swing.

the first artificial pigment, Prussian blue, is created by accident while the inventor was trying to create a red.

the New York stock exchange is founded.

Patrick clark and brother James open the first plant for manufacturing cotton thread.

war between the United states and great britain begins.

the collapsible metal paint tube is invented, supplanting the pig bladder method of storage.

Queen Victoria is in her fifth year as queen of the british empire.

Four companies, including Isaac singer’s singer Manufacturing company and elias howe’s howe Machine company, pool their patents to license the modern sewing machine.

ellen and ebenezer butterick create the first graded sewing patterns.

the International red cross is formed.

the quilting machine is invented.

the great chicago Fire burns for three days, killing hundreds and destroying 3.3 square miles.

rueben blumenthal launches lion brand Yarn in New York. Five generations later, the family is still running lion brand.

the first commercial telephone exchange begins in New haven, conn.

whitcomb l. Judson patents his “clap-locker.” today we call it a zipper.

New Zealand becomes the first country to enact women’s suffrage.

crafting timeline

1649

1720

1792

1839

1856

1871

1893

1689

1662

1790

1812

1841

1863

1600’s

1700’s

1800’s

1878

Friedrich staedtler creates the first wood-cased graphite pencil in Nuremburg, germany.


Compiled by Mike Hartnett

edwin binney and his wife alice, of binney & smith, create wax crayons which are sold under the brand name crayola.

the wright brothers fly the first heavier-than-air airplane.

what is now MacPherson’s, the industry’s largest art materials distributor, begins business in Montana as a distributor to the shoe repair trade.

the san Francisco earthquake kills about 3,000.

hans august Prym establishes william Prym Inc., in New York to import and distribute the company’s products. In 1988 the company acquires the dritz corp., which had started in the 1920s by John dritz, a purse manufacturer.

J. edgar hoover is picked to head the new Federal bureau of Investigation.

the art material company, grumbacher, is founded by Max grumbacher. It is now owned by chartpak.

albert einstein formulates his theory of relativity.

dick and grace blick mail their first pamphlet selling a lettering pen. the business grows into dick blick, the largest and oldest provider of art materials in the U.s.

roald amundsen reaches the south Pole.

the Muselman family launches economy Printing concern, which evolves into drg (dynamic resource group) and now includes annie’s, country sampler, and strategic Fulfillment group. the company is led by the grandsons of the founders.

Frederick Mink sr. starts FM brush with three employees. today it has more than 350 employees producing and selling more than 17,000 skUs, led by four of Frederick’s descendants.

a.I. Friedman opens its first store in New York serving the retail sign making and art supply industry.

wall street crashes, starting the great depression.

1903

1906

1924

simplicity Pattern is launched, selling patterns for 15 cents each.

charles lindberg flies across the atlantic to Paris.

1927

henry levinson starts Permanent Pigments in cincinnati and concentrates on producing oil paint.

1933

robert Metzenberg buys dick blick. the family-owned business is now lead by the third generation. by 1984, the catalog had grown to more than 400 pages.

dupont invents orion, the first acrylic fiber, which eventually led the way to acrylic yarn.

1941

the Model Industry association is formed, a precursor to hIa and then cha.

Franklin delano roosevelt is elected to a third term as president.

1940

cleveland Fabric shop opened, which later changed its name to Jo-ann Fabrics, then Jo-ann Fabrics and crafts.

1900’s1905

1925

1929


1911

1943


This issue includes part one of an industry timeline, key dates in industry history. I suggested the topic months ago as a magazine

article, but as I worked on it, I learned more and more fascinating stories about the humble beginnings of many (most?) of the industry’s well-known companies.

There are too many wonderful stories that are too good to squeeze into one magazine, let alone one article, so this will be a series.

For example, the biggest, most well-known industry names may seem pretty formidable today, but that was not how they started. Take our largest retailers, for example.

• In 1939, two couples that had fled Germany open a cheese shop in Cleveland. A son convinces them to sell fabric in the front of the store. That was the beginning of Jo-Ann stores.

• In 1954, World War II veteran pilot Pasquale Catanzarite uses his life savings of $200 to open a shop in Cleveland. It was the beginning of Darice, Inc., now the largest full line craft company in the U.S.

• In 1957, Elaine and H.D. Hancock open a store in Tupelo, Miss., and call it Hancock Fabrics.

• In 1962, a Ben Franklin retailer in Arkansas asks the corporate office for permission to turn his shop into an all-discount store. The Ben Franklin bigwigs refuse, so Sam Walton drops his Ben affiliation and calls his store Wal-Mart.

• In 1972, David Green opens his first store, all of 300 square feet, and names it Hobby Lobby.

• In 1973, Michael Dupey is operating Ben Franklin stores in Dallas when he hears about Mangelsen’s, a former Ben Franklin store in Omaha that had switched to an all-craft format. He visits the store

and returns home and changes to a similar format. He changes the name of the stores, too: Michaels.

• In 1985, Jack Parker opens the first A.C. Moore store in Moorestown, N.J.

And that’s just a handful of retailers. The stories of the early days of some independents, publishers and manufacturers are just as amazing. Collectively, these stories have lots to teach us.

• Just because you start small doesn’t mean you’ll stay that way.

• If it weren’t for garages and kitchen tables, we wouldn’t have an industry, because just about everybody started at one or the other.

• Everybody changes with the times. Plaid, for example, once sold wallpaper for miniature dollhouses. Michaels sold wicker lawn furniture.

I’ve said it before, and I still believe it: The theme song for the industry should be Elton John’s “I’m Still Standing.”

And I realize now that this series will never end. The industry is packed with so many creative, entrepreneurial people that key dates in industry history will continue to occur. What will future historians say about 2014? About you? ●

From tiny acorns …By Mike Hartnett

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The biggest, most well-known industry names may seem pretty formidable today, but that was not how they started.

— Mike Hartnett

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Ideas. strategIes. News. - Darice€¦ · Ideas. strategIes. News. Craft r Spring ’14 An organization’s ability to learn, and translate that learning into action rapidly, is the