Industry Interrupted Crafts and hobbies have been slow

Industry, Interrupted ♦ Crafts and hobbies have been slow to recover from the Recession, since most consumers consider them discretionary purchases. Many small, independent retailers closed or were acquired through consolidation. ♦ Fabric, craft and sewing supplies stores generate approximately $5 billion annually, but annual growth for 2008– 2013 was only 0. 1%. 81. 2% of these retailers had no paid employees during 2013. ♦ Michaels Stores is the largest crafts retailer in the US with more than 1, 000 stores and Jo-Ann Stores is the #1 US fabric retailer with more than 770 stores.

Creative Crafters ♦ According to the Craft & Hobby Association, 62. 5 million people were working on one or more crafting projects during 2012. ♦ Most crafters, 72%, were women with a median age of 35– 44. In addition, 47% of crafters have participated in their craft for ten or more years. ♦ The largest crafting communities were scrapbooking/card making/paper crafting, with 23 million participants, and painting/drawing/calligraphy/print making, with 21 million.

A Brighter Tomorrow ♦ Hobby and toy stores have had even more difficulty recovering from the Recession than craft stores. The $16 billion industry experienced a 1. 2% decrease in annual growth during 2008– 2013. ♦ Most hobby and toy retailers are small and independent, with more than 70% of them single- or family-owned. They’ve decreased from 21, 782 during 2007 to 19, 133 during 2012. ♦ The top four companies increased their market share from 82% (2007) to 87% (2012). The hobby and toy sector is forecasted to grow at 4% per year from 2013 through 2017.

Saved by Trains ♦ The US model hobby industry increased sales 3% during 2012, to $1. 31 billion, due primarily to a 22% increase in model railroad product sales. ♦ Of the other three major model hobby product segments, plastics and die cast registered a 15% decrease from 2010 to 2012; and radio control and general hobby, a 28% decrease each. ♦ Many retailers are trying to appeal to a younger audience, with 95. 7% of them marketing on Facebook and 52. 2% engaging with the Twitter audience.

On Point ♦ During 2012, 31. 5 million adults participated in needlearts compared to 29. 5 million during 2008. Total niche spending was $808 million. ♦ There were approximately 3, 100 independent brick-and-mortar and online retailers in five categories: counted thread, needlepoint, mixed needlearts, yarn and related fiber/crafts. ♦ Knitting enthusiasts spent the most of the six major categories, at $414 million. Needlepointers spent the highest average, at $1, 517, with spinners second, at $1, 164.

Advertising Strategies ♦ Help craft stores find innovative ways to market during March, which is National Craft Month, utilizing less-costly day parts to reach the prime female audience combined with online ads. ♦ Suggest that hobby and toy retailers highlight a specialty in their spots to distinguish them from the big-box retailers, and to utilize social media to build a loyal customer base. ♦ Recommend that independent and non-competing retailers pool their advertising resources to promote crafts and hobbies as creative and stressreducing activities.

Advertising Strategies ♦ Show major and local retailers how your station’s daytime programming reaches the prime female scrapbooking audience. Also recommend that craft and hobby retailers devote a healthy portion of their advertising budgets to TV to reach the retiring Baby Boom generation, which is also the Television Generation. ♦ In addition to advertising on television, some craft stores operate websites with reference libraries, how-to guides, and online forums for customers to share knowledge and ask questions. These websites should be promoted in their traditional television ads. ♦ Stores that offer specialty products and on-site classes and workshops will be able to compete with impersonal chains and mass merchandisers. These are great points of differentiation to advertise, and can make your store well worth the trip.