Understanding the CraftsGift Markets in the US

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Understanding the Crafts/Gift Markets in the US

• Robbie Stewart and Maria Machado
• From

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Market Analysis

• SEE GEORGE LITTLE MANAGEMENT SLIDESHOW

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Understanding Consumer Trends

• Use the internet to research
• Collect magazines and catalogs
• Ask your suppliers for feedback
• Use local resources such as the US Embassy and US
  AID library
• Pay attention to programs like CNNs Design 360

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Understanding Consumer Trends

• www.artandartifact.com
• www.swahili-imports.com
• www.hfmus.com
• www.aidtoartisans.org
• www.target.com
• www.marthastewart.com
• www.giftandhomepreview.com

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Trends that we have identified

• African influenced design is gaining popularity -
  Away from ethnic, towards comtemporary
• Recycled products are more in demand
• Bringing together design and function in a
  product
• Colour is popular always!
• Pampering and personal care items

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Target Customer Profiles

• High-End retailers
• Mass merchandisers
• Discount stores
• Catalog/Web retailers
• Wholesalers

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High-End Retailers

• Examples - Smithsonian, National Geographic,
  small specialty shops
• Quality is a key factor
• Volumes not that high
• Service is important
• Uniqueness and exclusivity are valued

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Mass Merchandisers

• Price
• Volume
• Consistency
• Durability
• Primarily interested in what sells well

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Discount Stores

• Price
• Volume
• Consistency
• Durability
• Close-outs or discontinued items
• Lowers the perceived value of your product in the
  market

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Catalog/Web retailers

• High markups
• Volumes can be good
• Consistency
• Items must be individually packed in re-shipper
  boxes
• Telling a story about the product is important

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Wholesalers

• Very committed to the product and its social
  benefits
• Their marketing costs are extremely high
• Usually in it for the long-term
• Tend to be the most stable, long-term prospects
• Know the market and how to market your products

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Competitive Analysis (SWOT)

• Strengths
• Weakness
• Opportunities
• Threats

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Pricing of Craft Items

• Recommend 2 to 2.5 times your production cost
• May be different for different channels of
  distribution
• Consider volume constraints
• Competitors pricing
• Exclusivity can others produce your product
• Quality control

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Channels of Distribution

• Direct to Consumer online/catalog sales, retail
  (stores or shows), direct selling
• Direct to Retail
• Direct to Catalog/Web retailer
• Wholesaler

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Finding the right Partner(s)

• What are your objectives?
• What benefits can you provide?
• What support do you need from your partner?
• Are you looking for short-term or long-term
  results?
• What barriers exist to enter the market?
• What features differentiate you from your
  competitors?
• How do you add value to the relationship

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Developing Successful Partnerships

• Give your customer what they want
• Show the customer that they are important to you
• Provide the support that you can
• Give the customer tools that help sell your
  product
• If problems arise, solve them
• Focus on your objective

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Creating Key Promotional Pieces

• Outsource Catalogs, line sheets, brochures
• Outsource Website development
• Produce your own PR
• Create a digital catalog of your products,
  artists, and stories

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The Natural Planning Model

• Youve got to think about the big things while
  you are doing the small things so that all the
  small things go in the right direction - Alvin
  Toffler

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Mind-Mapping and Brainstorming

• No judgement, challenge, evaluation, criticism
• Go for quantity, not quality
• Put analysis and organization in the background

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Mind-Mapping and Brainstorming

• No judgement, challenge, evaluation, criticism
• Go for quantity, not quality
• Put analysis and organization in the background
• Rainbow

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The Natural Planning Modelby David Allen Co.

• Clarify Purpose and guiding principles (Why and
  Indentifying Standards
• Define Mission, vision, successful outcome (What)
• Brainstorm (How Part A)
• Organize (How Part B
• Decide next action(s) (Now)

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The Natural Planning Modelby David Allen Co.

• Simple, clear purpose and principles give rise to
  complex and intelligent behavior. Complex rules
  and regulations give rise to simple and stupid
  behaviour Dee Hock

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The Natural Planning Modelby David Allen Co.

• Purpose
• Why am I (are we) doing this?
• The Purpose should reflect the primary criterion
  for making decisions about the goals, the
  organization and the priorities of the project or
  the organization. It should reflect the benefit
  to all the stakeholders. It is a motivational
  factor not a differentiating factor

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The Natural Planning Modelby David Allen Co.

• Guiding Principles
• What rules do we play by?
• Guiding principles represent the standards that
  are most important to hold in making decisions in
  situations and they reflect all choices,
  conscious or not. Principles can range from the
  loftiest (We serve God in all we do) to the most
  mundane (We have fun at work).

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The Natural Planning Modelby David Allen Co.

• Mission, Vision, Successful Outcome
• The mission/successful outcome and vision
  describe what you are going to do to manifest the
  purpose. The mission/successful outcome has a
  finish line and a specific time frame for its
  achievement. It is the long-term goal or
  objective.
• The VISION is the mission described as having
  been achieved in vivid detail. It should release
  peoples passion and generate the commitment to
  achieve high performance (keep it at least 50
  believable

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The Natural Planning Modelby David Allen Co.

• Mission, Vision, Successful Outcome
• View from beyond the completion date
• Envision wild success
• For me
• For my customer
• For my company
• For my cooperative
• Capture feature, aspects, qualities in place
• Imagination is more important than knowledge
  Albert Einstein

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The Natural Planning Modelby David Allen Co.

• Brainstorm
• What are all the things that occur to you about
  making this happen
• No judgement, challenge, evaluation, criticism
• Go for quantity, not quality
• Put analysis and organization in the background
• Mind-map the project

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The Natural Planning Modelby David Allen Co.

• Ogranizing
• Identify significant pieces
• Sort by (either/and)
• Components
• Sequence
• Priorities
• Detail to the required degree

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The Natural Planning Modelby David Allen Co.

• Next actions
• What is the next action required on any and each
  of the current moving parts of the project
• What is the next action on the planning process
  (if any)