
Craft Industry TrendsKey results from the custom study, which currently tracks the U.S. craft and hobby industry at $30.2 billion for annual retail sales, were presented by Margaret Hung, director, Ipsos-Insight Consumer Products, the market research company responsible for compiling the data, and Sandy Ghezzi, vice president, Marketing, Member Services and Education, CHA. "As the only industry research of its kind, this extensive study provides a wealth of useful information to every segment of our membership," explains Ghezzi. "These study results can help our members develop effective sales, marketing tactics and product innovations that respond to the latest breaking trends and purchasing behaviors of today's crafter." Fielded monthly and reported quarterly by Ipsos-Insight Consumer Products, the quantitative research methodology includes mail surveys tracking 38 craft segments within four broad craft categories: General Crafts, Needle & Sewing Crafts, Painting & Finishing Crafts and Floral Crafts. Among the key findings presented for the 12 months ending 11/30/06: Craft Industry at $30.2 Billion - The U.S. craft and hobby industry was tracked at $30.2 billion for annual retail sales, -1.4 percent vs. year-ago. Overall the industry has grown since 2002 with a four year compound annual growth rate of +2.6 percent. 57 percent of US households (62 million) participated in crafts last year. Spending Per Household - The annual spending per crafting household averaged $476. Top 10 Selling Crafts - Scrapbooking/Memory Crafts led the way with $2,446 million in sales followed by Home Décor/Painting/Accessorizing/Finishing at $2,405 million in sales. These were followed in descending order by: Art & Drawing; Other Painting & Finishing; Floral Arranging; Beading/Bead Crafts, Card-Making; Woodworking; Crocheting and Apparel/Fashion Sewing. Sales by Retail Channel - Discount and Craft Chain Stores accounted for over half of industry sales. Specifically, Discount Stores brought in $8,632 million - 29 percent of sales, while Craft Chain Stores accounted for $8,113 million or 27 percent of overall sales. Purchasing Patterns - Sales of crafting materials are highest in the winter months of December, January and February. March is the lowest sales period. National promotions, like "National Craft Month" in March, have been established by CHA to drive consumer awareness and crafting. Craft Shopping Patterns - Crafters are most likely to shop for supplies when they are starting a new project and taking advantage of sales. In addition, only 14% of crafters stated that they always have a specific purchase in mind when they go craft shopping. Instead, most purchases are made on impulse. Unadvertised in-store sales were credited with encouraging these unplanned purchases. Category Profiles - The study also provided profiles designed to identify crafting individuals and households most likely to participate in each category - General Crafts, Needle & Sewing Crafts, Painting and Finishing Crafts, and Floral Crafts -- to help retailers and manufacturers create effective marketing promotions that appeal to these crafters.
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