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Open Market
Listed under: One Voice
Published: Thursday, March 22, 2007
Here, Ian Bowers, managing director of George Weil & Sons Ltd, scrutinises the craft industry
We currently see the overall market for craft materials as static, possibly declining. Over the past eight years personal disposable income has been increasingly diverted away from home based activities into technological gizmos for the younger and travel for the older consumers. This may well be coming to an end, and it is up to suppliers to use the new sales channels specifically the internet, e-commerce and Ebay, in attractive ways to regain lost customers and sales.
We supply a wide range of customers interested in textile based art and craft. This market is split into several sectors. There is the traditional ‘home maker’ sector, where the buying decisions are made for themselves and younger family members by a mother figure. People are now much less inclined to spend income on projects or to give as gifts. Then there is the education sector, from nursery to university, which is increasing purchasing activity and diversifying its buying into new supply sectors. Finally, there is the professional market where the products are being made for sale; this is steady, possibly growing. However, new and of real interest and growth potential, is the overseas market. The internet, with the ability to offer English language e-commerce enabled sites with multi-currency pricing, can open up serious opportunities, which were not available even two years ago. Certainly it is necessary to structure the site to give the overseas buyer confidence to buy in new (to them) ways, and to price the delivered goods competitively. Most craft related sites, in whichever country they are based, do not meet these conditions. Those that do can see real sales growth.
Get innovative
I have already noted that, in my view, the home maker sector, which has traditionally encouraged craft skills in the younger generation, is declining in its own level of activity. And I suspect the opportunities to ‘learn at the feet’ of experienced craftsmen are even more reduced given the number of alternative attractions to the young. Certainly the craft supply sector will wither and die on its feet if it does not support and encourage young replacements.
We have taken the view that allowing a discount to genuine education establishments, for school sized orders, is one way. More importantly we have worked with a number of teachers and tutors to develop education packs. These both supply the materials and help the teacher to understand the process and then successfully lead a class, for example, felt making, block printing, 3D design and paper making products. The feedback suggests that innovation is the order of the day, and the ideas coming forward will, most certainly, not damage traditional work but, rather enhance it.
I am always hugely impressed by, and grateful, for the retailers who set up and run workshops. It takes a great deal of administrative effort, nerve and willingness to take financial risk, and in the end rarely pays a minimum wage for all the hours involved. True, it leads to sales downstream for them, but without these good people, fewer retailers would be around today. We simply do not feel our skills or manpower could cope with this pattern of working, so here is a very public ‘thank you’ to those who do!
We do offer a trade discount on a range of products, to genuine trade accounts, with a VAT number or programme of advertising. However, ‘grey’ traders working off the ‘kitchen table’ and selling through Ebay or to local guilds for enough of a margin to add to their holiday fund and little more, have pushed prices down and sliced into margins. There is often little left for serious support to push the product through the retailer. The internet offers many opportunities and brings many threats.
Finally, I have one simple question; how many involved in supplying the craft sector are confident that they are earning at least the minimum wage for the hours put in and, if that threshold is met, how many are then earning a reasonable return on the capital they have invested? I'm interested in hearing your responses.
We supply a wide range of customers interested in textile based art and craft. This market is split into several sectors. There is the traditional ‘home maker’ sector, where the buying decisions are made for themselves and younger family members by a mother figure. People are now much less inclined to spend income on projects or to give as gifts. Then there is the education sector, from nursery to university, which is increasing purchasing activity and diversifying its buying into new supply sectors. Finally, there is the professional market where the products are being made for sale; this is steady, possibly growing. However, new and of real interest and growth potential, is the overseas market. The internet, with the ability to offer English language e-commerce enabled sites with multi-currency pricing, can open up serious opportunities, which were not available even two years ago. Certainly it is necessary to structure the site to give the overseas buyer confidence to buy in new (to them) ways, and to price the delivered goods competitively. Most craft related sites, in whichever country they are based, do not meet these conditions. Those that do can see real sales growth.
Get innovative
I have already noted that, in my view, the home maker sector, which has traditionally encouraged craft skills in the younger generation, is declining in its own level of activity. And I suspect the opportunities to ‘learn at the feet’ of experienced craftsmen are even more reduced given the number of alternative attractions to the young. Certainly the craft supply sector will wither and die on its feet if it does not support and encourage young replacements.
We have taken the view that allowing a discount to genuine education establishments, for school sized orders, is one way. More importantly we have worked with a number of teachers and tutors to develop education packs. These both supply the materials and help the teacher to understand the process and then successfully lead a class, for example, felt making, block printing, 3D design and paper making products. The feedback suggests that innovation is the order of the day, and the ideas coming forward will, most certainly, not damage traditional work but, rather enhance it.
I am always hugely impressed by, and grateful, for the retailers who set up and run workshops. It takes a great deal of administrative effort, nerve and willingness to take financial risk, and in the end rarely pays a minimum wage for all the hours involved. True, it leads to sales downstream for them, but without these good people, fewer retailers would be around today. We simply do not feel our skills or manpower could cope with this pattern of working, so here is a very public ‘thank you’ to those who do!
We do offer a trade discount on a range of products, to genuine trade accounts, with a VAT number or programme of advertising. However, ‘grey’ traders working off the ‘kitchen table’ and selling through Ebay or to local guilds for enough of a margin to add to their holiday fund and little more, have pushed prices down and sliced into margins. There is often little left for serious support to push the product through the retailer. The internet offers many opportunities and brings many threats.
Finally, I have one simple question; how many involved in supplying the craft sector are confident that they are earning at least the minimum wage for the hours put in and, if that threshold is met, how many are then earning a reasonable return on the capital they have invested? I'm interested in hearing your responses.














