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The UK Craft Industry – A Personal View
Listed under: One Voice
Published: Friday, November 10, 2006
House on the Corner is a moderately successful, independent craft retail business in East Lancashire, run by myself and my wife, Lorna. The business was established over three years ago after we received a handmade Christmas card from a work colleague. Lorna has always been the arty type and was curious about how it had been constructed. "I could do that!" she exclaimed somewhat surprised that making greetings cards had never occurred to her before. So in the fine tradition of 'cottage industries' up and down the land we developed 'Handy Crafts' and Lorna set about making cards and teddy bears. The rest, as they say, is history and despite a number of trials and tribulations, our business is going from strength to strength.
But for just how long?
As the UK crafting industry has moved into overdrive, many small independents, the very businesses that have created the surge in interest and enabled the suppliers to grow in the UK market, have found themselves in unfair competition with large-scale retailers that have leapt onto an increasingly speeding bandwagon. Those who normally would be more concerned with selling consumers their daily bread and milk, discount books, household appliances or catalogue goods, are now cashing in on craft. Many UK based distributors have obviously wanted to supply the large retail chains with the latest products, often with exclusive deals that small retailers have little or no access to.
The advocates of such commercialisation, which includes some of the aforementioned distributors would have us all believe that it provides new customers wider access to crafting products, lowered prices and has raised the profile of crafting generally. In reality it has served only to give the 'big boys' access to a perceived 'gravy train' and short term profits, which has done the participating suppliers no harm at all - or so they would prefer us to believe.
Everyone likes a bargain and it would be self destructive for small businesses to believe that craft retail is anything more than simply a profit making enterprise and a way of making a living. Crafting however, means far more than that to our customers. To them it is a hobby that allows them to socialise, seek out ideas, share knowledge, even give beautiful handmade creations to others and to be excited about innovative products. All of which encourages and enables that one thing that many of us believe is the privilege of the gifted - creativity!
Retail competition is a good thing. It provides customers with choice, maintains sensible prices, prevents retailer complacency and strengthens the profile of the industry as a whole. However, competition becomes damaging when it results in a glut of cheaper, poor quality products masquerading as the latest trend, as is inevitable when everyone is trying to 'out do' everyone else and capture a finite customer base. How many of us who like to seek out and purchase bargains are actually willing to accept poor quality or bad customer service?
For the small independent businesses, competition often means having a different product range, something a bit unusual to whet the creative appetite of the crafter. That is the challenge to the distributor and the factor that will maintain the upsurge in crafting generally. The type of competition the larger retail companies are interested in is finding cheaper (thus maximising profit), imitation product lines that they can shave a little off the market influenced recommended retail price, thus making the customer believe they have bought the same product from the superstore for a lower price than the local craft shop - often they have not!
How many crafters would like to see their favourite pastime swallowed up by, and available only at, the superstores?
Many small independents have gone out of business over the past 12 months and unfortunately, more may follow suit. Whilst I am not solely blaming the over-commercialisation of crafting for their demise, I would point out that the market place can only cater for so many businesses supplying so many customers.
It will be a crying shame, bordering on a travesty, if the only victims of the current abundance of outlets were the smaller shops – as is the case with bakers, butchers and newsagents.
As always it is ultimately up to the customers to decide the future of the UK craft scene. Do they simply want cheap imitations and bargains, or are they prepared to pay the market price for a product that comes with specialist advice, demonstrations, workshops and the personal attention only available at those remaining independent craft retailers? Only time will tell.
As the UK crafting industry has moved into overdrive, many small independents, the very businesses that have created the surge in interest and enabled the suppliers to grow in the UK market, have found themselves in unfair competition with large-scale retailers that have leapt onto an increasingly speeding bandwagon. Those who normally would be more concerned with selling consumers their daily bread and milk, discount books, household appliances or catalogue goods, are now cashing in on craft. Many UK based distributors have obviously wanted to supply the large retail chains with the latest products, often with exclusive deals that small retailers have little or no access to.
The advocates of such commercialisation, which includes some of the aforementioned distributors would have us all believe that it provides new customers wider access to crafting products, lowered prices and has raised the profile of crafting generally. In reality it has served only to give the 'big boys' access to a perceived 'gravy train' and short term profits, which has done the participating suppliers no harm at all - or so they would prefer us to believe.
Everyone likes a bargain and it would be self destructive for small businesses to believe that craft retail is anything more than simply a profit making enterprise and a way of making a living. Crafting however, means far more than that to our customers. To them it is a hobby that allows them to socialise, seek out ideas, share knowledge, even give beautiful handmade creations to others and to be excited about innovative products. All of which encourages and enables that one thing that many of us believe is the privilege of the gifted - creativity!
Retail competition is a good thing. It provides customers with choice, maintains sensible prices, prevents retailer complacency and strengthens the profile of the industry as a whole. However, competition becomes damaging when it results in a glut of cheaper, poor quality products masquerading as the latest trend, as is inevitable when everyone is trying to 'out do' everyone else and capture a finite customer base. How many of us who like to seek out and purchase bargains are actually willing to accept poor quality or bad customer service?
For the small independent businesses, competition often means having a different product range, something a bit unusual to whet the creative appetite of the crafter. That is the challenge to the distributor and the factor that will maintain the upsurge in crafting generally. The type of competition the larger retail companies are interested in is finding cheaper (thus maximising profit), imitation product lines that they can shave a little off the market influenced recommended retail price, thus making the customer believe they have bought the same product from the superstore for a lower price than the local craft shop - often they have not!
How many crafters would like to see their favourite pastime swallowed up by, and available only at, the superstores?
Many small independents have gone out of business over the past 12 months and unfortunately, more may follow suit. Whilst I am not solely blaming the over-commercialisation of crafting for their demise, I would point out that the market place can only cater for so many businesses supplying so many customers.
It will be a crying shame, bordering on a travesty, if the only victims of the current abundance of outlets were the smaller shops – as is the case with bakers, butchers and newsagents.
As always it is ultimately up to the customers to decide the future of the UK craft scene. Do they simply want cheap imitations and bargains, or are they prepared to pay the market price for a product that comes with specialist advice, demonstrations, workshops and the personal attention only available at those remaining independent craft retailers? Only time will tell.
Whilst I agree that over-commercialisation could be the downfall of many independent craft retailers, I also believe that we have to work harder to keep your loyal customers.
This means capitalising on your unique selling points, which, in the main, means excellence in customer service and, more importantly, the specialist knowledge the industry demands.
It is gratifying that some supppliers are recognising this and offering demonstrations. You all know that this sells product like nothing else. So the effort has to be put in to keep your customers returning again and again. And, as Terry Leahy from Tesco says - “listen to your customers” - they will tell you more about how to provide great customer service than anyone or anything else. Have a comment book and reply to them - give out leaflets in every bag with forthcoming events, offers etc. - they only need to be A6 and photocopied. And extract every bit of knowledge you can from your supppliers - how are other independents doing - what do they do to keep up their USP?
It’s very hard work - but it will pay dividends. I am a great believer in marketing, but if it’s not your forte, use plegarism - and websites are the greatest source of information.
Mike, I hope that the result of the extra push to new consumers from the involvement of the multiples has resulted in the growth of many more people like Lorna saying “I can do that” and then wanting better quality advice from your expertise. I have suffered from lookalikes of our “Creative Hands” products appearing in both Asda and Tesco so wholesalers have also been affected by the multiples. I hope that consumers will try their offering and then trade up to the quality of our branded product. Am I too optimistic?
Mark
Consumers do recognise the independant store is the place to go for advice, however there is little to stop them taking this advice and then buying elsewhere be it superstore or on the net.
Have any independents found a way of dealing with this.
Lynnda
I have found one of the solutions to this present problem for you all, as a retailer for over 8 years, we have all seen a massive jump in the number of craft shows that have appeared in our areas, so this year we designed our own range of stamps did our first show this weekend and made a bomb, so instead of just waiting for the customer to come to you, go and get the money you are entitled to bid for! With over 24 shows in operation this year and guess what they are all your locals that are holding on to their cash to attend them, I have seen the light, so if you cannot beat them join them. I was also appauled that I was probably one of only a handful of actual retailers who attended, the rest were our beloved back kitchen sellers and internet companies who are taking us all down by attending our areas and then they are gone with our beloved customers cash, so fight back or just let them win, the choice is yours and every show is very happy to give you a pitch, you as a business just have to be confident enough to make it work!
Steve stuart
I am also a craft retailer in the North West and agree with Mike 100%
But we have (especially in this area of the country) an even bigger threat in my opinion from TV shopping channels - see my comment on the back page of this months Craft Business magazine
As retailers we all work so hard, Im often at the point of exhaustion from long hours and stress.
The last thing I want to see when I switch on the TV is a certain local craft “celebrity” directing customers to her Lancashire shop and website
There are other craft retailers in the North West but we dont all have the luxury of free advertising
And anyway, Cardmaking is not the only craft but if you landed on this planet tomorrow and looked at the Uk craft industry you could be mistaken for thinking it was!
Julie Bull