"Without faith, nothing is possible. With it, nothing is impossible."

-- Mary Bethune

by Jami Petersen

What should the scrapbooking industry be doing in the face of an economic tsunami? Do we bunker down and prepare for the worst or can we be proactive and turn the tide? Dennis Conforto shares his sandbags and his advice for avoiding disaster in week's Business SMART article. 

Jami Petersen
newsletters@a-z.com

Tragic Magic

Tragic Magic

The next Scrapbooking mystery takes readers back to New Orleans, where there are spookies, foodies—and crafty killers. Carmela, owner of Memory Mine scrapbook shop, and her best friend have a big project converting an old mansion into an unforgettable haunted house. But when Carmela’s client turns up dead, she finds herself in some deep gumbo again. Discover more Tragic Magic including recipes and scrapbooking tips.

Click here to learn more about this scrapbooking mystery...

Press Releases

News you can use about the latest media coverage of hot trends, noteworthy events and dynamic industry leaders. Learn more about the current headlines in arts and crafts by clicking on the title of each article segment.
 

 

Wilton Brands Inc. Announces Resignation of Richard Conti, Chief Executive Officer. Commenting on his departure Rich said, “The Board and I both feel that Wilton’s new owners should have the opportunity to establish new CEO leadership for the Company. I’ve enjoyed my time with Wilton and wish everyone continued success.” The resignation comes days after Wilton brands settled a Chapter 11 petition with its largest creditor.

Fiskars celebrates its 360th anniversary. The company was founded in 1649 when the Dutchman Peter Thorwöste was granted permission by Queen Christina of Sweden to build an ironworks on the banks of the River Fiskars in southern Finland. Over the centuries since then, what started as a small business has grown into a consumer products company with operations worldwide and is now one of the oldest companies in Europe still in operation.

Tiny Prints Announces Launch of Nationwide Talent Search. Tiny Prints, a recognized leader for premium, personalized stationery, is excited to announce the launch of its nationwide search for America's cutest families, couples and children (up to age 10). This holiday season, anyone who wants to star in the Tiny Prints 2010 advertising campaign can submit their best photo to the Tiny Prints Talent Search for a chance to become the face of Tiny Prints and win $1,000! From November 2 through November 27, 2009, participants from across the country are encouraged to visit www.tinyprints.com/talentsearch to upload their best photo for the opportunity to win a spot in an upcoming advertising campaign.

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by Dennis A. Conforto, A-Z Media Group, Inc.

In 2005, the scrapbooking industry sales leveled off for the first time in its history. In 2006, the industry sales went down 15%, despite what the experts were saying. In 2007, sales once again slipped by about 10%, with many industry leaders denying the fact that independent retailers were failing at a rapid rate.

Now we are ending 2009 and there are less and less newbies coming into the craft sector of scrapbooking. About 60% of the independent retailer base is in trouble, many now knowing already that they are not going to survive. We believe that 40% to 50% of the independent retailers will shut their doors in 2010.

While many in the industry believe we only need to make slight adjustments and changes, it is clear that sweeping changes need to take place in the industry to prevent more damage. I talked about the two worlds of scrapbooking and how digital scrapbooking is already larger than the craft-oriented option, in terms of market share and acceptance. Yet the craft side of our industry is in total and complete denial of these facts. As a result, many turn their backs and pretend it is 1998. They do the same things now that they did then only to find its not working. A recession is coming, and the Scrapbooking industry has been slow to adapt. Many more will fail.

There is a silver lining, the failure rate of so many will cause the industry to understand what they must do collectively to shift, to change, to adapt, to improve, in order to survive. When you shift into survival mode, you become open to new ideas, because the status-quo thinking failed. Changing in a weakened state makes it harder to adapt and change quickly. This is why great companies change right in the middle of their own success; they must understand that the lead within the industry cannot be subjected to the whims of the market place.

It didn’t have to be this way. We now know change is best made when everything seems perfect. Those with experience know the best time to improve is while you have the profits to properly invest in those changes. It’s the ability to see where things will go and begin the process of change.

When the great depression hit the United States in the late twenties and throughout most of the thirties, it wiped out banks, businesses and even many cities. Yet during those awful times new millionaires were created, new businesses were formed and flourished and slowly but surly the economy got back on track.

So the question is how does one turn the tide to make their business more recession-proof and change-oriented. The first rule of business is to deal with both of these issues at the same time and use our personal abilities to lead. Leaders would rather wage war with their own ideas than wage war with the ideas of others. When you wage war with the ideas of others you are following a trend. You are not leading it, you are already late to the market.

Leaders are the best at asking themselves questions then finding the answer and implementing the idea into a reality. Leaders set the pace because they are pushing for the market advantage. Retailers might think that if they are the first to get a product that is leadership. You might have the advantage of a month or two, but leadership is more.

Real leadership is not found in who got the product first, but who found new ways of attracting newbies into the store and converting them to scrapbooking junkies. That advantage might last for years, depending on what you do and how you do it. Others may not be able to afford your idea because you had the advantage of momentum with in your market place or niche.

So let me give you some of the right questions a leader in manufacturing or retailing might ask of themselves now.

1. Since digital is growing so fast how can I make as much profit or more with that option added to my paper- or craft-oriented business model?
2. How do I use my new-found digital profit to grow my craft-oriented business model?
3. How do I increase sales to the male gender with my new business model so that my business mix is 40% male and 60% female?
4. How do I plan a business model for consumers and corporations so that I can increase my average transactions by 10-fold?
5. How do I create a loyalty program within open social networks or social communities that generate sustained business year after year?
6. How do triple my inventory turn rate so that I am cash-flow rich?
7. How do I create ads that are measureable and that really work when I run them?
8. How do I have SKU’s or products that maintain solid sales for 52 weeks not 52 days?
9. How do I create online sales without damaging but rather enhancing my current business model?
10. How do I make 10% after-tax profit within my business that is experiencing growth year after year?

In the relationship between the retailer and the manufacturers these questions should be asked of each other often. I wonder how many retailers have gone to a booth at a trade show and said, “I want to have a business mix of 40% male and 60% female. What do you have for me to make that a reality?” If asked by enough retailers, I know manufacturers would start to supply the demand.

The challenges we face within the industry right now are many. But they are only overwhelming if we try to do the same thing in a changing world. Some of us don’t like change because we are set in our ways. Or we don’t want to know about the new ways of doing business when we are comfortable with the old ways. If history has proven anything, it is, “out with the old and in with the new”.

Change is the very nature of business. Every retail giant today started out as a completely different business. Nordstrom’s was a shoe store in Seattle; Wal-Mart’s roots came from Sam Walton’s ownership of a Ben Franklin store. Kinko’s is a long way from being the simple copy center it once was. They had no idea that they would change that much, but they did to grow and expand. Change was at the very core of their success. Change is not to be feared but embraced; those who are in business must race to be the first to change and to lead the way. My job is to share with you the future, so you can change today in a logical way that protects your investments, your business, your personal security and your future profitability. And that is what being business SMART is all about.    

The Memory Tradeshow

The Memory Tradeshow is the premiere market for scrapbooking and related products, family history and digital imaging.

It is the most important gathering of this industry regionally, and it’s attracting executives from all sectors: manufacturers, retailers, distributors, suppliers, sales reps, designers and press. The show’s goal is to provide the highest ROI show within the industry with a greater focus on the business of the memory industry, education and best business practices.

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Creative Imaginations and Luminarte join forces

Luminarte, whose paint brand is well recognized for its unparalleled brilliant colors and shimmering luminosity, is now a part of the Creative Imaginations (CI) family. CI is committed to retaining the high quality of these products while expanding the market. Leslie Ohnstad, the creator of these well-adored products will continue to be involved, particularly in new product development. This is just the beginning...

The Winter 2010 CHA release will include three products in a dazzling array of colors. Twinkling H20s will be available in the top-selling 36 colors conveniently packaged in 10 gm. paint pots which will be sold individually and the in 5 gm. paint pots sold in consumer-friendly color-coordinated multi 6 packs. Complementary vibrant colors will also be available in Radiant Rain Pure Color Concentrate and Radiant Rain Shimmering Mists.

Luminarte’s products are easy to use and can be applied on a wide variety of surfaces and products, creating a multitude of finishes. Creative Imaginations is now a one-stop-shop providing hundreds of surfaces to decorate with their Bare Elements line, papers, embellishments and now paints. CI plans to support all its products with a significant educational program featuring projects, make ‘n takes and curriculums.

Creative Imaginations has been in business almost 25 years and credits its success of providing a wide variety of quality scrapbook products to its many great relationships with licensed artists, brands and now product creators. Luminarte has been in business since 2004, and in short order, established itself amongst artists worldwide to be a superior innovative paint medium. Luminarte’s superior product will now be brought directly to you by Creative Imaginations, whose commitment to unparalleled independent retailer support continues.