Volume 7, Issue 48
December 2, 2009

In This Issue:

Quick Links:

1. Editor's Welcome

2. In The News
3. The Industry Pressure Cooker

4. Press Release

 5. Article Archives
 6. Book Club

 7. Retail Store Directory
 8. Premier Store Coupons
 9. Online Shopping Links

"Find something you're passionate about and keep tremendously interested in it."

-- Julia Child, chef

 
Welcome from the Editor

Jami picture

 

Do you ever find yourself in the hot seat? We all have at some point. Being in the scrapbooking industry right now means everyone is in the hot seat or as Dennis discusses, we are in an industry pressure cooker but there is a way to release the heat. Learn how to cool things off in Dennis’ article.

Keep on top of the industry’s hottest news and trends with us this week and always. Remember we’re in this together no matter how hot it gets!


Jami Petersen
newsletters@a-z.com

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In The News

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.
 

Michaels Stores, Inc. Reports $35 million Improvement in Net Income. Michaels Stores, Inc. reported net income for the quarter ended October 31, 2009, of $15 million compared to a $20 million loss for the quarter ended November 1, 2008. For the first nine months of fiscal 2009, the Company reported net income of $21 million compared to a $70 million net loss for the same period of fiscal 2008.

 

CRAFT Magazine Calls It Quits. According to the website, "Our craftzine.com community is thriving. At the same time, print magazines are facing rising production costs and shrinking ad markets. Therefore, it makes less sense for us to publish two separate print magazines in the DIY space. Craft: Volume 10, our Celebration issue, will be the final issue of CRAFT magazine." The publishers will continue to print MAKE Magazine.

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The Industry Pressure Cooker

dennisIf you're old enough, your memory of pressure cookers is probably of a steaming, spitting monster of a pot, noisily rattling on the kitchen stove. This is my memory of pressure cookers and it has made me afraid to even be around them. As I kid I thought it was like looking at a cooking bomb ready to explode on top of my grandmother’s stove.

Pressure cookers look like other kitchen pots, except their lids are more elaborate with gages and snap-down locks, and they weigh more than a regular kitchen pot. They work by completely sealing what you want to cook inside the cooker. When the liquid inside boils, it is trapped inside the pot. Having nowhere else to go, steam builds up pressure.

Today the scrapbooking industry is in a pressure cooker of its own creation. While it’s been hard on many retail and manufacturing businesses, the pressure cooker can be a good thing for those who have their eyes wide open and are willing to change.

Long before the economy began slowing down we as an industry were already decreasing business because we placed more focus on new product introductions rather than introducing new customers to scrapbooking. In the National Scrapbooker’s Trend report, over a four year period of time we reported major shifts not only in shopping patterns but in spending patterns of scrapbookers. The pressure continued to build as retailers started to see fewer consumers coming into retail stores, and the customers who bought the most in the past were buying less. With less customers coming in there was less cash to promote the category. And the pressure started to build!

At the retail level, retailers for the most part relied on word of mouth rather than spending at least 5% of revenues on advertising. When the industry had the chance to spend $125 million in advertising to increase awareness for the category we spent collectively $25 million. That $100 million shortfall year after year took its toll on the industry. And the pressure was on.

The scrapbookers started to change as well. The industry as a major product category grew older by another decade as did the scrapbookers within that community. Most after hitting what is known as the seven year walk didn’t give up scrapbooking rather they slowed down their activity as well as their purchasing. The trend reports began to show a shift in lower income consumers being limited in what they could purchase. As younger scrapbookers came into the market place they began to search for other options that would help them fully express their creativity. Thus this new scrapbooker brought in the introduction of technology through personal computers, software and the internet. And the pressure continued.

Something new now adds pressure to the cooker we were all in - competition from the digital world. The funny thing is they know so little about our industry that they don’t see the scrapbooking industry as competition at all. However, within the trend report again we see this major shift of our primary market getting involved more and more in the world of digital photo books.

The pressure cooker we have created has contributed to the failure of thousands within the industry. However, this is not the end of the story but perhaps the beginning of a new story. I have great confidence that at the end of the day as an industry we will start to focus more on new consumers and less on new product introductions. I believe that we will see the strength of synergy with the digital world. I believe that good business people will see the wisdom in moving inventories faster and create and implement industry-wide policies. I believe that manufacturers will truly understand that keeping independent retailers alive and healthy is in their best interest in terms of keeping the retail sector balanced.

Now the question is when will this take place and when as a group will we finally walk out of the pressure cooker? The answer is when the gain of change out weighs the pain of remaining the same. I believe the darkest days will soon be behind us and a brighter day will arrive. And looking for the bright light in the middle of a dark time is what being business SMART is all about.

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Press Release: The Creativity Collection now available across Canada

The Creativity Collection by Paris Hilton was created and designed for teens and young adults. The line consists of scrapbooking accessories, albums and embellishments for the consumer to personalize their memories, objects and fashion accessories.


“Paris Hilton Entertainment is pleased to be partnering with Wooky Entertainment to launch Paris Hilton, the Creative Collection in Canada” explained Paris Hilton (President) of Paris Hilton Entertainment. “These fashion kits reinforce creativity and individual style - my personal hallmarks. Sharing these ideals with young women through these crafting will can instill a greater sense of accomplishment, achievement, and personal worth.”


Paris Hilton is doing a monthly blog on scrapboking.com. In December, Paris will write about a gift box she made for her sister Nicky for Christmas with the scrapbooking layout concept. "The gift box is a big part of a gift creativity and is accessible to everyone. Anyone can add a personal touch to a gift presentation. This is something easy for everyone and so appreciated.


Paris Hilton invites people to join her new Creativity Collection fan club at www.pariscreativity.com and exchange different ideas and concepts with her products of the Creativity Collection are also available for purchase online at www.pariscreativity.com.

Wooky Entertainment is based in Montreal, Quebec, Canada and is a leading producer of arts & crafts for the tween and teen market. Their product lines include the fashion craft lines of Style Me Up! ™ www.stylemeup.com and Paris Hilton the Creativity Collection™ www.pariscreativity.com . Wooky products validate the teen drive for independence by providing kids with a creative outlet and the tools needed to create stylish, individualized fashions on clothing, scrapbooks, jewelry and more. www.wookyentertainment.com