A view of the industry through the
eyes of a chain buyer.
A Brief History of Industry
Retailers benefit if they
by Mike Hartnett (October 6, 2008)
CHA announced that manufacturers will not be allowed to sell
products at next summer's consumer show in Orlando; only retailers
can sell. Should area retailers exhibit and sell at the Orlando
show? History says yes.
There have been countless consumer shows in virtually every
industry category. Here's a summary of their effect on retailers and
how some have become involved.
Crafts. Years ago HIIA, the predecessor of CHA, sponsored a
consumer show on the Saturday before the trade show opened on Sunday
in Dallas. The leading chain at the time in the Dallas area was MJ
Designs, led by Mike Dupey. His Vice President at the time, Howard
Hoffman, remembers how MJ Designs took advantage of the show:
"Mike took out full page ads in the Dallas Morning News and
the Fort Worth Star Telegram. Each ad also had a coupon to
save $5 on admission. (I think the regular cost was $10, but I'm not
"We also gave out discount coupons to all of our customers
at the store cash registers starting, I think, three weeks before
the show. The consumer show was set up the day before the trade show
and vendor participation was great (that could be because we asked
vendors to participate). There was no selling, but every attendee
got a 20% discount coupon good for one store visit, and it expired
30 days after the event. This was done to drive consumers into the
store and make sure they could recoup their admission fee.
"It definitely helped sales and we got back a good number of
coupons. Everyone loved the show and the make-it/take-its."
Scrapbooking. Industry veterans Mel and Margo Fraisl owned
two scrapbook stores in suburban Chicago and would take a large
booth at the local Memories Expo shows. I attend one of the
shows and saw firsthand – they sold a LOT of merchandise.
Beads. Kalmbach Publishing sponsors the annual Bead&Button
show in Milwaukee. The week-long event includes hundreds of classes
and culminates with a weekend consumer show that has drawn as many
as 16,000 consumers.
Marlene Vail, Events Marketing Manager for Kalmbach Publishing,
told CLN, "I truly believe that shows, like
Bead&Button, get everyone excited about the hobby." A
person's buying habits usually doesn't change; if they were shopping
at a local bead store before our event, they go back to the store
during the year for extra supplies. If they are solely online
buyers, they usually continue in that pattern.
"Most of our local bead shops exhibit with us, with the
exception of one smaller store whose owner is closer to retirement.
But the remainder of the shops do exhibit, do well, and are very
pleased to be there."
Miniatures. Jerry Hacker, former owner of Dee's Delights
said, "Even in the miniatures industry, the dealers complained
about shows put on by independent promoters, but they discovered
that it actually brought new business to their local shops when they
participated in the shows and generated interest in the hobby."
Knitting/Crochet. No one can sell at the various Knit-Outs
sponsored by the Craft Yarn Council of America, but Exec Director
Mary Colucci told CLN that the events boosted sales in area
yarn shops and membership in local knitting and crochet guilds.
Stamping. Warren Gruening of Posh Impressions said consumer
stamp shows helped area retailers if they participated.
Hobbies. Pat Koziol, Exec Director of the Hobby Manufacturers
Association says, "The model hobby industry more or less
survived because of consumer events, particularly in the model train
category. At most of these shows, the retailers sell to hard-core
hobbyists and the manufacturers do workshops and seminars to show
new consumers how to work the products.
"At the iHobby Expo, manufacturers are there Thursday
and Friday for the retailers. Then the exhibitors can change their
booths on Friday night to sell to consumers on Saturday and Sunday,
along with some retailers who set up on Friday night.
"We want the retailers because consumers want to buy; they
see something at an exhibitors' booth, and if he is not selling
direct, he points them to a retailer who is carrying his product. In
many instances, the dealers communicate with exhibitors to make sure
they have their hot products on hand for the consumer days.
"This year, we have a big booth manned by Hobbytown USA, a
franchise operation (much like the old Ben Franklin) of over 300
stores. They will have personnel from several of their Chicago area
stores to sell in the booth on Saturday and Sunday. Then they will
split the profits from the sales to all the participating stores.
"Also, we (HMA) buy $3,000 worth of Chicago-area hobby
stores' gift cards and consumers receive a raffle ticket as they
enter the show. We call out numbers during the two days for the
winners to "come on down" to the prize area and get their
gift card. (They can chose a store card that is near them).
"This way we don't offend dealers and manufacturers get the
benefit of showing consumers about their products. We also have live
events (Radio Control heli and airplane competitions that consumers
can enter, pinewood derby races for Scouts sponsored by an exhibitor
who makes the cars, model train rides and layouts, robot battles,
traditional make-and-take hobby kits, and this year a "Lego
Land" interactive kids area.
"We will also have Michael Gross (the father in the Family
Ties tv series show who will appear. (He is an avid model
railroad enthusiast.) Last year we had an Indy race car driver with
his race car."
(Note: To read previous "Benny" columns, click
on the titles in the right-hand column.)