It’s official. The gift show circuit is in full swing, the starting line firmly planted in Atlanta. So…now that the show’s wrapped up and the circus has moved to other marts, how did it go? What’s the buzz?
Well, buzz there was…and then some.
Retailers were sincerely (and happily) stunned at the fact fourth quarter played out better than expected, in most cases. Why? Because they ordered less inventory, then managed it well. Reorders were placed only if product flew out the door, and then only as cash flow permitted. If something bumped along a bit more slowly, well…no reorder. The goal was to carry over as little as possible, and the goal was met. A couple of store owners reported upset customers who felt it “unfair” that there would be no sweeping post-holiday sale to clear out excess merchandise.
News flash to consumers: The idea is to sell this stuff to pay the bills, not take a loss to fill your storage closets. Welcome to reality.
Most buyers were holding off on placing a lot of 2010 holiday orders, wisely waiting to see what consumer spending patterns look like later in the year. A serious determination to avoid lines that blindly insist on bloated opening minimums or deep reorders continued, those lines being replaced by more welcoming, more understanding companies who realize a small order means future business (as opposed to being passed over entirely). “Hold for Confirmation” orders were on a definitive upswing, again, reliant on future revenue.
Note to vendors: Better a HFC than nothing at all….. Besides, it’s so much nicer to get the order when you know the buyer has money to actually pay for it.
Lines that don’t sell direct to consumers were golden. Lines that do sell direct were avoided. Buyers have enough competition down the street without having to continue to fight for business against their own vendors-—that’s one curve I expect to get even steeper at the National Stationery Show in May.
Buyer attitudes were positive, hopeful, and deeply appreciative of the more-positive-than-usual mood of vendors. One of the glories to the Atlanta show is that it’s the first one on the docket; the “grumpies” don’t usually set in until later in the season (she says, cringing).
The vendors who came away most happy were those who lowered their minimums, provided new and interesting products, and made a serious, concerted effort to connect with customers before heading to Atlanta. The more effort they put into touching base in December, the better the turn out in their booths and showrooms was. Easy math, true, but I’m constantly amazed at how many exhibitors still think all they have to do is show up. Might have worked in Field of Dreams, but it doesn’t fly in real life. Just ask any retailer who tries the same approach (oh yeah…they’re out of business by now, aren’t they?).
And one last, big eye opener: The sheer number of “out of territory” buyers. Given the size of the Atlanta show, there’s always strong representation from states far and wide, but this time…? Holy cow, there were armies of buyers from the northeast and west coast. At first, I thought it was just me seeing things, but all reports from vendors and reps have echoed the same. That’s great for AmericasMart, but may pose a real challenge for vendors relying solely on single shows in those regions.
We’ll see, as the market march continues these next several weeks.
Click here to tell me what you think....
Cinda, I really appreciate you noting that retailers are avoiding vendors who sell direct to the public. It is so shortsighted of these artists to compete directly with their own customers. I interact with many artists who insist that they don’t have enough wholesale orders to survive and this “forces” them to retail, often at a much lower markup than a retailer can be expected to sell at. I maintain that if artists put all that time and energy into their wholesale business they would see their wholesale business grow, thereby building a foundation for their future as opposed to the odd sale from a single customer. So many of us retailers are exhausted from being forced to play detectives. This could even be the reason for the rise in Hold for Confirmations. Before investing in an artist these days the retailer has to go home and scour the web to make sure they’re not going to be undersold.
I miss the days when wholesalers wholesaled and retailers retailed. I hope that by the end of this show season the message has been clearly sent to those vendors who don’t get it or don’t care. Meanwhile I’ll just keep trying to support and spread the word about those who do.
Editor’s note: What makes the detective work even trickier are sites like Gilt Groupe, Ideeli, etc. where merchandise is sold direct at wholesale or near wholesale prices. These invitation-only sites allow vendors to fly under the radar, not accessible by mere Google searches. A good friend in the stationery industry just tipped me off to yet another one…that includes many of the upscale paper and gift lines I used to carry in my own store. Promise to keep you posted as soon as I learn more info.
My 2 largest lines had huge increases over last January’s show. Freight incentives also were a big plus. Many new customers were drawn in by that. Both companies opened many new accounts. Retailers were very receptive. Most had strong Christmases, and seemed very optimistic and eager for a strong first half of 2010.
Both companies also had a large % increase in new products for 2010. They are not running scared.
Not only did the northeast have a strong presence, Cinda, but there were oodles of buyers from Ohio, Michigan, and Wisconsin. It truly was a strong national gift show.
Dan Marx
After spending January 2009 at the Chicago Market, we returned to Atlanta in 2010 – count that as buyers from Wisconsin! We actually squeezed our normal 6 day buying stint into 3.5 days – A bit stressful! We’ll allow more time in 2011.
Good to see you Cinda while dining out one evening (Legal Seafood is actually one of the better downtown places to dine.) The show traffic was heavy but all our key reps were very accessible. You are correct in that we were hit by more pre-show email blasts than in any previous year. Suppliers have definitely been reaching out with promos and specials.
Note to vendors: Nothing beats an actual scheduled appointment visit to our shop during the first 3 months of the year!
All looks good for a strong 2010 as we conclude our January sales!
John