2 scrapbooking industry smart overview
DESCRIPTION
Overview of the Scrapbooking IndustryTRANSCRIPT
SMART Industry Overview
“The goal of business is producing a profit”
Meeting Agenda
Overview of the Industry
Case Study of a Mass Merchandiser
Overview of the Industry
“Seeing the world as it really is”
Scrapbooking is Not a Fad
It’s not a single product
It’s a subset of a major product category – Photography
It has independent stores nationwide
It’s tied to the family history community
Scrapbooking Market Share
Women Ages 15-644.5%
40.5%
55.0%
Scrapbookers Prospective Growth Free Market
Age Breakdown
Under 181%
40-4929%
30-3934%
26-299%
18-257%
60+4%
50-5916%
Annual Income
$26K-$45K33%
$46K-$65K24%
$66K-$85K19%
$86K+24%
Yearly Revenues of Scrapbookers
Consumer Type
Beginners
Intermediates
Experts
Collectors
Totals
Annual Revenues
$375,000,000
$937,500,000
$1,120,000,000
$15,000,000
$2.447 Billion
Purchases
$150
$750
$1,600
$300
Number
2.5 M
1.25 M
700 K
50 K
4.5 M
Number of Scrapbookers
1.25 Million
2.5 Million
700 K
50 K
7 Years
Beginners
Intermediates
Experts
Collectors
Trial: Hands-on trial
of scrapbooking.
Information: Customer identifies problem
then finds the solution
Decision:
The customer
decides they like scrapbooking &
invest.
Scrapbook Addict: The customer has made scrapbooking their hobby of choice.
Pictures in shoebox or on computer
.
.
Knowledge
Synthesis
Application
Comprehension
Analysis
Evaluation
Instant Scrapbooker
• Digital
• Ready Kits
• Themes
• Solutions
• 10 minute shopping
• 1 to 2 hours complete
• Now! Event or party tonight
• No social
• No learning
• Pure results & quick
“Solutions from manufacturers that meet the
Instant Scrapbookers
needs.”
Instant Scrapbooker vs. The NewbieCrafter
40 Million Instant Scrapbookers40 Million Instant Scrapbookers
Number of Scrapbookers
1.25 Million
2.5 Million
700 K
50 K
Scrapbooking Publication Share
Industry Publications
85%
7%4%
4%
No Scrapbooking Publication Scrapbooking.com MagazineCreating Keepsake Magazine Memory Maker Magazine
Retailers in Traditional Magazines
Paper Magazines
Creating Keepsakes
Memory Makers
Simple Scrapbooks
PaperKutz
Readers
56
56
19
0
Store Lists
$135
$135
$135
$0
Subscribers
160k
140k
70k
Bankrupt
Case Study of a Mass Merchandiser
“Every industry has a GIANT”
Case Study of a Category Killer
“In search of the perfect store” Aggressive, focused merchandising Exciting and fun in-store experience A leading source of information More classes and demos Informative signage Strengthen the brand with more awareness More circulars New forms of marketing Consumer surveys
The CEO’s Vision
Case Study of a Category Killer
Sales in 2004 $ 3,000,000,000100%
Pre-tax profit $ 300,000,00010%
After tax profit $ 177,000,0006%
Cash on hand $ 400,000,00013%
Inventory $ 892,000,000
Market cap $ 3,300,000,000
Full-time employees 12,700
Part-time employees 25,000
Operating Performance
Case Study of a Category Killer
ReCollections 6 new stores per year 400 total
Aaron Brothers 10 new stores per year 600 total
Village Craft 10 new stores per year Unknown
Michaels 45 new stores per year 1,100 total
Total Stores 71 new stores per year
Average yearly sales per store is $3.9 million
New store growth is $276.9 million per year
New Store Openings Total Goal
Sales per store $3.9 million Goal: $5.0 million
Sales per sq ft $184 Goal: $310
Per employee $120,000 Goal: $200,000
Inventory turn 2.12 Goal: 5.16
GMROI $1.41 Goal: $2.81
Productivity
Case Study of a Category Killer
Average store size 2,500 sq. ft. Vs. 5,000 sq. ft.
Sales per sq. ft. $300 Vs. $184
Sales per store $750,000 Vs. $920,000
Per employee $150,000 Vs. $120,000
Inventory turn 6.00 Vs. 2.12
GMROI $5.00 Vs. $1.41
Gross Margin 48% Vs. 36.7%
Average sale $50.00 Vs. Unknown
Mailing list 7,500 Vs. Unknown
SMART Stores Michaels
The SMART Profit Model
Get SMART, Be SMART, Stay SMART!
Believe that your industry can do much more annual volume
Believe that the industry is here to stay – and so are you
Know that an independent retailer can run circles around national chains
Push for better operational performance from your retail business
Be a retailer first and a crafter second
Recommendations
SMART Industry Overview
“The goal of business is producing a profit”
Lunch Time
“There is a free lunch, really there is!”