Merchandising Trends for

Holiday 2016Catalog University Pub Talk

Larry Shaw, Dean of MerchandisingMarch 24, 2016

Who Am IDean of Merchandising at Catalog UniversityFounder and CEO of Merch Success, a full-service merchandise

solutions company for retail, catalog, and e-commerce companies

Merchandise strategic planning and analysis, and finding, developing, and curating new unique and interesting products for catalog, retail, e-commerce companies

25 years executive merchandising and marketing positions at leading companies, including Southern Season, The Vermont Country Store, and Nordstrom

What Will Be CoveredEight key trends that will impact Holiday 2016

MerchandisingWhat each trend means for you and how to

leverageQuestions and Answers

Key Trends

Trend: (Continued) Aging of Audience• Catalog customer files and

prospect lists aging by 1-2 years each year• Items that skew older will

increasingly drive more sales• drive new items selection, pickups,

inventory buys, sizes purchased• Baby Boomer tastes and wants

driving Senior Market products• adult coloring kits, DIY, experiences

• Profile item sales by customer age

Trend: Decline in Traditional Gifting• Under 65 audience is lot less formal

• rapid decline in Christmas cards purchased and sent

• People want to create their own new traditions• Elf on a Shelf

• Products that once were big sellers are now trending downward• except for oldest segment of audience

• Over 50% of customers likely to buy 1+ gift cards for Christmas• Business gift giving continues to be down

• more companies donating to charities instead

Trend: Amazon and Marketplaces• Increasing sales volume happening

across Amazon and other Marketplaces• Younger and more mainstream audience

than catalog• Each has different model, algorithm,

way to merchandise• Common elements of success across

marketplaces• Your customer service and operations ratings• Customer feedback• Ability to get the “Buy Box”• Product Sales Rank

• Merchandise for each marketplace including Marketplace specific items

Trend: Increased Shift to Mobile• Fastest growing digital channel for all age groups

• approximately 30% of e-commerce sales in 2015• Convey what item is in just small image and

headline• Merchandise for youngest, most forward thinking

part of audience• Key 3-6 items per category with less info, not depth

of category• “TenBestification”

• “Immediate Reaction Items” that drive action• Real-time situational merchandising

Trend: Emotional Personalization• Not your grandma’s personalization

• can’t just slap person’s name or initials on product or ribbon or card

• “Emotionally Resonating” between gift giver and recipient a big plus• Customers want to have control and

create a version that works for them• Spreading across all categories

• Art, Home Décor, Food, Wallpaper, T-Shirts, Socks

Trend: Products with Function• Customers spending more

disposable income on entertainment, so other products need to have more purpose• “Dust Collector” items shrinking in

popularity, as low perceived value• “Demonstrable” items drive higher

growth with digital channels

Trend: “Better For You” Products• Trend towards less purchases, more

scrutiny and higher threshold for purchase• People want to feel good about what

they are buying• Artisan/not massed produced• All natural/vegan/better ingredients• Social cause• Local• Handcrafted

• Customers also want to feel good about companies they support

Trend: Make It Myself/DIY• Personal fulfillment of making something by

hand• Social activity• Having control of ingredients, packaging,

taste profiles• DIY cocktail mixes, cheeses, hot sauces,

chocolate, candy• Ties in with Makers Movement and Artisan

Handcrafted trends• Customers willing to pay same price or

higher for DIY kits than completed item

Questions and Answers

Key InfoContact me with feedback or questions

larry@merchsuccess.com802.379.5802

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