Scrapbook Industry 2010

I'll admit that I have pretty much ceased my scrapbooking.  I cleaned out my studio and have a huge pile of scrapbook paper waiting for me to drive it to the local children's hospital.  My paper crafting is relegated to the occasional card or tag.  I don't see myself doing traditional paper scrapping ever again.  I do most of my memory preservation with digital scrapping and print it out in photobooks.  In fact, I have my own photobook company now.  

I rarely purchase scrapbook supplies anymore.  The largest local scrapbook store in my area went out of business this year after more than a decade.  I stopped by Michaels today because I needed some paper for a project for the teenage girls at my church.  We are making these cute gum advent calendars.  I was saddened by the lack of selection of Christmas papers.  There was about 10 different ones and none of them very interesting.  It was sad that there really wasn't any place else to go for a better selection.  

Is the scrapbook industry dead?  No, it's not.  Has it contracted significantly?  Yes, it has.  The result is being left with whatever you can find in your area rather than the freshest fun stuff hand-picked by an independent scrapbook store owner based on what her customers are telling her they want.  

Does that mean there is room for new scrapbook stores because so many places are left without one?  No, I don't believe that's what it means.  Although I'm sure there are some who are sort of new to the industry who believe that.  It's not that many areas don't have stores because no one has thought to open one.  Many areas don't have stores because there just isn't enough business anymore to support one.  

I have had the occasion in the last month to correspond with two people who were looking into opening or buying a scrapbook business.  Both asked my opinion based on how involved I have been in the industry.  While I don't necessarily participate in a business way in it anymore, I have paid attention to what has been happening to scrapbooking.

I get the feeling that the closing of so many retail stores has helped the ones that survived.  Although their customers are having to come from farther away.  But, as one store closes, another picks up some of those poor scrapbook retail orphans.  But I also get the feeling that the new influx of customers just helps them hold steady.  They don't really grow as a result of someone else closing.  They just replace customers they themselves may have lost.     

I am also convinced that digital scrapbooking and photobooks continue to take a tremendous bite out of the traditional industry.  I was walking through Michaels today and heard two women discussing how no one makes scrapbooks anymore because they don't have to print their photos.  They were just a couple of shoppers - no one special.  I was sort of amazed at their insight.  They are on the right track.  There's no compulsion to take care of that roll of film sitting on your kitchen counter.  And, for me, printing THEN scrapping was more time consuming than scrapping THEN printing as I do in digital scrapbooking.  

So, as I corresponded with these women who came to me, some thoughts emerged regarding the industry and how you can tell that it's probably not a good idea in most cases to dump a lot of money into starting a business.  Does that mean you shouldn't start a business?  No.  But, you should proceed with caution and with money you can afford to lose.  It's advice I've actually been handing out since 2002.  

Martha Steward said that if you only seek the advice of friends when you're about to launch an expensive business, you're on the wrong track.  Of course your friends will agree that it's a great idea.  What else are they going to say?  They have no skin in the game so they are totally supportive of whatever you want to do with YOUR time and YOUR money.  I daresay, though, that most wouldn't give you a minute of their own time or money to help you.  Suddenly, it may not seem like that good of an idea if they have to put something up.  And, despite what they say, your own friends will often never spend much in your place of business.  I've seen that time and time again.  They sort of expect the big discount more than they want to help you pay the bills.  You simply can't build a business on the promises of friends.  

Seeking the advice of someone who will challenge your idea is the best thing you can do.  I will challenge your idea to enter the scrapbook industry.  I figure one of two things will happen.  I'll either make you SO ANGRY that you set out to prove me wrong and you'll work your rear off to make sure I see that YOU can be successful (which may actually result in your success), OR, you'll get scared and walk away.  Either way, you'll probably win.   Retailing of any sort isn't for wimps and the scrapbook industry is an especially challenging place.

Consider the following:  

• There was once probably a dozen consumer magazines in the scrapbook industry.  There are now only a few left and they are very thin due to a lack of ads
• At one point, there was a dedicated tradeshow for the industry.  Now, there is only CHA and the scrapbook portion of it seems to be shrinking in size of booths, number of exhibitors and attendees.
• There have been instances of companies debuting products at CHA and then cancelling all orders immediately after the show and closing their business.  That's not good when you can get enough orders at the biggest show there is to move forward.  
• There were 4-5 trade magazines at the highpoint.  There is now one and it's not that good.
• When I started ScrapBiz in 2002, I worked with probably half a dozen distributors.  About half of them have now closed.  
• Support organizations like ScrapBiz have all but disappeared with just a few left
• Once popular Creating Keepsakes University is non-existent as are many of the expos in many markets
• The big box retailers, who carry what's selling, have down-sized their scrapbook sections or now offer very generic, cheap products in their aisles.
• Most of the direct sales companies dedicated to scrapbooking have disappeared.  I get the feeling the ones left are limping along.  
• Lots of very popular names in the industry have added digital scrapping to their offerings.  Most retailers "pooh-poohed" the idea of digital scrapbooking and paid a price as lots of their customers left to pursue it and never darkened their door again.  

You can't blame the economy.  The scrapbook industry started to decline in about 2006 - well before the economy started to tank.  Do I see it roaring back?  Not really.  Do I see it continuing to exist?  Yes.  It's just peaked.  

Therefore, I caution anyone looking to start a business in it to do their homework (as I always have).  Don't ask your scrapbooking friends if they think opening a business is a good idea.  Instead, hunt down former store owners in your area and have an honest chat with them about why they closed their doors.   Run the numbers with a realistic look at how much patterned paper you'd have to sell to break even.  Look at your finances and decide of you can afford to lose the money you put into your business.  

Then, either proceed with your plans to prove me wrong or walk away and save yourself the headache.  

Why Martha going to Walmart is a "Good Thing" for the LSS...

I have seen some shock or surprise about the Martha Stewart scrapbook line going into Walmart. My gut tells me that EK Success did that because it wasn't snatched up by the independent scrapbook stores when it was released to them 6 months or so after going into Michaels. History has shown that outside celebrities never do that well in our industry. We'd just as soon have our home-grown celebrities endorse a product. I think that most LSS's saw the products moving slowly at Michaels and decided it wasn't worth devoting the space to re-worked and re-colored EK Punches in pretty "robin's egg blue" boxes. I've seen very little of the Martha Stewart stuff in LSS's I've been to.

So, now it's going in to Walmart. That's probably a HUGE benefit for EK Success. They, of course, want to move as much of it as humanly possible. And, it's a GREAT thing for local scrapbook stores. Many practicing scrapbookers aren't excited by the line in the first place so they aren't likely to run over and buy it even at the "Walmart Price." And, new scrappers will recognize the Martha name and buy it thinking it's going to teach them how to scrap. Her name may bring new scrappers into the hobby.

But, the really bright spot is that while Walmart lines it's scrapbook aisles with Martha's stuff, it will have LESS space for the product lines that have traditionally sold well in independent scrapbook stores. That means that as long as there is a contract in place to carry the MS stuff (and there probably IS a contract), not much else will fit.

So, I applaud Martha for finding a home at another "Mart". It will actually be a "good thing" for the industry. They get a line non-scrappers will recognize and we don't have to worry about the stuff we just bought at CHA showing up there before we get home from the show.

I found someone who uses Martha Stewart's GIANT Albums...

I think the same 4 18x18 albums are in the Martha Stewart section of my local Michael's that were there when they put them out last Summer. But look, evil dude Soviet Union Communists like(d) them. They are just 20 years too late. "Mr. Gorbachev, TEAR DOWN THIS WALL... and we'll send you all the 18x18 albums you want!"

I'm Not Going To "Tickle Your Ears"...

I have been getting a surge of questions about opening a scrapbook store recently. Honestly, I don't help people open stores, but I have been quite vocal about cautioning people to look before they leap if they want to open a store. I refuse to "tickle" someone's ears with what they want to hear.

When someone contacts me, I don't mince words. I don't think I am doing them any favors to paint a rosy picture that it will be all lazy days full of opening boxes of new products and scrapping personal pages at the table while chatting with friends who are emptying their wallets into the cash register. It's HARD WORK that demands specific skills - scrapping isn't one of them. I don't want someone to make a mistake that costs them their home or family. I always tell them that it's totally possible to open a store and make money and be successful. However, it takes the right skills to do so. If you don't have them, you won't make it - no matter how hard you try.

I usually get three reactions to my "tell-it-like-it-is" attitude.

• First: "Oh, you are so DOOM AND GLOOM about this!!!" They get huffy that I don't validate their idea and agree with them about how fun it would be to own a scrapbook store. Most of them probably go off thinking, "She doesn't know ANYTHING!!!" Fine, if you lose your shirt, don't come crying back to me. OR, if you are STILL determined, then use the fact that you are ticked-off at me to become successful. Proving someone wrong can be a powerful motivator! But, at some point, they'll remember what I said and think to themselves, "She was right!"

• Second: "You don't know me - I have an MBA (or whatever)!" Okay, fine, then take my advice "as-is" and use it in your research. Oh, and I always want to add an "FYI" to that one. This industry doesn't follow "Business School Rules". It's a cottage industry that out-grew the cottage. It's run by people who have no clue about business school rules. My husband has a BS in Marketing and an MBA and this industry makes him laugh almost daily. We do things "our way" and that doesn't always make sense to someone who learned the rules of business at school. You have to figure out and embrace the industry as it is, not as you were taught it should be. Yes, we need to clean up our acts at times and play by the "rules" (which would help us most of the time), but you have to understand that it's not an industry run by women with MBA's!

• Third: "Wow, I had no idea!" I like the people who cash their "reality check". It makes them stop and think. They are the ones who usually hadn't considered that although there is no actual LSS in their area, that the online stores are there and that scrappers are getting their products from SOMEWHERE. They are also often the ones who didn't realize how much money it would take to open a store, or how much time it would take away from their families. These are the people who I would give the most chance of making the correct decision. That decision can either be to NOT open a store or to do further research before they open a store. Thoughtful research and a cool head can help someone make the best decision. It might be that your area could support a store, but can you family survive a store? Jumping into something without considering ALL angles is never a wise move.

The problem with most people is that they run their idea past their scrapping friends who almost all say, "That's a GREAT IDEA!!! Go for it!!!" They swear they'll support you 100% and shop at your store and even work for free. But, rare is the friend who actually steps up to the plate and does that... Usually, my response is, "go ask those people to INVEST in your store and see how 'supportive' they are of the idea." When they are asked to put their money where their mouth is, they may not QUITE see it the same way. Not that everyone has cash laying around they can invest, but my bigger point is that talk is cheap.

Martha Stewart says it all in her book "Martha's Rules". In her own words: "I am troubled when I hear about otherwise intelligent people who have made the mistake of risking their hard-earned savings or leaving a good job to pursue a brand-new venture about which they know almost nothing. They become enamored with an idea and talk only to people who will encourage them uncritically, instead of seeking out mentors or advisors who will objectively analyze their idea. This is natural, but it is actually heartbreaking to see smart people rush into a situation without the proper preparation or research. At the earliest stages of a venture, sometimes entrepreneurs get their priorities mixed up. They mistake enthusiasm and impatience for the more basic passion that inspires people to want to learn and become expert and make good decisions.”

In Honor of Martha Stewart's Scrapbooking Debut...

This was just too funny - especially given the Martha connection. So, in honor of the new Martha Stewart Scrapbooking stuff at Michaels - enjoy!

Dowdy Newspaper Gets Scrapbook Makeover....

Apparently, the Wall Street Journal can't find any news that Wall Street would be interested in. The Dow at 13,000 apparently isn't as "sexy" as the "unsexy" world of scrapbooking. In the last 6 weeks, we (the industry) have been called "stupid" twice by the WSJ. Once for not realizing sooner that we should be courting men as our salvation (really?!) and now for not calling in the big gun aka Martha Stewart before 2007. LINK to the article.

The title of my post is a twist on the headline of the article - "Dowdy Craft Business Gets Martha Stewart Makeover". DOWDY?! DOWDY?! With the launch of the new MS products into Michael's this week, I can only imagine who they mean when they say "Craft Business". Ummm, that would be us? According to the senior VP of Marketing for Michaels, Martha's bringing "Sexy" Back...to the industry. (caution, SARCASAM AHEAD) Wow, good, because we can hardly string a complete sentence together and are having a REALLY hard time differentiating between "summer sky" and "robins egg" on the color wheel. And, we've all been waiting around to make a scrapbook the size of a newspaper. I can't imagine anything bigger than 12x12, but apparently, Martha can. Her albums are reported to be HUGE - which when full of pages means you'll need a special viewing platform for it. But then, as she said to a stunned audience at CHA Winter in Anaheim after being asked how she spotted trends, "I don't SPOT trends, I MAKE them." Really?! We'll see...

So, this week or next, I'm sure I'll don my dowdy crocheted shawl, BeDazzled sweat pants and hand-painted t-shirt and wander over to my local Michael's to take a look for myself. I don't anticipate hating the MS line. However, I'm just not sure we have been sitting around wishing for it. We have done quite okay for ourselves and history has shown that we don't really take kindly to outsiders trying to snow us by pitching wares with their names emblazoned all over their products. Note to the suits at the WSJ, we aren't as dumb as we look...