Cutting edge? innovation, diversification drive knife market

Shooting Industry, Sept, 2008 by Pat, Covert

The annual Blade Show in Atlanta, held this year in May, is a prime barometer of how the cutlery industry is doing financially and where it's going trend-wise. The two key words heard frequently at the show were "innovation" and "diversification."

Innovation comes in many forms, from hot new steels and machining tricks to envelope-pushing design and locking mechanisms. Many consumers see their knife as more than a utility or self-defense tool--they see it as a conversation piece.

Joyce Laituri, marketing director for Spyderco, says new and exotic materials are hot right now.

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"Spyderco has been working with some new blade and handle materials. For instance, we're using what we call 'peel-ply' carbon fiber for handles, where we use the textured backside of the material as the handle surface, which offers a better grip. We're also using new steel called H-1 that displaces carbon with nitrogen--this way it never rusts," Laituri said.

Jeff Goddard, director of sales and marketing for Kershaw Knives, says innovative opening mechanisms and locking designs have boosted sales.

"Our most innovative models aren't for everyone, but they help keep our name in lights. Our Ferraris, or limited-production knives, do that, but often the technology filters down to our lower-priced knives," Goddard said.

At Benchmade, the company is meeting the needs of the consumer, according to marketing director Rob Morrison.

"We're offering some new tricks on our handles like 3-D machining, like in our new Rift model, which not only looks awesome, but really improves the grip on the knife. That's the kind of thing knife buyers like to see," Morrison said.

SOG President and Founder Spencer Frazer sees innovation as key to his company's growth.

"We've introduced more and more high-tech knives by looking at things from a different angle," Frazer said. "We're unconventional, we try to always push the envelope in terms of materials and mechanisms, and that has allowed us to expand our company."

At Columbia River Knife & Tool (CRKT), "Innovation is what is driving knife sales," said Doug Flagg, vice president of sales and marketing at CRKT. "We've introduced new opening mechanisms on several of our knives and they're selling like crazy. Customers walk into stores and they want to know what's new and different."

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Companies are using innovative designs to create interest and, in turn, sell other models in the line. Retailers can duplicate this successful marketing approach by offering some exotic knife designs to elicit customer's interest.

Variety Creates Spark

Diversification is a great way to broaden your customer base in a competitive market and tight economic times.

Tim Wegner, founder of Blade-Tech Industries, has diversified the company's lineup with new variations on older, timeproven models and by introducing a lower-end line.

"We just came out with a new line of Magnum Pro-Hunters and they are selling extremely well. They have a thicker blade steel than our standard line and only add a weight gain of a half an ounce," Wegner said. "We have also introduced a new lower-price line of our Ganyana and Mouse models in AUS-8 steel, and the retail is in the $25 range. We are trying to diversify everything we're doing so we can cover all the bases."

Lansky Sharpeners has increased sales by introducing more portable sharpeners to their lineup.

"We're selling a lot of our carry-around sharpening tools, our little quick fixes--ceramic and folding sharpeners--for maintaining an edge on the go. These are great field maintenance tools," said Bob Kufahl, marketing director.

Lansky has also launched a new line of affordable multi-tools, pocketknives and the like. The company originally aimed these products at the hardware market, but it's seen a lot of crossover interest in the cutlery market.

The tool segment of the cutlery market continues to be a hot ticket. Multi-tools and purpose-based knives appear to be an ever-expanding category that brings in new customers and sales.

"Right now we're selling a ton of our multi-tools," said Doug Flagg of CRKT. "The Guppie model has been a huge winner. It appeals not only to men, but women like it, too. It's a lot broader of a market than your basic knife, and it's done so well that we've come out with a scaled-down version, the Li'I Guppie."

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Ryan Wilson, founder of Wilson Tactical, offers similar comments.

"Right now we're selling a lot of our tools--the Cop Tool, Fireman Tool and SRT Special Response Tool. This end of the market has really taken off," Wilson said.

Benchmade Knives has formed a new company named Houdini that has released the first two of what could be many rescue tools. This is a segment of the market retailers really need to watch.

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Traditional Stays Solid

Although tactical knives have garnered much of the headlines in recent years, there is still a huge and viable market in sporting knives and traditional pocketknives. One good snapshot of knife sales at the annual Blade Show is watching the traffic at custom knife-maker Bob Dozier's booth. Dozier sells a broad range of sporting and tactical knives, but some of his most ardent fans are hunters.