Scrapbooking, arts and crafts dominate light SHOPA show

Drug Store News, Oct 11, 2004 by Mike Troy

Although the 2004 School, Home and Office Products Association Show was dramatically smaller than it's been in prior years, and many of the industry's major suppliers were absent from the show floor, it still was possible to come away from the event with some clear insight into hot product categories and consumer trends.

To do so, however, required attendees to adjust their expectations and focus on specific categories in which enough companies were present to reach a broad perspective on the business. That was the case in the arts, crafts and schools supplies segment, where Binney & Smith and RoseArt Industries were the two most dominant exhibitors at the show.

According to Dean Erlandson, vice president of U.S. sales for Binney & Smith, washability, ease of use and technological innovation continue to be key drivers of consumer demand.

"We are trying to drive consumers to a better outcome for their kids, and for moms with children, washability is a key driver of their purchase decision," Erlandson said. Binney & Smith now offers Crayola brand markers that are erasable and washable. And erasability, washability and no mess are attributes of virtually all Crayola brand products. However, all washable technologies are not the same, and Binney & Smith plans to let consumers know that by promoting Crayola as a trusted brand. "We know we have a superior product, and we are going to call that out in educating moms next year," Erlandson said.

The company also wants retailers to know that the categories in which the Crayola brand is present can benefit from being set earlier in the year.

"We are trying to drive product leadership, but also, though, leadership about how to drive category productivity," Erlandson said.

That means setting the arts and crafts department before Easter to capitalize on the demand spike that occurs around the holiday, rather than waiting until mid-summer for back-to-school season.

Offering a different take on some new growth opportunities was RoseArt Industries. The company has enjoyed success since launching Kodak brand scrapbooking products last year, but believes much potential remains. According to Steven Morowski, head of product development at RoseArt, scrapbooking already is a $2.5 billion market, but those sales are being generated by only 25 percent of women between the ages of 30 and 50 that comprise the target market.

"The amount of time involved in scrapbooking is a deterrent for some consumers, so we developed the Kodak Quick System, which simplifies the creation of a scrapbook," Morowski said.

The products will be promoted to 80 million households through a series of extended commercials referred to as "intersticials" that will appear on cable channels HGTV and DIY, according to Morowski.

In addition, RoseArt also plans to build on the success of last year's introduction of Thomas Kinkade painting products. This year, RoseArt launched Thomas Kinkade Kolorful Kids, a 12-SKU product line packaged with an instructional DVD.

Morowski also is focused on several new and old licenses. Star Wars, Cabbage Patch Kids and Pokemon are coming back, and RoseArt has a new license from Scholastic for a property called Maya and Miguel.

"We think it is going to be the next Dora [the Explorer]," Morowski said.

Also new this year from RoseArt was the extension into the novelty writing instrument business as a result of its acquisition of Moon Products. Moon had a license with designer Janet Harper, who has created some unique instruments for the brand featuring vibrant colors with graphics, textured surfaces and embellishments like feathers, springs and figurines.

"When people think novelty, they don't necessarily equate it with quality, but Janet Harper is the exception to that," said Taunya McDearman, marketing manager with the Moon Products division of RoseArt.

Two other major suppliers that have maintained their commitment to SHOPA are 3M and Henkel Consumer Adhesives. According to John Girard, director of sales and marketing for 3M's stationery products division, the company has numerous technological innovations in the works and anticipates more extensive new product introductions next year. For now, Girard said 3M is focused on driving sales of the items introduced last year.

From Henkel's perspective, the packing and shipping area has been identified as a key growth opportunity.

"Forty-two million Americans move every year," said Kristen Messina, senior category manager for Henkel.

The company is catering to the market by introducing innovative items that simplify the packing process, such as bubble wrap corners, clingy foam wrap for strangely shaped objects and specially designed boxes for glasses and other delicate objects.

Henkel also has introduced an electric lamination machine with a suggested retail price of less than $30.

"We've taken lamination and made it a mainstream product," Messina said.

While new product introductions and consumer trends tend to dominate any trade show, this year the biggest buzz at SHOPA was the show itself. The show was a shadow of what it was as recently as five years ago, making it difficult for those who attended the event to gain a well-rounded view of the industry. About 375 companies exhibited on the main show floor, compared with 675 companies five years ago. More significant is that several of the industry's largest participants were either not present on the show floor or dramatically reduced their booth size. Combined with the show's location in the cavernous Orange County Convention Center, the show seemed even smaller.