Market Access Manual for Artisans Rev2 - Caribbean Export ...

OPPORTUNITIES THREATS
� People in Western markets are living longer:
increasing the number of gift-buying occasions. The
‘grey market’ (the over 50s) often have high
disposable incomes.
� Internet and digital TV may provide new
opportunities for sales.
� Growing public awareness and interest in UK and
USA in ethical and fairly traded products.
4.2 KEY PLAYERS IN THE US & UK MARKETS
� Global recession
� Stiff competition from China and South East Asia,
where labour rates are very low.
� Traditional giftware faces competition from ‘gift
experiences’, where vouchers can be exchanged for
activity days.
� ATOs and importers are focusing on food products to
increase sales (especially in mainstream outlets)
In order for Caribbean handicraft producers to further understand the breakdown of the US and
UK consumers it is important to look at the major players in these two markets.
Key Players in the US Market
According to the US Aid Study, potential buyers of handicrafts in the US were as follows:
• Specialty and lifestyle stores ‐ this category looks for unique products not available at mass
retailers. For example, Crate & Barrel, Pier 1 Imports, and Pottery Barn. They are focused on
either a single category of merchandise or a few closely related categories. Some offer low
prices with limited service, while others seek to differentiate themselves through higher‐
quality service.
• Catalog and internet retailers - is the direct to consumer channel. A high percentage of
young consumers in the US, including Hispanics and African Americans, are buying home
accessories through this channel. They include Sundance Catalog
(http://www.sundancecatalog.com), Smith & Hawken (http://www.smithandhawken.com),
and L.L. Bean (http://www.llbean.com). While some of these retailers sell large volumes in
various categories, others are not big enough to support container‐size orders; thus, product
is sourced both directly and through wholesale importers.
• Independent retailers - are small stores such as tourists’ shops, art galleries and museums.
This channel has been traditionally a large and constant outlet for handicrafts and there is a
growth in the luxury market.
The following are examples of independent retail stores in the U.S. market:
• Home accent and gift stores comprise the largest independent retail outlet category for
home accessories, with estimated 2004 sales of $14.6 billion and projected 3.1 percent
growth to $15 billion in 2005. These stores are local or regional companies that carry gift
items, accent furniture, tabletop items, and decorative pillows, among other products. A
number of small lifestyle stores also fit the independent retailer category. This channel
presents opportunities for developing-country producers because of the retailers’ typically
more usual product mix, smaller unit quantities, and fewer production requirements.
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