H&H (Home and Hand) was held for the 4th time in the US. Originally from Cologne, Germany - a place just an hour away from where I was born in Holland - it has been taking America by storm. Its focus is not only fabric. Actually, it started with knitting, crochet and all the other hand crafts have been added over time. Fabric really was the reason for the big growth this year. Attendance was 26% up, 5000 attendees and the number of exhibitors grew with 38%, if I quickly wrote that down correctly. That is a major accomplishment and an amazing success story. Opening felt a little like QuiltCon, but now for shop owners, designers, industry professionals. It is wonderful to witness this excitement. This is an industry of passion after all.
This is a business show and as a person who loves business, I have to be realistic as well. Much of the show was not for me. I don't care for yarn, beads and I know nothing about it. I walked the displays but that's about it. The idea is that shops could expand and offer a broader assortment of craft products.... I am sure it will work for some but for most it won't at all. I would not know what to buy looking at all those yarn booths! Some yarn and fabric shops are also great coffee shops, but that doesn't mean coffee, coffee machines have to be added to the show. I have some knowledge of the fabric industry and I feel sorry for the yarn shop having to decide on adding fabrics to the shop based on what he/she sees here. There is a lot of fabric to see, but it is only the top of the iceberg. There is so much that you can't see at this show! Shows are hardly a representation of the industry any longer. The entire Jaftex company was squeezed in a bedroom size booth, with only one quilt hanging from one of its smaller divisions...One of my other favorite fabric companies was stuffed into a square booth that made me feel claustrophobic. People super close together in between tables and behind them some quilts hanging on a wall. It's already hard for a fabric shop to make fabric decisions, I can't imagine how another craft shop would do this. By the way, Andover, for the first time, had a big booth and it was wonderful to see Adam, the young new president of Andover, enjoying all the beautiful displays of his team. Yes, show displays make a world of difference if you want to be seen by new clients. Moda and Riley Blake are the consistent best exhibitors.
The show offers many opportunities for networking and taking business classes and here is a common ground for all the different crafts. No longer with a business, I didn't take any of these classes, but they are a wonderful source of learning for the many young shop owners that were attending. Having a business in crafts is so much more than loving fabric or yarn! The opening session with the Keynote Panel was by far the most interesting part of the show for me. It is great when we love what we are doing, but how do we do it in a successful way and grow a healthy business?
Three things stood out to me:
1. With the bankruptcy of Joann's how do we attract those customers to our shops? The panel was in agreement that it didn't think it is smart to cater to those customers. Joann's customers have a negative press. They want cheap fabric, deep discounts and coupons and that is something any regular shop can not offer to stay in business. It didn't work for Joann's (or fabric.com) either! A healthy shop has to charge a certain amount to be able to stay in business and the Joann's price mind is not a working model. We should educate our customers why a certain, reasonable, price has to be charged and customers need to learn that you can't have a local quilt shop with nice, knowledgeable employees and pleasant displays for $7.00 per yard. Customers need to know that by paying a fair and full amount, they are also supporting a shop's existence. Any full price sale is not only the way to get beautiful products, it is also a cushion for harder times, so that shops can stay in business. Snowdays, miss cuts... they are all expensive!
That said, many especially new quilt shop owners fall for the "sale trap" themselves. When you put the extra wide fabrics on sale every 3 months with 25% discount, any customer will learn really quickly that he/she doesn't have to pay full prices for extra wides as a sale will come again! Probably around the time he/she needs a new backing. That shop trains the customer the wrong way and is hurting its own business. Another "Joann" mistake: giving 25% discount on everything, instead of targeting certain products that appeal to customers and are good for the shop to get rid of. A general discount shows a cash flow problem, period. A shop can do it for a day or a week, but it is hurting the business long after that day/week is over. Shops themselves have to find ways to sell at a healthy price and I know, that is far from easy. Targeted discounts as a thank you or an incentive for customers to come in are great, but hopefully this customer is also willing to buy full priced items.
I do think "the" Joann's customer is someone to cater to, but there are other ways. It is possible for shops to create different price levels for fabrics, for instance by having a stronger sales area or buying fabric at a lower price point from manufacturers so that they can sell them at lower prices and still get a healthy profit. If (if) I would make a Halloween costume for my granddaughter, I wouldn't buy 3 yards of $14.00 per yard. Yes, that fabric may be nicer, but for that one occasion a more simple fabric will have to do for my grandchild. Hopefully, another grandmother thinks differently and she goes all out...
The market has the idea that differentiating what a shop offers may be healthy. When knitting becomes more popular, it is nice to have yarn. When garment sewing is in a dip, crochet can be the help to keep the bottomline healthy. Yes. The panel quickly pointed out that shop owners need to have knowledge of what they are doing. You can't sell yarn if you have no idea how to knit. You have no passion, no knowledge to share with your customers. They felt that was one of the main reasons Joann's didn't make it. Yes, you can hire an enthusiastic knitter, but this knitter can leave one day, move to another place, or start her own shop. All this happens! It is the reason why some quilt shops sell sewing machines and others not. Why some shops offer garment sewing and others not. It all has to fit the owner as well, who carries all the financial responsibility for the fun.Nobody mentioned Michaels. This generic craft store has been adding fabrics to its assortment. Walmart, Hobby Lobby have cheaper fabrics as well.
The message of other inventory products would not be for me in my shop days. There was so much fabric that I already would love to have in my shop but that I couldn't because of space or other reasons, I would always buy that fabric first before I would even remotely think about beads or buttons. Of course, softer edges exist as well: embroidery, garment sewing, purse making.... some changes have already happened in most quilt shops.
I was chatting in a booth of fabric friends, when someone from Idaho showed up. He was the real-life version of the panel discussion. Apparently, people are moving in big numbers to Idaho, but there is very little fabric available. "What do I need to buy?". The fabric manufacturer was quick to ask for his business card and a sales rep will follow up. The person had no idea about fabric but is smelling a business opportunity. And so did my fabric manufacturer. I hope it will work for both, but I am pretty concerned for the shop.
2. The other thing that stood out to the panel is the uncertainty tariffs have created for the industry. Fabrics are being printed in several countries in Asia and many notions and gadgets are coming from China. Already, some items are not available at wholesale distributors. I double checked Lite Steam a Seam 2 that I need for my collages. I can't do anything without it and I couldn't teach a workshop! Thank goodness it is being made in the US. Companies are walking a very fine line and a certain hesitancy is noticeable. Not only are the products shops carry going to become more expensive, so are all other items people need to buy. It leaves less room for hobbies and raises the bar for all. Here too, the panel said it is all about educating the customer. A shop needs to raise the price because tariffs have been added. Not by the shop, not by the fabric company, but by the president. A shop has no choice but to raise the price...big sigh. Everyone was hoping that tariffs would be going away again....
3. The last thing that was interesting to me was the discussion about the use of social media. It seems something is changing. I loved Anna Maria Parry's view: "We don't want to bombard our customers with ads that scream buy, buy, buy. These days "Likes" and "hearts" can be generated by AI, it says nothing. In our business we want followers who have an authentic interest in what we are doing. "Organic engagement", "genuine". We want to communicate with our customers, talk about what is important to them and us and then sales will follow." Amen. That's exactly why I am doing what I am doing and that is probably also the reason why you are reading this blog and asking me for help with your fabric needs!