The Arts and Crafts Consumer - US - January 2016

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY
Market overview
Figure 1: Estimated US retail sales of art supplies, 2011-14
The issues
“Crafter” is not the preferred nomenclature
Figure 2: Crafting nomenclature, by all and crafters, October 2015
Men participate in craft activities, but aren’t likely to visit a craft store
Figure 3: Shopping locations, by gender, October 2015
Walmart siphons Hispanic consumers away from craft chains
Figure 4: Shopping locations, by Hispanic origin, October 2015
The opportunities
Online videos provide instruction and inspiration
Figure 5: Craft inspirations, October 2015
Men may enter the market by crafting with their kids
Figure 6: Craft-related activities – Crafting with kids, by gender, October 2015
Crafters likely to buy handmade gifts for others (and themselves)
Figure 7: Craft-related activities – Handmade gifts, October 2015
What it means
THE MARKET – WHAT YOU NEED TO KNOW
Sales of art supplies estimated at nearly $1.5 billion
Overall craft market is growing
Crafting remains a popular kids activity in the face of new technologies
Online communities support crafters
Population factors work against growth
THE CRAFT MARKET
Art supplies market approximately $1.5 billion
Figure 8: Estimated US retail sales of art supplies, 2011-14
Figure 9: Retail channel breakdown, 2011 and 2014
Craft market sustains growth despite decline in traditional craft types
Figure 10: Craft participation in the last 12 months (net), 2009-15
Figure 11: Number of Michaels locations opened and closed, 2010-14
Specialty craft chains show growth in visitation
Figure 12: Craft retail stores visited in the last three months, 2009-15
MARKET BREAKDOWN
Cooking and baking are popular craft types
Scrapbooking loses momentum
Figure 13: Craft participation in the last 12 months, 2009-15
Painting, drawing, sculpting appeal to kids
Figure 14: Kids’ craft participation, 2006-15
Arts and crafts remain popular activity for kids 6-11
Figure 15: Kids’ ownership of toys and games, 2006-15
MARKET PERSPECTIVE
Online marketplaces help crafters to thrive
Craft retailers capitalize on seasonal merchandise
Growth in “Paint ‘n’ sip” indicates opportunity for social art classes
Millennial parents revisit kids’ activities with their children
MARKET FACTORS
Growth in social commerce may boost the market and inspire crafters
Declining rates of marriage and fertility may reduce key craft audience
Figure 16: Marital status, adults aged 15+, 2005-15
Decrease in key demographic of kids 6-11 may dampen market
Figure 17: US population <18, by age, 2010-20
KEY PLAYERS – WHAT YOU NEED TO KNOW
Craft supplies market comprised of three major players
Amazon and Etsy compete in handmade space
DIY still an important component of crafting
Etsy faces challenges
Pinterest and Etsy demonstrate 2016 craft trends
Arts education may see a boost
RETAILER OVERVIEW
Michaels Stores Inc.
Figure 18: Sales for Michaels stores by department, 2012-14
Figure 19: Michaels stores net sales, $ billions, 2010-14
Jo-Ann Fabric and Craft Stores
Hobby Lobby Stores, Inc.
Etsy
Amazon Handmade
WHAT’S IN
Adult coloring books
Hand Made Modern focuses on families
Jo-Ann launches “Make-It-Yourself” movement
Figure 20: Jo-Ann online advertisement, December 2015
Figure 21: Fringe tree by Martha Stewart crafts instructional video, December 2015
Visual search makes Pinterest easier to navigate
Handmade for a cause
Figure 22: Your Wishes Delivered: Handmade gifts of hope, November 2015
WHAT’S OUT
Craft trends on the way out
Partnering with retailers tarnishes Etsy’s brand
Expansion may be slowing for Craftsy
Cracking down on counterfeit goods may reduce Etsy’s value
WHAT’S NEXT
2016 craft trends gaining traction
Revamped art education efforts pay off
Maker movement in schools helps to marry technology and crafting
THE CONSUMER – WHAT YOU NEED TO KNOW
Key craft audiences include women, parents, Hispanics, and 18-44s
Craft makers consider themselves “creative”
Handmade gifts popular with more than a third of respondents
Online videos provide instruction and inspiration
Walmart and craft specialty chains are preferred retail locations
POPULAR TYPES OF ARTS AND CRAFTS
Majority of Americans participate in craft making
Figure 23: Types of arts and crafts made in the last 12 months, October 2015
Women dominate most craft types
Figure 24: Types of arts and crafts made in the last 12 months, by gender, October 2015
Ages 18-44 more focused on craft making
Figure 25: Any type of arts and crafts made in the last 12 months, by age, October 2015
Hispanic consumers likely craft makers
Figure 26: Any type of arts and crafts made in the last 12 months, by race/Hispanic origin, October 2015
THE LANGUAGE OF CRAFTING
Respondents prefer “creative,” “handy,” and “DIY-er” to “crafter”
Figure 27: Crafting nomenclature, by all and crafters, October 2015
Women identify more as “crafters,” men as “handy”
Figure 28: Crafting nomenclature, by gender, October 2015
Younger consumers don’t think of themselves as “handy”
Figure 29: Crafting nomenclature, by age, October 2015
Parents identify with language around crafting
Figure 30: Crafting nomenclature, by parental status, October 2015
CRAFT-RELATED ACTIVITIES
Craft stores encourage browsing
Figure 31: Craft-related activities – Buying and selling, by age, October 2015
More than a third of respondents make or purchase handmade gifts
Figure 32: Craft-related activities – Handmade gifts, by generational group, October 2015
A third of respondents learn craft skills through online videos
Figure 33: Craft-related activities – Online activities, October 2015
Moms and Dads both crafting with kids
Figure 34: Craft-related activities – Crafting with kids, by gender, October 2015
Hispanics over index on craft-related activities
Figure 35: Craft-related activities – Online and offline behaviors, by Hispanic origin, October 2015
SHOPPING LOCATIONS
Craft chains and Walmart are both craft supply destinations
Figure 36: Shopping locations, October 2015
Figure 37: Shopping behaviors, Walmart and craft specialty retailers, October 2015
Amazon and Target attract higher-income consumers
Figure 38: Shopping locations, by income, October 2015
Craft chains struggle to attract male crafters
Figure 39: Shopping locations, by gender, October 2015
Hispanic crafters less likely to choose craft speciality store
Figure 40: Shopping locations, by Hispanic origin, October 2015
Textile crafters show preference for specialty stores
Figure 41: Shopping locations, by craft type, October 2015
SHOPPING BEHAVIORS
Shopping can lead to inspiration
Figure 42: Shopping behaviors, October 2015
Women prompted by sales and men more likely to look for expertise
Figure 43: Shopping behaviors – Sales, by gender, October 2015
Men more budget conscience than women
Figure 44: Shopping behaviors – Budgets, by gender, October 2015
Retailers should consider children aged 6-11
Figure 45: Shopping behaviors, by presence of kids, October 2015
SOURCES OF CRAFT INSPIRATION
YouTube more often a source of inspiration than Pinterest
Figure 46: Craft inspirations, October 2015
YouTube appeals to parents of kids 6-11
Figure 47: Craft inspirations, by presence of children in the household, October 2015
Hispanics turn to YouTube for inspiration
Figure 48: Craft inspirations, by presence of children in the household, October 2015
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Consumer survey data
Consumer qualitative research
Online marketing creative
Abbreviations and terms
Abbreviations
APPENDIX – THE MARKET
Figure 49: Craft participation in the last 12 months, 2009-15
Figure 50: Craft retail stores visited in the last three months, 2009-15
Figure 51: Craft participation in the last 12 months, 2009-15
Figure 52: Kids’ craft participation, 2006-15
Figure 53: Kids’ ownership of toys and games, 2006-15