ETD: 755 Out of your control; TransWorld Halloween, Costume and Party Show; It’s No Longer the Gifts Business, It’s Gifting
E-Tailer's Digest
etd_post at gapent.com
Tue Jan 27 12:25:36 GMT 2004
E-Tailer's Digest --- Everything for the Retailer
Issue #0755 January 27, 2004
George Matyjewicz, Moderator mailto:georgem at gapent.com
Published by: GAP Enterprises, Ltd. http://www.etailersdigest.com
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CONTENTS
[1] Greetings
[2] Out of your control
[3] TransWorld Halloween, Costume and Party Show
[4] It's No Longer the Gifts Business, It's Gifting
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[1] Greetings.
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Hi All:
This week, in time for the New York International Gift Fair, sales tax
will be suspended in NYC. Which got me to wondering how successful that
will be for retailing. And what other issues affect retailing that may be
out of our control. What do you think?
Trade show season has begun. Some of our list members will be part of
upcoming shows. What about you? Will you be exhibiting, or visiting trade
shows? Please share experiences with us.
For most retailers, trade shows are key for success. You get to see new
products for the coming year, and you get to meet new vendors. Of course,
the meeting fellow retailers and the workshops are great for success.
How is business doing thus far this year? Weather seems to be affecting a
lot of business. What about you?
Let's hear about your business, which will remain for posterity at
our "Members: Who Are You?" site.
http://etailersdigest.com/resources/members/index.htm And we have a form
there for you to tell us about you. As I said when I first proposed this
idea, we have "known" each other for a long time, yet we often don't know
anything about each other. So, tell us who you are and what you do.
Now, let's get to everything for the retailer.
Sincerely
George Matyjewicz, PhD
Chief Global Strategist, GAP Enterprises, Ltd.
mailto:georgem at gapent.com
http://www.etailersdigest.com
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[2] Out of your control
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Visitors to New York City Big Apple and the New York International Gift
Fair (January 31-February 5) who want to do a little personal shopping on
the side can take advantage of Sales Free Tax Week. For one week only,
January 26-February 1, the city's hefty 8.25 percent sales tax will be
exempted on clothing and footwear purchases under $110.
The sales tax in NYC make shopping there quite expensive. If you purchase
a sweater for $100, the total cost is $108.25. Yet, if you take the PATH
train to Jersey City, NJ you get the same sweater for $100 (or even
cheaper, since rents are much lower). NJ has a fair sales tax - no tax on
clothing or food, except for luxury items, e.g. if you buy a fur coat you
will pay sales tax.
I wonder how badly sales tax affects sales. Do people say they paid
$108.25 for the sweater purchased in NYC? Or do they say they paid $100,
as the price advertised? Personally, I do the latter.
What other items affects sales that are out of the control of
retailers? Sunday closings (like in Paramus, NJ)? Change on traffic
patterns?
What do you think?
George
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[3] TransWorld Halloween, Costume and Party Show
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Zeroing in on the 2004 TransWorld Halloween, Costume and Party Show, March
12-16th Chicago. My partner, Phyllis Cambria and I produce the Buyer
Education (seminars and demonstrations) and this year we are introducing
something great for the 20th Anniversary celebration.
On Thursday, March 11th we are presenting an all-day workshop for
event/party/meeting/wedding planners ranging from beginners to veterans who
want to explode their businesses.
BUT, the feature that is geared to retailers is the special session "Adding
Planning to your Current Gift/Party Business" presented by myself, Patty
Sachs. We are encouraging retailers (both on and off-line) to either
attend themselves or send a representative to gather the information and
bring it back for this exciting business growth.
With the event of 78 million baby boomers turning 50-60, their kids
(boomlets) graduating from college, planning wedding and having little
boombinos, the celebration industry will be exploding even more in the next
decade. Getting in on the ground floor, that is, before it is covered
with confetti is a very wise move. Sales of all related products,
especially gifts, invitations, decorations and accessories will be astounding.
You can see the full-day schedule at http://www.pattysachs.com/alldayevent.htm
Love to see some ETD'rs there, if not for the workshop, for the show
itself. It is the biggest party of the year!
Patty Sachs
SpeakersWritersPlus.com
Patty Sachs, Celebrations Expert and Author Pick A Party Books,
PartyPlansPlus.com
SongSendsations Custom Songs for special people.
Catalog of Theme Party Goods Gourmet Party Fare
+++ [Moderator's Comments] +++
Thanks for the news Patty. If anybody is attending the show, please visit
Patty. And share your experience with us.
George
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[4] Gifts: It's No Longer the Gifts Business (i.e. noun) It's Gifting
(i.e. verb)
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What is the gift industry and what is it's primary business? Is the gift
industry about creating, designing, manufacturing and marketing gift items,
or is it the business of delivering a wonderfully unique, emotional
gift-giving ("gifting") experience to the customer? These are essential
questions for retailers and marketers in the gift industry. The answers
will determine the industry's future.
To provide a unique perspective on the business of gifting from the
consumers' point of view, Pam Danziger, president of Unity Marketing and
author of Why People Buy Things They Don't Need, will present new research
findings at New York International Gift Fair, Javits Center, New York City,
February 2. 9-10 a.m.
In a speech entitled, New Consumer Profile: Gifting is a Verb, Pam will
premier findings from the first comprehensive research study of the gifting
consumer market. While gift companies and gift stores focus on finding and
selling the next big gift item, consumers are choosing different kinds of
gifts that they find in different kinds of stores. This new research
challenges the industry to understand the 21st century consumer mindset
when they are shopping for a gift.
Here are key findings from the new gifting research study among gift givers
that spent more than $250 between January and October 2003 on gifts. By
knowing more about the gifting consumer, retailers and marketers can
maximize their sales potential in the gifting business.
Christmas gift shopping accounts for only 40 percent of the gifter's annual
budget
In the research study Unity Marketing found that consumers spend only about
40 percent of their annual gifting budget on the Christmas holiday shopping
season. That means they have 60 percent of their $2,062 annual gift
allowance left to spend on other holidays and gift occasions throughout the
year.
Typical gifter's budget is divided between gifting holidays and gifting
occasions
About 53 percent of the gifter's $2,062 annual budget is spent to buy gifts
for holidays. After Christmas, which accounts for $843 in spending,
Mother's Day is the next most widely gifted holiday. The remaining 47
percent of the annual gifting budget is spent for gift occasions. Birthdays
top the list of gifting occasions, with the typical gifter buying presents
for 7.3 people throughout the year and spending in total $349 on birthday
gifts. The second most widely gifted occasion is anniversaries, followed by
friendship/thank you/just because gifts.
Entertainment and recreation goods are the favorite choice among gift shoppers
The key attribute that distinguishes a good gift is something that the
recipient will like, but also something that they are unlikely to buy for
themselves. Because most gifters look for something that is more emotional,
rather than practical, they turn first to entertainment and recreation
goods, such as books, toys, sporting goods, video/audio, DVD's and
entertainment equipment, photographic equipment, computers, games, etc.
Next is clothing and fashion accessories, such as handbags and wallets, or
jewelry and watches, purchased by two-thirds of gift shoppers each. The
gift occasion plays an important role in helping consumers select across
product categories to pick out the particular gift to give.
Store selection hinges on price, selection, convenience; Discounters are
the most popular stores for gift shopping
While emotional factors largely guide the shopper in their choice of a
gift, the most important attribute for selecting a store in which to gift
shop is one that offers good prices, rated very important by 65 percent of
gifters. They "put their money where their mouth is" in their selection of
stores where they buy gifts. Discount department stores are the stores
where most gifters choose most often to shop for and buy gifts. This
includes warehouse clubs, dollar stores, and discount mass merchants, such
as Wal-Mart, Kmart, Target, Sam's Club, Kohl's, Costco, etc. When gift
shopping, it's the experience that counts and the experience most gifters
want is price, selection and convenience. The research shows that the
typical gift store is not connecting with gifters' primary gift shopping needs.
Gifting is an important reason for shopping
The typical gift shopper is someone that goes out on a shopping trip
specifically because they need a gift and have to buy one. While they
search for the best gift, they are unlikely to settle on what they find in
the first store, but to shop around looking for that something extra
special. When they shop, they have a maximum budget in mind for the gift
and so are likely to be drawn to sales or discounted items where they can
maximize the value of the gift while minimizing the price.
In conclusion, gift shopping is an important motivator for consumers to
shop and gift shopping takes place THROUGHOUT the year, not just during the
last two-or-three months. Retailers and marketers need to develop and
implement gifting strategies for the entire year, not just at holiday time.
They will be rewarded by not only serving the gifting needs of the shopper,
but the potential they have to touch and influence the gift recipient to
return to the store for their own gifting needs.
By researching the gifting experience, Unity Marketing presents a major new
research perspective of the gifting market. No other research study has
investigated gifting from the experiential point of view, including gift
giving incidence and spending throughout the whole year, including 7 major
gifting holidays and 12 gifting occasions (e.g. birthdays, anniversary,
wedding, friendship, etc.). The key attributes of what makes a good gift
are presented, as are the types of stores where gifters prefer to shop and
why. How people choose across the wide range of gifting options is
explored, including gift certificates and cash, home furnishings,
entertainment, apparel, gifts of experience, etc. Marketers and retailers
can put these insights to work to increase gift sales and build repeat
gifting business.
Pam Danziger, President
Unity Marketing Online
www.unitymarketingonline.com
717-336-1600
pam at unitymarketingonline.com
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