Jamie Gallagher, CEO, Faber-Castell USA
With years of experience at toy giants like Lego and Playmobil under his belt, this seasoned industry vet gears up for his latest executive endeavor
by Pamela Brill -- Playthings, 9/1/2003
PLAYTHINGS: How have your previous positions prepared you for your new role? And what attracted you to this new career opportunity?
There's a common thread—all of these companies' brands compete at the higher end of their categories. What really energized me about Faber-Castell is that once the company's products are in consumers' hands, there's a great level of satisfaction [on that end]. I've now walked into a situation with a quality brand that needs more consumer awareness.
PLAYTHINGS: The Faber-Castell name is associated with high-end supplies for professional artists. With the acquisition of the Creativity for Kids brand, the company portfolio expanded into crafts for children. How has the company translated itself for the American marketplace, while continuing to maintain its European roots?
There was such a tremendous contribution by Phyllis Brody and Evelyn Greenwald from the acquisition [of Creativity for Kids] in '99 until now. They worked with the Faber-Castell group in Germany to meld the two cultures.
The open mindedness from the Faber-Castell group has been very impressive; this is an international company with divisions that operate in different markets. There has been an acknowledgment that the Faber-Castell brand is not at the same level of development as the company's other brands. We've got a tremendous creative resource in Cleveland [where Faber-Castell USA is based] that has been developing Creativity for Kids products. Now we can turn some of that over to Faber-Castell.
PLAYTHINGS: How will Faber-Castell then go about maximizing its brands at retail?
The approach is going to be led by consumer awareness and acceptance. As we are able to generate that, distribution will come hand in hand. Our mission is not to be everywhere, but to expand our presence in existing locations and selectively expand distribution in new places.
Our real focus is on generating strong rates of sales within retail channels based on communicating points of difference. The time is right for the higher end to be well represented.
PLAYTHINGS: How can retailers carrying crafts compete with the major chains whose prime focus is crafting?
These retailers have the opportunity to set themselves apart from other retailers who don't have the in-store staff. Those stores that host crafting events, I believe, are able to re-establish—and deepen—their customer base. It's those relationships with loyal consumers that make a huge difference.
The breadth of our distribution in the crafts superstores is nowhere near the opportunity that the smaller retailer could have. The larger accounts don't have the ability to provide that one-on-one customer service via an interactive event.
It all comes back to the critical question about how smaller retailers can go about competing. It's up to those who can identify the unique assets they own and push to leverage them.
As much as we communicate a product's experience through packaging, there's nothing like the hands-on experience offered by a retail event. Because our product is built upon key points of difference, there's no better way to understand that than through these events.
PLAYTHINGS: What types of growth opportunities do you foresee for Faber-Castell as a company?
Our portfolio is such that we can go to different parts of the retail world with our assortment of products—this is something that I don't think I fully realized. These different channels include everything from the mass outlets, to toy specialty, gift specialty and even office superstores.
Going after new markets, though, is not a matter of capturing every property on the Monopoly board. It will require a much more logical approach from here on out.
