Crafty business

Among all the gadgetry of modern life it's far too easy to forget that 'cut' and 'paste' are not just functions on your word processor. Creativity and self-expression don't require a mouse (unless you're making one out of felt) and arts and crafts are no longer limited to the same old scissors, crayons, paste and construction paper.

The category has evolved and expanded over the last few years to encompass new markets and materials—and it's become big business for many retailers. Chain stores devoted to crafting, such as Michael's and The Rag Shop, are growing in number and popularity. In addition, manufacturers are rapidly expanding their ranges into new niches in an effort to stay ahead of one another.

Arts and crafts is also a category that may well benefit from a downturn in the economy. Susan Brandt of the Hobby Industry Association (HIA) says, "I think we will see people returning to crafting partly as a money-saving activity, if the economy goes south."

The growth spurt in crafting has slowed compared to recent years, she says, but while there are fewer people doing crafts, those people that are involved are spending more money as products become more sophisticated.

An online survey conducted by the HIA in February showed that for many people, crafting is the habit of a lifetime, and all the better if consumers get hooked when they're young. Of some 500 respondents, 40 percent said that they began crafting in early childhood, while 31 percent got their start between the ages of 13 and 20. Additionally, over 26 percent of the respondents reported they had been crafting for more than 30 years, while 44 percent said they had been crafting between 11 and 20 years.

Crafting appeals to people because it allows them to express themselves. "I think that all of us like to be proud of what we do," Brandt says. "Crafts make great gifts, particularly in the economy we have been enjoying where people have more money than time. The fact that someone will take the time to make something rather than just buying it off a shelf really means something," she adds.

Kathy Walsh, Curiosity Kits director of marketing says, "The popularity of crafts is partly a backlash from parents who are looking for alternatives to software and video games and high tech toys. I think there is a real demand for products that encourage kids to use their imagination and their motor skills."

Too much technology may be part of the reason people turn to arts and crafts, but it is technology that has made the category more appealing. Modern materials, that dry faster, go on smoother and simply work better, are encouraging more people to get hands-on.

Technology can give timeless products a new spin, such as the Shrinky Dink Maker by Spin Master that allows kids to make the classic plastic toys (about to be reintroduced after a 10-year hiatus) without having to rope in a parent's help to use the oven.

It also means new and innovative product lines are blasting open the market and challenging the staid stereotypes of crafts with offerings such as Everyday Products' Everyday Kolor, which can be used as a watercolor or textured paint to create artwork or transparent paint-and-peels. The versatile product can even be molded around 3D sculptures.

Much to the delight of parents, improved technology also means easier clean up. It can even be part of the fun, as in the case of ALEX's best-selling Bathtub Painting and Crafts kit that allows kids to create messy masterpieces that are far easier to wash off than squirming children.

Retailers say some of their favorite brands include Curiosity Kits, Creativity for Kids, ALEX, Think of It, Klutz, Everyday Products and Do-A-Dot along with the more traditional offerings from brands such as Play-Doh, Easy-Bake and Crayola that have long-standing heritages and cross-generational appeal. Gel pens are still hot, retailers say, as are mosaic tiles, miniature sets and anything kids can personalize like bowls, umbrellas, CD cases and jewelry boxes, especially if can be used to make a statement or decorate a room.

Curiosity Kits' Walsh says, "Fashion items and room décor for tweens are where retailers are seeing the most bang for their buck. Our research shows that age compression is a reality and kids are outgrowing toys younger and younger. Crafts allow them to bridge that gap." Lisa Ritchey, a Creativity for Kids spokeswoman, agrees, "Tweens have bigger allowances than younger kids, and they're the ones spending times in the malls—shopping and buying things for themselves."

And retailers have no selection shortage for tweens when it comes to crafts, with jewelry kits, trendy fashion accessories and the new category of make-your-own beauty products, like Ideoplastos line of Mixology beauty kits, cramming the shelves. "Five years ago there was no such thing as making your own beauty products," says Brian Miller, the owner of Gepetto's, a San Diego, Calif. toy store. " I think crafts and beauty provide a nice complement to each other where girls have a product they can use at the end and have fun making it."

ALEX launched a brand new line for girls this year called 'Go Wild.' Products include jewelry, a diary, a night light, body painting kits and activity books in zany animal print styles. ALEX spokesman Mike Bennis says, "We've taken inspiration from what's fashionable and trendy in the adult market. We've got lots of glitter and glamour, we've got bandanas and scarves and funky pet collars, all in really outrageous colors. Tweens love it."

For self-conscious tweens, looks are important, but some companies try to add value beyond nifty packaging. Curiosity Kits, for example, sets its Curious Girls line apart with its sleek silver can packaging, but also tries to "foster self-esteem in that awkward age," Walsh says, by including real-life advice, tips and stories in the books accompanying the product.

The craft and activity category is generally dominated by girls, but Julie Gannon, owner of The Toy Box in Hanover, Mass., says that tween boys do buy room décor products although the themes may lean more towards sports, dinosaurs or space.

Appealing to males with arts and crafts may be in the marketing approach. "We don't characterize our products as 'arts and crafts' because boys will be put-off just by the word 'crafts,'" Walsh says. "I think the fact that the market is so girl-oriented is completely a function of manufacturers not doing what parents want. We're continually hearing from retailers and consumers that they want more boy products in this category. It's a huge untapped opportunity." Curiosity Kits tries to fill that gap with the gender-neutral Make Your Own Comic Book, sports products such as the Star Player Pillows and the All Star Sports Rack and a new 12-inch wooden Make Your Own Sailboat that has been popular with boys and dads alike, Walsh says.

Jennifer Richmond, vice president of licensing at Jakks Pacific has a slightly different take. "Boys are into the gross-out factor. We've done well with branded licenses that play off that such as Nickelodeons' Gooze." Branding that boys can relate to also does well, she says, and the company is expecting very good things from its new Harry Potter range of crafts that will be released later this year.

Eileen Levitt of Everyday Products says the company specifically featured a "more masculine" bug on the box of the company's Everyday Kolor Incredible Insects kit. "It sounds so chauvinistic," she says, "but people looking for a gift for a boy wouldn't necessarily look in the arts and crafts section. Incredible Insects would probably do a lot better in the science section."

Kay Emigh, owner of the Growing Tree Toys & Books in State College, Penn., says she sees as many boys as girls attend the stores' Kidtivities play days (see sidebar, p. 48). "We like to be open-minded about our activities, and although we'll balance airplane-building with jewelry making for example, we've been surprised to discover which activities appeal to both genders. Boys love to cook as much as girls do, for example, and they're perfectly happy making candy jewelry for their sisters or their moms."

Of course, many kids products also appeal to adults. Lisa Ritchey laughs, "We've received a couple of letters from college kids who use our products as stress relievers." And in New York City, a major advertising agency holds Everyday Kolor breaks to inspire its creative team. Klutz's Petal People fairies and Creativity for Kids' Magical Mosaic and its miniature paint set have all found popularity among the older crowd, as has origami manufacturer, Aitoh's high quality Yuzen papers, silk-screened with Japanese print designs at a very adult price of $1 per sheet.

Some companies specifically target adults. Curiosity Kits, with its mothers-to-be line is one and Green Works, a manufacturer of recycled paper crafts, that is intending to expand its range to include the geriatric market, is another. Paul Finn, Greenworks' U.S. representative says, "We're working on a line of kits suitable for people in old age homes, for those people who have retired and are looking for things to do. We're about a year away and we don't want to talk about it too much, but we think it's a very big market."

Scrapbooking may be another trend that can boost sales for retailers who include arts and crafts materials among their offerings. Look for a special arts and crafts scrapbooking feature in the June 20 issue of PLAYTHINGS Extra, our weekly e-newsletter.