CHA Attitude & Usage Study Update: 12 mo. ending 12/31/10 Abbreviated Media Version Craft & Hobby Association. All rights reserved.
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1 CHA Attitude & Usage Study Update: 12 mo. ending 12/31/10 Abbreviated Media Version 2010 Craft & Hobby Association. All rights reserved.
2 2010 Craft & Hobby Association. All rights reserved. Understanding The Results
3 In January of 2010 the CHA A&U Research transitioned from a mail panel survey to an online panel survey: This move had a multi-fold purpose: Allows for a more advanced survey design: Skip patterns Appropriate pipe-ins to build on responses Segment specific probing Respondent and HH member probing Information Pop-ups Trade-off analysis More engaging and easier user interface Faster data turn-around 2010 Craft & Hobby Association. All rights reserved.
4 Chance for change a clean break from legacy gave CHA the opportunity to redesign a survey that best meets the needs of its members. Some changes include: 47 segments in 8 broad categories (was 39 segments in 4 categories) Fine Arts included (limited to certain measures) Expanded product lists And most importantly, richer information! Better representation of the US HHs (Males and younger crafters) Information at the user level (in addition to HH) More accurate profiling Read on children Information at the segment level Drivers of crafting, by segment Attitudes of specific segments Behaviors of specific segments 2010 Craft & Hobby Association. All rights reserved.
5 Data Consistency HH Incidence of Crafting Holds Steady The incidence of HH Crafting is the same for mail and online panels and remains 56% Market Size is roughly the same although the crafting universe has changed in how we define it. Some of the biggest changes are: The addition of Food Crafting, which is now the 3 rd largest segment $2.00 (bill) Woodworking is now the number one craft While it is likely that this craft has not experienced growth, the A&U now has a more accurate representation of males and younger crafters. 2009: $1.5 (bill) versus 2010: $3.3 (bill) The addition of 6 Fine Arts segments 2010 Craft & Hobby Association. All rights reserved.
6 The New Structure - 8 Categories 47 Segments - Artistic Artist trading cards Decorative Painting Glass Crafting Pottery Making Stenciling Mixed Media Art Other Artistic crafts General Candle Making Doll Making Do-It-Yourself Framing Fashion Fabric Decorating Food Crafting Home Décor (Non-Sewing) Leather Crafting Macramé Metalworking Mixed Media crafts Mosaic/Tile Wedding Woodworking Other General crafts Jewelry Making & Bead Bead (non-jewelry making) Jewelry Making Other Jewelry/Bead crafts Sewing Craft Sewing Fashion Sewing Home Décor Sewing Quilting Other Sewing crafts Fine Arts Calligraphy/Lettering Drawing Fine Art Painting Print Making Sculpture Other Fine Arts Paper & Memory Card Making Decoupage/Papier-Mâché Digital Scrapbooking Paper Cutting (shapes/boxes) Rubber Stamping Scrapbooking/Memory Other Paper and Memory crafts Needle Crocheting Cross-stitch Embroidery Fiber Art/Textile Art Knitting Needlepoint Needle Felting Weaving Other Needle crafts Floral Floral Decorating Wreath Making Other Floral 2010 Craft & Hobby Association. All rights reserved.
7 General is b y far the largest craft categor y followed by the Fine Arts and Paper & Memor y categories. U.S. Retail Sales (Billion $) Volume & Share - Among Total U.S. Households US Market Size = $28.6 Billion (±11%) Fine Arts General $9.92 (bill) 34% 13% 11% $3.70 (bill) Paper & Memory $3.34 (bill) Floral $1.99 (bill) Jewelry & Bead $2.30 (bill) Data based on 12 months ending December 31, % 7% 9% 8% 8% Sewing $2.46 (bill) Needle $2.86 (bill) Artistic $2.61 (bill) Projected Base: 111 Million Total US Households. Spending behavior is self-reported by consumers and is accurate only within certain ranges Craft & Hobby Association. All rights reserved. 7
8 General, Needle and Paper & Memor y have the highest US HH incidence levels. Incidence of Crafting - % of Total U.S. Households 56% 35% 31% 27% 23% 20% 19% 18% 18% Total General Needle Paper & Memory Fine Arts Sewing Artistic Jewelry Making and Bead Floral Data based on 12 months ending December 31, 2010 Projected Base: 111 Million Total US Households. Spending behavior is 2010 Craft & Hobby Association. All rights reserved. self-reported by consumers and is accurate only within certain ranges. 8
9 General spending is considerably higher than all other categories, even Fine Arts, which follows as the distant runner-up. Average Annual Craft Spending - By Crafting Categor y $470 $266 $190 $171 $164 $160 $147 $141 $128 Total General Fine Arts Jewelry Making and Bead Needle Sewing Artistic Paper & Memory Floral Data based on 12 months ending December 31, 2010 Projected Base: 63 Million Total US Crafting Households 2010 Craft & Hobby Association. All rights reserved. 9
10 Sewing and General have the highest per project spend while Jewelry Making has the lowest. Average Per Project Spending - By Crafting Categor y Sewing Machine sales were high in 2010 (2.9% of all sales) $36 $45 $42 $34 $31 $30 $29 $25 $20 Total Sewing General Artistic Floral Paper & Memory Needle Fine Arts Jewelry Making and Bead Data based on 12 months ending December 31, 2010 Projected Base: 63 Million Total US Crafting Households 2010 Craft & Hobby Association. All rights reserved. 10
11 Jewelry Making and Fine Arts have the highest number of projects per year, while more traditional and decorative crafts tend to have less. Average Number of Projects s - By Crafting Category Total Jewelry Making and Bead Fine Arts General Needle Paper & Memory Artistic Floral Sewing Data based on 12 months ending December 31, 2010 Projected Base: 63 Million Total US Crafting Households 2010 Craft & Hobby Association. All rights reserved. 11
12 Sales for Woodw orking far surpass an y other craft segment. Drawing and Food Crafting are also large segments. U.S. Retail Top 6 Segment Sales (Billion $) $3.32 $2.08 $2.00 Does not include Digital Scrapbooking Sales ($277 million). Combined sales are ($1.72 billion) $1.45 $1.44 $1.30 Wood - working Drawing* Food Crafting Scrapbooking /Memory Jewelry Making Floral Decorating * Fine Arts segments (e.g., Drawing) are not part of the deep-dive survey evaluation Data based on 12 months ending December 31, 2010 Projected Base: 63 Million Total US Crafting Households 2010 Craft & Hobby Association. All rights reserved. 12
13 Top reasons for starting a new project are to create a unique gift, to try something new, or to make something for an upcoming holiday/occasion. Top Reasons for Starting a New Project Wanted to give a unique gift Upcoming occasion or holiday Wanted to try something new 28% 27% 31% Completed another project Suggested by a friend/family member 16% 16% Data based on 12 months ending December 31, 2010 Made it to sell Saw a finished craft in a store and decided to make it myself Saw a product or display in a store Had instructions from a book, magazine or DVD 11% 9% 8% 8% Projected Base: 63 Million Total US Crafting Households 2010 Craft & Hobby Association. All rights reserved.
14 Crafters are driven by accomplishment, creativity, fun and relaxation. Top 10 Drivers of Crafting Gives me a feeling of accomplishment Is a great way to be creative Is fun Because it relaxes me I like to learn new things 84 I like to work with my hands Makes me feel better I enjoy the challenge Feel proud when people acknowledge my projects I forget about my daily problems Craft & Hobby Association. All rights reserved.
15 Crafting is popular throughout the U.S., with some moderate skew by categor y. Incidence of Crafting By Category West Incidence of Crafting HH s: 58% General : 41% Needle & Sewing : 33% Painting & Finishing : 30% Floral : 16% Midwest Incidence of Crafting HH s: 59% General : 41% Needle & Sewing : 33% Painting & Finishing : 31% Floral : 18% Northeast Incidence of Crafting HH s: 55% General : 38% Needle & Sewing : 29% Painting & Finishing : 29% Floral : 17% South Incidence of Crafting HH s: 56% General : 37% Needle & Sewing : 29% Painting & Finishing : 31% Floral : 19% Data based on 12 months ending September 30, 2007 Projected Base: 110 Mi llion US Households 2007 Ipsos Insight. All rights reserved. Contains Ipsos Confidential, Trade Secret and Proprietary Information. Percentages may not add up exactly to 100% or vary if recalculated due to rounding. 15
16 Family/Friends and magazines are the preeminent sources for new project ideas. Top Sources for Project Ideas Family/friends 46% Magazines 41% Books Internet Catalogs Store displays TV Craft shows Project sheets 29% 27% 25% 22% 21% 18% 17% School Classes In-store demonstrations 8% 8% 8% Data based on 12 months ending December 31, 2010 Projected Base: 63 Million Total US Crafting Households 2010 Craft & Hobby Association. All rights reserved.
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