Retailers Navigating Through a Sea of Imports

ade in China” used to be synonymous with mass-produced junk. Now there are many well-designed, well-made crafts coming from China — as well as Hungary, Mexico, India and you-name-the-country. Retailers from all over — major department stores, little gift shops, hardware stores, garden shops — are stocking their shelves with handcrafts from around the globe. And these imports are priced significantly lower than comparable U.S.-produced crafts.

It’s a challenge to convince the customer looking for affordable quality that she should buy the $45 pottery plate from you rather than the $12, made-in-China version from Pier 1; especially when the $12 version looks good and comes with its own plate stand. And the buyer can go to Crate & Barrel for those lovely hand-blown goblets from Hungary starting at just $10.95 each.

At Enigma American Craft Gallery, competition from imports is a real concern, although it’s currently limited to a few specific products for the most part.

Poor economy makes imports more attractive

The customer’s quest for value is nothing new, says Sandra Randolph of Good Goods in Saugatuck, Mich. “That’s always been true. People want good design and good quality at an affordable price.”
Nancy Ward of Enigma American Craft Gallery in Fayetteville, Ark., agrees, saying, “Price points have always been important.”

Because the local economy in Fayetteville continues to grow, Ward hasn’t seen a change in her customers’ spending habits. But, although competition from imports is currently limited to a few products, it is real. “It’s almost not worth buying picture frames,” she says, “because of all the nice-looking imports.”

In Prescott, Ariz., the poor economy has affected business, says Michael Baruch of A’Loft Gallery of Fine Art. Three of the town’s galleries have closed in recent months. Sales in the $1,000-plus range have dropped off considerably at A’Loft.

Customers are looking for items in the $25-$35 range, and the gallery has begun carrying some imports. “The gallery is becoming more crafts than fine arts,” says Baruch. “You have to balance carrying the items you’d like to have and the ones you have to have to stay in business.”

Although this past Christmas season was the best ever for Spirit of the Hand in Dandridge, Tenn., the economy has been a factor in their overall sales. “I noticed that people were scaling back,” says owner Kathy Wing. “They bought fewer high-end things than before.” And Wing finds that imports are creating competition in all media.

For Cynthia Hoskins of Earthenworks Gallery in LaConner and Port Townsend, Wash., quality imports are a cause for concern. “There are so many different places to buy, and choices are unlimited; it’s kind of scary sometimes,” she says.

At Gallery Vetro in San Antonio, Texas, high-end sales have stayed strong, says Phillip Schrank, owner of the art glass gallery. However, sales in the middle range ($500-$1,000) have dropped. “People want larger glass for less money,” Schrank says, “and they no longer buy impulsively.”

At Gallery Vetro, the handpicked inventory has protected the store from competition from imports.

Gallery Vetro hasn’t experienced competition from imports, primarily because Schrank says his handpicked inventory cannot be duplicated.

At Appalachian Spring, which has four stores in Washington, D.C., and Virginia, sales of quality, higher-end work ($500-$1,200) are strong, and there’s no indication of competition from imports. “So far in 2003, we still have customers who see the desirability of having well-made, well-designed, cutting-edge work, and they expect to pay a little more for it,” says Paula Brooks.

Brooks agrees that the huge availability of inexpensive imports creates competition for crafts on the lower end of the spectrum. But, she says, that’s a function of a stage of life: for the younger crafts aficionado setting up an apartment, the choice might well be affordable, imported products. Later, when more disposable income is available, that same person might trade in the bargain goblets from Mexico for ones hand blown by an American artisan.

Can retailers compete with imports?

“I don’t know if there is an answer,” says Hoskins. She plans to buy more systematically this year, paying more attention to filling in inventory gaps.

“I don’t feel like I compete very well,” says Wing, but she has a strategy. She continues to emphasize that everything in Spirit of the Hand is handmade in the United States. “I talk about the individual artist and try to put a personality with the work,” she says.

“It’s going to get harder as the world becomes smaller,” says Randolph. “I’m constantly looking for beautiful design at a reasonable price.”

Furniture products such as the Sticks line (Sticks Object Art and Furniture), which can’t be copied and therefore are not subject to import competition, are an important part of her inventory.

“We can’t compete with imports from China on the lower end, unless we carry them; then we’re a gift shop,” says Arthur Grohe of Signature Gallery Fine Arts with four galleries in Massachusetts and Connecticut. “But there are some good fine crafts in lower price ranges if you get creative and look for them.”

Grohe also looks for other trends. “We’re focusing on homes. Furniture has become very important — that’s one of the strengths of the craft world.” And he continues to search for items that “have an artistic statement, and where some of the personal energy of the artist comes through. That’s what we can sell. You’re kidding yourself if you think you can compete on price.”

Brooks sums up Appalachian Spring’s philosophy: “We always try to carry merchandise that is distinctive, of good design, and with cutting-edge ideas. If we look for the things that brought us to this business in the first place, other things — not always, but usually — take care of themselves.”

Grace Butland is market coordinator for the Nova Scotia Designer Crafts Council. She resides in Nova Scotia.