Nobody Wants New?
I just returned from the ABC Kids Expo in Vegas this past week. The show is a children’s industry tradeshow that connects children’s manufacturers with buyers from specialty boutiques, department stores, and chains. Buyer traffic was down as the case with most shows; however, I couldn’t help but notice a reoccurring theme throughout the five day show. Nobody wanted new. The manufacturers I spoke with all commented that sales were down about 35-50% and that the customers that were still buying were existing customers. I couldn’t help but feel sorry for the newcomers that ventured out to the show for their big launch, as many left with no orders written. It seems the economy has left the buyers skittish and I can’t blame them. They are suffering the same cash flow crunch we all are with their sales down 35-50% as well. Many retailers are shutting their doors and others are barely holding on. The safe bet becomes the best bet. This theme rang true with my own line and customers as well. About 90% of my orders came from existing customers and they only ordered the pieces that had sold well in the past. They didn’t want the new pieces or anything remotely seasonal. In contrast, the last three years I had exhibited at this show about 90% of my sales were from NEW customers. Talk about a complete turnaround! While I wouldn’t call my findings a “proven statistic”, I do think they are a fairly good representation of the real-world effects our downed economy is having on consumers. Their tolerance for risk is nonexistent.
What do you think? Have you launched a new product? If so, what has been the response? Are you a buyer? If so, are you trying new products or sticking with the “tried and true”?
September 17th, 2008 at 1:01 am
Hi Heather, thank you for your article. I am not surprised to hear about the lack of interest for new products. I hope that this situation will be short lived. I just launched a new product and have had mixed results thus far. I’ve found success with innovative web-based companies. One company ordered from me and actually sold out in three weeks. I think their strategy is to buy in smaller quantities and test sales response prior to placing bigger buys.
September 23rd, 2008 at 1:14 pm
Hello Heather,
First of all, congratulations on Glamajama! And thank you for your post. It rings very close to home.
I am also a designer/manufacturer in the children’s industry. I have attended KidSHOW trade show in Las Vegas and, like you, found that buyers were only buying their proven brands– NOTHING NEW. Other brands found the same. I wonder if Vegas is not a good location for small/new brands? I recently showed at Bubble in NY which is a show specifically geared toward new emerging designers. This show was very successful for my new line. I also hear that ENK NY was successful for obtaining new customers.
However, the interesting thing I have noted at both shows is that buyers are buying much closer to their in-store date. That is, they are buying “immediates” to fill their stores in the coming weeks, and not investing in future deliveries. It is not surprising that they would prefer to wait out the soft economy and see their customer reactions. But an interesting new way to buy.
Thanks again for your insight.
Good luck with your business,
Tina Schreiber
http://www.velvetandtweed.com
Velvet & Tweed… because growing up is a special occasion.
September 23rd, 2008 at 1:15 pm
p.s. would LOVE to hear buyer reactions/comments on this subject. thanks!
October 23rd, 2008 at 10:49 pm
I used to design t-shirts for the big brands…and I am launching my own small group of t-shirts to the motorcycle market at an event show in december…I will keep my expectations realistic.
I’m selling direct to attendees and wholesale to any dealers that are interested. It’s my first event/show and another one following in Jan. 2009. I’m just focusing on getting people to my website in the coming months…and absorbing as much as I can learn from the experience.
I will let you know how it goes…I’m staying positive.
Thanks for the heads-up!
Check out my post in MARKETING - TRADE SHOW selling strategies
or my website if you feel inclined: http://www.rodrickny.com
October 19th, 2010 at 11:17 am
Great post. I am sure many people can benefit from your shared experience. It seems that in this economy, even more then before, you gotta be the best of the best.
From your presentation to your Exhibit itself. Buyers have too many options at trade shows and sellers are often too desperate for sales. That isn’t necessarily all bad. If you have a top notch display and your good at what you do, you can still turn sales. We just need to work a little bit harder and be better at what we do.
I feel strongly that when the economy gets back up and running…the companies that survived are gonna be positioned for unimaginable successes.
Dave
http://www.atlanticexhibits.com
http://www.capitalIRA.com