Rosemont Vendors to Sell Direct

The International Gift & Collectible Expo, running June 27–29 at the Donald E. Stephens Convention Center, Rosemont, Illinois, is making major changes, changes that will dramatically alter the atmosphere of the 29-year-old event. For the first time, the show will co-locate with three consumer shows — The Windy City Antique Show, SportsFest, and MidAmerica Coin Expo — all owned by parent company Krause Publications of Iola, Wisconsin.

Show producer Claude Chemiel said, "The coin show has been held in conjunction with the Gift & Collectible Expo for the last couple of years. It made sense to schedule the other events that we have on the same weekend to encourage as much crossover traffic as possible. It's a way to market different products to people who have some affinity with at least some component of those products. In this case, the need to collect."

The Gift & Collectible Expo is the only one of the four shows to have a pure trade component. Last year it cut back from two "retailer only days" to one, and has now cut even further, to four hours on June 27. Chemiel declined to say why, simply reiterating, "We needed to condense as much wholesale selling into as short a time as possible."

Karen Feil, managing director of the Chicago-based Gift & Collectibles Guild, speculated, "I think they've thrown up their hands at dealer attendance and don't expect much, so why have vendors sit around doing nothing?"

Retailer attendance has declined, perhaps because every year fewer manufacturers debut new products at the show. But scaling back may push the show toward losing its trade component altogether. "The show can no longer be the networking center for the industry," said Feil. "I can't do my annual meeting when nobody's there. I have to find a gift show to do it. I'm sure NALED [National Association of Limited Edition Dealers] has the same problem."

"We've never positioned this show as a wholesale buying show. It has always been about, by, and for collectors, even before we acquired it [from McRand International in 1998]," said Chemiel. "The retail part is, of course, very important, but there's just too many opportunities to buy [at the gift shows and marts]."

Still, Chemiel sees plenty of opportunities for retailers. In addition to sourcing product at the Expo, they can visit the other shows for products and props. He also cites attending NALED seminars, talking to suppliers, and observing what's popular among collectors. "Where else can a retailer have a focus group this size put together for the products they want to carry in their store?"

Probably the most controversial change is that the show will permit manufacturers to sell directly to collectors. These are not the first collectibles sold at the show. Besides the swap and sell component, the show's former producers introduced "event pieces" despite NALED's objections. Collectors clubs were permitted to sell membership kits, and the Guild distributed forms to vendors to take orders from consumers. The orders were passed on to local retailers to be processed, or sometimes fulfilled directly by the vendor, who passed on the retailer's share of the proceeds. When the industry split into two shows for one year (2001), the Guild-sponsored Collector's Fest offered a show shop that sold direct. Retailers, however, still received 30 percent of sales to their customers.

Now, Krause has broken with tradition and allowed manufacturers to sell directly to consumers from their booths for the first time. Krause's position is simple: This is what they need to do to keep the show going. Says Chemiel, "We absolutely cannot continue to do business as usual. A lot of these issues wouldn't exist if this industry were healthy. Our job is to maintain a viable, exciting event that's going to revitalize the enthusiasm of current collectors and inspire new collectors."

He continues, "The main consideration for the manufacturers is that this is an opportunity to defray some of the costs of exhibiting. This show has always been about building a customer base. It's viewed by our exhibitors as a marketing or promotional opportunity."

So far, the facts seem to bear him out: Krause has signed more exhibitors since the company announced the new policy, and anticipates having approximately 60 to 70 exhibitors occupying 150 to 175 booths at the show.

Retailers, however, may be less than pleased to find manufacturers not only competing with them through direct mail, the Internet, and manufacturer-owned stores, but now through the Collectible Expo as well. Chemiel says he's received only five complaints from retailers so far, but admits that it's a difficult point for retailers to accept.

In making the changes, Chemiel says Krause yielded to the persuasions of manufacturers. But which manufacturers? Not the Guild's members, according to Feil, who says, "For 25 years we stood against selling from booths at the shows. It makes it feel like a flea market. It gives the retailers no incentive to send their customers to the show." The Guild, she says, told Krause it should find a way to cut the retailers in on the sales. The suggestion was rejected.

NALED also disagrees with Krause's decision. "We've always been opposed to any selling at these shows," said John Bocchino, president of the association. "We want to protect the retailers' interest and not encourage vendors to compete with the same people they want to buy their products. We're still endorsing the show, but we let Krause know how we feel."

Bocchino says he hopes to use the organization's continued affiliation with the Expo to convince vendors who have not yet decided to sell direct not to do so. NALED will also be on the spot to observe firsthand what effects these changes have, including whether merchandise is sold at suggested retail or at a discount.

While NALED has not committed to sponsoring any further International Gift & Collectible Expos, Bocchino remains hopeful that these issues can be resolved. He says he understands the pressures that led Krause to make the decision it did. He even cited a reason Chemiel hadn't, that the other three concurrent shows, which do allow direct selling, will create expectations in the consumers who are attending.

The Guild is less sanguine. While it will exhibit at the Expo, sharing a booth with the Collectors Information Bureau, Feil noted that only one Guild board member (Enesco) and six Guild members will be exhibiting. And she raises yet another issue: "Allowing Enesco to bus collectors from the show to their corporate showroom [in nearby Itasca] was a factor for some of the board members who decided not to exhibit at the show this year."

Still, Feil hasn't given up hope. "Things change, sometimes for good reason," she said. "We're very much in a transitional period. We'll just have to see what happens."