Collectibles at a Crossroads

It's no secret that the collectibles industry is facing tough times. Among the reasons for its sclerotic condition are a lack of exciting product introductions; a younger generation that isn't turned on by collecting limited-edition pieces; and the Internet phenomenon known as eBay, which has generated great consumer interest in vintage collectible items.

Among the symptoms of a troubled industry, the Franklin Mint announced last November that it would dismiss two-thirds of its workforce and refocus its collectibles business on die-cast cars and airplanes.

"It's the death of every company that's out there saying 'We're in the collectibles business,' " commented Pam Danziger, founder of Unity Marketing, a company that began by researching the collectibles industry. "The Franklin Mint didn't see the maturing of its market. It didn't see that young people don't want this stuff."

Those are fighting words to the National Association of Limited Edition Dealers (NALED) and its president, Helen Yanek, who faxed Gifts & Decorative Accessories a response to Danziger's statement.

"We feel it is imperative that we raise our voice in protest and concern over Unity Marketing's press release purporting the 'end of collectibles'…" said Yanek. "[The statement is] an injustice to this multi-billion dollar industry, to the thousands of retailers who market the products produced, and the millions of consumers who still support the brands they know through purchases — all unaware that they are 'dead.'

"Despite the economic downturn in our nation, the rise in unemployment, and other ills, the industry has risen to the challenge with new line expansions, better margins for retailers, and development of more functional products that combine beauty and creativity with usefulness.

"Is Unity Marketing no longer dedicated to making its research and reports a positive, strengthening force in the industry? … A negative attitude has always been a self-fulfilling prophecy — particularly in sales and marketing. We will not allow that to happen," Yanek concluded.

Responding to Yanek's statements, Danziger said, "My personal commitment to the collectibles industry is strong and enduring. The research [Unity Marketing] just completed on the gifting market is the most important piece of research for the future of the industry I can contribute.

"The secret is simple: we must align ourselves with the desire of our customers and consumers. If they don't want what we are selling … then we'd better change, and change fast, if we want to stay in business. So let's stop fighting amongst ourselves and get on with the real work of reconnecting with the marketplace."

A couple of other recent developments suggest that change is coming to the collectibles business. First, Krause Publications, organizers of the International Gift & Collectible Expo, announced that the show is taking a one-year hiatus, and won't be held in 2004. "Ongoing softness at the wholesale and consumer levels … plus radical changes now going on in the traditional marketing channels, make it difficult for manufacturers," said the show's producer, Claude Chmiel.

Secondly, last month eBay launched its Exclusives Program, a pilot program offering collectibles product from Goebel, Enesco, Disney, and Fenton Art Glass. EBay says the program promotes collectibles brands by exposing them to 86 million registered eBay users, and provides for cross-channel promotions such as coupons redeemable at retail stores. "The promotion helped Enesco reach a broader audience … ," said Enesco chief executive Dan DalleMolle. "And the [coupon] drove traffic to our traditional retail stores."

The urge to collect will never be "dead." After all, it's practically a part of every American's genetic code. The challenge the industry now faces is finding a way to stimulate that urge by reaching out to consumers with the right product in the right retailing environment.