Atlanta Market Report — Part 2

Maria Weiskott, Caroline Kennedy, Meredith Schwartz and Bessie Nestoras -- Gifts & Decorative Accessories, 1/19/2006 3:16:00 PM

ATLANTA: Trend-spotting

The coastal theme continues to be a strong look for 2006, as the motif was seen in a number of showrooms, including Manual Woodworkers and Weavers, Zodax, Midwest, Pacific Enterprise and Mud Pie.

"Home fragrance is trending upward until 2009, even though scented candles are kind of flat," was the forecast from Scott Kenner of Pearlessence.

Zodax’s John Amiri said: “This time last year, we were wondering if it was a viable position; this year we don’t have enough production time. It’s busy working two shifts,” at the company’s candle factory in San Fernando Valley, CA.

Speaking of scents, we hear from La-Tee-Da! founder Lowell Newman that his company’s effusion lamps are also trending upward. In fact, the company, which Newman says originated the current trend, is producing some 40,000 units daily. For the effusion-challenged: the technology has been around for centuries, and was used in the 1880s in hospitals to rid the air of unpleasant odors.

And we did notice quite a few other companies offering effusion lamps at the show, so it is likely there’s an upward trend going on.

After all, where there are “duplications of effort,” there is usually a trend.

Speaking of duplications of effort, Gel Gems has discovered a unique way of handling knock-offs of its incredibly popular product. Gel Gems has knocked itself off with a “dumbed down” version (so to speak) that the company sells to the discounters. “Hey, if you don’t knock yourself off, somebody else will,” quipped Sarah Bjelland, regional sales manager for Design Ideas, another of the company’s line.

Bjelland told Gifts & Decorative Accessories the company can’t even forecast where the market for Gel Gems is going, because the product is so hot. The company’s Design Ideas line is also pretty hot—and “green” too, as some of the line’s products use recycled materials.

Speaking of design, In the market’s High Design section, the Savannah College of Art and Design premiered a product line of contemporary decorative home accessories designed in the classroom. Founded in 2003, Working Class Studio is a product development venture in which the studio manufactures a line of modern home accessories and lifestyle products created by the college’s emerging artists. This transition from classroom to market was three years in the making.

It’s Christmas 24/7. Crazy Mountain tells us that since the company’s initiation of holiday, every day, other companies have climbed on the bandwagon—and that was obvious, as showroom after showroom we visited offered an abundance of Christmas product.

Here are some of the Christmas “looks” we spotted, among others:

• Lots of copper, especially with beads
• Some turquoise
• A lot of silver, crystal, rhinestone, ice
• Black and white, or just black
• Yellowy, mossy greens that were paired with red last year continue to be strong
• Flocked-velvet accents appearing on glass ball ornaments.

ATLANTA: The Legends

There can’t be a gift show anywhere without Russ Berrie’s name coming up, and Atlanta was no exception with many noting how they had come through the “Russ Berrie training camp.”

Crazy Mountain’s Syd Aronson quipped that if a reunion of former Russ Berrie employees was held at market, the buildings would empty out fast!

Kurt Adler kicked off its 60th anniversary year with a champagne and sherbet party Saturday evening in its Building 1 showroom. Chief executive Cliff Adler, son of the founder, held his glass high and asked all present to join in a toast to 60 years of success, and more for the future. Buyers, executives, sales reps and invited guests all joined enthusiastically. The celebrating will continue this coming weekend at the Dallas International Gift & Home Accessories Market.

In other Kurt Adler news, the company is looking for new New York digs for its showroom headquarters. Its current location is part of the International Toy Center, and like the neighboring building, 200 Fifth Avenue, the Toy Center will be converting to condos. The company wants to remain in Manhattan, and hopes to relocate somewhere near 34th Street area, convenient to Javits Center, transportation, and other area showrooms.

ATLANTA: What They Said

Larry Fraga of Larry Fraga Designs, a glass Christmas ornament vendor, told G&DA that his company's business was up 62 percent last year, and would have been higher had he not run out of inventory. During market, he sold to Saks, Barney's and Bloomingdale's, as well as Roger's Gardens. He’s hoping to add one more showroom to his Atlanta space as room becomes available.

Fraga also received a rare personal visit from fellow ornamenteer (Hey, look at us! We just might have just coined a new word: ornamenteer.) and exhibitor Christopher Radko. Rumor on the show floor is that Radko's once mighty brand is suffering, as backlash from distributing through QVC and big box discounters eats away at his specialty base and collector's cachet.

Eric Cortina, who has had limited distribution in Southern California, entered the national market for the first time at the Atlanta show, debuting an unusual collection of original Christmas ornaments—from Roman ruins to Santa's boots upside down in a chimney—in building 1, showroom 20-E-6.

Esscentual Brands, manufacturers of the Vitabath and Claire Burke lines of personal care products, opened their first showroom at AmericasMart (in the Gift Mart) just in time for the show. They were offering a new fixture program that provides a free, branded display piece to retailers purchasing a certain amount of product.

Burton + Burton and Pacific Rim both report increasing the home textiles offerings in their holiday collections following strong customer response. Is this a trend to watch?

Customs and quotas are presenting a challenge to importing vendors. One vendor in the new Boutique section of the temps was disappointed not to be able to showcase her new styles at the show. Why? Her samples were held up at U.S. Customs, and the instability of the region from which she manufactures also contributed to the delays. She’s hopeful that the samples will be released in time for the New York International Gift Fair later this month.

This discussion was overheard by the vendor in the booth next door, who chimed in with her own tale of woe. By the time her new lines were ready to ship from China, import quotas had been filled, and she was subject to significant extra duty. “If I’d known that it was going to cost me so much more to get my product,” she complained, “I would have told them to hold onto it and not ship it until after January 1, so I wouldn’t be penalized the extra costs.”

Heard on the elevator …

“What are you looking for on three?” a buyer asks her companion as they get off the very crowded elevator in Building 1. “Hopefully, an escalator down!” he replies.

ATLANTA: The Retailers

Capping off the weekend buying spree, CBK and Midwest hosted a special customer retail forum high above the crowds in the Fashion Theater in the Penthouse of the Apparel Mart. The presentation “Creative Retailing Building for the Future,” featured TV personality and retailer, Michael Moloney of Extreme Makeover: Home Edition and Mary Liz Curtin, retailer and author of A Shopkeeper’s Manual.

We met with Curtin first, as she was making some final adjustments to the visuals in her presentation. “I’m calling this the ‘The Year of the Customer,’” she said. “I advise retailers to ‘Sell unto your customer as you would be sold unto’!” She advises that retailers think about their own shopping experiences, and incorporate practices that made them feel good as customers. In addition, be alert for that which was bad, and make sure that you’re not guilty of it.

“Call your own store,” Curtin also suggests, “And put yourself in your own voice-mail hell [if you have such a system]!” Listen to what your customer is experiencing when s/he calls you.

Michael Moloney was warm, enthusiastic, and down-to-earth, like most of the retailers we met. He observed that “our stores are going through a metamorphosis,” reflecting on the challenges of today’s retail environment, and how stores need to adjust to it.

“But I found more here [at the Atlanta market] than I thought I would. This show is booming!” Moloney enthused. “I’ve been away from the market for a while because of the [TV] show, and I’m amazed at the selection, quality, and variety of things that are here … And at great prices!”

OneCoast is selling The Absolutely Essential Guide to Planning fabulous Retail Events by Lynni Megginson, owner of L&M Designs, a home decor and interior design store in North Potomac, MD. Experiencing firsthand the challenges of competing with multi-store “big box” retailers, Megginson created a comprehensive program to share her strategies on how independent retailers can compete and grow sales through store events.

“There’s no doubt in my mind that retailers who want to succeed in today’s fickle economy must have a few tricks up their sleeves. Hosting retail events is the single most effective way a retailer can generate sales and excitement about their stores on a regular basis,” said Megginson.

NEXT STOPS: Dallas, Chicago, Los Angeles