To Market, To Market

No matter how it's phrased, the changing market dynamic we've been calling the “new normal” for the past several market seasons is not so new anymore. It's now business as usual.

Earlier this year, Chris Collins, vice president and general manager, Merchandise Mart Properties Inc. (MMPI) said the company's tenants at 7West New York commented on the quality of buyers visiting the building during market. “As has been the trend in our business, the better retailers are buying more and less time is wasted with unqualified buyers,” he told Gifts & Dec.

But while the market paradigm has shifted in the past three or four years, the need for markets has barely wavered. Attendees buy nearly 50 percent of their annual inventory at markets, according to a survey conducted earlier this year by Tradeshow Week Custom Research for the Gift and Home Trade Association (GHTA). Apparently industry trade shows, whether regional or national, aren't going away any time soon, despite increasing numbers of retailers using the Internet to source product.

And while 93 percent of respondents to the GHTA survey said they attended shows to “find new vendors,” several other reasons for market attendance also rank high with attendees. For example, 86 percent of survey respondents said they went to market to “see products in person rather than reading catalog text descriptions,” and 80 percent said they attended markets to “keep up-to-date-on industry trends and issues.”

Industry attendance at markets this year appeared to validate their continued importance, according to owners and operators. During last summer's market, Michael Kessler, L.A. Mart vice president and general manager, said “We are very pleased with our traffic gains. The market was strong throughout the week, giving our showrooms and exhibitors a consistent, lucrative flow of new and expanded orders.”

He wasn't alone in his assessment of market attendance. “Our July market proved very strong across all measures: buying and selling, product mix and registered traffic,” said Jeffrey Portman, president of AMC Inc., parent company of AmericasMart Atlanta.

Vendor-retailer interaction is still highly valued by both sides — and it's an experience for which there is no comparable “virtual” replacement. The GHTA survey reported that on average, attendees spend 56 percent of their time at market “working with new vendors,” and 44 percent of their time with “existing vendors.” Of course, in-store one-on-one experiences with manufacturer's reps are also highly valued, but consistency in the number of rep groups exhibiting at markets attests to the continued importance and value of the market experience.

It's no wonder then that marts and show managers continue to add perceived value to their markets.

This year, AmercasMart in Atlanta, Merchandise Mart Properties in Chicago, the Dallas Market Center and the L.A. Mart, specifically, all pumped big bucks into enhancing their facilities, either by reorganization or by developing new attractions. Marts in other major U.S. cities also made investments in their buildings and shows in order to keep pace with continually evolving show seasons. The ongoing expansion at the World Market Center in Las Vegas makes that destination increasingly important to the gift and decorative accessories market. (Visit giftsanddec.com and click on “Gift Markets” in the tool bar for complete coverage of gift market activities. See also “Meet the Marts and Markets,” page 69.)

At the same time, show managers continue to invest in their market presence, both to keep pace with the changing marketplace dynamics, and to successfully compete in the increasingly competitive gift show business.

For example, in the coming market season George Little Management will introduce “Studio” at the New York International Gift Fair (NYIGF). This juried lifestyle division will showcase merchandise across all categories — from baby gear to pet accessories to stationery and home décor. The addition of the new format reflects the growing trend toward lifestyle marketing.

According to Dorothy Belshaw, NYIGF director and senior vice president of GLM, “Studio will present a selective collection of cross-category lifestyle merchandise defined by style and sophistication.”

The industry will likely continue to see diversification at markets, particularly in response to changing consumer demands. Earlier this year, Cindy Morris, Dallas Market Center's (DMC) chief operating officer, told Gifts & Dec that DMC is “developing a comprehensive new campaign” that included a new name for its markets. “Dallas,” she said, “Will now be known as the Total Home & Gift Market.”

In a trade as diverse and as enormous as is the gift business, where innovation and change are constant, markets remain as the industry's stanchion.