Scrapbooks and catwalks put buzz in Hobby Show

DALLAS -- Craft and hobby supplies, a long-forgotten merchandise category for many mass retailers, has generated attention once again as a moneymaker due in large part to the hot growth of scrapbooking and increasing interest in crafting handmade items, whether for gifts, self-satisfaction or home decor.

The fast emergence of memory making or scrapbooking continues to create the most buzz in this industry. This estimated $2 billion niche is growing about 50% per year and is part of the greater $29 billion market for craft and hobby supplies.

Many retailers are expanding space for scrapbooking, including craft specialists, office supply superstores and discount chains. Numerous small scrapbooking stores have sprung up around the country, and leading craft retailer Michaels has even launched a new concept, Recollections, dedicated to this market.

"Scrapbooking has been good for the last few years. It's still a strong category," said Larry Fine, president of AC Moore. "We're conscious of changes in the business and will reallocate space as we see necessary in the category."

This hobby has now evolved into a broader paper crafting market that entails making gift cards and tags, journals and altered books, the latter of which involves using old books as a scrapbook format. Materials to decorate paper crafts are becoming increasingly elaborate, with textured embellishments that include beads, stickers, wire, eyelets, fibers and miniature gift tags among the hottest items.

Although variety is key in merchandising the category, some distinct trends are emerging. For example, vintage-look labels, papers and embellishments to create a collage effect are trendy right now, according to several suppliers. Also popular are primitive art effects, such as the new Eco Africa papercraft line from Provo Craft.

Companies dabbling in this category keep multiplying. At the recent Hobby Industry Association trade show in Dallas, several scrapbooking lines were launched, including a system targeting the beginner from television personality Leeza Gibbons and Xyron; a 150-SKU Kodak scrapbooking supply program from RoseArt; and a 150-SKU scrapbooking line called Paper, Rock, Scissors from Duncan.

Besides paper crafts, other growth segments in the craft industry now include yarn, jewelry making, kids' crafts and home decor projects such as faux finishing and mosaic projects, according to multiple vendors at the HIA show. Flat or declining in sales are supplies for fashion sewing, needlecraft and artificial floral.

"We're seeing a big surge in yarn sales," said Alyson Bell, vp of national accounts for Coats & Clark. "Large, chunky yarns and large needles are extremely popular."

Knitting and crocheting are in vogue once again, according to yarn suppliers. Big sellers are bulky textured or faux fur yarns used to make fashionable scarves. Some craft retailers have even seen triple-digit sales increases in yarn, David Blumenthal, president of Lion Brand Yarn, told DSN Retailing Today at the show.

In jewelry making, customers are showing greater interest in charms, words or phrases and upscale beads, such as crystals, said Joanne Allman, a representative for Darice. Fashion trends and licenses are driving interest in sewing-related crafts, such as a line of decorative trims from Wrights licensed to the "Trading Spaces" television show and snap-on charms for clothes or accessories from Prym Dritz.

Another trend affecting the craft industry is the so-called Red Hat Society social club that encourages women older than 50 to celebrate life by wearing red hats and purple clothing. Stickers, scrapbooking supplies and craft accessories celebrating the older female are already showing up in craft aisles as a hot category.

Crafts targeting children is another strong category, according to vendors. Dan Schafer, a sales representative for Craft House, said this segment has been growing 5% annually, with some of the latest products geared toward scrapbooking.

"It really had an explosion [in growth] the last couple of years, and the challenge is to come up with new stuff," said Schafer, with retailers demanding less costly craft kits under $10. Among new items from Craft House is a treasure box that is colored and then baked, while RoseArt has embraced the scrapbooking fad with a new line targeting tween girls, called Scrapfabulous, coming out this summer.

As has been the case for several years now, home decor trends continue to impact the growth of the hobby market. Projects using faux finish effects to redecorate walls or home accents are popular, including trendy antiqued or distressed effects.

Home accents adorned with miniature beads or feathers are also popular, and new products are coming out that make crafting such items even easier, such as Liquid Beadz from DecoArt. This product features miniature beads suspended in a glue base that can be brushed on craft projects. Another innovative item from DecoArt is Paper Perfect, a glue-like substance that is spread across a surface and then dries to resemble handmade paper; a definite crossover from the scrapbooking fad.