Stevens, PA January 19, 2005 — Ever since the Beanie Babies' collecting fad died, it's been a rough period for the collectibles industry that manufactures and markets new, as opposed to vintage, items for collecting. The collectibles industry, which as recently as 2000 reported sales of $7.1 billion, has declined by 45 percent to total only $3.9 billion in retail sales in 2003, according to a new consumer insights report from Unity Marketing, Home Report 2004. (www.unitymarketingonline.com)

"A whole confluence of factors played a part in the decline in the collectibles market. The industry was struck by changes in their traditional distribution model with small independent retailers folding in the wake of national retailers' growth," Pam Danziger, president of Unity Marketing and author of Let Them Eat Cake: Marketing Luxury to the Masses - as well as the Classes.

"Then eBay came along and opened up the market for anyone to trade in collectibles. The result? The idea that many collectors held that the collectible items they bought would someday become more valuable was proved wrong."

"But the real problem was that most marketers ignored the fact that consumer psychology was changing. People simply didn't want to collect that stuff any longer. Collections of figurines, die-cast cars, dolls and teddy bears which once looked so appealing decorating their home started to look like 'clutter.' People had simply had enough and started to pack away once beloved collections," Danziger explains.

Collectibles marketer Swarovski finds new opportunity in the luxury market
What's a company to do when its consumer market shifts out from under them? They can bar the doors, as once thriving industry leader Franklin Mint has virtually done. Or they can keep doing the same thing they have always done, but under greatly reduced circumstances, like Enesco Group or Boyds Collection.

Or they can change their entire business model to target a robust, new consumer market. International crystal collectibles marketer Swarovski saw the writing on the wall regarding the collectibles business. They recognized that adding another product line of animal figurines or ornaments wasn't the answer. Swarovski found a promising opportunity for growth in the luxury market.

Under family scion Nadja Swarovski's leadership, the company identified new in-demand applications for their traditional crystals - jewelry and 'bling-bling' to adorn fashion accessories and apparel. They then branded their fashion statements with hangtags that read authentic "Swarovski Crystals" to distinguish their crystals from the generic variety. Strategic public relations efforts have spread the word among the 'glitterati' who clamor for the luxury brands that decorate with Swarovski, including Dolce and Gabbana, Stuart Weitzman, Anne Klein and Zac Posen.

Swarovski's luxury strategy has been a huge success and today the company boasts world wide sales of $2 billion with 430 company stores reinforcing the luxury branding message.

Helping companies find new marketing directions
Unity offers consultation and consumer insight reports to help companies find new market opportunities in line with the consumers' desires and passions. Unity's consumer insight studies on the home, gifting, entertainment, jewelry and luxury markets, for example, provide data for marketing and strategic planning, while Unity's Luxury Tracking Study keeps marketers' fingers on the pulse of the luxury market (incomes $75,000 and above) every quarter by reporting what luxuries the affluent buy and how much they spend. Marketing consultation under Pam Danziger focuses on translating market analysis and consumer insight into strategic marketing plans for corporate growth.

"Unity Marketing's consultation helps companies see 'over the horizon' to predict and plan for future changes in the consumer market. Companies like Swarovski that succeed today have to be smarter than all the rest. They need to quantify and plan for the changes in how consumers shop and the products and brands they prefer. Companies need to predict new trends, new concepts, new moods that will take hold in the consumers' mind set. They need to get out in front of the consumers, anticipate their needs and desires and be ready with new products and new marketing ideas once the consumers get there. Unity provides research and advice to position companies for the future," says Danziger.

About the insights contained in the Home Report 2004
The consumer insights study, Home Report 2004: The Who, What, Where, How Much and Why of Home Furnishings Shopping (180 pages), provides details of a telephone survey among 1,000 home furnishing buyers. The results of the 2004 report are compared with comparable results from surveys in 2000, 2001 and 2003 providing a longitudinal perspective on the changes in the home furnishings market. The study provides industry sales and growth estimates for 20 home furnishings product categories and details of consumer purchase incidence, spending, and where they shop for each product category:

• Aromatherapy and/or scented household products, such as potpourri, steamers or sprays
  
• Art, including original art or prints, lithographs, posters and other art reproductions
  
• Baskets, boxes, vases, pots and other decorative holders
  
• Candles and/or candle accessories, such as candle holders
  
• Decorations, such as Christmas and/or other seasonal decorations including party decorations
  
• Collectibles
  
• Figurines and sculptures
  
• Florals and greenery, including dried flowers and wreaths, for indoor use
  
• Flowers, seeds, shrubs and trees for outdoor landscaping
  
• Furniture and occasional furniture, including mattresses and/or box springs, upholstered, case goods
  
• Garden equipment and decorative items for garden or patio
  
• Greeting cards and/or personal stationery
  
• Home textiles, including rugs, throws, pillows, table linens, bed linens, etc
  
• Household storage systems, containers, and other storage solutions
  
• Kitchenware and accessories, such as cooking utensils, pots and pans, and other housewares
  
• Lamps and accent lighting
  
• Picture frames
  
• Tabletop china, crystal, silver and/or casual dinnerware, glassware, flatware, including serving ware, bowls, and centerpieces
  
• Wall decor, such as sconces, mirrors, shelves, and tapestries
  
• Window coverings, blinds, curtains and other window treatments

Five Different Personalities of Home Shoppers Are Discovered
There are five different personalities or segments in the home furnishings market, but only two of five spend more than average on home goods. The report reveals insights into the psychology of selling to each of the five home shopper personalities, their turn ons and turn offs.

15 Key Findings Revealed and 9 Strategic Opportunities Explored
The research reveals 15 key findings of changes, shifts and movement in the home furnishings market. Nine strategic opportunities for home retailers and marketers to grow their sales and expand their share of market are included.

Added-Value Special Report: Luxury Shoppers Are the Home Marketers' 'Sweet Spot'
Luxury consumers (incomes $75,000 and above) lead in purchase incidence in 19 of 20 categories in the study and spend more than anyone else. Luxury consumers' average spending on home furnishings is 138 times more than the average. A special section of the Home Report focuses on the latest insights on the luxury home furnishings consumer, including eight things that every home marketer needs to know about the luxury consumer.

About Pam Danziger and Unity Marketing
Pamela N. Danziger is a nationally recognized expert specializing in consumer insights for luxury marketers, whether they sell luxury to the masses or the 'classes.' She is president of Unity Marketing, a marketing consulting firm she founded in 1992.

Advising such clients as Lenox, Cartier, Herend, Crystal Cruises, Spring Air, Sears, The World Gold Council, The Conference Board and American Express, Danziger taps consumer psychology to help clients navigate and master the changing luxury marketplace. She is the author of the recent book, Why People Buy Things They Don't Need: Understanding and Predicting Consumer Behavior (Chicago: Dearborn Trade Publishing, 2004). Her new book, Let Them Eat Cake: Marketing Luxury to the Masses-as well as the Classes, (Dearborn Trade Publishing, $27, hardcover) will be in book stores January 2005.

She has appeared on CNN's In the Money, NBC's Today Show, CNBC, CNN International, CNNfn, CBS News Sunday Morning, Fox News, NPR's Marketplace and is frequently called upon by the Wall Street Journal, New York Times, American Demographics, Women's Wear Daily, Forbes, USA Today, Associated Press, Los Angeles Times, Chicago Tribune for commentary and insight. Unity Marketing publishes market research and consumer insight studies on the luxury market, jewelry, garden, pet accessories, home furnishings, gifts and collectibles, greeting card and stationery, tabletop, art and wall décor markets, as well as the Luxury Business newsletter.

For media, Unity Marketing can make tables, charts and graphs available about the home furnishings market upon request.

Contact: Pam Danziger, 717-336-1600

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