Collectibles Industry Report 2002

1  Introduction & Study Methodology

2

2  Collectibles Market is Part of the Giftware Industry

4

Collectibles Market Overview

5

Leading Collectibles Marketers Sales Results, 2001

6

Collectible Sales by Distribution Channel

7

Collectibles Sales by Product Form

10

Limited Edition Share of Sales, 2001 - 1993

14

Top Collector Clubs

15

Collectibles Market Projected Sales, 2010-1996

16

3  About the Collector Market — Demographic Overview

17

Purchase Incidence Among Collecting Households

19

Collector Demographics — Generations

20

Collector Demographics — Age Distribution

22

Collector Demographics — Gender

23

Collector Demographics — Presence of Children in Home

24

Collector Demographics — Income

25

Collector Demographics — Number of Collectors

26

What Collectors Collect

27

Collector Club Membership

30

Spending on Collectibles in Past Year

31

Spending Through Auctions or Secondary Market

32

Where Collectors Shop

33

Collectors Use of the Internet

34

Attitudes About Collecting

35

Profiles of the Five Collector Clusters

38

4   About the Retail Market for Collectibles

40

Potential Retail Outlets for Collectibles

40

Geographic Distribution of Gift, Home Furnishings, Collectible Stores—Top 10 States

41

Number of Gift, Home Furnishing and Collectible Stores by State

42

Types of Stores that Sell Collectibles

44

Products Sold by Collectibles and Home Retailers

45

Collectibles Sold

46

General Gifts Sold

47

Home Decorative Accents Sold

48

Seasonal Decor Sold

49

Stationery Sold

50

Total Business Sales

51

Sales Trends, Percent Change and Projected 2002

52

Distribution of Store Sales by Quarter

53

Years in Operation

54

Number of Store Locations

55

Total Square Footage & Sales per Square Foot

56

Number of Store Employees

57

Total Operating Hours per Week

58

Retail Store Location

59

Typical Retail Customers, Male vs. Female

60

Typical Retail Customers, Adult vs. Child

61

Typical Retail Customers, Locals vs. Tourists

62

Inventory/Sales Ratio and Inventory Levels

63

Number of Product Lines Carried

64

Budget Invested in Advertising and Promotion

65

Trends in Advertising and Promotional Spending

66

Retailer Promotional Activities

67

How Retailers Market Their Stores

68

Internet and E-Commerce Use

69

Use of Internet for Ordering & Buying Product

70

Source of Product Information

71

Trade Shows as Top Source for Product Information

72

Profiles of Leading Retailers in the Collectibles Industry

73

A.C. Moore Arts & Crafts

74

CBRL Group

77

Federated Department Stores

80

Garden Ridge Corporation

82

Hallmark

83

Hobby Lobby Stores

84

JC Penney Company

85

Kohl’s

88

Michael’s Stores

91

Target Corporation

94

Tiffany & Co.

97

Tuesday Morning

100

Wal-Mart Stores

103

5  About Collectible Products

106

Products Manufactured by Collectibles Companies

106

Collectibles Manufactured

107

General Gifts Manufactured

108

Seasonal Decor Manufactured

109

Decorative Accents Manufactured

110

Stationery & Paper Products Manufactured

111

Other Products Manufactured

112

How Companies Position Products

113

Total Number of Products (SKUs) Offered

114

Number of New Products Introduced

115

Sales Attributed to Artist Licensed Products

116

Sales Attributed to Character or Property Licensed Products

117

Sales Attributed to Limited Edition Products

118

6  About Product Pricing

119

Retail Price Ranges for Collectibles

119

Pricing Trends

120

Manufacturer Markups to Wholesale Prices

121

7  About Collectibles Company Advertising and Promotion

122

Ad Expenditures

122

Trends in Advertising & Promotional Spending

123

Company Advertising Expenditure by Category

124

Use of Promotions & Dealer Incentives

125

Gift Marts and Consumer Shows

126

8  Typical Collectibles Company Profile

127

Total Sales, 2001-2000

127

Company Sales Trends, 2001-2000

128

Company Sales Change, 2002

129

Sales through Various Distribution Channels

130

Company Use of the Internet

131

Number of Retail Accounts Selling Products

132

Methods of Selling to Retailers

133

Number of Independent Sales Rep Organizations or Groups in Use

134

Company Owned Manufacturing Facility

135

Sales Attributed to Products Made in the United States

136

Sales Attributed to Products Manufactured in Foreign Countries

137

Sales Attributed to Products Exported to Foreign Countries

138

Leading Export Markets

139

Sponsorship of Loyalty Programs & Collector Clubs

140

Number of Years in Business

141

Number of Company Employees & Trends in Employment

142

9  Profiles of Leading Companies in the Collectibles Industry

143

Action Performance

144

Boyd’s Collection Ltd.

147

Brown-Forman

150

Department 56

152

Enesco

155

Hasbro

158

Jakks Pacific

162

Mattel

165

Media Arts Group

168

Middleton Doll Company

171

Racing Champions

174

Vermont Teddy Bear

178

Waterford Wedgwood

181

Zindart

184

10  About Trends in the Collectibles Industry

187

Company View of Significant Positive and Negative Trends

187

Retailer View of Significant Positive and Negative Trends

188

Trends Impacting the Collectibles Industry Now and in the Future

189

Trend #1:  Challenging Times Continue

190

Trend #2:  Collector Market Continues to Grow

191

Trend #3:  The Aging Population & Its Impact on Purchasing Behavior in the Collectibles Industry

192

Trend #4:  Demographic Shift:  Minority Majority

193

Trend #5:  The Collector Club Conundrum

194

Trend #6:  Rising Education Level Will Present New Challenges and Opportunities

195

Trend #7:  Link Product with Youth & Propel Brand to Next Generation

196

Trend #8:  Baby Boomers Will Be the Most Affluent and Indulgent Grandparent Generation

197

Trend #9:  Brands Will Become More Significant

198

Trend #10: Internet is a Means to Link with the Next Generation of Collectors

199

Trend #11: From the Frivolous to the Functional

200