Craft and design marketing in Europe

International survey on craft and design product and service marketing

Design Craft

Craft and Design Marketing in Europe

Pictures: Craft entrepreneur Sami Rinne and PUPU-coffee, Lepakko-coffee cups. Taito business advisor Tuula Nieminen and craft entrepreneur Tuula Laukka. Craft entrepreneur Marja Pulkkinen-Jukkara and Taito business advisor Asta Mikonsaari. Heart charms, Gallery Tuula Laukka Photographer Tomi Aho Text: Chapters 2–7 Taina Tervonen Chapter 8 Marketta Luutonen. Layout: Cover / Samuli Kemppi, Vire Oy. Content / Johanna Aydemir. © The Finnish Crafts Organization This international survey was conducted in 2007 as part of the Taito Marketing project with support from the Ministry of Employment and the Economy and the European Social Fund.

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Craft and Design Marketing in Europe

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Contents 1 Foreword .................................................................................................................................................... 3  2 Introduction ............................................................................................................................................... 4  3 Target group of the survey, implementation method .......................................................................... 5  4 Craft and design products and service marketing ................................................................................ 6  5 Development measures and studies related to the field .................................................................... 19  6 Basic information on the respondent’s organisation and field........................................................ 23  7 Company services offered by your organisation ................................................................................ 26  8 Hand-created marketing ......................................................................................................................... 29  Research data in the surveys........................................................................................ 30  Products for individual outfits and home decoration ............................................. 31  Participation, experiences and learning ..................................................................... 33  Own workshops and fairs............................................................................................ 33  Specialist shops as craft retailers ................................................................................. 34  Challenges in know-how and marketing ................................................................... 35  Best marketing methods .............................................................................................. 36  Hand-crafted message to consumers electronically ................................................. 37  Inventive marketing ...................................................................................................... 37  Marketing from person to person .............................................................................. 39  In conclusion .................................................................................................................40  Sources ........................................................................................................................... 42  APPENDIX 1 / Respondents ................................................................................................................. 43  APPENDIX 2 / Questionnaire form ..................................................................................................... 44  APPENDIX 3 / Press release .................................................................................................................. 52 

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Craft and Design Marketing in Europe

1 Foreword One of the key tasks of the Finnish Crafts Organization Taito is to enhance the operational conditions of professionals in the craft and design branch. Regional crafts associations work on the grass-roots level with craft and design professionals and provide services such as business advice, training and consulting, organising exhibitions and maintaining a marketing network. The Finnish Crafts Organization Taito develops services by implementing development projects and conducting surveys and studies. Development activities have been carried out since the early 1980s with the Ministry of Trade and Industry within the framework of extensive development programmes and smaller projects, and by conducting surveys and studies and disseminating information through training and publications. Studies have focused on the state of the craft and design branch, the size of the branch, success factors, new opportunities and development targets. The success of a company is decided by a good product, but many other things are also necessary. The purpose of marketing is to inform consumers about the products so that they sell. Small companies have limited opportunities to invest in marketing, therefore it is particularly important to think about the best marketing methods. Craft and design products are an interesting and challenging target from the point of view of sales and marketing. The products are individual and unique, and strongly linked to their maker. The craft and design branch not only sells concrete products but also a connection with the maker and his or her skills. Customers compare the products with industrial products intended for the same use and weigh up whether the price asked corresponds to the added value they get. This report contains the results of a survey that targeted players in the European craft and design branch, as well as some comments and ideas for further development. We would like to thank everyone who responded to the surveys and helped to carry them out, as well as the bodies that funded the work. They all made it possible to collect much useful information, which we are now able to make available to entrepreneurs, development bodies and other players in the field. Helsinki, on the first day of spring 2008 The Finnish Crafts Organization Taito Marketta Luutonen Managing Director

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Taina Tervonen Project Manager

Craft and Design Marketing in Europe

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2 Introduction This survey is part of the planning and execution process of the 2007–2015 development plan of the Finnish Crafts Organization. The development programme is based on the Ministry of Trade and Industry’s Development Strategy for Entrepreneurship in the Crafts Industry 2006–2015. The aim of the questionnaire is to provide information on how craft and design products are marketed in Europe at the moment, what changes or needs for changes are evident and what viable forms of marketing might be available in the future. The Web survey was conducted between 3 September and 27 December, 2007, by means of the Digium ® system. The topic areas included were: 1. Craft and design products and service marketing 2. Development measures and studies related to the field 3. Basic information on the respondent’s organisation and field 4. Company services offered by your organisation This report presents the key findings of the survey. The answers show that: • The most important craft and design products sold in domestic market in Europe are Homeware products (bought for personal use) and Jewellery. • The most important craft and design services in domestic market in Europe are courses (summer courses, introductory courses, etc). • The key sales channels are specialist shops for craft and design products, sales manufacturer’s own shops/workshops and domestic fairs and events. • The craft and design companies have a great need or extremely great need (86%) for a renewed product selection. • The craft and design companies have a great need or extremely great need (70%) for a renewed service selection. • The entrepreneurs in Europe in the field master very well or well (71%) the quality of products and/or services. The entrepreneurs in Europe in the field master a little or not at all (57%) product and service development. • The craft and design companies would have an extremely great need for marketing training: 93% Identification of new market areas and customer groups and marketing planning and 86% Company image development. • 13 organisations are interested in international co-operation. Craft and design organisations are interested in co-operation in international development projects. • The organisations business services are: 100% Consultation, 85% Publications, 69% Training, courses and Online services (information and/or marketing services). The Web survey was conducted as part of the Taito marketing -project by The Finnish Crafts Organization Taito. Lifti Oy and Fosta Oy provided valuable help with the survey form. The 4

Craft and Design Marketing in Europe

materials of the survey were assembled by the project manager, Ms. Taina Tervonen. The results of this survey as compared to those of corresponding domestic marketing surveys were assessed by the executive manager, Ms. Marketta Luutonen, of The Finnish Crafts Organization Taito (see chapter Hand-crafted marketing).

3 Target group of the survey, implementation method Several sources were utilised in planning the survey: previous studies conducted by The Finnish Crafts Organization Taito, the Taito Craftnet project (2004–2007) final report, Taito Marketing survey and the study by Crafts of Council Ireland titled The Irish Consumer Market Quantitative Research 2006. The contents of the international survey were planned by Jaana Vehkasalo and Taina Tervonen, both from The Finnish Crafts Organization. Improvement proposals for the survey were presented by Kristiina Soini-Salomaa and Kirsti Kesälä-Lundahl, from The Finnish Crafts Organization, and Marketta Luutonen, from the University of Joensuu. The international survey included five questions that were included in the Taito Marketing survey as well (a joint marketing survey by Finnish crafts and design entrepreneurs in August 2007). 1) Products and services 2) Marketing channels 3) Renewal of the product and service portfolio 4) Managing the product's uniqueness, quality, production, R&D and customer-orientedness 5) Marketing training needs of entrepreneurs In addition, question number 3.1 What are the most important craft and design products sold in your domestic market from the international survey was modelled on the basis of a product categorisation by The Crafts Council of Ireland. The survey form was distributed by mail, by e-mail and by Digium survey software. The target group for the Web survey was the European crafts and design organisations promoting entrepreneurship. Most of the respondents are involved in the European Folk Art and Craft Federation, in Nordic Crafts organisation and in the World Crafts Council. Invitations to participate in the Web survey were sent to 23 European arts and crafts organisations in 20 countries. 14 organisations in 13 countries sent in their replies to this international survey. Information on the arts and crafts organisations that provided replies is available in Appendix 1 (Appendix 1 Respondents). The results are presented per question in forms of charts and text. In addition, the answers from the Nordic countries (Sweden, Norway, Iceland and Finland) are studied separately. Charts 3–10 do not show the neutral answers "on average" and "cannot say". Because of this, the sum % of

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Craft and Design Marketing in Europe

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the bars in the charts is not 100%. In addition, there is a report provided with the answers to all of the open questions. The answers to the questions on product and service marketing are presented in chapter 4. The answers to development measures and studies related to the field are reported in chapter 5. The answers relating to the respondent's organisation are presented in chapter 6. Chapter 7 deals with the company services offered by the responding organisation. At the end of the report (chapter 8), there are comments on the results. The Irish respondent was Truepotential, the expert organisation in charge of the Crafts of Council Ireland study The Irish Consumer Market - Quantitative Research. This report includes in-depth information on the greatest marketing challenges to Irish crafts and design entrepreneurs and the Crafts of Council development measures published in the Strategic Plan for the period 2007-2009 (pages 10-11, 20, 22).

4 Craft and design products and service marketing Homeware (pottery, home textiles, etc., bought for personal use)

71 %

Jewellery (pendants, rings, bracelets, etc.)

57 %

Gifware (bowls, silverware, etc., bough as a gift)

43 %

Other (folk costumes, material, folkart, woo den gates, village furniture)

29 %

Fashion (comtemporary, special occacion clothing)

21 %

Accessories (belts, bags, scarves, etc.)

21 %

Furniture (tables, lamps, chairs, etc.)

14 %

Figure 1: What are the most important craft and design products sold in your domestic market? The most important craft and design products sold in the domestic markets are: 71% homeware, 57% jewellery, 43% giftware, 29% folk costumes, material, folkart, wooden gates, books and 21% fashion and accessories and 14% furniture. Homeware is the most important of the craft and design products sold in the domestic markets of Ireland, Hungary, Slovakia, Norway, Iceland, Estonia, Finland, Spain and Russia. Jewellery is the most important of the craft and design products sold in the domestic markets of France, Spain, Scotland, Hungary, Norway and Iceland.

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Craft and Design Marketing in Europe

The most important craft and design products In Sweden, Norway, Iceland and Finland:

In other European countries:

• Homeware 75% • Giftware, Jewellery, Fashion and others1 50%

• Homeware 70% • Jewellery 60% • Giftware 40%

Courses (summer courses, introductory courses, etc.)

85 %

Experience services for cultural tourism (work demonstrations, etc.)

38 %

31 %

Workshop services

Welfare services (workshops for special groups, etc.)

Guided tours introducing the entrepreneur’s workshop

Other: fairs

15 %

8%

8%

Figure 2: What are the most important craft and design services sold in your domestic market? The most important craft and design services in the domestic markets are: 85% courses, 38% experience services for cultural tourism, 31% workshop services, 15% welfare services, 8% guided tours introducing the entrepreneur’s workshop and fairs. Courses are the most important craft and design services in Scotland, Ireland, Hungary, Slovakia, Sweden, Norway, Estonia, Finland and Spain. Experience services for cultural tourism are the most important craft and design services in Scotland, Hungary, Norway and France.

The most important craft and design services In Sweden, Norway, Iceland and Finland:

• •

1

Courses 75% Workshop 50%

In other European countries:

• Courses 88.89% • Experience services for cultural tourism 44.44% • Welfare services 22.22%

Other: ceramics, wooden gates, fences, house decoration - village furniture, folkart, folk costumes, knitwear, material as yarn, books).

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Craft and Design Marketing in Europe

TAITOMARKKINOINTI-SELVITYS The importance of different direct sales channels

Sales at manufacturer´s own shop/workshop

79 %

Domestic fairs and events

79 %

International fair and events

21 %

Domestic contacts and orders received via the Internet

21 %

Online shop for domestic customers

7%

14 %

57 %

36 %

71 %

14 %

Online shop for international customers

71 %

very important or quite important

not at all used or minor meaning

Figure 3: The importance of different direct sales channels

The most important direct sales channels for company’s craft and design products are: 79% sales at the manufacturer’s own shop or workshop and domestic fairs and events, 21% international fairs and events and domestic contacts and orders received via the Internet, 14% online shop catering for domestic customers. 71% of the respondents are of the opinion that an online shop for international customers is of little or no significance.

The most important different sales channels In Sweden, Norway, Iceland and Finland:

In other European countries:

• domestic fairs and events 100% (very important 75%, important 25%) • sales at the manufacturer’s own shop or workshop 100% (very important 25%, important 75%)

• domestic fairs and events 70% (very important 40%, important 30%) • sales at the manufacturer’s own shop or workshop 70% (very important 30%, important 40%)

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Craft and Design Marketing in Europe

Direct business to business sales are important sales channels In Sweden, Norway, Iceland and Finland, direct business to business sales are seen as more important than in other European countries. • In Sweden, Norway, Iceland and Finland, 100% (very important 50%, important 50%) • In other European countries, 60% (very important 20%, important 40%)

Domestic retail distribution

Specialist shops for craft and design product

93 %

Tourist businesses, tourist shop

62 %

Gift shops

61 %

Jewellery shops

28 %

Galleries

28 %

Retail via the Internet

21 %

16 %

50 %

Museum shops

Department stores

0%

17 %

14 %

28 %

43 %

21 %

58 %

85 %

very important or quite important

not at all used or minor meaning

Figure 4: Domestic retail distribution The most important domestic retail sales channels for company’s craft and design products are: 93% specialist shops for craft and design products 62% tourist businesses, tourist shops 61% gift shops 50% jewellery shops 30% museum shops 28% galleries 17% department stores and 14% retail via the Internet.

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Craft and Design Marketing in Europe

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The most important domestic retail sales channels are In other European countries:

In Sweden, Norway, Iceland and Finland:

• Specialist shops for craft and design products 100% (very important 75%, important 25%) • Museum shops 50% (very important 25%, important 25%) • Domestic contacts and orders received via the Internet 50% (very important 25%, important 25%) • Tourist businesses, tourist shops 33% (important 33%) • Gift shops 33% (important 33%) • International contacts and orders received via the Internet 25% (important 25%)

• Specialist shops for craft and design products 90% (very important 50%, important 40%) • Gift shops 70% (very important 30%, important 40%) • Tourist businesses, tourist shops 70% (important 70%) • Museum shops 20% (important 20%) • Domestic contacts and orders received via the Internet 10% (important 10%) • International contacts and orders received via the Internet 10% (important 10%)

Specialist shops for craft and design product

93 %

Sales at manufacturer´s own shop/workshop

79 %

Domestic fairs and events

79 %

Tourist businesses, tourist shop

62 %

Gift shops

61 %

14 % 7% 21 % 16 %

50 %

Jewellery shops International retail distribution

Online shop for domestic customers

7%

72 %

Direct business to business

International fairs

0%

28 %

36 %

50 %

21 %

57 %

14 %

71 % well or very well

a little or not at all

Figure 5: The most important sales channels The most important sales channels for company’s craft and design products are: 93% specialist shops for craft and design products 79% sales at the manufacturer’s own shop or workshop and domestic fairs and events 72% direct business to business 62% tourist businesses, tourist shops 61% gift shops 50% jewellery shops 36% international retail distribution 21% international fairs and domestic galleries and 14% online shop for domestic customers. 10

Craft and Design Marketing in Europe

The greatest challenges in marketing craft and design products and services currently are: Art & Craft Sector Development Knowledge of practitioners and their ability to identify Project, Dumfries & Galloway target markets and undertake research alongside their Council, Scotland creative practice. True Potential, Ireland Access to mainstream retail channels Crafts Council of Ireland

At the consumer and retail level, craft is becoming less relevant. The Crafts Council of Ireland’s research shows that consumers and retailers do not always identify these attributes with Irish crafts – there is a perception that crafts have failed to keep up pace with Irish tastes, habits and lifestyle. Craftsmen need to understand their target markets better. The need to improve access for customers who are ”cashrich but time-poor”, option for Irish and international markets. Irish craft enterprises operate in a high-cost environment and many find it difficult to make and sell products at a price that is attractive to potential purchasers (Strategic Plan for the period 2007– 2009).2

Norwegian Folk art and Craft Association The Hungarian Heritage House

Lack of money and competence within the business.

Association of Hungarian Folk Artists ULUV - The Centre for Folk Art Production Svenska Hemslöjdsföreningarnas Riksförbund/Svensk Slöjd AB SEMA / Societe d'Encouragement aux Métiers d'Aty Asociación de Creadores Textiles de Madrid

Estonian Folk Art and Craft Union The Finnish Crafts Organization

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Building an adequate PR and marketing net on the domestic and international market To get museums and galleries to sell craft products. To open more shops specialised in selling craftsmen's products. To improve Internet presence. Distinctive, original product, trademark building in direct sales and domestic retail distribution. Own Internet shop. Internet Lack of innovation. Lack of knowledge about consumers’ tastes and habits. Wrong potential buyers targeted. Product development and Advertising campaigns Entrepreneurs: Identify new market areas and customer groups. Buyers: Finding new, innovative products of high quality.

Strategic Plan for the period 2007 – 2009. The Craft Council of Ireland 2006. http://www.ccoi.ie/content/view/277/187/

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Craft and Design Marketing in Europe

TAITOMARKKINOINTI-SELVITYS Companies’ needs for a renewed product selection

86 %

international organisations

buyers in Finland

67 %

Taito business consultants in Finland

7%

0%

80 %

great need or extremely great need

0%

some need or no need at all

Figure 6: Companies’ needs for renewed product selection

The general demand for craft and design entrepreneurs to develop and renew their product selection is in extremely great need or great need (86%). In Finland, in Taito Business, advisors opinion are that craft and design entrepreneurs have an extremely great need or great need (80%) to develop and renew their product selection. The crafts and design organisations in Sweden, Norway, Iceland and Finland answered: Companies have a great need (100%) to renew the product selection. Crafts and design organisations elsewhere in Europe answered: Companies have an extremely great need (30%) and great need (50%) to renew their product selection.

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Craft and Design Marketing in Europe

What kind of products and services do you think are lacking in the market, in the development of which you would like to invest in the future? The Hungarian Heritage House Furniture

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Association of Hungarian Folk Artists

Countrywide Internet shop network. International presence both at fairs and netshops.

ULUV - The Centre for Folk Art Production

Home textiles, gifts with original designs and ethnological value, individual craft courses

Kuratorium Österreichishes Heimatwerk

Well designed tourist items and textiles

Norwegian Folk art and Craft Association

Modern products of high quality in all materials

Svenska Hemslöjdsföreingarna Riksförbund/Svensk Slöjd AB Asociación de Creadores Textiles de Madrid

Folkart with storytellers

Truepoteal, Ireland

Innovative + leading edge design at competitive prices

Estonian Folk Art and Craft Union

Garments designed on the basis of folk costumes.

The Finnish Craft Organization

Economical products of high quality for travel, for example, and high-quality services for travel and well-being.

Products for modern life following contemporary main trends. Tourist itineraries that integrate crafts alongside the rest of the cultural offers that a territory has to offer visitors. Workshops / Demonstrations for general public to disseminate knowledge about the peculiarities of crafts.

Craft and Design Marketing in Europe

TAITOMARKKINOINTI-SELVITYS Companies’ needs for a renewed service provision

70 %

international organisations

buyers

Taito business consultants and project managers

16 %

7%

47 %

66 %

great need or extremely great need

13 %

no need at all or some need

Figure 7: Companies’ needs for a renewed service provision

The general demand for craft and design entrepreneurs to renew their service provision are in extremely great need or great need (70%). In Finland, in Taito Business, advisors’ opinions are that craft and design entrepreneurs have an extremely great need or great need (66%) to renew their service provision. The crafts and design organisations in Sweden, Norway, Iceland and Finland answered: Companies have a great need (75%) to develop and renew their service provision. Crafts and design organisations elsewhere in Europe answered: Companies have an extremely great need (11%) and great need (56%) to develop and renew their service provision.

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Craft and Design Marketing in Europe

How well do you think the entrepreneurs in the field master the following

Quality of products and/or services

0%

71 %

Consistency in the quality of products and/or services

7%

57 %

Originality of products and/or services

43 %

50 %

Production (capacity)/product availability

36 %

21 %

Customer-orientedness and identification of varoius customer groups

8%

Product and service development

7%

39 %

57 % well or very well

a little or not at all

Figure 8: How well do you think the entrepreneurs in the field master the following?

The entrepreneurs in Europe in the field master very well or well: 71% quality of products and/or services, 57% consistency in the quality of products and/or services, 50% originality of products and/or services. The entrepreneurs in Europe in the field master a little or not at all: 36% production (capacity)/product availability , 39% customer-orientedness and identification of various customer groups , 43% originality of products and/or services and 57% product and service development. The crafts and design organisations in Sweden, Norway, Iceland and Finland believe companies lack know-how in customer-orientedness, identification of customer groups, R&D and service development. The crafts and design organisations elsewhere in Europe believe companies have the greatest lack of know-how in R&D and service development and production. The crafts and design organisations in Sweden, Norway, Iceland and Finland answered: - Quality of products and/or services: well 75% – moderately 25% - Originality of products and/or services: well 75% – a little 25% - Consistency in the quality of products and/or services: well 25% – moderately 50% - Production (capacity)/product availability: well 25% – moderately 50% – a little 25% - Product and service development: well 25% – moderately 25% – a little 50% 15

Craft and Design Marketing in Europe

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-

Customer-orientedness and identification of various customer groups: moderately 33%, a little 67% Product and service development: well 25% – moderately 25 % – a little 50%

Crafts and design organisations elsewhere in Europe answered: - Quality of products and/or services: very well 20% – well 50% – moderately 30% - Consistency in the quality of products and/or services: very well 10% – well 60% – moderately 20% – a little 10% - Originality of products and/or services: very well 20% – well 20% – moderately 10% – a little 50% - Customer-orientedness and identification of various customer groups: very well 10% – well 10% – moderately 50% – a little 20% – not at all 10% - Production (capacity)/product availability: well 20% – moderately 50% – a little 20% – not at all 10% - Product and service development: well 10% – moderately 30% – a little 50% – not at all 10%

The need for marketing training according to entrepreneurs

Identification of new market areas and customer groups and marketing planning Company image development

93 % 86 %

Commercialisation training, e.g. products and services linked to crafts-based tourism

84 %

Communications: communications planning and campaign communications to the media and customers

84 %

Identity training (recognition and utilisation of the company’s own strengths)

79 %

Product information on packaging and online communications

77 %

Peer training in marketing (e.g. sharing marketing experiences and new ideas between entrepreneurs)

77 %

Online communication design (company website) Great need or extremely great

8%

72 %

15 % 7%

Some need or no need at all

Figure 9: The need for marketing training according to entrepreneurs

The companies would have an extremely great need for marketing training: 93% identification of new market areas and customer groups and marketing planning 86% company image development

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Craft and Design Marketing in Europe

84% commercialisation training, e.g. products and services linked to crafts-based tourism, companies’ staff coaching or welfare services and communications: communications planning and campaign communications to the media and customers 79% identity training (recognition and utilisation of the company’s own strengths) 77% product information on packaging and online communications and peer training in marketing (e.g. sharing marketing experiences and new ideas between entrepreneurs) and 72% online communication design (company website). The need for marketing training according to entrepreneurs (continue)

8%

69 %

Pricing

Network marketing training

65 %

14 %

New online media tools (blogs, browser advertising, newsletters, etc.)

65 %

14 %

Digital photography and image processing

64 %

0%

Domestic Internet sales planning

62 %

15 %

Development of online communication

61 %

17 %

Development of online shop

58 %

Event marketing

58 % Great need or extremely great

21 % 0% Some need or no need at all

Figure 10: The need for marketing training according to entrepreneurs The companies would have an extremely great need for marketing training: 69% pricing 65% network marketing training and new online media tools (blogs, browser advertising, newsletters, etc.) 64% digital photography and image processing 62% domestic Internet sales planning (company's own online shop) 61% development of online communication 58% development of online shops and 58% event marketing. The crafts and design organisations in Sweden, Norway, Iceland and Finland believe companies have the greatest need for training in: - Identification of new market areas and customer groups and marketing planning - Peer training in marketing (e.g. sharing marketing experiences and new ideas between entrepreneurs).

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Craft and Design Marketing in Europe

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The crafts and design firms of organisations elsewhere in Europe have the greatest need for training in: - Identification of new market areas and customer groups and marketing planning - Commercialisation training, e.g. products and services linked to crafts-based tourism, companies’ staff coaching or welfare services The crafts and design organisations in Sweden, Norway, Iceland and Finland find it important for entrepreneurs to receive training in the development of online communication and planning domestic online shopping. The representatives of crafts and design organisations elsewhere in Europe, however, feel training in online communication and online shopping to be of less importance for entrepreneurs. Training in planning online communications creates an exception, as it is felt to be of importance for entrepreneurs. Organisations interested in international co-operation 13 organisations are interested in international co-operation. What kind of co-operation are interested?

International development projects

85 %

69 %

Exhibitions activities

Fairs

54 %

Communication (e.g. electronics newsletter between organisations)

54 %

Online business (e.g. joint website) Other: open studio events, conferences, experience exchange

46 %

31 %

Figure 11: What kinds of co-operation are organisations interested in?

The Craft and design organisations are interested in co-operation: 85% international development projects 69% exhibition activities 54% fairs and communications (e.g. electronics newsletter between organisations) 46% online business (e.g. joint websites) and 31% other: open studio events, conferences, experience exchange, shared projects, organisation of seminars and meetings to exchange knowledge and experiences.

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Craft and Design Marketing in Europe

5 Development measures and studies related to the field The best models for developing the marketing of craft and design products and services are/ The good practices are when developing the marketing of products of services: Enabling the businesses to develop skills to undertake activity Art & Craft Sector Development themselves: Project, Dumfries & Galloway 1. Small grant schemes for first time attendance to trade events, Council, Scotland

Truepotential, Ireland The Hungarian Heritage House

Association of Hungarian Folk Artists ULUV - The Centre for Folk Art Production Kuratorium Österreichishes Heimatwerk Norwegian Folk art and Craft Association Svenska Hemslöjdsföreingarna Riksförbund/Svensk Slöjd AB SEMA / Societe d'Encouragement aux Métiers d'Aty Asociación de Creadores Textiles de Madrid

The Finnish Craft Organization

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web development, photography, print, etc. 2. Group stands at trade events. 3. Professional development seminars to develop secondary marketing events/festivals. Networking + co-operative models. workshop galleries for presenting the different crafts and products Interactive presentations of different crafts at fairs - domestic and international leisure time (hobby) workshop programmes International experience, conferences and events/fairs where views are shared. Advertisement by way of fixed customers, online market of craft courses. International contact in projects Know-how for entrepreneurs during a long period connected with market testing. The big exhibitions we have had in Sweden, and we have had our own crafts shop since 2001. The shop has had a lot of coverage in all the big magazines in Sweden and Japan. We have introduced a new activity "Official Directory of Arts and Crafts" Carrying out a campaign to better the way crafts are perceived by society in general with the aim that crafts come to be thought of as belonging to the realm of high culture and associated with quality and excellence. Stressing the fact that packaging, company identity and product communication are almost as important as the product itself. Convincing craftspeople that design is not a waste of time because well designed products sell better. Long-term cooperation between Taito Shop managers and entrepreneurs. Cooperation with exhibition organisers. Networking across sector boundaries. Online service Finnish Craftnet. E-learning environment for close-up training and distance learning.

Craft and Design Marketing in Europe

TAITOMARKKINOINTI-SELVITYS

The future trends in the marketing of craft and design products and services are/ In your opinion, what will the significance of, for example, online trade be in five years’ time: I see future trends needing to be virtual, through blogging, social Art & Craft Sector Development networking and community sites. This is needed to increase 'word Project, Dumfries & Galloway of mouth'. I also see developments in cultural tourism being Council, Scotland

Truepotential, Ireland Crafts Council of Ireland

The Hungarian Heritage House

Association of Hungarian Folk Artists ULUV - The Centre for Folk Art Production Kuratorium Österreichishes Heimatwerk Norwegian Folk art and Craft Association Svenska Hemslöjdsföreingarna Riksförbund/Svensk Slöjd AB SEMA / Societe d'Encouragement aux Métiers d'Aty

important. There is an increased saturation of events which will require a development of branding to establish a USP. I see online trade as being important for physical objects as technology increases the opportunity for us to virtually explore more of our senses and also for the transference of knowledge, a commodity in itself. Online can be highly significant provided there is sufficient traffic – They need to be as popular such as ebay, etc. The Internet is not a significant sales channel (online sales by craftspeople are actually falling), it has significant potential for marketing, for arousing the interest of buyers and for communicating the story behind the craft and the craftsperson. The majority of sales happen only when the purchaser can actually see and touch the product. to develop innovative ways of making craft more easily accessible to consumers, for example, through exhibitions, galleries, craft fairs and commissions, (tourism bodies and other key partners) (Strategic Plan for the period 2007 – 2009).3 The demand will probably increase towards the cheaper small souvenir objects and the more expensive unique objects. Online trade will be more and more significant, though selling craft products will always need a more personal- touchable - contact. Online trading is the biggest challenge in the future within the borders and beyond. Online presence, shops and logistic. Online market to be more and more customer-oriented. Online trade is a question in development (You want to see and take the things in your hand before buying). More online activity, more focus on the "story telling" and knowledge explanation. More focus on local identity products with environmental consciousness. Traditional and environmental products. It should be more important.

3

Strategic Plan for the period 2007 – 2009. The Craft Council of Ireland 2006. http://www.ccoi.ie/content/view/277/187/

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Craft and Design Marketing in Europe

Asociación de Creadores Textiles de Madrid

Online trade will see a strong increase but probably slower than etrade in another areas. Crafts products attract all senses and they appeal to the direct touch. Web sites work efficiently as online catalogues to make producers known.

Estonian Folk Art and Craft Union

Handicraft marketing will remain in the great part in direct contact with craftsmen and the customer. Some of the market will move to the Internet. In our country, volumes of craft production are quite low in order to sell them from the Internet worldwide. Products and services that improve people's well-being in every way will increase. Activities in the field of well-being and guerrilla marketing (a-typical zero marketing methods) will increase. The significance of online communication and shopping will increase. Strengthening one’s online presence, online tools (blogs, newsletters, RSS feeds) and member-get-member marketing are important. Bold networking across sector boundaries with, e.g. leaders in the field of travel will increase.

The Finnish Craft Organization

What development measures is your organisation planning to adopt in order to develop the marketing of craft and design entrepreneurs in the next five years? Addressing the sustainability of events, expanding the knowledge Art & Craft Sector Development of funding streams, partnership working, buying into services of Project, Dumfries & Galloway national organisations, signposting individual businesses as Council, Scotland necessary.

Truepotential, Ireland Crafts Council of Ireland

The Hungarian Heritage House

Association of Hungarian Folk Artists 4

Strategic Plan for the period 2007 – 2009. The Craft Council of Ireland 2006.

http://www.ccoi.ie/content/view/277/187/

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Retail development projects, to encourage co-operative and networking projects - to facilitate new product development - to develop and communicate a defined image and positioning for the craft brand - to seek partnerships that increase access channels for craft to the target consumers. - to provide craftspeople with up-to-the-minute information on current trends in the global marketplace through seminars, newsletters and websites. - to increase the sales channels for the Designer Maker to work in partnership with existing galleries to increase the sales of craft. (Strategic Plan for the period 2007 – 2009).4 The Hungarian Heritage House is not the organisation that deals with marketing projects. We inform the craftsmen and entrepreneurs about the different possibilities and applications. To open more craft shops nationwide, improve Internet shopping and organise marketing training for entrepreneurs.

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ULUV - The Centre for Folk Art Production Norwegian Folk art and Craft Association

Online market.

Svenska Hemslöjdsföreingarna Riksförbund/Svensk Slöjd AB

We are looking for money for a craft consultant for this questions, if we get that money we are going to undertake projects, for example, in marketing. More information, more promotion, more exchanges European and international.

SEMA / Societe d'Encouragement aux Métiers d'Aty Asociación de Creadores Textiles de Madrid

To educate more young people during projects. To work towards altering framework for entrepreneurs.

Right now, most of our projects aim at introducing design into craft workshops and showing/selling the results in the best possible settings: museums, high standing shopping centres…

Estonian Folk Art and Craft Union

Courses on entrepreneurship, product development and marketing for craftsmen at the county level.

The Finnish Craft Organization

Developing business services for online learning environments and developing new service packages, improving the cooperation between business advisors and shop managers, developing the online business market place.

A study has been conducted in Scotland, Ireland, Hungary, Spain and Finland on crafts and design entrepreneurs.

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6 Basic information on the respondent’s organisation and field Organisation´s activities

92 %

Exhibitions

85 %

Expert services and consultation Development projects

77 %

Publishing

77 % 69 %

Communications Fairs

54 %

Shops

54 %

Craft courses

54 %

Workshops

54 %

Training

54 % 46 %

Interest representation Other: open studio, jurying the craft objects etc. Tourism

31 % 23 %

Figure 12: Organisation’s activities

The organisation’s activities are: 92% exhibitions 85% expert services and consultation 77% development projects and publishing 69% communications 54% fairs, shops, craft courses, workshops, training, interest representation 31% other activities (open studios, small grant schemes, jurying the craft objects, resource centres, documentation of the folkcrafts, encyclopaedia of the folkcrafts on the website) and 23% tourism.

Public sector support for organisations is 30-100%.

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How many people are involved in crafts/design for a living? Art & Craft Sector Development Project, In 2005, we identified 400 active arts and crafts Dumfries & Galloway Council, Scotland businesses in Dumfries & Galloway. Ireland 1300 Norwegian Folk art and Craft Association:

Approx. 150 members in our association.

The Hungarian Heritage House

About 5000 (five thousand ) people all over the country.

ULUV - The Centre for Folk Art Production

About 2500 craftsmen, about 300 designers.

Svenska Hemslöjdsföreingarna Riksförbund/Svensk Slöjd AB Asociación de Creadores Textiles de Madrid

We don’t know, we hope that we can perform an estimation next year. In our association there are nearly 80 members.

Estonian Folk Art and Craft Union

No data.

The Finnish Craft Organization

10 000

What are the most important bodies developing the craft and design entrepreneurship in your country? Centre of cultural initiatives, Russia Craft centres. Art & Craft Sector Development Project, Dumfries & Galloway Council, Scotland

Scottish Arts Council, Cultural Enterprise Office, Lighthouse, local authorities.

Truepotential, Ireland

Crafts Council of Ireland.

Norwegian Folk art and Craft Association:

Innovation Norway (Innovasjon Norge Lokal næringsmidler).

The Hungarian Heritage House

Hungarian Heritage House and Association of Hungarian Folk Artists.

Association of Hungarian Folk Artists

Ministry of Education and Culture National Cultural Fund, Hungarian Heritage House.

ULUV - The Centre for Folk Art Production

Ministry of Culture of the Slovak Republic.

Asociación de Creadores Textiles de Madrid

Fundación Española para la Innovación de la Artesanía. Oficio y arte, the Spanish National Organisation for Crafts.

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Craft and Design Marketing in Europe

Most of the regions have their own association, very active at a regional level, although some also organise activities on a national and international basis. Estonian Folk Art and Craft Union The Finnish Craft Organization

Specific high schools, craft and art unions, union of small entrepreneurs. Universities (Faculty of Art and Design), University of Applied Sciences, Degree Programme in Design, Design Forum Finland, Finnish Association of Designers Ornamo, Women’s Enterprise Agency Employment and Development Centres, The Finnish Crafts Organization.

What are the other important bodies promoting the craft and design field in your country?

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Art & Craft Sector Development Project, Dumfries & Galloway Council, Scotland

Craftscotland, private galleries and outlets, Applied Art Scotland

Truepotential, Ireland

National College of Art and Design, The Art Council

Norwegian Folk art and Craft Association:

Several non governmental membership org., various non-state run institutions and foundations

The Hungarian Heritage House

Unfortunately non-existent

Association of Hungarian Folk Artists

Media, Hungarian Tourist Ltd.

ULUV - The Centre for Folk Art Production

The Slovak Design Centre, The National Museum and regional museums, The Centre for Folk Art Production

Asociación de Creadores Textiles de Madrid

Take a look at the Asociaciones at www.oficioyarte.org

Estonian Folk Art and Craft Union

Union of Artists, University of Arts

The Finnish Craft Organization

Design Forum Finland, Finnish Association of Designers Ornamo, The Finnish Crafts Organization.

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7 Company services offered by your organisation Organisation´s business services

100 %

Consultation

85 %

Publications

Training, courses

69 %

Online services (information and/or marketing services)

69 %

Marketing services (fairs, events, etc.)

62 % 46 %

Telephone service

38 %

Interest representation

Other: e-shop service, design consultantship

18 %

Figure 13: Organisation’s business services The organisation’s business services are: 100% consultation 85% publications 69% training, courses and online services (information and/or marketing services) 62% marketing services (fairs, events, etc.) 46% telephone service 38% interest representation and 18% other: e-shop service, design consultants, information in the way of newsletters.

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Particularly important business services are Art & Craft Sector Development Project, The open studio event, one-to-one advisory Dumfries & Galloway Council, Scotland sessions, small grant schemes, professional development seminars. Norwegian Folk art and Craft Association:

Fairs, events, activities.

The Hungarian Heritage House

Consultation, training, courses, publications.

Association of Hungarian Folk Artists

Telephone service, consultation, marketing services, online services, publications.

ULUV - The Centre for Folk Art Production

Design consultants for craftsmen.

Asociación de Creadores Textiles de Madrid

Training and consultation.

Estonian Folk Art and Craft Union

Fairs, exhibitions, workshops.

The Finnish Craft Organization

Online and marketing services and publications.

The human resources of organisations involved in the business service are: Organisation persons 2.5 Art & Craft Sector Development Project, Dumfries & Galloway Council, Scotland 20 SEMA / Societe d'Encouragement aux Métiers d'Aty Asociación de Creadores Textiles de Madrid 3 The Hungarian Heritage House 5 Association of Hungarian Folk Artists 8 ULUV - The Centre for Folk Art Production 8 Norwegian Folk art and Craft Association Svenska Hemslöjdsföreingarna Riksförbund/Svensk Slöjd AB 2 Handverk og Hönnun 30-50 Estonian Folk Art and Craft Union 11 The Finnish Craft Organisation 5 Centre of cultural initiatives, Russia

Business services are fee-based in Scotland, Hungary, Slovakia, Sweden, Norway, Iceland, Estonia, Finland, Spain and Russia.

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85% of the respondents are involved in cooperative activities: Organisation Art & Craft Sector Development Project, Dumfries & Galloway Council

The Hungarian Heritage House Association of Hungarian Folk Artists

ULUV - The Centre for Folk Art Production Norwegian Folk art and Craft Association

The Finnish Craft Organization

SEMA / Societe d'Encouragement aux Métiers d'Aty Estonian Folk Art and Craft Union

Co-operation Cultural Enterprise Office http://www.culturalenterpriseoffice.co.uk AN The Artists Information Company http://www.a-n.co.uk Association of Hungarian Folk Artists www.heritagehouse.hu, [email protected], [email protected], [email protected], [email protected], [email protected], [email protected] ULUV PLUS non-profit organisations, www.uluvplus.sk www.birka.no, www.norskflid.no, www.norwaydesign.no, www.norskform, www.hit.no, www.maihaugen.no, www.norgesvel.no, www.hbl.no www.te-keskus.fi www.yrityssuomi.fi www.diges.info www.ornamo.fi www.designforum.fi www.eurosema.com www.folkart.ee

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8 Hand-created marketing “You need to have a clear idea of what you want. You must be able to name your customers, you need to know for whom you are making your products. You also need to give your customers pleasant surprises. You need to be one step ahead and read, as if between the lines, the customers’ needs and wishes.” (Mikko Puotila, Ruohomäki 2000, 71) Marketing is an integral part of the product development and production process in the craft and design branch. Craft and design entrepreneurs see marketing as a complex issue, and its importance is understood, but finding suitable methods can prove difficult. Entrepreneurs also do not have much time or money to spend on marketing. However, to be a successful business it is crucial to reach customers. The Finnish Crafts Organization Taito decided to delve into the marketing of craft and design products by collecting data and conducting surveys and interviews in Finland, and also by collecting international data for comparison. As a result, quite a lot of data describing the present situation was accumulated. Most of all, the organisation gained knowledge on which are the most important crafts products and services sold and which are the marketing channels. The data also suggests ways of improving marketing. All in all, the surveys and reports provide a solid basis for further development. The international survey also revealed that various bodies in the craft and design branch are interested in co-operation. The key issue in marketing is probably how well entrepreneurs are able to communicate about their products to potential buyers. Anne Äyväri (2000, 5) summarises the purpose of marketing as follows: “Craft and design entrepreneurs wish their products to convey some of their own ideas and thoughts to the users of the products and other people. Well thought out marketing measures help in conveying this message. Systematic marketing is essential when craft or design product makers want their message heard outside their immediate circle.” Marketing can also refer to a reconciliation process in which the company’s resources and skills are matched with the customer’s needs and wishes so that both reach their goals (Äyväri 2000, 17). The core issues and challenges in marketing are quite similar in various European countries, but there are also differences. Many efforts run into difficulties due to the small size of the companies and the necessarily limited material and mental resources. Craft and design marketing in Finland was the subject of a report published in February 2008 5, which sought to provide information to support further development. The data, collected by surveys and interviews, was mainly grouped around the same fundamental issues as the European survey described above. Below, we will look at the most important results from the European survey and compare them with the data for Finland on the one hand and the Nordic countries on the other. The Taito Marketing Survey (Net Effect 2007) revealed that the conceptions of the products and the entrepreneurs’ know-how held by craft and design entrepreneurs on the one hand and buyers on the other differed considerably. This is a natural phenomenon as entrepreneurs see themselves 5

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Taitomarkkinointi, Käsityö- ja muotoiluyritysten markkinointi, Net Effect 2007, ‘Taito Marketing Survey’

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differently than buyers, whose job is to find good products that sell well for the shops they represent. Could the difference also be indicative of something else? Do the maker’s idea of what he or she wants to sell and the buyer’s idea of what he or she wants to buy match at all? There is probably much more than just marketing at play here. Craft and design entrepreneurs make products that embody their own endeavours. Could craft and design entrepreneurs, who value independence and individuality, listen more to their customers or their representatives, such as buyers, and take them into account more than they do at present? What could true customer orientation be? The ideal case is, after all, when an entrepreneur solves a customer’s problem in a creative and innovative way. In such a case, customer orientation goes much deeper than when the entrepreneur only fulfils the customer’s wishes.

Research data in the surveys The respondents in the Finnish market survey included consumers, entrepreneurs, buyers and business advisors. The respondents to the European survey (hence forward the international survey) represented organisations that promote craft and design and the responses did not take the point of view of any particular group but rather attempted to present the situation as it currently is. However, it is fair to assume that the responses mainly reflect the views of development experts. The response rates were not very high in all groups but in all probability there are sufficient responses to provide some idea. A web survey targeting Finnish entrepreneurs, buyers, Taito business advisors and project managers in the branch was carried out in summer 2007. Invitations to participate in the survey were sent to 2,260 craft and design entrepreneurs via email or mail and 292 responded. The buyers’ survey was sent to 39 shop managers and 15 responded. Taito business advisors and project managers and trainers in the branch were sent 25 surveys and there were 15 responses. Furthermore, two group interviews with craft and design entrepreneurs were carried out in August, with 10 entrepreneurs participating. These actions accumulated data on the experiences, opinions and ideas for development among Finnish craft and design entrepreneurs and experts involved in the development of the branch. Consumers were also heard by conducting a web survey. It was publicised on the web, through press advertisements and by distributing information leaflets at cultural events. The consumer survey attracted 220 responses. Net Effect Oy compiled a report based on the surveys and interviews. It was completed in February 2008. An international survey studying craft and design marketing was distributed to European organisations in the branch (Appendix 2) in September 2007. Invitations were sent to 20 countries, and 14 different organisations in 13 countries responded. The number of countries was particularly pleasing and the results can be assumed to give a fairly representative picture of the present marketing situation of craft and design enterprises in Europe. 30

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Survey Dates Web survey to entrepreneurs, buyers and 11.–29.6.07 business advisors Survey to buyers 11.–29.6.07 Survey to experts 11.–29.6.07 Group interviews 15.8.07 Survey to consumers 12.6.–31.7.07 International survey 3.9.–31.12.07 Total

Surveys sent 2 260

Responses 292

39 25 10

15 15 10 220 14 566

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Table 1. Research data. The international survey was divided into five sections, which were products and services, marketing channels, renewal of the product and service portfolio, managing the product’s uniqueness, quality, production, R&D and customer-orientedness, and marketing training needs of entrepreneurs. The following sections will examine the marketing of craft and design enterprises based on these points of view and compare the results of the international and the domestic surveys. In addition, the answers from the Nordic countries (Sweden, Norway, Iceland and Finland) will be studied separately.

Products for individual outfits and home decoration The success factor for a craft and design enterprise is a product that stirs interest in the customer. However, a good product alone is not enough; it also needs to be brought to the customer’s attention. Respondents to the international survey were asked to name the most important products and services sold in the domestic market. To facilitate answering, the survey listed typical product groups and services from previous studies. In addition, there was the open group “Other”, which the respondents were asked to specify. The results do not tell the precise share of turnover each of these product groups generates; they do, however, provide an idea of which products sell most. Clothing and accessories and homeware emerged as the most important product groups. Clothing and accessories include jewellery, fashion clothes and different accessories. Jewellery was mentioned by 69% of the respondents, fashion clothes by 23%, and accessories, such as bags and scarves, by 23%. These are typically products that can be used to enhance individuality. It is also probable that customers are ready to pay more for such products than for mass-produced goods. Nearly as many respondents mentioned homeware, such as crockery and textiles (69%) and furniture (15%) as the most important product group. The survey does not directly say so, but it can also be assumed that consumers are looking for an individual look or tailor-made products for their home.

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Giftware also often comprised such things as jewellery and crockery. Giftware was mentioned as one of the most important product groups by 38% of the respondents. 31% of the respondents mentioned other products, such as folk costumes and materials, under the group “Other”. The Finnish survey to consumers asked which domestic craft or design products the respondents had bought within the past 12 months. The responses showed the product groups to be the same as in the European data. The consumers who responded to the web survey are arguably not average consumers but the responses probably still reveal which craft and design products consumers wish to buy. The products were often bought as a gift (34%) or to be used at home (27%). Clothes and accessories had been bought by 21% of the respondents. The decision to buy was most of all influenced by the product matching the buyer’s own style. Quality, design, colours and individuality were also crucial. Practicality was one of the most important factors influencing the decision to buy. Price was also important but not among the most important factors. A consumer survey commissioned by Crafts Council of Ireland (Crafts Council of Ireland 2005, 1–6, and Conroy Consulting 2005) studied the factors influencing the purchase of craft and design products. Products were divided into giftware, homeware and products bought for oneself, such as accessories. Lifestage, affluence and need, such as wedding gift or equipment for the home, were recorded as factors influencing the decision to buy. Occasions for buying gifts were divided into three types: big occasions, smaller occasions and holiday day trips and self gifts. Brand name and status were an important factor for big occasion gifts, functionality and style for smaller occasions and reward and remembrance for the third group. These same factors also operate in Finland, as Finns also buy individual presents. The consumer survey contained in the report Käsin tehty tulevaisuus (Snell 2002) revealed that an individual, unique gift is “risky” and requires that the giver and recipient know each other well. A craft and design product with a well-known brand is the probable choice. Immaterial gifts, such as services or directing the gift money to charity, have also become more popular. Perhaps the immaterial properties of craft and design products should be demonstrated much more clearly than is currently done. Valuable and unique products need a kind of an assurance of the product’s quality and value, a similar reliability as is created by a brand. “A brand is the most important asset of an entrepreneur, his or her recognition and trust,” says Harri Ruohomäki in the book Käsin tehty brandi. A good brand helps to achieve a higher price for the product, to the extent that the higher the special experience aspect associated with the product or its story, the higher the price can be. (Ruohomäki 2000, 31, 51) Craft and design products are hand-made or hand-finished unique products or small series. Individual design and hand-crafted manufacturing make the products different and distinct from industrial products. Standing out is a key factor in competition with industrial products suitable for the same purpose. An interesting and crucial question in marketing is what is the added value in the product. The fact that a product is hand-made is seldom the only crucial factor for consumers. Craft and design products can naturally be good or bad, necessary or unnecessary, but handcraft methods make it possible to manufacture very special products and, thus, create 32

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the added value that attracts customers. Very often the added value consists of uniqueness and individuality but it can also be a product for a practical purpose, which cannot be found in other markets. The fact that the product is made locally and gives employment to local people can also create added value. Durability and being environmentally friendly are also features that attract consumers. However, these positive aspects are not enough if the product is not also fit for its use or does not correspond to the consumer’s idea of what is good and beautiful. The most important product groups that emerged in this study suggest that people wish to purchase individual products that enhance their personality. The product groups are fairly similar in the various countries but the manifestations are different: they show the influence of the local culture, typical local materials and such things as the affluence of the country. The survey clearly demonstrated the need for the renewal of product portfolios. In the international survey, 86% of respondents considered it important and in the Finnish survey, 67% of buyers and 80% of business advisors agreed while only 33% of entrepreneurs thought so. The renewal of the service portfolio was considered important or very important by 70% of the respondents to the international survey, 66% of Finnish buyers and business advisors and 17% of entrepreneurs. Items that were desired for the product portfolios included furniture, home textiles, gift items with a strong link with cultural heritage, good souvenir products, high-quality, modern and innovative products, and clothes designed on the basis of folk costumes. Services that were mentioned included tailor-made courses, workshops and tourism and wellbeing services.

Participation, experiences and learning For craft and design entrepreneurs, the majority of turnover is created by the sale of material goods but services also play an important role. However, the exact share of services cannot be determined from the surveys. According to the international survey, craft and design enterprises sell courses (83%), workshops (33%) and workshops for special groups (17%) in their domestic market. Experience services (42%), such as work demonstrations and guided tours (8%) have been turned into products for tourism. The turnover of the entrepreneurs in the domestic survey was mainly generated by product sales but services also played an important part. The turnover of 20% of the respondents consisted of products and services in equal shares, 7% indicated that services generated more turnover than products and 1% said that their turnover was generated by services alone. Turning services into products that can be sold probably still offers untapped opportunities. Craft products and activities can be turned into wellbeing services. In practice, providing wellbeing services requires building networks with established partners in the field. (Kälviäinen 2005).

Own workshops and fairs Nearly all craft and design entrepreneurs sell their products directly from their own workshop at least to some extent. It is difficult to estimate the total volume of these sales. In all probability 33

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sales at fairs and various events have a larger volume than direct sales from the workshop. Direct sales to domestic and international customers are also conducted online via websites. According to the international survey, direct sales from the workshop and domestic fairs are equally important sales channels, both were mentioned by 79% of the respondents. International fairs and events were mentioned as the most important sales channel by 21% of the respondents. Orders received via the Internet were regarded as an important domestic marketing channel by 21%. Likewise, 21% mentioned online shops but 73% felt that online shopping only had minor importance in international direct sales. The responses from the Nordic countries differed from the overall data. All Nordic respondents regarded domestic fairs and events and sales from own workshop or shop as important or very important. Direct sales to companies was also considered more important in the Nordic answers than it was in the international data. This suggests that direct sales might be more common in the Nordic countries than elsewhere in Europe. Finding out about customers’ needs requires contacts with customers. Customers can also serve as an excellent information dissemination and marketing channel. (Ruohomäki 2000, 39) Direct sales enable the entrepreneur and customer to meet and discuss the products. Ideally, this leads to product development and completely new ideas for products. Personal contacts make the entrepreneur’s products more attractive and facilitate later online sales. However, some entrepreneurs feel awkward about contacts with customers and uncomfortable about receiving direct feedback. Selling also takes time away from other tasks. In the Finnish survey, entrepreneurs considered direct sales to customers to be the most important sales channel (61%). Only 35% considered retail sales through a distribution network important and 43% felt that it only had minor importance. Exports were hardly considered important at all. Business advisors and project managers, on the other hand, considered retail sales (60%) more important than direct sales to customers (50%). The difference is probably due to the fact that entrepreneurs do not necessarily pay attention to how demanding and timeconsuming direct sales are.

Specialist shops as craft retailers According to the international survey, specialist and gift shops are the most important retail channel for craft and design products. Craft products are sold at shops specialising in craft and design products, jewellery shops, galleries and museum and tourist shops. Department stores only have minor importance. Online shops are also a growing marketing and sales channel for unique products. The most important retail channels in the Nordic replies were also specialist and gift shops but tourist shops were less important than in the overall international data, while museum shops and online sales were more important. Are craft and design products a more integral part of tourism

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elsewhere in Europe than in the Nordic countries, or are products sold to tourists via museum shops? Specialist and gift shops are a natural channel for unique products, which are often bought as gifts. Some products might also be suitable for interior shops but the risk is not standing out in large shops. Selling clothes and accessories is slightly problematic. Consumers might be unfamiliar with buying clothes in a gift shop and an ordinary clothes shop is not necessarily the right environment for individual clothes and accessories manufactured in small quantities. Department stores mainly display craft and design products in their tourist and gift departments alongside mass-produced goods. Shop-in-shop sales might be a better solution.

Challenges in know-how and marketing Respondents to the international survey were asked to assess the product and customer knowhow of craft and design entrepreneurs. The strongest know-how was deemed to be in quality of products and services (71%) while the weakest know-how was in development of products and services (7%) and customer orientation and identifying customer groups (8%). Nordic respondents felt that entrepreneurs are fairly strong on quality of products and services while the most weaknesses can be found in customer orientation and identifying customer groups and the second most weaknesses in product development. Respondents to the Finnish entrepreneur survey felt that they were fairly strong on these issues but according to business advisors there is room for improvement particularly in customer orientation, product development and the ability to deliver the goods as agreed. The report says that the need to develop business operations in the branch is comprehensive and issues, which, at first glance, might seem to be problems in sales and marketing, are equally problems linked to products, product development and manufacturing processes. The results of the international survey are slightly conflicting as product quality is seen as a knowhow strength but, at the same time, it is felt that there is a need for product development and renewal of the product and service portfolio. Perhaps the respondents meant that the products are usually well-made and the standard of quality is held high but the products are not necessarily attractive and the selection is not renewed sufficiently fast. Product development could also be viewed in a new way and customers could be included in the process. Improving the marketing skills of the entrepreneurs is deemed very important. Nearly all questions related to the development of marketing elicited the response ‘important or very important’ from more than half of the respondents to the international survey. Identifying new markets and customer groups was considered the most important issue. Next came developing the image of the enterprise and identifying its strengths, commercialisation and productisation of the products, for instance for tourism needs, communication skills, product packaging and product information, pricing and utilising the web in marketing. Development targets were associated with the development of the company and its products and marketing and web skills. The Nordic results were similar. One of the conclusions drawn from the Finnish surveys was also

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that it is advisable from the point of view of developing marketing to invest in improving communication, in identifying customer groups and in customer orientation. Respondents to the international survey were asked to name challenges in marketing. Changing markets and reaching new customer groups were felt to be particular challenges. Things were seen as problems rather than opportunities perhaps because small enterprises have limited resources to conduct market analyses and invest in marketing. Entrepreneurs need tailored information on the market situation. The need for renewed product and service selections was one of the messages gleaned from the surveys. This is also a challenge for development efforts. Customer orientation is part of the product development process. Understanding the lifestages and needs of customers could be a starting point for product development.

Best marketing methods An open-ended question in the international survey asked the respondents to list the best methods to develop the marketing of craft and design products. Similar marketing methods were deemed best in different parts of Europe. Public events, such as trade fairs, were good sales opportunities. Retail networks, co-operation and training bring results. The Finnish data emphasised the Internet as a marketing tool but the need to improve communication was also seen to apply to traditional media. Consumers called for more media visibility of craft and design enterprises. They felt that the most important development targets in marketing are websites, entrepreneurs’ presence at sales events, press articles and presence at cultural and summer festivals. Entrepreneurs have decided to invest in exhibitions, improving corporate image, websites, communication, marketing materials and fairs in the next two years. The Finnish surveys did not ask about best marketing methods but the question has been asked in the ‘Craftnet product of the month and its maker’ interviews conducted by Taina Tervonen. Between 2004–2008, Tervonen has already completed 48 such interviews with Finnish Craftnet entrepreneurs (Tervonen 2004–2006). An analysis of the interviews conducted in 2004–2006 (as of June 2006) (Luutonen 2006, 50–56) shows that the starting point for marketing was the company’s product. Recognition of the company and its products is built at fairs and other sales events. Most entrepreneurs market their company’s products in person. Retailers are essential and usually a key marketing channel for established companies. Most interviewees saw the Internet as an important and growing tool. Customers also spread the word about the company’s products. Co-operation between entrepreneurs at fairs and other contexts makes it easier to achieve presence.

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Hand-crafted message to consumers electronically “Thanks to its digital nature, the Internet offers entirely new ways of brand-building, marketing, advertising and selling products, be they big or small.” (Ruohomäki 2000, 92) Most respondents to the international survey estimated that the importance of online shopping will also increase in the sales of craft and design products. However, marketing situations in which buyers can get to know the product with all their senses were also emphasised. Stories and cultural aspects linked to the product can at least partly be conveyed in online shopping. Handmade products come in all sizes and shapes and because of this, they need different marketing methods. The Internet was seen as a marketing tool of the future and therefore enhancing Internet skills was seen as crucial. The role of the Internet was even more emphasised in the Nordic answers and particularly in the Finnish surveys. The surveys confirmed the need to seek online markets. The Internet makes it possible to reach a considerable number of people with a fairly small investment. It is possible to reach millions or a well-defined small group. This has in some ways narrowed the gap between large and small companies. The message on the web can be formulated very precisely and the form in which it reaches the target audience can be controlled. Another advantage is that orders can be sent and received at any time, from anywhere in the world; it is possible, as it were, to be at several places at the same time. Mailing lists are necessary for marketing but another good way is to join existing newsgroups. Activities can be made more efficient by good customer service and the right attitude. However, success is not inevitable. For instance, standing out among endless messages is a challenge. However, it is well-advised to adopt the web as a marketing channel because the customers are also there. (Levison & Rubin 1995/1996, 3–9) According to Petteri Harjula (2006, 33–36), it is essential that companies that make products aimed at consumers are on the web. The amount of information on the Internet is so huge that searchability is a challenge and therefore entrepreneurs need to invest in the searchability of their websites. One alternative is an online marketplace that showcases the products of several entrepreneurs. Web presence can also be enhanced by blogs and discussion forums.

Inventive marketing Craft and design enterprises represent creative branches and the entrepreneurs are usually skilful craft and design professionals. It could therefore be wished that creativity was evident in the entire product development process, including marketing. However, taking care of the entire process may prove to be too much for a lone entrepreneur. He or she can co-operate with other entrepreneurs in the same branch, network with entrepreneurs and partners in a different branch, or outsource services. Networking seems to have gained strength, at least as a consequence of an increasing number of projects. 37

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The idea of guerrilla marketing put forth by Jay Conrad Levison (1997) is partly close to the way many craft and design entrepreneurs work. According to Levison (1997, 6–11), guerrilla entrepreneurs seek a balance between work and leisure time. It is typical of craft and design entrepreneurs that their work is a way of life for them and their professional identity is closely linked to the design and manufacture process. Entrepreneurship and self-employment reflect an endeavour to turn a dream into a living. Levison has formulated several typical features of guerrilla entrepreneurs. They know that “the journey is the goal” and that the company is under their control. Guerrilla entrepreneurs are not in a hurry but value producing quality more. Stress is a sign to the entrepreneurs that they are on the wrong track. They love their work and develop their skills. Guerrilla entrepreneurs do not have weaknesses because they are team players and build networks with people who are skilled in the things lacking in their own skills repertoire. Finnish craft and design entrepreneurs have traditionally not been thought of as team players but it seems that progress has been made in this respect. For instance, entrepreneurs quite often co-operate in marketing. Guerrilla entrepreneurs live in the present but are also aware of the past and the future. They leave outdated technologies behind and live in today. Craft and design entrepreneurs are adopting new technologies but not pioneering them. According to Levison, entrepreneurs understand the value of time and do not believe in the phrase “time is money”. Instead, they understand that it is much more – it is life itself. Entrepreneurs act according to a plan, and are aware of who they are and what their goals are and how to reach them. They are, however, flexible and able to change direction if necessary. Results are more important than growth, and they continually learn new things, have a positive attitude and are enthusiastic about their work. The picture Levison paints of guerrilla entrepreneurs shows happy entrepreneurs who manage their lives, operations and partnerships and love their work. In the best cases, this is also true of craft and design entrepreneurs. Perhaps the greatest deviations as regards a typical craft and design entrepreneur are working alone and sometimes incomplete life and business management. One of the messages to be learned from guerrilla entrepreneurs is that happiness and enjoyment in one’s work can be achieved by ambitiously taking action while honestly assessing one’s own skills and building partnerships. It all might seem like an American dream, as set down by a business guru in California, but his ideas nevertheless contain many important observations and lessons to be learned. Inspired by Levison, Jari Parantainen wrote the book Sissimarkkinointi (2007). The idea is to generate profits with small investments, use brains more than capital. Guerrilla marketers study their customers’ buying behaviour and aim at good profits instead of high sales volumes. The report Käsin tehty tulevaisuus reached a similar conclusion, one of which was that the entrepreneurs should aim to become profitable but not necessarily large. (Luutonen & Äyväri 2002, 205). The methods used in guerrilla marketing are often atypical. One of the basic ideas in Parantainen (2007, 19–17) is that guerrilla marketers invest their time, energy and imagination. Entrepreneurs not only need to understand their customers’ buying behaviour but also need to define the core of their business operations. Guerrilla marketers usually focus on small target groups and choose their customers in advance. Marketing includes numerous methods, many of 38

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which are free. Guerrilla marketers combine several marketing methods into an efficient whole and aim to create customer relationships. Marketing in craft and design enterprises is often part of a process carried out by a single person and close to sales. Seeking creative solutions, guerrilla marketing would seem to be a natural alternative for craft and design enterprises. However, entrepreneurs still often hanker after mass marketing and are horrified about its price. The products made by craft and design entrepreneurs are not massproduced goods and it would be well-advised to think of other means to reach just the right customers. Craft fairs are a fairly efficient way. They make it possible to reach the customers directly and entrepreneurs can be there in person to tell about their products and to listen to customers’ wishes. Large fairs naturally also involve stiff competition amongst numerous producers but the large number of vendors also attracts large numbers of customers.

Marketing from person to person The international marketing survey showed that marketing methods and challenges are similar in different parts of Europe. The views expressed in the Nordic responses were even more uniform than in the rest of Europe. Operating in electronic networks was considered particularly important in Finland. The main product groups in all the countries were clothing and accessories and homeware. They are bought for oneself or often as gifts. The products are deemed to be of high quality but product selections should be renewed. The majority of turnover is generated by product sales. The most important service is organising courses while workshop activities, which are similar, are also important. Services have been turned into products for the tourist industry, and wellbeing services are also sold. It would actually be fair to say that all services in the branch are associated with wellbeing. Services are also tailored for special groups according to their needs. The most important direct sales channels are sales from the entrepreneur’s own workshop or shop, and direct sales at fairs and other sales events. International direct sales as well as online sales only have minor importance. Retail takes place in specialist shops, tourist shops, gift shops, jewellery shops and museum shops. Department stores and online shops have minor importance. When looking at sales volume, specialist shops are the most important sales channel, followed by entrepreneurs’ own workshops and domestic fairs and sales events. Marketing challenges that were mentioned included entrepreneurs’ know-how, attractiveness of products and lack of resources. Nearly 90% of the respondents thought that renewal of the product range is important or very important. Items that were desired for the product portfolios included furniture, home textiles, gift items with a link with cultural heritage, good souvenir products, high-quality, modern and innovative products, and clothes designed on the basis of folk costumes. Services that were mentioned included tailor-made courses, workshops, and tourism and wellbeing services. Craft and design entrepreneurs already produce all of the above 39

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product groups or services. It is difficult to think of something completely new but the important thing is to find new perspectives on these product groups and find new ways of expression, new materials and creative and innovative design. The marketing know-how of entrepreneurs is not considered particularly good and improving these skills is important. There is room for improvement at least in communication skills, pricing, web communications and photography. How wise it is for an entrepreneur to take care of marketing and communications on his or her own is another question. However, in practice, many work alone and perhaps better marketing skills would also help to make them aware of the value of professional help and how important marketing is. The best marketing practices listed by the respondents comprised familiar, commonly used methods mentioned above. The short answers do not indicate why a particular method was successful. It is also probably a question of how well various fairs and sales events were put together and how well they were suited to present the products to be marketed. It is probably more about how things are done, not about what is done. The future of marketing was seen to be on the web but simultaneously the respondents expressed the need to display products in a way that allows customers to see and feel them. The extreme ends of the product range – simple, inexpensive souvenirs and valuable unique products – were also mentioned. All in all, it can be said that the survey gave a fair picture of today’s marketing and its development needs and some pointers for future trends. The important message is to make increasingly good and innovative products, which interest customers and answer their needs. The visibility of the craft and design branch needs more investment and marketing and communications need many new, creative methods. Unique, individual products deserve personto-person marketing. That is, creativity, innovation, inventiveness, new perspectives, surprises and “pull”. How can this be achieved and how to direct entrepreneurs along such a path? Development efforts can encourage entrepreneurs to discover their own personal strengths and to turn them into products and services that can be sold.

In conclusion The success of craft and design entrepreneurs revolves around good products, ability to deliver the goods, distribution and pricing, flow of operations, interaction with customers and the recognition of the maker (see Johnsson & Äyväri 1996). The messages in the surveys can be summarised as follows: The activity is all about interaction between the entrepreneur and customer, the entrepreneur’s ability to discover and understand the customer’s needs and meet them with outstanding product and service solutions. Entrepreneurs also need to find ways to make their products and themselves visible. All this requires good interaction skills. It can be difficult to make it on one’s own and few people are masters of all things. Entrepreneurs who are

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experts in their profession and enthusiastic about their work are in the heart of it all. It is necessary for development efforts to look at the company’s operations as a whole. The Finnish survey examined marketing from several perspectives. These perspectives were summarised by Net Effect, which carried out the survey, in four main messages: - Entrepreneurs are quite self-confident of their know-how whereas consumers, buyers, business advisors and project managers are more critical about the operations and see more room for improvement and new opportunities. - Secondly, the need for business development in the branch is all-encompassing: issues, which, at first glance, might seem to be problems in sales and marketing, are equally problems linked to products, product development and manufacturing processes. - Thirdly, the greatest marketing challenges are improving the communication of companies in the branch, identifying new customer groups and improving customer orientation. Communication includes better accessibility and visibility of the companies. - The fourth main result is the importance of websites as the primary marketing tool for small enterprises. Some enterprises still invest in traditional, expensive print brochures instead of web presence. This suggests a need to change the way of thinking and also a lack of web skills. Based on the surveys, we now know a lot about how craft and design products are sold and marketed. We also know something about things that need to be improved. How to proceed? Many of the methods used are still viable in the future but established practices should also be called into question. Entrepreneurial skills can be strengthened with the help of existing business services. Information on changing markets and new customer groups is collected by various research organisations. This information can be interpreted and made available to entrepreneurs, which will form the basis for new product ideas. We also need ways to support entrepreneurs in their product development process. An issue already listed in many previous reports, improving visibility, requires further action. We need business services, their development and ensuring their accessibility. The Internet was mentioned as the strongest future trend in marketing. Marketing on the web also requires a variety of skills. Established in 1997, the Finnish Craftnet web service has been a pioneer in developing web-based activity, training entrepreneurs and producing study materials. The need for this service will not diminish in the future. An entrepreneur cannot monitor and follow the staggering pace of developments and react to the necessary changes alone. It might be wise to invest in one powerful telescope instead of several small binoculars. As entrepreneurs need to make an effort to listen to their customers and their needs, so developers need to make an effort to see how entrepreneurs work and how they can be supported. Development efforts can also be international. The respondents to the European survey were asked about their willingness to co-operate and about possible co-operative and joint efforts. Twelve of the thirteen countries that responded to the survey expressed an interest in cooperation. The topics that stirred most interest were international development projects, exhibitions and fairs, and exchange of information. Nearly half of the respondents were also willing to engage in online shop co-operation.

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Had we a good telescope, what would craft and design branch marketing look like in 2020? Or should we end with the fact that the craft and design branch constitutes a significant part of business activity in the creative branch? It is a branch that produces unique, individual, durable products and services for the benefit and delight of people.

Sources Crafts Council of Ireland. 2006. Stopress jan/feb 06, 4–6. Kilkenny. Conroy Consulting analysis. 2005. Forum consumer research. Ireland. Harjula, Petteri. 2006. Verkkoliiketoiminnan tulevaisuuden näkymät. Tervonen, Taina (ed.) Taito Craftnet -projekti 2004–2007. Helsinki: Finnish Crafts Organization Taito, 33–36. Johnson, Raul & Äyväri, Anne. 1998. Menestyvä käsityöyrittäjä. Helsinki: Finnish Crafts Organization Taito. Kälviäinen Mirja. 2005. Matkakartta hyvinvointikäsityöhön. Kälviäinen, Mirja Käsityö - yrittäjyys – hyvinvointi. Uusia liiketoimintapolkuja. Ministry of Trade and Industry. Ministry of Trade and Industry publications 9/05, 15–33. Levison, Jay Conrad. 1997. The Way of the Guerrilla. Achieving Success and Balance as an Entrepreneur in the 21st Century. Boston and New York: Houghton Mifflin Company. Levison, Jay Conrad & Rubin, Charles. 1995/1996. Guerrilla Marketing on the Internet. The Complete Guide to Making Money On-line. London: Judy Piatkus. Luutonen, Marketta & Äyväri, Anne. 2002. Käsin tehty tulevaisuus. Näkökulmia käsityöyrittäjyyteen. Helsinki: Sitra and Finnish Crafts Organization Taito. Luutonen, Marketta. 2006. Pajalta verkkoon ja asiakkaille - käsityöalan yritysten parhaita markkinointikeinoja. Verkkoliiketoiminnan tulevaisuuden näkymät. Tervonen, Taina (ed.) Taito Craftnet -projekti 2004–2007. Helsinki: Finnish Crafts Organization Taito, 50–56. Parantainen, Jari. 2007. Sissimarkkinointi. Helsinki: Talentum. Ruohomäki, Harri. (ed.) 2000. Käsintehty brandi. Käsi- ja taideteollisuusyrittäjän käsikirja. Helsinki: Finnish Crafts Organization Taito and Sitra. Snell, Pipsa. 2002. Kvalitatiivinen tutkimus kuluttajien suhtautumisesta suomalaisten käsityöyrittäjien tuotteisiin. Luutonen, Marketta & Äyväri, Anne (ed.) Käsin tehty tulevaisuus. Näkökulmia käsityöyrittäjyyteen. Helsinki: Sitra and Finnish Crafts Organization Taito, 235–244. Taitomarkkinointiselvitys. 2007. Net Effect and Finnish Crafts Organization Taito. Tervonen, Taina. 2004-2006. ‘Craftnet product of the month and its maker’ interviews. Published at www.suomentaitoverkko.fi. Äyväri, Anne. 2000. Käsityöyrityksen markkinointi. Helsinki: Finnish Crafts Organization Taito.

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APPENDIX 1 Respondents 1) Centre of cultural initiatives, Russia (Souvenir products developing project) http://www.museums.karelia.ru/ 2) The Scottish Arts Council Art & Craft Sector Development Project, Dumfries & Galloway Council, Scotland http://www.scottisharts.org.uk 3) TruePotential http://www.truepotential.ie Crafts Council of Ireland http://www.ccoi.ie/ 4) Norwegian Folk art and Craft Association http://www.husflid.no 5) Svenska Hemslöjdsföreingarna Riksförbund/Svensk Slöjd AB http://www.hemslojden.org 6) Hantverk og Hönnun, Island http://www.handverkoghonnun.is/ 7) Asociación de Creadores Textiles de Madrid http://www.creadorestextiles.org/ 8) The Heritage House, Hungary http://www.hagyomanyokhaza.hu 9) Association of Hungarian Folk Artists http://www.nesz.hu 10) SEMA / Societe d'Encouragement aux Métiers d'Aty http://www.eurosema.com/ 11) Centre of Folkart Production, Slovakia http://www.uluv.sk 12) Estonian Folk Art and Craft Union http://www.folkart.ee/eng/ 13) Kuratorium Österreichishes Heimatwerk 14) Finnish Craft Organization Taito http://www.taitogroup.fi

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APPENDIX 2 INTERNATIONAL SURVEY ON CRAFT AND DESIGN PRODUCT AND SERVICE MARKETING

Dear Recipient, We invite you to participate in our international survey on craft and design product marketing. The aim of this questionnaire is to provide information on how craft and design products are marketed in Europe at the moment, what changes or needs for changes are evident and what viable forms of marketing might be available in the future. The results of the survey will be published in spring 2008. The survey is carried out by the Finnish Crafts Organization. Please return the completed questionnaire by 28 September 2007. Thank you for your co-operation! Kind regards The Finnish Crafts Organization e-mail [email protected] tel. +358 9 7519 1929

1.1 What are the most important craft and design products sold in your domestic market? [] [] [] [] [] [] []

Furniture (tables, lamps, chairs, etc.) Giftware (bowls, silverware, etc., bought as a gift) Homeware (pottery, home textiles, etc., bought for personal use) Jewellery (pendants, rings, bracelets, etc.) Fashion (contemporary, special occasion clothing) Accessories (belts, bags, scarves, etc.) Other, please specify ______________________________________________

What are the most important craft and design services sold in your domestic market? [] [] [] [] [] []

Experience services for cultural tourism (work demonstrations, etc.) Welfare services (workshops for special groups, etc.) Courses (summer courses, introductory courses, etc.) Workshop services Guided tours introducing the entrepreneur’s workshop Other, please specify ______________________________________________

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1.3 What do you consider to be the currently most important sales channels for craft and design products for companies in your country? How would you rate the following?

DIRECT SALES TO CUSTOMERS of very moderate of minor important important importance importance

not applicable

1. Sales at the manufacturer’s own shop or workshop

()

()

()

()

()

2. Domestic fairs and events

()

()

()

()

()

3. International fairs and events

()

()

()

()

()

4. Online shop catering for domestic customers so that products are bought directly via the Internet

()

()

()

()

()

5. Online shop catering for international customers so that products are bought directly via the Internet

()

()

()

()

()

6. Domestic contacts and orders received via the Internet

()

()

()

()

()

7. International contacts and orders received via the Internet

()

()

()

()

()

DIRECT BUSINESS TO BUSINESS SALES

very important

important

()

()

-

of moderate of minor not importance importance applicable ()

()

()

DOMESTIC RETAIL DISTRIBUTION (RETAIL SALES POINTS)

very important

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of moderate of minor not important importance importance applicable

8. Specialist shops for craft and design product

()

()

()

()

()

9. Jewellery shops

()

()

()

()

()

10. Department stores

()

()

()

()

()

11. Gift shops

()

()

()

()

()

12. Museum shops

()

()

()

()

()

13. Galleries

()

()

()

()

()

14. Tourist businesses, tourist shop

()

()

()

()

()

15. Retail via the Internet

()

()

()

()

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-

very important

important

()

()

of moderate of minor not importance importance applicable ()

()

()

very important

important

of moderate of minor not importance importance applicable

Other, please specify

()

()

()

()

()

Other, please specify

()

()

()

()

()

OTHER SALES CHANNELS

1.5 What do you consider to currently be the greatest challenges in marketing craft and design products and services? ______________________________________________ ______________________________________________ ______________________________________________ ______________________________________________

1.6 In your opinion, how great is the general demand for craft and design entrepreneurs to develop and renew their product selection? extremely great ()

great need ()

moderate need ()

some need ()

no need at all ()

don't know ()

In your opinion, how great is the general demand for craft and design entrepreneurs to develop and renew their service provision? extremely great ()

great need ()

moderate need ()

some need ()

no need at all ()

don't know ()

What kind of products and services do you think are lacking in the market, in the development of which you would like to invest in the future? ______________________________________________ ______________________________________________ ______________________________________________ ______________________________________________

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1.7 How well do you think the entrepreneurs in the field master the following? very well

not at all

don’t know

Originality of products and/or services

()

()

()

()

()

()

Quality of products and/or services

()

()

()

()

()

()

Consistency in the quality of products and/or services

()

()

()

()

()

()

Production (capacity)/product availability

()

()

()

()

()

()

Product and service development

()

()

()

()

()

()

Customerorientedness and identification of various customer groups

()

()

()

()

()

()

1.8 What kind of marketing training do you think companies would require?

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extremely great need

great need

some need

small need

no need

don’t know

Company image development

()

()

()

()

()

()

Identity training (recognition and utilisation of the company’s own strengths)

()

()

()

()

()

()

Identification of new market areas and customer groups and marketing planning

()

()

()

()

()

()

Communications: communications planning and campaign communications to the media and customers

()

()

()

()

()

()

Digital photography and image processing

()

()

()

()

()

()

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TAITOMARKKINOINTI-SELVITYS Product information on packaging and online communications

()

()

()

()

()

()

Event marketing

()

()

()

()

()

()

Online communication design (company website)

()

()

()

()

()

()

Development of online communication

()

()

()

()

()

()

Domestic Internet sales planning (company's own online shop)

()

()

()

()

()

()

Development of online shops

()

()

()

()

()

()

New online media tools (blogs, browser advertising, newsletters, etc.)

()

()

()

()

()

()

Network marketing training

()

()

()

()

()

()

Peer training in marketing (e.g. sharing marketing experiences and new ideas between entrepreneurs)

()

()

()

()

()

()

Commercialisation training, e.g. products and services linked to crafts-based tourism, companies’ staff coaching or welfare services

()

()

()

()

()

()

Pricing

()

()

()

()

()

()

Other, please specify

()

()

()

()

()

()

1.9 Is your organisation interested in international co-operation? ( ) Yes ( ) No

What kind of co-operation are you interested in?

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[] [] [] [] [] []

Fairs Exhibition activities Communications (e.g. electronics newsletter between organisations) Online business (e.g. joint website) International development projects Other, please specify ______________________________________________

2.1 What have been the best models for developing the marketing of craft and design products and services? What kind of good practices have been introduced through, for example, project activities when developing the marketing of products of services? ______________________________________________ ______________________________________________ ______________________________________________ ______________________________________________ 2.2 In your opinion, what will be the future trends in the marketing of craft and design products and services? In your opinion, what will the significance of, for example, online trade be in five years’ time? ______________________________________________ ______________________________________________ ______________________________________________ ______________________________________________ 2.3 What development measures is your organisation planning to adopt in order to develop the marketing of craft and design entrepreneurs in the next five years? ______________________________________________ ______________________________________________ ______________________________________________ ______________________________________________

2.4 Has there been a survey in your country on craft and design entrepreneurship? ( ) Yes ( ) No

survey... Carried out in (year) ______________________________________________ Available at the web address ______________________________________________ Can be ordered in print from (address) ______________________________________________ Survey can be ordered... [ ] in Swedish [ ] in English [ ] Other, please specify ______________________________________________

3.1 Organisation name ______________________________________________

Which aspects does your organisation’s activities cover? [ ] Fairs

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TAITOMARKKINOINTI-SELVITYS [] [] [] [] [] [] [] [] [] [] [] []

Exhibitions Shops Craft courses Workshops Training Tourism Publishing Expert services and consultation Development projects Interest representation Communications Other activities, please specify ______________________________________________

3.3 How many people are involved in crafts/design for a living? ______________________________________________ ______________________________________________ ______________________________________________ ______________________________________________

3.4 What are the most important bodies developing the craft and design entrepreneurship in your country? ______________________________________________ ______________________________________________ ______________________________________________ ______________________________________________

3.4.1 What are the other important bodies promoting the craft and design field in your country? ______________________________________________ ______________________________________________ ______________________________________________ ______________________________________________

3.5 Does the public sector support the activities of your organisation? ( ) No ( ) Yes, the support covers (%) ______________________________________________

4.1 What business services does your organisation offer? [] [] [] [] [] [] [] []

Telephone service Consultation Training, courses Online services (information and/or marketing services) Marketing services (fairs, events, etc.) Publications Interest representation Other, please specify ______________________________________________

4.2 Which of your services have companies found particularly important? ______________________________________________

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______________________________________________ ______________________________________________ ______________________________________________

4.3 The human resources of your organisation involved in business service activities totals (number) persons. ______________________________________________

4.4 Are your services fee-based?

( ) Yes ( ) Yes, partly ( ) No

4.5 Do you work in co-operation with other actors providing business services? ( ) Yes ( ) No

With, for example (web address)

______________________________________________ ______________________________________________ ______________________________________________ ______________________________________________

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APPENDIX 3 Press release 11 Feb 2008

Craft products rule OK! The most important areas for development for craft and design entrepreneurs in Finland and Europe are identifying new markets and customer groups and drawing up marketing plans. The biggest challenge in marketing is communication, both on the web and in other media. In June and July 2007, the Finnish Crafts Organization conducted online surveys on the marketing of products and services targeting craft and design entrepreneurs, consumers, buyers, and management consultants. The surveys were intended to chart the craft and design marketing situation in Finland and the need for entrepreneurs to improve their marketing skills. In addition to the surveys, there were two group interviews with craft and design entrepreneurs. The surveys were administered by Net Effect Oy in cooperation with the Finnish Association of Designers Ornamo, which helped with planning. In October 2007, the Finnish Crafts Organization also ran a survey on European crafts organizations. Confidence and need for improvement The surveys revealed that craft and design entrepreneurs have confidence in their own skills and the customer-oriented nature of their products. Customers and buyers, on the other hand, felt that products could be more customer-oriented. The customers who bought the most believed that craft and design products are of high quality. The most important factors influencing the decision to buy included compatibility with one’s own style, quality, and practicality. The main places to buy craft products were craft speciality shops and shops and workshops run by the entrepreneurs. Online shopping received a mixed response. As many as 13 per cent of the respondents thought that online shopping is very important and 40 per cent said that it is very important or important. Consumer respondents encouraged entrepreneurs to have confidence in their skills and to communicate more. The survey showed that craft and design entrepreneurs need education and training in identifying new markets and customer groups and drawing up marketing plans. It was also felt that improving communications is a big challenge. Entrepreneurs felt that their weakest points were online communications and communications with the media. Responses from the entrepreneurs themselves indicated that in the next two years they would focus their marketing efforts on exhibitions, improving their corporate image, and updating websites. Consumer respondents expected entrepreneurs to focus on improving their websites, participating in trade fairs and sales events, and communicating with the media. The Taito Marketing project was supported by the Ministry of Trade and Industry and the European Social Fund. Further information: Taina Tervonen, the Finnish Crafts Organization [email protected] http://www.craftnet.fi

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© The Finnish Crafts Organization Taito