Market Analysis Summary
According to Pam Danziger, President of Unity Marketing, the collectible doll industry generated $3 billion in retail sales in 2000. The gift industry, which includes general gifts, collectibles, stationery and greeting cards, generated $54 billion in sales in 2002. As predicted by Unity Marketing, "the future of the gifts and home accents market is positive for the next several years." Source:Unity Marketing, The Home Report 2001:The Market, The Competitors, The Trends
4.1 Market Segmentation
The ideal customer we expect to serve is:
- Middle to Upper Class
- Primarily Female
- 30-75 Years of Age
- Quality Conscious
- Value Conscious
- Family Oriented
We will attract these customers by offering unique and uncommon product selections not found in the mass-market retail stores.
4.2 Industry Analysis
- More and more consumers are seeking independent retailers that offer them the feel of home with a more personalized shopping experience.
- As consumers become more time-deprived, they are looking to shop at stores whose service offerings are as equal in quality and value to their products.
4.2.1 Competition and Buying Patterns
Brand name products sell well in stores that maintain a good selection, good location, and knowledgeable, friendly employees. These are the most important factors when selling collectibles and gifts.
There is only one store in the Lexington area that carries a wide variety of collectible dolls. However, the doll inventory only makes up about 25% of the total inventory. We do not consider this store serious competition because their lease for the 4800 sq. ft. store expires in March, 2004, and it is rumored the business will not renew the lease.
Other stores in the Central Kentucky area carry one or two lines of dolls but do not offer a wide variety of collectible doll lines. We intend to offer many different doll lines, doll accessories, personalized knowledgeable service, and a variety of other unique gift merchandise.
The Internet offers dolls at discount prices. However, most of the merchandise is retired or discontinued lines that the manufacturers sell in bulk at discount wholesale prices. These are not the products we intend to carry in Classique Gifts Etc.
We intend to develop a web page at some point, probably in year three to market our merchandise on the Internet.