1. CHA Attitude & Usage Study 2008 Annual Report  12 Months Ending 12/31/2008

2. Agenda CHA A&U Study Methodology Executive Summary
Recommendations for CHA Members
Detailed Findings
What’s the State of the Industry Today?
What Are the Key Trends?
Taking a Closer Look the Top Five Craft Segments
How Do Crafters Differ Attitudinally and Behaviorally?
How Do Light, Moderate and Heavy Crafters Differ?
How Do Beginner, Intermediate and Expert Crafters Differ?
Is Shopping Behavior Changing?
How Can You Drive Craft Spending in a Tougher Economy?
Appendix

3. CHA A&U Study Methodology

4. CHA Attitude & Usage Study Methodology
Sample based study
Screener
2x per year sent to 50,000 households to identify (25,000 twice a year)
Crafting Households
Geographic skews by 4 broad categories
West
Midwest
Northeast
South
Mail panel survey
Send to craft participants identified in the screener
500 completed interviews per month
Tracks consumer attitudes and purchase behaviors in the US
CHA conducts the yearly Attitude & Usage study of the US craft & hobby market.
Quarterly updates available for free to CHA members.
This research offers retailers and manufacturers important information to help for future planning and business growth:
Emerging trends in the industry
Shopping behaviors including internet purchasing
Consumer attitudes and behaviors
Presentation includes data for 12 months ending November 30, 2006.

5. CHA Attitude & Usage Study Methodology
Study captures information for business planning:
Approximations for past year and trend vs. year ago
Industry sales overall by segment and shopping channel
Household participation
Cross-participation
Shopping behavior, including internet purchasing
Consumer attitudes and behaviors
CHA conducts the yearly Attitude & Usage study of the US craft & hobby market.
Quarterly updates available for free to CHA members.
This research offers retailers and manufacturers important information to help for future planning and business growth:
Emerging trends in the industry
Shopping behaviors including internet purchasing
Consumer attitudes and behaviors
Presentation includes data for 12 months ending November 30, 2006.

6. CHA Attitude & Usage Study Overview (Continued)
Data provided quarterly for 12 month time periods:
About 500 completed interviews per month
About 6,000 completed interviews per year
Craft participation rates are captured bi-annually to effectively measure the current size of the industry. This is based on 25,000 responses
CHA conducts the yearly Attitude & Usage study of the US craft & hobby market.
Quarterly updates available for free to CHA members.
This research offers retailers and manufacturers important information to help for future planning and business growth:
Emerging trends in the industry
Shopping behaviors including internet purchasing
Consumer attitudes and behaviors
Presentation includes data for 12 months ending November 30, 2006.

7. 4 broad categories Needle & Sewing Crafts Painting & Finishing Crafts
Floral Crafts
General Crafts

8. 39 craft segments are monitored in four broad categories cont.
Needle & Sewing Crafts
Cross-stitch/Embroidery
Knitting
Crocheting
Needlepoint/Plastic Canvas
Other Needlecrafts
Apparel/Fashion Sewing
Craft Sewing
Home Décor Sewing
Quilting
Other Sewing Crafts
Painting & Finishing Crafts
Art & Drawing
Decorative Painting
Fashion Fabric Painting & Decorating
Home Décor Painting/Accessories/Finishing
Stenciling
Other Painting & Finishing Crafts
Floral Crafts
Floral Arranging
Wedding/Bridal
Wreath-making/Floral Accessorizing
Other Floral Crafts

9. 39 craft segments are monitored in four broad categories.
General Crafts
Paper Cutting
Scrapbooking /Memory Crafts
Rubber Stamping
Card Making
Other Paper Crafts
Beading/Bead Crafts
Cake Decorating
Candle Making
Ceramics
Doll Making
Do-it-yourself Framing
Glass Crafting
Jewelry Making
Leather Crafts
Macramé
Non Floral Wreaths
Potpourri Making
Woodworking
Other General Crafts

10. What the Research was Designed to Provide
The A&U successfully provides CHA with:
An overview of crafting households:
Demographics
Behaviors
Attitudes
A means of determining and tracking household participation rates in the US by craft and hobby segment
Shows trends over time
Documentation of shopping patterns by retail channel
Guidelines for sizing the market
Relative size of individual categories and market as a whole
On behalf of CHA, Ipsos conducted the CHA Attitude & Usage study in 2000, 2001 and The study resumed in 2005.
The main objectives of the survey are to:
Provide an estimate of the industry size (sales and participants) for the Craft & Hobby Industry and by segment.
Estimate and track sales by distribution channel.
Determine and track participation rates in the US by craft & hobby segment.
Provide an in-depth analysis for crafters:
Demographic; Attitudinal; Behavioral.
Document the shopping patterns of the US Craft & Hobby Market (where participants get their ideas, outlets where supplies are purchased, how often they shop for the segment, products they purchase, price paid for each item).

11. What the Research Was NOT Designed to Provide
The survey provides a wealth of data, but is not designed to:
Be a substitute for scanner data
Spending behavior is self-reported and is accurate only within a broad range
Dollar volumes have a wide margin of error, especially for individual craft segments
Changes reported over time can only be guidelines
Distinguish between growth components
Growth vs. YAG is driven by 1) real growth, 2) inflation or 3) product price increases
On behalf of CHA, Ipsos conducted the CHA Attitude & Usage study in 2000, 2001 and The study resumed in 2005.
The main objectives of the survey are to:
Provide an estimate of the industry size (sales and participants) for the Craft & Hobby Industry and by segment.
Estimate and track sales by distribution channel.
Determine and track participation rates in the US by craft & hobby segment.
Provide an in-depth analysis for crafters:
Demographic; Attitudinal; Behavioral.
Document the shopping patterns of the US Craft & Hobby Market (where participants get their ideas, outlets where supplies are purchased, how often they shop for the segment, products they purchase, price paid for each item).

12. What the Research Was NOT Designed to Provide (Continued)
Nor is the survey designed to:
Assign attitudes and shopping behavior by:
Specific crafting segments (e.g., Quilting, Jewelry-Making, etc.)
Individual demographic targets
Information is collected at the household level only
Most households participate in multiple types of crafts
On behalf of CHA, Ipsos conducted the CHA Attitude & Usage study in 2000, 2001 and The study resumed in 2005.
The main objectives of the survey are to:
Provide an estimate of the industry size (sales and participants) for the Craft & Hobby Industry and by segment.
Estimate and track sales by distribution channel.
Determine and track participation rates in the US by craft & hobby segment.
Provide an in-depth analysis for crafters:
Demographic; Attitudinal; Behavioral.
Document the shopping patterns of the US Craft & Hobby Market (where participants get their ideas, outlets where supplies are purchased, how often they shop for the segment, products they purchase, price paid for each item).

13. Executive Summary

14. Executive Summary What Is the State of the Industry?
Given the magnitude and scope of the economic situation at the end of 2008, it is not surprising that the craft and hobby industry felt some of the impact.
Household participation rates remain at levels comparable to 2007, although sales have declined by 14%.
While crafters are completing fewer projects, per project spending has held fairly steady overall with the exception of the General Crafts category (-11% vs. YAG).
As is the case for the retail industry as a whole, some channels have fared better than others.
Fabric and Craft Stores, Discount Stores and Dollar Stores have sustained sales versus 2007 as consumers are looking for ways to save money/make crafts for more practical purposes (e.g., apparel).
While Craft Chain stores remain the market leader, sales in this channel have fallen -15% since last year.
The Local Craft Store has suffered the brunt of the economic impact, and perhaps due to closures, is down by 57%.
Higher gas prices in mid-2008 may have been a contributing factor to the substantial increase seen for Internet sales (+19% year-over-year).

15. Executive Summary
There are some craft segments that seem to be less affected by the recession than others. Scrapbooking remains the largest individual segment overall, although sales are somewhat softer. Two of the top five craft segments saw sales gains in 2008.
Scrapbooking/Memory Crafts (-3%)
Art & Drawing (-8%)
Floral Arranging (+21%)
Crocheting (+17%)
Quilting (-2%)
There is some overlap in participation between the top three craft segments, and these crafters seem to be seeking more variety in the crafts they participate in. However, Crocheters and Quilters tend to stick to other Needle & Sewing projects rather than trying new crafts in other craft categories.
Cross-Stitch/Embroidery and Apparel/Fashion Sewing are popular with participants in all of the top five craft segments.
Those who participate in the top three craft segments are also likely to participate in Card Making.

16. Executive Summary What Are the Key Trends?
Despite the economy, there are growth opportunities within the industry. Craft segments with sales of $100 mm or more that showed the greatest sales growth are:
Needlepoint/Plastic Canvas (+29%)
Floral Arranging (+21%)
Wreathmaking/Floral Accessorizing (+18%)
Crocheting (+17%)
Stenciling (+7%)
When crafting households were asked what NEW crafts they expect to try in the upcoming year that they currently do not participate in, the segments generating the greatest interest were:
Decorative Painting (3.9%)
Scrapbooking/Memory Crafts (3.2%)
Home Décor Sewing (2.9%)
Needlepoint/Plastic Canvas (2.9%)
Home Décor Painting/Accessorizing/ Finishing (2.9%)

17. Executive Summary
Some craft segments seem to be losing popularity, or have been impacted by the economic down turn. Those segments, with sales of $100 mm or greater that saw the greatest declines in 2008 were:
Ceramics (–45%)
DIY Framing (–41%)
Candle Making (–38%)
Rubber Stamping (–37%)
Wedding/Bridal (–31%)
How Do Crafting Households Differ Attitudinally and Behaviorally?
This research has identified six unique household segments. Each differs in terms of behavior, demographics and attitudes toward crafting. The six segments are:
Social Scrapbookers – 25% of crafters
Home Decorators – 24% of crafters
Stitch & Gifters – 18% of crafters
Sew Prouds – 15% of crafters
Enthusiasts – 10% of crafters
Floral Enthusiasts – 8% of crafters

18. Executive Summary
Understanding the household segments is important when developing packaging, new products, communications and promotional strategies.
Enthusiasts are the most important household segment, and if marketing efforts are directed towards them, it will likely encourage other crafters as well. However, it is important to bear in mind that projects need to be geared towards all experience levels as even Enthusiasts will be Beginners for some types of crafts.
Enthusiasts (10% of crafters), participate in all types of crafts (11 craft segments on average), and account for a disproportionate amount of spending (20%).
On the other hand, Stitch & Gifters (18% of crafters), participate in only 2 types of crafts on average - mainly in Cross-Stitching and Embroidery, and spend less than their size would suggest (9% of total spending). This group is better targeted via Enthusiasts.
How Do Crafters Differ by the Number of Projects They Complete?
Crafters can be divided into three broad groups based on the number of projects they complete on an annual basis:
Light Crafters complete 1-5 projects per year (32% of crafters)
Moderate Crafters complete 6-20 projects per year (42% of crafters)
Heavy Crafters complete 21+ projects annually (26% of crafters)

19. Executive Summary
Regardless of how many projects a Crafter completes, there are several craft segments that have broad based appeal:
Scrapbooking/Memory Crafts
Art & Drawing
Home Décor Painting/Accessorizing/Finishing
Quilting
Apparel/Fashion Sewing
Floral Arranging
There are, however, some variations among these groups.
Woodworking, Cross-Stitch/Embroidery and Crocheting are more popular among Light and Moderate Crafters.
Heavy Crafters are more apt to participate in Jewelry, Beading and Wedding/Bridal crafts.

20. Executive Summary
Not surprisingly given the number of projects they complete, Heavy Crafters are the biggest spenders, and account for 62% of industry sales. When Heavy Crafters cut back, it has a significant impact.
Spending was down by 19% among this group in 2008 compared to 5-6% declines among Light and Moderate Crafters.
It is possible that Heavy Crafters had sufficient supplies/stock on hand to cut back somewhat on purchasing.
Still, given Heavy Crafters enthusiasm, encouraging them to try new types of crafts may motivate new spending.

21. Executive Summary How Do Crafters Differ by their Level of Expertise?
The majority (64%) of crafters consider themselves to be “intermediate” in terms of expertise, while another 20% say they are “beginners”. This has important implications for marketing and product development.
Craft projects/products need to be designed for varying levels of expertise, and should be appropriately marked on packages and in store displays.
With few exceptions, there can be no “one size” fits all.
There are four craft segments that are popular among crafters at all skill levels:
Scrapbooking/Memory Crafts
Art & Drawing
Crocheting
Floral Arranging

22. Executive Summary
As might be expected, there are variations by degree of expertise in the types of crafts consumers engage in.
Home Décor Painting/Accessorizing/Finishing and Quilting are among the top ten crafts for Beginners and Intermediates.
Beginners are drawn to categories such as Doll Making, Home Décor Sewing, Needlepoint/Plastic Canvas and Fashion Fabric Painting and Decorating.
Card Making, Apparel/Fashion Sewing, Beading/Bead Crafts are in the top ten for Intermediate Crafters.
Woodworking is popular among both Expert and Intermediate Crafters.
Expert Crafters are participating in Wedding/Bridal, Decorative Painting, Jewelry Making and Knitting.

23. Executive Summary
In the current economy, Beginners and Intermediate Crafters are most apt to be cutting spending. On the other hand, Experts continue to spend as usual.
Spending was down by 17-22% among Beginners and Intermediates compared to a 1% decline for Experts.
The challenge in 2009 will be to provide enough intriguing products/projects to draw Beginners and Intermediates into new categories, or offer easier to complete/shorter projects to encourage trial in segments that are now dominated by Experts.

24. Recommendations for CHA Members

25. Action Steps/Opportunities
Remain sensitive to price due to the economic climate but don’t focus solely on price; remind shoppers about the joys of crafting
Unadvertised sales are also a key influence on purchasing decisions
Don’t limit consumers to brick & mortar hours – Online sales are continuing to increase
People are busy, stores are closing - making around-the-clock online shopping available can help sustain sales. Strive for online success with:
Fun websites with plenty of inspiration ideas
Fast and affordable shipping
Shopping lists, “Items you will need to complete this project” for one-click shopping
Reward your best customers
Heavy Crafters account for a largely disproportionate share of sales
Consider “Frequent Crafter” reward programs to support, and possibly grow, this segment
Grow craft segments by leveraging store layouts to best reflect the cross-participation that exists
Cross-Stitch Embroidery, while not a leading craft, has a high degree of cross participation among the five leading crafts, and is the number two craft among Experts.

26. Steps CHA Members Can Take Now
Use effective messaging that reflects the crafters needs
A factor analysis revealed eight primary reasons for crafting. To sustain sales it is important to reinforce these quality-of-life messages:
Sense of Accomplishment
Relaxation
Memory Keeping
Health
Economy/Value
Recommended by Friends/Family
Enables Spending Time with Others
Interaction with Children
Emphasize gifting and seasonal crafting
53% of all crafting HH’s report that they make handcrafted items for gift giving.
Generate new entries to the industry by promoting craft sets/packages as great gifts for friends and family

27. Steps CHA Members Can Take Now
Remind consumers that crafting is fun!
A great way to spend time with kids/family/friends to share a common activity or interest and build relationships
Life is stressful – crafting provides a way to relax
Crafting is a great creative outlet

28. Detailed Findings

29. What’s the State of the Industry Today?

30. Market Size = $27,297 Million (±11%)
The craft and hobby industry has not been immune to the current economic crisis. A 14% decline in retail sales has taken place overall.
U.S. Retail Sales (Million $)
- Among Total U.S. Households -
$3,333 Million
-6% vs. $3,538 Million YAG
$10,267 Million
-21% vs. $13,027 Million YAG
$6,432 Million
-12% vs. $7,285 Million YAG
Concentrate on the general craft category – call-out Scrapbooking
$7,266 Million
-9% vs. $7,949 Million YAG
Market Size = $27,297 Million (±11%)
-14% vs. $31,799 Million YAG
Projected Base: 111 Million Total US Households
Spending behavior is self-reported by consumers,
and is accurate only within certain ranges.
Data based on 12 months ending December 31, 2008

31. - % of Total U.S. Households -
While most participation rates remain virtually unchanged since 2007, General Crafts had the most notable drop-off.
Incidence of Crafting
- % of Total U.S. Households -
Point Change
vs. YAG:
-0.8 pts
-5 pts
-1.2 pts
-1.5 pts
-1.2 pts
Participation rates are based on screening data. Screening is conducted among the Ipsos Insight Mail Panel to identify crafters.
On an annual basis, the screener is sent to 50,000 households (25,000 twice a year in May and Nov).
Projected Base: 111 Million Total US Households

32. Average Annual Craft Spending - By Crafting Category -
Annual HH spending declines were seen across all crafting categories, except Floral Crafts.
Average Annual Craft Spending
- By Crafting Category -
% Change
vs. YAG:
-14%
-11%
-6%
-8%
±0%
Data based on 12 months ending December 31, 2008
Projected Base: 63 Million Total US Crafting Households

33. Average Per Project Spending - By Crafting Category -
Spending on the average project held steady from 2007, with exception of General Crafts, which dropped 11%.
Average Per Project Spending
- By Crafting Category -
% Change
vs. YAG:
-1%
-11%
+4%
+3%
+2%
Data based on 12 months ending December 31, 2008
Projected Base: 63 Million Total US Crafting Households

34. Average Number of Projects - By Crafting Category -
While crafters spent nearly as much time on crafting (per week) as they did the previous year, they completed fewer craft projects, especially in the Needle and Sewing and Painting and Finishing categories.
Average Number of Projects
- By Crafting Category -
Average Hours Spent Per Week
2007
2008
5.4
5.0
% Change
vs. YAG:
-13%
+1%
-9%
-10%
-1%
Data based on 12 months ending December 31, 2008
Projected Base: 63 Million Total US Crafting Households

35. Dollar Sales ($Million) % Change in total spending vs. YAG
Scrapbooking continues to generate the largest sales volume, but like many other segments, has declined year over year.
Dollar Sales ($Million)
% Change in total spending vs. YAG 1
Scrapbooking/Memory Crafts
$2,505
-3% 2
Art & Drawing
$1,795
-8% 3
Other Painting & Finishing*
$1,613
-13% 4
Floral Arranging
$1,509
+21% 5
Crocheting
$1,207
+17%
Top 5 Crafts – Dollar Sales
Talk about Scrapbooking and Card Making category – tie it back to Kids crafting
* Painting & Finishing Crafts other than Art & Drawing, Decorative Painting, Fashion Fabric Painting & Decorating, Home Décor Painting/Accessories/Finishing, Stenciling
Data based on 12 months ending December 31, 2008
Projected Base: 63 Million Total US Crafting Households

36. Incidence of Crafting By Region 12 Months Ending 12/31/08
Incidence of craft participation is similar regardless of region. However, craft spending is highest in the South.
Incidence of Crafting By Region 12 Months Ending 12/31/08
Midwest
Incidence of Crafting HH’s: 59%
General Crafts: 36%
Needle & Sewing Crafts: 32%
Painting & Finishing Crafts: 31%
Floral Crafts: 17%
Craft Spending: $6,906 Million
Northeast
Incidence of Crafting HH’s: 55%
General Crafts: 32%
Needle & Sewing Crafts: 28%
Painting & Finishing Crafts: 29%
Floral Crafts: 15%
Craft Spending: $4,550 Million
West
Incidence of Crafting HH’s: 58%
General Crafts: 37%
Needle & Sewing Crafts: 32%
Painting & Finishing Crafts: 30%
Floral Crafts: 15%
Craft Spending: $5,885 Million
South
Incidence of Crafting HH’s: 54%
General Crafts: 33%
Needle & Sewing Crafts: 27%
Painting & Finishing Crafts 28%
Floral Crafts: 17%
Craft Spending: $9,956 Million
Source: CHA Attitude & Usage Study
Projected Base: 63 Million Total US Crafting Households

37. What are the Key Trends?

38. Greatest % Segment Sales Growth vs. Year Ago
Some segments experienced notable growth, particularly the Needlepoint/Plastic Canvas segment.
Greatest % Segment Sales Growth vs. Year Ago
- Among Total U.S. Households -
Dollar Sales (Mill)
Segments > $100MM
$487
$1,509
$695
$1,207
$258
Data based on 12 months ending December 31, 2008
Projected Base: 63 Million Total US Crafting Households

39. Many segments showed declines vs. year ago
Greatest % Segment Sales Decline vs. Year Ago
- Among Total U.S. Households -
Dollar Sales (Mill)
Segments > $100MM
$153
$367
$219
$475
$825
$854
Data based on 12 months ending December 31, 2008
Projected Base: 63 Million Total US Crafting Households

40. Even in the current economy, new growth opportunities are emerging.
When crafting households were asked what NEW crafts they expect they will try in the upcoming year that they currently do not participate in, the segments generating the greatest interest were:
Decorative Painting (3.9%)
Scrapbooking/Memory Crafts (3.2%)
Home Décor Sewing (2.9%)
Needlepoint/Plastic Canvas (2.9%)
Home Décor Painting/Accessorizing/ Finishing (2.9%)

41. Taking a Closer Look at the Top Five Craft Segments

42. Dollar Sales ($Million)
Scrapbooking/Memory Crafts, Art & Drawing, Floral Arranging, Crocheting and Quilting were the top five crafts in 2008.
Dollar Sales and US HH Participation
Dollar Sales ($Million)
% US HH Participation 1
Scrapbooking/Memory Crafts
$2,505
16% 2
Art & Drawing
$1,795
11% 3
Floral Arranging
$1,509 9% 4
Crocheting
$1,207
14% 5
Quilting
$1,176 8%
Talk about Scrapbooking and Card Making category – tie it back to Kids crafting
Data based on 12 months ending December 31, 2008
Projected Base: 63 Million Total US Crafting Households

43. Scrapbooking/Memory Crafts
Crafting households participate in multiple craft segments. Cross-Stitch embroidery and Apparel/Fashion Sewing are common when looking at those crafts with the highest degrees of cross-participation.
Cross-Participation
Scrapbooking/Memory Crafts
Art & Drawing
Floral Arranging
Crocheting
Quilting
Cross-Stitch Embroidery
27%
26%
31%
38%
46%
Apparel/Fashion Sewing
23%
29%
28%
44%
Card Making
37%
18%
24%
Scrapbooking/Memory XX
36%
34%
21%
Craft Sewing
22%
42%
Rubber Stamping
25%
17%
15%
10%
Decorative Painting
13%
Wreathmaking/ Floral Acc.
12% 9%
Knitting
40%
16%
14%
Home Décor Sewing
* Crafts shaded in grey appear in the top five for cross-participation crafts

44. Summary of Shopping Behavior - Top Five Craft Segments -
The shopping behavior seen for crafters overall is also seen for the Top Five Crafts. Craft Chain and Discount Stores are the leading outlets. Quilters also frequent Fabric & Craft Stores.
Summary of Shopping Behavior
- Top Five Craft Segments -
Channel
Scrapbooking/Memory Crafts
Art & Drawing
Floral Arranging
Crocheting
Quilting
Craft Chain Store
44%
42%
46%
37%
28%
Discount Store
32%
38%
33%
41%
39%
Fabric & Craft Stores
13%
10%
15%
17%
31%
Average Minutes Spent in Store 30 31 33 29
Average Shop Visits Per Year 13 12 14
Talk about Scrapbooking and Card Making category – tie it back to Kids crafting
Regardless of the Top Five Craft Segments, crafters visit retailers approximately once a month and spend about ½ hour in the store per visit.
Data based on 12 months ending December 31, 2008

45. How Do Crafters Differ Attitudinally and Behaviorally?

46. - % of Crafting Households -
Six main household segments within the overall industry have been identified.
Household Segments
- % of Crafting Households -
Ipsos used a two-step clustering methodology which incorporates attitudinal, behavioral and socio-demographic measures to develop Household Segments.
Data based on 12 months ending December 31, 2008
Projected Base: 63 Million Total US Crafting Households

47. - % of Crafting Households -
Social Scrapbookers are the single largest household segment, followed by Home Decorators.
Household Segments
- % of Crafting Households -
Data based on 12 months ending December 31, 2008
Projected Base: 63 Million Total US Crafting Households

48. Household Segment Size and Share of Spend
Enthusiasts account for a disproportionate amount of spending. Stitch and Gifters spend less than would be expected based on segment size.
Household Segment Size and Share of Spend
CDI
140
202
123 44 52
121
Size
Share of Spend
Data based on 12 months ending December 31, 2008
Projected Base: 63 Million Total US Crafting Households

49. 10% of Crafting Households
Enthusiasts are heavy crafters who participate in all types of crafts and complete more than 30 craft projects a year. They shop more often than the average crafter.
Enthusiasts
10% of Crafting Households
Participate in all types of crafts (11 categories on average)
Mostly in: Scrapbooking/Memory Crafts (60%); Card Making (52%); Craft Sewing (44%); Home Décor Sewing (41%); Cross-stitch/Embroidery (43%); Art & Drawing (43%); Floral Arranging (49%); Cake Decorating (33%); Other Painting & Finishing (31%); Decorative Painting (36%); Other General Crafts (35%); Rubber Stamping (34%); Wreathmaking/Floral Accessorizing (32%); Other Sewing Crafts (30%); Other Paper Crafts (27%); Home Décor Painting/Accessorizing/ Finishing (28%); Paper Cutting (28%)
Spend more than average, shop more often and spend more time in stores.
Spend more than 7.2 hours per week on crafts and complete 32 projects per year.
Purpose of crafts: Home décor, holiday décor, personal use.
Shop more than expected in: Art stores, fabric and craft stores, craft fairs. Influenced by discount coupons and classes and free instructions.
Attitudes towards crafting:
I craft with my kids
I am a creative person
My children do crafts at home for fun
I like to learn new crafts
I saw a TV show/read an article that sparked my interest for crafting
Demographics
42% age 35-54
Households with children under 18 (52%)
Married
Data based on 12 months ending Dec 31st, 2008
Projected Base: 63 Million Total US Crafting Households

50. 8% of Crafting Households
Floral Enthusiasts tend to participate in floral arranging and wreathmaking, often as a way to save money. They mainly create and design their crafts for Home or holiday décor.
Floral Enthusiasts
8% of Crafting Households
Participate in Floral crafts (namely Floral Arranging 66% and Wreath making / Floral Accessorizing 44%).
Spend approximately 5 hours per week on crafts and complete 12 projects per year.
Purpose of crafts: Personal Use, Home décor, holiday décor.
Shop more than expected in: craft chain stores (their main retail channel). Are impulse buyers. Are influenced by advertising, store instructions, and unadvertised sales.
Attitudes towards crafting:
The time I spend crafting is worth the money I save
Doing crafts and hobbies is a good way to save money
Completing a craft/hobby gives me a feeling of accomplishment
Not really attracted by the “social” aspect of crafting (special time with others)
Demographics
Income above average
No children under 18 in the HH (78%)
Data based on 12 months ending Dec 31st, 2008
Projected Base: 63 Million Total US Crafting Households

51. 15% of Crafting Households
Sew Prouds take pride in the crafts they participate in. Most are older than the average crafter and do not have children at home. These households are most likely to try to sell their crafts.
Sew Prouds
15% of Crafting Households
Quilting (40%) ; Cross-stitch/Embroidery (38%); Craft Sewing (37%); Home Décor Sewing (35%).
Spend approximately 6.6 hours per week on crafts (Second group in terms of hours spent per week on crafts) and complete 11 projects per year.
Purpose of crafts: Gifts or sell.
Shop more than expected in Fabric and craft stores and much less in Craft chain stores. Prefer stores where they find knowledgeable salespeople. Not an impulse buyer. Influenced by sales circular in the mail.
Attitudes towards crafting
Completing a craft/hobby gives me a feeling of accomplishment / I feel proud of the crafts I make
I find working on crafts and hobbies invigorating
I forget about my daily problems when I work on a craft or hobby / Working on a craft or hobby helps me relax
Doing crafts and hobbies is a good way to save money / The time I spend crafting is worth the money I save
Demographics
Income below average
Older than average (53% are over 55)
No children under 18 (79%)
Data based on 12 months ending Dec 31st, 2008
Projected Base: 63 Million Total US Crafting Households

52. 18% of Crafting Households
Stitch and Gifters are overrepresented among lower income crafters, tend to be older, and seldom have children at home. This segment avoids the social aspects of crafting.
Stitch and Gifters
18% of Crafting Households
Participate on average in only 2 types of crafts - mainly in Cross-stitching and Embroidery 44%
Purpose of crafts: Gifts.
Spend less than average and spend less time in stores. But spend more than 60 hours on average per project.
Shop more than expected in Discount stores (Wal-Mart) catalogs, and Department stores. Attracted by convenience and the availability of other services.
Not an impulse buyer. Always have a specific purchase in mind when shopping. Not influenced by advertising.
Attitudes towards crafting
I like to work on my craft/hobby by myself
Not at all attracted by the “social” aspect of crafting (special time with others)
Crafts make excellent gifts
I feel proud of the crafts I make
Working on a craft or hobby helps me relax / Working on a craft or hobby relieves stress
Demographics
Segment overrepresented among lower income (below $35K).
Older than average (50% are over 55)
Widowed
No children under 18 (74%)
Data based on 12 months ending Dec 31st, 2008
Projected Base: 63 Million Total US Crafting Households

53. 24% of Crafting Households
Home Decorators mainly participate in home improvement crafts such as painting and woodworking. Home Decorators are mainly men at age with lower incomes.
Home Decorators
24% of Crafting Households
Participate in Painting & Finishing crafts (27%); Art & Drawing (27%); Decorative Painting (15%); Woodworking (14%); Other General Crafts (14%); Home Décor Painting/Accessorizing/ Finishing (14%)
Purpose of crafts: Home decor, personal use.
Spend about 8 hours per project, spend 3 hours per week.
Less satisfied than average with the time they spend crafting.
Shop more than expected in Hardware Stores/Home Centers and Art stores.
Attitudes towards crafting
It is easier to buy a product than to make it myself
My doctor recommends I do crafts/hobbies for my health
Less involved, less likely to continue participating in crafts.
Demographics
48% age 35-54
Lower income
Male
No children <18 (66%)
Data based on 12 months ending Dec 31st, 2008
Projected Base: 63 Million Total US Crafting Households

54. 25% of Crafting Households
Social Scrapbookers use their crafts to preserve memories and as a way to socialize. They are the youngest segment, often with children <6 at home, and an above average income.
Social Scrapbookers
25% of Crafting Households
Participate in Scrapbooking / Memory Crafts 73 % & Card Making 42%
Purpose of crafts: personal use.
Spend less time than average on crafting (5 hours per week). Complete 13 projects per year.
Shop more than expected in craft chain stores. Also favor in home parties. Impulse buyers. Influenced by discount coupons, new products, packaging, and product located at checkout counter.
Attitudes towards crafting
Like the social aspect of crafting : The main reason why I do crafts or hobbies is to spend special time with others…
Craft with kids.
Working on crafts or hobbies can be very time consuming.
I am interested in preserving my family history and memories / I enjoy organizing my old pictures and mementos
Do not craft to save money or be creative.
Demographics
Income above average
Youngest segment (42% are younger than 35)
Woman head of household employed full time
Higher level of education
Young children (under 6)
Married
Data based on 12 months ending Dec 31st, 2008
Projected Base: 63 Million Total US Crafting Households

55. How Do Light, Moderate and Heavy Crafters Differ?

56. Heavy Crafters, who account for 26% of all crafters, spend far more than their segment size would suggest.
Crafter Type Levels
CDI
236 81 14
Data based on 12 months ending December 31, 2008
Projected Base: 63 Million Total US Crafting Households

57. Top Ten Crafts - By Type of Crafter - Light Crafters Moderate Crafters
Regardless of crafter type, Scrapbooking is the largest category. Crocheting is more popular among Moderate and Light Crafters, while Jewelry, Wedding/Bridal and Beading are more common among Heavy Crafters.
Top Ten Crafts
- By Type of Crafter -
Light Crafters
Scrapbooking/Memory
Crocheting
Art & Drawing
Woodworking
Home Décor Painting/Acc/Finishing
Cross-Stitch Embroidery
Home Décor Sewing
Floral Arranging
Quilting
Apparel/Fashion Sewing
Moderate Crafters
Scrapbooking/Memory
Art & Drawing
Crocheting
Floral Arranging
Quilting
Home Décor Painting/Acc/Finishing
Woodworking
Apparel/Fashion Sewing
Cross-Stitch Embroidery
Decorative Painting
Heavy Crafters
Scrapbooking/Memory
Art & Drawing
Floral Arranging
Card Making
Home Décor Painting/Acc/Finishing
Apparel/Fashion Sewing
Quilting
Jewelry Making
Wedding/Bridal
Beading/Bead Crafts
Total $1,220 mill
Total $9,100 mill
Total $16,976 mill
Crafts in black grew from previous year. Crafts in red declined from previous year.

58. Household Segment Size
Attitudinally and behaviorally, Light Crafters are most likely to fall in the Home Decorator segment. Heavy Crafters are Enthusiasts and Social Scrapbookers.
Household Segment Size
- By Type of Crafter -
Social Scrapbookers
Home Decorators
Stitch & Gifters
Sew Prouds
Floral Enthusiasts
Enthusiasts
(1-5 Projects)
(6-20 Projects)
(21+ Projects)
Data based on 12 months ending December 31, 2008
Projected Base: 63 Million Total US Crafting Households

59. How Do Beginner, Intermediate and Expert Crafters Differ?

60. Crafting Ability (Self-Assessment)
The majority of crafters consider themselves to be intermediate in terms of expertise. Expert crafters spend disproportionately more than other groups
Crafting Ability (Self-Assessment)
CDI
150 98 65
Data based on 12 months ending December 31, 2008
Projected Base: 63 Million Total US Crafting Households

61. Intermediate Crafters Expert Crafters
While the Top Ten Crafts vary from one level of expertise to the next, several crafts are found to be common across all - Art & Drawing, Crocheting and Scrapbooking/Memory Crafts (although experts favor more challenging crafts and may need to be encouraged to return to Scrapbooking).
Top Ten Crafts
- By Expertise Level -
Beginner Crafters
Art & Drawing
Scrapbooking/Memory
Crocheting
Home Décor Painting/Acc/Finishing
Floral Arranging
Doll Making
Home Décor Sewing
Quilting
Needlepoint/Plastic Canvas
Fashion Fabric Paint/Decor
Intermediate Crafters
Scrapbooking/Memory
Art & Drawing
Quilting
Card Making
Floral Arranging
Apparel/Fashion Sewing
Home Décor Painting/Acc/Finishing
Crocheting
Beading/Bead Crafts
Woodworking
Expert Crafters
Floral Arranging
Cross-Stitch Embroidery
Art & Drawing
Wedding/Bridal
Decorative Painting
Jewelry Making
Crocheting
Woodworking
Knitting
Scrapbooking/Memory
Total $3,499 mill
Total $17,151 mill
Total $6,646 mill
Crafts in red declined from previous year. Crafts in black grew from previous year

62. Household Segment Size
Attitudinally and behaviorally, Beginning Crafters are most likely to fall in the Home Decorator segment. While crafters with higher degrees of expertise are equally represented across all segments.
Household Segment Size
- By Expertise Level -
Social Scrapbookers
Home Decorators
Stitch & Gifters
Sew Prouds
Floral Enthusiasts
Enthusiasts
Data based on 12 months ending December 31, 2008
Projected Base: 63 Million Total US Crafting Households

63. Is Shopping Behavior Changing?

64. The channels where crafters are making their purchases are evolving.
Three channels accounted for 60% of Craft sales in 2008, with Craft Chain Stores showing the greatest decline of this group
Craft Chain Stores -15% (25% of total sales)
Discount Store -4% (22% of total sales)
Fabric and Craft Stores -1% (13% of total sales)
Internet sales continue to grow:
Internet +19% (7% of total sales)
Other craft retailers are experiencing more severe declines in sales. Store closures are contributing to the losses for Local Craft Stores. Softening of the Home Décor Painting segment seems to have impacted the Variety Hardware Stores:
Craft Fair/Flea Markets -59% (1% of total sales)
Local Craft Stores -57% (3% of total sales)
Variety Hardware Stores -49% (5% of total sales)
*Note: The questionnaire was revised in Jan 2008 to more clearly define channels and may account for some of the differences seen here.

65. Craft Chain stores, Discount stores, & Fabric and Craft stores account for 60% of crafters’ spending
Store Channels – Dollar Sales and Market Shares
CHANNELS
Total Dollars (Mill)
% Change vs. YAG
Share of Market
Pt Change %
Craft Chain Store
$6,805
-15%
25%
-0.2%
Discount Store
$5,888
-4%
22%
+2.3%
Fabric and Craft Store
$3,565
-1%
13%
+1.7%
Internet
$1,792
+19% 7%
+1.8%
Catalogs
$1,388
-8% 5%
+0.4%
Variety Hardware Store
$1,263
-49%
-3.2%
Local Craft Store
$847
-57% 3%
-3.1%
In-Home Parties
$813
-20%
Art store
$806
-14%
±0.0%
Dollar Stores
$684
+0.3%
Department Store
$393
-31% 1%
-0.3%
Drug Store/Supermarket
$229
-29%
Craft Fair/Flea Market
$207
-59%
-0.8%
Housewares/Home Goods Store
$188
-6%
+0.1%
TV Shopping
$137
+85%
Office Supply Stores
-60%
-0.6%
Club Stores
$81
-61%
*0%
-0.4%
Other
$2,073
+23% 8%
Total
$27,297
-14&
100%
-3.4%
* = Less than 0.5%

66. How Can You Drive Craft Spending in a Tougher Economy?

67. As consumers continue to tighten their belts, it’s very important to remind them why they craft in the first place.
A factor analysis reveals eight primary reasons for crafting:
Sense of Accomplishment
Relaxation
Memory Keeping
Health
Economy/Value
Recommended by Friends or Family
Enables Spending Time with Others
Interaction with Children
OPPORTUNITY reinforce these quality-of-life messages in communication vehicles and in-store at point of sale

68. Emotional drivers are strong influencers of craft sales for all levels of expertise.
Irrespective of ability levels, crafters strongly agree on the following statements:
Completing a craft gives me a feeling of accomplishment
I like to work with my hands
However, Expert level crafters are especially likely to believe that:
I forget about my daily problems when I work on a craft or hobby
Doing crafts or hobbies makes me feel better
I am a creative person
I prefer to craft alone

69. Reinforce consumers emotional ties to crafting to increase spending.
Emphasize “family fun” and “creativity”
The greatest drivers of craft spending are children crafting and crafting is a creative outlet
Consumers are cutting back on entertaining and are spending more time at home
Appeal to the family orientation and inherent desire people have to be creative
Crafting is fun and an affordable alternative to a day/night on the town

70. Reinforce consumers emotional ties to crafting to increase spending.
Inspire crafters with the emotional as well as functional aspects of crafting.
Emotional - Accomplishment; Relaxation; Spending time with others or children
Functional - Saving money; Preserving memories; Health/well-being (especially relieves stress)

71. Source of Project Ideas
Prominently displaying a variety of Crafting books and magazines can help generate consumer interest/ideas and sales. Consider displays both by the checkout and in aisles.
Especially Intermediate and Expert Crafters
Source of Project Ideas
Especially Beginning and Expert Crafters
Especially Intermediate and Expert Crafters
Data based on 12 months ending December 31, 2008
Projected Base: 63 Million Total US Crafting Households

72. Gifting represents a huge opportunity that may be largely untapped.
Usage Of Completed Craft Projects
% of Crafting HH
Especially Intermediate, Expert and Heavy Crafters
Data based on 12 months ending December 31, 2008
Projected Base: 63 Million Total US Crafting Households

73. I Give Crafts As Gifts Because….
The ability to personalize and create unique gifts is a key behavior driver.
I Give Crafts As Gifts Because….
Data based on 12 months ending December 31, 2008
Projected Base: 63 Million Total US Crafting Households

74. 84% of households craft because of a holiday or special occasion
Occasions for Which Crafts are Made
Data based on 12 months ending December 31, 2008
Projected Base: 63 Million Total US Crafting Households

75. Crafting classes/parties can be an important way to encourage spending.
Those who attend class/parties spend more than twice as much as those who do not!
Classes should be offered for crafters of all levels – most crafters consider their skills to be “intermediate”. Few Beginners attend but this can be a way to encourage new participants.
Classes
Home Parties
Incidence of Attending
Incidence of Attending
Do Not Attend
Attend
Do Not Attend
Host
Guest
$300
$624
$327
$566
$608
Average spending per year
Average spending per year
Data based on 12 months ending December 31, 2008

76. Appendix

77. Accessing the Reports Reports are free online to CHA Members
All of the reports are available under the RESEARCH tab on
Company Member ID numbers and passwords are needed to gain access
If you need your Company Member ID number or have any questions about the research, contact Keri Cunningham, Marketing Manager at or at

78. Dollar Sales ($Million) % Change in total spending vs. YAG
Overall, sales among Light Crafters declined 6% since Scrapbooking, Crocheting and Art & Drawing all grew in 2008 among this group. Home Décor Sewing grew more than any other leading craft.
Dollar Sales ($Million)
% Change in total spending vs. YAG 1
Scrapbooking/Memory Crafts
$167
+4% 2
Crocheting
$83
+13% 3
Art & Drawing
+67% 4
Woodworking
$81
-37% 5
Home Décor Painting/Accessorizing/ Finishing
$68
-35% 6
Cross-stitch/Embroidery
+9% 7
Home Décor Sewing
$52
+125% 8
Floral Arranging
$45 9
Quilting
$44
-23% 10
Apparel/Fashion Sewing
$38
+23%
TOTAL
$1,220
-6%
Top 10 Crafts Among Light Crafters

79. Dollar Sales ($Million) % Change in total spending vs. YAG
Overall, sales were down 5% among Moderate Crafters. However, Scrapbooking, Art & Drawing and Crocheting were growth areas for this group.
Dollar Sales ($Million)
% Change in total spending vs. YAG 1
Scrapbooking/Memory Crafts
$890
+19% 2
Art & Drawing
$683
+40% 3
Crocheting
$545
+14% 4
Floral Arranging
$502
-3% 5
Quilting
$473
-10% 6
Home Décor Painting/Accessorizing/ Finishing
$387
-46% 7
Woodworking
$381
-28% 8
Apparel/Fashion Sewing
$356
-22% 9
Cross-stitch/Embroidery
$355 10
Decorative Painting
$300
+45%
TOTAL
$9,100
-5%
Top 10 Crafts Among Moderate Crafters

80. Dollar Sales ($Million) % Change in total spending vs. YAG
Sales declines were highest for Heavy Crafters, at 19%. Scrapbooking, Art & Drawing and Floral Arranging made up the top three leading crafts, yet only Floral Arranging experienced any growth from the previous year.
Dollar Sales ($Million)
% Change in total spending vs. YAG 1
Scrapbooking/Memory Crafts
$1448
-14% 2
Art & Drawing
$1030
-27% 3
Floral Arranging
$962
+40% 4
Card Making
$825
-24% 5
Home Décor Painting/Accessorizing/ Finishing
$675
-5% 6
Apparel/Fashion Sewing
$662
+13% 7
Quilting
$659
+7% 8
Jewelry Making
$623
-39% 9
Wedding/Bridal
$618
-38% 10
Beading/Bead Crafts
$616
-30%
TOTAL
$16,976
-19%
Top 10 Crafts Among Heavy Crafters

81. Dollar Sales ($Million) % Change in total spending vs. YAG
Sales declines were highest among Beginners, down 22%. However, Beginners seem to be venturing into new categories, especially Doll Making and Crocheting.
Dollar Sales ($Million)
% Change in total spending vs. YAG 1
Art & Drawing
$402
-34% 2
Scrapbooking/Memory Crafts
$326
+3% 3
Crocheting
$197
+115% 4
Home Décor Painting/Accessorizing/ Finishing
$171
-31% 5
Floral Arranging
$157
-12% 6
Doll Making
$132
+794% 7
Home Décor Sewing
$130
+63% 8
Quilting
$104
+47% 9
Needlepoint/Plastic Canvas
$93
+78% 10
Fashion Fabric Painting & Decorating
$90
-54%
TOTAL
$3,499
-22%
Top 10 Crafts Among Beginning Crafters

82. Dollar Sales ($Million) % Change in total spending vs. YAG
Overall, sales were down 17% among Intermediate Crafters. Scrapbooking/Memory Crafts, Art & Drawing and Quilting led category sales, showing either growth or sustained volume versus 2007.
Dollar Sales ($Million)
% Change in total spending vs. YAG 1
Scrapbooking/Memory Crafts
$1,910
+11% 2
Art & Drawing
$990
±0% 3
Quilting
$928
+15% 4
Card Making
$806
+12% 5
Floral Arranging
$782
-7% 6
Apparel/Fashion Sewing
$779
-8% 7
Home Décor Painting/Accessorizing/ Finishing
$742
-39% 8
Crocheting
$714 9
Beading/Bead Crafts
$659
-14% 10
Woodworking
$645
-2%
TOTAL
$17,151
-17%
Top 10 Crafts Among Intermediate Crafters

83. Dollar Sales ($Million) % Change in total spending vs. YAG
Sales held steady overall among Expert Crafters. The top five leading crafts all experienced substantial growth over Of note, this group seems to be moving out of scrapbooking
Dollar Sales ($Million)
% Change in total spending vs. YAG 1
Floral Arranging
$570
+151% 2
Cross-stitch/Embroidery
$433
+75% 3
Art & Drawing
$404
+13% 4
Wedding/Bridal
$360
+34% 5
Decorative Painting
$314
+192% 6
Jewelry Making
$313
-2% 7
Crocheting
$296
-3% 8
Woodworking
$280
-47% 9
Knitting
$271
±0% 10
Scrapbooking/Memory Crafts
$269
-51%
TOTAL
$6,646
-1%
Top 10 Crafts Among Expert Crafters