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Update | Etsy Earnings, Closure, Hancock Fabrics, and more!

Welcome to the weekly Update column from Scrapbook Update for August 3rd, 2017!

[Disclosure: I have professional relationships with Cricut and Scrapbook.com who are mentioned in this article but this content is not sponsored.]

Closures. Illinois-based craft product distributor Product Performers closed its doors unexpectedly on June 30th. The closure of Product Performers leaves three remaining major distributors serving the paper crafts industry in the U.S.: Michaels-owned Darice, Notions Marketing, and Petersen-Arne.

Earnings. Etsy reported its 2nd Quarter 2017 earnings after market close today, posting a 19.1% year-over-year increase in gross revenue. The company also posted a 10.9% year-over-year growth in active sellers, and 17.2% year-over-year growth in active buyers. Mobile continues to grow in importance for Etsy, with approximately 65% of visits to the site occurring on mobile. Just over half of the platform’s gross merchandise sales (GMS) now occur on mobile.

Etsy has cut nearly a quarter of it’s workforce since January 1st, and says that this and other operational streamlining to reduce costs should reduce costs by $20 million in 2017 and by $35 million on an annualized basis.

Based on 2nd Quarter 2017 numbers, Etsy released new earnings expectations for Fiscal Year 2017. The company’s new forecast is for Gross Merchandise Sales to be up 12-14% year-over-year, and for revenue to grow 18-20% year-over-year.

Events. AFCI and SPC have announced the date and location for the 2018 Mixed Media Event. The show will take place at the South Towne Exposition Center in Sandy, Utah (south of Salt Lake City). An education day is scheduled for July 16th, 2018, and the show floor will be open July 17th-18th, 2018. For more information, visit the AFCI website.

Endings. The Paperclipping.com online video service run by Noell & Izzy Hyman will be closing down at the end of September. Members are being given one last chance to renew their membership on a month-by-month basis this month and then the Hymans plan to shut its doors after next month. The closure of Paperclipping has been planned by the Hymans for nearly a year, as Noell is moving on to a career as a yoga instructor in several studios near their Arizona home.

Crimes. Israeli police have arrested five antiquities dealers in connection with the illegal sale of artifacts that were seized from Hobby Lobby by the U.S. government over allegations of smuggling.Cricut Maker

Partnerships. Cricut is partnering with Simplicity as part of the launch of its new machine, the Cricut Maker, that was announced on August 1st. Simplicity is making hundreds of its digital patterns available in Cricut Design Space to cut on the Cricut Maker machine, which features a special rotary blade specifically for cutting fabric. Previous generations of the Cricut machine could cut fabric, but only when stabilized with an iron-on backer, which isn’t necessary on the new machine.

The launch of the Cricut Maker machine reflects a broader trend among companies that were once marketing solely to the paper crafts market to try to serve a broader audience – and the sewing market, via fabric and quilting, has been a popular target of many companies making the shift.

Endings II. The liquidation of Hancock Fabrics, which began well over a year ago, is still underway, with the liquidation plan finally being approved by the bankruptcy court on June 20th. Liquidation of many of the company’s key assets had already taken place, despite the lack of a court approved plan. In Summer 2016, Michaels Stores purchased the brand assets of Hancock – its trademarks, brands, and customer database – for $1.3 million. The Hancock-owned trademarks bundled in the deal included the brands Sew Perfect, Absolutely Cotton, and Creative Sewing Solutions (among others). Michaels did notify Hancocks customers that it planned on using the customer database to give them the option to opt out. Whether the company will use the sewing-related trademarks is another question. Sometimes purchases of assets like this are made not for intended use but as a sort of game of corporate “keep away” to prevent the assets from being used by competitors.

Social. If you are an Etsy storeowner looking to improve your social media reach, Forbes has a must-read article analyzing how some Etsy artisans have dramatically improved their sales using Facebook Live.

Change. A lot is written about the local retail businesses that die as a result of ecommerce, but we don’t hear as much about the businesses that are built from the rise of ecommerce – and the jobs they create. To learn more about one company that credits its booming growth to the rise of ecommerce, including clients that do business in the crafts industry such as Amazon, and Hobby Lobby – visit mlive.

Milestones. Congratulations to stamp company Neat & Tangled on reaching its five year birthday yesterday!

Products. Simon Says Stamp has released a new collection of stamps and dies by designer Cathy Zielske. In Zielske’s signature cheeky style, with sentiments like “Hello my hide-a-body friend”, these aren’t your grandma’s everyday stamps. (Unless, of course, you have a really cool grandma.)

Social II. In case you weren’t already convinced that Pinterest was a search engine, the social media platform drove the point home this week by updating its mobile app to reduce the number of clicks required to do a search. The search box is now visible on the app’s main home feed page, instead of buried in the explore tab as it previously was. They’ve also placed the button to access Lens, the feature that uses your device’s camera to take a picture and search for similar items on Pinterest, on the home feed page next to the search box for easier access.

Pinterest said in the announcement that monthly mobile searches are up 40% over last year and that 85% of all Pinterest searches now take place on mobile.

History. For a great read about the history of stamping and the rubber stamp dating all the way back to Old Testament times, check out Scrapbook.com’s article “The History of Stamping“.

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2 Responses to Update | Etsy Earnings, Closure, Hancock Fabrics, and more!

  1. gabmcann August 4, 2017 at 4:14 am #

    So sad to see Paperclipping go …. I’ve been a member since the very beginning!

  2. Margaret August 4, 2017 at 4:13 pm #

    Thanks, Nancy, for your continued updates – they’re always interesting!

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