Craft Retailers' Criteria for Success and Associated Business Strategies

Abstract

This research was designed to fill the void in understanding how art-related retailers define and achieve success. A two-phase data collection process was implemented. Preliminary personal interviews were conducted with 12 craft retailers followed by a mailed survey to 1000 craft retailers in nine southeastern U.S. states. Factor analysis was employed to reduce the number of items for defining success. Cluster analysis followed to develop empirical groupings of craft retail businesses based on the success factor scores, of which four different groups were identified. Multivariate analysis of variance (MANOVA) and analysis of variance (ANOVA) were used to compare retail clusters related to business strategy variables of competitive strategies, product assortment, pricing, and distribution strategies, and networking activities. Significant differences were found in the craft retailers' business strategies used to achieve success. Craft retail entrepreneurs were found to define success with both traditional criteria such as profit and growth and also with intrinsic factors such as personal satisfaction and the opportunity to elevate the craft tradition. Successful small craft retail firms offered more focused product assortments of specialized craft products, implemented more differentiated strategies of stocking unique crafts in their assortments, as well as offering unique services to educate consumers about crafts, craft artisans, and a region's culture. Craft retailers who reported greater success did not engage in competitive pricing. Collaborative strategies included networking among family, friends, and business peers.Dr. Paige is assistant professor of marketing at Lander University in Greenwood, South Carolina. Her research focuses on cultural product marketing, small business success strategies, and tourism marketing with an international scope that includes a focus on indigenous handmade crafts from Thailand and Russia. Dr. Paige's teaching interests include international marketing, small business stratgy, and advertising and promotion.Dr. Littrell is professor of textiles and clothing at Iowa State University in Ames. Her research focuses on artisan enterprise sustainability and tourism marketing with an international focus that includes native textile and apparel products from India and Mexico. Her teaching interests include international small textile and apparel enterprises and the cultural aspects of textiles and apparel. 314JOURNAL OF SMALL BUSINESS MANAGEMENT

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