Catalogs

Even during this recent economic downturn, the catalog business has been growing steadily. People like the convenience of being able to shop 24/7 and appreciate access to products not available in their local stores. But it takes more than good products to make a successful catalog; it is essential to establish credibility through design.

Consider these statistics: In the U.S. some 10,000 catalog titles are currently being produced, with a total annual print run of 17 billion copies, according to the Direct Marketing Association (DMA). This year the catalog industry is expected to take in $133 billion in sales, up from $126 billion in 2002.

So the dot-commer prediction that e-tailing would cause the demise of paper-based catalogs and bricks-and-mortar stores was premature. In fact, it's been the Web-only merchants who have had the harder time producing profits-partly due to the difficulty of luring shoppers to their site. The five-year survival rate of Web-only retailers is low.

In the same way that the introduction of television did not cause the predicted demise of radio, Web retailing has not hurt printed catalogs or stores. It has merely opened up a new channel for reaching the customer. The Web is the third leg of the merchandising tripod. Today most catalogers and retail stores also sell through their websites, and are increasingly using email to alert customers of promotional offers. A recent DMA survey shows that catalog companies now generate about 30% of their sales through the Web. People see the item in the catalog, then go online to order or to the local store to buy.

Catalogs offer numerous advantages over other sales channels, including the ability to target likely buyers on a national level and put the sales pitch literally in their hands. Catalogs reach a broader audience than an individual bricks-and-mortar store and, when thoughtfully presented, they provide an interesting and enduring sales piece that customers can peruse and consider at their leisure before placing their orders. The vehicle used to sell with-i.e., the catalog-is also an effective direct mail advertising piece to draw business into stores.

These advantages make this marketing channel seem like a no-brainer -except for the monumental challenge of competing against the 10,000 or so catalog titles currently filling mailboxes across America.

So what makes certain catalogs stand out when others are tossed immediately in the trash bin? Why do some catalogs inspire confidence and convince you that it is safe to buy their products based solely on a photo and written description when you cannot touch or test it in person, or talk to a real salesperson? The reason seems to have little correlation to the type of products sold, years in the business or where the cataloger is based. Some catalogs simply look trustworthy, even if the name is unfamiliar.

Here we profile four successful and distinctly different catalog retailers: Neiman Marcus, a 95-year-old company whose brand epitomizes luxury and sophistication. Flor, a 7-month-old residential modular floor covering division of Interface, the world's largest commercial carpet manufacturer. Planet Dog, a small, 4-year-old manufacturer and retailer of earth-friendly pet products. Design Within Reach (DWR), a 4-year-old retailer of high-end designer furniture. Flor, Planet Dog and DWR all launched their businesses via catalog, then quickly added a Web component. DWR has since opened more than a dozen retail studios in major cities, and Planet Dog expects to open its first store late next year. Neiman Marcus, of course, has long had a presence in metropolitan cities.

As different as they are, they share a few traits in common: They are keenly aware of the needs of their target customers and adept at speaking to them in a compelling voice and manner. Importantly, they have made effective use of design to communicate the integrity of their brand.

Neiman Marcus' The Book
To call Neiman Marcus (NM) books "catalogs'" is not to give them their due. Elegantly styled and photographed, the full-page images, often promoting a single product, are arresting to view. NM creative director Amy Adams says that is exactly the goal. "We want to give them an art book quality, create coffee table publications that will extend their shelf life and make them hard to throw away." The 95-year-old luxury retailer produces a total of 11 catalogs a year, which go out to their very best customers. A hallmark of NM catalogs is the inclusion of well-written articles profiling famous fashion designers and celebrities. With some catalogs running upwards of 240 pages, Adams recognizes "that it is an investment to look through them. We want our customers to think it is time well spent and to keep them engaged from start to finish."

Interface Floor
Although Interface is the world's largest maker of commercial carpet tiles, its new residential brand, Flor, was unknown. In going to market, it considered selling through flooring dealers or big box retailers, but opted to sell direct through catalogs. Chip DeGrace, vice president of marketing, explains, "We felt that if we started with an audience we knew-designers and those who were design sensitive-they would be accepting of a new format. We could lead with the story, context and brand and not leave it up to traditional channels that would probably compare it to carpet. Design professionals like the print medium. They like to keep it around, hand it off to others and tend to revisit whatever contents are in the book." Designed by Robert Valentine, the first catalog launched last spring.

Planet Dog
Founded by Alex Fisher and Stewart Maloney in 1999, Planet Dog was launched as a wholesale catalog marketing pet products made from eco-friendly recycled and natural materials. Its first catalog, featuring 40 products, had just a 20,000-copy run. Four years later, it produces six catalogs, marketing 175 products, annually (four retail, two wholesale), with a print run of 400,000 copies. In addition to a brisk catalog and online business, its products are carried by a range of upscale retailers from Bloomingdale's and L.L.Bean to garden, sports and gift shops. President Stephanie Volo, who came out of the fashion industry, asked designer Melanie Kuhn to create a simple and elegant catalog. "We could have 'square-inched' our catalog and filled every page with 50 items, but that is not who our customers are or what they expect," says Volo.

Design Within Reach
In introducing a unique furniture resource for design professionals in 1999, Design Within Reach (DWR) founder Rob Forbes chose to sell through a branded catalog rather than establish a storefront location. "We wanted to have a reach that extended to the entire design community in the U.S.," he explains. "Catalogs allowed us to build a national awareness quickly. Very few mediums allow you to do that. This graphic medium is also a great way to show products in different real locations and communicate stories behind the products through biographical information about the designers." Forbes adds that the catalog format also suited the way interior designers worked-i.e., collecting tear sheets of products they want to remember. Although Forbes had substantial credentials in retail and catalogs, DWR was a new name in the business. The credibility established with the first catalog relied heavily on the quality of the design. Especially when considering high-end furniture, customers needed assurance that this is no fly-by-night operation. Forbes says that the authority with which products were presented in the catalog was critical to building confidence and trust.