Market Research for a Sewing and Craft Supplies Business

Sara is in the exploratory process of doing market research for a sewing and craft supply store in metropolitan area.  Here is how she explains her business concept.

“I live in central _____, and there are no places to purchase cool, modern sewing and crafting supplies other than online. 

I would love to open a small store that would cater to the local area crafters and DIY-ers who are looking for something different than what Hobby Lobby, Michael’s, and Jo-Ann have to offer.”

Business Stats

Industry - Crafts & Sewing

Market - 18-40 year old females that are actively into crafts in her county

Competitors - Jo-Ann, Hobby Lobby, and Michaels. Online retailers.

Need - Lack of local retailers with fun and modern craft materials

Trends - Recession tend to lead to more Do It Yourself’ers

Customer Base
Sara seems experienced in this field so she should be able to connect with the needs of her target market.  Based on her market research so far, demographics suggest there is a large enough customer base in her region to support a store if she can get customers in the door and coming back for more.

Unique Selling Proposition

So how will Sara find and keep these customers? She plans on offering products and services that the big craft stores can’t provide. 

One thing I think Sara should spend the time and money to research up front is what specific items or services the crafters and sewers in her metro area are looking for but can’t find locally.

If she’s going to brand her store as the place to find supplies or services people can’t get anywhere else, I think it would be smart to estimate the cost (time & money) of providing these items and the premium that she can charge for them.

Market Research Tips & Ideas

I think Sara really needs to tap into her local market to find out where the unmet needs are before she puts up any money for rent, supplies, or equipment.  Here are some ideas for reaching out to the craft community.

Become the “Craft Hunter”

One thing Sara could do is promote her services around the metro for a while as a type of craft hunter.  “Can’t find a craft product or service, I’ll get it for you”.

This approach would do several things:

• Brand her as the go-to lady for unique or hard to find craft supplies
• Help Sara understand what types of things people were looking
• Give her a feel for how much unique supplies & services cost her and what people would be willing to pay for them

I like this approach because it’s not just giving people a survey that asks what they’d like to see in a local craft store.  From my experience people’s eyes tend to glaze over when you give them a general, open-ended question that requires them to think or be creative.

If instead you can make it specific, nail it down to a specific project they’re working on and what they need for that you’re more likely to get answers.  Plus you will stick in people’s head if you can help them get what they need.

Create a Web Presence

Sara intends to start a website and I think that’s a great for both brand building and community building.  A small business web hosting service like Bluehost or 1&1 is under $10 a month and a valuable investment in her marketing efforts.  She would also like to sell her products online at some point down the road but for now the site should be about research and branding. 

If I were Sara I would setup a blog on her website devoted to the local craft and sewing community and use it to both showcase her expertise and to spread the word about her Craft Hunter services.  One thing she could do is start a crafts & sewing email newsletter using an email marketing service like Aweber to keep in touch with the people that come to her site.

Finding Potential Customers

Sara mentioned attending local craft shows to meet potential customers. She should definitely take along business cards to hand out to anyone who is interested in her services.  She can actually get free business cards, paying only shipping, by using a VistaPrint promo code.

The business card should at least have her email address listed, it would be best to have a contact phone number as well.  If Sara doesn’t want to give out her home number, or wants a professional sounding setup she can get her own toll free number and voicemail with a RingCentral free trial.

What are some other ideas she could use to connect with people to pick their brain about their craft needs?