2015 Hot Print Markets Analysis: Target Verticals That Fit Your 'Sweet Spot'
Restoration Hardware (+30 percent), built since 1979 by, and continuing with, the most printed catalogs in this sector, is on a new move. It is buying large historic mansions to house up to 62 galleries that correspond with the company’s RH editions. In the long-washed-up home appliances (0 percent) segment, the Electrolux purchase of GE Appliances will bring re-branding and OEM work. The sector, overall, will increase FSIs and in-store graphics.
The “discretionary” or non-durable goods and services economy consists of six sectors.
Sailing up one port to No. 9 is Travel/Hospitality ($918B, +4 percent; with $8.3B to print, +11 percent). Twenty-five cruise lines (+2 percent) will buy 1/4th of sector print. The largest, with eight global brands, is Carnival (+5 percent), which will re-dedicate six of its 101 ships for extended, 10- to 14-day leisure cruises this coming autumn. Heatset web rack brochures, window and in-store signage, direct mail and on-board graphics will float this and other programs. Airlines (+6 percent) and hotels/resorts (+7 percent) fly with print-intensive loyalty program cards, statements and incentive direct mail. Both categories will have record revenues in 2015-16.
Dressing down one size to No. 12 will be Fashion ($595B, -3 percent; with $6.9B to print, -3 percent). The sparkling exception is jewelry (+9 percent). Signet (+54 percent with the acquisition of Zale) will own the most stores, store names and designer lines. Tiffany’s (+10 percent) is taking the cue and mix shifting to high-margin designer fashion jewelry.
Clothing, footwear and intimate/accessories (-3 percent) will see more store closings and bankruptcies as consumers walk away from fashion. Online shopping is unzipping catalogs and direct mail—for the moment. After the present shakeout, that may reverse. Gap (+6 percent) and Macy’s (-2 percent) will continue in vogue as the largest print buyers in the sector.
Vincent Mallardi, C.M.C., is a the chairman of the Printing Brokerage/Buyers Association International (PBBA) and is a Certified Management Consultant in the paper, printing and converting industries. He is also an adjunct professor in economics. Contact him via email at email@example.com