Christian Retailing

Meeting at the 'crossroads of change' Print Email
Written by Christine D. Johnson   
Thursday, 05 April 2012 06:25 PM America/New_York

MICHAEL BRIGGS, owner of Briggs Creative in Nashville, has been active in the Christian market for nearly 33 years. Briggs is a former retailer with a family-owned regional chain—Dicksons of Royal Oak, Mich.—and a former producer, writer and host on Christian radio. His clients have included more than 40 CBA and ABA companies, major ministries, trade associations and authors on corporate strategy, product development, marketing and sales.

What are some of the biggest changes you have seen in the industry?

Addressing change starts with a little history. We live with the consequences of ideas implemented decades ago as well as those we embrace today. Retrospectively, a big change happened as our industry’s suppliers reached out to new markets and sales channels, increasing focus on our “hit” products. The biggest authors and music artists captured the attention of general market retailers and for good reason.

Concurrently, shifts in our culture made “time” more important to the American lifestyle. Sales to the general market weren’t so much the result of “taking the cross over” as it was reaching the core audience where they shopped. It is about convenience. Although there’s lost shelf space (Borders), much of this continues today.  We can all cite the titles and they’re as sought after as any before them.

The general market uses its strengths to push our leading titles to the best-seller lists, which fuels demand. If we’re honest with ourselves, during the growth years we weren’t as adept at creating such visibility. Increased awareness promotes wider accessibility to consumers. Ergo, the CBA retail landscape changed and finds itself competing with entities as large as our entire industry. Because many CBA stores also relied heavily on “hit product,” they found themselves contending in an arena that is more costly. Profits weaken, cash flow suffers, anxiety increases, and to some degree, walls of separation start to build between supplier and retailer.

Can CBA retail rebound from this?

Our industry has always been message driven. The proclivity for gifting our products has always championed sales. It’s this uniqueness that provides a future for our stores and suppliers all. There really isn’t “backlist,” given customer turnover; it’s new to many consumers. Once we discerned focusing on the “hits” could be ruinous, we shifted toward core products as a staple for maintaining distinction and validity. The general market carries some core, but they don’t specialize in it—and that’s a distinct CBA advantage.

Over time we realized the need to talk straight to each other, engaging the concerns and opportunities for growing the category, rather than appearing to evade and dissimulate. Dialog today enjoys a more open strategy for supporting our channel and the future growth of Christ-centered products in the marketplace.

What about changes that impact the stores?

A change in pricing is unfolding. General market is discounting less, even online. Some chains are abandoning sale-pricing altogether. Is this a reaction to difference between an online customer versus a brick-and-mortar customer? This will be interesting to see unfold.

Consumer expectations are changing dramatically, and meeting those needs has altered nearly everything about how retailers relate to their customers. From now on, the relationship between store and customer is going to look very different from the recent past. Retailers must reach their customers by all means possible: inbox, mailbox, Facebook, Twitter, newsletters, etc. There are too many stores that don’t mail a catalog, don’t collect email addresses and don’t interact with their customers the way the customer wants to be embraced. By providing an experiential relationship, you build loyalty that transcends your marketing efforts and builds a sense of community.

To quote Gary Vaynerchuk from his compelling book The Thank You Economy [HarperBusiness]: “People embraced social media because communicating makes people happy; it’s what we do. It’s why we carved pictures into rocks. It’s why we used smoke signals. It’s why ink won. Companies of all stripes and sizes have to start working harder to connect with customers and make them happy, not because change is coming, but because it’s here.”

What are two things a retailer must change in order to see growth and profitability?

One, retailers must—must—find a handle on their data. Cash flow is more critical today and “investing” in products requires more science than it does art. Accurate data is key because that compels action as basic as consistently changing the endcap. Customers want to see what’s new on each visit.

Two, to not have a website today is akin to never having had a phone book listing in yesteryear. I am most familiar with the Covenant Group website program. It provides stores the ability to sell e-books direct, offers a “pick me up” option, there’s iPhone and Droid apps, e-blasts and more—all designed to drive traffic. There are other providers and regardless of which a store decides on, the key is to get online—it is tantamount to growth, if not survival.

Any specific changes that impact published products?

Not too long ago an associate and I did an extensive study for a major publisher on their archives (I love mining archives). We walked away from that project with the realization that product perception by consumers has changed. That which was once considered lay-oriented is now considered academic. That which was academic is viewed as professional.

Look at our best-seller lists today. No disrespect to the titles there, but you can see a change in consumer demand over recent years by the types of books that land there. I would characterize them as accessible rather than intellectual and experiential over didactic.

The largest traffic-driving category is fiction and also the fastest growing digitally. The e-book impact has yet to be fully realized and some kind of solution is needed. If fiction drives consumers to the stores, all categories realize greater exposure. Without the traffic, all suffer. Perhaps the answer is to release physical books first or an enhanced edition—but then there’s risk in offending the rabid e-book buyer. It’s a conundrum that needs cooperative dialog. Thankfully all stores now have a viable opportunity to sell e-books and won’t have to give this over to competition.

What about change influencing how publishers are conducting business?

There’s only so low you can go on price. There’s only so much you can do to improve product. There’s only so far you can stretch your marketing budget. While the desire to do it all may be boundless, the elasticity of reality is stretched.

Cost of goods, cost of representation, diminishing shelf real-estate, decreasing channels, increasing demand for advances, demand for digital format—the landscape has changed exponentially. It dictates a focus on being a content provider in many forms, not solely ink-on-paper or sound-on-plastic. The ramifications are myriad. The days of “put it out there and see if it sticks” are gone. This intensifies the burden to provide better books, better music CDs, better products overall.

Also there’s the issue of risk. Risk aversion necessitates a closer look at co-publishing, print-on-demand and even packaging issues. My right brain battles the left when it comes to cover treatments. I see more focus on better design, less costly treatments and favor newer UV coatings. I would rather have a customer say, “I love the feel of this book in my hands” over “This foil looks nice.”

Do you see changes in the way publishers create awareness?

Stewarding primary and secondary marketing budgets is increasingly challenging because there are more channels vying for a share of support. There’s significant focus on social media although I haven’t read any report nor heard of experience where it actually produces sales. When I hear “what are you doing with social media?” I also hear, “We have no marketing budget for this.” Nonetheless, social media is an important avenue for exposure. The sense of community is conducive to building awareness.

While an ad can be placed anywhere, hoping someone will check out your big new product, a catalog mailed directly to the home of a proven CBA customer provides the best opportunity to have your product taken to the checkout. The combined mailing list of chains and independent marketing groups is multiple millions. It is by far the largest route directly to qualified consumers. They’ve been around for decades because they really are a primary means for reaching buyers.


What would you say are the top five issues the industry is facing right now?

I’m sure if you ask five people this question answers would differ. In brevity, I see five important issues:

1) Traffic and cash flow. Retailers need to see more customers coming in the door. A direct result of slower traffic and lower sales is reduced cash flow, which subsequently impacts payment history—a longtime challenge of our industry.

2) Digital products. If you’re reading this article, chances are your career and family rely on the ability to sell physical product. Digital is here to stay, but we need to discuss ways to keep physical a mainstay of our industry.

3) Gatekeepers. There are many stories of retailers that refuse to carry select categories, authors, music genres, Bible translations or books that differ with personal theology. If the customer can’t find the Christ-centered product they want, they will shop where they can—including the general market. Stores are unwittingly telling those people to shop elsewhere, and if they find it, they won’t be back.

4) Fairness. More suppliers are selling direct. Most cite nominal responses. Add digital products and the adverse impact on retail increases. There is a need here for cooperative dialog and understanding to avert future tensions. We’ve lost enough stores.

5) Greed. (Did he just say that?) Yeah, I did. This article simply doesn’t allow the space to expand on this, but it is one of the issues I pray about most for our industry. No matter the area you’re employed, you get it.


What trends are you seeing?

One of my favorite questions—I get this a lot. What many call trends are really just fads. Use Bibles, for example. Color and style have introduced fashion to the category. The fact that this creative, engaging packaging meets the consumer’s desire for individuality, uniqueness or convenience is the trend. The product itself is the fad. Or in the case of Bibles, the cover is the fad.

Some product trends we’re tracking include the increased demand for DIY healthy living, increased interest in the supernatural and the experiential books. Consumer trends include the “F factor” (friends, fans and followers) and what I call “info-gratification.” The use of smartphones provides consumers with the power to learn everything in advance of their purchase, including the best deal. I’m also waiting to see which CBA retailer works with Groupon and Living Social first.  I think there are ways to maximize these for exposing our products.

What’s your most radical idea for change in the industry?

Combine CBA, ECPA, GMA and whatever “A” might exist for the gift companies into one association called the CPA. The Christian Products Association. Pool the efforts and budgets and focus on the category. I can hear sabers rattling now. LOL!

Do you have any closing thoughts?

Our industry needs to think long-term just at a time when long-term thinking has never been more difficult to achieve. Optimism or pessimism about CBA’s future cannot simply be a function of our capacity to do great things—or our history of having done great things. It has to be a function of our will to actually do those things again. What CBA needs most is collective action on a large scale. We cannot let our past palliate the need for a cooperative future.

Many of us recall the old adage: It is not the strongest of the species that survives, nor the most intelligent. It is the one that is the most adaptable to change. Winston Churchill once said to his British compatriots: “We have not journeyed across the centuries, across the oceans, across the mountains, across the prairies, because we are made of sugar candy.” The same could be said of our industry. We’ve been at the crossroads of change before, and if we humble ourselves and turn our face toward God, He will surely show us the way through.

 
Serving the ‘café con leche’ community Print Email
Written by Christine D. Johnson   
Thursday, 05 April 2012 06:09 PM America/New_York

BY GUEST EDITOR TESSIE DEVORE, EXECUTIVE VICE PRESIDENT, CHARISMA HOUSE

Look around and take note: The Latino community is changing the face of the United States.

The composition of the Latino population is undergoing fundamental changes—but not because of immigration. Rather, births to Latino couples and Latino/Anglo couples are outpacing immigration as the key source of growth, according to the Pew Hispanic Center.

Read more...
 
Remembering Robert Walker Print Email
Written by Christine D. Johnson   
Monday, 05 March 2012 03:37 PM America/New_York

Colleagues and associates were asked how they first came to know Christian publishing pioneer Robert Walker, to share personal memories, and to comment on his legacy and what they believe to have been his most significant contributions.

Peter Cunliffe

Publishing consultant

I first got to know Robert Walker when he hired me in 1959 as circulation manager for Christian Bookseller magazine (the forerunner of Christian Retailing) and Christian Life magazine (which later merged with Charisma magazine). I worked with him for 12 years—five years at Christian Bookseller and then for another seven years as the first missionary sent out by Christian Life Missions.

Bob’s vision for reaching the world for Christ through the printed page impacted me so much that it changed the whole direction of my life. I trained to be a lawyer, but after I met Bob, God used his vision to cause me to change career directions from law to publishing. I spent the last 51 years of my life so far involved in publishing Christian books and Bibles—five years with Bob Walker at Christian Life magazine in Chicago, 21 years at a publishing house in Brazil, 14 years at a publishing house in France and the last 11 years consulting with international Christian publishers.

Bob was a visionary. He saw the need for a Christian magazine for the family as early as 1956, and published Christian Life magazine, one of the first of this genre.

Many Christian bookstores were also being started at that time. Managers and store personnel lacked retail experience in many cases, so Bob perceived they needed guidance in order to run their store successfully. So he created Christian Bookseller magazine, which included “how-to-do-it” type of articles on many facets of bookstore management, to give much-needed guidance.

I believe Bob Walker’s most significant contribution to publishing was his vision for publishing the Word of God internationally. He created Christian Life Missions, as a missionary arm of Christian Life magazine. Through Christian Life Missions, Christian Life Publishing House was created in Brazil in 1965. Today, Editora Mundo Cristão, as it is known in Brazil, has become the largest publisher of Christian books in Latin America.

God has richly blessed the ministry of this Brazilian publishing house under the leadership of Mark Carpenter. It has a staff of 60 dedicated persons and sells over 3 million Christian books and Bibles annually in Brazil, Portugal, Mozambique and Angola.

Read more...
 
Guest Editor In Conversation: Bill Hearn Print Email
Written by Christine D. Johnson   
Monday, 05 March 2012 02:01 PM America/New_York

Byron Williamson, president and CEO of Worthy Publishing, talks with Bill Hearn, president and CEO of EMI Christian Music Group (EMI CMG) about changes that have affected both the book and music industries. EMI CMG remains healthy despite shifts in retail distribution, illegal downloading and digital-music buying. EMI CMG represents dozens of leading artists, as well as distributing films, books—including titles from Worthy Publishing—and other ancillary items in addition to music.

In the mid-90s when big box retailers like Wal-Mart, Target, Barnes & Noble and Best Buy caught on to the fact that a majority of their customers were Christians, they started stocking and promoting Christian products. Sales began to shift there from independent Christian retailers. That was tough on the CBA retailers. Did that shift have the same impact on music as it did books?

Yes, in fact that shift of Christian music into mainstream and big box retail might’ve come a little bit ahead of books. It came right when we sold Sparrow to EMI, which was 1991 or 1992, at the height of the launch of Steven Curtis Chapman’s career. I remember there was a big promotional emphasis by Wal-Mart and Kmart.

Read more...
 
Lessons From Blessings Print Email
Written by Staff   
Thursday, 26 January 2012 01:58 PM America/New_York

Mark Hutchinson is sharing some of the secrets of his success in reinventing Blessings with other Christian retailers.

He has launched Thrive RDS (Retail Development Services) in partnership with wholesaler David C Cook Distribution Canada. The new program debuted in January 2012.

Read more...
 
Guest Editor In Conversation: Bill Reeves Print Email
Written by Christine D. Johnson   
Wednesday, 28 December 2011 03:39 PM America/New_York

‘It’s not just price—it’s the mix of products’

Why product brands are so important and how retailers can make more of them

Guest Editor James Barnett spoke with industry veteran Bill Reeves, president of product development group Working Title Agency.  Reeves has previously worked for Word Entertainment, Big Idea Productions, Thomas Nelson and faith-based marketing group Propeller Consulting.

Products seem to have become more sophisticated and brands more important since you joined the industry in 1988 at Christian retail, would you agree?

Yes. That is correct. Branding is really what sets your products apart from other products in the same space. Not only has the consumer become more sophisticated in what they want, but also the way you brand has become more complex and more sophisticated than it was 25 years ago when I started in Christian retail. I think it’s a mix of the consumer’s demands and the product creation from the company.

Read more...
 
VITAL SIGNS: e-books Print Email
Written by Christine D. Johnson   
Tuesday, 06 December 2011 04:14 PM America/New_York

Getting serious about e-books

They may not like it, but retailers know they can’t ignore digital publishing

TALKING POINTS

We asked survey respondents what questions they ask fellow retailers when they talked about e-books. They told us:

  • Are there other areas to build our business that are not so easily accessible outside the brick-and-mortar?
  • What’s even available?
  • What are the logistics?
  • What are you doing about e-book sales?
  • Do you read digital books, and if so, how do you like the experience?
  • Will the digital impact on book sales be greater than it was on CD sales?
  • How to integrate with church bookstores and Web stores?
  • Yes, there is a shift, but isn’t the digital emphasis over-inflated?
  • Is there a way to make money selling e-readers and digital content?
  • Will it last?
  • Will consumers tire of system incompatibilities, system crashes?
  • Is eye strain a problem that increases with e-reader use?
  • Will readers miss their print editions and decide to return?
  • How will this affect the bottom line? Will we be able to remain in business?
  • How do we offer these to our customers?
  • What options are available and how to determine what works best for your store.
  • Is it really worth the time and money for the Christian retail store to invest in digital books and readers?
  • What is our strategy for the future shift in sales?
  • What are the advantages of e-readers other than easy access to digital books?
  • How much longer can we survive? There is not enough profit in e-books to make it worth the effort.

SEEKING SOLUTIONS

We asked respondents to comment on the CBA industry task force’s inability to find a possible industry-wide platform for e-book sales:

RETAILERS:

“E-books will only increase, not decrease. A solution must be found—it’s not an option to give up. As Christians, we have the mind of Christ. We have the advantage; the solution is out there.”

“Readers and smartphones are in the ‘toddler’ stage of their existence. I don’t think there is enough stability in the market in order to come up with a solution that would be all-encompassing for our situation.”

“I think the task force threw in the towel too early. They should have continued to look into finding a digital content solution.”

“I am disappointed that an industry-wide solution could not be agreed upon.”

“The whole process was a waste of time. We cannot, in a brick-and-mortar store, compete with digital technology. If we are to remain solvent, we must focus on product diversification.”

“Very disappointed. I was hoping there would be a great plan for independent stores being able to sell digital books.”

“Not surprised. Our industry has had its head in the sand regarding most changes--technological, theological and societal--for decades. Only forced changes are acknowledged and then grudgingly. We do not set trends but scramble to catch up.”

“It makes sense: digital content works well when sold in large numbers. Independent retail stores all having different needs and systems, there is no one-size-fits-all answer to the problem.”

“Everyone has an interest in seeing their preferred system be chosen; it was the same years ago when CBA was trying to advocate a single inventory control system.”

“At this point it seems useless to come up with a reader for only Christian books. It would be impossible to compete with the Kindle or Nook.”

“It’s a shame that a consensus could not be reached. There has to be a solution for Christian bookstores to compete with the likes of Amazon and other e-book providers.”

“Not surprised ... too many different levels of technical efficiencies to make a single solution work industry-wide.”

“There is not a one-size-fits-all answer to the integration of digital books into the existing marketplace. We are a church bookstore with a membership of 8,000 people, and we still have only received a few requests for e-books. But another church bookstore in our area has a serious interest from their membership and will have to address the demand for their customers.”

“No problem. We’re not really that interested anyway.”

“Let’s try it again. We have to develop solutions that will help stores move forward with digital solutions.”

“It is a shame, first of all, that the Christian industry is so far behind the secular market. Christian retailers should be on the cutting edge of new technologies, not four or five years behind.”

“It’s the publishers’ job to put this together, not the trade association. Why? Because you will not get any agreement between independents, small chains and large chains, where trust is scarce (sadly).”

“I do understand the problem ... no single solution is best for the variety of retail outlets that CBA encompasses. We are very small ... the demand is not there at this point ... our folks are a bit slow to catch on to new things with regard to Christian books. We’ll get there and make a choice when the time is right.”

NON-RETAILERS:

“Disappointing: The Christian trade should be leading the way. Instead, we lag behind then try leaping onto the world’s bandwagons at the last minute only to land with a crash as we find they’ve moved.”

“This is best left to digital provider companies such as Integra Interactive.”

“The entire industry, including secular publishers, is in upheaval. I am not surprised a solution cannot be reached because I don’t think anyone has found an effective, all-encompassing solution yet. Everyone is scratching their heads.”

“Christian bookstores are burying their head in the sand and are not changing with the times. Not only with e-books, but also with the experience-based draw of coffee shops. Starbucks’ draw is the experience. Christian bookstores should be able to provide this better than anyone.”

“Retailers seem shortsighted—more interested on protecting their turf than nurturing the new frontier.”

“Publishers need to wake up to the reality that they are going to have less and less control over how people consume books and other content. They are unable to make that call. To think otherwise is foolish.”

“A digital content solution is but one part of the experience, and retail stores need to think about the experience they can control and influence.”

“In my view, the important challenge of the task force was to initiate dialogue on the process and begin spurring development of solutions into the marketplace. Over the next few months, we will begin to see a number of solutions from companies such as Spring Arbor and Signature Websites. It will be interesting to see to what degree stores will embrace the technology into their product mix. The next year or two will be fascinating in this regard.”

“It’s not surprising, because the options available for a digital content solution are rapidly changing. Combine that with a digital content solution being of differing degrees of importance to individual stores, and the discussion stalled.”

“For the sake of the industry, I had hoped it would end differently, but I must believe that during the process much about the world of digital content was learned and will in the end be of benefit to some, if not all in the industry.”

“Things are changing so quickly, I am not surprised that no consensus could be reached. Whatever they decided would have to be fairly broad and fluid to keep up with the rapidly changing landscape.”

“Christian retail stores cannot compete with e-books—it is a different business. They should serve with ‘physical’ products, service, information and a comfortable gathering place.”

“I think they were realistic for once. Without the ability to deliver an e-book to a common device (Kindle, iPad, iPhone, Android, Nook), you will never capture any critical mass. Customers do not want to buy yet another device either; any solution that requires a proprietary device is not a solution.”

“There is no possible way for a brick-and-mortar bookstore to participate/compete in the e-book world. When a consumer wants to buy or read on their mobile device, they can do it anywhere in the world, instantly, cheaply and with the best systems possible. The last thing they want to do is stop their purchase and drive to a bookstore just to add complexity, cost and confusion to the process.”

“I was disappointed, but not surprised they couldn’t reach consensus. This is a very traditional, hide-bound industry, which makes it difficult to flex and adapt quickly or easily to changing realities. Our general market counterparts are having even more trouble than we are, but it was still disappointing that our side wasn’t able to lead the way with a spirit of cooperation and collaboration.”

“Too many people with differing agendas and priorities.”

“The majority of CBA sales are in print format, and CBA can make its best contribution by focusing on that area of retail. It will be difficult for CBA to add value to the stores in the territory of e-publishing. The decision to disband the task force is wise.”

“The industry needs to try again.”