Opportunities exist for retailers and suppliers ready to break new ground

Last year was an extraordinary one for our country by anyone's estimation. This was no less true for Christian and inspirational publishers, manufacturers and retailers. As an industry, we have faced significant challenges in recent times with store closings, suppliers going out of business and an underlying uncertainty about the future.

But the general business rule remains true, that there is always opportunity in some confusion and uncertainty. And through our company's unique vantage point of servicing a wide range of retailers and vendors in the Christian products market over the past 40 years, we believe there is much to get excited about concerning the opportunities in and future of the markets that we serve.

As they talk with retail store buyers and our gift and publisher vendors on a daily basis, our Genesis Marketing Group and Revelation Marketing Group representatives are reminded that opportunities to experience good results in these challenging times do abound for those that are rolling with the punches by doing it right.

From a retail perspective, the stores we serve that are thriving in this environment focus on the following:

RELATIONSHIPS

The successful store works at building and strengthening community relationships. Although how churches are purchasing product has changed—and there is still a healthy market for retailers to sell direct to local congregations—retailers often miss out on trying to connect with those who attend churches in their area.

The vast majority of Christian retail channel shoppers goes to church, and yet on average only a small percentage of church attendees ever shops in a Christian retail store. Innovative retailers focus on going after that market by working with local churches with coupons, youth group fundraisers and other incentives to drive traffic.

SPECIAL MARKETS

According to a recent report by the U.S. Census Bureau, the nation's Hispanic and Asian populations will triple over the next half century, and non-Hispanic whites will represent about one-half of the total population by 2050.

We have retailers that have intentionally pursued this huge purchasing block by creating signage letting potential customers know that they have product in their language and then having a section devoted to books and giftware for this market.

Meanwhile, we continue to hear that the average buyer in a Christian store is female and in her mid-50s. So what can a store do to attract a younger clientele? We have seen phenomenal growth in this segment even this last year with retailers providing products that appeal to a teenage or 20s crowd and then marketing to local colleges and church youth groups to get the word out.

GENERAL GIFTS

We all want to get back to the day when Christian retail stores were destination locations for shoppers. Buyers that bring in the right mix of inspirational and general market gifts and books let their customers know that they can come to their store and find products for all occasions.

A good example includes retailing wholesome cookbooks and current events/political books that consumers would normally head to the local big box to find. We need to remember that if someone does go to a general market store for that cookbook, they might well find the latest Christian best-seller there, too, discouraging them from coming back to our stores.

EXPERIENCE

Winning stores are also working on creating an inviting environment. Why do so many folks love to go to Barnes & Noble? Because it is a comfortable and inviting place to go.

I have visited several Christian retailers in the last year that have really created a warm atmosphere that begs consumers to linger, invite friends and spend time in the store. And it doesn't have to take a big budget to compete with the big stores. It is very possible to create this kind of atmosphere at a budget level with a nice couch and chair or two, free or low-cost coffee and water, and free Wi-Fi.

Many stores also have areas that they have opened up for community or church use and encourage Bible studies, small group meetings and pastor lunches.

MERCHANDISING

Vendors that create visual interest—especially in the gift areas of the store—draw customers in. Are your products displayed in an eye-catching manner? We see dozens of retailers who have figured this out by creating a look that "pops"—a mixture of complimentary product categories, colors and styles that are rotated and changed periodically.

When a customer enters the store, they see something new and this discovery keeps them engaged and returning. Categories for which this works especially well are jewelry, wall art, tabletop gifts, toys and home décor.

From a vendor perspective, successful strategies we have observed this past year include:

INSPIRATION

While general market products can have their place in Christian stores, scriptured and Bible-themed products are still king. Consumers of Christian retailers primarily come because they are looking for intentionally Christian product—be it Bibles, books, giftware or home décor.

Our vendors that have continued to develop and produce these types of products—even when others are cutting back on SKU counts—have seen their business grow due to increased market penetration.

INCENTIVES

Willingness to continue incentives to the retailer, despite the pressure to cut costs, is vital. Vendors who have continued to offer innovative discounts, dating, freight options, free product and display programs to retailers that pay within terms are seeing increased sales.

Without a doubt, vendors more than ever are guarding receivables and cash flow, but finding that sweet spot with retailers is still critical.

I am often asked by retailers, vendors and employees, "Where do you see our industry five years from now?" I do not have the specific answer to that question, but I do know this: There is a demand for Christian books and giftware, and the Christian retailer remains the best means of meeting this demand.

However, success in this area has required and will continue to require significant changes in how retailers relate to prospective and current customers. The demand will also continue to fuel the need for innovative, helpful and Christ-centered publishing and gifts.

So the answer I give is that we all have a responsibility to share the gospel message utilizing the talents and gifts that God has entrusted each of us with—and we'll leave the success and failures to Him because that is what Christ calls us to do: "But seek first his kingdom and his righteousness, and all these things will be given to you as well" (Matt. 6:33, NIV).