Thursday, May 24, 2012

Retail Catalogs Survive; and Thrive


Online spending may be increasing, but the venerable catalog is doing anything but fading away. In fact, it is still an important part of business for retailers.

“It’s basically a marketing tool,” said retail analyst Eric Beder, a managing director at Brean Murray, Carret & Co. “The beauty of a catalog is that you don’t have to go online to see it, so you can use it anywhere.”
More than 12.5 billion catalogs were mailed out to homes in the U.S. last year, according to the Direct Marketing Association, the largest global association for the marketing community.  And there are still those who use the catalog for what it was originally intended for: More than 89.6 million Americans bought an item from a catalog last year. 
A couple of years ago, some retailers decided to cut back on publishing catalogs in order to save money. That move proved to be a hard lesson in the power of the catalog, said Ken Ebeling, senior vice president of membership at the Direct Marketing Association.
“Sales plummeted,” he said. “They realized if they don’t keep their catalogs out there, their e-commerce will decline.”
In fact, some businesses that have never published catalogs before have decided now they want in.