Wondering what is coming in 2016? What to make the most of it? Larry Shaw, the Cat-U Dean of Merchandising looks at 8 Key trends that will absolutely impact holiday 2016. He also explains what each trend means for you and how to leverage it. This was a fascinating Pub Talk with lots a great take aways. Here are the trends Larry covers. Aging of the Catalog Audience Larry discusses how fast the audience is changing and what that means for prospecting. He talks about Baby Boomers and what they're looking for in both gifting and self purchase. Gifting Will it come back to where it was before the recession? What items are moving? What changes are we seeing in business gifting? Larry has some practical and interesting observations. Amazon and Marketplaces This was a real eye opener and offers some great advice for creating success with a younger audience. Mobile It's here and merchants can ignore it a their peril. Larry covers what is working on mobile now and techniques like real-time situational merchandising and "TenBestification". Emotional Personalization This is not your grandpa's personalization. Larry explains what customers are looking for and what categories it will work best with. Products with Function With entertainment on the rise, the shift to a purpose driven merchandise assortment is more important than ever. Better for You Thinking about trying to harness this feel-good market? Larry shares thoughts on what the trend means about customers, what they are buying, and why it matters. DIY It's the trend that's everywhere and growing. Larry offers some ideas on where this trend is heading and why it may prove to be very lucrative. We always love having Larry in the Pub. He has a broad merchandising and marketing background and his insights can span both realms. This talk is a wonderful way to stimulate your mind and get it focused on what changes are ahead and how to get the most from them.

1. Merchandising Trends
for
Holiday 2016
Catalog University Pub Talk
Larry Shaw, Dean of Merchandising
March 24, 2016

2. Who Am I
Dean of Merchandising at Catalog University
Founder and CEO of Merch Success, a full-service merchandise solutions
company for retail, catalog, and e-commerce companies
Merchandise strategic planning and analysis, and finding, developing,
and curating new unique and interesting products for catalog, retail, e-
commerce companies
25 years executive merchandising and marketing positions at leading
companies, including Southern Season, The Vermont Country Store, and
Nordstrom

3. What Will Be Covered
Eight key trends that will impact Holiday 2016
Merchandising
What each trend means for you and how to leverage
Questions and Answers

4. Key Trends

5. Trend: (Continued) Aging of Audience
• Catalog customer files and prospect lists
aging by 1-2 years each year
• Items that skew older will increasingly
drive more sales
• drive new items selection, pickups, inventory
buys, sizes purchased
• Baby Boomer tastes and wants driving
Senior Market products
• adult coloring kits, DIY, experiences
• Profile item sales by customer age

6. Trend: Decline in Traditional Gifting
• Under 65 audience is lot less formal
• rapid decline in Christmas cards purchased and sent
• People want to create their own new traditions
• Elf on a Shelf
• Products that once were big sellers are now
trending downward
• except for oldest segment of audience
• Over 50% of customers likely to buy 1+ gift cards
for Christmas
• Business gift giving continues to be down
• more companies donating to charities instead

7. Trend: Amazon and Marketplaces
• Increasing sales volume happening across
Amazon and other Marketplaces
• Younger and more mainstream audience than
catalog
• Each has different model, algorithm, way to
merchandise
• Common elements of success across
marketplaces
• Your customer service and operations ratings
• Customer feedback
• Ability to get the “Buy Box”
• Product Sales Rank
• Merchandise for each marketplace including
Marketplace specific items

8. Trend: Increased Shift to Mobile
• Fastest growing digital channel for all age groups
• approximately 30% of e-commerce sales in 2015
• Convey what item is in just small image and headline
• Merchandise for youngest, most forward thinking part of
audience
• Key 3-6 items per category with less info, not depth of
category
• “TenBestification”
• “Immediate Reaction Items” that drive action
• Real-time situational merchandising

9. Trend: Emotional Personalization
• Not your grandma’s personalization
• can’t just slap person’s name or initials on product
or ribbon or card
• “Emotionally Resonating” between gift giver
and recipient a big plus
• Customers want to have control and create a
version that works for them
• Spreading across all categories
• Art, Home Décor, Food, Wallpaper, T-Shirts, Socks

10. Trend: Products with Function
• Customers spending more disposable
income on entertainment, so other
products need to have more purpose
• “Dust Collector” items shrinking in
popularity, as low perceived value
• “Demonstrable” items drive higher
growth with digital channels

11. Trend: “Better For You” Products
• Trend towards less purchases, more
scrutiny and higher threshold for purchase
• People want to feel good about what they
are buying
• Artisan/not massed produced
• All natural/vegan/better ingredients
• Social cause
• Local
• Handcrafted
• Customers also want to feel good about
companies they support

12. Trend: Make It Myself/DIY
• Personal fulfillment of making something by hand
• Social activity
• Having control of ingredients, packaging, taste
profiles
• DIY cocktail mixes, cheeses, hot sauces, chocolate,
candy
• Ties in with Makers Movement and Artisan
Handcrafted trends
• Customers willing to pay same price or higher for
DIY kits than completed item

13. Questions and Answers

14. Key Info
Contact me with feedback or questions
larry@merchsuccess.com
802.379.5802
Sign Up for Classes at Cat U: http://cataloguniversity.com