Following a terrible couple of years for the catalog industry, with many titles either shutting down completely or significantly scaling back their circulation as a result of rising costs and the recession, the situation had started to look like it was, at the very least, not getting any worse. Not so, however, according the American Catalog Mailers Association (ACMA). I have been reporting for several months (see here and here) that catalogers such as J. Crew, Cabela’s and Cornerstone are increasing either page counts or circulation rates, which is a big change from the reductions of late. There’s even an indication that multichannel retailers are ready to start testing the waters again with new catalogs. Relaunched gifts and gadgets merchant Sharper Image mailed its first print catalog, which had 68 pages, in time for Father’s Day. The company is planning five mailings this year. Specialty toy retailer Fat Brain Toys also recently mailed its first catalog, in early June, and has plans for a second mailing in the fall. Thanks to a possible exigent rate case from the US Postal Service and other factors, however, the catalog industry may soon be facing more trouble, putting an end to any gains it may be making. In his June journal, ACMA VP and deputy director Paul Miller discusses the new series of hurdles being faced by the catalog industry, which include an expected exigent filing from the US Postal Service in July. The average increase is expected to 5% but, catalog rates could increase by as much as 10%. The ACMA plans to fight the increase and encourages catalogers not to decrease circulation rates. Miller also talks about new privacy legislation that would require direct marketers give consumers a way to opt in before their personal data is used for advertising or commerce purposes. “In its current state, the draft bill could cripple all marketing channels, including catalogs, email, and web marketing,” writes Miller. Finally, a new Colorado law is discussed that requires customers in that state get a statement recapping their purchases. Marketers are required to send Colorado tax collectors the necessary information to reach customers for back sales taxes. One way catalogers and suppliers can help address these challenges by becoming members of ACMA, says Miller.
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By Joe on Jun 22, 2010
The USPS is also looking at a catalog incentive program for 2011 in which cataloggers would be able to mail additinal ounces at the the 3.3 oz rate. This could potentially allow them to increase page counts.
By Chantal Tode on Jun 22, 2010
Joe, thanks for bringing this up. The USPS discussed this at the National Postal Forum this year. The discount would be available to catalogers who meet or exceed a specific volume threshold. As far as I know, this is still under consideration but, here's a http://www.npf.org/pdfs/2010Pres/FLAT-11-Foti-Noble.pdf" rel="nofollow">link to the USPS' catalog industry presentation at the NPF, which includes some details.
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