aislingmackey

Cara Craft SuppliesDIYWedding.ie : 

Cara Craft SuppliesDIYWedding.ie An example of an SME in Ireland today

What will be covered: 

What will be covered Cara Craft Supplies/DIYWedding.ie story Steps we took Why it’s working Lessons Learned that apply to all young businesses Areas the EU can help Going forward – expanding into the UK and EU

Section 1: 

Section 1 Cara Craft Supplies/DIYWedding.ie story Lessons Learned that apply to all young businesses Going forward – expanding into the UK and EU

A little History: 

A little History Background 8 Years in the Software Industry, managing software product sets Lived in the USA for 3 years where I took up quilting and other crafts Witnessed huge supply of craft materials – Michael’s stores, Joanne’s Returned in 2002, started Cara Cards 2004

1st Step – Cara Cards Ltd.: 

1st Step – Cara Cards Ltd. Set up Cara Cards Ltd. Handmade Greeting Card Company Handmade Greeting Cards extremely popular in the UK, and a growing market worldwide After 6 months was selling to approximately 30 shops and growing. Became very frustrated at lack of supplies in Ireland I was ordering in from the UK, USA, Far East Lengthy shipping times, customs duties, exchange rates – didn’t work well for the small quantities I was importing

2nd Step: 

2nd Step Spotted a potential gap in the market and decided to set up a craft supplies site for Ireland Proven market abroad - 40+ such sites in the UK, ’00s in the USA Growing Crafts Market - $10bn in the USA, $3bn in Scrapbooking alone. Built the website myself and sourced supplies from all over the world on the Internet Launched Cara Craft Supplies, www.craftsupplies.ie, in September 2004

Cara Craft Supplies ProductsCard Making and Scrapbooking: 

Cara Craft Supplies ProductsCard Making and Scrapbooking

Cara Craft Supplies Now: 

Cara Craft Supplies Now June 2005 – moved into first official (tiny) premises, moved again in December 2005 to premises 3 times larger, which we’ve filled already  December 2005 – awarded employment grants by DCEB and hired two part time employees Cara Craft Supplies Now: Ireland’s first dedicated Craft Supplies Website Over 2,000 customers Shipping to UK, Europe and as far afield as Brazil More than 2 million hits per month Profitable and has 2 part time employees as well as myself

Cara Craft Supplies – not just an online shop: 

Cara Craft Supplies – not just an online shop On the Internet, as with other retail outlets, footfall is everything April 2005 – launched the online Crafter’s Forum May 2006 – 60,000th post on the forum. Keeping the Site Interesting and lively Monthly Competitions and Craft Challenges Online Classes Online Gallery Monthly Newsletters and Special Offers Sale Section New Products each week

Why is it working?: 

Why is it working? Online Craft Supplies Market was already working in other countries UK, USA, Australia, France Research showed a need in Ireland Knit and Stitch show, CCOI course, lack of bricks and mortar shops Products are small and 2D – display well on the Internet and have low cost of shipping Customers are geographically disparate often in remote areas with little shopping choice

Why is it working?: 

Why is it working? Crafts Market as a whole is growing $30bn industry in the USA Scrapbooking $4bn of that and growing Site is innovative, interesting, friendly and constantly changing So far, so good :)

3rd Step – DIYWedding.ie: 

3rd Step – DIYWedding.ie February 2006 I had an idea Cara Craft Supplies was getting regular requests from brides looking for materials to make their own invitations We had a set of free MS Word Templates which we sent out on request. Requests for these were increasing Wouldn’t it be great to have a website dedicated to making it easy for brides to make their own invites?

www.diywedding.ie: 

www.diywedding.ie April 2006 – www.diywedding.ie launched A one-stop shop for making your own invites. 50+ kit designs which include MS Word Templates and Instructions, or you can design your own Brides save anything from €200- €2000 1 million hits in 2nd month of business Fully up and running and profitable by month #2 !! In the Irish Times, Daily Mail and Star. Adding new products all the time – favours, albums

Section 2: 

Section 2 Cara Craft Supplies/DIYWedding.ie story Lessons Learned that apply to all young businesses Going forward – expanding into the UK and EU

Lessons Learned – and areas where the EU can help. : 

Lessons Learned – and areas where the EU can help. Lessons learned and mistakes made  Know your Market Don’t venture into areas you aren’t familiar with Do your Market Research Feet on the Street, not just demographics Talk directly to potential customers

Lessons Learned: 

Lessons Learned 3. Get a good Accountant early Unless you are great with accounts, a good accountant can save € € € from an early stage 4. Market Carefully in your Niche Area Avoid Generalist Trade Shows Market in your niche area only to start Consider print marketing costs carefully

Lessons Learned: 

Lessons Learned A good supplier is worth their weight in gold Monitor and plan your cash flow Crucial for knowing when you can spend, when you can’t Be prepared to muck in and do everything it takes You can’t be precious about which tasks you’ll do if you want to make the business work

Lessons Learned: 

Lessons Learned 8. Approach everything with enthusiasm and optimism  It may take 100 letters to editors before you get your first piece of PR, but when you get it, it’s worth it Keep up with your accounts It’s more work than you might think

Lessons Learned: 

Lessons Learned 10. Listen to your customers They tell you what products they want, how much they are willing to pay, what makes them happy and what doesn’t. Survey or do focus groups on a regular basis if possible. 11. Price based on what customers are willing to pay, not on cost of goods A product is only worth what a customer is willing to pay for it.

Lessons Learned: 

Lessons Learned 12. Keep moving, learning and evolving It’s a competitive marketplace Success may not come from where you originally thought Keep an open mind Look out for market opportunities Handmade Greeting Cards Card Making Supplies DIY Wedding Supplies  The World 

Section 3: 

Section 3 Cara Craft Supplies/DIYWedding.ie story Lessons Learned that apply to all young businesses Going forward – expanding into the UK and EU

Next Steps: 

Next Steps Have purchased www.diywedding.eu www.diyinvites.eu The Internet opens up European markets to all – Ireland is a small market, and lagging in broadband usage. Aside - .eu domains – 1.7 million+ sold so far. 24% bought by Irish entities! Sites yet to arrive, but it’s just a matter of time.

Expanding into EU Markets: 

Expanding into EU Markets Advantages of EU Market No customs duties Huge market potential – UK market alone = 10 times the size of the Irish Market The Internet provides a huge advantage and ease of access to customers, never before available Common currency

Expanding into the EU Market: 

Expanding into the EU Market Challenges Understanding foreign markets Where to advertise Understand local trends and fashions Shipping/Export costs and charges Making it reasonable for the customer while maintaining competitive pricing Providing a quick, efficient service from a distance Language Issues

Expanding into EU Markets: 

Expanding into EU Markets Costs As with any expansion plan Setting up new websites tailored to foreign audiences Advertising budget Staff to handle the flood of orders  Hopefully the European Commission can help! 

Thanks for listening! : 

Thanks for listening! www.craftsupplies.ie www.diywedding.ie If anyone would like a copy of this presentation, please leave your email!