It’s time for me to pull out my crystal ball and take a peek at what lies ahead for the 
craft market in 2009.
Prediction one - The economy will recover but slowly in 2009
The down economy is going to make it harder on crafters in two ways:
- People are going to think a lot harder before they pull their wallets out especially on non-essentials like craft items.
- People are going to be looking for extra ways to make money and anybody that’s ever been in a craft store is going to think to themselves “I could make that and sell it.” The crowded craft market is going to get a lot more crowded in 2009
Prediction two - This will be a crucial year for Etsy
2008 was the year that Etsy really gained traction with consumers. Traffic went through the roof so those that were in on Etsy early really prospered but all the attention brought a lot more shops which meant more competition. Etsy filled the gap as crafters abandoned eBay because of competition from foreign mass-produced merchandise. Rapid growth has caused growing pains as Etsy tries to keep up with increasing demands from consumers and shop owners. Etsy found the shoppers now they need to focus their attention on shop owners. Etsy needs to uphold the guides they created which made their site so attractive to crafters to begin with. They need to hold shop owners accountable for breaking the rules. There seems to be little penalty for breaking the rules even when pointed out and as competition increases more shop owners will break the rules to keep afloat. If Etsy can’t deliver on this they will lose increasing numbers of top shop owners.
Prediction three - Artfire will gain substantial traction in 2009
Artfire has only been open for about 3 months but they have grabbed the attention of the crafting community. Artfire is hungry - they want a piece of the pie Etsy stole from eBay. The question in 2009 is will they be able to catch up. Etsy has a good three year head-start and Artfire has the proverbial chicken and egg problem - how can they attract crafters if there is little traffic and how can they attract traffic if there are few crafters. They are listening to what crafters want and are spending heavily on advertising so if they can survive the start-up they will be a serious contender in the craft market.
Prediction four - The CPSIA will have little affect on the hand-made market
I’ve already shared my thoughts on the CPSIA and I hold true to those beliefs in 2009. One of two things is going to happen in 2009 with regards to the CPSIA:
- The law will be changed and small manufactures like crafters will be exempt.
- The law will go into effect but it won’t be enforced on one-man shops. As I stated in my previous article the government has a lot bigger things to do than to bust Aunt Martha for selling onesies at the church craft show.
By the same token Etsy can’t keep up to blatant violations on it’s site so I can’t imagine them investigating whether or not it’s shop owners are in full compliance with this super vague law.
So that’s it, the year will tell whether I’m right or wrong. So what can you do to prepare for 2009:
- Provide massive value
People are going to be more cautious with their money so offer awesome products and take the risk away from buying by offering generous guarantees. - Invest in your education
Competition is only going to increase in 2009 so you need to have every advantage you can. It’s not just what you sell, it’s also how you sell it. The $9 investment in my Prosper on Etsy Guide might be the best bargain in 2009. - Teach or offer a supply in 2009
As more people are looking to make some extra money the real winners will be those that sell training, patterns or supplies. During a gold rush the people that make money are the mining supply vendors and not the miners. - Check out Artfire
Here’s my blatant Artfire affiliate link which if I get 10 people to sign up gives me free listing privileges there. Here’s their direct link if you don’t want to use my affiliate link. Either way check them out. - Diversify
All the fuss over the CPSIA should point out how important it is not to put all your eggs in one basket. Regardless of what type craft products you make, hedge your bet by diversifying.
Here’s to happy and prosperous 2009
Norm Lanier - The Crafty Coach
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