Are Print Catalogs Extinct?

The following is from an article by Kate Muldoon in DIRECT Magazine:

Excerpts from THOSE OF US IN CATALOG LAND SEEM TO BE IN A TIME WARP that causes us to think that print catalogs can look and work just like they always have. But we also don't hesitate to turn our sights to the future and predict that, with or without print catalogs, the Internet will be the road to sales galore.

Well…yes and no. It's true that electronic marketing can be a very good thing. Some catalogers report that, by far, most of their new customers come from constantly tested and refined search engine marketing programs. The downside is that often, customers acquired online don't spend as much. One possible reason is that we aren't adapting our print catalog strategies well enough so fresh customers can learn how and why they should keep buying.

Electronic marketing certainly seems to be the be-all and the end-all. In its 2005 Multichannel Retail Annual Trend Report, Abacus notes that Web site sales will surpass catalog purchases within the next 19 months. The Financial Times reports some analysts claiming that push e-mail has the potential to address a global market of 400 million users. With more and more companies such as Panera Bread, and cities like Orlando, FL and Philadelphia offering or planning to offer Wi-Fi for free Web access, the number of those able to go online will only grow.

Then there are the newer electronic sales avenues — bluecasting, for one — that have the potential for grabbing such audiences as commuters passing an area where video ads are beamed from billboards into their Bluetooth-enabled mobile phones. Sounds farfetched, but Direct Newsline reported in August that a firm in the United Kingdom pulled nearly 15% response using this sales method. As Apple has made available a video-ready iPod to its already 16 million-plus users, who knows if this won't be another way to reach new customers. And don't forget podcasting. It could be an interesting opportunity for catalogers with excellent editorial content on their Web site (like L.L. Bean) to create subscriptions for audio versions of that useful information.

All good reasons why it would not be insane to think print catalogs are indeed dead.

Nevertheless, here's why print catalogs should get stronger than ever:

Catalogs are free
A new mindset is dawning. Why pay if you can get it free? The Internet — which easily leads us to free audio and video downloads, podcasts, and information and services of all kinds — has helped convince Americans that getting things gratis is not only possible, but actually is becoming a requirement. Beyond the Web there are free newspapers, video (just set the timer to record what you like), product reviews, samples, etc. Catalogs, which can offer credible information on how to dress or decorate, what to give for gifts, solutions for the office and more, are like free magazines that provide a quick and simple way to obtain those very same items.

Consumerism is growing worldwide
An increase in advertising is one sign that a country is ready to buy more goods. Based on recent numbers in the Financial Times, agencies are betting that consumerism will grow in emerging countries. (“Worldwide [advertising] spending will rise to $406 billion this year from $386 billion last year.”) The countries being targeted are Brazil, Russia, India, China, Saudi Arabia and Indonesia. Many catalogers already have had some experience in Japan and Europe, and to some extent can use that knowledge to tap into new markets.

Granted, the ability to reach consumers in these areas naturally varies. Just two positive examples: (1) Brazil has had a thriving direct marketing business for years; (2) India's Department of Posts is attempting to meet customers' needs by considering adding e-post, by which consumers can access low-cost Internet service or have e-mail messages delivered to their door.

Catalogs make it easy to dream
The Internet is grand for finding something you want when you know what you want. But browsing by calling up electronic page after electronic page doesn't feel the same as comfortably sitting back and flipping the pages of a paper catalog and dreaming about what you might want in your life — and then having the choice of buying those things almost any way you like.

Catalogs are portable
OK, many new types of electronic communication are portable too. But really, what kind of detail can you see on those little screens? Yes, they'll get bigger, but never as big as those luscious printed catalogs you can pop in a bag, briefcase or pocket.

But we do have to rethink what our catalogs need to look like and offer. To encourage online customers to order more frequently, we may choose to adopt some of the strategies used by companies that mainly employ catalogs as traffic generators. Retailers have long known how to create and produce breathtaking catalogs whose main purpose is to drive you to their stores. As electronic marketing continues to grow, we should be seriously considering adding Internet-aimed, traffic-generating catalogs to our mix. As vendors often pay or offset the expenses for these traffic generators, there's little reason not to test the concept.

What does a traffic-generation catalog look like? More often than not it's printed on the glorious high-quality, high-weight paper you'd love to use but never have been able to afford. It has far fewer pages than a catalog and sometimes promotes a special event. Its intent is to create enough pleasure and excitement through mood-enhancing photography and tantalizing copy to get consumers to make the move to the Web or store — and buy!

KATIE MULDOON (kmuldoon@muldoonandbaer.com) is president of DM/catalog consulting firm Muldoon & Baer Inc. , Palm Beach Gardens, FL.

Katie Muldoon's book, Catalog Marketing, is considered the industry bible.