Religious Products Consumer Sales

RELIGIOUS PRODUCTS CONSUMER SALES

(Remember, this information should be used as a base to build from. For current direct marketing statistics please refer to these titles: The Direct Marketing Statistical Fact Book the Direct Marketing Response Rate Study the Catalog Age 150theConsumer Directory of Mail Order Catalogsand theBusiness to Business Directory of Mail Order Catalogs.)

Religious Products

This small sales size segment ($590 Million) is divided by denominationality (Christian versus Jewish/Other) and by spiritual orientation (devotional versus gifts).

The top five businesses, all five of which are Christian devotional in orientation with $188 Million in sales, account for about one-third (33%) of segment sales.

Religious Products 1998 Consumer Sales

Segment Size:

No. Of Mail Order Businesses: 270

Mail Order $Sales ($Million): 590

Average Sales Per Business ($Million): 2.2

5 Leading Businesses

Sales

Name of BusinessSub-Segment($Million)

Christian Book DistributorsChristian: Devotional 63.6

Augsburg Fortress PublishersChristian: Devotional52.8

Concordia Publishing HouseChristian: Devotional35.0

Word Family Record & Tape ClubChristian: Devotional25.0

Nelson Word Church ServicesChristian: Devotional20.0

RELIGIOUS PRODUCTS CONSUMER SALES

SEGMENT:ReligiousProducts / SUB-SEGMENT:Christian
1998 SALES ($MILLION):250 / NO. OF
BUSINESSES: 180 / AVERAGE SALES PER BUSINESS ($MILLION): 2.9
MAIL ORDER
RATIONALE: / Unavailable at Retail:
• Devotional Products: • Specialties• Specialty range and depth
• Gifts/Cultural Products: • Price• Specialties• Line range & depth
PRODUCT DOMAIN: / Devotional Products: Clerical and individual educational, worship, meditation and devotional products
Gifts/Cultural Products: Cultural, ethnic and gift products with a religious association or source
CHARACTERISTICS
Products: Devotional
• Bibles/commentaries• Educational videos• Reference Materials
• Curriculum materials• Furniture• Ritual items
• Clergy vestments• Home devotional products• Study Aids
• Computer software• Parishional supplies• Worship music
• Counseling resources
Products: Gifts
• Audio tapes• Greeting cards• Religious jewelry
• Book clubs• Handicrafts• Stationery
• Confirmation gifts• Message checks• Videocassettes/records
• Food specialties
LEADING BUSINESSES ($5 MILLION+ SALES)
Christian Book Distributors / Abbey Press /  International Bible Society
Augsburg Fortress Publishers / Integrity Music / Paulist Press
Concordia Publishing House / Inspirational Network / Great Christian Books
Guideposts / Alpha Omega Publications / Leaflet Missal Co.
Word Family Record & Tape Club / David C. Cook Publishing / Gethsemani Farms
Nelson Word Church Services / Eagle System’s Children’s Books & Video / Christian Herald Association
Evangelical Christian Books / C.M. Almy & Son / Christian Gift Center

RELIGIOUS PRODUCTS CONSUMER SALES

SEGMENT:Religious Products / SUB-SEGMENT: Judaic/Other
1998 SALES ($MILLION):70 / NO. OF
BUSINESSES: 90 / AVERAGE SALES PER BUSINESS ($MILLION): 0.8
MAIL ORDER
RATIONALE: / Unavailable at Retail:
• Devotional Products: • Specialties• Specialty range and depth
• Gifts/Cultural Products: • Price• Specialties• Line range & depth
PRODUCT DOMAIN: / Devotional Products: Clerical and individual educational, worship, meditation and devotional products
Gifts/Cultural Products: Cultural, ethnic and gift products with a religious association or source
CHARACTERISTICS
• Bar Mitzvah gifts• Decorative accessories
• Books• Meditation supplies
• Cultural gifts
LEADING BUSINESSES ($5 MILLION+ SALES)
None

RELIGIOUS PRODUCTS CONSUMER SALES

FACTORS / CHARACTERISTICS
Generic Industry / Religious product market serviced by specialty religious products stores, departments and boutiques in larger stores, sales to laity by religious institutions, product premium fund-raising channels and mail and phone order direct response
Christian products at $3.0B in annual sales in 1996, including $1.3B in religious books; religious books sales growth 1992-1996 at 100% compared to 18% for overall adult books; Christian music at 3% of overall recorded music sales, 30% sold through secular retailers
Ownership / Private92% Public—8% Government0%
Conglomerate Ownership

• Gaylord Entertainment: Word Family Record & Tape Club
• Guideposts Associates: Guideposts
• Thomas Nelson Inc.: Nelson Word Church Services
• News Corp.: Zondervan

Market Segment / Laity
Clergy
Teachers
Choir directors
Administrators
Merchandising / Economy for institutional market
Religious and cultural specialties for laity
Icon oriented decoration accessories and jewelry
Customer Sourcing / Devotional: direct mail, religious magazines, newspapers
Gifts: direct mail, catalogs, religious magazines, newspapers
Customer Base
Marketing / Direct mail, catalogs
Seasonality / Religious and secular seasonality
Operations / Monastic order based (Abbey Press, Gethsmani Farms)
Publishing house based
Problems / Low order size
Infrequency of ordering
Institutional demand seasonality

RELIGIOUS PRODUCTS CONSUMER SALES

FACTORS / CHARACTERISTICS
Opportunities / Dual consumer/institutional markets
Limited retail store competition
Dual ethnic/denominational markets
Seasonal, religious life event gift occasions
Dispersed religious, ethnic communities
Trends / Increased adaptation of secular consumer catalog promotional and presentation technology
1997 Segment Events:

• BMG Direct acquires Word Family Record & Book Club from Gaylord Entertainment Co.

SPORTING GOODS CONSUMER SALES

Sporting Goods

This large sales size consumer specialty segment ($2,990 Million) is dominated by the Athletic Equipment sub-segment ($750 Million) accounting for 25% of segment sales. The next two sub-segments, Hunting Equipment and Fishing/Aquatic Equipment combined ($1,155 million) account for 39% of segment sales.

Sporting Goods 1998 Consumer Sales

Segment Size:

No. Of Mail Order Businesses: 700

Mail Order $Sales ($Million): *2,990

Average Sales Per Business ($Million): 4.3

5 Leading Businesses

Sales

Name of BusinessSub-Segment ($Million)

Bass Pro ShopsFishing/Aquatic Equipment 280.0

GolfsmithAthletic Equipment 126.0

Sportsman’s GuideHunting Equipment 125.5

Eastbay Running StoreApparel Oriented 142.5

Orvis Co.Fishing/Aquatic Equipment 95.9

*Note: Reclassification

Non fashion oriented portion of Apparel: Great Outdoors ($380 million sales) reclassified

as Sporting Goods: Apparel Oriented.

SPORTING GOODS CONSUMER SALES

SEGMENT:Sporting Goods / SUB-SEGMENT: Athletic Equipment
1998 SALES ($MILLION):750 / NO. OF
BUSINESSES: 195 / AVERAGE SALES PER BUSINESS ($MILLION): 3.8
MAIL ORDER
RATIONALE: / Unavailable at Retail:
• Price • Specialty• Specialty depth
PRODUCT DOMAIN: / Individual athletic equipment specialties
CHARACTERISTICS
Athletic equipment specialization
Upscale demographics
Consumer high tech performance appeal
LEADING BUSINESSES ($5 MILLION+ SALES)
Golfsmith / Golf Star / Greg Norman Secret
Edwin Watts Golf Shops / Professional Golfers Association of America / Adams Golf
Austad’s / World of Golf / Team Paradise
Sevylor / Mueller Sporting Goods / Soccer Madness
Sportime International / Baseball Express / Fairway Golf And Tennis
Sportsline USA / Greenspring Warehouse / Kil-lir Enterprises
Golf Day / Applied Golf / Competitive Edge
TSI Soccer / World Industries / Strictly Golf
Golfworks / Ringside Products / International Golf Tech
Dynacraft Golf Products / Mastergrip / Links Direct
Bost Enterprises

SPORTING GOODS CONSUMER SALES

SEGMENT:Sporting Goods / SUB-SEGMENT:Hunting Equipment
1998 SALES ($MILLION):580 / NO. OF
BUSINESSES: 110 / AVERAGE SALES PER BUSINESS ($MILLION): 5.3
MAIL ORDER
RATIONALE: / Unavailable at Retail:
• Price • Specialties• Line range and depth
• Trade brand names
PRODUCT DOMAIN: / Hunting outfitting for all seasonal, type of quarry and method of hunting categories
CHARACTERISTICS
Equipment specialization
Consumer high tech performance appeal
Limited specialty retail store competition
LEADING BUSINESSES ($5 MILLION+ SALES)
Sportsman’s Guide / Dillon Precision Products / Gun Parts
Smoky Mountain Knife Works / Natchez Shooter Supplies / Pachmyr Gun Works
Herter’s / Brownells / Stoeger Industries
Edge Co. / Dunn’s Supply / Mid South Shooting Supply
Midway Arms / American Industries / Bowhunters Warehouse
Bushnell Sports Optics / Walter Craig / A. G. Russell Knives
Manta Survival Knife

SPORTING GOODS CONSUMER SALES

SEGMENT:Sporting Goods / SUB-SEGMENT: Fishing/Aquatic Equipment
1998 SALES ($MILLION):575 / NO. OF
BUSINESSES: 105 / AVERAGE SALES PER BUSINESS ($MILLION): 5.5
MAIL ORDER
RATIONALE: / Unavailable at Retail:
• Price• Specialties• Line range and depth
• Trade brand names
PRODUCT DOMAIN: / Fishing and aquatic sports equipment and supplies
CHARACTERISTICS
Low order size
Importance of proprietary products
Increasing retail discount store competition
Consumer high tech performance appeal
LEADING BUSINESSES ($5 MILLION+ SALES)
Bass Pro Shops / J.D.’s Tackle / Vortex Fishing Systems
Orvis Co. / Northsman / Wenoka Sea Style
G. Loomis / Folsom Louisiana / Ski Limited Enterprises
Pacific Watersports Accessories

SPORTING GOODS CONSUMER SALES

SEGMENT:Sporting Goods / SUB-SEGMENT:Apparel Oriented
1998 SALES ($MILLION):380 / NO. OF
BUSINESSES: 60 / AVERAGE SALES PER BUSINESS ($MILLION): 6.3
MAIL ORDER
RATIONALE: / Unavailable at Retail:
• Specialties• Specialty range and depth
PRODUCT DOMAIN: / Functional Athletic, Team Sports Sporting Goods Apparel: Tennis, golf, running sports, boating, skiing, skating
CHARACTERISTICS
Upscale demographics
Private label, specialty products
Seasonally skewed
LEADING BUSINESSES ($5 MILLION+ SALES)
Eastbay Running Store / Simply The Best Sports / King Of The Mountain Sports
Road Runner Sports / Adolph Kiefer & Associates / S.I.R. Outdoor Catalog
Eurosport / The Finals / Any Mountain Ltd.
European Catalog / Jacques Moret Bodywear / Reliable Racing Supply

SPORTING GOODS CONSUMER SALES

SEGMENT:Sporting Goods / SUB-SEGMENT: Marine Equipment
1998 SALES ($MILLION):380 / NO. OF
BUSINESSES: 130 / AVERAGE SALES PER BUSINESS ($MILLION): 2.9
MAIL ORDER
RATIONALE: / Unavailable at Retail:
• Price• Specialties• Line range and depth
• Trade name brands
PRODUCT DOMAIN: / Specialty boats and outfitting equipment across all marine specialties
CHARACTERISTICS
High order size
Depth of inventory of specialties
Marine gift products
Upscale demographics
Mail order/retail store business synergies
LEADING BUSINESSES ($5 MILLION+ SALES)
Overton’s / Tempo Products / Raritan Engineering Co.
West Marine Products / Moore & Battle Ltd / Gougeon Brothers
E&B Marine Supply / ITT Jabsco Boaters Catalog / Tidewater Workshop
Defender Industries / Avon Marine / We-No-Nah Canoe
Marine Surplus Depot / Northwest River Supply

SPORTING GOODS CONSUMER SALES

SEGMENT:Sporting Goods / SUB-SEGMENT: Hiking, Mountaineering/Ski Equipment
1998 SALES ($MILLION): 125 / NO. OF
BUSINESSES: 30 / AVERAGE SALES PER BUSINESS ($MILLION): 4.2
MAIL ORDER
RATIONALE: / Unavailable at Retail:
• Specialties• Specialty range and depth
PRODUCT DOMAIN: / Hiking, mountaineering and skiing specialties and accessories
CHARACTERISTICS
Equipment specialization
Limited specialty retail store competition
Upscale market
Consumer high tech performance appeal
LEADING BUSINESSES ($5 MILLION+ SALES)
Recreational Equipment Inc. / Sessions Snowboard Shop / Performance Snowboarding
Burton Snowboards
SEGMENT:Sporting Goods / SUB-SEGMENT:Equestrian Supplies
1998 SALES
($MILLION):105 / NO. OF
BUSINESSES: 35 / AVERAGE SALES PER BUSINESS ($MILLION): 3.0
MAIL ORDER
RATIONALE: / Unavailable at Retail:
• Specialties• Specialty range and depth
PRODUCT DOMAIN: / Horse-rider and horseowner riding apparel, equipment and supplies
CHARACTERISTICS
High Order Size
Upscale demographics
Limited specialty retail store competition
Mail order/retail store business synergies
LEADING BUSINESSES ($5 MILLION+ SALES)
State Line Tack / Libertyville Saddle Shop / . Miller Harness Co
Chick’s Harness & Supply

SPORTING GOODS CONSUMER SALES

SEGMENT:Sporting Goods / SUB-SEGMENT: Camping Supplies
1998 SALES ($MILLION):95 / NO. OF
BUSINESSES: 35 / AVERAGE SALES PER BUSINESS ($MILLION): 2.7
MAIL ORDER
RATIONALE: / Unavailable at Retail:
• Price• Specialties• Specialty range and depth
PRODUCT DOMAIN: / Camping full line and specialty products
CHARACTERISTICS
General camping line or specialties
Mid scale, down scale market
LEADING BUSINESSES ($5 MILLION+ SALES)
Campmor / Huntmaster Survival Gear / Igloo Products
Hard Hat

SPORTING GOODS CONSUMER SALES

FACTORS / CHARACTERISTICS
Generic Industry / Athletic and sports equipment, footwear and clothing at $39.2B in 1995, $41.7B in 1996, at $43.0 in 1997, projected at $44.3 in 1998
Bicycles, pleasure boats, RV's and snowmobiles at $19.3B in 1995 with 10% growth, $19.9 in 1996, at $21.2B in 1997, projected at $22B in 1998
Growth in sporting goods retail sales in 1995 of 5.0%, in 1996 at 6.1%, in 1997 at $3.0%, projected at 3% in 1998
Athletic and sports footwear in 1995 at $11.4B, at $12.8B in 1996, $13.3B in 1997, projected at $13.7B in 1998
Sports clothing at $11.1B in 1996, $11.9B in 1997, projected at $12.4B in 1998
Equipment sales flat at $17.4B in 1995, at $17.7B in 1996, (4.6% decline), 17.7B in 1997, projected at $18.2B in 1998
Exercise equipment at $3.2B in 1996, with treadmill sales at $1B+
Strong gains in golf equipment, 26 million golfers (5 million women) shift to more elaborate and expensive equipment, $15B/year spending in equipment and merchandise, $1.25B on golf related gifts by non-golfers
Marine accessory market at $1.2B
Increased specialty retail store discount competition (fishing products)
Camping market -- rough being taken out of roughing-it; minimalism out of fashion -- huge family tents, comfort enhancement, foldable kitchens
450,000 fly fishermen
Corporate wilderness adventure market at $100 million
54 million active skiers
Ownership / Private81% Public—19% Government0%
Conglomerate Ownership

• Adorama: Leisure Pro
• Atlanta Cutlery: Atlanta Cutlery
• Boy Scouts of America: Boy Scouts Of America
• Bausch & Lomb: Bushnell Sports Optics
• Delia*s: TSI Soccer
• Encore House: Marine Surplus Depot
• Genesis Direct: Competitive Edge, Hot Off The Ice, Soccer Madness
• H I G Capital Management: Back In The Saddle
• Hanover Direct: Austad's

SPORTING GOODS CONSUMER SALES

FACTORS / CHARACTERISTICS
Conglomerate Ownership (cont.)

• MacAndrews & Forbes: Coleman Co.
• Northern Hydraulics: Herter’s
• Orvis: Orvis Co.
• Petsmart: Wiese Vet Supply
• Trend-Lines: Golf Day
• Venator Group: Eastbay Running Store
• West Marine: E & B Supply, West Marine

Market Segmentation / Male: Fishing, Camping, Hunting, Mountaineering, Marine
Upscale: Marine Equipment, Equestrian Equipment, Sporting Goods Apparel
Mid scale, down scale: Fishing, Camping, Hunting Equipment
Merchandising / Increased emphasis on soft goods
Customer Sourcing / Substantial class and special consumer interest magazine sourcing with cold catalog list prospecting
Customer Base
Marketing / Database media: Catalog, direct mail
Heavy frequency of mailings to active customers
Emphasis on customer service and guarantee
Seasonality / Seasonality dictated by sporting or recreational specialty of business
Operations / Decreasing, involvement in own manufacturing
Automated fulfillment for peakload apparel oriented businesses
Problems / Increasing price competition from retail mass merchandisers for non proprietary products
Inventory variety coverage for specialty equipment marketers
Seasonality of specialty product demand
Opportunities / Consumer high tech appeal in performance and look
Increased Soft Goods mix
Trends / Diversification of outdoors catalog into dual season, Spring and Fall, merchandising
Increasing consolidation in Marine Equipment sub-segment
Increasing turmoil in Hunting Equipment sub-segment

SPORTING GOODS CONSUMER SALES

FACTORS / CHARACTERISTICS
Trends (cont.) / 1996 Segment Events
 Successories acquires British Links

• West Marine acquires E & B Marine
• Petsmart acquires State Line Tack
• Gander Mountain re-enters bankruptcy

1997 Segment Events

• Genesis Direct acquires Competitive Edge Golf
• Woolworth acquires Eastbay
• Herter’s acquires Restle Decoy Co.
• Genesis acquires Soccer Madness
• Boaters World acquires Outer Banks Outfitters

1998 Segment Events
H I G Capital Management acquires Back In The Saddle
Genesis Direct acquires Edge Co.
Genesis Direct closes down Training Camp
Genesis Direct in first public offer (Competive Edge Golf, Not Off Me Ice, Soccer Madness)

STATIONERY CONSUMER SALES

Stationery

This small sales size segment ($690 Million) is skewed toward a mid-scale female market. Sales segment stresses are low order size, infrequent ordering and retail price competition.

Stationery 1998 Consumer Sales

Segment Size:

No. Of Mail Order Businesses: 110

Mail Order $Sales ($Million): 690

Average Sales Per Business ($Million): 6.3

5 Leading Businesses

Sales

Name of BusinessSub-Segment ($Million)

Checks In The MailSpecialized Stationery 85.7

Current ChecksSpecialized Stationery 84.3

CurrentGeneral Stationery 84.2

Concepts DirectGeneral Stationery 79.2

Designer ChecksSpecialized Stationery 54.9

STATIONERY CONSUMER SALES

SEGMENT:Stationery / SUB-SEGMENT: Specialized Stationery
1998 SALES ($MILLION):405 / NO. OF
BUSINESSES: 90 / AVERAGE SALES PER BUSINESS ($MILLION): 4.5
MAIL ORDER
RATIONALE: / Unavailable at Retail:
• Specialties• Specialty depth
PRODUCT DOMAIN: / Personalization, personalized checks, announcement, stationery specialties
CHARACTERISTICS
Difficulty of trasitory market prospecting
Personalized stationery, appointment books, address labels, annoucements, invitation stationery, rubber stamps, wine labels
LEADING BUSINESSES ($5 MILLION+ SALES)
Checks In The Mail / Check Gallery / Wedding Thoughts
Designer Checks / Hero Arts / Now and Forever Wedding Stationery
Artistic Greetings Checks / Inkadinkado / Image Checks
Styles Super Checks / Custom Direct Check Printers / Rexcraft

STATIONERY CONSUMER SALES

SEGMENT:Stationery / SUB-SEGMENT: General Stationery
1998 SALES ($MILLION):235 / NO. OF
BUSINESSES: 10 / AVERAGE SALES PER BUSINESS ($MILLION): 22.5
MAIL ORDER
RATIONALE: / Unavailable at Retail:
• Price• Line range and depth
PRODUCT DOMAIN: / General line of personal and home stationery
CHARACTERISTICS
High product margin
Combined self-use/fund-raising markets
Mid scale, down scale market
Low order size and order frequency
Holiday gift season orientation
LEADING BUSINESSES ($5 MILLION+ SALES)
Current / Artistic Greetings / Bruce Bolind
Concepts Direct / American Stationery Co./Rytex Co.

STATIONERY CONSUMER SALES

SEGMENT:Stationery / SUB-SEGMENT:Greeting Cards
1998 SALES ($MILLION):50 / NO. OF
BUSINESSES: 10 / AVERAGE SALES PER BUSINESS ($MILLION): 5.0
MAIL ORDER
RATIONALE: / Unavailable at Retail:
• Price• Specialty messaging• Line range and depth
PRODUCT DOMAIN: / Alternative messaging or special purpose greeting cardline
CHARACTERISTICS
High product margin
Multiple seasonal potential
Holiday season oriented paper products:
• General and specialized and personalized greeting card lines
Gift wrapping
Calendars
LEADING BUSINESSES ($5 MILLION+ SALES)
Trumble Greetings / Henderson Bailey

STATIONERY CONSUMER SALES

FACTORS / CHARACTERISTICS
Generic Industry / Personalized check business at $3.5B
Overall Greeting Card industry sales at $6.3B, Hallmark Cards share at 42%, growth at 1-2% per year; American Greetings at 35%, Gibson’s at 7%
High gross margins and distribution costs of consumer stationery products
Retail distribution through consumer stationery specialty store chains and boutiques and departments in department and mass merchandising stores
Ownership / Private—76% Public24% Government0%
Conglomerate Ownership

• Artistic Direct: Artistic Greetings
• Deluxe Corp.: Current Checks
• MDC Communications: Artistic Greetings Checks
• Taylor Corp.: Current

Market Segmentation / Female
Mid scale, down scale: Current
Mid scale, upscale: Small specialty marketers
Merchandising / Product differentiation merchandising:

• Personalization of design message or art
• Regional, imported, ethnic specialties
• Functional specialties (wine labels)
• Convenience specialties (address labels, bookmarks)
• Educational specialties (calendars, scrolls)
• Personal Expression products (themed checks)

Order enlargement merchandising

• Discounts, gifts forgiving of delivery charges for exceeding order thresholds

Fund-raising reselling orientation

• Current

Customer Sourcing / Shelter and special interest magazine advertising and cold catalog and insert and other direct mail sourcing
Customer Base
Marketing / Catalog publishing and direct mail solos

STATIONERY CONSUMER SALES