CRAFT BUSINESS NEWS|Professional Crafters.com

Holiday decorations are moving away from the traditional red and green. Holiday decor will be available in all shades of blue, purples, browns, champagne, platinum, black and white. In home decor, people will see more options in "winter themed" decorating versus Christmas decorating. (See CHRISTMAS TRENDS 2008)

The show was smaller than in the past - less exhibitors, booths, and buyers. Reportedly sales were down and and costs were up.

Faythe Levine set out in 2006 to film craft fairs, interview artists in their studios and create "Handmade Nation: The Rise of DIY Art, Craft, and Design." Shot in 15 states, it will be a feature-length documentary when completed. Levine resides in Milwaukee, where she operates the Paper Boat Boutique & Gallery. A companion book of the same title is due out in November.

Arts and crafts retailer Michaels Stores Inc. has named Elaine Crowley executive vice president-chief financial officer, effective Aug. 18. Crowley replaces interim chief financial officer Lisa Klinger, who serves as senior vice president and treasurer. Klinger assumed the temporary post after former CFO and president Jeffrey Boyer resigned in April. Crowley most recently worked at The Bombay Company Inc. as senior vice president, chief financial officer and treasurer.

"We are very excited to have a chief financial officer with Elaine's background and experience join our team. In addition to her financial acumen, her understanding of supply chain, sourcing and extensive retail experience make her a great fit for Michaels," said Brian Cornell, chief executive officer of Michaels Stores. Irving-based Michaels owns and operates 989 stores in 49 states and Canada.

Martha Stewart Living Omnimedia Inc. anounced its Martha Stewart Crafts line would be sold in Wal-Mart stores in the U.S. and Canada. The New York-based company said two new assortments, Martha Stewart Create and Martha Stewart Celebrate, will debut in the majority of Wal-Mart stores in July.

China Craft Gift Suppliers to Raise Prices

92 percent of Greater China craft gift suppliers plan to raise prices in the coming months, according to a recent China Sourcing Report. The challenges behind the price increase include the rising Yuan, cost of raw materials, design piracy and higher labor costs. Of these, 30 percent cited the Yuan-dollar exchange rate as their primary concern; trailed at 26 percent by raw materials. Another 21 percent cited design piracy, 13 percent said price competition was their main concern, and 10 percent named higher labor costs.

"While nearly all export industries in Greater China are being affected by higher production costs and a rising Yuan, craft gift suppliers are particularly hard hit because they operate at extremely low margins," said report publisher Spenser Au. "However, due to intense competition for orders, most suppliers have no choice but to limit price increases to less than 10 percent."

Despite higher prices and the flagging U.S. economy, however, most Chinese suppliers remain focused on the U.S. and EU markets, and anticipate growth: 79 percent predict growth of more than 10 percent and a majority of those surveyed are expanding capacity by more than 20 percent.

Back-To-School Spending

Total back-to-school spending this year is estimated to reach $20.1 billion, a $1.7 billion increase over last year's estimate, according to the National Retail Federation. The average family with children in school will spend $594.24 on back-to-school purchases, compared with $563.49 last year.

Parents will spend $151.61 on electronics, up from $129.24 last year. Most consumers (73 percent) will shop at discount stores. Spending on college goods, however, will drop 7 percent this year to $599.38 per person, with less spent on clothes and dorm furnishings. More students are forgoing dorm life to live at home , with 54.1 percent of college students commuting to campus, up from 49.7 percent last year.