Why Catalogs are Smaller this Holiday Season
While retailers hope to go big this holiday season, customers may notice that the printed gift guides arriving in their mailboxes are smaller. Many of the millions of catalogs getting sent to U.S. homes were indeed scaled down to save on postage and paper, resulting in pint-sized editions. Lands’ End, Duluth Trading Company, and Hammacher Schlemmer are among gift purveyors using smaller editions. Some retailers are saving even more money with postcards.
The Evolution of Catalogs
Catalogs have undergone a steady recalibration over the years in response to technological changes and consumer behavior. The thick, heavy Sears and J.C. Penney catalogs that brought store displays to American living rooms slimmed down and gave way to targeted mailings once websites could do the same thing. Recent postal rate increases accelerated the latest shift to compact formats.
The Rise and Fall of Catalogs
The number of catalogs mailed each year dropped about 40% between 2006 to 2018, when an estimated 11.5 billion were mailed to homes, according to the trade group formerly known as the American Catalog Mailers Association. In a sign of the times, the group based in Washington rebranded itself in May as the American Commerce Marketing Association, reflecting a broadened focus.
Defying Predictions
But don’t expect catalogs to go the way of dinosaurs yet. Defying predictions of doom, they have managed to remain relevant in the e-commerce era. Retail companies found that could treat catalogs with fewer pages as a marketing tool and include QR and promo codes to entice customers to browse online and complete a purchase.
The Value of Catalogs
Despite no longer carrying an extended inventory of goods, catalogs are costly to produce and ship. But they hold their own in value because of growing digital advertising costs, helping retailers cut through the noise for consumers barraged by multi-format advertisements, industry officials say.
The Revival of Printed Materials
Research shows that the hands-on experience of thumbing through a catalog leaves a greater impression on consumers, said Jonathan Zhang, a professor of marketing at Colorado State University. "The reason why these paper formats are so effective is that our human brains haven’t evolved as fast as technology and computers over the past 10 to 20 years. We retain more information when we read something on paper. That’s why paper books remain relevant," Zhang said. "The psychology shows that three-dimensional, tactile experiences are more memorable."
Postal Rate Increases
Postal increases are hastening changes. The latest round of postage hikes in July included the category with the 8.5-by-11-inch size that used to be ubiquitous for the catalog industry. Many retailers responded by reducing the size of catalogs, putting them in a lower-cost letter category, said Paul Miller, executive vice president and managing director of the American Commerce Marketing Association. One size, called a “slim jim,” measures 10.5 by 5.5 inches. But there are other sizes. Some retailers have further reduced costs by mailing large postcards to consumers.
The Future of Catalogs
Lands’ End, for one, is testing new compact formats to supplement its traditional catalogs. This year, that included folded glossy brochures and postcards, along with other formats, Chief Transformation Officer Angie Rieger said. Maine resident Lisa Ayoob said she understands why retailers still use catalogs even though she no longer is a fan of the format. These days, she prefers to browse for products on the internet, not by flipping through paper pages. "Everybody wants eyeballs. There’s so much out there — so many websites, so many brands," said Ayoob, who spent 35 years working in department stores and in the wholesale industry.
Conclusion
Despite the challenges, catalogs have managed to remain relevant in the e-commerce era. As consumers continue to demand a hands-on experience with products, retailers will continue to adapt and innovate. With postal rate increases, compact formats are becoming more cost-effective, and we can expect to see more retailers experimenting with new ways to connect with customers through print.
FAQs
Q: Why are catalogs getting smaller?
A: Many retailers are scaling down their catalogs to save on postage and paper.
Q: Why are some retailers still using catalogs?
A: Catalogs are costly to produce and ship, but they hold their own in value because of growing digital advertising costs.
Q: What is the purpose of catalogs these days?
A: The purpose of catalogs is simply to get customers’ attention and encourage them to browse online or complete a purchase.
Q: Are catalogs going to become extinct?
A: Despite predictions of doom, catalogs have managed to remain relevant in the e-commerce era, and it’s unlikely that they will become extinct anytime soon.
