CHRISTMAS CRAFTERS: TRADERS ENJOY FESTIVE PROFITS ALL YEAR ROUND
- 40 per cent of businesses producing Christmas crafts are selling their goods all year round
- Festive factor - Christmas craft businesses sell an average of £92,000 of additional stock in November and December alone
- Pop-up Christmas: Despite opportunities to earn money all year, one in five (18 per cent) craft businesses selling goods at Christmas markets only trade during the festive season
- 124,000 more sole traders are active between October and December than the average for the whole year
New research1 from small business insurer, Direct Line for Business, reveals 40 per cent of businesses surveyed who produce Christmas crafts are selling these goods all year round rather than limiting festive sales to the few months prior to December.
November and December still remain the most profitable months for Christmas crafters, with businesses making an average of 39 per cent more during this time, equating to an estimated £92,000 worth of additional stock over these two months.
While some companies are proving there is a demand for festive cheer all year, pop up businesses are extremely popular at Christmas. The research reveals almost one in five (18 per cent) businesses selling goods at Christmas markets only open for the festive season. This is supported by analysis2 by Direct Line for Business into the number of self-employed workers in the months leading up to Christmas. There were up to 124,000 more sole traders active between October and December last year than the average for the whole year, representing an increase of 2.7 per cent.
More than a quarter (26 per cent) of companies we spoke to believe it is imperative for craft businesses to make changes to the stock they sell over the festive season to drive additional sales.
Nick Breton, Head of Direct Line for Business, said: “It’s interesting to see how festive trading has evolved. Previously, businesses tailored their stock to reflect the holiday season they are targeting, but now we’ve seen an appetite among consumers for Christmas products all year round. There’s definitely been a shift in the way consumers shop as many take advantage of seasonal fairs and pop ups to buy their Christmas shopping earlier and under one roof.
“People selling products at Christmas markets and fairs may not realise they are effectively running a small business and should check they are adequately covered with the right business insurance to in case anything should go wrong.”
Festive businesses are extremely effective at stock management. Following the Christmas rush, just 13 per cent of stock is left unsold while more than a third of companies claim to have no stock left when festive trading ends.
Notes to Editors
1 Research conducted by Citigate Dewe Rogerson amongst a representative sample of traders at The Spirit of Christmas Fair at London Olympia, 30th October – 5th November 2016.
2 Analysis of the Office for National Statistics’ Labour Force Survey data covering full-time, part-time and temporary workers (not seasonally adjusted), published 16 November 2016. - https://www.ons.gov.uk/releases/uklabourmarketstatisticsnov2016
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Direct Line for Business
Tel: 01372 839 452
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Direct Line for Business
Launched in 2007 Direct Line for Business provides a range of insurance products for the small business sector direct by phone or on-line.
Direct Line for Business insurance policies are underwritten by U K Insurance Limited, Registered office: The Wharf, Neville Street, Leeds LS1 4AZ. Registered in England and Wales No 1179980. U K Insurance Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
Direct Line for Business and U K Insurance Limited are both part of Direct Line Insurance Group plc.
Customers can find out more about Direct Line for Business products or get a quote by calling 0345 301 4827 or visiting www.directlineforbusiness.co.uk