Living Crafts 360° Concept

Living Crafts is now 25 years old. This makes it a founding member of the companies that were committed to spreading the word about natural textiles. The idea of selling clothes made from poison-free, organic cotton and wool is more an issue today than ever before, and the supply of these textiles is expanding. Although natural textiles are a long way from being available countrywide in the specialist wholefood trade, this product range has the potential to become another non-food line that can supplement natural cosmetics. Living Crafts would like to advance the cause of natural textiles in the specialist trade with a well-thought-through concept that offers stores advice and presentation stands together with the corresponding products.
(Picture: Annegret Friedel and Frank Schell are convinced Living Crafts has a very promising future)

Selbitz in Upper Franconia, the little town with flair, as it calls itself, used to play an important role in the textile industry. Yarn finishing, weaving and sewing were all located here. Today there are very few businesses left, but Selbitz has been home to Living Crafts GmbH & Co KG for five years. The building, where about 30 employees work, dates back to the age of textile manufacture, and in the store room you can still see where around 30 sewing machines were plugged in. When the boss of Dennree, Thomas Greim, bought the insolvent natural textiles firm Living Crafts in 2001and transferred it from the Lake Constance region to Franconia, it was first located in Berg/Bad Steben. When the facilities eventually proved to be too small, just at the right time came an offer to take over premises in Selbitz, and they became the company’s head office. The town is about 20 km from the Dennree headquarters in Töpen. (Picture: Living Crafts’ company building in Selbitz with enough room for growth)

When Thomas Greim took over Living Crafts, he saw the potential of the natural textiles theme and of the Living Crafts brand that had been in existence for 15 years. 35,000 of the first Living Craft article, a pair of socks made from organic cotton with the number 236, are still being sold today. The peak season for Living Crafts starts in the autumn. From the beginning of September, hundreds of boxes of products that have been brought to Germany by ship from southern India, are stacked up. In the warehouse the goods are checked, re-packed and sorted in the big commissioning store. October to March is the main season for the company. Up to 2,500 consignments are despatched in this period and considerably reduce the stock of 500,000 items in the store. Two-thirds of sales are generated at this time. (Picture above on right: The finished goods from India are individually checked and packed)

The first years of Living Crafts under the control of Dennree were used to consolidate the product range and to create a new workforce. Alongside its core competencies, hosiery and underwear, the company developed various product categories like functional and sports clothing and seasonal collections which were then tested on the market. Since 2008, Frank Schell has been the managing director and in charge of the company’s fortunes. Schell was born in Bamberg, has a commercial training and has proven knowledge of the textile industry. He is now 39 years old, and for many years he worked in marketing underwear for various companies like Schiesser, Esprit, Puma and Marc O Polo. A bit of homesickness and the challenge of developing a new holistic concept for the Living Crafts brand drew Schell to Selbitz. (Picture: Frank Schell is pleased with the new corporate image and quality packaging)

Schell says of himself: “I’m not an eco-hardliner but I do make sure I live according to ecological principles.” However, he makes no secret of the fact that he is a salesman through and through. This is why the challenge of revamping and marketing the Living Crafts brand was so appealing: “I think natural textiles have very good prospects, there is still scope for creativity and we can really achieve a great deal,” he says. So two years ago, he threw himself into the task. What Frank Schell had to do was give Living Crafts a new face, take design risks and follow a new route in terms of packaging, sales aids and marketing. (Picture: The cardboard packaging goes well with natural textiles)

In the summer of 2010, in time for the 25th anniversary of the Living Crafts brand, Schell and his team presented their new 360¢ª concept. This introduces not just flexible display stands in three sizes (called Basic, Standard and Competence) and the newly designed packaging but also a number of services for the retail trade, such as advice, planning including the work carried out by partners (building work, painting, lighting, etc.) and helping to take care of the stock. “The various sales displays can be easily integrated in existing shelving systems in shops,” says Schell. (Picture: The basic products fit the mobile, space-saving and free-standing display stand)



According to the size of the shop, the Basic, Standard or Competence concept is used and provides from around 1 m² to more than 11 m² of retail space. Schell expects the presentation system and the product range to bring considerable benefits to the trade: “Where natural textiles are concerned, the greatest demand is for underwear, hosiery and basic items of clothing like T-shirts and sweatshirts. We concentrate on them and present our products clearly and in the new, quality packaging.” He is convinced this concept will bring profit through profiling.” (Picture: Frank Schell and Annett Jahn, who transforms the sketches of the designer into patterns for production, inspect this season’s collection)

The display stands have been gradually installed in about 60 Denn’s stores. Moreover, the concept was presented at the Dennree business conference and, with about 40 members of the Dennree association of organic businesses taking part, Schell thinks the Living Crafts range has good potential. In 2011, the concept is also going to be presented to partners abroad. After all, the specialist trade in France, Scandinavia, the Benelux countries, Austria and Switzerland accounts for almost
50 % of Living Crafts’ turnover. Schell would like to boost the company’s business in Britain where, from 2011, an agent will be in charge of achieving this aim. Customer service is located in Selbitz, where it advises, maintains contact with customers and sells products. Printing on the packaging is in three languages. (Picture: This season’s collection for babies and toddlers)

There are several arms to the Living Crafts business: as well as supplying all of Dennree’s own shops (Denn’s Biomarkt stores), it supplies independent retailers and re-sale outlets like online shops and mail-order at home and abroad. In 2008, Living Crafts launched its own online shop and thus started doing business with the end customer for the first time. Since 2009, business customers too can order goods via the online portal. But Frank Schell is striving for the brand to have even wider reach, and he started negotiating with one of the big mail-order companies in Germany. From January 2011, Living Crafts will present itself on the Neckermann brand shop platform. Neckermann, one of the leading mail-order companies in Europe, already makes two-thirds of its turnover from its online business, and by cooperating with Living Crafts it wants to put greater emphasis on the theme of green clothing. By appearing on Neckermann online, several million clicks every month are a very attractive prospect for Living Crafts. (Picture: The online shop can be accessed by end customers and re-sale operators)

Securing supplies of raw materials is often a tricky business for natural textile companies. Although growing organic cotton has been expanded worldwide, demand has risen by leaps and bounds on account of the big chains entering the business. After Living Crafts experienced a very difficult year in 2009 as far as availability was concerned, a sounder basis for sourcing was created. “We want to concentrate on India in the future, both as a supplier of raw materials and as a partner for processing – this means the value-added stays in the country itself,” explains Schell. The raw material and the processing are certified in compliance with the Global Organic Textile Standard (GOTS) and the Naturland standard of the Dutch Control Union. Schell also maintains close contact with the Indian companies, and he recently returned from southern India. (Picture: Textile processing has a centuries-old tradition in India)

The positive development of the market is not a cause only of jubilation. High demand for organic cotton at a time of poor harvests mean it is less readily available, and price rises of up to 80 % have been the consequence. Schell hopes the situation will improve, so that the rising demand for green textiles, will not be slowed down by price increases. In his judgment, big companies and even the discounters entering the market is counterproductive – they have led to a fall in quality and price and often leave consumers with the impression that they can get organic cotton products for the same price as conventional products. Nevertheless Schell is confident: “My view that the natural textile industry offers great opportunities has been confirmed in the last two years, although there is still a great deal to be done.” (Picture: Frank Schell: cold winters are good for sales)

Fortunately, as a subsidiary in the Dennree Group, Living Crafts enjoys a number of advantages that make it more competitive: logistics, accounting, personnel management and IT are all taken care of at Dennree’s headquarters. On the other hand, product development is the job of the people in Selbitz. Together with an outside textile designer, Annett Jahn works out the cutting and the patterns for the production stage. Purchasing, quality assurance and logistics are in the hands of Annegret Friedel. (Picture: With a designer from outside the company, Annett Jahn develops the patters for production in India)