Many Christian book and product retailers got into the business because they saw it as an extension of their faith and ministry. Now, however, these same individuals are finding that faith alone is not enough to deliver success as consumers are increasingly turning to secular marketers to purchase religious goods. The result, as a Washington Post report points out, is that many businesses founded on faith are going out of business or being gobbled up in a wave of consolidation hitting the Christian products industry.
According to CBA (formerly the Christian Book Association), sales of Christian products grew from $4.3 billion in 2004 to $4.63 billion last year. Christian retailers accounted for 52 percent of the total with general market retailers (mass merchants, clubs and big box bookstores) capturing 33 percent and the balance being split between direct-to-consumer, church and non-profit ministry channels. While Christian retailers grew sales 2.4 percent over the two-year period, it is clear that other secular channels are grabbing share at a much faster rate.
Bill Anderson, president of CBA, said any who are tempted to write-off retailers associated with his group are making a mistake.
"This channel sells more Christian products than all the other channels combined. Christian retail's unparalleled assortment means increased choice for the customer and greater exposure for the supplier," he said. "Suppliers understand that Christian retailers are joined with them in their mission, and are committed at a heart level. For us, 'Christian' is not a category; it's a storewide commitment."
CBA members, according to the association's website, are focusing efforts on increasing sales to the channel's core consumers as a means to grow business and hold off the secular competition.
The association's "More from the Core" program has placed emphasis on turning browsers into buyers in Christian stores. "Conversion rate is a measure of our ability to serve our customers and, in the process, grow our business," said Mr. Anderson.
Other elements of the "More from the Core" program focus on improving vendor relations, inventory management and associate training/customer service.
In an indication that secular retailers are serious about the religious market, Wal-Mart announced that next month it would begin selling faith-based toys from One2believe in 425 stores across the country.
Melissa O'Brien, a spokesperson for Wal-Mart, told USA Today, "We're seeing interest from parents in faith-enriching toys."
Discussion Questions: How are secular companies affecting Christian product sales? Do consumers care whether they buy from a Christian retailer or one that sells Christian goods? What does this mean for retailers that use a Christian identity to market to consumers?