In November 2023, Michaels officially launched their MakerPlace marketplace. I found this to be an intriguing development in our industry. In order to have a healthy industry ecosystem there must be competition. I’ve been talking to many different marketplaces to understand their strategies in the market. The more I investigate and learn, the more I am understanding how these strategies and approaches are different. The lifecycle stage each marketplace is at also varies. Therefore expectations should be different depending upon which marketplace you are evaluating. I’ve been sharing information on the approaches each of these marketplaces is using. This information can help you consider what makes sense for your business. For this article, I’m exploring more about Michaels MakerPlace, and specifically how they are bringing aspects of this new marketplace into their retail footprint.
Attending an in store event
Last month I attended a Michael’s MakerPlace event in Woodbury, MN. This was an opportunity to see it through the eyes of a customer. I also wanted to talk with a maker on the MakerPlace platform. In the summer magazine, I also shared more information about the MakerPlace Retail rollout, so make sure to read that article as well. MakerPlace events are held once per month. An artisan from the platform sells in store for several hours.
I wasn’t sure what to expect attending the event. I was pleasantly surprised when I walked into the store. The Maker table was right near at the entrance. She was the beneficiary of whatever level of customer traffic was coming into the store. There was also a large MakerPlace sign and information available there.
Talking with a Maker
I had the opportunity to talk with Alicia from Rosie Bella. She makes one of a kind cosmetic and toiletry bags. Her business is relatively new, launching within the last year. I asked her why it made sense to choose MakerPlace for her business, and she shared “I’m new to this business. I know MakerPlace is also new, but I felt comfortable because it is backed by the Michaels brand. I also like that it is still small, because I am easier to find!
The MakerPlace process for the in person events was also pretty easy. Michaels reached out to me to ask if I would be interested. I submitted pictures of what I would want to display. It was a pretty easy process. They emailed me that I had been chosen along with details for the event. There was a $10 fee to make sure I didn’t no show on the event. This felt reasonable.
I’ve been pleasantly surprised by how many customers coming through the door have at least known about MakerPlace. It has been more than I thought it would be.”
Extending the brand
Whenever a company decides to launch a platform extension like this, there is risk. This is very different than building a brand new marketplace. While a new marketplace can move fast and break things an existing company cannot do this. Having worked in large corporations, I know it is a slower, careful considered process. Things will still break and it won’t all work perfectly right away. There are longer lead-times and carefully planned roadmaps and processes. It is a slow and steady process.
There is also risk that it will confuse existing customers. Launching a marketplace is playing the long business game. Marketplaces take considerable investment to get up and running. They also require finding both buyers and sellers. Talk to anyone that runs a marketplace, and you will quickly learn it is a very different set of challenges. It’s what makes this move into building MakerPlace so intriguing. Michaels has an advantage. They already have an existing customer base that they can market to as they grow MakerPlace. Marketing to an existing customer base is substantially more cost effective. Building a customer base with external advertising is expensive. But marketing to existing customers has to be done carefully.
Speaking of Integrations
I was curious to learn how MakerPlace is being integrated into the existing marketing for Michaels. I’ve noticed that MakerPlace advertising is included on the main Michaels webpage. As I walked around the store, I also saw signage advertising MakerPlace. This was independent of the event that day.
With the addition of the new platform, there are also practical challenges of integrating all the technology. I also asked how that balance is being managed by Michaels. My source shared “Though Michaels and MakerPlace by Michaels are two distinct brands, we are aiming to create a seamless shopping experience for our customer. We have a unified cart experience that is connected to your Michaels account, with both experiences on the same platform.
This means that if you’re shopping on Michaels first and have Michaels products in your cart, you will still see those in your cart after adding MakerPlace items as well. At checkout, you’ll have one single checkout experience that clearly identifies where your purchases are coming from (ex: “Sold by Michaels” vs. “Sold by Amber on MakerPlace”).
We distinguish between the two platforms through unique branding and a differentiated UI.”
I asked Michaels to share more of the marketing plans for the MakerPlace events. I was also curious what they are hearing so far from their customer base about the events. My source at Michaels shared:
“In addition to in-store signage, we also promote the event to Michaels and MakerPlace customers via marketing emails and SMS.
Our Michaels customer is already inclined to appreciate the artistry of handmade goods, with many of them being makers themselves. So far the response from sellers and customers alike has been overwhelmingly positive!”
Where do we go from here?
The event has been slowly and steadily scaling up this year, and has grown to include over 100 Makers at retail locations. So what should you expect from these events? My source shared “We are currently planning for these events to be monthly, and have dates scheduled through the end of the year.” It seems slow and steady growth will continue to be the race Michaels is running.
Want to see the Pop-Up Locations, schedule, and get more information?
