Brief Summary of Minutes of Annual Meeting

Changes in the U.S. retailing environment have created economic and competitive challenges for smaller manufacturers and retailers. These changes have impacted consumer choices and thus added to difficulties for small rural businesses to generate profits. It was anticipated that innovative products and business strategies could increase profits. The purpose of this study was to evaluate the use of innovative products and strategies by rural manufacturers and retailers. The three technologies most frequently used by rural manufacturers were accounting (63%), computer aided illustration (50%), and B2B (50%). Manufacturers reported the use of organic cotton, hemp, soy, and tencel as innovative textiles. Manufacturers perceived country of origin of materials (e.g., Icelandic wool) as being the innovative characteristic. Product attributes that were perceived as innovative were: including customers as part of the design process and meeting customers specific needs. Brochures, catalogs, sales representatives, websites, and trade shows were used to inform customers of the benefits of these products. Innovative production strategies included custom manufacturing and overseeing every detail personally. Forty-four percent of manufacturers reported that 50% to 100% of their customers purchased products considered to be innovative. Respondents (25%) reported some portion of product manufacturing in a foreign country, and 63% sourced at least a portion of materials internationally. Half of respondents were able to purchase technologies to retain their competitive edge. Retailers reported the use of these innovative textiles: organic cotton, hemp, naturally colored cotton, and tencel. In addition, retailers also reported the use of laminates, silk, wool, and linen as innovative materials. Retailers perceived innovative product attributes as eco-friendly, culturally/ethnically inspired, and possessing handmade qualities. Many retailers listed traditional promotional activities and conversing with customers as the way they inform customers of benefits of buying innovative textile products. Nearly one third of retailers did not know where their innovative products were produced. Approximately 10% of retailers participated in cooperative buying consortiums. Only six percent of retailers sold products through catalogs; 23% sold products online. Many of the specific marketing techniques listed by retailers as innovative may be considered to be traditional in nature. However, retailers may have listed techniques not previously used and therefore considered them as innovative. The data indicated that neither small rural manufacturers nor retailers surveyed were aware of the breadth of innovative products, production methods or strategies available to increase their competitive edge. The researchers question why these manufacturers and retailers are not using innovative products and strategies available to them. This indicates that further research is warranted to compare results with businesses in other parts of the U.S.