This week, I am thrilled to share an interview with Colleen Pendleton, founder of Mercury Handmade. Colleen is a seasoned expert in the artisan sector, with over 25 years of experience. Colleen is another longtime colleague who is an absolute wealth of information in this field.
Colleen's career began with Aid to Artisans/ Creative Learning, where she worked as the marketing director while also opening a partner company in Honduras. She now works with some of the largest retailers, helping them import and strategically incorporating artisanal production into their product mix. Her expertise lies in working with artisan businesses to improve their strategies by analyzing costing, pricing, and marketing, and helping them identify their market orientation, both locally and internationally.
In today's interview, we explore importing tips, sourcing strategies, do’s and don’ts, lesson learned, market trends, and best sellers.
Could you tell us a bit about your work and background?
I run a consulting company called Mercury Marketing International and specialize in helping clients use artisan resources to produce various product lines – tabletop, textiles, décor, and furniture. I have been doing this for going on 12 years. I moved from Aid to Artisans, where I was marketing director on and off for over 15 years.
What are some top tips you would give to those new to the field?
1. I would first ask for detailed information about the maker that does their production. Ask specifically about whether they do all their own production. If they do outsource, ask what percentage of their work they outsource. Ask questions about their access to raw materials, packaging materials, and obviously clarify whether they have capability to export and if they are currently exporting to the US.
2. I think it is good when establishing a relationship with a maker to describe what your business is and how you are looking to build the relationship. Sometimes we go one way in our communication. We don’t take enough time to say, “Who are you?” because we are asking them to negotiate with us. The best relationships see the equity between the two businesses and opportunities for both to grow.
3. Absolutely ask for their terms and conditions. You want clarity on their policies and if they don’t have any developed you know they are not that experienced.
What are common mistakes that you see potential importers make again and again?
I see many making assumptions that the maker they are working with is export ready. That’s why those initial conversations are important. It seems like many importers when they start – especially if they are very interested in artisan-based goods – are too involved with the idea without identifying the right partners. They may do some research online, but it’s often done too quickly. They aren’t asking the right questions to know what their vendor’s terms and conditions are.
They should do their research for shipping products early on because different countries have different access to various shipping models. There are countries where you can ship via DHL or UPS no problem but there are other countries where that’s not possible.
The best thing to do is to go to the shipper’s office or have a Zoom call with a sales rep at DHL or UPS. They will talk to you about shipping options. UPS I think does workshops in Mexico, for example.
Do you have any tips for finding a good broker?
The best thing is, if you know others importing, ask them. Most function regionally, so it shouldn’t be difficult.
How have you seen the sector shift over the years?
The sustainability requirements are becoming more comprehensive. The demand from mid-size to large retailers for confirmation from the makers is becoming more comprehensive. In the last five years, it’s intensified. Even for smaller importers, it doesn’t hurt to be aware of ESG compliance as they need to be aware of this general compliance too.
Speaking from the position of the larger retailers, they have developed their own ESG protocols and have various documents and utilize third-party groups to do audits and assessments. They can use NEST or KINA as examples. Those audits can be ESG-based as well as production audits. Audits can be remote or on-site and then there is continuous follow-up that can happen as well.
For example, West Elm sends out an annual request for re-documentation for textile materials. They want to know that updated certifications have been supplied every year. The challenge for the maker is the time invested and the potential cost if they must correct something. For example, a client may say, you don’t have a fire extinguisher, and they must buy one. The requirements are increasing, but it’s tricky because these requirements are not targeted to handmade – it's more about the legal liability because it can cause harm to the consumer. This is what is driving sustainable requirements. It’s not because it's handmade. It’s because of the retail focus.
Is this helping artisans? When does it become too much of a burden for the artisan to go through this compliance?
The more astute buyers are going to understand. They recognize there is value and will adjust their expectations and support that maker over time. The more astute buyers will find a way to work with them.
Has there been an increase in drop ship?
It’s increased for major retail clients and has become a big part of the retailer’s business. I think this came out of the pandemic because many retailers were stocking up on home décor inventory because of the high demand. What happened after two years is that when things went back to normal there was a slowdown and the purchase of home décor started to drop, some retailers were left with too much inventory. The process then moved to drop ship and higher demand from there. There has been a focus on just getting rid of stock. This allows buyers to show newness. They don’t have to buy, but with drop ship they can show new items with low risk. I see this as a transitional period for retailers. I do think in 2025-26 there will be more commitment to stock buys. So, the risk moves onto the maker. But this only works for US-based companies with US warehouses.
Would you advise makers to drop ship?
Enter with caution, know your market, and know that there will need to be a production of inventory.
What are the top-selling products that you see continue to sell well?
So now there is a trend on experience and travel. Dining entertainment is an experience so items for the table are in demand. Wall décor is still very strong – because it’s a home décor item that can be turned over. If you want to make a new change, it’s an easy change. For textiles, pillows, and throws it has to be really high-end and designer driven. It’s difficult to compete with India for the mid-price point textiles like what is produced for the Target clientele. In wellness, items for personal use, slippers, and bathrobes sell well. And candles and glassware as it relates to tabletop.
What publications do you enjoy reading?
I like reading Business of Home and DWELL because they are mostly focused on global designers, stories about new materials and architectural trends.
Do you think there’s still room for artisan-made goods to fit into the mainstream?
Yes, I think the capabilities of artisans are still highly valued. And the maker's capabilities combined with a sustainability record (like NEST-certified) help.
What support do you feel the artisan sector needs to strengthen its position?
On the maker side, it's important to continue providing them with information that keeps them competitive. Retailers often use artisans as a production resource, so it's crucial for makers to stay updated on international design trends. This might require investing in design consultancy, especially for training overseas producers who are not large factories.
In terms of export information, artisans need to be constantly updated on the logistical demands that buyers are asking for. This includes new packaging requirements, new labeling, and testing requirements. For new importers, it's essential to do thorough research. They should attend regional shows to gain a broader understanding of the market, not limiting themselves to just handcrafted products. Overall, more research is needed to strengthen the artisan sector's position.
What is a company that you feel is a leader in the field?
West Elm because of the longevity of their handcraft program and their investment in artisan partnerships. Even in their drop ship program, they still try to identify artisan resources that they can develop product with. Since the beginning, they have consistently stuck with it.
For more info: https://mercuryhandmade.com/