Innovation Description
Form
Entry
Award submission deadline is May 20, 2013. Submit this form as part of the online entry at
http://hartbusinessresearch.com/tnna-business-innovation-awards-2013/ .
Award Categories
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Yarn retailers (knitting, crocheting, spinning, weaving, etc.)
Yarn wholesalers and affiliates
Needlework retailers (needlepoint, counted thread, embroidery, etc.)
Needlework wholesalers and affiliates
Who May Enter
Any current member of TNNA may apply. Businesses may submit multiple applications as long
as each application is for a different business innovation. Businesses may only enter for their
own innovations. Businesses must have made their innovation public after June 15, 2012
and before June 25, 2013.
Judges and Award Criteria
Six judges will evaluate the 2013 applications: the president of Hart Business Research, four
members of the TNNA board of directors, and a past winner of the TNNA TEN Award. The
decisions of the judges are final. The judges will use four main award criteria for 2013:
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Innovativeness of business initiative
Measurable or forecast impact of the initiative on the applicant’s business
Usefulness of application as a case study for others
Innovation’s fit with market trends, such as those described in The State of Specialty
NeedleArts 2010,demographic data, or your own research
TNNA Business Innovation Awards 2013: Innovation Description Form
p. 1
Section 1: Overview
Contact information for person completing this form
Name: Joe Raetzer
E-mail: [email protected]
Phone: (845) 208-8452
Name of business: KnitCrate LLC
Name of business innovation: Subscription box service for fiber artists around the world –
curated knitting and crochet surprise packages delivered to your doorstep!
(Think of something descriptive and memorable!)
When released or implemented (months and year): November 2012
Team responsible for business innovation (list names of staff, business partners, consultants, etc.,
if not confidential): Joe Raetzer and Andrea Raetzer
TNNA Business Innovation Awards 2013: Innovation Description Form
p. 2
Section 2: Innovation Description
Please use this page and additional pages (if needed) to describe the details of your business
innovation. Include who, what, where, when, why. Include text, JPG photos, and links to Web
pages, Facebook pages, videos, etc. We may use them in the awards presentation if you win!
The important thing is to create a case study that anyone can understand and learn from.
Maximum size of this Word document is 4 mb.
KnitCrate launched in November 2012 to bring fiber artists around the world the first full-service
subscription box service dedicated to them. We have strived to bring them fun and innovative
offerings with top-notch service. In short, our subscribers sign up for a Monthly, Bi-Monthly or
Gift Subscription to receive a curated KnitCrate that is for knitting (options are baby, sock,
beginner, intermediate/advanced, and indie) or crocheting (options are beginner and
intermediate/advanced); we deliver in the US and internationally. Here is a link to our YouTube
video that we put together after we shipped our first KnitCrates: http://youtu.be/WZYv3TAzzwo.
Each curated KnitCrate contains the following items:
1. A premium yarn by a different company each month (past packages have featured
yarns from Three Irish Girls, Be Sweet, Dyeabolical Yarns, Koigu, Morehouse Farm,
Peace Fleece, Artesano, Cephalopod, and Kangaroo Dyer to name a few).
2. A pattern for a surprise project suitable for the subscriber’s subscription type - we
sometimes include two patterns so subscribers can choose their project.
3. Enough yarn to complete the pattern at least once (sometimes twice in different
beautiful colorways).
4. A sweet or soothing extra to enjoy (past packages have included herbal teas/coffees,
handmade candies and organic beauty products)
5. A fun extra to love (past packages have included tote bags, handmade stitch markers and
a hand crocheted tape measure)
You can see our past packages here: http://www.knitcrate.com/collections/past-packages.
Subscriber’s benefits include the following:

promo code for 20% off all yarns in our online store and either our KnitCrate BAGGU
Duck Bag or KnitCrate Heavy Cotton Canvas Boat Tote
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access to our KAL/CAL Giveaways: we run these quarterly
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auto-enrollment in our KnitCrate Referral Program: refer two friends who subscribe and
get a free KnitCrate
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auto-enrollment in our KnitCrate Loyalty Rewards Program: choice of KnitCrate
exclusive item as a gift after receiving 6 consecutive KnitCrates
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ability to Add-On a Sock Package, Crochet Package, KnitCrate Minis (our mini skein
offering with a different premium hand dyed yarn each month) or a needle set (this
TNNA Business Innovation Awards 2013: Innovation Description Form
p. 3
allows “rental” of needle sets with ability to keep the needle set after set period of
months)
We have received wonderful feedback and reviews. Here are a few examples:
1. Vogue Knitting May 2013 Newsletter description of KnitCrate (this was not a paid ad
and it was drafted solely by Vogue Knitting’s editors): “Exclusive offer for our
newsletter subscribers: If you’re a fan of subscriptions services like Glossybox or
Wine of the Month and always wished there were an equally glamorous knitting
subscription, then KnitCrate is for you. KnitCrate expands on the Yarn of the Month
concept by providing a multitude of options—choose from Sock, Baby, Beginner,
Intermediate/Advanced, or Indie, depending on your knitting preference. Each kit
includes a pattern and enough premium yarn to complete that pattern, plus great extras
like hand creams, chocolates and notions. If 12 Crates a year sounds overwhelming,
bimonthly subscriptions are also available. Get $10 off your first month when you use the
code VKMAY2013”
2. Wired.com’s Geek Mom released a review of our service in February 2013 – you can see
it here http://www.wired.com/geekmom/2013/02/knitcrate-review/. We loved the
statement "KnitCrate will appeal to knitters at all levels who enjoy the element of
surprise" - we couldn't agree more!
3. MySubscriptionAddiction.com reviewed our February Beginner KnitCrate – we LOVE
the verdict!! “If you love knitting, I highly recommend KnitCrate! I was very
impressed with the quality of materials, the bonus items, and the pattern design –
A+ in my book!”. You can see the review here
http://www.mysubscriptionaddiction.com/2013/03/knit-crate-review-coupon-codemonthly-craft-subscription-boxes.html.
4. The Times Union Fiber Arts blog reviewed our March 2013 Indie KnitCrate and gave us
a wonderful review! We loved the comment that “A lot of thought has gone into
KnitCrate, from the shiny red mailer and eco-friendly tissue wrap, to the carefully
curated yarn and other items that are sent out each month. . . . What I especially
like is that Andrea and Joe are exploring smaller yarn companies and independent
dyers, so that their subscribers will be exposed to yarns they may not have known
of.” The review is available here http://blog.timesunion.com/fiberarts/reviewknitcrate/14289/
5. Unpack the Box posted their review of our May 2013 Crochet KnitCrate - we loved that
they said "This was really a pleasing box. Everything was adorable, had value, and
use. If only every subscription service was like this." Here is the link:
http://unpackthebox.blogspot.com/2013/05/review-of-crochet-crate-by-knitcrate.html
6. RamblingsofaSuburbanMom.com also reviewed KnitCrate here
http://www.ramblingsofasuburbanmom.com/2013/02/january-knitcrate-indie-packagereview/ and here http://www.ramblingsofasuburbanmom.com/2013/02/february-knitcrate-review/
TNNA Business Innovation Awards 2013: Innovation Description Form
p. 4
7. Some of our subscriber testimonials can be found here
http://www.knitcrate.com/pages/testimonials
Our vendors have also been very supportive. For example:
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Be Sweet yarns posted to its Facebook followers that “KnitCrate is the coolest new
concept to hit the yarn market!”.
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Three Irish Girls posted to its Facebook followers “Have you heard about KnitCrate
yet? It looks so fun! I want a box for me!”.
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Fairfield World (maker of Poly-Fil) posted “We're so excited that KnitCrate's May kit has
arrived in the office. It was so beautifully wrapped it felt like a present. It includes
everything you need to get started knitting a Beekeeper's Quilt (little knitted puffs all
attached together). There is an array of beautiful yarns, wooden DPNs and a mini bag of
Poly-Fil fiberfill. There are also some fun extras like gourmet tea and a clever handcrocheted tape measure. While the kit is sold out, you have a chance to win one. Be sure
to check it out.”
We have a large growing social network following. For example, on April 26th we hit 1,874
Facebook followers, a 375% increase from our February 26th milestone of 500 Facebook
followers (http://www.facebook.com/KnitCrate). Our following has continued to grow – here is
a screenshot of our Facebook page as of May 13, 2013 showing that as of that date we had 2,149
followers:
TNNA Business Innovation Awards 2013: Innovation Description Form
p. 5
Section 3: Impact of Innovation on Business
Please use this page and additional pages (if needed) to describe the predicted or measurable
outcome of the business innovation. Give specifics about impact on sales, number of customers,
better business terms with partners, business profitability or viability, business valuation,
customer ratings, or other quantitative or qualitative measures. Use text, photos, graphics,
graphs, tables, etc.
If precise numbers are confidential, describe impact in terms of overall business significance,
such as “Created sales growth in an otherwise down year”, “Added enough value to business that
it helped us get a loan”, etc.
Our innovative approach to yarn, pattern and notion distribution by adopting a full service
subscription box model has resulted in an amazing rate of growth. For example, between
January 2013 and May 2013 we shipped several thousand packages. It has also lead to a high
customer satisfaction rate resulting in a very low attrition rate. For example, more than 90% of
the fiber artists that subscribed in November 2012 are still with us. Absent our innovativeness
we would not be able to attract and keep such a large audience in such a short period of time.
And we continue to grow…here is a picture of one of the batches of KnitCrates that we
processed for shipment in May 2013:
TNNA Business Innovation Awards 2013: Innovation Description Form
p. 6
April 2013 was our third consecutive month of double digit growth for shipped KnitCrates. As
of May 13, 2013 our subscribers had already paid for enough KnitCrates to make June 2013 our
fourth consecutive month of double digit growth for shipped KnitCrates (even if we did not
receive a single additional order after May 13th)! We also had triple digit growth of new
subscriptions in BOTH April and May 2013. Our monthly subscription cancellations continue to
be in the single digits – the majority of subscription changes are to move from a Bi-Monthly to a
Monthly KnitCrate.
Demand for our KnitCrates is strong. For example, our April past packages sold out in a record
24 hours! We always offer any extra KnitCrates as "past packages" while supplies last for $10
above the applicable subscription rate here. . . it was heartwarming to see the strong interest in
the KnitCrates we curated for April. Also, most new subscribers that joined during the first week
of May opted to make a “catch up” payment to receive the May Knitcrate so we were unable to
have May past packages available for sale. . . in short we SOLD OUT before we could even
think of offering them for sale! This was a first for us.
TNNA Business Innovation Awards 2013: Innovation Description Form
p. 7
Section 4: Fit With Market Trends
Please use this page to list trends and market data supporting your prediction that this innovation
will be successful. For example you could note findings described in The State of Specialty
NeedleArts 2010, demographic data, your own research data from your own customers, overall
retail trends, or demographic trends.
As the knitting and crochet markets continue to grow the market trend has been, and is projected
to continue to be, one that realizes higher sales volume through online ventures. While LYS are
the cornerstone of the industry, the changing dynamics in taste and widespread adoption of
online shopping by young and old alike ensures that internet based yarn shops such as KnitCrate
will thrive. Furthermore, as the industry expands to attract new fiber artists there is a need for
such artists to be able to regularly discover established and new yarn companies, pattern
designers and notion makers. We satisfy all of these parameters. In short, we think that
KnitCrate is well positioned to not only fit with existing market trends, but it’s also well suited to
evolve with them as they change.
Below are findings made in The State of Specialty NeedleArts 2010 report with the reason that
we satisfy or are otherwise well positioned to satisfy such findings:
The State of Specialty NeedleArts 2010
Finding
KnitCrate satisfies/will satisfy due to
“About 2/3 of projects made using materials
purchased the same year”. (p. 4; p. 46)
We send our subscribers new projects on a
monthly or bi-monthly basis depending on
subscription delivery schedule chosen.
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“Needlearts store Web sites gained
market share: Web sites had...an
increase of... needleartist market share
from 2004 to 2009. Brick-and-mortar
needlearts shops experienced the
reverse.” (p. 4)
“The percentage of needleartists who
used the Internet for learning,
inspiration, purchases, and
communication increased significantly
from 2007 to 2010…” (p. 56)
Our service is only available online at
http://www.KnitCrate.com and we do not have
a physical store
“The percentage of younger knitters
(those in their 20s and 30s) increased
from 13% to 29% in the past five
years”. (p. 4)
77% of our audience falls in the younger
knitter category (below 55 years old). For
example, our Facebook followers are broken
into the following age groups:
TNNA Business Innovation Awards 2013: Innovation Description Form
p. 8
-
“The percentage of younger knitters
(those in their 20s and 30s) increased
by 16% in the past five years. The
percentage that was in their 50s or older
decreased by 18%.” (p. 62)
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18-24 y.o: 4.1%
25-34 y.o.: 23.9%
35-44 y.o.: 26.7%
45-54 y.o.: 22%
55-64 y.o.: 15.8%
65+ y.o: 4.5%
“Web sites and blogs were the most popular
sources of new product information.” (p. 5; p.
50-51)
Our service is only available online at
http://www.KnitCrate.com and we have a blog
with an active following (here is our blog link
http://www.knitcrate.com/blogs/knitting-newsbuzzworthy-and-interesting)
“All storefronts lost knitter market share 2004–
2009…Independent needlearts shops had 58%
of the needlearts knitter market in 2004. That
decreased 11 percentage points to 47% in
2009. Craft and hobby chain stores and mass
merchandisers lost 7% market share in that
same period, from 18% in 2004 to 11% in
2009. The retail outlets that gained
needlearts market share were needlearts
store Web sites (15% market share gain)…”
(p. 23)
We have an online store at
http://www.KnitCrate.com through which we
sell yarn, kits, needles, notions and other
accessories related to knitting and crochet.
“Knitters and cross-stitchers spent significantly
more time doing needlearts in 2009 versus
2004. [Table showing knitters completed 14
projects in 2004, but completed 24 in 2009.]”
(p. 29-30)
KnitCrate can satisfy this increased need to
complete projects through our subscription box
service and kits.
“Knitters still sticking to their knitting; some
taking on crochet: In 2010 knitters continued to
grow their knitting habit, with the same
percentage as in 2007 reporting they started or
increased knitting. One-third started or
increased their interest in crochet.” (p. 36)
We offer both knitting and crochet through our
subscription box service and online store.
Also, our KnitCrate knitting subscription box
subscribers can “add-on” a crochet package at
a reduced rate, which encourages them to try
crochet.
“Needleartists want to do a wide range of
projects.” (p. 45)
We provide our subscribers with a different
project in each KnitCrate. We strive to create
variety in our projects so our subscribers are
not doing the same types of projects all the
time.
“50% or more of knitters and crocheters
wished for fresh and new patterns, yarn, and
Many of our packages offer newly released
patterns, new colorways (often exclusive to
TNNA Business Innovation Awards 2013: Innovation Description Form
p. 9
tools/hardware/notions.” (p. 47)
KnitCrate), and expose our subscribers to
tools/notions they may be unaware of.
TNNA Business Innovation Awards 2013: Innovation Description Form
p. 10
How to Submit This Application
Please save this document using a name that includes your business name and a brief version of
the innovation name. Submit this document as part of completing the application form – Go to
http://hartbusinessresearch.com/tnna-business-innovation-awards-2013/ . Applications will only
be accepted through this form. If you have any difficulties please contact India Wood,
[email protected] , 303 449-5972. We’ll help you get the application in. Full
details of the awards are at http://www.tnna.org/?page=BizInnovationAward .
Winners will be announced at the TNNA Columbus show, June 22, 2013. Be there!
Contact Information
India Hart Wood, Hart Business Research, 303 449-5972
Jane Miller, TNNA, 740-452-4541 ext. 3202
TNNA Business Innovation Awards 2013: Innovation Description Form
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