The UK Crafting Industry - Is there room for the independents?

As you will see from my profile my wife & I run a moderately successful (we're still trading!) independent craft retail business in East Lancashire. We have been going for over three years now. It all started when we received a handmade Christmas card from a work colleague. Lorna, as she has always been the 'arty farty' type was curious about how the card had been constructed. "I could do that!" she exclaimed somewhat surprised that making greetings cards had never occurred to her before.
So in the fine tradition of 'cottage industries' up and down the land we developed 'Handy Crafts' and Lorna set about making cards & teddy bears. As this was four or five years ago the UK crafting industry was in it's infancy, certainly when compared with today, though QVC was gaining momentum with it's famous (infamous?) blonde crafting presenter convincing all and sundry that card making was the future - a bit like garlic bread, eh, eh!
People that received handmade cards from friends & family still had the attitude of, "Huh, look at that, she couldn't even afford to get me a proper card!"
Lorna was doing well with lots of commissioned orders for her wares. She often likes to reminisce about a training day for retailers that she attended at the time, where she was told in no uncertain terms by the facilitator that she would never make a business out of her hobby!
One of Lorna's friends was closing a small beauticians boutique in Bacup and asked Lorna if she would like to take it over. For us this was a big step and a sizeable investment. We had an initial idea of running a small gift shop that would sell Lorna's handmade products. But we soon migrated our thinking to craft supplies mainly because of the shortage of available outlets.
The rest as they (whoever 'they' are) say is history and despite a large, local fabric company's (run by a balding egomaniac who thinks he is a Romany!) best attempts to wreck it, our business is going from strength to strength.

But for how long?
As the UK crafting industry has moved into overdrive many small independents, the very businesses that have created the surge in crafting interest and have enabled the suppliers to grow in the UK market, have found themselves in competition with largescale retailers that have leapt onto an increasingly speeding bandwagon, those who normally would be more concerned with selling you your daily bread and milk, or discount books, or household appliances, or catalogue goods, or - well you get the picture.
As retailers we can see pros and cons for such expansion into the mainstream.
The advocates of such commercialisation, which includes some suppliers and distributors would have us all believe that it enables new customers to have wider access to crafting products, it lowers prices and raises the profile of crafting generally, all of which may or may not be true. One thing that has happened is that it actually has enabled the 'big boys' access to the perceived 'gravy train' and short term profits which has done the participating suppliers no harm at all - or so they would prefer to believe.
Now everyone likes a bargain and it would be self destructive for small craft businesses to pretend that craft retail is anything more than simply a money making enterprise and a way of making a living. Crafting however means far more than that to our customers. To them it is a hobby that allows participants to socialise, to seek out ideas, to share knowledge, to give beautiful hand made creations to others and to be excited about innovative products, all of which encourage and enable that one thing that many of us believe is the privilege of others more gifted - CREATIVITY!
Retail competition can be a positive thing. It provides customers with choice, maintains sensible prices, prevents retailer complacency and strengthens the profile of the industry as a whole. However it is when competition leads to a glut in the market of cheaper, poor quality products masquerading as the latest thing, as is inevitable when everyone is trying to 'out do' everyone else and capture a finite customer base. This is when competition become damaging to the retail industry. How many of us who likes the aforementioned 'bargain' are actually willing to accept poor quality or customer service.
For the small independent business competition often means having a different product range, something that is a bit unusual in order to whet the creative appetite of the crafter (customer). That is the ultimate challenge to the manufacturers and distributors and in fact is the prime factor that is likely to maintain the upsurge in crafting generally. The type of competition that the larger retail companies are interested in is finding cheaper (to maximise profit), though similar to mainstream product lines that they can shave a little off the market influenced RRP, thus making the customer believe that they have bought the same product from the superstore for a lower price than the local craft shop - often they have not!
How many crafters would like to see their favourite pastime swallowed up by, and exclusively available at the superstores?
Many small independents have gone out of business over the past 12 months and many more may unfortunately follow suit. Whilst I am not blaming the over-commercialisation of crafting for their demise I would point out that the market place can only cater for so many business's supplying so many customers.
It will be a crying shame bordering on a travesty if the only victims of the current abundance of outlets were the smaller shops.
As always it is likely to be up to the customer, the nations crafting community to decide the future of the UK crafting scene. Do they simply want cheap imitations and bargains or are they prepared to pay the market price for a product that comes along with much added value such as the specialist advice, the demonstrations, the workshops and the personal attention that will only be available at those remaining small independent craft retailers that essentially are run for crafters by crafters!