Greeting Cards
Executive Summary
Retail sales of greetings cards increased by 5% between 1999 and 2000. Christmas/New Year cards account for the largest volume share of the market but not value, which is attributed to the birthday card sector.
The greetings cards market is a mature one and is virtually at saturation point. Two US companies and their subsidiaries dominate. Only a handful of British publishers, however, has a market share of any significance, and a plethora of small operations compete for the remainder of the market.
Sectors of the greetings cards market include birthday cards, Christmas/New Year cards, everyday cards and spring season cards. For further clarification, the everyday cards market encompasses cards for congratulations, weddings and engagements, christenings, sympathy, get well, bon voyage, good luck, etc. The spring season sector covers Mother's Day, Father's Day, Valentine's Day and Easter.
According to a BMRB Access survey, a mere 1% of respondents does not ever buy greetings cards. However, alternative means of communication pose an increasing threat, with text messaging seeming more of a problem than `e-greetings'.
It is to be hoped that text messages and electronic greetings (`e-greetings') are used in addition to, rather than as replacements of, traditional cards. In fact, there are some in the industry who feel that cards might actually become more popular as people tire of a constant need to embrace technology in so many aspects of their lives. Certainly, cards convey a feeling of consideration and thoughtfulness in a way that `e-greetings' and text messages simply do not.
The UK greetings cards industry apparently thrives on competition. It is constantly introducing new products to the market. Print runs are smaller, and techniques more advanced, so that new ranges quickly reach the market. Publishers and retailers persevere in their attempts to introduce new occasions and sentiments, including the completely nonsensical, in an industry that has never been more fashion-led.
Persuading consumers to trade up to better quality cards, often with add-on features, and to send more cards, are the only ways to increase the value of the market. The industry is therefore understandably unhappy that Consignia PLC is intending to put up the price of postage in the run-up to Christmas 2001, and has re-iterated an intention to introduce a format-based pricing system that will penalise the industry. These deterrents are particularly hard to accept at a time when the Royal Mail has failed to meet its targets on delivery times. With planned increases in the minimum wage, both publishers and retailers face difficult trading conditions, with limited growth consequently anticipated.
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