New technologies and low costs per consumer are benefiting the industry's bottom line
Los Angeles, CA (PRWEB) July 30, 2012
The Online Greeting Card Sales industry is expanding rapidly as consumers shift to online shopping and e-cards. “An increasing number of broadband and mobile internet connections has helped facilitate consumer access to online greeting card retailers,” says IBISWorld industry analyst Agata Kaczanowska. “Additionally, the industry provides consumers with convenient and often more affordable alternatives to brick-and-mortar greeting card retailers.” As a result, the industry continued to grow robustly during the past five years, despite dips in disposable income and advertising expenditure. In the five years to 2012, IBISWorld estimates that revenue has grown at a 19.5% annualized rate to $3.5 billion, including a 17.5% jump in 2012. In addition to quick revenue growth, new technologies and diminishing costs per consumer are benefiting the industry's bottom line.
Over the past five years, wages rose as more companies, enticed by growth opportunities, entered the Online Greeting Card Sales industry. The relative ease of new entrants to establish themselves in the industry gives this industry a low concentration. Over the period, concentration has decreased, says Kaczanowska. “Established operators like Hallmark and American Greetings have faced mounting competition from new entrants. Small niche companies have room to grow in this currently unsaturated marketplace.” Slowing growth over the next five years, however, could turn the table in existing players' favor, limiting entrance and expansion opportunities for newer participants that have yet to establish a name for themselves.
Purchase costs also rose as companies differentiated their products by using higher-quality materials and offering more personalization options. Customized cards increased in popularity with consumers; however, they are more expensive to produce because they must be printed on demand in small quantities. Such processes are evolving to become increasingly efficient and, therefore, personalization costs are diminishing over time. Meanwhile, industry innovation is making customization increasingly easy and fun for consumers, which boosts its value to consumers.
During the next five years, technological advancements will continue to prop up industry expansion. Rising internet and mobile access will enable more consumers to buy greeting cards online, and industry marketing will attract consumers through social media and mobile applications. Industry players will increasingly add customization options to their products and services, targeting consumers' specific tastes and locations. During the next five years, rising disposable income and advertising expenditure are also forecast to support industry revenue. For more information, visit IBISWorld’s Online Greeting Card Sales in the US industry report page.
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IBISWorld industry Report Key Topics
This industry sells greeting cards and e-cards online. This industry includes online greeting card retailers that sell physical cards; however, it does not include brick-and-mortar sales of greeting cards.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.