New York, NY (PRWEB) July 06, 2014
Over the past five years, the Greeting Card and Other Publishers have grappled with the advent of paperless substitutes, which have rendered some industry products obsolete. For example, digital substitutes, particularly those on smartphones and tablets, have cut into demand for paper-based calendars and colouring books. “Similarly, consumers' growing use of e-cards, or electronic greeting cards, has constrained demand for traditional greeting cards and postcards,” according to IBISWorld Industry Analyst Sarah Turk. In response, many greeting card publishers, such as Hallmark and American Greetings, have offered digital greetings with a monthly or yearly fee for unlimited e-cards. Greeting card publishers have also responded to greater demand for greeting card customization; for example, Hallmark's website allows customers to choose a greeting card's colour, typeface, artwork and photo.
Nevertheless, the average retail price for greeting cards has declined over the past five years, which can be partly attributed to many consumers purchasing greeting cards at discount or dollar stores. “However, many greeting card publishers have developed a market niche by catering to French-speaking individuals, particularly in Quebec and Montreal,” says Turk. Furthermore, an estimated 600 million greeting cards are sold per year, according to Carlton Cards, making this market particularly attractive to publishers. Nevertheless, during the five years to 2014, industry revenue is anticipated to decline at an annualized rate of 5.9% to $558.7 million, including a drastic 7.8% revenue decline in 2014, due to many greeting card publishers struggling to generate sales volumes during off-peak seasons, such as those lacking holidays. Also, competition has increased in the form of supermarkets and grocery stores, which have increased their leverage to negotiate low-cost deals for sourcing greeting cards.
As the price of wood pulp rises, many publishers will be forced to contend with high raw material prices, such as those of ink and paper, which will cut into revenue growth and profit margins for publishers with in-house printing operations.
For more information, visit IBISWorld’s Greeting Cards and Other Publishing in Canada industry report page.
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IBISWorld industry Report Key Topics
This industry publishes greeting cards in print and electronic form. Some companies also publish products such as postcards, colouring books, yearbooks and more. Firms do not publish newspapers, magazines, books, directories, maps, atlases, databases and music.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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