Tuesday, December 06, 2005

An age-old holiday competition

The greeting card industry is fighting its way out of a long-term slump. This is due to other card makers’ deep discounts and a variety of new competitors. Major card makers have been forced to begin selling inexpensive lines in recent years as consumers began turning their backs on $4 cards.
The price of cards has increased in part because of the higher costs of paper and labor. Also, greeting cards have become more intricate during the past few years. Things such as specialty papers and computer chips have been employed by many card makers to enhance sales.
In 1999 Hallmark released its Warm Wishes line of cards, which sells for 99 cents. American Greetings () soon followed with similar prices. Still, according to Hallmark, the less-expensive cards are not the biggest sellers.
It seems that consumers do not go value shopping during the holidays such as this coming Christmas. Once-in-a-year events do not have to be saved on, if you ask me.
Hallmark and American Greetings, both companies sell 85 percent of the nation’s greeting cards, have recently launched advertising campaigns in newspapers and on television to lure customers to their retail stores.

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