Hallmark Cards Inc, a US$4 billion empire built on a demand for printed sentimentality, enters its second century facing a weak economy and what could be an even greater challenge: a generation that has grown up posting its sentiments online.
Hallmark has thrived since Joyce Clyde Hall peddled postcards in Kansas City 100 years ago, rising to become the US’ largest greeting card company with more than US$2.5 billion in annual revenue.
“They’re the biggest. They’re the giant,” said Emily West, a communications professor at the University of Massachusetts-Amherst.
Nevertheless, Hallmark, a privately held company that releases limited information about its finances, has endured two straight years of falling revenues. Its consolidated revenue of US$4 billion last year was 8 percent lower than the year before. In 2008, Hallmark revenues were off 2 percent from the previous year.
Last year, Hallmark dropped 8 percent of its work force.
Whether the revenue declines and layoffs were due to the recession or from the generational shift to more spontaneous forms of communication is still unclear.
Don Hall Jr, grandson of Hallmark’s founder, isn’t alarmed about the possible fallout from the sluggish economy. He also waves off concerns about electronic media being the death of the greeting card; Hallmark has heard it before.
“There were people telling my grandfather all the time that the telephone will lead to the demise of greeting cards,” Hall said.
“Then during my father’s years, it was the fax machine. If you can send a fax ... same thing,” he said.
“Then it happened a decade ago with e-cards, and they said e-cards will replace greeting cards,” he said.
Hallmark, he said, always saw its way through.
“Throughout our 100-year history we’ve seen changes, but we’ve always been able to remain relevant in people’s lives and use new technology,” he said.
Remaining relevant has involved crafting the Hallmark blog, Facebook page, YouTube offerings and a Twitter account. Electronic greeting card books, cellphone greetings and Web-based e-cards show the company is trying to roll with technology.
The company also owns crayon manufacturer Crayola and a real estate development firm, and is a majority owner of cable broadcaster Crown Media, which operates The Hallmark Channel.
Overall greeting cards sales in the US account for about US$7.5 billion in business, according to the Greeting Card Association, a national trade group. The association says in comparison, an estimated 500 million e-cards were sent each year.
Pam Danziger, who analyzes the greeting card industry as president of Unity Marketing, said Hallmark would likely have to change some aspects of how it does business to stay viable.
One move could involve cutting down on its manufacturing investments and large art staff, Danziger said.
Hallmark’s 700 artists include writers, photographers and more at the company’s headquarters.
“The whole model of today’s greeting card industry is really a 20th-century model, where there’s mass printing and writers and poets,” Danziger said.
NO HUMAN ERROR: After the incident, the Coast Guard Administration said it would obtain uncrewed aerial vehicles and vessels to boost its detection capacity Authorities would improve border control to prevent unlawful entry into Taiwan’s waters and safeguard national security, the Mainland Affairs Council (MAC) said yesterday after a Chinese man reached the nation’s coast on an inflatable boat, saying he “defected to freedom.” The man was found on a rubber boat when he was about to set foot on Taiwan at the estuary of Houkeng River (後坑溪) near Taiping Borough (太平) in New Taipei City’s Linkou District (林口), authorities said. The Coast Guard Administration’s (CGA) northern branch said it received a report at 6:30am yesterday morning from the New Taipei City Fire Department about a
IN BEIJING’S FAVOR: A China Coast Guard spokesperson said that the Chinese maritime police would continue to carry out law enforcement activities in waters it claims The Philippines withdrew its coast guard vessel from a South China Sea shoal that has recently been at the center of tensions with Beijing. BRP Teresa Magbanua “was compelled to return to port” from Sabina Shoal (Xianbin Shoal, 仙濱暗沙) due to bad weather, depleted supplies and the need to evacuate personnel requiring medical care, the Philippine Coast Guard (PCG) spokesman Jay Tarriela said yesterday in a post on X. The Philippine vessel “will be in tiptop shape to resume her mission” after it has been resupplied and repaired, Philippine Executive Secretary Lucas Bersamin, who heads the nation’s maritime council, said
REGIONAL STABILITY: Taipei thanked the Biden administration for authorizing its 16th sale of military goods and services to uphold Taiwan’s defense and safety The US Department of State has approved the sale of US$228 million of military goods and services to Taiwan, the US Department of Defense said on Monday. The state department “made a determination approving a possible Foreign Military Sale” to the Taipei Economic and Cultural Representative Office in the US for “return, repair and reshipment of spare parts and related equipment,” the defense department’s Defense Security Cooperation Agency said in a news release. Taiwan had requested the purchase of items and services which include the “return, repair and reshipment of classified and unclassified spare parts for aircraft and related equipment; US Government
More than 500 people on Saturday marched in New York in support of Taiwan’s entry to the UN, significantly more people than previous years. The march, coinciding with the ongoing 79th session of the UN General Assembly, comes close on the heels of growing international discourse regarding the meaning of UN Resolution 2758. Resolution 2758, adopted by the UN General Assembly in 1971, recognizes the People’s Republic of China (PRC) as the “only lawful representative of China.” It resulted in the Republic of China (ROC) losing its seat at the UN to the PRC. Taiwan has since been excluded from