Is Hallmark Facing New, Stiff Competition?

Is Hallmark going to be the next company to feel the pinch?

We are living in tough economic times. Not only are we in the midst of a recession and so many people are looking for jobs, we are also in the middle of a new technological revolution. People are more connected than ever, through the use of mobile devices and social networking. As a result, the way that we have always done things are changing.

If you think about it, many things have changed and as a result, companies that haven't been ahead of the change have been losing out. For example, companies like Amazon have made it easy for people to read books and magazines on their Kindle rather than buying print versions from a bookstore. Instead of buying CDs, music lovers can download MP3s from iTunes and put them directly in their smart phones, tablets or iPods. Almost any industry you can think of has been changing because of this revolution.

Now, it looks as though the greeting card giant Hallmark is the next company to be in the cross-hairs. The greeting card industry has been suffering over the past few years because many people just don't have the time to send cards through the mail. There are many websites that offer emailed e-cards, but those don't have the same impact as an actual card sent through the mail.

Personally, I'm a big fan of sending cards. During the winter holiday season, it is a tradition to go to Hallmark and select a beautiful box of cards and send them to family, friends and business associates. I love doing it and if I had more time, more stamps and more motivation, I would probably send cards all year round.

The problem for me is that even though I want to send cards, it is just a hassle. Either I forget to buy stamps or buy cards or just put off writing and addressing them. Whatever the reason, I just end up not sending them. However, all of that is about to change.

Apple announced its new iPhone 4s earlier this week and along with Siri, the personal assistant, they also introduced their new iCard app. This app allows iPhone and iPad users to create greeting cards from pre-made designs or using photos they have taken with their iDevices. Right from the app, users can have the cards printed out, stamped and mailed through the postal service. Not only do they take care of all of the hassle, the senders even get a push notification on their phone or tablet letting them know when the card was delivered. The service costs $2.99 for cards delivered in the U.S and $4.99 for international mail. The nice thing is that the charge gets billed through iTunes.

This means that I can take a picture of my kids, turn it into a card and send it to my family in just a few minutes with very little hassle. For some, the cards might be a little pricey, but for $2.99, you get a card that is Apple quality, the stamp and stamp cancellation is all in-house Apple art and the cards are made from cotton fiber with custom ink.

Surprisingly, the greeting card market is very lucrative. Currently, the global card market is about $31 billion and Hallmark is the clear industry leader. But, that might change as busy people choose to send cards through the iCard app. Although it won't take the place of a handwritten card, these cards will appeal to people who have never sent greeting cards or those who, like me, always forget to stick it in the mail.

Watch out Hallmark, smart phones are gunning for you now.

What do you think about this app? Would you send cards this way? I would love to hear your thoughts in the comments.

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