CARD WARS : Smaller Companies Irate at Hallmark’s Bid for New Niche
It’s hardly the vintage rose that once characterized traditional Hallmark cards, and there’s no seven-line poem inside.
But take a look at some of the new offerings from Hallmark Cards. One declares: “I’m thinking of going in for a sex change.” Inside: “I’d like to start having some.”
And there’s a card for a person’s business anniversary: “The fact you worked here so long only proves one thing.” Open the card: “The lobotomy worked. Happy Anniversary.”
The cards are part of Hallmark’s newly launched Shoebox Greetings line of cards. A direct assault on the so-called alternative card market, Hallmark introduced Shoebox in April with an unprecedented lineup of 800 cards.
But not everybody thinks they’re so funny. Small card makers across the country are accusing Hallmark of ripping off their ideas, restraining the sale of their cards and resorting to other tactics that they claim are unethical.
The largest of the alternative card companies, Recycled Paper Products in Chicago, has placed advertisements in trade publications with a headline blasting “The Hallmark Hall of Shame.”
Flavia Weedn, a Santa Barbara-based card designer, and Roserich Designs Ltd. of Carpinteria recently filed an antitrust lawsuit in federal court in Los Angeles against Hallmark.
For its part, Hallmark declines to comment on the lawsuits but rejected other complaints from the smaller rivals in the alternative card market. “These are all original Hallmark designs and sentiments,” said Nancy Matheny, a Hallmark spokeswoman, denying that the company had copied any other company’s cards.
As for Hallmark’s recent expansion into alternative cards, she said: “We’re responding to what the American public wants. That’s just good business.”
Alternative cards are estimated to account for about one-tenth of the $3.2-billion greeting card market, which is dominated by Hallmark, American Greetings and Gibson. Before 1982, 95% of the 14,000 card designs that Hallmark annually puts out were of the traditional fare for birthdays, anniversaries and other occasions.
In 1982, it began to introduce what it calls non-traditional lines under the names Lite, Modern Woman, Deli Funny Expressions, Lovetalk and Summertree Press. Shoebox incorporates the six existing lines, but about 90% of Shoebox cards are new, company officials said.
Alternative cards, which with their offbeat, funny and sometime raunchy messages, have been the fastest-growing segment of the card market, growing at an annual rate estimated at 25%, compared to 5% for the industry as a whole. Alternative cards have been dominated by small operators such as Recycled Products, Roserich and California Dreamers.
The small card makers are accusing Hallmark of copying many of their original card concepts and creative styles with its Shoebox lines.
For example, some Shoebox characters look like the familiar characters of artist Sandra Boynton of Recycled Products, and even the artist’s signature on these Hallmark cards begins with a “B” and looks very much like Boynton’s, some card makers say.
Flavia alleges in her lawsuit that Hallmark is distributing “products deceptively and confusingly similar to” hers and that they infringe on her trademark and trade dress rights. In addition, the suit claims that Hallmark is attempting to unfairly monopolize the greeting card market by offering to buy back other card lines from retailers and replacing them with its new Shoebox offerings.
Other card makers such as California Dreamers and Recycled also say that Hallmark is attempting to restrict the distribution of their cards.
One store operator, who also asked not to be identified, said he was angry at the way that Hallmark was handling the new line. “I hope Hallmark mends its ways. It’s a fabulous company. I’d hate to see it do some things that are against (its) principles.”
