Publisher shares views on soaring costs and shortages now affecting trade
At a time when UK inflation is at a 30-year high, sparking real concerns over those already living on breadline, cost rises and raw material shortages are hitting the greeting card industry from all angles.
In the first of a series, PG Buzz canvasses opinion from those all along the supply chain – printers, envelope companies, publishers, agents and retailers – on their feelings about the price rises and when they predict the situation abating.
First up it’s Daniel Prince, managing director of Danilo…
“Danilo, along with many others within the industry, has experienced a number of cost rises over the last year. This includes shipping container costs which have gone up by 550% since 2020, paper costs which have increased between 10-20% and additional material costs rising by 5%.
“The impact of this has been that we have had to review our cost prices and, having investigated different approaches, evaluated that that the best route has been via small percentage cost rises on certain products. We have tried to keep these rises to a minimum and have made considerable effort to inform our customers as soon as possible and ask retailers to support an increase.”
How resilient do you feel the industry is to accepting the cost increases?
“From a consumer perspective, I feel that the category is quite resilient, as shown by the continual purchase of cards over the past few years, even during lockdowns. However, consumers are coming under increased pressure from rising living costs and, with cards and wrap often regarded as discretionary items, further category price rises are likely to result in reduced volume and spend this year.”
How long do you feel this situation will be a reality?
“The hope had been that things would have settled down by the end of last year, but now it looks increasingly apparent that these raised costs will continue for a while yet.”
Top: Shipping container costs have risen over 500% over the last two years
