Contents:

TABLE OF CONTENTS: Executive Summary 1. Market Definition REPORT COVERAGE MARKET SECTORS Birthday Cards Christmas and New Year Cards Spring Season Cards Other Everyday Cards MARKET TRENDS New Occasions Production in the Far East ECONOMIC TRENDS Population Table 1: UK Resident Population Estimates by Sex (000 and %), Mid-Years 1998-2002 Gross Domestic Product Table 2: UK Gross Domestic Product at Current and Constant 1995 Prices (£m), 1998-2002 Inflation Table 3: UK Rate of Inflation (%), 1998-2002 Unemployment Table 4: Actual Number of Unemployed Persons (million and %), 1998-2002 Household Disposable Income Table 5: Household Disposable Income (£ and %), 1998-2002 MARKET POSITION The UK Table 6: Household Expenditure on Newspapers, Books and Stationery by Value at Current Prices (£m), 1998-2002 Overseas 2. Market Size THE TOTAL MARKET Table 7: The Estimated Total UK Greetings Card Market by Value by Sector at Current Prices (£m at rsp), 1998-2002 BY MARKET SECTOR Birthday Cards Table 8: The Estimated Total UK Birthday Cards Sector by Value at Current Prices (£m at rsp), 2001 and 2002 Christmas and New Year Cards Table 9: The Estimated Total UK Christmas and New Year Cards Sector by Value at Current Prices (£m at rsp), 2001 and 2002 Spring Season Cards Table 10: The Estimated Total UK Spring Season Cards Sector by Subsector by Value at Current Prices (£m at rsp), 2001 and 2002 Other Everyday Cards Table 11: The Estimated Total UK Other Everyday Cards Sector by Value at Current Prices (£m at rsp), 2001 and 2002 OVERSEAS TRADE Table 12: Overseas Trade in Greetings Cards and Illustrated Postcards (£m at msp), 1998-2002 Imports Table 13: Imports of Greetings Cards and Illustrated Postcards by Value (£000 at msp), 2002 Principal Sources Table 14: The Import of Greetings Cards and Illustrated Postcards into the UK by Country of Origin by Value (£000 at msp), 2001 and 2002 Exports Table 15: Exports of Greetings Cards and Illustrated Postcards by Value (£000 at msp), 2002 Principal Destinations Table 16: The Exports of Greetings Cards and Illustrated Postcards by Country of Destination from the UK by Value (£000 at msp), 2001 and 2002 3. Industry Background RECENT HISTORY NUMBER OF COMPANIES Table 17: Number of UK VAT-Based Enterprises Engaged in Publishing by Turnover Sizeband (£000 and %), 2003 BY EMPLOYMENT Table 18: Number of UK VAT-Based Local Units Engaged in Publishing by Employment Sizeband (number of employees and %), 2003 REGIONAL VARIATIONS IN THE MARKETPLACE DISTRIBUTION From the Publisher Wholesale or Direct to Retail Franchises Own Label Card Buying Groups Other Business-to-Business Direct to the Consumer From the Retailer Specialist Greetings Cards Multiples Multiple Retailers Grocery Multiples Confectioners, Tobacconists and Newsagents The Post Office Charity Shops Others HOW ROBUST IS THE MARKET? LEGISLATION The Commercial Agents (Council Directive) Regulations 1993 The Green Claims Code 1998 Registered Design Protection Directive 2001 Waste Electrical and Electronic Directive KEY TRADE ASSOCIATIONS The Giftware Association Greeting Card Association 4. Competitor Analysis THE MARKETPLACE MARKET LEADERS Table 19: Financial Results for Leading Companies in the UK Greetings Card Industry by Turnover and Pre-Tax Profit (£000) PUBLISHERS Carlton Cards Ltd Company Structure Current and Future Developments Financial Results Hallmark Cards (Holdings) Ltd Company Structure Current and Future Developments Financial Results International Greetings PLC Company Structure Current and Future Developments Financial Results Kingsley Cards Ltd Company Structure Current and Future Developments Financial Results The Paper House Group PLC Company Structure Current and Future Developments Financial Results Simon Elvin Ltd Company Structure Current and Future Developments Financial Results UK Greetings Ltd Company Structure Current and Future Developments Financial Results RETAILERS Birthdays Group Ltd Company Structure Current and Future Developments Financial Results Cardfair Ltd Company Structure Current and Future Developments Financial Results of Cardfair Ltd Clinton Cards PLC Company Structure Current and Future Developments Financial Results Table 20: Financial Results for Clinton Cards PLC† by Turnover Size and Pre-Tax Profit (£000), Years Ending February 2002 and 2003 Outside Suppliers Paper and Board Suppliers Printers Specialist Greeting Card Envelope Manufacturers Display Equipment and Shopfitting Administrative Services MARKETING ACTIVITY Main Media Advertising Expenditure EXHIBITIONS UK Exhibitions Spring and Autumn Fairs Top Drawer Brand Licensing London Overseas Exhibitions The National Stationery Show Paperworld Publications Progressive Greetings Worldwide Greetings Today 5. Brand Strategy CATEGORIES Humorous Cute/Whimsical Traditional Contemporary Art Photographic Multi-Cultural and Religious Handmade/Hand-Finished Licensed The Henries Awards Table 21: The Henries Awards Winners by Category by Publisher, 2002 6. Strengths, Weaknesses, Opportunities and Threats STRENGTHS WEAKNESSES OPPORTUNITIES THREATS 7. Buying Behaviour HOUSEHOLD EXPENDITURE By Gross Income Decile Group Table 22: Average Weekly Household Expenditure on Books, Greeting Cards, Stationery, Diaries, Address Books, etc. by Gross Income Decile Group (£), 2002 By Age of Head of Household Table 23: Average Weekly Household Expenditure on Books, Greeting Cards, Stationery, Diaries, Address Books, etc. by Age of Head of Household, 2002 CONSUMER PENETRATION Traditional Cards Variation by Age and by Sex Table 24: Penetration of Categories of Greetings Cards by Age and Sex (% of adults), 2003 Variation by Social Grade Table 25: Penetration of Categories of Greetings Cards by Social Grade (% of adults), 2003 Variations by Region Table 26: Penetration of Categories of Greetings Cards by Geographical Region (% of adults), 2003 E-Mail and Text Messages Variation by Age and by Sex Table 27: Penetration of Categories of Electronic and Text Greetings by Age and Sex (% of adults), 2003 Variation by Social Grade Table 28: Penetration of Categories of Electronic and Text Greetings by Social Grade (% of adults), 2003 Variations by Region Table 29: Penetration of Categories of Electronic and Text Greetings by Region (% of adults), 2003 8. Current Issues MERGERS, ACQUISITIONS AND CLOSURES Greeting Card Group Ltd Lightweight Designs Ltd Athena BOARD AND SENIOR MANAGEMENT CHANGES Greeting Card Company Ltd Birthdays Ltd Card Connection Paper Rose Ltd Carte Blanche Greetings Ltd Gemma International Ltd WH Smith Ltd OTHER MATTERS AFFECTING THE INDUSTRY Plagiarism Format-Based Pricing Charity Cards Wastage The Impact of Technology The Future of the Post Office 9. The Global Market INTRODUCTION The US Market The Louie Awards The European Market 10. Forecasts INTRODUCTION Table 30: Forecast UK Gross Domestic Product in Real Terms (%), 2003-2007 FORECASTS 2003 TO 2007 Table 31: The Forecast Total UK Greetings Card Market by Value by Sector at Current Prices (£m at rsp), 2003-2007 MARKET GROWTH Figure 1: Forecast UK Greetings Card Market by Value (£m at rsp), 1998-2007 FUTURE TRENDS Growth Factors Household Size Threats to the Industry 11. Company Profiles Birthdays Group Ltd Carlton Cards Ltd Clinton Cards Plc Greeting Card Group LTd International Greetings Plc Hallmark Cards (holdings) Ltd 12. Company Financials 13. Further Sources Associations General Sources Bonnier Information Sources Government Publications Other Sources