Will fine stationery go the same way as Australian wines?
Sunday, July 5th, 2009Yesterday’s New York Times had a fascinating article tracing the tragic decline of the Australian wine industry. Meriah Foley in an article entitled “For Australian Winemakers, More Turns Out to Be Less,” documents the decline in margins of the world’s fourth largest wine exporter whose aggressive pricing to build market share now threatens the entire industry. Writes Ms. Foley, “Even as its star appeared to be rising, the Australian wine industry was sliding, selling a greater volume of wine at increasingly lower prices . . . a level many say is unsustainable.” For one who discovered the bold new taste of Coonawarra wine in the late 70s, this comes as a bitter disappointment.
For some time, I have felt that the same thing has been occurring in the stationery industry. We are constantly bombarded with new papers and designs that - like Australian wines – British wine writer Andrew Jefford refers to as “cheap and cheerful.” As more and more fine stationery companies fall prey to the need to mass-market their product over the Internet, brand awareness and quality standards will inevitably give way to price competitiveness.
I have long argued that there is no way to differentiate your brand on the Internet and the only way to compete effectively is to become the low cost producer. This implies sacrificing standards and quality. Once you have done so, can you restore brand awareness to a public that has become accustomed to the “discounted” brand? The Australian wine industry is a vivid example of what can happen to an industry that loses its bearings and places its emphasis on growing market share rather than promoting brand awareness.
It is not difficult to see the same tragedy unfolding in the stationery industry. With self-appointed pundits shamelessly promoting inferior designs, cheap papers and anything-goes etiquette, it is no wonder that the public is confused and disoriented. I fear that the stationery industry is rapidly paddling up the river of no return. If we want to preserve the integrity of the industry, designers and craftspeople and industry leaders must collectively raise their voice to the innane claims, hyperbole and simply “bad taste” that permeates our industry.