Casket Brands Slowly Dying

The recession is affecting both the way we live, and die. Casket brands – that once frequently sold $10,000 custom models made of high-end materials and fine fabrics – are suffering.

For example, Hillenbrand – the nation's largest casket maker – is struggling as more consumers are choosing cremation over burial or opting for the cheap old pine box. Just last year, casket sales were down to 1.69 million from 1.74 million from the year before – a steep drop from the 1.9 million sales peak of 2000. Consequently, Hillenbrand's revenues fell to $650 million, a 4.3 percent drop from the previous year.

The situation at Matthews International, America's second largest casket maker, is similar as last year its revenues fell 4.6 percent.

So what are these brands doing to stop the bleeding? Hillenbrand is moving to diversify into the cremation sector. It already provides some cremation products, but it's expected that focus will magnify. Matthews is expanding into the more promising funeral business, including grave markers.

Smaller brands see the changing marketplace as an opportunity to challenge the larger brands. The Jonathan Field Collection, for instance, has cut the price of its lower priced caskets in half, giving the market a humble $1,200 model.

However, for established casket brands, this may be just the beginning of hard times. As they rush to cut prices and focus on business costs, the emerging – and very threatening trend – occurring within the category is the rise of casket sales at big box retailers.

Both Wal-Mart and Costco have recently moved to offer caskets online. Wal-Mart's versions retail for as little as $995 and can be shipped directly to your funeral home of choice.

Hillenbrand and Matthews are not lying down, however, and plan to counter the offerings from Wal-Mart and Costco by avoiding a price war and focusing on quality service and customer care. Casket sales, in fact, benefit more from word of mouth than nearly any other consumer product. Communicate a brand of caring and support and your reputation will be passed around.

Then again, there is always casket maker Cofanifunebri's strategy: sex sells everything.