In the cards

The emotional connection created by greeting cards continues to keep the category on top. 

“That which does not kill us makes us stronger.”

Those words, spoken by 19th-century German philosopher Friedrich Nietzsche, could easily be referring to the current greeting card industry and the effect social media and digital technology has had on it.

When digital greetings, such as eCards and social media outlets like Facebook, took hold, many industry observers had legitimate concerns about the long-term viability of paper greeting cards.

Well, paper greeting cards are alive and kicking, thank you very much. According to the Greeting Card Association, based in Washington, D.C., consumers buy approximately 6.5 billion greeting cards each year. Annual retail sales are estimated between $7 and $8 billion.

Many observers even say that social media and the adjoining technologies have actually helped enhance the greeting card category. Some cite the fact that social networking creates more frequent communications with more friends, expanding the base of people sending cards to each other. Others say that greeting cards offer an element of tradition that contrasts with today’s conversational social media communication.

“This follows through to how greeting cards are used,” says Colin Littler, marketing director for Design Design, based in Grand Rapids, Mich. “What we have found is there is still that tangible relationship between message and opening a greeting card—what we like to call, ‘the sweet surprise.’ The tangible feel of receiving a card, whether through the mail or face to face, the feeling of opening the card—there is a heightened emotional attraction involved. Greeting cards will remain relevant because they do this in a way that social media simply cannot.”

The strength of the category bodes even better for grocery retailers. Instead of replacing paper greeting cards, technology has changed the category’s retail face. When once consumers had the choice to buy greeting cards at any number of retailers, including independent cards stores, many of those options have disappeared.

“There has been a lot of attrition,” says Marc Trobman, vice president of business development for Avanti Press, based in Detroit. “Ten years ago I think there were more than 5,000 Gold Crown Hallmark stores, today that number is probably just north of 2,000. Other retailers that carried greeting cards have gone out of business or don’t carry greeting cards anymore. The list of specialty retailers that carried greeting cards who now no longer exist goes on and on. The industry is stable; it is just that channels are shifting. Grocery has a huge opportunity to take advantage of that shift.”

Observers say the value of the greeting card aisle is clear when looking at mass retailers and the space that the players in that channel dedicate to the category. “The greeting card category remains relevant and advantageous to the grocery industry,” says Littler. “Greeting cards have an extremely high margin, they are non-perishable and they come fully serviced. Greeting card departments also help to build the consumer experience in the store.”

Part of building that customer experience is understanding who the customer is and what they want. More and more that customer is a Millennial, and what they want is often a bit different from what their parents and grandparents want.

“Today’s Millennials are more digitally engaged than previous generations; and they communicate differently,” says Tim Tillia, senior director of sales for Cleveland-based American Greetings. “American Greetings is creating more cards that speak like they do, such as our justWink brand, as well as cards for all occasions and holidays that are directed to younger consumers. Also, there is a free justWink app to further engage this important demographic and direct them to retail.”

To better understand today’s consumer Hallmark Cards employs grocers’ loyalty data to influence its card offerings. According to Scott Young, vice president strategic relationships and business development for Kansas City, Mo.-based Hallmark, beyond Millennials, today’s consumer is a living tapestry consisting of blended families, single parents, same-sex couples and increasing racial and ethnic diversity.

“Multicultural and cross-cultural is the reality of America. It is where the growth is and is a powerful influence to everything—innovation, products and marketing,” says Young. “Hallmark is keenly attuned to the cultural influences that shape the way people want to express caring and celebration with family and friends. We apply that insight, not just to the design and sentiment of traditional greeting cards, but also new types of cards.”

Consumer interest in these new types of cards continues to grow, say observers. Suzanne Haines, vice president of marketing for Designer Greetings says the Edison, N.J.-based company is keeping up with the times by offering card titles such as Mom and Husband (versus Mom and Dad), Dad and Wife and To My Partner.

“Our ‘Cause It Matters line addresses terminal illness and sensitive issues, such as cancer, autism, Alzheimer’s, heart disease, miscarriage and diabetes; and we offer a patriotic line called Home of the Brave,” says Haines.

Designer Greetings offers line extensions to specific demographics as well. Its Chitchat line is made for women-to-women, the 4Kidz line celebrates children’s achievements, Exposé is a photo line and Funny Side Up is a humor line.

Laugh it up

Humor, in fact, is a segment that many observers say is underserved, particularly at grocery. Making people smile and laugh is at the top of Avanti’s agenda. 

“Consumers want to buy funny greeting cards, and there just are not enough of them in grocery,” says Trobman. “Grocery, with the pressures they have from the perimeter, many are looking to reduce the greeting card aisle size, and it seems humor gets sacrificed. If a grocer is looking to drive revenue, why wouldn’t they try to look for a way to tailor their assortment to satisfy the consumer so they don’t buy the greeting card elsewhere.”

Avanti cards, which are all made in the U.S., are full-faced and feature unique characters in exaggerated real-life situations. The verse inside is designed to make readers smile and laugh out loud. A collection of peel-and-stick cards, geared toward kids, feature characters on the front and back that are removable stickers that can be placed anywhere. New this year is Big Funny, 14 large die-cut cards, and Trobman says there is more to come.

“We are working on new concepts and formats,” he says. “We have new content coming out every month, and with our unique type of humor, we transcend age, race and gender.”

American Greetings is debuting new collections in 2015 with an eye toward laughter as well. Launching in the Spring are: Wiggle it Wishes, featuring silly sing-alongs and playful messages; Show Offs, cards that light up, show a hidden message and play a popular song; Automotions, cards featuring music, motion and 3D lenticular innovations, greeting recipients with an animation that loops over and over; and Tongue Waggin’ Wishes, featuring colorful animals with wacky and googly eyes and with a pull on the tongue an animal pops up and sings a silly tune. 

Not all new products from greeting card manufacturers are humor-based. Along with refreshing its range of captions and looks for 2015, Design Design now offers retailers a fresh take on letterpress greeting cards. “This new range combines the old world charm of letterpress printing with a fresh contemporary voice and differentiates itself from similar lines by really pushing the boundaries of what is possible with this type of printing including greater ink coverage and foil treatments,” says Littler.

The limited space grocers have in the greeting card aisle can make it difficult to properly merchandize the wide array of product available to them. Observers say that is where cross merchandising can play a valuable role. 

“We have seen great success with cross-promotional opportunities, such as card and wrap displays with floral arrangements or chocolate for Valentine’s Day or Mother’s Day,” says Hallmark’s Young. “These make really easy bundles or ready-to-go gifts for shoppers. Also outposts and conveniently located displays, such as at checkout lanes or a seasonal aisle, during the last few days of a season help increase sales as seasonal sales continue to come later and later.” 

Just the facts--and figures

Many believed paper greeting cards would be replaced by digital technology. On the contrary, retailers are seeing strong support for the everlasting traditional mailbox greeting. Here are the numbers, according to the Washington, D.C.-based Greeting Card Association:

Consumers purchase approximately 6.5 billion greeting cards each year with annual retail sales of greeting cards estimated between $7 and $8 billion.

The most popular Everyday card-sending occasion by far is Birthday, followed by a number of secondary occasions that include Sympathy, Thank You, Wedding, Thinking of You, Get Well, New Baby and Congratulations.

The most popular Seasonal cards are Christmas cards, with some 1.6 billion units purchased (including boxed cards). This is followed by cards for Valentine’s Day (145 million units, not including classroom valentines), Mother’s Day (133m), Father’s Day (90m), Graduation (67m), Easter (57m), Halloween (21m), Thanksgiving (15m) and St. Patrick’s Day (7m).

Women purchase an estimated 80% of all greeting cards; they also spend more time choosing a card than men, and are more likely to buy several cards at once.

Greeting card prices can vary from 50 cents to $10—with a price point for every consumer. The vast majority of cards are between $2 and $4. (Total price per year include boxed cards.) The cost of a typical counter card, however, is between $2 and $4. Cards featuring special techniques, intricate designs and new technologies and innovations—such as the inclusion of sound chips and LED lights—as well as handmade cards, are at the top of the price scale.

Seven out of 10 card buyers consider greeting cards “absolutely” or “almost” essential to them. Eight out of 10 of these buyers expect their purchases to remain the same going forward. Of the balance, twice as many card buyers say they will “increase” their purchases than those who say they will “decrease” their purchases in the coming year.

Younger card buyers and those who are more technologically savvy are currently the ones most engaged in buying paper greeting cards online.

Most people now acknowledge many more birthdays than ever before because of Facebook, but they are not necessarily sending fewer cards as a result.

The tradition of giving greeting cards as a meaningful expression of personal affection for another person is still being deeply ingrained in today’s youth, and this tradition will likely continue as they become adults and become responsible for managing their own important relationships.