Pick a Card, Any Card

Electronic greetings and social media did not kill the paper greeting card category. They may have actually made it stronger. 

Consumers of all ages are buying greeting cards, and they are seeking exciting, multisensory versions. Manufacturers are developing items with new textures and formats that appeal not just visually, but also via touch and sound. The challenge for grocery, industry observers say, is to offer a selection that delights these shoppers who might otherwise order paper cards online. 

According to the Washington, D.C.-based Greeting Card Association (GCA), seven out of 10 card buyers surveyed 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. 

“The resiliency of the category has been pretty refreshing,” says GCA president Carlos E. LLansó. “We see a lot of innovation, and the price of cards is increasing.”

The GCA also reports that younger card buyers and people who are more tech-savvy are most engaged in buying paper greeting cards online. That does not necessarily mean the demise of in-store greeting card sales, says LLansó. People are often reminded that a loved one’s birthday is approaching by social media, or that someone is getting married or has even become ill. For some, that Facebook or Instagram post serves as a reminder to go out and buy a card. That is especially true of young consumers, LLansó says, as Millennials send everything from a simple thank you card after a college tour to an extravagant paper sculpture for Valentine’s Day. 

Others agree that Millennials are indeed participating in the greeting card category. “Younger consumers are certainly important, and they share the same need to create meaningful connections that older consumers exhibit,” says Patrice Sadd, director, corporate communications for Cleveland-based American Greetings. “According to American Greetings research, more than 80 percent of Millennials bought a paper greeting card in the past year, which is consistent with other generations of older consumers.”

Retailers can benefit from this all-ages trend, Sadd says, by providing the right amount of space in a highly visible location. American Greetings helps by offering in-store marketing capabilities for greeting card merchants. “American Greetings looks at each store individually and has a formalized process for providing the optimal greeting card department,” she says. 

Hallmark Cards also uses customization and personalization to help drive sales. James Melton, vice president/general manager, national accounts says the Kansas City, Mo.-based company uses proprietary tools and shopper data to ensure that Hallmark provides the right cards for customers of each store. “For example, a store with a customer base of young families might need larger sections of wedding, baby and kid birthday cards,” he says. “When a consumer walks into the Hallmark department, everything from the product to the visuals should signal, ‘We know you and welcome you.’”

For 2016, Hallmark introduced Valentine’s Day Felt Song Cards, designed to appeal to multiple senses. The front of the cards featured full-felt designs with dimensional layers and faux stitching. Felt is an unexpected greeting card material, Melton says, intended to make an impact in the store and to the recipient. When opened, the cards play a popular song, such as Sugar, Sugar, and contain written sentiments appropriate for all ages.

Also new is The Hallmark Fun in Motion collection of birthday cards, available for the first time to mass retailers in March. The cards combine motion and sound. At the press of a button, an attachment on the card cover moves, shakes and dances in sync with songs such as Eye of the Tiger and You Are My Sunshine.

The company even participated in the Star Wars phenomenon, thanks to a 20-year-plus licensing relationship with Lucasfilm. Hallmark offers cards that contain a TOPPS Star Wars Galactic Connexions Trading Disc. The discs can be collected, traded and used in a game where players share Star Wars knowledge to win. Four of the cards in the collection feature characters from the recent movie Star Wars: The Force Awakens.

Movies are not the only tie-in that helps boost sales of greeting cards. Another consumer trend is the growth in the gift card category, as more shoppers value that option for their gift-giving needs. According to the International Council of Shopping Centers’ Holiday Consumer Purchasing Trends study on shopping behavior during the 2015 holiday season, 62 percent of holiday shoppers bought gift cards; with an average spend of $145. Fifty percent of all consumers received a gift card this season.

Gift givers likely send a greeting card with the gift card. Hallmark makes that task more convenient for the consumer, and helps drive greeting card sales for retailers, by merchandising greeting cards together with gift cards during major seasons like Christmas, Mother’s Day and graduation. 

These greeting card outposts are further evidence that the category is still important, and that retailers need to respond to consumer demands. “Even as the country becomes diverse and interconnected, people still have distinct needs and they want something to represent them uniquely,” says Melton. “The greeting card category must provide consumers with cards that stand out and truly reflect the card giver or recipient—whether it’s their style, culture, beliefs, etc.”

While consumers do have various needs, one thing people of all ages seek is humor, says Marc Trobman, vice president of business development for Avanti Press, based in Detroit. “We know that consumers want to buy funny cards, and in grocery they can’t find enough,” he says. “Our focus is on humor. That’s our core tenet.” 

 Trobman says 2016 will be Avanti’s most productive year ever, with 30 new cards. There are several launches planned under the Avanti brand, and the company is also relaunching the A*Press brand. The cards are attractive, with funny verse, and are designed to be a woman-to-woman brand, he says. They are oversized and feature a very tactile paper, which appeals to Millennials and also offers opportunities for merchandising. 

“They are not in plastic because we want consumers to be able to touch the card,” says Trobman. Avanti also provides displays that show full face views of the cards, which makes them easier to merchandise on endcaps. 

In addition to humor and the appeal to Millennials, the cards can provide another benefit to supermarkets. “Think about how you feel when you get a paper greeting card, it makes you smile,” says Trobman. “We think that promotes good health. Most grocery retailers focus on health as one of their pillars. We think greeting cards can help with well-being.” 

Trobman adds that it takes seconds to buy milk, but it takes several minutes to choose the right card, which can cost upwards of $4.00. “If the shopper is going to spend that much time making a $4.00 decision, don’t you think you should take care of them,” he says. “To be successful now every retailer has to be obsessed with the shopper, because they have so many choices.” 

Shoppers cannot touch a card’s interesting textures online though, and tactile features are very in demand right now, says Dawn Garvey, CFO of Designer Greetings, based in Edison, N.J. is launching three collections this year. Ooh La La is an artistic and creative line that features hand-lettering, vibrant, textured backgrounds and a sprinkle of sequins. Awesome Sauce is a humorous line that sarcastically and playfully pokes fun at life’s special moments, with witty verse and hand-lettered designs in a vintage color palette. Way To Go, Kid! is a kid’s achievement line that boasts uplifting messages and fun illustrations.

Garvey says these three lines respond to current trends. “Ooh La La and Awesome Sauce embody the desire for true hand-lettered design, which is a trend that is in great consumer demand,” she says. “Way To Go, Kid! is a collection that appeals to any consumer who wants to celebrate a child in their life and their many accomplishments. Children will love the cards because of the many achievements they can relate to, such as dance recitals, martial arts, positive report cards and other general accomplishments.”

 Garvey adds that “get it quick” and “keep it simple” are the on-trend motifs for these cards. “Cards that provide eloquent, yet simple ways of saying just the right thing at just the right time seem to be what the consumer wants. They will find this with all three of Designer Greetings’ newest collections,” she says.

LLansó says the future of the category is bright. “We are an industry of creative people with an entrepreneurial spirit,” he says. “It’s a strong category in grocery, a high margin item compared to other products. Our grocery stores love the business they do with us.”