The advancements in technology have caused the greeting card industry to see a steady decline in revenue. Can the card giant recover?
Birthday cards, anniversary cards, sympathy cards - how many of these types of sentiments get sent anymore?
A look at the greeting card industry analysis will reveal what's been going on in the greeting card industry in recent years.
Find out if greeting cards are soon to be relics of an era gone by.
Less Space for Greeting Cards
Many people are giving up cards in favor of digital alternatives. When you can send a free ecard why spend money on a physical one?
Major retailers, such as Walmart, are planning to cut back on card space. And greeting card companies have closed hundreds of standalone locations.
In 2012, greeting card stores added up to a total of 6.24 million square feet. In 2018, that number had dropped to 4.54 million.
But even with less square footage, there is no doubt that if you wanted to buy a greeting card, you could do so at many convenient locations near you.
In fact, the greeting card industry isn't ready to roll over just yet. Here's what they are doing to stay current in our tech-driven society.
How Greeting Card Companies are Adapting
Hallmark now sells individual cards, box sets, and wrapping paper on Amazon.
And there are still 2,000 Hallmark Crown Gold stores across the country.
“Like all stores, retail is being disrupted. So we’re having to change with the times as well,” a Hallmark spokesperson explained to CNBC in 2017.
Appealing to Millenials
Millennials are inundated with online noise. Texts, emails and social media take up a huge part of their daily experience.
So, for them, a physical greeting card is a novel and tactile experience. Instead of a link that people click off in under 5 seconds, greeting cards are a tangible means of expression.
In fact, Valentine's Day 2019 saw greeting card sales of $933 million. That's up from the $893 million the year before. Not bad.
And as millennials are the largest buying power, wise greeting card companies are catering their cards to them.
With more casual and humorous cards, greeting card companies hope to appeal to this younger crowd.
Growth in Stationary
Easy, Tiger is a small startup that has financial backing from Hallmark. In addition to greeting cards, they are finding innovative things to do with stationery.
Expanding to areas outside greeting cards and gift wrap is a way to protect against greeting card industry decline.
Focus on Loyalty and Rewards
With better online tools and metrics, the greeting card industry can pinpoint their target market and get specific and actionable intel from tracking their shoppers' buying habits.
Also, many greeting card industry companies are upping their game when it comes to perks and customer loyalty rewards.
The greeting card company, Papyrus, saw that perks members resulted in a 66% higher lifetime value.
Fostering loyal customer relationships is clearly necessary for helping greeting card companies soldier on.
Final Thoughts on the Greeting Card Industry
There you have it! An inside look at the greeting card industry today. We hope you found this article informative.
Check back with us again soon for more interesting content for you to read.