Peek into the modern greeting card industry

The highly seasonal greeting card industry is transitioning to the digital age.

Given that greeting card sales are very dependent on seasonal fluctuations in demand, you may be surprised to find that in the United States alone, the greeting card industry generates approximately $7 billion in revenue each year. The vast majority of this revenue can be attributed to deep-rooted boulders such as Hallmark and American Greetings Corporation.

Like other companies in the publishing industry, greeting card companies have been hit hard by the rise of digital media. Although Americans still send an average of 25 to 30 greeting cards per year, their personal traditions have been eroded by the immediacy and convenience of e-cards and the excessive inventory of pre-sale drugs. From 2012 to 2014, Hallmark's revenue shrank by 5%. Despite the restructuring and privatization in 2013, AGC failed to expand its market share.

Although e-cards provide a much-needed path into the digital age, they do not bring much benefit-customers like to customize messages easily, but obviously it takes less (if any) to create and send messages. Despite this, companies such as AGC and Blue Mountain have diversified their products, including e-cards and traditional prints, in an attempt to compete with purely digital companies.

That said, in recent years, physical innovations such as the use of recycled paper, voice recording software, and LED lights have promoted off-site sales, especially among shoppers willing to spend more on these bells. Unfortunately, most of the card buyers are budget-conscious and choose low-cost cards, thus invalidating this advantage.

Seasonal greeting cards account for a high percentage of greeting card revenue (according to a British publisher, 25% of total greeting card sales). This will lead to excess inventory and gradually reduce the relevance as the holidays approach. So, when a special occasion passes and unsold greeting cards are left, what will the retailer do?

Retailers usually choose to keep inventory on shelves. Sometimes, the stock has fallen as much as 50%. In many cases, even a reduced price promotion is better than returning or donating stock.

Bottom line: Although it is still profitable, the modern greeting card industry is still in rough waters. Even though profits increased by 1.7% from 2011 to 2016 (mainly due to cost-cutting measures rather than increased sales), as customers move more and more, the industry is expected to start every year in the next few years Deviation from the -3.8% level. Decisively switch to cheaper digital options.

Like many traditional industries entering the digital age, the greeting card industry may struggle to adapt. Many publishers will continue to expand their online business and invest in e-card design to survive. Personalization may become the focus of attention-for example, the service provided by Hallmark allows customers to create and print cards in multiple languages. On the other hand, American Greetings is pushing it into the digital realm through its justWink app and emojis that support Apple Watch.

Some smaller companies, such as lovepop, are resisting this digitization, calling them "disruptors" in the greeting card industry. Founder Wombi Rose told Inc.com: “Digital cards don’t make people feel personal. This is not surprising.” Rose and co-founder John Wise (John Wise) aim to bring personality to the greeting card industrial park. Customized style.

Whether lovepop and similar products can restore the greeting card industry remains to be seen, but one thing is certain: consumers will continue to find ways to share seasonal greetings with their loved ones via email or ordinary snail mail.