Greeting cards sold in boxed sets, such as value packs and assorted boxes, comprise about 12.4% of total revenues for the industry.Growing postal rates and increasing levels of DIY greeting cards will add to the pressure that e-cards have placed on the industry today.Compounded annual growth in greeting card sales in the APAC region are expected to top 3.3% through 2020.The global sales of greeting cards is expected to decline to $21 billion in total by the year 2020.Birthdays are acknowledged more today than every before, but that’s because people can send a simple message over Facebook instead of sending a greeting card in the mail.Ī Shrinking Market Means Shrinking Opportunities Add in the fact that Millennials are the most tech-savvy generation to date and the potential for growth becomes even more dismal. If twice as many people plan to purchase cards next year, but the industry itself is expecting a 5% decrease, then the customers the industry is losing are its biggest spenders. Here’s the hidden data within these key points. According to data from Hoover’s, almost 100% of the revenues for the US greeting card industry come from the top 50 companies in this category.Twice as many people who purchase greeting cards say that they will increase their purchases in the coming year compared to those who are decreasing their purchasing levels.70% of people who purchase greeting cards say that having them is either absolutely essential or almost essential to how they communicate with others.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.The cost of a typical counter card, however, is between $2 and $4. Greeting card prices can vary from 50 cents to $10 – with a price point for every consumer.Women spend more time choosing a card than men, and are more likely to buy several cards at once. Women purchase an estimated 80% of all greeting cards.Valentine’s Day and Mother’s Day see more than 100 million cards sold. Christmas cards are the most popular seasonal cards for the greeting card industry, with 1.6 billion purchased each year.According to Sarah Turk, who is an analyst with IBIS World, the online portion of the greeting card industry isn’t lucrative enough to offset the weaker sales that are seen in stores.Part of the issue for the greeting card industry is the fact that numerous companies have flooded the market with digital greetings and delivery systems that can be personalized, but without much profit associated to them.As reported by NPR, the issue is that greeting cards are nowhere as profitable as they used to be.The annual retail sales of greeting cards is estimated to be between $7 to $8 billion in total.This means about 6.5 billion greeting cards are purchased in the United States every year. According to the Greeting Card Association, the sales of greeting cards has actually held steady for the last several years. The Issue for the Greeting Card Industry Isn’t Sales In the next 5 years, the downward trends are expected to remain the same for this industry. If you were a good employee in the greeting card industry, then it was said that you had a job for life. Digital communications are causing disruptions within this industry and let’s face it – the internet isn’t going to go away any time soon.įrom 2010-2015, Hallmark slashed its workforce from 22,000 FTEs to 10,500 FTEs worldwide. It’s been said that for the greeting card industry to be able to survive, the industry is going to need to begin becoming more creative.
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