Report assesses 'new' greetings
Consumer research* for market intelligence provider Key Note’s new Greetings Cards Market Report Plus, found that the sending of e-mails in lieu of traditional greetings cards has, perhaps surprisingly, decreased in 2010, having previously increased annually.
Just 36.8% of respondents said that they had used this method of communication rather than sending a card, down from 42.8% in 2009. However, even if younger consumers are still, to some extent, buying traditional greetings cards, they are still likely to embrace other means of communication such as blogs, online chatrooms and social networking sites. Key Note warns that retailers and manufacturers must therefore not pass on the opportunity to engage these potential customers in the same way.
While Key Note’s survey found that there was also a decrease in the incidence of sending text messages or using Voice over Internet Protocol (VOIP) such as Skype rather than sending a traditional card, there was an increase in the use of free e-cards in 2010. It is also very likely that more consumers, particularly younger ones, use social networking sites such as Facebook and Twitter to convey greetings rather than sending a card. Furthermore, those sending e-mails and texts or using VOIP in lieu of a traditional card were most likely to be in the youngest age group, while free e-cards were favoured by those aged between 25 and 34.
The report concludes that the UK greetings card industry is mature and the marketplace is a highly competitive environment with limited scope for expansion. However, points to a growing population through longevity, an increasing birth rate and immigration are advantageous to future sales value growth, which is expected to be at a rate of 6.2% between 2010 and 2014.
Key Note anticipates that spring season cards will see the best value growth, while the retail sales value of Christmas and New Years cards will continue to contract, not least because of the increasing involvement of the supermarkets and other discount chains, such as Card Factory and Poundland, offering competitively priced cards. Companies will continue to manage more channels of communication and constantly strive to reach potential customers. It is clear that these cheap and instantaneous methods of communication, including social networking sites, remain a real threat to the industry especially bearing in mind that their use is most prevalent among young people who will be the card-buying market of the future.
* Key Note commissioned research to ascertain the incidence of purchase of greetings cards, with 1,000 respondents aged over 16. The survey was carried out in June 2010. Key Note’s 2010 Market Report Plus, Greetings Cards, analyses both the publishing and retailing aspects of the UK greetings cards industry.
Greetings cards are defined as paper-based products designed for conveying personal greetings and messages, while other forms of social stationery, such as postcards and invitation cards, are not included. The Market Report Plus 2010, Greetings Cards, is available to purchase online.
For further information, please contact Key Note on 0845-504 0452, or e-mail at sales@keynote.co.uk.
Publishers targeting the digital frontier
American Greetings Interactive, which owns Bluemountain.com and Egreetings.com, ran a series of targeted e-mail marketing campaigns in 2009/2010. It also intends to expand its online marketing efforts through social media during the coming year, providing additional features on Facebook and Twitter to enable customer interaction.
“Our customers tell us that despite the fact that we live in a computer age, they still get a thrill when they find a card waiting for them on the doormat. It shows that someone has been thinking about them.” Dave Hughes, Director of M&S Direct speaking at the launch of Marks and Spencer’s personalised online card service (2009)
Newcastle-upon-Tyne-based Greetings Card Company Ltd is one of the many publishers using the likes of Facebook and Twitter to prompt people ahead of card-buying occasions and to introduce new lines, while potential customers can follow testimonials.
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