Greeting Card Market Is Experiencing a Generational Shift, Unity Marketing reports
The prime market for greeting card marketers used to be middle-aged women, but now it’s GenXers and younger shoppers

October 17, 2005 Stevens, PA — In a new study of the $36 billion stationery goods market, including greeting cards, social stationery, gift wrap and partyware, paper crafting and other stationery, Unity Marketing found the most dynamic change in the market is a generational shift from older consumers to younger.

Traditionally, middle-aged consumers (45+) were the mainstay of the greeting card and stationery industry, but not anymore. Today consumers 44 years and younger take the lead as the most active buyers of all things stationery. For example, consumers aged 25-to-34 years spent the most on average in the stationery category in the past year, or $118, as compared to only $90 spent by shoppers aged 45-to-55 years.

“This generational shift means dramatic changes to the greeting card marketplace and foretells disruption for companies that are not attuned to the needs and desires of the younger consumer,” explains Pam Danziger, president of Unity Marketing and author of Let Them Eat Cake: Marketing Luxury to the Masses — as well as the Classes. “T his shift toward a younger consumer represents both an exciting new opportunity and very real threat for the future of many greeting card companies and retailers.”

The research reveals the greatest vulnerability for traditional greeting card marketers is found among the younger consumers. A psychographic analysis of greeting card consumers found that while some younger consumers are enthusiastic greeting crad buyers and senders who embrace the traditional greeting card paradigm, about half of the greeting card consumers are not convinced that a greeting card is the best way to communicate. These consumers are ready, eager and willing to accept a new alternative to pre-printed greeting cards. They buy cards because that is what is expected of then, not because they enjoy the process or feel an overwhelming reason to send a card. Whenever a consumer is motivated by habit, even guilt, that is a very bad sign for the future of the business.

Digital cameras, personal websites, email, instant messaging, text messaging and a whole host of other communications media popular with young people today are making paper greetings obsolete and/or just too plain slow. But for these consumers e-greetings are not perceived as an effective alternative. They are interesting, but somehow not real or authentic.

Danziger says, “All one needs to do is watch college and high school aged youths today in their electronics-empowered lifestyles to realize that greeting cards don’t have a place in their future. Given young people’s new ways of communicating, this generation is not going to get excited about receiving a greeting card in their mail box, unless it is wrapped around a check or a $20 dollar bill. The old greeting card paradigm isn’t relevant to their lives anymore and greeting card marketers are well advised to look at the future with no blinders on. “

Make-your-own cards are now in vogue

While the sales of greeting cards are on the decline, growth in the stationery goods market is coming from increasing consumer demand for other memory and paper expression products, including gifting and party goods, such as gift wrap, ribbons and partyware, social and computer stationery and paper crafting supplies for scrapbooking and make-your-own cards. More people find make-your-own cards a more personal alternative to buying a $3 pre-printed card off the shelf.

Danziger says, “Traditional greeting cards were an early 20 th century marketing solution designed around technology and consumer expectations from the early 1900’s. The consumer needs that greeting cards were created to fill — emotional communications that build and strengthen relationships — haven’t gone away, but the market is ripe for someone to come along with a new 21 st century solution that fills that need for consumers today.”

Consumer Insights on Greeting Card, Stationery, Gifting and Paper Goods and Paper Crafting Markets

Unity Marketing’s latest study of the greeting card, stationery, gift wrap and party goods and paper crafting markets includes findings from qualitative/focus group research among serious category users and a survey among a representative sample of 1,644 U.S. consumers focused on their purchases of stationery goods and the motivations that drove those purchase (i.e. why people buy).

The 160+ page research study includes research data and statistics about:

• Stationery Goods Market Size and Growth: What is the size of the overall stationery goods market, as well as the five key product segments (e.g. greeting cards, social stationery, gift wrap and party goods, paper crafting products and other stationery products) and how rapidly is it growing? How is the stationery goods market segmented by type of product?
  
• Demographics of the Stationery Goods Market: What are the demographic characteristics of people who buy stationery goods products? How is stationery goods buying behavior influenced by demographic segments (e.g., gender, age, HHI, size, composition, ethnicity/race, education, etc.)?
  
• Stationery Goods Buying Behavior: What are the primary characteristics of the consumers’ buying behavior related to stationery goods in general and the four product segments (e.g. greeting cards, social stationery, gift wrap and party goods, paper crafting products and other stationery products) in particular? Why do they buy these goods and how do consumers’ motivations different by product category segment? Where do they shop for the different types of stationery products; what factors influence their decision making; how much do they spend buying each of the stationery goods product segments and across the entire stationery goods category; what is the role of brand in stationery goods product selections and shopping choices? How do different demographic segments differ in their shopping and buying behavior?
  
• Psychographic Profile and Segmentation of the Greeting Card Markets: A psychographic profile of the greeting card buyers is developed in this report. The profiles identify four different types or personalities of consumers of greeting card. These profiles identify different drives and motivations found among consumers in purchasing greeting cards; what factors are more or less important in driving greeting card purchasing decisions; and how greeting card marketers and retailers can better understand the hearts and minds of their consumers. In essence, we reveal discover “why people buy greeting cards.”

About Pam Danziger and Unity Marketing
Pamela N. Danziger is a nationally recognized expert specializing in consumer insights for luxury marketers, whether they sell luxury to the masses or the ‘classes.’ She is president of Unity Marketing, a marketing consulting firm she founded in 1992.

Advising such clients as Lenox, Cartier, Herend, Rémy Amerique, Interiors by Decorating Den, Sears, The World Gold Council, The Conference Board and American Express, Danziger taps consumer psychology to help clients navigate and master the changing luxury marketplace. Her latest book, Let Them Eat Cake: Marketing Luxury to the Masses—as well as the Classes, (Dearborn Trade Publishing, $27, hardcover) is in book stores now. She is the author of the recent book, Why People Buy Things They Don't Need: Understanding and Predicting Consumer Behavior (Chicago: Dearborn Trade Publishing, 2004).

She has appeared on CNN’s In the Money, NBC’s Today Show, CNBC, CNN International, CNNfn, CBS News Sunday Morning, Fox News’ Your World with Neil Cavuto, ABC News Now, NPR’s Marketplace and is frequently called upon by the Wall Street Journal, New York Times, American Demographics, Women’s Wear Daily, Forbes, USA Today, Associated Press, Los Angeles Times, Chicago Tribune for commentary and insight.

For media, Unity Marketing can make tables, charts and graphs available upon request.

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