High-end, luxe cards help keep category afloat

E-cards may be grabbing share from traditional cards, but consumers who purchase paper cards are gravitating toward higher-priced products. Greeting cards that feature such technological elements as recording features and LED lights, cards from recycled materials and specialty cards, such as those featuring decorative elements, will continue to buoy profit margins in the category.

A recent report from Ibis World estimated that over the next five years, the greeting card category is expected to decline at an annualized rate of 2.4%. The good news is that high-margin greeting cards — such as those that enable consumers to upload personal pictures and sound recordings, as well as other customized additions to create an interactive experience — are a bright spot in the greeting card category.

Higher-priced cards with layered decorative elements also are a growing segment of the category. “People are looking for high-end boutique cards, but they are also looking for value,” said Michelle Madonia, art director at Designer Greetings. The company has been adding embellishments, and Madonia said that typographic designs, dimensional cards and more die-cut designs are trends to watch.

Niche cards targeted to specific consumers also have grown in popularity. “Blended families, single parents, same-sex couples, multiracial and multicultural families are all more common,” said Jeanne Sheehy, executive director of the Greeting Card Association. Cards increasingly are reflecting those shifting demographics.

“As the country becomes more culturally diverse, there is an opportunity for growth within culturally specific product offerings. Some people have distinct needs, and they want something to represent them uniquely,” said Scott Young, VP strategic relationships and business development at Hallmark.

Designer Greetings’ lineup includes Home of the Brave, a line of patriotic cards; a regional line of Sweet 16 cards; and To Life!, a line of Jewish-themed cards. “We offer cards in a variety of titles. Some of the harder-to-find captions we offer include breast cancer sympathy, chemotherapy encouragement, hairdresser thank you, gay marriage and military-related titles like promotion, boot camp and deployment,” said Steven Gimbelman, Designer Greetings’ president.

Pat Wallace, marketing director at Leanin’ Tree, said collections that appeal to certain geographic areas have been strong at his company. “We’ve done really well with cards that feature Western art,” he said. The company’s Jeff Foxworthy line, which includes cards and gifts featuring the comedian’s redneck humor, has been very successful.