Social media, shifting consumer habits erode greeting card market, force consolidation

The internet as put a dent and also ended the industries of many companies. For example, streaming videos has ended the way we watch movies and we no longer make a trip down to our nearest “Blockbuster” and rent a dvd. Social media has done the same for the ‘Greeting Card’ industry. Over the past decade the number of greetings cars that were sold in the US has decreased from  6 billion to 5 billion annually.

Although most people do prefer physically opening a card, it tends to be easier for the greeters to write a simple message on their Facebook wall or even send them an e-card through email. It is also apparent that even the cards people are sending have changed in appearance. People are now taking images off the internet and creating their own greetings for those they are close with. The card making software that was once only available to professionals is now available to everyone which does make it easier and more cost efficient for those sending out home-made cards.

Big companies like Hallmark and experiencing the negative effects of the advance in technology and social media. Before when the main way of communicating with someone was through mail, it is no surprise they are suffering from a decline because of the new found ways of expressing ourselves, which is mainly on the internet.

Statistics say that greeting cards fell 24% between 2002 and 2012, invitations alone has dropped nearly 25% between 2008 and 2010. This is due largely on the new demographic of mail (or in this case email) senders who are kids/teens that become used to communicating mainly through their computer screens.

Although technology is progressing card companies like Hallmark are gradually starting to adapt too these new changes. For example, they have created an iPhone app which lets people buy cards electronically and mail them from their iPhones. Additionally they have partnered with a company called Shutterfly, which gives the iPhone owner the opportunity to even make their own card and customize it how they please. American Greetings who is a chief rival has actually went from trimming costs and jobs too announcing they are adding around 125 more workers which will be a part of their expansion that will allow customers to design their very own cards, much like Hallmark.

All in all, it is important too remember that people do still appreciate the sentiment of a nicely handwritten card arriving in their mailbox. But, I do believe that people whom you are close with will still go to this effort to formally greet you on your wedding, birthday or any special event in your life. I do think the technological movement of greeting cards is a bitter-sweet one because on side the gesture seems less sentiment but on the other hand this can also be great for the environment because of the decrease in paper being used.