Can the Greeting Card Industry Thrive? - RetailWire (2024)

In recent years, the once-thriving greeting card industry has faced a major decline. Sales have dwindled, and retailers are scaling back on shelf space. Once prominent retailers like Hallmark have been forced to close multiple store locations over the last few years. With the rise of social media and texting, traditional paper cards seem to belong to a bygone era.

However, there’s a modern solution for those who still value heartfelt sentiments: e-cards. These digital greetings have evolved far beyond the basic GIFs of yesteryears. Now, they offer customization options, embeddable videos, digital gift cards, and even artificial intelligence to help craft the perfect message.

Matt Douglas, founder and CEO of Sincere, which owns online card maker Punchbowl, emphasizes the shift toward digital greetings. He notes that the events of 2020 propelled the adoption of digital cards as people sought safer alternatives to traditional paper cards.


Punchbowl is just one player in this growing industry. Giants like Hallmark and American Greetings have also embraced digital cards, each offering their own unique spin. Even NASA has joined in, offering customizable e-Valentines featuring space-themed designs.

Nonprofits like the World Wildlife Fund have also jumped on the e-card trend, using them as a way to attract new supporters. These digital greetings not only help raise funds but also spread awareness about important causes.

JibJab, known for its humorous content, has been focusing on e-cards since 2007. Its unique feature allows senders to embed their faces onto various images or videos, adding a personalized touch to their greetings.


Will Younger Generations Continue To Embrace Physical Greeting Cards?

Contrary to popular belief, many young people still appreciate the sentimentality of physical greeting cards, valuing their tangible nature over digital counterparts. This sentiment is echoed by Nora Weiser of the Greeting Card Association, highlighting a resurgence in the demand for physical cards among millennials.

“Greeting cards have a long tradition, and digital greetings just haven’t proven to hold the same value or meaning for consumers,” Weiser explained. “Millennials, in particular, see value in handcrafted, embellished, unique cards, and they are willing to pay a premium for cards that manage to precisely express their sentiments.”

Despite the rise of digital communication, Hallmark’s research also reveals a continued appreciation for traditional cards, with many consumers finding them more meaningful than other forms of communication. Specifically, “about 80% say they enjoy receiving cards and about the same percentage save the cards they get.”

As the industry navigates through economic challenges and changing consumer patterns, there lies a potential for innovation and adaptation. Carlton Cards’ vice president, Paul Werynski, emphasizes the importance of meeting evolving consumer needs. He explained, “Younger consumers have other life events — such as gender reveal parties — that they want to celebrate so we continue to innovate across all product lines to meet that demand.”

Meanwhile, Markus Giesler from York University has noticed a demand for physical items since the pandemic. He explained, “This pandemic with lockdowns, Zoom calls, virtual and remote workplaces that we’ve lived in, has made us crave these kinds of three-dimensional, material forms of consumption.”

In response to consumer demands for customization, companies like Hallmark have introduced innovative solutions, such as Hallmark Video Greetings and Hallmark’s hybrid service, where a customer can buy a card online and have it mailed to its recipient — both of which blend digital and physical elements to create a personalized experience for recipients. American Greetings also offers a subscription service that caters to the diverse needs of its customers.

Even in the digital era, traditional greeting cards can make a comeback, possibly driven by millennials and Gen Z. Screen fatigue and a desire for authenticity fuel this trend, with small businesses thriving in the industry. Representation matters too, with diverse voices shaping card content. Technology also plays a role, offering augmented reality and digital customization options.

In a time after social distancing and constant social media use, greeting cards offer a tangible connection. The question is whether younger generations will continue to embrace this revival — otherwise, it might just become a thing of the past.

Can the Greeting Card Industry Thrive? - RetailWire (2024)
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