REPORT OF THE GREETING CARD MARKET IN THE UNITED STATES OF AMERICA IN 2002
Source: Marianne McDermott,
The Greeting Card Association,
1156 15th Street NW, suite 900, Washington, DC, 20005;
after a conversation with Jeff Weiss of American Greetings.
February, 2003
State of the Industry
The greeting card industry continues to be impacted by the overall recession with productivity affected to some extent and some softness totally in relation to potential.
Some major retailers
in turmoil and a lackluster year for retailers
in general in 2002.
In terms of where retail
in general is growing, there is continued growth
withWal Mart and Dollar Stores.
Across the board, Christmas was generally soft, although Christmas boxed and counter cards fared well totally there were mixed results.
During the 2002 calendar year, greeting card sales were generally flat to slightly up.
This past year saw a maturing of internet trafficking and much less of an impact of electronic greetings on paper cards actually small if any.
Looking to 2003, the questions are still 1) the possibility of war; 2) the economy; and 3) retail trends. None of these are necessarily bad for greeting cards as people need to find ways to connect in troubled times. Even the economic problems offer some potential benefits as cards substitute for gifts. All in all, these may be positive times for card sales.
Postal Activity
This past year and the year in progress have been the most active in terms of postal affairs than any in recent memory. GCA held two days of strategic planning and may be facing postal activity that could cost the association upwards of $1million over the next two years.
Presidential Commission: President Bush has appointed a Commission to study postal reform from the ground up with a report to be due at the end of July. GCA is preparing comments and testimony on behalf of the citizen mailer of greeting cards and is up against a formidable group of business mailers in terms of interests represented.
Pension Benefits Overstated: Although there are differing figures, it appears that the U.S. Postal Service has vastly overfunded future pension benefits for postal workers. All mailer groups are lobbying Congress to change the funding formula which would turn back a considerable amount to the USPS coffers and thus avoid another rate case for two to four years.
Potential Rate Case: If the Congress doesn't act favorably in the above situation, there might well be a new rate case filed this year. The case would probably include provision for phased rates (annual fixed rate increases) to satisfy business mailers. Phased rates would be very bad for the citizen mailer of greeting cards so GCA is arguing against them in early discussions with the USPS.
Transformation Plan
of PMG: The
Postmaster General last year put out his plan for the future
and it has some very serious ramifications for the citizen mailer
as the USPS plans to become more like a business. The Commission
will be looking at the plan in their deliberations. GCA is reminding
all concerned of the public service nature of the Postal Service
and will be strongly supporting the retaining of universal service.
actualities
New charts with information
of the greeting card market
in Germany in 2008.
A study of GFK ordered by AVG,
Feb. 2009
Foreign Greeting
Card Markets:
United
Kingdom 2002
Canada 2002
USA 2002
USA
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