Podcast Summary
Louis Awards honor the best greeting cards each year: The greeting card industry, worth $7 billion, is revitalized by millennials and remains diverse with large corporations and smaller publishers.
The greeting card industry, worth $7 billion, holds annual awards called the Louis Awards, where a panel of judges selects the year's best cards in various categories. With over 1,000 entrants competing, the millennial generation, now the largest buyers, have revitalized the industry. Greeting cards come in various forms, with Hallmark Cards and American Greetings controlling 80% of the market. Companies like Up With Paper, a mid-sized specialty greeting card firm, make up the rest. Cards are categorized into everyday and seasonal, with birthday, sympathy, and holiday cards being the most popular. Christmas is the biggest seasonal category. Despite the dominance of large corporations, the industry remains diverse with numerous smaller publishers.
Greeting card sales peak during Christmas, followed by Mother's Day, Easter, and Father's Day: Millennials, born between 1981 and 1996, spend more on premium cards than previous generations, driving the market shift towards high-quality and personalized items.
The greeting card industry undergoes significant fluctuations in sales throughout the year, with Christmas being the peak season, followed by Mother's Day, Easter, and Father's Day in descending order. Women, particularly those aged between 40 and 65, known as "kinkeepers," make up the majority of buyers. However, the buying habits of generations have changed. Baby boomers were avid card buyers but did not pass on this tradition to Generation X. Instead, it's the millennials, born between 1981 and 1996, who have revitalized the industry with their preference for unique and more expensive cards. Despite buying fewer cards overall, millennials now spend more money on them than their elders, contributing to the market shift towards premium cards. This change is a reflection of the evolving shopping habits, where consumers prioritize personalized and high-quality items.
Millennials Prefer Personal and Artisanal Greeting Cards: Millennials seek unique, personalized and artisanal greeting cards from diverse stores. Companies adapt to changing trends and consumer preferences to stay relevant.
The greeting card industry is evolving to cater to the unique preferences of millennials. Unlike baby boomers who traditionally bought cards from large retailers, millennials value personal and artisanal cards that reflect their relationships with friends. This shift in consumer behavior has led to an increase in the number of diverse stores selling greeting cards. Smaller card brands often set up shop in unexpected places, such as jewelry stores, dress shops, and car washes. Millennials seek cards that are not only visually appealing but also have meaningful and trendy sentiments. Companies like Up With Paper start the greeting card design process by identifying trends among younger demographics and matching them with appropriate sentiments. The industry's ability to adapt to changing consumer preferences is crucial for staying relevant and successful.
Using Data and Insights to Create Greeting Cards: Larger greeting card companies like Hallmark use data analysis, focus groups, and dedicated teams to create cards tailored to specific niches, balancing universally appealing themes with data-driven insights.
While small and mid-sized greeting card companies often rely on intuition and hope for the success of their new designs, larger companies like Hallmark use a more scientific approach. Hallmark's process involves the use of focus groups, psychographics, and dedicated teams of writers and editors to create cards tailored to specific niches. The company also heavily relies on data analysis to inform their writing and design decisions. For instance, they constantly monitor sales data and have employees dedicated to analyzing inventory. This data is then used to guide the writing team in creating proposals for new cards. The success of certain categories, such as cards for dogs versus cats, is also taken into consideration during these meetings. Hallmark's approach to creating greeting cards is a balance between universally appealing themes and specific, data-driven insights.
Balancing emotional relevance and broad appeal for millennials: To create cards that resonate with millennials, strike a balance between emotional relevance and broad appeal, avoid outdated Internet humor, and adapt quickly to changing trends.
When creating cards for intimate moments or appealing to millennials, it's crucial to strike a balance between emotional relevance and broad appeal. Traditional motifs may turn off younger generations, who prefer self-deprecating, honest, and edgy designs. However, being too trendy or relying on outdated Internet humor can also miss the mark. The greeting card industry faces stiff competition from social media, text messages, e-cards, and independent card artists. To stay relevant, companies must adapt quickly to changing trends while avoiding dated references. Ultimately, creating cards that resonate with millennials requires a deep understanding of their values and sensibilities.
Understanding generational differences in greeting card preferences: Recognize diverse demographics' preferences and affordability plays a crucial role in greeting card sales. Despite small profit margins, the emotional connection made through sending a card makes it a worthwhile investment.
Generational differences can impact the appeal of marketing materials, even in traditional industries like greeting cards. George White, a professional in the greeting card industry, shared an example of a possum-themed card that he initially found unappealing but ended up being a best-seller among younger colleagues and consumers. This anecdote highlights the importance of understanding diverse demographics and their preferences. Additionally, the greeting card industry plays a significant role in the mail delivery system, with nearly 60% of cards being sent via mail. Affordability is a crucial factor in consumers' purchasing decisions, and the Greeting Card Association has advocated for initiatives like the forever stamp to keep mailing costs consistent. Despite the small profit margins for companies, sending a card can create a powerful emotional connection between the sender and the recipient. Mia Mercado, another perspective in the conversation, emphasizes the importance of recognizing the value of greeting cards as a means of expressing thoughts and feelings, even if they come with a small monetary cost. The sentiment behind a card can make a significant impact on the recipient, making it a worthwhile investment.
The emotional appeal of greeting cards: Despite the economics and science behind greeting cards, it's often the personal touch and emotions they evoke that truly resonate with people.
While there may be some economics and science behind the creation and appeal of greeting cards, ultimately, people connect with them on an emotional level. As Zachary Crockett, an ex-employee of Hallmark, shared, once he stepped out of the card-making industry, he realized that he didn't think about greeting cards much. While there are limits to how far science can explain the appeal of a card, it's often the personal touch and emotions evoked by a card that truly resonate with people. So, in the end, greeting cards remain a simple yet meaningful way to express feelings and connect with others. The Freakonomics Radio Network podcast explores the hidden side of this and many other everyday phenomena.
