Monday, May. 13, 1985
Greetings, One and All!
By Charles P. Alexander
Just in case anyone forgot, the greeting-card industry is busy reminding people that Sunday is Mother's Day. Of course everyone will want to pick up cards for Mom, Wife and Grandma. But what about sisters and favorite aunts? Sure. There are Mother's Day cards for them too, and a host of greetings for a mother-in-law. How about someone expecting a baby in July? No problem. Any number of companies make Mother's Day cards for mothers-to-be. And why should Pop feel left out and have to wait until June for his special day? Hallmark puts out a card that says "You're a terrific parent, too, Dad!" Why in fact should Mother's Day be restricted to parents? It is not. A card by Recycled Paper Products of Chicago has this touching message: "Although you're not my mother, your little motherlies mean a lot to me. Happy Motherish Day."
No business is better than greeting cards at finding imaginative ways to package and promote an old product. The leading companies, Hallmark of Kansas City and American Greetings of Cleveland, have roots that go back almost to the turn of the century, but they strive to be as innovative as fledgling Silicon Valley computer firms. The cardmakers are experimenting with different styles, coming up with novel reasons for people to buy their wares and using new technology that enables cards to play tunes or talk. Hallmark offers 1,200 varieties of cards for Mother's Day, the year's fourth-biggest card day (after Christmas, Valentine's Day and Easter), while American Greetings boasts of 1,300. The products range from a traditional card with a picture of flowers and syrupy poetry for $1 or less to a $7 electronic version that plays the tune of You Are the Sunshine of My Life.
Hallmark holds about 42% of the $3.2 billion-a-year greeting-card business, followed by American Greetings' 30%. The two leaders are now being challenged by Cincinnati-based Gibson Greetings, which has captured an estimated 10% share, up from 5% in 1978. Gibson scored a coup in February by striking a deal with Walt Disney Productions for the rights to use Mickey Mouse and his friends, who had previously been featured on Hallmark cards. Gibson has also signed up Garfield the Cat and the Sesame Street characters, but Hallmark's line of Peanuts cards is still one of the industry's most successful. American Greetings got a boost last year by reaching an agreement with Sears to be the exclusive card seller in all its department stores. That more than matched a similar arrangement that Hallmark has with J.C. Penney.
As the top three cardmakers battle among themselves, they also keep an eye on about 300 smaller manufacturers, which are often daring and inventive. Says Hallmark Chairman Donald Hall: "Industries that aren't competitive get stagnant after a while. Ours is very competitive, and the fever of creativity is at a high point."
One sign of the industry's brainstorming is the burgeoning number of occasions for which greetings are available. Card buyers can now congratulate a friend on getting a driver's license, buying a new car or completing a successful diet. Customers can use cards to announce a divorce, propose a tryst or console a pal whose pet dog has died. Carrying that marketing strategy to an extreme, California Dreamers, a Chicago company, has put out an all-purpose Generic Greeting Card. The message: "Whatever."
The card manufacturers have been alert to changes in the American family. Says Richard Connor, executive vice president of American Greetings: "The divorce rate has brought about new families, single fathers and working mothers. These new relationships open up new avenues for card sending." One of Hallmark's Mother's Day cards shows Mom at her office. Both American Greetings and Hallmark have cards with messages to "Mom and Her Husband" or "Dad and His Wife."
Paper Moon Graphics, a small, fast-growing Los Angeles firm, has won over customers with a combination of quirky humor and striking visual images. One of its cards shows a bride perched on the shoulders of her groom, who is standing precariously on a high wire. Inside, it says, "So Far . . . So Good. Happy Anniversary!" Maine Line of Rockport, Me., has found a profitable niche by specializing in cards that appeal to women. A sample message: "A woman in the White House would feel right at home . . . She already knows how to clean up the mess men have made." Maine Line even has a few cards that could be used by homosexuals. One says, "Hip hip hooray, I'm glad you're gay."
The industry leaders have responded to the competition by introducing their own yuppie-style cards. Hallmark has a new line called Modern Woman, with messages that often might seem risque for the venerable 75-year-old firm. Example: "You're such a totally together man. You're sensitive, kind, understanding and a good listener . . . Nice buns, too! Happy Birthday."
One of the newest frontiers in the industry is talking cards. The voice comes from a minute speaker connected to a microchip, where the message is stored. One card by American Greetings has the words "Open this birthday card fast" printed on the outside. When the card is opened, a relieved voice says, "Thanks, it was really getting stuffy in here. Happy Birthday!" Priced as high as $10, the electronic cards are still a novelty item. But since the cost of microchips is coming down, the industry hopes that tuneful and talking cards may eventually become a mainstay of Mother's Day, and every other conceivable occasion.
With reporting by Lee Griggs/Kansas City