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Holiday cards' future isn't merry or bright

With the rise of social networking, smart phones and iPads, young people aren't giving their stamp of approval to the tradition of sending greetings by postal mail. Card sales are expected to drop in 2010 for the second year in a row.

December 09, 2010|By Sandra M. Jones

If it seems like you're getting fewer holiday cards this year, don't worry. Chances are it has nothing to do with your popularity.

The practice of sending Christmas cards is fading, collateral damage of the digital age.

After experiencing slowing growth since 2005, Christmas card sales declined in 2009. While the drop was slight, 0.4%, according to research firm Mintel International Group, evidence is building that the next generation of correspondents is unlikely to carry on the tradition with the same devotion as their parents.

The rise of social networking, smart phones and Apple iPads is changing the way friends and family stay in touch, diminishing the Christmas card's long-standing role as the annual social bulletin.

"People are up to date all the time on Facebook," said Kit Yarrow, a professor at Golden Gate University in San Francisco who studies the 20- and 30-somethings of the Generation Y culture. "Gen Y-ers are notorious for not sending thank-you notes and not RSVPing. I just think that method of communication is foreign to them. And that doesn't bode well for the future of holiday cards."

Americans sent more than 1.8 billion Christmas cards through the mail last year, according to greeting card industry statistics. That figure is expected to drop to 1.5 billion this holiday season. Facebook, for its part, passed the 500 million member milestone in July.

Erika Maschmeyer, 30, won't be sending holiday cards. She has mailed holiday cards only once in her life, in her early 20s, when she had time on her hands.

"There are so many other ways to keep in touch," Maschmeyer said. "I stay in touch with e-mail and Facebook. It's an easy way to quickly see what people are doing."

While Christmas remains the holiday that sparks the most greeting card sales, fewer people send cards each year, according to Unity Marketing. The percentage of consumers buying greeting cards for Christmas fell from 77% in 2005 to 73% in 2007 and to 62% in 2009, according to the Stevens, Pa., market research firm's 2010 report on greeting cards and stationery.

The outlook is particularly weak for teenagers and college students, who are accustomed to communicating in ways that are more immediate, more efficient and more cost-effective, said Pamela Danziger, president of Unity Marketing.

"Compared to these instant forms of communication, addressing a preprinted card and sending it via snail mail seems like an antiquated waste of time," Danziger said.

A British businessman is credited with creating the Christmas card in 1843 — as a way to save time. Too busy to write a personal holiday greeting, Henry Cole hired a well-known London artist to design a card he could send to all his acquaintances, according to a version of the story recounted by greeting card maker Hallmark Cards Inc. Louis Prang, a German immigrant, is said to have brought the Christmas card tradition to America in 1875, printing a card depicting Killarney roses and the words Merry Christmas.

The recent decline doesn't mean Christmas cards can't make a comeback.

While no data are yet available, Danziger has gathered anecdotal evidence in recent weeks that suggest consumers are feeling the need to connect outside the electronic world, for Christmas in particular.

"I don't know if it's going to pick up traction, but there may very well be people who have given up Christmas cards and who are returning," Danziger said. "I think it's just a backlash to the virtual world. You may have 600 friends on Facebook, but really only 30 of them mean anything to you."

American Greetings Corp. and Hallmark Cards — the two biggest greeting card publishers in the U.S., accounting for more than half of the market — are doing their best to grab consumers' attention with high-tech cards that light up, record music and connect to the Web.

"We see social networking as a tremendous opportunity," said Steve Laserson, vice president of greeting cards at American Greetings. "The more people stay connected, the more likely they are to also correspond with a paper card."

American Greetings introduced a sing-a-long Christmas card this year — a traditional greeting card with a recording chip that allows the sender to sing along with background music for "Jingle Bells" and other carols. The company also sells a digital slide show card with a small LCD screen that displays up to 50 photos. The card comes with a USB port so recipients can transfer the images to their computers.

Meanwhile, Internet-based photo publisher Shutterfly Inc. introduced a feature this year that allows customers to share a sneak peek of their card design on their blog, website or Facebook page.

Greeting cards have faced competition from the telephone to the fax and the Internet. Online or e-cards represent less than 1% of the estimated $11-billion annual greeting card market, according to Mintel.

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