Market Report th Edition May 2015 ISBN Greetings Cards

Transcription

1 Market Report th Edition May 2015 ISBN Greetings Cards

2 Foreword In today s competitive business environment, knowledge and understanding of your marketplace is essential. With over 30 years experience producing highly respected off-the-shelf publications, Key Note has built a reputation as the number one source of UK market information. Below are just a few of the comments our business partners and clients have made on Key Note s range of reports. The test of any marketing strategy and plan lies in the quality of information used, upon which marketing judgments and decisions are based. Quality is the key word here. The Key Note reports are an excellent source of such quality information, covering a wide variety of product sectors. The Chartered Institute of Marketing I regard Key Note as the number one provider of UK market research. The way Key Note content is packaged and presented is appealing and easy to understand and therefore a must for my taught course students. Its products are complemented by remarkably high levels of customer service. University of Cambridge, Judge Business School Key Note is one of the most dynamic and intuitive products the department subscribes to. It has also remained one of the most-used services for a number of years. The combination of market reports, linked to real company data, within one product, is particularly useful. The constant investment and desire to improve the service sets it aside from a number of other organisations and I look forward to working with them for many years to come. Jack Mears, Knowledge and Information Partner, Department for Business, Innovation and Skills Key Note is the Swiss Army knife of report platforms, incorporating both consumer and B2B research (not to mention Companies House data). It therefore has a comprehensive line-up of titles, all of which are frequently updated. I like the fact that the analysis within the reports is based on hard data, through a combination of in-house and external sources. As a result, using Key Note is a great way to keep up-to-speed on a variety of markets, sectors, products and brands and it s a great tool to have on hand for new business and strategy development. Jim Clark, Head of Insight, IPA

3 Introduction & Definition 1 REPORT COVERAGE...1 MARKET SECTORS...1 Birthday Cards...1 Other Everyday Cards...2 Christmas and New Year Cards...2 Spring Season Cards Executive Summary 3 2. What s KEY in the Market? 4 KEY DRIVERS...4 MARKET TRENDS...4 Postage Price Increase...4 Digital Age...4 Traditional Christmas Greeting Card Still Popular...5 ECONOMIC TRENDS...5 Table 2.1: UK Economic Trends (000, m, %, million and ), MARKET POSITION...7 Table 2.2: UK Household Expenditure on Newspapers, Books and Stationery by Sector by Value at Current Prices ( m), Figure 2.1: UK Household Expenditure on Newspapers, Books and Stationery by Sector by Value Share (%), HOW ROBUST IS THE MARKET? Market Size, Segmentation & Forecasts 10 MARKET SIZE & SEGMENTATION...10 The Total Market...10 Table 3.1: The Total UK Market for Greetings Cards by Sector by Value at Current Prices ( m at rsp),

4 Figure 3.1: The Total UK Market for Greetings Cards by Sector by Value at Current Prices ( m at rsp), BY MARKET SECTOR...11 Birthday Cards...11 Table 3.2: The Total UK Market for Birthday Cards by Value at Current Prices ( m at rsp), Figure 3.2: The Total UK Market for Birthday Cards by Value at Current Prices ( m at rsp), Other Everyday Cards...12 Table 3.3: The Total UK Market for Other Everyday Cards by Value at Current Prices ( m at rsp), Figure 3.3: The Total UK Market for Other Everyday Cards by Value at Current Prices ( m at rsp), Christmas and New Year Cards...13 Table 3.4: The Total UK Market for Christmas and New Year Cards by Value at Current Prices ( m at rsp), Figure 3.4: The Total UK Market for Christmas and New Year Cards by Value at Current Prices ( m at rsp), Spring Season Cards...15 Table 3.5: The Total UK Market for Spring Season Cards by Value at Current Prices ( m at rsp), Figure 3.5: The Total UK Market for Spring Season Cards by Value at Current Prices ( m at rsp), FORECASTS...16 Future Trends...16 Demographic Trends...16 Creative Greetings Cards Designs...16 Future Economic Trends...16 Table 3.6: Economic Forecasts (000, % and million), Forecast Total Market...17 Table 3.7: The Forecast Total UK Market for Greetings Cards by Sector by Value at Current Prices ( m at rsp), Figure 3.6: The Forecast Total UK Market for Greetings Cards by Sector by Value at Current Prices ( m at rsp), MARKET GROWTH...19 Figure 3.7: Growth in the Total UK Market for Greetings Cards by Value at Current Prices ( m at rsp),

5 4. International Perspective 20 THE GLOBAL MARKET...20 OVERSEAS TRADE...20 General Overview...20 Table 4.1: The UK Trade Balance of Greetings Cards and Illustrated Postcards ( m), Figure 4.1: The UK Trade Balance of Greetings Cards and Illustrated Postcards ( m), Table 4.2: UK Exports and Imports of Greetings Cards and Illustrated Postcards by Region ( ), EU Trade...22 Table 4.3: UK Exports and Imports of Greetings Cards and Illustrated Postcards To and From Selected EU Countries by Value ( ), Non-EU Trade...23 Table 4.4: UK Exports and Imports of Greetings Cards and Illustrated Postcards To and From Selected Non-EU Countries by Value ( ), Competitor Analysis 25 MARKET LEADERS...25 Table 5.1: Top Ten Greetings Cards Companies in the UK by Turnover ( 000), Latest Financial Year...25 Figure 5.1: Top Ten Greetings Cards Companies in the UK by Turnover ( 000), Latest Financial Year...26 Sportswift Ltd...26 Table 5.2 Financial Results for Sportswift Ltd ( 000), Years Ending 31st January International Greetings PLC...27 Table 5.3 Financial Results for International Greetings PLC ( 000), Years Ending 31st March Hallmark Cards (Holdings) Ltd...28 Table 5.4: Financial Results for Hallmark Cards (Holdings) Ltd ( 000), Years Ending 31st December UK Greetings Ltd...29 Table 5.5: Financial Results for UK Greetings Ltd ( 000), Years Ending February Paperchase Products Ltd...30 Table 5.6: Financial Results for Paperchase Products Ltd ( 000), Years Ending January and February Moonpig.com Ltd...31 Table 5.7: Financial Results for Moonpig.com Ltd ( 000), Years Ending 30th April

6 Carte Blanche Greetings Ltd...32 Table 5.8: Financial Results for Carte Blanche Greetings Ltd ( 000), Years Ending 31st December The Great British Card Company PLC...33 Table 5.9: Financial Results for the Great British Card Company PLC ( 000), Years Ending 30th June Danilo Promotions Ltd...34 Table 5.10: Financial Results for Danilo Promotions Ltd ( 000), Years Ending 31st March Simon Elvin Ltd...35 Table 5.11: Financial Results for Simon Elvin Ltd ( 000), Years Ending 31st December NUMBER OF COMPANIES...36 By Turnover...36 Table 5.12: Number of UK VAT- and/or PAYE-Based Enterprises Engaged in Other Publishing Activities by Turnover Sizeband ( 000, number and %), Figure 5.2: UK VAT- and/or PAYE-Based Enterprises Engaged in Other Publishing Activities by Turnover Sizeband (%), By Employment...38 Table 5.13: Number of UK VAT- and/or PAYE-Based Enterprises Engaged in Other Publishing Activities by Employment Sizeband (number and %), Figure 5.3: UK VAT- and/or PAYE-Based Enterprises Engaged in Other Publishing Activities by Employment Sizeband (%), Regional Variation in the Marketplace...39 Table 5.14: Number of UK VAT- and/or PAYE-Based Enterprises Engaged in Other Publishing Activities by Region (number and %), Figure 5.4: Distribution of UK VAT- and/or PAYE-Based Enterprises Engaged in Other Publishing Activities (%), MARKETING ACTIVITY...41 Table 5.15: Main Media Advertising Expenditure on Stationery and Greeting Cards ( 000), Year Ending 31st December KEY TRADE ASSOCIATIONS...41 EXHIBITIONS/TRADE SHOWS...42

7 6. Buying Behaviour 43 HOUSEHOLD EXPENDITURE...43 By Gross Income Decile Group...43 Table 6.1: Average Weekly Household Expenditure on Diaries, Address Books and Cards, etc., by Gross Income Decile Group ( ), By Age...44 Table 6.2: Average Weekly Household Expenditure on Diaries, Address Books and Cards, etc., by Age ( ), CUSTOMER PENETRATION...44 Traditional Greetings Cards...44 Variations by Sex...45 Table 6.3: Penetration of Greetings Cards in the Last 12 Months by Sex (% of respondents), March Variations by Age...46 Table 6.4: Penetration of Greetings Cards in the Last 12 Months by Age (% of respondents), March Variations by Social Grade...48 Table 6.5: Penetration of Greetings Cards in the Last 12 Months by Social Grade (% of respondents), March Variations by Geographic Region...49 Table 6.6: Penetration of Greetings Cards in the Last 12 Months by Geographic Region (% of respondents), March Electronic and Text Greetings...52 Variations by Sex...52 Table 6.7: Penetration of Electronic and Text Greetings in the Last 12 Months by Sex (% of respondents), March Variations by Age...53 Table 6.8: Penetration of Electronic and Text Greetings in the Last 12 Months by Age (% of respondents), March Variations by Social Grade...54 Table 6.9: Penetration of Electronic and Text Greetings in the Last 12 Months by Social Grade (% of respondents), March Variation by Geographic Region...55 Table 6.10: Penetration of Electronic and Text Greetings in the Last 12 Months by Geographic Region (% of respondents), March

8 7. Strengths, Weaknesses, Opportunities & Threats 57 STRENGTHS...57 WEAKNESSES...57 OPPORTUNITIES...58 THREATS PESTEL 59 POLITICAL...59 ECONOMIC...59 SOCIAL...60 TECHNOLOGICAL...60 ENVIRONMENTAL...60 Global Deforestation...60 LEGISLATIVE...61 Copyright, Designs and Patents Act WEEE Directive and RoHS Directive...61 Green Claims Code Further Sources 62 Associations...62 General Sources...62 Government Publications...62 Other Sources...63 Understanding Consumer Survey Data 64 Number, Profile, Penetration...64 Social Grade...65 Standard Region...65 Key Note Research 66 The Key Note Range of Reports 67

9 Introduction & Definition Introduction & Definition REPORT COVERAGE This Key Note Market Report analyses the UK market for greetings cards in terms of its presence in the publishing, manufacturing, distribution and retailing sectors. The act of sending and receiving greetings cards is a long-standing cultural tradition in the UK; as a key aspect of the heritage of the country, the tradition is intrinsically British, with the honour of reaching your 100th birthday commemorated with a greetings card sent from the Queen. As a result of this culture, the UK leads the rest of the globe in terms of greetings cards design, publication and per capita consumption. This tradition has continued throughout cultural advancements, with design and art becoming incorporated in many different ways; products are becoming more diverse and the marketplace is now increasingly fragmented. In this report, greetings cards are defined as products generally manufactured from paper which are used for portraying a personal greeting or message between a sender and a recipient. Usually, this involves a greeting for a specific event or celebration, yet it can also include blank greetings cards for any occasion that the consumer deems fit. The scope of this report does not cover postcards, invitation cards or similar stationery goods, yet sometimes these are included in data as the most representative means of assessing the greetings cards industry s market presence. MARKET SECTORS For the purposes of this report, the greetings cards market will be split into the following categories: birthday cards other everyday cards Christmas and New Year Cards spring season cards. Birthday Cards In the UK, as well as globally, the birthday cards sector accounts for the largest proportion of market share of the greetings cards industry. While other sectors are seasonal or sometimes niche in terms of the proportion of people who celebrate the related events (such as religious or cultural occasions), birthdays are common to every member of the population and take place throughout the year. 1

10 Introduction & Definition Other Everyday Cards Other everyday cards tend to include cards that are purchased all year round, excluding birthday cards. This sector consists of a variety of events, including rare celebrations such as graduation cards and engagement cards, as well as more generic cards such as thank you, congratulations and blank cards. Religious and ethnic celebrations are also included in this category, such as Confirmation cards and cards celebrating Eid; once only available in religious retailers, these types of cards are now much more widely available in mainstream card retail stores. Furthermore, many of these celebrations are not traditionally commemorated with a card, with this being a relatively new, niche segment. In this sense, the everyday cards sector is expanding further within the UK greetings cards market and introducing cards to celebrate a wider range of events, including the likes of divorce cards and Halloween cards. Christmas and New Year Cards Christmas cards are the most popular seasonal cards, with a substantial volume of cards sold each year largely through box sets. The single-card market has been in decline in recent years, as the lower-cost alternative of box sets is more appealing to UK consumers, especially in times of economic difficulty. New Year cards are less widespread than Christmas cards due to Christmas being the main gift sending and receiving occasion during the winter season; often New Year greetings are combined with Christmas greetings in one card. Spring Season Cards Spring season cards are only sold in the build up to their relevant seasonal events and will involve large advertising and gift ranges running alongside the greetings cards tailored to these events. The main spring season cards category is Mother s Day, cards for which have generated increased revenue in recent years; the sector also includes the increasingly popular Easter card category, Valentine s Day cards and Father s Day cards. 2

11 Executive Summary 1. Executive Summary This Key Note Market Report examines the greetings cards market in the UK. The act of sending and receiving greetings cards is a long-standing British cultural tradition and more cards are being bought per person than in any other nation in the world. Despite the recent economic downturn, the UK greetings cards market enjoyed consistent year-on-year growth between 2010 and 2014, growing by an estimated 8.7% in value terms. The rate of growth has slowed, however, impacted by reduced household disposable income; the rise of the Internet and budget retailers such as Card Factory and Moonpig; and growing numbers of consumers buying greetings cards at supermarkets instead of specialist card shops. Sales of birthday cards accounted for the largest share of the total greeting card sales, making up 40.3% of the total market s value in The second-largest sector is other everyday cards, which include wedding and engagement, anniversary, new baby, thank you, get well and congratulations cards, accounting for 28% of the total greetings cards market. Christmas/New Year cards and spring season cards account for 18.9% and 12.8% of the total market, respectively. With the exception of Christmas/New Year cards, all sectors of the greetings cards market witnessed positive growth over the 5-year period. In March 2015, Key Note commissioned a survey to investigate consumers purchasing habits for greetings cards in the UK. Survey results reveal that, unsurprisingly, birthday cards were the most popular type of greetings card purchased and/or sent by UK consumers, with 88.2% of respondents said to have purchased or sent this type of card within the 12 months to March Christmas cards were the second-most popular type, with 83.6% of consumers buying or sending this type of card. Other cards with high volumes of purchase are those for Mother s Day, Father s Day, anniversaries and those that are age specific. Due to the maturity and competitiveness of the UK greetings cards industry, Key Note projects that the market is unlikely to expand significantly over coming years. However, the UK s growing population over the next few years due to longevity, an increasing birth rate and immigration will help to drive future sales growth. As such, Key Note forecasts that the UK greetings cards market will grow at an annual rate of around 2% over the next 5 years. 3