International Perspectives

Around

The World

As the BBC’s Around the World in 80 Days series of Phileas Fogg’s adventures draws to a close, PG headed off in its balloon to check in with some of the leading greeting card distributors and publishers in various part of the globe to find out how trade has been in their corner of the world.

The United States: Vanessa Harnik, managing director of Notes & Queries

The year that was: “We found the US market for greeting cards to have been really strong in 2021 with retailers seemingly selling cards faster than before the pandemic hit.”

Challenges and positives: “Ah…so many challenges. The costs of everything - materials, labour, shipping - have gone through the roof.

There is a worldwide massive paper shortage which has profoundly impacted all companies and has affected supply. Shipping costs are triple or quadruple what they were before Covid. This has also meant that almost everything takes longer. It used to be that we could get inventory (generally) within 2-3 weeks. Nowadays, we average 4-6 weeks to get stock. In addition, finding additional staff has been extremely difficult. My father (Alan Harnik) and I were pulling and packing orders for six weeks in the Autumn. We were that desperate! Ha! On the positive side of things, the demand for greeting cards and related stationery products is great. The flip side of the supply and demand issue worldwide is that we have had new retailers contacting us for product, and new product categories last year, who we had never worked with before, and business with many existing retailers has increased because retailers have not been able to get inventory from other core suppliers. I also would like to think that our ability to fill many of these requests during in 2020 and 2021 has served us in good stead as retailers remember the vendors who supported them. Over 40% of our business comes from independent retailers who have bought our ranges for over 15 years. I have come to truly understand that my staff, our employees are N&Q's greatest asset. With that said, of course, we are nothing without superb design, notably from our UK publishing partners.”

Card buying habits: “I think there is an understanding (generally) that there are massive supply issues so Christmas sales (and reorders) came much earlier and much higher in 2021 than in 2020. This might partially be as a result of the experience of massive USPS delays in December 2020 with consumers not wanting to go through that again.

On the design front, we have seen consumers gravitate towards cards with more colour or brighter colours. It feels as though consumers are buying more greeting cards too.

Get well and sympathy cards continue to do really well while we have also seen a total uptick in new home cards and wedding cards (people are planning for weddings this spring!) and we continue to

Top: The BBC series Around the World in Eighty Days tracked the adventures. Above: A Bug Art design that featured in a missive Vanessa sent out to explain about the challenges faced of late, from supply chain issues to complexities of its moving premises. Left: Vanessa Harnik (centre front) with the rest of the N&Q team in their new premises.

see a huge increase in sales in blank and occasion cards.”

Hopes and dreams for 2022: “We sell really gorgeous stuff to really nice retailers, designed by some extraordinarily talented people. We sell a product that (generally) costs less than a cup of coffee! Aren't we lucky! So, my hope for 2022 is to continue to ‘push the envelope’ and develop deeper partnerships with our retailers and publishers.

In 2022 my father will be moving to a part-time position to focus back on product development and design review while I continue to take over as owner of N&Q. It will be an adjustment for all, especially as no one can think of N&Q without thinking of Alan Harnik!”

Above: Company founder, Alan Harnik in his new N&Q sweatshirt!

South Africa: Eddie and Bella Lyons, co-owners of Starline Distributors.

The year that was: “Covid obviously badly affected trade in 2020 and to a lesser extent, but was also quite a disruption in 2021 with the third wave that hit us in June/July/August. We are now in a fourth wave, but it has been far less in its severity and we are trading ‘normally’.

We had a good run up to Christmas and are happy with sales for the season but it’s hard to make up for the lost business in June and July where footfall in centres was way down and we had a spat of unrest resulting in looting, mainly in Natal, which also slowed business down.

The greeting card market in South Africa has shrunk a bit, mainly as a result of the demise of CNA (our equivalent of WHSmith). It went into business rescue (BR) in March 2020, was bought out, and is now back in BR again. It has closed around 100 stores and we expect the balance to close over the next few months.”

Challenges and positives: “The challenges have been the loss of business through store closures, periodic lockdowns that prevent normal trade and increased transport costs which have resulted in goods costing more to import.

The positives are that we have increased our business with retailers expanding to fill the void left by CNA and focusing on renewing our ranges more frequently as well as service, service, service!”

Card buying habits: “These have changed a bit in that the trend is now for more contemporary designs with a slowing down of the more traditional longer verse driven cards, although they are still valid.”

Hopes for 2022: “To have uninterrupted trade, no more lockdowns and an end to this damn COVID pandemic so we can all just work normally.”

Above: Eddie (far left) and Bella Lyons at Spring Fair 2020 with PG’s Warren Lomax.

The Netherlands: Dorothé and Ton Hollander, co-owners of Artige

The year that was: “In the last year, our market has embraced greeting cards even more than in 2020 – and we wouldn’t have thought that this was possible. We feel that Covid-19 has made everyone more aware of the importance of sending a greeting card. The greeting card is very much back in the picture (and here to stay!) in the Netherlands.”

Challenges and positives: “Our biggest challenges have been that we started and ended the year with a lockdown, during which almost all of our customers had to close their shops. Even though we are in crisis, the economy has grown here and we (like most other companies) have a shortage of staff. On the positive front, despite the lockdown, our revenue held up. Together with the whole team we’ve been super enthusiastic, have worked on new collections as well as trying to be the fastest in dispatching orders. In general it seems that people are looking after each other more, which naturally means that they send more greeting cards too. It feels good that we sell such a great product; a product that makes people smile!” Card buying habits: “We always try to stay on point with market changes. We were the first in the Netherlands to offer special Covid-greeting cards, a trend which many companies followed.” Hopes and dreams for 2022: “In April this year we celebrate our 25th anniversary: 25 years of smiles through the mailbox!”

Above right: Dorothé and Ton Hollander (second row centre) with members of the Artige team, which also includes their daughters Yanick, Myrthe and Sharon. Above: Artige’s 25th anniversary logo. Left: One of Artige’s stunning new Gold Rush designs.

Australia: Jenny Cummins, managing director of McMillan Cards & Paper

The year that was: “I have to admit that I approached 2021 with trepidation but it turned out to be a record year for McMillan. There are changes due to retail situations, but generally our market is buoyant and resilient, officially it is doing remarkably well. The changes relate to the sad disappearance of some chains, the closure of so many stores and our largely empty central business districts, due to most office staff working from home which is shifting business into the suburbs and regional towns.” Challenges and positives: “The challenges can be summed up in one word - ‘logistics’! On the positives, overcoming the freight issues and being able to supply; Left: Jenny Cummins during a recent working more closely with our retailers and helping them with ranges which will trip to London from Sydney. Above: This design from The Art File’s work well for them; appreciating the really lovely and even more exciting new ranges coming from our British Veryan range has chimed with the publishers who have all been amazing and great.” Australian card buyers.

Card buying habits: “The most obvious change has been the gradual acceptance of unwrapped cards in our market. There is also a noticeable decline of glitter and attachments, big changes (for the better) in board, all mindful of producing a more planet-friendly product. This goes with strong themes for botanics, green themes and animals and at the same time more complex design.

More buying is being done via our website so supplier images of product need to be upgraded to better show off the assets of their cards.”

Hopes and dreams for 2022: “I find myself again stressing about what this year will bring, the curves it will throw at us, can we do as well as we did in the remarkable past 12 months? I hope we will continue to cope with the logistical nightmare of bringing card stock in via sea freight as it becomes even more difficult to even find a vessel ex Tilbury? Thank heavens for the strong team who surrounds me and take up so much of the load.

I hope we can return to trade fairs, I have really missed the interaction with people and also the opportunities they bring.”

Malta: Suzanne Mizzi, owner of Paper World

The year that was: “2021 kicked off like any other ‘normal’ year. Sales in January are usually good since most stationers stock-up on everyday collections after the festive season. January 2021 was no different and sales were very encouraging. However in February we hit the first stumbling block. Sales relating to Valentine’s Day were at an all time low. I do not attribute this to just Covid as we have been registering less interest in this occasion for quite some time now. Sales from March were steady, but not strong as Covid restrictions were introduced again. This had an adverse effect on sales, especially on occasion collections as well as children and adult age cards.

As we approached summer, and Covid numbers receded, restrictions were eased on mass events and gathering. Weddings, communions, and confirmation started to be organised, business picked up and demand for occasion cards rose, giving us some respite.

However, when we assess the situation over the full year, 2021 was not a good year as we witnessed a heavy decline in greeting card sales. I fear we are experiencing a shift from physical greeting cards to more virtual greetings, thus resulting in a dwindling demand for our products. This shift compelled us to add gifts and novelty items to our offer to make up for the shortfall. I admit that I am not very happy with this situation as I am passionate about greeting cards!”

Hopes and dreams for 2022: “I wish I had a crystal ball as 2022 seems to be unpredictable. Malta is heading again into a state of semilockdown, moods are low, negatively affecting buying trends. However as difficult as the first quarter may be, I remain optimistic, as the scientific community are saying that this is the last phase of the pandemic and although we might have to live with Covid, things should bounce back quickly.”

Germany: Stefan Hermann, managing director of TaurusKunstkarten

The year that was:

“Overall we are very happy that we came through 2021 with a good result. The sales in the second part of the year were good although we missed some occasions.”

Challenges and

positives: “Organising staff, understanding the regulations at retail, handling material shortages and long delivery terms as well as organising imports from the UK in time have been challenging. As for the positives the power and creativity of most of the independent shops during the lockdown periods was inspiring.”

Hopes and dreams

for 2022: “Similar to how I felt at the start of last year, to keep my ear close to the market and enjoy selling lovely products.”

Above: Stefan Hermann busy taking at order at the recent Munich trade show. Left: As well as distributing Louise Mulgrew cards (printed with German text), Taurus-Kunstkarten also licences some designs for postcards, which are popular in Germany.

Italy: Furio Ceciliato, managing director of Origamo

Left: Furio and and his wife Erica with one of the new Florever cards.

The year that was: “During 2021 the greeting card market in Italy recovered all the ‘lost steps’ of 2020. People had the opportunity to arrange birthday parties, weddings, graduation parties so the number of greeting cards sold were back to 2019 levels, which was a very good result considering that there were still a lot of restrictions.” Challenges and positives: “The major challenges came from the production difficulties and shipping costs. Everything became more expensive and complicated. The positives are that people are eager to meet and party, with a general desire to return to ‘normal’ life. Plus, we launched our new range, Florever by Origamo, the sales of which have beaten every record for a greeting card range in Italy. It clocked up over a million euros of sales to shops in 45 days!" Card buying habits: “The market is moving up to more expensive cards, with handmade and more precious cards being the ones that are invariably chosen with cheap cards slowly going out of the market.”

Hopes and dreams for 2022: “At the end of 2021 I made a dream come true: I founded Origamo Ltd, my UK company. So, our plans for this year are to enter the UK as well as other European markets, extending the successful story of Origamo to new markets, with the same philosophy and attention to ethical production and our charity programmes.”

Ireland: Paul Slater, commercial director of Watermark Cards

The year that was: “It has been a strange year in Ireland as the retail sector (nonessential) was effectively closed from Jan 2021 until mid-May 2021. Brexit also had an impact on supply chain as it became more costly and time consuming to bring product in from the UK. Despite these issues the greeting card market has stayed resilient, and demand remains strong for our products.

During the period of the lockdown the primary place to buy cards was in multiple/essential retailers and it is hoped that the independent retailer can claim back this business as we move back to normality. Our initial feedback is that Christmas 2021 was positive, and most retailers seemed to trade well and meet or exceed expectations.

Geographically city centres have suffered more with the work from home initiatives along with the lack of tourists and general pedestrian traffic. Rural towns on the other hand benefitted from this and local retailers in general performed well.

Overall everyday business is probably down 15-20% as the lack of gatherings for milestone birthdays, children’s parties, christenings/communions, confirmations and weddings along with poor Valentine’s and Spring Seasons sales subdued demand.”

Challenges and

positives: “Brexit caused significant disruption and challenges at the beginning of the year, and it became almost impossible to get product out of the UK. The cost of moving pallets and parcels increased significantly and we also had to deal with customs clearance costs and increased administration in importing product. Many shipments were delayed for prolonged periods as they were held up in customs because of incorrect paperwork.

The supply issues out of China caused delays for many of our publishers and obviously had a knock-on effect on us while the increased cost of shipments has meant some price inflation and going forward this is going to become a bigger issue for us.

In a strange sense Brexit was also a positive for us as local retailers who in the past would have bought direct from the UK now sought to source locally as the transaction costs and turnaround times were significantly reduced by dealing with

Left: Watermark’s co-owners Paul Slater and Brian Murtagh. Below: Watermark’s Dublin showroom. The company’s expansion into brokerage in Ireland has been successful.

Watermark Cards. In addition to this we also now supply several other European countries who now seek to source product from EU sources. Our hope is that this period of the pandemic will have further engrained the culture of sending and receiving cards. In 2021 brokerage became a bigger part of business and we currently represent over 15 different publishers in the Irish market. Given the challenges of supply chain arising out of Brexit and the fact that we have our warehouse and distribution facilities in Dublin this has been a significant advantage to us and our retail partners in ensuring a consistent supply of product.”

Card buying habits: “Over the course of the past couple of years we have seen greater demand for blank cards as social distancing and restrictions meant that people could not meet in person, and this was a nice way for friends to stay in contact.

Over the past year we also experienced a big demand for Sympathy cards as people could not attend funerals and this was a good way for people to sympathise.

Hopes and dreams for 2022: “For there to be an end of Covid and a more efficient, reliable and cost-effective supply chain.”