Ohh Deer, House Of Cards, Simon Elvin and Cinnamon Aitch reveal their thoughts
PG Buzz asks members of the greeting card community to what extent they believe the cost-of-living crisis will impact on the sector.
Will it be better placed than other product areas due to its relative low cost and personal, caring nature, and what should the Government do to help?
Here publishers Ohh Deer, Simon Elvin and Cinnamon Aitch, and retailer House Of Cards give their thoughts along with revelations of some personal pick-me-ups.
Mark Callaby, managing director of Ohh Deer
“The greeting card industry constantly proves its resilience and I think this crisis will be no different in the sense that people will continue to give cards – though, maybe, we’ll see a few more homemade versions and some lower-budget cards will do well.
“From a publisher perspective, I think we’re all starting to feel the pinch with prices going up and it’s becoming increasingly more difficult for everyone just to absorb the costs so, unfortunately, I think prices will continue to rise slightly.”
Do you foresee consumer price sensitivity on cards: “I think cards are still seen as a low-cost, but highly sentimental way of letting someone know you’re thinking of them so, ultimately, I think the UK will continue to produce the best cards in the world and provide the end customer with plenty of choice for the right card.”
What mitigating measures have you taken in your business: “We’ve been tightening our belts over the last few months. I’ve let a few people go through our entire costs over the last year, this includes software, printers, cleaners etc to see where we can spend a little less. We also made sure we could help our team with their increased costs.”
Government magic wand wish: “It needs to be a big wand! What I find frustrating is how many companies are reporting record profits and they seem to be the areas that are really driving up the cost of living – utilities and couriers for example. I’d like to see some regulations here. Our import and export costs have jumped up significantly and this was well before the fuel cost increases due to the Ukraine war.”
What’s your personal pick-me-up: “I have a few, but I got really into cycling over lockdown and, now the weather has got better, I’ve started going out again. The power of exercise with some tunes playing in my ears really helps me clear my head and focus.”
Miles Robinson, co-owner of the House Of Cards group of seven Home Counties stores
“While I don’t believe our sector is immune, being that the cost of a greeting cards is just above a pint of milk/loaf of bread I do feel our industry will weather the current storm OK.”
Do you foresee consumer price sensitivity on cards: “I think there may well be some of this, price points of gifts will be ever more important, but I don’t think we will see a massive move in the split.”
What mitigating measures have you taken in your business: “Certainly an awareness of energy consumption/reduction where possible and looking at the little things that added up cost wise can make a significant difference. We recently carried out a sustainability study throughout every branch and employee, the results have been quite eye-opening and I think will lead to some brilliant time/cost saving measures in due course.”
Government magic wand wish: “Permanently fix the business rates system!”
What’s your personal pick-me-up: “Well it would have to be chorizo, Pedro Ximenez and ?????!”
Simon Elvin, co-founder of Simon Elvin
“The cost-of-living crisis is bound to have some effect on the greeting card industry, particularly because of the postage increase.”
Do you foresee consumer price sensitivity on cards: “Hopefully the majority of people will still send a card, but they may well be more price conscious when buying one. The Covid lockdown and buying locally did help our wholesale distributors, particularly those with a strong online offering, and I believe this will continue as retailers become more aware of the range of product they can buy from leading wholesalers.”
What mitigating measures have you taken in your business: “As a business, we continue to look hard at our costs but, with everything going up and the need to pay our staff more to cope with inflation, we will inevitably have to increase our prices, even though we will swallow as much as possible of such prices increases.”
Government magic wand wish: “If the government had a magic wand, they could close down Card Factory, ban SOR and give me a crystal ball that could look forward 12 months!”
What’s your personal pick-me-up: “When the going gets tough, it’s just a case of trying even harder and ignoring all the doom-mongers.”
Sara Burford, co-owner of Cinnamon Aitch
“Running a business is a constant stream of challenges, some more significant and longer lasting than others but there are always threats that need to be navigated or addressed. Resilience and adaptability are key.
“As a result of the cost-of-living crisis, people are already making changes to their shopping habits, cutting corners, tightening belts, shaving costs from their monthly outgoings and delaying those larger purchases until things feel more stable. This will impact the greeting card industry but, I think, as long as there is a range of products to reflect the reduced disposable incomes then people will still want to send cards for birthdays, special occasions or just to connect.”
Do you foresee consumer price sensitivity on cards: “The consumer may not spend as much as they did before on a card, or they may buy a card instead of a gift, but I think the past two years have highlighted the need and desire to connect more than ever, so this won’t stop. At Cinnamon Aitch we have just extended two of our card ranges that retail at £2.25 with this in mind. Hopefully, in addition to the modest retail price, the designs will bring joy and positivity without focusing on material items that people may have to forego for the present period and beyond. Retailers are a savvy, creative breed who respond to and reflect our times. There are already nods to more price-sensitive products and discount schemes popping up on social media. As long as the design resonates with the consumer, makes that all important emotional connection and the price is right, then we can ride this current storm.”
What mitigating measures have you taken in your business: “The cost of production crisis has seen increased costs in everything from board prices, running a studio and employment costs, and delivery charges, on top of the aftershocks of Brexit, High Street closures and a global pandemic still leaving financial scars. It’s become more and more difficult to absorb the many increasing costs at a time when it has never felt more detrimental to increase them. Throughout the pandemic at Cinnamon Aitch, we streamlined and tightened our running costs to a point where there is nowhere else to trim.”
Government magic wand wish: “The government should rethink business rates for independent retailers. This doesn’t even need a magic wand, just some long-term foresight and common sense.”
What’s your personal pick-me-up: “My personal pick up is always a walk through the woods. Rain or shine, the trees have it every time for escapism, reflection and rejuvenation. On the other hand, my co-owner Sarah Fitzpatrick finds more relaxation in a large glass of red!!”
These comments appear with others in the June edition of Progressive Greetings which has been published recently.
Top: The cost-of-living v the importance of loving
