American Greetings Corp

MMR, Oct 20, 2008

CLEVELAND -- American Greetings Corp. wants retailers to know the company is not just about greetings and gifts; it is about helping consumers make connections.

During its 100-year history American Greetings has seen its business evolve from paper to multimedia to virtual communications. The company notes that continuing innovations and updates to technology products have made it much easier for people to connect as well as to do so more often--and more meaningfully.

That is something mass retailers are sure to pay more attention to, with Halloween just around the corner and the Thanksgiving/Christmas holiday season right on its heels.

A survey that was released last month by American Greetings found that 84% of consumers communicate with their closest friends at least weekly, and 27% say they do so each day. The study, which was conducted by the market research firm Synovate, examined communication trends and relationships.

These days people enlist all forms of communication to reach out to friends and family as frequently as they would like, American Greetings says. Eighty-eight percent of those polled in the study said communicating with those closest to them was extremely important or very important.

"People just want to connect often and in their own way, and today we are using all available innovations to do just that," M.J. Smith, director of consumer relevancy at American Greetings, said in a statement.

This renewed interest in connecting is cutting across generational lines as well. Members of the "upstart" Generations X and Y, for instance, are using all of the new mediums at their disposal such as text messaging and blogging, yet they are also among the heaviest shoppers in the greeting cards aisle, American Greetings points out.

"A majority of those in Generations X and Y were raised by baby boomers who were taught to send cards for birthdays and to be sure to get that thank-you card in the mail right after they open a present," explained Smith. "So it makes sense that this generation would become heavy communicators.

"They have definitely added their own style and personality to how they communicate, however, and we can see that in how they utilize resources like MySpace and Facebook, trade digital photography and select cards that are more conversational."

Interestingly, consumers surveyed indicate that they are not using email and text messaging in place of other forms of communication but in addition to them. For example, while the study respondents saw email (62%) and text/instant messaging (32%) as popular ways of communicating, they said they make phone calls (86%) and in-person visits (74%) more often.

These trends certainly are not lost on American Greetings, which closely tracks such consumer habits and utilizes the information to keep its product lines current-and growing. The company offers not only traditional paper greeting cards (under the American Greetings, Carlton Cards and Gibson brands) but also e-cards at its family of web sites; photo-sharing services via its PhotoWorks and Webshots groups; and emoticons, wallpapers and winks for social online sites at Kiwee.com. Other items include DesignWare party goods, American Greetings and Plus Mark gift wrap and boxed cards, and Date Works calendars.

"From our greeting cards to Our online innovations, we are constantly working to offer fresh, thoughtful concepts to help our consumers to connect in a way that is authentic to who they are and the relationships they want to celebrate," Smith commented.

American Greetings Corp.

One American Road, Cleveland, Ohio 44144-2398

Phone: (216) 252-7300 Fax: (216) 252-6778

Web site: corporate.americangreetings.com