Kids: life of party goods

Discount Store News, Feb 3, 1997

When it comes to classic and hot licenses in greeting cards and party supplies, consumers look to discounters more than any other type of retail outlet to satisfy their needs. And now more than ever, customers are looking for licenses that appeal to their children.

Why? Because kid's parties are big business. Unlike years past, the licensed characters adorning invitations, paper products, favors and birthday cards have become an integral part of the part.

As a result, licensed products are a key ingredient of the $1.5 billion party goods category. And the momentum continues to build.

"When it comes to licensed products, you have to be constantly monitoring the selection because many tend to be an in-and-out proposition," said Stan Lewis, marketing vp of the general merchandise team at Hallmark Cards. "Our strategy with licensing is to create a balance of the hot properties, with a strong portfolio of classics so we make sure it's not `here today, gone tomorrow,"

Overall, 29% of consumers who visit a discount store purchase juvenile birthday products (both licensed and non-licensed); 22% purchased products for general entertaining; 22% to keep on hand; 14% for adult birthdays; 5% for baby showers; 4% for bridal showers; 3% for anniversaries/weddings; and 1% for other, according to a survey of 5,000 households conducted by American Greetings.

The survey also revealed that discount stores have a 38% market share in party goods, followed by supermarkets with 22%; party supply stores, 21%; card/gift stores, 8%; department stores, 4%; drugstores, 3%; and other, 4%.

Much of the success enjoyed by discount stores is due to wider and deeper selections of well-merchandised party goods and greeting cards in the hot color and lifestyle trends.

Retailers have brought these high-profit categories closer to the front of the store to take advantage of impulse purchases. Another margin-enhancing product in greeting cards/party supplies is metallic balloons, which are inflated and kept in a corral above the cards and party goods.

At Target, American Greetings dominates the mix in both party goods and greeting cards. In addition, 8 ft. to 20 ft. is devoted to Recycled Paper Products for their humorous cards, plus another 8 ft. for seasonal cards. ShopKo divides its business equally between American Greetings and Ambassador Cards, while Venture stocks party goods from Hallmark, Beach, Unique and Lisa Frank, and greeting cards exclusively from American Greetings. Plans are underway at Venture to strengthen its juvenile party assortments and expand the gift bag presentation, said greeting cards and stationery buyer Ken Ware.

Driving the juvenile business for retailers across the board are strong properties, such as Goose-bumps, Star Wars, Looney Tunes, Disney and Rugrats, which was recently judged as the second-most-popular cartoon character group among 6- to 11-years-olds according to results of a survey of 800 children nationwide conducted by Manhasset, N. Y.-based Marketing Evaluations/TVQ.

This hot children's license is also cornerstone of American Greetings' new Design Ware business unit, an expanded party goods line that offers products selections and flexible merchandising options provided by a dedicated product development sales and manufacturing team.

Also this year, Hallmark's Mickey Unlimited, Mickey's Stuff for Kids, Mickey & Co. and Disney Babies licenses will be making an appearance on greeting cards, gift wrap, gift bags, partyware, ornaments, stickers, albums and stationery.

Hallmark's reliance on licensing was solidified about 18 months ago when the company restated its strategic focus on product leadership, as well as on properties leadership. Currently, its portfolio includes 17 of the top 19 licenses in the world for 1996, according to The Licensing Letter.