Franchise Spotlight: Cards and Gifts
Franchising offers a robust business model in the competitive cards and gifts sector.
Statistics show that the cards and gifts industry is worth over CA$2billion (Ibis World), a figure which is likely to grow. The cards and gifts sector includes high street shops, online businesses and those with a hybrid sales approach. The cards and gifts industry, including gift wrap, party supplies and seasonal products, benefit from repeat customers and profitable events such as Christmas and weddings. Franchisees can invest in businesses that stock a range of products or look to specialize in a niche area.
The 2020 health pandemic affected business in this sector with high street stores being forced to close their doors and adapt due to social distancing and lockdown enforcements. Some companies were quick to diversify and ensure they could provide e-commerce solutions for consumers. In addition, franchisees would be wise to consider options for online retail when investigating potential franchises.
Many businesses in the cards and gifts sector have been forced to consider their unique selling points as they’ve come up against fierce competition from discount stores and supermarkets offering cut-price deals.
One business that has really found a niche is the Speaking Roses franchise which provides consumers with flowers (and other products) that have printed messages on the petals - which they claim is a completely unique and innovative design. To stand out in the crowded cards and gifts market, franchisees need to ensure they are investing in a business with a clear USP.
Cards and Gifts Industry Analysis
The cards and gifts sector is a highly competitive and fast-changing market. Franchisees entering this market alone will meet strong competition, not only from businesses in this sector but also wider competition from large supermarkets who have the ability to mark down prices and make it hard for new businesses to survive. This is where franchisees will benefit from the brand identity and support of an established company.
Experience in the cards and gifts sector will not necessarily be vital, but sales experience and a passion for customer service will be highly desirable. Most franchises will provide comprehensive training and support sourcing locations if you are interested in buying and managing a store. There are also work from home options and, with the industry surge in ecommerce sales, franchisees need to ensure they have a clear understanding of how businesses are managing their online sales. For franchisees with a passion for sales and providing excellent customer service, the cards and gifts sector is teeming with possibilities.