Government must insist on 'lock-tight' conditions to protect Royal Mail, says Greeting Card Association CEO
Nothing beats the thrill of hearing the gentle thud of a hand-written card tumbling on to the doormat. Greeting cards are treasured for decades because they provide lasting links with loved ones. Greeting Card Association CEO Amanda Fergusson is determined to ensure the Royal Mail continues to operate in the best interests of businesses and consumers, if as anticipated, it gains new owners later this year.
Advertisement
Hide AdAdvertisement
Hide Ad"Greeting cards create really powerful connections between people,’’ said Ms Fergusson, who started her career as a 15-year-old in a greeting cards shop. “It's a really friendly industry. Everyone pulls together and supports each other. We are all passionate about the product we produce.”
The GCA is an independent not-for-profit trade organisation operating for the benefit of its’ members; greeting card publishers, retailers, suppliers and individuals working in the card industry.
Ms Fergusson has spent more than 30 years working with major brands, including a five year stint as head of marketing and corporate communications at Hallmark Cards.
Advertisement
Hide AdAdvertisement
Hide Ad"In the late 1990s I was often asked if we were about to see the death of the greeting cards industry due to the internet,’’ she added. "But that's not happened, the British love sending and receiving cards and we are now particularly seeing growth in customers aged 16-24. The industry is constantly innovating, to ensure that we have the cards that reflect our diverse culture and that consumers want.”
It has, for example, been working as an industry with a child bereavement charity to make sure the wording in cards is appropriate for children who have lost a loved one.
"In the UK, we send more cards per capita than any other nation. A card is a tangible connection with somebody you care about.
Advertisement
Hide AdAdvertisement
Hide Ad"People keep around 50 per cent of the cards they receive from close loved ones. The greeting card sector is a massive creative industry. Many people work out of their back bedrooms and the Royal Mail is so important to them. They need a service that's affordable, reliable and provides next day delivery.”
Last month, Royal Mail owner International Distribution Services (IDS) revealed that it had agreed to a £3.57bn takeover offer from Czech billionaire Daniel Kretinsky’s EP Group. The offer would see EP Group buy IDS for 370p per share, while offering a series of “contractual commitments and intentions” to protect public service aspects of the Royal Mail. IDS said that, if the deal goes through, Royal Mail would continue its universal service obligation to one-price-goes-anywhere first-class post six days a week, and keep the company’s branding and UK headquarters.
It also said it would protect existing employment rights of all IDS staff, and that there is “no intention to make any material changes to overall headcount or reductions in the number of frontline workers” beyond existing plans. Business Secretary Kemi Badenoch met IDS bosses last month and underlined the need to protect services for vulnerable people and small businesses. Labour’s shadow business secretary Jonathan Reynolds said he would hold Mr Kretinsky to his promises. Ms Fergusson, however, said GCA members were “concerned that the undertakings being proposed by EP Group in relation to its takeover of Royal Mail are inadequate and short-lived.
Advertisement
Hide AdAdvertisement
Hide Ad“A first-class six-day service without long-term commitments on affordability risks leaving small businesses and consumers picking up the cost of this proposal,’’ she added. “What’s more, undertakings that expire after a single five-year Parliamentary term will not inspire confidence from small businesses and consumers that the service is being protected for the long-term.
“Five-year commitments to support an institution with over 500 years of history appears to fall short. The Government and regulator must insist on lock-tight, long-term undertakings on affordability and reliability and the protection of our national service before approving this deal.
“Any future reform of our delivery service must be dependent on Royal Mail meeting the performance targets they’ve already signed up to. Daniel Kretinsky gave an interview in which he said he was committed to making long term investments in Royal Mail which have provided some reassurance.
Advertisement
Hide AdAdvertisement
Hide Ad"The key issues are around accountability and affordability; cards need to arrive on a special date and provide a vital connection with loved ones, especially for many housebound people. We have written to the leaders of the major political parties to ensure they understand our concerns. Our sector contributes £1.5bn to the UK economy a year.
"We're a thriving industry and we need a national, reliable and affordable postal system to support the small businesses that make up our industry and to ensure card senders can connect with their loved ones.”
Many GCA members have also experienced frustrations with exports to the EU since Brexit, she said.
Advertisement
Hide AdAdvertisement
Hide AdShe added: “It now takes a lot more time to process EU orders, and the costs are higher for both the exporter and our customers in the EU. Many are reporting customers in the EU choosing to buy now from other suppliers in EU because it’s a lot easier and simpler than dealing with the issues with importing from the UK. We need the new Government, to understand the issues small businesses face as they try to build up the international trade again.”
Above all, she believes the industry must embrace the future, while remaining proud of its heritage. "It's very important that we celebrate the diversity of British society and understand the consumers of tomorrow.”
Comment Guidelines
National World encourages reader discussion on our stories. User feedback, insights and back-and-forth exchanges add a rich layer of context to reporting. Please review our Community Guidelines before commenting.