5% growth predicted for promotional merchandise | Incentive&Motivation

A huge period of growth awaits those in the sector of promotional wear – with a prediction of 5.3 per cent forecast for the European promotional products market in 2018, according to the current PSI Industry Barometer, the survey of nearly 1,000 promotional products distributors across Europe conducted by the PSI Institute. This comes fresh on the news from The Advertising Specialty Institute (ASI) which has estimated sales of $22.9 billion for the just-finished business year, an increase of about 3 per cent over the prior year. It seems if you want to improve your incentive marketing,  to enhance how you engage potnetial customers and even reward employees, promotional products could be a safe bet for your money.

One out of every five companies plan on investing in promotional products

Ranked Number 1 among the top sellers are textiles, particularly T-shirts and caps. This, too, is a megatrend – sustainable production and a traceable supply chain. Based on his experience, says ASI president Tim Andrews, “millennials are open-minded in regards to promotional products, but they’re also picky when it comes to compliance with environmental and social standards.”

GWW president Frank Dangmann expects to continue: “Today, virtually every large company and 75 per cent of all medium-sized companies in Germany deploy promotional products in their customer communication.”

One out of every five surveyed companies plan on investing more money in promotional products in future, he adds. The industry – especially in Germany and Europe – is expecting an extra boost from the 2018 FIFA World Cup in Russia.

US market also expected to grow

And the industry’s growth trajectory will continue in the “homeland” of Facebook, Google and Co., too. The Advertising Specialty Institute (ASI) has estimated sales of $22.9 billion for the just-finished business year, an increase of about 3 per cent over the prior year. Ranked Number 1 among the top sellers: textiles, particularly T-shirts and caps. This, too, is a .megatrend – sustainable production and a traceable supply chain. Based on his experience, says ASI president Tim Andrews, “millennials are open-minded in regards to promotional products, but they’re also picky when it comes to compliance with environmental and social standards.”

An unmistakable trend towards sustainability

The latest PSI Industry Barometer found that more than 90 per cent of the surveyed promotional products suppliers and distributors now have certified or verifiably sustainable products in their assortments. For more than half of the suppliers and distributors, the share of sustainable products even exceeds 30 per cent of their complete range.

It’s all part of the mix

Gordon Glenister, Director General of the British Promotional Merchandise Association (BPMA) believes that promotional merchandise can really cut through the digital noise we pick up on a day to day basis.

“It’s an essential part of the marketing mix for a number of reasons.  Most brands want to engage their audience and no single medium works best in isolation – it’s a combination.  One of the challenges at present is the shear bombardment of messages we receive every day. TV advertising spend is dropping as our attention spans are so limited.  BPMA research confirms that promotional merchandise has the highest response to invoke loyalty than most other media.  In order to create impact – repetition of message is essential.  The perfect solution is through branded products that are widely used and relevant to campaigns.  Merchandise is tactile, it’s enduring, it’s useful and it can be alluring dependent on what it is.  Ironically the largest buyers of Aston Martin merchandise are aspirants, i.e. people who couldn’t afford the car but want to be associated with it.  Another example is the famous Meerkat which has been central to the Compare the Market brand strategy.

I think there are many different opportunities on the horizon.  With advances in print technology and 3D development, I see growth in personalisation so it’s not just about a brand logo but a customer’s name included in the message.  The digital revolution is competing with our industry so we must acknowledge it and remind our customers that merchandise offers many benefits over other advertising media.  I also believe we will see more different types of branding being more prevalent. This is already happening with clothing.  The smarter guys are looking at putting unique URLs and hashtags on branded gifts to create a positive ROI.  We’ve also seen more people selling merchandise than ever before, both in traditional outlets like printers and stationers but also online, so the professional distributor has to continually make a difference.”