“The promotional merchandise market for many years has
largely remained unchanged. Chinese
factories only sold through Hong Kong based traders who in turn, sold to
importers. National manufacturers and importers sold their products to regional
suppliers, who then sold their products to distributors and by proxy, the end
client.
“But in more recent years, this
simple supply and demand relationship has undergone some changes, not least as
a result of technological advancements in both communication and product
manufacture and the increasing focus on environmental responsibility; both of
which will continue to heavily influence the future of promotional merchandise.
“Function and value are the critical
principles when it comes to promotional merchandise. But for some time now, so
too is being socially and environmentally aware. The advent of the
environmental agenda brought with it greater scrutiny; do we really need this
product and what effect will there be to the environment?
“Clients now look for evidence of
green, ethical practices; actively seeking reassurance that they are making the
best and right choice, to demonstrate they are acting in a socially responsible
manner rather than simply promoting a green PR message.
“Carefully
sourced and environmentally sustainable products that enhance brand at minimal
material or environmental cost are the promotional gambit. However, so too is the requisite proof to back-up
claims, with supply train transparency frequently a prerequisite we have to
meet before customers are able to place an order.
“SEDEX, The Base Code Ethical
Trading Initiative and SMETA audits are now business essential and will
continue to play increasingly important roles in the future.
“The environment is not the only
factor shaping the future of our market. Technology has started to change how
we interact with our customers and looking ahead, this is set to continue.
“There is already an emerging
trend with companies like ours, looking at how best to harness this technology
to increase visualisation of products to enhance service offering and increase
quote conversions and order efficiency.
“Technology and the internet in
particular will also continue to drive up competition. The use of Google to
research and source the best price has already had some impact on competitive
trading with price, speed and quality of delivery becoming differentiators from
the outset.
“We also now face the emerging
trend of Chinese
companies building their own websites, found in directories like Ali-baba or Hong Kong
Enterprise. Already,
several have started to buy Google keyword ad campaigns displaying their
product range on top of Google search results.
“Whilst professional organisations like PSI in
Europe or PPAI and ASI in the US
try to protect the market by refusing entry of Asian exhibitors at their trade
fairs, there will be a need for greater dexterity on our part to be in a
position to compete.
“The
extent of these factors may not be fully felt or understood for some years yet,
but from 2012 onwards, we will need to keep pace with these global changes and
meet them head on to be in a position to compete.
“It
depends on who you listen to as to the extent of economic growth we can expect
in the coming months. It is likely that
the reality will be similar to this year, with the industry needing to work
hard to maximise all available budgets and reap the rewards.
