THE FUTURE OF PROMOTIONAL MERCHANDISE IN 2012 & BEYOND

Andy Steavenson, managing director of trade-only bag specialist Crazy: Bags comments:

“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.