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The eco-nomics of the credit crunch
Epona's Juliet Bacon asks whether environmentally friendly promotional products can survive the credit crunch as marketing budgets tighten
Published:  01 December, 2008

As 2008 draws to a close, a huge amount of environmentally friendly promotional products can be found in the marketplace from recycled frisbees to solar charged torches. Companies who are keen to promote their corporate social responsibility policies are sourcing an increasing number of products for giveaways, gifts and incentives that are less environmentally damaging.

But with the difficult financial climate of 2009 looming, will companies continue to purchase these promotional products and be willing to pay the slightly higher price? Are environmental commitments strong enough to withstand the crunch and will bosses be convinced that this is the best way to spend tight budgets and help their business to stand out from the crowd?

Over the last year, the sector has continued to grow, with more and more recycled and eco products coming onto the market. Matt Franks, director of Eco Incentives, commented on some new innovations and popular products. "Bamboo clothing has been available for a while, but we've recently launched a range of bamboo desk items which look fantastic when engraved. We also met with a factory earlier this month that manufactures cell batteries for water-powered clocks and calculators. We are now able to produce bespoke designs of these items from 1000 pieces upwards. Recycled plastic continues to be a growth area and we are in the process of launching a recycled plastic trolley-coin key ring that will be new to the market."

Keeping up with demand

In some cases demand for product is outrunning technological capability. I recently tried to source a recycled water bottle for a promotional giveaway and found this item could not be manufactured. I found out that it's not always possible to guarantee where waste material has come from and therefore certain products are unable to pass specific health and safety tests.

Recycling waste is an area that is in constant development and it will be interesting to see what new recycled products become available as demand grows and research in this field progresses. In addition to reusing waste, there have also been significant advances in biodegradable materials such as cornstarch and sustainable materials such as bamboo. Unlike recycled waste, manufacturers have complete control over these virgin materials and in some cases it is arguably more environmentally friendly to use a sustainable virgin material rather then produce a recycled product, as this can be extremely energy intensive.

It is choices like these that make the green arena difficult to navigate. Printers and merchandisers can have a real impact here and help buyers to understand the different ethical options available to them, along with the pro's and con's of each. As Matt from Eco Incentives points out, there is not always one straightforward ethical or eco friendly solution.

To give an example, there is strong evidence to suggest recycled paper uses more energy to produce than FSC paper, so which is better for the environment - a recycled product that uses more energy, or a new product that has a lower carbon footprint, but doesn't prevent waste going into landfill? Some clients will want their suppliers to make recommendations and guide them through these issues. But others are not overly interested a product's specific ethical or eco credentials and instead just want to be reassured that any claims can be backed up, as false statements can be hugely detrimental to brand integrity and customer loyalty. 

The motivation behind a company choosing recycled or eco promo products may well affect the growth of this sector in the coming year. Brands that have a CSR policy fully integrated into their business ethos should continue to source environmentally friendly products wherever possible. Other companies who are responding to consumer demand could go either way.

There is little doubt that there is a genuine consumer movement towards a more ethical lifestyle. Recent stats show that consumers are staying loyal despite financial difficulties and one survey said stopping buying Fairtrade products would be the 50th way consumers would choose to cut spending. While companies want to respond to this, tight marketing budgets and the drive to lower costs will make it harder to justify promotional spend on eco products.

What could make the difference is how effectively marketing personnel can put forward the case that, as www.recycledpromotionalproducts.co.uk put it, these products will give a, "return on your investment when used as part of your marketing mix and ensure that you stand out from your competitors".If companies believe that purchasing ethically sourced products will influence their consumers' perception of the brand, they will want to ensure this message is getting through. Generating awareness of a product's environmental or ethical credentials will be a vital part of promoting the added value of a gift, incentive or promotion, whether this is done through marketing communication or external labelling on the product itself.

It's a positive step that an increasing number of businesses are looking to source environmentally friendly promo products. And it is likely this is just the beginning. As this article went to press, MPs were voting on a bill to enforce an 80% reduction in carbon emissions by 2050. This would have a huge impact on the way every business is run and could mean responsible sourcing and reducing environmental imprint become the social norm.

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