An increased role for our industry

Andy Steavenson, managing director, Crazy Bags

 This year saw the recession force the promotional merchandise industry down new roads. The need to demonstrate best value for money and added value became critical.

As buying decisions were scrutinised more and more heavily, expectations increased simultaneously, driving up quality and price demands.  

Promotional budgets have had to work harder than ever before. In 2010, this is set to continue, but with the added complication that our customers are working to revised expectations; a mind shift through education and necessity. There is still recognition that promotional merchandise can be productively used as a business incentive or sales tool, delivering a tangible return on investment.

The key for 2010 will be to work within these new parameters and drive the industry forward, rather than fight against change.

Perhaps the biggest challenge will stem from what is likely to be shrinkage in the overall value of the market. It is unlikely that marketers are going to increase their budgets next year. The key therefore, is to address how this budget is allocated.

We have to tap into the education that has already started and demonstrate that decisions based solely on price are false economy. Looking at promotional bags and in particular eco-bags, the perception is that they are desirable, but expensive. The reality is that the margins between eco-bags and these other products are in fact nominal.

Therefore, 2010 poses an increased role for our industry. It will become our responsibility to ensure that these perceived barriers to entry are shown for what they are, demonstrating where promotional merchandise still has a valid and valuable role to play in marketing and sales promotion.

The shopper psyche has changed. Consumers for example have mountains of reusable bags. Next year will see a continuation of this trend and will arguably begin to transcend to wider markets and wider uses. A good example will be the high street where the branded reusable bag will become more embedded.

It is set to grow in style and use and has the potential to evoke the same desirability as a Mulberry Bayswater bag or the Bloomingdales Little Brown Bag, but on a bigger scale.

Next year has some exciting possibilities. We need to be more imaginative and look at where and how budgets are allocated and redirect this through education. Evolving product lines is a natural progression in any market. The difference now however, is that this will be essential for survival.

Sashes will make a splash for 2010

Caroline Prosser, customer services and marketing manager, Golden Finishes

It's been a great year for the promotional sash we predict that 2010 will be the year of the sash!

So why do believe sashes will be the must-have of 2010? The main reason is the rumblings about 2010 being the "recovery year". This promise is resonating around companies and businesses are getting ready for the boom. Companies are looking at their strong products to maintain brand awareness or even pushing a new product into the market place - and promotional and marketing tools are a key part of any campaign. Any company can throw money at a product launch to make it successful, but those days are on hold. What companies require now is a low priced, high impact promotional tool that's fast to produce and requires little lead time. This is where the promotional sash ticks all the boxes.

The shiny fabrics and vibrant colours provide instant glamour and they have long been connected with sophisticated events. They can be matched to corporate colours and they are lower in price compared to most promotional tools. And all adult sashes are one size fits all, which eliminates sizing issues. If your budget is higher, you can splash out on a deluxe range - double skinned satin ready to be printed on double sided!

Branding can also be done relatively inexpensively and quickly. A message can be printed on one or both sides - including logo but a succinct high strap line on your colourful sash will deliver the key message of your campaign.

Sashes are vibrant, inexpensive and fast to produce - a winning combination!

Short lead times "a challenge"

Gill Thorpe, managing director, The Sourcing Team

Clients are looking very carefully at their budgets and marketing activities so they want to ensure that they get the best results from their promotions.

I think the trend will continue to be very last minute ordering - so shorter lead times, which means buying from Europe.

Environmentally friendly products are something that I think will continue to grow and I think we can see from the market now that these products are becoming more desirable - ie: I believe more choices will become available next year. In terms of products I think the solid, reliable and functional are here to stay. Clients want quality and products they know will be visible and

used day in day out.

I think 2010 will certainly start stronger than this year - but the market is still slightly nervous so I think there will be some careful buying, picking up as we go through the year.

The biggest challenge during 2010 will be short lead times, as well as being creative. A key influence will be the football World Cup!

We have many exciting ideas for 2010 - but we tend to finalise products towards the end of the year... It's a bit soon to give too much away.

We all need to be more proactive

Jim Nicol, managing director, TheMagicTouch

Next year will be a very interesting year, where those currently involved in garment decoration will maybe need to "step back" and have a good hard look at how they market themselves to both new and existing clients.

The market has so much in the way of new and cutting edge technologies that I really believe the decorator is struggling to cope with the technology they already have!

The real emphasis for decorators needs to be on sales and marketing activity, making sure they communicate better all the products and services they have to offer. I also think there has to be a change in the attitude towards small orders. In the past orders below 10 garments were treated as something special but now, they need to be regarded as the future, as this is a positive way of creating business as opposed to order taking.

Garment decorators need to focus attention on database management supported with product sampling and product e-mailers on a regular basis. By creating new business you tend to target clients who have never had promotional/workwear garments in the past, due to the many restrictions and barriers that used to exist. Today the client can email a logo/image etc and the garment can be available for proofing within hours as opposed to days.

Another major factor is the need for decorators to target local businesses. There has never been a better time for local companies to conduct local business. At least ensure that any sample product send for approval clearly has the suppliers local phone number emblazoned somewhere.

We all just need to become more pro-active.

A bright outlook for 2010

Paula Cannon, head of design, Incorporatewear

I believe that bright, fluorescent colours will continue be very popular for promotional clothing for 2010. As for garment decoration, we are finding the trend is for individual names on the more casual garments in our ‘Inworkwear' stock supported range.

Embroidery is most popular on knitted garments and for practical reasons this will remain so for 2010.

For transfer printing (mostly used on outerwear) we have our own Roland Versacamm combined printer and cutter and we can use this to produce full colour garment transfers. This offers the opportunity to print full colour digital or laser images on to our garments and short runs are no problem. For longer runs of bespoke garments, the personalisation takes place at the factory.

As for the logos themselves, they are being kept fairly simple, with sometimes just key parts of the logo and a strap line being used and these are being applied in a contrast colour to the garment highlighting the brand.

Innovation will be the key

Chanré Williams, marketing manager, The Pen Warehouse

Full colour printing is the next step in promotional merchandise.

While there are many techniques for reproducing images to personalise business gifts, full colour printing is arguably the most eye-catching and impressive. Your logo can be printed in full colour directly onto a range of business gifts, such as rulers, coasters, pencil sharpeners, highlighters, fridge magnets and sliding puzzles, among others.

Eco-friendly products will continue to be sought after. Our eco range includes recycled paper pens and pencils, recycled plastic pencils, biodegradable pens made from corn starch as well as products made from recycled Tetra Pak cartons.

The current year has proven to be challenging to many companies and the vast majority are riding out the economic storm. Innovation is the key for 2010. Therefore, increasing your product range to include items that are both low in cost and have a purpose, can be beneficial. 

I believe that price will continue to be the main decision making factor.

Although quality and design will play a role, it will have to be accompanied with reasonable pricing.

We are planning to add new product lines in 2010. We intend to expand our full colour digital wraparound pen range as well as our Biofree pen range. Silver ion technology is built-in to the barrel of the Biofree pen range during manufacturing to provide continuous antibacterial and antifungal protection.

We also intend to add more colour options to some pen ranges as well as extend our eco range.

More bio-degradable pen options

Melissa Chevin, marketing manager, Senator Pens

In 2010, pen designers will continue to integrate current trends in environmental consciousness into their products. On a wider scale, this will include greater use of biodegradable materials, recycled and recyclable packaging and refillable pens - all Senator pens can be refilled - as well as adopting energy-efficient measures.

We expect there to be ever increasing demand for the fastest selling addition to the Senator portfolio, the genuinely biodegradable Nature Plus pen, which is now available in Mix 'n' Match options, perfect for corporate colour matching. The pen is designed to compost completely and safely, without leaving any plastic residues.

Similarly, we forecast even greater demand for the Senator Super Hit ECO, the newest addition to the best-selling Super Hit range. The ECO is genuinely recycled with 95% of the barrel manufactured from recycled pens and has the lowest carbon footprints of any promotional ballpen.

Marketing budgets will continue to be squeezed, forcing marketers to examine ways in which their activities can deliver positive returns on investment. Companies will therefore be looking to make their marketing budget work as hard as possible by selecting items with longevity that will stay with the recipient and be used time and time again.

For these reasons, the pen, with its practical, portable and cost effective credentials, will continue to be one of the most popular items of promotional merchandise.   

Our 2010 range features a brand new colour palette and new innovative materials.

Cheap is not always best

Malcolm Watson, managing director, The Marketing Worx

Apart from cash flow and finance, I believe the biggest challenge is that we will all be chasing a smaller market in 2010.

There will be an element of a price war but, most companies will still ask for only three quotes and will not always go with the cheapest. The message needs to be conveyed that cheap is not always best. Someone once said to me, "it is unwise to pay too much, but it is also unwise to pay too little. When you pay too much you lose a little money, that is all but when you pay too little you can sometimes lose everything because the item or service you bought was not up to the standard required. The common law of business prohibits paying a little and getting a lot. It simple cannot be done or else we would all be bankrupt!"

As long as this message is conveyed when conducting business in 2010 and beyond, no company should really face a huge problem. Let your customer know that they are not just buying the one item from you. They are buying many things (over the year) in most cases. They are also buying your service standards, quality of merchandise that has never been questioned, a customer care and relationship attitude that is worth far more than a bargain price.

So, the biggest challenge for 2010? Everybody realising that the genuine companies need to work together and when that does not materialise we need to find a replacement that gives quality assurance as well as a good price. We must not let the recession result in a lowering of prices and standards that will damage the industry, its image and it's genuine companies.

In the promotional industry, I see very little happening in the way of new innovation or product for 2010. There will be, by nature of today's world, a desirability by end user customers to be greener and frugal with their (possibly limited) budget. It is down to the distributor, in conjunction with the trade suppliers, to help to convey this offering.

I think that the spend on big budget items will continue to be less and that customers will become more reliant on the creativity of the promotional product distributor. The more proactive ones will see this and, if needed should come to the trade suppliers for help and assistance.

The other trend that will continue into 2010 is the ‘last minute' ordering we are seeing. I would advocate talking to end users as early and as frequently as possible and for the distributor to take a proactive role in helping the buyers plan for events, campaigns etc.

By doing this a healthy relationship builds as do the bonds that tie the businesses together.

See next month's issue for more predictions.

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