Home Archives Subscribe Advertise FAQ Feedback Contact Us  
Industry News Trends
PPAI News
Products
Decoration Processes
Sales and Marketing
Business Operations
Research
Profiles
Editorial/Opinion
Online Exclusives
PPB Newslink
PPB Supplements
Promotional Consultant
Promotional Consultant Today
The Navigator
This Month's Poll
How often do you multi-task?



  
PPAI
 
Article Tools: Print | Email | Add Comment
Share |

How Will Promotional Products Businesses Fare In The ‘New Economy’?
By: Tama Swan, Associate Editor
Issue: 2009sep

For months theorists have discussed how the U.S. economy will likely emerge from the recession as a wholly different animal. While forecasts range from subtle variations to you-can’t-even-imagine, most agree things are changing. We asked three big-time industry players how they think the promotional products business will look in the new economy.



Ross S. Silverstein
President and CEO
iPROMOTEu
(UPIC: IPRO9320)
“I don’t believe the promotional products industry is uniquely situated to be impacted by changes in the economy meaningfully different than other industries. First, the organization must have a viable business model. Second, the organization must have capable personnel who can skillfully execute the strategy necessary for the business model. Third, the organization must have adequate financial resources. Two out of three will not suffice; all are required. Any organization, large or small, can possess these three criteria and be successful. Similarly, any organization can stagger and fail because it does not possess them. I expect some large distributor and supplier organizations will fail, and I expect many smaller distributor and supplier organizations will fail. Those that survive will do so because of their business model’s viability, their personnel’s capabilities and their financial resources.”





Marc S. Simon
President and CEO
HALO Branded Solutions
UPIC: LEEWAYNE)
“The new economy will definitely require companies to be more nimble than ever. In addition, and particularly as it relates to companies in our industry, sales professionals will need the pricing leverage, technology capabilities and creative resources that larger distributors are structured to offer.

“The new economy will feature a generation of internet-savvy buyers that will demand differentiation—both in price and creative ideas. Any sales professional in our industry that can’t deliver value through these two means quickly and professionally will be at a distinct disadvantage.”





David Nicholson
President
Leed’s
(UPIC: LEEDS)
“I agree that the economy is undergoing a significant transformation and many industries will emerge from this downturn looking far different than they did 12 months ago. The promotional products industry is no different. Our industry is much smaller today and likely will not see a return to meaningful growth during the next few years. Yet we still have the same number of suppliers and distributors—all of whom are competing for slices of a smaller pie.

“As a result, success will depend on companies’ ability to recognize this change and adapt their business models. Capabilities that defined success in the past will become even more important to drive market advantages. Companies that both realize this shift and can respond quickly through innovative solutions have the best opportunity of standing apart.

“However, I’m not sure there is a clear advantage for smaller companies. The critical factor is whether a company, large or small, correctly anticipates industry shifts and successfully executes changes within their business. On one hand, smaller companies often move more quickly, but they may lack necessary resources and management depth. Larger companies, however, are at risk of being unwilling to make necessary changes given their current investment and market position. Either way, it’s clear the new economy will require far more innovation and restructuring in business models and cost structures.”


Comments (1)

8/21/2009
Ron Friedman (ron.friedman@pticorp.com)
company: PageFlip Studios
title: President
"Changes are inevitable for both Suppliers, Distributors and Clients. The economy is forcing all of us to work smarter with greater efficiency. Does that mean lowering the price? Going Direct? The new methods of purchasing decisions certainly play a role in tighter margins. With that being said, this industry must stop the commoditizing of its products. The quick marketing approach of Supplier Blasts will only exacerbate the slim margins. Why are eBlasts always about ‘lowest prices’? Its time to promote by product virtue, not price. Educating the distributors and clients on product benefits will help to stabilize profit margins. Yesterdays marketing masters that relied on daily “Email Blasting” just isn’t so smart any longer. Today’s competitive edge will require Smart Educating. Using rich internet content (online Product Videos) to educate, and promote product strengths is the path for successful suppliers and distributors who can provide real value in a service industry full of commodity products. Rules are changing and marketing methods deserve a new approach. Online Video marketing promoting product benefits, without price slashing will help the Supplier and the Distributor stay in the game."
* Name:
* Email:
Company:
* Title:
* Comments:
   







Home | Archives | Subscribe | Advertise | FAQ | Feedback | Contact Us | Site Map