Industry News: Meeting of Minds Launches Collective Thinking


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Industry News: Meeting of Minds Launches Collective Thinking

Issue: 2009oct

“Our end customers view incentives and promotional products not as investments but as an expense,” says Pete Mitchell, director of B-to-B Sales for Samsonite Corporation who organized and facilitated the annual Special Markets Dialogue held this past weekend in Myrtle Beach, South Carolina. The think-tank-style, invitation-only discussion brought together 23 executives from a broad range of incentive and promotional products organizations to assess the state of the market and to identify key opportunities for 2010.

Among the top issues explored was that the value of incentives and promotional products, while supported with empirical data, is largely seen as an expense rather than an investment by the corporate community. “Once you cut an expense, it’s hard to get it back,” says Mitchell.

Another important message identified was that all industry participants—from suppliers to distributors to trade associations—speak with a common voice to address challenges presented by the current legislative and regulatory environments. Without it, the door could open wider to additional regulation and restriction. In particular, the group endorsed the ongoing efforts of Trade Groups and the Incentive Federation with members of Congress.

There was also talk about the new market opportunities that exist, for example the recent corporate wellness initiative, but companies must strategically reassess how they deliver merchandise and services to their clients in the face of new realities. These include a downturn in all of the usual business channels. “As companies reassess what they spend to recognize, reward and corporately identify, that changes the size of the pie,” says Mitchell. “More people are chasing fewer dollars.”

Mitchell, who has organized this annual meeting for several years, expects the Special Markets Dialogue participants to take the ideas discussed back into their organizations and call attention, create awareness and spread the word about the value of incentives and promotional products, particularly in retaining and motivating workers.

“Employees are keeping score right now on the way their employers are rewarding and recognizing them,” says Paul Bellantone, CAE, PPAI executive vice president and a dialogue participant. “The wrong approach is to say, ‘You are lucky you have a job.’ Companies will fare much better if they use incentives now to keep employees happy so they can retain them once the employment market comes back. Employees who don’t feel appreciated will be the first to jump ship when the economy improves.”

At the beginning of the two-day meeting, Mitchell held up a glass of water and asked if the glass was half empty or half full. The overwhelming sense in the room was that it was half full. However, the group was realistic in adding that business conditions for the market will continue to be challenging in the first half of 2010 and business lost in 2009 will not likely be recouped within 15 to 18 months.

“Bad news has been a vortex,” adds Mitchell. “If you get close to it, it will suck you in. The industry is not on death’s door, but it will be if we continue to do what we’ve been doing.”

Companies have to make their own decisions including reassessing their customer bases, looking at the services they offer, considering inventory levels and other options that can make a difference in their own market space. And Mitchell advises that companies don’t do it with methods from 2008 or 2009. “Get out the white sheets of paper because you need to reconsider everything,” he says. “If you can add new things without bankrupting the company and if you can do it while everybody else is hunkered down, you’ll be better positioned.”

Comments (1)

10/29/2009
gill thorpe (gillthorpe@sourcing.co.uk)
company: The Sourcing Team
title: MD
"Business is tough across the globe - but maybe this last year has made us think differently, face new challengues - and work harder. But the strong can come out of this stronger, agreed with a lot of hard work - but in a sense hasn't this been an exciting year, we have been tested and continue to be so! With our business in merchandise we need to be smarter and defind our ground - we can only do that by firstly, show the strength of merchandise in campaigns and ROI! Go get um!"

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