August 6, 2014
To most people, summer means family road trips, zeppelin-sized zucchini, backyard barbecues and lightning bugs. Here at ASI, summer means all that and more, since summer is when we produce our annual State of the Industry report.
While it doesn’t yet come with a free umbrella drink, Counselor magazine’s industry MRI does pack a ton of info designed to help any sized company plan strategically for the future, grow their business, streamline operations and tap new and emerging markets.
If you haven’t read the issue yet (available in print and online at www.asicentral.com/soi), take a hard copy with you to the beach or check it out electronically on your device. ASI editorial staffers spent months gathering and analyzing key sales, marketing and operational metrics used by most of you to provide useable info tailor-made for our industry. The accompanying graphics also provide valuable snapshots of what’s up, down and trending.
Click here to read the report in its entirety.
As a whole, 2013 was a good year, with distributors growing sales by 5.7% to reach a record $20.5 billion. The 40 largest distributor companies in the market hit nearly $4.4 billion in sales, accounting for 21.5% of total industry revenues.
It seems that the top 40 suppliers and distributors are exerting growing influence over the marketplace. Counselor’s editor, Andy Cohen, goes so far as to predict apparel suppliers will continue to consolidate and large distributors will create unique partnerships the likes of which the industry hasn’t seen before. As Andy says, “If you can’t beat competitors, join ’em!”
But there’s still room for nimble and innovative distributors and suppliers of all sizes, and obviously our industry is an exciting place for everyone.
The data also shows the profit pressure distributors face and customer trends that include more price shopping, more interest in additional services and more safety and compliance inquiries.
Our predictions for the industry’s future? While product staples like T-shirts and pens will remain strong, sales of branded technology items like USB cards should increase dramatically in the near future as more millennials enter the workforce. The average order time for suppliers will significantly decrease in today’s “need it now” marketplace, and 90% of the top 40 apparel suppliers will offer in-house decoration in five years.
In addition to winning tips and tactics and growth strategies, the SOI issue profiles the 2014 Counselor Award winners – including Person of the Year Norman Hullinger – and includes revenue and ranking of Top 40 distributor and supplier companies.
I’d love to know what you thought of this year’s issue and if there’s a topic, trend or strategy we might have missed or not given enough attention to, so please either post a comment or email me here. I’m also on Twitter and LinkedIn.
May 7, 2014
With the U.S. reporting modest economic gains and a European recovery finally taking hold, the most recent ASI North American sales report on the promotional products industry also shows renewed reason for optimism. First quarter distributor sales were up 6.4% over Q1 2013 sales. And Q1 supplier sales grew 4.8% over Q1 2013, below the growth rate of the last two quarters, but similar to the first two quarters of 2013.
It’s great to report the year is off to a strong start, with more than half of North American distributors reporting a year-over-year increase in sales and only about one in five reporting a decline. Historically, Q2 growth numbers have declined from Q1 numbers in each of the last three years, and it’ll be interesting to see if this trend continues.
On the supplier side, more than half told ASI they enjoyed a year-over-year increase (Q1 2014 vs. Q1 2013) in sales, with about 21% reporting a decline.
Nationwide, April was the best month for job growth in a while, and the unemployment rate fell to 6.3%. Wages, however, remained flat, and it doesn’t look like the hoped-for hike in the federal minimum wage is going anywhere anytime soon. A new report by the Economic Policy Institute in Washington offered some pretty dire predictions: it may take the economy nine years to recoup the jobs lost during the recession, plus those needed to employ new workers during the slow recovery.
The International Monetary Fund (IMF) expects growth in Asia to remain steady at 5.4% this year. Last year, the region – home to 60% of the world’s population – grew 5.2%. I just returned from a long trip to China and Hong Kong, where ASI has a half dozen independent reps working to sell SGR memberships and marketing and to help manufacturers there connect with North American suppliers. In the spirit of the ongoing fusion of the global economy, ASI also has one rep working in India reporting contacts who are very interested in ASI suppliers and services.
While things are finally picking up in Europe, according to Reuters, numerous factors could still affect the economy, including ever-broiling tensions with Russia, a prolonged period of low inflation and an unwillingness by European member governments to continue reforms. On the good news front, deficits are down, investment is up and, although unemployment remains around 10%, more Europeans are finding jobs.
March 7, 2014
Each year, ASI conducts the most comprehensive and important research about our industry to create the Counselor State of the Industry report. But we can’t do it without you.
All we ask is that you take 10 minutes to complete a survey, and you’ll be entered to win a sweepstakes for a $250 Visa gift card. The survey ends April 4. If you’re a distributor, click here to take the survey. Suppliers, please click here.
It’s important because your info leads to the in-depth reporting conducted each year by the Counselor team on key sales, marketing and operational metrics used every day by industry practitioners. Nowhere else do you get the scope of this detailed information about our industry. And it’s free to ASI members.
The SOI report, which comes out in print and online each summer, is considered the most influential in the industry – and for good reason. It’s a definitive analysis of this industry’s most recent past as well as a roadmap to the future.
With your responses, we’re able to help you grow your business by revealing critical information such as:
Once Counselor’s SOI issue comes out, read it cover-to-cover and cherry-pick the stats and info most useful to your business. And be sure to read the growth strategies that are working wonders for industry leaders – and put them to work for you.
Along with tons of sales-generating ideas, this year’s report analyzes 2013 sales to determine the biggest markets and most popular products.
Remember: The 10 minutes you invest in taking the survey today will pay off in dividends come summer. Thanks for your help – and great luck winning the gift card!
November 21, 2013
Thanks to strong Q3 results, distributor and supplier sales in the promotional products industry have now risen for 15 straight quarters, which is solid proof that companies big and small continue to buy what we’re selling: The enduring power of promotional products.
These days, ideas and innovations are what make the world go ’round. Bloomberg Businessweek says we need look no further than Twitter’s $24.9 billion valuation as evidence we’ve officially entered the “ideas economy.” Lucky for us, ideas and innovations are at the heart of this industry, where new products coupled with inventive branding can hit the market – and seize the imagination – faster than ever before.
If we capitalize on innovation, as Bloomberg suggests, our industry will continue to grow. This year alone, if ASI’s indicators are correct, total sales will surpass $20 billion. I know that anything – a political coup in a far-off land or even a devastating weather event – can cause unexpected economic havoc, but I’m pretty comfortable in our predictions.
What’s your take on 2014? ASI’s Counselor magazine recently asked Power 50 members if their companies would hire additional staff in the next year and 63% said they would. I take that as a strong indication of overall industry health. Is your company hiring? Are your clients spending more? Are you?
As Dan Taylor, president of BamBams (asi/38228), which increased sales by 8.5% this year, told ASI: “I think the value factor of promotional products in the marketing space has contributed to this growth. Companies are working hard to expand, so there is a need for advertising in the marketplace.”
Today, promotional products are used by virtually every business and major brand in America, and for good reason: They work! For proof, you need look no further than ASI’s most recent global advertising specialties impressions study, highlighted by tons of easy-to-share stats on everything from the impressive CPI to strong advertiser recall.
It’s clear we have the right products and the right message at the right time. So ask yourself this: What will you be selling in 2014? Products? Or ideas?
September 19, 2013
This year’s ASI Power Summit in Park City, Utah, had it all: Breaking news, early morning inspiration, late-night camaraderie, tons of expert advice, incredible views and great golf and mountain biking.
Memorable moments included losing power within a 50-mile radius of the resort during the very last panel with members of the 2013 Counselor Power 50. Undeterred, we powered on, first using the light from moderator Matthew Cohn’s iPad to light up the speakers on stage and eventually by relying on several other iPad lights along with lanterns from the hotel. Not a single person left the room and every question got answered. I think there’s an Apple commercial in this!
Here are a few of my other personal highlights:
And don’t forget to check out ASI’s Facebook page, for pics by Jake (@Phillyspread).
The whole point of smaller, more intimate get-togethers like the Power Summit is for people to learn from each other, make new contacts and deepen friendships with people they already know (or think they know). So I’d like to thank everyone who joined us, and each and every speaker and panelist. Quality ruled!
Throughout the summit I was thrilled. But I was also saddened to hear a young sales star – who sells several million dollars in promo products a year – say he doesn’t think our industry is sexy and that he never tells friends what he does for a living.
In my final address to the Power Summit attendees I shared that story – and really let loose in response. I told our audience I’ve been excited by the industry since the day I started nearly 11 years ago. I’m proud of what I do and of the incredible ROI promotional products provide. Every day, I’m amazed by the continual creativity of our products and the talented people in our industry. I can’t imagine having more fun anywhere else.
August 5, 2013
Remember the dark days of the Great Recession? We were mired in a subprime mortgage crisis, losing millions of jobs and experiencing 10% unemployment. Nearly every industry took a hit, including ours. Distributor sales dropped to $16 billion in 2009, down from a record high of $19.8 billion the year before.
Today, our industry has almost fully rebounded, with total 2013 distributor sales expected to reach new heights, according to the latest “State of the Industry” report from Counselor magazine. Counting Q2, in which sales rose to $4.9 billion, we’ve now enjoyed 14 straight quarters of growth.
Of course, anything can happen between now and the end of the year. Regime changes, shifts in consumer confidence and even natural disasters could impact profits and sales. And I know we’re all holding our breath to see how the ongoing implementation of the new federal health care law affects our bottom line.
But for now, I’m happy to spread a little good news for a change.
It’s time to capitalize on the gains, increase sales, spend a little more on marketing – and get the word out about the ROI and high rate of advertiser recall of promotional products. With the U.S. economy still struggling to gain a firm foothold, a lot of companies, schools and non-profits continue to count every penny, which makes our message all the more compelling.
ASI makes it easy for you to go on your next sales call armed for bear, with tons of useful stats about the health of our industry and viability of our products. If you haven’t already, read Counselor’s SOI issue cover to cover and cherry pick the stats and info most useful to your business. And be sure to read the growth strategies that are working wonders for industry leaders – and put them to work for you.
Along with tons of sales-generating ideas, this year’s report analyzes 2012 sales to determine the biggest markets and most popular products. This year, health and education kept their grip on the number one and two markets, while manufacturing and construction both rose, providing new opportunities.
Other highlights from the 2013 Counselor “State of the Industry” issue include:
The SOI report, which comes out in print and online, is considered the most important and influential in the industry, for good reason. It’s a definitive analysis of this industry’s most recent past as well as a roadmap to the future. So do yourself and your business a favor and check it out.
And keep an eye out this fall for ASI’s next Global Advertising Specialties Impressions Study. We’ve got researchers in the field now – surveying end-buyers from Atlanta to Australia – to give you even more powerful data proving ad specialties are a high-impact, cost-effective ad medium.
In the meantime, you can visit ASI’s customizable End-Buyer Website for even more surefire methods of selling the ROI of promo products to prospects and buyers.
June 14, 2013
One thing I’ve learned from 30 years in business is that the bigger the world gets, the more we need to work together. Today, even the most successful businesses are networking and forming strategic alliances while learning together at conferences like the ASI Power Summit.
ASI designs each Power Summit agenda around breaking business trends impacting the advertising specialty marketplace. But along with new ideas and strategies, the most valuable takeaways are often the bonds participants build with each other.
At our first-ever Canadian Power Summit, which just ended, we opted for an interactive format and more round-table discussions. I don’t know if it was the awe-inspiring Canadian Rockies, the late-night cocktails or the potent combination of both, but from the feedback I’ve gotten so far, the construct worked.
In my iPhone pics, you can see the view from my room, me and AIA president and CEO David Woods in one of the gorgeous meeting rooms and a group at wine tasting. To see more (really good!) photos, click here.
Not surprisingly, we spent a lot of time at the summit discussing the Canadian economy and learning new ways to encourage more business between companies on both sides of the border. As close as we are, there are interesting differences between the two countries, some of which were revealed at the summit in a special sneak peek at Counselor® magazine’s upcoming “State of the Industry” report.
Canadian highlights include:
Also at the summit, we celebrated Canada’s fastest-growing ad specialty companies, while learning a few of the secrets behind their success during one of our final panel sessions. Our top 10 list was determined by the percentage each company grew between 2010 and 2012. The top companies are:
10. Akran Marketing, 15%
If you missed this year’s Canadian summit, you can sign up for next year’s, taking place June 11-13 in Ontario, at Queen’s Landing, Niagara-on-the-Lake. Don’t forget: Anyone who attended the 2013 summit received a coupon for $300 off the regular rate for the 2014 event.
In addition, registration’s now open for the U.S. conference, ASI Power Summit 2013, Sunday, September 15 through Tuesday, September 17 at the Montage Deer Valley Resort in Park City, Utah.