November 5, 2014
Clearly, wearable technology is arriving. Fast. Four years ago, the U.S. wearable tech market was about $6 million. This year, it’s expected to clock in at over $5 billion. These devices are starting to suffuse our society, from fitness bracelets to smartwatches to Google Glass. What started as a snowball is turning into an avalanche.
ASI’s recent cover story [http://bit.ly/1uqlw30] for Wearables® magazine on the wearable tech revolution examines every facet of the coming tech boom. We have articles on nanotechnology, designers who are using 3-D printers to make apparel, activity trackers that are being used in corporate wellness programs, Google Glass and other eyewear tech that can transform the workplace, and much more. Most important, our cover story looks at the big picture of wearable tech. How will this change our lives and the way we do business? And how soon will it happen?
Not to burst the bubble, but despite the rapid growth of the market, wearable tech still has some growing up to do. The products so far have been limited in scope, accessories that mostly act as companion pieces to our smartphones. Just now are we starting to see garments with full-fledged functionality: a shirt that give us a snapshot of our health, for example, or garments that feature dynamic LED displays. In the pic at top, OMSignal is a new shirt that can read your vitals and give you a complete picture of your health. The tshirtOS at bottom features LED lights embroidered into the fabric, creating a dynamic display that can be changed with a cell phone.
The hurdle is that these innovations need equal input from gadget geeks and fashion virtuosos – collaborations that are just beginning to form. (Apple hiring the CEO of Burberry last year is just one example.)
As a result, wearable technology is still in its infant state – much like the cellphone market before the iPhone refined the category in one swift blow. It’s no surprise that the Apple Watch is being looked at in the same light, with the hope that Apple can reprise its role. The results will be interesting, to say the least. One research report predicts that smartwatches will comprise 40% of wrist devices by 2016.
I think the potential for wearable technology is vast. Just look at the promotional apparel industry that we cover. Shirts are printed with a message, and that image remains. Now imagine apparel with electronic displays that can be controlled with a cellphone or tablet – and then deployed to be worn by brand ambassadors and devotees. Innovations like those are just starting, and you will see a lot more in the years to come.
The impact on our lives will be far greater. We are already attached to our computers and smartphones nearly every waking minute. Practically every key metric of our lives is kept in a digital record. But we do put our cellphones down (occasionally). And in those down times, wearables will bridge the final divide.
Connectivity will be seamless and ever-present. They will hand over the one thing that data can’t touch – ourphysical bodies – and give us a completely new picture of our health and how we live our lives. Ultimately they will erase the barriers of interaction (admit it, thumbs on a cellphone screen are still clumsy) and allow us to access the resources at an instant, even by mere thought.
And I didn’t even mention the really out-there stuff. Did you know researchers are toying with temporary tattoos that can read your vocal cord movements when you think and transmit them as complete thoughts to another person? In other words, telepathy. Holy crap.
In short, there won’t ever be an “offline.” That may thrill you, or it may horrify you. Either way, I believe it will be our new reality. The items we include in our cover story [http://bit.ly/1uqlw30] may seem radical, but it’s just the beginning.
–C.J. Mittica, pictured at center, is the editor of ASI’s Wearables magazine
October 16, 2014
It’s here: ASI’s groundbreaking global research report packed with stats and graphics to help you convince customers to spend more of their marketing moolah on promo products.
Click here for a quick, catchy YouTube video on the study and here to ASI’s 2014 Global Advertising Specialties Impressions Study in its entirety.You’ll also find easy-to-understand graphics to save and share. I encourage you to post the video and the study link (www.asicentral.com/study) on your own business website to further spread the word about the incredible power of promo products.
The strongest number to tout is promo products’ commanding advertiser recall among 85% of consumers surveyed. People really remember the advertiser on logoed items, largely because they see or use them nearly every day. In fact, most people own about 10 items they generally keep for seven months.
Can you remember a single advertiser from the last time you watched TV? I’m betting you can’t. Perform this simple test on your next potential customer and you just might score a sale.
ASI conducted its first comprehensive research study in 2006. In a nod to our increasingly global marketplace, this year’s study contains far greater global reach, and features several differences worth noting. For the first time we:
This year’s data updates prior years’ reports by expanding interviews into two cities in Mexico (Monterrey and Mexico City) and several additional mid-major markets: Tampa, Charlotte, Minneapolis, Denver and San Diego.
Through conversations with real people who get, use and share ad specialties, we gauged the reach of products, consumer’s perceptions, their influence on buying decisions and their influence on the perception of the advertiser.
After thousands of interviews with businesspeople and students in key cities across North America, Canada, Europe and Australia we can say with certainty that ad specialties are one of the most high-impact, cost-effective advertising mediums around.
And, since knowing the likely recipient of products is paramount for an advertiser, we made sure to include demographic information broken down by political affiliation, ethnicity, gender, age and income.
What’s most impressive is that no matter where we polled consumers, we found end-buyers who feel good about the brands on promo products they use day in and day out. When’s the last time an annoying TV or radio commercial made you feel good? I rest my case!
Another conclusion that resonated with me: First and foremost, consumers want products that are useful, like pens and USB drives. In Canada, 82% of consumers polled said that’s why they kept branded items, the highest percentage of any country.
The study is a living document that’s meant to be used – not scanned once and forgotten. It’s powerful data you can, and should, refer to again and again. Cherry-pick graphics that work best for your business and post them, share them and pass them out on sales calls.
September 17, 2014
A major theme of this year’s U.S. Power Summit was helping prepare the promotional products industry for the future. The keynote speaker, Forbes publisher Rich Karlgaard, advised business leaders committed to growth to hire more people who can deliver different solutions to the organization, while futurist John Smart encouraged companies to invest in e-commerce and mobile platforms.
And since suppliers and distributors must be prepared to meet the ever-growing demand for faster service and order processing, we also invited industry experts to discuss the “need for speed” during a session highlighted by an actual drone demo. While flying drones (pictured, right) are really cool, our bigger point in bringing them to the power summit was to get industry people to start thinking about ways they can be utilized in in areas like warehouse inventory and Amazon-like delivery.
This year, the 2014 ASI® Power Summit in Scottsdale, Arizona, attracted about 200 of the most influential distributors, suppliers and decorators in the industry. From the early feedback I’ve gotten, everyone enjoyed the superior content and business discussions, which were helped along during fun activities like golf and a visit to a nearby ranch for lassoing and skeet shooting. The fine scotch helped too, I’m sure.
Click here for Facebook photos of the action.
We packed a lot into three days. During my Q&A with alphabroder CEO Norman Hullinger, we even broke some news about his plans to double the size of the company in the next five years – and for sales to hit $1.6 billion. In 2013, the number-one supplier on the Counselor® Top 40 list posted sales of $697 million.
Future growth for alphabroder will come from acquisitions and organic growth, especially growth in ad specialty distributorships. But the really big news from alphabroder concerned expanding beyond apparel to a line of hard goods – an expansion that will likely come about through acquisitions as well as internally.
Throughout the power summit, ASI’s editorial staffers provided full coverage of happenings along with video interviews from all major presentations. To read more:
When I say we packed a lot into this year’s U.S. Power Summit, I mean we packed a lot into this gathering. We also released the names of the industry’s most powerful people with the 2014 Counselor Power 50 list. Click here to read our press release with more detail and click here for the full list, topped by Marty Lott and Jeremy Lott of SanMar.
Finally, we also released the 2014 Global Advertising Impressions Study, a cost analysis of promotional products versus other advertising media. For the study, our research team conducted thousands of in-person interviews with businesspeople and students in key cities across North America, Canada, Europe and Australia. This year’s data updates prior years’ reports by expanding interviews into two cities in Mexico (Monterrey and Mexico City) and several additional mid-major markets: Tampa, Charlotte, Minneapolis, Denver and San Diego.
Ultimately, the comprehensive study provides buyers and sellers of promo products with powerful data to convince clients worldwide that ad specialties can increase sales and brand exposure.
If you were at the Power Summit, thanks for joining us! I’d love to know what you thought – and any suggestions you may have for next year’s event, which we’re already planning at the St. Regis Monarch Beach Resort in Dana Point, CA in November 2015 (www.asicentral.com/psreg).
September 8, 2014
One of the best aspects of any ASI Power Summit is up-close access to some of the greatest media and marketing minds in the world. At this week’s event in Scottsdale, AZ, we’re privileged to have Forbes publisher Rich Karlgaard as our keynote speaker.
A North Dakota native, Karlgaard is an author and entrepreneur who went from security guard to head of one of the hottest legacy media companies in the Google Age – and I can’t wait to hear his thoughts on the five factors that will dramatically affect business growth in 2015 and beyond.
There’s more. The 2014 Power Summit – our 8th U.S. event! – at the Four Seasons Scottsdale includes a packed slate of industry insiders who will share their strategies on everything from customization, mobile marketing and demographic shifts to doing business in Mexico and making the best hires.
We’ve gathered an intimate group for three days in Arizona’s Sonoran Desert, Crescent Butte Mountain, Pinnacle Peak and the Valley of the Sun. We’ll pack a lot of learning into the sessions, but will leave plenty of time for a first-class, quintessential desert golf experience and celebrations.
In addition, members of Counselor magazine’s prestigious Power 50 list will also be on-hand to share their plans for seizing the future and making even greater inroads to industry success.
The Power Summit experience is one of the best events ASI offers, and here’s why: Instead of the rush of a trade show, we get to spend real time getting to know one another in a relaxed setting that’s conducive to late-night talks and early morning runs. While we kick it up a notch during our panel sessions – which include group brainstorming to hammer out solutions to common industry problems and even a creative marketing smackdown – we incorporate time for genuine relationship building. And isn’t that what doing business together is really all about?
September 3, 2014
For the 18th consecutive quarter, suppliers in the $20.5 billion promotional products industry are reporting bigger sales, with revenues jumping an average of 5.1% in Q2.
Data shows more than half of suppliers (59%) improved Q2 sales, with 23% reporting revenues were unchanged and 18% with declining sales. At the same time, the U.S. is reporting a healthier job market, a recent surge in stocks and buoyed consumer confidence.
Such confidence is also being felt by six in 10 industry suppliers, who tell ASI they expect 2014 sales to be even better than 2013. More than three-quarters (78%) of supplier firms with $5 million or more in annual sales believe their revenues will improve in 2014. About 58% of smaller suppliers (less than $5 million in annual sales) anticipate their sales will increase this year.
Suppliers quoted in the latest Counselor PromoGram sound cautiously bullish:
The 5.1% quarterly growth among suppliers was a stronger showing than in Q1, when average sales increased by 4.8%. Last month, Counselor reported Q2 distributor sales rose by 6.1%.
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.
July 17, 2014
ASI celebrated its 15th anniversary of hosting a national trade show in Chicago in a very big way. This show had it all: art, commerce, education, networking and, above all, fun and flair.
The show featured 50 education sessions, leading suppliers, 22 team-building distributor sales meetings and a multimedia keynote by graffiti artist, entrepreneur and motivational speaker Erik Wahl on using creativity to supercharge your potential.
Go to www.asicentral.com for complete coverage of the show, including blogs and videos from ASI’s ace on-site editorial team.
To me, innovation was the word of the day on a bustling show floor. I saw tons of new packaging ideas, along with some traditional decorating techniques applied to new products. And, everyone seemed to really benefit from the new Signage + Decoration pavilion and the two days of demos inside. After seeing the techniques, I’m sure distributors will gain a new appreciation for the decorating suppliers do for them.
The feedback from the Erik Wahl keynote was also tremendous. He actually painted right on the stage and spoke about the importance of creativity to business – which are not two words most of us use together in the same sentence. But it makes sense to think outside the box for inspiring ideas.
I think my favorite part of the show was the heartfelt speeches made by winners at Wednesday night’s 2014 Counselor® Awards. I especially loved the speech by Gary Hellinger, of Gary Plastic Packaging Corp. (asi/55990), who won the Marvin Spike Lifetime Achievement Award. ASI Chicago was the very first trade show he’s ever been to. And I almost choked up as he described his operation in the South Bronx, where he has 600 employees working three shifts. What a sweet guy.
At the ceremony in the very cool Museum of Broadcast Communications in Chicago we also announced the Top 40 Distributor and Top 40 Supplier rankings – the largest companies in the industry based upon 2013 revenue. For more info, go to www.asicentral.com. For the complete list, click here.
Our Counselor Person of the Year, Norman Hullinger, CEO of alphabroder (asi/34063) (pictured with me, right), was loudly applauded by his team members for expertly guiding the company through an unprecedented period of change, acquisitions and re-branding. As I said during my speech, talk about daring!
Throughout the show, it’s been great to talk to people and to hear how bullish they are on the second half of the year. Suppliers and distributors alike are very positive on our industry and are looking forward to a stronger finish than ever.
ASI Chicago took place Tuesday, July 15, through Thursday, July 17, at McCormick Place and featured 750 exhibiting companies – including numerous Counselor Top 40 suppliers and 105 exhibitors new to Chicago this year. Total distributor attendance was more than 4,300, from distributor firms based in 42 states and eight countries. The show is the largest ad specialty trade show of the summer.
The reviews were excellent:
One of many special benefits ASI members could take advantage of included free education, which featured strategic sessions on scoring sales as well as a new Screen-Printing Success Track, part of ASI’s new relationship with ST Media, sponsored by Workhorse Products. We also unveiled the new Signage + Decoration Pavilion, produced in partnership with ST Media, featuring well-known equipment companies and live education allowing attendees to explore niche sales ops and speak to experts in potential new markets.
Exhibitors were delighted with the show because it gave them a terrific opportunity to display their latest, greatest products, talk to numerous distributors and discuss creative ad campaigns. Jennifer Grigorian from Hit Promotional Products (asi/61125), said, “The ASI Shows deliver very good traffic. We always leave with new relationships and really benefit from spending one-on-one time with our customers.”
The show also featured the debut of the #ASIpromocar, an “Art Car” decorated with a variety of promotional products donated by ASI suppliers and driven 750 miles from ASI headquarters in Philadelphia to the show, where it was on display and available for people to sign and get their photo taken.
The car is intended to drive attention to the creativity and ingenuity in the promotional products industry, and it was a big hit. I sure hope everyone got the chance to see it – and to sign it! (See ASI’s Matthew Cohn signing at top). Now, all we have to do is drive it safely back to ASI headquarters outside Philly. I’m very happy to report we only lost a single pen during the drive out. I’m now taking bets on how many we’ll lose on the trek back.
An unprecedented roster of business and leadership trailblazers includes Steve Wozniak and Peyton Manning. For information on exhibiting or sponsorship opportunities, contact Karen DiTomasso, vice president of sales, at firstname.lastname@example.org.