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Sales Promotion Services

Sales Promotion Services

Brief Excerpt from Industry Overview Chapter:

Companies in this industry provide promotional products imprinted with the name, logo, or marketing message of clients. Major companies include BDA, HALO Branded Solutions, and Staples (all based in the US), as well as Aimia (based in Canada), Cimpress (Netherlands), and 4imprint (UK).

The promotional products industry reported global sales of more than $23 billion in 2017, according to a report from trade group Promotional Products Association International (PPAI) and research firm Relevant Insights. About 30% of raw materials and products sourced by the promotional products segment come from China.

COMPETITIVE LANDSCAPE

Demand is driven by economic growth and by corporate profits. The profitability of individual companies depends on efficient order fulfillment and marketing. Large companies have economies of scale in procurement and the ability to offer other marketing services. Small companies specialize by type of sales promotion product and differentiate themselves on customer service, particularly speed of delivery. The US industry is fragmented: the top 50 companies account for about 40% of revenue.

Sales promotion products are often viewed as discretionary expenses that can be cut during economic downturns. Competition comes from office supply stores, print shops, and ad agencies that offer promotional products as part of larger, integrated marketing programs. These competitors may be able to leverage their brand recognition and existing relationships with customers to expand into sales promotion products.


Industry Overview
Quarterly Industry Update
Business Challenges
Business Trends
Industry Opportunities
Call Preparation Questions
Financial Information
Industry Forecast
Web Links and Acronyms

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