Summary of findings from the BPMA's first Benchmark Study

Results from the BPMA's first Benchmark Study were released at the inaugural Annual Conference on the 10th July 2014 at the Park Inn, Heathrow. Over 120 participants took part in the online and telephone survey which found that over 70% of respondents are confident of business growth during the next year.

The survey was split among Small, medium and large distributors as well as medium and large suppliers based on turnover bands.

The study found that over 70% of participants believe that the demand for promotional merchandise is somewhat or much stronger than in 2013. 82% think the market is more competitive, with just 18% feeling it is about the same and no respondents believing it to be less competitive. Distributors are selling more pens, pads, notebooks, bags, bespoke products, mugs, IT and electronic items and clothing. They are selling fewer stress products, headwear, conference folders, leather products and novelty items. In terms of branding, screen printing is by far the most utilised method, with 70% of participants saying it accounts for more than 25% of their business. Full colour, digital, embroidery, transfer print and engraving follow in priority order.

The key sectors that distributors are selling to are Government and Local Authority, Agencies, Charities and Education. The Financial sector, Professional Services, the hotel and Automotive sectors also feature highly.

In terms of average quote to order conversion the study found that conversion is highest among large distributors at 44%, but lowest among large suppliers at 23%. Average order values are now around £600 to end user.

It’s no surprise that distributors still see the catalogue as their spend focus, but this is swiftly followed by Search engine optimisation. Suppliers feel that it is still the national shows and events where the majority of the spend lies. Social media has mixed usage, with Linkedin being the largest at 48% among distributors and 33% among suppliers. Participants are hardly using YouTube with just 2% using this medium.

Business confidence remains high with over 70% of respondents being confident or very confident of their business growing in the next 12 months.

Respondents also cited a number of challenges which remain across the industry. Cash flow still remains the number 1 challenge for smaller distributors, whereas getting stock levels right is the biggest challenge for larger suppliers.

Some of the suggestions to raise industry standards included an ethical trade approval stamp, a single brand standard for safety and compliance, better communication in the supply chain and more focus on quality rather than price.

The full report is available from the BPMA at a cost of £50.00 + VAT for members and £75.00 + VAT for non-members.

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