Promotional Merchandise Industry Forecast for 2012

The forecast for the promotional merchandise industry in 2012 is a very positive one, with many factors coinciding to create opportunities within the sector. The biggest factor is set to be the London Olympics which will be providing countless possibilities for merchandising. Although the UK Government has a London Olympics Act that is designed to prevent ambush marketing and non-sponsors from cashing in on the event, brands will still be able to lever the event given the breadth of opportunity sport offers.

Shortly after the winning bid was announced Richard Wood, CEO of the bpma, expressed his optimism over the effect the Olympics would have on the promotional merchandise industry in an article for Brand Republic: "The success of London's Olympic bid is a major boost for the promotional merchandise industry, and opens up opportunities for a vast range of products and related activities from commemorative and souvenir items to sponsorship and incentives.

"Sports sponsorship and event marketing have become ever more attractive alternatives to TV advertising. The Olympics will be a major money-making machine for many UK Sales Promotion companies, which will be producing innovative merchandise tailored to fit the Olympic brand identity."

Andrew Dwerryhouse, Managing Director of Wild Thang, a leading supplier of promotional merchandise, has a positive outlook for next year and the opportunities the Olympics provide: "I hope that 2012 will be Wild Thang’s big year, some Olympic merchandise opportunities would be nice so we can get creative with the 2012 brand. We are confident the Olympics will have a positive impact & may even kick start the UK’s economy.

"I really, really hope that customers realise that the lowest price generally does not always deliver the best quality or product. We expect to see some more industry companies disappearing in 2012 directly as a result of the margins they are working on, which will be no great loss. Great service, ethical trading, innovative products & creativity all come at a price.

"The industry as a whole really needs to start to educate the marketers on the importance of promotional merchandise & corporate gifts within the marketing mix rather than being an after thought. The bpma has just released some market research proving all merchandise really should be part and parcel of every marketing campaign or marketing budget.

"Wild Thang says bring on 2012!!!"

The industry will have an outlet for educating marketers at the brand new Promotional Merchandise Show which will be launched within Marketing Week Live 2012. The show, in association with the bpma, will take place alongside the existing Marketing Week Live Shows - the Online  Marketing Show, the Data Marketing Show, the In-Store Show, the Insight Show and the newly expanded Customer Motivation and Loyalty Show on the 27th and 28th of June 2012.

In its 2011 edition, Marketing Week Live introduced the Promotional Marketing Village, set up by the bpma. Due to its huge success and contributing to the overall 26% increase in visitor numbers, in 2012, the village will be turned into its own branded show, three times the size. It will include an educational programme that will host leading brands demonstrating how the use of promotional merchandise can contribute to the overall retention and acquisition strategy.

Paul MacDonald, Portofolio Director, explains: “The show will be very much positioned as part of Marketing Week Live with suppliers and global brands showcasing how promotional merchandising is an integral part of any marketer’s strategy. Promotional merchandise is as important as any other element of the modern marketer’s role, which is why we wanted this area to be suitably represented at the show.”

As technology advances, marketers have more and more ways to communicate with their customers to sell products or services, which has made competition for marketers’ time and budget incredibly aggressive. Developments in digital printing have also made the promotional merchandising industry grow; in fact digital merchandise has been one of the fastest growth sectors over the last few years. Nowadays, thousands of products can be themed around a campaign, and the Promotional Merchandise Show will be a way for visitors to find out how to position promotional merchandise as part of their marketing strategy.

Gordon Glenister, Director General of the bpma, comments: “Marketing Week Live is a great show and it is absolutely the right show for the bpma and its members to be part of. Not only are we raising the platform for merchandise, but we are also engaging with the right audience and educating them on how promotional goods can be used to further enhance brand identity and campaign return on investment. We are very excited to fully be part of the Marketing Week Live journey starting in 2012.”

Another encouraging aspect for the industry in 2012 and beyond is the increase in both event budgets and the number of planned events. Research by Ocean Media, organisers of the UK Venue Show and Event Production Show, revealed a positive outlook for corporate and municipal events in 2012.

The research of over 3,000 visitors indicated an increase in budgets for 2012’s UK-wide event programme. Respondents highlighted a projected increment in corporate event budgets of 10% year on year as end users and agencies seek to capitalise on 2012’s worldwide focus.

Those in the local authority sector also indicated more fluidity in budgets, with many planning events related to HM the Queen’s Diamond Jubilee.

The recent triumph of the bid for London to host the 2017 IAAF World Athletics Championships will also provide companies with many merchandising options.

All that is required is for promotional merchandise suppliers to capitalise on the opportunities provided by these events and the increased exposure promotional merchandise is receiving as a tool for marketing.

Lauren Cayless White,
Editor

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