Navigating the Promotional Products Industry Successfully  

Editor's Note: This article was written for Promo Impressions. For more content on promotional products decoration, be sure to subscribe to the biweekly newsletter at PromoImpressions.com.

Sometimes, the most obvious answers to growth can be hiding in plain sight. While virtually everyone ponders, plans or takes action to expand their business, the solutions can seem to be complex and far away. Let’s see if we can identify some within the promotional products industry.  

For those standing on the outside of the promo market, like commercial printers or packaging converters, they see a vast opportunity in a growing segment that represents something adjacent, yet unfamiliar to them. 

For those already participating in the more than $26 billion marketplace of promotional products, they are very much aware of the opportunities, the challenges, and the ever-shifting sands of change that are both technologically and economically driven.  

“Where does ‘promotional products’ start, and where does it end?” asks Steve Leibin, president of Matik Inc, a North American supplier for SEI laser cutting and digital finishing equipment.  

An interesting question indeed. Especially considering the continuous impact of digital print and manufacturing processes that are required to feed consumer preferences for more on-demand manufacturing, more personalization, better buying, and easier ordering experiences. 

How Promo Suppliers Can Help Others Enter the Market 

Market knowledge of any specific business segment is often underrated as a strategic consideration. Establishing metrics, developing KPIs, setting goals, and objectives is a universal process, but in many cases, this still leaves the outsider without a sound foundation and missing the subtle issues that define the unique aspect of the business. 

"The Magnet Group provides full concierge-like services for commercial printers looking to enter the promotional products business segment, which allows for no capital investment and no inventory to manage," shares Dan Jellinek, chief revenue officer at Magnet, an ASI Top 20 supplier to the promotional products market. 

This approach not only minimizes production and economic risk factors for new promo market entrants, but it allows them to leverage an expert with the experience and ability to navigate the waters that drive promotional products commerce. In addition to that, full support and training are provided. Generally speaking, profit margins for promo product re-sellers can be significantly higher than what is achieved in many commercial print applications. 

Existing promo products suppliers can benefit from embracing this strategy, knowing that the world is finding a path to their door. Sometimes it’s better to participate than to play defense. Many have been providing these services already, but as new entrants increase, so does the need to fill the opportunities. 

Leveraging Different Technologies and New Products 

But as we all know, driving down the middle of the road isn’t always the easiest or most appropriate way to get started or from Point A to Point B. Some companies build their business model around being unique, bespoke, or groundbreaking. These objectives cannot be achieved via outsourcing or minimal risk strategies.  

“At Tiger Coatings, we are re-inventing different technologies that provide maximum durability for digital decoration, such as our TIGITAL Tattoo 3D print solution,” states Roy Pagan, key accounts manager, digital inks, Tiger Coatings - North America.   

Competitive core promotional products like ceramic, metal drinkware, and high-end glass specialty items can benefit from additional durability and increased tactile properties, while improving sustainability and extending the life of the product.

Cologne bottle printed using TIGITAL Tattoo technology. | Credit: Mark Pomerantz / TIGITAL Tattoo

“Glass has the perception of higher value,” observes Leibin. Whether it’s via direct print, decoration or engraving, digital applications on unique surfaces such as glass, acrylic, metal, wood and other non-traditional surfaces allow for a way to differentiate your offerings and find a product niche that can be defended. 

Consider Your Go-to-Market Plan 

That said, if you're new to promo, you must decide where your entry point will be first — to consider your go-to-market plan. As with any change or addition of a new business model, it’s critical to assess your existing channel. Are your current salespeople equipped, capable, or even interested in this opportunity? Do they need training, or is hiring a specialist the better direction? Or is a concierge the right solution for your team? 

Who is your marketing geared toward? Retail, end-user applications or industrial users? Showing products in real-life consumer scenarios is important. 

After considering all this, and making your business decision, only then should you begin to pursue the technology discussion. Is the equipment you are considering expected to be the centerpiece of your strategy, or the backroom workhorse?  

Jellinek has a fundamentally sound perspective: “We have the finest equipment and best technology to deliver our customers the best decorated product.” 

“Selling the effect, not the technology” is how Leibin describes it. SEI Lasers can be considered digital finishing, or if engraving can be considered an embellishment. The application is what truly defines the technology. 

Finding The Unique Value 

In the end, it’s about “bringing value to the object” confirms Pagan. On this, we can all agree. Whether you are a new supplier looking to enter the market or an established promotional product supplier growing their existing share, building a plan for growth must include tangible value within your own proposition.  

There are multiple choices to build the foundation of a plan. Focus on the business issues first, look internally at your sales/marketing capabilities, and then begin to assess technology investments, or partnerships, to achieve your objectives.  

As always, expand your perspective by tapping into your network, reaching out to your resources, reviewing industry publications (like this one!), and getting the additional advice you need.  

The world of promotional products is a large, dynamic, growing and profitable business. We can expect to see this continuing for the foreseeable future, so now is as good a time as any to consider your growth strategy.  

The convergence of markets and producers is an ongoing event, driven by digital processes, that affect virtually all print-related businesses. Consider how your organization, either as a producer, distributor, or OEM, can best take advantage of the momentum. Being a leader and leveraging your relationships is a key component and leading predictor of success!