Welcome to the 2001 State of the Industry report. It’s bigger – and we think better – than ever before. For the first time, our research on the promotional products business has required a special 13th issue of The Counselor. We’ve covered the industry’s important trends, such as mergers and acquisitions, changes in capital investment, labor issues and clients’ buying behavior. We’ve investigated who’s using the Internet and how. We’ve also determined what Internet strategies might be having a positive effect on sales growth and profits, as well as those that are less effective.

We’ll be talking about competitive issues, emerging markets, sales growth and declining fortunes, as well as the key factors influencing profitability. For example:

Growth And Competition

Promotional products is a robust, high-growth industry, so it isn’t surprising that even in the midst of a mild economic downturn, sales increased last year. According to Promotional Products Association International, distributor sales hit $17.9 billion in 2000, an increase of nearly 20% over the previous year. More and more, it seems, end-users are discovering the powerful impact of promotional products for a variety of business needs.

Yet despite that continuing growth, some distributors and suppliers noted a slowdown in 2000. The changes weren’t dramatic, but they are worth noting. What’s behind it? It may reflect the natural maturing of the industry, but it’s more likely these are temporary effects connected to the general ebb and flow of the economy.

It’s interesting that both distributors and suppliers saw their major competitors as other distributors and suppliers, respectively. But it isn’t just about getting a bigger piece of the promotional products pie, it’s also about making that pie bigger for everyone.

What can be done to ensure that the promotional products industry will get a larger portion of customers’ promotional budgets in the future? Surprisingly, many respondents remain in the dark about the other forms of media and promotional tools vying for the end-user’s promotional dollars.

Make It Your Report

This year’s State Of The Industry report has something for everyone. More important, it will help you do a better job managing your business, serving your customers and uncovering new growth opportunities. It will give you insight into the trends that are changing the face of the industry and help you prepare for the uncertainty of the future.

When you’ve finished reading and digesting all this new information, please take a moment to send us some feedback (e-mail Counselor editor-in-chief Richard Kern at rkern@asicentral.com, or send a fax to (888) 287-6298). Are there important research questions you would like to see covered in depth? Are there significant topics that should be addressed in the future? Was there something that you particularly liked or disliked about this year’s report? Remember, the promotional products industry is your industry; your involvement can make a difference.

Dr. Marjorie J. Cooper is a professor of marketing at Baylor University in Texas. She serves as a research project consultant and instructs within the Promotional Products Association International.

Four questionnaires made up the 2001 State of the Industry survey, two distributor and two supplier versions. The first mailed in January covering a range of operations and marketing/sales questions. The second mailed in late March, focusing on finances.
The surveys were sent to 12,500 ASI-listed distributors who receive Briefings newsletter and to 4,000 ASI-listed suppliers.
Responses were sent to Dr. Marjorie Cooper, professor of marketing at Baylor University, who then input and analyzed the data using Apian Survey Pro software. The charts on this page provide some insight into the participating companies.