Retail Brands Crossing Over to Corporate Channels
The number of retail brands crossing into the the corporate channels continues to accelerate. However the number of retail brands pulling out of the corporate markets is also on an upswing as failed launch after failed launch continues to doom otherwise successful companies.
Ping made a splash a few years ago when they decided to sell their popular apparel line in the corporate markets. In choosing Sanmar as their main supplier for the industry they choose a business with a long standing reputation within the market. By going with a top 5 ASI Supplier they essentially guaranteed maximum exposure and a deep network of sales and marketing reps. There appeared to be tremendous upside but sales lagged and it was announced earlier in 2009 that Ping would be leaving the corporate market entirely. One of the problems encountered stemmed from the need of Ping and subsequently Sanmar to strictly enforce prices in order to protect the retail golf network. Those efforts are never popular with distributors and in the end the outcome was predictable.
Other moves into the market have been more successful. Scripto partnered with top 5 supplier Leeds in 2009 to release a line of branded writing tablets and low priced budget pens. Although sales have reportedly been going strong the potential cannibalization of existing product lines will be a going concern. For instance the Scripto Jr. Journal Bundle Set is available with a decorated pen for far less than the cost of just a journal from many other vendors. The problem may be that it is also much less than similar items within the same brand. Where they may hit it out of the park is with items like the Scripto Constitute Click which is an ergo pen with large grip similar to much higher priced retail competition for significantly less. For those looking for ergonomic pens the Scripto Scroll Click has the "pro grip" which mimics what is available from retail brands. The idea behind the pro grip is comfort and style. It is also an accent point on the pen which at this price is expected to compete directly against products from Bic and Sandfords Papermate line. Other brands have been folded into the main lines and the result is products such as the Bamboo USB Flash Drive 1GB which are among the many products available in time for Earth Day.
It has not all been a success for Leeds. Last year to much fanfare they released the Karim Rashid line of products. This year they are down to just two and opted to not expand the line at all. Although the brand has some distinction in the retail channel it failed to carry over into the corporate markets and fell flat.
Safety Goes Mainstream in Ad Specialties
It finally appears that the trend towards environmentally friendly promotional products has taken firm hold in the promotional products industry. With the release of so many promo products from brands like Sweda and Norwood that are without a doubt eco-friendly the last remaining hurdles involved lead and BPA.
The threat from BPA is still debated but consumers had already decided they did not want products with BPA and sales of BPA containing items fell through the floor in 2008. As a result many suppliers began producing goods for release in 2009 that were "BPA Free" and these goods are now readily available. The question of whether BPA is safe or not is no longer relevant as BPA free alternatives such as the Excursion BPA Free Sport Bottle are easily to find and affordable. Most of these bottles are made from a type of rigid plastic but several are now arriving that have been developed by a division of Eastman. These materials are virtually indestructible. The Paradise Sport Bottle is one of the bottles made from the newer materials and was combined with a neat contoured handle to make it easy to carry. PromoManagers has released dozens of BPA Free Sport Bottles and most are available at discounted shipping. Custom Stainless Steel Drinkware is almost always BPA free as well but you do have to watch the interior liners. Luckily almost all the products currently in the channel are free of the chemical.
Next up will be guarantees that items are without lead. This started to happen last year but most distributors quickly pulled any such verbiage as it is impossible at this stage to be absolutely sure and providing a false sense of security can be harmful. The best advice we can give is treat all products with care and keep any shiny metal type trinkets away from young kids mouths. If kids do play with them make sure their hands are thoroughly cleaned afterwards.
Tomorrow we will be discussing the dangers in printing ink used in many products and what can be done to mnimize the risk. Check out our earlier article on Green Promos in Time for Earth Day.
Green Promos in Time for Earth Day
I am a huge fan of environmentally friendly promotional items. I am also a fan of socially friendly items that only come from areas and manufacturers who take the time to check on the quality and also verify the products are being made in a socially acceptable facility. All too often products are coming from factories half a world away with little concern for product and labor safety.
Just in time for April comes the release of several recycled promotional items that actually have great looks and are built off of previously successful models. The Recycled Cotton Expo Tote features strong handles and is made from recycled cotton. Built off of the hit Expo model this tote has a large carrying capacity and can double as a shopping bag. The Recycled Cotton Zippered Tote keeps true to the namesake by having a solid and smooth zipper and enormous storage capacity. What I like about this tote is that you can use the multi color imprint method from Gem that keeps costs down over traditional multiple color imprint methods. With the constant barrage of commercials today from the major shopping chains promoting reusable shopping bags there has been great demand for products such as the Recycled Cotton Market Bag which has 22" handles that can be used over the shoulder or as a traditional arm carrying. For those looking for a little more color in a tote the Accent Tote provides several exciting colors and multiple decoration locations. There is even the opportunity to decorate with embroidery which is somewhat rare in the lower price range.
The economy continues to stumble with no clear sign of a recovery in sight. The markets took a beating today due to continued fear about the automobile industry and the potential for eventual failure. Combined with poor data from around the World the equity markets slumped over three percent. There is little hope for an immediate recovery but the idea continues to be promoted of a recovery in the second half of 2009. Although this seems somewhat plausible one has to keep in mind the millions of jobs lost and the jobs we continue to shed each week. With home prices continuing to coast down and with so many out of work the drag on the economy will continue to be severe. Efforts to promote the economy and spending will include tax breaks on car purchases, overall tax breaks and even home purchase rebates. The problem ultimately is that with so much of the world suffering through difficult economic times there is little hope for meaningful recovery soon. As I discussed in Marketing Your Way Through A Recession the best course of action for many will be to continue to aggressively market their businesses in these tough times.