Resilience of Ceramics Provides Long Lasting Opportunity
By the time the calendar rolled over to the new century the promotional products market was saturated with various types of drink-ware. By the time the calendar turned to 2010 it had reached a point where every single manufacturer in the industry produced the same goods over and over again. A few suppliers like MB Works broke outside the normal mold but none of the major players provided significantly distinct custom drink-ware.
That is until the fall catalog which is about to be released by Leed's which will knock the ball out of the proverbial park. They had already introduced a few new ones this year but the Mega Double Wall Ceramic Tumbler with Wrap adds not only a great looking piece to the line but also one with a giant capacity. They went ahead and included a vinyl wrap and a gift box which makes it very easy to provide this as a handout at a trade-show or corporate event. The price point is set a bit above that of competitors but what you get from this manufacturer is absolutely terrific service.
At about the same time Pendolare Double Wall Ceramic Tumbler brings a first of the kind wrap. Up until now almost all being offered were vinyl which provide some insulation and a gripping surface. The Pendolare Ceramic Tumbler uses neoprene which has very good insulating properties, looks and feels great on the hand. It also tends not to slip which was a drawback on some wraps from lesser brands. Like the earlier model it includes a gift box and large capacity. Standing at about 6.5" tall without the lid this custom tumbler matches the lid to the wrap. With both of these products the wrap will always match the silicone lid. With the neoprene most will go ahead and imprint in white while with the vinyl wrap the deboss will look best.
Drinkware continues to sell despite the recent slowdown. This is likely because it is actually useful and can be justified as a purchase that will do more than sit on a desk. The end user recipient will almost always keep the tumbler in use for a significant amount of time. One thing to make sure you mention to end users is whether or not the drinkware is dishwasher safe. Ceramic is dishwasher safe in almost all cases but please keep in mind the logo is not dishwasher safe and over time it will wear off. In reality you will probably get years out of the imprint before it washes off.
As we mentioned in an earlier post American Apparel is apparently stumbling in a major way this evening. It is widely rumored that a larger competitor may swoop in to buy them out much like what happened with Bic and Norwood.
Top Five Supplier American Apparel Circling Drain?
The news was already bleak for ASI supplier heavyweight American Apparel early this year when it was revealed the company was close to triggering stipulations in loan agreements. The potential problem was averted when the debt was restructured in favor of a higher interest rate note. All that apparently did was buy some time for the inevitable debt crush.
The stock was hammered today as the company warned that it is facing a serious liquidity crisis. As the NY Times indicated in an article today on American Apparel which indicated they are all but out of options. Despite a reasonable uptick in sales industry wide this year they have reported sharp sales decreases. Without speculating much on the reason it could well be that the hypersensitive distributor model they have had for the last few years has failed and catering to skinny teens will not buy you strong sales among older executives. They also report that they will not file a timely report and therefore will likely be delisted.
It was just four years ago that 60 minutes hailed American Apparel as a made in USA success story but very clearly it was all smoke and mirrors. The company was always highly leveraged and was unable to adjust like other heavyweights like Broder Bros. was able to do in 2009. It is an unfortunate case of too much too fast as the company opened expensive stores in premium locations instead of hoarding cash in a recession. The unfortunate aspect of all of this is that more jobs are likely to be lost in the US.
Getting Through the Checkpoint Just One Hurdle
I think yesterday was the day that I came to the conclusion that people are in general crazy. A flight attendant loses complete control and goes so far as to pull the emergency chute on a plane and people barely blink as this type of silly behavior is almost normal. All of it points to the accumulation of stress as the supposed economic recovery is a total disaster and people are simply beginning to lose any hope of a more positive future. With confidence in the economy plummeting among consumers and small businesses there is very little chance the economy will avert a second slide.
With stress aversion a major factor in my life I have begun to look for ways to make my travel time easier. About three years ago I saw a well dressed business traveler fly through security with a laptop bag that zipped open for easy access. Meanwhile I had to take my expensive laptop out of the bag and leave it in the hands of a fumble handed TSA inspector. Leeds has recently released the Verve Checkpoint Friendly Compu-Messenger which doubles as both a simple everyday promotional messenger bag and a computer case. Beyond the basic features of a full zip laptop compartment it has other features that make your day easier such as the earbud port for your iPod. With a slightly larger capacity for the typical wide screen the Summit Checkpoint-Friendly Compu-Case has a bungee storage area on the front of the case for odd shaped items like water bottles or umbrellas. I particularly like this simple and inexpensive feature as I stick everything from bottles, hats, towels and even the neck pillows I utilize while flying. Consider putting a bundle together by asking your distributor to provide other imprinted items that may fit into the bungee area such as a throw towel. Quite often you will be able to obtain these items for a discount and the impact with your customer will be dramatic.
There is very little hope for the domestic economy. Wall Street made a lot of money in the first half with the market rising as much as it did but the rest of America is suffering. The stimulus high is rapidly wearing off and all signs point to drooping confidence in any sustained recovery with most small business owners now believing we will drop back into a shrinking economy later this year. The perfect storm of factors continues with consumers saving more each month, using less credit and in general being uncertain about the future. This will only lead to lower sales down the road in the all important retail sector which in turn will only make the situation worse as we head into the later half of 2010. Without a strong retail outlook the holiday jobs will not come again this year and without those jobs there goes a lot of holiday spending. There is now very little that can be done and much like Japan in the 1990's we appear to be entering a lost decade where we have very little real growth and very little opportunity to change what is happening. Companies like 4imprint which are actually foreign companies selling in the US continue to grow at strong rates while the rest of the small American businesses suffer.
Gemline Back with Backpack Inventory
While the rest of the promotional products industry struggles terribly with inventory issues brought on by difficulty in securing shipping containers Gemline has taken steps to circumvent the problem. Although how they have been able to maintain sufficient inventory is still a mystery the fact is they have stock that is of sufficient depth to keep thousands of promotional items distributors happy.
There have been widespread complaints that many of the top 5 PPAI suppliers are basically without inventory in many key categories. Gemline on the other hand, based out of Massachusetts, has been able to maintain consistent levels of stock. Unlike others when they launched new products this summer like the Atlas Computer Backpack they made certain they had enough of each item to fill major orders. The product initially arrived with almost a 1000 pieces available in each color and a month into rapid deliveries they still have almost 400 pieces. Contrast that with another major brand who to this date has never had stock for items they put on sale in January. The Gemline Impulse Backpack will surely be a strong player in the segment as it is available in three colors. Again Gemline took the needed steps to make sure they have thousands of pieces in stock with thousands more due next month. Take a look at the other major players and you will see they have actually removed the inventory function from the public side of their sites as the delays are so substantial.
Gemline has always been a top rated supplier but you have to wonder why they have been able to keep items in stock while Leed's and Bullet have not. Prime has had significant inventory to sell and yet Norwood is often out of stock. Bic is in the middle of moving factories and still has no problems while basic products are gone from others in the big five. Sure freight costs have increased dramatically but something else is clearly at work whether it is terrible planning by promotional products buyers on the supplier side, or the unwillingness to pay the increased freight costs. Either way it's a sorry day in the industry when the few sales that are out there are being lost to no stock.
Promotional Coolers Carry Your Message All Year
When most people think of buying promotional coolers they think of them as a summer item. Truth is they are one of the most widely used promotional items throughout the winter because they are often taken with the end user on vacations. When they are not being used on vacations during the colder seasons they often end up by the pool, next to a beach chair or while camping. These are all ideal locations for someone to discuss the logo or message on the cooler and for people to ask more about where the item was purchased.
Gemline has long been one of the industry leaders in custom coolers. This month they have released a series of new products geared towards the budget minded shopper but also looking for a quality promotional cooler. Starting at the lower end of the cooler spectrum the Catalyst Lunch Cooler has all the benefits of other mainstream corporate coolers but comes in at a lower price and with more colors available. One of the real limitations in past years has been the fact that most coolers were available in black of blue. Gemline was one of the first to market with vibrant colors and has continued that this season. In addition they are one of the first to market kid friendly promotional products that are actually CPSIA certified with PDF certificate files available for download on their site. Like the earlier model the Laguna Lunch Cooler has the same certifications and is also made from people safe non-PVC lining. What I like about all of their coolers is the construction which usually involves heat welded seams which hopes to keep the cold in and more importantly melted ice on the inside so your car or house does not end up soaked.
Gemline has gotten particularly aggressive with the mid-year launch after contracting the number of products heading in 2010. It is possible we will see more items released as the year goes along. Unlike some of the other major manufacturers such as Leeds and Bullet Line which continue to suffer from inventory problems Gemline is poised to deliver products in a timely fashion as we cruise into July and August. When you are comparing coolers and especially coolers that may be given to children the fifty cents you may save on the bargain brand may backfire when your client realizes you saved a few cents and in turn sacrificed their safety. Giving customers a potentially dangerous cooler does not relay a message of caring about their business. When looking for your next promotional cooler give Gemline a good long look.
Promotional Products Industry Plagued By Inventory Problems
One of the major challenges facing the promotional products industry as we head into the middle of 2010 is the absolute lack of inventory available from major ASI suppliers. This is mainly the result of poor planning or inability to see the return of the economy in the first months of the year. But it is also partially attributable to problems with cargo containers leaving Asia. That leaves distributors in the difficult position of not being able to provide new products to customers.
And there are a good amount of new products hitting the market this month. Leeds a division of Polyconcepts has launched an entire umbrella line. One of their newer offerings the 41" Classic Folding Umbrella is the very first custom printed umbrella Leeds has ever offered. This is one of the first major leaps for Polyconcepts into a new market since they launched their technology line several years ago. The umbrellas are scheduled to arrive in the coming days and as of this point there are no reports of difficulties in transit. Meanwhile over at Bullet Line which is another division of the same parent company they have expanded their custom caps line. Do you remember the big foam hats with a mesh back that were so popular thirty years ago? They are back with a vengeance and the Solid Cotton Twill Trucker Cap is one of the additions to the offering this year. Almost all of these hats and caps include custom embroidery in up to 7500 stitches which will cover almost all users. A nice aspect off the foam hat is it presents a large decoration area, almost a billboard for that matter on the front.
It remains to be seen whether or not the big players in the industry will have problems with freight as the year goes along. We should also be clear on another point. It is not that the containers are totally unavailable it is that the prices have gone up so much for immediate shipments as they bring capacity back online that some manufacturers are electing to wait it out. In some ways you cannot blame them if the alternative is shipping products that will eventually result in a loss or diminished profit. Combined with what were some of the higher fuel prices in the past few years once products arrived in the States there is no choice for some producers but to wait it out. Several of the major players have taken the time to write to their distributors explaining the shortages and this has gone a long way to repairing relationships and it also helps distributors maintain honest relationships with their end user clients.
As many of you may have read Google has announced that Caffeine is complete. Like so many others online I have noticed a steady decline in the quality of search results. One can only hope that in the coming weeks and months they fine tune this new product to bring it up to earlier higher standards.
Culmination of Factors To Slow Ad Specialties Markets
The fourth quarter of 2009 and the first quarter of 2010 caught a lot of the promotional products suppliers off guard in terms of growth and overall interest. As a result most are expanding up production and imports to compensate for the lack of inventory many suffered from into May. The only problem is that the economy is likely to stumble as we approach summer thanks to the effects of government stimulus wearing off and higher energy prices. Indeed in many parts of the country gas has hit multi-year highs.
With the increase in gas prices we will once again see people practicing staycations this year. You have all heard the term now, instead of expensive trips people are electing to stay local. This is where the Dunes Outdoor Game Set comes into play as it provides a unique branding opportunity on an item that has already sold out through May. In fact this multiple piece set has been so popular so far it may well end up in short supply into June. The true advantage of this type of corporate gift is that it provides a kid friendly summer promotion. The Laguna Game Set which also is manufactured by Leeds has a slightly higher price tag do to the increased number of game pieces and does include the almost popular chess and checkers. More importantly both game sets include a kite and beach ball as well as the Velcro paddle toss game. The toss game is similar to the more extensive paddle ball game you have seen played on beaches for years. Rather than decorate each piece in order to keep the acquisition costs down the carrying case or backpack is decorated. This is both convenient and also not nearly as intrusive.
The problem to date with both of these game sets is stock. The manufacturer which is owned by Polyconcepts, continues to have severe stock issues partly attributable to the increase in economic activity. As a result container ships have been delayed and that is resulting in long delays in getting products onto warehouse shelves. It is still a little surprising that vendors were caught off guard particularly in light of how strong the economy was at the end of 2009 but that is where we stand today. There are solid signs now that growth is slowing and with the increase in inventory dollars being spent and the subsequently increasing amounts of cargo capacity to and from Asia the favorable news is that stock issues should diminish as the year moves forward.
Getting Lost With Ceramics
This will be a two part and highly random entry due to the complexities of dealing with children on Spring vacation. For some States the break was last week but here it falls during this seven day period making it among the most challenging times of the year as a parent and a professional marketing executive.
The title of todays post is a play on words from the show Lost which at this point has me totally confused and lost as to whether or not I even enjoying watching it at this stage. The ceramic portion comes from excitement that the Promotional Double Wall Ceramic Tumbler has finally begun to show back up on the shelves of industry manufacturers. It is still a bit of a puzzle as to why these particular tumblers took off in popularity. Ceramic obvioiusly has the advantage of being a better insulator than less durable materials. It also has the unfortunate property of being able to break easily As a result most suppliers will only ship in specific and preset quantities with Hit Promo requiring seventy two piece increments. This makes sense given the fact that they are packed in 72 piece lots and removing even a few of those pieces would weaken the structure that comprises the shipping container. Whatever the issue these tumblers were gone in an instant from almost every manufacturer that made them and are only now beginning to return. Shipping problems with these products getting out of Asia delayed restocking. Afraid of a repeat performance later in the year we are seeing most of the big players bringing in stock approaching six figures in value which should relieve the shortages. Hit Promo is leading the way by undercutting the others in ounce capacity which has allowed them to cut their cost and starting price point.
Now back to part two of this entry. What is going on with Lost? Tonight appeared to be one of those episodes where they had about twenty minutes of material for a forty minute show. It brought back memories from the middle years of the show where we would watch and wonder why the show was moving so slowly. Tonight had all the normal metaphors but very little substance. I am sure when we are all watching it on the networks years from now on some weekend marathon it will make more sense but it has continued to waiver to the point of being almost difficult to watch. With only a few episodes left let's hope it comes to a meaningful if not already predictable conclusion.
Please take a minute to read some of our earlier entries such as Keeping the Message Cool and the on topic insulating business growth with ceramics for additional reviews. We will be adding multiple reviews of new products in the coming days.
Simple Marketing Efforts Sometimes Effective
Day in and day out we are hit with advertising messages that are at times becoming so complex they are flying above the heads of the intended markets. Although these types of "thinking" marketing efforts can be very effective they have their place and time. With the economy the way it is today even organizations that are doing very well are reluctant to spend money in a way that may be viewed as frivolous. Think of what happened with the major bank last year that was going on a golf outing while borrowing money to stay in business.
That leaves three real possibilities all of which have their advantages. First a business can elect to not advertise at all. Obvioiusly this is not the ideal approach to gain market share. A second option is simply to spend less. The promotional products market is being dominated right now by products like the Fuzz from Leeds. A couple of years ago nobody would have even taken a look at this product at the top firms. They would easily have passed it over for more premium items. Lint brushes are hardly the giveaway of choice for top executives but they will carry a logo and do it in an economical manner. Along the same lines the lightbulb keychain has all of the virtues associated with LED type keychains which can provide an end user with safety at night but is affordable and will not be viewed as breaking the bank. A final approach would be to replace an item used on a dialy basis such as the Leeds Double Wall Ceramic Tumbler which can be used in place of a regular coffee cup. The advantage of this type of approach is that it serves two purposes, first it reduces the cost to the end user employee or client and actually helps to decrease the amount of trash and second although it is a premium item it does not carry the baggage a high end leather or desk gift might.
Meanwhile the imaginary world our politicians live in continues to provide evidence on a daily basis that the disconnect grows. Treasury Secretary Geithner indicated on the Sunday talk shows that the economy is growing more rapidly than they expected. Of course he glossed over the 10% unemployment rate, growing commercial real estate problem and also increasing fuel prices. These are all factors that are going to continue to impact families and as a result will temper any recovery. Instead we will be left with a recovery that has fits and starts much like we saw at the end of 2009. In addition there appears to be no acknowledgement of the shift going on overseas. Instead of shipping products to the USA we are finding factories overseas are either holding containers or are shipping products elsewhere to economies that are recovering more rapidly than we are domestically.
To see more of the Leeds product line take a look at Leeds site. They offer over two thousand promotional products and the number continues to grow each day.