The BPMA launched its first benchmark study at its national Conference on the 10th July 2014 at the Park Inn, Heathrow. Over 120 participants took part in the online and telephone survey. The survey was split among Small, medium and large distributors as well as medium and large suppliers and based on turnover bands.

Over 70% believed that the demand for promotional merchandise is somewhat or much stronger than 2013. 82% think the market is more competitive, 18% feeling it is about the same, no one believes its less. Distributors are selling more pens, pads, notebooks, bags, bespoke products, mugs, IT and electronic items and clothing. They are selling fewer stress products, headwear, conference folders, leather products and novelty items.
In terms of branding, screen printing is by far the most utilised method, with 70% of participants saying it accounts for more than 25% of their business. Full colour, digital, embroidery, transfer print and engraving follow in priority order.

The key sectors that distributors are selling to Government and Local Authority, Agencies, Charities and Education. The Financial sector, Professional Services the hotel and Automotive sectors also feature highly.
In terms of average quote to order conversion it’s highest among large distributors at 44%, but lowest among large suppliers at 23%. Average order values are now around £600 to end user.
It’s no surprise that distributors still see the catalogue as their spend focus, but swiftly followed by Search engine optimisation. Suppliers feel that it’s still the national shows and events where the majority of the spend lies. Social media has mixed usage, with Linkedin being the largest at 48% among distributors and 33% among suppliers. Participants are hardly using You Tube with just 2% using this medium.
Business confidence remains high with over 70% of respondents are confident or very confident of their business growing in the next 12 months.

 

A number of challenges still remain across our channels. These are identified below. Cash flow still remains the number 1 challenge for smaller distributors, whereas getting stock levels right is the biggest challenge for larger suppliers.

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Some of the suggestions to raise industry standards include an ethical trade approval stamp, a single brand standard for safety and compliance, better communication in the supply chain, more focus on quality rather than price.

 

How to use the Report

The Report can be used in a variety of ways including the following:

• Read the commentary for ideas
• Refer to the tables for more detail on issues of particular interest
• Compare your own practices and achievements with those of other companies within your peer groups
• Share and debate the findings with staff
• Use the data to support the business case for projects you want to pursue
• Use ideas and data as inputs to strategy, planning and setting of targets

The full report is available from the BPMA at a cost of £50.00 + VAT for members and £75.00 + VAT for non-members.

 

 

 

 

 

Published on: July 22nd, 2014