Promotional products industry characterised by differences in market development.
PSI emphasises role as most important European industry trade show
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D?sseldorf. The economic situation and mood in the international promotional products industry could hardly be more different and inconsistent. The economic slump in Southern Europe leading to heavy losses especially in Spain, Italy and Greece is increasingly affecting the European promotional products industry as a whole. The market in the German-speaking countries is stagnating as well. Isolated impulses for growth come from the USA and the Middle East only.
 
Although with 13.772 visitors (previous year 16.167) and 963 exhibitors (993), the trade show could not achieve last year’s figures, PSI emphasised its position as the central institution in the industry. “In this difficult market environment PSI succeeded in proving its role as the most important European industry meeting place and innovation driver”, PSI Director Michael Freter said at the close of the 51st PSI. During the three-day trade show, exhibitors from 32 countries had presented trends and innovations in the promotional products industry.
 
“The situation of the promotional products industry especially in Southern Europe is extremely difficult. We are talking about drops in turnover of up to 50 percent here,” said Hans Poulis, CEO of the European umbrella association EPPA. An impression confirmed in the course of the trade show, as J?rg Dennig, Managing partner of JUNG Bonbonfabrik, expressing the views of many companies, states: “This industry is also a mirror reflecting the current economic situation in Europe. Smaller numbers of walk-in visitors at our stand were therefore to be expected. Still, quantity does not equal quality. As it does every year, however, for us the trade show has the positive we expect from it.”
 
This year’s PSI recorded increases in the number of visitors from the Middle East and the USA. More than eleven percent of foreign visitors – more than ever before – were intercontinental visitors this year. In many cases they brought a noticeable fresh breeze, as for instance Jane Jackson, Vice President Marketing, EMEA/Fruit of the Loom, emphasises: “The quality of these visitors is excellent. We succeeded in establishing many very good customer contacts with the Middle and Far East – simply brilliant.”

The German market is proving largely stable. A total of 3.47 billion euro (previous year 3.46 billion) was spent by German advertisers on promotional products last year. These are the findings of the industry monitor presented every year at PSI by the Gesamtverband der Werbeartikelwirtschaft (GWW). With this figure, spending on promotional products ranks even before expenditure on radio spots or online advertising as the third element in the advertising market.
 
The situation as reflected in the independent and representative national PSI business index which was compiled by a market research organisation during the trade fair, is therefore less gloomy, although not relaxed: in contrast to their colleagues from Southern Europe, almost 45 of the promotional products distributors from Germany anticipate a continued recovery of the market, another 31 percent expect the market situation to remain at least stable; only 13 percent expect business to slacken in the medium term. This had a positive effect on ordering which was noticeably stronger in Germany than the European average.
 
The 52nd PSI will take place from 8 to 10 January 2014 in D?sseldorf.
 
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