Growing investments in memorable and customizable items to attract customers will lead to increased demand for Promotional Products

Promotional Products - Procurement Intelligence

Procurement of promotional products enables a business with enhanced customer loyalty, better exposure, faster brand recognition, and effective and optimized marketing. The global market size was valued at USD 90.5 billion in 2023. A large-scale, multi-media, comprehensive advertising strategy is crucial for businesses, but it can be expensive for small-scale businesses. However, they can still use a low-cost promotional goods campaign to meet their marketing objectives. Start-ups can find numerous inexpensive promotional things available. For large-scale distribution, the majority of promotional product producers maintain extremely economical/low prices. The impact on the receivers is great despite the inexpensive cost of the items. In addition, offering clients promotional goods makes it easier for them to remember and recognize the company. Also, the products can serve as a business card for any enterprise as they typicallly carry the image, logo, and business’s slogan depicting their goal.

Apart from technology and personalization, sustainability plays a major role during the procurement of these products. Customers are becoming more aware of how their purchases affect the environment, and the promotional products sector has been affected by this trend. Sustainable materials like bamboo, organic cotton, and recycled plastics are becoming more and more well-liked. As per a recent report by the U.S.-based promotional products community, business enterprises are substituting traditional industry products with eco-friendly alternatives, aligning their brand with sustainability practices.

Sustainability is no longer just a trend but a fundamental consideration for marketing campaigns; rather, it covers everything from offering biodegradable pens to recyclable bags. Furthermore, the need for promotional goods that work well with virtual and hybrid event formats is rising. Businesses are modifying their tactics to fit the digital environment, from branded items shown in online event platforms to virtual event swag boxes sent to attendees' doorsteps.

Real estate, education, and the financial sectors are among the leading end-users of the products offered in the industry. Professionals in real estate use the procurement of branded merchandise as part of their marketing campaigns. People in the community get to know them by attending events and giving away these entertaining things, and they can be taken into consideration for future real estate needs. In conjunction with social media, it's an ideal approach to building connections.

In the field of education, especially in higher education, promotional products are useful. These things make schools stand out when they attend college fairs, college expos, conferences, seminars, open houses, and other similar activities. Additionally, banks employ branded goods as awards and incentives for events like customer appreciation days and new account openings. Travel mugs, fidget spinners, stress balls, and plastic piggy banks are among the commonly used products.

The global market is dominated by North America, with Asia Pacific and Europe standing in the second and third places, respectively. In the Asia Pacific promotional products procurement arena, it is anticipated that the expenses incurred on marketing and advertising campaigns, such as promotional products, will witness growth of over 5.3% till 2025. Key economies in the region responsible for such growth include India, Japan, South Korea, and China. Notable examples of continuously developing Asian economies are Indonesia and the Philippines (and, to a lesser extent, Burma and Vietnam, where there is a substantial population and great potential for economic advancement). Some products in the Asian promotional product market are more sought after than others, such as personalized tote bags, trucker hats, work-from-home accessories and phone cases. Tote bags have a real hipster vibe because they are simple, practical, and incredibly fashionable. Tote bags are a significantly less expensive way to hold stuff than typical bags, whether a person is traveling to the food market, shopping with friends, or even just going out to a bar.

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Promotional Products Sourcing Intelligence Highlights 

• The global promotional products market is highly competitive, exhibiting a fragmented landscape with the presence of a large number of regional and global players operating in the industry.

• Suppliers in the industry possess a low capability to negotiate with buyers as the latter have an edge to choose the supplier of their choice due to the availability of a large supply base and low switching cost. Therefore, the suppliers are bound to stay soft in terms of pricing and product range.

• China is the preferred best-cost country for sourcing promotional products. The nation currently produces more manufactured goods than South Korea, Japan, Germany, and the U.S. combined, accounting for one-third of global production.

• Printing and engraving equipment, software tools, cost of the product, labor, marketing, rent and utilities, and others are the key cost components for promotional products. Other costs include storage and transportation, printing ink and toner, maintenance and repair, administrative fees, and tax.

Promotional Products Procurement Intelligence Report Coverage

Grand View Research will cover the following aspects in the report:

• Market Intelligence, along with emerging technology and the regulatory landscape

• Market estimates and forecasts from 2024 to 2030

• Growth opportunities, trends, and driver analysis

• Supply chain analysis, supplier analysis with supplier ranking and positioning matrix, supplier’s recent developments

• Porter’s 5 forces

• Pricing and cost analysis, price trends, commodity price forecasting, cost structures, pricing model analysis, supply and demand analysis

• Engagement and operating models, KPI, and SLA elements

• LCC/BCC analysis and negotiation strategies

• Peer benchmarking and product analysis

• Market report in PDF, Excel, and PPT and online dashboard versions 

Cost Intelligence Highlights

As part of the promotional products procurement intelligence report, Grand View Research has identified the following key cost components:

• Printing & Engraving Equipment

• Software Tools

• Cost of the Product

• Labor

• Marketing

• Rent and Utilities

• Others

  • Storage and Transportation

  • Printing Ink and Toner

  • Maintenance and Repair

  • Administrative Fee

  • Tax

Printing & Engraving Equipment forms the largest key cost component of the Promotional Products.

Promotional Products - Key Suppliers

• 4imprint Group plc

• American Business Forms & Envelopes

• BDS Connected Solutions, LLC

• Brand Addition Limited

• HALO Branded Solutions, Inc.

• HH Global Group Limited

• IGC Global Promotions

• iPROMOTEu

• Prominate Limited

• Smidt-imex

• Total Merchandise Ltd.

• VistaPrint