Increase in Sales Amidst Industry Challenges: 2019 Counselor's Report on Rising Sales Encountering Worldwide Obstacles
The 65th anniversary edition of Counselor magazine's State of the Industry (SOI) report, published by the Advertising Specialty Institute (ASI), offers a comprehensive and in-depth look into the current state and future forecasts of the promotional products industry.
The report, first published in 1977, is considered the most important and influential in the industry. This year's edition includes a five-page pullout spotlighting the most impactful charts in promo, exclusive data on search trends, a unique look at company perks and policies, and forecasts for the next two decades.
According to Michele Bell, who manages ASI's editorial department, the 2019 SOI report demonstrates the promo industry's strength despite challenges like tariffs on Chinese imports. One such challenge was President Donald Trump's placement of 25% tariffs on $200 billion worth of Chinese imports in 2019, forcing many suppliers to consider price increases of 10-20%.
Despite these challenges, the promotional products industry continued record growth in 2018 with sales of $24.7 billion. The report provides exclusive data on trends, new products, emerging markets, and prime opportunities throughout the industry.
One such trend is the surge in searches for wireless chargers between 2016 and 2018, increasing by 3,010%. Another notable change is the shift in market share. T-shirts still dominate the promo industry, accounting for 15% of distributor sales - the largest market share for any promo product over the past decade. However, the drinkware category accounted for 9% of distributor revenues in 2018, up from 7.6% in 2017.
Construction moved up from the tenth largest market in 2017 to the fifth largest market in 2018, making up 6.5% of distributor revenues. Driven in part by increasing competition among schools, 12.6% of distributor revenues came from the number-one education market in 2018.
The report also offers profiles of the 2019 Counselor Award winners, including HALO Branded Solutions' Marc Simon as Person of the Year, Headwind Group's Chairman and General Manager Tom and Michael Hung as International Persons of the Year, and the exclusive revenue ranking of the top 40 distributor and supplier companies.
The SOI report also highlights the improvements in the industry's workforce. The median annual salary of a sales rep in the promo industry rose to $65,000 in 2018, up from $60,000 in 2017. Additionally, distributor owners enhanced benefits like health insurance and flexible scheduling in 2018.
Nearly 50% of distributors reported improved sales compared to 2017, and among distributors that generated more than $1 million in 2018 sales, 70% of them reported growth. Last year's product of the year, the fidget spinner, dropped from its number-four ranking in ESP to number 222 in 2018, but the report suggests that the industry is constantly evolving and adapting to new trends.
The signature issue, the State of the Industry (SOI) report, is available in print and online each summer. This year's report is a testament to the resilience and adaptability of the promotional products industry, providing valuable insights for industry professionals and businesses alike.
Read also:
- Understanding Hemorrhagic Gastroenteritis: Key Facts
- Trump's Policies: Tariffs, AI, Surveillance, and Possible Martial Law
- Expanded Community Health Involvement by CK Birla Hospitals, Jaipur, Maintained Through Consistent Outreach Programs Across Rajasthan
- Abdominal Fat Accumulation: Causes and Strategies for Reduction
