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          1. Sales Promotion Services Industry Profile

            Report Page Length: 10-12
            Last Quarterly Update: 9/7/2020
            SIC Codes: 5199
            NAICS Codes: 541890
            Chapters Include:
            Industry Overview Trends & Challenges Industry Forecast
            Quarterly Industry Update Call Prep Questions Website & Media Links
            Business Challenges Financial Information Glossary & Acronyms
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            Excerpt from Sales Promotion Services Industry Profile

            Companies in this industry provide promotional products imprinted with the name, logo, or marketing message of clients. Major companies include BDA, HALO Branded Solutions, and Staples (all based in the US), as well as Aimia (based in Canada), Cimpress (Netherlands), and 4imprint (UK). The promotional products industry reported global sales of more than $23 billion in 2017, according to a report from trade group Promotional Products Association International (PPAI) and research firm Relevant Insights. About 30% of raw materials and products sourced by the promotional products segment come from China.

            The US sales promotion services industry includes about 7,500 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $15 billion.

            COMPETITIVE LANDSCAPE

            Demand is driven by economic growth and by corporate profits. The profitability of individual companies depends on efficient order fulfillment and marketing. Large companies have economies of scale in procurement and the ability to offer other marketing services. Small companies specialize by type of sales promotion product and differentiate themselves on customer service, particularly speed of delivery. The US industry is fragmented: the top 50 companies account for about 40% of revenue. Sales promotion products are often viewed as discretionary expenses that can be cut during economic downturns. Competition comes from office supply stores, print shops, and ad agencies that offer promotional products as part of larger, integrated marketing programs. These competitors may be able to ...

             
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