PPB July 2018

PPAI Exclusive Research | FEATURE Moore’s Law were devised parallel to the evolution of the transistor chip, a technology that is close to being phased out, and yet the law continues to be one of the most cited empirical laws to describe technological change. A strong testimony can be taken from the 2018 Consumer Electronics Show (CES). For the first time, the world’s largest tech show featured a dedicated ‘Smart Cities’ exhibit area presented by the Consumer Technology Association (CTA) and Deloitte, representing an entire connected ecosystem and showcasing cutting-edge smart technologies. If this year’s CES underscored one thing, it’s that the next wave of growth and differentiation in consumer products will focus on smart, connected products. The Internet of Things (IoT) is moving from theory to reality across the bulk of the business economy, including the promotional products industry. Each year attendees at The PPAI Expo are given name badges that give them access to the trade show floor. This year, however, the badges were equipped with data collection capabilities and diagnostic software features that monitored performance, behavior and the environment. Though limited to the trade show floor, this product, called eventBit, gathered data to help generate previously unavailable insights in real time, ultimately heightening both exhibitor and attendee experiences. This is not a foreign concept for promotional products businesses. The ability to change the value proposition of a product or experience by enhancing one simple component is the core of the industry; a logo turns an ordinary product into a mode of communication for the brand it represents. Today, the way products create value is being fundamentally transformed. With new components available, new functions are being developed to interact with products like never before. Unprecedented network access allows products to connect with people, systems, businesses and each other across a global Internet of Things. Technology allows us to stay in touch with our products, listen to them, and understand and capitalize on what they have to say to us. The very nature of products is changing, shaking up the traditional product value chain and making the most ordinary products connected and, therefore, “smart.” In their Harvard Business Review article, “How Smart, Connected Products Figure 4: Smart Products In The Promotional Products Industry Source: PPAI 2018 Business Study Smart Products Categories Suppliers Have Developed / Currently Developing Smart Products Categories Customers Request From Distributors WEARABLES 42% INDUSTRIAL EQUIPMENT 33% INDUSTRIAL EQUIPMENT 6% HOME DEVICES 17% HOME DEVICES 30% PACKAGING 8% PACKAGING 12% WEARABLES 52% What You Will Find In The Full Report • Background • Methodology • Demographics including position, company size, business type, business ownership, location and PPAI member status • Executive Summary • Detailed results including information on technology budgets, asset-based technology spending, services, hardware, software, order process and data security Why Read This Report The 2018 PPAI Business Study, “Technology Report,” provides a high-level view of the current technology trends in the promotional products industry. The metrics and benchmarks identified can be used as a practical guide to help business leaders at both supplier and distributor companies to: 1 Understand technology priorities 2 Identify relevant solutions and best practices 3 Benchmark operational IT spending levels 4 Maximize the strategic value of IT investments 5 Evaluate key performance indicators by comparing IT intensity and infrastructure metrics with peers. Find the complete results from the 2018 PPAI Business Study and more exclusive PPAI Research by visiting www.ppai.org/research. | JULY 2018 | 29