PPB September 2018

T he news keeps coming: “Amazon is getting in the promotional products space.” “Walmart is now in the promotional products space.” And the latest (as of this writing): “Costco is now in the promotional products industry.” The saber rattling is deafening from these large brands because they typically enter with an ecommerce promise that threatens to destroy all our businesses. But why do these brands, and ecommerce in general, seem like such a threat? Mainly, because they’re big. Big names. Big brands. Big buying power. They canmake investments in tech that the average distributor can’t, and of course they already havemagnificent B2C sites. But does a distributor’s size really matter in this high-touch, personal and customized business? Staples, the largest market leader, has had a direct pipeline to B2B buyers in the promo space for years now and a healthy online advantage, yet they still command less than three percent of the market share. If Staples hasn’t made amore significant dent, why does any large brand like Amazon andWalmart still pose such a threat? The problemwe have, as an industry, is chronic and twofold: 1 The Inferiority Complex: We’re crippled (unjustifiably so) by an inferiority complex when comparing ourselves to larger brands, which is ludicrous, as most large companies do not disrupt industries as much as they chip away at market share (Amazon is perhaps the sole exception). Disruption generally occurs from smaller, more nimble radicals (hello, Airbnb). We all know a story about the downfall of a giant by a small disruptor—a shepherd and a simple slingshot can still topple the largest foe. 2 The Echo Chamber: We’re victims of our own industry echo chamber. We’re in a friendly industry (and I am thankful for that!), but this alsomeans it’s a close industry. Crippled by our inferiority complex, we tend to fall prey to the negative confirmation biases that resoundwithin the walls of our industry. We swirl rumors and negative news because fear- mongering still has amesmerizing quality to it and it’s too dramatic to ignore. But it creates an outlook that is fear-based rather than opportunity-based. Is Ecommerce Taking Over The Promo Space? Maybe the emperor has no clothes. by Bobby Lehew 72 | SEPTEMBER 2018 | GROW