How Did Retail Branded Products Fare? Retail branded products were only introduced to the survey a few years ago. PPAI defines retail branded products as “consumer-facing, brand name products that add a sense of distinction to incentive and recognition programs as well as individual end-user gifts (Yeti, Maui Jim, Inc., TUMI, Nikon, Inc., etc.).” This applies to the majority of distributors in the industry. The number of distributors selling retail branded products in 2021 was relatively unchanged compared to 2020. Every large distributor indicated they sold them (compared to 97% in 2020) and 84% of small companies reported they did (compared to 81% in 2020.) There was a slight increase in the actual size of sales that came from retail branded products. The industry sold $4.5 billion in retail branded products, which is a 2.6% increase from2020 but still nearly $1 billion short of 2019. 2022 Outlook And Expectations In spite of current economic challenges including prices rising worldwide—see our report on the industry’s reaction to current inflation levels on page 18—the majority (70%) of distributors who participated in the survey expect higher sales and profit for 2022 than 2021 (and 2020). Understandably though, that optimism is statedmore strongly among large distributors. A total of 36% of distributors under $2.5million in annual sales predicted sales either the same or less than they achieved in 2021. Only 11% of distributors with over $2.5million in annual sales had as conservative or pessimistic predictions. Similarly, 77% of large companies predicted greater profits in 2022 compared to only 55% of smaller companies who shared such optimism. HowThe StudyWas Conducted To compile the 2021 Estimate of U.S. Distributors’ Promotional Products Sales for PPAI, the survey was distributed via email to both PPAI members and non-member promotional consultant companies. The sample was drawn from PPAI and UPIC (Universal Promotional Identification Code) lists. The top 50 distributors were also reached by phone to make sure their information was included in the analysis because the omission of any distributor with a large volume of business could distort the statistics. Figure 5: U.S. Distributor Business with Non-Industry Suppliers, 2012-2021 OVER $2.5 MILLION UNDER $2.5 MILLION 2017 2018 2019 2020 2021 2012 2013* 2014 2015 2016 19% 19% 12% 12% 13% 13% 13% 13% 13% 13% 11% 12% 12% 12% 14% 16% 17% 17% 17% 20% 2022 Sales Expected to be... Figure 6: U.S. Distributor Business with Non-Industry Suppliers, 2012-2021 Figure 7: Distributors’ 2022 Sales Predictions OVER $2.5 MILLION UNDER $2.5 MILLION GREATER THAN 2021 OVER $2.5 MILLION UNDER $2.5 MILLION ALL DISTRIBUTORS SAME AS 2021 LESS THAN 2021 2018 2019 2020 2021 $3.7 B $5.4 B $4.4 B $4.5 B $1.9 B $2.9 B $2.1 B $2.2 B $1.9 B $2.4 B $2.1 B $2.3 B 100% 80% 60% 40% 20% 0% 64% 27% 9% 89% 9% 2% 68% 24% 8% 2021 Prediction: 55% 2021 Prediction: 62% 2021 Prediction: 56% Auping is a news editor at PPAI. 2021 U.S. Distributors’ Promotional Products Sales Survey | FEATURE | JUNE 2022 | 17
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