Industry Report: Exceptional Sales Figures and Unparalleled Industry Upheaval

The Advertising Specialty Institute (ASI) has published its annual State of the Industry report, offering a comprehensive recap of the promotional products industry's key events and trends in 2017.

The report highlights the industry's biggest headlines of the year, including Walmart's entry into the promotional market, natural disasters, lawsuits, price fixing charges, and acquisitions. One of the most notable developments was the emergence of the fidget spinner, which broke into the top 10 most-searched terms on ASI's ESP in April 2017 and peaked in May before dropping off in the fall.

T-shirts still account for 15% of distributor sales, making them the largest market share for any promotional product in the past decade. The report also reveals that distributors offering printing services are more likely to post annual revenues of over $1 million.

The 2018 issue of Counselor magazine, published by the ASI, selected the fidget spinner as its first-ever Product of the Year. The issue also offers profiles and online video interviews with the 2018 Counselor Award winners and the exclusive revenue ranking of the top 40 distributor and supplier companies.

Despite the industry's success, Counselor Editor-in-Chief Dave Vagnoni stated that the industry is facing unprecedented disruption due to threats from Amazon, Walmart, and online hackers. Distributors increasingly supplement their income with graphic design services, company stores, and warehousing and fulfillment.

The report also sheds light on the industry's financial health. Distributor sales in 2017 reached a record-setting $23.6 billion, with more than four in 10 distributors improving their 2017 revenue versus 2016. Sixty-four percent of distributors with annual sales of $250,0001-$1 million reported increased profits in 2017, and the average profit margin for distributors increased to 35%.

However, the report also highlights areas for improvement. Only about one in three companies have any social media strategy, and just 33% of companies in the $100,000-$250,000 range have formal data security policies. One-third of respondents in the $5 million+ class report other large distributors in their territory as their biggest problem.

The 2018 State of the Industry report, considered the most important and influential in the industry, analyzes 2017's key sales, marketing, and operational metrics. It provides specific steps for distributors to thrive in a changing and complex industry.

In conclusion, the promotional products industry is experiencing record sales and high profit margins, but it is also undergoing tremendous change due to online competition. The industry's future success will depend on its ability to adapt and innovate in the face of these challenges.

Industry Report: Exceptional Sales Figures and Unparalleled Industry Upheaval