A Global Perspective on Promo’s Performance Halfway Through 2024

Mirco Haesslich can hardly believe the volume of branded socks he’s selling.

The owner of WER GMBH said the Senden, Germany-based promotional products distributor has moved more socks in the first six months of 2024 than in the past 10 years combined.

“It’s an explosion,” Haesslich said. “Everyone wants socks.”

Turns out, socks may be something of cross-continental promo sensation at the moment.

On the PromoAlliance webinar where Haesslich shared his socks story, three other distributor panelists – two from the United States and one from the United Kingdom – also asserted that the item is a hot seller.

“They’re easy to mail and there’s no sizing issue. Socks are really big right now,” said Corina Peacock, owner of Baltimore, MD-based SpecWorks Inc. (asi/331149).

The socks trend was one of many insights into the global promotional products market, as it stands halfway through 2024, that came during the PromoAlliance webinar on June 20.

Hosted by Michele Bell, ASI’s senior vice president of content & global alliances, the webinar delved into everything from sales performance and sustainability to trending products, up-and-coming end-markets, and tips for expanding business internationally. Haesslich and Peacock were joined by Essex, U.K.-based Angela Wagstaff, owner of Allwag Promotions, and Amy Wolf, CEO and founder of Seattle-headquartered Evo3 Marketing (asi/160628).

This was the second webinar in an ongoing quarterly series from PromoAlliance, the strategic partnership between ASI in the United States, PSI in the European Union and Sourcing City in the United Kingdom. The alliance acts with a unified commitment to promote networking and a sharing of promo industry knowledge and data on a global level.

Sales Performance & Strong End-Markets

During the discussion, panelists acknowledged that challenges in their domestic markets – including a cantankerous election period in the U.K. and ongoing issues with inflation, high interest rates and recession concerns in the U.S. – may be weighing on industry sales. Still, all four distributors said their firms have been engineering revenue increases.

WER GMBH’s Q2 revenue is up 10% so far compared to last year. Q3 is looking good, too, as the number of orders poised to bill during that three-month stretch suggest revenue will rise on an annual basis. Haesslich said it’s all part of what’s been an ongoing, gradual recovery from COVID-era sales lows in the German promo products industry – the European Union’s largest national market for merch.

Wagstaff said the U.K. market is “generally booming” but noted there have been some headwinds of late, with certain buyers, including those in the education market, waiting to see how the expected July prime minister election goes before making their next swag investment. Even so, clients in the technology and automotive sectors have been spending robustly with Allwag, and Wagstaff expects her firm’s revenue trajectory to remain upward.

Speaking of the tech sector, Evo3 Marketing has capitalized on its Seattle location to score big business with major companies active in the city’s famous technology hub. Plus, clients in the food and beverage market have invested in major activations that have propelled business for the firm, whose sales are on the rise.

Peacock said SpecWorks’ sales are “definitely seeing an uptick.” While client marketing initiatives have been part of that, she said a significant growth accelerator has been spend from human resources departments. “Companies are investing more money into their employees,” Peacock said.

Wagstaff noted there’s a similar phenomenon playing out in the U.K., with onboarding packs being a hit. She said the distribution of merch to employees who may be working remotely remains a sought-after service solution – something Wolf echoed.

“We see a huge portion of business in drop-shipping, including shipping globally,” Wolf shared. She added that Evo3 is, in some ways, a “tech company, media company and drop-shipping company that happens to play in the space of promotional products.”

Additionally, panelists mentioned that in the U.S., gaming, alternative health, the pet industry, and the nascent legal cannabis space, including recreational marijuana dispensaries, are among the growing niche markets where opportunity is elevating.

Sustainability & Products

When it comes to products, drinkware continues to be a wildly popular category in the U.S., U.K. and European Union, panelists agreed. Wolf noted that some clients like a “tech twist,” such as tie-ins that allow them to monitor their hydration levels on their phone. More broadly, Peacock said she’s seeing a trend toward nostalgia – end-clients wanting products like traditional trucker hats, for example.

An overarching phenomenon spanning product categories is that more end-buyers than ever are interested in items made from sustainable materials, all produced in a manner that’s ethical to the people making the goods and that causes minimal impact on the planet, panelists said.

The demand for sustainable/socially responsible products is certainly more pronounced in Europe, where it’s pervasive, but steam is also building in the U.S., according to panelists.

Peacock, for instance, pointed to products like apparel manufactured from organic materials and journals made from apple peels or even grass clippings as notable items. Products that may have a giveback component – “part of the proceeds from the sale of this shirt are donated to charity X” – are attracting more end-buyer interest, too.

In the U.K. and EU, traceability has grown in importance. Clients increasingly want proof that a product has been made sustainability and ethically. Legislation under consideration in the EU could potentially require products to have a scannable “digital passport” that would provide the history of its composition and origin, and ultimately its lifecycle, panelists discussed.

Allwag, the U.K. firm, has been a proactive leader on traceability, working to document products in an effort to be transparent to clients. When it comes to opportunities with verifiably sustainable goods, “it’s exciting, because the demand is there,” said Wagstaff.

Building International Bridges

Whether you’re a U.K./EU firm looking to do business in North America, or a North American promo outfit keen to break into the European market, panelists had this advice: Get yourself to a major trade show in the respective continent and start building relationships before jumping in.

Haesslich suggested attending PSI – the largest promotional products trade show in Europe, drawing vendors and attendees from across the continent and around the world. Wolf said such shows provide a critical forum for meeting potential partners with whom you share “chemistry and vision” – essential elements to making cross-continental business collaboration work. “Know what you want to get out of the partnership,” Wagstaff added.

Also: Laws around other countries’ taxes, duties and exporting/importing can’t be understood overnight. Take the time to learn what’s required so you don’t get burned, panelists agreed.