PPAI 2015 Annual Distributor Sales Summary PPAI has researched and released industry sales data since 1965. This annual distributor sales study is considered the most definitive and comprehensive of its kind in the industry based on actual sales reported by U.S. promotional consultant companies. The information is used primarily to measure industry growth and to convey to prospective buyers of promotional products the magnitude of the industry and the wide acceptance of the products it produces and sells. In 2015, the survey was conducted by Relevant Insights LLC, an independent market research, on behalf of PPAI. Methodology and detailed findings can be reviewed in the full report at ppai.org/research. Distributor Company Size Number Of Distributor Companies Less than $2.5 million 22,153 $2.5 million or more INDUSTRY TOTAL 2015 Sales Volume % Increase/Decrease In Sales Volume Over 2014 $9,256,371,349 -6.63% 868 $11,551,799,373 +14.05% 23,021 $20,808,170,722 +3.82% The year 2015 was a year of average positive growth for promotional products distributors, but also a year in which the gap between small and large distributors widened enough to change the balance between both groups in the total sales volume figures for the industry. 2015 was the year of the large distributor. Overall, distributors’ sales volume increased by 3.82% which puts the promotional products industry’s revenues at $20,808,170,722 in 2015. HISTORIC ANNUAL ESTIMATE OF SALES IN BILLIONS 17.9 14.9 11.9 16.6 15.6 16.3 17.3 18.0 18.8 19.4 18.1 15.6 16.6 17.7 18.5 19.8 20.0 20.8 13.2 9.5 0.8 0.9 1.1 1.3 1.5 1.8 2.0 2.3 2.4 2.8 2.9 3.1 3.8 4.0 4.2 4.5 5.0 5.1 5.2 6.2 7.0 8.0 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 PRODUCT CATEGORY 2015 SALES BY PRODUCT CATEGORY Personal/Pocket- Clocks & Food Gifts Purse Products Watches 1.14% 0.93% 1.55% Gift Cards Buttons/ Other Automotive 0.57% Badges/ 2.70% Accessories Ribbons 1.70% 1.54% Wearables 32.04% Magnets Stickers & Decals 1.80% 1.82% Health & Safety Products 1.98% Games 2.03% Sporting Goods/Leisure/ Travel Accessories 2.28% Housewares/Tools 2.31% Textiles 2.63% Electronic Devices & Accessories 3.05% Calendars 3.72% Recognition Awards/ Trophies 4.12% Writing Instruments 7.67% Computer Products 4.17% Desk/Office/Business Accessories 5.04% WEIGHT FOR 2015 44.48% for companies with $2.5 million or more in sales and 55.52% for companies with less than $2.5 million in sales Bags 7.67% Drinkware 7.54% Wearables: T-shirts, golf shirts, aprons, uniforms, blazers, caps, headbands, jackets, neckwear, footwear, etc. Writing Instruments: Pens, pencils, markers, highlighters, etc. Bags: Totebags, shopping bags, satchels, gift bags, drawstring bags, cosmetic bags, paper bags, duffel bags, briefcases, etc. Drinkware: All glass, china, ceramic, crystal, plastic and stainless steel drinkware Desk/Office/Business Accessories: Folders, desk pen sets, calculators, nondated paper products, cubed paper, scratch pads, adhesive notes, stationery, journals, etc. Computer Products and Accessories: USB drives, Mouse pads, monitor frames, disk carriers, wrist pads, software, etc. Recognition Awards/Trophies/Jewelry: Awards, trophies, plaques, certificates, figurines, jewelry, etc. Calendars/Dated Products: Wall and wallet calendars, desk diaries, pocket secretaries, etc. Electronic Devices and Accessories: Radios, TVs, iPods, Mp-3 players, phones, videotapes, music CDs, phone cards, Flashing products etc. Textiles: Flags, towels, umbrellas, pennants, throws, blankets, etc. Housewares/Tools: Measuring devices, kitchen products, picture frames, household decorations, ornaments, tool kits, first aid kits, furniture, flashlights, cutlery, weather instruments, etc. Sporting Goods/Leisure Products/Travel Accessories: Picnic/party products, camping equipment, barbecue items, bar products, binoculars, luggage, passport cases, etc. Games/Toys/Playing Cards/Inflatables: Balloons, Kites, balls, puzzles, stuffed plush, etc. Health & Safety Products: First-aid kits, hand sanitizers, etc. Stickers and Decals: Stickers, decals, static clings, lettering, etc. Magnets: Magnets and magnetic products Automotive Accessories: Key tags, bumper strips, road maps, floor mats, window shades, etc. Food Gifts: Candy, cookies, nuts, gourmet, meat, spices, bottled water & other drinks etc. Buttons/Badges/Ribbons: Buttons, badges, ribbons, signs, banners, etc. Personal/Pocket-Purse Products: Pocket knives, grooming aids, lighters, matches, sunglasses, wallets, etc. Clocks and Watches: Clocks, watches, etc. Gift Cards: No examples Other: No examples reported 2015 SALES BY PROGRAM CATEGORY PROGRAM TYPE Business Gifts: Foster customer goodwill and retention Other 1.32% Customer Referral 3.02% Marketing Research 1.52% Brand Awareness: Promotion of brand awareness and brand loyalty Business Gifts 13.37% Employee Relations & Events: Morale and motivation, corporate/employee events, employee orientation, organizational commitment/corporate identity, corporate communication, employee training (other than safety), employee referral programs Safety Education 3.62% New Product 4.32% Trade Shows: Trade-show traffic generation Internal Promotions 5.63% Brand Awareness 12.24% Dealer/Distributor Programs: Dealer incentives, co-op programs, company stores New Customer/Account Generation: New customer or new account generation Employee Service Awards 6.08% Public Relations: Corporate involvement with community, fundraising, sponsorship, school programs, media relations, corporate image Not-For-Profit Programs: Not-for-profit use for fundraising, public awareness campaigns (health, environment, public safety, etc.) Not-For-Profit Programs 6.22% Employee Service Awards: Anniversary recognition, service awards, etc. Employee Relations & Events 11.95% Public Relations 6.38% Internal Promotions (Incentive; Non-Safety): Sales incentive, TQM/quality programs, productivity, inventory reduction, error reduction, attendance improvement New Product/Service Introduction: New product or service introduction Safety Education/Incentive: Employee safety and education Trade Shows 10.32% New Customer 6.96% Dealer/DIstributor Programs 7.04% WEIGHT FOR 2015 44.48% for companies with $2.5 million or more in sales and 55.52% for companies with less than $2.5 million in sales Customer Referrals: Customer referral incentive programs Marketing Research: Marketing research, survey and focus group participation programs Other: No examples reported Responses to questions about product and program categories continue to be a challenge as many distributors do not keep track of their sales by these categories. In order to continue building on the established research, PPAI urges new entrants to the industry and established distributors to keep track of their sales by PPAI’s product and program categories shown in this summary. INDUSTRY SALES BY SIZE OF COMPANY 20112012201320142015 Company Size* Change over 2014 Less than $250,000 $1,645,603,749 $1,637,920,855 $1,673,365,807 $1,846,568,885$1,770,604,678 -4.11% $250,001-$500,000 $1,618,544,334 $1,879,888,822 $1,509,019,388 $1,530,260,232 $500,001-$1,000,000 $2,364,147,043 $2,358,616,521 $2,482,433,936 $2,207,506,975$2,562,181,430+16.07% $1,000,001-$2,500,000 $3,455,562,374 $3,302,693,393 $4,422,696,874 $4,329,256,589 $2,500,001 or more $8,638,088,190 $9,318,526,638 $9,739,357,718 $10,128,636,250 TOTAL $17,721,945,690$18,497,646,229$19,826,873,723$20,042,228,931$20,808,170,722+3.82% $1,481,662,627-3.18% $3,441,922,613-20.50% $11,551,799,373+14.05% ONLINE SALES OF PROMOTIONAL PRODUCTS Online sales are defined as sales resulting from orders placed through an online store or website. Company Size* 2011 2012 2013 2014 2015 Less than $2.5 million $1,275,870,533 $1,553,179,741 $1,075,428,815 $1,378,340,947$834,370,461 $2.5 million or more $1,823,500,417 $2,189,834,184 $1,621,952,603 $2,203,655,822$3,110,511,442 $3,099,370,950 $3,743,013,925 $2,697,381,418 $3,581,996,769$3,944,881,904 TOTAL *By Sales Volume © 2016 Promotional Products Association International. All rights reserved. Subject to change without notice. UPIC: PPAI