Special Markets Dialogues 2010
For Immediate Release
Special Markets Dialogues conference summary of key
takeaways
On November 5th and 6th, 30 thought leaders from the incentive, gift card, and
promotional products markets convened at “Special Markets Dialogues” in Myrtle
Beach, SC. The annual meeting seeks to assemble a 360-degree view of the
market and to get a sense of current and future opportunities and threats to the
business.
The meeting, facilitated by Pete Mitchell, Director of B-to-B Sales for Samsonite,
featured a wide-ranging discussion about trade shows, outside threats, and the
structure of the reward/recognition/promotion marketplace. Five main takeaways
were identified:
1. The overall mood of the market is one of “cautious optimism” for 2011.
Successful organizations in 2011 will need to adjust and evolve to meet the
needs of the new economy.
2. Amazon and other retail-based platforms are changing the expectation set
of the incentive program participant, and suppliers must respond with
similar “experiences”. The full impact of Amazon’s re-emergence into
loyalty programs has not yet been felt.
3. Considerable progress has been made to bridge the gap between
“incentive” and “promotional products” businesses, but education of both
sides needs to improve.
4. Our business has often been “collateral damage” as a result of actions by
government and industries. As a market, we need to be more proactive in
educating those entities as to our existence.
5. The supply chain is facing unprecedented challenges and the supplier base
must do a better job of handling the changes that are happening.
Discussion points
Recent activity (both quoting and closing) has increased and there is a sense that
corporations must reward and recognize those employees that remain after the
“Great Recession”. Most suppliers that sell to retailers are having a much better
2010, but these numbers are against 2009, by all accounts a poor year.
For many providers, the number of orders is up, but pricepoints continue to
degrade. Clients are increasingly seeking technological solutions, like daily
inventory data feeds, to efficiently merchandise their programs.
The “one-off” transaction, where a quantity is sold for a date-specific event, is not
as impacted by Amazon and other retail platforms at this time. The impact of
retailers and other distribution entities is still being determined.
Special Markets Dialogues 2010
The PHRMA decisions and OSHA’s recent stated concern about employee safety
programs are examples where our businesses were impacted, but as an indirect
result of other decisions.
Our businesses, which have differing interests, are challenged to speak to
government and/or industry with a single voice, but there must be greater
cooperation to increase awareness of our business and our legitimacy. The effort
of the Incentive Federation to speak to Congress about wellness programs is an
example of how diverse organizations can unite in a common purpose.
There is rapid growth in the use of technology to deliver awards to program
participants. Gift card suppliers are experiencing this as retailers adopt in-store
and online redemption of virtual gift cards delivered via email and mobile phone.
“Grass roots” advocacy is also being used to respond to challenges posed by
legislatures or regulatory agencies, and some success is being reported.
Awareness is key, and we must reinforce the economic impact of these decisions,
especially to Congress.
The supply chain faces unprecedented challenges, and all suppliers that build in
China will be impacted. The combination of currency issues, capacity limitations,
and freight barriers will force suppliers to plan their inventories better.
As retail-based suppliers increasingly sell “big box” retailers (which often take
possession of the product offshore), there is less inventory available for
“incremental” businesses like ours. But many suppliers are creating new ways to
address the issue, including proprietary products, best-seller lists with
guaranteed availability, and so forth.
The 2011 forecast was seen as “cautiously optimistic”—there will be continued
challenges but most corporate clients plan to continue their reward/recognition
programs at flat or close-to-flat funding levels.
For more information, please contact Pete Mitchell at (843) 597-4281 (mobile) or
pete.mitchell@samsonite.com
Special Markets Dialogues 2010
The Attendee list for Special Markets Dialogues 2010
Name
Company
Pete
Adanalian
Dragon Distribution
Darel
Cook
PPAI
Jim
Beyer
Helix Global Solutions
Ron
Buchan
Partners For Incentives
Greg
Canose
Award Marketing Services LLC
Mary Anne
Comotto
Partners For Incentives
Dave
DeGreeff
Flagship Promotional Services
George
Delta
Incentive Federation
Karen
Eglitis
Bose
Fran
Ford
J Charles
Joe
Gabler
Gabler Sales
Joy
Gretsch
Gretsch Incentives
Joe
Hafenscher
Fuji Photo
Norma
Knollenberg
Top Brands, Inc.
Mike
Landry
Tumi
Chris
Lovell
ASI
Cindy
Mielke
JC Penney Gift Card
Pete
Mitchell
Samsonite
Ted
Moravec
Elite Creations
Dave
Peer
Hinda
Tom
Whaley
Aloe Up
Rebekka
Rea
Innovative Prepaid Solutions
Karen
Renk
IMA
Dean
Resnekov
Indigo
Leslie
Roark
PromoPros
Sean
Roark
PromoPros
Steve
Slagle
PPAI
Michelle
Smith
O.C. Tanner
Allison
Wooten
All Star Incentive Marketing
Miguel
Yacobi
Thinksmart