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Value growth of promotional Giftware will be modest in 2009 comp by Perkal

Bharatbook.com included "Corporate and Promotional Giftware Market Report" ( https://www.bharatbook.com/Market-Research-Reports/Corporate-and-Promotional-Giftware-Market-Report.html ) that gives the corporate and promotional giftware market information.

The previous recession of the early 1990s was, to some extent, responsible for a change in the image and attitude of the corporate and promotional giftware market, with those involved recognising the need to move away from the existing practice of using mass and inferior 'give-aways' and place more importance on quality. A well-chosen gift can go a long way towards building stronger relationships with clients and/or staff and can act as ongoing free advertising for the giver, particularly if items are personalised.

By late 2008, it was acknowledged that the UK was in another recessionary period. According to the Confederation of British Industry's (CBI's) latest quarterly survey, October 2008 saw business optimism at its lowest level in almost 30 years, leading the CBI to call for further interest rate cuts as manufacturing companies struggle to stay afloat during the credit crunch. Many will be forced to cut back on advertising and promotional spend, but others may think it all the more important to drum up new business and/or motivate staff, and will focus their marketing efforts on retaining existing customers and attracting new ones. The promotional industry appears fairly confident that it will ride the current economic crisis, although there will inevitably be individual casualties. As so many companies supply the market, a key opportunity for differentiation lies in customer service and reliability skills. Buyers sourcing corporate and promotional giftware need to be confident that they are dealing with reputable suppliers and that the product or service received will be of the high quality they expect.

According to a survey conducted by www.promotional-merchandise.org.uk in 2007, 22.9% of respondents order promotional items more than ten times per year. The largest percentage (41%) ordered promotional merchandise between one and three times yearly. The fact that these figures differ little from a similar survey conducted in November 2006 indicates, in the opinion of its instigator, that the promotional items market is stable across all sizes of buyer and budgets.

Writing implements and mugs are still enduring favourites as choices of corporate and promotional giftware - items of daily use that can be inscribed with company logos. Data storage devices, such as USBs, are a more recent and highly successful introduction, while there has also been a surge in demand for environmentally-friendly goods, such as energy-saving devices and products made from recycled goods. Valuable and/or enduring gifts, such as fine wines and crystal, are more a gesture of appreciation than a promotional ploy, and the luxury end of the market will struggle in times of economic gloom.

In 2007, the promotional merchandise sourcing specialist Source-e carried out research which found that more than 95% of office workers across Great Britain have some form of promotional merchandise on their desk, and as many as 53% had made purchases from companies that had supplied them with promotional merchandise. Little wonder, then, that few companies in the habit of giving corporate and promotional giftware will abandon the practice in any hurry, although the publisher anticipates that value growth will be modest in 2009, increasing by just 1.4% on 2008.

This article was published on Friday 27 February, 2009.

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