About the Promotional Product Industry

Typically the Promotional Product Industry is made up of two sections:

Suppliers – These are the organisations that manufacture, import, imprint, convert or produce promotional products. Typically they produce custom orders on behalf of the distributor, and the products are only available through Promotional Product Distributors. Suppliers will generally not accept orders from businesses that do not resell their products. These suppliers may manufacture in Australia, but also often have manufacturing facilities in countries with greater and often more cost effective manufacturing capabilities such as China or the United States.

Distributors – Distributors are independent agents who usually source from a range of suppliers, depending on the desired product and needs of the client or end user.  They often develop ideas for clients as to the most effective ways to use merchandise in marketing or promotional campaigns. Sophisticated distributors may have valuable services such as marketing expertise and graphic design skills and will assist in evaluating the effectiveness of a promotional product campaign. They tend to act as brokers between manufacturers and end users, typically not maintaining inventory of any stock other than samples.

It is estimated there are over 2500 promotional product distributors in Australia, with the majority of these being small businesses. Of these 2500 companies, approximately 600 are members of APPA, the Australasian Promotional Products Association, a non-profit organisation which many promotional product companies are members of. (Source www.appa.com.au)

The expansion of the promotional products industry in the past decade has also seen businesses attempt to use alternative channels to procure items, including via direct-selling houses, advertising agencies, retail stores and from manufacturers overseas, with varying levels of success.

There are a variety of organisations and institutes that support promotional product manufacturers, distributors and purchasers.

APPA (The Australasian Promotional Products Association) is a professional trade organisation that provides education, resources, media and advice to members (Suppliers and Distributors) predominantly in Australia and New Zealand.

The Promotional Media Group (PMG) maintains a database of product and service providers relating to the promotional industry in Australia and New Zealand.  It includes PromoDirect, which also offers an industry magazine (Promotion Magazine), Promotional Product Ideas Book, Promotional Products Directory, industry job board, and also runs the Australian Promotional Expo (APE).

Other organisations such as APMA (Australasian Promotional Marketing Association – powered by The Communications Council) represent Promotional and Experiential Marketing Agencies in Australia and New Zealand. Their role includes managing business issues which affect members, providing services to members in financial, legal and professional areas as well as education/training.

Internationally, major organisations include The ASI (Advertising Specialties Institute), which is described as the “largest media and marketing organization serving the advertising specialty industry.” The Promotional Products Association International also has over 8000 members, with the majority of these from the United States or Canada. In the United Kingdom, the two main trade bodies are Promota (Promotional Merchandise Trade Association) and BPMA (British Promotional Merchandise Association).

The popularity of promotional merchandise is reflected in their rapid sales increase. APPA Statistics suggest the industry in Australia is worth $2.02 billion, an increase of 45% in the last 5 years. The industry worldwide is estimated to be worth a staggering $18 billion in annual sales. Some of the promotional product industries’ major users include financial institutions, health care providers, non-profit organisations, educational providers, automotive organisations, government agencies, entertainment/sporting events, telecommunications companies, distributors of alcoholic beverages and many more.

Tip – The Creative Locker is a member of reputable organisations such as APPA & Promo Direct.