October 23, 2020
Power Summit 2020: Top Market Analysis for Promo
Get can’t-miss insights from experts on the trade show/events, education and restaurants/hospitality sectors – all major end-markets for promotional products distributors.
2021 will not ring in a new post-pandemic normal. Rather, it will be the bridge to the new normal that will emerge in 2022.
So says Marie Hunter, senior director of meetings, conferences and events for the Institute of Electrical and Electronics Engineers (IEEE).
Hunter made the prediction during an insight-packed market analysis session at the virtual 2020 ASI Power Summit on Thursday, Oct. 22. She was speaking about the meetings and events industry, but her prediction could prove equally true for the two other markets that were also the subject of the Summit discussion: education and restaurants/hospitality.
The trade show/events, education and hospitality spaces are major end-markets for promotional products sales. All have been radically altered as a result of COVID-19, and promo spend from the sectors has nosedived. Nonetheless, as Hunter and two other expert session panelists shared in their discussion with ASI Senior Vice President of Editorial & Marketing Andy Cohen, all three markets still have a need for ad specialty solutions. Here’s a snapshot of where each market stands and where promo could fit in.
Meetings/Events
Hunter is in charge of approximately 2,000 events annually for IEEE. Most events are typically held in person at both domestic and international locations. But when COVID struck, just about any event IEEE wanted to host had to go virtual – a tectonic shift.
“We pivoted to digital and pivoted very quickly,” said Hunter. “Virtual became the epicenter of the company.”
Some of the events went forward during their scheduled timeframe. Others – roughly 50% of the ones IEEE is still holding – were pushed to what’s turned into a rampantly busy fourth quarter. The events remain virtual, but Hunter noted that within the conference/trade show segment some hybrid (virtual and in-person) or very small scale in-person events (20 people or less) are starting to occur.
Hunter is hopeful that some IEEE events planned for the first quarter of 2021 will be at least partially in-person, but there’s a distinct possibility they’ll have to shift to virtual. It could be June before a large in-person IEEE event happens domestically – a timeline that yields insight into how other planners in the events industry could be forecasting.
“There’s tremendous hunger to get back together in person,” said Hunter.
So, so true. #ASIPowerSummit https://t.co/xGA1L6ybWd
— Theresa Hegel (@TheresaHegel) October 22, 2020
Still, things won’t quite be the same. Virtual, said Hunter, is here to stay – but not necessarily to the detriment of in-person happenings. Rather, she thinks that hybrid, virtual and in-person events will coalesce into a more expansive events industry as the new normal takes hold post-pandemic.
“I have no fear of virtual,” she said. “It only makes events bigger and better.”
Long-term, that could be good news for promo products distributors, who could find a broader array of events for which to provide branded merchandise and related solutions. Hunter advised distributors to plan now with event clients for the new normal, while also offering creative solutions that meet planners where they’re at.
“Partner with clients to understand their challenges and expand your offerings to help,” said Hunter.
Some potential ideas? Come up with attractive merchandise that attendees want to buy – like the T-shirt they would have purchased if they were attending a festival like SXSW. “The exhibitor or organizer can pay for the item and the recipient could pay the shipping,” Hunter suggested.
Another option? Provide merch for specific exhibitor-sponsored breakout sessions within larger virtual events. “The exhibitor could pre-ship an item like a hat or shirt to attendees and everyone can wear them on the Zoom call,” said Hunter.
Restaurants
Chicago-based businessman Rich Carollo knows how to roll with the punches. And that’s a good thing – given the fact that he’s the owner of promo products supplier, Lion Circle (asi/67620), and a family restaurant, Flo & Santos. Both businesses operate in industries that have been T-boned by the COVID-caused recession.
Still, Carollo is finding ways to keep business moving. In the session with Cohen, Carollo talked about how Flo & Santos has been able to hold on, thanks to its ample takeout services. Once partial reopening was allowed, its large atmospheric beer garden also helped.
Hey #promoproducts pros: Creative packaging and new ideas for marketing are things restaurants are looking for. Insight from #ASIPowerSummit
— Chris Ruvo (@ChrisR_ASI) October 22, 2020
In that, there are insights for promo pros on which prospects to target among restaurants. Carollo said dining establishments that do takeout and offer some outside seating will fare better than fine dining establishments that do not.
“Guys with takeout will be above water. For the fine dining guys, the next six months are going to brutal,” he said, noting that winter could dampen sales in colder weather locales like Chicago as the icy temperatures inhibit outdoor eating.
Interestingly, that cold could also present sales opportunities for promo. Carollo said his restaurant is interested in scarves, mittens and blankets – all items people can buy to support their favorite local place and wear to keep warm while dining outdoors in winter.
Another in-demand solution is creative packaging, especially boxes for takeout and delivery services. Flo & Santos has, for example, given out desserts for takeout in decorated boxes. Of course, distributors can also help restaurants generate revenue by focusing on people’s desire to support their local family-run place, said Carollo. This can include setting up an online store where patrons can purchase the restaurant’s branded merchandise, from apparel to bar accessories and more.
Education
Kate Hornberger is an associate marketing director for the executive education program at the Wharton School of the University of Pennsylvania – one of the most prestigious business education institutions in the world.
Like so many in higher education, Hornberger and her team had to dramatically change what they do when the pandemic struck, which included shifting more of their focus to online and reducing spending on items that included promotional products.
Still, Hornberger believes promo has an important part to play in higher education. As an example: Internal studies have shown that Wharton/Penn attendees have a deep affinity for the brand. That translates into a desire to sport the school’s logo. “They want to wear the brand. They want water bottles that display it. They want people to know they went to this school,” said Hornberger.
"Think about the challenges clients are facing and be part of their solution." Kate Hornberger at the #asipowersummit
— Chris Ruvo (@ChrisR_ASI) October 22, 2020
Classes and programs that formerly would have been held in person are now being held online. Even so, that’s opened the potential for more people to possibly join the program, as geography and travel are not limiting factors. That could translate to more people that desire logoed gear. It also, Hornberger noted, presents distributors with the chance to help education clients create a sense of camaraderie among dispersed student bodies through branded merchandise.
“Think about the challenges clients are facing and be part of their solution,” said Hornberger, who noted that many buyers potentially exist at educational institutions and that distributors should network to connect with as many as possible. “Think outside the traditional box.”