CANADIAN NEWS September 22, 2020
PPPC Hosts First Virtual Nat Con
The digital show floor was open for two days and welcomed suppliers and distributors from across Canada.
For the first time, the annual National Convention of the Promotional Product Professionals of Canada (PPPC) went virtual on Sept. 16 and 17. On a specially built online platform, PPPC welcomed 33 exhibitors and 800 attendees with 11,515 booth visits over two days.
The events were kicked off by an international panel moderated by PPPC President and CEO Jonathan Strauss, who welcomed Paul Bellantone, president and CEO of PPAI; Carey Trevill, CEO of the British Promotional Merchandise Association (BPMA); and Wesley Fawaz, CEO of Australasian Promotional Products Association (APPA) in Melbourne, Australia.
Trevill said she had only been in the CEO position at BPMA for about a week before the UK went on lockdown because of COVID, when “everything ground to a halt.” Now, the UK is experiencing another spike in cases, so the industry is moving forward cautiously, she said.
In Australia, the industry was down about 70% to 90% in April and May, said Fawaz. While much of Australia and New Zealand has opened up and improved, Melbourne is still largely locked down. Fawaz said a quarter of his organization’s members are in the city and surrounding area, and they’re down about 80% overall.
Bellantone said the drop-off in mid-March in the American market was “drastic,” about a 75% to 80% fall in a matter of days. While many distributors have been able to shore up their operations with the sale of PPE, “that’s not a long-term play for our industry,” he said. “The rebuild will be based on decorated product, not PPE. It’s helped a lot of distributors but not as many suppliers.” PPAI research indicates that the industry is slowly recovering by about 4% to 5% a month. “The industry was worth $25 billion in in Q1 this year,” said Bellantone. “We won’t see that until the end of 2022.”
In the meantime, industry companies continue to sell PPE where they can, but it’s created challenges for some. In the UK, regulations are very strict, said Trevill.
“PPE has been the bane of my existence,” she said. “European Union regulations are very complicated. It’s not for the faint-hearted, and they’ve caught some people out. Others did their entire year’s revenue in two months. Now, we’re moving into branded face coverings – that’s where the market sits.”
While PPE shored up many companies, Bellantone said those sales are starting to level out as PPE orders return to their original pharmaceutical equipment sources within the normal supply chain.
Fawaz said that to really see improvement in the industry, Australia’s borders need to open up and events must return. “They’re such an important driver for promo products,” he says. “The government here is planning to inject $50 million into business events.”
One aspect of the industry that’s been brought into sharper focus by the pandemic is the importance of relationships with clients, vendors and employees, said Fawaz. A distributor member of APPA even took the time to visit every single employee working at their home to say hello. “Businesses spend a lot of energy on bringing in new customers, but we’re really seeing a shift towards nurturing relationships on a more personal level,” he said. “Our members are building relationships and morale.”
For those hoping for a return to “normal,” Bellantone said that’s a relative term; the industry should instead focus on where they are now and move forward from here. “We keep waiting for ‘normal,’ but ‘normal’ wasn’t perfect either,” he said. “Let’s be smart about what we want back and reshape businesses based on what we aspire to be, versus what they were and how vulnerable they were.”
On the virtual show floor, suppliers were eager to get their new products in front of attendees. E-Xuan Chen, B2B marketing specialist at StickerYou (asi/89791) in Toronto and Counselor’s Fastest-Growing Canadian firm in 2017, said its most popular products at the moment are holographic and glitter stickers for personalizing home offices and virtual student desks, while eco-safe rolls of labels have been used for sealing takeout containers at trendy restaurants focusing on environmentally conscious branding.
“I think most distributors are excited to get back at it,” he said of his experience at the virtual show. “I’ve received a lot of requests for ideas for customers, so that’s always a great thing.”
Newell Custom Writing Instruments (asi/84833) has a number of new pen styles, including the Sharpie S-Gel and the high-end Parker Jotter London.
“We’ve had good traffic and engagement,” said Brian McLaughlin, a senior account executive for Newell based in Brampton. “We’re getting more comfortable with the format. Virtual can’t replace the in-person shows, but it’s necessary and will probably stay even when face-to-face shows resurface. I’m expecting a hybrid show format in the future.”
In many ways, the pandemic has been a boon for Toba Sportswear (asi/91408), a wholesale blank apparel distributor in Winnipeg. President Hartley Hyman said they’ve been able to serve clients, many of them outside Toba’s region, whose normal supply chains were disrupted by COVID. The virtual show too has allowed Toba to get in front of a larger audience.
“We don’t normally exhibit in national shows, so this has allowed us to reach out to many across the country in an economically viable and safe way,” said Hyman. “More and more out-of-region customers are contacting us trying to find that less-popular item that we may carry when others don’t, or items and sizes on backorder elsewhere.”
For other suppliers, their products are being used as protective accessories in health-conscious environments. The mats from Creative Mat Inc. (asi/47213) in Richmond, BC, are higher end and more permanent than floor decals and stickers for social distancing, said accounts executive Christopher Maringka. They also offer counter shields, which clients have been ordering at the same time as the mats. And the Contactless Essential Tool (12186) from Promo Plastik (asi/79896) in Saint-Jean-Port-Joli, QC, is lightweight and provides a generous imprint area.
“I’ve loved the show so far,” said Marie-Hélène Marier, the general manager of Promo Plastik. “We’ve had more exposure than usual, which is awesome. The format is cool and I’m having fun, even though I love traditional shows as well.”
To meet the need for work-from-home and auto safety kits as many people hit the road for their vacations, Justin Case (asi/63698) in Markham, ON, has continued putting together custom kits, many of which include PPE items. “We custom-build all of our kits and can customize them according to needs and budgets,” said President Max Baer, the chair of PPPC. “We’re also doing a lot of fulfillment with drop-shipping to individual addresses.”
Ann Baiden, CEO and founder of Richmond Hill, ON-based Innovatex Solutions Inc. (asi/231194), attended the show and said it took some getting used to. “I found that it took a little time to wrap my head around the new concept, but once I did, it had good value,” she said. “It wasn’t quite the same as seeing industry colleagues in person, but l found the focus was more knowledge-based than product. That was an unexpected twist.”
Among the virtual shows he’s attended recently, this one was the closest to in-person, said Danny Braunstein, the Winnipeg-based vice president of sales and business development for Talbot Promo (asi/341500) in London, ON, and a PPPC director. “In addition to being able to view new products, the messaging and video chat functionalities made it really easy to get caught up with old friends.”