6.8%
Expected increase in global information technology spending in 2024.
(Gartner)
Technology companies have faced revenue declines as employees across the business world have returned to the office and in-person activities resumed en masse. Crunchbase reports that more than 191,000 workers in U.S.-based tech companies were laid off in 2023, and downsizing continues into the first months of 2024. However, there’s optimism for gradual recovery in this sector. Global IT spending is expected to increase as much as 6.8% to $5 trillion in 2024, according to IT research company Gartner, though other analysts say the growth will be slower.
Overall, tech is a growing field, and companies particularly on the rise include cloud computing, digital health and telemedicine, cybersecurity and software solutions such as CRM, project management and collaboration tools.
As with the fluctuating nature of technology itself, innovation is a requirement when working within this market. Being smarter and more creative with how you approach this industry as well as leaning heavily on technology to streamline your own processes can lead to tighter partnerships and substantial payoffs.
Product Pick
A custom laptop or travel bag, such as this American Tourister computer backpack (100153-001), is a high-end offering for tech companies with younger employees who value style, functionality and frequent travel with their devices.
Product Pick
These auto-pairing wireless earbuds (7197-22) will be a beloved staple product for any techie. Even assuming most employees already have a pair, there’s no harm in having two – one to keep at the office and one to keep at home.
3 Distributor Tips
With clients like Samsung, Netflix and Tesla, John Infantino, founder of California-based Brand Vessel (asi/145158), knows a thing or two about standing out in the tech market. He notes that it’s essential to approach this sector with a keen understanding of market trends and sophisticated consumer preferences.
1 Save them time. All clients want distributor partners who help ease their busy schedules, but tech clients really expect this. “Everyone wants things done faster and more efficiently,” says Infantino. “It’s ‘The Amazon Effect.’ We’ve developed our own ordering tools and focus heavily on technology to streamline processes for our clients.” Bottom line: Leverage technology, especially with your tech-driven clients.
2 Raise the bar. Tech clients are requesting higher-end recognizable brands. No more “cheap tchotchkes,” as Infantino says. He notes that investing in high-quality promotional merchandise demonstrates a company’s stability and confidence in its offerings, especially amidst economic uncertainties, like we’ve seen in the tech industry the last few years. “Gifting higher end items,” he says, “serves as a tangible representation of their brand’s commitment to innovation, which is great for events and on-boarding new employees.”
3 Call on the team. Tech clients are often sophisticated when it comes to marketing, and they want a strategic partner, not a product pusher. “Get your creative teams involved early in the project,” he says, “and develop a comprehensive marketing strategy that drives engagement, fosters loyalty and, ultimately, contributes to their bottom-line success.”