In South Africa, the promotional products market operates very differently than in the United States, though extremely progressive and professional.

There isn’t a media, marketing and educational organization to service and support the industry. The government has a hands-off approach, not imposing any legislative requirements like Prop 65. And while there are thousands of distributors competing for market share, the space is dominated by only a handful of large suppliers – one of the largest being Amrod.

Amit Brill, co-founder and director of Amrod

“As a result of there being no industry body such as ASI in South Africa, barriers to entry to become a new distributor are very low,” says Amit Brill, co-founder and director of Amrod. “A new distributor often doesn’t need to invest a lot of capital into the business because some suppliers have a comprehensive stock holding backed up by an in-house branding facility. Because of the competitive nature of the industry for distributors, margins distributors make are generally fairly low – 20-25% on average.”

Survival of the Fittest

Founded in 2000 by Brill, Craig Friedman and Nimrod Barlev, Amrod has exploded in growth over the past 20 years. The trio has expanded its workforce to 1,150 employees serving 6,000 distributors throughout Africa. Built upon customer satisfaction, vast product choice, a large inventory, technological advancement and innovation, Amrod has revenue north of $100 million (USD).

The company operates out of over 409,000 square feet of office, warehouse and production space in its Johannesburg headquarters. Specializing in clothing, headwear and corporate gifting, with an array of drinkware, writing instruments and other traditional promo fare, the supplier offers more than 16,000 product SKUs and decorates in excess of 300,000 items daily. Amrod’s technology-centric approach in an ever-increasing digital landscape ensures that customers are equipped with a bevy of online tools, including real-time stock check, online ordering and online artwork approvals.

“We’ve had success because of our proprietary technology system which we continuously innovate,” says Brill. “We focus on service. We’re a one-stop shop for distributors.”

Brill and his two friends discovered the promotional products industry while attending an electronics trade show in Hong Kong. All in their early 20s, the trio decided to sell business card holders and other promotional items to retailers, distributors and end-users.

The business gradually grew and by 2004, Amrod became a trade-only supplier. The following year, the company became an international partner of Polyconcept, bringing the Top 40 supplier’s products and services to the South African market.

In 2007, Amrod mirrored international best practices by pioneering in-house decorating in the country. A decade later, the company boasts a dedicated branding army of over 600 skilled operators who decorate nearly 100% of products sold.

Nine years later, Amrod announced the sale of a majority share to The Carlyle Group – a global alternative asset manager with $212 billion of assets under management across 339 investment vehicles. The founders retained meaningful stakes in the company. “Carlyle brings a strong combination of pan-African experience and global reach, which will support our growth ambitions in the region,” the founders said in a press release.

Amrod currently has branches in Pretoria, Cape Town, Durban, Port Elizabeth, Bloemfontein, Botswana, Namibia, Kenya and Zambia. Brill says the plan is to branch out north to territories that don’t have any formal activity in the promotional products industry. “It’s very difficult to enter the industry as a supplier now because there are two sizable players who supply a broad range of products,” he says. “Having said that, it’s a growing industry and there’s definitely a movement from traditional marketing to promotional products. We’re extremely excited about the future prospects of this industry.”

Refusing to rest on its laurels, Amrod’s expansion continued in 2017 as it acquired Wizard Collective, South Africa’s third largest wholesaler of promotional apparel and gifts. Combining the company’s fast and reliable delivery with its reputation for affordability, quality and design, Brill says the future continues to look bright.

“The focus is on growth in Africa and becoming a larger presence,” Brill says. “We’re opening a branch in April in Nigeria, the most populous country in Africa. Our African expansion is taking shape nicely and we hope to continue opening branches in African countries where we believe there is demand for promotional products yet inconsistent supply.”

Photos