20 Sales Volume Study: Report 18 Annual Estimate of U.S ...€¦ · Figure13: Total Retail Branded...

P R O M O T I O N A L P R O D U C T S A S S O C I A T I O N I N T E R N A T I O N A L

20 Sales Volume Study: Report

May 2019

18 Annual Estimate of U.S. Distributor Promotional Product Sales

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Prepared For: Promotional Products Association InternationalLead Analyst & Author: Michaela Mora, President, Relevant InsightsProject Manager: Moumita Das, Research Manager, PPAICopy Editor: Danielle Renda, Associate Editor, PPAIReport Design: Ashley Treadway, Graphic Designer, PPAI

TABLE OF CONTENTSEXECUTIVE SUMMARY 4

PURPOSE OF THE RESEARCH 5

KEY FINDINGS 6

Figure 1: 10-Year Industry Performance 6

HISTORICAL CONTEXT 7

Figure 2: Historical Sales Data, 1974-2018 7

COMPARISONS BY COMPANY SIZE 8

Figure 3: U.S. Distributor Market Size, 2018 vs. 2017 8

Figure 4: Market Share by Company Size, 2009-2018 8

Figure 5: Industry Sales by Company Size, 2014-2018 9

Figure 6: Small Company Sales Average, 2009-2018 9

A SECOND SOURCE OF REVENUE 10

Figure 7: Percentage of Small Distributors Selling “Mostly Other Things” 10

WHAT ABOUT PROFITS? 11

Figure 8: Profit Experience, 2018 vs. 2017 11

NON-INDUSTRY SUPPLIERS 12

Figure 9: Percent of Business with Non-Industry Suppliers, 2009-2018 12

Figure 10: Total Sales with Non-Industry Suppliers, 2013-2018 12

ONLINE BUSINESS 13

Figure 11: Total Online Sales, 2013-2018 13

Figure 12: Online Sales Percentage of Business, 2013-2018 13

RETAIL BRANDED PRODUCT SALES 14

Figure 13: Total Retail Branded Products Sales, 2018 14

Figure 14: Retail Branded Products Sales Percentage of Business, 2018 14

EXPECTATIONS FOR 2019 15

Figure 15: 2019 Sales Predictions 15

Figure 16: 2019 Profit Predictions 15

Figure 17: Top 10 Reasons to Expect Profit Increase in 2019 16

Figure 18: Top 10 Reasons to Expect Same Profit in 2019 17

Figure 19: Top 10 Reasons to Expect Profit Decrease in 2019 18

APPENDIX: RESEARCH METHODOLOGY 19

SALES VOLUME STUDY │ 2018

4

Distributors of all sizes saw sales volume increases in 2018, but small distributors emerged as top players with more than 12 percent growth, reaching a $24.7 billion record. This growth on behalf of small distributors was enough to recalibrate the balance between large and small distributors, to some extent, by capturing more of the total industry sales volume (44 percent vs. 42 percent in 2017).

Overall, distributors’ collective sales volume increased by 6.27 percent, driven mainly by sales from small distributors (annual sales under $2.5 million). This group experienced a +12.27 percent increase over 2017, while larger companies saw only a +1.92 percent growth.

Brief Overview

Both sales and profit expectations for 2019 are lower than the expectations made for 2018, both large and small distributors. General and local economic conditions were more frequently considered in both sales and profit predictions. Some distributors are already weighting in the negative impact of tariffs imposed on Chinese imports.

In 2018, the number of companies with sales under $2.5 million that reported promotional products sales grew to 23,400 from 22,721 in 2017. This may be due to the expanded list of companies invited to participate in the survey, which is reflective of industry changes as more small printing and graphic design companies enter the promotional product space. The number of large companies reporting sales over $2.5 million remained relatively unchanged (840 vs. 843 in 2017). The total number of U.S. distributor companies, both large and small, was 24,240, compared to 23,564 in 2017.

The share of online sales of promotional products continued to grow, representing 25.3 percent of the total sales volume in 2018, up +2.1 percentage points from 23.2 percent in 2017. Total online sales grew by +16.2 percent to $6,271,520,254, compared to $5,396,657,848 in 2017, driven by increases among both large (+15.1%) and small distributors (+20.2%).

On average, distributors engrossed $3,749,022,818 in sales of promotional products from non-industry providers, 15.2 percent of the total dollar volume. Overall, sales from non-industry providers increased by +10.6 percent over 2017.

2019 Projections

EXECUTIVE SUMMARY


5

Since 1965, the Promotional Products Association International (PPAI) and its predecessors have secured data on the annual sales of distributors. The information is used primarily to measure industry growth and to convey to prospective buyers of promotional products the magnitude of the industry and the wide acceptance of the products it produces and sells.

The current methodology of study was adopted in 1983 after an extensive examination of the strengths and weaknesses of sales reporting methods used by several other marketing-related industries, including mass media advertising. Since then, the basic methodology and the objective of the research have remained unchanged to produce a valid estimate of distributor sales in the United States. Modifications have been reviewed over time by PPAI’s Market Research Committee and expanded where needed, with assessing internet activity in business sales.

With few exceptions—largely in the aftermath of the 9/11 terrorism-abetted economic downturn in 2002 and the global recession in 2008—this annual estimate of distributors’ sales has shown a general increase in business over the years, and has even eclipsed the growth rates in many mass media advertising and promotion alternatives. As a result, the survey has become an important resource in revealing the changing picture of the promotional products industry over time.

Responses projected across the entire distributor population combine sales for small companies (under $2.5 million) and large companies (over $2.5 million) to determine the total promotional products dollar volume. The survey methodology is described in more detail in the Appendix on page 19.

PURPOSE OF THE RESEARCH


6

$15.6B$16.6B

$17.7B $18.5B$19.8B $20.0B $20.8B $21.3B

$23.3B$24.7B

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

In 2018, distributors’ promotional product sales collectively grew at a steady pace, with a mean increase of 6.27 percent over 2017, and industry sales grew more than $24 billion dollars, or $24,746,578,839 (Figure 1).

KEY FINDINGS

Overall, 63 percent of companies reported increased sales, compared to 60 percent in 2017, while fewer saw declining sales (18.8 percent in 2018 vs. 21.1 percent in 2017). Compared to 2017, more large distributors reported increased sales in 2018 (81 percent vs.71 percent respectively). The number of smaller distributors with increased sales remained relatively unchanged (60 percent in 2018 vs. 59 percent in 2017), but the average total sales volume in this segment was larger due to increased volume across distributor categories.

Small distributors with sales between $1-2.5 million experienced the highest growth (+27.3%), followed by those with sales between $250,000-500,000 (+4.2%). Distributors with sales up to $250,000, and those selling between $500,000 and $1 million, experienced more modest growth (+1.8 percent and +2.2 percent, respectively). The increase across all categories averaged to a total growth of +12.27 percent for the small distributor segment.

Figure 1: 10-Year Industry Performance


7

$0.8B$0.9B$1.1B$1.3B$1.5B$1.8B$2.0B$2.3B$2.4B

$2.8B$2.9B$3.1B

$3.8B$4.0B$4.2B$4.5B

$5.0B$5.1B$5.2B

$6.2B$7.0B

$8.0B$9.5B

$11.9B$13.2B

$14.9B$17.9B

$16.6B$15.6B

$16.3B$17.3B

$18.0B$18.8B

$19.4B$18.1B

$15.6B$16.6B

$17.7B$18.5B

$19.8B$20.0B

$20.8B$21.3B

$23.3B$24.7B

197419751976197719781979198019811982198319841985198619871988198919901991199219931994199519961997199819992000200120022003200420052006200720082009201020112012201320142015201620172018

Growth

9.6%17.8%16.9%20.0%17.2%11.4%15.2%5.1%16.4%5.0%4.3%24.2%3.7%5.1%7.7%11.9%2.4%1.8%19.2%12.6%14.7%18.1%25.1%11.0%13.3%19.5%

-7.3%-5.6%5.6%5.9%4.1%4.3%3.5%-6.9%

-13.6%5.9%7.0%4.4%7.2%1.1%3.8%2.4%9.3%6.3%

Historically, the industry has experienced solid growth, with the exception of the 2001-2002 and 2008-2009 downturns impacted by global events. Since the 2008-2009 recession, the industry continues its steady growing trend (Figure 2).

HISTORICAL CONTEXT

Figure 2: Historical Sales Data, 1974-2018


8

COMPANY SIZEBY SALES REVENUE

Number of Companies

2018 Sales Volume 2017 Sales VolumeAnnual Growth

Small Companies < $2.5M 23,400 $10,994,099,736 $9,792,129,462 12.27%

Large Companies > $2.5M 840 $13,752,479,103 $13,493,850,947 1.92%

All Companies n/a 24,240 $24,746,578,839 $23,285,980,409 6.27%

In terms of market share, the 840 firms representing large companies (over $2.5 million) captured $13,752,479,103 of the business, a 55.57 percent share. It should be noted that the large-company segment included franchisors, which report for their franchisees (the list of franchise and distributor networks can be found in the Appendix on page 21). Sales from smaller distributors as a group amounted to $10,994,099,736, or 44.43 percent (Figure 3).

COMPARISONS BY COMPANY SIZE

In 2018, small distributors grew at a higher rate (+12.27%) with total orders of approximately $10.9 billion, rebounding from almost negligible growth (+0.89%) in 2017, while for large distributors the average growth slowed. Distributors in the $2.5 million-plus bracket recorded sales of $13.7 billion, showing a gain of +1.92 percent over 2017 (Figure 4).

It is necessary to note that for the 2018 survey, the universe of companies invited to participate was broadened to include more companies (e.g. printing, graphic design) that may be expanding their services to include promotional products distribution as the industry evolves. This has a direct impact on the estimation of the total number of small distributors reported and the total sales volume for this segment, and reveals a relatively new industry change.

Figure 4: Market Share by Distributor Size, 2009-2018

Figure 3: U.S. Distributor Market Size, 2018 vs. 2017

50% 51% 51% 50% 51% 50% 45% 46% 42% 44%

50% 49% 49% 50% 49% 50% 55% 54% 58% 56%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Large Companies

Small Companies


9

Company Size 2014 2015 2016 2017 2018Annual Growth

Small Companies

< $250K $1,846,568,885 $1,770,604,678 $1,595,736,108 $1,697,870,003 $1,728,413,057 +1.80%

$250K-$500K $1,530,260,232 $1,481,662,627 $1,581,337,042 $1,753,476,883 $1,826,290,910 +4.15%

$500K-$1M $2,207,506,975 $2,562,181,430 $2,508,215,895 $2,520,331,225 $2,574,805,007 +2.16%

$1M-$2.5M $4,329,256,589 $3,441,922,613 $4,020,627,032 $3,820,451,352 $4,864,590,762 +27.30%

Large Companies

< $2.5M $10,128,636,250 $11,551,799,373 $11,599,015,380 $13,493,850,947 $13,752,479,103 +1.92%

Total $20,042,228,931 $20,808,170,722 $21,304,931,457 $23,285,980,409 $24,746,578,839 +6.27%

$368K$407K $423K $415K

$443K $431K $418K$450K

$431K$470K

2009 2010 2011 2012 2013 2014 2015 2016 2017 20182009 2010 2011 2012 2013 2014 2015 2016 2017 2018

$367,777 $407,114 $422,505 $415,251 $443,018 $430,563 $417,846 $449,835 $430,912 $469,833

All small company categories saw an increase in sales in 2018. The most notable growth was found among companies in the $1-2.5 million segment with a +27.3 percent increase in sales (Figure 5).

The average revenue for the 23,400 firms in the small-company segment was $469,833 compared to $430,982 in 2017, while the median—that is, the midpoint where half the population is above and half is below—was $130,150, compared to $150,000 in 2017.

Figure 6: Small Company Sales Average, 2009-2018

Figure 5: Industry Sales by Company Size, 2014-2018


10

46.1%

39.5%44.8%

41.0%

34.9%

43.5%39.7%

37.4%

25.7% 26.1%23.5% 23.2%

32.7%27.5%

2011 2012 2013* 2014 2016 2017 2018

Number of companies with less than 80% of sales in promotional products

Percentage of promotional products sales

*new methodology implemented

Promotional products continued to be a second revenue stream for many small and large distributors, but this year, more “full-time” distributors participated in the study. Full-time distributors are those that dedicate 100 percent of their business operations to serving the promotional products industry. In 2018, fewer small companies that participated in the survey (39.7%) did less than 80 percent in sales of promotional products (Figure 7). These distributors sourced 27 percent of their revenue—down from 29 percent in 2017—from promotional product sales and 73 percent from other fields. Sales from these dual-revenue source distributors accounted for 27.5 percent of the sales volume in the small-company segment, a 32.7 decrease over 2017.

A SECOND SOURCE OF REVENUE

Figure 7: Percentage of Small Companies Selling “Mostly Other Things”


11

16%8% 15%

28%

16%

27%

56%

75%

59%

Small Companies Large Companies Total

Greater than 2017

Same as 2017

Less than 2017

2018 Profits Were…

On average, the number of distributors reporting profit growth in 2018 increased slightly over 2017. Nearly six in 10 (59%) distributors had greater profits over the prior year, compared to 56 percent in 2017. Large companies gained the most, with 75 percent reporting higher profits compared to 68 percent in 2017. The increase in the number of small companies with profit gains was modest—56 percent in 2018 compared to 54 percent in 2017 (Figure 8).

WHAT ABOUT PROFITS?

Figure 8: Profit Experience, 2018 vs. 2017


12

17% 17% 17%19%

12% 11%13% 12% 13% 13%

16%18%

15%

20% 19%

12% 13% 14%16% 17%

2009 2010 2011 2012 2013* 2014 2015 2016 2017 2018

Small Companies Large Companies

$1.2B $1.0B $1.2B $1.2B $1.2B $1.5B

$1.9B$1.2B

$1.5B $1.6B$2.2B

$2.3B

$3.1B

$2.3B$2.7B $2.8B

$3.4B$3.7B

2013* 2014 2015 2016 2017 2018

Large Companies

Small Companies

Annual Growth

+20.8%

+4.8%

+10.6%

On average, business with non-industry suppliers continued to increase overall. However, it slowed slightly among large companies, who did 16.51 percent of their business with non-industry suppliers, compared to 16.05 percent in 2017. On the other hand, small distributors reported doing 13.45 percent of their business with outside suppliers in 2018, a more notable increase from 12.50 percent in 2017 (Figure 9).

NON-INDUSTRY SUPPLIERS

Collectively, distributors of all sizes sold $3,749,640,219 in products from non-industry providers in 2018, or 15.10 percent of the total dollar volume. Overall, sales from non-industry providers increased by +10.6 percent over 2017 (Figure 10). A significant increase was observed among small companies with +20.8 percent growth.

Figure 10: Total Sales with Non-Industry Suppliers, 2013-2018

Figure 9: Percent of Business with Non-Industry Suppliers, 2009-2018




13

11%14%

9% 10% 12% 12%17%

22%27% 28%

32%34%

2013* 2014 2015 2016 2017 2018


$1.1B $1.4B $0.8B $0.9B $1.1B $1.4B

$1.6B$2.2B $3.1B $3.3B

$4.3B$4.7B

$2.7B

$3.6B$3.9B $4.2B

$5.4B$6.0B

2013* 2014 2015 2016 2017 2018

Large Companies Small Companies Annual Growth

+20.2%

+8.9%

+11.3%

Online sales are defined as purchases resulting from orders placed through an online store or website. Web sales—not to be confused with salespeople transmitting orders online—are estimated to be $6,007,044,117, or 24.3 percent of total industry sales. The proportion of online sales to total sales in the industry continued to increase from +23.2 percent in 2017 to +24.3 percent in 2018. (Figure 11). Overall, the online sales volume collectively increased by +11.3 percent, driven by increased online sales from both large (+8.9%) and small distributors (+20.2%). Both distributor segments have steadily increased their online sales volume, particularly large distributors moving more than one-third (33.8%) of their sales volume online (Figure 12).

ONLINE BUSINESS

Figure 12: Online Sales Percentage of Business, 2013-2018

Figure 11: Total Online Sales, 2013-2018




14

$1.9B

$1.8B

$3.7B

Large Companies

Small Companies

17%13%


Retail branded products are defined as consumer-facing, brand-name products that add a sense of distinction to incentive and recognition programs, as well as individual end-user gifts. Examples include: Yeti; Maui Jim, Inc.; TUMI; Nikon, Inc.; and many more. Asked for the first time in the 2018 survey, sales of retail branded products were estimated to be $3,663,403,430, or 14.8 percent of the industry total sales (Figure 13).

RETAIL BRANDED PRODUCT SALES

Figure 14: Retail Branded Product Sales Percent of Business, 2018

Figure 13: Total Retail Branded Product Sales, 2018

Among large distributors, nearly all (96%) sold retailed branded promotional products, compared to 79 percent of small distributors in 2018. However, when compared to the proportion of sales volume for large distributors to the total sales of small distributors, the latter proved larger (Figure 14).


15

6% 3% 6%

31%24%

30%

63%73% 64%


Greater than 2018

Same as 2018

Less than 2018

2019 Profits Expected to be…

Nearly seven in 10 distributors that participated in the 2018 survey were optimistic about both sales and profit projections for 2019, specially large companies; however, compared to predictions made for 2018, fewer distributors predict increased sales in 2019 in both segments (Figure 15). Lower expectations were also found concerning profits. Fewer distributors in both segments expect higher profits in 2019 (Figure 16).

EXPECTATIONS FOR 2019

Figure 16: 2019 Profit Predictions

Figure 15: 2019 Sales Predictions

7% 15% 6%

25% 17% 24%

68% 80% 70%


Greater than 2018

Same as 2018

Less than 2018

2019 Sales Expected to be…


16

26%

18%

13%

10%

8%

7%

4%

4%

4%

4%

New business development

Year-to-date sales

Advertising and marketing efforts

Experience and company history

National economy, market trends, local economy

Increased salesforce

Change in pricing strategy / better margins

Improvements in business practices

Returning clients / increased sales from existing clients

Expansion to other market segments and product categories

“Expanded marketing, streamlined sales process, greater conversions of new leads.”

Quotes from companies about the reasons attributed to increased profit predictions:

“New prospecting and marketing programs to reach more clients, including sponsorship of marketing conferences and direct mailings of self-promo items.” “Current client business, overall

economy, acquisition of new clients, increase in company store business.”

More than a quarter of companies that expect greater profits in 2019 based their predictions on new business development efforts (seven percentage points over 2018 predictions). Many also considered increased sales during the first quarter of this year. In 2019, there are more distributors focusing on marketing and advertising and fewer on pricing strategy changes to increase profit margins. Expectations based on the current state of the local economy, market trends and the national economy also increased for 2019 profit predictions among many distributors.

Expect Greater Profit in 2019

Figure 17: Top 10 Reasons To Expect Profit Increase in 2019 (n=674)


17

17%

17%

16%

8%

8%

4%

3%

3%

3%

3%

Experience and company history

Year-to-date sales


New business development

Same customer base

Customer feedback

Advertising and marketing efforts

Scaling down business

Change within client organizations

Increased salesforce

“Forecasting a downturn in economy in second half of 2019. Aware of loss of

one large customer. Expect to gain customers in health care field.”

“Past experience with good economy and bad economy.”

“Volatile markets and tariff changes.”

Quotes from companies about the reasons attributed to same profit predictions:

“Economy/market conditions. Account stability. Sales initiatives. Skills development/coaching. Focus on ideal accounts.”

Like in prior years, distributors that expect unchanged profit margins based their predictions mostly on company history and year-to-date sales. However, the national and local economic conditions play a greater role (16%), compared to three percent in 2017 predictions. Uncertainty about the role of tariffs is also weighing on distributors’ predictions.

Expect Same Profit in 2019

Figure 18: Top 10 Reasons To Expect Same Profit in 2019 (n=305)


18

18%

13%

13%

11%

10%

8%

7%

5%

5%

5%

Scaling down business

Lost customers

Year-to-date sales

Competition from online distributors

Tariffs


Change within client organizations

Competition from other distributors and suppliers

Lower margins

One-time orders that will not repeat

“Tariffs reducing overseas business due to higher prices. Very slow

January and February sales volume.”

“Loss of a few large clients and competition from online sales along with larger promotional products companies able to provide lower quotes than my small company, because of their discounts from factories due to their buying power. Some quotes my clients have received from other promotional products companies are lower than what I can even purchase the item for, leaving me out of the bidding process.”

“I have lost a few really good accounts that always bought

from local distributors but now bid out to anywhere per website

information. They offer VERY LOW MARGIN—five percent over

cost. We can’t survive on that.

“Economy, one-time larger orders from last year not repeating, China tariffs.”

Quotes from companies about the reason attributed to lower profit predictions:

Similarly to 2018, the most common reasons cited for lower profit predictions in 2019 include plans for retirement and lost customers. Competition from online distributors rose in the rank, while tariffs and concerns about the economy are new factors to consider among the top 10 reasons for lower profit predictions.

Expect Less Profit in 2019

Figure 19: Top 10 Reasons To Expect Profit Decrease in 2019 (n=61)


19

PPAI has researched and released industry sales data since 1965. PPAI’s annual distributor Sales Volume Study is generally considered the most definitive and comprehensive of its kind in the industry based on

APPENDIX: RESEARCH METHODOLOGY

To compile the 2018 estimate of U.S. distributors’ promotional products sales, the survey was distributed via email and mail to both PPAI member and non-member distributor companies. As in the past, the sample was drawn from several industry databases, which were merged with PPAI proprietary data to identify more than 29,000 distributor companies. Companies had the option to answer the survey online or return it by mail. The top 50 distributors were also reached by phone to ensure their information was included in the analysis since omission of any distributor with a large volume of business could distort the statistics. A census of all distributors doing $2.5 million or more in sales was also included. Combining samples from the different data collection methods used resulted in a total of 24,240 distributor surveys covering the entire U.S. industry.

As incentive to complete and return questionnaires, respondents were eligible for a random drawing to win their choice of three prizes. Completed replies collected by internet, phone and mail produced 1,166 usable surveys (3.91 percent response rate). Combined with census data, this provided a total of 1,845 records used in the analysis (±2.2 percent margin of error at the 95 percent confidence level).

Those surveyed were asked to provide the following information:• Total 2018 gross sales in the U.S.• Percentage of total 2018 gross sales in the U.S. strictly from promotional products • Percentage of 2018 promotional products sales generated online • State in which their company was located (headquarters, if multiple locations) • Percentage of 2018 promotional products sales in state location• Percentage of 2018 promotional products sales from industry and non-industry suppliers• {NEW} Percentage of 2018 promotional products sales that are retail branded• Changes in 2018 promotional products sales in comparison to 2017• Changes in 2018 promotional products profits in comparison to 2017• 2019 promotional products sales predictions in comparison to 2018• 2019 promotional products profit predictions in comparison to 2018• Explanation of 2019 predictions• 2018 promotional products’ product category sales• 2018 promotional products’ program category sales • 2018 promotional products’ industry category sales• Affiliation with franchise or distributor networks *respondents identifying themselves as franchisees were deleted in order to prevent duplicate reports

actual sales reported by U.S. promotional consultant companies. In 2018, the survey was conducted between January and March 2019 by Relevant Insights LLC, an independent market research agency, on behalf of PPAI.


20

Company Size Market Share/Weight

Small Companies 44.43%

Large Companies 55.57%

The sales volume was first calculated separately for both small (under $2.5 million) and large companies (over $2.5 million). For small companies, sales reported by this group is averaged (in 2018, this was $469,833) and then multiplied by the number of smaller companies (23,400) to project the entire small-distributor population. This approach is designed to compensate for undetected duplication and to avoid inflating the small-distributor population. For large companies, reported sales in the survey are added to sales data from the census of large companies to project the entire large-distributor population. The subtotals of each group are added to estimate the total distributor promotional products sales for the entire U.S. industry, and the market share of both large and small distributors. This information is used later as weights to estimate sales volume by categories and programs for the whole industry. The 2018 industry sales volume estimated market shares (used as weights) by each company group are indicated below.

In 2013, a different calculation method was used to estimate the percentage of business done by companies whose core business is outside promotional products (less than 80 percent), the percentage of business done online and with non-industry providers. The change was motivated by the need to provide a more consistent approach to all metrics measured. The same method was used for all surveys after 2013.

In 2018, the universe of companies invited to participate in the survey was broadened to include more companies (e.g. printing, graphic design) that may be expanding their services to include promotional products distribution as the industry evolves. This has a direct impact on the estimation of the total number of small distributors reported and the total sales volume for this segment.


21

• AIA Corporation• AIMastermind Group• Deluxe / Safeguard• FASTSIGNS• Geiger• HALO Branded Solutions

• iPROMOTEu• Kaeser & Blair Incorporated• Minuteman Press• PeerNet Group• Premier Group• Proforma

• Signal Graphics• Sir Speedy• The Partnering Group• Universal Unilink Purchasing

Associations

Promotional ProductsIncludes, but is not limited to, ad specialties, premiums, business gifts, incentives, awards, prizes and commemoratives

Online Sales Unaided orders generated online; sales resulting from customer orders placed through an online store or website. Not to be confused with transactions made online by employees.

Industry SuppliersSuppliers listed with PPAI, ASI or SAGE

Non-Industry SuppliersSuppliers NOT listed with PPAI, ASI or SAGE

Retail Branded SalesSales of consumer-facing, brand-name products that add a sense of distinction to incentive and recognition programs, as well as individual end-user gifts. Examples include Yeti; Maui Jim Inc.; TUMI; Nikon Inc.; and many more.

Franchise / Distributor Networks

Definitions


22

Year Sales Volume % Growth Year Sales Volume % Growth

1974 $841,090,990 n/a 1997 $11,874,907,786 +25.10%

1975 $921,835,730 +9.60% 1998 $13,178,944,927 +11.00%

1976 $1,085,922,500 +17.80% 1999 $14,937,546,446 +13.30%

1977 $1,269,443,500 +16.90% 2000 $17,854,482,234 +19.50%

1978 $1,525,871,200 +20.00% 2001 $16,552,291,971 -7.29%

1979 $1,787,863,300 +17.20% 2002 $15,626,739,093 -5.59%

1980 $1,991,679,800 +11.40% 2003 $16,341,132,020 +5.57%

1981 $2,294,415,200 +15.20% 2004 $17,311,730,376 +5.94%

1982 $2,411,430,400 +5.10% 2005 $18,013,763,753 +4.06%

1983 $2,806,904,700 +16.40% 2006 $18,779,654,661 +4.25%

1984 $2,947,249,972 +5.00% 2007 $19,440,837,547 +3.50%

1985 $3,075,031,425 +4.30% 2008 $18,101,298,808 -6.89%

1986 $3,818,000,000 +24.20% 2009 $15,638,571,468 -13.60%

1987 $3,959,000,000 +3.70% 2010 $16,560,162,075 +5.89%

1988 $4,161,000,000 +5.10% 2011 $17,721,945,690 +7.00%

1989 $4,480,354,632 +7.70% 2012 $18,497,646,229 +4.38%

1990 $5,012,299,487 +11.90% 2013 $19,826,873,723 +7.19%

1991 $5,129,843,059 +2.40% 2014 $20,042,228,931 +1.09%

1992 $5,220,251,205 +1.80% 2015 $20,808,170,722 +3.82%

1993 $6,222,347,119 +19.20% 2016 $21,304,931,457 +2.39%

1994 $7,008,438,092 +12.60% 2017 $23,285,980,409 +9.30%

1995 $8,037,054,605 +14.70% 2018 $24,746,578,839 +6.27%

1996 $9,490,373,011 +18.10%

Table 1: Historical Sales Data, 1974-2018


23


2011 $1,522,309,399 $1,447,605,584 $2,969,914,983

2012 $1,701,432,193 $1,729,939,381 $3,431,371,574

2013 $1,178,431,204 $1,879,391,412 $3,057,822,616

2014 $1,044,140,636 $1,245,972,263 $2,290,112,899

2015 $1,209,834,573 $1,478,987,929 $2,688,822,502

2016 $1,198,421,547 $1,627,492,237 $2,825,913,784

2017 $1,224,271,317 $2,165,518,375 $3,389,789,692

2018 $1,478,816,446 $ 2,270,206,372 $3,749,022,818

Annual Growth +20.8% +4.8% +10.6%


2011 $9,083,857,500 $8,638,088,190 $17,721,945,690

2012 $9,179,119,591 $9,318,443,338 $18,497,562,929

2013 $10,087,516,005 $9,739,357,718 $19,826,873,723

2014 $9,913,592,681 $10,128,636,250 $20,042,228,93

2015 $9,256,371,349 $11,551,799,373 $20,808,170,722

2016 $9,705,916,077 $11,599,015,380 $21,304,931,457

2017 $9,792,129,462 $13,493,850,947 $23,285,980,409

2018 $10,994,099,736 $13,752,479,103 $24,746,578,839

Annual Growth +12.3% +1.9% +6.3%

Table 3: Sales Volume by Company Size, 2011-2018

Table 2: Total Sales with Non-Industry Suppliers, 2010-2017

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