Welcome to the New Age

There are some people in the promo product industry who don’t know what a fax machine does. Okay, maybe an exaggeration. But not totally farfetched.

There are also some older companies that strictly use fax machines to send purchase orders.

That’s the kind of dichotomy that exists in this industry.

I’m obsessed with innovation and competition. Especially in older industries like promo. Without competition, things would get stagnant. You can still choose to be stagnant (ahem, fax machines), but you’ll have a tougher time.

That’s why I love promo. Success is right there for the taking — but you’ve got to innovate.

Companies like Swag.com, Swagup, and Stitchi built their own technology platforms from scratch in order to reduce friction in the promo ordering process. No more countless emails or missed phone calls. They are all-in-one swag platforms where you can shop, ship, and store your items easily. Their account services are flawless and they continue to update their offerings. For these companies, automation is the name of the game.

There’s a company called Merchery, that only sells sustainable, planet-friendly promo items.

There’s CommonSKU, a Customer Relationship Management, Order Management, and eCommerce platform that helps promo distributors of all shapes and sizes run their own businesses.

Cannabis Promotions, going against the grain, strictly sells accessories and promotional products related to the cannabis industry.

Bonfire is a free online platform where anyone can design, sell, and buy custom products.

Harper + Scott is a best-in-class promotional design agency creating products for the world’s leading brands.

There’s newness happening everywhere.

The 2020 Pandemic bore no shortage of new-age gifting platforms. Want to send gifts to employees or clients across the country or around the world without having to touch the goods? They make it super easy to send items to anyone (or even 1,000 people) with a few clicks of a button.

STADIUM, a startup that helps people engage and thrive in the live-and-work anywhere world, owns a plethora of gifting brands: Snackmagic, Swagmagic, Dept. of Superior Dishes, TeamBuilds, CPGPulse, SnackDrop, and is launching Tap+Cork this winter. 

Some others include:

• Snappy

• Brilliant

• Goody

• Loop & Tie

• &Open

• Alyce

• Sendoso

• Postal

In an arms race seemingly, Goody raised $32.1m, Snappy raised $104.8m, and STADIUM raised $15m for Snackmagic, according to Crunchbase.

Jeremy Picker, the founder of AMB3R Creative, had a few interesting, yet cautiously optimistic thoughts on the rapidly growing “New School” companies:

“I am seeing a lot of “Old School” product-pushing with the “New School” technology-driven companies. Soon the kitting & packaging platforms will plateau and they will become the norm. I think the “New School” will be creative-driven agencies. Not logo slapped on tons of products, but original, design-forward, full custom products that actually build the client’s brand vs watering it down. Ease of use should be the norm, but what is being sacrificed for automation? I am not seeing many of the “New School” companies leading with creativity.”

Picker also mentioned a few companies combining creativity with “New School” scale: Kotis Design and Anthem Branding. Kotis Design is an ASI Top 40 distributor.

The harsh truth is that the force of innovation comes for every industry. Social media, aviation, major league sports, and yes, even the promo product industry.

Another industry veteran once told me that the promo product industry is always 10 steps behind. I used to wholeheartedly agree.

But then I found out about the companies I mentioned above through first-hand use and research. They are changing the game in real time. We all know the world moves at an ever-increasing and exhausting fast pace. Those still using fax machines will be left behind.

The “Old School” may still have the opportunity to make some choices though:

• They can acquire or merge with innovators. For example, CustomInk acquired Swag.com in 2021.

• Mom and Pop distributors can also sell their book of business to bigger distributors. ASI reports on this quite frequently.

• They can adapt and build their own new-age platforms. Halo has done an expert job of this. However, this is a lot more difficult to do within older organizations. Bureaucracy, red tape, and egos can get in the way.

• Social media advertising is also an option. Posting on Tiktok, Twitter, Instagram, and YouTube consistently can garner more clients. Printavo, a software company for print shops, has a whole series where they travel and highlight the very shops in their target demographic.

• OR “Old School” companies can continue to do what they do. Some may absolutely stay the course and be successful. Not doubting that. But many will not be able to sustain once-obtained momentum and market share.

Regardless of these companies’ respective choices, the cream will rise to the top. It always does. We’re already seeing it and I truly believe we are just getting started.

I’m sure there will be more to discuss on this topic down the road. This is Part I. In Part II, I’d love to feature additional quotes and stories from more movers and shakers in the industry. 

Feel free to reach out on Twitter and send your thoughts.

And please share and forward on to your colleagues, it would be so helpful!

Until next week,

J.