The Promoincentigiftawardreward Business

The PPAI Expo ended a couple of weeks ago--OK, three weeks ago (hey-I've been busy), but some of the stuff I saw/learned there should be recapped for those who weren't there.

Vegas changed this year--maybe it changed last year but the real changes weren't evident until now. But there is a much closer tie between the "Promotional Products Business" and the "Incentive Business" than I recall in prior years. To wit:

(First--a note of Full Disclosure: As Events Committee Chair for PPAI I have a vested interest in the ongoing success of Expo--I also will bring my company (Samsonite) into the PP market in 2008.) That said--to wit:

• The Brands are moving closer together, and congregating in one place. Even Cross--a company with strong Promotional Products ties--moved upstairs to be closer to the rest of the Brands.
  
• Brands met with Show Management to discuss the possibility of a Branded Products Pavillion at the 2009 Expo. The discussions were very preliminary, and no decisions have been made, but there's a real sense that the Brands are in favor of some sort of "show within a show" that specializes in Retail Brands and somehow "filters" the attendees.
• There is nothing close to unanimity about this concept--there are strong positions on both sides and each has its own valid points. And there will be no requirement that all the Brands exhibit in this concept--I'm 99.999% sure that Bic and 3M will have no part of it.
  
• My point has been that what happens in 2009 is important, but what will happen in 2010 and beyond is the real issue. Expo is sold out--this means the 90 or so Brands that aren't at Expo now will have to find a spot somewhere down the road. We have the unique opportunity to create a "home" for Brands--the ballroom next to the upstairs section of the hall will allow for 4-6 years of decent growth before IT becomes insufficient.
  
• It's also a matter of undeniable fact that not all PP distributors "get" Brands or even want to. Having a segregated area creates an additional step that those who "get" us will have to make, but that also allow us to create and execute education (probably through IMA and/or IMRA) that will help us tell our story to a sliver of the distributor audience.
• Some Brands are concerned about the location--will there be enough "buzz" to get distributors to make the effort? I give my proxy on that to Darel Cook, who said in Vegas "I'm in the business of creating 'buzz'--that's not a problem from our view". Expo has "buzz" in bushel baskets--just ask Pete Erickson if he'd like to have the "buzz" in Chicago that Expo has...
• I applaud PPAI for even considering such a concept--there will be considerable blowback from "traditional" Promotional Products Distributors about why this small band of Brands gets its own Pavillion--there are plenty of political mines to avoid before this becomes a fully executed plan.
  
• Another issue that faces Expo (and, by association, all of the exhibitors and attendees) is the challenge of trying to make such a large show more "intimate". Our Committee is trying to brainstorm ideas so if you've got a bright one I'm all ears.
• The mood on the floor was optimistic, but with a wary eye towards the mid-to-latter part of 2008. Recession storm clouds are visible, and the upcoming election will present the electorate with a very clear choice of direction. The mood of the electorate may translate to the willingness of corporations to spend on incentives and/or Promotional Products.

It was a productive week--Gary Slavonic and I did the IMA presentation on how Resellers can sell incentives and it was pretty well attended. There is room for optimism that the merger of all the businesses that make up "special markets" will create new opportunities for all of us. I sense a continuation of the trend of breaking down the walls between the "incentive" and "promotional products" businesses and that's a good thing--as Benjamin Franklin once said "We must all hang together or surely we will all hang separately..."


Pete