Take 27 market leaders, stir under medium heat...

Special Markets Dialogues was held last weekend.  It's my seventh time facilitating (can it possibly be that many?), and I believe this was the best yet.  We taught, we learned, and discussed the issues facing our market.  And when it was over we created "The Manifesto"--a summary document with the main takeaways from the event. 

Before anyone starts, the use of "Manifesto" is purely comic relief.  We have nowhere near enough arrogance to suggest that our meeting carries sufficient weight to warrant a "Manifesto".  So take a deep breath and know that you are now "in" on the joke. 

Here's the Manifesto:

Thought leaders from the incentive, recognition, and promotional products markets convened in Myrtle Beach, SC for Special Markets Dialogues, held 11/4 and 5 at the Marina Inn @ Grande Dunes.

The group of 27 discussed a wide range of topics affecting the reward and recognition space.  The main takeaways:

1.    2011was a very good year as compared to 2010 and 2009.  While not yet at 2007-08 levels, there is optimism for continued single-digit growth in 2012.

2.    An ongoing reassessment of strategies is happening across all stakeholders in the market.  In particular, social media and other digital technology is fundamentally changing the market.  Companies that ignore the impact of these factors do so at their peril.  Long-tenured technologies must be updated to meet changing requirements.

3.    The supply chain presents considerable challenges for suppliers and customers alike. While some improvements in leadtime and capacity are present, retail brands have constricted inventories based on improved forecasting from their customers.  This will present significant challenges for “one-off” reward programs in 2012.

4.    The market faces ongoing challenges from legislative and regulatory actions, both from the Federal Government and the States.  In particular, Congress may strip tax advantages for certain incentive programs, potentially decreasing the level of spend or eliminating them entirely.  The impact of tax and budget regulations require the market to continue to lobby elected officials to make our voices heard.

5.    The proliferation of “data feed” programs is de-emphasizing the importance of merchandising.  Some clients have learned “more is not necessarily more” and are paring down huge assortments to create a better “fit” for the program participant.

Other topics of interest:

·         Digital delivery of rewards will change the gift card market in fundamental ways.  Providers are moving quickly to leverage this new technology.

·         The Chicago Motivation Show is challenged on a number of fronts.  There is no doubt that our market needs a “meeting place” but serious doubts remain that Chicago, in its current configuration, is that place.  A closer connection between the education sessions and the trade show might bring more buyers to the floor.

·         The promotional products market is stabilizing.  Suppliers that return to basics are enjoying healthy increases over 2010.  Distributors are seeking to shrink their core of suppliers to those that have proved their value. 

·         Forecasting at the client level is challenged.  Special Markets functions of major retail brands have less “excess” inventory for opportunities.  The realities of the production cycle are such that 60-90 days of leadtime are not enough anymore.   Education of the client base is essential to meeting the needs of the market.

·         PPAI is expecting a “flat” attendance at its 2012 Expo in part due to the dates, which are closer to New Years.  ASI will present a full slate of shows across the country as well.  There is interest in continuing “brand” (a retail-brand specific area of the Expo) at regional shows but there are logistics and education issues that must be improved. 

·         A “slow and steady” approach to 2012 should produce gains similar to 2011.  Improvements in technology, client support, and social media are planned by almost all attendees.  Social media is now considered more of an outreach tool—the concept has not yet been monetized and may not be in the near future.  

A lot got discussed.  It was definitely worth the effort.  Now, let's see how it all turns out in 2012...

Pete