NARSI -- Promotional Products Industry · promotional, lifestyle and gift products to several hundred thousand companies ranging from small enterprises to global corporations, through

NARSI -- Promotional

Products Industry

Jeff Brown

President, Polyconcept North America – Hard Goods Division

Global Head Product Development

March 2, 2016

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Polyconcept is the world’s largest supplier of promotional products, operating on five

continents and selling to over 100 countries around the globe. With main offices in the

US, Europe, Hong Kong, Canada and China, the company supplies a wide range of

promotional, lifestyle and gift products to several hundred thousand companies ranging

from small enterprises to global corporations, through a network of advertising specialty

distributors.

Polyconcept International Markets (PCIM) was formed in September 2013 to streamline

sharing of knowledge and resources between Polyconcept’s international partners. Via

PCIM, all partners around the world benefit from convenient access to the continually

refreshed portfolio of strong brands and competitive sourcing ability developed by

Polyconcept North America and PF Concept Europe.

PCIM works directly with Polyconcept’s Global Supply Team, a network of established

and trusted suppliers powered by Polyconcept on all continents. So wherever you are,

there is a Polyconcept partner who can give you access to our complete range of brands

and services.

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Oasis Kazakhstan

Australia

Singapore

South Africa

Colombia

Mexico

Russia

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“We are witness to a seismic change in consumer behavior. Any company sitting here today that embraces the status quo as a business proposition … is literally facing a collision course with time. Navigating the seismic shift will continue to be very, very difficult for me.”

Howard Schultz CEO Starbucks

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• Expectations of 24/7 access to information and seamless, multi-channel experience

• Empowered buyers – more self-sufficient, less brand loyalty

• Less reliant on traditional hierarchical structures; favor more open, flexible networks for work, communication, etc.

Demographic

Shifts

• 48% of B2B buyers are aged 18-34 – up from 27% in 2012

• Buyers under the age of 35 are 131% more likely to make online corporate purchases than those over 35

• 94% of B2B buyers report that they conduct some form of online research before purchasing a business product

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• Ease of access to new markets and customers has redefined historical supply chains

• Universal payment systems, logistics networks and communications allows for direct-to-manufacturer interaction

• Product trends and innovation are now ubiquitous

• Increased demand and expectations for global fulfillment solutions

Globalization

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• Fragmented supplier and distributor landscape with limited scale/size

• Closed channel structure - follows traditional, linear hierarchy

• Relative low investment/adoption of technology – inefficient networks

• Mismatch of age/capabilities to support next generation of end-buyers

Market

Dynamics

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Industry & Market Trends – ASI 2015

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Growth Opportunity drives Structure

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What drives our success

• External inputs Consumer trend analysis

Retail trend analysis

Category trends in retail

Competitive/brand analysis

• Internal Inputs Category performance review – what is working/not

New Product launch review – what is working/not

Assortment review/planning – pricing, customer lifestyle,

product overlap

Internal brand performance review

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Customer Profile Boards

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2016 Inspired Design

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What drives our success

• Focus Design briefs

Sourcing opportunities

Development factories/Vendor Panel review

opportunity

• Intelligent inventory investment

• Launch Frequency

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PCNA Global Color Chart

PANTONE 186C18-1763 TCXRED

PANTONE 186C18-1763 TCX RED

PANTONE 187C 19-1761 TCXGAME DAY RED

PANTONE 20 2C19-1656 TCX MAROON

PANTONE 20 2C19-1656 TCX MAROON

PANTONE 222C19-2428 TCX BURGUNDY

PANTONE 222C19-2428 TCX BURGUNDY

PANTONE 195C19-1726 TCXGAMEDAY MAROON

PANTONE 485C18-1561 TCXROTATE BRIGHT RED

PANTONE 20 1C19-1557 TCXROTATE RED

TRIMARK

PCNA GLOBAL COLOR CHARTS

CORE RED & MAROON

LEED’S BULLET

PANTONE 186C18-1763 TCX RED

PANTONE 20 0 C18-1761 TCX W ENGER RED

358- TEAM RED / ROUGE19-1761 TCXPANTONE 187C

369- VINTAGE RED / VIEUX ROUGE19-1656 TCXPANTONE 20 1C

384 - MAROON / MARON19-1617 TCXPANTONE 50 5C

PF

ATTENTION: Pantone reference numbers are for reference ONLY.

Light reflect ing from fabric weave may appear different

depending on light ing condit ions. Please use actual sample for any logo

embellishment reference or precise color match reference.

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Other topics

• Entering Markets

• What excites me

• Challenging economies

• Characteristics that win

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Key Industry Trends

• Slower Growth Industry with pressure on margins throughout the channel, new avenues for growth

• Demographic shifts – distributors getting older while end buyers getting younger

• Digital transformation – transparency of pricing, access to information, informed buyers, use of aggregators

• Importance of data, knowledge, “more” to create value for all

• Greater access to products – direct sourcing, internet transparency

• Industry consolidation – suppliers, distributors

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