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The Chairman of the leading trade body, the
British Promotional Merchandise Association (BPMA), refers to the promotional
industry as `one of the fastest changing sectors in the business world', and it
is undoubtedly true to say it is one that has undergone remarkable growth in
recent years. From an industry which traditionally had a downmarket image, it
has evolved into one of increased sophistication and specialisation, well aware
of the importance of creativity, accurate targeting and better quality
products.
The recession years of the early 1990s were, in part,
responsible for the change in image and attitude as corporate gift givers and
those involved in promotional merchandise recognised the need to move away from
the previous practice of using mass and inferior `give-aways'. Emphasis is now
put on quality to a much greater extent, with a marked tendency towards branded
goods.
Two recent surveys report on the improved fortunes of the retail
sector, predicting that the mini-boom will continue until 1999 and stating that
profit margins of UK retailers are now the highest in Europe. As the UK economy
continues its predicted growth, the promotions industry will benefit from an
increased volume in sales whilst maintaining the advantages derived from
recognising the necessity of using superior quality merchandise.
Key
Note estimated the value of the corporate and promotional gift market at
£840m in 1996, representing an increase of 8.4 percent on the figure of
£775m for 1995. In turn, the figure for 1995 represented an increase of
4.4 percent on 1994's value of £742m.
The market is expected to continue
to increase at approximately 4 percent per year to reach £1.04bn in 2001. The
clothing, stationery and publishing sectors will see the largest percentage
increases, while the jewellery, umbrellas and trophy sectors are not expected
to grow at all.
Text © 1997 Key Note
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Last updated by Duncan Nottage 5th March 1999