A TRANSATLANTIC COLLABORATION?

News - 2024/04/03

A look back at the international conference at CTCO 2024

The dialogue surrounding collaboration between the United States and Europe in the promotional products industry is open. In a recent round table at CTCO 2024, European associations shared their perspectives on the potential for synergy between the two continents.

 

Michele Bell, VP of Editorial Education and Special Events at ASI, provided insights into the immense US promotional market. ASI boasts 20,000 distributor members, 3,500 supplier members, and 1,000 decorator members, reflecting the scale of the industry. In 2023, the US market reached $26.1 billion, although growth was relatively flat compared to previous years, partly because of the impact of COVID-19.

Despite its robust supply chain, Michele noted that the US lags behind Europe in terms of sustainability. European companies have been pioneers in adopting sustainable practices, with the European market being 10 to 15 years ahead. While the US is making strides to catch up, the demand for sustainability from major clients, including Fortune 500 companies like Amazon and Microsoft, underscores the importance of prioritizing environmental initiatives in the promotional products industry.

Also, Michele highlighted some key strengths of the US market: agility and efficiency. “We’re not great at sustainability, but we’re very fast to market” she noted. American companies excel in rapid turnaround times and embracing technological advancements. Additionally, there’s a cultural affinity for branded merchandise in the US, making it a fertile ground for promotional products.

However, Antony Villeger, president of 2FPCO (French Federation for the promotionnals products) emphasized Europe’s advancements in environmental standards and regulations. Recognizing the US’s proficiency in supply chain management, Antony stressed the importance of collaboration in bridging these gaps. “We have to work together because you are better than us in the supply chain,” he acknowledged.

Tom Robey, the Membership Director of the UK Association BPMA, highlighted the interest of American companies in partnering with UK counterparts to access the European market.

The conversation also touched upon cultural differences in promotional practices. Michele Bell noted that while promotional items are ubiquitous in the US, they may not hold the same significance in Europe, particularly in political contexts. Nevertheless, there are unique opportunities in Europe, such as sports licensing merchandise, which could appeal to American companies.

The discussion culminated in a reflection on the necessity of collaboration and the role of industry alliances. The creation of initiatives like the Promo Alliance, a partnership between ASI, PSI, and Sourcing City, exemplifies efforts to facilitate cross-border partnerships. These alliances serve as conduits for businesses seeking reputable partners abroad.

Looking ahead, Emilio Estellés, president of the Spanish association AIMFAP emphasized the need for harmonization within the European promotional market, particularly in light of sustainability goals outlined in Agenda 2030. “We have to work all together with the same direction” he urged, emphasizing the transition towards sustainable promotional products.

In conclusion, the conference underscored the importance of dialogue and collaboration between the US and Europe in the promotional products industry. While challenges exist, there are multiple opportunities for mutual learning and growth, paving the way for a more interconnected and sustainable future.

Replay the entire conference on our WebTV!