Since the third quarter of 2000, most discussions about the print industry have been characterized by gloom and pessimism. Seldom mentioned is the fact that several segments of the industry have seen increasing demand and are projected to grow at above-average rates in the near term. Here are some of those segments:
Labels: Tremendous growth in private label branding has fueled demand for labels. A study found that from l997 to 2002, private label consumer products grew by 38 percent compared with 19 percent for branded products. That growth rate will continue or accelerate as an increasing number of products are private labeled.
This marketing phenomenon also is characterized by decreasing print quantities. Many of these labels are printed offset rather than flexo. Federal regulations soon will require changes in food labeling. For instance, trans fat content will be a required listing for nutritional information. Country-of-origin labeling has been postponed, but soon may be required. The federal government might require restaurants to include nutritional information on menus.
Print salespeople will need to research to find private label manufacturers, regardless of the consumer product category. Manufacturers' names are rarely found on products, but it will be worth the effort.
Packaging: Packaging trends are similar to label trends. Quantities are smaller than ever, as consumer product manufacturers segment markets. For instance, stand in front of the vitamin display at your local pharmacy. You'll find vitamins for seniors, vitamins for children and vitamins for women. You'll see caplets and tablets, and innumerable vitamins for specific needs and afflictions. In the food business, many packaged and canned products are sold in regular and low-cal versions.
Promotional Products: The term "advertising specialties" is product-based, but encompasses two distinct purposes: sales promotion and incentives (including employee, dealer and customer incentives).
If recent economic difficulties have a positive dimension, it's the increased appreciation of first-rate customers and employees. Expenditures for incentives have increased steadily in recent years, but substantial opportunities remain to sell small- and medium-sized businesses on the benefits of incentives and promotional products.
Magalogs: Few buying organizations will contact you with an interest in starting a magalog. In fact, most people haven't heard the term, although purchases of magalogs totaled about $2 billion last year. A magalog is a bound product with a single advertiser, the content of which is about half editorial matter and half products and services for sale. Successful magalogs have been published by banks, software companies and supermarkets, which need to educate the public about their products and services.
Consider reviewing your list of active accounts to identify candidates for a magalog. The product can benefit both consumer and business-to-business marketers.
Selling labels, packaging, advertising specialties and magalogs requires a mindset and approach that's markedly different from traditional sales behavior. In the case of private label manufacturers, the "big building" approach may not be successful. Buying organizations are rarely household names. In most cases, selling magalogs and advertising specialties requires creating demand for them--you must sell the ideas of these products to organizations that haven't used them.
Despite signs of economic recovery, selling printed products won't become easier. Competitive price pressures will continue. Still, opportunities are substantial for people willing to think outside the box and understand customers' businesses well enough to offer printing that will help customers achieve their business objectives.
Contributing Editor Dick Gorelick is an award-winning authority on sales, marketing and business strategies for the printing industry. As president of the Graphic Arts Sales Foundation in West Chester, Pa., he travels extensively, consulting, writing and speaking on sales training.
