| p>The last few years has seen a dramatic shift on | | | | Printer. For manufacturers, one of the factors we |
| the supply side of the U.K Corporate Gifts Market, | | | | can't quantify is the value of the components of |
| particularly by suppliers of promotional pens and | | | | finished pens that are made outside the country. A |
| promotional pencils. Taking a look at the overall | | | | large proportion of the World's manufactured |
| statistics for the market, total imports of products | | | | components are now made in China and assembled in |
| classified as Ballpoint Pens, Felt-tipped Pens and | | | | the country from which they are ultimately exported. |
| Markers, and Fountain Pens have remained relatively | | | | This means that many European and North American |
| static for the last ten years. What has changed | | | | manufacturers are scaling back operations in their |
| substantially is where the products originate. Imports | | | | home countries and in all probability, there will soon |
| from China started to take off in 2004 when they | | | | be very few volume manufacturer's of promotional |
| jumped from £8.6M to £21M in a single | | | | pens or promotional pencils in the Western World. |
| year. Since then imports have grown to | | | | Fortunately there are still gaps in the market for |
| £47.8M in 2008. This means our imports from | | | | niche suppliers of very high quality pens that are |
| China have doubled in the last 5 years, and so far | | | | supported by very strong brand names, and these |
| there is very little sign of this slowing down. Taking | | | | should always have a market albeit probably in |
| promotional pens, Promotional Pencils and other | | | | high-end retail rather than corporate gifts. |
| related products together, imports from China have | | | | Conclusion |
| achieved an average growth rate of more than of | | | | We have been experiencing a time of great change |
| 15% per annum. This in turn means a serious decline | | | | in the Promotional Pens Market during the last five |
| in market share and obvious future operating | | | | years and the strong growth of Chinese imports |
| difficulties for European and North American | | | | seems set to continue at the expense of traditional |
| producers. | | | | suppliers. Since the overall market has shown little |
| Implications for Suppliers of Corporate Gifts. | | | | sign of growth for ten years, there will almost |
| Where there are winners, there are of course losers, | | | | certainly be further movement towards |
| and since the overall Corporate Gifts Market has | | | | retrenchment and consolidation for those who |
| remained more or less the same size, at least as far | | | | continue to have manufacturing operations in the |
| as Promotional Pens and Promotional Pencils are | | | | West. This situation is very similar to the U.K. |
| concerned, some countries we deal with traditionally | | | | automobile industry a few years ago, the most likely |
| have felt a marked fall-off in business. The two | | | | route-map for survival and future prosperity of pen |
| biggest losers in percentage terms are North America | | | | manufacturers in The West lies in developing high |
| where imports have fallen by almost 40% from | | | | quality products targeted at niche markets and |
| £13M p.a to £8M p.a and the EC which | | | | supported by strong brand imaging, or if they want |
| has seen a drop of 9% from £72M to | | | | to continue to be competitive volume manufacturers, |
| £64M. It is evident that the impact has very | | | | by moving production facilities to low cost-base |
| different meanings dependent upon whether a | | | | operations overseas. |
| company is a distributor, manufacturer or Promotional | | | | |