Promotional trends in 2023 and how to prepare

09 Jan

Many businesses are already planning for 2023 to stay ahead of the competition. There are a lot of social and economic forces that affect the promotional product industry. Because of the pandemic, geopolitical tensions, and economic uncertainty, this year will be unlike any other.

But businesses can’t just stop thinking about 2023 and wait to see what happens. Business leaders need to make plans now if they want to keep growing and stay. To help you find clarity in the midst of uncertainty and move forward with confidence, in this article, we talk about 3 trends that will influence the promotional industry and how you can prepare for them.

Complex Buyers

According to Gartner, about 80% of B2B sales interaction between suppliers and buyers will occur digitally talking internally and researching products before buying them.

The level of sophistication of buyers and customers is growing, especially post-pandemic. Buyers are conducting more research using social media, websites, or their networks than ever. The pandemic’s enormous disruption has changed many of our ingrained routines and attitudes. While some of these changes could only last a short while, others have longer-term consequences for the future.

The key is to provide more information and data. Which will not only build credibility and relationship with your customer but, most importantly, help them to make better purchasing decisions.

Continued Global Supply Chain Issues

We can’t discuss the promotional products industry without mentioning the supply chain. It will be a significant topic in 2023 as it still seems bleak for this year, as mentioned by Alyce in their blog

As we saw during the pandemic, a problem in one part of an operation process can be noticed not for a few months but might keep happening for years after that. In addition, it’s about more than just the shipments; for example, a localized power outage could hinder the manufacturing process’s functionality.

From a lack of workers and materials to plant shutdowns and heat waves, these cascading effects show that the promotional product industry will be unstable.

Because of this, it’s even more important to talk about upcoming events and seasons (like the holidays) or trade shows. This planning will help brands ensure that deliveries go smoothly and have enough stock. It will also give them extra room in case something goes wrong.

It has been shown that digitizing old supply chains makes them work better. McKinsey found that a supply chain that uses tech cuts logistics costs by 15% increases inventory levels by 35%, and improves customer service by 65%.

Global Recession

The economy is already slowing down. There is increasing agreement among analysts that a recession will hit the US economy in 2023. However, the promotional sector can be optimistic as this industry is remarkably resilient, and due to the anticipated technology boom, it will recover more quickly. Every recession in recorded history has differed in duration, impact, and resolution. The first thing to understand is the necessity of beginning preparation and planning before the economy formally enters a recession. If you don’t have the right tools and planning, recovering could be more difficult or even impossible. Here are a couple of ways you can prepare –

Analyze Costs and Identify Assets to Protect

Rather than taking a reactive approach, it is critical to be more proactive and consider your costs and assets in advance. Many businesses feel that during a recession, they must reduce all expenditures, including sales and marketing as well as R&D. However, it is preferable to determine what is required to run the firm by breaking down flexible and fixed costs, then take the time to eliminate the remainder.

Invest in technologies

Determine which technologies will be crucial for your company’s success, and invest money. Even a small investment in automation can make a big difference. Technologies can help you support growth on the back end of the downturn and become more resilient by :

Easily automate your platforms.
Reduce labor costs and human error.
Effortlessly integrate your order and shipping platforms.
Integrate PromoStandards with your company’s internal data.
Increase organizational effectiveness
Create more opportunities for sales

Flexibility and timing will be critical factors when handling the volatility and capitalizing on the new year’s potential. The operation’s success will depend heavily on efficiency, technology, and excellent communication.

PromoLink has many years of experience in the promotional industry and has helped many players specialize their integration for their specific operational needs and requirements.