Some Corporate CEOs Are Reconsidering Where Promo Fits in Their Budget
This week, a report in the Wall Street Journal indicated that some CEOs are putting in place cost-saving measures due to recession fears. Some of those cost-saving decisions could include limiting "corporate swag" and promotional products.
It sounds like the end of corporate promotional products as we know it, with brands in the tech industry especially keen on decking their office spaces and employees out with branded merchandise. But, as PPAI pointed out, it's not quite as dire as it might seem.
But, CEOs indicated that they are looking to be more discerning about when they use promotional products. Axon Enterprise Inc., which sells taser guns and body cameras to police departments, named a "swag czar," who will approve orders for branded products.
The era of the kindler, gentler CEO is fading. As the economy worsens, corporate chiefs are bringing back blunt talk, performance reviews and the swag police https://t.co/L19HTclqLN
— The Wall Street Journal (@WSJ) August 4, 2022
"Sometimes we get to where we need a swag detox," Axon CEO Rick Smith told the Wall Street Journal. "Not every event needs a T-shirt."
This isn't the first time that business owners have considered cutting promotional budgets as a way of saving money. And it won't be the last. The promo industry has been in a push-pull relationship with some segment of its customers, as some decide "swag is wasteful" while others find creative and impactful ways to use it.
While these current C-suite types might be paying more attention to where their budgets end up, it doesn't sound like they're cutting promotional products out completely. Like the example of Axon, they're just being more careful about what they buy and when.
For distributors, that might mean being more thoughtful in their approaches and providing solutions that really stand out and appeal to the customer, rather than just throwing another T-shirt at the wall to see what sticks. There's certainly an opportunity here for the promo industry to