The global retail industry has transformed over the past few years and continues to witness tremendous growth. Consumer preference, although on a continuous evolutionary path, inclines toward products from a familiar and trusted vendor. Capitalizing on that, vendors provide promotional giveaways in the form of gifts and prizes, which serve two purposes. To begin with, promotional giveaways act as an advertisement for the company, its brands or products. Also, they help retail the consumer-base for a vendor, and increase the number of loyal consumers. In today’s era, consumers are more aware and concerned about the product quality and the vendor’s credibility than we think.
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As a result, it is critical for vendors to have loyal customers, who would not change the vendor unless provided with a reasonable alternative. Promotional tags, given to regular or prospective customers of a brand, are usually carried in person by the consumer, and therefore indirectly act as brand ambassadors for the product or company. The high preference for promotional tags can be attributed to the reasons mentioned above.
There are several reasons why the global promotional tags market is expected to see a steep rise in terms of sales, over the forecast period (2017-2027). The promotional tags market is anticipated to grow on the backdrop of retail sector growth, which is currently staggering around 3%. Other contributing factors are, increase in disposable personal income, which is up by an estimated 3% from last year. This can be attributed to increase in average income of an individual. Emerging economies are witnessing this on a much larger scale than developed regions. From a supplier perspective, promotional tags are useful for increasing the number of loyal customers, which indirectly leads to increase in savings.
It costs much less to serve a loyal customer who is familiar with the line of service, than a new customer who is only beginning to use the products of that company. The factors which are expected to act as drivers for the global promotional tags market are, customizability – promotional tags are small and portable and come in a variety of sizes and shapes, which in turn, has more appeal to consumers. Promotional tags are small, and usually carry the company’s logo, which helps the company use the loyal customer as a resource to increase brand awareness. Competition among vendors is in terms of shape and design of promotional tags.
Major factors that might acts as restraint for the promotional tags market are – alternative advertising solutions, such as ote displays, growing tendency of brands to leverage the benefit of IoT to increase brand awareness. Also, disrupting factors cannot be overlooked, as any new entry in the market that appeals more to the modern consumer than traditional brand advertising, can take the market by storm.
Some of the key players operating in the global promotional tags market are – National Band & Tag Company, Universal Tag, Inc. and Gemini Industries.
