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The Year with a Bang

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The Year with a Bang productmediamagazine.co.uk THE MAGAZINE FORTHE PROMOTIONALINDUSTRY JANUARY/FEBRUARY 2018 STARTTHE YEAR WITH ABANG FIND THENEWEST PRODUCTS AT MERCHANDISEWORLD P21 CREDIT WHERE COUNTDOWNTOGDPR AREYOU READYFOR THE IT’S DUE CHANGE? P37 BPMA RESEARCH INSPIRATIONALSPEAKERS SHOWSVALUE OF LINE UP FORTHE BPMA MEMBERSHIP P4 EDUCATIONDAY P31 6 21 7 39 Contents JANUARY/FEBRUARY 2018 4 Industry analysis 21 Merchandise World 34 SourcingCityawards How financiallyhealthy is the Readour previewofthe new Find outwho tops theindustrycharts merchandisesector? Januaryshow 35 Tippingpoint 6 News 2018 could be theyearwhenAR 28 Showbusiness Around-upofall thelatestinthe becomesbig productmedia sector Update on howthe BPMA is supporting end-user shows 37 GDPR countdown 7 Productofthe month Getting readyfor data regulation What’s hotfor 2018? 29 Make an offer changes Howpromotionscan supportyour 16 AskClive business 39 BPMA news What does organiccottonoffer? Allthe latest news andevents 18 Professionalattitude 31 Education Day 42 Tenfromtwo Howthe Canadian merchandise What’s in storeatthe BPMA’s Debbie Willsmer andKiron Phillips sector is advancing annual festival of learning? answer thequestions WELCOME Well anotheryear choosefrom. As partners to PSIand finalising thesuppliermystery shopper passes -how quick aco-founderofMerchandise World, resultsand we will be sharing this on wasthat? As Igo we hopeour membersdosupport 1FebruaryatMerchandise World. into 2018,Istartmy thesetwo major events.Ihaveto Thebig news storyof2017was 11th year at thehelm sayour suppliersinvest thousands thedemiseofDukes which certainly of theBPMA. In those on exhibitions to showcasenew affectedour industry considerably yearssomuchhas productsopleasedosupport them. butthe BPMA is determined to learn changed,not only in Thenextbiggestchallenge forthe from it.Our suppliers’ meetingfor the our marketplace,but in our society wholeindustryisthe General Data creditorswas very productive andwe at large. Thereare more sellersof Protection Regulation (GDPR) and nowhaveset up anew suppliers’ forum merchandisenow than ever before. those whodon’t know aboutitneed which will meet regularly.Wehave Thereisalsogreater awarenessamong to know thereare seriousimpacts for also conductedanindustrywidecredit consumersofbrandedmerchandise those that breach it.Underthe GDPR, checkwith interesting findings,which generally,which is no badthing. theInformation Commissioner’sOffice aresharedonpages 4-5. Wherewecan, However, on the flip side,distributors (ICO)can impose finesofupto€20 we will be helpingthosemembers in tell me it’s neverbeensocompetitive million or 4% of groupworldwide financialhardshipwith guidance and with buyers shopping aroundalot turnover.Ifthere is one seminarto support. Let’sbepositiveand hope more. Idon’t thinkthisisgoing to come to itscertainly theone on 31 foranother greatyearand Iwishall change much –it’sthe sign of our JanuaryatMerchandise World–each ourreaders aprosperousNew Year. times. Januaryisgoingtobethe show visitorwill getapractical guideon season of theyear -never before have what they need to do.The lawcomes Gordon Glenister, therebeensomanyexhibitions to into effecton25May 2018.Weare also director general of theBPMA ProductMedia Magazine is BritishPromotional Merchandise Editorial Design andProduction available to thewhole promotional Association [email protected] ATGMedia, merchandiseindustry. BritishPromotional Merchandise Advertising andMedia Pack www.atg-media.com It is theofficial magazine of the AssociationAvenueBusiness Park,Brockley [email protected] Printed by BritishPromotional Merchandise Road,Elsworth, Cambridgeshire,CB234EY. Circulation Mailing GuyLtd Association(BPMA). Allphone enquiries: 0203 8757942 [email protected] Photography www.productmediamagazine.co.uk EditorialServices shutterstock.com www.bpma.co.uk Stuart Derrick Theopinions,beliefsand viewpoints expressedinthispublicationdonot necessarilyreflectthe opinions, beliefsand viewpoints of thepublicationorthe editor.The publishers cannotbeheldresponsible forany loss or damage,nor canresponsibility be acceptedfor anyclaimsbyadvertisers, contributors, or otherpersonsand organisations. No We arealsomembers of thePPA material maybereproduced withoutthe writtenpermissionofthe publishers. News analysis ANALYSIS CONFIRMS THE VALUEOFBPMAMEMBERSHIP With the merchandise sector under the spotlight following recent failings, Mike Collins assesses the comparative financial strength of BPMA member companies he recent demise of Take DukesGlobalLimited industryeffect as, of course, Withthis in mind, the high profile industry forexample. Witharound themajorityoflosses suffered BPMA commissioned its distributors and £7 million sales annually,it should be by non-industry credit management partner Tsuppliers brought again is fair to surmise that with players. However, one very AccountAssyst, to provide intothe spotlight thefinancially industryaverage profit margins important secondaryissue analysis on its membership fragile natureofsome industry of roughly 30%, it should have that almost alwaysmanifests credit strength, in comparison players that previously may had abudget of £2.1 million itself,wheneither asupplier or to non-members’credit ratings. have been considered both forstaffing and overheads. adistributor fails, is that this is The results were revealing. successful and vibrant. The It is almost incredulous that likely to (often unfairly) affect phrase of ‘turnoverisvanity, abusiness of this structure others. Credit analysts react KEY FINDINGS profit is sanity’ springs to mind. and standing could not get withadowngrading of an It is often thecase that its numbers right, and was overall industrycredit rating. •BPMAmembers have a thefailureofany reasonably seemingly being badly runyear- Having thestrongest credit superior credit scoreof51.24 sized distributor impacts upon on-year.Eventually themoney rating and credit limit possible out of 100compared to 34.20 thegeneral industrymuch runs out if thelosses continue. is increasingly important. The out of 100for non-members. morethanasupplier due Quiterecently awell-known stronger your credit rating is in •At£38,511, theaverage to themajorityofcreditor supplier suffered alarge thefirst place then thebetter BPMA member’s credit write-offsthat aresuffered insolvencyand it’stempting to youare positioned to combat limit is morethan double by industrysuppliers. thinkthatthis mayhavelittle anyoverall industrydowngrade. that of non-members, 4 | product media | JANUARY/FEBRUARY 2018 www.productmediamagazine.co.uk News analysis coming in at just £17,567. £2,132 lowerat£12,361. out of 100asopposed to 34.73 CONCLUSION •Onaverage, BPMA members This suggests that more out of 100for non-member have almost twoand ahalf creditworthy distributors, suppliers. The average BPMA Onegeneral conclusion times greater asset value than empoweredtopass credit member is morethanhalf forconsideration is that non-members -£628,204 lines on to sizeable end-users, waytowards theperfect thereisaninevitabilitythat as against £274,319. instead of pro-forma, are credit scoreof100,while theaverage asset value of better placed to deal with theaverage non-member is suppliers when compared It could be said that over futurerepeat orders. Price athirdofthe waythere. to distributors ought to be thelonger term,itpays to alone is one thing, but Withanaverage credit limit of higher.Asupplier often needs be amember of theBPMA. being enabled to offer credit £66,024for supplier members, to invest in manufacturing Membership certainly can only to corporateend-users compared to £31,474for machineryand premises, raise thecredibilityand potential is an added benefit. non-member suppliers, aBPMA so will provide abig swing strengthofany reputableand •The difference in net assets supplier member can expect in this area. Realistically,if serious industryorganisation, between BPMA members at to receivedouble theamount adistributor accrues assets but do all thesepositive trends £217,992and non-members’ of credit. This could mean then this is only likely to be in favour of BPMA membership £152,226 mayperhaps be BPMA supplier members have either in cash held in the extend to bothdistributors regarded as minimal, in so thecapacitytoout-perform bank or if thebusiness is a and suppliers? Let’sbreak muchasit’sonly £65,000 or non-member competitors. A little bigger,perhaps in the down thedatafurther. so in monetaryterms, but this further benefit is theadvantage ownership of abuilding. stillrepresents almost amajor of being able to moreeasily In summary, there’sawell- DISTRIBUTOR MEMBERS strengthdifference between obtain finance fornew known saying that thereis IN COMPARISON TO thetwo.Whichdistributor machinerycosts forexample. strengthinnumbers. Being doesn’t want thesatisfaction BPMA supplier members have part of theBPMAbenefits each NON-MEMBERS to knowing that their business an average net asset value of member in manymoreways •BPMAdistributor members waswortharound 50%more £1,117,922. This illustrates that than first thought. It is more have an average credit than their competitor’s, membersbusinesses maybe than simply being part of a scoreof49.50 out of especially if thereisafuture twiceasstrong as non-member support organisation forthe 100, as opposed to only exit strategy planned? suppliers whose worthis badge, it is an essential part of 34.08out of 100for £577,698.Accrued asset values building abetter business. In non-member distributors. SUPPLIER MEMBERS areasign
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