Promotional Products in

Industry Report Canada MAY 2017 Industry Report Promotional Products in Canada

2 About this Industry 16 International Trade 27 Key Statistics 2 Industry Definition 17 Business Locations 27 Industry Data 2 Main Activities 27 Annual Change 2 Similar Industries 19 Competitive Landscape 27 Key Ratios 2 Additional Resources 19 Market Share Concentration 19 Key Success Factors 29 Jargon & Glossary 3 Industry at a Glance 19 Cost Structure Benchmarks 21 Basis of Competition 4 Industry Performance 22 Barriers to Entry 4 Executive Summary 22 Industry Globalization 4 Key External Drivers 6 Current Performance 23 Operating Conditions 8 Industry Outlook 23 Capital Intensity 10 Industry Life Cycle 24 Technology & Systems 25 Revenue Volatility 12 Products & Markets 25 Regulation & Policy 12 Supply Chain 26 Industry Assistance 12 Products & Services 14 Demand Determinants 14 Major Markets www.ibisworld.ca | 1-800-330-3772 | [email protected] WWW.IBISWORLD.CA Promotional Products in Canada May 2017 2 About this Industry

Industry Definition Operators in this industry provide industry does not include advertising promotional products, such as key chains, services, public relations services, media buying services, media representation of advertising-related services, including services, display advertising services, promotional product distribution, sign direct-mail advertising services or lettering and window dressing. This marketing consulting services.

Main Activities The primary activities of this industry are Advertising specialty (e.g. keychain, magnet and pen) distribution services (except direct mail) Merchandise demonstration services Display lettering services Sign lettering and painting services

The major products and services in this industry are Desk and office accessories Wearables Writing instruments Drinkware, housewares and other home products Other items and services

Similar Industries Advertising Agencies in Canada Establishments in this industry create advertising campaigns and place them in print or electronic media.

Public Relations Firms in Canada Establishments in this industry design and implement public relations campaigns.

Billboard & Outdoor Advertising in Canada Establishments in this industry provide outdoor display advertising services.

Direct Mail Advertising in Canada Establishments in this industry provide direct mail advertising services.

Additional Resources For additional information on this industry www.asicentral.com Advertising Specialty Institute www.promocan.com Promotional Product Professionals of Canada www.ppai.org Promotional Products Association International www.psi-network.org The International Network of the Promotional Product Industry WWW.IBISWORLD.CA Promotional Products in Canada May 2017 3 Industry at a Glance Promotional Products in 2017

Key Statistics Revenue Annual Growth 12-17 Annual Growth 17-22 Snapshot $1.8bn 2.3% 1.5% Profit Wages Businesses $177.0m $478.4m 4,516

Revenue vs. employment growth Total advertising expenditure Market Share There are no major 10 17 players in this 5 industry 16 e

g 0 io n n 15 -5 $ tril l % ch a 14 -10

-15 13 Year 09 11 13 15 17 19 21 23 Year 08 10 12 14 16 18 20 22 Revenue Employment SOURCE: IBISWORLD p. 23 Products and services segmentation (2017) 8.3% Key External Drivers Writing instruments Total advertising expenditure 13.3% Desk and office accessories Number of businesses 39.1% Corporate profit Wearables Demand from retail trade 14.3% Drinkware, housewares and other home products

p. 4 25.0% Other items and services SOURCE: IBISWORLD

Industry Structure Life Cycle Stage Mature Regulation Level Medium Revenue Volatility Low Technology Change Low Capital Intensity Low Barriers to Entry Low Industry Assistance Low Industry Globalization Low Concentration Level Low Competition Level High

FOR ADDITIONAL STATISTICS AND TIME SERIES SEE THE APPENDIX ON PAGE 28 WWW.IBISWORLD.CA Promotional Products in Canada May 2017 4 Industry Performance Executive Summary | Key External Drivers | Current Performance Industry Outlook | Life Cycle Stage

Executive The Promotional Products industry processing have made it easier for clients Summary generates revenue through the to go directly to manufacturers, distribution of specialty advertising on bypassing industry operators altogether. everyday items, such as mugs, magnets, In addition, consumer safety laws, such calendars and t-shirts. Industry operators as the Canadian Consumer Product do not manufacture these products, but Safety Act of 2011, have increased imprint and distribute a client’s compliance and insurance costs for advertising message on “blanks” industry operators, as all promotional purchased from manufacturers and products, including pens, key chains and industry suppliers. jewellery, must be free of health and Rising consumer spending and wider safety dangers.

boosted advertising budgets over the past Promotional Products industry will continue to face strong external this industry’s services. Additionally, an competition, which includes a continued increase in corporate expenditures on substitute forms of advertising, such as Growth has been constrained by rising external internet, mobile and email marketing.

competition, especially from online sources a move toward integrated advertising campaigns, whereby promotional increase in the total number of Canadian products are used in conjunction with businesses expanded the industry’s other forms of advertising as part of a coordinated marketing campaign. commonly use promotional products to Companies will continue to favour market their businesses, products and services. Due to these positive factors, the advantage of repeated, tangible Promotional Products industry revenue is exposure and potential brand name expected to increase modestly at an recognition. Furthermore, steady annualized rate of 2.3% to $1.8 billion growth in corporate profit and total advertising expenditure will boost 2.2% projected growth in 2017 alone. industry demand during this period. Nevertheless, industry revenue growth Consequently, industry revenue is has been tempered by rising external expected to increase an annualized 1.5% to $1.9 billion over the five years Online cataloguing, ordering and to 2022.

Key External Drivers Total advertising expenditure Number of businesses Changes in media advertising and An increase in the number of businesses other promotional expenditure directly nationwide adds to the industry’s pool of affect this industry. An increase in potential customers, as promotional advertising expenditure and marketing products are an outlet for advertising and budgets will have a positive effect on brand awareness for many new industry performance. Total businesses. Consequently, a rise in the advertising expenditure is expected to total number of Canadian businesses increase in 2017. generally leads to an increase in industry WWW.IBISWORLD.CA Promotional Products in Canada May 2017 5

Industry Performance

Key External Drivers revenue. The number of businesses is Demand from retail trade continued expected to increase in 2017, representing Retail and professional service a potential opportunity for the industry. providers commonly use promotional products to advertise their small Corporate profit business. An increase in retail trade will result in stores having more amount of money that companies allocate money to spend on industry services. to their marketing and advertising Although demand from the retail trade budgets to increase. Therefore, when sector is expected to increase modestly in 2017, any potential decline in demand from retailers will pose a expected to strongly rise in 2017. threat to this industry.

Total advertising expenditure Number of businesses

17 1.5

1.4 16

1.3

lio n 15

Mi ll io n 1.2 $ bi l

14 1.1

13 1.0 Year 08 10 12 14 16 18 20 22 Year 08 10 12 14 16 18 20 22

SOURCE: IBISWORLD WWW.IBISWORLD.CA Promotional Products in Canada May 2017 6

Industry Performance

The majority of Promotional Products Current industry revenue is generated through the Industry revenue distribution of specialty advertising on Performance 4 everyday items like mugs, magnets, calendars and t-shirts. Similar to other 2 advertising industries, the Promotional e

Products industry is highly cyclical and g 0 dependent on downstream corporate n -2

markets. Employment, discretionary % ch a consumer spending and business -4 marketing expenditures all impact industry demand. Starting in 2012, -6 industry revenue improved, as increasing Year 09 11 13 15 17 19 21 23

spending boosted industry demand. SOURCE: IBISWORLD Furthermore, growth in the total number of businesses helped expand the industry’s brand, service or product. Consequently, potential client base, as promotional industry revenue is expected to increase at products are commonly used to help an annualized rate of 2.3% to $1.8 billion newly formed businesses market their

Modest growth which helped bolster demand for Products industry’s return to growth has promotional products. been strengthened by modestly rising Furthermore, from 2012 through 2017,

According to Statistics Canada data and total number of Canadian businesses. Many new businesses, because they lack earned across all industries in Canada is the capital for traditional forms of media expected to increase at an annualized rate advertising, choose promotional products of 2.3%, which has provided the to help market their products or services. foundation for industry revenue Moreover, advertisements on promotional expansion. With more cash on hand, products, such as t-shirts, calendars and Canadian businesses have spent more on advertising during this period. Over the advantage of repeated tactile exposure, which helps potential customers recall the spending is expected to increase slowly at company or brand name. an annualized rate of 0.2%, according to However, in recent years, waning data sourced from the Television Bureau economic indicators will likely pressure of Canada and IBISWorld projections. industry revenue. For example, Canadian Promotional products serve as a relatively low-cost alternative to more estimated 6.3% and 5.8% in 2015 and traditional forms of media, such as TV 2016, respectively. Shrinking corporate and magazine advertising. As businesses remained cautious after the recession and declines in global crude oil and commodity prices, which threatened the customers, lower-priced forms of margins of Canadian natural resource advertising increased in popularity, and mining companies as well as the WWW.IBISWORLD.CA Promotional Products in Canada May 2017 7

Industry Performance

Modest growth businesses that serve these sectors. manufacturers and consumer services continued Nevertheless, an expanding Canadian companies through 2017. Higher demand economy, driven by higher consumer from both these major markets will lead spending, will continue to lift revenue to a projected 2.2% increase in industry and margins of consumer product revenue in 2017.

Industry structure and profit Canadian economy and rising total advertising expenditure encouraged new by rising purchase prices, 2017, the total number of industry operators higher wage costs and is expected to increase at an annualized rate increased regulations of 1.5% to 4,516 enterprises. At the same time, mergers and consolidations were also common during this period. For example, in 26.8% in 2017, as industry operators were April 2015, Staples Promotional Products hesitant to hire workers and increase wages acquired Accolade Promotion Group (APG), given the weakness in the Canadian a leading distributor of promotional commodity and natural resources sectors. products in Canada. Increasing downstream demand and pressured by rising purchase prices and consolidation among the industry’s largest increased regulatory burdens over the past players helped bolster industry margins. industry is related to the procurement of measured as earnings before interest and promotional product “blanks” for taxes, is expected to slightly rise from 6.5% customization. Commonly purchased of revenue in 2012 to 9.9% in 2017. Stagnant promotional products include items like relative wage costs have also contributed to wearables (e.g. hats and t-shirts), writing instruments, bags, drinkware and stickers or wages are expected to rise at an annualized rate of 2.3% to $478.4 million, wages’ share costs have risen slightly as the price of procuring promotional products increased.

Regulation increases products that are manufactured, sold or growth has been a steady increase in distributed in Canada. Consumer regulation. Globalization has also caused products are considered to be any an increasing proportion of the products product that could reasonably be provided by the industry to be obtained by a person for noncommercial manufactured overseas. This trend purposes. Consequently, products contributed to an increase in regulation in distributed by this industry must satisfy June 2011, when the Canadian Consumer CCPSA guidelines. For example, all promotional products, including pens, The CCPSA replaced part one of the key chains and jewellery, must be free of Hazardous Products Act, which had not any health and safety dangers. Penalties been updated in more than 40 years. The for distributing dangerous products CCPSA has implications for all consumer WWW.IBISWORLD.CA Promotional Products in Canada May 2017 8

Industry Performance

competition, as more businesses turn to Industry mobile and internet-based advertising. Outlook growth in marketing expenditures over Industry operators are also expected to face further competition from external increase in demand for promotional businesses, including clothing products. The Promotional Products manufacturers, which will increasingly

movement toward lower-priced or embroidering serves. Consequently, below-the-line promotions that provide Promotional Products industry revenue is an inexpensive alternative to traditional expected to increase slightly at an annualized rate of 1.5% to $1.9 billion will also give rise to greater external

Increased Traditionally, industry operators that competition E-commerce will continue products from suppliers, have them customized with a brand or logo and then to allow customers to distribute them to clients. Industry source products directly operators do not manufacture these from manufacturers products; rather, they customize products

However, the growth of e-commerce, from-manufacturer promotional product along with online catalogues and business model is expected to gain payment systems, will continue to make it easier for customers to source these products directly. As a result, some Promotional Products industry is also potential clients are bypassing industry expected to face mounting competition distributors altogether and going straight from other low-cost and targeted to manufacturers. advertising platforms, such as mobile and Bypassing industry players often web-based marketing. The shift in allows would-be clients to obtain better corporate advertising expenditure toward prices and access otherwise unavailable digital and mobile media will put products. Industry globalization has continual pressure on industry revenue accelerated this trend by making overseas and margins. However, industry factories more accessible to end buyers. operators will continue to receive support For example, US-based apparel from large integrated marketing manufacturer Lands’ End competes in both the US and Canadian Promotional mobile and web-based advertising as well Products industries through its Lands’ as traditional print, TV and radio advertising will be increasingly used alongside promotional products. on its manufactured clothing, such as Companies will opt to add promotional men’s and women’s t-shirts, polos, products into this advertising mix jackets and dress shirts. Lands’ End also because, compared with other forms of

including totes, travel bags, backpacks, tangible and repeated exposure, making blankets and umbrellas. This direct- it more likely that potential customers WWW.IBISWORLD.CA Promotional Products in Canada May 2017 9

Industry Performance

Increased will retain a company’s slogan, message boost brand awareness by creating an competition or brand name. extensive online, TV, print and continued Certain industry players, such as promotional product advertising Integrated Merchandising Systems campaign. The prevalence of integrated marketing campaigns, however, will unfolding trend. IMS is a subsidiary of primarily aid the industry’s largest the Omnicom Group, a global media and advertising company that services many and have the ample resources required to Fortune 500 companies. Thanks to this coordinate promotional product synergy, companies like IMS can serve as advertisements with other forms of a one-stop-shop for clients who want to media exposure.

Industry structure Despite slight projected revenue growth, and profit Industry operators are industry is only expected to rise expected to encounter a plateauing at a projected 10.0% of steady rise in purchasing industry revenue in 2022. Mounting prices external competition from manufacturers, printers and other forms of advertising is expected to put pricing slightly. Furthermore, industry pressure on industry operators. operators are expected to encounter a Furthermore, the industry is expected to slight price hike on other items, as a face greater internal competition, as an projected increase in the global price of anticipated expansion in Canadian likely lead to relatively higher will entice new industry entrants. purchasing costs for t-shirts and other apparel commonly used in this industry. the total number of industry operators is Finally, industry wages are expected to expected to increase at an annualized rate increase an annualized 1.4% to $512.6 of 0.5% to 4,622 enterprises. million over the period. Industry wage Moreover, industry operators are growth, however, will be limited by the expected to encounter a steady rise in increased use of web-based ordering and payment processing systems, which is 2022, as the cost of procuring expected to increase productivity and promotional items, such as pens, pads lower wage costs associated with sales and product distribution. WWW.IBISWORLD.CA Promotional Products in Canada May 2017 10

Industry Performance Life Cycle Stage Industry value added is expected to grow at a faster pace when compared to the overall economy The industry has experienced slow enterprise growth The industry has wholehearted market acceptance

y 20 Maturity Quality Growth Key Features of a Mature Industry Company High growth in economic Revenue grows at same pace as economy

cono m consolidation; importance; weaker companies e level of economic close down; developed f Company numbers stabilize; M&A stage

o importance stable technology and markets

e Established technology & processes r a

h Total market acceptance of product & brand 15 Rationalization of low margin products & brands th in s w o % G r

10

Quantity Growth Many new companies; minor growth in economic importance; substantial 5 technology change

Public Relations Firms Promotional Products Advertising Agencies Clothing & Clothing Accessories Wholesaling 0 Supermarkets & Grocery Stores Trade Show & Event Planning

-5 Decline Shrinking economic importance

-10 -10 -5 0 5 10 15 20 % Growth in number of establishments

SOURCE: WWW.IBISWORLD.COM WWW.IBISWORLD.CA Promotional Products in Canada May 2017 11

Industry Performance

Industry Life Cycle The Promotional Products industry is in Promotions merged with Ontario-based the mature stage of its life cycle. The Astro Wear to form Astro Marketing. industry expected to grow at an This industry also has wholehearted

This industry annualized rate of 1.9% over the 10 years market acceptance, with few new is Mature to 2022, which is slightly higher than the growth markets. As a result, the 1.8% annualized growth anticipated for Promotional Products industry is highly the Canadian GDP during the same dependent on new business growth as period. Normally, a faster growth rate is well as corporate profit margins and indicative of an industry in its growth advertising expenditures. For instance, phase. However, there are other factors demand for this industry’s display and that contribute to the industry’s maturity lettering services is largely determined Moreover, due to market saturation by growth in the number of new and increasing competition from Canadian businesses in a given year. Additionally, technological advances in services, the total number of industry this industry have largely focused on operators is expected to expand at an the application of online ordering average annual rate of only 1.0% over the systems that typically include order 10 years to 2022. Mergers and tracking for clients. Nonetheless, this acquisitions have also been common over technology has not been significant enough to alter the industry’s life promotional products distributor K cycle stage. WWW.IBISWORLD.CA Promotional Products in Canada May 2017 12 P roducts & Markets Supply Chain | Products & Services | Demand Determinants Major Markets | International Trade | Business Locations

Supply Chain KEY BUYING INDUSTRIES Supermarkets & Grocery Stores in Canada Supermarkets and grocery stores use this industry’s services for window dressing and trimming. Advertising Agencies in Canada Advertising agencies and their clients use this industry’s services as part of advertising and promotional campaigns. Trade Show & Event Planning in Canada Trade shows and conferences are a large client group for this industry, using specialty branded promotional products. Colleges & Universities in Canada Universities and other educational institutions tend to be a large client group for this industry, using specialty branded promotional products. For-Profit Universities in Canada Universities and other educational institutions are a large client group for this industry, using specialty branded promotional products. Concert & Event Promotion in Canada Event promoters are typically a large client group for this industry, using specialty branded promotional products.

KEY SELLING INDUSTRIES Clothing & Clothing Accessories Wholesaling in Canada This industry supplies wearables such as caps and T-shirts. Sporting Goods Wholesaling in Canada This industry supplies some specialty items to distributors for embossing and engraving. Pharmaceuticals & Pharmacy Supplies Wholesaling in Canada This industry supplies cosmetics to be used as promotional products such as lipstick and mascara. Computer & Packaged Software Wholesaling in Canada This industry provides products such as USB flash drives to be used as promotional items. Office Stationery Wholesaling in Canada This industry provides distributors with pens and stationery which can be used as promotional items.

Products & Services Promotional Products include Wearables convenience products that are branded Wearables are the most common with the client’s logo and provided to promotional product sold by industry existing and potential clients for free. operators, accounting for an estimated These products are given away to 39.1% of total industry revenue. These develop goodwill and name products include anything a client could recognition. An example is the potentially wear as clothing (i.e. not provision of a pen or other office buttons, badges or bags) such as hats or stationery to customers of a bank or a t-shirts. Additionally, wearables include a toothbrush at a dentist’s office. These variety of bags such as tote bags, types of promotional products are shopping bags, satchels, cosmetic and attractive because they give businesses drawstring bags. In terms of quantity the ability to efficiently reach produced, wearables are not the target audiences. industry’s largest product; however, WWW.IBISWORLD.CA Promotional Products in Canada May 2017 13

Products & Markets

Products & Services Products and services segmentation (2017) continued 8.3% Writing instruments 13.3% Desk and office accessories 39.1% Wearables

14.3% Drinkware, housewares and other home products

25.0% Other items and services Total $1.8bn SOURCE: IBISWORLD

operators are able to sell wearable products including, calendars, folders, calculators, years, this segment’s share of industry scratchpads and adhesive notes. Combined, revenue has increased, as more businesses this segment is expected to account for are opting to print their brands, logos and 13.3% of industry revenue in 2017. corporate messages on caps, t-shirts, Promotional products designed for the sweatshirts and other apparel. business and professional service Drinkware, housewares and companies and intended for corporate other products for the home clientele. As a result, a rise in Canadian The drinkware and housewares product segment includes glass, ceramic, plastic advertising budgets and demand for this and stainless steel drinkware; towels, throws and blankets; and kitchen products, such as cutlery and measuring Writing instruments devices as well as general purpose Writing instruments are estimated to account for 8.3% of Promotional choose promotional products for the Products industry revenue. This segment home, because placing a client’s logo on has long been popular among advertisers; everyday items, such as a drinking glass, writing instruments are used multiple assures a prospective consumer will have times throughout a day, exposing a client steady access to an advertiser’s message or to a company’s name or logo each time. a company’s brand name. Combined, this In addition, the products are relatively segment is expected to account for an lower cost in comparison with other expected 14.3% of industry revenue in promotional products. This segment has 2017. Moreover, this portion has remained remained relatively steady over the past

Desk and office accessories This segment includes computer Other items and services peripherals and accessories, such as mouse The Promotional Products industry pads, software and USB adapters and provides an array of advertising WWW.IBISWORLD.CA Promotional Products in Canada May 2017 14

Products & Markets

Products & Services specialties. Other products not listed in higher level of value. Conversely, items continued such as buttons, badges and ribbons have bags, sporting goods, products, awards been declining. Moreover, industry and trophies, buttons, food gifts, clocks, operators commonly provide display and games, stickers and decals. Among these lettering services, which include the products, the use of certain items, such as design, lettering and creation of signs clocks and sporting goods, has been and banners for special promotions and events. Demand for these services have likely to hold on to products that have a

Demand Demand for the products and services of product or service, such as internet Determinants the Promotional Products industry relies advertising, daily-deals websites and email on the overall marketing budget of marketing. This external competition has businesses and public sector organizations. Marketing budgets revenue. Nevertheless, Promotional Products industry revenue has risen over conditions because businesses generally cut nonessential costs when their number of Canadian businesses expanded margins decline. As marketing budgets the potential clientele for industry shrink, demand for the products and services of this industry also decline. margins and total advertising expenditures Nevertheless, promotional products can helped boost industry sales. A variety of other factors can also advertisers in comparison to traditional media outlets. As a result, the decline of political parties and candidates use spending is often less than that across the promotional products during campaigns, wider advertising sector. causing demand to increase during Over the past decade, technological election periods. Increased demand may advancements have paved the way for also be driven by special events, such as the Olympics.

Major Markets Businesses and organizations across most use a wide variety of industry products sectors of the economy use promotional and services. For example, many products. Corporate clients are the businesses use window dressing and industry’s largest market, particularly for painting to advertise or promote a sale. advertising specialties. Conversely, local Other professional service providers, stores are most likely to use some of the such as real estate brokers, business and smaller service segments, such as display information technology consulting lettering and window painting. companies and operators in the leisure and hospitality sector, commonly use Retail and professional industry products to promote their services companies The retail and professional services segment’s share of industry revenue has market is expected to account for 24.4% marginally increased, as higher corporate of industry revenue in 2017. Retail stores margins have enabled retail and service WWW.IBISWORLD.CA Promotional Products in Canada May 2017 15

Products & Markets

Major Markets Major market segmentation (2017) continued 10.3% Healthcare services 24.4% 10.6% Retail and professional Finance, banking and services companies insurance companies

11.6% Other 18.5% Manufacturing 11.8% companies Not-for-profit organizations 12.8% Ad agencies Total $1.8bn SOURCE: IBISWORLD

companies to gradually increase their 2017. To reach a broad mix of consumers, spending on advertising. these agencies use a diverse range of mediums, including promotional Manufacturing companies products. This sector self-promotes so as The industry’s second-largest market is manufacturing companies. This segment products and services for all other sectors accounts for an estimated 18.5% of industry revenue and is largely composed of a marginal projected decline in consumer products companies and advertising expenditure lowered the automobile manufacturers. Consumer portion of revenue this segment products companies use this industry to contributes to the industry. However, create branded goods that are given away for promotional purposes. As the products increase in advertising budgets will spur are worn and used, consumers are growth in this segment. repeatedly exposed to the company’s brand. Similarly, automobile manufacturers use Not-for-profit organizations this industry for a variety of promotional purposes. At auto shows, for example, estimated 11.8% of industry revenue in plastic bags, key chains and other branded 2017. Included in this category are public novelties are handed out to attendees. Over universities and other education providers, which account for more than 6.0% of consumer spending has led to higher industry revenue. Other users in the advertising expenditures and industry demand from consumer products associations such as sporting clubs, manufacturers. Furthermore, a continuation community groups and charities. This of these trends is expected to slightly market is particularly hard during increase this segment’s share of industry organizations often rely on donations, which declined as discretionary income Ad agencies shrunk. However, as Canadian Advertising agencies account for an employment and per capita incomes estimated 12.8% of industry revenue in WWW.IBISWORLD.CA Promotional Products in Canada May 2017 16

Products & Markets

Major Markets improved. Additionally, educational continued institutions remain one of the Promotional or both. Early in the decade, there was Products industry’s largest buyers. result of rapid expansion and the creation Healthcare services The healthcare services segment is and investment models. However, expected to comprise 10.3% of industry revenue in 2017. This segment includes those in the health, medical and hospital regulations have led to a decline in this markets. Due to recent regulations, segment’s share of industry revenue over Health Canada must review and preclear all advertising material to ensure proper marketing. These regulations have Other slightly tempered demand from Given the industry’s large number of healthcare companies, and this market’s downstream markets, the other segment share of industry revenue has declined represents a relatively large 11.6% of industry activity. For example, promotional products companies work Finance, banking and with Canada’s federal, provincial and insurance companies municipal governments as well as various Financial institutions and insurance government agencies. This sub-segment companies advertise their products and is expected to account for less than 5.0% services using promotional products and of industry revenue. In addition, many in so doing generate an estimated 10.6% independent contractors, builders and of industry revenue. For instance, banks operators in the construction sector use often distribute pens, T-shirts and key promotional products to enhance their chains to promote their name, a name and build their own brand.

International Trade Industry operators do not manufacture products from low-cost overseas their own advertising specialties; rather, locations like China and Taiwan. These they source them from suppliers. products generally come in large, Therefore, there is very little uniform batches before undergoing international trade in the provision of printing or engraving in Canada or the promotional products and services to clients. However, there has been a trend the industry is expected to continue among the largest industry operators of sourcing more products from abroad to increasingly sourcing their manufactured further reduce costs. WWW.IBISWORLD.CA Promotional Products in Canada May 2017 17

P roducts & Markets

Business Locations 2017

Establishments (%) Less than 5% 5% to less than 20% 20% to less than 40% 40% or more

NT YT NU NORTHERN TERRITORIES 0.1

BC AB SK MB 16.5 10.7 1.7 2.3 QC NL ON 19.8 0.5 46.2

PE NB 0.2 0.8 NS 1.1

SOURCE: IBISWORLD WWW.IBISWORLD.CA Promotional Products in Canada May 2017 18

P roducts & Markets

Business Locations The distribution of promotional products Distribution of establishments vs. population providers is heavily concentrated in Ontario, Quebec and British Columbia, 50 together accounting for more than 80.0% of the industry’s operators. The 40 distribution of industry operators and their facilities is largely the result of the 30

geographic spread of the industry’s key % downstream clients, including retail 20 stores, which generally follow the 10 distribution of Canada’s population. Ontario accounts for the largest share 0 s c k a d o a n a a e t e a n b of the Canadian population. This factor, i r b o ot i w e c e u nt ar i ni t h coupled with its proximity to key S Al be r Q O c a a t v M Colu mb i o downstream markets, makes Ontario an Te rr it o sk a N W dw ar d Islan a ew foundl a ew Brunswi c E itis h S N

attractive province for companies in the N N r B

industry. Additionally, with nc e i

Establishments r P Population segments for industry revenue, Ontario SOURCE: IBISWORLD leads the nation in manufacturing and all of the country’s major banks are industry establishments in 2017. Quebec headquartered in the province. Ontario follows Ontario in product is estimated to account for 46.2% of manufacturing, capturing more than industry establishments in 2017. Toronto accounts for the most British Columbia generates the third- largest amount of industry revenue, due industry presence; the large city is a hub largely to the spread of the Canadian for consumer activity. population. British Columbia is estimated Quebec is the second-largest province to account for 16.5% of industry in terms of population and the number of establishments and represents roughly establishments for the Promotional 13.0% of Canada’s population. Products industry. Quebec represents Nevertheless, the province has grown as a nearly one-quarter of Canada’s total proportion of industry activity over the population, which is in line with its share of industry revenue. IBISWorld estimates that Quebec accounts for 19.8% of companies to the area. WWW.IBISWORLD.CA Promotional Products in Canada May 2017 19 Competitive Landscape Market Share Concentration | Key Success Factors | Cost Structure Benchmarks Basis of Competition | Barriers to Entry | Industry Globalization

Market Share IBISWorld estimates that no operator in operators that focus services on local and Concentration the Promotional Products industry holds regional markets. Although the number greater than a 5.0% market share and the industry operators is expected to increase Level top four operators represent just over at an annualized rate of 1.5% to 4,516 10.0% of industry revenue in 2017, enterprises, industry concentration has

Concentration in indicating this industry has a very low remained relatively stable over the past this industry is Low level of concentration. The industry consists of a large number of small have been acquired during this period.

Key Success Factors Proximity to key markets Supply contracts in place Being in close proximity to suppliers and for key inputs clients can improve customer service and Companies in this industry must have IBI SWorld identifies reduce costs associated with delivery. reliable supply contracts for required 250 Key Success specialties in place. Factors for a Prompt delivery of promotional business. The most items to clients Attractive product presentation important for this Companies must ensure that products Industry players should provide are delivered on time and in budget attractive product presentation and a industry are: because an order may be linked to a new variety of product styles for clients to or ongoing promotional campaign set to choose from. be launched or extended. Ensuring pricing policy is appropriate Ability to clearly specify requirements Clients have easy access to a large to suppliers/contractors number of companies providing promotional items; therefore, operators products that meet the requirements of their clients. rates to retain customers.

Cost Structure The cost structures of operators in this Benchmarks industry vary, largely depending on the size led to an expansion in business budgets. This, in turn, boosted industry revenue as many businesses turned to industry unit purchase costs through quantity operators to promote their brands. An expected increase in the total number of also gives these operators an advantage Canadian businesses nationwide over

the pool of potential promotional product purchasers. Profit industry will continue to face mounting before interest and taxes, has risen competition from alternative forms of slightly from 6.5% of revenue during advertising, such as e-mail, internet and 2012 to an expected 9.9% in 2017. mobile marketing. In addition, the industry will face mounting internal competition as increasing revenue and WWW.IBISWORLD.CA Promotional Products in Canada May 2017 20

Competitive Landscape

Cost Structure steady downstream demand entices new Wages Benchmarks entrants into the industry. This Wages and salaries are another major continued industry cost, representing 26.8% of total because industry operators will compete industry revenue in 2017. Maintaining head-on with low-priced digital advertising. long-term relationships with downstream clients are essential to success in this Purchases industry. As a result, the majority of wage The major cost in this industry is related costs are dedicated to sales and customer to the purchase of promotional product relations, which contributes to this “blanks” for engraving, printing and industry’s high wage costs. However, the customizing. Blanks are the generic increasing use of internet catalogues and product prior to any customization, such payment systems has increased as branding with a company name or logo. productivity and helped prevent more Distributors buy blanks from suppliers substantial increases in industry wages and then customize them in accordance with client orders and demand. Promotional products purchases include Other apparel (e.g. hats and T-shirts), writing Rent can vary widely depending on the instruments, bags, drinkware and stickers or decals. IBISWorld estimates that operations. Distributors of promotional purchases account for 39.6% of industry products often require large distribution revenue in 2017. centres, which are often strategically

Sector vs. Industry Costs

Average Costs of all Industries in Industry Costs sector (2017) (2017) 100 n Profi t 15.2 9.9 n Wages n Purchases 80 n Depreciation 26.8 n Marketing n Rent & Utilities n Other

enu e 46.3

v 60 e r f ge o a t

n 39.6

e 40 c r e P 13.7 1.5 1.6 0.5 3.3 20 4.3 4.2 17.4 15.7 0 SOURCE: IBISWORLD WWW.IBISWORLD.CA Promotional Products in Canada May 2017 21

Competitive Landscape

Cost Structure located to minimize transportation Depreciation, selling, general and Benchmarks costs, which can account for a fairly administrative expenses also account for a continued Conversely, providers of other industry Those costs include administrative expenses services do not require large amounts of space for inventory, so their rent supplies as well as fees for outsourced legal expenses comprise a smaller portion of and accounting services. The segment also revenue. Rent and utilities are estimated includes transportation costs associated account for 4.2% of industry revenue in with shipping promotional products from 2017. In addition, marketing and distribution centres to clients. These costs advertising costs comprise roughly 3.3% combine to account for just over 16.0% of of industry revenue. industry revenue in 2017.

Basis of Competition This industry distributes promotional themselves from competitors, industry products and provides a variety of other operators have adhered to eco-friendly, services. Many operators provide ethical and social standards, which are Level & Trend advertising specialty distribution held to higher scrutiny than Canadian or Competition in services; these companies distribute a other international laws. this industry is variety of consumer products that are Competition among industry operators High and the trend personalized with a client’s logo or brand. is Increasing The industry also includes companies promotional products largely relates to that provide window dressing and sign quality and price. With such a low market painting services. Although these services are related, they are not necessarily Often times, price-based competition can substitutes for one another. Consequently, not all companies within to win clients and maintain existing if the industry are in direct competition with one another. superior customer service.

Internal competition External competition In general, competition among industry This industry faces external competition operators that provide promotional products relates to product selection, forms of marketing and advertising. quality and price. Companies must Furthermore, the industry has recently provide clients with a wide assortment of experienced a rise in the number of promotional items. While some operators manufacturers that are directly contacting specialize in niche product lines, such as possible clients. Many end buyers are apparel, most of the largest operators use going directly to manufacturers (suppliers) rather than industry operators that have traditionally been intermediary car chargers and binoculars). To remain distributors. These suppliers often include

latest products to enable clients to catalogue operators. The continued development of industries. Furthermore, the products online business has aided the recent need to meet quality standards and trend, making it easier for clients to product safety laws. To distinguish directly access the manufacturers. WWW.IBISWORLD.CA Promotional Products in Canada May 2017 22

Competitive Landscape

Basis of Competition However, the emergence of online many companies will continue to rely continued marketing and advertising may also on other forms of marketing to build pose a threat to industry operators, as brand awareness.

Barriers to Entry This industry is predominantly composed of a large number of small operators. This Barriers to Entry checklist Level & Trend low concentration indicates that there are Competition High few barriers to entry based on industry Barriers to Entry Concentration Low domination by large operators. However, in this industry are Life Cycle Stage Mature building relationships with reliable Capital Intensity Low Low and Increasing suppliers can take time and established Technology Change Low operators may be able to obtain discounts Regulation & Policy Medium for bulk and frequent purchases. As a Industry Assistance Low

clients; this can act as a barrier to entry as SOURCE: IBISWORLD potential new operators will not be able to compete based on these prices.

Industry Although globalization in this industry is The development of online business Globalization relatively low, an increasingly global has helped industry operators to find marketplace has made it easier for manufacturers, many of which are distributors to reduce costs by abroad. The ability to buy industry Level & Trend purchasing products from overseas products at lower prices from overseas Globalization in suppliers. Unfortunately for the industry, suppliers has allowed distributors to this industry is globalization has also made it easier for cut costs. In turn, these cost savings Low and the trend clients to bypass distributors and are passed on to customers or is Increasing purchase directly from manufacturers. internalized to increase profit margins. Industry operators do not manufacture However, it is important that advertising specialties; they customize distributors know the products they products in accordance with clients’ receive are in compliance with needs and demands. consumer product safety codes. WWW.IBISWORLD.CA Promotional Products in Canada May 2017 23 O perating Conditions Capital Intensity | Technology & Systems | Revenue Volatility Regulation & Policy | Industry Assistance

Capital Intensity The Promotional Products industry has a low level of capital intensity. IBISWorld Capital intensity Capital units per labour unit Level estimates that for every dollar spent on wages, industry operators will spend $0.02 0.5 The level of capital in capital investment. Capital investment is intensity is Low mainly in equipment and machinery. Over 0.4 0.3 remained relatively constant. As a result, wages and depreciation are expected to 0.2 account for 26.8% and 0.5% of industry 0.1 revenue, respectively. 0.0 This industry is more dependent on Economy Professional, Promotional labour due to the necessary product sales Scientific & Products Technical Services and client servicing functions required by Dotted line shows a high level of capital intensity employees. The manufacturing of the SOURCE: IBISWORLD

by other industries, keeping capital may provide some of the customization requirements low. Industry operators services associated with the products.

Tools of the Trade: Growth Strategies for Success

New Age Economy Investment Economy Recreation, Personal Services, Information, Communications, Health and Education. Firms Mining, Finance and Real benefi t from personal wealth so Estate. To increase revenue stable macroeconomic conditions fi rms need superior debt are imperative. Brand awareness management, a stable and niche labour skills are key to macroeconomic environment product differentiation. and a sound investment plan. C e a v pi t i a l I nt en s nt en s I Promotional r Products i bo u v a Public Relations Firms e L Advertising Agencies Supermarkets & Grocery Stores Traditional Service Economy Trade Show & Event Planning Old Economy Wholesale and Retail. Reliant Agriculture and Manufacturing. on labour rather than capital Traded goods can be produced to sell goods. Functions cannot using cheap labour abroad. be outsourced therefore fi rms To expand fi rms must merge must use new technology or acquire others to exploit or improve staff training to economies of scale, or specialize increase revenue growth. in niche, high-value products.

Change in Share of the Economy SOURCE: IBISWORLD

Provided to: Gladys Kasp (2127657309) | 21 November 2017 WWW.IBISWORLD.CA Promotional Products in Canada May 2017 24

Operating Conditions

Technology & Systems This industry has experienced a low level of technological change in recent years. order processing. Level The major change has been a move Additionally, many companies have toward online ordering systems that changed the way in which they apply logos The level of include order tracking for clients. to branded merchandise. Companies have Technology However, this development is a broader moved from hot-stamping systems to Change is Low business trend and not a development of other forms of customization, such as technology within the industry. Similarly, laser etching, heat transfer and screen- operators that specialize in distribution printing. Some forms of customization, such as laser etching, are generally from improvements in computer provided at a greater cost to the client.

Revenue Volatility This Promotional Products industry improved as corporate marketing budgets exhibits a low level of revenue volatility. increased and new businesses turned to Level In periods of slow economic growth or industry operators to promote their recession, corporations allocate fewer brand, service or product. The industry is

The level of funds to advertising and marketing expected to demonstrate low volatility Volatility is Low industry revenue has marginally economy continues to gradually expand.

A higher level of revenue Volatility vs Growth volatility implies greater industry risk. Volatility can 1000 Hazardous Rollercoaster

negatively affect long-term ) % strategic decisions, such as ( 100 the time frame for capital

investment. tility* 10 ol a v

When a fi rm makes poor investment decisions it Promotional Products nu e

e 1 may face underutilized v e

capacity if demand R suddenly falls, or capacity 0.1 Stagnant Blue Chip constraints if it rises –30 –10 10 30 50 70 quickly. Five-year annualized revenue growth (%)

* Axis is in logarithmic scale SOURCE: IBISWORLD

Regulation & Policy CCPSA sets forth the standards that products must meet to ensure safety, providers of promotional products must and also restricts the use of some adhere to all consumer product laws. hazardous materials. CCPSA impacts For example, the Canadian Consumer companies that manufacture, sell or Product Safety Act (CCPSA), which is distribute consumer products in Canada. part of the Food and Consumer Safety Because companies in this industry sell and distribute consumer products WWW.IBISWORLD.CA Promotional Products in Canada May 2017 25

Operating Conditions

Regulation & Policy ranging from writing instruments to The industry must also abide by continued apparel, industry operators are occupational regulations. Canada’s responsible for ensuring that the Occupational Health and Safety (OHS) Regulations contain standards and Level & Trend Under the law, if an industry operator guidelines covering, but not limited to, The level of becomes aware of a potential safety structures, electricity, sanitation and Regulation is with a promotional product, the issue sound. The OHS also regulates wage Medium and the must be reported within two days of standards for retail employees. trend is Increasing learning of it. In such an event, all Additionally, industry operators must information on product-related abide by equal wage standards, minimum problems must be surrendered. wage laws and tax laws.

Industry Assistance This industry receives no direct ethical business practices of its more than government assistance in the form of 1,300 members. subsidies or otherwise. Although, certain Furthermore, the Promotional Level & Trend Products Association International The level of (PPAI) has more than 10,000 members Industry Assistance The industry, however, does receive located in the United States, Canada and is Low and the some indirect assistance from various internationally. The PPAI represents trend is Steady industry associations. The Promotional distributors of promotional products Product Professionals of Canada (PPPC) and services, including specialty provides education seminars and trade advertisers and suppliers of business shows, as well as publishing newsletters gifts. The organization provides and Marketing Edge magazine. PPPC networking events, research, also holds its members to a code of ethics publication, continuing education and to promote the industry’s image and other services for its members. WWW.IBISWORLD.CA Promotional Products in Canad a May 2017 26 K ey Statistics

Industry Data Industry Total advertising Revenue Value Added Establish- Wages Domestic expenditure ($m) ($m) ments Enterprises Employment Exports Imports ($m) Demand ($b) 2008 1,651.3 583.6 5,315 4,891 25,762 -- -- 436.7 N/A 14,556.6 2009 1,588.2 570.4 4,568 4,176 22,182 -- -- 450.4 N/A 13,250.4 2010 1,554.6 515.2 4,697 4,214 22,639 -- -- 432.8 N/A 14,211.3 2011 1,542.6 536.2 4,710 4,208 23,124 -- -- 426.7 N/A 14,653.1 2012 1,592.8 537.2 4,710 4,194 23,142 -- -- 426.5 N/A 15,121.9 2013 1,652.0 565.4 4,907 4,354 23,961 -- -- 439.8 N/A 14,479.0 2014 1,656.4 601.6 5,193 4,601 25,586 -- -- 441.8 N/A 14,034.0 2015 1,718.8 628.6 5,007 4,450 24,746 -- -- 459.8 N/A 14,384.9 2016 1,748.3 647.6 5,070 4,501 25,201 -- -- 469.0 N/A 14,816.4 2017 1,787.5 664.2 5,095 4,516 25,623 -- -- 478.4 N/A 15,260.9 2018 1,813.7 674.7 5,156 4,566 26,043 -- -- 486.8 N/A 15,529.1 2019 1,839.0 682.7 5,138 4,543 26,212 -- -- 491.4 N/A 15,784.1 2020 1,867.6 693.1 5,185 4,580 26,574 -- -- 499.1 N/A 16,039.2 2021 1,897.5 701.8 5,151 4,542 26,713 -- -- 503.6 N/A 16,332.3 2022 1,925.2 713.1 5,243 4,622 27,165 -- -- 512.6 N/A 16,623.6

Annual Change Industry Establish- Domestic Total advertising Revenue Value Added ments Enterprises Employment Exports Imports Wages Demand expenditure (%) (%) (%) (%) (%) (%) (%) (%) (%) (%) 2009 -3.8 -2.3 -14.1 -14.6 -13.9 N/A N/A 3.1 N/A -9.0 2010 -2.1 -9.7 2.8 0.9 2.1 N/A N/A -3.9 N/A 7.3 2011 -0.8 4.1 0.3 -0.1 2.1 N/A N/A -1.4 N/A 3.1 2012 3.3 0.2 0.0 -0.3 0.1 N/A N/A 0.0 N/A 3.2 2013 3.7 5.2 4.2 3.8 3.5 N/A N/A 3.1 N/A -4.3 2014 0.3 6.4 5.8 5.7 6.8 N/A N/A 0.5 N/A -3.1 2015 3.8 4.5 -3.6 -3.3 -3.3 N/A N/A 4.1 N/A 2.5 2016 1.7 3.0 1.3 1.1 1.8 N/A N/A 2.0 N/A 3.0 2017 2.2 2.6 0.5 0.3 1.7 N/A N/A 2.0 N/A 3.0 2018 1.5 1.6 1.2 1.1 1.6 N/A N/A 1.8 N/A 1.8 2019 1.4 1.2 -0.3 -0.5 0.6 N/A N/A 0.9 N/A 1.6 2020 1.6 1.5 0.9 0.8 1.4 N/A N/A 1.6 N/A 1.6 2021 1.6 1.3 -0.7 -0.8 0.5 N/A N/A 0.9 N/A 1.8 2022 1.5 1.6 1.8 1.8 1.7 N/A N/A 1.8 N/A 1.8

Key Ratios Imports/ Exports/ Revenue per Share of the IVA/Revenue Demand Revenue Employee Wages/Revenue Employees Average Wage Economy (%) (%) (%) ($’000) (%) per Est. ($) (%) 2008 35.34 N/A N/A 64.10 26.45 4.85 16,951.32 0.00 2009 35.91 N/A N/A 71.60 28.36 4.86 20,304.75 0.00 2010 33.14 N/A N/A 68.67 27.84 4.82 19,117.45 0.00 2011 34.76 N/A N/A 66.71 27.66 4.91 18,452.69 0.00 2012 33.73 N/A N/A 68.83 26.78 4.91 18,429.69 0.00 2013 34.23 N/A N/A 68.95 26.62 4.88 18,354.83 0.00 2014 36.32 N/A N/A 64.74 26.67 4.93 17,267.26 0.00 2015 36.57 N/A N/A 69.46 26.75 4.94 18,580.78 0.00 2016 37.04 N/A N/A 69.37 26.83 4.97 18,610.37 0.00 2017 37.16 N/A N/A 69.76 26.76 5.03 18,670.73 0.00 2018 37.20 N/A N/A 69.64 26.84 5.05 18,692.16 0.00 2019 37.12 N/A N/A 70.16 26.72 5.10 18,747.14 0.00 2020 37.11 N/A N/A 70.28 26.72 5.13 18,781.52 0.00 2021 36.99 N/A N/A 71.03 26.54 5.19 18,852.24 0.00 2022 37.04 N/A N/A 70.87 26.63 5.18 18,869.87 0.00

Figures are in inflation-adjusted 2017 dollars. Rank refers to 2017 data. SOURCE: IBISWORLD WWW.IBISWORLD.CA Promotional Products in Canada May 2017 27

Jargon & Glossary

Industry Jargon ADVERTISING SPECIALTY An item branded with an BLANK A generic product prior to any branding or organization’s logo. customization. BELOW-THE-LINE PROMOTION Nonmedia TRADITIONAL MEDIA Mass-distributed news and communication or advertising that is niche focused and entertainment across major media, such as television, highly measurable. newspapers, magazines, radio and the internet.

IBISWorld Glossary BARRIERS TO ENTRY High barriers to entry mean that INDUSTRY REVENUE The total sales of industry goods new companies struggle to enter an industry, while low and services (exclusive of excise and sales tax); subsidies barriers mean it is easy for new companies to enter an on production; all other operating income from outside industry. the firm (such as commission income, repair and service CAPITAL INTENSITY Compares the amount of money income, and rent, leasing and hiring income); and spent on capital (plant, machinery and equipment) with capital work done by rental or lease. Receipts from that spent on labour. IBISWorld uses the ratio of interest royalties, dividends and the sale of fixed depreciation to wages as a proxy for capital intensity. tangible assets are excluded. High capital intensity is more than $0.333 of capital to INDUSTRY VALUE ADDED The market value of goods $1 of labour; medium is $0.125 to $0.333 of capital to and services produced by the industry minus the cost of $1 of labour; low is less than $0.125 of capital for every goods and services used in production. IVA is also $1 of labour. described as the industry’s contribution to GDP, or profit CONSTANT PRICES The dollar figures in the Key plus wages and depreciation. Statistics table, including forecasts, are adjusted for INTERNATIONAL TRADE The level of international inflation using the current year (i.e. year published) as trade is determined by ratios of exports to revenue and the base year. This removes the impact of changes in imports to domestic demand. For exports/revenue: low is the purchasing power of the dollar, leaving only the less than 5%; medium is 5% to 20%; and high is more “real” growth or decline in industry metrics. The inflation than 20%. Imports/domestic demand: low is less than adjustments in IBISWorld’s reports are made using 5%; medium is 5% to 35%; and high is more than Statistics Canada’s implicit GDP price deflator. 35%. DOMESTIC DEMAND Spending on industry goods and LIFE CYCLE All industries go through periods of growth, services within Canada, regardless of their country of maturity and decline. IBISWorld determines an origin. It is derived by adding imports to industry industry’s life cycle by considering its growth rate revenue, and then subtracting exports. (measured by IVA) compared with GDP; the growth rate EMPLOYMENT The number of permanent, part-time, of the number of establishments; the amount of change temporary and casual employees, working proprietors, the industry’s products are undergoing; the rate of partners, managers and executives within the industry. technological change; and the level of customer acceptance of industry products and services. ENTERPRISE A division that is separately managed and keeps management accounts. Each enterprise consists NONEMPLOYING ESTABLISHMENT Businesses with of one or more establishments that are under common no paid employment or payroll, also known as ownership or control. nonemployers. These are mostly set up by self-employed individuals. ESTABLISHMENT The smallest type of accounting unit within an enterprise, an establishment is a single PROFIT IBISWorld uses earnings before interest and tax physical location where business is conducted or where (EBIT) as an indicator of a company’s profitability. It is services or industrial operations are performed. Multiple calculated as revenue minus expenses, excluding establishments under common control make up an interest and tax. enterprise. VOLATILITY The level of volatility is determined by EXPORTS Total value of industry goods and services sold averaging the absolute change in revenue in each of the by Canadian companies to customers abroad. past five years. Volatility levels: very high is more than ±20%; high volatility is ±10% to ±20%; moderate IMPORTS Total value of industry goods and services volatility is ±3% to ±10%; and low volatility is less than brought in from foreign countries to be sold in Canada. ±3%. INDUSTRY CONCENTRATION An indicator of the WAGES The gross total wages and salaries of all dominance of the top four players in an industry. employees in the industry. Benefits and on-costs are Concentration is considered high if the top players included in this figure. account for more than 70% of industry revenue. Medium is 40% to 70% of industry revenue. Low is less than 40%. www.ibisworld.ca | 1-800-330-3772 | [email protected]

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IBISWorld Industry Report : Promotional Products in Canada Stephen Morea

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