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An Eco-friendly Economy?

Suppliers weigh in on the current state of eco promos

04/17/2009

When did being a tree hugger become so cool? When did reusable totes, organic cotton and hybrid cars become status symbols?

It seemed as though overnight the terms “eco-friendly” and “green” began popping up as buzz words. Within months they were making appearances in marketing messages and corporate plans. And sometime along the way, they took root in the promotional products industry.

Today, suppliers are touting their new green catalogs and their latest environmentally friendly product lines. And then — bam! The recession hit like a ton of bricks, and everything changed ... or did it? We asked suppliers to fill us in on the latest happenings in the world of eco-friendly promotions. Here’s what they had to say ...

CL: How have sales of eco-friendly products been affected by the economy?

Customers now more than ever want to get the most out of their marketing budget. For some, their promotional spend has been reduced and their buying cycles have shifted or been pushed back. While price point is important, I am seeing clients use the budgets they have to secure product that will convey quality and relevance to their marketing message. For example, instead of buying 2,000 pieces of a $1 item to hand out to the masses at a trade show, they are shifting to buying fewer units of higher-quality, eco-friendly items, such as pens, totes and jotters, to hand out to qualified leads at the trade show. Sales within our eco-friendly collection continue to thrive. Anne Dapremont, vice president of sales, Logomark, Tustin, Calif.

The economy has presented a challenge for many businesses; however, our Post-it Recycled Notes has proven to be a practical, cost-effective option in the eco-friendly category for our customer. Debbie Leptien, marketing operations manager and business unit manager, 3M, Post-it Custom Products, St. Paul, Minn.

There’s no question eco-friendly sales in general have been affected. But we’ve also seen strong growth over the last six months — especially in the recycled and alternative-power categories. Our customers and their clients know going green is here to stay, and deep down, I think they want to embrace it. But in the reality of these times, doing so has to make sense economically. As a supplier, we have to be strategic about how to grow each category of eco-friendly products and the types of products to bring on. Scott Pearson, vice president of merchandising, Sweda Co. LLC, City of Industry, Calif.

Eco products are still strong sellers, even in this environment. Items at competitive, entry price points are doing particularly well, given the market. Environmentally friendly products are still hot — they are more than a trend now; they are a way of life. Leed's now has more than 100 EcoSmart skus and over 50 percent of them sell for under $10. Our bag and stationery categories contain the most eco items, but we also have EcoSmart items across most of our categories. Michele Petruccelli, director of product development, Leeds, New Kensington, Pa.

I’m finding that things have slowed only slightly, as we offer low cost, environmental products; it seems as if there is still great interest and orders coming our way. Lauri Sjoblom, president, Symphony Handmade Papers, Santa Fe, N.M.

Eco friendly products are definitely on everyone's radar. Our experience with eco-friendly products in this economy is that if the cost is higher (in a measurable way) than the regular price, the regular product wins. If the price is the same, the eco-friendly product sells just as well. Paul Sorota, president and founder, PromoCard Services, Miami

CL: How does eco-friendliness rank among other factors end users consider when selecting promotional items?

We have found that customers will opt for the eco-friendly option as long as product performance remains high. Debbie Leptien, marketing operations manager and business unit manager, 3M, Post-it Custom Products, St. Paul, Minn.

We’re hearing more and more that end-users are giving it careful consideration — but that many feel going green is too pricey or even too risky. I think people see through fads, and green is certainly not one of them. With tightening budgets, it comes down to getting people’s attention in a unique and cost-effective way without trivializing this core green imperative. We’re still seeing the promotional products industry becoming more saturated with green items. Our challenge as a supplier is to offer products that are priced to blend the right mix of style and functionality — all to serve this greater mandate of environmental responsibility. Scott Pearson, vice president of merchandising, Sweda Co. LLC, City of Industry, Calif.

Eco-friendliness is a strong consideration to end users. It has top-of-mind awareness and is a key element of our development strategy going forward, as it is a strong consumer need. Michele Petruccelli, director of product development, Leeds, New Kensington, Pa.

It seems that with us, the eco issue is not as prevalent as it is with other products. I think that since folks are used to having lots of plastic gift, credit and loyalty cards, the push back in this area is not as strong as it is with other products. Paul Sorota, president and founder, PromoCard Services, Miami

CL: What is the relationship between the eco-friendliness of a product and price?

Many times you will see premiums attached to an eco-friendly product. The suggested list price of Post-it Recycled Notes is 10 percent higher than standard Post-it Notes. Debbie Leptien, marketing operations manager and business unit manager, 3M, Post-it Custom Products, St. Paul, Minn.

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