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N OV E M B E R 2 0 1 3
P R O M O T I O N A L P R O D U C T P R O F E S S I O N A L S O F C A N A DA
Sales Volume Update 2013
Table of Contents 2
Sales Volume Update - 2013
Page
Study Overview 3
Number of Businesses 4
Weighting the Data 5
Definitions 6
Study Limitations 7
Overview of the Results – Distributors 8
Overview of the Results – Suppliers 12
Detailed Results – Distributors 15
Detailed Results – Suppliers 30
Appendix A – All Distributor Results by Key Groups 43
Appendix B – All Supplier Results by Key Groups 62
Study Overview
Methodology and response rates:
Each of the two segments – distributors and suppliers – were contacted via e-mail and each segment followed a link to an online survey.
The distributor survey invitation was emailed to 4,292 members and prospects. 874 e-mails were undeliverable and 47 potential respondents chose to unsubscribe. Of the remaining 3,371 a total of 96 distributor surveys were completed for a response rate of 2.9% (1.4% among non-members and 7.0% among PPPC members).
Supplier survey invitations were emailed to the 415 PPPC members. There were 6 bounce backs and two unsubscribe requests. 47 suppliers responded for a response rate of 11.5%.
3
The main purpose of the 2013 Promotional Products Industry Sales Volume Study is to provide current estimates of the size of the promotional products industry in Canada. Specific study objectives of the research are to:
Estimate the total gross revenues for industry suppliers and distributors;
Estimate the number of employees in the industry;
Determine the level of growth since the last study in 2010; and
Measure profitability among distributors.
Number of Businesses 4
There is no formal registration of businesses that participate in the promotional products industry. Accordingly, there is no “official” number of distributors or suppliers that is known. For the purpose of this study, estimates of total industry revenues and employees are based on the number of distributors and suppliers in PPPC’s member and prospect database. As of August 2013, PPPC’s databases contained records for:
5,224 promotional product distributors
925 promotional product suppliers
Weighting the Data 5
“Weights” are data corrections that make the results representative of the industry at large
Distributor data was weighted by region (East/ Ontario/ West) within PPPC member status
There were 6 target “cells” for weighting: 3 regions x 2 possible PPPC member statuses (member vs. non-member).
Example weighing calculation: At the time of this study, according to PPPC databases, 18.1% of distributors were non-PPPC members in Western Canada. Since only 9.4% of survey respondents were from this “cell,” then those respondents were assigned a weight of 18.1%/9.4%, or 1.926.
Supplier data was weighted only by region (East/ Ontario/ West)
There were 3 target “cells:” East, Ontario, and West.
Example weighing calculation: At the time of this study, according to PPPC databases, 53.1% of suppliers were in Ontario. Since 57.4% of survey respondents were from this “cell,” then those respondents were assigned a weight of 53.1%/57.4%, or 0.925.
Definitions 6
Definitions: Mean, Median and Confidence Interval
Throughout the report, we use the terms “mean” and “median”. The mean is simply the arithmetic
average of a set of numbers. It is the sum of all values divided by the number of items in the list.
While it is an extremely useful statistic, the mean can be dramatically affected by extreme values in
the dataset.
For this reason, the median, is often used. The median is the “middle” value and is unaffected by
extreme values. When the data are arranged in order of magnitude, half of the data will be smaller
than the median and half will be larger.
In a number of tables we use the term confidence interval. This term refers to an estimate of the
reliability of the mean. Based on a given sample size we estimate the actual mean will be within +/-
percentage points of the stated mean. Therefore, specific tables will show a mean followed by Lower
and Upper limits or boundaries. We can say with 95% certainty that the actual mean will fall within
these limits.
Study Limitations 7
When interpreting the results of this study, it is important to keep in mind that there are the
following limitations to consider:
Industry revenue and employment estimates are as of August 2013 and are based on the
number of suppliers and distributors in PPPC’s member and prospect databases. These
databases are estimated to represent 90% or more of the industry. As such, estimates in this
report should be viewed as conservative.
Industry averages and estimates (revenue, employment, profitability, sales breakdowns, etc.)
as well as other data are based on survey responses and are only as accurate as the data
provided by survey participants.
Results for sub-groups (e.g., organization size, region, etc.) should be interpreted with
caution due to small sample sizes as they carry high margins of error.
Overview of Results – Distributors 8
Reported sales volume in 2011 and 2012 (See pages – 16 and 17)
We calculate total distributor sales in 2011 to be $1.91 billion and $1.93 billion in 2012. This
represents a decline from the previous three studies and represents a return to levels last
seen in 2002. Two factors appear to be at play. First, we have a decreased number of
distributors and a decreased average revenue reported by individual distributors – from
$480,000 reported in 2009 to $370,000 as reported for 2012. The second page in this section
provides a provincial breakdown of sales within the largest provinces. We note that Ontario
and Quebec make up over 60% of the total national sales volume.
Reported Employment (See pages 17 and 18)
Reported employment by distributors has also fallen. In 2008, we saw the largest number of
employees at 23,842 FTEs. This fell in 2009 to 20,424 and again in 2012 to 18,650.
Overview of Results – Distributors 9
Product Category Breakdown (See page – 19)
• Based on gross sales revenues, wearables/apparel (other than golf) make up 23% of gross
sales revenues. Golf garments account for an additional 9%, bringing total
wearables/apparel up to 32%. Writing instruments (9%), Calendars (7%), Buttons/badges,
ribbons, stickers magnets make up an additional 6%.
Distributor Programme Type (See page – 20)
• Distributors were asked to identify their most common programme types. Brand awareness
(18%), business gifts (17%) and employee relations and events (12%) are the three most
frequent mentions.
Overview of Results – Distributors 10
Distributor Expenses and Profit (See page – 21)
Distributors were asked to indicate the portion of their gross revenue allocated to cost of
goods (COGS), selling costs, other expenses and profit. Just under half (47%) goes towards
COGS. Selling costs account of 16% and all other expenses amount to 22%. This leaves an
average net profit of 15%. These elements are relatively consistent with previous years of the
study.
Determining Selling Price and Margins (See page – 22)
• Applying a mark-up remains the most frequently-mentioned approach of determining the
selling price of a product (mentioned by 55% of distributors).
• Based on 2012 numbers, the average mark-up is 113.2%. This represents a rise from 95.3%
recorded in 2009. The average gross profit margin stands at 53.1%. This number has been
steadily rising since 2002 when it stood at 42.9%
Overview of Results – Distributors 11
Distributor Type (See pages 23 and 24)
Slightly over half of our sample (54%) consisted of owner/operators who describe
themselves as strictly promotional product distributors. An additional 26% place themselves
into the category of agency style, i.e. full service.
Twenty-eight percent of our distributor sample were PPPC members. Sixty-one percent
import products from outside of Canada. This number is down slightly from the 68%
reported in 2009.
Common Job Functions Dealt With and Top Sectors (See pages – 25 and 26)
• In the majority of cases, distributors are dealing with the owner of the client organization.
Alternatively it tends to be marketing/advertising or purchasing. There are four key sectors
that are the most-frequently mentioned elements within the client base of distributors. In
descending order, these are: the not-for-profit sector (36%), construction (35%),
government (32%) and manufacturing (32% - exc. automobiles).
Overview of Results – Suppliers 12
Reported sales volume in 2011 and 2012. (See slides – 31 and 33)
• Amongst suppliers, we calculate total sales volume in 2011 to be $2.33 billion and $2.08
billion in 2012. This represents a decline from the highpoint of $2.5 billion recorded in 2008.
Reported employment 2012. (See slides – 32)
• Despite a reported decline in sales volume, we do see an increase in full-time equivalent
positions on the supplier side. Suppliers report 15,919 FTEs in 2012. This is an increase from
the 13,566 reported in 2009.
Overview of Results – Suppliers 13
Supplier Profile (See pages 34 to 36)
• The sample of suppliers was comprised of four key classifications: manufacturers, importers,
printers and other. Manufacturers make up almost half of the sample (47%).
• Ninety percent of the sample are members of the PPPC. The majority of all suppliers (72%)
say that they import products from outside of Canada. This percentage is consistent with
68% of suppliers who said they imported from outside of Canada in 2009.
• Suppliers were asked about instances in which they sell direct to corporate buyers. 57%
claim that they never sell direct. Amongst those that do, 20% admit that there are special
circumstances when they will do so. These circumstances are “very large orders [but] with a
commission to the distributor”, “very large orders” (with no mention of a commission) and
“to long-time corporate customers”.
Overview of Results – Suppliers 14
Supplier Profile (See pages – 37 to 39)
• Suppliers indicate that in 2012, 61% of their revenue was derived from the sale of products to
members of the PPPC. This is a slight increase from the 59% mentioned in 2011.
• Approximately one-half (49%) of suppliers derive their revenue from products supplied by
Canadian sources. The remainder is made up of 22% U.S. suppliers and 28% sources outside
the U.S. and Canada.
• On average, suppliers are spending a little over $35,000 on printed material. This average has
not changed a great deal since 2009.
S A L E S VO L U M E U P DAT E 2 0 1 3
Distributor Results
Distributor Sales Volume by Year 16
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
1993 1994 1998 2002 2006 2008 2009 2011 2012
$806 $808
$1,157
$2,088
$3,470
$3,974
$3,143
$1,911 $1,935
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The large decrease in
total Sales Volume
reflects:
A decreased number
of distributors in the
PPPC databases,
down from 6,554 in
2010 to 5,224 in 2013
A decrease in the
average revenue
reported from survey
respondents, down
from 20o9’s $480,000
to $370,000 as
reported for 2012
Sales Volumes shown are in millions of dollars, so 2012’s $1,935 represents $1,935,000,000
Distributor Sales Volume Confidence Intervals and Employment by Region and Member Status
17
Estimated Sales Volume (millions)
Sales Volume Confidence Interval (millions) Employees
Lower Upper
TOTAL
Total $ 1,935.28 $ 1,033.62 $ 2,836.95 18,650
Region
British Columbia $ 369.10 unavailable unavailable 1,671
Alberta $ 321.11 unavailable unavailable 2,820
Prairies/ Territories unavailable unavailable unavailable unavailable
Ontario $ 632.67 $ 354.69 $ 910.65 7,264
Quebec $ 533.18 $ 210.61 $ 855.75 6,584
Atlantic unavailable unavailable unavailable unavailable
Member Status
PPPC Member $ 1,195.41 $ 385.86 $ 2,004.95 7,814
Non-member $ 741.04 $ 406.72 $ 1,075.35 10,802
A Confidence Interval is an estimate of the reliability of the estimated mean. In this case a 95% Confidence Interval was used, so we are 95% sure that the mean is between the Lower and Upper bounds.
Distributor Employment by Year 18
-
5,000
10,000
15,000
20,000
25,000
1994 1998 2002 2006 2008 2009 2012
6,689
8,294
14,250
22,874 23,842
20,424
18,650
Nu
mb
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yees
The general reduction
in business reflected
for 2012’s Revenue is
also shown in this
year’s Employment
numbers.
According to this
year’s respondents,
there are fewer
workers making less
money for fewer
businesses in the
promotional product
distribution industry.
Distributor Product Category Breakdown
Automotive Accessories 4%
Buttons/ Badges/ Ribbons/ Stickers/ Magnets
6%
Calendars 7%
Computer Products 1% Desk/ office/
business accessories
5%
Drinkware (coffee mugs)
4%
Drinkware (Other drink ware)
3%
Electronic products,
devices, and accessories
1%
Food Products 1%
Games/ Toys/ Playing Cards / Inflatables
1% Housewares 1%
Jewellery/ Watches/ Clocks
2%
Leisure products 4%
Personal/ Pocket-Purse Products
1% Plaques/ Trophies
2% Sporting Goods (specifically golf
accessories) 4%
Sporting Goods (other than golf)
2%
Textiles 5%
Tools 1%
Travel Products and Accessories
2%
Wearables/ Apparel (golf
garments) 9%
Wearables/ Apparel (other than golf)
23%
Writing Instruments 9%
Other 2%
19
Distributor Programme Type Breakdown
Brand Awareness 18%
Business Gifts 17%
Customer Referral 4%
Dealer/Distributor Programmes
2% Employee Incentive Programmes
6%
Employee Relations and Events
12%
Employee Safety and Education
4%
Employee Service Awards 4%
Marketing Research 1%
New Customer/Account Generation
8%
New Product/Service Introduction
5%
Not-for-Profit Programmes 3%
Public Relations 6%
Trade Shows 7%
All Other 3%
20
Distributor Expenses and Profit
Cost of Goods Sold 47%
Selling Cost 16%
All Other Expenses *
22%
Net Profit 15%
21
* All Other Expenses includes fixed overhead – 9%, IT costs – 4% and all other expenses - 9%.
Distributor – Determining Selling Price and Margins 22
TOTAL PPPC Member 2012 2009 2008 2006 2002 Yes No
Distributor Margins Average Mark-up 113.2% 95.3% 84.2% 86.6% 75.3% 91.3% 122.8% Average Gross Profit Margin 53.1% 48.8% 45.7% 46.4% 42.9% 47.7% 55.1%
Mark-up applied -
55%
Based on gross profit
margin target - 35%
Other/Not Stated - 10%
Method of Determining Selling Price
Distributor Type 23
26%
16% 54%
4%
Type of Distributor
Agency style, full service includinggraphics, premiums, catalogue programs,consultancy
Promotional products some premiums,possibly small branding catalogues
Owner/Operator, strictly promotionalproduct distributors
Other
Distributors – PPPC Members and Incidence of Importing
24
Distributor Profile
Yes - 28%
No - 72%
Company is a Member of the PPPC?
Yes - 61%
No - 39%
Company Imports Products From Outside of Canada?
Distributors – Three Most Common Job Functions
13%
17%
19%
21%
38%
48%
60%
83%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Finance/Accounting
Human Resources
Sales
Communications/PR
Administrative /Clerical
Purchasing
Marketing /Advertising
Owner
Three Most Common Job Functions Typically Dealt with in Client’s Organization
25
Distributors – Top Three Sectors in Client Base 26
7%
7%
9%
11%
12%
13%
15%
15%
15%
18%
24%
28%
32%
32%
35%
36%
0% 5% 10% 15% 20% 25% 30% 35% 40%
Finance (banking investment)
Entertainment/Publishing
Advertising/Marketing Agencies
Insurance
Tourism and Hospitality
Pharmaceutical/Healthcare
Retail
High Technology
Automotive
Real Estate
Restaurant
Professional Services
Manufacturing (exc. automotive)
Government
Construction
Not-for-profit sector (assoc./charity)
Top Three Sectors Represented By Client Base
Distributor Profile 27
TOTAL Revenue Employees PPPC Member
<=$300k >$300k 1 or 2 3+ Yes No
Type of Distributor TOTAL (unweighted) 96 43 45 50 45 65 31 TOTAL (weighted) 96 67 23 66 28 27 69 Agency style, full service including graphics, premiums, catalogue programmes, consultancy
26% 21% 36% 15% 47% 26% 26%
Promotional products some premiums, possibly small branding catalogues
16% 11% 23% 13% 24% 32% 10%
Owner/Operator, strictly promotional product distributors 54% 64% 38% 68% 23% 36% 60% Other 4% 5% 3% 4% 6% 6% 4%
Head Office Province TOTAL (unweighted) 96 43 45 50 45 65 31 TOTAL (weighted) 96 67 23 66 28 27 69 British Columbia 7% 6% 9% 4% 13% 16% 3% Alberta 18% 21% 15% 22% 11% 15% 20% Prairies/ Territories 1% 0% 3% 0% 2% 2% 0% Saskatchewan 1% 0% 3% 0% 2% 2% 0% Ontario 50% 48% 46% 54% 46% 41% 54% Quebec 24% 25% 28% 20% 29% 25% 24% Atlantic 0% 1% 0% 1% 0% 1% 0% New Brunswick 0% 1% 0% 1% 0% 1% 0%
Distributor Profile 28
TOTAL Revenue Employees PPPC Member
<=$300k >$300k 1 or 2 3+ Yes No
Number of Full Time Equivalent Staff Involved in Promotional Products TOTAL (unweighted) 96 43 45 50 45 65 31
TOTAL (weighted) 96 67 23 66 28 27 69
One 34% 46% 7% 50% 0% 14% 42%
Two 36% 42% 18% 50% 0% 28% 39%
Three 8% 8% 7% 1% 26% 21% 3%
4 to 5 8% 3% 12% 0% 26% 11% 6%
6 to 10 10% 0% 41% 0% 34% 18% 7%
More than 10 4% 0% 15% 0% 14% 7% 3%
Mean 3.6 1.7 8.4 1.5 8.6 5.4 2.9
Median 2 2 6 2 5 3 2
Gross Revenue from Promotional Products in 2012 TOTAL (unweighted) 96 43 45 50 45 65 31 TOTAL (weighted) 96 67 23 66 28 27 69 $125,000 or less 46% 67% 0% 61% 14% 17% 57% $125,001 to $300,000 23% 34% 0% 25% 12% 26% 22% $300,001 to $500,000 6% 0% 24% 6% 5% 11% 4% $500,001 to $1,000,000 9% 0% 38% 2% 25% 15% 7% $1,000,001 to $2,000,000 7% 0% 29% 1% 21% 17% 3% More than $2,000,000 2% 0% 9% 0% 7% 7% 0% Not stated 7% 0% 0% 4% 15% 7% 7% Mean $ (000's) $370 $96 $1183 $128 $1029 $826 $196 Median $ (000's) $126 $70 $810 $70 $670 $355 $72
Distributor Profile 29
TOTAL Revenue Employees PPPC Member
<=$300k >$300k 1 or 2 3+ Yes No
Financial Ratios in 2012 TOTAL (unweighted) 96 43 45 50 45 65 31
TOTAL (weighted) 96 67 23 66 28 27 69
Cost of Goods Sold 46.9% 46.7% 52.6% 46.9% 47.1% 52.3% 44.9%
Selling Cost 15.7% 14.2% 19.0% 14.2% 19.1% 15.5% 15.8%
All Other Expenses* 22.2% 21.5% 19.7% 23.9% 18.5% 19.4% 23.2%
Net Profit 15.3% 17.6% 8.7% 15.0% 15.3% 12.9% 16.1%
Gross Profit Margin 53.1% 53.3% 47.4% 53.1% 52.9% 47.7% 55.1%
* All Other Expenses includes fixed overhead, IT costs and all other expenses. See slide 36 & 37 in the appendix for additional detail.
S A L E S VO L U M E U P DAT E 2 0 1 3
Supplier Results
Supplier Sales Volume by Year 31
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
1993 1994 1998 2002 2006 2008 2009 2011 2012
$418 $451
$660
$1,139
$2,191
$2,505 $2,400 $2,338
$2,085
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According to suppliers
reporting on their 2012
results, the total size
of the promotional
products industry
continued a slow
decline since its high
mark in 2008.
Sales Volumes shown are in millions of dollars, so 2012’s $2,086 represents $2,086,000,000
Supplier Employment by Year 32
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
1994 1998 2002 2006 2008 2009 2012
3,652 4,347
6,372
10,705
13,050 13,556
15,919
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Based on responses
from this year, the
number of full time
equivalent positions
on the supplier side of
the promotional
product industry
continues to increase.
Caution should be
observed, however,
because of the low
sample size in this
year’s study.
Supplier Sales Volume Confidence Intervals and Employment 33
Estimated Sales
Volume (millions) Sales Volume Confidence Interval (millions)
Employees Lower Upper
TOTAL Total $ 2,085.41 $ 937.26 $ 3,233.57 15,919
A Confidence Interval is an estimate of the reliability of the estimated mean. In this case a 95% Confidence Interval was used, so we are 95% sure that the mean is between the Lower and Upper bounds.
Supplier Type 34
Other - 18%
Printer - 14%
Importer - 21%
Manufacturer 47%
Type of Supplier
Supplier Profile – PPPC Membership and Importing Practices
35
Yes - 90%
No - 10%
Company is a Member of the PPPC?
Yes - 72%
No - 28%
Company Imports Products From Outside of Canada?
Supplier Profile – Selling Direct 36
15%
57%
9%
14%
16%
20%
0% 10% 20% 30% 40% 50% 60%
Other
Never sell direct
For very large orders
To long-time corporate customers
Very large orders with commission to distributor
In special circumstances
Instances of Selling Direct to Corporate Buyers
Supplier Profile – Revenue Derived From Sales to PPPC Members
37
61%
59%
58% 59% 59% 60% 60% 61% 61% 62%
2012
2011
Percent of Revenue Derived From The Sale of
Products To Members of the PPPC
Supplier Profile – Revenue From Various Sources 38
28% - Outside Canada/U.S.
U.S. Suppliers - 22%
Canadian Suppliers - 49%
Percent of 2012 Revenue Derived From Sources Shown
Supplier Profile – Amount Spent on Printed Materials 39
$35,235
$35,904
$32,281
$35,736
$30,000 $31,000 $32,000 $33,000 $34,000 $35,000 $36,000 $37,000
2012
2011
2010
2009
Average Amount Spent on Printed Materials
Supplier Profile – Head Office 40
Type of Supplier
TOTAL (unweighted) 47 TOTAL (weighted) 47 Manufacturer 47%
Importer 21% Printer 14%
Other 18%
Province of Head Office TOTAL (unweighted) 47
TOTAL (weighted) 47
British Columbia 13% Alberta 4% Prairies/ Territories 2% Manitoba 2% Ontario 51% Quebec 25% Atlantic 5%
New Brunswick 3% Nova Scotia 3%
Supplier Profile - Staffing 41
Number of FTE Staff Involved in Promotional Products
TOTAL (unweighted) 47
TOTAL (weighted) 47
One 10%
Two 4%
Three 9%
4 to 5 13%
6 to 10 12%
11 to 50 42%
More than 50 11%
Mean 17.2
Median 10
Maximum Value 70
Standard Deviation is a measure of how much variance there is between all of a question’s responses. The more consistent the responses are, the lower the Standard Deviation. Standard Error measures the accuracy with which the respondents represent the actual industry. The lower the Standard Error, the closer the estimated mean will be to the actual mean of the entire industry.
Supplier Profile – Revenue Breakdown 42
Gross Revenue from Promotional Products for 2012
TOTAL (unweighted) 47
TOTAL (weighted) 47
$125,000 or less 6%
$125,001 to $300,000 5%
$300,001 to $500,000 4%
$500,001 to $1,000,000 15%
$1,000,001 to $2,000,000 12%
$2,000,001 to $5,000,000 24%
More than $10,000,000 2%
Not stated 33%
Mean (000's) 2255
Median (000's) 1770
Maximum Value (000's) 20000
S A L E S VO L U M E U P DAT E 2 0 1 3
Appendices
Appendix A – All Distributor Results by Key Groups 44
TOTAL Revenue Employees PPPC Member
<=$300k >$300k 1 or 2 3+ Yes No D3. Company is a member of the Promotional Product Professionals of Canada TOTAL (unweighted) 96 43 45 50 45 65 31 TOTAL (weighted) 96 67 23 66 28 27 69 Yes 28% 17% 60% 15% 53% 100% 0% No 72% 83% 41% 85% 47% 0% 100% D4. Company imports products from outside Canada TOTAL (unweighted) 96 43 45 50 45 65 31 TOTAL (weighted) 96 67 23 66 28 27 69 Yes 61% 49% 85% 52% 78% 82% 52% No 39% 51% 15% 48% 22% 18% 48% D5. Sources used to procure products (Base: Company imports products from outside Canada in D4) TOTAL (unweighted) 66 19 40 28 37 50 16 TOTAL (weighted) 58 32 19 34 22 22 36 Directly from original product manufacturer located in Asia 43% 46% 53% 37% 49% 38% 47% Directly from original product manufacturer located in a country other than in Asia
65% 72% 61% 67% 67% 48% 75%
From Asia using a trading agent, sales agent, or vendors located in Asia 37% 22% 71% 21% 55% 45% 32% From Asia through own organization, acting as trading or sales agent 23% 32% 12% 20% 20% 22% 23% From other countries other than in Asia, using either of the two previous methods
27% 27% 34% 17% 35% 30% 25%
None of the above 10% 7% 4% 14% 5% 15% 7%
Appendix A – All Distributor Results by Key Groups 45
TOTAL Revenue Employees PPPC Member
<=$300k >$300k 1 or 2 3+ Yes No D6. Import from... (Base: Company imports products from outside Canada in D4) TOTAL (unweighted) 66 19 40 28 37 50 16 TOTAL (weighted) 58 32 19 34 22 22 36 Mexico 4% 0% 12% 1% 9% 11% 0% United States 87% 88% 98% 81% 96% 96% 82% Europe 12% 6% 25% 3% 26% 11% 12% India, Pakistan, Sri Lanka 8% 6% 14% 9% 8% 12% 5% Mainland China 57% 56% 78% 56% 53% 48% 62% Korea 9% 8% 0% 7% 11% 0% 14% Taiwan 13% 20% 4% 19% 4% 4% 18% Japan 6% 6% 5% 9% 2% 6% 6% Hong Kong 23% 26% 24% 19% 31% 23% 22% Other Pacific Rim countries 4% 6% 2% 6% 1% 1% 5% Other 9% 0% 2% 7% 13% 2% 14% None of the above 1% 0% 0% 0% 2% 2% 0% D7. Company intends to import direct in near future (Base: Company does not import products from outside Canada in D4) TOTAL (unweighted) 30 24 5 22 8 15 15 TOTAL (weighted) 38 34 3 32 6 5 33 Yes 2% 2% 0% 2% 0% 13% 0% No 98% 98% 100% 98% 100% 87% 100%
Appendix A – All Distributor Results by Key Groups 46
TOTAL Revenue Employees PPPC Member
<=$300k >$300k 1 or 2 3+ Yes No D8. Best description of business TOTAL (unweighted) 96 43 45 50 45 65 31 TOTAL (weighted) 96 67 23 66 28 27 69 Agency style, full service including graphics, premiums, catalogue programmes, consultancy
26% 21% 36% 15% 47% 26% 26%
Promotional products some premiums, possibly small branding catalogues 16% 11% 23% 13% 24% 32% 10% Owner/Operator, strictly promotional product distributors 54% 64% 38% 68% 23% 36% 60% Other 4% 5% 3% 4% 6% 6% 4% D9. Head office location TOTAL (unweighted) 96 43 45 50 45 65 31 TOTAL (weighted) 96 67 23 66 28 27 69 British Columbia 7% 6% 9% 4% 13% 16% 3% Alberta 18% 21% 15% 22% 11% 15% 20% Prairies/ Territories 1% 0% 3% 0% 2% 2% 0% Saskatchewan 1% 0% 3% 0% 2% 2% 0% Ontario 50% 48% 46% 54% 46% 41% 54% Quebec 24% 25% 28% 20% 29% 25% 24% Atlantic 0% 1% 0% 1% 0% 1% 0% New Brunswick 0% 1% 0% 1% 0% 1% 0% D11. Location of branch offices or offices TOTAL (unweighted) 96 43 45 50 45 65 31 TOTAL (weighted) 96 67 23 66 28 27 69 British Columbia 4% 3% 7% 3% 6% 8% 3% Alberta 7% 3% 19% 4% 13% 6% 7% Ontario 11% 8% 14% 12% 11% 4% 14% Quebec 10% 8% 15% 9% 15% 14% 9% No branch offices 61% 64% 57% 62% 55% 60% 61% Not stated 14% 18% 9% 14% 15% 18% 13%
Appendix A – All Distributor Results by Key Groups 47
TOTAL Revenue Employees PPPC Member
<=$300k >$300k 1 or 2 3+ Yes No D11. Number of other offices/ branch offices in Alberta (Base: Company has offices/ branch offices in this location) TOTAL (unweighted) 7 1 5 2 5 6 1 TOTAL (weighted) 4 2 2 2 2 2 2 One 42% 0% 80% 15% 80% 83% 0% Not stated 58% 100% 20% 85% 20% 17% 100% D11. Number of other offices/ branch offices in BC (Base: Company has offices/ branch offices in this location) TOTAL (unweighted) 7 1 6 3 4 5 2 TOTAL (weighted) 6 2 4 3 3 2 5 One 84% 100% 76% 100% 71% 40% 100% Not stated 16% 0% 24% 0% 29% 60% 0% D11. Number of other offices/ branch offices in Ontario (Base: Company has offices/ branch offices in this location) TOTAL (unweighted) 7 3 3 4 3 3 4 TOTAL (weighted) 11 5 3 8 3 1 10 One 71% 53% 79% 64% 90% 33% 75% Two 3% 0% 11% 4% 0% 33% 0% Not stated 26% 47% 11% 32% 11% 33% 25% D11. Number of other offices/ branch offices in Quebec (Base: Company has offices/ branch offices in this location) TOTAL (unweighted) 15 6 5 7 8 12 3 TOTAL (weighted) 10 5 3 6 4 4 6 One 40% 56% 0% 58% 16% 51% 33% Two 24% 0% 72% 0% 56% 8% 33% Not stated 36% 44% 28% 42% 28% 41% 33%
Appendix A – All Distributor Results by Key Groups 48
TOTAL Revenue Employees PPPC Member
<=$300k >$300k 1 or 2 3+ Yes No
D12. Full Time Equivalent Staff Involved in Promotional Products at Your Head Office
TOTAL (unweighted) 96 43 45 50 45 65 31
TOTAL (weighted) 96 67 23 66 28 27 69
One 38% 50% 10% 55% 0% 17% 45%
Two 33% 39% 17% 45% 0% 27% 36%
Three 8% 8% 6% 0% 27% 21% 3%
4 to 5 10% 3% 23% 0% 34% 10% 10%
6 to 10 8% 0% 30% 0% 26% 20% 3%
More than 10 4% 0% 15% 0% 13% 6% 3%
Mean 3.4 1.7 8.0 1.5 8.1 5.2 2.7
Median 2 1 5 1 5 3 2
Maximum Value* 41 5 32 2 41 41 25
D12. Full Time Equivalent Staff Involved in Promotional Products Outside Head Office
TOTAL (unweighted) 96 43 45 50 45 65 31
TOTAL (weighted) 96 67 23 66 28 27 69
None 90% 96% 74% 95% 78% 91% 90%
One 6% 4% 14% 4% 11% 5% 7%
Two 3% 0% 13% 1% 9% 1% 4%
4 to 5 0% 0% 0% 0% 1% 1% 0%
6 to 10 0% 0% 0% 0% 1% 1% 0%
Mean 0.2 0.0 0.4 0.1 0.5 0.2 0.1
Median 0 0 0 0 0 0 0
Maximum Value* 10 1 2 2 10 10 2
* Maximum Value: This is the largest value in the answers supplied by respondents. For example, the greatest number of full time equivalent staff involved in promotional products at the head office was 41.
Appendix A – All Distributor Results by Key Groups 49
TOTAL Revenue Employees PPPC Member
<=$300k >$300k 1 or 2 3+ Yes No D12. Total FTE Staff Involved in Promotional Products at all locations TOTAL (unweighted) 96 43 45 50 45 65 31 TOTAL (weighted) 96 67 23 66 28 27 69 One 34% 46% 7% 50% 0% 14% 42% Two 36% 42% 18% 50% 0% 28% 39% Three 8% 8% 7% 1% 26% 21% 3% 4 to 5 8% 3% 12% 0% 26% 11% 6% 6 to 10 10% 0% 41% 0% 34% 18% 7% More than 10 4% 0% 15% 0% 14% 7% 3% Mean 3.6 1.7 8.4 1.5 8.6 5.4 2.9 Median 2 2 6 2 5 3 2 Maximum Value 46 5 32 3 46 46 26
D13. Percentage of your total sales came from your head office in 2012 TOTAL (unweighted) 96 43 45 50 45 65 31 TOTAL (weighted) 96 67 23 66 28 27 69 1 to 10 2% 3% 2% 3% 0% 1% 3% 11 to 20 3% 4% 0% 4% 0% 0% 4% 31 to 40 2% 3% 0% 0% 0% 8% 0% 41 to 50 2% 3% 0% 3% 0% 0% 3% 51 to 60 0% 0% 0% 0% 1% 1% 0% 61 to 70 3% 0% 11% 0% 10% 1% 4% 71 to 80 5% 3% 11% 3% 10% 3% 6% 91 to 99 1% 0% 3% 0% 2% 2% 0% 100 81% 84% 71% 86% 76% 81% 81% Not stated 1% 0% 3% 1% 1% 2% 0% Mean 91 90 93 92 94 92 91
Appendix A – All Distributor Results by Key Groups 50
TOTAL Revenue Employees PPPC Member
<=$300k >$300k 1 or 2 3+ Yes No D14. Total 2011 Promotional Products Revenue TOTAL (unweighted) 96 43 45 50 45 65 31 TOTAL (weighted) 96 67 23 66 28 27 69 $125,000 or less 48% 69% 0% 61% 14% 17% 60% $125,001 to $300,000 15% 20% 6% 16% 14% 20% 13% $300,001 to $500,000 11% 5% 32% 10% 15% 11% 11% $500,001 to $1,000,000 7% 0% 28% 3% 17% 16% 3% $1,000,001 to $2,000,000 6% 0% 27% 1% 20% 15% 3% More than $2,000,000 2% 0% 7% 0% 6% 6% 0% Not stated 12% 7% 0% 11% 15% 15% 11% Mean (000's) 366 99 1104 129 967 880 178 Median (000's) 125 55 800 62 550 415 62 Maximum Value (000's) 10051 325 10051 1100 10051 10051 1500
D14. Total 2012 Promotional Products Revenue TOTAL (unweighted) 96 43 45 50 45 65 31 TOTAL (weighted) 96 67 23 66 28 27 69 $125,000 or less 46% 67% 0% 61% 14% 17% 57% $125,001 to $300,000 23% 34% 0% 25% 12% 26% 22% $300,001 to $500,000 6% 0% 24% 6% 5% 11% 4% $500,001 to $1,000,000 9% 0% 38% 2% 25% 15% 7% $1,000,001 to $2,000,000 7% 0% 29% 1% 21% 17% 3% More than $2,000,000 2% 0% 9% 0% 7% 7% 0% Not stated 7% 0% 0% 4% 15% 7% 7% Mean (000's) 370 96 1183 128 1029 826 196 Median (000's) 126 70 810 70 670 355 72 Maximum Value (000's) 8982 300 8982 1200 8982 8982 1750
Appendix A – All Distributor Results by Key Groups 51
TOTAL Revenue Employees PPPC Member
<=$300k >$300k 1 or 2 3+ Yes No D15. Three most common job functions typically dealt with in client's organization TOTAL (unweighted) 96 43 45 50 45 65 31 TOTAL (weighted) 96 67 23 66 28 27 69 Administrative /Clerical 38% 47% 19% 47% 13% 36% 39% Communications/PR 21% 21% 26% 20% 17% 34% 16% Finance/Accounting 13% 18% 3% 15% 2% 10% 14% Human Resources 17% 14% 31% 11% 32% 25% 15% Marketing /Advertising 60% 48% 85% 49% 82% 88% 49% Owner 83% 85% 77% 83% 84% 73% 87% Purchasing 48% 38% 65% 43% 57% 49% 48% Sales 19% 24% 9% 25% 6% 18% 20%
D16. Top three industry sectors represented by client base TOTAL (unweighted) 96 43 45 50 45 65 31 TOTAL (weighted) 96 67 23 66 28 27 69 Advertising/Marketing Agencies 9% 10% 7% 7% 14% 10% 9% Automotive 15% 18% 7% 19% 8% 12% 17% Construction 35% 34% 44% 37% 24% 46% 31% Entertainment/Publishing 7% 3% 10% 4% 16% 17% 4% Finance (banking investment) 7% 4% 17% 4% 14% 9% 6% Government 32% 22% 48% 27% 45% 42% 28% High Technology 15% 18% 10% 15% 16% 19% 13% Insurance 11% 14% 4% 12% 4% 14% 10% Manufacturing (exc. automotive) 32% 17% 62% 24% 54% 32% 33% Not-for-profit sector (assoc./charity) 36% 41% 21% 38% 29% 40% 35% Pharmaceutical/Healthcare 13% 14% 13% 16% 7% 12% 13% Professional Services 28% 32% 19% 29% 20% 30% 27% Real Estate 18% 25% 3% 19% 9% 12% 20% Restaurant 24% 27% 21% 18% 33% 23% 25% Retail 15% 17% 12% 14% 10% 10% 17% Tourism and Hospitality 12% 14% 7% 12% 5% 16% 10% None of the above 0% 0% 2% 0% 1% 1% 0%
Appendix A – All Distributor Results by Key Groups 52
TOTAL Revenue Employees PPPC Member
<=$300k >$300k 1 or 2 3+ Yes No D17. Percentage of 2012 gross revenue allocated to: Cost of Goods Sold TOTAL (unweighted) 96 43 45 50 45 65 31 TOTAL (weighted) 96 67 23 66 28 27 69 1 to 10 2% 3% 0% 3% 0% 0% 3% 11 to 20 2% 3% 0% 3% 0% 1% 3% 21 to 30 6% 3% 4% 7% 5% 5% 6% 31 to 40 22% 23% 13% 20% 27% 8% 27% 41 to 50 24% 33% 4% 23% 20% 29% 22% 51 to 60 19% 19% 25% 20% 20% 18% 20% 61 to 70 4% 1% 15% 3% 8% 15% 0% 71 to 80 1% 2% 1% 2% 0% 5% 0% 81 to 90 2% 3% 0% 3% 0% 0% 3% Not stated 18% 12% 37% 17% 21% 18% 17% Mean 47 47 53 47 47 52 45
D17. Percentage of 2012 gross revenue allocated to: Selling Cost TOTAL (unweighted) 96 43 45 50 45 65 31 TOTAL (weighted) 96 67 23 66 28 27 69 None 0% 1% 0% 1% 0% 1% 0% 1 to 10 42% 51% 27% 47% 33% 33% 45% 11 to 20 26% 27% 16% 25% 22% 27% 25% 21 to 30 8% 7% 10% 8% 7% 19% 3% 31 to 40 3% 0% 2% 0% 10% 1% 4% 41 to 50 2% 0% 9% 0% 7% 0% 3% 61 to 70 2% 3% 0% 3% 0% 0% 3% Not stated 18% 12% 37% 17% 21% 18% 17% Mean 16 14 19 14 19 15 16
Appendix A – All Distributor Results by Key Groups 53
TOTAL Revenue Employees PPPC Member
<=$300k >$300k 1 or 2 3+ Yes No D17. Percentage of 2012 gross revenue allocated to: IT Costs TOTAL (unweighted) 96 43 45 50 45 65 31 TOTAL (weighted) 96 67 23 66 28 27 69 None 16% 20% 7% 18% 13% 17% 16% 1 to 10 66% 68% 56% 65% 66% 65% 67% Not stated 18% 12% 37% 17% 21% 18% 17% Mean 4 4 3 4 3 3 4 D17. Percentage of 2012 gross revenue allocated to: Fixed Overhead Costs TOTAL (unweighted) 96 43 45 50 45 65 31 TOTAL (weighted) 96 67 23 66 28 27 69 None 10% 13% 3% 10% 10% 11% 9% 1 to 10 54% 59% 52% 53% 53% 55% 53% 11 to 20 15% 12% 6% 16% 14% 9% 17% 21 to 30 3% 4% 3% 3% 4% 5% 3% 31 to 40 0% 1% 0% 1% 0% 1% 0% Not stated 18% 12% 37% 17% 21% 18% 17% Mean 9 9 8 10 9 8 10
Appendix A – All Distributor Results by Key Groups 54
TOTAL Revenue Employees PPPC Member
<=$300k >$300k 1 or 2 3+ Yes No D17. Percentage of 2012 gross revenue allocated to: All Other Expenses TOTAL (unweighted) 96 43 45 50 45 65 31 TOTAL (weighted) 96 67 23 66 28 27 69 None 12% 17% 2% 8% 16% 13% 12% 1 to 10 47% 47% 47% 50% 44% 46% 48% 11 to 20 17% 20% 11% 17% 18% 20% 16% 21 to 30 3% 0% 3% 4% 2% 3% 4% 31 to 40 3% 4% 0% 4% 0% 0% 4% Not stated 18% 12% 37% 17% 21% 18% 17% Mean 9 9 8 11 7 8 10 D17. Percentage of 2012 gross revenue allocated to: Net Profit TOTAL (unweighted) 96 43 45 50 45 65 31 TOTAL (weighted) 96 67 23 66 28 27 69 None 19% 17% 19% 21% 16% 11% 22% 1 to 10 18% 15% 30% 16% 23% 26% 15% 11 to 20 23% 25% 7% 20% 24% 37% 17% 21 to 30 12% 15% 6% 16% 2% 6% 14% 31 to 40 12% 16% 2% 10% 16% 2% 15% Not stated 18% 12% 37% 17% 21% 18% 17% Mean 15 18 9 15 15 13 16
Appendix A – All Distributor Results by Key Groups 55
TOTAL Revenue Employees PPPC Member
<=$300k >$300k 1 or 2 3+ Yes No D18. Method of determining the selling price of a product TOTAL (unweighted) 96 43 45 50 45 65 31 TOTAL (weighted) 96 67 23 66 28 27 69 Mark-up applied 55% 58% 52% 61% 38% 48% 58% Based on gross profit margin target 35% 34% 43% 30% 47% 44% 31% Other 9% 8% 4% 8% 12% 5% 11% Not stated 1% 1% 2% 1% 2% 4% 0% D19. Percentage of gross 2011 promotional product revenue derived from products supplied by members of PPPC TOTAL (unweighted) 96 43 45 50 45 65 31 TOTAL (weighted) 96 67 23 66 28 27 69 None 7% 10% 0% 10% 1% 9% 6% 1 to 10 0% 1% 0% 1% 0% 1% 0% 11 to 20 0% 0% 2% 0% 1% 1% 0% 21 to 30 3% 4% 0% 4% 1% 1% 4% 31 to 40 10% 7% 11% 11% 9% 2% 13% 41 to 50 9% 7% 18% 11% 7% 7% 10% 51 to 60 9% 11% 3% 9% 9% 5% 10% 61 to 70 5% 0% 23% 1% 17% 2% 7% 71 to 80 10% 9% 16% 10% 11% 18% 6% 81 to 90 20% 21% 10% 18% 25% 22% 19% 91 to 99 4% 3% 9% 5% 4% 9% 3% 100 13% 18% 2% 12% 10% 14% 13% Not stated 10% 11% 7% 12% 6% 9% 10% Mean 67 67 67 63 73 71 65
Appendix A – All Distributor Results by Key Groups 56
TOTAL Revenue Employees PPPC Member
<=$300k >$300k 1 or 2 3+ Yes No D19. Percentage of gross 2012 promotional product revenue derived from products supplied by members of PPPC TOTAL (unweighted) 96 43 45 50 45 65 31 TOTAL (weighted) 96 67 23 66 28 27 69 None 2% 3% 0% 3% 1% 1% 3% 1 to 10 5% 7% 0% 3% 9% 11% 3% 11 to 20 0% 0% 2% 0% 1% 1% 0% 21 to 30 3% 4% 0% 4% 1% 1% 4% 31 to 40 8% 4% 12% 7% 10% 4% 10% 41 to 50 14% 14% 17% 18% 5% 6% 17% 51 to 60 4% 4% 4% 4% 2% 4% 4% 61 to 70 3% 3% 1% 1% 9% 4% 3% 71 to 80 12% 8% 26% 9% 18% 16% 10% 81 to 90 20% 20% 12% 21% 17% 22% 19% 91 to 99 2% 1% 9% 2% 4% 9% 0% 100 16% 22% 2% 19% 10% 6% 20% Not stated 12% 11% 17% 9% 13% 16% 10% Mean 68 68 67 69 65 68 68
Appendix A – All Distributor Results by Key Groups 57
TOTAL Revenue Employees PPPC Member
<=$300k >$300k 1 or 2 3+ Yes No D21. Percentage of gross 2012 promotional product revenue derived from: Canadian suppliers TOTAL (unweighted) 96 43 45 50 45 65 31 TOTAL (weighted) 96 67 23 66 28 27 69 11 to 20 2% 3% 0% 3% 0% 0% 3% 21 to 30 1% 0% 3% 0% 2% 2% 0% 31 to 40 4% 4% 4% 4% 2% 4% 4% 41 to 50 5% 3% 14% 3% 11% 2% 7% 51 to 60 12% 10% 10% 13% 12% 9% 14% 61 to 70 15% 15% 7% 11% 26% 21% 13% 71 to 80 17% 17% 21% 18% 16% 12% 19% 81 to 90 18% 17% 24% 19% 17% 28% 14% 91 to 99 14% 16% 14% 16% 3% 14% 14% 100 11% 15% 0% 12% 7% 5% 13% Not stated 1% 0% 3% 0% 3% 4% 0% Mean 76 79 72 78 71 78 76
Appendix A – All Distributor Results by Key Groups 58
TOTAL Revenue Employees PPPC Member
<=$300k >$300k 1 or 2 3+ Yes No D21. Percentage of gross 2012 promotional product revenue derived from: U.S. suppliers TOTAL (unweighted) 96 43 45 50 45 65 31 TOTAL (weighted) 96 67 23 66 28 27 69 None 11% 15% 0% 12% 7% 5% 13% 1 to 10 29% 32% 28% 34% 13% 39% 26% 11 to 20 22% 18% 39% 19% 32% 23% 22% 21 to 30 25% 27% 12% 22% 33% 23% 25% 31 to 40 9% 4% 16% 9% 10% 4% 11% 41 to 50 0% 0% 2% 0% 1% 1% 0% 51 to 60 3% 4% 2% 4% 0% 1% 4% Not stated 1% 0% 3% 0% 3% 4% 0% Mean 18 16 20 17 21 17 18
D21. Percentage of gross 2012 promotional product revenue derived from: Suppliers outside Canada/U.S. TOTAL (unweighted) 96 43 45 50 45 65 31 TOTAL (weighted) 96 67 23 66 28 27 69 None 58% 67% 35% 72% 29% 37% 65% 1 to 10 30% 24% 39% 19% 50% 48% 22% 11 to 20 6% 3% 17% 4% 12% 5% 7% 21 to 30 1% 0% 3% 0% 2% 2% 0% 31 to 40 2% 3% 0% 3% 0% 0% 3% 41 to 50 0% 0% 2% 0% 1% 1% 0% 51 to 60 2% 3% 1% 3% 1% 1% 3% 61 to 70 0% 0% 2% 0% 1% 1% 0% Not stated 1% 0% 3% 0% 3% 4% 0% Mean 6 5 8 5 8 6 6
Appendix A – All Distributor Results by Key Groups 59
TOTAL Revenue Employees PPPC Member
<=$300k >$300k 1 or 2 3+ Yes No D22. Promotional product categories sold in 2012 TOTAL (unweighted) 96 43 45 50 45 65 31 TOTAL (weighted) 96 67 23 66 28 27 69 Automotive Accessories 53% 47% 72% 41% 79% 64% 49% Buttons/Badges/Ribbons/Stickers/Magnets 70% 63% 87% 65% 81% 91% 62% Calendars 63% 59% 77% 64% 65% 66% 62% Computer Products 34% 23% 71% 24% 60% 62% 23% Desk/Office/Business Accessories 76% 67% 99% 70% 97% 77% 76% Drinkware (Coffee Mugs) 84% 78% 99% 81% 92% 85% 84% Drinkware (Other Drinkware) 68% 55% 97% 61% 89% 79% 64% Electronic Products, Devices, and Accessories 26% 19% 51% 22% 36% 30% 24% Food Products 26% 19% 55% 22% 38% 43% 20% Games/Toys/Playing Cards /Inflatables 32% 20% 61% 20% 63% 55% 23% Housewares 26% 21% 47% 24% 33% 39% 22% Jewellery/Watches/Clocks 45% 34% 87% 30% 76% 70% 36% Leisure Products 53% 42% 75% 50% 66% 51% 54% Personal/Pocket-Purse Products 46% 32% 83% 32% 80% 57% 41% Plaques/Trophies 51% 43% 61% 40% 72% 82% 39% Sporting Goods (specifically Golf Accessories) 52% 39% 90% 41% 81% 56% 50% Sporting Goods (other than Golf) 28% 20% 33% 23% 42% 27% 28% Textiles 71% 58% 100% 60% 93% 92% 63% Tools 50% 33% 85% 38% 80% 69% 42% Travel Products and Accessories 48% 29% 93% 37% 77% 61% 42% Wearables/Apparel (golf garments) 69% 60% 96% 56% 97% 90% 61% Wearables/Apparel (other than golf) 85% 83% 86% 82% 90% 95% 81% Writing Instruments 89% 86% 97% 86% 98% 95% 87% Other 16% 22% 3% 18% 11% 16% 15%
Appendix A – All Distributor Results by Key Groups 60
TOTAL Revenue Employees PPPC Member
<=$300k >$300k 1 or 2 3+ Yes No D23. Avg. percentage of 2012 gross revenues derived from each category TOTAL (unweighted) 96 43 45 50 45 65 31 TOTAL (weighted) 96 67 23 66 28 27 69 Automotive Accessories 4% 4% 2% 4% 2% 2% 4% Buttons/Badges/Ribbons/Stickers/Magnets 6% 6% 3% 6% 3% 6% 6% Calendars 7% 8% 2% 9% 3% 2% 9% Computer Products 1% 1% 2% 1% 3% 3% 1% Desk/Office/Business Accessories 5% 5% 6% 5% 5% 3% 6% Drinkware (Coffee Mugs) 4% 4% 6% 4% 5% 4% 5% Drinkware (Other Drinkware) 3% 3% 5% 3% 4% 4% 3% Electronic Products, Devices, and Accessories 1% 1% 2% 1% 1% 1% 1% Food Products 1% 1% 1% 1% 0% 1% 1% Games/Toys/Playing Cards /Inflatables 1% 1% 1% 1% 1% 1% 1% Housewares 1% 1% 1% 1% 1% 1% 1% Jewellery/Watches/Clocks 2% 2% 3% 2% 3% 2% 2% Leisure Products 4% 4% 3% 5% 2% 1% 5% Personal/Pocket-Purse Products 1% 1% 3% 1% 2% 2% 1% Plaques/Trophies 2% 2% 2% 2% 2% 4% 2% Sporting Goods (specifically Golf Accessories) 4% 4% 6% 4% 5% 2% 5% Sporting Goods (other than Golf) 2% 2% 1% 2% 1% 1% 2% Textiles 5% 4% 6% 4% 6% 8% 4% Tools 1% 1% 2% 1% 1% 2% 1% Travel Products and Accessories 2% 1% 4% 1% 3% 3% 2% Wearables/Apparel (Golf Garments) 9% 9% 11% 8% 11% 17% 6% Wearables/Apparel (other than Golf) 23% 24% 21% 22% 27% 23% 24% Writing Instruments 9% 9% 8% 9% 6% 8% 9% Other 2% 2% 1% 2% 1% 2% 2%
Appendix A – All Distributor Results by Key Groups 61
TOTAL Revenue Employees PPPC Member
<=$300k >$300k 1 or 2 3+ Yes No D25. Avg. percentage of 2012 promotional product sales derived from each program type TOTAL (unweighted) 96 43 45 50 45 65 31 TOTAL (weighted) 96 67 23 66 28 27 69 Brand Awareness 18% 18% 15% 18% 18% 14% 19% Business Gifts 17% 16% 23% 13% 26% 18% 17% Customer Referral 4% 4% 4% 4% 4% 4% 4% Dealer/Distributor Programmes 2% 2% 3% 2% 3% 4% 2% Employee Incentive Programmes 6% 6% 7% 5% 7% 6% 6% Employee Relations and Events 12% 14% 7% 15% 6% 6% 13% Employee Safety and Education 4% 4% 4% 4% 4% 5% 4% Employee Service Awards 4% 4% 4% 4% 4% 6% 3% Marketing Research 1% 1% 2% 1% 1% 2% 1% New Customer/Account Generation 8% 8% 7% 8% 6% 5% 8% New Product/Service Introduction 5% 5% 6% 5% 5% 4% 5% Not-for-Profit Programmes 3% 3% 3% 4% 2% 5% 3% Public Relations 6% 5% 4% 6% 5% 9% 5% Trade Shows 7% 8% 6% 8% 6% 9% 7% All Other Reasons 3% 2% 5% 3% 3% 5% 3%
Appendix B – All Supplier Results 62
S3. Company is a member of the Promotional Product Professionals of Canada
TOTAL (unweighted) 47
TOTAL (weighted) 47
Yes 90%
No 10%
S4. Company imports products from outside Canada
TOTAL (unweighted) 47
TOTAL (weighted) 47
Yes 72%
No 28%
S5. Sources used to procure products
(Base: Company imports products from outside Canada in S4)
TOTAL (unweighted) 34
TOTAL (weighted) 34
Directly from original product manufacturer located in Asia 74%
Directly from original product manufacturer located in a country other than in Asia 64%
From Asia using a trading agent, sales agent, or vendors located in Asia 24%
From Asia through own organization, acting as trading or sales agent 38%
From other countries other than in Asia, using either of the two previous methods 30%
Manufacture our own goods in Canada 48%
Appendix B – All Supplier Results 63
S6. Import from... (Base: Company imports products from outside Canada in S4) TOTAL (unweighted) 34 TOTAL (weighted) 34 Mexico 8% United States 71% South America 12% Europe 17% India, Pakistan, Sir Lanka 22% Mainland China 80% Korea 6% Taiwan 25% Japan 12% Hong Kong 13% Australia 3% Other Pacific Rim countries 8% Other 8% S7. Company intends to import direct in near future (Base: Company does not import products from outside Canada in S4) TOTAL (unweighted) 13 TOTAL (weighted) 13 Yes 23% No 77% S8. Company is primarily a... TOTAL (unweighted) 47 TOTAL (weighted) 47 Manufacturer 47% Importer 21% Printer 14% Other 18%
S9. Instances when promotional products lines are sold direct to "corporate buyers" TOTAL (unweighted) 47 TOTAL (weighted) 47 To long-time corporate customers 14% For very large orders 9% In special circumstances 20% Very large orders with commission to distributor 16% Other 15% Never sell direct 57% S10. Head office location TOTAL (unweighted) 47 TOTAL (weighted) 47 British Columbia 13% Alberta 4% Prairies/ Territories 2% Manitoba 2% Ontario 51% Quebec 25% Atlantic 5% New Brunswick 3% Nova Scotia 3% S12. Location of branch offices or offices TOTAL (unweighted) 47 TOTAL (weighted) 47 British Columbia 6% Alberta 2% Nova Scotia 3% Ontario 20% No branch offices 65% Not stated 12%
Appendix B – All Supplier Results 64
Appendix B – All Supplier Results 65
S12. Number of other offices/ branch offices in Ontario
(base: Company has offices/ branch offices in this location)
TOTAL (unweighted) 10
TOTAL (weighted) 9
One 41%
Two 30%
Not stated 29%
S13. Percentage of your total sales came from your head office in 2012
TOTAL (unweighted) 47
TOTAL (weighted) 47
None 4%
51 to 60 4%
61 to 70 2%
81 to 90 2%
91 to 99 2%
100 75%
Not stated 11%
Mean 92.6
Appendix B – All Supplier Results 66
S14. Full Time Equivalent Staff Involved in Promotional Products at your Head Office TOTAL (unweighted) 47 TOTAL (weighted) 47 One 12% Two 8% Three 7% 4 to 5 13% 6 to 10 14% 11 to 50 38% More than 50 9%
Mean 15.2
Median 8
Maximum Value 70
S14. Full Time Equivalent Staff Involved in Promotional Products outside Head Office TOTAL (unweighted) 47 TOTAL (weighted) 47 None 77% One 2% Two 9% Three 4% 4 to 5 2% 6 to 10 2% 11 to 50 4%
Mean 1.8
Median 0
Maximum Value 45
Appendix B – All Supplier Results 67
S14. Total FTE Staff Involved in Promotional Products at all locations TOTAL (unweighted) 47 TOTAL (weighted) 47 One 10% Two 4% Three 9% 4 to 5 13% 6 to 10 12% 11 to 50 42% More than 50 11%
Mean 17.2
Median 10
Maximum Value 70
S15. Total 2011 Promotional Products Revenue TOTAL (unweighted) 47 TOTAL (weighted) 47 $125,000 or less 6% $125,001 to $300,000 5% $300,001 to $500,000 2% $500,001 to $1,000,000 17% $1,000,001 to $2,000,000 14% $2,000,001 to $5,000,000 17% More than $10,000,000 4% Not stated 35% Mean (000's) 2528 Median (000's) 1750 Maximum Value (000's) 20000
Appendix B – All Supplier Results 68
S15. Total 2012 Promotional Products Revenue
TOTAL (unweighted) 47
TOTAL (weighted) 47
$125,000 or less 6%
$125,001 to $300,000 5%
$300,001 to $500,000 4%
$500,001 to $1,000,000 15%
$1,000,001 to $2,000,000 12%
$2,000,001 to $5,000,000 24%
More than $10,000,000 2%
Not stated 33%
Mean (000's) 2255
Median (000's) 1770
Maximum Value (000's) 20000
Appendix B – All Supplier Results 69
S16. Percentage of gross 2011 promotional product revenue derived from products supplied to members of PPPC
TOTAL (unweighted) 47
TOTAL (weighted) 47
None 8%
11 to 20 5%
21 to 30 3%
31 to 40 2%
41 to 50 7%
51 to 60 13%
61 to 70 15%
71 to 80 7%
81 to 90 9%
91 to 99 2%
100 6%
Not stated 25%
Mean 58.7
Appendix B – All Supplier Results 70
S16. Percentage of gross 2012 promotional product revenue derived from products supplied to members of PPPC
TOTAL (unweighted) 47
TOTAL (weighted) 47
None 6%
11 to 20 5%
31 to 40 5%
41 to 50 11%
51 to 60 10%
61 to 70 13%
71 to 80 4%
81 to 90 11%
91 to 99 4%
100 6%
Not stated 25%
Mean 60.6
Appendix B – All Supplier Results 71
S17. Percentage of gross 2012 promotional product revenue derived from: Canadian suppliers
TOTAL (unweighted) 47
TOTAL (weighted) 47
None 13%
1 to 10 8%
11 to 20 9%
31 to 40 4%
41 to 50 6%
71 to 80 7%
81 to 90 7%
91 to 99 2%
100 16%
Not stated 30%
Mean 49.4
Appendix B – All Supplier Results 72
S17. Percentage of gross 2012 promotional product revenue derived from: U.S. suppliers TOTAL (unweighted) 47 TOTAL (weighted) 47 None 31% 1 to 10 12% 11 to 20 5% 21 to 30 2% 31 to 40 2% 41 to 50 6% 51 to 60 4% 71 to 80 4% 81 to 90 3% 91 to 99 2% Not stated 30% Mean 22.3
S17. Percentage of gross 2012 promotional product revenue derived from: Suppliers outside Canada/U.S. TOTAL (unweighted) 47 TOTAL (weighted) 47 None 37% 1 to 10 8% 11 to 20 5% 51 to 60 2% 71 to 80 5% 81 to 90 6% 100 9% Not stated 30% Mean 28.3
Appendix B – All Supplier Results 73
S18. Amount spent on printed materials in 2012
TOTAL (unweighted) 47 TOTAL (weighted) 47
Less than $5,000 11% $5,000 to $9,999 9% $10,000 to $19,999 9% $20,000 to $49,999 5% $50,000 to $99,999 13% $100,000 or more 6% Not stated 49%
Mean $35,235 S18. Amount spent on printed materials in 2011
TOTAL (unweighted) 47 TOTAL (weighted) 47 Less than $5,000 7%
$5,000 to $9,999 11% $10,000 to $19,999 9%
$20,000 to $49,999 5% $50,000 to $99,999 8%
$100,000 or more 8% Not stated 53% Mean $35,904
Appendix B – All Supplier Results 74
S18. Amount spent on printed materials in 2010
TOTAL (unweighted) 47 TOTAL (weighted) 47
Less than $5,000 5% $5,000 to $9,999 16% $10,000 to $19,999 6% $20,000 to $49,999 7% $50,000 to $99,999 2% $100,000 or more 8% Not stated 57%
Mean $32,281 S18. Amount spent on printed materials in 2009
TOTAL (unweighted) 47 TOTAL (weighted) 47 Less than $5,000 2%
$5,000 to $9,999 16% $10,000 to $19,999 2%
$20,000 to $49,999 11% $50,000 to $99,999 2%
$100,000 or more 8% Not stated 59% Mean $35,736