The promotional products industry has been organised in the form of elected representational institutions for decades already. And this has been a frequently discussed topic for just as long. Which tasks should an industry association carry out and which not? And how can the networking of the individual European associations be improved to achieve a greater influence at pan-European level? eppi magazine and the Dutch magazine, PromZ Vak, spoke with representatives from promotional products associations all over Europe in the scope of a joint research.
According to estimations of the ASI (Advertising Specialty Institute), haptic advertising turns over more than 11 billion Euros in Europe annually. This is mind you an estimate. The fact that the European promotional products market, although meanwhile a respectable economic factor, doesn’t dispose of reliable market data, is symptomatic – because compared to other sectors, the promotional products industry is still in its infancy regarding image profiling. Accordingly the needs of the industry still hardly play a role in the places where political decisions are taken.
However, it wouldn’t be factually correct to express these grievances without honouring at the same time the organisations that assert themselves to improve the standing of the industry – and have already been doing so for a long period of time. Entrepreneurs and pioneers already joined forces to form industry representations for promotional products market decades ago.
Whereas the American promotional products association, PPAI (Promotional Products Association International), which was founded in 1904, already looks back on a history that dates back more than a hundred years, it took until the post-war years for the first industry representations to emerge in Europe. British pioneers founded the Bagda (Business Advertising Gift Distributor Association) in 1948, the association, which was later renamed Promota, no longer exists today. This was followed by the Fyvar (Asociación de Fabricantes y Vendedores de Artículos Promocionales y Publicitarios) in Spain in 1953, and by a second association in the UK in 1965, the BPMA (British Promotional Merchandise Association). Most of the other European associations were founded much later, but today national promotional products associations are in place throughout Europe (an overview can be found on page 50).
Image profiling and further education
As different as the associations may be regarding their size, structure and methods of operation – what they do all have in common is the desire to give their industry a structure, bring together the individual players of a partly unclearly defined market and pursue common interests. As such, the associations contribute decisively towards establishing the industry’s identity, both internally and externally.
“There are many tasks our association focuses on, but the most important one is to positively promote the industry to all stakeholders, particularly to the end clients,” stated Joop van Veelen, Chairman of the Dutch association, PPP (Promotional Products Professionals). “Promotional products and services should be taken seriously as a marketing tool. And by promotional products and services, I also mean corporate gifts, end-of-year gifts, Christmas hampers, promotional clothing and workwear – in short, our entire industry.”
To achieve such an external image of the promotional products industry it is essential that the sector works continually and consistently on the professionalisation thereof. Associations are a crucial link here, as Phil Goodman, Managing Director of the BPMA, emphasised: “Our role is to help set and maintain the highest standards. We operate a robust education programme to help ensure those working within our industry can continually learn and develop their expertise and we host awards to showcase the best our industry has to offer. Additionally, we act as a guide and mentor for our members to ensure we and they remain ahead of all challenges and opportunities confronting our industry.” For Goodman, sustainability plays a key role in the latter: “The challenge is one of potential negative perception, but the opportunity is within innovation, both in materials and performance. Our members are doing phenomenal work to remain ahead of the sustainability challenge. It is our responsibility to reflect this to mitigate against any potential negative perception.”
Antony Villéger, Chairman of the French association, 2fpco (Fédération Francaise des Professionels de la Communication par l’Objet) has similar priorities: “Among the essential activities of the 2fpco, I would highlight firstly training and certifications, which enable members to stay at the forefront of market developments and meet the increasing requirements. Secondly, annual events, such as the summer and spring universities, offer unique opportunities for knowledge sharing and professional development. Thirdly, lobbying and representation are crucial for making our sector’s voice heard and defending its interests with political and economic decision-makers.”
Sharing knowledge
“We believe that sharing knowledge is very important, which is why we have a significant focus on education,” added van Veelen. “The Young Professionals initiative ensued from this focus. Our education branch also publishes the ‘professional book’, which all industry newcomers should have on their desks. Another important activity is our accreditation system. Every member must earn a certain number of points to be accredited by us. The system has truly become a quality mark that is being recognised by more and more clients. In the case of big tenders, being accredited by us is often a requirement.”
According to van Veelen, all of this has led to “us being 100% representative of the industry. There’s always room for improvement in the number of members or in broader representation of our profession, but we are taken seriously, even in political circles, where we are represented by ONL (Ondernemend Nederland).” The Dutch enterprise representative, ONL, has set itself the goal of making the voice of the companies heard and represents them in The Hague and Brussels.
Tackling rules & regulations
In Germany, the biggest individual market in Europe – more than 3.3 billion Euros are invested here in haptic advertising annually – the GWW (Gesamtverband der Werbeartikel-Wirtschaft e.V.) represents the promotional products industry. The association has 450 members. The Chairman, Frank Jansen, describes the main tasks of the association as follows: “As representatives of the interests of the promotional products industry, the German Association is responsible for achieving better framework conditions and a higher acceptance of our form of advertising.
All types and sizes of companies are represented within the association which means we have a good idea of the needs and requirements of the market participants. The association bundles these forces to positively influence the economic, political and tax-related requirements for the industry in Germany and Europe. Furthermore, the GWW is a service provider to its members, offering among others initial legal counselling, webinars on various themes as well as pointing out changes to legal standards.”
In the form of the BAPP (Belgian Association of Promotional Products) that was founded in the year 2000, Belgium, a small market in comparison to Germany, nevertheless disposes of a bustling and committed association that disposes of plenty of experience regarding representing the industry’s interests in government circles. “One of the most crucial activities of BAPP is helping members navigate the complex regulatory environment,” the two Chairmen, Bert Anthonissen and Olivier Claeys, stated. “The association’s efforts in advocacy and representation ensure that the interests of the promotional products sector are considered in legislative and regulatory decisions. This activity is particularly important because it protects members from potential legal pitfalls and ensures their voices are heard in policymaking.”
Whereas BAPP boasts two Chairmen to represent the Flemish-speaking Flanders region and the francophone area of Wallonia, on the Iberian peninsula two actual associations coexist: The aimfap, which represents suppliers from Spain and Portugal, and the equally Spanish/Portuguese Fyvar, whose members comprise of distributors and printing service providers. The Chairman of aimfap, Emilio Estellés-Zanón feels this is not a disadvantage: “We have been collaborating with Fyvar intensely for about eight years. Its president, Gabriel Moëse, has always shown his ability to reconcile with aimfap. Both associations are committed to understanding each other and probably to associate in some way in the future. We collaborate in roadshows, in the strategy of the trade show, Promogift, and we are also jointly negotiating with C!print regarding the growth of both fairs in 2025.”
The art of compromise
Whether cooperating with other industry representatives or the collaboration among the members: The many interests of different market players have to be taken into consideration, decisions have to be made and compromises found. “In our association we have huge companies that coexist with small companies that have diverse interests,” said Estellés-Zanón. “One of the key points is making decisions that can serve the largest companies and at the same time do no harm to the small ones.”
It goes without saying that that doesn’t always happen without discussions and differences of opinion. Villéger: “Divergences can emerge particularly on pricing and margin issues – suppliers and distributors might have different views on pricing structures – or sustainability standards – while everyone agrees on the importance of CSR, the approaches to achieving it can vary. Another topic of discussion is digitalisation: Some members may be more technologically advanced than others, creating disparities in adopting new technologies.”
“The varying interpretations of regulations and compliance requirements can also cause conflicts,” added Anthonissen and Claeys, “particularly if some members feel that others are not adhering to the same standards. Furthermore, disputes may arise over market access and competition, especially if larger members are perceived to have advantages over smaller companies. Last, but not least, decisions regarding the allocation of resources, such as funding for initiatives or events, can lead to disagreements if members have differing opinions on priorities.”
Who is going to pay for it?
Because the majority of the funding that the associations dispose of is funded by the members, who keep their associations afloat with their annual membership fees. The financing models throughout Europe differ greatly: For example, all of the members of the GWW pay the same membership fee of 1,000 Euros, whereas the aimfap charges its members 360 Euros. Other associations, including BAPP, BPMA, 2fpco and PPP, stagger their membership fees according to the size of the member company. “Our fee structure is tiered and depends on the company’s size and revenue,” explained van Veelen. “It ranges from 600 to 2,500 Euros per year.“ In all cases the following applies: Many association activities, particularly lobby work, cost a lot of money, further sources of income beyond the membership fees are thus always welcome.
Come together
Trade shows are an established financing tool. For almost all of the organisations, events play an important role in association life. For example, for aimfap, the PMG Promogift, which it stages in cooperation with the Fyvar and the Ifema Madrid is a key event as Estellés-Zanón reported: “Since the end of the Spanish promotional show, Expo Reclam, we saw the need to continue with a new fair project. Our sector is very unique and it is not easy to distinguish the role of the supplier, the distributor and the end customer. So our task was to ensure that the attending companies were exclusively distributors, while helping to define a trade show model that was sustainable over time and would benefit all companies regardless of their size.”
“Promotional merchandise is a physical thing,” declared Goodman, whose association organises the Merchandise World twice a year in cooperation with Sourcing City. “We feel it is imperative that an opportunity exists for our industry to come together and interact with our products. We are also fundamentally a very human and friendly industry, so the opportunity to meet, network and engage with one another is important.” For Goodman, the fact that the BPMA is involved in the show is a decisive factor, because it “creates a sense of industry flagship and credibility as opposed to a third party only show, where the motivation is likely to be purely commercial.”
BAPP has been organising its own trade show itself for over 20 years, which is called the Networking Gift Show today. The show brings suppliers from Belgium and Europe together with the Belgian promotional products trade. The one-day event that takes place annually at the end of the summer fulfils a host of functions for the association, but is also an important source of money: “Organising a trade fair enhances the visibility and reputation of BAPP within the industry. Furthermore, by hosting its own trade fair, BAPP strengthens the sense of community among its members. A trade fair allows BAPP to gather direct feedback and gain valuable insights into market needs and trends. By setting standards for participation and exhibiting, BAPP promotes best practices in the industry. The trade fair can also serve as a source of revenue for BAPP. Funds raised from the event can be reinvested into member services, educational programmes and advocacy initiatives, further enhancing the value of the association to its members.”
Association or organiser?
In Germany, the GWW organises and finances no less than three trade shows independently: The Trend that is held twice a year – once in the autumn and once in the spring – and the Newsweek that is designed as a roadshow which is spread out over the first months of the year at diverse locations throughout Germany. Whilst exclusively promotional products distributors are allowed to attend the Trend, the Newsweek targets end users, who are invited by the participating promotional products distributors.
The fact that the GWW organises all of the shows itself gradually happened over the course of time, Jansen noted. “The constancy at the association’s office has led to a comprehensive know-how that helps organise the new editions well and with great routine year after year. We engage in a close exchange with our members, know their wishes and needs which enables us to act very efficiently together.”
Following the merger between the three individual German associations, AKW, bwg and BWL in 2015, the GWW “inherited” the Trend and the Newsweek from the distributor/supplier associations. However, the shows have been significantly expanded since: For example, the spring edition of the Trend was only introduced in 2020 – whereas many considered it to be an attack on the PSI Show.
The Newsweek has also been extended over the course of the years and is being scheduled much earlier in 2025 which means it moves very close to established events such as the PSI, the HAPTICA® live as well as many in-house shows of large distributors. The fact that the GWW is causing a conflict by scheduling these events in February and March that are already full of shows and putting additional pressure on the event calendars of the exhibitors has led to heated discussions within the German industry. It is further criticised that the GWW is implementing available funds to compete against some of its own members. But above all members are asking themselves if it is the task of an association to primarily take on the role as a trade show organiser instead of investing its capacities in the original tasks of an association such as lobby work and genre marketing.
Stick to your guns
If one takes a look around at the European industry, one can confirm that most of the big associations rely on a partner to organise their shows. “A profession like ours benefits from a very good trade show. It is logical for a trade association to be involved in that. However, you don’t have to organise it yourself,” said Van Veelen. “The same applies to industry awards. We want to be involved from the side-lines, but also want to avoid any conflict of interest. In my opinion, we have arranged this well in the Netherlands.”
The PPP has been cooperating well with the publishing company and event organiser, Het Portaal, for many years, as van Veelen continued: “We soon realised that it was better to outsource the trade show organisation so that we could focus on our core activities and more important tasks, which are more fitting for a trade association. However, we continue to work closely with Het Portaal, to whom we outsourced this. We still participate with great pleasure in trade shows like The Supplier Days every year.”
The BPMA on the other hand organises the Merchandise World, which is held twice a year, in cooperation with the industry service provider, Sourcing City: “We are a very small team. We haven’t the capacity to organise it all ourselves and Sourcing City has proved to be a valued partner,” Goodman explained. “We feel we work very well together and the partnership delivers a truly first-class experience.”
Estellés-Zanón also praised their cooperation with the Madrid-based trade fair company, Ifema, which “has always been exceptionally good. Our collaboration is very close with the Fair Director, Julia Gonzáles, and her team, with frequent meetings to discuss any matter related to the development of PMG Promogift, expanding the fair to new related sectors.”
European-wide cooperation
If the organisation of industry shows above all takes place on a national level, there are many themes and challenges that the promotional products industry has to ask itself throughout Europe. In a market that is connected through international trade and business relationships to the extent that the haptic advertising market is, it is matter of course that the individual associations cooperate with each other where possible.
“European associations can learn a great deal from each other, including sharing best practices in regulation, training and sustainability, collaborating on joint projects to strengthen the industry’s voice at European level and exchanging data and market studies to gain a more comprehensive and accurate view of the sector continent-wide,” commented Villéger. Van Veelen added: “Very often, you see that we are reinventing the wheel in different countries. It is very inefficient. We all benefit by meeting more often, working together and sharing experiences.”
These were the lines of thought that initiated just over a dozen representatives from European association to found a new, pan-European industry representation last year: The EAC (European Associations Cooperation) has set itself the goal of promoting the collaboration all over Europe, coordinating the efforts of the individual associations more efficiently and in this way attaining more leverage, regarding the lobby work in Brussels, for example.
The European countries represented within the EAC to-date include Belgium, Germany, France, Italy, the Netherlands, Austria, Poland, Portugal, Sweden, Spain and the United Kingdom. The PSI and the PPAI are cooperation partners of the EAC, that are not ordinary association members, however they support the organisation with resources and know-how.
The head office of the EAC will be in Brussels and will have the legal form of an AISBL (Association Internationale Sans But Lucratif/International Non-Profit Organisation). The association is to be officially founded in the immediate near future. Ulrik Heidbuchel, Managing Director of Premium Partners and board member of BAPP, noted: “An AISBL allows the members the greatest possible leeway and takes into account the complex structures of the individual associations.”
The EAC is to have an executive board, an operative team and a supervisory board. Steven Baumgaertner, CEO of cyber-Wear is taking over the position of Chairman. “The EAC will be legitimised as a European umbrella association based in Brussels,” explained Baumgaertner. “All of the participating countries or associations agreed to this unanimously and in writing. We intend to implement individual task forces, which will be headed by one member country each, to push the core topics of our cooperation. We hope to achieve more impact by taking a focused approach, rather than everyone working on all the important core themes at once.”
Task forces
The themes that the task forces will address include the international lobby work, which the BAPP is heading. “Belgium is very active here and lobby work is done in Brussels so it was a no-brainer that we took over the lobby work task force,” stated Heidbuchel. “We will work closely together with the PSI here. There is no point in acting separately.”
Further fields of action include sustainability, training and digitalisation, as Baumgaertner explained: “In Kjell Harbom, we have a true expert heading the Sustainability Task Force. We want to cooperate closely with the PSI on compliance and leverage synergies together, there are also plans to work together on the PSI Sustainability Awards. We want to get the industry fit for the future regarding Youth Promotion too and motivate young people for the industry. Furthermore, we are working flat out to develop a joint digitalisation platform for the EAC members, where we can steer and administer all of the relevant information centrally.“
The participating associations are very confident and committed. “Having the centralised opportunity to share experiences with our European partners and to hear first-hand what each country’s challenges are and how they are confronting them, is extremely valuable,” said Goodman, and Van Veelen agreed: “We are strong supporters of the EAC and dare to say that we were pioneers. By lobbying at European level and tackling important issues together, work can be saved and we can highlight the industry’s position on the map internationally. The challenge is to persevere and ensure that everyone remains aligned. If we focus on the shared goal of advancing the profession, this will work – I am truly convinced of that.”
Decentralised structure
The EAC distinguishes itself from its predecessor in one decisive point: its decentralised structure. A European umbrella association, the eppa (european promotional products association) existed for many years, however it ultimately ceased operating. “In the past not only associations, but also individual suppliers – the so-called Steering Committee – were sat around the table at eppa, which led to a conflict of interests,” reported Heidbuchel. “Whereas now only the representatives of the association are on board, who are all on the same page. Furthermore, the EAC is to be financed by the national associations, and what is also very important is that the task forces were formed within the individual organisations, which is where the actual work is done. Unlike in the days of eppa, where a lot of money flowed into the umbrella association, which then carried out all of the projects on its own, there is now a decentralised model, in which the EAC itself takes on a coordinating and supporting role.”
“The EAC is purely an umbrella association of the associations and will not be influenced by individual economic interests, as was the case with eppa, which ultimately led to it being disbanded,” added Jansen, who is convinced: “The European promotional products industry needs a European umbrella association to recognise the EU’s regulatory interventions in business life at an early stage and possibly also influence them. Our industry is rarely referred to in the case of many topics, but frequently affected by them!”
Commitment and integrity
Of course, the EAC will also be faced with the task of uniting many different opinions and expectations. “Balancing the diverse interests of members from different countries and business models will be a significant challenge. Also, navigating the complex and varied regulatory environments across European countries can be difficult,” according to Anthonissen and Claeys. “Ensuring that the EAC has the necessary resources to effectively support its members and advocate for their interests will therefore be crucial.”
A final model regarding how the EAC and the activities of the individual task forces are to be financed has not yet been finalised according to Baumgaertner: “In the initial step each member country will pay a low, monthly fee of 200 Euros to cover the costs of founding the association, etc. As soon as we have established what actual costs good, solid lobby work incurs, we will look into how we can correspondingly cover such costs.”
Solid financing will be decisive for the success of the EAC. However, the commitment of its members is at least equally important – both at board and member level. Here the same applies for the European cooperation as for its member associations. “The challenge for all trade associations,” as Goodman commented, “is to achieve and maintain a relevance within the industry to ensure members see value in their membership.” Here the integrity of the boards and the managing directors also plays an important role. In the last instance however, the members are called upon to actively participate – and not to turn away in disinterest if their association disappoints them. Because such indifference is extremely dangerous for the industry.
// Till Barth/Peter van Gestel
