I’m writing this while proudly sporting a corporate swag t-shirt from a tech startup that has since vanished into the ether.
Hired Inc., founded in 2012 and later acquired by the Adecco Group, spent years helping tech companies recruit talent while dishing out an impressive array of promotional products. I even own some of their branded socks and a winter hat, thanks to a friend who worked there.
The Irreplaceable Nature of Corporate Swag
Corporate memorabilia like this isn’t uncommon. One of my readers has a piece of Blockbuster memorabilia in the form of Tupperware, while another proudly owns an AOL varsity letterman’s jacket celebrating their mid-90s milestones. Companies may come and go, but the spirit of corporate swag endures.
In fact, the promotional products industry in the US and Canada hit a record $26.1 billion in 2023, as reported by the Advertising Specialty Institute (ASI). This figure is roughly on par with the US book publishing industry and just shy of the global music industry.
The Growth of Corporate Swag
Despite economic turbulence, corporate swag continues to thrive. While many companies are tightening their belts—slowing hiring and cutting perks—swag remains one of the last marketing expenses they’re willing to sacrifice.
Tim Andrews, CEO of ASI, points out that swag is a “low-cost way to keep your brand in front of customers every day.” When budgets tighten, you can bet that branded items still find their way into marketing strategies.
Signs of Economic Resilience
Daniel Oas, CEO of High Caliber Line, suggests that the promotional products industry often serves as an economic indicator. Historically, when the swag market flourishes, it signals a robust economy. Conversely, a downturn in swag sales could foreshadow economic challenges.
A Brief History of Promotional Products
Promotional products aren’t a new phenomenon. They trace their roots back to the early 1900s, with early examples including Coca-Cola calendars and thermometers. The real boom, however, began in the 1970s when companies started handing out free t-shirts.
- Today’s Top Swag: While apparel still dominates the swag market, trends are evolving. Companies now prefer premium items that are less likely to end up in the landfill. Think durable backpacks, high-quality sweatshirts, and reusable drinkware. In fact, drinkware alone accounted for around $2.6 billion in swag sales in 2022.
The Impact of Private Equity
Private equity has begun to infiltrate the swag industry, acquiring suppliers and distributors. However, many of these firms are struggling to grasp the nuances of the promotional products market.
Swag: A Reliable Marketing Tool
According to Alok Bhat, a market economist, promotional products are resilient because they offer unique value in maintaining brand engagement, even during challenging times. In late 2022, while ad spending dipped by 6%, promotional product spending surged by 12%.
- ROI: Promotional products often deliver a higher return on investment than traditional advertising channels, making them a wise choice during tight budgets.
Navigating Economic Uncertainty
Despite its resilience, swag is not immune to economic downturns. Sales dipped during the pandemic and also took a hit during the 2009 recession. When the economy falters, promotional spending can be a leading indicator of broader trends.
Bhat notes that increased spending in industries reliant on consumer sentiment—like food, beverage, and retail—can suggest those sectors are preparing to maintain or regain market share.
A Look Ahead: What Does the Future Hold?
As we consider the potential for a soft landing or economic turbulence in the coming months, the swag industry is showing mixed signals. The promotional products sector saw about 1.75% growth year-over-year in July, which is under the inflation rate. Oas has experienced about 10% growth this year but initially tracked 20% before companies began opting for cheaper items.
In summary, the state of corporate swag hints at a steadily humming economy, albeit one that could use a little boost.
Why Corporate Swag Will Always Matter
Corporate swag is more than just branded merchandise; it’s a cultural artifact that connects people to their experiences and memories within a company. The emotional ties to these items—whether a quirky mug or a trendy water bottle—can enhance brand loyalty and serve as a lasting reminder of what a company stands for.
So, as I gaze at my Hired t-shirt, I can confidently say that corporate swag is not just surviving; it’s thriving.
